Annual Report • Feb 25, 2022
Annual Report
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Valamar is Croatia's leading tourism company operating hotels, resorts and camping resorts in prime destinations – Istria, the islands of Krk, Rab and Hvar, Makarska, Dubrovnik, and Obertauern in Austria. With around 21,000 keys, Valamar's 36 hotels and resorts and 15 camping resorts can welcome around 58,000 guests daily and provide perfect holidays and authentic experiences for each guest.
The company believes in a growthdriving strategy focused on investments in high addedvalue products, talents, innovative services and destinations to maintain business continuity. The active promotion and advancement of these interests make Valamar a responsible and desirable employer and one of the top Croatian and regional investors in tourism with over HRK 6.1 billion invested in the last 18 years.
Steered by sustainability and social responsibility, Valamar leads the innovative management of leisure tourism and continuously creates new value for all our stakeholders. Valamar's business success is based on longstanding partnerships and an open communication with its key stakeholders. Therefore, we have established policies at company level that represent our continuing commitment to be the hospitality market leader in Croatia in terms of service quality, guest and user satisfaction, caring for the interests of our employees, company and local community, environmental protection and resource management.
In 2021, Valamar Group achieved a significant recovery of its tourism business fundamentals compared to the crisis year 2020 despite significant impact of COVID-19 effects on travel. Valamar was successful in implementing a job protection program and motivating employees through various awards and benefits programs launched during business recovery in the second half of 2021. During the crisis period, Valamar focused heavily on developing new brands, products and services and continue to invest in repositioning the portfolio, over HRK 870 million since 2019. In 2021, Valamar embarked on a new phase of growth by expanding its partnerships with investment partners in Croatia and further internationalizing its portfolio in Austria.
The realised operating profit (EBITDA) of HRK 646 million in 2021 reached 84% compared to the pre-crisis year 2019 level, and, in some segments, even surpassed it. Adjusted EBITDA of HRK 674 million is only 11% lower than in record 2019. Operating revenues amount to HRK 1.6 billion, i.e. they are at 74% of the 2019 realisation. Overnights recorded the same realisation level, while the average price increased by 6% compared to 2019, following a very strong demand for our hotels and resorts in high season. The direct sales channel performance grew to HRK 859 million achieving 64% of the total board revenues compared to 45% in 2019. It further contributed to the profitability of the business.
The first half of 2021 was still under the significant impact of the COVID-19 pandemic and the respective travel restrictions. The third quarter records a normalisation of the business operations in almost all of Valamar's destinations. However, the fourth quarter saw a certain slowing down of this positive trend. Valamar achieved excellent results in its north-Adriatic destinations, its campsites and in the premium segment, especially in the third quarter. On the other hand, the destination of Dubrovnik and the tourist properties in the 2* and 3* category did not see a significant recovery of their business operations. If we exclude the results of Dubrovnik, the Group thus realised a 12% higher EBITDA vs. 2019. Furthermore, the Premium hotels and resorts segment achieved a 17% higher EBITDA, and campsites 26%.
SUCCESSFUL SEASON ACHIEVED. IN SOME SEGMENTS, THE RECORD YEAR 2019 WAS EVEN SURPASSED
INITIATED ACTIVITIES WITH THE GOAL OF RETAINING EMPLOYEES IN TOURISM AND EFFICIENT PREPARATION FOR SEASON 2022
Through its proactive crisis management in the conditions of the pandemic, with the support of its social partners and backed by the government's subsidies, Valamar managed to protect all jobs, which enabled the realisation of a solid 2021 tourist season. In cooperation with the trade unions, the Group paid substantial cash awards for 2021 to its permanent and seasonal employees on several occasions. The total amount of rewards was HRK 56 million, and the maximum reward per employee reached HRK 11,300. Also, 400 key (until then seasonal) employees were permanently employed, which will enable them to have a stable income and a year-round job in the tourist industry. All of the above was done in order to boost the employee satisfaction of the Valamar Group even more, with the final goal of keeping the employees in the tourist industry and making high-quality preparations for the next tourist season. According to the surveys of the MojPosao portal, Valamar has remained the only company from the tourism industry among top 20 employers in Croatia for the fourth consecutive year.
Valamar continued developing its products, services and hospitality portfolio during the crisis period, with the two-year investment cycle for 2019/21 amounting to almost HRK 870 million. Istra Premium Camping Resort 5* was finished, which is the biggest camping resort development project in Croatia, with the value of investment amounting to HRK 455 million over several years. The investments in the Valamar Parentino Hotel in Poreč and the Valamar Meteor Hotel in Makarska, hotels offering family vacations and services, were also successfully finalised.
The lifestyle hotel [PLACES] by Valamar targeting YZ generation was opened on the island of Hvar and the development of a new Valamar Amicor Green Resort began. This is a fully sustainable eco summer family resort, which respects the highest standards in green building, renewable energy use and energy efficiency level.
Additionally, in cooperation with E.ON Solar, photovoltaic power plants were installed at 26 Valamar's hotels and campsites along the Adriatic coast. This covers five per cent of the Valamar's total yearly need for electric power.
In order to further increase the quality of the portfolio of its hotels, resorts and campsites as well as to develop green tourist industry and digitalize its business operations, at the end of last year Valamar launched a new investment cycle in the properties under its management for 2021/22, totalling to HRK 525 million.
The year 2021 saw an expansion of the strategic cooperation with pension funds. Valamar Riviera and AZ pension funds agreed on the second phase of the capital injection to Imperial Riviera in the total value of HRK 690 million. The purpose of this capital increase is a further development of the tourist industry portfolio in Dubrovnik, Makarska and on the island of Rab. Valamar and PBZ Croatia osiguranje pension fund started an investment cycle in Stari Grad on the island of Hvar in the value of HRK 300 million.
In cooperation with a private co-investor, one of Austria's largest Valamar Riviera's shareholders and the Chairman of the Company's Supervisory Board, Mr. Gustav Wurmböck, Valamar acquired its second hotel in Obertauern, Austria. The Marietta 4* hotel has 120 keys and is one of the biggest and best hotels in this destination. The hotel is under lease agreement until mid-2023. Accordingly, it is not currently managed neither branded by Valamar. This acquisition represents a significant move in the further internationalisation of the Valamar's business operations, with the aim to expand its portfolio and manage hotels and properties in the best winter holiday destinations in Austria and Italy.
POSITIVE FINANCIAL RESULTS ACHIEVED
VALAMAR AND STRATEGIC PARTNERS CONTINUE WITH SIGNIFICANT INVESTMENTS IN CROATIAN TOURISM
Following good financial results, the Group's net debt was decreased and as at 31 December 2021 amounted to HRK 2.0 billion. This is a 31% decrease compared to the debt as at 31 December 2020. For 2021, all financial and other covenants from loan agreements have been satisfied. The Group will continue working on decreasing its indebtedness and fulfilling its contracted covenants.
In the year 2022, Valamar plans to open all of its hotels and campsites. However, the corona crisis will still be significantly impacting the tourist industry and the economy in the near future. A normalisation of the tourist industry is expected during the years 2022 and 2023. On the other hand, an additional impulse for Croatia as a tourist destination may occur after the entry of Croatia to the Schengen Area, which should happen mid of 2022. A positive impact can also be expected from the introduction of the euro, planned for 1 January 2023.
| Significant Business Events | 6 |
|---|---|
| Results of the Group | 11 |
| Results of the Company | 21 |
| Investments | 23 |
| The Risks of the Company and the Group | 27 |
| Corporate Governance | 33 |
| Related-party Transactions and Subsidiaries | 36 |
| Valamar Share | 38 |
| Additional Information | 42 |
| Disclaimer | 44 |
| Responsibility for the Quarterly Financial Statements | 46 |
| Financial Statements According to TFI-POD | 47 |
The global pandemic trends are still unpredictable, and a further significant disruption of the travel flows is possible, which may have an adverse impact to the business results of the Group. The increasing vaccination rates helped the tourist industry as well as the introduction of the EU COVID-19 pass throughout Europe. At this point in time it would still be premature to make a quantitative assessment about the negative impact of COVID-19 to the business operations of Valamar in the future. A normalization of the hospitality industry is expected to happen in 2022 and 2023.
Istria and the northern Adriatic, where the majority of the Group's facilities are located, have a great advantage in the fact that they are the traditional drive tourism destination for our major source markets (Italy, Slovenia, Austria, Germany, the Netherlands, the Czech Republic, Hungary, etc.). Our camping resorts play a major role in attracting our guests and they have become the resorts of the first choice for many. This is due to shifting guest preferences favouring nature and privacy, but also due to the fact that they offer an increased quality of service and facilities thanks to considerable investments over the last period.
The health of our guests and their feeling of being safe in our properties is our utmost priority. In 2020 we introduced some key innovations, such as our V Health & Safety programme of comprehensive health, safety and ecology standards, an enhanced cleaning system 'CleanSpace – 100% privacy', the Online reception desk, the 'Bed & Brunch' hotel concept and the Valfresco Direkt online shopping and food delivery service. By introducing these services, Valamar has also strengthened the market position of small manufacturers and local family farms. In 2021 Valamar introduced the V-Care Guarantee concept, which enables the organization of all necessary health services during the guest's stay (and in case of COVID-19 infection as well). For the guests who have made their reservations directly at valamar. com or via the Valamar reservation centre, this includes e.g. free medical consultation by phone (phone or video call) 24/7, Antigen testing at the hotel or camping resort, and organizing PCR testing at designated locations in all Valamar destinations. Guests infected with COVID-19 and anyone included in their reservation will have their costs covered if they need to extend their stay up to 14 days. Also, the return trip travel expenses for guests infected
NORMALIZATION OF TOURISM BUSINESS IS EXPECTED TO CONTINUE DURING 2022 AND 2023
GROUP'S CASH BALANCE AS OF 31 DECEMBER 2021 AT HRK 1.1 BILLION
with COVID-19 will be reimbursed, if the return dates are different than those originally scheduled.
Since the beginning of the COVID-19 crisis, the Valamar has had a proactive approach to decreasing and controlling potential risks. Therefore, Valamar has established a Risk Management Committee and adopted the Risk Management Regulations. The tasks and authorizations of the Risk Management Committee include assessing risk events and their impact to the company's business, guests and employees. Also, the Committee defines the measures for the protection of guests, staff and property and defines the organization of the business processes and operations. Depending on the circumstances and the intensity of the risk event, the Committee may decide on changing the financial, business and contingency plan, and activating escalation plans to preserve the company's liquidity, solvency and business continuity. The Committee may adopt other documents as may be needed according to their assessment of the status of bookings and revenues.
In 2020 and in the first half of 2021, Valamar ensured the necessary liquidity for the upcoming period through operational savings plans, savings in investments, payments deferral and arrangements with banks by which Valamar deferred most of its loan payments. Valamar also successfully ensured additional mid-term liquidity by concluding a loan facility agreement with a banking syndicate in the amount of EUR 66 million while, in order to improve the company's liquidity, the General Assembly in 2020 revoked the proposal of the Decision to pay out dividend. Upon the expiration of the moratorium in June 2021 the Group continued to regularly service its loan obligations. The Group's cash balance as at end of December 2021 amounts to a high HRK 1.1 billion.
Valamar's social partners, headed by the Croatian Trade Union of Tourism and Services and the Trade Union of Istria, Kvarner and Dalmatia, supported the continuation of the Valamar job preservation programme 'Pause, Restart'. This programme is in force until 31 March 2022. The programme ensures the payment amounting to 60% of the regular salary, i.e. a minimum of HRK 4,250 net for all Valamar's employees who were furloughed due to the COVID-19 pandemic restrictions.
The government's support measures in last two seasons were of key importance for keeping jobs in the tourist industry. They were a key incentive for all tourist companies to successfully face these extraordinary circumstances until the economy and the tourist industry returns to normal. The most significant measure was the one aimed at preserving the jobs in the sectors most hardly hit by the coronavirus (HRK 3,250 per employee for the salary in March, i.e. HRK 4,000 for the salaries from April to December 2020). The Government of the Republic of Croatia approved these measures to protect jobs in the period from January – July 2021 as well.
The first phase of capital investments into Imperial Riviera, member of the Valamar Group, by Valamar Riviera and AZ pension funds, in the amount of HRK 426 million was done in 2019. Investments were aimed at the renovation of the Parentino Hotel in Poreč, Meteor Hotel in Makarska and Premium Camping Padova on the island of Rab.
The General Assembly of Imperial Riviera, held on 10 September 2021, adopted the decision on the second phase of capital investments by increasing the share capital of the company by a total amount of HRK 690 million. Valamar Riviera participates in this investment by a contribution in kind, i.e. by investing its real estate (land of 148,949 m2) worth HRK 353 million in total. The land is situated on the Babin Kuk peninsula in Dubrovnik. AZ pension funds invest the total amount of HRK 337 million in cash. This capital increase is aimed at a further development of the tourist portfolio in Dubrovnik, Makarska and on the island of Rab. After its completion, Valamar Riviera holds 46.27% of the Imperial Riviera shares, and AZ pension funds holds 48.85%.
At the beginning of 2022, three hotels (Valamar Lacroma Dubrovnik Hotel, Club Dubrovnik Sunny Hotel by Valamar and Tirena Sunny Hotel by Valamar) in Dubrovnik were transferred from Valamar Riviera to Imperial Riviera. The acquisition value of cited hotels amounts to EUR 95.3 million and the financing for a major part of this transaction is ensured by taking over Valamar Riviera's existing loan obligations by Imperial Riviera. These hotels
WITHIN VALAMAR GREEN HOLIDAY CONCEPT THE INVESTMENT INTO THE FIRST SUSTAINABLE ECO RESORT BEGINS
CAPITAL INCREASE OF IMPERIAL RIVIERA IN THE AMOUNT OF HRK 690 MILLION, BY CONTRIBUTION IN KIND AND IN CASH
in the area of Babin Kuk in Dubrovnik, together with the real estete being previously entered in Imperial in the process of its share capital increase will represent sustainable and strategically important technological unit. Imperial Riviera is thus becoming a multi-destination company present in Istria, Kvarner, Dalmatia and the city of Dubrovnik.
Besides the business expansion and growth of the Valamar Group, this transaction will also strengthen the balance sheet of the Group. Imperial Riviera will remain a joint venture for the investment and development of the tourist facilities in the region, while Valamar Riviera will still be in charge of managing its operational business. This was one of the goals of the cooperation established between Valamar and AZ pension funds.
Valamar Riviera and PBZ Croatia osiguranje pension funds continue with significant portfolio investments in the amount of HRK 300 million aimed at repositioning properties in Stari Grad on the island of Hvar into 4 and 5-star properties. The largest part of the investments will be directed towards the construction of the first Valamar sustainable eco-resort named Valamar Amicor Green Resort, the completion of investments in Hvar [PLACESHOTEL] by Valamar, the construction of the Aquamar pool complex and the overall reconstruction of the resort area.
Green Holiday is a new concept by Valamar, which implies a sustainable eco resort positioned for family vacation. The resort will be built by maintaining the highest standards for green building, which includes ecologically acceptable materials with a minimum environmental impact, the use of renewable energy sources and a high energy efficiency level. Food will be prepared from fresh produce, mainly locally grown, and the use of one-time plastic and paper will be maximally reduced.
Valamar Amicor Green Resort on the island of Hvar is the first tourism project that will use ecologically prefabricated buildings and modular constructions designed according to Valamar accommodation quality standards. The concept is inspired by nature and sustainable design. The resort's architecture and building design blend into the island's natural environment, while the interior will be designed by local designers and artists with autochthonous tradition and materials in mind.
The business development plan of Helios Faros estimates investments in the total amount of around HRK 800 million aimed at sustainable high valueadded tourism that will have a positive impact on the island's economic growth and development. The reconstruction and construction of three hotels and resorts in the 4 and 5-star category with 700 accommodation units is planned by 2025.
Valamar Riviera has a 20% ownership in Helios Faros and manages its hoteltourism properties.
In cooperation with a private co-investor, Valamar acquired its second hotel in Obertauern, Austria. The Marietta Hotel 4* has 120 keys and is one of the biggest and best hotels in this destination. The co-investor is one of Austria's largest Valamar Riviera's shareholders and the Chairman of the Company's Supervisory Board, Mr. Gustav Wurmboeck.
The co-investor provided a capital injection amounting to EUR 11.1 million to the Austrian company Valamar A GmbH (until then in 100% owned by Valamar Riviera). Valamar A GmbH then used funds from capital injection and additional borrowing to acquire the Marietta Hotel. Following the transaction, Valamar Riviera has a 24.5% stake in Valamar A, while the coinvestor 75.5%
This acquisition in cooperation with the new co-investor represents an important move for Valamar in terms of a further internationalisation of its business operations. The aim is to expand its portfolio and manage hotels and tourist facilities in the best winter holiday destinations in Austria and Italy. Two hotels in Austria under Valamar's management now will be able to employ 130 Valamar employees from Croatia during the winter.
This acquisition also represents another step towards an 'asset-light business model'.
IN COOPERATION WITH A PRIVATE CO-INVESTOR SECOND HOTEL IN AUSTRIA ACQUIRED The regular General Assembly of the Company was held on April 21, 2021, at which decisions were made according to the decisions proposed by the Management Board and the Supervisory Board of the Company contained in the invitation to the General Assembly and published in its prescribed content on the website of the Zagreb Stock Exchange, as well as on the Company's website. The following decisions were reached: decision on coverage of loss, decision on granting discharge to members of the Management Board, decision on granting discharge to members of the Supervisory Board, decision on appointment of auditors and decision on election of members of the Supervisory Board. The Report on Receipts of Members of the Management Board and the Supervisory Board for 2020 was also discussed. The General Assembly elected six members of the Supervisory Board for a new term of 4 years starting on 16 June 2021, namely Mr. Gustav Wurmböck, Mr. Franz Lanschützer, Mr. Mladen Markoč, Mr. Georg Eltz (former members), Mr. Boris Galić and Mr. Daniel Goldscheider (new members). One Supervisory Board member, Mr. Ivan Ergović, workers' representative, was appointed by the Workers' Council on 10 May 2021. The constituent meeting of the Supervisory Board, at which the President, Mr. Gustav Wurmböck, and the Deputies, Mr. Franz Lanschützer and Mr. Mladen Markoč, were elected, was held on June 17, 2021.
In 2021, the Valamar Group succeeded in maintaining its leading market position as well as stabilising its business operations to a large extent. This is the result of a successful crisis management during the COVID-19 pandemic as well as of the recognised and successful Valamar's business philosophy. It represents Valamar's business success formula, comprised of corporate social responsibility and a continuous investment in further development.
Valamar received a recognition from the Ministry of Economy and Sustainable Development for 2021 relating to the achievements of the business sector in environmental protection, in the category Management. The award ceremony was held within the Conference on the Future of Europe, initiated by the European Commission, the Council and the Parliament. This recognition for Valamar relates to an exceptional organization with a strategic vision and a management system enabling continuous improvements in environmental properties.
The German camping club DCC (Deutscher Camping-Club) gave the prestigious recognition DCC Europe Platinum for the year 2022 to Lanterna Premium Camping Resort. Eleven of Valamar's campsites received the Croatia's Best Campsites label for the year 2022, which is given by the Croatian Camping Union. Four Valamar's campsites are the winners of the ADAC Superplatz 2022 recognition award, given by ADAC's camping guides in cooperation with the PiNCAMP specialized camping portal. Additionally, four Valamar's campsites have received the ANWB Top Camping award, which is given by the renowned Dutch car club ANWB.
The world organisation World Luxury Hotel Awards gave awards to the most luxurious hotels. The Dubrovnik President Valamar Collection Hotel 5* was recognized as the best Croatian Luxury Beach Resort, the Isabella Valamar Collection Island Resort 4*/5* received the best European Luxury Island Resort award, and the Marea Valamar Collection Suites 5* won the best European Luxury Family Hotel award. As many as three Valamar's hotels received the most prestigious tourist industry award on the world – World Travel Award. The Valamar Riviera Hotel & Residence 4* in Poreč received the award for the best Croatian boutique hotel, while the Valamar Collection Girandella Resort 4*/5* in Rabac was again recognized as the leading Croatian resort. The title of the leading hotel in Croatia was granted to the Dubrovnik President Valamar Collection Hotel 5*.
IN 2021, VALAMAR WAS AWARDED NUMEROUS PRIZES AND RECOGNITIONS
The Management Board of the Company presents the quarterly unaudited financial statements for the fourth quarter of 2021 (the period 1 January 2021 – 31 December 2021 is also included).
The Group's profit and loss account for the period considered consolidates the data from the following companies (only for the period when they were subsidiaries of Valamar Riviera d.d.): Imperial Riviera d.d. (a subsidiary 46.27% owned by Valamar Riviera d.d.), Valamar A GmbH (until 29 November 2021, 100% owned, and from 29 November 2021, 24.54% owned), Valamar Obertauern GmbH (10% directly owned and, until 29 November, 90% indirectly owned by Valamar Riviera d.d. (90% of the shareholding owned by Valamar A GmbH), and from 29 November 2021, 22.08% indirectly owned by Valamar Riviera d.d.), Palme Turizam d.o.o. (until 7 May 2021, when it was merged to Valamar Riviera d.d., 100% owned), Magične stijene d.o.o. (100% owned), and Bugenvilia d.o.o. (100% owned).
The Group's balance sheet as at 31 December 2021 consolidates the data for the following companies: Valamar Riviera d.d. (Parent Company), Imperial Riviera d.d., Magične stijene d.o.o. and Bugenvilia d.o.o.
The investment in the company Helios Faros d.d. is reported according to the equity method since Valamar Riviera d.d. does not exercise control but a significant influence over Helios Faros d.d.
