Annual / Quarterly Financial Statement • Apr 6, 2017
Annual / Quarterly Financial Statement
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| Chairman | Giuseppe Saleri |
|---|---|
| Vice Chairman | Cinzia Saleri |
| Vice Chairman | Ettore Saleri |
| Vice Chairman | Roberta Forzanini |
| Chief Executive Officer | Alberto Bartoli |
| Director | Gianluca Beschi |
| Director (*) | Renato Camodeca |
| Director (*) | Giuseppe Cavalli |
| Director (*) | Fausto Gardoni |
| Director (*) | Anna Pendoli |
| Director (*) | Nicla Picchi |
| Director | Alessandro Potestà |
(*) Independent directors
| Chairman | Antonio Passantino |
|---|---|
| Statutory Auditor | Luisa Anselmi |
| Statutory Auditor | Enrico Broli |
Deloitte & Touche S.p.A.
| ASSETS | |||
|---|---|---|---|
| NON-CURRENT ASSETS | |||
| Property, plant and equipment | 1 | 31,092,204 | 31,939,736 |
| Investment property | 2 | 1,645,412 | 1,837,259 |
| Intangible assets | 3 | 3,095,000 | 3,197,864 |
| Equity investments | 4 | 50,098,459 | 45,819,480 |
| Non-current financial assets | 5 | 2,137,353 | 1,837,054 |
| - of which from related parties | 36 | 1,897,353 | 1,837,054 |
| Non-current receivables | 11,621 | 9,183 | |
| Deferred tax assets | 21 | 3,315,263 | 3,284,696 |
| Total non-current assets | 91,395,312 | 87,925,272 | |
| CURRENT ASSETS | |||
| Inventories | 6 | 23,492,840 | 24,674,840 |
| Trade receivables | 7 | 27,465,436 | 32,870,713 |
| - of which from related parties | 36 | 1,191,581 | 2,008,185 |
| Tax receivables | 8 | 2,477,294 | 1,749,451 |
| - of which from related parties | 36 | 1,083,666 | 1,113,702 |
| Other current receivables | 9 | 1,039,324 | 1,197,919 |
| Current financial assets | 10 | 1,060,000 | 1,069,431 |
| - of which from related parties | 36 | 1,000,000 | 1,000,000 |
| Cash and cash equivalents | 11 | 1,796,980 | 1,089,671 |
| Total current assets | 57,331,874 | 62,652,025 | |
| ASSETS HELD FOR SALE | 0 | 0 | |
| TOTAL ASSETS | 148,727,186 | 150,577,297 | |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| SHAREHOLDERS' EQUITY | |||
| Share capital | 12 | 11,533,450 | 11,533,450 |
| Retained earnings, other reserves | 77,530,764 | 79,058,252 | |
| Profit for the year Total shareholders' equity |
2,459,688 91,523,902 |
5,642,123 96,233,825 |
|
| NON-CURRENT LIABILITIES | |||
| Loans | 14 | 17,281,379 | 4,631,730 |
| Other financial liabilities | 15 | 240,000 | 0 |
| Post-employment benefit and retirement reserves | 16 | 2,435,538 | 2,527,275 |
| Provisions for risks and charges | 17 | 322,979 | 326,140 |
| Deferred tax liabilities | 21 | 129,289 | 150,017 |
| Total non-current liabilities | 20,409,185 | 7,635,162 | |
| CURRENT LIABILITIES | |||
| Loans | 14 | 14,054,604 | 21,762,487 |
| Other financial liabilities | 15 | 298,161 | 13,610 |
| Trade payables | 18 | 16,010,381 | 18,202,899 |
| - of which to related parties | 36 | 104,142 | 852,935 |
| Tax payables | 19 | 641,944 | 787,676 |
| Other payables | 20 | 5,789,009 | 5,941,638 |
| Total current liabilities | 36,794,099 | 46,708,310 | |
| LIABILITIES HELD FOR SALE | 0 | 0 |
| NOTES | 2016 | 2015 | |
|---|---|---|---|
| (in euro) | |||
| INCOME STATEMENT COMPONENTS | |||
| OPERATING REVENUE AND INCOME | |||
| Revenue | 23 | 101,523,407 | 113,962,039 |
| - of which from related parties | 36 | 6,680,209 | 7,274,762 |
| Other income | 24 | 2,278,649 | 2,733,344 |
| Total operating revenue and income | 103,802,056 | 116,695,383 | |
| OPERATING COSTS | |||
| Materials | 25 | (36,875,454) | (43,860,895) |
| Change in inventories | (1,182,000) | (402,180) | |
| Services | 26 | (26,031,824) | (28,750,556) |
| - of which by related parties | 36 | (4,151,074) | (4,162,137) |
| Payroll costs | 27 | (26,382,450) | (27,967,750) |
| Other operating costs | 28 | (647,178) | (821,303) |
| Costs for capitalised in-house work | 841,526 | 1,230,058 | |
| Total operating costs | (90,277,380) | (100,572,626) | |
| OPERATING PROFIT BEFORE DEPRECIATION AND AMORTISATION, CAPITAL GAINS/LOSSES, WRITE-DOWNS/WRITE-BACKS |
|||
| OF NON-CURRENT ASSETS | 13,524,676 | 16,122,757 | |
| Depreciations and amortisation | 1,2,3 | (9,020,829) | (8,736,191) |
| Capital gains/(losses) on disposals of non-current assets | 87,113 | 157,965 | |
| Write-downs/write-backs of non-current assets | 29 | (521,021) | 1,302,841 |
| - of which by related parties | 36 | (521,021) | 1,302,841 |
| EBIT | 4,069,939 | 8,847,372 | |
| Financial income | 84,559 | 73,091 | |
| Financial expenses | 30 | (512,872) | (500,483) |
| Exchange rate gains and losses | 31 | (48,356) | (260,920) |
| PROFIT BEFORE TAXES | 3,593,270 | 8,159,060 | |
| Income tax | 32 | (1,133,582) | (2,516,937) |
| PROFIT FOR THE YEAR | 2,459,688 | 5,642,123 |
| 2016 | 2015 | |
|---|---|---|
| (in €) | ||
| PROFIT FOR THE YEAR | 2,459,688 | 5,642,123 |
| Total profits/losses that will not be subsequently reclassified under profit (loss) for the year |
||
| Actuarial post-employment benefit reserve evaluation | (35,894) | 37,619 |
| Tax effect | 8,615 | (8,114) |
| Total other profits/(losses) net of taxes for the year | (27,279) | 29,505 |
| TOTAL PROFIT | 2,432,409 | 5,671,628 |
| (€/000) | 2016 | 2015 |
|---|---|---|
| Cash and cash equivalents at beginning of year | 1,090 | 1,366 |
| Profit for the year | 2,460 | 5,642 |
| Adjustments for: | ||
| - Depreciation and amortisation | 9,021 | 8,736 |
| - Realised gains | (87) | (158) |
| - Write-downs/write-backs of non-current assets | 521 | (1,303) |
| - Net financial income and expenses | 428 | 427 |
| - Non-monetary foreign exchange differences | (60) | 281 |
| - Income tax | 1,133 | 2,517 |
| Change in post-employment benefit reserve | (131) | (149) |
| Change in risk provisions | (3) | (189) |
| Change in trade receivables | 5,405 | 1,825 |
| Change in inventories | 1,182 | 402 |
| Change in trade payables | (2,192) | 630 |
| Change in net working capital | 4,395 | 2,857 |
| Change in other receivables and payables, deferred tax | 367 | 75 |
| Payment of taxes | (2450) | (3,814) |
| Payment of financial expenses | (474) | (465) |
| Collection of financial income | 85 | 73 |
| Cash flow from operations | 15,205 | 14,531 |
| Investments in non-current assets | ||
| - intangible | (735) | (646) |
| - tangible | (7,298) | (9,601) |
| - financial | (4,800) | (1,394) |
| Disposal of non-current assets | 242 | 2,606 |
| Cash flow absorbed by investments | (12,591) | (9,035) |
| Repayment of loans | (19,077) | (7,834) |
| Raising of loans | 24,243 | 8,463 |
| Change in financial assets | 69 | (1,069) |
| Sale of treasury shares | (1,675) | (719) |
| Payment of dividends | (5,467) | (4,613) |
| Cash flow absorbed by financing activities | (1,907) | (5,772) |
| Total financial flows | 707 | (276) |
| Cash and cash equivalents at end of year (Note 11) | 1,797 | 1,090 |
| Current financial debt | 14,353 | 21,776 |
| Non-current financial debt | 17,521 | 4,632 |
| Net financial debt (Note 22) | 30,077 | 25,318 |
The separate financial statements of Sabaf S.p.A. for the financial year 2016 have been prepared in compliance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and adopted by the European Union. Reference to IFRS also includes all current International Accounting Standards (IAS).
The separate financial statements are drawn up in euro, which is the currency in the economy in which the Company operates. The income statement, the comprehensive income statement and the statement of financial position schedules are prepared in euro, while the cash flow statement, the statement of changes in shareholders' equity and the values reported in the explanatory notes are in thousands of euro.
The financial statements have been prepared on a historical cost basis except for some revaluations of property, plant and equipment undertaken in previous years, and are considered a going concern. The Company found that, despite the difficult economic and business climate, there were no significant uncertainties (as defined by paragraphs 25 and 26 of IAS 1) regarding the continuity of the Company, also due to the strong competitive position, high profitability and solidity of the financial structure.
Sabaf S.p.A., as the Parent Company, also prepared the consolidated financial statements of the Sabaf Group at 31 December 2016.
The Company has adopted the following formats:
Use of these formats permits the most meaningful representation of the Company's capital, business and financial status.
The accounting standards and policies applied for the preparation of the separate financial statements at 31 December 2016, unchanged versus the previous year, are shown below:
These are recorded at purchase or manufacturing cost. The cost includes directly chargeable ancillary costs. These costs also include revaluations undertaken in the past based on monetary revaluation rules or pursuant to company mergers.
