Annual Report • Sep 21, 2015
Annual Report
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Annual Report for the Year 2010 (1st January – 31st December 2010) in accordance with Law 3556/2007
Annual Report 31 December 2010
The attached annual financial statements of the Group and the Company have been approved for issue by the Board of Directors on 30th March 2011.
S.P. KOKKALIS D.C. KLONIS ID No AI 091040/05.10.2009 ID No. P 539675/06.11.1995
J.K. TSOUMAS ID No ΑΖ 505361/ 10.12.2007 Licence No 637
Annual Report 31 December 2010
(pursuant to article 4 par. 2 of Law 3556/2007)
The members of the Board of Directors, of INTRACOM HOLDINGS SA
In our above mentioned capacity declare that:
As far as we know:
a. the parent company and consolidated annual financial statements for the year 01/01/2010 to 31/12/2010 which were drawn up in accordance with applicable accounting standards, reflect in a true manner the assets and liabilities, equity and results of 'INTRACOM HOLDINGS SA' and of the undertakings included in consolidation, taken as a whole, and
b. the annual report of the Board of Directors is a true representation of the progress, the performance and the financial position of the Company and of the undertakings included in the consolidation, taken as whole, including a description of the major risks and uncertainties they confront.
ID No AI 091040/05.10.2009
ID No. P 539675/06.11.1995
ID No. ΑΕ 550167 / 17.04.2007
Annual Report 31 December 2010
for the Year 2010 (1st January – 31st December 2010)
in accordance with Law 3556/2007
Despite the adverse economic conditions, INTRACOM HOLDINGS Group during the fiscal year 2010 managed to increase its turnover and what is more to make profitable sales since it increased in parallel the gross results.
Group sales in 2010 amounted to € 575,4 mn. versus € 547,4 mn. in 2009, that is increased by 5% in respect to previous year. The increase in sales is mostly due, firstly, to HELLAS ONLINE with a significant 25,2% sales increase, (2010: € 200,5 mn., 2009: € 160,1 mn.), and secondly, to IT SERVICES Group whose consolidated turnover raised by 6,5% (2010: € 148,4 mn., 2009: € 139,4 mn).
Particularly positive is the change in gross results which stood at € 79,2 mn. versus € 59,4 mn. in 2009, an increase of 33%. Operating expenses for the Group following the growth in sales were increased, resulting in decreased EBITDA to € 63,2 mn. against € 77,2 mn. in 2009. It is worth underlying however, that if the profit recognition of € 51,8 million from the indirect sale of hellas online which is an extraordinary and non recurring event, is deducted by the results of 2009, the operating results of the Group is clearly improved compared with 2009.
In terms of earnings before taxes (EBT), the group reported losses due to high depreciation resulting from strong investment activity of its subsidiaries in recent years, the major example being hellas online. Earnings before taxes (EBT) of 2010 are losses of € 38,8 mn. against losses of € 5,3 mn. in 2009. As already mentioned, the two years results are not comparable since 2009 statements included extraordinary income.
In general, the performance of the Group is highly satisfactory given the adverse conditions, since in their majority group companies, either they substantially reduced their losses - hellas online-or-as in the case of INTRAKAT Group increased profitability.
In the financials of the parent company, a slight drop in sales of € 0,5 million, with a significant reduction in losses before tax (2010: € -9,7 mn., 2009: € -12,4 mn.) is due mainly to the decrease in administrative expenses by € 1,4 mn. and to the decrease by € 1,3 mn. of other accounts.
Total shareholders' equity on 31/12/2010 amounts to € 452,8 mn. compared to € 500,5 mn. on 31/12/2009.
The total assets of the Group amounted to € 1.166,7 mn, representing an increase in relation to 31/12/2009 (€ 1.208,8 mn). Total borrowings of the Group on 31/12/2010 amounted to € 351,1 mn., slightly increased compared with 31/12 / 2009 (€ 340,6 mn.)