The Management Board presents the quarterly unaudited financial statements for the period from 1 January 2021 to 31 December 2021.
| 2020 | 2021 | 2021/2020 | |
|---|---|---|---|
| Total revenues | 696,901,773 | 1,679,909,675 | 141.1% |
| Operating income | 675,610,635 | 1,644,008,023 | 143.3% |
| Sales revenues | 642,478,457 | 1,605,127,860 | 149.8% |
| Board revenues (accommodation and board revenues) 2 |
531,636,818 | 1,344,778,046 | 153.0% |
| Operating costs 3 |
530,527,177 | 938,294,335 | 76.9% |
| EBITDA 4 |
103,189,578 | 645,980,279 | 526.0% |
| Extraordinary operations result and one-off items 5 |
-23,242,050 | -27,545,361 | 18.5% |
| Adjusted EBITDA 6 |
126,431,628 | 673,525,640 | 432.7% |
| EBIT | -394,764,365 | 136,974,626 | - |
| Adjusted EBIT 6 |
-371,522,315 | 164,519,987 | - |
| EBT | -501,048,580 | 101,475,233 | - |
| Net profit | -358,805,791 | 108,707,246 | - |
| EBT margin | -74.2% | 6.2% | 80.3pp |
| EBITDA margin | 15.3% | 39.3% | 24.0pp |
| Adjusted EBITDA margin 6 |
18.7% | 41.0% | 22.3pp |
| 31/12/2020 | 31/12/2021 | 2021/2020 |
| 31/12/2020 | 31/12/2021 | 2021/2020 | |
|---|---|---|---|
| Net debt 7 |
2,851,116,054 | 1,973,103,640 | -30.8% |
| Net debt / Adjusted EBITDA | 22.6 | 2.9 | -87.0% |
| Cash and cash equivalents | 665,932,900 | 1,115,257,824 | 67.5% |
| Capital investments (details in chapter "2020 Investments") | 595,870,921 | 115,355,120 | -80.6% |
| ROE 8 |
-11.5% | 3.2% | 14.7pp |
| Adjusted ROCE 9 |
-6.5% | 3.1% | 9.6pp |
| Market capitalization10 | 3,750,579,650 | 4,158,908,886 | 10.9% |
| EV11 | 7,303,506,632 | 7,175,077,019 | -1.8% |
| EPS12 | -2.70 | 0.86 | - |
| DPS13 | 0 | 0 | - |
| 2020 | 2021 | 2021/2020 | |
|---|---|---|---|
| Number of accommodation units (capacity) | 21,247 | 21,328 | 0.4% |
| Number of beds | 58,492 | 58,747 | 0.4% |
| Full occupancy days | 47 | 99 | 110.6% |
| Annual occupancy (%) | 13 | 27 | 107.7% |
| Accommodation units sold | 999,020 | 2,100,954 | 110.3% |
| Overnights | 2,279,215 | 5,004,639 | 119.6% |
| ARR15 (in HRK) | 532 | 640 | 20.3% |
| RevPAR16 (in HRK) | 25,021 | 63,052 | 152.0% |
In 2021, Valamar Group realized 5.0 million overnights, which is still a decrease of 26% compared to 2019 and an increase of 120% compared to 2020.
In the first quarter of 2021, the number of overnights was very low with only one open hotel -Valamar Diamant Hotel & Residence. Valamar Diamant Hotel & Residence shifted from the regional to the Croatian market, with special focus on weekend stays, professional national and foreign sports groups without indoor training bans and regional cyclists groups. Valamar Obertauern Hotel in Austria was closed for the entire 2020/21 ski season. In the same period, two camping resort were opened year-round with a special "extended stay" offer (14 and 30 days), focusing on families and individuals who were able to work/study remotely. In the second quarter, negative trend was reversed and a noticeable increase in the number of overnights was achieved, although measures related to the COVID-19 pandemic in Europe were still in force. This is primarily due to the great desire to travel after a long period of restrictions and a somewhat less restrictive policy of crossing state borders. Our northern destinations were the most visited: Poreč, Rabac and the islands of Krk and Rab, while southern destinations Makarska, Hvar and Dubrovnik reported lower occupancy rates due to the lack of flights and a slightly greater distance from source markets. As explained earlier, the third quarter was marked by an almost complete recovery in tourist traffic at a large number of our properties, although the real main tourist season began only in mid-July. However, in the fourth quarter, this powerful trend slowed down somewhat, primarily due to lower realization in the group sales and MICE segment.
In 2021, total revenues amounted to HRK 1,679,9 million, which is an increase of 141.1% (HRK 983.0 million). The realized total revenues were influenced by:
a) increase in sales revenues by 149.8% (HRK 962.6 million) to the amount of HRK 1,605.1 million, which consists primarily of board revenues (HRK 1,344.8 million) after a significant improvement in tourist flows as previously explained. There has been a slight change in the revenue structure; domestic sales revenues amount to HRK 173.6 million with a share of 10.8% in total sales revenues (12.9% in 2020) and are HRK 90.9 million higher than in 2020. With a share of 89.2% in total sales revenues (87.1% in 2020), sales revenues on foreign markets amount to HRK 1,431.5 million and are higher by HRK 871.7 million
b) an increase in other operating revenues of 18.0% to HRK 38.6 million compared to 2020, mainly due to higher revenues from the cancelation of provisions for litigation
c) financial income amounts to HRK 35.4 million and is higher by 66.0% than those realized in 2020 as a result of the increase in net positive exchange rate differences on long-term loans as well due to income from the discontinuation of control over subsidiaries Valamar A and Valamar Obertauern.
| (in HRK) | 2020 | 2021 | 2021/2020 |
|---|---|---|---|
| Operating costs18 | 530,527,177 | 938,294,335 | 76.9% |
| Total operating expenses | 1,070,375,000 | 1,507,033,397 | 40.8% |
| Material costs | 254,642,998 | 458,262,170 | 80.0% |
| Staff cost | 189,951,093 | 353,175,910 | 85.9% |
| Depreciation and amortisation | 496,444,044 | 507,335,969 | 2.2% |
| Other costs | 89,097,655 | 134,450,892 | 50.9% |
| Provisions and value adjustments | 30,223,911 | 41,982,841 | 38.9% |
| Other operating expenses | 10,015,299 | 11,825,615 | 18.1% |
Total operating expenses in 2021 amounted to HRK 1,507.0 million, which is 40.8% more than in the last year. Development of operating expenses:
a) material costs amount to HRK 458.3 million and are higher by 80.0% as a result of increased costs of raw materials, costs of promotional activities and other direct costs in accordance with the increased business volume
b) staff costs increased by 85.9% and amount to HRK 353.2 million, also after the increased business volume and the need for workforce. Total COVID grants related to employee cost subsidies are included in the amount of HRK 102.1 million for the Group (2020: HRK 164.4 million) and HRK 84.6 million for the Company (2020: HRK 141.3 million)
c) depreciation amounts to HRK 507.3 million, which represents an increase of 2.2%
d) other expenses increased by 50.9% to HRK 134.4 million. The increase is due to increased employee transportation fees and employee rewards, as well as higher expenses for student workers
e) provisions and value adjustments amount to HRK 42 million and are higher by 38.9% as a result of provisions for the costs for tourist land lease
f) other operating expenses amount to HRK 11.8 million, which is an increase of 18.1%.
17 Classified according to Annual Financial Statements standard (GFI POD-RDG).
18 Operating costs include material costs, staff costs, other costs, and other operating costs reduced by extraordinary expenses and one-off items.
Adjusted EBITDA amounts to HRK 673.5 million, which is an improvement of HRK 547.1 million compared to adjusted EBITDA realized in 2020 in the amount of HRK 126.4 million. The main reasons for this are very strong demand for most of our properties in the high season, which has led to a significant increase in the number of overnight stays and a significant increase in average prices. In addition, the Group recorded a favourable development of all major cost categories in the pre-season after adjusting to pandemic working conditions, which includes the general rationalization of operations and internal savings measures as well as the implementation of "Pause, restart program". Furthermore, the use of support measures by the Government of the Republic of Croatia, enabled the Group to preserve jobs and to be able to prepare 2021 tourist season efficiently.
After the above-described increase in EBITDA and better net financial result in 2021 related to exchange rate movements (explained in more detail in the next section), a significant improvement in profit before tax (EBT) was achieved in the amount of HRK 600.0 million. Thus, EBT in 2021 amounted to HRK 99.0 million after a negative EBT of HRK -501.0 million in 2020.
In 2021, net financial result amounts to HRK -35.9 million (HRK -104.6 million in 2020). The main reason for HRK 68.7 million better financial result compared to 2020 is primarily the increase in net foreign exchange gains (mostly unrealized on long-term loans) by HRK 52.7 million, given that in 2021 kuna recorded a small increase against the euro, while in 2020 a stronger depreciation of kuna against the euro was recorded.
Also, unrealized income from financial assets in the amount of HRK 4.5 million was recorded, while in 2020, unrealized expenses from financial assets in the amount of HRK 17.8 million was recognized. In addition, interest on long-term and short-term loans increased by HRK 3.2 million due to the provision of new sources of liquidity.
On 31 December 2021, total value of Group's assets amount to HRK 6,911.1 million, which is 0.5% increase compared to 31 December 2020. Total share capital and reserves amount to HRK 3,308.6 million and are higher by 15.5% as a result of the realized profit in 2021 as well as increase in minority interests following the capital increase in Imperial Riviera.
Total long-term and short-term liabilities to banks and other financial institutions as at 31 December 2021 amount to HRK 3,112.6 million and are lower by 11.2% compared to 31 December 2020 as a result of repayment of short-term and long-term loans. A large part of the loan portfolio (89%) consists of long-term loans with contracted fixed interest rate and loans protected by derivative instruments (IRS) for the purpose of hedging against interest rate risk. In 2020, the Group deferred the payment of a total of HRK 349 million of principal to commercial banks and the Croatian Bank for Reconstruction and Development, of which HRK 272 million represents deferred principal payment for 2020, HRK 49 million for the first quarter of 2021 and HRK 27 million kuna for the second quarter of 2021. In addition, the payment of interest in the total amount of around HRK 47 million was postponed. On 30 June 2021., after the expiration of the moratorium period with commercial banks, the Group began regular repayment of credit liabilities.
On 31 December 2021 the Group's cash balance amounted to HRK 1,115.3 million (an increase of 67.5% compared to 31 December 2020), which together with i) the agreed credit lines, ii) valuable tourist assets and iii) a strong operating business model make Group's stable balance sheet.
| HOTELS AND RESORTS OVERVIEW | LOCATION | KEYS | CAMPING RESORTS OVERVIEW | LOCATION | KEYS | ||
|---|---|---|---|---|---|---|---|
| Hotels and Resorts |
9.292 | ||||||
| VALAMAR COLLECTION | 1.261 | Camping Resorts |
|||||
| Marea Valamar Collection Suites |
5* | Poreč | 108 | CAMPING ADRIATIC BY VALAMAR - PREMIUM |
|||
| Imperial Valamar Collection Hotel |
4* | Rab Island | 136 | RESORTS | 5.352 | ||
| Dubrovnik President Valamar Collection Hotel |
5* | Dubrovnik | 292 | Istra Premium Camping Resort by Valamar |
5* | Poreč | 874 |
| Isabella Valamar Collection Island Resort |
4 / 5 | Poreč | Lanterna Premium Camping Resort by Valamar |
4* | Poreč | 2.930 | |
| Girandella Valamar Collection Resort |
4 / 5 | 334 | Krk Premium Camping Resort by Valamar |
5* | Krk Island | 500 | |
| Pinea Valamar Collection Resort |
Rabac | 391 | Ježevac Premium Camping Resort by Valamar |
4* | Krk Island | 632 | |
| 5* | Poreč | 0 | Padova Premium Camping Resort by Valamar |
4* | Rab Island | 416 | |
| VALAMAR HOTELS & RESORTS | 3.964 | CAMPING ADRIATIC BY VALAMAR - RESORTS |
4.555 | ||||
| Valamar Riviera Hotel & Residence | 4* | Poreč | 132 | Orsera Camping Resort by Valamar |
3* | Poreč | 592 |
| Valamar Tamaris Resort | 4* | Poreč | 507 | Solaris Camping Resort by Valamar |
3* | Poreč | 1.824 |
| Valamar Parentino Hotel |
4* | Poreč | 329 | Marina Camping Resort by Valamar |
Rabac | 329 | |
| Valamar Bellevue Resort |
4* | Rabac | 372 | 4* | 593 | ||
| Valamar Diamant Hotel & Residence |
3/4 | Poreč | 372 | Baška Beach Camping Resort by Valamar |
4* | Krk Island | |
| Valamar Pinia Hotel |
3* | Poreč | 170 | Bunculuka Camping Resort by Valamar |
4* | Krk Island | 408 |
| Valamar Sanfior Hotel & Casa |
4* | Rabac | 242 | San Marino Camping Resort by Valamar |
4* | Rab Island | 809 |
| Valamar Atrium & Villa Adria |
4 / 5 | Krk Island | 92 | ||||
| Valamar Carolina Hotel & Villas |
4* | Rab Island | 176 | CAMPING ADRIATIC BY VALAMAR - SUNNY |
1.650 | ||
| Valamar Padova Hotel | 4* | Rab Island | 175 | Brioni Sunny Camping by Valamar |
2* | Pula | 734 |
| Valamar Meteor Hotel | 4* | Makarska | Tunarica Sunny Camping by Valamar |
2* | Rabac | 160 | |
| Valamar Argosy Hotel |
4* | Dubrovnik | 268 | Škrila Sunny Camping by Valamar |
3* | Krk Island | 342 |
| Valamar Lacroma Dubrovnik Hotel |
4* | Dubrovnik | 308 | Solitudo Sunny Camping by Valamar |
3* | Dubrovnik | 414 |
| Valamar Club Dubrovnik Hotel | 3* | 401 | |||||
| Valamar Obertauern Hotel |
4* | Dubrovnik Austria |
338 82 |
||||
| [PLACES] by Valamar |
179 | ||||||
| Hvar [PLACESHOTEL] by Valamar |
3* | Hvar Islan. | 179 | ||||
| SUNNY BY VALAMAR | 3.888 | ||||||
| Lanterna Sunny Resort by Valamar |
2* | Poreč | 606 | ||||
| Allegro Sunny Hotel & Residence by Valamar |
3* | Rabac | 180 | ||||
| Corinthia Baška Sunny Hotel by Valamar |
3* | Krk Island | 431 | ||||
| San Marino Sunny Resort by Valamar |
3* | Rab Island | 457 | ||||
| Eva Sunny Hotel & Residence |
2* | Rab Island | 284 | ||||
| Dalmacija Sunny Hotel by Valamar |
3* | Makarska | 190 | ||||
| Rivijera Sunny Resort by Valamar |
2* | Makarska | 258 | ||||
| Tirena Sunny Hotel by Valamar |
3* | Dubrovnik | 208 | ||||
| Trim & Helios Sunny Apartments by Valamar |
2* | Hvar Islan. | 85 | ||||
| Crystal Sunny Hotel by Valamar |
4* | Poreč | 223 | ||||
| Rubin Sunny Hotel by Valamar |
3* | Poreč | 253 | ||||
| Miramar Sunny Hotel & Residence by Valamar |
3* | Rabac | |||||
| Zvonimir Sunny Hotel by Valamar |
4* | Krk Island | 178 | ||||
| Koralj Sunny Hotel by Valamar |
3* | Krk Island | 85 | 20 Hotel Marietta in Obertauern, Austria, acquired by Valamar A GmbH in December 2021. It is not | |||
| Arkada Sunny Hotel by Valamar |
2* | Hvar Islan. | 194 256 |
managed by Valamar Riviera and is not branded by Valamar Riviera. Leased to a third party until mid-2023. |
In 2021, total revenues increased by 185.8% to the amount of HRK 1,691.4 million.
Sales revenues amount to HRK 1,360.9 million with a 80.7% share in total revenues. Compared to the last year, they are higher by 148.8% as a result of increased business volume.
Domestic sales revenues amount to HRK 181.2 million with a share of 13.3% in total sales revenues (12.4% in 2020) and are higher by HRK 113.4 million compared to the previous year. Revenues from sales on foreign markets amount to HRK 1,179.8 million with a share of 86.7% in total revenues (87.6% in 2020). Compared to the previous comparable period, they are higher by HRK 700.6 million.
Material costs amount to HRK 396.1 million with a growth of 76.9% after increased business volume. Staff costs amount to HRK 301.3 million and are 85.1% higher than in the same period last year, also due to the increased volume of business and the need for workforce.
Depreciation amounts to HRK 397.6 million and is higher by 1.4% compared to the same period last year. Value adjustments and provisions amount to HRK 38.3 million, which is an increase of 41.9% compared to 2020. This is mainly the results of provisions for the costs for tourist land lease.
In 2021, net financial result amounts to HRK -43.9 million (HRK -95.1 million in 2020). The main reason for HRK 51.2 million better financial result compared to the previous year is primarily the increase in net foreign exchange gains (primarily unrealized on long-term loans) by HRK 48.6 million, given that in 2021 kuna recorded a small increase against the euro, while in 2020 a stronger depreciation of kuna against the euro was recorded.
EBITDA amounted to HRK 814.3 million, which is an improvement of HRK 739.3 million compared to EBITDA realized in 2020 at the level of HRK 74.9 million. The main reasons for this are very strong demand for most of our properties in the high season, which has led to a significant increase in the number of overnight stays and a significant increase in average prices. In
IMPROVEMENT OF EBITDA COMPARED TO 2020
STRONG CASH POSITION OF THE COMPANY AS AT 31 DECEMBER 2021 OF HRK 582 MILLION
addition, the Company recorded a favourable development of all major cost categories in the pre-season after adjusting to pandemic working conditions, which includes general business rationalization and internal savings measures taken as well as the implementation of "Pause, restart program". Furthermore, the use of support measures by the Government of the Republic of Croatia, enabled the Company to preserve jobs and to be able to prepare 2021 tourist season efficiently. An additional reason can be found in the realized net profits of HRK 281.0 million, which are recorded under Other operating income with undertakings within the group. The profits were generated from the entry of the Company's real estate (land) in the area of Babin Kuk in Dubrovnik into the share capital of Imperial Riviera within capital increase procedure. That had no impact on the Valamar Group's financial statements.
Total assets of the Company on 31 December 2021 amounted to HRK 5,830.0 million and were lower by 2.1% compared to 31 December 2020. Total share capital and reserves amount to HRK 2,619.3 million and are higher by 9.8% as a result of the realized profit in 2021.
On 31 December 2021 the Company's cash balance amounts to HRK 582.1 million, which is an increase of 11.3% compared to 31 December 2020.
Valamar's strategy for the development of tourism products and high added-value amenities is one of the main drivers of growth and sustainable business continuity. The strategy is steered by sustainability and social responsibility while investing in products, employees and tourist destinations. Furthermore, Valamar's service concepts are continuously being developed to align the offer with current market requirements, primarily guests' trends and expectations. With a timely and thorough approach to mitigating and controlling the adverse effects caused by the COVID-19 pandemic, a customized business plan was introduced in all business segments, including investments.
The planned portfolio repositioning and development of high added-value products and services, with emphasis on the premium segment of resorts and camping resorts, has been adjusted by reducing investment intensity all while preparing new growth and development projects when the conditions are met. In order to align the hospitality portfolio plan and development with the current tourism flows and the proactive approach to cash flow management and financing, the investments in 2021 will mostly be focused on the completion of projects and raising service quality and guest satisfaction.
Considering the reduced investment intensity, the total approved investments of the Valamar Group in the 2020/2021 investment cycle amounted to HRK 164 million in 2021. As last year, the Valamar Group will continue to adapt its products and develop digitization digitalization projects to further enhance service quality and guest safety in the upcoming tourist season. At the Group level, a total of HRK 16 million has been provided for health and safety, as well as digitalization and innovation projects. Investments in this segment include the continuation of projects from 2020, and relate to the automation of processes and systems such as improving the Online Reception and "self check-in" system, automating gate barriers, improving Valfresco Direkt online
store services and other similar projects aimed at enhancing our guest's health and safety services for our guests. HRK 17 million has been provided for smaller investments and the purchase of new equipment and furniture, while the remaining amount has been directed towards the completion of initiated investments in construction works and the preparation of future investments. All investments were completed within the planned deadlines. In 2021, investments worth HRK 115 million were capitalized in the portfolio of fixed tangible and intangible assets.
Valamar Riviera provided HRK 123 million for the 2020/2021 investment cycle, and in addition to investments aimed at enhancing and implementing the program for guests' health and safety, the company focused on investments in Istra Premium Camping Resort 5*. Considering the current consumer trends and preferences, this is a particularly attractive accommodation category, which represents a specific product of high guest loyalty, especially due to the perception of reduced health risks. Given the high occupancy rate of Istra Premium Camping Resort 5* in 2020 despite the unfavorable circumstances, the amount of HRK 10 million has been invested in enhancing service quality in 2021, mostly in the Glamping zone and food and beverages facilities. Service quality
IN YEAR 2021 INVESTMENTS WERE FOCUSED ON COMPLETION OF STARTED PROJECTS
has also been enhanced through targeted investments in three Valamar hotels. These include improvements of the exterior and interior of the Champagne Breakfast & Brunch restaurant and Spinnaker restaurant at the Valamar Riviera Hotel, situated at the old town waterfront in of Poreč, which will enhance the new Old Town Holiday label within the Valamar Hotels & Resorts brand. Investments in this category include the promotion of the Sunny by Valamar economy brand. As part of its rebranding, the Miramar Sunny Hotel has improved Breakfast & Lunch services, introduced the Valfresco 24/7 service with a rich menuavailable to guests, a digital library and the Chill & Play Zone, which makes digital books and fun games available to our guests. In addition to the above, the investment includes a self-service laundry and 30 rearranged accommodation units. Investments in the Rubin Sunny Hotel are focused on renovating its interior public spaces.
Valamar launched a new lifestyle brand called [PLACES] by Valamar, intended for guests seeking freedom of choice, modern design and authentic destination experience with full respect for nature and the environment. Lifestyle hotels have become a trend in the global hotel industry recently because they go beyond the limits of the traditional hospitality industry. They are focused on creating unique experiences and offering authentic services, i.e. on presenting the most valuable things in a destination. Thus they are able to attract modern and young travellers, especially Millennials
who particularly enjoy such type of travelling, including encounters with like-minded people, tasting natural foods and dishes and who care about environmental sustainability. The first Valamar's hotel under this new brand is HVAR [PLACESHOTEL] by Valamar in Stari Grad on the island of Hvar (the ex Lavanda hotel). Valamar invested close to HRK 53 million in its refurbishment, and it was opened mid of May 2021. The hotel has 179 rooms, which are a blend of the Mediterranean tradition and of the modern design.
