Interim / Quarterly Report • Nov 10, 2016
Interim / Quarterly Report
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Registered Office: Lugar do Espido, Via Norte, Maia, Portugal Registered at the Commercial Registry of Maia Registry and Tax Identification No. 506 035 034 Share Capital: € 812 107 574.17 Publicly Traded Company
CONTENTS
ACTIVITY REPORT
CONSOLIDATED FINANCIAL STATEMENTS
Our 3Q16 results represent the first full quarter performance under the new Sonae Indústria perimeter, after the conclusion of the partnership with Arauco.
I am pleased to be able to report that our 3Q16 results show a continued improvement with all three main business units performing better compared to last year. This positive evolution was mainly driven by improved results in North America and by the contribution from Sonae Arauco that has had another strong quarter. Our consolidated results in the quarter show strong YoY improvement with recurrent EBITDA up nearly 30% and a margin increase of 3.8pp to 20.9%.
Considering our 50% share of Sonae Arauco's figures, at the end of September 2016, the proportional last twelve months Recurrent EBITDA stood at 89 million Euros, representing a 13.7% margin. Proportional net debt reduced to 325 million Euros, implying a leverage ratio of 3.6x. These all show improvements on our corresponding 2Q16 numbers.
During the quarter, Tafisa Canada launched its new embossed and in-register Viva collection at the International Woodworking Fair in Atlanta with 10 colors and with two sided finishings on two panel sizes, a unique offering in the market. The collection was well received and we are encouraged by the response from the market.
Paulo Azevedo
Chairman Sonae Indústria
Due to the fact that one of Sonae Indústria's main assets (its 50% shareholding in Sonae Arauco) is accounted by the Equity method since 1 June 2016, we are presenting Proportional Turnover, Proportional Recurrent EBITDA, Proportional Recurrent EBITDA margin, Proportional Leverage and Loan to Value indicators, given their greater relevance for the purpose of valuation and leverage analysis of Sonae Indústria today (see "Glossary of Terms" for definitions). Financial Indicators for 1H15 and 9M15 are not presented since comparable figures for the Balance Sheet and LTM indicators are not available for those periods.
| FINANCIAL INDICATORS | 1H16 | 9M16 |
|---|---|---|
| Proportional Turnover | 332 | 490 |
| Proportional Rec. EBITDA | 49 | 74 |
| Proportional Rec. EBITDA margin | 14.7% | 15.0% |
| Proportional LTM Turnover | 647 | 649 |
| Proportional LTM Rec. EBITDA | 83 | 89 |
| Proportional LTM Rec. EBITDA margin | 12.8% | 13.7% |
| LEVERAGE | ||
| Proportional Net Debt | 339 | 325 |
| Proportional Leverage (Net Debt / LTM Rec. EBITDA) | 4.1 x | 3.6 x |
| LOAN TO VALUE | ||
| Net Debt of Sonae Indústria | 222 | 217 |
| Asset Value | 472 | 524 |
| LTV (Net Debt of Sonae Indústria / Asset Value) | 47% | 41% |
During 3Q16, Sonae Indústria continued to achieve further deleveraging resulting from the higher level of Recurrent EBITDA on the one hand and cash flow generation on the other. At the end of September 2016, Net Debt to LTM Recurrent EBITDA (proportional) stood at 3.6x, which represents a reduction of 0.5x vs. June 2016. Also as a demonstration of the improved capital structure, Loan to Value reduced to 41% at the end of September 2016 (an improvement of 6 p.p. vs. June 2016).
SUMMARY OF 2016 NINE MONTHS RESULTS (See Explanatory Notes at the end of the document):
Consolidated turnover for the first nine months of the year reached circa 183 million Euros, up by 4% (or by 7 million Euros) when compared to the same period of 2015, on a comparable basis. This improvement is explained by the continued improvement in the results of our Canadian operation y.o.y., which is expected to benefit from the recent strategic investment in a fifth melamine surfacing line that will support a better product mix with a higher share of melamine faced products. The average selling prices also contributed to this positive performance, as they kept the positive trend vs. last year. As in 1H16, our Laminates plant in Portugal showed improvements in terms of sales volumes, which grew by circa 49% y.o.y.
Notwithstanding the positive performance when compared to last year results, the depreciation of the Canadian dollar vs. the EUR during 9M16 continues to negatively impact consolidated turnover. On a like for like basis, using exchange rates of 2015, consolidated turnover would have been circa 8.3 million Euros higher, representing an increase of 8.2%.
Proportional Turnoverstood at 490 million Euros during 9M16, which compares with 484 million Euros in the same period of last year, representing an improvement of 1.3%. This result was mostly driven by better performance of Sonae Indústria consolidated operations, as Sonae Arauco turnover was kept relatively stable y.o.y..
Total fixed costs for the first nine months of the year, on a like for like basis, were kept relatively stable when compared to the same period in 2015 representing circa 16% of Turnover.
Total headcount for Sonae Indústria, at the end of September 2016 and considering fully owned businesses, was of 480 FTEs.
The Recurrent EBITDA for the first nine months of 2016 reached circa 32 million Euros, an increase of 7.1 million Euros (or up by 29%) when compared to same period of last year, with an implicit Recurrent EBITDA margin of 17.4% (+3.4 p.p. vs. 9M15), on a comparable basis. During 3Q16, Sonae Indústria booked a Recurrent EBITDA of 13 million Euros, circa 1.5 million Euros above last quarter and circa 2.9 million Euros above the same period of last year, with an underlying Recurrent EBITDA margin of 20.9%, an improvement of 2.7 p.p. vs. last quarter and of 3.8 p.p. vs. 3Q15, on a comparable basis. This positive performance has translated into
a LTM Recurrent EBITDA of approximately 37 million Euros, at the end of September 2016. The LTM Proportional Recurrent EBITDA (i.e., including 50% of Sonae Arauco Recurrent EBITDA) was 89 million euros, 6 million Euros higher than June 2016 value.
| CONSOLIDATED INCOME STATEMENT Million euros |
||||||||
|---|---|---|---|---|---|---|---|---|
| 9M15 Restated |
9M16 | 9M16 / 9M15(R) |
3Q15 Restated |
2Q16 | 3Q16 | 3Q16 / 3Q15(R) |
3Q16 / 2Q16 |
|
| Turnover | 175.5 | 182.6 | 4.0% | 58.7 | 63.1 | 62.1 | 5.8% | (1.7%) |
| Other operational income | 4.2 | 4.6 | 8.4% | 1.7 | 2.2 | 1.0 | (37.6%) | (53.4%) |
| EBITDA | 23.8 | 31.9 | 33.7% | 9.7 | 12.1 | 12.7 | 31.5% | 5.0% |
| Non recurrent items | (0.9) | 0.0 | - | (0.4) | 0.5 | (0.3) | 24.5% | - |
| Recurrent EBITDA | 24.7 | 31.8 | 28.8% | 10.1 | 11.5 | 13.0 | 29.2% | 12.6% |
| Recurrent EBITDA Margin % | 14.1% | 17.4% | 3.4 pp | 17.1% | 18.3% | 20.9% | 3.8 pp | 2.7 pp |
| Proportional Recurrent EBITDA | 52.7 | 73.6 | 39.6% | 18.5 | 29.1 | 24.9 | 34.4% | (14.6%) |
| Proportional Recurrent EBITDA Margin % | 10.9% | 15.0% | 4.1 pp | 11.8% | 17.0% | 15.7% | 3.9 pp | -1.4 pp |
| Depreciation and amortisation | (10.3) | (8.9) | 13.9% | (3.3) | (3.0) | (3.0) | 8.9% | (0.5%) |
| Provisions and impairment Losses | (0.1) | 0.4 | - | 0.0 | 0.1 | 0.1 | - | - |
| Operational profit (EBIT) | 13.4 | 23.3 | 74.4% | 6.3 | 9.1 | 9.8 | 54.7% | 6.9% |
| Net financial charges | (1.0) | (13.3) | - | (1.1) | (7.0) | (3.5) | - | 49.3% |
| o.w. Net interest charges | 1.1 | (10.6) | - | (0.3) | (5.9) | (2.5) | - | 58.0% |
| o.w. Net exchange differences | (0.3) | (0.1) | - | (0.1) | 0.0 | (0.2) | - | - |
| o.w. Net financial discounts | (1.2) | (1.3) | (11.9%) | (0.4) | (0.5) | (0.5) | (19.7%) | (0.2%) |
| Gains and losses in Joint-Ventures | 0.0 | 6.3 | - | 0.0 | 3.2 | 3.1 | - | (4.1%) |
| Profit before taxes (EBT) | 12.3 | 16.3 | 32.1% | 5.2 | 5.4 | 9.3 | 78.2% | 73.3% |
| Taxes | (3.8) | (6.8) | (78.4%) | (1.5) | (3.2) | (3.1) | - | 3.3% |
| o.w. Current tax | (4.1) | (7.5) | - | (2.2) | (3.5) | (3.1) | (40.1%) | 10.2% |
| o.w. Deferred tax | 0.3 | 0.7 | - | 0.7 | 0.3 | 0.0 | - | - |
| Profit/(loss) from continued operations | 8.5 | 9.5 | 11.4% | 3.7 | 2.1 | 6.2 | 66.6% | - |
| Profit/(loss) from discontinued operations | (36.7) | (30.7) | 16.3% | (12.2) | (32.8) | 0.0 | - | - |
| Consolidated net profit/(loss) for the period | (28.2) | (21.3) | 24.7% | (8.5) | (30.7) | 6.2 | - | - |
| Losses (income) attrib. to non-contro. interests | (0.0) | 0.0 | - | (0.0) | 0.0 | 0.0 | - | - |
| Net profit/(loss) attrib. to Equity Holders | (28.2) | (21.3) | 24.6% | (8.5) | (30.7) | 6.2 | - | - |
Consolidated EBITDA reached circa 32 million Euros, 8 million Euros higher than 9M15, on a comparable basis. In line with 1H16 results, the group's consolidated performance was marginally but positively impacted by non-recurrent items related with inactive sites during the first nine months of the year, explained the sale of Coleraine land (UK) in April 2016, which generated a gain of circa 0.8 million Euros, more than offsetting the on-going costs of inactive sites.
Proportional Recurrent EBITDA was 74 million Euros during 9M16, which represents an improvement of 40%, when compared to the same period of last year, on a comparable basis. For the quarter, the Proportional Recurrent EBITDA stood at 25 million Euros, a decrease of 15% vs. 2Q16, which is explained by the seasonal maintenance shutdowns that take place during the summer period at the Sonae Arauco Northern hemisphere plants. When compared to 3Q15, the Proportional Recurrent EBITDA improved by 34%, on a comparable basis.
Depreciation and amortization charges during 9M16 were reduced by 1.4 million Euros vs. same period of last year, which is mainly explained by the reduction in depreciation charges in our North American operation. On a quarterly basis, this item totalled 3 million Euros in the 3Q16, in line with the values booked for 2Q16 and 3Q15.
Provisions and impairment losses for the first nine months of 2016 totalled a net positive amount of circa 0.4 million Euros(positively impacting the consolidated results such as in the 1H16), corresponding to the release of provisions related to the legacy restructuring process in France.
Net financial charges during 9M16 were 13.3 million Euros, a significant increase when compared to the same period of last year on a comparable basis, explained by: (i) the recognition in 2Q16 of previously deferred upfront financing costs of 1.9 million Euros due to early repayment of loans as part of the refinancing process related to the execution of the Sonae Arauco partnership and, particularly, by: (ii) a 11.6 million Euros reduction vs. 9M15 in net interest income on loans to and from what were previously intra group companies, due to the fact that those loans (mostly loans from Sonae Indústria to Sonae Arauco companies) were fully repaid until May 2016. In the quarter and when compared with the previous year the referred reduction in net interest income on loans to and from related parties represents 4.3 million Euros which more than explains why Net Financial Charges increased by 2.4 million Euros when compared with 3Q15. When compared to the previous quarter, which included the one off recognition of deferred costs of 1.9 million Euros mentioned above, net financial charges improved by 3.4 million Euros, benefiting from lower net interest charges.
Gains and losses in Joint-Ventures, at the end of September 2016, amounted to circa 6.3 million Euros, corresponding to 50% of the consolidated net profit of Sonae Arauco since 1 June 2016.
