Interim / Quarterly Report • Oct 31, 2017
Interim / Quarterly Report
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1 January - 30 September 2017
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containing information on important events occurred in the first half of 2017 in accordance with Art. 100o, para. 4, item 2 of the POSA
As of 30th of September 2017 Eurohold Bulgaria registered a consolidated profit in amount of BGN 12 million compared to a profit in amount of BGN 17 million for the same period in 2016. For the observed period the distribution of financial result was as follows: for the Group – a profit in amount of BGN 8.2 million; Non-controlling interest – a profit in amount of BGN 3.8 million. Respectively, for the first nine months of 2016: The Group realized a profit in amount of BGN 15.2 million and non-controlling interest – a profit in amount of BGN 2 million.
The consolidated gross profit of the Group Eurohold as of 30th of September 2017 increased by BGN 8.3 million and amounted to BGN 83.3 million vs. BGN 53 million for the comparable period in 2016.
The consolidated EBITDA amounted to BGN 33.7 million for the reporting period, increasing by 3.6% compared to EBITDA for the same period in 2016 amounted to BGN 32.6 million.
According to the consolidated financial statements for the first nine months of 2017, the consolidated revenues from operating activities of Eurohold Bulgaria AD increased by BGN 132.7 million reaching BGN 880.1 million.
The operating expenses increased by BGN 123.5 million - from BGN 673.3 million reaching BGN 796.8 million.
The revenues from insurance business increased by 20.7% (BGN 122.5 million) as for the current period amounted to BGN 714.9 million.
The registered operating expenses for insurance business increased by 18.3% and amounted to BGN 663.2 million for the current period vs. BGN 560.3 million as of the end of the comparable period.
The insurance sub-holding Euroins Insurance Group realized consolidated operating profit in amount of BGN 51.7 million.
The revenues from automotive activities amounted to BGN 140.9 million increasing by BGN 25.3 million.
The operating expenses for car sales and sales of spare parts increased by BGN 25.6 million and reached BGN 126.2 million.
For the observed period the automotive division realized the consolidated operating profit in amount of BGN 14.7 million.
The revenues from leasing operations increased by 17.7% and amounted to BGN 18.6 million compared to BGN 15.8 million for the same period in 2016.
The expenses from leasing operations decreased by BGN 0.5 million – from BGN 3.5 million to BGN 3 million.
For the reporting period the leasing division realized consolidated operating profit in amount of BGN 15.5 million.
The revenues from investment brokerage decreased by BGN 4.1 million to BGN 4.6 million as of the end of current period.
The expenses for investment brokerage decreased by BGN 4.4 million for the period and amounted to BGN 3.6 million.
The operating profit from investment brokerage activities amounted to BGN 1 million.
For the first nine months of 2017 Eurohold Bulgaria AD realized revenues in amount of BGN 1.0 million.
The operating expenses amounted to BGN 0.8 million.
The result from operating activities amounted to BGN 0.4 million.
The table below represents the information regarding the revenues of the subsidiaries as of 30 September 2017 compared to 30 September 2016. It also gives a comparison of EBITDA, realized by the subsidiaries of Eurohold, as well as gives a financial results before eliminations by segments.
Consolidated Interim Management Report, 30 September 2017
| Revenue by segments | 30.09.2017 | 30.09.2016 |
|---|---|---|
| 000'BGN | 000'BGN | |
| Insurance and health assurance | 715 993 | 592 884 |
| Automotive business | 148 850 | 120 547 |
| Leasing services | 19 333 | 16 785 |
| Asset management and brokerage services | 5 369 | 9 359 |
| Total subsidiaries | 889 545 | 739 575 |
| Parent company | 3 073 | 16 450 |
| Total revenue by segments | 892 618 | 756 025 |
| Intragroup eliminations | (12 529) | (7 655) |
| Consolidated revenue after eliminations, including: | 880 089 | 748 370 |
| EBITDA by segments | 30.09.2017 | 30.09.2016 |
|---|---|---|
| 000'BGN | 000'BGN | |
| Insurance and health assurance | 27 306 | 13 398 |
| Automotive business | 4 224 | 3 307 |
| Leasing services | 3 276 | 2 096 |
| Asset management and brokerage services | 621 | 233 |
| Total subsidiaries | 35 427 | 19 034 |
| Parent company | 924 | 14 288 |
| Total without eliminations | 36 351 | 33 322 |
| Intragroup eliminations | (2 621) | (756) |
| Total EBITDA | 33 730 | 32 566 |
| Financial result by segments without eliminations | 30.09.2017 | 30.09.2016 |
|---|---|---|
| 000'BGN | 000'BGN | |
| Insurance and health assurance | 24 454 | 10 178 |
| Automotive business | (43) | (194) |
| Leasing services | 81 | 85 |
| Asset management and brokerage services | 576 | 194 |
| Total subsidiaries | 25 068 | 10 263 |
| Parent company | (12 529) | 7 218 |
| Total without eliminations | 12 539 | 17 481 |
| Intragroup eliminations | (539) | (245) |
| Total | 12 000 | 17 236 |
The revenues operations of all companies in the Group realized 18.1% growth, or an increase by BGN 136.6 million before reporting intra-group eliminations. The EBITDA increased by 9.1% or by BGN 3 million before reporting intra-group eliminations.
The realized financial results of the companies in the Group before intragroup eliminations amounted to BGN 12.5 million.
The net consolidated expenses and expenses for amortization of entities in the group Eurohold amounted respectively to BGN 15 million and BGN 6.5 million, while in comparable period they amounted to BGN 10.2 million and BGN 5 million.
The other expenses increased by BGN 7.1 million and totally amounted to BGN 49.6 million.
The consolidated assets of the Group EURHOLD as of 30th of September 2017 amounted to BGN 1.292 billion compared to BGN 1.135 billion as of 31 December 2016.
The cash and deposits decreased by BGN 18 million compared to the end of 2016 as they amounted to BGN 110.6 million.
The receivables increased by BGN 56.9 million for the period reaching BGN 497.9 million. The most significant change was observed in the receivables from insurance operations. which increased by BGN 25.3 million, as well as the other receivables increased by BGN 26.4 million.
The other assets increased by BGN 104.7 million and amounted to BGN 373.8 million, of which financial assets recorded the highest growth increasing by BGN 83.2 million up to BGN 257.3 million.
The consolidated equity of the Eurohold Bulgaria AD increased by BGN 41 million and as of the end of September 2017 amounted to BGN 156.3 million. The consolidated equity of the Group Eurohold amounted to BGN 115.7 million, while the consolidated equity for non-controlling interest amounted to BGN 40.6 million.
In support of the equity the Group holds subordinated debt amounting to BGN 40.3 million compared to BGN 77.2 million at the end of 2016. The subordinated debt for the period decreased by BGN 37 million.
The total amount of equity and subordinated debt amounted to BGN 196.6 million, while as of the end of 2016 they amounted to BGN 192.5 million.
The non-current consolidated liabilities increased by 9.5% - from BGN 259.9 million to BGN 284.5 million. A major part of non-current liabilities is liabilities to banks, other financial institutions and issued bonds.
| Liabilities on loans and issued bonds: | 30.09.2017 | 2016 | % |
|---|---|---|---|
| 000'BGN | 000'BGN | Change | |
| To banks and other nonbank financial institutions | 99 423 | 107 439 | -7.5% |
| On issued bonds | 147 275 | 119 516 | 23.2% |
| Total loans | 246 698 | 226 955 | 8.7% |
The current liabilities increased by BGN 128.5 million and amounted to BGN 810.6 million for the current period.
The main part of the current liabilities are the additional insurance reserves in amount of BGN 558.3 million, as for the current reporting period they increased by BGN 49.5 million compared to the end of 2016.
On 30th of October 2017, the Financial Supervision Commission approved the Prospectus of Eurohold Bulgaria AD for Initial Public Offering of an Issue of 40,336,250 shares with a nominal value of BGN 1.00 and an issue value of BGN 1.30, as a result of the capital increase of the company, according to the decision of the General Meeting of Shareholders of the company dated 02.10.2017.
On 31st of October, 2017, the Central Bank of Ireland approved a Prospectus of Eurohold Bulgaria AD for a new bond issue in amount from EUR 40 up to EUR 100 million with a maximum interest rate of 8% per annum and a term of 5 years. The bond issue represents the next (second) tranche within the framework program approved by the Central Bank of Ireland in November 2016 for a medium-term Eurobond (EMTN) program with a limit of up to EUR 200 million.
Fitch Ratings-London-30 October 2017: Fitch Ratings has assigned Eurohold Bulgaria AD (Eurohold) a Long-Term Issuer Default Rating (IDR) of 'B'. The Outlooks are Stable. The agency has simultaneously assigned Eurohold's EUR200 million euro medium term note (EMTN) programme ratings of 'B'/'RR4'.
In the third quarter of 2017 Euroins Insurance Group (EIG) has realized consolidated gross written premiums of BGN 500 million compared to BGN 370 million in the same period of 2016. The Group has reported an unaudited consolidated profit of BGN 24.5 million compared to a profit of BGN 10.2 million in Q3 2016.
In the first nine months of 2017 Euroins Bulgaria has reported a total GWP of BGN 104.5 million compared to BGN 82.4 million written in the same period of 2016. The reason for this impressive growth of nearly 27% is the direct insurance business written through brokers both in Bulgaria locally and in Greece, Italy and Spain according to the EU directive for Freedom of services. MTPL line of business grows but so do also main nonmotor lines such as Property, Accident & Health, Liability and Travel.
Net claims incurred are up by 13.1%. The reasons for this growth are the Balance Sheet Review (BSR) completed in July 2017 and the growth of the business as a whole.
Administrative expenses have increased compared to 2016; the reasons for this growth are the substantial final costs of the first Balance Sheet Review and the beginning of the second one.
In Q3 2017 Euroins Bulgaria has reported a small profit for group purposes of BGN 169 thousand.
Pursuant to a decision of a meeting of the Financial Supervision Commission held on 20.10.2017, "Euroins" AD and the issue of securities issued by the Company are written off from the register maintained by the Financial Supervision Commission under Art. 30,
para. 1, item 3 of the Financial Supervision Commission. On 27.10.2017 in the Commercial Register was deleted the fact that the company is public.
In Q3 2017 Euroins Romania has written a total of GWP of BGN 372.5 million, which is a growth of over 36% compared to the same period of 2016. The increase is mainly due to the growth in MTPL (32.9%) but the major non-motor lines of business such as Property (24.5%), Cargo (66.9%), A&H (75.5%) and Liability (32.7%) grow even more impressively. The growth in MTPL is down to the re-segmentation of the business activities of the clients of the company that has been completed in 2014 and 2015. As a result the company started writing MTPL business in new more profitable segments by implementing a segmentation requirement of at least three criteria.
Net claims incurred grow but that is justified as the growth is lower than the growth of the written business. There is also the fading of the negative impact of the runoff.
This is another quarter for Euroins Romania where it can be witnessed the positive effect of the re-segmentation combined with the strengthening of the reserves in 2015. As a result the profit for group purposes rises to BGN 24.5 million before tax.
In the first nine months of 2017 the gross premiums written by Euroins Macedonia have registered a growth of over 5% amounting to BGN 13.6 million. Main non-motor business lines such as Property, Cargo, and Accident & Health are growing by 8.2%, 18.0% and 6.9% respectively.
Net claims incurred have increased by approximately 3%.
As a result of the ongoing initiatives of the management of the company administrative costs have registered decrease of 1%.
The result of the above is a profit for group purposes of BGN 223 thousand.
Fitch Ratings-London-30 October 2017: Fitch Ratings has assigned Euroins Romania Asigurare Reasigurare SA (Euroins Romania) an Insurer Financial Strength (IFS) rating of 'BB-'. Outlook – Stable.
In Q3 2017 Euroins Life has written total GWP of BGN 1.1 thousand, which represents a decrease of 18% when compared to the same period of 2016.
The management of the company is currently reviewing the products on offer. In addition the company also started offering on the market new life insurance solutions including online sales solutions. These initiatives, however, are still at the very beginning with the positive portfolio effect yet to be seen.
On 12 August 2016 Euroins Insurance Group has completed the acquisition of PJSC HDI Strakhuvannya Insurance Company. On 30 September the General Assembly of the Shareholders voted the company's name to be changed to PJSC Euroins Ukraine Insurance Company. The newly acquired company writes both motor and non-motor business.
In the first nine months of 2017 gross written premiums amount to BGN 6.9 million with nearly 43% of them being non-motor business. As a result of the administrative costs associated with the current restructuring of the company ongoing Euroins Ukraine has reported a loss for group purposes of BGN 1.2 million.
The previous name of Insurance Company EIG Re EAD is HDI Insurance AD. Euroins Insurance Group has acquired the company at the end of 2015. For the first six months of 2017 EIG Re has written gross premiums of BGN 10.9 million and has reported a profit of BGN 12 thousand.
With a decision voted back in October 2016 Euroins - Health Assurance was to be merged into EIG Re. The documentation required for the regulatory approval has been submitted to the Financial Supervision Commission on 31 January 2017. The approval has been given and on 27 June 2017 the merger of Euroins Health into EIG Re has been entered into the Trade Register. As a result of the transaction Euroins Health has been terminated without liquidation and EIG Re has become its universal legal successor.
The consolidated financial result of the company for the period from 01.01.2017 to 30.09.2017 is a loss amounting to BGN 780 thousand. The result for the same period in 2016 was a loss in amount of BGN 548 thousand.
The number of cars sold for the nine months of 2017 has increased by 17.1% as compared to the same period in 2016. The revenues from sale of vehicles, spare parts, lubricants and fuels increased by 25.7% while the revenues from services increased by 34.3%.
The operating expenses for the third quarter of 2017 have increased by 11.3% as compared to the same period of 2016, mainly due to the higher revenues realized in 2017 compared to 2016. The most significant growth registered the expenses for external services, which increased by 13% or BGN 816 thousand, as well as the other expenses, which increased by 22% or BGN 141 thousand, related to increased tax costs and new legislative changes in this area. The financial expenses increased by 29.9% or BGN 539 thousand due to the increased interest expenses on financial leasing contracts, as well as in expenses for interests on loan and other borrowed funds - both driven by higher realization for the period. For the period the revenues from financial operations increased by 65.9% or BGN 149 thousand compared to previous 2016, due to the increased interest revenues from loan contracts.
As of 30th of September 2017 the sales of new PC and LCV, realized by Avto Union, the automotive holding in the group of Eurohold, amounted to 3727 units as compared to 2821 units for the same period in 2016, which represents a growth of 32.1%. According to the Union of the Importers of Automobiles in Bulgaria the market for new PC and LCV has increased by 19% for the third quarter of 2017 compared to the same period of 2016. For the reporting period Opel has an increase of 5.2% in Varna and an increase by 133% for Sofia. Espace Auto OOD increased the Dacia sales by 14.4% and Renault sales - by 15.8% compared to 2016. N Auto EAD increased Nissan sales by 15%. Auto Italia EAD increased sales in all brands - FIAT by 129%, the sales of Alfa Romeo increased by 174% and Maserati - by 173%. Star Motors EOOD retains its sales of Mazda from the last
year - the reported number for the nine months of 2017 amounted to 508 units, compared to 510 units in 2016.