Considering the aforementioned optimized investment plan in accordance with the current circumstances, sufficient funds have been provided in this investment cycle for the completion of the first phase of investment in Valamar Pinea Collection Resort, while the accommodation for employees in Dubrovnik has been completed.
Valamar Riviera's Supervisory Board approved 2022 investments in the amount of HRK 180 million. The approved investments mostly relate to investments in the renovation and rebranding of the Corinthia Hotel in Baška to the level of the Sunny Plus brand, certain upgrades of the Valamar Bellevue Hotel 4* in Rabac, and continued investment in Istra Premium Camping Resort and Lanterna Premium Camping Resort. These investments also relate to some other investment projects as well as the maintenance of properties and facilities for guests in all destinations, continued investments in seasonal employee accommodation as well as continued investments in energy efficiency projects and digitalization projects.
Planned investments in the 2020/2021 cycle at the level of Imperial Riviera amounted to HRK 41 million and mostly were related to the final phases of investment projects in the Valamar Meteor Hotel and the Valamar Parentino Hotel, which were postponed due to the previously mentioned extraordinary circumstances caused by the COVID-19 pandemic.
By investing in the Valamar Parentino Hotel, finalized projects include the renovation of 40 accommodation units, a children's playground, a pool bar, parking lot and landscape design. The investment in the Valamar Meteor Hotel was worth HRK 85 million in total, enabling the hotel to have a series of new amenities and offer higher quality accommodation. The offer of the Valamar Meteor Hotel is oriented primarily towards families with children, towards guests seeking an active vacation and athletes of all profiles. The investment into the Valamar Meteor Hotel included the construction of a new outdoor pool and an expansion of the current one with new amenities and attractions for family vacation. Its indoor pool with wellness was also renovated according to the Valamar Sun & Spa concept. 111 hotel rooms were refurbished in the first investment phase, while the remaining 160 rooms were refurbished in the second phase.
Imperial Riviera d.d. plans investments in the amount of HRK 125 million for its 2022 investment cycle. The most important investments relate to the renovation of the Dalmacija Sunny Hotel by Valamar and the reconstruction of the restaurant on the beach below this hotel. They also include the construction of the Padova I beach with the restaurant and sanitary facilities in the destination of Rab. The biggest investment amounting to HRK 67 million is planned for the existing Dalmacija Sunny Hotel by Valamar in Makarska, which will be repositioned as Dalmacija [PLACESHOTEL] by Valamar. This investment includes the reconstruction of the existing and the construction of a new swimming pool, the arrangement of sundecks and a new pool bar, the renovation of 190 accommodation units and other spaces at the level of lifestyle design with an emphasis on digitalization and quality.
Tourism is a global industry, closely connected with the real and financial economy, geopolitical position and environmental sustainability. The integrity of this industry will determine its future growth. Given the importance of tourism and its overall impact on society, the Company and the Group monitor and assess risks at micro and macro levels. Moreover, when defining the strategy, particular attention is given to the short and medium–term risk impact in order to maintain business sustainability over time.
When monitoring and assessing risks the Company and Group use a proactive approach thus assessing the potential impact of each individual risk. The Company and Group consider risk management to be a key factor of differentiation among competitors. Risk management aims at creating sustainable value, thus offering reliability and security to numerous stakeholders.
There are five key steps in a risk management process:
1) Identifying potential risks;
2) Assessing identified risks;
5 KEY STEPS IN RISK MANAGEMENT PROCESS
3) Determining actions and responsibilities for efficient risk management; 4) Monitoring and overseeing preventive actions;
5) Exchanging information on risk management results conducted by the Management board.
The different types of risks facing Valamar can be classified into the following groups:
• Financial risks - related to financial variables, can have a negative impact on meeting liabilities for the company and the Group, liquidity, debt management etc.;
• Business risks - related to the way company business is conducted in terms of supply and demand, competition, adapting to market trends, investments, growth etc.;
• Operational risks - can arise from inadequate use of information, errors in business operations, non-compliance with internal procedures, human error, IT system, financial reporting and related risks, etc.;
• Global risks - can arise from natural disasters, pandemics, food shortage, social unrest, wars and other force majeure events beyond Valamar's control;
• Compliance risks - can arise from failure to comply with state laws and local regulations; risks related to changes in tax and other regulations.
In their day-to-day business activities, the Company and Group face a number of financial threats, especially:
1) Foreign exchange risk; 2) Interest rate risk; 3) Credit risk; 4) Price risk; 5) Liquidity risk; 6) Share-related risks; 7) Risk of inflation and increase in prices of purchased goods.
The Company and Group have a proactive approach in mitigating interest rate and foreign exchange risks, by employing available market instruments. Internal risk management goals and policies aim at protecting foreign currency inflows during seasonal activity and partial interest hedging of the principal loan amount.
The Company and Group conduct their business operations across national borders and are exposed to foreign exchange risks. They mainly result from changes in the euro/ kuna exchange rate. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities. Historically, most of our foreign revenue has been in euros, the currency in which the majority of our long-term debt is denominated. Hence, for the most part the Company and Group are naturally hedged from exchange rate risks. Since some liabilities are contracted in kunas, the Company and Group actively manage risks by using derivative instruments available on the financial market. The instruments are used according to operating assessments and expected market trends. In this way the cash flows are protected from the risk impact. Due to the emergence of exceptional circumstances caused by the COVID-19 pandemic in the first quarter of 2020, potentially strong depreciation pressures against the kuna/ euro currency pair affect the value of euro-denominated long-term debt and contractual forward transactions whose potential negative effects are sought to be controlled by the proactive management of agreed derivative financial instruments. In the event of a drastic decrease of euro inflows, the Company and the Group will use existing euro liquidity reserves to service the long term debt repayments and make adequate use of financial protection instruments, in accordance with the current state and future assessment of the Company's and the Group's foreign exchange position, expectations of movements in the value of the kuna/euro currency pair as well as other intercurrent relationships among world currencies.
Variable rate loans expose the Company and Group to cash flow interest rate risk. Actively, the Company and Group resort to derivative instruments in order to hedge cash flow and interest rate by applying interest rate swaps. The economic effect of such swaps is the conversion of variable interest rate loans into fixed interest rate loans for a precommitted hedged part of the loan principal. Therefore, a major part of the loan portfolio (over 80%) is comprised of long-term fixed interest loans or, respectively, loans hedged by a derivative instruments (IRS). The Company and Group have interest-bearing assets (cash assets and deposits) so their revenue and cash flow depend on changes in market interest rates. This becomes evident especially during the season when the Company and Group have significant cash surpluses at their disposal. The Company and the Group expect a limited impact from the increased interest rate volatility consequent to the recent coronavirus pandemic, since a large portion of the Group's loan portfolio (89%) is made up of long-term fixed-rate loans, i.e. loans protected by derivative instruments (IRS).
Credit risk arises from cash assets, time deposits and receivables. According to the Company and Group sales policy, business transactions are conducted only with customers with suitable credit history, i.e. by agreeing advances, bank securities and (for individual customers) payments made through major credit card companies. In order to reduce credit risk, the Company and the Group continuously monitor their exposure to the business parties and their creditworthiness, obtain instruments for securing receivables (bills of exchange, debentures and guarantees), thus reducing the risks of uncollectability of their receivables for the services provided. In view of the negative effects of COVID-19 on the customers of the Company and the Group, especially tour operators and travel agencies, the impact of the currently unfavorable circumstances on the related parties is being closely monitored, while actively reviewing the credit ratings and their potential to overcome current challenges.
The Company and Group hold equity securities and are exposed to equity price risk due to security price volatility. Valamar is not an active participant in the market trade in terms of trading in equity and debt securities. However, with investments in buying Imperial Riviera and Helios Faros shares, the company is exposed to the said risk to a certain extent.
The Company and Group have a sound liquidity risk management. Sufficient funds for meeting liabilities are available at any given moment through adequate amounts from contracted credit lines and by ensuring credit line availability in the future. Liquidity risk is managed by generating strong positive net operating cash flows, while capital investments are financed by credit lines. Credit lines for 2020 and 2021 have been contracted with reputable financial institutions, while credit repayments in general are in line with the period of significant cash inflows from operating activities. The repayment of the major credit lines coincides with periods of strong cash inflows from operations. The Company and Group monitor the level of available funds through daily cash and debt reports. Long-term cash flow forecasts as well as annual (monthly) forecasts are based on the set budget. After meeting the needs of working capital management the surplus is deposited in the treasury. From there the funds are invested in interest-bearing current accounts, time deposits, money market deposit accounts and marketable securities. Only instruments with suitable maturities and sufficient liquidity are selected, according to the forecast needs for liquid funds.
COVID-19 pandemic, as an external stressor to the operations of the Company and the Group, will create uncertain pressures on operating cash flow. In accordance with prudent management of the now increased liquidity risk, escalation plans for minimizing costs, maintaining liquidity, solvency of the company and maintaining business continuity were developed and activated, together with applications for support measures and assistance to the economy and the tourism sector, including temporary deferral of payment of overdue principal on long-term loans in accordance with the given opportunity of a moratorium on the repayment of credit obligations.
The market value of shares is the riskiest asset class due to its volatility resulting from the volatile nature of the whole capital market, macroeconomic trends on markets where the Company and Group operate and discrepancies between the expectations of financial analysts and the actual results. Furthermore, other contributing factors are also changes in the dividend policy, various activities in the segment of consolidations, mergers, acquisitions and forming of strategic partnership, the instability of the business model of the Company and Group as well as the fluctuations in the financial results for the Company and Group. In case any negative implications happen to be associated with these factors there is a considerable risk of market value drop that will in turn prevent investors from selling their shares at a fair market price.
As the Omicron COVID-19 variant spreads, countries have reimposed mobility restrictions. Rising energy prices and supply disruptions have resulted in higher and more broad-based global inflation than generally anticipated. Inflationary pressures my remain high, as some supplydemand mismatches and labour shortages could last throughout 2022. Rising geopolitical uncertainties in Europe (particularly surrounding the Russia-Ukraine conflict) and elsewhere are a main downside risk, adding pressure on energy prices. Inflation and rising prices of purchased goods may have an effect on the purchasing power of foreign and domestic guests, as well as on the level of our selling prices.
The Company and the Group have also been exposed to the impact of the changes in the purchase prices for energy products (especially electrical energy) as well as prices for food and beverages and consumables. The Company and the Group have been continually making considerable investments in energy efficiency and renewables in order to mitigate the impact of a possible increase in energy prices as well as to decrease their dependence on suppliers. For a certain part of our assortment of food, beverages and consumables we have multi-annual fixed price contracts in place.
The Company and the Group have a very high share of direct channels and other online channels in total sales, and sales prices are largely formed dynamically, during the year. Accordingly, the Company and the Group have the flexibility to manage price levels in 2022.
The Company and Group are constantly exposed to risks threatening its competitiveness and future stability. Since the Company and Group own significant number of real estates, this business model requires a large amount of capital in order to maintain high product and service standards. Various large capital investments in the upgrade of products and services can surpass budget expectations, delay the end of construction works, as well as the town-planning regulations and fiscal policy may be changed. These risks can increase costs for the Company and Group, and have a negative impact on the cash flow and revenues. In the previous period, the company and Group's business decisions improved their results and operating efficiency in the demanding Mediterranean market. These positive trends are expected to continue in the future through a prudent long-term strategic management.
Over 95% of Valamar's guests come from other countries and they are very careful when choosing their vacation destination in the competitive Mediterranean environment. Stable domicile countries macroeconomic indicators are important decision-making factors especially those relating to exchange rates and the price of goods and services because they directly affect the guests' purchasing power. However small, the share of domestic guests is also important; it is a segment directly influenced by various other macroeconomic indicators: employment/ unemployment rate, GNP rise/ fall, industrial production and others. They all have a direct impact not only on the purchasing power of Croatian residents but they also determine whether they will choose to spend their vacation on the Adriatic.
When considering risks related to the tourism and hospitality industry, in previous years, the Croatian economy has been afflicted by the consequences of a global financial crisis and economic standstill. In this period, the tourism and hospitality industry has been among the rare growing industries in Croatia. Moreover, the marked seasonality of this industry leads to insufficient use of the Company and Group's resources. After joining the European Union, the Croatian market became part of a large European market, while safety risks decreased after joining the NATO. Good management of human resources is vital for the future growth of the Company and Group. Risks related to shortages of specific skills, expertise and jobs are connected with the opening and expansion of the labor market. Valamar Riviera is one of the largest and most desirable employers in tourism. The active approach towards HR management develops key talents and supports investments in training opportunities. We determine the needs for new skills and expertise by following emerging global trends in tourism. In this way, we are able to respond to challenges effectively. Through a continual dialogue with our social partners, we have ensured a high level of workers' rights in terms of competitive salaries, reward systems, career development, employees' wellbeing and cooperation with training institutions from all parts of Croatia.
Operational risks are risks connected with direct or indirect losses that arise form inadequate or wrong internal or external processes within the Company and the Group. They include the creation and analysis of financial reporting data (also known as "financial reporting risk") and also the potential insufficient and inadequate internal and external information sharing. When implementing the system of operational risk management, the Company and Group focused on its continuity and complexity due to the size of the organization. The benefits of the system include i) defining and identifying the Company and Group risk profile in relation to the operating risk ii) identifying and managing the known risk occurrences in order to decrease the Company and Group costs and iii) data analysis which indicates the business trends for the Company and Group and trends in the domestic economy.
The Company and Group are aware of the reliability of IT business solutions and safety in the cyber world. Hence, they continually upgrade, develop and implement new technologies in everyday business operations. A special focus is given to providing sufficient resources for the development and implementation of new technologies related to ICT, data protection, and upgrade of the current business systems and implementation of new ones.
Despite improved security and political conditions, which have encouraged to a certain extent investments into tourism and hospitality, there are challenges that the Croatian tourism has to face, such as:
• Periods of global financial crisis which reduce the purchasing power of the travelling-prone population;
• Security and political issues related to globally escalating terrorism threats;
• Security and political instability in the immediate environment of the neighbouring countries.
Environmental risks can also have an adverse effect on the Company and Group's business results, primarily in terms of customer satisfaction with the whole experience while staying at one of Valamar's properties and this can affect the number of arrivals. The possible risks can include: sea pollution (caused by oil or chemical spillage), but also long-term water quality reduction and coast pollution due to inadequate waste disposal and waste water treatment as well as extensive use of agricultural fertilizers. Other environmental conditions typical for climate changes such as long drought periods or long rainy periods can directly influence the guests' length of stay in the hotels and campsites as well as increasing the operating costs. A number of other natural disasters and calamities (earthquakes, fires, floods and rainstorms), air pollution caused by toxic gas emissions from industrial plants and vehicles, as well excessive urbanization and the introduction of plant and animal invasive species should also be taken into consideration. Likewise, disease outbreaks and pandemics can adversely affect Valamar's business results. In order to minimize their impact, Valamar is actively tracking pandemic and health risk levels worldwide, especially on its source markets, and taking proactive steps in their management. The COVID-19 pandemic is a recent example of the operational and financial disruption to the global economy, especially tourism flows, since almost all global destinations were blocked by travel restrictions. The emergence of exceptional circumstances in the Republic of Croatia and the introduction of extraordinary measures to prohibit gatherings, movements and the operation of restaurants and shops, all with the primary objective of protecting the population from the risk of contagion, resulted in the expected consequential and immediate disruption of the Company's and the Group's operations, cancellation of accommodation and other contracted services by partner agencies and guests.
Changes in tax laws and other regulations pose a very serious threat and represent a demanding segment in risk management because in this particular situation the possibilities for the Company and Group are limited. In previous years, there has been a number of important changes in tax and non-tax charging regulations, which have adversely affected the Company and Group profitability and their competitiveness :
• In March 2012 the standard VAT rate grew from 23% to 25%, in January 2013 a new 10% VAT rate was introduced only to be replaced within a year by a 13% VAT rate applicable to the tourism and hospitality industry (January 2014), while in January 2017 a new 25% VAT rate was introduced for F&B (a la carte) services;
• In May 2012 the health insurance employer contribution rate fell from 15% to 13% and then in April 2014 it grew back to 15%;
• Frequent increases in various fees and charges regarding water distribution, waste disposal and the like;
• Tourist tax increase in 2018 ranging between HRK 2.5 and HRK 8.0 per person per overnight, depending on the class of the destination and utilization period;
• In January 2020 the VAT rate for a la carte food services was reduced from 25% to 13%.
Such frequent changes in laws regulating taxes and parafiscal charges often take place only after the business policy and budget for the next financial year have been approved and commercial terms and conditions with partners agreed. All this jeopardizes the Company and Group financial position and future investment plans as well as credibility towards shareholders. The Company and Group are also threatened by changes in regulations governing concession fees for maritime domain and tourism land use, the latter still presenting unresolved legal issues. Given the nature of the Company and Group's business, the right to use parts of the maritime domain as well as land for tourism purposes is of vital importance for future growth, especially for campsite-related operations.
The Company and the Group continuously strive to develop and operate according to good practices of corporate governance. The business strategy, corporate policy, key corporate regulations and business practice have set a high standard of corporate governance and are all geared towards creating a transparent and efficient business operation while forging solid bonds with the local community. The Management Board fully complies with the provisions of the adopted Corporate Governance Act. After the company was listed on the regulated market of the Zagreb Stock Exchange, the Company has also complied with the Zagreb Stock Exchange Governance Code. The Company respects and implements the prescribed corporate governance measures (as reported in detail in the prescribed annual questionnaire and published as prescribed on the Zagreb Stock Exchange and Valamar Riviera websites). The Company has harmonized its general corporate governance acts with the Corporate Governance Code to the applicable extent.
Since the beginning of the COVID-19 pandemic, Valamar Riviera has actively engaged in mitigating and controlling potential risks. On 2 March 2020 it formed the Risk Management Committee and adopted the Risk Management Rules. The Committee, tasked with assessing risk events and impacts on operations, guests and employees, determines the measures necessary to protect guests, employees and assets and organize business processes and operations. Depending on circumstances and risk intensity, the Committee decides on: adjusting the financial, business and contingency plan, the activation of escalation plans to safeguard company liquidity and solvency and maintain business continuity, and on other measures according to booking and revenue estimates. The Supervisory Board Presidium receives the Committee's reports on the current state, activities and estimated risk impact on the Company's operations at least once a month or more often as circumstances dictate. The Risk Management Committee consists of the Management Board (Željko Kukurin, President and Marko Čižmek, Member), Division Vice Presidents (Alen Benković, Davor Brenko, Ivana Budin Arhanić and David Poropat), Human Resources Director (Ines Damjanić Šturman) and Legal Affairs Head (Vesna Tomić).
The major direct Valamar Riviera's shareholders according to the Central Depository and Clearing Company data and the shareholders whom are Valamar Riviera's Management Board and Supervisory Board members are as follows: the Chairman of the Supervisory Board, Mr. Gustav Wurmboeck, holds a 100% stake in Wurmböck Beteiligungs GmbH, which holds 25,017,698 RIVP-R-A shares; the Deputy Chairman of the Supervisory Board, Mr. Franz
THE GROUP HAS ESTABLISHED HIGH STANDARDS OF CORPORATE GOVERNANCE IN ORDER TO OPERATE TRANSPARENTLY AND EFFICIENTLY
Lanschuetzer, holds 4,437,788 RIVP-R-A shares; the Deputy Chairman of the Supervisory Board, Mr. Mladen Markoč, holds 30,618 RIVP-R-A shares; the Member of the Supervisory Board Mr. Georg Eltz holds a total of 6,545,367 RIVP-R-A shares, of which directly 20,463 RIVP-R-A shares, and indirectly through a 100% stake in company Satis d.o.o. 6,524,904 RIVP-R-A shares; the President of the Management Board, Mr. Željko Kukurin, holds 126,360 RIVP-R-A shares; and the Member of the Management Board Mr. Marko Čižmek holds 53,128 RIVP-R-A shares. The Company defined the process of preparing and disclosing financial reports in a detailed internal document. With this, the financial reporting procedure is set within a system of internal review and risk management. Moreover, in order to monitor and mitigate the financial reporting risk, the Company uses the measures described in "The Risks of the Company and the Group".
The Companies Act and the Company Statute define the General Assembly's authority and prescribe how it meets and works. The meeting invitation, proposals and the adopted resolutions are made public according to the provisions of the Companies Act, Capital Market Act and the Zagreb Stock Exchange Rules. There is a time limit related to the voting right at the General Assembly: according to the provisions of the Croatian Companies Act, shareholders are required to register their participation within the prescribed time limit in order to attend the General Assembly. Under no circumstances can the financial right arising from securities be separated from holding the securities. There are no securities with special control rights nor are there any limitations to voting rights at the Company (one share, one vote).
The Company Statute complies with the Croatian Companies Act and the provisions of the Procedure of appointment, i.e. the election and profile of the Management Board and the Supervisory Board and defines the procedure of appointing and recalling members of the Management Board and Supervisory Board. There are no limitations based on gender, age, education, profession or similar. The Companies Act determines any amendments to the Company Statute, without any additional limitations. The Management Board members' authority fully complies with the regulations prescribed by the Companies Act.
The Company acquires treasury shares based on and in accordance with the conditions determined by the General Assembly's decision on acquisition of treasury shares dated on 9 May 2019 which is in force as of 17 November 2019. The Company does not have a share-buyback program or an employee share ownership plan. The Company holds and acquires treasury shares as a form of rewarding the Management and key managers pursuant to the Company acts on the long-term reward plan and for the purpose of dividend payout in rights - Company share to the equity holders. During 2021 the Company wasn't involved in treasury shares acquisition neither disposal of its own shares.
Management Board: Mr. Željko Kukurin, President of the Management Board, and Mr. Marko Čižmek, Member of the Management Board.
Pursuant to the provisions of the Capital Market Act and Regulation (EU) no. 596/2014, the Company has determined its key management: four vice presidents: Alen Benković, Davor Brenko, Ivana Budin Arhanić and David Poropat; and 23 sector directors and managers: Ines Damjanić Šturman, Tomislav Dumančić, Ljubica Grbac, Flavio Gregorović, Marin Gulan, Vlastimir Ivančić, Željko Jurcan, Ivan Karlić, Dario Kinkela, Mauro Teković, Mile Pavlica, Tomislav Poljuha, Mirella Premeru, Bruno Radoš, Sandi Sinožić, Martina Šolić, Andrea Štifanić, Dragan Vlahović, Ivica Vrkić, Mario Skopljaković, Marko Vusić and Vesna Tomić.