Current tax charges booked for the first nine months of 2016 were circa 7.5 million Euros, an increase of 3.4 million Euros when compared to same period in 2015, on a comparable basis. The explanations for this is aligned with was explained in 1H16: (i) higher tax charges in Canada; and (ii) lower tax consolidation benefit in 2016 due to the deconsolidation of Sonae Arauco entities from the Portuguese tax consolidation perimeter during 9M16. On a quarterly basis, in 3Q16 an amount of 3.1 million Euros was booked, slightly below the value registered for 2Q16.
The combination of the above factors led to a consolidated positive Net Result for Continued Operations of 9.5 million Euros during the first nine months of the year, an improvement of 11% when compared to same period in 2015, on a comparable basis. For the quarter, the net profit of Continued operations increased by approximately 2.5 and 4 million Euros vs. 3Q15 and vs. 2Q16, respectively.
At the end of September 2016, the results of Discontinued Operations showed a Net loss of 31 million Euros, which is similar to the figure reported in 1H16 and explained by a positive net profit contribution of 5.9 million Euros from Sonae Arauco and by the accounting charge of 36.6 million euros registered in 1H16 resulting from the need to reclassify cumulative Translation Reserves related to Sonae Arauco companies from 'Other Comprehensive Income' to 'Other Reserves & Accumulated Earnings' due to partnership with Arauco and in accordance with IAS 21. This led to a Net Loss of 21.3 million Euros for the first nine months of the year, which represents an improvement of 25% vs. 9M15, on a comparable basis.
| Million euros | |||
|---|---|---|---|
| 2015 | 1H16 | 9M16 | |
| Non current assets | 757.8 | 313.7 | 313.4 |
| Tangible assets | 628.8 | 152.0 | 147.5 |
| Goodwill | 80.9 | 0.3 | 0.3 |
| Deferred tax asset | 28.4 | 2.2 | 2.2 |
| Other non current assets | 19.8 | 159.1 | 163.3 |
| Current assets | 243.2 | 51.7 | 48.4 |
| Inventories | 98.0 | 17.6 | 17.9 |
| Trade debtors | 85.1 | 20.4 | 20.1 |
| Cash and cash equivalents | 28.9 | 6.6 | 3.9 |
| Other current assets | 31.2 | 7.0 | 6.4 |
| Non-current assets classified as available for sale | 1.5 | 1.5 | 1.5 |
| Total assets | 1,002.6 | 366.9 | 363.3 |
| Shareholders' Funds | 57.7 | 68.7 | 74.8 |
| Equity Holders | 57.8 | 68.7 | 74.8 |
| Non-controlling interests | (0.1) | 0.0 | 0.0 |
| Liabilities | 944.9 | 298.1 | 288.6 |
| Interest bearing debt | 599.1 | 228.5 | 221.3 |
| Non current | 71.5 | 224.0 | 218.4 |
| Current | 527.6 | 4.5 | 2.9 |
| Trade creditors | 138.6 | 29.8 | 26.2 |
| Other liabilities | 207.2 | 39.7 | 41.0 |
| Liabilities directly associated with non-current assets classified | |||
| as available for sale | 0.0 | 0.0 | 0.0 |
| Total Shareholders'Funds and liabilities | 1,002.6 | 366.9 | 363.3 |
| Net debt | 570.1 | 222.0 | 217.4 |
| Working Capital | 44.5 | 8.2 | 11.9 |
It should be noted that the Balance sheet as at 31 December 2015 includes all the companies in the consolidation perimeter of Sonae Indústria including those of Sonae Arauco, and therefore is not comparable to that shown as at 30 June 2016 and as at 30 September 2016.
Included in Tangible Assets under Other Non-current assets, is the investment in Joint-Ventures (50% of Sonae Arauco) in an amount of 156.1 million Euros stated at provisional accounting value at the end of September 2016 (including 50% of the net results of Sonae Arauco between June and September) and will be subject to correction in the year end 2016 accounts once a 'Fair Value' has been determined. When compared to 1H16, the value of the investment in Sonae Arauco increased by 4.4 million Euros mainly due to the contribution of Sonae Arauco Net Results.
Consolidated Working Capital reached circa 12 million Euros, an increase of 3.6 million Euros when compared to June 2016, which is explained by the reduction in trade creditors of our Canadian operation.
Net Debt stood at circa 217 million Euros at the end of September 2016, a decrease of 4.6 million Euros vs. June 2016 level.
Total Shareholder's Funds continued to improve, reaching circa 75 million Euros at the end of September 2016, 6 million Euros above June 2016 value. When compared to December 2015, total shareholder's funds increased by 17.1 million Euros.
Note: 2015 numbers exclude investments in French plants sold in 2015 (for comparability purposes); 2016 numbers exclude transfer of Real Estate from Sonae Arauco to Sonae Indústria perimeter in 2016 (within the corporate restructuring required for Sonae Arauco partnership).
Additions to Gross Tangible Assets reached 4.9 million Euros during 9M16, which compares with 3.2 million Euros during the same period in 2015, on a comparable basis. During this period, the majority of the investments were executed in our North American plant, being circa 2.7million Euros related with the strategic investment in a 5th melamine surfacing line, already concluded.
At Sonae Indústria, we will seek ways in which to grow our businesses. For Tafisa Canada, we will continue to seek to strengthen our product mix on the back of the new Embossed In Register Viva collection looking to consolidate our position in the Canadian market and to achieve a greater penetration of the US market for our MFC products. We will also seek growth opportunities for our Laminates & Components business with existing and new customers and to improve levels of profitability.
At Sonae Arauco we are fully committed to the development of the business. In this respect the company will make investments that look to achieve greater operational efficiency and productivity including the upgrade and modernization of the few remaining plants with daylight presses.
10 November 2016
The Board of Directors
Paulo Azevedo
Carlos Moreira da Silva
Albrecht Ehlers
Christopher Lawrie
Javier Vega
Louis Brassard
José Romão de Sousa
The completion of the 50/50 partnership with Arauco has led to a number of material accounting changes in Sonae Indústria's consolidated financial statements as summarized below.
The Consolidated Income Statement (P&L) for 2016 shows all the companies included in the consolidation perimeter of Sonae Arauco also classified as Discontinued Operations until May 2016 and accounted by the Equity Method as of the 1 June 2016.
The P&L for 2015 was restated to show as Discontinued Operations the results of all the companies included in the consolidation perimeter of Sonae Arauco. It should be noted that this is in addition to the results of the French industrial units Ussel (sold in March 2015) and Linxe (sold in July 2015), Pontecaldelas plant, in Spain, and Betanzos, in Spain (sold in April 2015) that had already been considered as Discontinued Operations in 2015.
The balance sheet as at 31 December 2015 has not been restated. As from June 2016, the balance sheet represents the position of Sonae Indústria under the new perimeter with the 50% shareholding in Sonae Arauco equity accounted.
The investment in Sonae Arauco (now equity accounted) has been booked provisionally at 147.3 million euros as at 31 May 2016, the completion date for the setting up of the partnership with Arauco. This is a provisional accounting value of Sonae Arauco resulting from its deconsolidation from Sonae Indústria's consolidated accounts. Within the framework of IAS 28 and IFRS 11, this is a provisional accounting value and will be subject to correction in the year end 2016 financial statements once a 'Fair Value' has been established for Sonae Arauco. This correction will necessarily have an effect on year end 2016 financial statements which, at this stage, is not possible to determine. Due to the positive results of Sonae Arauco since June, the investment in Sonae Arauco as at 30 September 2016 stood at 156.1 million euros.
Additionally due to the setting up of the 50/50 partnership with Arauco and in accordance with IAS 21, the composition of Shareholders' Funds has been reclassified with the 'Translation Reserves' (cumulative exchange rate impacts on equity) related to Sonae Arauco companies having been moved from 'Other Comprehensive Income' to 'Other Reserves & Accumulated earnings'. Although this change is neutral on Shareholders' Funds, it has led to a corresponding accounting charge in the P&L for the amount of the reclassification (36.6 million Euros).
| Asset Value | Asset Value is calculated as follows: [6.8 x LTM Recurrent EBITDA of fully consolidated business (100%)] + [market value of real estate properties owned 100% by Sonae Indústria, according to external valuations] + [50% x (6.8 x LTM Recurrent EBITDA of Sonae Arauco – Sonae Arauco Net Debt)] |
|---|---|
| CAPEX | Investment in Tangible Fixed Assets |
| EBITDA | Earnings Before Interests and Taxes + Depreciations and Amortizations + (Provisions and impairment losses - Impairment losses in trade receivables + Reversion of impairment losses in trade receivables) |
| FTEs | Full Time Equivalent; the equivalent of one person working full time, according to the working schedule of each country where Sonae Indústria has operations |
| Fixed Costs | Overheads + Personnel costs (internal and external); management accounts concept |
| Gross Debt | Bank loans + Debentures + Obligations under finance leases + other loans + Loans from related parties |
| Headcount | Total number of internal FTEs, excluding trainees |
| Loan to Value | Net Debt of Sonae Indústria / Asset value |
| LTM | Last Twelve Months |
| Net Debt | Gross Debt - Cash and cash equivalents |
| Proportional Leverage | Proportional Net Debt / Proportional LTM Recurrent EBITDA |
| Proportional LTM Turnover | LTM Turnover of the businesses fully consolidated (100%) by Sonae Indústria + 50% of the LTM Turnover of Sonae Arauco |
| Proportional LTM Rec. EBITDA |
LTM Recurrent EBITDA of Sonae Indústria + 50% of LTM Recurrent EBITDA of Sonae Arauco |
| Proportional Recurrent EBITDA |
Recurrent EBITDA of the businesses fully consolidated (100%) by Sonae Indústria + 50% of the Recurrent EBITDA of Sonae Arauco |
| Proportional Recurrent EBITDA margin |
Proportional Recurrent EBITDA / Proportional Turnover |
| Proportional Net Debt | Net Debt of Sonae Indústria + 50% of Net Debt of Sonae Arauco |
| Recurrent EBITDA | Recurrent EBITDA of the businesses fully consolidated (100%) by Sonae Indústria, excluding non-recurrent operational income / costs |
| Recurrent EBITDA margin | Recurrent EBITDA / Turnover |
| Working Capital | Inventories + Trade Debtors – Trade Creditors |
(Amounts expressed in Euros)
| ASSETS | Notes | 30.09.2016 | 31.12.2015 |
|---|---|---|---|
| Unaudited | |||
| NON CURRENT ASSETS: | |||
| Tangible fixed assets | 8 | 147 472 134 | 628 779 728 |
| Goodwill | 347 081 | 80 884 032 | |
| Intangible assets Investment properties |
315 634 6 314 672 |
4 203 028 6 450 977 |
|
| Investment in associates | 7 | 1 493 139 | |
| Investment in joint ventures | 4, 5, 7 | 156 141 183 | 5 695 259 |
| Investment available for sale | 7 | 129 870 | 1 155 713 |
| Deferred tax asset | 9 | 2 188 748 | 28 358 134 |
| Other non current assets | 442 608 | 804 270 | |
| Total non current assets | 313 351 930 | 757 824 280 | |
| CURRENT ASSETS: | |||
| Inventories | 17 936 636 | 98 007 573 | |