During the reporting period, the companies from the automobile holding have concluded fleet transactions for a total of 1158 units totaling BGN 26.1 million.
| Avto Union | Sales | % | |||
|---|---|---|---|---|---|
| Q1'2017 | Change | ||||
| January–September, 2017 |
3 727 | 2 821 | 32.1% | ||
| (YTD) | |||||
| Quarterly: | |||||
| January-March | 1 004 | 769 | 30.6% | ||
| April-June | 1 354 | 1 131 | 19.7% | ||
| July-September | 1 369 | 921 | 48.6 |
With the decisions adopted by the sole shareholder of Star Motors DOOEL - Macedonia on 02.02.2017, was successfully increased the capital of the Macedonian subsidiary with a total of EUR 100,000 and at the end of the reporting period its total value amounted to EUR 550,000.
On 29.03.2017 Avto Union AD signed an annex to the Contract for loan commitments whith Unicredit Bulbank AD through which was reduced the interest of the multipurpose credit line. According the new conditions the interest amounted to 1 month EURIBOR + 3.5%.
On the same date was signed an annex to the credit agreement of Auto Italia EAD with Unicredit Bulbank AD, through which was reduced the interest of contract. According the new conditions the interest amounted to 1-month EURIBOR + 3.5%.
On 28.04.2017 Motobul EOOD was signed an annex to the Contract for revolving bank loan with Raiffeisenbank Bulgaria EAD through which was reduced the interest rate of credit line. According thr new conditions the interest amounted to 3-month EURIBOR + 3.9%.
On the same date was signed an annex to the credit agreement of N Auto Sofia EAD and Raiffeisenbank Bulgaria EAD through which the parties agreed to increase the credit limit granted to the Borrower in the form of bank guarantees and documentary letters of credit by EUR 800,000. Thus, the total limit for the end of the reporting period granted to the borrower Star Motors EOOD amounted to EUR 4,300,000.
With a decision adopted on 20.06.2017 by Avto Union - the sole owner of the capital of Bulvaria Varna EOOD, the equity of the company was successfully increased by BGN 200,000. At the end of the reporting period the total value of the equityl of Bulvaria Varna EOOD amounted to BGN 1,457,700.
At a general meeting of bondholders, held on September 8, 2017, a decision was taken to change the parameters of the bond loan issued by "Avto Union" AD. The General Meeting of the Bondholders decided to make the following changes to the parameters of the bond issue ISIN code BG2100025126, as follows:
• The term of the issue was extended by 60 months from 10.12.2017 to 10.12.2022.
• Principal payments was changed as follows: repayment of BGN 2,000,000 from the principal to 10.06.2022 (including in equal installments of BGN 250,000) and one last principal payment of BGN 4,800,000 on 10.12.2022.
• Change of interest rate on the loan from 5.5% to 4.5% on an annual basis.
In the third quarter of 2017, Eurolease Group EAD established new company within its structure – Eurolease Auto Retail EAD. The company is entered in the Commercial Register on 27.07.2017 with UIC 204695366. The share capital amounts to BGN 1,000,000 and fully subscribed and paid in by the sole owner Eurolease Group EAD. The main activity of the company is financial leasing of used vehicles to individuals with easy application and quick approval process.
During the reporting period Eurolease Group reports consolidated profit of BGN 81 thousand compared to profit of BGN 85 thousand at the end of third quarter of 2016.
Consolidated interest income decrease by 8.85 per cent to BGN 3,667 thousand vs BGN 4,023 thousand for the comparable period. The decrease is caused by the general decline in interest rates on the market, as evidenced by the 4.55 per cent reduction in interest expenses to BGN 2,937 thousand compared to BGN 3,077 thousand at the end of the third quarter of 2016.
As at the end of the reporting other operating income increase by 36.10 per cent to BGN 8,354 thousand compared to BGN 6,138 thousand as at 30 September 2016. Similar growth is reported in regards to operating expenses, which amounted to BGN 9,281 thousand as at the end of September 2017 compared to BGN 7,086 thousand for the same period of 2016.
The significant changes in other operating income and administrative expenses are due to the consolidation of the results of the newly acquired subsidiary Sofia Motors with the results of the Eurolease Group.
Consolidated total assets are BGN 111,171 thousand vs BGN 98,016 thousand as of 31 December 2016.
Consolidated net investment in financial leases increases by 9.46 per cent to BGN 55,129 thousand in comparison to BGN 50,363 thousand at the end of 2016.
As at the end of reporting period payables to other financial institutions increase by 20.78 per cent to BGN 12,526 thousand compared to BGN 10,371 thousand as of 31 December 2016. The amount is payable by the subsidiary Eurolease Rent A Car to leasing companies that finance its activities.
Payables to banks as of 30.09.2017 amount to BGN 44,031 thousand, representing 31.32 per cent growth in comparison with the comparable period, when they amount to BGN 33,529 thousand.
As at 30 September 2017 payables under debt securities issued equal to BGN 29,643 thousand compared to BGN 28,769 thousand as at 31 December 2016.
On 06.07.2017 Eurolease Group EAD issued a corporate bond with ISIN code of the issue BG2100012173, for the amount of EUR 1,250 thousand, with maturity date July 2023 and fixed annual coupon of 3.75 per cent, payable every six-month period. Principal repayment will be made in 10 equal six-month installments starting January 2019. The bond emission is issued to support the activities of the company's subsidiaries.
Stand-alone financial result of Eurolease Group is loss of BGN 247 thousand compared to loss of BGN 198 thousand at the end of the third quarter of 2016. Total assets of the company are BGN 39,661 thousand.
Financial result of Eurolease Auto Bulgaria for the third quarter of 2017 is profit of BGN 519 thousand compared to profit of BGN 370 thousand for the comparable period.
Interest income amounts BGN 3,589 thousand compared to BGN 3,743 thousand.
The administrative expenses of the Company decrease by 9.63 per cent and at the end of reporting period amount to BGN 1,407 thousand compared to BGN 1,557 thousand at the end of the third quarter of 2016.
As of the end of September total assets of the Company amount to BGN 84,195 thousand compared to BGN 75,952 thousand at the end of 2016.
For the third quarter of 2017 Eurolease Auto managed to increase the volumes of newlygenerated business and it amounts to BGN 2,004 thousand of new leases per month on average.
As a result, the net investment in financial leases grew by 12.93 per cent, and as of September 30, 2017 amounts BGN 55,296 thousand compared to BGN 48,964 thousand as at the end of 2016. The amount of non-matured financial lease receivables is BGN 46,443 thousand vs BGN 40,811 thousand for 2016.
At the end of September 2017 equity amounts to BGN 22,154 thousand compared to BGN 21,635 thousand as of 31 December 2016.
At the end of the reporting period total liabilities of the company are BGN 62,041 thousand vs BGN 54,317 thousand as at 31 December 2016.
Bank loan payables increased by 37.31 per cent to BGN 36,031 thousand compared to BGN 26,241 thousand as of 31 December 2016. During the reporting period the Company has utilized bank loans amounting to BGN 18,667 thousand.
Company's payables under debt securities issued equal to BGN 21,151 thousand compared to BGN 22,646 thousand as at 31 December 2016.
The financial result of Eurolease Auto Romania for third quarter of 2017 is loss of BGN 77 thousand compared to loss of BGN 55 thousand for the relative period of 2016.
The financial result of Eurolease Auto Macedonia for third quarter of 2017 is loss of BGN 102 thousand compared to loss of BGN 122 thousand for the relative period of 2016.
As at 30.09.2017 total assets of the Company amount to BGN 7,365 thousand vs BGN 7,211 thousand as at 31 December 2016.
During the reporting period the net investment in financial leases stays relatively unchanged and as at the end of September 2017 amounts to BGN 5,876 thousand compared to BGN 5,819 thousand at the end of 2016.
By a loan agreement from 19.07.2017 between the parent company Eurolease Group EAD and Eurolease Auto DOOEL Skopje was granted a long-term loan amounting to EUR 1,000 thousand. The loan funds are used to partially repay liabilities to banks.
Thus, the payables to banks at the end of the reporting period decreased by 25.73% and amounted to BGN 4,707 thousand compared to BGN 6,491 thousand as at 31 December 2016.
With the conclusion of the partial repayment of liabilities to banks, Eurolease Auto Macedonia was able to renegotiate the terms of its current credit lines. This operation is expected to improve the financial results of the company and enable it to be more active on the leasing market.
Eurolease Rent A Car is a provider of short-term and long-term rent of vehicles under AVIS and BUDGET brands.
The financial result as of the company during the reporting period is loss of BGN 156 thousand compared to profit of 61 thousand as of 30 September 2016.
At the end of third quarter of 2017 the company reports decrease in interest expense as they reach BGN 410 thousand compared to BGN 435 thousand as of the end of September 2016.
At the end of the reporting period Eurolease Rent A Car reports increase of 15.81 per cent in income from rendering of services and they amount to BGN 5,992 thousand vs BGN 5,174 thousand for the comparable period. This trend is due to newly contracted long-term leases.
The administrative expenses of the Company as at 30.09.2017 increased by 18.75 per cent to BGN 6,117 thousand compared to BGN 5,151 thousand at the end of September 2016. This increase is due to operating costs related to the increased number of operating lease contracts.
Total assets of the company amount to BGN 20,008 thousand compared to BGN 16,288 thousand as of December 2016.
Total liabilities are BGN 18,915 thousand vs BGN 15,039 thousand for the comparable period.
The main activity of Autoplaza EAD involves the sale of vehicles returned from lease,renta-car and "buy-back". The company operates in cooperation with Avto Union, Eurolease Bulgaria and Eurolease–Rent-A Car.
Financial result of Autoplaza for the reporting period is profit of BGN 136 thousand compared to profit of BGN 29 thousand for the same period of 2016.
In 2016 the business was funded by a new credit line for EUR 300 thousand which allowed the company to be more active in purchase/buy-back of used vehicle from entities and individuals. This helped the company to considerably the increase the range of vehicles offered as well as its client base. In May 2017 the credit limit of Autoplaza was increased to BGN 500 thousand.
During the reporting period Autoplaza reports gross profit of BGN 388 thousand compared to BGN 151thousand as at the end of September 2016.
As of the end of September 2017 Autoplaza reports increase in interest and administrative expense, reaching respectively BGN 45 thousand and BGN 321 thousand compared to BGN 24 and BGN 275 thousand for the comparable period of 2016. The
increase is due to increased volumes of the business, as the company keeps the trend from the previous periods.
The total assets of the company amounted to BGN 2,172 thousand vs. BGN 1,289 thousand as of 31 December 2016.
The main activity of Sofia Motors is related to the rental of vehicles to individuals and small and medium enterprises.
At the end of 2016, Eurolease Group EAD acquired shares of the company and starting 2017 it consolidates the results of its activities.
The financial result of Sofia Motors as at the end of the third quarter of 2017 is profit of BGN 5 thousand compared to loss of BGN 95 thousand for the same period in 2016.
In 2016, Sofia Motors increased the volumes of generated business, which resulted in a significant increase in income from rendering of services. As of 30 September 2017 they amount BGN 1,139 thousand compared to BGN 573 thousand for the comparable period.
The total assets of the company amounted to BGN 6,772 thousand compared to BGN 4,461 thousand as at 31 December 2016
The total liabilities of the company amounted to BGN 6,845 thousand compared to BGN 4,539 thousand for the comparable reporting period.
By a decision of the sole owner of the capital - Eurolease Group EAD, on 27.07.2017 the establishment of the company Eurolease Auto Retail EAD with UIC 204695366 is entered into the Commercial Register. The share capital amounts to BGN 1 000 000 and is fully subscribed and paid by the sole owner. The main activity of the company is financial leasing of used vehicles to individuals with easy application and quick approval process.
The company is expected to start its activities within in 2017.
During the reporting period Euro-Finance AD has following the already implemented program for improvement activities toward the development of online services to individual customers, the increase in the assets under management and the participation in corporate consulting and restructuring projects.
The company realized revenues of BGN 1 815 thousand for the first nine months of 2017, generated by:
The expenses for the reported period, related to the day-to-day operations of the company, amounted to BGN 1 236 thousand.
The development of the company is as expected, in view of the economic environment, the expenses remain close to the estimated. A part of the revenue of Euro-Finance are formed from the services that the company actively has been developing since 2012.
Euro-Finance is an investment intermediary - member of the Frankfurt Stock Exchange, giving direct access to the Xetra® through the trading platform EFOCS. The company offers trading on Forex, indices, equities and precious metals through contracts for difference (CFD) via EF MetaTrader 5 platform.
The equity of the company is the highest among the other intermediaries, according to the data from the site of the FSC.
At the traditional ceremony, held at the beginning of 2017, the Bulgarian Stock Exchange Sofia AD has awarded Euro-Finance AD at the second place for an investment intermediary with the highest turnover in 2016.
An extraordinary general meeting of the shareholders of Euro-Finance AD was held on 03.08.2017 and it was decided to increase the capital of the company from BGN 14,100,000 to BGN 40,000,000 by issuing new 25,900,000 shares with a nominal and issue value of BGN 1.00 each, of the same type and class as the existing share issue of the company. Each of the shareholders acquires such a share of the new shares that corresponds to its share in the capital before the increase. The capital increase is entered in the Commercial Register. At the date of preparation of this report, BGN 6,500,002 has been paid into the capital of Euro-Finance AD.
As of 30 September 2017 the financial result of Eurohold Bulgaria AD on stand alone base is a loss in amount of BGN 12.529 million compared to a profit in amount of BGN 7.218 million for the same period last year. The financial result for Q3'2016 was influenced by the realized profit from sale of securities in amount of BGN 15.455.
Eurohold Bulgaria AD as a holding company does not carry out regular commercial transactions, and in this respect, its main (operating) revenues are of a financial nature, as the most significant of them - revenues from financial operations occur in different reporting periods and do not have a permanent occurrence. The total revenues of the company over the reporting period amounted to BGN 2.932 million, of which BGN 0.527 million revenues from financial operations, BGN 2.140 million interest revenues and BGN 0.265 million represented dividend revenues. For comparison, as of the end of September'2016 the revenues from financial operations amounted to BGN 15.455 million, the interest revenues amounted to BGN 0.530 million and dividend in amount of BGN 0.245 million.
The operating expenses increased by 69.2% as amounted to BGN 15.6 million. This increase was mainly due to the interest expenses, which reached BGN 12.9 million compared to BGN 7 million for the comparable period in 2016. The interest expense growth was reported in relation to the five-year bonds issued in December'2016 at the amount of BGN 111.863 million on the EMTN Programme approved by the Central Bank of Ireland.
As of the end of H1'2017 the company's assets amounted to BGN 543.495 million compared to BGN 534.908 million as of the end of 2016.