On 3 December 2021, the Supervisory Board appointed Mr. Željko Kukurin as the CEO, and Mr. Marko Čižmek and Ms. Ivana Budin Arhanić as Management Board members for a new four-year term of office, with effect from 1 January 2022. Also, with effect from 1 January 2022, the Company appointed senior executives as in accordance with provisions of the Capital Markets Act and of the Regulation No. 596/2014 of the EU. The following senior executives were appointed: 3 Senior Vice Presidents: Alen Benković, Davor Brenko and David Poropat, 2 Vice Presidents: Sebastian Palma and Ines Damjanić Šturman, and 21 Sector Directors and Heads: Tomislav Dumančić, Ljubica Grbac, Flavio Gregorović, Marin Gulan, Vlastimir Ivančić, Željko Jurcan, Ivan Karlić, Dario Kinkela, Mauro Teković, Mile Pavlica, Tomislav Poljuha, Mirella Premeru, Bruno Radoš, Sandi Sinožić, Martina Šolić, Andrea Štifanić, Dragan Vlahović, Ivica Vrkić, Mario Skopljaković, Marko Vusić and Vlatka Kocijan.
Supervisory Board: Mr. Gustav Wurmböck - Chairman, Mr. Franz Lanschützer - Deputy Chairman, Mr. Mladen Markoč - Deputy Chairman, and members: Mr. Georg Eltz, Mr. Daniel Goldscheider, Mr. Boris Galić and Mr. Ivan Ergović (employee representative).
In order to perform efficiently its function and duties as prescribed by the
Audit Act and the Corporate Governance Act, the Supervisory Board has formed the following bodies:
Presidium: Mr. Gustav Wurmböck - Chairman, and members: Mr. Franz Lanschützer and Mr. Mladen Markoč.
Audit Committee: Mr. Georg Eltz - Chairman, and members: Mr. Mladen Markoč, and Mr. Boris Galić
Investment Committee: Mr. Franz Lanschützer - Chairman and members: Mr. Georg Eltz and Mr. Gustav Wurmböck.
Committee on Digitization and Sustainability: Mr Daniel Goldscheider, Chairman and members: Mr Franz Lanschützer and Mr Gustav Wurmböck
Compliant to effective regulations and Company by laws, the Management and Supervisory Board primarily act through meetings and by correspondence in their decision-making.
The Company has concluded Employment contracts with the President and a member of the Management Board for the duration of the term for which they were appointed, and a member of the Supervisory Board, employee representative, has an employment contract for an indefinite period.
Related party transactions among the Group companies are carried out according to usual commercial terms and conditions and deadlines and under market prices.
In the period considered, the Company realised HRK 321.5 million revenues from related party transactions, which includes HRK 280 million difference between the book and market value for the real estate, which was part of the share capital increase of Imperial Riviera d.d. as in accordance with the decision of the Imperial Riviera's General Assembly from 10 September 2021. This is compared to the amount of HRK 8.7 million, which the Company realised from related party transactions in the same period of 2020. Revenues from related party transactions for the Group amounted to HRK 8.6 million (vs. HRK 1.9 million in the same period of 2020). Expenses for the Company amounted to HRK 4.5 million (vs. HRK 1.4 million in the same period of 2020), and to HRK 720 thousand for the Group (vs. HRK 235 thousand in the same period in 2020).
Receivables and liabilities in connection with related parties as at 31 December 2021 amount as follows: the Company's receivables amount to HRK 27.1 million (vs. HRK 546 thousand at the end of 2020), and the Group's receivables amount to HRK 7.3 million (vs. HRK 331 thousand at the end of 2020). The Company's liabilities amount to HRK 131 thousand (vs. HRK 220 thousand at the end of 2020), and the Group's liabilities amount to HRK 63 thousand (vs. HRK 84 thousand at the end of 2020).
On 14 February 2022, the Management Board compiled the Related Party Transactions Report as in accordance with the provision referred to in Article 497 of the Companies Act. In accordance with paragraph 3 of Article 497, the Management Board declares that, according to the circumstances known at the time when a particular legal transaction or an activity with a related party was undertaken, the Company received an appropriate counter-performance, without any damages for the Company.
TRANSACTIONS WITH RELATED PARTIES UNDER USUAL COMMERCIAL TERMS AND CONDITIONS
The following subsidiaries were registered on 2 September 2011: Podružnica za turizam RABAC, with registered office in Rabac, Slobode 80, Podružnica za turizam ZLATNI OTOK, with registered office in Krk, Vršanska 8. The following branch office was registered on 4 October 2013: Podružnica za turizam DUBROVNIK BABIN KUK, with registered office in Dubrovnik, Vatroslava Lisinskog 15a. The following branch office was registered on 1 October 2014: Podružnica za savjetovanje u vezi s poslovanjem i upravljanjem ZAGREB, with registered office in Zagreb, Miramarska 24. The following branch office was registered on 1 April 2017: Podružnica za turizam BRIONI, with registered office in Pula, Puntižela 155.
The subsidiaries of Rabac, Zlatni otok, Dubrovnik-Babin kuk and Brioni are the drivers of economic growth in their local communities. They operate at their destinations and support their development by promoting further investments and the development of tourism while participating in social and business activities.
The Company also established offices on Rab island, in Makarska and in Stari Grad on the Hvar island to increase the efficiency and streamline the management of operations as determined by the provisions of the concluded Hotel management contracts with Imperial Riviera d.d. and Helios Faros d.d.
Performance of Valamar Riviera's share and Zagreb Stock Exchange and travel and leisure indices in 2021
During 2021, the highest achieved share price in regular trading on the regulated market was HRK 33.20, and the lowest HRK 26.50. On 31 December 2021 the price was HRK 33.00 which represents a increase of 11.5% compared to the last price in 2020. With a total turnover of HRK 182,0 million21, Valamar Riviera share was the third share on the Zagreb Stock Exchange in terms of turnover during 2021.
In addition to the Zagreb Stock Exchange index, the joint stock index of the Zagreb and Ljubljana stock exchanges ADRIAprime, the stock is also a component of the Vienna Stock Exchange index (CROX22 and SETX23) and the Warsaw Stock Exchange (CEEplus24)
as well as the SEE Link regional platform index (SEELinX and SEELinX EWI)25. Zagrebačka banka d.d. and Interkapital vrijednosni papiri d.o.o. perform the activities of market makers with ordinary shares of Valamar Riviera listed on the Leading Market of the Zagreb Stock Exchange d.d.
The Company did not acquire or dispose of its own shares in the period from 1 January 2021 to 31 December 2021. As of 31 December 2021 the Company holds 4,139,635 treasury shares, which is 3.28% of the share capital.
Valamar Riviera actively holds meetings and conference calls with domestic and foreign investors, as well as presentations for investors, providing support for the highest possible level of transparency, creating
additional liquidity, increasing share value and involving potential investors. By continuing to actively represent Valamar Riviera, we will strive to contribute to further growth in value for all stakeholders with the intention of recognizing the Company's share as one of the leaders on the Croatian capital market and one of the leaders in the CEE region. Analytical coverage of Valamar Riviera is provided by: 1) ERSTE bank d.d., Zagreb; 2) Interkapital vrijednosni papiri d.o.o., Zagreb; 3) Raiffeisenbank Austria d.d., Zagreb; 4) Zagrebačka banka d.d., Zagreb.
In October, at a conference of the Zagreb Stock Exchange and Croatian pension investment fund industry, Valamar Riviera was ranked third in the Investor Relations Award in Croatia in 2021.
The Management Board expresses its gratitude to all shareholders, business partners, and guests for their support and trust, and particularly to all employees for their contribution.
On 20 April 2021 Integrated Annual Report and Corporate Social Responsibility for 2020 was published, which also includes a non-financial report. The main goal of the report, prepared in accordance with the Standards of the Global Reporting Initiative (GRI), is to further present the strategic and long-term insight into the company's operations to all key stakeholders, including shareholders, employees, partners, guests and the wider community with special focus on sustainable business as a basis for further development of the company. The report also includes environmental, social and management factors in line with the ESG components of responsible investment. The report is available on the websites of the Zagreb Stock Exchange and Valamar Riviera: www.valamar-riviera.com.
As one of the largest employers in Croatia (as of 31 December 2021, the Group employed a total of 3,031 employees, of which 2,236 permanent, and the Company 2,436 employees, of which 1,842 permanent), the Company and the Group systematically and continuously invest in the development of their human resources through a comprehensive strategic approach to their management that includes a transparent recruitment process, clear goals, measuring employee performance and investing in employee development, as well as their careers, and encouraging two-way communication.
In the course of the fourth quarter of 2021 (including the period 1 January 2021 – 31 December 2021), the Company's Management Board performed the actions provided by law and the Articles of Association and regarding the management and representation of the Company and planned a business policy that was implemented with prudent care. The Company's Management Board will continue to undertake all the necessary measures in order to ensure sustainability and business growth. The quarterly separate and consolidated fnancial statements for the fourth quarter of 2021 (including the period 1 January 2021 to 31 December 2021) were adopted by the by the Management Board on 16 February 2022. The Management Board expresses its gratitude to all shareholders, business partners, and guests for their support and trust, and particularly to all employees for their contribution.
Management Board of the Company
Željko Kukurin Marko Čižmek Ivana Budin Arhanić Management Board Management Board Management Board
This report contains certain outlook based on currently available facts, findings and circumstances and estimates in this regard. Our outlook is based including, but no limited on a) results achieved in 2021; b) operating results achieved by 21 February 2022; c) current booking status; d) 2022 year end business results forecast; e) temporary business suspension (Pause, restart); f) currently adopted set of support measures by the Croatian government, Croatian National Bank, Croatian Bank for Reconstruction and Development, competent ministries as well as state and local authorities; g) the absence of further significant negative effects of the risks to which the Company and the Group are exposed.
Outlook statements are based on currently available information, current assumptions, forward-looking expectations and projections. This outlook is not a guarantee of future results and is subject to future events, risks, and uncertainties, many of which are beyond the control of, or currently unknown to Valamar Riviera, as well as potentially incorrect assumptions that could cause the actual results to materially differ from the said expectations and forecasts. Risks and uncertainties include, but are not limited to those described in the chapter "Risks of the Company and the Group". Materially significant deviations from the outlook may arise from changes in circumstances, assumptions not being realized, as well as other risks, uncertainties, and factors, including, but no limited to:
Economic conditions, security and political conditions, trends and events in the capital markets of the Republic of Croatia and Valamar Riviera's source markets;
Spending and disposable income of guests, as well as guests' preferences, trust in and satisfaction with Valamar Riviera's products and services;
Should materially significant changes to the stated outlook occur, Valamar Riviera shall immediately inform the public thereof, in compliance with Article 459 of the Capital Market Act. The given outlook statements are not an outright recommendation to buy, hold or sell Valamar Riviera's shares.
In accordance with provisions of Law on Capital Market, Marko Čižmek, Management board member responsible for finance, treasury and IT business as well as relations with institutional investors and Ljubica Grbac director of Department of Finance and Accounting, procurator and person responsible for finance and accounting, together as persons responsible for the preparation of annual reports of the company VALAMAR RIVIERA d.d. seated in Poreč, Stancija Kaligari 1, OIB 36201212847 (hereinafter: Company), hereby make the following
| Year: | 2021 | ||
|---|---|---|---|
| Quarter: | 4 | ||
| Registration number (MB): | 3474771 | HR Issuer's home Member State code: |
|
| Entity's registration number (MBS): | 40020883 | ||
| Personal identification number (OIB): | 36201212847 | LEI: | 529900DUWS1DGNEK4C68 |
| Institution code: | 30577 | ||
| Name of the issuer: | Valamar Riviera d.d. | ||
| Postcode and town: | 52440 | Poreč | |
| Street and house number: | Stancija Kaligari 1 | ||
| E-mail address: | [email protected] | ||
| Web address: | www.valamar-riviera.com | ||
| Number of employees (end of the reporting period): |
2989 | ||
| Consolidated report: | KD | (KN-not consolidated/KD-consolidated) | |
| Audited: | RN | (RN-not audited/RD-audited) | |
| Names of subsidiaries (according to IFRS): |
Registered office: | MB: | |
| Valamar Obertauern GmbH | Obertauern | 195893 D | |
| Valamar A GmbH | Tamsweg/Vienna | 486431 S | |
| Palme Turizam d.o.o. | Dubrovnik | 2006103 | |
| Magične stijene d.o.o. | Dubrovnik | 2315211 | |
| Bugenvilia d.o.o. | Dubrovnik | 2006120 | |
| Imperial Riviera d.d. | Rab | 3044572 | |
| Bookkeeping firm: | No | ||
| Contact person: | Sopta Anka | ||
| (only name and surname of the contact person) | |||
| Telephone: | 052 408 188 | ||
| E-mail address: | [email protected] | ||
| Audit firm: | |||
| (name of the audit firm) | |||
| Certified auditor: | |||
| (name and surname) | |||
(authorized representative's signature) L.S.
| Last day of the | At the reporting | ||
|---|---|---|---|
| ADP | preceding business | date of the current | |
| Item | code | year | period |
| 1 | 2 | 3 | 4 |
| A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID | 001 | ||
| B) FIXED ASSETS (ADP 003+010+020+031+036) | 002 | 6.087.157.859 | 5.671.819.566 |
| I. INTANGIBLE ASSETS (ADP 004 to 009) | 003 | 46.400.186 | 39.086.495 |
| 1 Research and Development | 004 | ||
| 2 Concessions, patents, licences, trademarks, software and other rights | 005 | 37.551.928 | 30.356.827 |
| 3 Goodwill | 006 | 6.567.609 | 6.567.609 |
| 4 Advance payments for purchase of intangible assets | 007 | ||
| 5 Intangible assets in preparation | |||
| 008 | 2.280.649 | 2.162.059 | |
| 6 Other intangible assets | 009 | ||
| II. TANGIBLE ASSETS (ADP 011 to 019) | 010 | 5.662.917.241 | 5.221.568.500 |
| 1 Land | 011 | 976.429.207 | 980.924.514 |
| 2 Buildings | 012 | 3.560.463.801 | 3.363.126.345 |
| 3 Plants and equipment | 013 | 488.743.200 | 432.241.488 |
| 4 Tools, working inventory and transportation assets | 014 | 116.542.756 | 100.025.874 |
| 5 Biological asset | 015 | ||
| 6 Advance payments for purchase of tangible assets | 016 | 988.061 | 42.528 |
| 7 Tangible assets in preparation | 017 | 443.016.063 | 288.533.889 |
| 8 Other tangible assets | 018 | 72.791.725 | 53.493.881 |
| 9 Investments property | 019 | 3.942.428 | 3.179.981 |
| III. FIXED FINANCIAL ASSETS (ADP 021 to 030) | 020 | 46.430.294 | 82.071.741 |
| 1 Investments in holdings (shares) of undertakings within the group | 021 | ||
| 2 Investments in other securities of undertakings within the group | 022 | ||
| 3 Loans, deposits etc given to undertakings in a Group | 023 | ||
| 4 Investments in holdings (shares) of companies linked by virtue of participating interest | 024 | 46.054.207 | 76.533.067 |
| 5 Investment in other securities of companies linked by virtue of participating interest | 025 | ||
| 6 Loans, deposits etc. given to companies linked by virtue of participating interest | 026 | ||
| 7 Investments in securities | 027 | 147.054 | 220.812 |
| 8 Loans, deposits, etc. given | 028 | 89.033 | 5.177.862 |
| 9 Other investments accounted for using the equity method | 029 | ||
| 10 Other fixed financial assets | 030 | 140.000 | 140.000 |
| IV. RECEIVABLES (ADP 032 to 035) | 031 | ||
| 1 Receivables from undertakings within the group | 032 | ||
| 2 Receivables from companies linked by virtue of participating interests | 033 | ||
| 3 Customer receivables | 034 | ||
| 4 Other receivables | 035 | ||
| V. DEFERRED TAX ASSETS | 036 | 331.410.138 | 329.092.830 |
| C) CURENT ASSETS (ADP 038+046+053+063) | 037 | 737.066.269 | 1.217.957.755 |
| I. INVENTORIES (ADP 039 to 045) | 038 | 30.335.208 | 26.310.071 |
| 1 Raw materials | 039 | 29.329.354 | 25.050.909 |
| 2 Work in progress | 040 | ||
| 3 Finished goods | 041 | ||
| 4 Merchandise | 042 | 973.867 | 1.230.618 |
| 5 Advance payments for inventories | 043 | 31.987 | 28.544 |
| 6 Fixed assets held for sale | 044 | ||
| 7 Biological asset | 045 | ||
| II. RECEIVABLES (ADP 047 to 052) | 046 | 40.184.920 | 38.388.235 |
| 1 Receivables from undertakings within the group | 047 | ||
| 2 Receivables from companies linked by virtue of participating interest | 048 | 1.598.603 | 7.293.712 |
| 3 Customer receivables | 049 | 23.776.150 | 17.995.662 |
| 4 Receivables from employees and members of the undertaking | 297.549 | 738.835 | |
| 050 | |||
| 5 Receivables from government and other institutions | 051 | 10.162.443 | 9.116.616 |
| 6 Other receivables | 052 | 4.350.175 | 3.243.410 |
| III. SHORT-TERM FINANCIAL ASSETS (ADP 054 to 062) | 053 | 613.241 | 38.001.625 |
| 1 Investments in holdings (shares) of undertakings within the group | 054 | ||
| 2 Investments in other securities of undertakings within the group | 055 | ||
| 3 Loans, deposits, etc. to undertakings within the group | 056 | ||
| 4 Investments in holdings (shares) of companies linked by virtue of participating interest | 057 | ||
| 5 Investment in other securities of companies linked by virtue of participating interest | 058 | ||
| 6 Loans, deposits etc. given to companies linked by virtue of participating interest | 059 | ||
| 7 Investments in securities | 060 | ||
| 8 Loans, deposits, etc. given | 061 | 613.241 | 38.001.625 |
| 9 Other financial assets | 062 | ||
| IV. CASH AT BANK AND IN HAND | 063 | 665.932.900 | 1.115.257.824 |
| D) PREPAID EXPENSES AND ACCRUED INCOME | 064 | 55.358.952 | 23.768.145 |
| E) TOTAL ASSETS (ADP 001+002+037+064) | 065 | 6.879.583.080 | 6.913.545.466 |
| F) OFF-BALANCE SHEET ITEMS | 066 | 54.261.380 | 54.173.148 |
| Last day of the | At the reporting | ||
|---|---|---|---|
| Item | ADP code |
preceding business year |
date of the current period |
| 1 | 2 | 3 | 4 |
| LIABILITIES | |||
| A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+083+086+089) | 067 | 2.863.857.326 | 3.311.057.807 |
| I. INITIAL (SUBSCRIBED) CAPITAL | 068 | 1.672.021.210 | 1.672.021.210 |
| II. CAPITAL RESERVES | 069 | 5.223.432 | 5.223.432 |
| III. RESERVES FROM PROFIT (ADP 071+072-073+074+075) | 070 | 98.511.512 | 98.247.550 |
| 1 Legal reserves | 071 | 83.601.061 | 83.601.061 |
| 2 Reserves for treasury share | 072 | 136.815.284 | 136.815.284 |
| 3 Treasury shares and holdings (deductible item) | 073 | -124.418.267 | -124.418.267 |
| 4 Statutory reserves | 074 | ||
| 5 Other reserves | 075 | 2.513.434 | 2.249.472 |
| IV. REVALUATION RESERVES | 076 | ||
| V. FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) | 077 | 872 | 81.109 |
| 1 Financial assets at fair value through other comprehensive income (i.e. available for sale) | 078 | 872 | 81.109 |
| 2 Cash flow hedge - effective portion | 079 | ||
| 3 Hedge of a net investment in a foreign operation - effective portion | 080 | ||
| 4 Other fair value reserves | 081 | ||
| 5 Exchange differences arising from the translation of foreign operations (consolidation) | 082 | ||
| VI. RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) | 083 | 715.882.878 | 388.045.406 |
| 1 Retained profit | 084 | 715.882.878 | 388.045.406 |
| 2 Loss brought forward | 085 | ||
| VII. PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) | 086 | -329.593.506 | 104.374.607 |
| 1 Profit for the business year | 087 | 104.374.607 | |
| 2 Loss for the business year VIII. MINORITY (NON-CONTROLLING) INTEREST |
088 089 |
329.593.506 701.810.928 |
1.043.064.493 |
| B) PROVISIONS (ADP 091 to 096) | 090 | 141.118.430 | 166.154.627 |
| 1 Provisions for pensions, termination benefits and similar obligations | 091 | 26.089.854 | 29.827.505 |
| 2 Provisions for tax liabilities | 092 | ||
| 3 Provisions for ongoing legal cases | 093 | 57.420.166 | 50.117.237 |
| 4 Provisions for renewal of natural resources | 094 | ||
| 5 Provision for warranty obligations | 095 | ||
| 6 Other provisions | 096 | 57.608.410 | 86.209.885 |
| C) LONG-TERM LIABILITIES (ADP 098 to 108) | 097 | 2.867.349.347 | 2.614.508.279 |
| 1 Liabilities towards undertakings within the group | 098 | ||
| 2 Liabilities for loans, deposits, etc. to companies within the group | 099 | ||
| 3 Liabilities towards companies linked by virtue of participating interest | 100 | ||
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interest | 101 | ||
| 5 Liabilities for loans, deposits etc. | 102 | ||
| 6 Liabilities towards banks and other financial institutions | 103 | 2.770.275.555 | 2.547.107.295 |
| 7 Liabilities for advance payments | 104 | ||
| 8 Liabilities towards suppliers | 105 | ||
| 9 Liabilities for securities | 106 | ||
| 10 Other long-term liabilities | 107 | 38.781.433 | 15.636.060 |
| 11 Deferred tax liability | 108 | 58.292.359 | 51.764.924 |
| D) SHORT-TERM LIABILITIES (ADP 110 to 123) | 109 | 934.437.190 | 733.966.582 |
| 1 Liabilities towards undertakings within the group | 110 | ||
| 2 Liabilities for loans, deposits, etc. to companies within the group | 111 | ||
| 3 Liabilities towards companies linked by virtue of participating interest | 112 | 39.205 | |