| Trade debtors | 20 148 026 | 85 053 009 | |
| Other current debtors | 271 761 | 13 202 016 | |
| Current tax asset | 1 613 794 | 2 799 769 | |
| Other taxes and contributions | 2 019 270 | 4 811 295 | |
| Other current assets | 2 534 050 | 10 406 656 | |
| Cash and cash equivalents | 10, 12 | 3 904 877 | 28 924 470 |
| Total current assets | 48 428 414 | 243 204 788 | |
| Non-current assets held for sale | 1 535 588 | 1 535 588 | |
| TOTAL ASSETS | 363 315 932 | 1 002 564 656 | |
| SHAREHOLDERS`FUNDS, NON-CONTROLLING INTERESTS AND LIABILITIES | |||
| SHAREHOLDERS`FUNDS: | |||
| Share capital | 812 107 574 | 812 107 574 | |
| Legal reserve | 3 131 757 | 3 131 757 | |
| Other reserves and accumulated earnings | - 791 855 121 | - 801 248 687 | |
| Accumulated other comprehensive income | 11 | 51 373 802 | 43 785 859 |
| Total shareholders' funds attributabble to equity holders of Sonae Indústria | 74 758 012 | 57 776 503 | |
| Non-controlling interests | - 106 611 | ||
| TOTAL SHAREHOLDERS`FUNDS | 74 758 012 | 57 669 892 | |
| LIABILITIES: | |||
| NON CURRENT LIABILITIES: | |||
| Bank loans - net of current portion | 12 | 217 094 537 | 53 413 866 |
| Finance lease creditors - net of current portion | 12 | 1 331 012 | 16 749 594 |
| Other loans | 12 | 1 325 632 | |
| Post-retirement liabilities | 899 294 | 26 578 632 | |
| Other non current liabilities | 3 631 959 | 33 589 842 | |
| Deferred tax liability | 9 | 20 576 645 | 55 427 496 |
| Provisions | 14 | 2 011 494 | 9 355 417 |
| Total non current liabilities | 245 544 941 | 196 440 479 | |
| CURRENT LIABILITIES: | |||
| Current portion of non-current bank loans | 12 | 136 151 | 178 706 758 |
| Current bank loans | 12 | 2 350 001 | 153 596 265 |
| Current portion of non-current non-convertible bonds | 12 | 147 987 525 | |
| Current portion of non-current finance lease creditors | 12 | 405 759 | 5 669 033 |
| Other loans | 12 | 41 619 187 | |
| Trade creditors | 26 208 695 | 138 586 348 | |
| Current tax liability | 2 476 040 | 1 508 253 | |
| Other taxes and contributions | 570 383 | 7 018 495 | |
| Other current liabilities | 13 | 10 865 950 | 72 606 959 |
| Provisions Total current liabilities |
14 | 43 012 979 | 1 155 462 748 454 285 |
| TOTAL SHAREHOLDERS' FUNDS AND LIABILITIES | 363 315 932 | 1 002 564 656 |
The notes are an integral part of the consolidated financial statements
| Notes | 30.09.2016 Unaudited |
3rd. Quarter 2016 Unaudited |
30.09.2015 Unaudited Restated |
3rd. Quarter 2015 Unaudited Restated |
|
|---|---|---|---|---|---|
| Sales | 19 | 181 635 279 | 61 786 770 | 174 711 984 | 58 436 388 |
| Services rendered | 19 | 1 010 101 | 291 063 | 825 199 | 259 790 |
| Other income and gains | 17, 19 | 4 585 491 | 1 044 395 | 4 231 714 | 1 672 892 |
| Cost of sales | 19 | 95 482 967 | 32 425 784 | 98 251 185 | 33 333 683 |
| (Increase) / decrease in production | 19 | 490 377 | - 888 732 | - 280 839 | - 1 820 597 |
| External supplies and services | 19 | 36 547 660 | 11 961 541 | 36 177 026 | 12 587 118 |
| Staff expenses | 19 | 19 090 728 | 6 086 603 | 18 677 409 | 5 667 598 |
| Depreciation and amortisation | 8 896 524 | 3 048 091 | 10 330 401 | 3 347 103 | |
| Provisions and impairment losses (increase / reduction) Other expenses and losses |
14, 19 18, 19 |
- 390 066 3 767 200 |
- 121 141 847 948 |
91 209 3 139 403 |
- 6 312 950 008 |
| Operating profit / (loss) | 19 | 23 345 481 | 9 762 134 | 13 383 103 | 6 310 469 |
| Financial expenses | 20 | 17 692 104 | 3 875 884 | 19 763 447 | 6 839 446 |
| Financial income | 20 | 4 398 465 | 348 364 | 18 717 139 | 5 745 743 |
| Gains and losses in associated companies | |||||
| Gains and losses in joint ventures | 5, 7 | 6 250 495 | 3 060 215 | ||
| Net profit/(loss) from continuing operations, before taxation | 16 302 337 | 9 294 829 | 12 336 795 | 5 216 766 | |
| Taxation | 9, 21 | 6 822 300 | 3 109 350 | 3 824 139 | 1 504 472 |
| Consolidated net profit / (loss) from continuing operations, afer taxation | 9 480 037 | 6 185 479 | 8 512 656 | 3 712 294 | |
| Profit / (loss) from discontinued operations, after taxation | 9, 14, 16 | - 30 746 562 | - 36 738 631 | - 12 183 469 | |
| Consolidated net profit / (loss) for the period | - 21 266 525 | 6 185 478 | - 28 225 975 | - 8 471 175 | |
| Attributable to: Equity Holders of Sonae Industria |
|||||
| Continuing operations | 9 480 037 | 6 185 478 | 8 498 268 | 3 701 414 | |
| Discontinuing operations | - 30 746 562 | - 36 687 307 | - 12 166 449 | ||
| Equity Holders of Sonae Industria | - 21 266 525 | 6 185 478 | - 28 189 039 | - 8 465 035 | |
| Non-controlling interests | |||||
| Continuing operations | 14 388 | 10 880 | |||
| Discontinuing operations | - 51 324 | - 17 020 | |||
| Non-controlling interests | - 36 936 | - 6 140 | |||
| Profit/(Loss) per share | |||||
| Fom continuing operations: Basic |
0.0008 | 0.0005 | 0.0007 | 0.0003 | |
| Diluted | 0.0008 | 0.0442 | 0.0007 | 0.0003 | |
| From discontinued operations: | |||||
| Basic | - 0.0027 | 0.0000 | - 0.0032 | - 0.0011 | |
| Diluted | - 0.0027 | 0.0000 | - 0.0032 | - 0.0011 | |
The notes are an integral part of the consolidated financial statements
(Amounts expressed in Euros)
| Notes | 30.09.2016 Unaudited |
3rd Quarter 2016 Unaudited |
30.09.2015 Unaudited |
3rd Quarter 2015 Unaudited |
|
|---|---|---|---|---|---|
| Net consolidated profit / (loss) for the period (a) | - 21 266 525 | 6 185 478 | - 28 225 975 | - 8 471 175 | |
| Other consolidated comprehensive income | |||||
| Items that may be subsequently transferred to profit or loss | |||||
| Change in currency translation reserve | 11 | 1 617 979 | - 1 402 544 | - 10 050 485 | - 11 527 799 |
| Change in fair value of available-for-sale financial assets | 11 | 8 508 | 5 150 | 4 570 | |
| Group share of other comprehensive income of joint ventures | 2 566 322 | 1 277 382 | |||
| Other consolidated comprehensive income for the period, net of tax (b) | 4 192 809 | - 125 162 | - 10 045 335 | - 11 523 229 | |
| Total consolidated comprehensive income for the period (a) + (b) | - 17 073 716 | 6 060 316 | - 38 271 310 | - 19 994 404 | |
| Total consolidated comprehensive income attributable to: Equity holders of Sonae Industria Non-controlling interests |
- 17 073 716 - 17 073 716 |
6 060 316 6 060 316 |
- 38 222 187 - 49 123 - 38 271 310 |
- 19 974 014 - 20 390 - 19 994 404 |
|
| Other comprehensive income reclassified to profit or loss in the period | 11 | - 36 592 671 |
The notes are an integral part of the consolidated financial statements
| Share capital | Legal reserve |
Other Reserves and accumulated earnings |
Accumulated other comprehensive income |
Total shareholders` funds attributable to the equity holders of Sonae Indústria |
Non controlling interests |
Total shareholders' funds |
|
|---|---|---|---|---|---|---|---|
| 11 | |||||||
| Balance as at 1 January 2016 | 812 107 574 | 3 131 757 | - 801 248 687 | 43 785 859 | 57 776 503 | - 106 611 | 57 669 892 |
| Total consolidated comprehensive income for the period Net consolidated profit/(loss) for the period Other consolidated comprehensive income for the period |
-21 266 525 | 4 192 809 | - 21 266 525 4 192 809 |
- 21 266 525 4 192 809 |
|||
| Total | -21 266 525 | 4 192 809 | - 17 073 716 | - 17 073 716 | |||
| Medium term incentive plan Change in method Tranferred to Net consolidated profit/(loss) for the period Others |
- 159 827 35 060 569 -4 240 651 |
-35 060 569 36 592 671 1 863 032 |
- 159 827 36 592 671 -2 377 619 |
106 611 | - 159 827 36 592 671 - 2 271 008 |
||
| Balance as at 30 September 2016 | 812 107 574 | 3 131 757 | -791 855 121 | 51 373 802 | 74 758 012 | 74 758 012 |
| Share capital | Legal reserve |
Other Reserves and accumulated earnings |
Accumulated other comprehensive income |
Total shareholders` funds attributable to the equity holders of Sonae Indústria |
Non controlling interests |
Total shareholders' funds |
|
|---|---|---|---|---|---|---|---|
| 11 | |||||||
| Balance as at 1 January 2015 | 812 107 574 | 3 131 757 | -767 474 878 | 63 365 293 | 111 129 746 | - 262 099 | 110 867 647 |
| Total consolidated comprehensive income for the period Net consolidated profit/(loss) for the period Other consolidated comprehensive income for the period |
-28 189 039 | -10 033 148 | - 28 189 039 - 10 033 148 |
- 36 936 - 12 187 |
- 28 225 975 - 10 045 335 |
||
| Total | -28 189 039 | -10 033 148 | -38 222 187 | - 49 123 | -38 271 310 | ||
| Medium term incentive plan Others |
- 26 377 -2 277 296 |
54 469 | - 26 377 - 2 222 827 |
- 29 195 162 |
- 26 406 - 2 027 665 |
||
| Balance as at 30 Septembr 2015 | 812 107 574 | 3 131 757 | -797 967 590 | 53 386 614 | 70 658 355 | - 116 089 | 70 542 266 |
The notes are an integral part of the consolidated financial statements
(Amounts expressed in Euros)
| Notes | 30.09.2016 | 30.09.2015 | |
|---|---|---|---|
| Unaudited | Unaudited | ||
| OPERATING ACTIVITIES | |||
| Receipts from trade debtors | 484 429 029 | 773 423 209 | |
| Payments to trade creditors | 390 052 975 | 635 509 554 | |
| Payments to staff | 71 899 016 | 121 986 808 | |
| Net cash flow from operations | 22 477 038 | 15 926 847 | |
| Payment / (receipt) of corporate income tax | 4 432 737 | 6 386 350 | |
| Other receipts / (payments) relating to operating activities | - 66 760 | - 5 395 534 | |
| Net cash flow from operating activities (1) | 17 977 541 | 4 144 963 | |
| INVESTMENT ACTIVITIES | |||
| Cash receipts arising from: | |||
| Investments | 214 | ||
| Tangible fixed assets and intangible assets | 2 163 155 | 6 681 240 | |
| Investment properties | 1 295 290 | ||
| Investment subventions | 119 109 | ||
| Dividends Non-current assets held for sale |
9 500 2 768 038 |
||
| 2 163 369 | 10 873 177 | ||
| Cash Payments arising from: | |||
| Investments | 216 334 | 2 105 233 | |
| Tangible fixed assets and intangible assets | 13 312 585 | 14 203 373 | |
| Investment properties | 131 191 | ||
| 13 660 110 | 16 308 606 | ||
| Net cash used in investment activities (2) | - 11 496 741 | - 5 435 429 | |
| FINANCING ACTIVITIES | |||
| Cash receipts arising from: | |||
| Interest and similar income | 385 391 | 427 059 | |
| Loans obtained | 972 108 562 | 1 129 622 167 | |
| Increase in share capital (2016: Sonae Arauco, SA) | 137 500 000 | 168 502 | |
| Cash Payments arising from: | 1 109 993 953 | 1 130 217 728 | |
| Interest and similar charges | 22 754 566 | 21 013 204 | |
| Loans obtained | 1 097 373 806 | 1 095 028 759 | |
| Finance leases - repayment of principal | 3 133 006 | 5 074 716 | |
| Others | 17 130 | ||
| 1 123 261 378 | 1 121 133 809 | ||
| Net cash used in financing activities (3) | - 13 267 425 | 9 083 919 | |
| Net increase in cash and cash equivalents (4) = (1) + (2) + (3) | - 6 786 625 | 7 793 453 | |
| Effect of foreign exchange rate | 176 742 | 1 163 940 | |
| Cash and cash equivalents at the beginning of the period | 10 | 15 808 205 | 10 500 810 |
| Cash and cash equivalents of excluded companies, at 31.05.2016 | 4 939 961 | ||
| Cash and cash equivalents at the end of the period | 10 | 3 904 877 | 17 130 323 |
The notes are an integral part of the consolidated financial statements
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2016 (Amounts expressed in euros)
SONAE INDÚSTRIA, SGPS, SA has its head-office at Lugar do Espido, Via Norte, 4470- 909 Maia, Portugal.