During the reporting period the investments in subsidiaries increased by BGN 34 million due to a contribution in the equity of Euroins Insurance Group AD amounted to BGN 27.5 million, as well as a contribution in the equity of Eurofinance AD in amount of BGN 6.5 million. On an extraordinary session of GMS of Eurofinance AD held on 03.08.2017 was
voted for capital increase of the company from BGN 14 100 000 to BGN 40 000 000 through issuance of new 25 900 000 shares with nominal and emission value of BGN 1.00 each one, the same type and class as the existing shares of the company.
The long-term assets decreased by BGN 24.2 million due to the reduction of non-current receivables from related parties by BGN 24.3 million. The short-term assets decreased by BGN 5.7 million, mainly due to the increasing of the other current receivables by BGN 6.6 million.
The total equity increased to BGN 295.8 million compared to BGN 275.9 million at the end of 2016. In February 2017 the company increased its share capital by BGN 34 million following a successful capital increase procedure. The company has provided subordinated liabilities in amount of BGN 14.2 million as of 30.09.2017 compared to BGN 53.7 million as of 31.12.2016. The total equity and subordinated debts amounted to BGN 310 million compared to BGN 329.6 at the end of 2016.
The company's liabilities increased by BGN 23.7 million to BGN 229 million as of 30.09.2017. For the period the non-current liabilities increased by BGN 5.3 million to BGN 147.6 million comparted to BGN 142.3 million at the end of 2016. The current liabilities increased by BGN 17.319 million to BGN 80.323 million. The main growth of current liabilities was due to an increase in current liabilities on loans from financial and non-financial institutions by BGN 26.5 million and an increase of other short-term liabilities by BGN 8 million. On the other hand, the short-term liabilities to related parties decreased by BGN 15.9 million.
On the 2nd of October, 2017, was held an extraordinary meeting of shareholders of Eurohold Bulgaria AD. The General meeting of shareholders adopted the following decisions:
The main purpose of the decisions of the General Meeting of shareholders taken under items 1 and 2 is to reduce the indebtedness of Eurohold Bulgaria AD, repayment of debts of the company, incl. subordinated term debt and high interest bond loan, by issuing a new loan at a lower interest rate as well as other long-term and short-term debt. The reduction of the liabilities of Eurohold Bulgaria AD aims to improve the equity /debt ratio, profitability and capital adequacy. The interest expenses will be reduced, which will lead to an increase in free cash and higher net profit and hence the possibility of dividend distribution.
On 30th of October 2017, the Financial Supervision Commission approved the Prospectus of Eurohold Bulgaria AD for Initial Public Offering of an Issue of 40,336,250 shares with a nominal value of BGN 1.00 and an issue value of BGN 1.30, as a result of the capital increase of the company, according to the decision of the General Meeting of Shareholders of the company dated 02.10.2017.
There were no other important events occurred in the reporting period.
The global financial crisis, which started in 2007, led to a slowdown in economic growth and an increase of unemployment in many countries (including US, EU countries,Russia, and Japan), limited access to financing resources and a significant devaluation of financial assets worldwide. The financial crisis also caused significant disturbances on the global financial market which led to reduced confidence in financial markets and fewer investments in financial instruments. As a result, companies in the financial sector started to experience difficulties in maintaining liquidity and raising capital. A further deterioration of the business climate may lead to an even higher unemployment rate and reduced income in the Balkan countries (Bulgaria, Romania, Macedonia and Serbia), which in turn may lead to a decreased level of consumption. The low levels of consumption will affect the sales of the Issuer's subsidiaries.
A future deterioration of the business climate and the lack of certainty regarding the trends on the global financial market, particularly on the Balkan financial markets, may also have an adverse effect on the development prospects of the emitent, its results and financial status.
The macroeconomic situation and the economic growth of the Balkans (Bulgaria, Romania, Macedonia and Serbia) are of key importance for the development of the Group, this includes government policies of the respective countries, particularly the regulatory policy and the decisions made by the respective National Banks which affect
the monetary policy, interests and exchange rates, taxes, GDP, inflation rate, budget deficit, foreign debt, unemployment rate and income structure.
The changes in the demographic structure, the mortality or morbidity rate are also important factors, affecting the Group's development. The above mentioned external factors, as well as other unfavorable political, military or diplomatic developments, leading to social instability, may shrink the consumers expenditures as well as restrict the funds for insurance policies and car leasing.
As a result, the gross underwritten premiums (GWP) in the insurance business may decrease and clients may discontinue their insurance policies, as well as postpone new car purchases and, correspondingly, new car leases. Any deterioration of the region's macroeconomic indicators may also adversely affect insurance products, car sales and
signing of new lease contracts. Consequently, there is a risk, if the business environment broadly deteriorated, the Group's sales would be lower than originally planned. Furthermore, the general changes in the government policy and regulatory systems may lead to an increase of the Group's operating expenses and capital requirements. If the above mentioned factors occur, fully or partially, they could have a significant adverse impact on the Group's results and financial status.
This is the risk resulting from the political process in the country - risk of political instability, changes in the governing principles, legislation and economic policy. The political risk is directly related to the likelihood of unfavorable changes in the direction of the government's long-term policies. Consequently, there exists the possibility of negative changes in the business climate.
The long-term political environment in the Balkans is stable and does not imply greater risks for the future economic policy of the countries. The EU integration of the countries in the region, combined with their consistent domestic and foreign policies, ensure the absence of shocks and significant changes in the currently conducted policies in the near future.
The credit risk relates to the possibility for worsening of the international credit ratings of Bulgaria, Romania, Macedonia and Serbia. The low credit ratings may lead to higher interest rates and more restrictive financing conditions for business enterprises, including for the Company.
At the end of year 2015 the credit agency STANDART&POOR'S confirmed the long term and short term debt rating of Bulgaria in foreign and local currency as "BB+/B" with a stable perspective. The assigned value is supported by the low government debt as well as by the moderate foreign liabilities. The considerably low per capita income and the weak institutional environment are specified as limiting factors. Standard&Poor's judge, that the financial sector continues being faced with important challenges, but they also point out, that the efforts made have been directed towards the elimination of risks,
considering the upcoming quality appraisal of the assets of the banking system in year 2016.
In December 2015 the international rating agency "Fitch" confirmed the long term debt rating of Bulgaria in foreign currency as "BBB-" and the long term rating in local currency as"BBB".The expectations about both indicators are "stable". The country's top rating is approved as being "BBB+", as well as the short term credit rating in foreign currency as "F3". The Fitch appraisal indicates that the current economic development of the country in 2015 is better than expected by the agency, which determines the increase in the forecast for economic growth, mostly associated with the high foreign demand. After the growth during the first three quarters of 2015 averaged 2,7%, the international agency revised its current year expectations in upward direction from 1,2% to 2,5%, which was the same estimate as made in June. According to the Bulgarian Ministry of finance, the Fitch expectations are also higher for the next two years, when the growth will be more balanced. The company expects for years 2016 and 2017 the average growth of the Bulgarian Real GDP to reach 2,6%.
The inflation risk is associated with the possible inflation adverse impact to real returns on investments. Inflation may affect the expenses of the Company, because large part of the Company's liabilities are related to interest. Their servicing depends on the prevailing current interest rates, which reflect the levels of inflation in the country. Therefore, maintaining low inflation rates in the countries the Company operates, is considered a significant factor.
This risk is related to the possibility of a devaluation of the local currency. For Bulgaria this is the risk of premature collapse of the Monetary Board in the conditions of fixed exchange rate of the national currency. Considering the adopted policy by the government and the Central Bank, it is expected the currency board to be maintained until the country's admission into the Euro zone. In Romania, Serbia and Macedonia the currency exchange rates are determined by the market conditions and the central banks intervene and balance the short-term fluctuations of currency exchange rates in occurance of stress situations caused by singular external factors.
Any significant devaluation of the national currencies in the region (Bulgaria, Romania, Macedonia and Serbia) could have a significant adverse effect on the business in the country, including the Company. Risks exist when the revenues and expenses of a firm are denominated in different currencies.
The interest rate risk is related to the possibility of changes in the prevailing interest rates in the country. Its impact is reflected in the possibility that the net income of the companies will decrease as a result of increase of interest rates at which the Company funds its activity. Interest rate risk is classified as a general macro-economic risk, because the major precondition for interest rates change is the instability of the financial system as a whole. This risk can be managed by a balanced use of multiple sources of funding. A typical example of this risk is the global economic crisis, caused by the liquidity problems of the large mortgage institutions in the U.S.A. and Europe. As a result of the crisis, the required interest rate premiums were reconsidered and re-evaluated
and increased globally. The effect of this crisis is noticeable in Eastern Europe and the Balkans and restricts the free access to borrowed funding.
The increase of interest rates, ceteris paribus, will impact the cost of funding used by the Company in executing different business projects. At the same time, it can adversely affect the amount of the Company expenses, because large portion of the Company's liabilities are related to interests and their maintenance depends on the current interest rates.
EUROHOLD BULGARIA AD is a holding company, and any deterioration in the operating results, financial status and development prospects of its subsidiaries may adversely affect the results financial condition of the Company. As far as the Company's business is related to management of assets of other companies, the Company cannot be assigned to one particular segment of the national economy and is exposed to the industry risks of its subsidiaries. Generally, the companies from the group of EUROHOLD BULGARIA AD operate in two main sectors: financial (insurance, leasing, financial intermediary) and car sales.
The main risk for the EUROHOLD BULGARIA AD's activity is the possibility of decreasing the revenues from sales of the companies it holds shares in. This affects the received dividends. Respectively, this may have a negative effect on the Company's revenue growth as well as profitability.
The activity of the Company's subsidiaries are adversely affected by the continued increase of the market prices of fuels and electricity which are subject to international supply and demand and are determined by factors beyond their control.
The biggest risk is concentrated in the insurance segment of the Company which generates the biggest portion of the group's revenue. The companies with the biggest share in revenues, respectively in the financial result of the insurance segment are the operating on the Bulgarian and Romanian market companies from the group of EuroIns.
The major risk of the leasing business line is in the ability to provide acceptable price of sufficient funds to expand the leasing portfolio. The leading company of the leasing subholding, EuroLease Auto AD has issued bonds, registered for trade on BSE-Sofia AD. The investor may obtain detailed information concerning the business risks from the company's prospectus.
The financial business line of the group is represented by investment intermediary Euro-Finance AD. The risk associated with the financial intermediation, brokerage and asset management is related to the high volatility of the debt and equity markets, the changes in the people's financial disposition and investing culture.
The automotive subholding Avto Union AD which operates in Bulgaria and Macedonia is engaged in the field of new car sales, rent-a-car services and after-sales services. The business activity depends directly on the permissions and authorizations granted to the companies from the group of Avto Union by the respective car manufacturers. The termination or revocation of such rights can drastically decrease the sales of the group.
This is relevant, especially in the context of global restructuring of the car industry. Business environment of the car industry is influenced by domestic factors related to the ability of the population to buy, funding availability, business attitudes, inventories, etc.
The worse results of one or several subsidiaries can lead to worse results on a consolidated basis. Respectively, this relates to the shares' price of the company, because the market price of the shares reflects the business potential and the assets of the economic group as a whole.
The future earnings and market value of the Company depend on the strategy, chosen by the senior management of the Company and its subsidiaries. Choosing the wrong strategy may lead to significant losses. EuroHold seeks to manage the risk of strategic mistakes by continuously monitoring various stages in the implementation of its marketing strategy and the results from it. This is crucial for the ability to respond on time if change in the strategic development plan is needed. Untimely or inappropriate strategy changes may also have a significant negative impact on the Company's operating results and financial status.
The following risks are related to the management of the Company:
The financial risk represents an additional uncertainty when the Company uses borrowed funds. This additional financial uncertainty increases the business risk. When part of the funds used by the company for financing its activities are borrowed or raised by issuing bonds, the repayment of these funds reperesent a fixed liability.
The larger the share of long-term debt to equity, the greater the possibility for default in payments of fixed liabilities will be. The increase in this indicator represents an increase of overall financial risk.
Another group of indicators is related to the flow of revenues which enable the payment of the company's liabilities. An indicator, which can be used is the one reflecting the coverage of the fixed liabilities (interests). This indicator refers to the amount of the fixed interest payments divided by the income before payment of interests and taxation. This is a good indicator of a firm's ability to service its long term liabilities.
The acceptable or "normal" level of financial risk depends on the business risk. If there is a low business risk for the company, it can be expected for the investors to take bigger financial risk and vice versa.
EuroHold operates in several Balkan countries (Bulgaria, Romania, Macedonia and Serbia), where the national currency of each of the countries, except in Bulgaria, is freely convertible, which relative value to other currencies is determined by the free financial markets. In Bulgaria, since 1997 the local currency has been pegged to the Euro. Abrupt changes in the macro-framework of any of the countries, where the Company actively operates, may have a negative effect on its consolidated results. However, EuroHold reports its consolidated financial results in Bulgaria in Bulgarian lev, which in turn is pegged to the Euro, which also changes its value according other global currencies, but is significantly less exposed to any dramatic fluctuations.
The liquidity risk is related to the possibility for the Company to fail to repay its maturing financial liabilities fully and on time when they are due for payment. The good financial indicators of profitability and capitalization of a company do not guarantee the smooth covering of the current payables. Liquidity risk may occur due to delayed payments from clients. EUROHOLD BULGARIA AD aims to minimize this risk by optimal management of the cash flows within the group. The Group implements an approach which ensures the necessary liquidity resource for covering the incurred liabilities in normal or extraordinary conditions without unacceptable loss or compromising the reputation of the separate companies in the group.
The subsidiaries exercise financial planning to cover the payment of their current expenses and liabilities for a period of ninety days, including servicing of the financial liabilities. This financial planning minimizes and excludes the potential effect of unexpected circumstances.
The Company's management supports the efforts of the subsidiaries in the group for raising bank resources for investments and using this kind of financing for providing of working capital. The amount of these borrowed funds is kept at defined level and is approved upon proving the economic effectiveness for each company. The policy of the management is aimed at raising financing resources from the market in the form of shares and bonds then invested in the subsidiaries as loans for funding their projects. The management participates in the increase of their capital as well.
The relationships with related parties arise as a result of contracts for temporary financial aid to the subsidiarycompanies and transactions, related to the normal business activity of the subsidiary companies. The risk of possible transactions between the companies within the Group under terms that are different from those on the market refers to taking a risk to achieve low profitability from provided intercompany financing. Another risk that can be assumed refers to intercompany transactions failing to realize enough revenues and thus poor profit for the respective company. On a consolidated level, this can affect negatively the profitability of the entire group.There are constant transactions between the parent Company and its subsidiaries, as well as among the subsidiaries themselves, which arise in the normal course of activity of the companies. All transactions with
related parties are conducted underterms that are no different from the normal market prices and are in compliance with IAS24.