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interest | 113 | ||
| 5 Liabilities for loans, deposits etc. | 114 | 5.304.000 | |
| 6 Liabilities towards banks and other financial institutions | 115 | 733.061.607 | 565.523.996 |
| 7 Liabilities for advance payments | 116 | 69.608.737 | 40.344.672 |
| 8 Liabilities towards suppliers | 117 | 61.808.783 | 67.470.609 |
| 9 Liabilities for securities | 118 | 6.625.196 | |
| 10 Liabilities towards employees | 119 | 19.186.775 | 28.794.007 |
| 11 Taxes, contributions and similar liabilities | 120 | 6.130.006 | 16.508.477 |
| 12 Liabilities arising from the share in the result | 121 | 389.276 | 379.676 |
| 13 Liabilities arising from fixed assets held for sale 14 Other short-term liabilities |
122 | ||
| E) ACCRUALS AND DEFERRED INCOME | 123 124 |
32.322.810 72.820.787 |
14.905.940 87.858.171 |
| F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) | 125 | 6.879.583.080 | 6.913.545.466 |
| G) OFF-BALANCE SHEET ITEMS | 126 | 54.261.380 | 54.173.148 |
| ADP | Same period | Current period | |||
|---|---|---|---|---|---|
| Item | code | of the previous year | |||
| 1 | 2 | Cummulative 3 |
Quarter 4 |
Cummulative 5 |
Quarter 6 |
| I. OPERATING INCOME (ADP 002 to 006) | 001 | 675.610.635 | 22.464.169 | 1.644.008.023 | 106.152.995 |
| 1 Income from sales with undertakings within the group | 002 | ||||
| 2 Income from sales (outside group) | 003 | 642.478.457 | 8.056.412 | 1.605.127.860 | 91.199.674 |
| 3 Income from the use of own products, goods and services | 004 | 460.699 | 87.347 | 325.986 | 90.163 |
| 4 Other operating income with undertakings within the group | 005 | ||||
| 5 Other operating income (outside the group) | 006 | 32.671.479 | 14.320.410 | 38.554.177 | 14.863.158 |
| II. OPERATING EXPENSES (ADP 008+009+013+017+018+019+022+029) | 007 | 1.070.375.000 | 214.416.217 | 1.507.033.397 | 404.969.976 |
| 1 Changes in inventories of work in progress and finished goods | 008 | ||||
| 2 Material costs (ADP 010 to 012) | 009 | 254.642.998 | 40.535.117 | 458.262.170 | 81.928.193 |
| a) Costs of raw material | 010 | 136.855.464 | 14.448.099 | 252.132.447 | 31.728.573 |
| b) Costs of goods sold | 011 | 4.306.456 | 1.078.701 | 10.440.758 | 2.015.041 |
| c) Other external costs | 012 | 113.481.078 | 25.008.317 | 195.688.965 | 48.184.579 |
| 3 Staff costs (ADP 014 to 016) a) Net salaries and wages |
013 014 |
189.951.093 122.043.480 |
8.233.254 15.515.536 |
353.175.910 218.086.856 |
112.381.447 72.009.948 |
| b) Tax and contributions from salaries expenses | 015 | 46.270.696 | -3.660.131 | 88.789.363 | 25.390.341 |
| c) Contributions on salaries | 016 | 21.636.917 | -3.622.151 | 46.299.691 | 14.981.158 |
| 4 Depreciation | 017 | 496.444.044 | 119.802.666 | 507.335.969 | 124.816.968 |
| 5. Other expenses | 018 | 89.097.655 | 11.053.160 | 134.450.892 | 38.525.655 |
| 6. Value adjustments (ADP 020+021) | 019 | 1.509.899 | 664.572 | 1.669.684 | 1.650.614 |
| a) fixed assets other than financial assets | 020 | ||||
| b) current assets other than financial assets | 021 | 1.509.899 | 664.572 | 1.669.684 | 1.650.614 |
| 7 Provisions (ADP 023 to 028) | 022 | 28.714.012 | 28.714.012 | 40.313.157 | 40.313.157 |
| a) Provisions for pensions, termination benefits and similar obligations | 023 | 19.091.188 | 19.091.188 | 9.404.520 | 9.404.520 |
| b) Provisions for tax liabilities | 024 | ||||
| c) Provisions for ongoing legal cases | 025 | 9.622.824 | 9.622.824 | 2.744.361 | 2.744.361 |
| d) Provisions for renewal of natural resources | 026 | ||||
| e) Provisions for warranty obligations | 027 | ||||
| f) Other provisions | 028 | 28.164.276 | 28.164.276 | ||
| 8 Other operating expenses III. FINANCIAL INCOME (ADP 031 to 040) |
029 030 |
10.015.299 21.291.138 |
5.413.436 5.055.699 |
11.825.615 35.353.682 |
5.353.942 16.361.392 |
| 1 Income from investments in holdings (shares) of undertakings within the group | 031 | ||||
| 2 Income from investments in holdings (shares) of companies linked by virtue of participating interest |
032 | ||||
| 3 Income from other long-term financial investment and loans granted to undertakings within the group |
033 | ||||
| 4 Other interest income from operations with undertakings within the group | 034 | ||||
| 5 Exchange rate differences and other financial income from operations with undertakings within the group |
035 | ||||
| 6 Income from other long-term financial investments and loans | 036 | ||||
| 7 Other interest income | 037 | 674.539 | 479.063 | 307.295 | 162.426 |
| 8 Exchange rate differences and other financial income 9 Unrealised gains (income) from financial assets |
038 039 |
889.846 | 3.063.357 | 11.680.384 4.503.563 |
1.539.991 |
| 10 Other financial income | 040 | 19.726.753 | 1.513.279 | 18.862.440 | 14.658.975 |
| IV. FINANCIAL EXPENDITURE (ADP 042 to 048) | 041 | 125.931.773 | 20.567.950 | 71.256.632 | 26.512.011 |
| 1 Interest expenses and similar expenses with undertakings within the group | 042 | ||||
| 2 Exchange rate differences and other expenses from operations with undertakings within the group |
043 | ||||
| 3 Interest expenses and similar expenses | 044 | 63.062.608 | 17.812.387 | 66.258.463 | 17.904.865 |
| 4 Exchange rate differences and other expenses | 045 | 41.917.880 | 588.209 | 6.279.981 | |
| 5 Unrealised losses (expenses) from financial assets | 046 | 17.843.787 | 75.960 | ||
| 6 Value adjustments of financial assets (net) | 047 | ||||
| 7 Other financial expenses | 048 | 3.107.498 | 2.091.394 | 4.998.169 | 2.327.165 |
| V. SHARE IN PROFIT FROM COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST | 049 | 547.970 | 165.010 | ||
| VI. SHARE IN PROFIT FROM JOINT VENTURES | 050 | ||||
| VII. SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST | 051 | 1.643.580 | 620.757 | 144.413 | 144.413 |
| VIII. SHARE IN LOSS OF JOINT VENTURES IX. TOTAL INCOME (ADP 001+030+049 +050) |
052 053 |
696.901.773 | 27.519.868 | 1.679.909.675 | 122.679.397 |
| X. TOTAL EXPENDITURE (ADP 007+041+051+052) | 054 | 1.197.950.353 | 235.604.924 | 1.578.434.442 | 431.626.400 |
| XI. PRE-TAX PROFIT OR LOSS (ADP 053-054) | 055 | -501.048.580 | -208.085.056 | 101.475.233 | -308.947.003 |
| 1 Pre-tax profit (ADP 053-054) | 056 | 101.475.233 | |||
| 2 Pre-tax loss (ADP 054-053) | 057 | -501.048.580 | -208.085.056 | -308.947.003 | |
| XII. INCOME TAX | 058 | -142.242.789 | -61.281.055 | -7.232.013 | -59.313.290 |
| XIII. PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) | 059 | -358.805.791 | -146.804.001 | 108.707.246 | -249.633.713 |
| 1 Profit for the period (ADP 055-059) | 060 | 108.707.246 | |||
| 2 Loss for the period (ADP 059-055) | 061 | -358.805.791 | -146.804.001 | -249.633.713 |
| Item | ADP | Same period | Current period | ||
|---|---|---|---|---|---|
| code | of the previous year | ||||
| 1 | 2 | Cummulative 3 |
Quarter 4 |
Cummulative 5 |
Quarter 6 |
| DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations) | |||||
| XIV. PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 063-064) | 062 | ||||
| 1 Pre-tax profit from discontinued operations | 063 | ||||
| 2 Pre-tax loss on discontinued operations | 064 | ||||
| XV. INCOME TAX OF DISCONTINUED OPERATIONS | 065 | ||||
| 1 Discontinued operations profit for the period (ADP 062-065) | 066 | ||||
| 2 Discontinued operations loss for the period (ADP 065-062) | 067 | ||||
| TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations) | |||||
| XVI. PRE-TAX PROFIT OR LOSS (ADP 055+062) | 068 | ||||
| 1 Pre-tax profit (ADP 068) | 069 | ||||
| 2 Pre-tax loss (ADP 068) | 070 | ||||
| XVII. INCOME TAX (ADP 058+065) | 071 | ||||
| XVIII. PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) | 072 | ||||
| 1 Profit for the period (ADP 068-071) | 073 | ||||
| 2 Loss for the period (ADP 071-068) | 074 | ||||
| APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements) | |||||
| XIX. PROFIT OR LOSS FOR THE PERIOD (ADP 076+077) | 075 | -358.805.791 | -146.804.001 | 108.707.246 | -249.633.713 |
| 1 Attributable to owners of the parent | 076 | -329.593.506 | -135.203.327 | 104.374.607 | -217.494.776 |
| 2 Attributable to minority (non-controlling) interest | 077 | -29.212.285 | -11.600.674 | 4.332.639 | -32.138.937 |
| STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS) | |||||
| I. PROFIT OR LOSS FOR THE PERIOD | 078 | -358.805.791 | -146.804.001 | 108.707.246 | -249.633.713 |
| II. OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 080 to 087) | 079 | -73.904 | -18.286 | 97.850 | -55.289 |
| III. ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS(ADP 081 to 085) | 080 | -73.904 | -18.286 | 97.850 | -55.289 |
| 1 Changes in revaluation reserves of fixed tangible and intangible assets | 081 | ||||
| 2 Gains or losses from subsequent measurement of equity instruments at fair value through other comprehensive income |
082 | -73.904 | -18.286 | 97.850 | -55.289 |
| 3 Fair value changes of financial liabilities at fair value through statement of profit or loss, attributable to changes in their credit risk |
083 | ||||
| 4 Actuarial gains/losses on the defined benefit obligation | 084 | ||||
| 5 Other items that will not be reclassified | 085 | ||||
| 6 Income tax relating to items that will not be reclassified | 086 | -13.302 | -3.291 | 17.613 | -9.952 |
| IV. ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS (ADP 088 to 095) | 087 | ||||
| 1 Exchange rate differences from translation of foreign operations | 088 | ||||
| 2 Gains or losses from subsequent measurement of debt securities at fair value through other comprehensive income |
089 | ||||
| 3 Profit or loss arising from effective cash flow hedging | 090 | ||||
| 4 Profit or loss arising from effective hedge of a net investment in a foreign operation |
091 | ||||
| 5 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
092 | ||||
| 6 Changes in fair value of the time value of option | 093 | ||||
| 7 Changes in fair value of forward elements of forward contracts | 094 | ||||
| 8 Other items that may be reclassified to profit or loss | 095 | ||||
| 9 Income tax relating to items that may be reclassified to profit or loss | 096 | ||||
| V. NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087-086-096) | 097 | -60.602 | -14.995 | 80.237 | -45.337 |
| VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) | 098 | -358.866.393 | -146.818.996 | 108.787.483 | -249.679.050 |
| APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements) | |||||
| VII. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) | 099 | -358.866.393 | -146.818.996 | 108.787.483 | -249.679.050 |
| 1 Attributable to owners of the parent | 100 | -329.654.108 | -135.218.322 | 104.454.844 | -217.540.113 |
| 2 Attributable to minority (non-controlling) interest | 101 | -29.212.285 | -11.600.674 | 4.332.639 | -32.138.937 |
| Item 1 |
ADP code 2 |
Same period of the previous year 3 |
Current period 4 |
|---|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| 1 Pre-tax profit | 001 | -501.048.580 | 101.475.233 |
| 2 Adjustments (ADP 003 to 010) | 002 | 627.709.571 | 577.223.786 |
| a) Depreciation | 003 | 496.444.044 | 507.335.969 |
| b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets | 004 | -3.245.751 | 2.071.836 |
| c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets |
005 | -13.315.806 | |
| d) Interest and dividend income | 006 | -513.802 | -86.145 |
| e) Interest expenses | 007 | 68.613.120 | 71.256.632 |
| f) Provisions | 008 | 22.152.112 | 25.063.623 |
| g) Exchange rate differences (unrealised) | 009 | 41.917.849 | -8.096.392 |
| h) Other adjustments for non-cash transactions and unrealised gains and losses | 010 | 2.341.999 | -7.005.931 |
| I. Cash flow increase or decrease before changes in the working capital (ADP 001+002) |
011 | 126.660.991 | 678.699.019 |
| 3 Changes in the working capital (ADP 013 to 016) | 012 | -133.339.351 | 1.277.569 |
| a) Increase or decrease in short-term liabilities | 013 | -82.313.496 | -22.602.337 |
| b) Increase or decrease in short-term receivables | 014 | -46.515.658 | 20.098.142 |
| c) Increase or decrease in inventories | 015 | -4.510.197 | 3.781.764 |
| d) Other increase or decrease in the working capital | 016 | ||
| II. Cash from operations (ADP 011+012) | 017 | -6.678.360 | 679.976.588 |
| 4 Interest paid | 018 | -34.290.832 | -70.643.388 |
| 5 Income tax paid | 019 | 3.491.984 | 705.192 |
| A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) | 020 | -37.477.208 | 610.038.392 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | |||
| 1 Cash receipts from sales of fixed tangible and intangible assets | 021 | 9.326.474 | 3.783.014 |
| 2 Cash receipts from sales of financial instruments | 022 | ||
| 3 Interest received | 023 | 495.675 | 98.094 |
| 4 Dividends received | 024 | 3.709 | |
| 5 Cash receipts from repayment of loans and deposit | 025 | 324.339 | 224.099 |
| 6 Other cash receipts from investment activities | 026 | ||
| III. Total cash receipts from investment activities (ADP 021 to 026) | 027 | 10.146.488 | 4.108.916 |
| 1 Cash payments for the purchase of fixed tangible and intangible assets | 028 | -595.870.921 | -115.355.120 |
| 2 Cash payments for the acquisition of financial instruments | 029 | ||
| 3 Cash payments for loans and deposits for the period | 030 | -225.514 | -42.722.870 |
| 4 Acquisition of a subsidiary, net of cash acquired | 031 | ||
| 5 Other cash payments from investment activities | 032 | -3.203.421 | |
| IV. Total cash payments from investment activities (ADP 028 to 032) | 033 | -596.096.435 | -161.281.411 |
| B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027+033) | 034 | -585.949.947 | -157.172.495 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| 1 Cash receipts from the increase of initial (subscribed) capital | 035 | ||
| 2 Cash receipts from the issue of equity financial instruments and debt financial instruments |
036 | ||
| 3 Cash receipts from credit principals, loans and other borrowings | 037 | 785.615.083 | 379.850.628 |
| 4 Other cash receipts from financing activities | 038 | 3.389.998 | 338.676.960 |
| V. Total cash receipts from financing activities (ADP 035 to 038) | 039 | 789.005.081 | 718.527.588 |
| 1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments |
040 | -46.038.888 | -718.135.038 |
| 2 Dividends paid | 041 | ||
| 3 Cash payments for finance lease | 042 | -72.300 | -76.794 |
| 4 Cash payments for the redemption of treasury shares and decrease of initial (subscribed) capital |
043 | ||
| 5 Other cash payments from financing activities | 044 | -3.676.476 | -3.856.729 |
| VI. Total cash payments from financing activities (ADP 040 to 044) | 045 | -49.787.664 | -722.068.561 |
| C) NET CASH FLOW FROM FINANCIAL ACTIVITIES (ADP 039+045) | 046 | 739.217.417 | -3.540.973 |
| 1 Unrealised exchange rate differences in cash and cash equivalents | 047 | ||
| D) NET INCREASE OR DECREASE OF CASH FLOWS (ADP 020+034+046+047) | 048 | 115.790.262 | 449.324.924 |
| E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD | 049 | 550.142.638 | 665.932.900 |
| F) CASH AND CASH EQUIVALENTS AT THE END OF PERIOD (ADP 048+049) | 050 | 665.932.900 | 1.115.257.824 |
| Attributable to owners of the parent | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | ADP code |
Initial (subscribed) capital |
Capital reserves |
Legal reserves |
Reserves for treasury shares |
Treasury shares and holdings (deductible item) |
Statutory reserves |
Other reserves |
Revaluation reserves |
Fair value of financial assets through other comprehen- sive income (available for sale) |
Cash flow hedge - effective portion |
Hedge of a net investment in a foreign operation - effective portion |
Other fair value reserves |
Exchange rate differences from translation of foreign operations |
Retained profit / loss brought forward |
Profit/loss for the business year |
Total attributable to owners of the parent |
Minority (non controlling) interest |
Total capital and reserves |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 (3 do 6 - 7 + 8 do 17) |
19 | 20 (18+19) |
| Previous period 1. Balance on the first day of the previous business year |
01 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 61.474 | 430.206.412 284.535.940 2.488.046.546 | 731.023.213 3.219.069.759 | |||||||||||||
| 2 Changes in accounting policies | 02 | ||||||||||||||||||
| 3 Correction of errors | 03 | ||||||||||||||||||
| 4 Balance on the first day of the previous business year (restated) (ADP 01 to 03) | 04 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 61.474 | 430.206.412 284.535.940 2.488.046.546 | 731.023.213 3.219.069.759 | |||||||||||||
| 5 Profit/loss of the period | 05 | -329.593.506 -329.593.506 | -29.212.285 -358.805.791 | ||||||||||||||||
| 6 Exchange rate differences from translation of foreign operations | 06 | 263.962 | 263.962 | 263.962 | |||||||||||||||
| 7 Changes in revaluation reserves of fixed tangible and intangible assets 8 Gains or losses from subsequent measurement of financial assets at fair value |
07 | ||||||||||||||||||
| through other comprehensive income (available for sale) | 08 | -73.904 | -73.904 | -73.904 | |||||||||||||||
| 9 Profit or loss arising from effective cash flow hedge | 09 | ||||||||||||||||||
| 10 Profit or loss arising from effective hedge of a net investment in a foreign operation 11 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
10 11 |
||||||||||||||||||
| 12 Actuarial gains/losses on the defined benefit obligation | 12 | ||||||||||||||||||
| 13 Other changes in equity unrelated to owners | 13 | ||||||||||||||||||
| 14 Tax on transactions recognised directly in equity | 14 | 13.302 | 13.302 | 13.302 | |||||||||||||||
| 15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement procedure or from the reinvestment of profit) |
15 | ||||||||||||||||||
| 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy | 16 | ||||||||||||||||||
| settlement procedure 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit |
17 | ||||||||||||||||||
| 18 Redemption of treasury shares/holdings | 18 | ||||||||||||||||||
| 19 Payments from members/shareholders | 19 | ||||||||||||||||||
| 20 Payment of share in profit/dividend | 20 | ||||||||||||||||||
| 21 Other distributions and payments to members/shareholders | 21 | 2.249.472 | 1.140.526 | 3.389.998 | 3.389.998 | ||||||||||||||
| 22 Transfer to reserves according to the annual schedule 23 Increase in reserves arising from the pre-bankruptcy settlement procedure |
22 23 |
284.535.940 -284.535.940 | |||||||||||||||||
| 24 Balance on the last day of the previous business year reporting period (ADP 04 to 23) | 24 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.513.434 | 872 | 715.882.878 -329.593.506 2.162.046.398 | 701.810.928 2.863.857.326 | ||||||||||||
| APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS) I. OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX (ADP 06 to 14) II. COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+25) III. TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 23) |
25 26 27 |
263.962 263.962 2.249.472 |
-60.602 -60.602 |
285.676.466 -284.535.940 | 203.360 -329.593.506 -329.390.146 3.389.998 |
203.360 -29.212.285 -358.602.431 3.389.998 |
|||||||||||||
| Current period | |||||||||||||||||||
| 1. Balance on the first day of the previous business year | 28 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.513.434 | 872 | 715.882.878 -329.593.506 2.162.046.398 | 701.810.928 2.863.857.326 | ||||||||||||
| 2 Changes in accounting policies | 29 | ||||||||||||||||||
| 3 Correction of errors 4 Balance on the first day of the current business year (restated) (ADP 28 to 30) 5 Profit/loss of the period |
30 31 32 |
1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.513.434 | 872 | 104.374.607 | 715.882.878 -329.593.506 2.162.046.398 104.374.607 |
4.332.639 | 701.810.928 2.863.857.326 108.707.246 |
||||||||||
| 6 Exchange rate differences from translation of foreign operations | 33 | -263.962 | -263.962 | -263.962 | |||||||||||||||
| 7 Changes in revaluation reserves of fixed tangible and intangible assets | 34 | ||||||||||||||||||
| 8 Gains or losses from subsequent measurement of financial assets at fair value through other comprehensive income (available for sale) |
35 | 97.850 | 97.850 | 97.850 | |||||||||||||||
| 9 Profit or loss arising from effective cash flow hedge 10 Profit or loss arising from effective hedge of a net investment in a foreign operation |
36 37 |
||||||||||||||||||
| 11 Share in other comprehensive income/loss of companies linked by virtue of | 38 | ||||||||||||||||||
| participating interests | |||||||||||||||||||
| 12 Actuarial gains/losses on the defined benefit obligation 13 Other changes in equity unrelated to owners |
39 40 |
||||||||||||||||||
| 14 Tax on transactions recognised directly in equity | 41 | -17.613 | -17.613 | -17.613 | |||||||||||||||
| 15 Decrease in initial (subscribed) capital (other than arising from the pre | 42 | ||||||||||||||||||
| bankruptcy settlement procedure or from the reinvestment of profit) 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure |
43 | ||||||||||||||||||
| 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit | 44 | ||||||||||||||||||
| 18 Redemption of treasury shares/holdings | 45 | ||||||||||||||||||
| 19 Payments from members/shareholders | 46 | 336.920.926 336.920.926 | |||||||||||||||||
| 20 Payment of share in profit/dividend | 47 | ||||||||||||||||||
| 21 Other distributions and payments to members/shareholders 22 Carryforward per annual plane |
48 49 |
1.756.034 | -329.593.506 329.593.506 | 1.756.034 | 1.756.034 | ||||||||||||||
| 23 Increase in reserves arising from the pre-bankruptcy settlement procedure | 50 | ||||||||||||||||||
| 24 Balance on the last day of the current business year reporting period (ADP 31 to 50) | 51 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.249.472 | 81.109 | 388.045.406 104.374.607 2.267.993.314 1.043.064.493 3.311.057.807 | |||||||||||||
| APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS) I. OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF TAX |
|||||||||||||||||||
| (ADP 33 to 41) | 52 | -263.962 | 80.237 | -183.725 | -183.725 | ||||||||||||||
| II. COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 to 52) | 53 | -263.962 | 80.237 | 104.374.607 | 104.190.882 | 4.332.639 | 108.523.521 | ||||||||||||
| III. TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50) |
54 | -327.837.472 329.593.506 | 1.756.034 | 336.920.926 | 338.676.960 |
(drawn up for quarterly reporting periods)
Name of the issuer: Valamar Riviera d.d.