Depreciation is calculated according to rates deemed appropriate to spread the carrying value of tangible assets over their useful working life. Estimated useful working life, in years, is as follows:
| Buildings | 33 |
|---|---|
| Light constructions | 10 |
| General plant | 10 |
| Specific plant and machinery | 6 – 10 |
| Equipment | 4 |
| Furniture | 8 |
| Electronic equipment | 5 |
| Vehicles and other transport means | 5 |
Ordinary maintenance costs are expensed in the year in which they are incurred; costs that increase the asset value or useful working life are capitalised and depreciated according to the residual possibility of utilisation of the assets to which they refer.
Land is not depreciated.
Investment property is valued at cost, including revaluations undertaken in the past based on monetary revaluation rules or pursuant to company mergers.
The depreciation is calculated based on the estimated useful life, considered to be 33 years.
If the recoverable amount of the investment property – determined based on the market value of the properties – is estimated to be lower than its carrying value, the asset's carrying value is reduced to the lower recoverable amount, recognising impairment of value in the income statement.
When there is no longer any reason for a write-down to be maintained, the carrying value of the asset (or cash generating unit) is increased to the new value stemming from the estimate of its recoverable amount – but not beyond the net carrying value that the asset would have had if it had not been written down for impairment of value. Reversal of impairment loss is recognised in the income statement.
As established by IAS 38, intangible assets acquired or internally produced are recognised as assets when it is probable that use of the asset will generate future economic benefits and when asset cost can be measured reliably. If it is considered that these future economic benefits will not be generated, the development costs are written down in the year in which this is ascertained.
Such assets are measured at purchase or production cost and - if the assets concerned have a finite useful life - are amortised on a straight-line basis over their estimated useful life.
The useful life of projects for which development costs are capitalised is estimated to be 10 years.
The SAP management system is amortised over five years.
Equity investments not classified as held for sale are booked at cost, reduced for impairment. Non-current receivables are stated at their presumed realisable value.
At each end of the reporting period, Sabaf S.p.A. reviews the carrying value of its property, plant and equipment, intangible assets and equity investments to determine whether there are signs of impairment of the value of these assets. If there is any such indication, the recoverable amount of said assets is estimated so as to determine the total of the write-down. If it is not possible to estimate the recoverable value individually, the Company estimates the recoverable value of the cash generating unit (CGU) to which the asset belongs. In particular, the recoverable value of the cash generating units (which generally coincide with the legal entity to which the capitalised assets refer) is verified by determining the value of use. The recoverable amount is the higher of the net selling price and value of use. In measuring the value of use, future cash flows net of taxes, estimated based on past experience, are discounted to their present value using a pre-tax rate that reflects fair market valuations of the present cost of money and specific asset risk. The main assumptions used for calculating the value of use concern the discount rate, growth rate, expected changes in selling prices and cost trends during the period used for the calculation. The growth rates adopted are based on future market expectations in the relevant sector. Changes in the sales prices are based on past experience and on the expected future changes in the market. The Company prepares operating cash flow forecasts based on the most recent budgets approved by the Boards of Directors of the investees, draws up four-year forecasts and determines the terminal value (current value of perpetual income), which expresses the medium and long term operating flows in the specific sector.
Furthermore, the Company checks the recoverable value of its investees at least once a year when the separate financial statements are prepared.
If the recoverable amount of an asset (or CGU) is estimated to be lower than its carrying value, the asset's carrying value is reduced to the lower recoverable amount, recognising impairment of value in the income statement.
When there is no longer any reason for a write-down to be maintained, the carrying value of the asset (or of the cash-generating unit) is increased to the new value stemming from the estimate of its recoverable value – but not beyond the net carrying value that the asset would have had if it had not been written down for impairment of value. Reversal of impairment loss is recognised in the income statement.
Inventories are measured at the lower of purchase or production cost – determined using the weighted average cost method – and the corresponding fair value represented by the replacement cost for purchased materials and by the presumed realisable value for finished and semi-processed products – calculated taking into account any manufacturing costs and direct selling costs yet to be incurred. Inventory cost includes accessory costs and the portion of direct and indirect manufacturing costs that can reasonably be assigned to inventory items. Inventories subject to obsolescence and low turnover are written down in relation to their possibility of use or realisation. Inventory write-downs are eliminated in subsequent years if the reasons for such write-downs cease to exist.
Receivables are recognised at their presumed realisable value. Their face value is adjusted to a lower realisable value via specific provisioning directly reducing the item based on in-depth analysis of individual positions. Trade receivables assigned without recourse, despite being transferred legally, continue to be stated with "Trade receivables" until they are collected. Advance payments obtained with regard to the sale of trade receivables are recognised under current loans.
Financial assets held for trading are measured at fair value, allocating profit and loss effects to finance income or expense.
Provisions for risks and charges are provisioned to cover losses and debts, the existence of which is certain or probable, but whose amount or date of occurrence cannot be determined at the end of the year. Provisions are stated in the statement of financial position only when a legal or implicit obligation exists that determines the use of resources with an impact on profit and loss to meet that obligation and the amount can be reliably estimated. If the effect is significant, the provisions are calculated by updating future financial flows estimated at a rate including taxes such as to reflect current market valuations of the current value of the cash and specific risks associated with the liability.
The post-employment benefit reserve (TFR) is provisioned to cover the entire liability accruing vis-à-vis employees in compliance with current legislation and with national and supplementary company collective labour contracts. This liability is subject to revaluation via application of indices fixed by current regulations. Up to 31 December 2006, post-employment benefits were considered defined-benefit plans and accounted for in compliance with IAS 19, using the projected unit-credit method. The regulations of this fund were amended by Italian Law no. 296 of 27 December 2006 and subsequent Decrees and Regulations issued during the first months of 2007 In the light of these changes, and, in particular, for companies with at least 50 employees, post-employment benefits must now be considered a defined-benefit plan only for the portions accruing before 1 January 2007 (and not yet paid as at the end of the reporting period). Conversely, portions accruing after that date are treated as definedcontribution plans.
Actuarial gains or losses are recorded immediately under "Other total profits/(losses)".
Payables are recognised at face value; the portion of interest included in their face value and not yet payable at period-end is deferred to future periods.
Loans are initially recognised at cost, net of related costs of acquisition. This value is subsequently adjusted to allow for any difference between initial cost and repayment value over the loan's duration using the effective interest rate method.
Loans are classified among current liabilities unless the Company has the unconditional right to defer discharge of a liability by at least 12 months after the reference date.
Receivables and payables originally expressed in foreign currencies are converted into euro at the exchange rates in force on the date of the transactions originating them. Forex differences realised upon collection of receivables and payment of payables in foreign currency are posted in the income statement. Income and costs relating to foreign-currency transactions are converted at the rate in force on the transaction date.
At year-end, assets and liabilities expressed in foreign currencies are posted at the spot exchange rate in force at the end of the reporting period and related foreign exchange gains and losses are posted in the income statement. If conversion generates a net gain, this value constitutes a non-distributable reserve until it is effectively realised.
The Company's business is exposed to financial risks relating to changes in exchange rates, commodity prices and interest rates. The Company may decide to use derivative financial instruments to hedge these risks.
Derivatives are initially recognised at cost and are then adjusted to fair value on subsequent closing dates.
Changes in the fair value of derivatives designated and recognised as effective for hedging future cash flows relating to the Company's contractual commitments and planned transactions are recognised directly in shareholders' equity, while the ineffective portion is immediately posted in the income statement. If the contractual commitments or planned transactions materialise in the recognition of assets or liabilities, when such assets or liabilities are recognised, the gains or losses on the derivative that were directly recognised in equity are factored back into the initial valuation of the cost of acquisition or carrying value of the asset or liability. For cash flow hedges that do not lead to recognition of assets or liabilities, the amounts that were directly recognised in equity are included in the income statement in the same period when the contractual commitment or planned transaction hedged impacts profit and loss – for example, when a planned sale actually takes place.
For effective hedges of exposure to changes in fair value, the item hedged is adjusted for the changes in fair value attributable to the risk hedged and recognised in the income statement. Gains and losses stemming from the derivative's valuation are also posted in the income statement.
Changes in the fair value of derivatives not designated as hedging instruments are recognised in the income statement in the period when they occur.
Hedge accounting is discontinued when the hedging instrument expires, is sold or is exercised, or when it no longer qualifies as a hedge. At this time, the cumulative gains or losses of the hedging instrument recognised in equity are kept in the latter until the planned transaction actually takes place. If the transaction hedged is not expected to take place, cumulative gains or losses recognised directly in equity are transferred to the year's income statement.
Embedded derivatives included in other financial instruments or contracts are treated as separate derivatives when their risks and characteristics are not strictly related to those of their host contracts and the latter are not measured at fair value with posting of related gains and losses in the income statement.
Revenue is reported net of return sales, discounts, allowances and bonuses, as well as of the taxes directly associated with sale of goods and rendering of services.
Sales revenue is reported when the company has transferred the significant risks and benefits associated with ownership of the goods and the amount of revenue can be reliably measured. Revenues of a financial nature are recorded on an accrual basis.
Finance income includes interest receivable on funds invested and income from financial instruments, when not offset as part of hedging transactions. Interest income is recorded in the income statement at the time of vesting, taking effective output into consideration.
Financial expenses include interest payable on financial debt calculated using the effective interest method and bank expenses.
Income taxes include all taxes calculated on the Company's taxable income. Income taxes are directly recognised in the income statement, with the exception of those concerning items directly debited or credited to shareholders' equity, in which case the tax effect is recognised directly in shareholders' equity. Other taxes not relating to income, such as property taxes, are included among operating expenses. Deferred taxes are provisioned in accordance with the global liability provisioning method. They are calculated on all temporary differences that emerge from the taxable base of an asset or liability and its book value. Current and deferred tax assets and liabilities are offset when income taxes are levied by the same tax authority and when there is a legal right to settle on a net basis. Deferred tax assets and liabilities are measured using the tax rates that are expected to be applicable in the years when temporary differences will be realised or settled.
Dividends are posted on an accrual basis when the right to receive them materialises, i.e. when shareholders approve dividend distribution.