EUROHOLD BULGARIA AD operates through its subsidiary companies which means that its financial results directly depends on the financial results, the developments and the perspectives of the subsidiaries. One of the main objectives of EUROHOLD BULGARIA AD is to realize significant synergy between its subsidiary companies as a result of the integration of the three business lines – insurance, leasing and car sales. Bad results of one or several subsidiary companies can lead to a deterioration of the consolidated financial results. This, in turn, affects the Company's share price which can change as a result of the expectations of the investors about the perspectives of the company.
The elements of risk management consist of specific procedures for timely prevention and resolution of possible problems in the operations of EUROHOLD BULGARIA AD They include current analysis in the following directions:
In the case of unexpected events, incorrect assessment of current market trends, as well as many other micro- and macroeconomic factors, could impact the judgment of management. The only way to overcome this risk is to work with experienced professionals, as well as to maintain and update a comprehensive database on recent developments and trends in all markets of operation.
The Group has implemented an integrated risk management system based on the Enterprise Risk
Management model. The risk management process covers all the Group's business segments and is aimed at identifying, analyzing and limiting risks in all areas of the Group's operations. In particular, the Group minimizes insurance risk by properly selecting and actively monitoring the insurance portfolio, matching the duration of assets and liabilities, as well as minimizing FX exposure. An effective risk management system allows the Group to maintain stability and a strong financial position, despite the ongoing crisis on the global financial markets.
The risk management procedures aim to:
There were no significant transactions between related parties during the reporting period.
31 October 2017
Asen Minchev,
Executive Member of the Management Board
| In thousand BGN | Notes | 30.9.2017 | 30.9.2016 |
|---|---|---|---|
| Revenues from operating activities | |||
| Insurance revenue | 3 | 714 885 | 592 383 |
| Car sales revenue | 5 | 140 900 | 115 621 |
| Leasing revenue | 6 | 18 558 | 15 763 |
| Revenue from asset management and brokerage | 8 | 4 568 | 8 624 |
| Revenue from the activities of the parent company | 10 | 1 178 | 15 979 |
| 880 089 | 748 370 | ||
| Expenses for operating activities | |||
| Insurance expenses | 4 | (663 160) | (560 346) |
| Cost of cars and spare parts sold | (126 156) | (100 530) | |
| Leasing financial expenses | 7 | (3 045) | (3 511) |
| Financial expenses for asset management and brokerage | 9 | (3 576) | (7 993) |
| Financial expenses for the activities of the parent company | 11 | (815) | (920) |
| (796 752) | (673 300) | ||
| Gross Profit | 83 337 | 75 070 | |
| Other income/expenses | 12 | (3 754) | (5 712) |
| Other operating expenses | 13 | (45 853) | (36 792) |
| EBITDA | 33 730 | 32 566 | |
| Financial expenses | 14 | (14 824) | (10 378) |
| Financial revenue | 15 | 344 | 137 |
| Foreign exchange gains/losses | 18 | (511) | (4) |
| EBTDA | 18 739 | 22 321 | |
| Depreciation and amortization | 16 | (6 517) | (5 026) |
| EBT | 12 222 | 17 295 | |
| Taxes | 17 | (222) | (59) |
| Net income/loss for the period | 12 000 | 17 236 | |
| Attributable to: | |||
| Equity holders of the parent | 8 202 | 15 153 | |
| Non-controlling interests | 3 798 | 2 083 |
Prepared by: Signed on behalf of BoD: Procurator:
/I. Hristov/ /А. Minchev/ /H.Stoev/
30.10.2017
| In thousand BGN | Notes | 30.9.2017 | 30.9.2016 |
|---|---|---|---|
| Profit/loss for the year | 44 | 12 000 | 17 236 |
| Other comprehensive income | |||
| Other comprehensive income to be reclassified to profit or loss in subsequent periods: |
|||
| Net (loss)/gain on financial assets available for sale | 31 | (239) | |
| Income tax effect | - | - | |
| 31 | (239) | ||
| Exchange differences on translating foreign operations | (1 444) | 113 | |
| Income tax effect | - | - | |
| (1 444) | 113 | ||
| Net other comprehensive income to be reclassified to profit or loss in subsequent periods |
(1 413) | (126) | |
| Other comprehensive income not to be reclassified to profit or loss in subsequent periods: |
|||
| Impairment of assets | - | - | |
| Income tax effect | - | - | |
| - | - | ||
| Net other comprehensive income not to be reclassified to profit or loss in subsequent periods |
- | - | |
| Other comprehensive income for the year, net of tax | (1 413) | (126) | |
| Total comprehensive income for the period, net of tax | 10 587 | 17 110 | |
| Attributable to: | |||
| Equity holders of the parent | 6 954 | 15 040 | |
| Non-controlling interests | 3 633 | 2 070 | |
| 10 587 | 17 110 |
Prepared by: Signed on behalf of BoD: Procurator:
/I. Hristov/ /А. Minchev/ /H.Stoev/
30.10.2017
| In thousand BGN | Notes | 30.9.2017 | 31.12.2016 |
|---|---|---|---|
| ASSETS | |||
| Cash and cash equivalents | 19 | 97 975 | 100 948 |
| Deposits at banks | 20 | 12 674 | 27 662 |
| 110 649 | 128 610 | ||
| Receivables | |||
| Insurance receivables | 21 | 103 887 | 78 549 |
| Trade and other receivables | 22 | 26 671 | 21 572 |
| Other receivables | 23 | 367 311 | 340 865 |
| 497 869 | 440 986 | ||
| Other assets | |||
| Property, plant and equipment | 24, 24.2-5 |
45 540 | 34 515 |
| Intangible assets | 26 | 2 033 | 1 739 |
| Inventory | 27 | 49 233 | 40 212 |
| Financial assets | 28 | 257 333 | 174 097 |
| Other assets | 29 | 19 633 | 18 517 |
| 373 772 | 269 080 | ||
| Investments | |||
| Land and buildings | 24, 24.1 | 16 294 | 16 207 |
| Investment property | 25 | 13 166 | 13 215 |
| Investments in subsidiaries and associates | 30 | 3 547 | 171 |
| Other financial investments | 31 | 2 565 | 2 159 |
| Non-current receivables | 32 | 83 819 | 74 087 |
| 119 391 | 105 839 | ||
| Goodwill | 33 | 189 999 | 189 999 |
| TOTAL ASSETS | 1 291 680 | 1 134 514 |
| In thousand BGN | Notes | 30.9.2017 | 31.12.2016 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Issued capital | 43 | 158 415 | 124 399 |
| Premium reserves from the issue of securities | 38 714 | 38 714 | |
| General reserves | 8 640 | 8 640 | |
| Revaluation reserves | (4 000) | (1 346) | |
| Special reserves | (62 232) | (55 108) | |
| Retained earnings | (32 071) | (44 659) | |
| Current period result | 44 | 8 202 | 8 474 |
| Equity attributable to equity holders of the parent | 115 668 | 79 114 | |
| Non-controlling interests | 45 | 40 642 | 36 145 |
| Total equity | 156 310 | 115 259 | |
| Subordinated debts | 34 | 40 267 | 77 253 |
| Total liabilities and subordinated debts | 196 577 | 192 512 | |
| LIABILITIES | |||
| Bank and non- bank loans | 35 | 99 423 | 107 439 |
| Obligations on bond issues | 36 | 147 275 | 119 516 |
| Non-current liabilities | 37 | 37 818 | 32 937 |
| Current liabilities | 38 | 17 603 | 30 186 |
| Trade and other payables | 39 | 114 267 | 67 404 |
| Payables to reinsurers | 40 | 120 206 | 75 532 |
| Deferred tax liabilities | 41 | 228 | 168 |
| 536 820 | 433 182 | ||
| Insurance reserves | 42 | 558 283 | 508 820 |
| 558 283 | 508 820 | ||
| Total liabilities | 1 095 103 | 942 002 | |
| TOTAL EQUITY, LIABILITIES and SUBORDINATED DEBTS |
1 291 680 | 1 134 514 |
Prepared by: Signed on behalf of BoD: Procurator:
30.10.2017
/I. Hristov/ /А. Minchev/ /H.Stoev/
| In thousand BGN | Notes | 30.9.2017 | 30.9.2016 |
|---|---|---|---|
| Cash flow from operating activities | |||
| Net income/(loss) for the period before taxation: | 12 222 | 17 295 | |
| Adjustments for: | |||
| Depreciation | 16 | 6 517 | 5 026 |
| Foreign exchange gain/loss | (1 421) | 1 788 | |
| Impairment loss recognized on assets | 179 | 405 | |
| Interest expense | 17 168 | 12 920 | |
| Interest revenue | (8 354) | (5 569) | |
| Dividend income | (954) | (685) | |
| Profit/Loss from sale of investments | (5 244) | (16 883) | |
| Other non-cash adjustments | 222 | (59) | |
| Operating profit before change in working capital | 20 335 | 14 238 | |
| Change in trade and other receivables | (66 615) | (54 111) | |
| Change in inventory | (10 137) | 2 102 | |
| Change in trade and other payables and other adjustments | 76 694 | 35 114 | |
| Cash generated from operations | 20 277 | (2 657) | |
| Interest paid/received | 466 | 449 | |
| Income taxes paid | (707) | (186) | |
| Net cash flow from operating activities | 20 036 | (2 394) | |
| Investing activities | |||
| Purchase of property, plant and equipment | (3 612) | (2 427) | |
| Proceeds from the disposal of property, plant and equipment | 5 920 | 3 161 | |
| Loans granted | (18 988) | (15 461) | |
| Repayment of loans, including financial leases | 29 556 | 5 615 | |
| Interest received on loans granted | 251 | 346 | |
| Purchase of investments | (493 540) | (135 526) | |
| Sale of investments | 442 261 | 105 094 | |
| Dividends received | 1 349 | 103 | |
| Effect of exchange rate changes | 3 115 | (693) | |
| Other proceeds/ payments from investing activities | (7 047) | 8 573 | |
| Net cash flow from investing activities | (40 735) | (31 215) |
| In thousand BGN | Notes | 30.9.2017 | 30.9.2016 |
|---|---|---|---|
| Cash flow from financing activities | |||
| Proceeds from the issue of securities | 34 000 | - | |
| Proceeds from loans | 253 943 | 109 817 | |
| Repayment of loans | (258 354) | (49 762) | |
| Repayment of financial leases | (7 942) | (1 885) | |
| Payment of interest, taxes, commissions on investment loans | (4 626) | (3 726) | |
| Dividends paid | - | (571) | |
| Other proceeds/ payments from financing activities | 705 | 933 | |
| Net cash flow from financing activities | 17 726 | 54 806 | |
| Net cash flows | (2 973) | 21 197 | |
| Cash and cash equivalents at the beginning of the period | 19 | 100 948 | 71 552 |
| Cash and cash equivalents at the end of the period | 19 | 97 975 | 92 749 |
30.10.2017
Prepared by: Signed on behalf of BoD: Procurator:
/I. Hristov/ /А. Minchev/ /H.Stoev/
| Reserves | Share | Non | ||||||
|---|---|---|---|---|---|---|---|---|
| In thousand BGN | Share capital |
Share premium |
General | Other | Financial result |
holders' equity |
controlling interests |
Total equity |
| Balance as at 1 January 2016 | 127 237 | 38 714 | 8 640 | (52 597) | (36 907) | 85 087 | 24 075 | 109 162 |
| Dividends | - | - | - | - | (366) | (366) | - | (366) |
| Consolidation procedures effects | (2 838) | - | - | 1 022 | - | (1 816) | - | (1 816) |
| Other changes | - | - | - | (4 162) | (7 386) | (11 548) | 10 392 | (1 156) |
| Net income for the period (restated*) |
- | - | - | - | 8 474 | 8 474 | 1 750 | 10 224 |
| Other comprehensive income: | ||||||||
| Exchange differences on translating foreign operations |
- | - | - | (583) | - | (583) | (36) | (619) |
| Change in the fair value of | ||||||||
| financial assets | - | - | - | (134) | - | (134) | (36) | (170) |
| Total other comprehensive income | - | - | - | (717) | - | (717) | (72) | (789) |
| Total comprehensive income | - | - | - | (717) | 8 474 | 7 757 | 1 678 | 9 435 |
| Balance as at 31 December | ||||||||
| 2016 | 124 399 | 38 714 | 8 640 | (56 454) | (36 185) | 79 114 | 36 145 | 115 259 |
| Balance as at 1 January 2017 | 124 399 | 38 714 | 8 640 | (56 454) | (36 185) | 79 114 | 36 145 | 115 259 |
| Issue of share capital | 34 000 | - | - | - | - | 34 000 | - | 34 000 |
| Dividends | - | - | - | - | (1 613) | (1 613) | - | (1 613) |
| Consolidation procedures effects | 16 | - | - | - | - | 16 | - | 16 |
| Other changes | - | - | - | (8 530) | 5 727 | (2 803) | 864 | (1 939) |
| Net income for the period | - | - | - | - | 8 202 | 8 202 | 3 798 | 12 000 |
| Other comprehensive income: | ||||||||
| Exchange differences on translating foreign operations |
- | - | - | (1 276) | - | (1 276) | (168) | (1 444) |
| Change in the fair value of | ||||||||
| financial instruments | - | - | - | 28 | - | 28 | 3 | 31 |
| Total other comprehensive income | - | - | - | (1 248) | - | (1 248) | (165) | (1 413) |
| Total comprehensive income | - | - | - | (1 248) | 8 202 | 6 954 | 3 633 | 10 587 |
| Balance as of 30 September 2017 |
158 415 | 38 714 | 8 640 | (66 232) | (23 869) | 115 668 | 40 642 | 156 310 |
Prepared by: Signed on behalf of BoD: Procurator:
/I. Hristov/ /А. Minchev/ /H.Stoev/
30.10.2017
| In thousand BGN | 30.9.2017 | 30.9.2017 | 30.9.2017 | 30.9.2017 | 30.9.2017 | 30.9.2017 | 30.9.2017 | |
|---|---|---|---|---|---|---|---|---|
| Asset | ||||||||
| manage | ||||||||
| No | Insurance | Leasing | ment and | Parent | ||||
| tes | Consolidated | business | Automotive | business | brokerage | company | Elimination | |
| Revenues from operating activities | ||||||||
| Insurance revenue | 3 | 714 885 | 715 993 | - | - | - | - | (1 108) |
| Car sales revenue | 5 | 140 900 | - | 148 850 | - | - | - | (7 950) |
| Leasing revenue | 6 | 18 558 | - | - | 19 333 | - | - | (775) |
| Revenue from asset management and | ||||||||
| brokerage | 8 | 4 568 | - | - | - | 5 369 | - | (801) |
| Revenue from the activities of the parent | ||||||||
| company | 10 | 1 178 | - | - | - | - | 3 073 | (1 895) |
| 880 089 | 715 993 | 148 850 | 19 333 | 5 369 | 3 073 | (12 529) | ||
| Expenses for operating activities | ||||||||
| Insurance expenses | 4 | (663 160) | (668 606) | - | - | - | - | 5 446 |
| Cost of cars and spare parts sold | (126 156) | - | (126 167) | - | - | - | 11 | |
| Leasing financial expenses | 7 | (3 045) | - | - | (3 276) | - | - | 231 |
| Financial expenses for asset management | ||||||||
| and brokerage | 9 | (3 576) | - | - | - | (3 578) | - | 2 |
| Financial expenses for the activities of the | ||||||||
| parent company | 11 | (815) | - | - | - | - | (815) | - |
| (796 752) | (668 606) | (126 167) | (3 276) | (3 578) | (815) | 5 690 | ||
| Gross Profit | 83 337 | 47 387 | 22 683 | 16 057 | 1 791 | 2 258 | (6 839) | |
| Other income/expenses | 12 | (3 754) | - | - | (6 485) | 24 | - | 2 707 |
| Other operating expenses | 13 | (45 853) | (20 081) | (18 459) | (6 296) | (1 194) | (1 334) | 1 511 |
| EBITDA | 33 730 | 27 306 | 4 224 | 3 276 | 621 | 924 | (2 621) | |
| Financial expenses | 14 | (14 824) | (1 644) | (2 342) | - | - | (12 936) | 2 098 |
| Financial revenue | 15 | 344 | - | 360 | - | - | - | (16) |
| Foreign exchange gains/losses | 18 | (511) | - | - | - | - | (511) | - |
| EBTDA | 18 739 | 25 662 | 2 242 | 3 276 | 621 | (12 523) | (539) | |
| Depreciation and amortization | 16 | (6 517) | (1 001) | (2 273) | (3 195) | (42) | (6) | - |
| EBT | 12 222 | 24 661 | (31) | 81 | 579 | (12 529) | (539) | |
| Taxes | 17 | (222) | (207) | (12) | - | (3) | - | - |
| Net income/loss for the period | 12 000 | 24 454 | (43) | 81 | 576 | (12 529) | (539) |
| In thousand BGN | 30.9.2016 | 30.9.2016 | 30.9.2016 | 30.9.2016 | 30.9.2016 | 30.9.2016 | 30.9.2016 | |
|---|---|---|---|---|---|---|---|---|
| Asset | ||||||||
| manage | ||||||||
| No tes |
Consolidated | Insurance business |