The shares of the company are listed on Euronext Lisbon.
Consolidated financial statements for the period ended 30 September 2016 and 30 September 2015 were not subject to a limited revision carried out by the company's statutory external auditor.
This set of consolidated financial statement has been prepared on the basis of the accounting policies that were disclosed on the notes to the consolidated financial statements for fiscal year 2015.
These consolidated financial statements were prepared in accordance with the International Accounting Standard 34 – Interim Financial Reporting. As such, they do not include all the information which should be included in annual consolidated financial statements and should therefore be read in connection with the financial statements for fiscal year 2015.
These consolidated financial statements were prepared on the basis of International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and with Interpretations issued by the IFRS Interpretations Committee (IFRS IC), effective from 1 January 2016 and endorsed by the European Union.
2.2.1. During the period ended 30 September 2016 the following accounting standards, which were issued and endorsed by the European Union, became effective:
IAS 1 (amendment), Presentation of Financial Statements (effective for periods beginning on or after 1 January 2016). This amendment contains guidance relating to materiality and aggregation, presentation of subtotals, structure of financial statements, accounting policies and presentation of Other comprehensive income recognized using equity method;
IAS 16 (amendment), Tangible Fixed Assets, and IAS 38 (amendment), Intangible Assets: allowed methods for calculated depreciation and amortization (effective for periods beginning on or after 1 January 2016). In this amendment the IASB has clarified that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset. The IASB has also clarified that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset;
IAS 16 (amendment), Tangible Fixed Assets, and IAS 41 (amendment), Agriculture: 'Bearer Plants' (effective for periods beginning on or after 1 January 2016). This amendment defines the concept of bearer plant and transfers this type of asset from the scope of IAS 41 – Agriculture to the one of IAS 16 – Tangible Assets, with the related effect on measurement. However, biologic assets produced by these plants are kept in the scope of IAS 41 – Agriculture;
IAS 19 (amendment), Employee Benefits (effective for periods beginning on or after 1 February 2015). This narrow scope amendment applies to contributions from employees or third parties to defined benefit plans. The objective of the amendment is to simplify the accounting for contributions that are independent of the number of years of employee service;
IAS 27 (amendment), Separate Financial Statements (effective for periods beginning on or after 1 January 2016). This amendment allows entities to use equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements;
IFRS 11 (amendment), Joint Arrangements (effective for periods beginning on or after 1 January 2016). This amendment adds new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business;
IFRS 10 (amendment), Consolidated Financial Statements, IFRS 12 (amendment), Disclosure of Interests in Other Entities, and IAS 28 (amendment), Investments in Associates and Joint Ventures: 'Investment entities – exemption from consolidation' (effective for periods beginning on or after 1 January 2016). This amendment specifies that an intermediate holding company which is a subsidiary of an investment entity is exempted from consolidation. Furthermore, the optional use of equity method under IAS 28 is extensible to an entity which not being an investment entity, holds an interest in an associate or joint venture which qualifies as investment entity;
Annual improvements 2010-2012 (effective for periods beginning on or after 1 February 2015). These amendments include changes from the 2010-12 cycle of the annual improvements project, that affect the following standards: IFRS 2 - Sharebased Payment, IFRS 3 - Business Combinations, IFRS 8 - Operating Segments, IFRS 13 - Fair Value Measurement, IAS 16 - Property, Plant and Equipment, IAS 24 - Related Parties Disclosures and IAS 38 - Intangible Assets;
Annual improvements 2012-2014 (generally effective for periods beginning on or after 1 January 2016). This amendment cycle includes changes to the following standards: IFRS 5 – Non-current Assets Available for Sale and Discontinued Operations, IFRS 7 – Financial Instruments: Disclosures, IAS 19 – Employee Benefits and IAS 34 – Interim Financial Reporting;
The application of these standards had no significant effects on these consolidated financial statements.
2.2.2. In the period ended 30 September 2016 the following standards, effective 1 January 2016 or later, had been issued but still not endorsed by the European Union:
IAS 7 (amendment), Statement of Cash Flows – Disclosure initiative (effective for annual periods beginning on or after 1 January 2017). This amendment is still subject to endorsement by the European Union. This amendment introduces an additional
disclosure about the changes in liabilities arising from financing activities, disaggregated between cash changes and non-cash changes and how it reconciles with the reported cash flows from financing activities, in the Cash Flow Statement;
IAS 12 (amendment), Income taxes – Recognition of deferred tax assets for unrealised losses (effective for annual periods beginning on or after 1 January 2017). This amendment is still subject to endorsement by the European Union. This amendment clarifies how to account for deferred tax assets related to assets measured at fair value, how to estimate future taxable profits when temporary deductible differences exist and how to assess recoverability of deferred tax assets when restrictions exist in the tax law;
IFRS 2 (amendment), Classification and measurement of share-based payment transactions (effective for annual periods beginning on or after 1 January 2018). This amendment is still subject to endorsement by the European Union. This amendment clarifies the measurement basis for cash-settled, share-based payments and the accounting for modifications to a share-based payment plan that change the classification an award from cash-settled to equity-settled. It also introduces an exception to the principles in IFRS 2 that will require an award to be treated as if it was wholly equity-settled, where an employer is obliged to withhold an amount for the employee's tax obligation associated with a share-based payment and pay that amount to the tax authority;
IFRS 9 (new), Financial Instruments (effective for periods beginning on or after 1 January 2018). This standard replaces the guidance in IAS 39. It includes requirements on the classification and measurement of financial assets and liabilities; it also includes an expected credit losses model that replaces the current incurred loss impairment model;
IFRS 15 (new), Revenue from Contracts with Customers (effective for annual periods beginning on or after 1 January 2018). This new standard only applies to contracts with customers to provide goods or services, and requires an entity to recognise revenue when the contractual obligation to deliver goods or services is fulfilled and for the amount that reflects the consideration the entity is expected to be entitled to, following a five step approach;
IFRS 15 (amendment), Revenue from contracts with customers (effective for annual periods beginning on or after 1 January 2018). These amendments are still subject to endorsement by European Union. These amendments refer to additional guidance for determining the performance obligations in a contract, the timing of revenue
recognition from a license of intellectual property, the review of the indicators for principal versus agent classification, and to new practical expedients to simplify transition;
IFRS 16 (new), Leases (effective for annual periods beginning on or after 1 January 2019). This standard states that lessees should recognize all leases under tangible fixed assets. As for lessors, the new standard retains the double criteria for finance leases and for operating ones that exist on IAS 17.
The Company does not estimate any significant effect to arise from the application of these standards.
Exchange rates used for translating foreign group, jointly controlled and associated companies are listed below:
| 30.09.2016 | 31.12.2015 | 30.09.2015 | ||||||
|---|---|---|---|---|---|---|---|---|
| Closing rate |
Average rate |
Closing rate |
Average rate |
Closing rate |
Average rate |
|||
| Great Britain Pound | 0.8610 | 0.7763 | 0.7340 | 0.7257 | 0.7385 | 0.7270 | ||
| South African Rand | 15.5231 | 17.2325 | 16.9520 | 14.0885 | 15.4991 | 13.6556 | ||
| Canadian Dollar | 1.4690 | 1.4737 | 1.5116 | 1.4163 | 1.5034 | 1.4015 | ||
| American Dollar | 1.1161 | 1.1159 | 1.0887 | 1.1089 | 1.1203 | 1.1138 | ||
| Swiss Franc | 1.0876 | 1.0972 | 1.0835 | 1.0670 | 1.0915 | 1.0612 |
Source: Bloomberg
On 31 May 2016, Arauco Internacional Limitada, a company of the Arauco Group, acquired 50% of the shares of Tafisa – Tableros de Fibras, SA by fully subscribing EUR 137 500 000 to a share capital increase of Sonae Indústria SGPS' subsidiary Tableros de Fibras, SA. As a consequence, ownership interest in Tafisa-Tableros de Fibras, SA and its subsidiaries was reduced from 100% to 50%, which turned this company and its subsidiaries into joint ventures (note 5). As such, these companies were excluded from consolidation on this date (note 4). Investment in Tafisa – Tableros de Fibras, SA, which changed its denomination to Sonae Arauco, SA, is thereafter measured using equity method.
As a consequence of this operation, companies excluded from consolidation (note 4) were classified as discontinued operations: net profit or loss for the five-month period ended 31 May 2016 and net profit or loss for the nine-month period ended 30 September 2015 were
included under Net profit / (loss) from discontinued operation, after taxation, on the Consolidated Income Statement (note 16). Net profit or loss of these operation recorded after 31 May 2016 was included under Gains or losses in joint ventures, on the Consolidated Income Statement, using equity method (note 5).
Group companies included in the consolidated financial statements, their head offices and percentage of capital held by the Group as at 30 September 2016, 31 May 2016 and 31 December 2015 are as follows:
| PERCENTAGE OF CAPITAL HELD | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| COM PANY | HEAD OFFICE | 30.09.2016 | 31.05.2016 | 31.12.2015 | TERM S FOR INCLUSION |
|||||
| Direct | Total | Direct | Total | Direct | Total | |||||
| Agepan Eiweiler M anagement, GmbH | Eiweiler (Germany) | - | - | 100.00% | 50.00% | 100.00% | 99.98% | b) | ||
| 1) | Agloma Imobiliária y Servicios, SL | M adrid (Spain) | 100.00% 100.00% | 100.00% 100.00% | - | - | a) | |||
| Agloma Investimentos, SGPS, S. A. | M aia (Portugal) | - | - | 100.00% | 50.00% | 100.00% | 99.87% | b) | ||
| Aserraderos de Cuellar, S.A. | M adrid (Spain) | - | - | 100.00% | 50.00% | 100.00% | 99.87% | b) | ||
| BHW Beeskow Holzwerkstoffe GmbH | M eppen (Germany) | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | ||
| Ecociclo, Energia e Ambiente, S. A. | M aia (Portugal) | - | - | 100.00% | 50.00% | 100.00% 100.00% | b) | |||
| Euroresinas - Indústrias Quimicas, S.A. | M aia (Portugal) | - | - | 100.00% | 50.00% | 100.00% 100.00% | b) | |||
| Frases e Frações - Imobiliária e Serviços, SA |
M aia (Portugal) | 100.00% 100.00% | 100.00% 100.00% | 100.00% 100.00% | a) | |||||
| GHP Glunz Holzwerkstoffproduktions GmbH |
M eppen (Germany) | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | ||
| Glunz AG | M eppen (Germany) | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | ||
| Glunz Service GmbH | M eppen (Germany) | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | ||
| Glunz UK Holdings, Ltd. | Knowsley (United Kingdom) |
100.00% 100.00% | 100.00% 100.00% | 100.00% | 99.86% | a) | ||||
| Glunz UkA GmbH | M eppen (Germany) | 100.00% 100.00% | 100.00% 100.00% | 100.00% | 99.86% | a) | ||||
| Impaper Europe GmbH | M eppen (Germany) | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | ||
| Imoplamac – Gestão de Imóveis, S. A. | M aia (Portugal) | - | - | 100.00% | 50.00% | 100.00% 100.00% | b) | |||
| Isoroy, SAS | Nanterre (France) | 100.00% 100.00% | 100.00% 100.00% | 100.00% | 99.86% | a) | ||||
| M aiequipa - Gestão Florestal, SA | M aia (Portugal) | 100.00% 100.00% | 100.00% 100.00% | 100.00% 100.00% | a) | |||||
| M egantic B.V. | Amsterdam (The Netherlands) |
100.00% 100.00% | 100.00% 100.00% | 100.00% | 99.86% | a) | ||||
| M ovelpartes - Comp. para a Indústria do M obiliário, SA |
Paredes (Portugal) | 100.00% 100.00% | 100.00% 100.00% | 100.00% 100.00% | a) | |||||
| Novodecor (Pty) Ltd | Woodmead (South Africa) |
100.00% 100.00% | 100.00% 100.00% | 100.00% 100.00% | a) | |||||
| OSB Deustchland | Germany | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | ||
| 2) | Parcelas e Narrativas - Imobiliária, SA | M aia (Portugal) | 100.00% 100.00% | 100.00% 100.00% | - | - | a) | |||
| Poliface North America | Baltimore (USA) | 100.00% 100.00% | 100.00% 100.00% | 100.00% | 99.86% | a) | ||||
| Racionalización y M anufacturas Florestales, S.A. |
M adrid (Spain) | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) |
| Sociedade de Iniciativa e Aproveit. Florestais – Energias, S.A. |
M angualde (Portugal) |
- | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
|---|---|---|---|---|---|---|---|---|---|
| Somit – Imobiliária, S.A. | M angualde (Portugal) |
- | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| 1) | Sonae Arauco France | Nanterre (France) | - | - | 100.00% | 50.00% | - | - | b) |
| Sonae Indústria – Prod. e Comerc. Derivados M adeira, S. A. |
M angualde (Portugal) |
- | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| Sonae Indústria - Soc. Gestora de Participações Sociais, SA |
M aia (Portugal) | Parent | Parent | Parent | Parent | Parent | Parent | Parent | |
| Sonae Indústria de Revestimentos, SA | M aia (Portugal) | 100.00% 100.00% | 100.00% 100.00% | 100.00% 100.00% | a) | ||||
| Sonae Novobord (Pty) Ltd | Woodmead (África do Sul) |
- | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| Sonae Tafibra International, B. V. | Woerden (The Netherlands) |
- | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| Sonae Industria (UK), Limited | Knowsley (United Kingdom) |
- | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| Spanboard Products Ltd | Belfast (United Kingdom) |
100.00% 100.00% | 100.00% 100.00% | 100.00% | 99.86% | a) | |||
| 3) | Sonae Arauco, S.A. | M adrid (Spain) | - | - | 100.00% | 50.00% | 98.42% | 99.86% | b) |
| Tableros Tradema, S.L. | M adrid (Spain) | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| Tafiber. Tableros de Fibras Ibéricas, S.L. |
M adrid (Spain) | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| Tafibra South Africa, Limited | Woodmead (África do Sul) |
- | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| Tafisa Canadá Inc | Lac M égantic (Canada) |
100.00% 100.00% | 100.00% 100.00% | 100.00% | 99.86% | a) | |||
| Tafisa France S.A.S. | Nanterre (France) | 100.00% 100.00% | 100.00% 100.00% | 100.00% | 99.86% | a) | |||
| Tafisa U.K, Ltd. | Knowsley (United Kingdom) |
- | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| Taiber, Tableros Aglomerados Ibéricos, S.L. |
M adrid (Spain) | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| Tafibra Suisse, SA | Tavannes (Switzerland) |
- | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| Tecnologias del M edio Ambiente, S.A. | Barcelona (Spain) | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) | |
| Tool, GmbH | M eppen (Germany) | - | - | 100.00% | 50.00% | 100.00% | 99.86% | b) |
Following the increase in share capital by Sonae Arauco SA (formerly denominated as Tafisa – Tableros de Fibras, SA) at 31 May 2016, companies identified as b) were excluded from consolidation as they were classified as joint ventures on that date (note 3).