Key financial ratios depicting the Group's and Company's financial condition in a static format are as follows:
| a. Financial Structure Ratios | GROUP | COMPANY |
|---|---|---|
| Current Assets/Total Assets | 40,2% | 4,4% |
| Total Equity/Total Liabilities | 63,4% | 1207,5% |
| Total Equity/Fixed Assets | 81,5% | 503,6% |
| Current Assets/Short-term Liabilities: | 92,0% | 96,0% |
| b. Profitability Ratios | GROUP | COMPANY |
|---|---|---|
| EBITDA/Sales | 11,0% | -243,9% |
| Gross Profit/Sales | 13,8% | 16,5% |
| Sales/Total Equity | 127,07% | 0,63% |
The company's international activity is based upon its subsidiaries and not to branches.
In June 2010, Intracom Telecom and SoftAtHome, a software provider of home operating platforms signed a strategic partnership. The integration of Intracom Telecom's Full Service Content Delivery Network (fs|cdnT) Solution on the SoftAtHome Operating Platform (SOP), will enable the seamless provision of IPTV services with OTT and Smart Home applications.
In May 2010, INTRACOM Defense Electronics was awarded a \$17,9 million frame contract from Northrop Grumman to manufacture electronic modules for the AN/APG-68(V)9 radar for the F-16 aircraft worldwide. Furthermore, within the year the company signed with RAYTHEON, a worth \$4,8 mil. contract for the
Annual Report 31 December 2010
manufacturing of subsystems of PATRIOT air-defense systems for third countries' needs. The aforementioned contract is a continuation of previous contracts worth in total \$ 81,7 mil.
Moreover, in February 2010 INTRACOM Defense Electronics expanded its collaboration with NAMSA (NATO Maintenance and Supply Agency), since a series of the company's products have been included in NATO's procurement system.
In May 2010, INTRACOM IT Services was chosen by GENIKI Bank, member of the Societe Generale Group, for the upgrade of its Core Banking System to the new version of PROFITS R v. 7.0.
INTRASOFT International, has been selected by the European Chemicals Agency (ECHA), based in Helsinki, Finland, as one of the preferred suppliers for 4 lots out of 10 under a 2-year competitive framework contract for the provision of IT consulting services with a maximum capacity budget of € 5,8 mn. for all preferred suppliers. The initial estimate is that INTRASOFT International may receive one fourth of the total budget for the contract. The contract may also be extended for 2 additional periods of 12 months. This project will boost INTRASOFT International's profile in Helsinki, Finland, a new area of expansion for the company's business operations.
Finally, INTRAKAT on December 2010, signed a contract of € 51,6 mn. with the Perfecture of Central Macedonia, for the implementation of the Highway construction, Potidea – Cassandria part, in Northern Greece. The project is part of the Operational Programme Macedonia-Thrace. Furthermore, a contract of € 5,5 mn. worth has been signed, during the third quarter between PRISMA DOMI ATE and the Perfecture of Thessalia for the implementation of Road Detour construction of Artesiano & Rizovouni in Central Greece.
In February 2011, the company's Board of Directors reformed its composition in 6-member board, after the resignations of Mr. K. Dimitriadis and Mr. N. S. Labroukos.
The Group's main goals are summarised in the following axes:
Annual Report 31 December 2010
In this context, the Group has developed a wide range of advanced products, integrated solutions and services reaching 64 markets in countries around the world, while companies maintain subsidiaries or participations in 21 countries.
INTRACOM IT SERVICES GROUP is the leading IT services provider in the Greek market and a major regional IT solutions integrator. It avails of a very strong international orientation having physical presence in 11 countries, while it provides solutions and services to public organizations and enterprises in 64 different countries. The strategy of the group is adhering to the trilogy "international activity-specialization-quality". Based on these axes and using the potential of its subsidiaries, the group deploys integrated solutions in specific areas where it has high expertise, emphasizing on continuous improvement of its competitiveness. This strategy resulted in the claim of significant projects in new markets such as New Zealand, Vietnam, Malaysia, Argentina, Kenya, Iraq and USA. Finally, strategic alliances as the one with IBM in the Customs market, significantly reinforces the Group's presence and activity worldwide.
INTRACOM DEFENSE ELECTRONICS is Greece's leading defense electronics supplier with emphasis on Communications and Electronics systems. The company participates in a large number of national, multinational, European and NATO R&D programs. Highly investing in competitiveness, infrastructure and highly skilled personnel, the company aims at establishing itself as a reliable partner in international projects. Given a quite unfavourable macroeconomic environment, domestic and international defense electronics markets are characterized, under current economic conditions, by delays in programs procurement and completion,due mainly to fiscal reasons. Under these circumstances and the company's ability to adjust to current economic conditions, the basic target is to maintain profitability and enrich international presence.