Automotive | Leasing business |
ment and brokerage |
Parent company |
Elimination | |
| Revenues from operating activities | ||||||||
| Insurance revenue | 3 | 592 383 | 592 884 | - | - | - | - | (501) |
| Car sales revenue | 5 | 115 621 | - | 120 547 | - | - | - | (4 926) |
| Leasing revenue | 6 | 15 763 | - | - | 16 785 | - | - | (1 022) |
| Revenue from asset management and | ||||||||
| brokerage | 8 | 8 624 | - | - | - | 9 359 | - | (735) |
| Revenue from the activities of the parent | ||||||||
| company | 10 | 15 979 | - | - | - | - | 16 450 | (471) |
| 748 370 | 592 884 | 120 547 | 16 785 | 9 359 | 16 450 | (7 655) | ||
| Expenses for operating activities | ||||||||
| Insurance expenses | 4 | (560 346) | (566 014) | - | - | - | - | 5 668 |
| Cost of cars and spare parts sold | (100 530) | - | (100 532) | - | - | - | 2 | |
| Leasing financial expenses | 7 | (3 511) | - | - | (3 651) | - | - | 140 |
| Financial expenses for asset management | ||||||||
| and brokerage | 9 | (7 993) | - | - | - | (7 994) | - | 1 |
| Financial expenses for the activities of the | ||||||||
| parent company | 11 | (920) | - | - | - | - | (920) | - |
| (673 300) | (566 014) | (100 532) | (3 651) | (7 994) | (920) | 5 811 | ||
| Gross Profit | 75 070 | 26 870 | 20 015 | 13 134 | 1 365 | 15 530 | (1 844) | |
| Other income/expenses | 12 | (5 712) | - | 4 | (5 716) | - | - | - |
| Other operating expenses | 13 | (36 792) | (13 472) | (16 712) | (5 322) | (1 132) | (1 242) | 1 088 |
| EBITDA | 32 566 | 13 398 | 3 307 | 2 096 | 233 | 14 288 | (756) | |
| Financial expenses | 14 | (10 378) | (2 102) | (1 803) | - | - | (7 060) | 587 |
| Financial revenue | 15 | 137 | - | 213 | - | - | - | (76) |
| Foreign exchange gains/losses | 18 | (4) | - | - | - | - | (4) | - |
| EBTDA | 22 321 | 11 296 | 1 717 | 2 096 | 233 | 7 224 | (245) | |
| Depreciation and amortization | 16 | (5 026) | (1 062) | (1 911) | (2 011) | (36) | (6) | - |
| EBT | 17 295 | 10 234 | (194) | 85 | 197 | 7 218 | (245) | |
| Taxes | 17 | (59) | (56) | - | - | (3) | - | - |
| Net income/loss for the period | 17 236 | 10 178 | (194) | 85 | 194 | 7 218 | (245) |
Found in 1996, Eurohold Bulgaria AD operates in Bulgaria, Romania and Macedonia. The company is the owner of a large number of subsidiaries within the sectors of insurance, financial services and sales of cars.
Eurohold Bulgaria AD is a public joint stock company established pursuant to the provisions of article 122 of the Law for Public Offering of Securities and article 261 of the Commerce Law.
The company is registered in Sofia City Court under corporate file 14436/2006 and is formed through the merger of Eurohold AD registered under corporate file № 13770/1996 as per the inventory of Sofia City Court, and Starcom Holding AD, registered under corporate file № 6333/1995 as per the inventory of Sofia City Court.
Eurohold Bulgaria has its seat and registered address in the city of Sofia, 43 Hristofor Kolumb Blvd.
The managing bodies of the company are: the general meeting of shareholders, the supervisory board /two-tier system/ and the managing board.
The scope of business of Eurohold Bulgaria AD is: acquisition, management, assessment and sales of participations in Bulgarian and foreign companies, acquisition, management and sales of bonds, acquisition, assessment and sales of patents, granting patent use licenses to companies in which the company participates, funding companies, in which the company participates.
The investment portfolio of Eurohold Bulgaria AD comprises of three economic sectors: insurance, finance and automobiles. The insurance sector has the biggest share in the holding's portfolio, and the automobile sector is the newest and most rapidly developing line.
| Company | % of participation in the share capital |
|---|---|
| Euroins Insurance Group AD* | 89.36% |
| Indirect participation through EIG AD: | |
| Insurance Company Euroins AD | 94.91% |
| Euroins Romania Insurance AD | 98.50% |
| Euroins Insurance AD Macedonia | 93.36% |
| Euroins Life Insurance EAD | 100.00% |
| Insurance Company EIG Re AD | 100.00% |
| Euroins Ukraine AD | 98.32% |
*direct participation
| Company | % of participation in the share capital |
|---|---|
| Euro Finance AD | 99.99% |
| Eurolease Group EAD* | 100.00% |
| Indirect participation through Eurolease Group EAD: |
|
| Eurolease Auto EAD | 100.00% |
| Eurolease Auto Romania AD | 77.98% |
|---|---|
| Eurolease Auto Skopje AD | 100.00% |
| Eurolease Rent a Car EOOD | 100.00% |
| Auto Plaza EAD | 100.00% |
| Sofia Motors EOOD | 100.00% |
| Eurolease Auto Retail EAD | 100.00% |
*direct participation
| Company | % of participation in the share capital |
|---|---|
| Avto Union AD* | 99.98% |
| Indirect participation through AU AD: | |
| Bulvaria Varna EOOD | 100.00% |
| N Auto Sofia AD | 100.00% |
| Espas Auto OOD | 51.00% |
| EA Properties EOOD | 51.00% |
| Daru Car AD | 99.84% |
| Auto Italia EAD | 100.00% |
| Bulvaria Holding EAD | 100.00% |
| Star Motors EOOD | 100.00% |
| Star Motors DOOEL | 100.00% |
| Star Motors SH.P.K. | 100.00% |
| Auto Union Service EOOD | 100.00% |
| Motobul EOOD | 100.00% |
| Bopar Pro OOD | 99.00% |
*direct participation
The interim consolidated financial statements of Eurohold Bulgaria AD are prepared in compliance with all International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations of the Standing Interpretation Committee (SIC), interpretations of the IFRS interpretation committee (IFRIC), which are effectively in force and are adopted by the Commission of the European Union.
The Group has considered all standards and interpretations applicable to its activity as at the date of preparation of the present financial statement.
The interim consolidated financial statement is drafted in compliance with the historic cost principle, excluding the investment property and those financial instruments and financial liabilities, which are measured at fair value.
The Group retains the information presentation format in its financial statements down the periods. Where necessary the comparative information is reclassified to be in accordance with the changes occurred in the current year.
The Consolidated Financial Statements contain consolidated statement of financial position, consolidated statement of profit or loss, consolidated statement of other comprehensive income, consolidated statement of cash flows, and consolidated statement of changes in equity as at 30.9.2017. These statements comprise of the parent-company and all subsidiaries. A subsidiary is a company, which is consolidated by the parent company by holding, directly or indirectly, of more than 50% of the shares with voting rights in the capital or through the possibility for management of its financial and operating policy for the purposes of obtaining economic benefits from its operations.
The full consolidation method is applied. The statements are consolidated line by line, whereas the items such as assets, liabilities, property, incomes and costs, are summed. All internal transactions and balances between the companies within the group are eliminated. Counter elements: equity, financial, business, calculation of goodwill as at the date of acquisition, are eliminated.
Non-controlled participation in the net assets of subsidiaries is defined depending on the shareholder structure of the subsidiaries as at the date of the statement of financial position.
With respect to business combinations including companies under common control, the Group has chosen to apply the purchase method according to IFRS 3 – Business Combinations. The Group has chosen this accounting policy regarding these transactions, because at the end of the reporting period they are outside of the scope of IFRS 3 and there are no instructions about them in the existing IFRSs. As per IAS 8 in the absence of a standard or an interpretation that specifically applies to a transaction, other event or condition, management must use its judgment in developing and applying an accounting policy.
The Bulgarian Lev (BGN) is the functional and reporting currency of the group. Data presented in the consolidated statement and the attachments thereto are in thousand BGN (000'BGN). Since 1 January 1999, the Bulgarian Lev is pegged to the EURO at the exchange rate: BGN 1,95583 for EUR 1. Cash, receivables and payables denominated in foreign currency are reported in the BGN equivalent on the basis of the exchange rate as at the date of the operation and are revaluated on annual basis using the official exchange rate of the Bulgarian National Bank on the last working day of the year.
Upon preparing the financial statement in compliance with IAS, the group's management is required to apply approximate estimates and assumptions, which affect the reported assets and liabilities, and the disclosure of the contingent assets and liabilities as at the date
of the balance sheet. Despite the estimates are based on the management's knowledge of current developments, the actual results may vary from the estimates used.
The Group's income is recognized on the accrual basis and to the extent economic benefits are obtained by the Group and as far as the incomes may be reliably measured.
Upon sales of goods incomes are recognized when all material risks and benefits from the title of goods are transferred to the buyer.
Upon provision of services, incomes are recognized considering the stage of completion of the transaction as at the date of the financial report, if such stage may be reliably measured, as well as the costs incurred for the transaction.
Dividend incomes are recognized upon certifying the right to obtain them.
Dividends declared from subsidiaries for the financial year are recognized in the consolidated financial statement of comprehensive income as internal accounts and thus they are not being considered for the formation of the financial result.
The Eurohold Group generates financial incomes mainly from the following operations:
Costs within the group are recognized at the time of occurrence thereof and on the accruals and comparability basis.
Costs that might directly be related to the respective operating activity, are presented by their functional purpose. All other costs are presented as follows.
The administrative costs are recognized as costs incurred during the year, and are relevant to the management and administration of the group companies,
including costs that relate to the administrative staff, officers, office expenses, and other outsourcing.
Net financial costs include: costs occurred in relation with investment operations, negative differences from financial instruments operations and currency operations, costs for interests under granted bank loans and obligatory issues, as well as commissions.
Prepaid costs (deferred costs) are forwarded for recognition as a current cost for the period contracts they pertain to, are performed.
Other operating incomes and costs include items of secondary character in relation to the main activity of the group companies.
Interest incomes and costs are recognized in the Statement of Profit or loss using the effective interest rate method. The effective interest rate is the rate for discounting the expected cash payments and proceeds during the term of the financial asset or liability up to the net book value of the respective asset or liability. The effective interest rate is calculated upon the initial recognition of the financial asset or liability and is not adjusted afterwards.
The calculation of the effective interest rate includes all received or paid commissions, transaction costs, as well s discounts or premiums, which are integral part of the effective interest rate.
Transaction costs are internally inherent costs directly related to the financial asset or liability acquisition, issue or derecognition.
The interest incomes and expenses stated in the Statement of profit or loss include: Interests recognized on the basis of effective interest rate under financial assets and liabilities carried at amortized value.
The unearned financial income (interest) represents the difference between the gross and net investment in leasing contract, whereas the gross investment in the leasing contract is the amount of the minimum leasing payments and non-guaranteed remaining value charged for the leaser.
The interest incomes under leasing operations (financial income) are allocated for the term of the leasing contract and are recognized on the basis of constant periodic rate of return from the leaser's net investment.
Fees and commissions costs, which are integral part of the effective interest rate for a financial asset or liability are included in the calculation of the effective interest rate.
Other fees and commissions incomes, including logistic services fees, insurance and other intermediation fees, are recognized upon providing the respective services.
The other fees and commissions costs relevant mainly to banking services, are recognized upon receipt of the respective services.
The operating segment is a component of the Group, which deals with activities, from which incomes may be generated and costs may be sustained, including incomes and costs pertaining to transactions with each of the other Group's components.
For the purposes of management, the Group is organized in business units on the basis of products and services they render and includes the following segments subject to reporting:
In 2013, the Company sold its real estates segment companies.
General insurance premiums are accounted on аnnual basis.
Gross written premiums under general insurance are the premiums under general insurance or co-insurance contracts, which are concluded during the year, regardless premiums may fully or partially related to a later accounting period. Premiums are disclosed gross of paid commissions to intermediaries.
The earned part of written insurance premiums, including for unexpired insurance contracts, is recognized as an income. Written insurance premiums are recognized as at the date of conclusion of the insurance contracts.
Premiums paid to reinsurers are recognized as cost in compliance with the received reinsurance services.
The written health insurance premiums are recognized as income on the basis of the annual premium due by the insured individuals for the premium period beginning during the financial year, or the due lump sum premium for the entire cover period for one year health insurance contracts concluded during the financial year.
The gross written health insurance premiums are not recognized when the future cash receipts thereof are not sure. Written health insurance premiums are stated gross of commissions due to agents.
The written life insurance premiums are recognized as income on the basis of the annual premium due by the insured individuals for the premium period beginning during the financial year, or the due lump sum premium
for the entire cover period for one year health insurance contracts concluded during the financial year.