Joint ventures, their head offices, percentage of share capital held on 30 September 2016 and 31 December 2015 are as follows:
| PERCENTAGE OF CAPITAL HELD | ||||||||
|---|---|---|---|---|---|---|---|---|
| COM PANY | HEAD OFFICE | 30.09.2016 | 31.12.2015 | |||||
| Direct | Total | Direct | Total | |||||
| 1) | Sonae Arauco, SA | M adrid (Spain) | 50.00% | 50.00% | - | - | ||
| Agepan Eiweiler M anagement, GmbH | Eiweiler (Germany) | 50.00% | 50.00% | - | - | c) | ||
| Agloma Investimentos, SGPS, S. A. | M aia (Portugal) | 50.00% | 50.00% | - | - | c) | ||
| Aserraderos de Cuellar, S.A. | M adrid (Spain) | 50.00% | 50.00% | - | - | c) | ||
| BHW Beeskow Holzwerkstoffe GmbH | M eppen (Germany) | 50.00% | 50.00% | - | - | c) | ||
| Ecociclo, Energia e Ambiente, S. A. | M aia (Portugal) | 50.00% | 50.00% | - | - | c) | ||
| Euroresinas - Indústrias Quimicas, S.A. | M aia (Portugal) | 50.00% | 50.00% | - | - | c) | ||
| GHP Glunz Holzwerkstoffproduktions GmbH |
M eppen (Germany) | 50.00% | 50.00% | - | - | c) | ||
| Glunz AG | M eppen (Germany) | 50.00% | 50.00% | - | - | c) | ||
| Glunz Service GmbH | M eppen (Germany) | 50.00% | 50.00% | - | - | c) | ||
| Impaper Europe GmbH | M eppen (Germany) | 50.00% | 50.00% | - | - | c) | ||
| Imoplamac – Gestão de Imóveis, S. A. | M aia (Portugal) | 50.00% | 50.00% | - | - | c) | ||
| Laminate Park GmbH & Co. KG | Eiweiler (Germany) | 50.00% | 50.00% | 50.00% | 49.93% d) | |||
| OSB Deustchland | Germany | 50.00% | 50.00% | - | - | c) | ||
| Racionalización y M anufacturas Florestales, S.A. |
M adrid (Spain) | 50.00% | 50.00% | - | - | c) | ||
| Sociedade de Iniciativa e Aproveit. Florestais – Energias, S.A. |
M angualde (Portugal) | 50.00% | 50.00% | - | - | c) | ||
| Somit – Imobiliária, S.A. | M angualde (Portugal) | 50.00% | 50.00% | - | - | c) | ||
| Sonae Arauco France | Nanterre (France) | 50.00% | 50.00% | - | - | c) | ||
| Sonae Indústria – Prod. e Comerc. Derivados M adeira, S. A. |
M angualde (Portugal) | 50.00% | 50.00% | - | - | c) | ||
| Sonae Novobord (Pty) Ltd | Woodmead (África do Sul) | 50.00% | 50.00% | - | - | c) | ||
| Sonae Tafibra International, B. V. | Woerden (The Netherlands) | 50.00% | 50.00% | - | - | c) | ||
| Sonae Industria (UK), Limited | Knowsley (United Kingdom) | 50.00% | 50.00% | - | - | c) | ||
| Tableros Tradema, S.L. | M adrid (Spain) | 50.00% | 50.00% | - | - | c) | ||
| Tafiber. Tableros de Fibras Ibéricas, S.L. |
M adrid (Spain) | 50.00% | 50.00% | - | - | c) | ||
| Tafibra South Africa, Limited | Woodmead (África do Sul) | 50.00% | 50.00% | - | - | c) | ||
| Tafisa U.K, Ltd. | Knowsley (United Kingdom) | 50.00% | 50.00% | - | - | c) | ||
| Taiber, Tableros Aglomerados Ibéricos, S.L. |
M adrid (Spain) | 50.00% | 50.00% | - | - | c) | ||
| Tafibra Suisse, SA | Tavannes (Switzerland) | 50.00% | 50.00% | - | - | c) | ||
| Tecnologias del M edio Ambiente, S.A. | Barcelona (Spain) | 50.00% | 50.00% | - | - | c) | ||
| Tecmasa. Reciclados de Andalucia, S. L. |
Alcalá de Guadaira (Spain) | 50.00% | 50.00% | 50.00% | 49.93% d) | |||
| Tool, GmbH | M eppen (Germany) | 50.00% | 50.00% | - | - | c) |
c) Company included in the consolidation perimeter of Sonae Arauco, SA;
d) Company included in the consolidation perimeter of Sonae Arauco, SA., which was already classified as a joint venture on the Company's consolidated financial statements for the period ended 31 December 2015;
1) Former Tafisa – Tableros de Fibras, SA: company whose investment is measured using equity method following its classification as a joint venture, after the increase in share capital at 31 May 2016 (note 3).
Net assets and net profit/loss for these jointly-controlled companies, whose share was recognized on these consolidated financial statements using equity method, are detailed as follows:
| 30.09.2016 | 31.12.2015 | |||||
|---|---|---|---|---|---|---|
| Sonae Arauco - Consolidated |
Laminate Park | Sonae Arauco - consolidated |
Tecmasa, Reciclados de Andalucia |
|||
| Non-current assets | 510 387 641 | 32 015 153 | - | 197 372 | ||
| Current assets | 217 612 367 | 18 227 223 | - | 413 252 | ||
| Cash and cash equivalents | 20 672 712 | 266 798 | - | 222 043 | ||
| Other non-current liabilities | 312 655 368 | 3 559 203 | - | |||
| Current financial liabilities | 7 882 464 | 4 347 656 | - | |||
| Other current liabilities | 180 213 430 | 31 443 090 | - | 108 501 | ||
| 30.09.2016 | 30.09.2015 | |||||
| Operating revenues | 272 632 530 | 60 201 845 | - | 324 495 | ||
| Operating expenses | 252 580 028 | 61 305 724 | - | 279 220 | ||
| Depreciation and amortization | 15 476 147 | 3 763 678 | - | 19 857 | ||
| Interest expense | 3 446 339 | 647 593 | - | |||
| Taxation | 913 202 | - | ||||
| Net profit/(loss) from continuing operations | 12 065 000 | - 2 467 757 | - | 45 378 | ||
| Adjustments to the Group's accounting policies | 435 991 | - 32 632 | - | - 2 686 | ||
| Group's share on net profit/(loss) | 6 250 496 | - 1 250 195 | - | 21 346 |
Results presented on the table above for Sonae Arauco, SA with reference to 30 September 2016 are the consolidated results for the period from 1 June 2016 to 30 September 2016.
Joint ventures Laminate Park and Tecmasa Andalucia were recognized on the consolidated financial statements of Sonae Arauco, SA using equity method, after 31 May 2016.
After being classified as a joint venture, Sonae Arauco, SA (formerly denominated as Tafisa –Tableros de Fibras, SA) and its subsidiaries were excluded from the consolidation at 31 May 2016 (notes 3, 4 and 5). The investment in Sonae Arauco, SA has been accounted using the equity method as from 31 May 2016. On the date of change of the accounting method, the investment was recognized at a provisional accounting value resulting from the deconsolidation of Sonae Arauco companies from Sonae Indústria's consolidated accounts, which was estimated at EUR 147 304 255. From 1 June 2016, this investment value changed due to the recognition of the Company's share of the following: consolidated net profit of Sonae Arauco, SA; consolidated other comprehensive income for the period; and changes in the remainder of consolidated net shareholders' funds of Sonae Arauco, SA, after being adjusted to comply with the accounting policies of Sonae Indústria and to eliminate the Company's share in gains or losses on transactions between both consolidation perimeters. Due to positive results posted by Sonae Arauco, at 30 September 2016 the investment in Sonae Arauco stood at EUR 156 141 183.
This provisional accounting value of EUR 147 304 255 is subject to correction in the year end 2016 accounts once fair value has been determined for Sonae Arauco.