INTRAKAT, the construction arm of INTRACOM HOLDINGS GROUP, has shown considerable resistance to the adverse financial conjunctures. This is mainly due to the fact that since 2003 the company has undertaken efficient strategic moves and careful planning in reasonable investments while continuing its expansion into new business areas. For the years to come, INTRAKAT Group is strategically positioned and awaiting developments in the field of environmental projects (management of natural resources projects, green development projects) as well as in the field of waste management. The Group's international presence is mostly significant- Poland, Romania, Syria, Cyprus, Albania.
HELLAS ONLINE Group holds a solid position among alternative providers in Greek market and is dynamically and healthily growing. Having as growth drivers the first place in net additions of LLU customers, efficient operational management, focused investments in infrastructure and customer service, the company managed to present in a difficult economic environment, high rates of revenue growth. The Group aims at increasing its customer base, at securing the necessary funds to expand its network and offer new products, at further expansion, modernization and development of the telecommunication network, at the use of IPTV technology and the availability of new commercial packages aimed at small companies. The company's
Annual Report 31 December 2010
targeted strategy comprises enhancement of the company's brand, further investment on network build up and qualitative and quantitative development of its human resources so as to meet the needs of its growing customer base.
INTRACOM S.A., being a Greek multinational company, is exposed to a variety of financial risks, including market risk (the effects of changes in foreign currency exchange rates, cash flow and fair value risk from changes in interest rates and market prices), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group as a whole.
The financial liabilities of the Group include short-term bank loans, long-term bank loans, bond loans and finance lease agreements, through which the Group finances its working capital and capital expenditure needs. Moreover, the Group manages financial assets, mainly short-term bank deposits arising from operating activities.
Derivative financial instruments are used exclusively for the hedging of interest or exchange rate risk, since according to the approved policy, speculative use is not permitted.
In summary, the financial risks that arise are analyzed below.
The foreign exchange risk of the Group is limited, since for most of the foreign currency receivables, there are corresponding payables in the same currency. Almost all foreign currency contracts for both assets and liabilities are denominated in USD.
In cases where natural hedge is not adequate due to large amounts of foreign currency payables, the Group may convert part of the borrowings to that currency or may use forward currency contracts.
The Group's policy is to maintain a minimum amount of cash in foreign currency, to meet short-term liabilities in that currency.
Annual Report 31 December 2010
The Group has limited exposure to changes in the prices of the shares held either for trading or as available for sale financial assets.
The interest-rate risk arises mainly from the fact that almost all of the Group's borrowings carry floating interest rates. The Group assesses that during the current year, interest rate risk is limited since it is expected that interest rates will either remain stable or increase slightly in the medium-term. At the same time, the Group assesses the possibility for converting part of the borrowings to fixed rate.
The sales transactions of the Group are made to private companies and public sector organisations with an appropriate credit history, with which in many cases there is a long standing relationship. In cases that vendor financing to an overseas customer is required, the Group insures its credit risk via the Export Credit Insurance Organisation (ECIO). As a result, the risk of doubtful debts is considered limited.
Regarding credit risk related to cash deposits, the Group collaborates only with financial institutions of high credit rating.
Each subsidiary draws up and monitors on a monthly basis a cash flow schedule that includes the operating as well as the investing cash flows. All subsidiaries submit to Intracom Holdings on a weekly basis a detailed report of their cash and credit position, in order that an effective monitoring and co-ordination on a group level is achieved.
Prudent liquidity management is achieved by an appropriate combination of cash and cash equivalents and approved bank facilities.
The Group manages the risks that may arise from lack of adequate liquidity by ensuring there are always approved bank facilities for use.
The available undrawn borrowing facilities to the Group, are sufficient to address any potential shortfall in cash.