The gross written life insurance premiums are not recognized when the future cash receipts thereof are not sure. Written health insurance premiums are stated gross of commissions due to agents.
The unearned premium reserve comprises of that part of written gross insurance/ health insurance premiums, which is calculated to be earned during the next or further financial periods. The unearned premium reserve consists of charged and recognized insurance premium incomes during the reporting period, less the premiums ceded to reinsurers, which should be recognized during the next financial year or during further financial periods. The reserve is calculated separately for each insurance/ health insurance contract using the proportionate daily basis method. The unearned premium reserve is calculated net of commissions to intermediaries, advertising and other acquisition costs.
This reserve is established for covering risks for the period from the end of the financial period to the date of expiry of the respective insurance/ health insurance contract, in order to cover payments and costs expected to exceed the unearned premium reserve established.
The methodology for determining technical reserves applies the Chain Ladder Method, based on the value of the claims paid for a sufficiently long period of time (usually over 10 years). The IBNR reserve is calculated taking into account the difference between the estimated loss value by year of event and the amount of claims incurred at the date of the financial statements.
Claims occurred due to general insurance and health insurance include claims and claim handling costs payable during the financial year, together with the change in the outstanding claim reserve.
The management believes that the gross outstanding claims reserve and the respective share of the reinsurers' reserve are fairly presented on the basis of the information available at that time, that the final obligations will change depending on further information and events, and significant adjustments of the initially charged amount may be needed. The outstanding claims reserve adjustments found in previous years are stated in the financial statements for the period adjustments are made in, and are disclosed separately, if material. Methods used and estimates made for the calculation of the reserve, are reviewed on regular basis.
In the normal course of business, the insurance companies within the Group cede risk to reinsurers for the purpose of limiting their net loss potential through risk diversification. Reinsurance activity does not relieve the respective company from its direct obligations to its policyholders.
Reinsurance assets include the balance due from reinsurance companies for ceded insurance liabilities. Amounts recoverable from reinsurers are estimated in a manner consistent with the outstanding claims reserves or settled claims associated with reinsured policies.
Premiums and claims associated with these reinsurance contracts are considered income and cost in the way they would be considered if reinsurance was direct activity, whereas taking into account the classification of reinsurance business products.
Ceded (or accepted) premiums and benefits reimbursed (or paid claims) are presented in the statement of profit or loss and the statement of financial position of the respective company on gross basis.
Contracts that give rise to a significant transfer of insurance risk are accounted for as insurance. Amounts recoverable under such contracts are recognized in the same year as the related claim.
Premiums under long-term reinsurance contracts are accounted together with the term of validity of related insurance policies, by using assumptions similar to those for accounting of respective policies.
Amounts recoverable under reinsurance contracts are assessed for impairment at each statement of financial position date. Such assets are deemed impaired if there is objective evidence as a result of an event that has occurred after its initial recognition.
Deferred acquisition costs represent the amount of acquisition costs deducted while calculating the unearned premium reserve. They are defined as that part of the acquisition costs under contracts applicable at the end of the period set as percentage in the insurancetechnical scheme and associated to the time between the end of the reporting period and the date of expiration of the insurance/ health insurance contract. Current acquisition costs are recognized in full as a cost during the reporting period.
Commission expenses consist of accrued commissions to intermediaries and profit participation, which is paid to the policyholders/ health insured individuals in case of low claims ratio as pay back. Indirect acquisition expenses include advertising expenses and costs arising from the writing or renewing insurance/ health insurance contracts.
The leasing activity of the Group involves rent of vehicles, industrial equipment, real estate and others, mainly on finance lease contracts.
The finance lease contract is an agreement under which the lessor gives to the lessee the right of use of a particular asset for an agreed term against reward. Lease contract is recorded as finance when the contract transfers to the lessee all substantial risks and benefits associated with the ownership of the asset.
Typical indicators considered by the Group for determining if all significant risks and benefits have been transferred include: present value of minimum lease payments in comparison with the beginning of the lease contract; the term of the lease contract in comparison with the economic life of the hired asset and also whether the lessee will acquire ownership over the leased asset at the end of the term of finance lease contract. All other leasing contracts, which do not transfer substantially all risks and benefits of ownership of the asset, are classified as operating leases.
Minimum lease payments are the payments that the lessee will or may be required to make during the term of the leasing contract. From the Group's point of view, minimum lease payments also include the residual value of the asset guaranteed by a third party, not related to the Group, provided that such party is financially able to fulfill its commitments to the guarantee or to the contract for redemption. In the minimum lease payments, the Group also includes the cost of exercising possible option, which the lessee has for the purchase of the asset, and at the beginning of the lease contract it is to a large extent certain that the option will be exercised.
Minimum lease payments do not include conditional rents, as well as costs of services and taxes to be paid by the Group and subsequently re-invoiced to the lessee.
A distinction is made between the beginning of the lease contract and the beginning of the term of the lease contract. Beginning of the lease contract is the earlier of the two dates – of the lease agreement or of the commitment of the parties to the main conditions of the lease contract. To this date: the lease contract is classified as finance or operating lease, and in the case of finance lease, the amounts to be recognized at the beginning of the term of the lease contract are determined. The beginning of the term of the lease contract is the date from which the lessee may exercise the right to use the leased asset. This is also the date on which the Group initially recognizes the claim on the lease.
Initially, the Group recognizes a claim under finance lease, equal to its net investment, which includes the present value of minimum lease payments and any unsecured residual value for the Group. The present value is calculated by discounting minimum lease payments due by the inherent to the lease contract interest rate. Initial direct costs are included in the calculation of the claim under financial lease. During the term of the lease contract the Group accrues financial income (income from interest on financial lease) on the net investment.
Received lease payments are treated as a reduction of net investment (repayment of principal) and recognition of financial income in a manner to ensure a constant rate of return on the net investment. Consequently, the net investment in finance lease contracts is presented net, after deduction of individual and portfolio provisions for uncollectability.
The financial intermediation activity is related to transactions with financial instruments. They are classified as held for trading.
Financial instruments are measured upon acquisition at acquisition cost, which includes their fair value plus all transaction expenses.
Financial instruments are further measured at fair value, which is the sale, stock exchange or market price.
The Group accounts its financial assets as follows:
Derivatives are off-balance sheet instruments whose value is defined on the basis of interest rates, exchange rates or other market prices. Derivatives are effective means to manage market risk and restricting the exposure to specific contractor.
Derivatives most commonly used are:
Contractual terms and conditions are fixed through standard documents.
The same market and credit risk control procedures as for the other financial instruments also apply for the derivatives. They are aggregated with the other exposures for the purposes of monitoring the common exposure to specific contractor and are managed within the frames of the limits approved for this contractor.
Derivatives are held both for trading and as hedging instruments used for interest and currency risk management. Derivatives held for trading are measured at fair value and profits and losses are carried in the cost and statement of profit or loss as a result from business operations.
Derivatives used as hedging instrument are recognized in compliance with the accounting treatment of hedged item. Criteria to recognize a derivative as hedging derivative are: availability of documented evidence for the intent to hedge specific instrument and such hedging instrument should ensure reliable basis for risk elimination.
When a hedged exposure is closed, the hedging instrument is recognized as held for trading at fair value. Profit and loss are recognized immediately in the cost and statement of profit or loss in analogy to the hedged instrument.
Hedging transactions that are terminated prior the hedged exposure are measured at fair value in the profit or loss and are carried for the period of existence of the hedged exposure.
Business combinations are accounted by using the purchase method. This method requires the assignee to recognize, on the date of acquisition, the acquired differentiated assets, undertaken liabilities and participation, which is not controlling the acquired entity, separately from the goodwill. Any costs directly pertaining to the acquisition are carried in the statement of profit or loss for the period.
Differentiated acquired assets and undertaken liabilities and contingent obligations within a business combination are measured at fair value on the date of acquisition, regardless of the extent of non-controlled participation. The Group is able to measure participations, which are not controlling for the acquired entity, either at fair value, or as proportional share in the differentiated net assets of the acquired entity.
The acquisition cost excess above the share of assignee in the net fair value of differentiated assets, liabilities and contingent obligations of acquisitions, is carried as goodwill. In case the acquisition cost is less than the share of investor in the fair values of the company's net assets, the difference is recognized directly in the statement of comprehensive income.
The current tax includes the tax amount, which should be paid over the expected taxable profit for the period on the basis of effective tax rate valid on the day of preparation of the balance sheet and all adjustments of due tax for previous years.
The group calculates the income tax in compliance with the applicable legislation. The income tax is calculated on the bases of taxable profit after adjustments of the financial result in accordance with the Law for Corporate Income Tax.
Deferred tax is calculated using the balance sheet method for all temporary differences between the net book value as per the financial statements and the amounts used for taxation purposes.
The deferred tax is calculated on the basis of the tax rate that is expected to apply upon the realization of the asset or the settlement of the liability. The effect from changes in the tax rates on the deferred tax is accounted in the statement of profit or loss, except in cases when it is about sums, which are earlier accrued or accounted directly in equity.
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which carry forward tax losses and tax credits can be utilized. Deferred tax assets are reduced to the extent is its no longer probable that related tax benefits will be realized.
Pursuant to the Bulgarian tax legislation, income tax is binding for the companies. The income tax rate for 2016 is 10% of the taxable profit.
All Group companies, excluding the health insurance company, the insurance company in Romania and the insurance company in Macedonia, have VAT registration and accrue 20% upon carrying taxable transactions.
Pursuant to the Law for Corporate Income Tax, payment of incomes to foreign individuals or legal entities is subject to withholding tax within the territory of the Republic of Bulgaria.
Withholding tax is not due provided the foreign legal entity has proved grounds for application of the Agreements for Avoidance of Double Taxation before tax rate or applicable tax rate on the day of expiration of the tax payment term.
Fixed tangible assets are measured at acquisition cost, less the amount of accrued amortization and possible impairment losses.
The group has fixed the value materiality threshold to BGN 700, under which acquired assets, regardless they have the characteristics of fixed assets, are accounted as current expense at the time of acquisition thereof.
Fixed tangible assets are initially measured:
At acquisition cost, which includes: purchase price (including duties and nonrefundable taxes), all direct costs for making the asset in working condition according to its purpose – for assets acquired from external sources;
At fair value: for assets obtained as a result of free of charge transaction;
At evaluation: approved by the court, and all direct costs for making the asset in working condition according to its purpose – for assets acquired as a contribution of physical assets.
Borrowing costs directly related to acquisition, construction or production of eligible asset are included in the acquisition cost (cost) of this asset. All other borrowing costs are accounted on current basis in the profit or loss for the period.
Further costs for repairs and maintenance are accounted in the statement of profit or loss at the time of incurrence thereof, unless there are clear evidences that their incurrence will result in increased economic benefits from the use of this asset. In such case, these costs are capitalized to the carrying amount of the asset.
Upon sales of fixed assets, the difference between the net book value and the sales price of the asset is accounted as profit or loss in the statement of profit or loss, "Other Incomes" item.
Fixed tangible assets are derecognized from the balance sheet upon sale or when the asset is finally decommissioned and no further economic benefits are expected after derecognition.
The Group applies straight-line method of amortization. Amortization begins from the month following the month of acquisition thereof. Land and assets in process of construction are not amortized.
The useful life by groups of assets depends on: the usual wear and tear, equipment specificity,
future intentions for use and the probable moral aging.
The estimated useful lives by groups of assets are as follows:
| Group of Assets | Useful life in years |
|---|---|
| Buildings | 25-46 |
| Plant and equipment | 3-10 |
| Vehicles | 4-6 |
| Fixtures and fittings | 3-19 |
| Computers | 2-5 |
Net book values of fixed tangible assets are subject to review for impairment, when events or changes in circumstances have occurred, which evidence that the net book value might permanently differ from their recoverable amount. If there are indicators that the estimated recoverable value is less than their net book value, the latter is adjusted up to the recoverable value of assets.
Impairment losses are recognized as expense in the statement of profit or loss during the year of occurrence thereof.
Intangible assets are presented in the financial statement at cost, less the accumulated amortization and possible impairment losses.
The Group applies straight-line method of amortization of intangible assets at expected useful lives of 5-7 years.
Net book value of intangible assets is subject to review for impairment, when events or changes in circumstances have occurred, which evidence that their net book value might exceed their recoverable value.
Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, or use in supply of services or for administrative purposes. Investment property is measured on the basis of present fair value with any change therein recognized in profit or loss.
After initial recognition, goodwill is accounted at acquisition cost, less accumulated impairment losses.
The positive goodwill upon acquisition of associated company is accounted in the balance sheet as part of the value of investment in the associated company.
The positive goodwill is reviewed for impairment on annual basis and is carried at carrying amount less the respective accumulated impairment losses. The net book value of positive goodwill pertaining to the sold company is included in the profits and losses from sale of subsidiary/ associated company.
The Group recognizes the undiscounted amount of estimated costs relevant to annual leaves that are expected to be paid against the employees' service for the ended period as a liability.
A defined contribution plan is a postemployment benefit plan under which the Group pays contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. The Government of Bulgaria is responsible for providing pensions under a defined contribution pension plan. The Group's contributions to the defined contribution pension plan are recognized as an employee benefit expense in profit or loss on current basis.
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.
The Group's net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current
and prior periods; that benefit is discounted to determine its present value.
The Group has obligation to pay amounts to employees who retire in compliance with the requirements of article 222, § 3 of the Labor Code (LC) in Bulgaria. Pursuant to these provisions of LC, upon termination of employment agreement with an employee who is entitled to pension, the employer pays a compensation within the amount of two monthly gross salaries. In case the worker or employee has 10 or more years service as at the date of retirement, the compensations amounts to six monthly gross salaries. As at the balance sheet date the management measures the approximate amount of possible benefits for all employees using the method of estimate credit units.
Termination benefits are recognized as an expense when the Group is committed demonstrably, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy.
Termination benefits for voluntary redundancies are recognized as an expense if the Group has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting period, then they are discounted to their present value.
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a legal or constructive obligation to pay this amount as a result of past service provided by the
employee, and the obligation can be estimated reliably.
The Group does recognize as a liability the undiscounted amount of annual leave costs expected to be paid in exchange for the employee's service for the period completed.
Investments in subsidiaries are measured at costs in the separate statement of the parentcompany.
The companies in which the parent-company holds between 20% and 50% of the voting rights and may significantly affect, but not to perform control functions, are considered associated companies.
Investments in associated companies are accounted by using the equity method. By using the equity method, the investment in associated company is carried in the statement of financial position at acquisition cost, plus the changes in the Group's share in the net assets of the associated entity after the acquisition. The goodwill related to the associated entity is included in the net book value of the investment and is not amortized. The statement of profit or loss represents the share from the associated entity's operating results. The profit share is presented at the face side of the statement.
Financial assets within the scope of IAS 39 are classified as financial assets at fair value in the profit or loss, loans and receivables, held-tomaturity investments, available-for-sale financial assets or derivatives defined as hedging instruments in effective hedge, where appropriate. The Group classifies its financial instruments at their initial recognition.