The comparability of Consolidated Statements of Financial Position at 30 September 2016 and 31 December 2015 was affected by companies excluded from consolidation (note 4) as follows:
| ASSETS | 30.09.2016 | 31.12.2015 Consolidation perimeter as at 30.09.2016 |
31.12.2015 Effect of changes in perimeter |
31.12.2015 |
|---|---|---|---|---|
| NON CURRENT ASSETS: | ||||
| Tangible fixed assets | 147 472 134 | 159 486 497 | - 469 293 231 | 628 779 728 |
| Goodwill | 347 081 | 347 081 | - 80 536 951 | 80 884 032 |
| Intangible assets | 315 634 | 492 840 | - 3 710 188 | 4 203 028 |
| Investment properties | 6 314 672 | - 6 450 977 | 6 450 977 | |
| Investment in associates | - 1 493 139 | 1 493 139 | ||
| Investment in joint ventures | 156 141 183 | - 5 695 259 | 5 695 259 | |
| Investment available for sale | 129 870 | 127 122 | - 1 028 591 | 1 155 713 |
| Deferred tax asset | 2 188 748 | 3 006 427 | - 25 351 707 | 28 358 134 |
| Other non current assets | 442 608 | 459 938 | - 344 332 | 804 270 |
| Total non current assets | 313 351 930 | n/a | n/a | 757 824 280 |
| CURRENT ASSETS: | ||||
| Inventories | 17 936 636 | 17 663 876 | - 80 343 697 | 98 007 573 |
| Trade debtors | 20 148 026 | 13 247 716 | - 71 805 293 | 85 053 009 |
| Other current debtors | 271 761 | 330 703 | - 12 871 313 | 13 202 016 |
| Current tax asset | 1 613 794 | 2 021 731 | - 778 038 | 2 799 769 |
| Other taxes and contributions | 2 019 270 | 1 737 318 | - 3 073 977 | 4 811 295 |
| Other current assets | 2 534 050 | 3 070 477 | - 7 336 179 | 10 406 656 |
| Cash and cash equivalents | 3 904 877 | 5 204 569 | - 23 719 901 | 28 924 470 |
| Total current assets | 48 428 414 | n/a | n/a | 243 204 788 |
| Non-current assets held for sale | 1 535 588 | 1 535 588 | 1 535 588 | |
| TOTAL ASSETS | 363 315 932 | n/a | n/a | 1 002 564 656 |
| TOTAL SHAREHOLDERS`FUNDS | 74 758 012 | n/a | n/a | 57 669 892 |
|---|---|---|---|---|
| LIABILITIES: | ||||
| NON CURRENT LIABILITIES: | ||||
| Bank loans - net of current portion | 217 094 537 | 36 362 363 | - 17 051 503 | 53 413 866 |
| Finance lease creditors - net of current portion | 1 331 012 | 1 544 674 | - 15 204 920 | 16 749 594 |
| Other loans | - 1 325 632 | 1 325 632 | ||
| Post-retirement liabilities | 899 294 | 899 293 | - 25 679 339 | 26 578 632 |
| Other non current liabilities | 3 631 959 | 3 860 910 | - 29 728 932 | 33 589 842 |
| Deferred tax liability | 20 576 645 | 21 466 844 | - 33 960 652 | 55 427 496 |
| Provisions | 2 011 494 | 2 400 067 | - 6 955 350 | 9 355 417 |
| Total non current liabilities | 245 544 941 | n/a | n/a | 196 440 479 |
| CURRENT LIABILITIES: | ||||
| Current portion of non-current bank loans | 136 151 | 110 681 020 | - 68 025 738 | 178 706 758 |
| Current bank loans | 2 350 001 | 109 089 651 | - 44 506 614 | 153 596 265 |
| Current portion of non-current non-convertible bonds | 147 987 525 | 147 987 525 | ||
| Current portion of non-current finance lease creditors | 405 759 | 393 960 | - 5 275 073 | 5 669 033 |
| Other loans | 18 930 | - 41 600 257 | 41 619 187 | |
| Trade creditors | 26 208 695 | 21 520 943 | - 117 065 405 | 138 586 348 |
| Current tax liability | 2 476 040 | 1 330 790 | - 177 463 | 1 508 253 |
| Other taxes and contributions | 570 383 | 951 596 | - 6 066 899 | 7 018 495 |
| Other current liabilities | 10 865 950 | 12 673 144 | - 59 933 815 | 72 606 959 |
| Provisions | - 1 155 462 | 1 155 462 | ||
| Total current liabilities | 43 012 979 | n/a | n/a | 748 454 285 |
| LIABILITIES TOTAL | 363 315 932 | n/a | n/a | 1 002 564 656 |
n/a – not applicable.
The Consolidated Statement of Financial Position at 31 December 2015 on the basis of consolidation perimeter as at 30 September 2016 did not include any deconsolidation adjustments regarding the companies that were excluded at 31 May 2016 (note 4).
At 30 September 2016 and 31 December 2015, details of Investments, on the Consolidated Statement of Financial position, are as follows:
| 30.09.2016 | 31.12.2015 | |
|---|---|---|
| Non current | Non current | |
| Investment in group companies excluded from consolidation | ||
| Opening balance | 36 969 914 | 36 969 914 |
| Liquidation | 36 969 914 | |
| Closing balance | 36 969 914 | |
| Accumulated impairment losses (Note 14) | 36 969 914 | |
| Net investment in group companies excluded from consolidation |
| 30.09.2016 | 31.12.2015 |
|---|---|
| Non current | Non current |
| Investment in associated companies | |
| Opening balance 1 493 139 |
1 354 074 |
| Effect of change in perimeter (note 4) -1 493 139 |
|
| Effect of equity method (note 5) | 139 065 |
| Closing balance | 1 493 139 |
| 30.09.2016 | 31.12.2015 | |
|---|---|---|
| Non current | Non current | |
| Investment in joint ventures | ||
| Opening balance | 5 695 259 | 7 326 715 |
| Effect of change in perimeter (note 4) | -5 695 259 | |
| Effect of equity method (note 5) | 156 141 183 | -1 631 456 |
| Closing balance | 156 141 183 | 5 695 259 |
| 30.09.2016 | 31.12.2015 | |
| Non current | Non current | |
| Available-for-sale investment | ||
| Opening balance | 1 171 674 | 1 144 569 |
| A cquisition | 2 224 | 18 579 |
| Effect of change in perimeter (note 4) | -1 048 547 | |
| Change in fair value | 8 508 | 8 526 |
| Closing balance | 133 859 | 1 171 674 |
| A ccumulated impairment losses (Note 14) | 3 989 | 15 961 |
| Net available-for-sale investment | 129 870 | 1 155 713 |
Investments in subsidiaries excluded from consolidation comprise the subsidiary Tarnaise de Panneaux whose liquidation process was filed in 2001 and was concluded in the period ended 30 September 2016.
At 30 September 2016 and 31 December 2015, movements in tangible assets, accumulated depreciation and impairment losses were as follows:
| 30.09.2016 | 31.12.2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Land and Buildings |
Plant and Machinery |
Vehicles | Tools | Fixtures and Fittings |
Other Tangible Fixed Assets |
Tangible Fixed Assets under construction |
Total tangible fixed assets |
Total tangible fixed assets |
|
| Gross cost: | |||||||||
| Opening balance | 646 791 354 | 1 370 041 227 | 10 931 046 | 13 196 327 | 26 896 730 10 287 939 | 21 556 726 | 2 099 701 349 | 2 176 796 117 | |
| Changes in consolidation perimeter | - 545 967 605 -1 084 104 786 | - 8 457 368 | - 12 973 716 | - 22 926 895 | - 9 512 382 | - 12 933 945 | -1 696 876 697 | ||
| Capital expenditure | 149 455 | 10 040 470 | 10 189 925 | 21 351 990 | |||||
| Disposals | 16 127 350 | 44 216 348 | 390 211 | 108 958 | 614 275 | 721 067 | 62 178 209 | 17 098 510 | |
| Reclassifications as investment properties | - 37 123 738 | ||||||||
| Transfers and reclassifications | 363 173 | 5 830 345 | 382 542 | 14 704 | 125 738 | 162 105 | - 8 491 918 | - 1 613 311 | - 4 005 554 |
| Exchange rate effect | 2 566 208 | 8 339 920 | 65 027 | 15 277 | 64 882 | 1 503 | 282 488 | 11 335 305 | - 40 218 956 |
| Closing balance | 87 775 235 | 255 890 358 | 2 531 036 | 143 634 | 3 546 180 | 218 098 | 10 453 821 | 360 558 362 | 2 099 701 349 |
| Accumulated depreciation and impairment losses | |||||||||
| Opening balance | 377 423 482 | 1 034 831 385 | 10 313 762 | 12 541 503 | 25 818 573 | 9 218 418 | 774 498 | 1 470 921 621 | 1 476 706 696 |
| Changes in consolidation perimeter | - 339 676 366 | - 839 839 024 | - 7 912 407 | - 12 402 841 | - 22 092 857 | - 8 456 307 | - 774 498 | -1 231 154 300 | |
| Depreciations for the period | 5 275 026 | 22 302 536 | 174 327 | 95 969 | 180 558 | 172 068 | 28 200 484 | 61 697 879 | |
| Impairment losses for the period - on results | 111 280 | ||||||||
| Disposals | 15 463 880 | 43 944 365 | 389 269 | 108 959 | 612 198 | 720 884 | 61 239 555 | 12 864 956 | |
| Reclassifications as investment properties | - 30 134 419 | ||||||||
| Transfers and reclassifications | - 7 874 | - 7 874 | - 3 307 007 | ||||||
| Exchange rate effect | 849 181 | 5 385 978 | 57 946 | 15 204 | 57 653 | - 110 | 6 365 852 | - 21 287 852 | |
| Closing balance | 28 407 443 | 178 736 510 | 2 244 359 | 140 876 | 3 351 729 | 205 311 | 213 086 228 | 1 470 921 621 | |
| Carrying amount | 59 367 792 | 77 153 848 | 286 677 | 2 758 | 194 451 | 12 787 | 10 453 821 | 147 472 134 | 628 779 728 |
Changes in consolidation perimeter refer to companies excluded from consolidation following the increase in share capital by Sonae Arauco, SA (notes 3 and 4).
At the closing date of these consolidated financial statements, mortgaged tangible fixed assets amounted to EUR 131 867 417 (EUR 299 596 935 at 31 December 2015), as a guarantee of loans amounting to EUR 40 981 494 (EUR 125 910 591 at 31 December 2015).
At 30 September 2016 and 31 December 2015, Deferred tax asset and Deferred tax liability, on the Consolidated Statement of Financial Position were detailed as follows:
| Deferred Tax Assets | Deferred Tax Liabilities | ||||
|---|---|---|---|---|---|
| 30.09.2016 | 31.12.2015 | 30.09.2016 | 31.12.2015 | ||
| Harmonisation Adjustments | 19 604 312 | 38 104 229 | |||
| Provisions not Allowed for Tax Purposes | 20 484 | 997 568 | |||
| Impairment of Assets | 210 753 | 1 233 414 | |||
| Tax Losses Carried Forward | 1 734 158 | 17 857 583 | |||
| Defined benefit plans | 2 262 330 | ||||
| Derecognized Tangible Fixed Assets | 36 378 | ||||
| Revaluation of Tangible Fixed Assets | 970 569 | 14 655 358 | |||
| Other Temporary Differences | 223 353 | 5 970 861 | 1 764 | 2 667 909 | |
| 2 188 748 | 28 358 134 | 20 576 645 | 55 427 496 |
In the nine-month periods ended 30 September 2016 and 30 September 2015, movements in Deferred tax asset and Deferred tax liability can be detailed as follows:
| Deferred tax assets | Deferred tax liabilities | |||
|---|---|---|---|---|
| 30.09.2016 | 30.09.2015 Restated |
30.09.2016 | 30.09.2015 Restated |
|
| Opening balance | 28 358 134 | 27 754 742 | 55 427 496 | 63 291 251 |
| Effect on profit or loss of continuing operation: | ||||
| Changes in temporary differences affecting profit or loss: | ||||
| Harmonisation adjusments | - 1 477 393 | - 1 739 392 | ||
| Impairment of Assets | - 66 207 | 23 617 | ||
| Revaluation of tangible assets | - 9 791 | - 3 631 | ||
| Tax losses carried forward | 158 827 | - 1 268 299 | ||
| Others | - 917 388 | - 17 688 | 225 434 | |
| Subtotal (note 21) | - 824 768 | - 1 262 370 | - 1 487 184 | - 1 517 589 |
| Effect on profit or loss of discontinued operations: Changes in temporary differences affecting profit or loss: Harmonisation adjusments |
137 795 | 110 181 | ||
| Provisions not allowed for tax purposes | - 116 222 | 221 290 | ||
| Impairment of Assets | - 256 828 | - 601 560 | ||
| Tax losses carried forward | 1 438 154 | 531 543 | ||
| Derecognized tangible assets | - 450 | - 809 | ||
| Revaluation of tangible assets | 1 886 522 | - 1 430 387 | ||
| Others | - 1 682 926 | 40 780 | 233 460 | 345 194 |
| Subtotal | - 618 272 | 191 244 | 2 257 777 | - 975 012 |
| Currency translation effect | 43 655 | - 131 029 | 911 553 | - 2 621 751 |
| Changes in consolidation perimeter | - 24 770 001 | - 36 532 997 | ||
| Closing balance | 2 188 748 | 26 552 587 | 20 576 645 | 58 176 899 |
Changes in consolidation perimeter refer to companies excluded from consolidation in the period ended 30 September 2016 (note 4).