Treasury shares are booked in a specific reserve as a reduction of shareholders' equity. The carrying value of treasury shares and revenues from any subsequent sales are recognised in the form of changes in shareholders' equity.
Preparation of the separate financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the carrying values of assets and liabilities and the disclosures on contingent assets and liabilities at the end of the reporting period. Actual results might differ from these estimates. Estimates are used to measure tangible and intangible assets and investments subject to impairment testing, as described earlier, as well as to measure the ability to recover prepaid tax assets, provisions for bad debts, for inventory obsolescence, depreciation and amortisation, asset write-downs, employee benefits, taxes, other provisions and reserves. Specifically:
The procedure for determining impairment of value of tangible and intangible assets described in "Impairment of value" implies – in estimating the value of use – the use of the Business Plans of investees, which are based on a series of assumptions relating to future events and actions of the investees' management bodies, which may not necessarily come about. In estimating market value, however, assumptions are made on the expected trend in trading between third parties based on historical trends, which may not actually be repeated.
Receivables are adjusted by the related bad debt provision to take into account their recoverable value. To determine the size of the write-downs, management must make subjective assessments based on the documentation and information available regarding, among other things, the customer's solvency, as well as experience and historical payment trends.
Warehouse inventories subject to obsolescence and slow turnover are systematically valued, and written down if their recoverable value is less than their carrying value. Write-downs are calculated based on management assumptions and estimates, resulting from experience and historical results.
The current value of liabilities for employee benefits depends on a series of factors determined using actuarial techniques based on certain assumptions. Assumptions concern the discount rate, estimates of future salary increases, and mortality and resignation rates. Any change in the above-mentioned assumptions might have an effect on liabilities for pension benefits.
Determining liabilities for Company taxes requires the use of management valuations in relation to transactions whose tax implications are not certain at the end of the reporting period. Furthermore, the valuation of deferred taxes is based on income expectations for future years; the valuation of expected income depends on factors that might change over time and have a significant effect on the valuation of deferred tax assets.
When estimating the risk of potential liabilities from disputes, the Directors rely on communications regarding the status of recovery procedures and disputes from the lawyers who represent the Company in litigation. These estimates are determined taking into account the gradual development of the disputes, considering existing exemptions.
Estimates and assumptions are regularly reviewed and the effects of each change immediately reflected in the income statement.
The following IFRS accounting standards, amendments and interpretations were applied for the first time by the Company from 1 January 2016:
asset to be depreciated generally reflect factors other than just consumption of the economic benefits of the asset, a requirement that is, however, required for depreciation. The adoption of this amendment did not have any effect on the Company's separate financial statements.
Finally, as part of the annual process of improvement of the standards, on 12 December 2013 the IASB published the document "Annual Improvements to IFRSs: 2010-2012 Cycle" (including IFRS 2 Share Based Payments – Definition of vesting condition, IFRS 3 Business Combination – Accounting for contingent consideration, IFRS 8 Operating segments – Aggregation of operating segments and Reconciliation of total of the reportable segments' assets to the entity's assets, IFRS 13 Fair Value Measurement – Short-term receivables and payables) and on 25 September 2014 the document "Annual Improvements to IFRSs: 2012- 2014 Cycle" (including: IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, IFRS 7 – Financial Instruments: Disclosure and IAS 19 – Employee Benefits) which partially integrate the existing standards.
the allocation of the price to the contract's performance obligations;
the revenue recognition criteria when the entity satisfies each performance obligation. The principle applies from 1 January 2018, but early application is permitted. Although the systematic analysis of the case and in particular a detailed analysis of the contracts with the customers have not yet been completed, the directors do not expect that the application of IFRS 15 can have a significant impact on the amounts recorded for the revenues and on the related disclosures in the Company's separate financial statements.
• Final version of IFRS 9 – Financial Instruments (published on 24 July 2014). The document includes the results of the phases relating to the classification and valuation, Impairment and Hedge accounting, of the IASB project designed to replace IAS 39. The new standard, which replaces the previous versions of IFRS 9, should be applied by financial statements from 1 January 2018 onwards. The directors do not expect that the application of IFRS 9 can have a significant impact on the amounts and on the disclosures in the Company's separate financial statements. However, it is not possible to provide a reasonable estimate of the effect as long as the Company has not completed a detailed analysis of the related contract.
On the reporting date of these separate financial statements, the competent bodies of the European Union have not yet concluded the approval process necessary for the adoption of the amendments and principles described below.
On 19 January 2016, the IASB published the document "Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to IAS 12)", which contains the amendments to IAS 12. The aim of the document is to provide some clarification on the recognition of deferred tax assets on unrealised losses upon the occurrence of certain circumstances and on the estimate of taxable income for future years. The amendments apply from 1 January 2017 but early application is permitted.
On 29 January 2016, IASB published the document "Disclosure Initiative (Amendments to IAS 7)", which contains the amendments to IAS 7. The aim of the document is to provide some clarification to improve disclosure on financial liabilities. In particular, the amendments require providing disclosures that enable the users of financial statements to understand changes in liabilities arising from financing activities.
| Property | Plant and equipment |
Other assets | Assets under construction |
Total | |
|---|---|---|---|---|---|
| Cost | |||||
| At 31 December 2014 |
6,208 | 147,785 | 29,579 | 3,709 | 187,281 |
| Increases | 67 | 7,802 | 1,038 | 749 | 9,656 |
| Disposals | - | (2,891) | (106) | - | (2,997) |
| Reclassification | - | 2,668 | 63 | (2,786) | (55) |
| At 31 December 2015 |
6,275 | 155,364 | 30,574 | 1,672 | 193,885 |
| Increases | 53 | 5,325 | 1,462 | 758 | 7,598 |
| Disposals | (1) | (2,982) | (236) | - | (3,219) |
| Reclassification | - | 684 | 19 | (1,003) | (300) |
| At 31 December 2016 |
6,327 | 158,391 | 31,819 | 1,427 | 197,964 |
| Accumulated depreciation |
|||||
| At 31 December 2014 |
2,535 | 127,774 | 25,579 | 0 | 155,888 |
| Depreciations for the year |
176 | 5,847 | 1,841 | - | 7,864 |
| Eliminations for disposals |
- | (1,701) | (106) | - | (1,807) |
| At 31 December 2015 |
2,711 | 131,920 | 27,314 | 0 | 161,945 |
| Depreciations for the year |
176 | 6,200 | 1,702 | - | 8,078 |
| Eliminations for disposals |
- | (2,973) | (178) | - | (3,151) |
| At 31 December 2016 |
2,887 | 135,147 | 28,838 | 0 | 166,872 |
| Net carrying value |
|||||
| At 31 December 2016 |
3,440 | 23,244 | 2,981 | 1,427 | 31,092 |
| At 31 December 2015 |
3,564 | 23,444 | 3,260 | 1,672 | 31,940 |
The breakdown of the net carrying value of Property was as follows:
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| Land | 1,291 | 1,291 | - |
| Industrial buildings | 2,149 | 2,273 | (124) |
| Total | 3,440 | 3,564 | (124) |
The main investments in the financial year were aimed at the further automation of production of light alloy valves. Investments were also made to improve production processes as well as maintenance and replacement investments designed to keep the capital equipment constantly updated.
Decreases mainly relate to the disposal of obsolete machinery.
Assets under construction include machinery under construction and advance payments to suppliers of capital equipment.
At 31 December 2016, the Company found no endogenous or exogenous indicators of impairment of its property, plant and equipment. As a result, the value of property, plant and equipment was not submitted to impairment testing.
| Cost | |
|---|---|
| At 31 December 2014 | 6,675 |
| Increases | - |
| Disposals | - |
| At 31 December 2015 |
6,675 |
| Increases | - |
| Disposals | - |
| At 31 December 2016 |
6,675 |
| Accumulated depreciations | |
|---|---|
| At 31 December 2014 | 4,646 |
| Depreciations for the year | 192 |
| At 31 December 2015 |
4,838 |
| Depreciations for the year | 192 |
| At 31 December 2016 |
5,030 |
| Net carrying value | |
| At 31 December 2016 |
1,645 |
| At 31 December 2015 |
1,837 |
This item includes non-operating buildings owned by the Group. During the year this item did not undergo any changes except for depreciation and amortisation for the year. At 31 December 2016, the Company found no endogenous or exogenous indicators of impairment of its investment property. As a result, the value of investment property was not submitted to impairment testing.
| Patents, know-how and |
Development costs |
Other intangible |
Total | |
|---|---|---|---|---|
| Cost | software | assets | ||
| At 31 December 2014 | 5,855 | 4,308 | 1,786 | 11,949 |
| Increases | 192 | 414 | 21 | 627 |
| Reclassifications | 66 | (46) | - | 20 |
| Decreases | - | - | - | - |
| At 31 December 2015 |
6,113 | 4,676 | 1,807 | 12,596 |
| Increases | 108 | 313 | 53 | 474 |
| Reclassifications | 54 | (87) | 207 | 174 |
| Decreases | - | - | - | - |
| At 31 December 2016 |
6,275 | 4,902 | 2,067 | 13,244 |
| Amortisation and write-downs |
||||
| At 31 December 2014 | 5,416 | 2,011 | 1,290 | 8,717 |
| 2015 amortisation | 203 | 336 | 142 | 681 |
| Decreases | - | - | - | - |
| At 31 December 2015 |
5,619 | 2,347 | 1,432 | 9,398 |
| 2016 amortisation | 254 | 350 | 147 | 751 |
| Decreases | - | - | - | - |
| At 31 December 2016 |
5,873 | 2,697 | 1,579 | 10,149 |
| Net carrying value | ||||
| At 31 December 2016 |
402 | 2,205 | 488 | 3,095 |
| At 31 December 2015 |
494 | 2,329 | 375 | 3,198 |
Intangible assets have a finite useful life and, as a result, are amortised throughout their life. The main investments in the year relate to the development of new products, mainly related to the expansion of the range of burners (research and development activities carried out during the financial year are set out in the Report on Operations). Software investments include the application development of the management system (SAP) and CAD development. Other intangible assets refer, in the main, to improvements to third-party leased assets.