Group's financial assets include cash and short-term deposits, trade and other
receivables, financial instruments and financial instrument derivatives quoted and unquoted on the stock exchange.
Financial assets at fair value in profit or loss include financial assets held for trading and those designated at fair value at inception. Financial assets, which are usually acquired for the purposes of selling in the near term, are classified as held for trading.
Investments held-to-maturity are financial assets, which are non-derivative and has fixed or determinable payments and fixed maturity, that the Group has the positive intention and ability to hold to maturity.
Initially, these investments are recognized at acquisition cost, which includes the amount of consideration paid for acquisition of the investment. All transaction costs directly related to the acquisition are also included in the acquisition cost. After the initial measurement, held-to-maturity investments are carried at amortized cost by using the method of the effective interest rate. Gains and losses from held-to-maturity investments are recognized in the statement of profit or loss when the investment is derecognized or impaired.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
Such financial assets are initially recognized at acquisition cost, which is the fair value paid for acquisition of financial assets. All directly attributable acquisition transaction costs, are also included in the acquisition cost. Subsequent to initial recognition, loans and receivables are measured at amortized cost
using the effective interest rate method. Gains and losses from loans and receivables are recognized in the statement of profit or loss when derecognized or impaired, as well as through the amortization process.
Financial assets available for sale are nonderivative financial assets that are so classified and are not classified in any of the three categories listed above.
Initially, these investments are presented at fair value. Subsequent to initial recognition, financial assets available for sale are measured at fair value. Unrealized gains and losses from fair value are carried in separate item of the other comprehensive income until the financial assets are not derecognized or are not defined as impaired. Upon derecognition or impairment, cumulative gains and losses previously recognized in equity, are recognized in the statement of profit or loss.
Derivative financial instruments are classified as held-for-trading, unless they are effective hedging instruments. All derivatives are carried as assets, when their fair values are positive and as liabilities when the fair values are negative.
Materials and goods are measured at delivery cost. Their value includes the sum of all purchase costs, as well as other costs incurred in relation to the delivery thereof to their current location and condition.
Derecognition of materials and goods upon their consumption is at specifically determined or weighted average value depending on segments.
Net realizable value of inventory is carried at sales price less the costs for finishing and the costs incurred for the realization of sale, and it is defined with view of marketing, moral aging and development of expected sales prices.
When carrying amount of inventory exceeds the net realizable value, it is reduced to the extent of the net realizable value. Such reduction is carried as other current expenses. Inventory related to the production segment are presented in compliance with the IFRS requirements on terminated activities.
Receivables are measured at amortized cost, which usually corresponds to the nominal value. Impairment is estimated for the purposes of meeting the expected loss on the basis of separate measurement of individual arrangements.
Liability provisions include expected costs related to obligations under guarantees, restructuring, etc., as well as deferred tax asset.
Current tax payables and current tax receivables are recognized in the balance sheet as tax calculated on taxable income for the year adjusted for the tax on taxable income for previous years and paid taxes.
The share capital is presented at its nominal value pursuant to the court decisions for registration. Equity that does not belong to the economic group /uncontrolled participation/ is part of the net assets, including from the net
result of the subsidiaries for the year, which may be attributed to participations, which are not directly or indirectly held by the parentcompany.
Financial liabilities are recognized during the period of loan with the amount of gained proceeds, principal, less the transaction expenses. During subsequent periods financial liabilities are measured at amortized cost, equal to the capitalized value, when applying the effective interest rate method. In the statement of profit or loss, loan expenses are recognized during the period of loan term.
Current liabilities, such as payables to suppliers, group and associated companies and other payables, are measured at amortized cost, which is usually equal to the nominal value.
Accruals recognized as liabilities includes payments received in relation to subsequent years income.
Implementing its activity, the Group companies are exposed to diverse financial risks: market risk (including currency risk, risk from change of financial instruments fair value under the impact of market interest rates and price risk), credit risk, liquidity risk and risk from changes in future cash flows as a result of a change in the market interest rates.
The comprehensive risk management program focuses on the unpredictability of financial markets and seeks to minimize the possible adverse effects on the financial result of the Group.
The Group is exposed to currency risk through payments in foreign currency and through its assets and liabilities, which are denominated in foreign currency. As a result of foreign currency exposures, gains and losses occur, which are carried in the cost and statement of profit or loss. These exposures include the cash assets of the Group, which are not denominated in the currency used in the local companies' financial statements.
The group has no investments in other countries, except in the countries it operates – Bulgaria, Romania and Macedonia. In case the local currency is exposed to currency risk, it is managed through investments in assets denominated in Euro.
The group is exposed to interest risk in relation to the used bank and trade loans as part of the loans obtained have floating interest rate agreed as basis interest (EURIBOR/LIBOR) increased with the respective allowance. The interest rates are specified in the respective appendixes.
The Group's credit risk is mainly related to trade and financial receivables. The amounts stated in the statement of financial position are on net basis, excluding the provisions for doubtful receivables determined as such by the management on the basis of previous experience and current economic conditions.
Liquidity risk is that the group may encounter difficulties in servicing its financial obligations when they become payable. Policy in this field is aimed at ensuring that there will be enough cash available to service its maturing obligations, including in exceptional and unforeseen conditions. The management's objective is to maintain continuous balance between continuity and flexibility of financial resources by using adequate forms of funding. The group's management is responsible for managing he liquidity risk and involves maintaining enough cash available, arranging
adequate credit lines, preparation of analysis and update of cash flows estimates.
The table below presents an analysis of the consolidated assets and liabilities of Eurohold Bulgaria AD by maturity periods based on the remaining period from the balance sheet date to the date of realization of the asset or liability:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
The principal or the most advantageous market must be accessible to the Company.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
External valuers are involved for valuation of significant assets, such as the positive goodwill.
The statement of cash flows shows the Group's cash flows for the year in relation to operating, investment and financial activity during the year, the change in cash and cash equivalents for the year, cash and cash equivalents at the beginning and at the end of the year.
The operating cash flows are calculated as result for the year adjusted with the non-cash operating positions, changes in net turnover capital and corporate tax.
Investment activity cash flows include payments in relation to purchase and sale of fixed assets and cash flows related to the purchase and sale of entities and operations. Purchase and sale of other securities, which are not cash and cash equivalents, are also included in the investment activity.
Financial activity cash flows include changes in the amount or composition of share capital and the related costs, the borrowings and the repayment of interest bearing loans, purchase, and sale of own shares and payment of dividends.
Cash and cash equivalents include bank overdraft, liquidity cash and securities for term less than three months.
| 3. Revenue from insurance business | 30.9.2017 | 30.9.2016 |
|---|---|---|
| BGN '000 | BGN '000 | |
| Gross premiums written from insurance | 499 614 | 369 475 |
| Received recoveries from reinsurers | 97 398 | 83 878 |
| Positive change in the gross provision for unearned premiums and unexpired risk reserve |
66 | 248 |
| Positive change in reinsurers' share in unearned premium reserve | 32 198 | 3 614 |
| Positive change in reinsurers' share in reported but not settled claim reserve (RBNS) and incurred but not reported claim reserve (IBNR) |
6 468 | - |
| Positive change in other technical reserves | 29 | 43 428 |
| Recourse income | 7 644 | 2 714 |
| Fees and commissions income | 38 250 | 47 033 |
| Investment income | 28 041 | 9 590 |
| Income from purchase of investments in subsidiaries | - | - |
| Other revenue | 5 177 | 32 403 |
| 714 885 | 592 383 |
| 30.9.2017 | 30.9.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Current year paid claims, claims handling and prevention expenses | (258 321) | (230 477) |
| Change in the gross provision for unearned premiums and unexpired risk reserve |
(43 123) | (4 390) |
| Share of reinsurers in the change of the unearned premium reserve | (6) | (313) |
| Negative change in gross reported but not settled claim reserve (RBNS) and gross incurred but not reported claim reserve (IBNR) |
(11 962) | (1 064) |
| Change in the reinsurers' share in other technical reserves | - | (23 397) |
| Premiums ceded to reinsurers | (210 869) | (147 502) |
| Acquisition expenses | (104 677) | (89 141) |
| Investment expenses | (15 221) | (7 609) |
| Other expenses | (18 981) | (56 453) |
| (663 160) | (560 346) |
| 30.9.2017 | 30.9.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Revenue from sale of cars and spare parts | 134 888 | 111 530 |
| Revenue from after sales and rent-a-car services | 6 012 | 4 091 |
| Revenue from sale of investments | - | - |
| 140 900 | 115 621 |
| 18 558 | 15 763 | |
|---|---|---|
| Other financial revenue | 22 | 5 |
| Foreign exchange gains | 9 | 9 |
| Interest income | 3 351 | 3 548 |
| Revenue from services | 15 176 | 12 201 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| (3 045) | (3 511) | |
|---|---|---|
| Other expenses | (293) | (550) |
| Foreign exchange losses | (46) | (24) |
| Interest expenses | (2 706) | (2 937) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| 30.9.2017 | 30.9.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Interest income | 298 | 302 |
| Dividend income | 100 | 84 |
| Gains from sale of financial instruments | 2 002 | 3 408 |
| Foreign exchange gains | 1 809 | 4 413 |
| Other financial revenue | 359 | 417 |
| 4 568 | 8 624 |
| (3 576) | (7 993) | |
|---|---|---|
| Other financial expenses | (107) | (78) |
| Foreign exchange losses | (1 783) | (4 316) |
| Negative result from sales of financial instruments | (1 665) | (3 512) |
| Interest expenses | (21) | (87) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| 30.9.2017 | 30.9.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Gains from sale of financial instruments | 507 | 15 455 |
| Interest revenue | 671 | 522 |
| Other revenue | - | 2 |
| 1 178 | 15 979 | |
| 11. Financial expenses of the parent company | ||
| 30.9.2017 | 30.9.2016 | |
| BGN '000 | BGN '000 | |
| Negative result from sales of financial instruments | (815) | (920) |
| (815) | (920) | |
| 12. Other revenue/expenses | ||
| 30.9.2017 | 30.9.2016 | |
| BGN '000 | BGN '000 | |
| Other income/expenses | (3 754) | (5 712) |
| (3 754) | (5 712) | |
| 12.1. Other expenses | ||
| 30.9.2017 | 30.9.2016 | |
| BGN '000 | BGN '000 | |
| Leasing services | (3 778) | (5 716) |
| (3 778) | (5 716) | |
| 12.2. Other revenue | ||
| 30.9.2017 | 30.9.2016 | |
| BGN '000 | BGN '000 | |
| Automotive business | - | 4 |
| Asset management and brokerage services | 24 | - |
| 24 | 4 |
| (45 853) | (36 792) | |
|---|---|---|
| Other expenses | (4 947) | (3 557) |
| Employee benefits expense | (20 923) | (18 481) |
| Expenses on hired services | (18 089) | (13 024) |
| Expenses on materials | (1 894) | (1 730) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| (1 894) | (1 730) | |
|---|---|---|
| Parent company | (5) | (4) |
| Asset management and brokerage services | (29) | (27) |
| Leasing services | (188) | (163) |
| Automotive business | (1 235) | (1 192) |
| Insurance business | (437) | (344) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| (18 089) | (13 024) | |
|---|---|---|
| Parent company | (980) | (935) |
| Asset management and brokerage services | (406) | (473) |
| Leasing services | (3 141) | (2 589) |
| Automotive business | (6 683) | (5 918) |
| Insurance business | (6 879) | (3 109) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| 30.9.2017 BGN '000 |
30.9.2016 BGN '000 |
|
|---|---|---|
| Insurance business | (9 096) | (7 552) |
| Automotive business | (9 439) | (8 692) |
| Leasing services | (1 598) | (1 525) |
| Asset management and brokerage services | (522) | (475) |
| Parent company | (268) | (237) |
| (20 923) | (18 481) |
| (4 947) | (3 557) | |
|---|---|---|
| Parent company | (78) | (64) |
| Asset management and brokerage services | (219) | (155) |
| Leasing services | (200) | (234) |
| Automotive business | (781) | (637) |
| Insurance business | (3 669) | (2 467) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| (14 824) | (10 378) | |
|---|---|---|
| Other financial expenses/revenue | (383) | (482) |
| Interest expenses | (14 441) | (9 896) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| (14 441) | (9 896) | |
|---|---|---|
| Parent company | (12 468) | (6 618) |
| Automotive business | (1 244) | (1 214) |
| Insurance business | (729) | (2 064) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| (383) | (482) | |
|---|---|---|
| Parent company | 53 | (30) |
| Automotive business | (436) | (452) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| 344 137 |
||
|---|---|---|
| Interest income | 344 137 |
|
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| 344 | 137 | |
|---|---|---|
| Automotive business | 344 | 137 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| (6 517) | (5 026) | |
|---|---|---|
| Parent company | (6) | (6) |
| Asset management and brokerage services | (42) | (36) |
| Leasing services | (3 195) | (2 011) |
| Automotive business | (2 273) | (1 911) |
| Insurance business | (1 001) | (1 062) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| (222) | (59) | |
|---|---|---|
| Deferred tax | - | (34) |
| Income tax expense | (222) | (25) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| (222) | (59) | |
|---|---|---|
| Parent company | - | - |
| Asset management and brokerage services | (3) | (3) |
| Leasing services | - | - |
| Automotive business | (12) | - |
| Insurance business | (207) | (56) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| (511) | (4) | |
|---|---|---|
| Parent company | (511) | (4) |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 30.9.2016 |
| 97 975 | 100 948 | |
|---|---|---|
| Cash equivalents | 292 | 151 |
| Restricted cash | 492 | 602 |
| Cash at bank | 93 554 | 96 758 |
| Cash on hand | 3 637 | 3 437 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 12 674 | 27 662 | |
|---|---|---|
| Insurance business | 12 674 | 27 662 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 103 887 | 78 549 | |
|---|---|---|
| Receivables from recourse/subrogation | 12 629 | 12 063 |
| Receivables from direct insurance | 91 258 | 66 486 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 26 671 | 21 572 | |
|---|---|---|
| Other | 1 | 156 |
| Advances received | 1 204 | 358 |
| Trade receivables | 25 466 | 21 058 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 25 466 | 21 058 | |
|---|---|---|
| Parent company | 35 | 4 |
| Asset management and brokerage services | - | 18 |
| Leasing services | 11 768 | 9 471 |
| Automotive business | 13 084 | 10 402 |
| Insurance business | 579 | 1 163 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 367 311 | 340 865 | |
|---|---|---|
| Tax receivables | 1 573 | 1 182 |
| Receivables under court procedures | 3 158 | 2 970 |
| Parent company | 723 | 8 746 |
| Leasing services | 592 | 1 293 |
| Automotive business | 4 365 | 4 347 |
| Insurance business | 356 900 | 322 327 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Insurance business | 203 | 97 |
| Automotive business | 195 | 180 |
| Leasing services | 1 147 | 893 |
| Parent company | 28 | 12 |
| 1 573 | 1 182 |
| Land plots | Buildings | Machinery and equipment |
Vehicles | Furniture and fittings |
Assets under construction |
Other | Total | |
|---|---|---|---|---|---|---|---|---|
| BGN '000 | BGN '000 | BGN '000 | BGN '000 | BGN '000 | BGN '000 | BGN '000 | BGN '000 | |
| Cost | ||||||||
| At 1 January 2017 | 5 486 | 13 470 | 7 926 | 43 744 | 5 805 | 4 717 | 1 713 | 82 861 |
| Additions | 44 | 380 | 865 | 21 093 | 550 | 235 | 98 | 23 265 |
| Disposals | (33) | (97) | (46) | (9 951) | (35) | (53) | (2) | (10 217) |
| Other changes | - | - | - | - | - | - | - | - |
| At 30 September 2017 | 5 497 | 13 753 | 8 745 | 54 886 | 6 320 | 4 899 | 1 809 | 95 909 |
| Depreciation | ||||||||
| At 1 January 2017 | - | 2 749 | 6 401 | 17 768 | 4 147 | 5 | 1 069 | 32 139 |
| Additions | - | 226 | 486 | 5 120 | 259 | - | 80 | 6 171 |
| Disposals | - | (19) | (45) | (4 148) | (23) | - | - | (4 235) |
| Other changes | - | - | - | - | - | - | - | - |
| At 30 September 2017 | - | 2 956 | 6 842 | 18 740 | 4 383 | 5 | 1 149 | 34 075 |
| Net book value: | ||||||||
| At 1 January 2017 | 5 486 | 10 721 | 1 525 | 25 976 | 1 658 | 4 712 | 644 | 50 722 |
| At 30 September 2017 | 5 497 | 10 797 | 1 903 | 36 146 | 1 937 | 4 894 | 660 | 61 834 |
The land plots and buildings are presented in the consolidated statement of financial position in the group of Investments.