Personal identification number OIB: 36201212847
Reporting period: 01.01.2021 to 31.12.2021 Notes to financial statements for quarterly periods include:
(drawn up for quarterly reporting periods)
the undertaking's behalf, holds a participating interest, showing the proportion of the capital held, the amount of capital and reserves, and the profit or loss for the latest financial year of the undertaking concerned for which financial statements have been adopted; the information concerning capital and reserves and the profit or loss may be omitted where the undertaking concerned does not publish its balance sheet and is not controlled by another undertaking
Notes to financial statements for the three month period together with detailed information on financial performance and events relevant to understanding changes in financial statements are available in PDF document "Business results 1/1/2021 – 31/12/2021" which has been simultaneously published with this document on HANFA (Croatian Financial Services Supervisory Agency), Zagreb Stock Exchange and Issuers web pages.
| Year: | 2021 | |||
|---|---|---|---|---|
| Quarter: | 4 | |||
| Registration number (MB): | 3474771 | Issuer's home Member State code: | HR | |
| Entity's registration number (MBS): | 40020883 | |||
| Personal identification number (OIB): |
36201212847 | LEI: | 529900DUWS1DGNEK4C68 | |
| Institution code: | 30577 | |||
| Name of the issuer: | Valamar Riviera d.d. | |||
| Postcode and town: | 52440 | Poreč | ||
| Street and house number: | Stancija Kaligari 1 | |||
| E-mail address: | [email protected] | |||
| Web address: | www.valamar-riviera.com | |||
| Number of employees (end of the reporting period): |
2442 | |||
| Consolidated report: | KN | (KN-not consolidated/KD-consolidated) | ||
| Audited: | RN | (RN-not audited/RD-audited) | ||
| Names of subsidiaries (according to IFRS): |
Registered office: | MB: | ||
| Bookkeeping firm: | No | |||
| Contact person: | Sopta Anka | |||
| (only name and surname of the contact person) | ||||
| Telephone: | 052 408 188 | |||
| E-mail address: | [email protected] | |||
| Audit firm: |
Certified auditor:
(name and surname)
(authorized representative's signature) L.S.
| Last day of the | At the reporting | ||
|---|---|---|---|
| ADP | preceding business | date of the current | |
| Item | code | year | period |
| 1 | 2 | 3 | 4 |
| A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID | 001 | ||
| B) FIXED ASSETS (ADP 003+010+020+031+036) | 002 | 5.324.136.157 | 5.152.301.804 |
| I. INTANGIBLE ASSETS (ADP 004 to 009) | 003 | 42.275.329 | 34.640.301 |
| 1 Research and Development | 004 | ||
| 2 Concessions, patents, licences, trademarks, software and other rights | 005 | 35.550.820 | 26.854.197 |
| 3 Goodwill | 006 | 6.567.609 | 6.567.609 |
| 4 Advance payments for purchase of intangible assets | 007 | ||
| 5 Intangible assets in preparation | 008 | 156.900 | 1.218.495 |
| 6 Other intangible assets | 009 | ||
| II. TANGIBLE ASSETS (ADP 011 to 019) | 010 | 4.292.520.443 | 3.936.984.239 |
| 1 Land | 011 | 629.012.020 | 593.370.669 |
| 2 Buildings | 012 | 2.722.066.344 | 2.593.423.408 |
| 3 Plants and equipment | 013 | 409.245.659 | 355.975.206 |
| 4 Tools, working inventory and transportation assets | 014 | 91.158.729 | 72.736.320 |
| 5 Biological asset | 015 | ||
| 6 Advance payments for purchase of tangible assets | 016 | 159.973 | 42.528 |
| 7 Tangible assets in preparation | 017 | 366.577.576 | 267.938.392 |
| 8 Other tangible assets | 018 | 70.357.714 | 50.317.735 |
| 9 Investments property | 019 | 3.942.428 | 3.179.981 |
| III. FIXED FINANCIAL ASSETS (ADP 021 to 030) | 020 | 774.869.872 | 1.017.453.237 |
| 1 Investments in holdings (shares) of undertakings within the group | 021 | 727.328.038 | 941.803.942 |
| 2 Investments in other securities of undertakings within the group | 022 | ||
| 3 Loans, deposits etc given to undertakings in a Group | 023 | ||
| 4 Investments in holdings (shares) of companies linked by virtue of participating interest | 024 | 47.191.530 | 70.112.312 |
| 5 Investment in other securities of companies linked by virtue of participating interest | 025 | ||
| 6 Loans, deposits etc. given to companies linked by virtue of participating interest | 026 | ||
| 7 Investments in securities | 027 | 121.271 | 219.121 |
| 8 Loans, deposits, etc. given | 028 | 89.033 | 5.177.862 |
| 9 Other investments accounted for using the equity method | 029 | ||
| 10 Other fixed financial assets | 030 | 140.000 | 140.000 |
| IV. RECEIVABLES (ADP 032 to 035) | 031 | ||
| 1 Receivables from undertakings within the group | 032 | ||
| 2 Receivables from companies linked by virtue of participating interests | 033 | ||
| 3 Customer receivables | 034 | ||
| 4 Other receivables | 035 | ||
| V. DEFERRED TAX ASSETS | 036 | 214.470.513 | 163.224.027 |
| C) CURENT ASSETS (ADP 038+046+053+063) | 037 | 583.232.857 | 656.422.372 |
| I. INVENTORIES (ADP 039 to 045) | 038 | 27.296.274 | 23.619.254 |
| 1 Raw materials | 039 | 26.356.791 | 22.520.626 |
| 2 Work in progress | 040 | ||
| 3 Finished goods | 041 | ||
| 4 Merchandise | 042 | 939.483 | 1.098.628 |
| 5 Advance payments for inventories | 043 | ||
| 6 Fixed assets held for sale | 044 | ||
| 7 Biological asset | 045 | ||
| II. RECEIVABLES (ADP 047 to 052) | 046 | 32.385.214 | 50.219.276 |
| 1 Receivables from undertakings within the group | 047 | 186.829 | 19.738.193 |
| 2 Receivables from companies linked by virtue of participating interest | 048 | 330.822 | 7.293.713 |
| 3 Customer receivables | 049 | 23.158.299 | 16.667.610 |
| 4 Receivables from employees and members of the undertaking | 050 | 277.464 | 625.968 |
| 5 Receivables from government and other institutions | 051 | 4.795.299 | 3.070.818 |
| 6 Other receivables | 052 | 3.636.501 | 2.822.974 |
| III. SHORT-TERM FINANCIAL ASSETS (ADP 054 to 062) | 053 | 578.131 | 444.055 |
| 1 Investments in holdings (shares) of undertakings within the group | 054 | ||
| 2 Investments in other securities of undertakings within the group | 055 | ||
| 3 Loans, deposits, etc. to undertakings within the group | 056 | 28.300 | 28.300 |
| 4 Investments in holdings (shares) of companies linked by virtue of participating interest | 057 | ||
| 5 Investment in other securities of companies linked by virtue of participating interest | 058 | ||
| 6 Loans, deposits etc. given to companies linked by virtue of participating interest | 059 | ||
| 7 Investments in securities | 060 | ||
| 8 Loans, deposits, etc. given | 061 | 549.831 | 415.755 |
| 9 Other financial assets | 062 | ||
| IV. CASH AT BANK AND IN HAND | 063 | 522.973.238 | 582.139.787 |
| D) PREPAID EXPENSES AND ACCRUED INCOME | 064 | 46.702.706 | 21.272.442 |
| E) TOTAL ASSETS (ADP 001+002+037+064) | 065 | 5.954.071.720 | 5.829.996.618 |
| F) OFF-BALANCE SHEET ITEMS | 066 | 54.261.380 | 54.173.148 |
| Last day of the | At the reporting | ||
|---|---|---|---|
| Item | ADP code |
preceding business year |
date of the current period |
| 1 | 2 | 3 | 4 |
| LIABILITIES | |||
| A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+083+086+089) | 067 | 2.385.224.020 | 2.619.280.406 |
| I. INITIAL (SUBSCRIBED) CAPITAL | 068 | 1.672.021.210 | 1.672.021.210 |
| II. CAPITAL RESERVES | 069 | 5.710.563 | 5.710.563 |
| III. RESERVES FROM PROFIT (ADP 071+072-073+074+075) | 070 | 98.247.551 | 98.247.551 |
| 1 Legal reserves | 071 | 83.601.061 | 83.601.061 |
| 2 Reserves for treasury share | 072 | 136.815.284 | 136.815.284 |
| 3 Treasury shares and holdings (deductible item) | 073 | -124.418.266 | -124.418.266 |
| 4 Statutory reserves | 074 | ||
| 5 Other reserves | 075 | 2.249.472 | 2.249.472 |
| IV. REVALUATION RESERVES V. FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) |
076 077 |
872 | 81.109 |
| 1 Financial assets at fair value through other comprehensive income (i.e. available for sale) | 078 | 872 | 81.109 |
| 2 Cash flow hedge - effective portion | 079 | ||
| 3 Hedge of a net investment in a foreign operation - effective portion | 080 | ||
| 4 Other fair value reserves | 081 | ||
| 5 Exchange differences arising from the translation of foreign operations (consolidation) | 082 | ||
| VI. RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) | 083 | 917.793.503 | 538.614.167 |
| 1 Retained profit | 084 | 917.793.503 | 538.614.167 |
| 2 Loss brought forward | 085 | ||
| VII. PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) | 086 | -308.549.679 | 304.605.806 |
| 1 Profit for the business year | 087 | 304.605.806 | |
| 2 Loss for the business year | 088 | 308.549.679 | |
| VIII. MINORITY (NON-CONTROLLING) INTEREST | 089 | ||
| B) PROVISIONS (ADP 091 to 096) | 090 | 113.213.704 | 134.552.238 |
| 1 Provisions for pensions, termination benefits and similar obligations | 091 | 21.180.405 | 24.962.956 |
| 2 Provisions for tax liabilities | 092 | ||
| 3 Provisions for ongoing legal cases | 093 | 36.378.988 | 28.843.417 |
| 4 Provisions for renewal of natural resources | 094 | ||
| 5 Provision for warranty obligations | 095 | ||
| 6 Other provisions | 096 | 55.654.311 | 80.745.865 |
| C) LONG-TERM LIABILITIES (ADP 098 to 108) | 097 | 2.524.889.178 | 2.331.903.180 |
| 1 Liabilities towards undertakings within the group | 098 | ||
| 2 Liabilities for loans, deposits, etc. to companies within the group 3 Liabilities towards companies linked by virtue of participating interest |
099 100 |
||
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interest | 101 | ||
| 5 Liabilities for loans, deposits etc. | 102 | ||
| 6 Liabilities towards banks and other financial institutions | 103 | 2.474.586.439 | 2.303.872.723 |
| 7 Liabilities for advance payments | 104 | ||
| 8 Liabilities towards suppliers | 105 | ||
| 9 Liabilities for securities | 106 | ||
| 10 Other long-term liabilities | 107 | 36.995.567 | 15.575.274 |
| 11 Deferred tax liability | 108 | 13.307.172 | 12.455.183 |
| D) SHORT-TERM LIABILITIES (ADP 110 to 123) | 109 | 865.350.845 | 665.431.238 |
| 1 Liabilities towards undertakings within the group | 110 | 135.664 | 101.669 |
| 2 Liabilities for loans, deposits, etc. to companies within the group | 111 | ||
| 3 Liabilities towards companies linked by virtue of participating interest | 112 | 7.389 | |
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interest | 113 | ||
| 5 Liabilities for loans, deposits etc. | 114 | ||
| 6 Liabilities towards banks and other financial institutions | 115 | 693.967.037 | 523.630.896 |
| 7 Liabilities for advance payments | 116 | 61.767.845 | 36.066.605 |
| 8 Liabilities towards suppliers | 117 | 49.993.663 | 51.117.222 |
| 9 Liabilities for securities | 118 | 6.625.196 | |
| 10 Liabilities towards employees | 119 | 15.921.399 | 24.804.908 |
| 11 Taxes, contributions and similar liabilities | 120 | 4.664.984 | 14.661.562 |
| 12 Liabilities arising from the share in the result 13 Liabilities arising from fixed assets held for sale |
121 122 |
9.600 | |
| 14 Other short-term liabilities | 123 | 32.265.457 | 15.040.987 |
| E) ACCRUALS AND DEFERRED INCOME | 124 | 65.393.973 | 78.829.556 |
| F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) | 125 | 5.954.071.720 | 5.829.996.618 |
| G) OFF-BALANCE SHEET ITEMS | 126 | 54.261.380 | 54.173.148 |
| Item | ADP code |
Same period of the previous year |
Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| I. OPERATING INCOME (ADP 002 to 006) | 001 | 571.818.875 | 16.658.614 | 1.670.374.528 | 389.102.185 |
| 1 Income from sales with undertakings within the group | 002 | 6.559.169 | -764.643 | 31.631.791 | 17.213.975 |
| 2 Income from sales (outside group) 3 Income from the use of own products, goods and services |
003 004 |
540.402.390 208.649 |
8.573.739 52.424 |
1.329.300.465 233.998 |
80.045.514 66.441 |
| 4 Other operating income with undertakings within the group | 005 | 269.761 | -425.661 | 281.037.544 | 280.324.096 |
| 5 Other operating income (outside the group) | 006 | 24.378.906 | 9.222.755 | 28.170.730 | 11.452.159 |
| II. OPERATING EXPENSES (ADP 008+009+013+017+018+019+022+029) | 007 | 890.254.827 | 174.438.864 | 1.255.329.580 | 337.280.337 |
| 1 Changes in inventories of work in progress and finished goods | 008 | ||||
| 2 Material costs (ADP 010 to 012) | 009 | 223.980.434 | 37.313.660 | 396.119.584 | 68.978.096 |
| a) Costs of raw materials and consumables | 010 | 118.752.994 | 12.790.829 | 211.804.737 | 25.125.021 |
| b) Costs of goods sold | 011 | 4.218.790 | 1.078.701 | 10.230.447 | 2.011.655 |
| c) Other external costs | 012 | 101.008.650 | 23.444.130 | 174.084.400 | 41.841.420 |
| 3 Staff costs (ADP 014 to 016) | 013 | 162.756.912 | 4.732.891 | 301.251.199 | 95.900.703 |
| a) Net salaries and wages | 014 | 103.705.374 | 12.716.290 | 185.544.244 | 61.522.514 |
| b) Tax and contributions from salary costs | 015 | 40.219.038 | -4.145.312 | 76.418.573 | 21.737.684 |
| c) Contributions on salaries | 016 | 18.832.500 | -3.838.087 | 39.288.382 | 12.640.505 |
| 4 Depreciation | 017 | 391.987.115 | 93.072.033 | 397.597.196 | 97.730.851 |
| 5. Other costs | 018 | 75.372.719 | 7.745.228 | 113.160.696 | 32.560.076 |
| 6. Value adjustments (ADP 020+021) | 019 | 1.394.462 | 642.972 | 1.646.054 | 1.626.984 |
| a) fixed assets other than financial assets | 020 | ||||
| b) current assets other than financial assets | 021 | 1.394.462 | 642.972 | 1.646.054 | 1.626.984 |
| 7 Provisions (ADP 023 to 028) | 022 | 25.566.223 | 25.566.223 | 36.609.347 | 36.609.347 |
| a) Provisions for pensions, termination benefits and similar obligations | 023 | 16.210.160 | 16.210.160 | 9.293.175 | 9.293.175 |
| b) Provisions for tax liabilities | 024 | ||||
| c) Provisions for ongoing legal cases | 025 | 9.356.063 | 9.356.063 | 2.487.712 | 2.487.712 |
| d) Provisions for renewal of natural resources | 026 | ||||
| e) Provisions for warranty obligations | 027 | ||||
| f) Other provisions | 028 | 24.828.460 | 24.828.460 | ||
| 8 Other operating expenses | 029 | 9.196.962 | 5.365.857 | 8.945.504 | 3.874.280 |
| III. FINANCIAL INCOME (ADP 031 to 040) | 030 | 19.931.425 | 4.781.623 | 21.059.327 | 5.574.209 |
| 1 Income from investments in holdings (shares) of undertakings within the group 2 Income from investments in holdings (shares) of companies linked by |
031 032 |
||||
| virtue of participating interest 3 Income from other long-term financial investment and loans granted to |
033 | ||||
| undertakings within the group | |||||
| 4 Other interest income from operations with undertakings within the group | 034 | ||||
| 5 Exchange rate differences and other financial income from operations with undertakings within the group |
035 | ||||
| 6 Income from other long-term financial investments and loans | 036 | ||||
| 7 Other interest income | 037 | 639.146 | 449.435 | 291.847 | 162.322 |
| 8 Exchange rate differences and other financial income | 038 | 824.514 | 2.867.211 | 10.791.830 | 2.493.790 |
| 9 Unrealised gains (income) from financial assets | 039 | 4.503.562 | 1.539.990 | ||
| 10 Other financial income IV. FINANCIAL EXPENDITURE (ADP 042 to 048) |
040 041 |
18.467.765 115.027.459 |
1.464.977 18.741.765 |
5.472.088 64.980.124 |
1.378.107 27.359.466 |
| 1 Interest expenses and similar expenses with undertakings within the group | 042 | ||||
| 2 Exchange rate differences and other expenses from operations with undertakings within the group |
043 | ||||
| 3 Interest expenses and similar expenses | 044 | 56.628.643 | 16.127.471 | 60.092.169 | 16.452.198 |
| 4 Exchange rate differences and other expenses | 045 | 38.603.478 | 471.904 | 8.606.460 | |
| 5 Unrealised losses (expenses) from financial assets | 046 | 16.832.811 | 75.960 | ||
| 6 Value adjustments of financial assets (net) | 047 | ||||
| 7 Other financial expenses | 048 | 2.962.527 | 2.066.430 | 4.887.955 | 2.300.808 |
| V. SHARE IN PROFIT FROM COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST | 049 | ||||
| VI. SHARE IN PROFIT FROM JOINT VENTURES | 050 | ||||
| VII. SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST | 051 | ||||
| VIII. SHARE IN LOSS OF JOINT VENTURES | 052 | ||||
| IX. TOTAL INCOME (ADP 001+030+049 +050) | 053 | 591.750.300 | 21.440.237 | 1.691.433.855 | 394.676.394 |
| X. TOTAL EXPENDITURE (ADP 007+041+051+052) | 054 | 1.005.282.286 | 193.180.629 | 1.320.309.704 | 364.639.803 |
| XI. PRE-TAX PROFIT OR LOSS (ADP 053-054) | 055 | -413.531.986 | -171.740.392 | 371.124.151 | 30.036.591 |
| 1 Pre-tax profit (ADP 053-054) | 056 | 371.124.151 | 30.036.591 | ||
| 2 Pre-tax loss (ADP 054-053) | 057 | -413.531.986 | -171.740.392 | ||
| XII. INCOME TAX | 058 | -104.982.307 | -44.939.621 | 66.518.345 | 20.037.355 |
| XIII. PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) | 059 | -308.549.679 | -126.800.771 | 304.605.806 | 9.999.236 |
| 1 Profit for the period (ADP 055-059) 2 Loss for the period (ADP 059-055) |
060 061 |
-308.549.679 | -126.800.771 | 304.605.806 | 9.999.236 |
| Item | ADP code |
of the previous year | Same period | Current period | |
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations) | |||||
| XIV. PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 063-064) | 062 | ||||
| 1 Pre-tax profit from discontinued operations | 063 | ||||
| 2 Pre-tax loss on discontinued operations | 064 | ||||
| XV. INCOME TAX OF DISCONTINUED OPERATIONS | 065 | ||||
| 1 Discontinued operations profit for the period (ADP 062-065) | 066 | ||||
| 2 Discontinued operations loss for the period (ADP 065-062) | 067 | ||||
| TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations) | |||||
| XVI. PRE-TAX PROFIT OR LOSS (ADP 055+062) | 068 | ||||
| 1 Pre-tax profit (ADP 068) | 069 | ||||
| 2 Pre-tax loss (ADP 068) | 070 | ||||
| XVII. INCOME TAX (ADP 058+065) | 071 | ||||
| XVIII. PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) | 072 | ||||
| 1 Profit for the period (ADP 068-071) | 073 | ||||
| 2 Loss for the period (ADP 071-068) | 074 | ||||
| APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements) | |||||
| XIX. PROFIT OR LOSS FOR THE PERIOD (ADP 076+077) | 075 | ||||
| 1 Attributable to owners of the parent | 076 | ||||
| 2 Attributable to minority (non-controlling) interest | 077 | ||||
| STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS) | |||||
| I. PROFIT OR LOSS FOR THE PERIOD | 078 | -308.549.679 | -126.800.771 | 304.605.806 | 9.999.236 |
| II. OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 080+087) | 079 | -73.904 | -18.286 | 97.850 | -55.289 |
| III. ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS(ADP 081 to 085) | 080 | -73.904 | -18.286 | 97.850 | -55.289 |
| 1 Changes in revaluation reserves of fixed tangible and intangible assets | 081 | ||||
| 2 Gains or losses from subsequent measurement of equity instruments at fair value through other comprehensive income |
082 | -73.904 | -18.286 | 97.850 | -55.289 |
| 3 Fair value changes of financial liabilities at fair value through statement of profit or loss, attributable to changes in their credit risk |
083 | ||||
| 4 Actuarial gains/losses on the defined benefit obligation | 084 | ||||
| 5 Other items that will not be reclassified | 085 | ||||
| 6 Income tax relating to items that will not be reclassified | 086 | -13.303 | 3.292 | 17.613 | -9.952 |
| IV. ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS (ADP 088 to 095) | 087 | ||||
| 1 Exchange rate differences from translation of foreign operations | 088 | ||||
| 2 Gains or losses from subsequent measurement of debt securities at fair value through other comprehensive income |
089 | ||||
| 3 Profit or loss arising from effective cash flow hedging | 090 | ||||
| 4 Profit or loss arising from effective hedge of a net investment in a foreign operation |
091 | ||||
| 5 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
092 | ||||
| 6 Changes in fair value of the time value of option | 093 | ||||
| 7 Changes in fair value of forward elements of forward contracts | 094 | ||||
| 8 Other items that may be reclassified to profit or loss | 095 | ||||
| 9 Income tax relating to items that may be reclassified to profit or loss | 096 | ||||
| V. NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087-086-096) | 097 | -60.601 | -21.578 | 80.237 | -45.337 |
| VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) | 098 | -308.610.280 | -126.822.349 | 304.686.043 | 9.953.899 |
| APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements) | |||||
| VII. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) | 099 | ||||
| 1 Attributable to owners of the parent | 100 | ||||
| ADP | Same period of the | Current | |
|---|---|---|---|
| Item | code | previous year | period |
| 1 | 2 | 3 | 4 |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| 1 Pre-tax profit | 001 | -413.531.986 | 371.124.151 |
| 2 Adjustments (ADP 003 to 010) | 002 | 509.075.504 | 190.749.080 |
| a) Depreciation | 003 | 391.987.115 | 397.597.196 |
| b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets | 004 | -3.978.000 | -279.190.767 |
| c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets |
005 | ||
| d) Interest and dividend income | 006 | -507.817 | -70.802 |
| e) Interest expenses | 007 | 62.034.183 | 64.980.125 |
| f) Provisions | 008 | 20.421.285 | 21.540.065 |
| g) Exchange rate differences (unrealised) | 009 | 38.603.447 | -7.490.750 |
| h) Other adjustments for non-cash transactions and unrealised gains and losses | 010 | 515.291 | -6.615.987 |
| I. Cash flow increase or decrease before changes in the working capital (ADP 001+002) |
011 | 95.543.518 | 561.873.231 |