At 31 December 2016, the Company found no endogenous or exogenous indicators of impairment of its intangible assets. As a result, the value of property, plant and equipment was not submitted to impairment testing.
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| In subsidiaries | 50,039 | 45,760 | 4,279 |
| Other equity | 59 | 59 | - |
| investments | |||
| Total | 50,098 | 45,819 | 4,279 |
The change in equity investments in subsidiaries is broken down in the table below:
| Sabaf Immobiliare |
Faringosi Hinges |
Sabaf do Brasil |
Sabaf Mexico |
Sabaf U.S. |
Sabaf Appliance Components (China) |
Sabaf A.C. Kunsha n (China) |
Sabaf Turkey |
A.R.C. s.r.l. |
Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| Historical cost | ||||||||||
| At 31 Dec 2014 | 13,475 | 10,329 | 8,469 | 548 | 139 | 3,400 | 200 | 13,351 | 0 | 49,911 |
| Increases/reductio | ||||||||||
| ns | - | - | - | - | - | 1,000 | - | (1,346) | - | (346) |
| of capital | ||||||||||
| Equity investment | ||||||||||
| liquidation | - | - | - | (548) | - | - | - | - | - | (548) |
| At 31 Dec 2015 | 13,475 | 10,329 | 8,469 | 0 | 139 | 4,400 | 200 | 12,005 | 0 | 49,017 |
| Purchase of equity | ||||||||||
| investments | - | - | - | - | - | - | - | - | 4,800 | 4,800 |
| At 31 Dec 2016 | 13,475 | 10,329 | 8,469 | 0 | 139 | 4,400 | 200 | 12,005 | 4,800 | 53,817 |
| Provision for | ||||||||||
| write-downs | ||||||||||
| At 31 Dec 2014 | 0 | 1,882 | 0 | 548 | 0 | 2,683 | 0 | 0 | 0 | 5,113 |
| Write-downs | ||||||||||
| (write-backs) (Note | - | (1,882) | - | - | - | 574 | - | - | - | (1,308) |
| 28) | ||||||||||
| Equity investment | ||||||||||
| liquidation | - | - | - | (548) | - | - | - | - | - | (548) |
| At 31 Dec 2015 | 0 | 0 | 0 | 0 | 0 | 3,257 | 0 | 0 | 0 | 3,257 |
| Write-downs | ||||||||||
| (write-backs) (Note | - | - | - | - | - | 521 | - | - | - | 521 |
| 28) | ||||||||||
| At 31 Dec 2016 | 0 | 0 | 0 | 0 | 0 | 3,778 | 0 | 0 | 0 | 3,778 |
| Net carrying value | ||||||||||
| At 31 Dec 2016 | 13,475 | 10,329 | 8,469 | 0 | 139 | 622 | 200 | 12,005 | 4,800 | 50,039 |
| At 31 Dec 2015 | 13,475 | 10,329 | 8,469 | 0 | 139 | 1,143 | 200 | 12,005 | 0 | 45,760 |
| Portion of shareholders' equity (calculated in compliance with IAS/IFRS) | ||||||||||
| At 31 Dec 2016 | 30,027 | 5,546 | 10,628 | 0 | (25) | 683 | 266 | 14,805 | 3,025 | 64,955 |
| At 31 Dec 2015 | 28,679 | 4,922 | 7,145 | 0 | (32) | 1,302 | 293 | 14,085 | 0 | 56,394 |
| Difference between shareholders' equity and carrying value | ||||||||||
| At 31 Dec 2016 | 16,552 | (4,783) | 2,159 | 0 | (164) | 61 | 66 | 2,800 | (1,775) | 14,916 |
| At 31 Dec 2015 | 15,204 | (5,407) | (1,324) | 0 | (171) | 159 | 93 | 2,080 | - | 10,634 |
In the course of 2016, the Faringosi Hinges achieved better results, both in terms of sales development and profitability, which turned out to be greater than the budget. The 2017-2021 forward plan, drafted at the end of 2016, plans a further gradual improvement of sales and the maintaining of profitability, to be considered as durably acquired also in a future perspective. At 31 December 2016, Sabaf S.p.A. tested the carrying value of the equity investment for impairment, determining its recoverable value, considered to be equivalent to its usable value plus available liquidity, by discounting expected future cash flows in the forward plan drafted by the management. Cash flows for the period from 2017 to 2021 were augmented by the socalled terminal value, which expresses the operating flows that the investee is expected to generate from the sixth year to infinity and determined based on the perpetual income. The value of use was calculated based on a discount rate (WACC) of 7.76% (8.45% in the impairment test conducted while drafting the separate financial statements at 31 December 2015) and a growth rate (g) of 1.50%, which is in line with historical data.
The recoverable value calculated on the basis of the above-mentioned assumptions and valuation techniques is € 12,700 million, compared with a carrying value of the equity investment of € 10,329 million; consequently, the value recorded for equity investment at 31 December 2016 was deemed recoverable.
The table below shows the changes in recoverable value depending on changes in the WACC discount rate and growth factor g:
| (€/000) | |||||
|---|---|---|---|---|---|
| growth rate |
|||||
| discount rate |
1.00% | 1.25% | 1.50% | 1.75% | 2.00% |
| 6.76% | 14,086 | 14,619 | 15,202 | 15,844 | 16,553 |
| 7.26% | 12,922 | 13,363 | 13,842 | 14,365 | 14,937 |
| 7.76% | 11,930 | 12,300 | 12,700 | 13,133 | 13,603 |
| 8.26% | 11,076 | 11,390 | 11,727 | 12,091 | 12,483 |
| 8.76% | 10,332 | 10,601 | 10,889 | 11,198 | 11,529 |
In 2016, Sabaf do Brasil continued to obtain positive results, which improved compared with 2015. The increase in shareholders' equity (converted into euros at the end-of-year exchange rate) also benefits from the revaluation of the Brazilian real.
The subsidiary Sabaf U.S. operates as a commercial support for North America.
The difference between the carrying value and the shareholders' equity of the investee is attributable to the non-durable losses taking into consideration expected development on the North American market.
Sabaf Appliance Components (Kunshan) Co., Ltd. has been producing burners for the Chinese market since 2015. Furthermore, the company has performed the function as distributor on the Chinese market of Sabaf products manufactured in Italy and Turkey. Low production volumes have enabled the company to reach the break-even point in 2016. At 31 December 2016, the value of the equity investment decreased by € 521,000, adjusting it to the shareholders' equity at the end of the year, in that the loss was considered permanent.
Sabaf Appliance Components Trading (Kunshan) Co., Ltd., was founded during 2012 in order to perform the function as distributor. During 2015, this activity was centralised at Sabaf Appliance Components; however, the company went into liquidation; the process of liquidation will end in 2017.
Sabaf Turkey achieved extremely satisfactory results in 2016 as well. The conversion into euro of the shareholders' equity at the end of the financial year was affected by the strong devaluation of the Turkish lira at the end of 2016; however, the shareholders' equity remains higher than the carrying value of the equity investment.
In June 2016, the Company acquired the controlling share (70%) of A.R.C. s.r.l., leading company in the production of burners for professional cooking. The transaction allowed Sabaf to enter into a new sector, contiguous with the traditional sector of components for household gas cooking appliances, and to enhance the consolidated international presence of the Sabaf Group.
At 31 December 2016, the Company tested the carrying value of the equity investment for impairment, determining its recoverable value, considered to be equivalent to its usable value plus available liquidity, by discounting expected future cash flows in the forward plan prepared during the acquisition of the equity investment in A.R.C. and adjusted at the end of 2016 on the basis of further elements known. Cash flows for the period from 2017 to 2019 were augmented by the so-called terminal value, which expresses the operating flows that the investee is expected to generate from the sixth year to infinity and determined based on the perpetual income. The value of use was calculated based on a discount rate (WACC) of 5.79% and a growth rate (g) of 1.50%.
The portion pertaining to Sabaf S.p.A. of the recoverable value calculated on the basis of the above-mentioned assumptions and valuation techniques is € 6.938 million, compared with a carrying value of the equity investment of € 4.8 million; consequently, the carrying value recorded for equity investment at 31 December 2016 was deemed recoverable.
The table below shows the changes in recoverable value depending on changes in the WACC discount rate and growth factor g:
| (€/000) | |||||
|---|---|---|---|---|---|
| growth rate |
|||||
| discount rate |
1.00% | 1.25% | 1.50% | 1.75% | 2.00% |
| 4.79% | 7,718 | 8,129 | 8,601 | 9,152 | 9,801 |
| 5.29% | 6,989 | 7,304 | 7,660 | 8,067 | 8,535 |
| 5.79% | 6,413 | 6,661 | 6,938 | 7,250 | 7,603 |
| 6.29% | 5,945 | 6,146 | 6,368 | 6,614 | 6,889 |
| 6.79% | 5,559 | 5,724 | 5,905 | 6,104 | 6,323 |
As part of the acquisition of 70% of A.R.C. S.r.l., Sabaf S.p.A. signed with Loris Gasparini (current minority shareholder by 30% of A.R.C.) an agreement that aimed to regulate Gasparini's right to leave A.R.C. and the interest of Sabaf to acquire 100% of the shares after expiry of the term of five years from the signing of the purchase agreement of 24 June 2016, by signing specific option agreements. Therefore, the agreement envisaged specific option rights to purchase (by Sabaf) and sell (by Gasparini) exercisable as from 24 June 2021, the remaining shares of 30% of A.R.C., with strike prices contractually defined on the basis of final income parameters from A.R.C. at 31 December 2020.
The option for the purchase of the residual 30% of A.R.C. represents a derivative instrument; since the exercise price defined by contract was considered representative of the fair value of the portion that can be potentially acquired, no value was recorded in the separate financial statements ended 31 December 2016.