| 16 294 | 16 207 | |
|---|---|---|
| Automotive business | 6 878 | 7 020 |
| Insurance business | 9 416 | 9 187 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 1 903 | 1 525 | |
|---|---|---|
| Leasing services | 45 | 46 |
| Automotive business | 1 520 | 1 204 |
| Insurance business | 338 | 275 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 36 146 | 25 976 | |
|---|---|---|
| Parent company | 15 | 18 |
| Asset management and brokerage services | 59 | 68 |
| Leasing services | 23 262 | 18 007 |
| Automotive business | 11 176 | 6 584 |
| Insurance business | 1 634 | 1 299 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 2 597 | 2 302 | |
|---|---|---|
| Parent company | 2 | 3 |
| Asset management and brokerage services | 22 | 11 |
| Leasing services | 28 | 36 |
| Automotive business | 2 349 | 1 992 |
| Insurance business | 196 | 260 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 4 894 | 4 712 | |
|---|---|---|
| Automotive business | 4 868 | 4 712 |
| Insurance business | 26 | - |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Net book value at 1 January | 13 215 | 11 396 |
| Additions | 68 | - |
| Disposals | - | - |
| Revaluation | (117) | 1 840 |
| Other changes | - | - |
| Depreciation | - | (21) |
| Disposals on sale of subsidiaries | - | - |
| Net book value as at the period end | 13 166 | 13 215 |
| Software | Licenses | Other | Total | |
|---|---|---|---|---|
| BGN '000 | BGN '000 | BGN '000 | BGN '000 | |
| Cost | ||||
| At 1 January 2017 | 6 095 | 155 | 1 483 | 7 733 |
| Additions | 744 | - | 119 | 863 |
| Disposals | (320) | (41) | (20) | (381) |
| At 30 September 2017 | 6 519 | 114 | 1 582 | 8 215 |
| Depreciation | ||||
| At 1 January 2017 | 5 076 | 154 | 764 | 5 994 |
| Additions | 279 | - | 67 | 346 |
| Disposals | (118) | (40) | - | (158) |
| At 30 September 2017 | 5 237 | 114 | 831 | 6 182 |
| Net book value: | ||||
| At 1 January 2017 | 1 019 | 1 | 719 | 1 739 |
| At 30 September 2017 | 1 282 | - | 751 | 2 033 |
| 27. Inventories | ||||
| 30.9.2017 | 31.12.2016 | |||
| BGN '000 | BGN '000 | |||
| Insurance business | 320 | 206 | ||
| Automotive business | 45 754 | 35 739 | ||
| Leasing services | 3 159 | 4 267 | ||
| 49 233 | 40 212 | |||
| 28. Financial assets | ||||
| 30.9.2017 | 31.12.2016 | |||
| BGN '000 | BGN '000 | |||
| Financial assets held for trading | 241 617 | 157 899 | ||
| Available for sale financial assets | 15 716 | 15 698 | ||
| Other financial assets | - | 500 | ||
| 257 333 | 174 097 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Insurance business, incl. | 227 701 | 146 795 |
| Government securities | 116 533 | - |
| Asset management and brokerage services | 13 916 | 11 104 |
| 241 617 | 157 899 | |
| 28.2. Available for sale financial assets | ||
| 30.9.2017 | 31.12.2016 | |
| BGN '000 | BGN '000 | |
| Insurance business, incl. | 15 716 | 15 698 |
| Government securities | 4 701 | 5 108 |
| 15 716 | 15 698 | |
| 28.3. Other financial assets | ||
| 30.9.2017 | 31.12.2016 | |
| BGN '000 | BGN '000 | |
| Insurance business | - | 500 |
| - | 500 | |
| 29. Other assets | ||
| 30.9.2017 | 31.12.2016 | |
| BGN '000 | BGN '000 | |
| Prepaid expenses | 4 847 | 3 607 |
| Deferred tax asset | 14 786 | 14 910 |
| 19 633 | 18 517 | |
| 29.1 Deferred tax asset | ||
| 30.9.2017 | 31.12.2016 | |
| BGN '000 | BGN '000 | |
| Insurance business | 14 229 | 14 353 |
| Automotive business | 461 | 461 |
| Leasing services | 96 | 96 |
| 14 786 | 14 910 | |
| 30. Investments in subsidiaries and associates | ||
| 30.9.2017 | 31.12.2016 | |
| BGN '000 | BGN '000 | |
| Investments of the parent company | 1 | 1 |
| Investments of the subsidiaries | 3 546 | 170 |
| 3 547 | 171 |
| 2 565 | 2 159 | |
|---|---|---|
| Other | 2 565 | 2 159 |
| Held to maturity financial assets | - | - |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Insurance business | - | - |
| - | - |
| 2 565 | 2 159 | |
|---|---|---|
| Parent company | 172 | 172 |
| Insurance business | 2 393 | 1 987 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 83 819 | 74 087 | |
|---|---|---|
| Subsidiaries | 30 519 | 23 750 |
| Parent company | 9 851 | 9 779 |
| Finance lease receivables | 43 449 | 40 558 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 189 999 | 189 999 | |
|---|---|---|
| Euro-Finance AD | 2 620 | 2 620 |
| Sofia Motors EOOD | 10 | 10 |
| Eurolease Rent-a-Car EOOD | 1 312 | 1 312 |
| Eurolease Group EAD | 1 803 | 1 803 |
| Daru Car OOD | 1 461 | 1 461 |
| Bulvaria Varna EOOD | 5 591 | 5 591 |
| Motobul EOOD | 12 538 | 12 538 |
| Euroins Insurance Group AD | 164 664 | 164 664 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Insurance and health insurance - issued | 19 558 | 19 558 |
| Insurance and health insurance - other | 6 500 | 4 000 |
| Parent company - other | 14 209 | 53 695 |
| 40 267 | 77 253 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Insurance business | 169 | 9 166 |
| Automotive business | 17 065 | 21 156 |
| Leasing services | 44 031 | 33 529 |
| Parent company | 38 158 | 43 588 |
| 99 423 | 107 439 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Insurance business, including: | - | 6 209 |
| Bank loans | - | - |
| Loans from non-bank financial institutions | - | 6 209 |
| Automotive business, including: | 6 319 | 7 154 |
| Bank loans | 6 319 | 7 154 |
| Loans from non-bank financial institutions | - | - |
| Leasing services, including: | 43 231 | 33 049 |
| Bank loans | 43 231 | 33 049 |
| Loans from non-bank financial institutions | - | - |
| Parent company, including: | 24 643 | 24 643 |
| Bank loans | 24 643 | 24 643 |
| Loans from non-bank financial institutions | - | - |
| 74 193 | 71 055 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Insurance business, including: | 169 | 2 957 |
| Bank loans | 169 | 2 957 |
| Loans from non-bank financial institutions | - | - |
| Automotive business, including: | 10 746 | 14 002 |
| Bank loans | 10 109 | 11 629 |
| Loans from non-bank financial institutions | 637 | 2 373 |
| Automotive business, including: | 800 | 480 |
| Bank loans | 800 | 480 |
| Loans from non-bank financial institutions | - | - |
| Parent company, including: | 13 515 | 18 945 |
| Bank loans | 4 694 | 4 694 |
| Loans from non-bank financial institutions | 8 821 | 14 251 |
| 25 230 | 36 384 | |
| 36. Bond obligations | 30.9.2017 | 31.12.2016 |
| BGN '000 | BGN '000 | |
| Auto Union AD for the purpose of automotive business | 6 492 | 6 585 |
| Eurolease Auto EAD – for the purpose of leasing services | 21 507 | 23 880 |
| Parent company | 119 276 | 89 051 |
| 147 275 | 119 516 | |
| 36.1 Bond obligations – long term | ||
| 30.9.2017 | 31.12.2016 | |
| BGN '000 | BGN '000 | |
| Auto Union AD for the purpose of automotive business | 6 384 | - |
| Eurolease Auto EAD – for the purpose of leasing services | 21 507 | 23 880 |
| Parent company | 112 372 | 88 882 |
| 140 263 | 112 762 | |
| 36.2 Bond obligations – short term | ||
| 30.9.2017 | 31.12.2016 | |
| BGN '000 | BGN '000 | |
| Auto Union AD for the purpose of automotive business | 108 | 6 585 |
| Parent company | 6 904 | 169 |
| 7 012 | 6 754 |
| 37 818 | 32 937 | |
|---|---|---|
| Deferred revenue | - | - |
| Finance lease liabilities | 20 476 | 15 201 |
| Other non-current liabilities | 17 342 | 17 736 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 17 342 | 17 736 | |
|---|---|---|
| Parent company | 8 022 | 10 250 |
| Leasing services | 716 | 451 |
| Automotive business | 8 592 | 6 898 |
| Insurance business | 12 | 137 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Automotive business | - | - |
| - | - |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Payables to employees | 3 468 | 3 374 |
| Social-security liabilities | 1 288 | 1 163 |
| Tax liabilities | 4 182 | 5 576 |
| Other current liabilities | 7 593 | 19 427 |
| Deferred revenue | 483 | 432 |
| Provisions | 589 | 214 |
| 17 603 | 30 186 |
| 3 468 | 3 374 | |
|---|---|---|
| Parent company | 37 | 37 |
| Leasing services | 191 | 163 |
| Automotive business | 850 | 988 |
| Insurance business | 2 390 | 2 186 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 1 288 | 1 163 | |
|---|---|---|
| Parent company | 3 | 9 |
| Leasing services | 94 | 102 |
| Automotive business | 351 | 286 |
| Insurance business | 840 | 766 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 4 182 | 5 576 | |
|---|---|---|
| Parent company | 312 | 337 |
| Asset management and brokerage services | 10 | 33 |
| Leasing services | 589 | 791 |
| Automotive business | 2 056 | 2 604 |
| Insurance business | 1 215 | 1 811 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 7 593 | 19 427 | |
|---|---|---|
| Parent company | 2 167 | 850 |
| Asset management and brokerage services | 141 | 596 |
| Leasing services | 1 033 | 886 |
| Automotive business | 1 196 | 2 747 |
| Insurance business | 3 056 | 14 348 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 483 | 432 | |
|---|---|---|
| Automotive business | 483 | 432 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 114 267 | 67 404 | |
|---|---|---|
| Parent company | 58 278 | 26 656 |
| Asset management and brokerage services | 3 | 4 |
| Leasing services | 3 508 | 4 131 |
| Automotive business | 50 184 | 36 613 |
| Insurance business | 2 294 | - |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 120 206 | 75 532 | |
|---|---|---|
| Insurance business | 120 206 | 75 532 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 228 | 168 | |
|---|---|---|
| Leasing services | 66 | 66 |
| Automotive business | 101 | 102 |
| Insurance business | 61 | - |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Unearned premium reserve, gross amount | 190 926 | 150 683 |
| Share of reinsurers in unearned premium reserve | (121 374) | (90 933) |
| Unexpired risks reserve, gross amount | 370 | 459 |
| Share of reinsurers in unexpired risks reserve | (15) | (23) |
| Reserve for incurred but not reported claims, gross amount | 157 238 | 149 772 |
| Share of reinsurers in reserve for incurred but not reported claims | (90 748) | (86 830) |
| Reserve for reported but not settled claims, gross amount | 205 854 | 199 131 |
| Share of reinsurers in reserve for reported but unsettled claims | (118 649) | (117 079) |
| Other technical reserve | 3 895 | 8 775 |
| 558 283 | 508 820 |
| Number of shares | 161 345 000 | 127 345 000 |
|---|---|---|
| Share capital | 158 415 | 124 399 |
| Shares held from subsidiaries | (2 930) | (2 946) |
| Issued shares | 161 345 | 127 345 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| Financial result for the period | 12 000 | 10 224 |
|---|---|---|
| Current result attributable to the minority interests | 3 798 | 1 750 |
| Current result attributable to the shareholders | 8 202 | 8 474 |
| BGN '000 | BGN '000 | |
| 30.9.2017 | 31.12.2016 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Insurance business | 24 454 | 8 944 |
| Automotive business | (43) | (842) |
| Leasing services | 81 | (481) |
| Asset management and brokerage services | 576 | 265 |
| Parent company | (12 529) | 2 309 |
| (Revenue)/loss belonging to non-controlling interest | (3 798) | (1 750) |
| Intercompany eliminations of dividends, sale of subsidiaries and other |
(539) | 29 |
| 8 202 | 8 474 |
| 30.9.2017 | 31.12.2016 | |
|---|---|---|
| BGN '000 | BGN '000 | |
| Non-controlling interest related to current result | 3 798 | 1 750 |
| Non-controlling interest related to equity | 36 844 | 34 395 |
| 40 642 | 36 145 |
By decision 1378-E dated 30.10.2017, the FSC confirmed a prospectus for an initial public offering of an issue of 40 336 250 ordinary, dematerialized, freely transferable voting shares with a nominal value of BGN 1 (one) and issue value of BGN 1,30.
The Management Board of EuroHold Bulgaria AD is not aware of any other important or significant events that have occurred after the reported financial period.
Asen Minchev Hristo Stoev Executive member of the BD Procurator
Eurohold Bulgaria AD,
30 October 2017
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