| 3 Changes in the working capital (ADP 013 to 016) | 012 | -105.109.538 | -23.892.406 |
| a) Increase or decrease in short-term liabilities | 013 | -58.984.649 | -28.430.139 |
| b) Increase or decrease in short-term receivables | 014 | -41.213.521 | 860.713 |
| c) Increase or decrease in inventories | 015 | -4.911.368 | 3.677.020 |
| d) Other increase or decrease in the working capital | 016 | ||
| II. Cash from operations (ADP 011+012) | 017 | -9.566.020 | 537.980.825 |
| 4 Interest paid | 018 | -27.934.882 | -64.432.651 |
| 5 Income tax paid | 019 | ||
| A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) | 020 | -37.500.902 | 473.548.174 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | |||
| 1 Cash receipts from sales of fixed tangible and intangible assets | 021 | 8.932.090 | 3.647.864 |
| 2 Cash receipts from sales of financial instruments | 022 | ||
| 3 Interest received | 023 | 489.691 | 82.752 |
| 4 Dividends received | 024 | 3.709 | |
| 5 Cash receipts from repayment of loans and deposit | 025 | 189.339 | 182.247 |
| 6 Other cash receipts from investment activities III. Total cash receipts from investment activities (ADP 021 to 026) |
026 027 |
9.611.120 | 1.110.110 5.026.682 |
| 1 Cash payments for the purchase of fixed tangible and intangible assets | 028 | -428.835.136 | -77.557.476 |
| 2 Cash payments for the acquisition of financial instruments | 029 | ||
| 3 Cash payments for loans and deposits for the period | 030 | -211.896 | -5.137.000 |
| 4 Acquisition of a subsidiary, net of cash acquired | 031 | ||
| 5 Other cash payments from investment activities | 032 | ||
| IV. Total cash payments from investment activities (ADP 028 to 032) | 033 | -429.047.032 | -82.694.476 |
| B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027+033) | 034 | -419.435.912 | -77.667.794 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| 1 Cash receipts from the increase of initial (subscribed) capital | 035 | ||
| 2 Cash receipts from the issue of equity financial instruments and debt financial instruments |
036 | ||
| 3 Cash receipts from credit principals, loans and other borrowings | 037 | 776.471.599 | 344.850.628 |
| 4 Other cash receipts from financing activities | 038 | 3.389.999 | 1.756.034 |
| V. Total cash receipts from financing activities (ADP 035 to 038) | 039 | 779.861.598 | 346.606.662 |
| 1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments |
040 | -43.659.164 | -679.122.703 |
| 2 Dividends paid | 041 | ||
| 3 Cash payments for finance lease | 042 | ||
| 4 Cash payments for the redemption of treasury shares and decrease of initial (subscribed) capital |
043 | ||
| 5 Other cash payments from financing activities | 044 | -4.141.654 | -4.197.790 |
| VI. Total cash payments from financing activities (ADP 040 to 044) | 045 | -47.800.818 | -683.320.493 |
| C) NET CASH FLOW FROM FINANCIAL ACTIVITIES (ADP 039+045) | 046 | 732.060.780 | -336.713.831 |
| 1 Unrealised exchange rate differences in cash and cash equivalents | 047 | ||
| D) NET INCREASE OR DECREASE OF CASH FLOWS (ADP 020+034+046+047) | 048 | 275.123.966 | 59.166.549 |
| E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD F) CASH AND CASH EQUIVALENTS AT THE END OF PERIOD (ADP 048+049) |
049 050 |
247.849.272 522.973.238 |
522.973.238 582.139.787 |
| Attributable to owners of the parent | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | ADP code |
Initial (subscribed) capital |
Capital reserves |
Legal reserves |
Reserves for treasury shares |
Treasury shares and holdings (deductible item) |
Statutory reserves |
Other reserves |
Revaluation reserves |
Fair value of financial assets through other comprehen- sive income (available for sale) |
Cash flow hedge - effective portion |
Hedge of a net investment in a foreign operation - effective portion |
Other fair value reserves |
Exchange rate differences from translation of foreign operations |
Retained profit / loss brought forward |
Profit/loss for the business year |
Total attributable to owners of the parent |
Minority (non controlling) interest |
Total capital and reserves |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 (3 do 6 - 7 + 8 do 17) |
19 | 20 (18+19) |
| Previous period | |||||||||||||||||||
| 1. Balance on the first day of the previous business year | 01 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 61.473 | 539.646.072 377.006.905 2.690.444.302 | 2.690.444.302 | |||||||||||||
| 2 Changes in accounting policies | 02 | ||||||||||||||||||
| 3 Correction of errors | 03 | ||||||||||||||||||
| 4 Balance on the first day of the previous business year (restated) (ADP 01 to 03) 5 Profit/loss of the period |
04 05 |
1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 61.473 | 539.646.072 377.006.905 2.690.444.302 -308.549.679 -308.549.679 |
2.690.444.302 -308.549.679 |
|||||||||||||
| 6 Exchange rate differences from translation of foreign operations | 06 | ||||||||||||||||||
| 7 Changes in revaluation reserves of fixed tangible and intangible assets | 07 | ||||||||||||||||||
| 8 Gains or losses from subsequent measurement of financial assets at fair value through other comprehensive income (available for sale) |
08 | -73.904 | -73.904 | -73.904 | |||||||||||||||
| 9 Profit or loss arising from effective cash flow hedge | 09 | ||||||||||||||||||
| 10 Profit or loss arising from effective hedge of a net investment in a foreign operation | 10 | ||||||||||||||||||
| 11 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
11 | ||||||||||||||||||
| 12 Actuarial gains/losses on the defined benefit obligation | 12 | ||||||||||||||||||
| 13 Other changes in equity unrelated to owners | 13 | ||||||||||||||||||
| 14 Tax on transactions recognised directly in equity | 14 | 13.303 | 13.303 | 13.303 | |||||||||||||||
| 15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement procedure or from the reinvestment of profit) |
15 | ||||||||||||||||||
| 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure |
16 | ||||||||||||||||||
| 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit | 17 | ||||||||||||||||||
| 18 Redemption of treasury shares/holdings | 18 | ||||||||||||||||||
| 19 Payments from members/shareholders | 19 | ||||||||||||||||||
| 20 Payment of share in profit/dividend 21 Other distributions and payments to members/shareholders |
20 21 |
2.249.472 | 1.140.526 | 3.389.998 | 3.389.998 | ||||||||||||||
| 22 Transfer to reserves according to the annual schedule | 22 | 377.006.905 -377.006.905 | |||||||||||||||||
| 23 Increase in reserves arising from the pre-bankruptcy settlement procedure | 23 | ||||||||||||||||||
| 24 Balance on the last day of the previous business year reporting period (ADP 04 to 23) | 24 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 872 | 917.793.503 -308.549.679 2.385.224.020 | 2.385.224.020 | ||||||||||||
| APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS) I. OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX (ADP 06 to 14) |
25 | -60.601 | -60.601 | -60.601 | |||||||||||||||
| II. COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+25) | 26 | -60.601 | -308.549.679 -308.610.280 | -308.610.280 | |||||||||||||||
| III. TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 23) |
27 | 2.249.472 | 378.147.431 -377.006.905 | 3.389.998 | 3.389.998 | ||||||||||||||
| Current period | |||||||||||||||||||
| 1. Balance on the first day of the previous business year 2 Changes in accounting policies |
28 29 |
1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 872 | 917.793.503 -308.549.679 2.385.224.020 | 2.385.224.020 | ||||||||||||
| 3 Correction of errors | 30 | ||||||||||||||||||
| 4 Balance on the first day of the current business year (restated) (ADP 28 to 30) | 31 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 872 | 917.793.503 -308.549.679 2.385.224.020 | 2.385.224.020 | ||||||||||||
| 5 Profit/loss of the period | 32 | 304.605.806 | 304.605.806 | 304.605.806 | |||||||||||||||
| 6 Exchange rate differences from translation of foreign operations 7 Changes in revaluation reserves of fixed tangible and intangible assets |
33 34 |
||||||||||||||||||
| 8 Gains or losses from subsequent measurement of financial assets at fair value | 35 | 97.850 | 97.850 | 97.850 | |||||||||||||||
| through other comprehensive income (available for sale) 9 Profit or loss arising from effective cash flow hedge |
36 | ||||||||||||||||||
| 10 Profit or loss arising from effective hedge of a net investment in a foreign operation | 37 | ||||||||||||||||||
| 11 Share in other comprehensive income/loss of companies linked by virtue of | 38 | ||||||||||||||||||
| participating interests 12 Actuarial gains/losses on the defined benefit obligation |
39 | ||||||||||||||||||
| 13 Other changes in equity unrelated to owners | 40 | ||||||||||||||||||
| 14 Tax on transactions recognised directly in equity | 41 | -17.613 | -17.613 | -17.613 | |||||||||||||||
| 15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement procedure or from the reinvestment of profit) |
42 | ||||||||||||||||||
| 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy | 43 | ||||||||||||||||||
| settlement procedure | |||||||||||||||||||
| 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit 18 Redemption of treasury shares/holdings |
44 45 |
||||||||||||||||||
| 19 Payments from members/shareholders | 46 | ||||||||||||||||||
| 20 Payment of share in profit/dividend | 47 | ||||||||||||||||||
| 21 Other distributions and payments to members/shareholders 22 Carryforward per annual plane |
48 49 |
1.756.034 | -380.935.370 308.549.679 | 1.756.034 -72.385.691 |
1.756.034 -72.385.691 |
||||||||||||||
| 23 Increase in reserves arising from the pre-bankruptcy settlement procedure | 50 | ||||||||||||||||||
| 24 Balance on the last day of the current business year reporting period (ADP 31 to 50) | 51 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 81.109 | 538.614.167 304.605.806 2.619.280.406 | 2.619.280.406 | ||||||||||||
| APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS) I. OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF TAX |
|||||||||||||||||||
| (ADP 33 to 41) | 52 | 80.237 | 80.237 | 80.237 | |||||||||||||||
| II. COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 to 52) III. TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50) |
53 54 |
80.237 | 304.605.806 -379.179.336 308.549.679 |
304.686.043 -70.629.657 |
304.686.043 -70.629.657 |
(drawn up for quarterly reporting periods)
Name of the issuer: Valamar Riviera d.d.
Personal identification number OIB: 36201212847
Reporting period: 01.01.2021 to 31.12.2021 Notes to financial statements for quarterly periods include:
(drawn up for quarterly reporting periods)
the undertaking's behalf, holds a participating interest, showing the proportion of the capital held, the amount of capital and reserves, and the profit or loss for the latest financial year of the undertaking concerned for which financial statements have been adopted; the information concerning capital and reserves and the profit or loss may be omitted where the undertaking concerned does not publish its balance sheet and is not controlled by another undertaking
Notes to financial statements for the three month period together with detailed information on financial performance and events relevant to understanding changes in financial statements are available in PDF document "Business results 1/1/2021 – 31/12/2021" which has been simultaneously published with this document on HANFA (Croatian Financial Services Supervisory Agency), Zagreb Stock Exchange and Issuers web pages.
Valamar Riviera d.d., Poreč ("the Company") has been established and registered in accordance with Croatian laws and regulations. The Company is registered with the Commercial Court in Pazin. The principle activity of the Company is the provision of accommodation in hotels, resorts and campsites, food preparation and catering services as well as the preparation and serving of beverages. Company's business is of seasonal character. Company's registration number (MBS) is: 040020883, while the Company's personal identification number (OIB) is: 36201212847. The registered office of Valamar Riviera d.d. is in Poreč, Stancija Kaligari 1. Company's share capital amounts to HRK 1,672,021 thousand and comprises 126,027,542 ordinary shares with no prescribed nominal value.
Valamar Riviera Group consists of Valamar Riviera d.d., Poreč, joint-stock company for tourism services (the Parent Company) and its subsidiaries (the Group) as follows:
The merger of Palme turizam d.o.o. into the Company was entered in the court register on 7 May 2021, pursuant to the Decision of the Commercial Court in Pazin No. Tt-21/2510-3. The legal effect of the merger started as of 8 May 2021. After the registration of the merger, Palme turizam d.o.o. ceased to exist and the Company became the universal legal successor of the merged company: all the assets, rights and liabilities of Palme turizam d.o.o. were transferred to the Company (Note 13).
On 29 November, 2021, the General Assembly of Valamar A GmbH made a decision to increase the share capital from the amount of EUR 35,000.00 by EUR 107,624.00 to EUR 142,624.00, with the participation of a new member of the Wurmböck Beteiligungs GmbH based in Vienna, Austria, in the amount of EUR 107,624.00 after which Valamar Riviera d.d. holds 24.54% and Wurmböck Beteiligungs GmbH 75.46%. A new member of the company undertook to pay EUR 11,070,000.00 into capital reserves. At the same time, Valamar A GmbH changed its headquarters from Tamsweg to Vienna and a new two-member board was appointed. The members of the company concluded the Articles of Association and the agreement by which they regulated their mutual relations, especially in relation to important decisions that require the approval of Valamar Riviere d.d. for their adoption (Note 14).
The Company's shares were listed on the Prime market of the Zagreb Stock Exchange d.d., and were traded in 2021 in accordance with the relevant regulations on the organized market. Pursuant to the Decision of Imperial Riviera's d.d. General Assembly from 10 September 2021, the share capital of Imperial Riviera d.d. was increased by HRK 689,765,631.10from HRK 826,668,557.32 to HRK 1,516,434,188.42. Share capital increase was court registered on 26 November 2021. The participants of the share capital increase are: Valamar Riviera d.d. with investment in real estate in their ownership - land located at Babin Kuk in Dubrovnik, area of 148,949 m2 and total estimated value of HRK 352,844,705.64, and in the amount of HRK 336,920,925.46 Allianz ZB d.o.o. društvo za upravljanje obveznim i dobrovoljnim mirovinskim fondovima acting in its own name and on behalf of AZ Obvezni mirovinski fond kategorije A, personal identification number (OIB): 15220336427, AZ Obvezni mirovinski fond kategorije B, personal identification number (OIB): 59318506371, AZ Profit otvoreni dobrovoljni mirovinski fond, personal identification number (OIB): 22134623145, AZ Benefit otvoreni dobrovoljni mirovinski
fond, personal identification number (OIB): 56427866267, AZ A1 zatvoreni dobrovoljni mirovinski fond, personal identification number (OIB): 64811569641, AZ Dalekovod zatvoreni dobrovoljni mirovinski fond, personal identification number (OIB): 49118401443, AZ HKZP zatvoreni dobrovoljni mirovinski fond, personal identification number (OIB): 25137661054, AZ Zagreb zatvoreni dobrovoljni mirovinski fond, personal identification number (OIB): 01774504225, Auto Hrvatska zatvoreni dobrovoljni mirovinski fond, personal identification number (OIB): 24189818978, AZ ZABA zatvoreni dobrovoljni mirovinski fond, personal identification number (OIB): 11641097984, AZ
The Company's and Group's financial statements for the fourth quarter ended on 31 December 2021 have been prepared in accordance with International Accounting Standard (IAS) 34 – Interim Financial Reporting. The financial statements have been prepared under the historical cost method, except for the financial assets at fair value through profit or loss and financial assets. The consolidated and unconsolidated financial statements for the fourth quarter period do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's and Group's annual financial statements as at 31 December 2021 which are available on HANFA (Croatian Financial Services Supervisory Agency), Zagreb Stock Exchange and Group's web pages.
Company's and Group's fourth quarter financial statements have been prepared on a going concern basis. Based on current expectations, Management believes, although potentially negative short-term effects on Company's and Group's revenues and cash inflows are expected, it is not probable that the situation will have significant negative impact on the Company's and Group's ability to fulfil its obligations nor prolonged (OIB): 42239479988 (hereinafter: AZ). Upon the completion of the share capital increase, Valamar Riviera d.d. is the holder of 1,054,728 (46.27%) shares, while AZ holds 1,104,665 (48.46%) shares of Imperial Riviera d.d.
Treći Horizont zatvoreni dobrovoljni mirovinski fond, personal identification number
The consolidated and unconsolidated financial statements for the fourth quarter period ended 31 December 2021 were approved by the Management Board in Poreč on 16 February 2022. The consolidated and unconsolidated financial statements for the fourth quarter period ended 31 December 2021, have not been audited.
impact on Company's and Group's revenues and overall business which can affect the Company's and Group's ability to continue as a going concern in the foreseeable future.
There were no changes in critical accounting estimates used for preparation of financial statements for the fourth quarter period ended 31 December 2021 comparing to those used for the preparation of the annual financial statements for the year ended 31 December 2020, except in the part as it is mentioned below.
Given the significant impact of COVID-19 pandemic on the business of the Company and Group in 2020 and significantly milder impact in 2021, connected with the absence of operating profit or overall business in certain cash generating units, the Company and Group assessed that there are potential indicators of impairment and in accordance with IAS-36, they approached the impairment test of units that generate money, i.e. profit centres (PCGM). PCGM is a group of assets of the lowest organizational unit that generates mostly independent cash inflows and on the basis of which performance is monitored and decisions are made on the acquisition and disposal of related assets, as
well as operations. By performing impairment tests in 2020 and 2021, the Company and Group have proven that non-current tangible and intangible assets (including goodwill) do not have to be impaired, in accordance with the determined values in use and for a part of facilities according to the fair value confirmed by a certified expert.
The Company and the Group need to determine the ownership status for cca 3.24 million m2 and cca 3.54 million m2 respectively, pursuant to the provisions of the Act on unappraised land (hereinafter: the Act), that entered into force on 2 May 2020. The Act lays down the obligation to determine and establish, within the prescribed deadlines, real estate on the assessed parts of the camp, hotel, tourist complexes and other building land as the subject matter of the right of ownership of the Company and the Group; and real estate on the parts of the camp, hotel, tourist complexes and other building land that have not been assessed as the subject matter of the right of ownership of the Republic of Croatia or local governments. As regards the parts of land owned by the Republic of Croatia or local governments, the Company and the Group will conclude a lease agreement for a period of 50 years.
The unit amount of the rent and the manner of and deadlines for the payment will be laid down by a regulation adopted by the Government. At the moment of creating this document, the regulation has not been adopted yet; therefore it has not been possible to determine right-of-use assets and liabilities since the entry into force of the Act, i.e. since 2 May 2020. After the adoption of the regulation on prices, the Company and the Group will revise total surface areas that will be the subject matter of the lease agreement and they will assess the value of the right-of-use assets and liabilities in accordance with the provisions of IFRS 16. In 2020 and 2021, the Company and the Group were not able to determine the object of the lease and the value of the lease.
Due to circumstances arising from the Covid 19 pandemic, the Republic of Croatia adopted a regulation on exemption from the payment of the variable part of the fee for the year 2019. For the period from January to April 2020, when ZOTZ was in force, the Company and the Group did not receive any fees for compensation for concessions for tourist land. Considering that no regulation on prices has been passed by the end of 2021, nor has a waiver of obligations been enacted by law, as a precautionary principle, the Company and the Group reserved the cost of lease for tourist land for the period from the entry into force of the ZNGZ, i.e. from 1 May, 2020 to the end of 2021 on the basis of the calculation of compensation under the old regulations in the amount of HRK 24,828 thousand for the Company and HRK 26,282 thousand for the Group.