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| Financial receivables from subsidiaries |
1,897 | 1,837 | 60 |
| Fixed bank account | 240 | - | 240 |
| Total | 2,137 | 1,837 | 300 |
At 31 December 2016 and at 31 December 2015, financial receivables from subsidiaries consist of an interest-bearing loan of USD 2 million, maturing in March 2017, granted to the subsidiary Sabaf do Brasil with the aim of optimising the Group's exposure to foreign exchange rate risk.
As part of the acquisition of 70% of A.R.C., Sabaf S.p.A. paid to a fixed bank account the total amount of € 300,000, of which € 240,000 falling due after 12 months. This amount was deducted from the consideration agreed to guarantee the commitments assumed by the sellers and is payable in equal instalments over five years. (Note 15)
| 31/12/2016 | 31/12/2015 | Change |
|---|---|---|
| 7,455 | 8,758 | (1,303) |
| 9,310 | 9,326 | (16) |
| 8,773 | 8,461 | 312 |
| (2,045) | (1,870) | |
| (175) | ||
| 23,493 | 24,675 | (1,182) |
The value of final inventories at 31 December 2016 was lower than the previous year as a result of the decline in production and sales volumes. The obsolescence provision, which refers € 470,000 to commodities, € 645,000 to semi-processed goods and € 930,000 to finished products, reflects the improved estimate of the risk of obsolescence, based on specific analyses conducted at the end of the year on slow-moving and non-moving articles.
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| Total trade receivables | 28,065 | 33,821 | (5,756) |
| Bad debt provision | (600) | (950) | 350 |
| Net total | 27,465 | 32,871 | (5,406) |
At 31 December 2016, trade receivables included balances totalling USD 2,925,000, booked at the EUR/USD exchange rate in effect on 31 December 2016, i.e. 1.0541. The amount of trade receivables recognised in the financial statements includes € 1.1 million of receivables assigned without recourse to factoring companies (€ 2.3 million at 31 December 2015) and approximately € 14 million in insured receivables (€ 13.9 million at 31 December 2015). The bad debt provision was adjusted to the better estimate of the credit risk at the end of the reporting period.
The reduction in trade receivables is attributable not only to the decline in sales but also to lower receivables past due compared to the previous year, as shown in the following table:
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| Current receivables (not past | 24,378 | 28,280 | |
| due) | (3,902) | ||
| Outstanding up to 30 days | 2,242 | 2,233 | 9 |
| Outstanding from 31 to 60 | 184 | 415 | |
| days | (231) | ||
| Outstanding from 61 to 90 | 64 | 730 | |
| days | (666) | ||
| Outstanding for more than | 1,197 | 2,163 | |
| 90 days | (966) | ||
| Total | 28,065 | 33,821 | (5,756) |
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| From Giuseppe Saleri SapA for IRES | 1,083 | 1,114 | (31) |
| From inland revenue for income tax | 992 | 605 | 387 |
| From inland revenue for VAT | 402 | 30 | 372 |
| Total | 2,477 | 1,749 | 728 |
Until the 2015 financial year, Sabaf S.p.A. has been part of the national tax consolidation scheme pursuant to Articles 117/129 of the Unified Income Tax Law. In this scheme, Giuseppe Saleri S.a.p.A., the parent company of Sabaf S.p.A., acted as the consolidating company. In 2016, the conditions for the preparation of the tax consolidation scheme fell short, which consequently was discontinued.
The receivable from Giuseppe Saleri S.a.p.A. recognised at 31 December 2016 derives from the full deductibility of IRAP from IRES relating to the expenses incurred for employees for the 2006-2011 period (Italian Legislative Decree 201/2011), for which the consolidating company presented an application for a refund and which will revert to Sabaf as soon as it is refunded. The tax receivable for income taxes is generated by the higher tax payments on account paid in during the year compared with the tax due.
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| Credits to be received from | |||
| suppliers | 678 | 857 | (179) |
| Advances to suppliers | 54 | 33 | 21 |
| Due from INAIL | 58 | 32 | 26 |
| Other | 249 | 276 | (27) |
| Total | 1,039 | 1,198 | (159) |
At 31 December 2016, credits to be received from suppliers included € 411,000 related to the relief due to the Company as an energy-intensive business (so-called "energy-intensive bonuses") for the years 2014 and 2015, of which € 194,000 received at the beginning of 2017.
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| Financial receivables from | 1,000 | 1,000 | - |
| subsidiaries | |||
| Fixed bank account (Note 5) | 60 | - | 60 |
| Currency derivatives | - | 69 | (69) |
| Total | 1,060 | 1,069 | (9) |
At 31 December 2016 and at 31 December 2015, financial receivables from subsidiaries consist of an interest-bearing loan of € 1 million to Sabaf Appliance Components Co., Ltd. to support the Chinese subsidiary's working capital. The loan has a term of 12 months and was renewed in December 2016 for the same period.
The item Cash and cash equivalents, equal to € 1,797,000 at 31 December 2016 (€ 1,090,000 at 31 December 2015) refers almost exclusively to bank current account balances.
At 31 December 2016 the parent company's share capital consists of 11,533,450 shares with a par value of € 1.00 each. The share capital paid in and subscribed did not change during the year.
During the financial year, Sabaf S.p.A. acquired 171,061 treasury shares at an average unit price of € 9,794; there have been no sales.
At 31 December 2016, the Company held 233,139 treasury shares, equal to 2.021% of share capital (62,078 treasury shares at 31 December 2015), reported in the financial statements as an adjustment to shareholders' equity at a unit value of € 10.289 (the market value at year-end was € 10.4).
There were 11,300,311 outstanding shares at 31 December 2016 (11,471,372 at 31 December 2015).
| 31/12/2016 | 31/12/2015 | |||
|---|---|---|---|---|
| Current | Non current | Current | Non current | |
| Unsecured loans | 6,656 | 17,281 | 2,707 | 4,632 |
| Short-term bank | - | |||
| loans | 7,397 | - | 13,194 | |
| Advances on bank | ||||
| receipts or invoices | 2 | - | 5,825 | - |
| Interest payable | - | - | 36 | - |
| Total | 14,055 | 17,281 | 21,762 | 4,632 |
During the financial year, the Company reformulated the average duration of its loans, entering into 4 unsecured loan agreements totalling € 19.8 million repayable in five years in quarterly fixed instalments, a rates ranging from 0.60% to 1%.
Only one of the outstanding unsecured loans of € 5 million at 31 December 2016 has covenants, defined with reference to the consolidated financial statements at the end of the reporting period, as specified below:
All outstanding bank loans are denominated in euro, with the exception of a short-term loan of USD 2 million.
Note 35 provides information on financial risks, pursuant to IFRS 7.
| 31/12/2016 | 31/12/2015 | |||
|---|---|---|---|---|
| Current | Non current | Current | Non current | |
| Payables to A.RC. shareholders |
60 | 240 | - | - |
| Currency derivatives | 201 | - | 17 | - |
| Derivative instruments on interest rates |
37 | - | 14 | - |
| Total | 298 | 240 | 31 | 0 |
The payable to the A.R.C. shareholders of € 300.000 at 31 December 2016 is related to the part of the price still to be paid to the sellers, which was deposited on an fixed account (Note 5) and will be released in favour of the sellers at constant rates in 5 years, in accordance with contractual agreements and guarantees issued by the sellers.
Other financial liabilities also include:
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| Post-employment benefit reserve | 2,436 | 2,527 | (91) |
| Total | 2,436 | 2,527 | (91) |
Following the revision of IAS 19 - Employee benefits, from 1 January 2013 all actuarial gains or losses are recorded immediately in the comprehensive income statement ("Other comprehensive income") under the item "Actuarial income and losses".
Post-employment benefits are calculated as follows:
Financial assumptions
| 31/12/2016 | 31/12/2015 | |
|---|---|---|
| Discount rate | 1.15% | 1.60% |
| Inflation | 1.75% | 2.00% |
| 31/12/2016 | 31/12/2015 | |
|---|---|---|
| Mortality rate | ISTAT 2010 M/F | ISTAT 2010 M/F |
| Disability rate | INPS 1998 M/F | INPS 1998 M/F |
| Staff turnover | 6% | 6% |
| Advance payouts | 5% per year | 5% per year |
| Retirement age | pursuant to legislation in | pursuant to legislation in |
| force on 31 December 2016 | force on 31 December 2015 |
| 31/12/2015 | Provisions | Utilisation | Release of excess portion |
31/12/2016 | |
|---|---|---|---|---|---|
| Reserve for | |||||
| agents' | 266 | - | - | (53) | 213 |
| indemnities | |||||
| Product | |||||
| guarantee fund | 60 | 35 | (35) | - | 60 |
| Reserve for legal | |||||
| risks | - | 50 | - | - | 50 |
| Total | 326 | 85 | (35) | (53) | 323 |
The reserve for agents' indemnities covers amounts payable to agents if the Company terminates the agency relationship.
The product guarantee fund covers the risk of returns or charges by customers for products already sold.
The reserve for legal risks is allocated for disputes of a modest size.
The provisions booked to the provisions for risks, which represent the estimate of future payments made based on historical experience, have not been discounted because the effect is considered negligible.
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| Total | 16,010 | 18,203 | (2,193) |
The decrease in trade payables compared to the previous financial year is related to lower purchase volumes; average payment terms did not change versus the previous year. The amount of trade payables in currencies other than the euro is not significant. At 31 December 2016, there were no overdue payables of a significant amount and the Company did not receive any injunctions for overdue payables.