At 30 September 2016 and 31 December 2015, detail of Cash and Cash Equivalents, on the Consolidated Statement of Financial Position, was as follows:
| 30.09.2016 | 31.12.2015 | |
|---|---|---|
| Cash at Hand | 6 454 | 42 240 |
| Bank Deposits and Other Treasury Applications | 3 898 423 | 28 882 230 |
| Cash and Cash Equivalents on the Consolidated Statement of Financial Position |
3 904 877 | 28 924 470 |
| Bank Overdrafts | 13 116 265 | |
| Cash and Cash Equivalents on the Statement of Cash Flows | 3 904 877 | 15 808 205 |
Accumulated other comprehensive income on the Consolidated Statement of Financial Position, is detailed as follows:
| Accumulated other comprehensive income Atributable to the parent's shareholders |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Currency | Available for-sale |
Revaluation | Remeasurements | Conjuntos e Associadas | Quota-parte do Outro Rendimento Integral dos Empreendimentos |
Income tax related to components |
|||||
| translation | financial assets |
Reserve | on defined benefit plans |
Que ulteriormente poderá ser transferido para resultado |
Que ulteriormente não poderá ser transferido para resultado |
of other comprehensiv e income |
Total | ||||
| Balance as at 1 January 2016 | - 31 461 322 | 96 733 106 260 850 | - 6 260 935 | 1 388 833 | 26 238 300 | 43 785 859 | |||||
| Other consolidated comprehensive income for the period Change in method Tranferred to Net consolidated profit/(loss) for the period Others |
1 617 979 36 592 671 1 706 713 |
8 508 - 105 241 |
- 99 895 009 1 343 |
6 218 070 - 87 |
2 566 322 52 621 |
33 619 135 | - 25 049 855 - 155 063 |
4 192 809 -35 060 569 36 592 671 1 863 032 |
|||
| Balance as at 30 September 2016 | 8 456 041 | 6 367 184 | - 42 952 | 2 618 943 | 35 007 968 | 1 033 382 | 51 373 802 |
| Accumulated other comprehensive income Atributable to the parent's shareholders |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Available Currency for-sale translation financial assets |
Revaluation | Remeasurements | Conjuntos e Associadas | Quota-parte do Outro Rendimento Integral dos Empreendimentos |
Income tax related to components |
|||||
| Reserve | on defined benefit plans |
Que ulteriormente poderá ser transferido para resultado |
Que ulteriormente não poderá ser transferido para resultado |
of other comprehensiv e income |
Total | |||||
| Balance as at 1 January 2015 | -12 361 951 | 88 083 | 107 383 926 | -6 520 334 | 1 386 912 | 26 611 343 | 63 365 293 | |||
| Other consolidated comprehensive income for the period Others |
-10 038 292 2 175 |
5 144 17 |
19 028 | 37 783 | 268 | 4 802 | -10 033 148 54 469 |
|||
| Balance as at 30 September 2015 | -22 398 068 | 93 244 | 107 402 954 | -6 482 551 | 1 387 180 | 26 616 145 | 53 386 614 |
Translation reserve transferred to Net consolidated profit / (loss) for the period amounting to EUR -36 592 671 was included under Profit / (loss) from discontinued operations, after taxation, and relates to the companies that were excluded from consolidation at 31 May 2016 (notes 3 and 4).
As at 30 September 2016 and 31 December 2015, Sonae Indústria had the following outstanding loans:
| 30.09.2016 | 31.12.2015 | |||||||
|---|---|---|---|---|---|---|---|---|
| Amortised cost | Nominal value | Amortised cost | Nominal value | |||||
| Current | Non current | Current | Non current | Current | Non current | Current | Non current | |
| Bank loans Debentures |
2 486 152 | 217 094 537 | 2 486 152 | 218 468 555 | 332 303 023 147 987 525 |
53 413 866 | 333 573 440 150 000 000 |
53 648 577 |
| Obligations under finance leases Other loans |
405 759 | 1 331 012 | 405 759 | 1 331 012 | 5 669 033 41 619 187 |
16 749 594 1 325 632 |
5 669 033 41 954 760 |
16 749 594 1 325 632 |
| Gross debt | 2 891 911 | 218 425 549 | 2 891 911 | 219 799 567 | 527 578 768 | 71 489 092 | 531 197 233 | 71 723 803 |
| Cash and cash equivalent in balance sheet |
3 904 877 | 3 904 877 | 28 924 470 | 28 924 470 | ||||
| Net debt | - 1 012 966 | 218 425 549 | - 1 012 966 | 219 799 567 | 498 654 298 | 71 489 092 | 502 272 763 | 71 723 803 |
| Total net debt | 217 412 583 | 218 786 601 | 570 143 390 | 573 996 566 |
| Company(ies) | Loan | Contract date | Maturity (with reference to Currency 30.09.2016) |
Outstanding principal at 30.09.2016 (EUR) |
Outstanding principal at 31.12.2015 (EUR) |
|
|---|---|---|---|---|---|---|
| Sonae Arauco, SA (former Tableros de Fibras S.A. ) |
Commercial paper programme |
July 2010 | 1) | EUR | 2 400 000 | |
| Sonae Indústria, SGPS, S.A. | Bank loan | August 2010 | fully repaid in July 2016, by agreeement between the parties |
EUR | 1 944 444 | |
| Sonae Indústria, SGPS, S.A. | Commercial paper programme |
September 2010 | fully repaid in June 2016, as per contract |
EUR | 12 500 000 | |
| Tafisa Canada Inc. | Bank loan (Revolving ) |
July 2011 | to be repaid from March 2017 to May 2021 |
CAD | 40 981 494 | 29 572 204 |
| Tafisa Canada Inc. | Bank loan | July 2011 | last payment in April 2016, as per contract |
CAD | 334 117 | |
| Imoplamac, S.A. | Bank loan | November 2012 | last payment in March 2016, as per contract |
EUR | 729 933 | |
| Sonae Indústria, SGPS, S.A. | Commercial paper programme |
June 2013 | June 2018 Note: programme without subscription guarantee |
EUR | 13 650 000 | |
| Taiber, Tableros Aglomerados Ibéricos, S.L. and Sonae Indústria, SGPS, S.A. |
Bank loan | November 2013 | 1) | EUR | 39 000 000 | |
| Sonae Indústria, SGPS, S.A. | Commercial paper programme |
July 2014 | to be repaid from December 2015 to June 2018 |
EUR | 250 000 | 8 350 000 |
| Sonae Indústria, SGPS, S.A. | Commercial paper programme |
August 2014 | 1) | EUR | 93 900 000 | |
| Sonae Arauco, SA (former Tableros de Fibras, S.A. ) and Sonae Indústria, SGPS, S.A. |
Bank loan | October 2014 | 1) | EUR | 65 000 000 | |
| Sonae Indústria, SGPS, S.A. | Bank loan | October 2014 | 1) | EUR | 7 930 000 | |
| Sonae Indústria, SGPS, S.A | Commercial paper programme |
February 2015 | 1) | EUR | 12 500 000 | |
| Sonae Novobord (Pty) Limited | Bank loan | April 2015 | 2) | ZAR | 16 104 270 | |
| Sonae Indústria, SGPS, S.A. | Bank loan | June 2015 | 1) | EUR | 60 000 000 | |
| Sonae Indústria, SGPS, S.A. | Commercial paper programme |
October 2015 | October 2016, renewable | EUR | 2 350 000 | 5 000 000 |
| Euroresinas - Indústrias Químicas, S.A. |
Bank loan | November 2015 | 2) | EUR | 4 000 000 | |
| Sonae Indústria, SGPS, S.A. | Bank loan | December 2015 | fully repaid in January 2016, as per contract |
EUR | 9 999 481 | |
| Taiber, Tableros Aglomerados Ibéricos, S.L. |
Bank loan | January 2016 | 2) | EUR | N/A | |
| Sonae Indústria, SGPS, S.A. | Commercial paper programme 3) |
May 2016 | to be repaid from May 2019 to May 2021 |
EUR | 175 000 000 | N/A |
| Sonae Indústria, SGPS, S.A. | Commercial paper programme |
July 2016 | to be repaid from July 2017 to July 2018 |
EUR | 1 250 000 | N/A |
| Several companies | EUR | 1 123 213 | 4 307 567 | |||
| Total | EUR | 220 954 707 | 387 222 017 |
1) By agreement between the parties, this loan was revoked with effect from end of May 2016, and all outstanding amounts have been repaid.
2) As a result of the exclusion of the companies mentioned on note 4), these loans are no longer accounted for in the consolidated debt of Sonae Indústria, SGPS, S.A .
3) The shares of subsidiaries Megantic BV and Tafisa Canada Inc were pledged as guarantee for this loan.
All these loans are subject to variable interest rates.
Figures detailed on the previous table correspond to the nominal value of bank loans disclosed on note 12.
At 30 September 2016, in addition to mortgaged tangible fixed assets referred to on note 8, there were other assets amounting to EUR 30 681 903 (EUR 47 975 673 at 31 December 2015) which were pledged as guarantee of the Group's liabilities. These assets consisted mostly of inventories and accounts receivable.
12.2. Bond Issues
| Company(ies) | Loan | Contract date | Maturity (with reference to 30.09.2016) |
Currency | Outstanding principal at 30.09.2016 (EUR) |
Outstanding principal at 31.12.2015 (EUR) |
|---|---|---|---|---|---|---|
| Sonae Indústria, SGPS, S.A. | Sonae Industria / 2014 - 2020 bonds |
October 2014 | 1) | EUR | 150 000 000 |
1) In May 2016, by agreement between the parties, Sonae Indústria, SGPS, SA repurchased and amortized all the Bonds "Sonae Indústria / 2014-2020".
This loan was subject to variable interest rate.
| Company(ies) | Loan | Contract date | Maturity (with reference to 30.09.2016) |
Currency | Outstanding principal at 30.09.2016 (EUR) |
Outstanding principal at 31.12.2015 (EUR) |
|---|---|---|---|---|---|---|
| Several companies | Trade receivables | August 2012 | 1) | EUR | 40 167 419 | |
| securitization | GBP | 475 656 |
1). By agreement between the parties, this loan was revoked with effect from end of May 2016, and all outstanding amounts have been repaid.
This loan was subject to variable interest rate.