Under the assumption of the lowest/highest price spread reaching HRK 6/12/m2, lowest/highest discount rate reaching 4/8% and with the correction of surface areas that will be subject to the lease +/- 10%, the Company and the Group assessed the value of the right-of-use assets and liabilities on the day of the entry into force of the Act, which would amount to a range from cca HRK 212,522 thousand to cca HRK 921,895 thousand for the Company, while the assessment for the Group would range from cca HRK 224,536 thousand to cca HRK 974,010 thousand.
The accounting policies adopted in the preparation of the financial statements for the fourth quarter period ended 31 December 2021 are consistent with those followed in the preparation of the Company's and Group's annual financial statements for the year ended 31 December 2020.
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Company and the Group is the current bid price. The fair value of financial instruments that are not traded in the active market is determined by using valuation techniques. The Company and the Group use a variety of methods and make assumptions that are based on market conditions existing at each reporting date.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.
Quoted market prices for similar instruments are used for long-term debt. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Company and the Group for similar financial instruments.
IFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources; unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the following fair value hierarchy:
| The following table presents assets | ||
|---|---|---|
| measured at fair value as at: |
| GROUP | ||||
|---|---|---|---|---|
| (in thousands of HRK) | Level 1 | Level 2 | Level 3 | Total |
| As at 31 December 2020 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 317 | - | - | 317 |
| Total assets measured at fair value | 317 | - | - | 317 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 16,982 | - | 16,982 |
| Total liabilities measured at fair value | - | 16,982 | - | 16,982 |
| As at 31 December 2021 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 391 | - | - | 391 |
| Total assets measured at fair value | 391 | - | - | 391 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 7,749 | - | 7,749 |
| Total liabilities measured at fair value | - | 7,749 | - | 7,749 |
| COMPANY | ||||
|---|---|---|---|---|
| (in thousands of HRK) | Level 1 | Level 2 | Level 3 | Total |
| As at 31 December 2020 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 261 | - | - | 261 |
| Total assets measured at fair value | 261 | - | - | 261 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 16,982 | - | 16,982 |
| Total liabilities measured at fair value | - | 16,982 | - | 16,982 |
| As at 31 December 2021 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 359 | - | - | 359 |
| Total assets measured at fair value | 359 | - | - | 359 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 7,749 | - | 7,749 |
| Ukupno obveze iskazane po fer vrijednosti | - | 7,749 | - | 7,749 |
Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting provided to the Group's Management (the chief operating decision-makers) who are responsible for allocating resources to the reportable segments and assessing its performance. The Group records operating revenues and expenses by types of services rendered in three basic segments: hotels and apartments, camping and other business segments. Revenue was divided between
GROUP
segments according to the organisational principle, where all of the income generated from camping profit centres was reported in the camping segment, and all of the income generated from hotel and apartment profit centres was reported in that segment. Other business segments include revenue from laundry services, other rentals of properties, revenue generated from the central services and central kitchens, revenue from retail, agency revenue and revenue from the accommodation of employees.
The segment information related to reportable segments for the year ended 31 December 2020 is as follows:
| (in thousands of HRK) | Hotels and apartments |
Camps | Other business segments |
Total |
|---|---|---|---|---|
| Total sales | 338,572 | 292,000 | 53,849 | 684,422 |
| Inter-segment revenue | (681) | (29) | (41,233) | (41,943) |
| Revenue from external customers | 337,891 | 291,971 | 12,616 | 642,479 |
| Depreciation and amortisation | 314,882 | 127,271 | 54,291 | 496,444 |
| Net finance income/(expense) | (55,805) | (26,786) | (22,050) | (104,641) |
| Write-off of fixed assets | 1,119 | 208 | 205 | 1,532 |
| Profit/(loss) of segment | 128,074 | 209,664 | (158,407) | 179,331 |
The segment information related to reportable segments for the year ended 31 December 2021 is as follows:
| (in thousands of HRK) | Hotels and apartments |
Camps | Other business segments |
Total |
|---|---|---|---|---|
| Total sales | 1,001,646 | 550,115 | 147,603 | 1,699,364 |
| Inter-segment revenue | (1,382) | (28) | (92,826) | (94,236) |
| Revenue from external customers | 1,000,264 | 550,087 | 54,777 | 1,605,128 |
| Depreciation and amortisation | 318,544 | 131,942 | 56,850 | 507,336 |
| Net finance income/(expense) | (23,425) | (14,373) | 1,895 | (35,903) |
| Write-off of fixed assets | 3,389 | 99 | 404 | 3,892 |
| Profit/(loss) of segment | 534,766 | 390,233 | (211,953) | 713,046 |
The segment information related to total assets and liabilities by reportable segments are as follows:
| GROUP | ||||
|---|---|---|---|---|
| (in thousands of HRK) | Hotels and apartments |
Camps | Other business segments |
Total |
| As at 31 December 2020 | ||||
| Total assets | 3,537,741 | 1,515,516 | 714,073 | 5,767,330 |
| Total liabilities | 2,275,139 | 1,020,575 | 508,117 | 3,803,831 |
| As at 31 December 2021 | ||||
| Total assets | 3,207,709 | 1,383,094 | 722,119 | 5,312,922 |
| Total liabilities | 1,977,090 | 934,627 | 473,878 | 3,385,595 |
All hotels, apartments and camps (operating assets) are located in the Republic of Croatia, except the hotel owned by the company Valamar Obertauern GmbH located in Austria that ended being subsidiary from 29 November 2021.
Reconciliation of the profit per segment with profit before tax is as follows:
| (in thousands of HRK) | January - December 2020 |
January - December 2021 |
|---|---|---|
| Revenue | ||
| Revenue from segments | 684,422 | 1,699,364 |
| Inter-segment revenue | (41,943) | (94,236) |
| Total revenue | 642,479 | 1,605,128 |
| Profit | ||
| Profit from segments | 179,331 | 713,046 |
| Other unallocated expenses | (553,841) | (550,126) |
| Profit/(loss) from financial and extraordinary activities | (126,539) | (61,444) |
| Total profit before tax | (501,049) | 101,475 |
The reconciliation of segment assets and liabilities with the Group's assets and liabilities is as follows:
| GROUP | |
|---|---|
| ------- | -- |
| (in thousands of HRK) | As at 31 December 2020 | As at 31 December 2021 | ||
|---|---|---|---|---|
| Assets | Liabilities | Assets | Liabilities | |
| Segment assets/liabilities | 5,767,330 | 3,803,832 | 5,312,923 | 3,385,596 |
| Hotels and apartments segment | 3,537,741 | 2,275,139 | 3,207,710 | 1,977,091 |
| Camps segment | 1,515,516 | 1,020,575 | 1,383,094 | 934,627 |
| Other business segment | 714,073 | 508,118 | 722,119 | 473,878 |
| Unallocated | 1,112,253 | 211,894 | 1,600,624 | 216,894 |
| Investments in associate | 46,024 | - | 76,503 | - |
| Other financial assets | 317 | - | 391 | - |
| Loans and deposits | 702 | - | 43,179 | - |
| Cash and cash equivalents | 665,933 | - | 1,115,258 | - |
| Income tax receivable | 733 | - | 2 | - |
| Other receivables | 67,134 | - | 36,198 | - |
| Deferred tax assets/liabilities | 331,410 | 58,292 | 329,093 | 51,765 |
| Other liabilities | - | 65,206 | - | 80,552 |
| Liabilities for investments in associate | - | 13,994 | - | - |
| Derivative financial assets/ liabilities | - | 16,982 | - | 7,749 |
| Provisions | - | 57,420 | - | 76,828 |
| Total | 6,879,583 | 4,015,726 | 6,913,547 | 3,602,490 |
The Group's hospitality services are provided in Croatia and Austria (till 29 November 2021) to domestic and foreign customers. The Group's sales revenues are classified according to the customers' origin.
| GROUP | ||
|---|---|---|
| (in thousands of HRK) | January - December 2020 |
January - December 2021 |
| Revenue from sales to domestic customers | 82,721 | 173,626 |
| Revenue from sales to foreign customers | 559,758 | 1,431,502 |
| 642,479 | 1,605,128 |
Foreign sales revenues can be classified according to the number of overnights based on the customers' origin, as follows:
| GROUP | ||||||
|---|---|---|---|---|---|---|
| (in thousands of HRK) | January - December 2020 |
% | January - December 2021 |
% | ||
| EU members | 503,445 | 89.94 | 1,274,469 | 89.03 | ||
| Other | 56,313 | 10.06 | 157,033 | 10.97 | ||
| 559,758 | 100.00 | 1,431,502 | 100.00 |
The following table shows the information of the total cost of employees during the period:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (in thousands of HRK) | January - December 2020 |
January - December 2021 |
January - December 2020 |
January - December 2021 |
| Net salaries | 122,043 | 218,087 | 103,705 | 185,544 |
| Tax and contributions from salary costs | 36,138 | 66,349 | 30,087 | 53,978 |
| Contributions on salaries | 24,606 | 46,430 | 21,802 | 39,419 |
| Total /i/ | 182,788 | 330,866 | 155,594 | 278,941 |
/i/ Total Covid-19 grants related to net salaries compensation with related tax and contribution write-offs due to revenue decline are included in the staff cost of the Group in the amount of HRK 102.1 million (2020: HRK 164.4 million), for the Company HRK 84.6 million (2020: HRK 141.3 million).
For the year ended 31 December 2021 Company's average number of employees is 3,211 (2020: 2,836), while the Group's average number of employees is 3,900 (2020: 3,364).
The Company capitalised net salaries cost in the amount of HRK 4.82 million (2020: HRK 3 million), cost of contributions and tax from salaries in the amount of HRK 1.91 million (2020: HRK 1.4 million) and cost of contributions on salaries in the amount of HRK 0.87 million (2020: HRK 0.6 million). The Group capitalised net salaries cost in the amount of HRK 5.2 million (2020: HRK 4.6 million), cost of contributions and tax from salaries in the amount of HRK 2 million (2020: HRK 2 million) and cost of contributions on salaries in the amount of HRK 0.9 million (2020: HRK 0.9 million).
During the period in 2021 the Company and the Group estimate the period income tax expense according to the IAS 34 provisions.
Porez na dobit obuhvaća:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (in thousands of HRK) | January - December 2020 |
January - December 2021 |
January - December 2020 |
January - December 2021 |
| Current tax | 48 | 22 | - | - |
| Deferred tax | (142,291) | (7,254) | (104,982) | 66,518 |
| Tax (income)/expense | (142,243) | (7,232) | (104,982) | 66,518 |
Movement overview of deferred tax assets and liabilities in 2021:
| (in thousands of HRK) | GROUP | COMPANY |
|---|---|---|
| As at 1 January 2021 | 331,410 | 214,471 |
| Other changes | (12) | - |
| Adjustment of deferred tax assets in profit and loss related to inter-group transaction | 64,307 | - |
| Loss of the control over subsidiaries | (5,095) | - |
| Merger of subsidiary | - | 16,141 |
| Credited/(debited) to the income | (61,517) | (67,388) |
| As at 31 December 2021 | 329,093 | 163,224 |
| (in thousands of HRK) | GROUP | COMPANY |
|---|---|---|
| As at 1 January 2021 | 58,292 | 13,307 |
| Other changes | (5) | - |
| Loss of the control over subsidiaries | (2,075) | - |
| Credited/(debited) to the income | (4,465) | (870) |
| Credited/ (debited) to the other comprehensive income | 18 | 18 |
| As at 31 December 2021 | 51,765 | 12,455 |
NOTES TO THE FINANCIAL STATEMENTS FOR THE FOURTH QUARTER PERIOD ENDED 31 DECEMBER 2021 / continued
on disposal of HRK 1,313 thousand (2020: HRK 4,647 thousand).
During the year ended 31 December 2021, the Group acquired assets in the amount of HRK 115,355 thousand (2020: HRK 595,282 thousand), while the Company acquired
During the year ended 31 December 2021, the Group disposed the assets with a net book value of HRK 2,470 thousand (2020: HRK 4,549 thousand), resulting in a net gain
assets in the amount of HRK 77,557 thousand (2020: HRK 428,118 thousand).
Basic earnings/(loss) per share are calculated by dividing the profit/(loss) for the period of the Group by the weighted average number of shares ordinary in issue during the period, excluding the ordinary shares purchased by the Company and held as treasury shares.
Diluted earnings/(loss) per share are equal to basic, since the Group did not have any convertible instruments and share options outstanding during both periods.
| GROUP | ||
|---|---|---|
| January - December 2020 |
January - December 2021 |
|
| Profit/(loss) attributable to equity holders (in thousands of HRK) | (329,594) | 104,375 |
| Weighted average number of shares | 121,887,907 | 121,887,907 |
| Basic/diluted earnings/(loss) per share (in HRK) | (2.70) | 0.86 |
The most significant Company's transaction in 2021 relates to the entry into the share capital of Imperial Riviera d.d. real estate (land) located at Babin Kuk in Dubrovnik with an area of 148,949 m2, estimated value of HRK 352.84 million.
The following table shows bank borrowings and lease liabilities (IFRS 16) by maturity:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (in thousands of HRK) | Total liabilities on 31 December 2021 |
Maturity over 5 years |
Total liabilities on 31 December 2021 |
Maturity over 5 years |
| Bank borrowings | 3,112,631 | 1,085,889 | 2,827,504 | 979,228 |
| Lease liabilities under IFRS 16 | 13,953 | 4,072 | 14,181 | 3,971 |
| Total | 3,126,584 | 1,089,962 | 3,841,685 | 983,199 |
Non-current bank borrowings are secured with a pledge over Group's property facilities and movable property with a net book value of HRK 2,319,645 thousand (2020: HRK 2,010,351 thousand). Current bank borrowings are secured with promissory notes in the amount of HRK 217,998 thousand (2020: HRK 297,614).
Non-current bank borrowings are secured with a pledge over Company's property facilities and movable property with a net book value of HRK 1,861,945 thousand (2020: HRK 1,616,678 thousand). Current bank borrowings are secured with promissory notes in the amount of HRK 217,998 thousand (2020: HRK 297,614).
The Company and the Group need to determine the ownership status for cca 3.24 million m2 and cca 3.54 million m2 respectively, pursuant to the provisions of the Act on unappraised land (hereinafter: the Act), that entered into force on 2 May 2020. As regards the parts of land owned by the Republic of Croatia or local governments, the Company and the Group will conclude a lease agreement for a period of 50 years, on which IFRS 16 will be applied. The unit amount of the rent and the manner of and deadlines for the payment will be laid down by a regulation adopted by the Government. At the moment of creating this document, the regulation has not been adopted yet; therefore it has not been possible to apply IFRS 16. The range of potential impact of IFRS 16 on the Company's and Group's financial statements is presented in Note 2.3.
The contracted capital commitments of the Company in respect to investments in tourism facilities at 31 December 2021 amount to HRK thousand 544,910 thousand (2020: HRK 515,432 thousand). The contracted capital commitments of the Group in respect to investments in tourism facilities at 31 December 2021 amount to HRK 597,391 thousand (2020: HRK 535,627 thousand).
The Company is the guarantor of the loan related-party Valamar Obertauern GmbH. The estimated maximum amount of the guarantee that can be realized is HRK 48,647 thousand. The loan of the related-party is secured by mortgages on the real estate of Valamar Obertauern GmbH. The Company estimates the very low probability of incurring an actual obligation under the guarantee.
The following table shows total capital and reserves and profit or loss for the last business year of associates as at 31 December 2021:
| (in thousands of HRK) | ||||
|---|---|---|---|---|
| ASSOCIATES | Country | Ownership | Total capital and reserves |
Profit/loss for the year |
| Helios Faros d.d., Stari Grad | Croatia | 20.00% | 222,411 | 2,740 |
| Valamar A GmbH, Vienna /i/ | Austria | 24.54% | 82,998 | (235) |
| Valamar Obertauern GmbH, Obertauern /i/ | Austria | 10% directly/ 22.08% indirectly |
29,805 | (270) |
/i/ Explained detailed in Note 1 – General information.
| GROUP | ||
|---|---|---|
| (in thousands of HRK) | 2020 | 2021 |
| Sale of services | ||
| Other parties related to the owners and corporate governance bodies | 1 | 1 |
| Associate with participating interest | 1,918 | 8,601 |
| 1,919 | 8,602 | |
| Purchase of services | ||
| Other parties related to the owners and corporate governance bodies | 217 | 480 |
| Associate with participating interest | 18 | 239 |
| 235 | 719 | |
| Trade and other receivable | ||
| Associate with participating interest | 331 | 7,294 |
| 331 | 7,294 | |
| Liabilities | ||
| Other parties related to the owners and corporate governance bodies | 84 | 23 |
| Associate with participating interest | - | 39 |
| 84 | 63 |
NOTES TO THE FINANCIAL STATEMENTS FOR THE FOURTH QUARTER PERIOD ENDED 31 DECEMBER 2021 / continued
| (in thousands of HRK) | 2020 | 2021 |
|---|---|---|
| Sale of services | ||
| Subsidiaries /i/ | 6,829 | 312,947 |
| Associate with participating interest | 1,918 | 8,601 |
| Other parties related to the owners and corporate governance bodies | 1 | 1 |
| 8,748 | 321,549 | |
| Purchase of services | ||
| Subsidiaries | 1,136 | 3,830 |
| Associate with participating interest | 18 | 239 |
| Other parties related to the owners and corporate governance bodies | 217 | 430 |
| 1,371 | 4,499 | |
| Trade and other receivable | ||
| Subsidiaries | 161 | 19,712 |
| Associate with participating interest | 331 | 7,294 |
| 492 | 27,006 | |
| Other receivables | ||
| Subsidiaries | 26 | 26 |
| 26 | 26 | |
| Trade and other payables | ||
| Subsidiaries | 136 | 70 |
| Associate with participating interest | - | 39 |
| Other parties related to the owners and corporate governance bodies | 84 | 22 |
| 220 | 131 | |
| Loans given | ||
| Subsidiaries | 28 | 28 |
| 28 | 28 |
/i/ The most significant Company's transaction in 2021 relates to the entry into the share capital of Imperial Riviera d.d. real estate (land) located at Babin Kuk in Dubrovnik with an area of 148,949 m2, estimated value of HRK 352.84 million.
NOTES TO THE FINANCIAL STATEMENTS FOR THE FOURTH QUARTER PERIOD ENDED 31 DECEMBER 2021 / continued
The merger of Palme turizam d.o.o. into the Company was entered in the court register on 7 May 2021. The legal effect of the merger started as of 8 May 2021. After the registration of the merger, Palme turizam d.o.o. ceased to exist and the Company became the universal legal successor of the merged company: all the assets, rights and liabilities of Palme turizam d.o.o. were transferred to the Company.
Statement of comprehensive income of the Group includes the results of the merged companies for the whole current year. Statement of comprehensive income of the Company includes the results of the merged companies from the merger date.
Assets and liabilities in 2021 at merger date are::
| (in thousands of HRK) Assets Property, plant and equipment Deferred tax assets (Note 6) Trade and other receivables Cash and cash equivalents Liabilities Payables and other liabilities Net assets acquired Less: elimination of the Company's share in subsidiary Net effect on equity at merger |
|
|---|---|
| 7 May 2021 | |
| 25,753 | |
| 16,141 | |
| 72 | |
| 1,110 | |
| (14) | |
| 43,062 | |
| (115,448) | |
| (72,386) |
The Group lost control of its subsidiaries Valamar A GmbH and Valamar Obertauern GmbH and ceased to disclose the assets and liabilities of these companies in the consolidated financial statements. According to IFRS 10, the income and expenses of Valamar A GmbH and Valamar Obertauern GmbH are recognized in the consolidated statement of the Group's comprehensive income until 30 November, 2021. As of 1 December, 2021, the Group has significant influence in Valamar A GmbH and Valamar Obertauern GmbH and is disclosed in the consolidated financial statements using the equity method.
The Group did not receive any compensation for the loss of control over its subsidiaries Valamar A GmbH and Valamar Obertauern GmbH, due to the diluted ownership through capital increase of the companies concerned as described in Note 1 – General information.
Gains from the loss of control over subsidiaries are included in financial revenues of 2021.
An overview of assets and liabilities in 2021 over which the Group lost control and the effect of the loss of control over subsidiaries is presented in the table:
| (in thousands of HRK) | 29 November 2021 |
|---|---|
| ASSETS | |
| Non-current assets | |
| Intangible assets | 464 |
| Property, plant and equipment | 58,905 |
| Financial assets | 24 |
| Deferred tax assets | 5,095 |
| Current assets | |
| Inventories | 243 |
| Trade and other receivables | 3,512 |
| Loans and deposits | 22 |
| Cash and cash equivalents | 3,203 |
| 71,468 | |
| LIABILITIES | |
| Non-current liabilities | |
| Borrowings | (46,249) |
| Deferred tax liabilities | (2,075) |
| Current liabilities | |
| Borrowings | (4,511) |
| Trade and other payables | (1,676) |
| (54,511) | |
| Net assets of subsidiaries over which control is lost | 16,957 |
| Exchange rate differences from foreign business | (198) |
| Share fair value | 30,075 |
| Less: Net assets of subsidiaries over which control is lost and exchange rate differences from foreign business |
(16,759) |
| Gains from the loss of the control over subsidiaries | 13,316 |
On 31 January 2022 the Company concluded legal transaction with subsidiary Imperial Riviera d.d. on transfer of three hotel with total of 947 accommodation units, being precisely Valamar Lacroma Dubrovnik Hotel, Club Dubrovnik Sunny Hotel by Valamar and Tirena Sunny Hotel by Valamar of acquisition value of HRK 717,766 thousand. Considering the interests of the acquirer of the mentioned hotels, the financing of this transaction is ensured by taking over the Company's loan obligations, while rest of the amount shall be paid in cash.
Stancija Kaligari 1 52440 Poreč, Hrvatska T +385 (52) 408 002 F +385 (52) 451 608 E [email protected] W www.valamar.com
Stancija Kaligari 1 52440 Poreč, Hrvatska T +385 (52) 408 159 F +385 (52) 451 608 E [email protected] W www.valamar-riviera.com
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