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| To inland revenue for IRPEF tax deductions |
642 | 788 | (146) |
| Total | 642 | 788 | (146) |
| 31/12/2016 | 31/12/2015 | Change | |
|---|---|---|---|
| To employees | 3,472 | 3,658 | (186) |
| To social security institutions | 1,937 | 1,861 | 76 |
| Advances from customers | 108 | 88 | 20 |
| To agents | 241 | 281 | (40) |
| Other current payables | 31 | 54 | (23) |
| Total | 5,789 | 5,942 | (153) |
At the beginning of 2017, payables due to employees and social security institutions were paid in accordance with the scheduled expiry dates.
| 31/12/2016 | 31/12/2015 | |
|---|---|---|
| Deferred tax assets | 3.315 | 3,285 |
| Deferred tax liabilities | (129) | (150) |
| Net position | 3.186 | 3,135 |
The table below analyses the nature of the temporary differences that determine the recognition of deferred tax liabilities and assets and their movements during the year and the previous year.
| Amortisa tion and leasing |
Provisions and value adjustmen ts |
Fair value of derivativ ${\bf e}$ instrume nts |
Goodwill | Actuarial post- employm ent benefit reserve evaluatio n |
Other temporar y differenc es |
Total | |
|---|---|---|---|---|---|---|---|
| At 31 December 2014 |
353 | 933 | $\mathbf 0$ | 1,993 | 203 | 94 | 3,576 |
| To the income statement |
(140) | (19) | (222) | (25) | (27) | (433) | |
| To shareholders' equity |
(8) | (8) | |||||
| At 31 December 2015 |
353 | 793 | (19) | 1,771 | 170 | 67 | 3,135 |
| To the income statement |
40 | (23) | 76 | (50) | 43 | ||
| To shareholders' equity |
- | - | 8 | 8 | |||
| At 31 December 2016 |
393 | 770 | 57 | 1,771 | 178 | 17 | 3,186 |
Deferred tax assets relating to goodwill refer to the exemption of the value of the investment in Faringosi Hinges s.r.l. made in 2011 pursuant to Italian law Decree 98/2011. The future tax benefit can be made in ten annual portions starting in 2018.
As required by the CONSOB memorandum of 28 July 2006, we disclose that the Company's net financial position is as follows:
| 31/12/2016 | 31/12/2015 | Change | ||
|---|---|---|---|---|
| A. | Cash (Note 11) | 4 | 6 | (2) |
| B. | Positive balances of unrestricted bank accounts (Note 11) |
1,793 | 1,084 | 709 |
| C. | Other cash equivalents | 0 | 0 | 0 |
| D. | Liquidity (A+B+C) | 1,797 | 1,090 | 707 |
| E. | Current bank payables (Note 14) | 7,399 | 19,055 | (11,656) |
| F. | Current portion of non-current debt (Note 14) |
6,656 | 2,707 | 3,949 |
| G. | Other current financial payables (Note 15) | 298 | 14 | 284 |
| H. | Current financial debt (E+F+G) | 14,353 | 21,776 | (7,423) |
| I. | Net current financial position (H-D) | 12,556 | 20,686 | (8,130) |
| J. | Non-current bank payables (Note 14) | 17,281 | 4,632 | 12,649 |
| K. | Other non-current financial payables | 240 | 0 | 240 |
| L. | Non-current financial debt (J+K) | 17,521 | 4,632 | 12,889 |
| M. | Net financial debt (I+L) | 30,077 | 25,318 | 4,759 |
The cash flow statement shows changes in cash and cash equivalents (letter D of this schedule).
In 2016, sales revenue totalled € 101,523,000, down by € 12,439,000 (-10.9%) compared with 2015.
| 2016 | % | 2015 | % | % change | |
|---|---|---|---|---|---|
| Italy | 31,431 | 30.9% | 38,081 | 33.4% | -17.5% |
| Western Europe | 6,868 | 6.8% | 6,481 | 5.7% | +6.0% |
| Eastern Europe and Turkey | 27,365 | 26.9% | 28,322 | 24.8% | -3.4% |
| Asia and Oceania (excluding Middle East) |
7,064 | 7.0% | 6,347 | 5.6% | +11.3% |
| Central and South America | 10,373 | 10.2% | 11,991 | 10.5% | -13.5% |
| Middle East and Africa | 11,254 | 11.1% | 16,479 | 14.5% | -31.7% |
| North America and Mexico | 7,168 | 7.1% | 6,261 | 5.5% | +14.5% |
| Total | 101,523 | 100% | 113,962 | 100% | -10.9% |
| 2016 | % | 2015 | % | % change | |
|---|---|---|---|---|---|
| Brass valves | 9,002 | 8.9% | 12,673 | 11.1% | -29.0% |
| Light alloy valves | 32,406 | 31.9% | 33,663 | 29.6% | -3.7% |
| Thermostats | 7,690 | 7.6% | 10,513 | 9.2% | -26.9% |
| Total valves and thermostats | 49,098 | 48.4% | 56,849 | 49.9% | -13.6% |
| Standard burners | 21,483 | 21.2% | 22,983 | 20.2% | -6.5% |
| Special burners | 19,438 | 19.1% | 20,773 | 18.2% | -6.4% |
| Total burners | 40,921 | 40.3% | 43,756 | 38.4% | -6.5% |
| Accessories and other revenues | 11,504 | 11.3% | 13,357 | 11.7% | -13.9% |
| Total | 101,523 | 100.0% | 113,962 | 100% | -10.9% |
The 2016 sales performance was negatively affected by the crisis of the Middle East and African markets (mainly Egypt), which recorded a downturn in direct sales of more than € 5 million. The crisis in these markets also affected the sales realised in Italy, since our Italian customers are strong exporters to the Middle East. The positive trend of the other international markets, most notably the steady growth in North America, only partially offset the decline in sales in the Middle East, Africa and Italy.
The analysis by product family shows a sharp decline in more mature products (brass valves and thermostats), mainly intended for markets in crisis. Average sales prices in 2016 were around 1.3% lower compared with 2015.
| 2016 | 2015 | Change | |
|---|---|---|---|
| Sale of trimmings | 958 | 1,403 | (445) |
| Services to subsidiaries | 154 | 280 | (126) |
| Contingent income | 136 | 260 | (124) |
| Rental income | 85 | 116 | (31) |
| Use of provisions for risks and charges | 88 | 158 | (70) |
| Services to parent company | 10 | 10 | - |
| Other income | 848 | 506 | 342 |
| Total | 2,279 | 2,733 | (454) |
Lower income from the sale of trimmings is due to the recovery in the production process of a greater portion of generated trimmings.
Services to subsidiaries and to the parent company refer to administrative, commercial and technical services within the scope of the Group.
Other income includes the charge to customers for sharing the development and industrialisation of new products.
| 2016 | 2015 | Change | ||
|---|---|---|---|---|
| Commodities and outsourced | ||||
| components | 33,692 | 40,279 | (6,587) | |
| Consumables | 3,183 | 3,582 | (399) | |
| Total | 36,875 | 43,861 | (6,986) |
In 2016, the effective purchase prices of the main raw materials (aluminium alloys, steel and brass) were on average lower than in 2015, allowing a saving of 1.1% of sales. Consumption (purchases plus change in inventories) as a percentage of sales was 37.5% in 2016, compared with 38.8% in 2015.
| 2016 | 2015 | Change | |
|---|---|---|---|
| Outsourced processing | 7,587 | 9,202 | (1,615) |
| Property rental | 3,995 | 4,032 | (37) |
| Electricity and natural gas |
3,526 | 3,874 | (348) |
| Maintenance | 2,813 | 2,661 | 152 |
| Advisory services | 1,377 | 1,488 | (111) |
| Transport and export expenses | 1,134 | 1,392 | (258) |
| Directors' fees | 1,061 | 1,049 | 12 |
| Insurance | 562 | 443 | 119 |
| Commissions | 545 | 574 | (29) |
| Travel expenses and allowances | 478 | 674 | (196) |
| Waste disposal | 352 | 364 | (12) |
| Canteen | 282 | 315 | (33) |
| Temporary agency workers | 99 | 145 | (46) |
| Other costs | 2,221 | 2,538 | (317) |
| Total | 26,032 | 28,751 | (2,719) |
The fall in outsourced processing costs was due to the partial insourcing of certain phases of burner production.
The reduction in energy costs results from lower production volumes and, to a lesser extent, from the reduction in the price of electrical energy and gas (on average -3% compared with 2015). Moreover, during the financial year, steps were taken to improve energy efficiency (installation of LED lighting systems, repair of compressed air leaks).
The change in maintenance costs is linked to the normal cyclic nature of maintenance operations; the maintenance policies, aimed at guaranteeing constant efficiency of all the production plants, did not register any changes.
Costs for advisory services related to technical (€ 343,000), sales (€ 374,000) and legal, administrative and general (€ 660,000) services.
Other costs included expenses for the registration of patents, leasing third-party assets, cleaning costs, costs related to the research and development activity and other minor charges.
| 2016 | 2015 | Change | |
|---|---|---|---|
| Salaries and wages | 18,322 | 18,767 | (445) |
| Social Security costs | 5,959 | 6,131 | (172) |
| Temporary agency workers | 845 | 1,182 | (337) |
| Post-employment benefit reserve | 1,256 | 1,888 | (632) |
| and other costs | |||
| Total | 26,382 | 27,968 | (1,586) |
Average of the Company headcount in 2016 totalled 543 employees (424 blue-collars, 110 white-collars and supervisors, 9 managers), compared with 552 in 2015 (428 blue-collars, 115 white-collars and supervisors, 9 managers). The average number of temporary staff, with supply contract, was 26 in 2016 (32 in 2015).