At 30 September 2016 and 31 December 2015, Other current liabilities on the Consolidated Statement of Financial Position were composed of:
| 30.09.2016 | 31.12.2015 | |
|---|---|---|
| Derivatives | 218 816 | 41 908 |
| Tangible fixed assets suppliers | 594 792 | 5 418 520 |
| Other creditors | 567 458 | 2 776 725 |
| Financial instruments | 1 381 066 | 8 237 153 |
| Other creditors | 258 463 | 7 301 250 |
| Accrued expenses: | ||
| Personnel expenses | 4 152 667 | 17 002 321 |
| Accrued financial expenses | 628 846 | 6 503 606 |
| Rebates | 3 068 414 | 15 818 462 |
| External supplies and services | 434 109 | 8 005 824 |
| Other accrued expenses | 623 856 | 5 312 168 |
| Deferred income: | ||
| Investment subventions | 169 601 | 4 277 243 |
| Other deferred income | 148 928 | 148 932 |
| Liabilities out of scope of IFRS 7 | 9 484 884 | 64 369 806 |
| Total | 10 865 950 | 72 606 959 |
Movements occurred in provisions and accumulated impairment losses during the period ended 30 September 2016 and 30 September 2015 were as follows:
| 30.09.2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Description | Opening balance |
Exchange rate effect |
Changes to perimeter |
Increase | Utilization | Reversion | Other changes |
Closing balance |
| Impairment losses: | ||||||||
| Investment properties | 2 259 929 | - 2 259 929 | ||||||
| Tangible fixed assets | 41 690 361 | - 25 299 027 | - 14 558 715 | 1 832 619 | ||||
| Goodwill | 1 700 000 | 1 700 000 | ||||||
| Intangible assets | 366 436 | - 319 243 | 24 028 | - 3 923 | 19 242 | |||
| Other non-current assets | 10 931 182 | - 10 931 182 | ||||||
| Trade debtors | 25 345 784 | 26 702 | - 25 064 264 | 1 602 068 | 916 248 | - 392 543 | 601 499 | |
| Other debtors | 3 502 | 3 502 | ||||||
| Subtotal impairment losses | 82 297 194 | 26 702 | - 50 682 534 | 1 602 068 | 940 276 | - 28 146 292 | 4 156 862 | |
| Provisions: | ||||||||
| Litigations in course | 1 523 885 | - 24 284 | - 347 703 | 421 271 | 8 018 | 738 645 | ||
| Warranties to customers | 549 120 | - 27 | - 607 393 | 58 300 | ||||
| Restructuring | 1 492 766 | - 210 000 | 1 204 917 | 77 849 | ||||
| Other | 6 945 108 | - 3 727 360 | 73 634 | 329 268 | - 1 767 114 | 1 195 000 | ||
| Subtotal provisions | 10 510 879 | - 24 311 | - 4 892 456 | 131 934 | 1 955 456 | - 1 759 096 | 2 011 494 | |
| Subtotal impairment losses and provisions | 92 808 073 | 2 391 | - 55 574 990 | 1 734 002 | 1 955 456 | 940 276 | - 29 905 388 | 6 168 356 |
| Other losses: | ||||||||
| Investments | 36 985 875 | - 25 641 | 13 670 | - 36 969 914 | 3 990 | |||
| Write-down to net realizable value of inventories | 4 401 009 | 4 872 | - 3 354 143 | 1 170 208 | 1 319 977 | - 1 000 | 900 969 | |
| Total | 134 194 957 | 7 263 | - 58 954 774 | 2 917 880 | 1 955 456 | 2 260 253 | - 66 876 302 | 7 073 315 |
| 30.09.2015 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Description | Opening balance |
Exchange rate effect |
Changes to perimeter |
Increase | Utilization | Reversion | Other changes |
Closing balance |
| Impairment losses: | ||||||||
| Investment properties | 2 259 929 | 2 259 929 | ||||||
| Tangible fixed assets | 48 044 432 | 111 245 | - 746 221 | 47 409 456 | ||||
| Goodwill | 7 778 921 | - 132 458 | 7 646 463 | |||||
| Intangible assets | 30 833 | 343 271 | - 7 668 | 366 436 | ||||
| Other non-current assets | 10 931 182 | 10 931 182 | ||||||
| Trade debtors | 26 228 073 | - 175 864 | 1 787 074 | 1 377 307 | - 766 707 | 25 695 269 | ||
| Other debtors | 3 502 | 3 502 | ||||||
| Subtotal impairment losses | 93 016 943 | - 308 322 | 2 241 590 | 1 377 307 | 739 333 | 94 312 237 | ||
| Provisions: | ||||||||
| Litigations in course | 1 504 544 | 21 000 | - 36 823 | 1 446 721 | ||||
| Warranties to customers | 541 547 | 2 226 | 48 500 | 7 500 | 584 773 | |||
| Restructuring | 6 055 072 | 8 438 | 1 532 698 | 5 269 623 | 2 326 585 | |||
| Other | 4 694 739 | 1 420 755 | 340 072 | 58 047 | 5 833 469 | |||
| Subtotal provisions | 12 795 901 | 10 664 | 3 001 953 | 5 638 195 | 21 224 | 10 191 546 | ||
| Subtotal impairment losses and provisions | 105 812 845 | - 297 658 | 5 243 543 | 5 638 195 | 1 377 307 | 760 557 104 503 785 | ||
| Other losses: | ||||||||
| Investments | 36 985 875 | 36 985 875 | ||||||
| Write-down to net realizable value of inventories | 4 165 268 | - 31 354 | 2 912 889 | 1 456 154 | - 944 507 | 4 646 142 | ||
| Total | 146 963 988 | - 329 012 | 8 156 432 | 5 638 195 | 2 833 461 | - 183 950 146 135 802 |
Increases and decreases in provisions and impairment losses are stated on the Consolidated Income Statement as follows:
| 30.09.2016 | 30.09.2015 | |||||
|---|---|---|---|---|---|---|
| Losses Gains Total |
Losses | Gains | Total | |||
| Restated | Restated | Restated | ||||
| Cost of sales | 252 040 | 106 847 | - 145 193 | 171 815 | 118 589 | - 53 226 |
| (Increase) / decrease in production | 113 294 | 73 909 | - 39 385 | 83 054 | 90 325 | 7 271 |
| Provisions and impairment losses | 13 110 | 403 176 | 390 066 | 100 027 | 8 818 | - 91 209 |
| Profit / (loss) from discontinued operations | 2 539 436 | 3 631 777 | 1 092 341 | 7 801 536 | 8 253 924 | 452 388 |
| Total (Consolidated Income Statement) | 2 917 880 | 4 215 709 | 1 297 829 | 8 156 432 | 8 471 656 | 315 224 |
Balances and flows with related parties are summarized as follows:
| Balances | Accounts receivable | Accounts payable | |||
|---|---|---|---|---|---|
| 30.09.2016 | 31.12.2015 | 30.09.2016 | 31.12.2015 | ||
| Other subsidiaries of the parent company | 194 885 | 329 705 | 2 265 015 | 4 336 245 | |
| Joint ventures and associates | 701 013 | 9 527 339 | 1 889 020 | 1 836 792 |
| Transactions | Income | Expenditure | |||
|---|---|---|---|---|---|
| 30.09.2016 | 30.09.2015 | 30.09.2016 | 30.09.2015 | ||
| Restated | Restated | ||||
| Other subsidiaries of the parent company | 37 415 | 1 491 | 824 395 | 1 000 570 | |
| Joint ventures and associates | 17 685 502 | 21 225 200 | 22 671 682 | 16 334 969 |
Profit / (loss) from discontinued operations, after taxation, on the Consolidated Income Statement for the period ended 30 September 2016 includes the results for the five-month period ended 31 May 2016 of the companies that were classified as joint ventures at that date (notes 3 and 5). Consolidated Income Statement for the period ended 30 September 2015 was restated so as to present the results of these companies for the nine-month period ended 30 September 2015 under this caption, which can be detailed as follows:
| 30.09.2016 | 30.09.2015 | |
|---|---|---|
| Sales | 339 858 763 | 627 720 843 |
| Services rendered | 830 586 | 1 747 756 |
| Other income and gains | 6 660 223 | 15 861 833 |
| Cost of sales | 167 993 678 | 331 451 149 |
| (Increase) / decrease in production | - 2 711 434 | - 1 574 420 |
| External supplies and services | 84 495 943 | 164 868 856 |
| Staff expenses | 51 864 328 | 103 389 231 |
| Depreciation and amortisation | 20 069 407 | 37 606 236 |
| Provisions and impairment losses (increase / reduction) | - 748 574 | 2 123 607 |
| Other expenses and losses | 39 799 364 | 7 945 269 |
| Operating profit / (loss) | - 13 413 140 | - 479 496 |
| Net finance profit / (loss) | - 13 888 033 | - 33 784 110 |
| Gains and losses in associated companies | 222 216 | 246 384 |
| Gains and losses in joint ventures | 74 869 | - 1 228 849 |
| Gains and losses in investments | - 13 670 | |
| Net profit/(loss) from discontined operations, before taxation | - 27 017 758 | - 35 246 071 |
| Taxation | 3 728 804 | 1 492 560 |
| Consolidated net profit / (loss) from discontinued operations, | ||
| after taxation | - 30 746 562 | - 36 738 631 |
In the nine-month period ended 30 September 2016, the detail of Consolidated net profit / (loss) of discontinued operations, after taxation, included under Other expenses and losses EUR 36 592 671 relating the reclassification to profit or loss of the amount that translation reserve of companies excluded from consolidation (notes 3 and 4) reached at 31 May 2016 (date of exclusion) – note 11.
Cash flows of discontinued operations, which were included line by line on the Consolidated Statement of Cash Flows, are as follows:
| 30.09.2016 | 30.09.2015 | |
|---|---|---|
| Operating activities | - 10 966 545 | - 4 017 385 |
| Investment activities | 4 809 572 | 5 508 589 |
| Financing activities | 178 279 233 | - 24 433 667 |
Details of Other income and gains on the Consolidated Income Statement for the periods ended 30 September 2016 and 30 September 2015 are as follows:
| 30.09.2016 | 30.09.2015 | |
|---|---|---|
| Restated | ||
| Gains on disposals of non current investments | 925 | |
| Gains on disp. and write off of invest. prop., tang. and intang. assets | 894 159 | 112 784 |
| Supplementary revenue | 1 487 459 | 1 210 757 |
| Investment subventions | 121 782 | 122 169 |
| Tax received | 24 844 | |
| Positive exchange gains | 1 739 931 | 1 963 002 |
| Others | 317 316 | 822 077 |
| 4 585 491 | 4 231 714 |
Details of Other expenses and losses on the Consolidated Income Statement for the periods ended 30 September 2016 and 30 September 2015 are as follows:
| 30.09.2016 | 30.09.2015 Restated |
|
|---|---|---|
| Taxes | 1 030 860 | 948 466 |
| Losses on disp. and write off of invest. prop., tang. and intang. assets | 279 217 | 63 739 |
| Negative exchange gains | 1 347 538 | 1 692 936 |
| Others | 1 109 585 | 434 262 |
| 3 767 200 | 3 139 403 |
Underlying operating items on the Consolidated Income Statement are detailed as follows:
| 30.09.2016 | 30.09.2015 | |
|---|---|---|
| Recurring | Recurring | |
| Restated | ||
| Sales | 181 635 279 | 174 711 523 |
| Services rendered | 1 010 101 | 825 199 |
| Other income and gains | 3 685 847 | 3 253 291 |
| Cost of sales | 95 482 491 | 97 424 789 |
| (Increase) / decrease in production | 490 377 | - 241 677 |
| External supplies and services | 36 278 215 | 35 694 838 |
| Staff expenses | 18 748 238 | 18 154 409 |
| Impairment losses in trade debtors (increase/reduction) | - 1 491 | - 20 035 |
| Other expenses and losses | 3 504 516 | 3 072 232 |
| Recurring operating profit/(loss) before amortization, depreciation, provisions and impairment losses (except trade debtors) |
31 828 881 | 24 705 457 |
| Non-Recurring operating profit/(loss) before amortization, depreciation, provisions and impairment losses (except trade debtors) |
24 550 | - 880 709 |
| Total operating profit/(loss) before amortization, depreciation, provisions and impairment losses (except trade debtors) |
31 853 431 | 23 824 748 |
Financial results for the periods ended 30 September 2016 and 30 September 2015 were as follows:
| 30.09.2016 | 30.09.2015 | |
|---|---|---|
| Restated | ||
| Financial expenses: | ||
| Interest expenses | ||
| related to bank loans and overdrafts | 7 963 441 | 8 001 243 |
| related to non convertible bonds | 5 315 242 | 5 292 974 |
| related to finance leases | 65 202 | 11 118 |
| related to loans from related parties | 106 683 | 3 324 099 |
| others | 151 426 | 4 952 |
| 13 601 994 | 16 634 386 | |
| Losses in currency translation | ||
| related to loans | 329 786 | 1 065 649 |
| related to cash and cash equivalents | 1 066 940 | |
| 1 396 726 | 1 065 649 | |
| Cash discounts granted | 1 378 929 | 1 251 554 |
| Other finance losses | 1 314 455 | 811 858 |
| 17 692 104 | 19 763 447 |
| 30.09.2016 | 30.09.2015 | |
|---|---|---|
| Financial income: | Restated | |
| Interest income | ||
| related to bank loans | 16 075 | 48 795 |
| related to loans to related parties | 2 964 350 | 17 733 491 |
| 2 980 425 | 17 782 286 | |
| Gains in currency translation | ||
| related to loans | 286 995 | 784 669 |
| related to cash and cash equivalents | 990 539 | |
| 1 277 534 | 784 669 | |
| Cash discounts obtained | 69 878 | 81 222 |
| Other finance gains | 70 628 | 68 962 |
| 4 398 465 | 18 717 139 | |
| Finance profit / (loss) | - 13 293 639 | - 1 046 308 |
Corporate income tax accounted for in the periods ended 30 September 2016 and 30 September 2015 is detailed as follows:
| 30.09.2016 | 30.09.2015 | ||
|---|---|---|---|
| Restated | |||
| Current tax | 7 484 716 | 4 079 358 | |
| Deferred tax | - 662 416 | - 255 219 | |
| 6 822 300 | 3 824 139 |
The main activity of the Group is the production of wood based panels and derivative products through industrial plants and commercial facilities located in Portugal, Canada and South Africa.
Until 31May 2016, identifiable reportable segments were as follows:
Following the increase in share capital on 31 May 2016, described on note 3, companies referred to on note 4 were excluded and the system of internal report to chief operating decision maker was significantly changed. Geographical segmentation loose relevance and
the Group focused on type of business. Secondary activities are materially irrelevant as far as segmental report is concerned and the Group decided to present one only segment.
These consolidated financial statements were approved by the Board of Directors and authorized for issuance 10 November 2016.
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