During the financial year, the Company used the temporary lay-off scheme in periods characterised by low production requirements: this allowed savings in personnel costs of € 689,000 (€ 333,000 in 2015).
| 2016 | 2015 | Change | |
|---|---|---|---|
| Losses and write-downs of trade receivables |
171 | 360 | (189) |
| Non-income related taxes and | 181 | 179 | 2 |
| duties | |||
| Contingent liabilities | 56 | 159 | (103) |
| Reserves for risks | 85 | 8 | 77 |
| Other provisions | - | 31 | (31) |
| Other operating expenses | 154 | 84 | 70 |
| Total | 647 | 821 | (174) |
Non-income taxes mainly include IMU, TASI and the tax for the disposal of urban solid waste. Provisions for risks and other provisions relate to sums set aside for the risks described in Note 17.
| 2016 | 2015 | Change | |
|---|---|---|---|
| Write-back of Faringosi Hinges | - | 1,882 | (1,882) |
| Write-down of Sabaf Appliance | |||
| Components | (521) | (574) | 53 |
| Write-down of other equity | |||
| investments | - | (5) | 5 |
| Total | (521) | 1,303 | (1,824) |
The write-down of the equity investment in Sabaf Appliance Components is commented in Note 4, to which reference is made.
| 2016 | 2015 | Change | |
|---|---|---|---|
| Interest paid to banks | 241 | 248 | (7) |
| Banking expenses | 229 | 210 | 19 |
| Other financial expense | 43 | 42 | 1 |
| Total | 513 | 500 | 13 |
During the 2016 financial year, the Company reported net foreign exchange losses of € 48,000 (net loss of € 261,000 in 2015).
| 2016 | 2015 | Change | |
|---|---|---|---|
| Current taxes | 1,314 | 2,126 | (812) |
| Deferred tax assets and liabilities | (43) | 433 | (476) |
| Taxes related to previous financial | (137) | (42) | |
| years | (95) | ||
| Total | 1,134 | 2,517 | (1,383) |
Current taxes include IRES of € 1,034,000 and IRAP of € 280,000 (€ 1,734,000 and € 392,000 respectively in 2015).
Reconciliation between the tax burden booked in the financial statements and the theoretical tax burden calculated according to the statutory tax rates currently in force in Italy is shown in the following table:
| 2016 | 2015 | |
|---|---|---|
| Theoretical income tax | 988 | 2,244 |
| Permanent tax differences | 4 | (496) |
| Taxes related to previous financial years | (131) | (37) |
| Adjustment of the deferred taxation for a change in the IRES rate | ||
| (Note 21) | - | 390 |
| Other differences | 7 | 16 |
| IRES (current and deferred) | 868 | 2,117 |
| IRAP (current and deferred) | 266 | 400 |
| Total | 1,134 | 2,517 |
Theoretical taxes were calculated applying the current corporate income tax (IRES) rate, i.e. 27.50%, to the pre-tax result. IRAP is not taken into account for the purpose of reconciliation because, as it is a tax with a different assessment basis from pre-tax profit, it would generate distorting effects.
No significant tax disputes were pending at 31 December 2016.
On 25 May 2016, shareholders were paid an ordinary dividend of € 0.48 per share (total dividends of € 5,467,000).
The Directors have recommended payment of an unchanged dividend of € 0.48 per share this year. This dividend is subject to approval of shareholders in the annual Shareholders' Meeting and was not included under liabilities in these financial statements.
The dividend proposed is scheduled for payment on 31 May 2017 (ex-date 29 May and record date 30 May).
Within the Sabaf Group, the Company operates exclusively in the gas parts segment for household cooking. The information in the consolidated financial statements is divided between the various segments in which the Group operates.
In accordance with IFRS 7, a breakdown of the financial instruments is shown below, among the categories set forth in IAS 39.
| 31/12/2016 | 31/12/2015 | |
|---|---|---|
| Financial assets | ||
| Income statement fair value | ||
| Derivative cash flow hedges (on currency) | - | 69 |
| Amortised cost | ||
| Cash and cash equivalents | 1,797 | 1,090 |
| Trade receivables and other receivables | 28,505 | 34,069 |
| Non-current loans | 1,897 | 1,837 |
| Current loans | 1,000 | 1,000 |
| Other financial assets | 300 | - |
| Financial liabilities | ||
| Income statement fair value | ||
| Derivative cash flow hedges (on currency) | 201 | - |
| Derivative cash flow hedges (on interest rates) | 37 | 14 |
| Amortised cost | ||
| Loans | 31,336 | 26,394 |
| Other financial liabilities | 300 | - |
| Trade payables | 16,010 | 18,203 |
The Company is exposed to financial risks related to its operations, mainly:
It is part of Sabaf's policies to hedge exposure to changes in prices and in fluctuations in exchange and interest rates via derivative financial instruments. Hedging is done using forward contracts, options or combinations of these instruments. Generally speaking, the maximum duration covered by such hedging does not exceed 18 months. The Company does not enter into speculative transactions. When the derivatives used for hedging purposes meet the necessary requisites, hedge accounting rules are followed.
Trade receivables involve producers of domestic appliances, multinational groups and smaller manufacturers in a few or single markets. The Company assesses the creditworthiness of all its customers at the start of supply and systemically on at least an annual basis. After this assessment, each customer is assigned a credit limit.
A credit insurance policy is in place, which guarantees cover for approximately 50% of trade receivables.
Credit risk relating to customers operating in emerging economies is generally attenuated by the expectation of revenue through letters of credit.
The main exchange rate to which the Company is exposed is the euro/USD in relation to sales made in dollars (mainly in North America) and, to a lesser extent, to some purchases (mainly from Asian manufacturers). Sales in US dollars represented 10.6% of total revenue in 2016, while purchases in dollars represented 2.7% of total revenue. The operations in dollars were partially hedged through forward sales contracts. At 31 December 2016, there were forward sales of dollars, maturing on 31 December 2017, for a total of USD 6 million.
With reference to financial assets and liabilities in US dollars at 31 December 2016, a hypothetical and immediate revaluation of 10% of the euro against the dollar would have led to a loss of € 210,000, without considering the pending forward sale contracts.
At 31 December 2016, gross financial debt of the Company was at a floating rate for approximately 70% and at a fixed rate for approximately 30%; to reach an optimum mix of floating and fixed rates in the structure of the loans, the Company also used derivative financial instruments. At 31 December 2016, three interest rate swap (IRS) contracts totalling € 13 million were in place, mirrored in mortgages with the same residual debt, through which the Company transformed the floating rate of the mortgages into fixed rate. Considering the IRS in place, at the end of 2016, the fixed-rate portion amounted to approximately 70% of the total financial debt. The derivative contracts were not designated as a cash flow hedge and were therefore recognised using the "income statement fair value" method.
With reference to financial assets and liabilities at variable rate at 31 December 2016 and 31 December 2015, a hypothetical increase (decrease) in the interest rate of 100 base points versus the interest rates in effect at the same date – all other variables being equal - would lead to the following effects:
| 31/12/2016 | 31/12/2015 | |
|---|---|---|
| Financial | Financial | |
| expenses | expenses | |
| Increase of 100 base points |
20 | 80 |
| Decrease of 100 base points |
- | (80) |
A significant portion of the purchase costs of the company is represented by brass and aluminium alloys. Sales prices of products are generally renegotiated annually; as a result, the Company is unable to immediately pass on to customers any changes in the prices of commodities during the year. The Company protects itself from the risk of changes in the price of brass and aluminium with supply contracts signed with suppliers for delivery up to twelve months in advance or, alternatively, with derivative financial instruments. In 2016 and 2015, the Company did not use financial derivatives on commodities. To stabilise the rising costs of commodities, Sabaf preferred to execute transactions on the physical market, fixing prices with suppliers for immediate and deferred delivery.
The Group operates with a low debt ratio (net financial debt / shareholders' equity at 31 December 2016 of 32.9%, net financial debt / EBITDA of 2.22) and has unused short-term lines of credit. To minimise the risk of liquidity, the Administration and Finance Department:
Below is an analysis by expiration date of financial payables at 31 December 2016 and 31 December 2015:
| Carrying value |
Contractual financial flows |
Within 3 months |
From 3 months to 1 year |
From 1 to 5 years |
More than 5 years |
|
|---|---|---|---|---|---|---|
| Unsecured loans | 23,937 | 24,388 | 1,709 | 5,129 | 17,550 | - |
| Short-term bank loans | 7,399 | 7,399 | 5,399 | 2,000 | - | - |
| Payables to ARC shareholders |
300 | 300 | - | 60 | 240 | - |
| Total financial payables | 31,636 | 32,087 | 7,108 | 7,189 | 17,790 | 0 |
| Trade payables | 16,010 | 16,010 | 15,373 | 637 | - | - |
| Total | 47,646 | 48,097 | 22,481 | 7,826 | 17,790 | 0 |
| Carrying value |
Contractual financial flows |
Within 3 months |
From 3 months to 1 year |
From 1 to 5 years |
More than 5 years |
|
|---|---|---|---|---|---|---|
| Unsecured loans | 7,339 | 7,506 | 700 | 2,099 | 4,707 | - |
| Short-term bank loans | 19,055 | 19,055 | 17,055 | 2,000 | - | - |
| Total financial payables | 26,394 | 26,561 | 17,755 | 4,099 | 4,707 | 0 |
| Trade payables | 18,203 | 18,203 | 17,232 | 971 | - | - |
| Total | 44,597 | 44,764 | 34,987 | 5,070 | 4,707 | 0 |
The various due dates are based on the period between the end of the reporting period and the contractual expiration date of the commitments, the values indicated in the table correspond to non-discounted cash flows. Cash flows include the shares of principal and interest; for floating rate liabilities, the shares of interest are determined based on the value of the reference parameter at the end of the reporting period increased by the spread set forth in each contract.
The revised IFRS 7 requires that financial instruments reported in the statement of financial position at fair value must be classified based on a hierarchy that reflects the significance of the input used in determining the fair value. IFRS 7 makes a distinction between the following levels:
The following table shows the assets and liabilities valued at fair value at 31 December 2016, by hierarchical level of fair value assessment.
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Other financial liabilities (currency derivatives) | - | 201 | - | 201 |
| Other financial liabilities (derivatives on interest rates) | - | 37 | - | 37 |
| Option on minorities A.R.C. | - | - | 0 | 0 |
| Total liabilities | 0 | 238 | 0 | 238 |
The table below illustrates the impact of all transactions between Sabaf S.p.A. and other related parties on the balance sheet and income statement items and related parties, with the exception of the directors' fees, auditors and key management personnel which is stated in the Report on Remuneration.
Impact of related-party transactions or positions on statement of financial position items
| Total 2016 |
Subsidiarie s |
Parent company |
Other related parties |
Total related parties |
Impact on the total |
|
|---|---|---|---|---|---|---|
| Non-current financial assets | 2,137 | 1,897 | - | - | 1,897 | 88.77% |
| Trade receivables | 27,465 | 1,192 | - | - | 1,192 | 4.34% |
| Tax receivables | 2,477 | - | 1,084 | - | 1,084 | 43.76% |
| Current financial assets | 1,060 | 1,000 | - | - | 1,000 | 94.34% |
| Trade payables | 16,010 | 104 | - | 2 | 106 | 0.66% |
| Other | Total |
| Total 2015 |
Subsidiarie s |
Parent company |
related parties |
related parties |
Impact on the total |
|---|---|---|---|---|---|
| 1,837 | 1,837 | - | - | 1,837 | 100% |
| 32,871 | 2,008 | - | - | 2,008 | 6.11% |
| 1,749 | - | 1,114 | - | 1,114 | 63.69% |
| 1,069 | 1,000 | - | - | 1,000 | 93.55% |
| 18,203 | 853 | - | - | 853 | 4.69% |
| Total 2016 |
Subsidiaries | Parent company |
Other related parties |
Total related parties |
Impact on the total |
|
|---|---|---|---|---|---|---|
| Revenue | 101,523 | 6,680 | - | - | 6,680 | 6.58% |
| Other income | 2,279 | 399 | 10 | - | 409 | 17.95% |
| Materials | 36,895 | 916 | - | - | 916 | 2.48% |
| Services | 26,032 | 4,129 | - | 22 | 4,151 | 15.95% |
| Capital gains on non-current assets | 87 | 66 | - | - | 66 | 75.86% |
| Write-downs of non-current assets | 521 | 521 | - | - | 521 | 100% |
| Financial income | 85 | 82 | - | - | 82 | 96.47% |
| Total 2015 |
Subsidiaries | Parent company |
Other related parties |
Total related parties |
Impact on the total |
|
|---|---|---|---|---|---|---|
| Revenue | 113,962 | 7,275 | - | - | 7,275 | 6.38% |
| Other income | 2,733 | 400 | 10 | - | 410 | 15.00% |
| Materials | 43,861 | 727 | - | - | 727 | 1.66% |
| Services | 28,751 | 4,162 | - | 34 | 4,196 | 14.59% |
| Capital gains on non-current assets | 158 | 100 | - | - | 100 | 63.29% |
| Write-downs of non-current assets | 1,303 | 1,303 | - | - | 1,303 | 100% |
| Financial income | 73 | 73 | - | - | 73 | 100% |
Relations with subsidiaries mainly consist of:
Relations with the parent company Giuseppe Saleri S.a.p.A., which does not exercise management or coordination activities pursuant to Article 2497 of the Italian Civil Code, consist of provision of administrative services.
Related-party transactions are regulated by specific contracts regulated at arm's length conditions.
Pursuant to CONSOB memorandum of 28 July 2006, no events or significant non-recurring transactions occurred during 2016.
Pursuant to CONSOB memorandum of 28 July 2006, the Company declares that no atypical and/or unusual transactions as defined by the CONSOB memorandum were executed during 2016.
Sabaf S.p.A. also issued sureties to guarantee mortgage loans granted by banks to employees for a total of € 5,510,000 (€ 6,010,000 at 31 December 2015).
Fees to directors, statutory auditors and executives with strategic responsibilities are described in the Report on Remuneration that will be presented to the shareholders' meeting called to approve these separate financial statements.
At 31 December 2016, there were no equity-based incentive plans for the Company's directors and employees.
| Co mp an y na me |
d o f f Re ist ice g ere s |
S ha ita l a 3 1 t re ca p be De 2 0 1 6 ce m r |
S ha ho l de re rs |
ip % h ow ne rs |
S ha ho l de ' e ity re rs q u De be at 3 1 2 0 1 6 ce m r |
f it ( los ) 2 0 1 6 p ro s |
|---|---|---|---|---|---|---|
| Fa ing i- H ing S.r l. r os es |
Os ita let ( B S ) to p |
E U R 9 0, 0 0 0 |
Sa ba f S.p A. |
% 1 0 0 |
€ 5 5 4 6, 1 0 5 , |
€ 6 2 9, 0 4 6 |
| Sa ba f Im b i l iar l. mo e s .r. |
Os ita let ( B S ) to p |
€ 25 0 0 0 , |
Sa ba f S.p A. |
1 0 0 % |
€ 2 3, 4 0 9, 3 3 0 |
€ 1, 17 4 8 1 5 , |
| Sa ba f do Br i l Lt da as |
Ju d ia ì ( Br i l ) n az |
B R L 2 4, 0 0 0, 0 0 0 |
Sa ba f S.p A. |
1 0 0 % |
B R L 3 6, 45 8, 3 4 5 |
B R L 5 6 4 9, 6 8 7 , |
| Sa ba f U S Co rp |
P la in f ie l d ( U S A ) |
U S D 1 0 0, 0 0 0 |
Sa ba f S.p A. |
1 0 0 % |
U S D -2 6, 3 8 7 |
U S D -8, 5 6 4 |
| Sa ba f Ap l ian Co ts p ce mp on en ( ha ) Co d. Ku Lt ns n ., |
ha ( C h ina ) Ku ns n |
€ 4, 4 0 0, 0 0 0 |
Sa ba f S.p A. |
% 1 0 0 |
C N Y 5, 3 3 5, 6 9 5 |
C N Y 4, 0 15 6 4 4 , |
| Sa ba f Be Es Pa lar i y az y a rca Sa i ica im ite d Ve T L ret na y S k irt i e |
isa ( ke ) Ma Tu n r y |
T R Y 2 8, 0 0 0, 0 0 0 |
Sa ba f S.p A. |
% 1 0 0 |
T R Y 5 2, 6 4 1, 4 9 1 |
T R Y 1 0, 9 7 7, 2 9 4 |
| Sa ba f Ap l ian Co ts p ce mp on en d ing ( ha ) Co d. in Tr Ku Lt a ns n ., l iq i da ion t u |
ha ( C h ina ) Ku ns n |
€ 2 0 0, 0 0 0 |
Sa ba f S.p A. |
% 1 0 0 |
C N Y 1, 9 5 0, 3 27 |
C N Y 1 3 6, 9 6 3 |
| A. R. C. l. s.r |
Ca da ( P D ) mp o rse g o |
€ 45 0 0 0 , |
Sa ba f S.p A. |
% 7 0 |
€ 4, 3 2 1, 47 1 |
€ 6 6 7, 1 6 7 |
None
1 Values taken from the separate financial statements of subsidiaries, prepared in accordance with locally applicable accounting standards
| Description | Amount | Possibility of utilisation |
Available share |
Amount subject to taxation for the company in the case of distribution |
|---|---|---|---|---|
| Capital reserve: | ||||
| Share premium reserve | 10,002 | A, B, C | 10,002 | 0 |
| Revaluation reserve, Law 413/91 | 42 | A, B, C | 42 | 42 |
| Revaluation reserve, Law 342/00 | 1,592 | A, B, C | 1,592 | 1,592 |
| Retained earnings: | ||||
| Legal reserve | 2,307 | B | 0 | 0 |
| Other retained earnings | 65,769 | A, B, C | 65,425 | 0 |
| Valuation reserve: | ||||
| Post-employment benefit actuarial reserve |
(532) | 0 | 0 | |
| Total | 79,180 | 77,061 | 1,634 |
A. for share capital increase
B. to hedge losses
C. for distribution to shareholders
| Gross value | Cumulative depreciation |
Net value | ||
|---|---|---|---|---|
| Law 72/1983 | 137 | (137) | 0 | |
| Investment property | 1989 merger | 516 | (433) | 83 |
| Law 413/1991 | 47 | (41) | 6 | |
| 1994 merger | 1,483 | (1,001) | 482 | |
| Law 342/2000 | 2,870 | (2,282) | 588 | |
| 5,053 | (3,894) | 1,159 | ||
| Law 576/75 | 205 | (205) | 0 | |
| Plants and | Law 72/1983 | 2,224 | (2,224) | 0 |
| machinery | 1989 merger | 6,140 | (6,140) | 0 |
| 1994 merger | 6,820 | (6,820) | 0 | |
| 15,389 | (15,389) | 0 | ||
| Industrial and | ||||
| commercial | ||||
| equipment | Law 72/1983 | 161 | (161) | 0 |
| Other assets | Law 72/1983 | 50 | (50) | 0 |
| TOTAL | 20,653 | (19,494) | 1,159 | |
Sabaf S.p.A. is a company organised under the legal system of the Republic of Italy.
Registered and administrative office: Via dei Carpini, 1 25035 Ospitaletto (Brescia)
| Contacts: | Tel: Fax: Email: Website: |
+39 030 - 6843001 +39 030 – 6848249 [email protected] http://www.sabaf.it |
||
|---|---|---|---|---|
| Tax information: | Tax Code | R.E.A. Brescia VAT Number |
347512 03244470179 01786911082 |
The following table, prepared pursuant to Article 149-duodecies of the CONSOB Issuers' Regulation, shows fees relating to 2016 for auditing services and for services other than auditing provided by the Independent Auditor. No services were provided by entities belonging to the network.
| (€/000) | Party providing the service |
Fees pertaining to the 2016 financial year |
|
|---|---|---|---|
| Audit | Deloitte & Touche S.p.A. | 57 | |
| Certification services | Deloitte & Touche S.p.A. | 2(1) | |
| Other services | Deloitte & Touche S.p.A. | 14(2) | |
| Total | 73 |
(1) signing of Unified Tax Return, IRAP and 770 forms
(2) audit agreed upon procedures relating to interim management reports, auditing of statements and training activities
Alberto Bartoli, the Chief Executive Officer, and Gianluca Beschi, the Financial Reporting Officer of Sabaf S.p.A., have taken into account the requirements of Article 154-bis, paragraphs 3 and 4, of Legislative Decree 58 of 24 February 1998 and can certify
of the administrative and accounting procedures for the formation of the separate financial statements during the 2016 financial year.
They also certify that:
Ospitaletto, 20 March 2017
Chief Executive Officer Alberto Bartoli
The Financial Reporting Officer Gianluca Beschi
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