Annual Report 31 December 2010
The company's significant transactions with related parties as defined in International Accounting Standard 24 relate to transactions with its subsidiaries and affiliates (related companies according to article 42e of L. 2190/20) and companies in which the major shareholder of INTRACOM HOLDINGS holds an interest share, which are presented in the tables below:
| SUBSIDIARIES | SERVICES | RENTAL INCOME |
SALES OF FIXED ASSET |
DIVIDENDS | RECEIVABLES | |
|---|---|---|---|---|---|---|
| INTRAKAT SA | 414 | 283 | - | - 1.476 |
||
| INTRACOM I.T. SERVICES SA | 71 | - | 8 | - - |
||
| INTRASOFT INTERNATIONAL SA (GR) | 781 | 64 | - | - 700 |
||
| INTRACOM DEFENSE SA | 316 | - | - 200 |
937 | ||
| HELLAS ON LINE Α.Ε. | 204 | 1.322 | - | - | 3.577 | |
| ATTICA TELECOMMUNICATIONS SA | 450 | - | - | - 2.628 |
||
| OTHER SUBSIDIARIES | 2 | 2 | - | - 51 |
||
| Sum | 2.238 | 1.671 | 8 200 |
9.369 | ||
| ASSOCIATES | ||||||
| INTRACOM TELECOM SA | 285 | 287 | - | - 1.955 |
||
| INTRACOM LTD SKOPJE | - | - | - | - 750 |
||
| Sum | 285 | 287 | 0 | 0 2.705 |
||
| OTHER RELATED PARTIES | ||||||
| INTRALOT | - 153 |
- | - 1.025 |
|||
| SPORTNEWS ΑΕ | 13 | 10 | - | - | 167 | |
| OTHER RELATED PARTIES | - | 3 | - | - 2 |
||
| Sum | 13 | 166 | 0 | 0 1.194 |
||
| TOTAL | 2.536 | 2.124 | 8 200 |
13.268 |
Annual Report 31 December 2010
| Income & Receivables Period 1/1-31/12/2009 | |||
|---|---|---|---|
| (amounts in thousands €) |
|---|
| -------------------------- |
| SUBSIDIARIES | SERVICES | RENTAL INCOME |
SALES OF FIXED ASSET |
DIVIDENDS | RECEIVABLES | |
|---|---|---|---|---|---|---|
| INTRAKAT SA | 335 | 265 | - | - 1.314 |
||
| INTRACOMI.T. SERVICES SA | 96 | - 82 |
- 503 |
|||
| INTRASOFT INTERNATIONAL SA (GR) | 814 | 51 | - | - 614 |
||
| INTRACOMDEFENSESA | 575 | - | - 1.500 |
2.948 | ||
| HELLAS ON LINEΑ.Ε. | 258 | 1.346 | 1 | - | 2.658 | |
| ATTICA TELECOMMUNICATIONS SA | 549 | - | - | - 2.075 |
||
| OTHER SUBSIDIARIES | 2 | 2 | - | - 48 |
||
| Sum | 2.629 | 1.664 | 83 | 1.500 | 10.160 | |
| ASSOCIATES | ||||||
| INTRACOMTELECOMSA | 411 | 562 | - | - 1.424 |
||
| INTRACOMLTD SKOPJE | - | - | - | - 750 |
||
| OTHER ASSOCIATES | - | - | - | - 270 |
||
| Sum | 411 | 562 | 0 | 0 2.444 |
||
| OTHER RELATED PARTIES | ||||||
| INTRALOT | 2 142 |
4.505 | - 4.274 |
|||
| SPORTNEWS ΑΕ | - | 22 | - | - | 145 | |
| OTHER RELATED PARTIES | - | 3 | - | - 4 |
||
| Sum | 2 167 |
4.505 | 0 4.423 |
|||
| TOTAL | 3.042 | 2.393 | 4.588 | 1.500 | 17.027 |
Expenses & Payables Period 1/1-31/12/2010
(amounts in thousands €)
| SUBSIDIARIES | SERVICES | PURCHASE S OF FIXED ASSETS |
OTHER | PAYABLES | |
|---|---|---|---|---|---|
| IN MAINT SA | 307 | 20 | 3 11 |
||
| INTRADEVELOPMENT SA | - | - | - 41 |
||
| INTRACOM I.T. SERVICES SA | 140 | - | - 705 |
||
| HELLAS ON LINE Α.Ε. | 7 | - | - | 216 | |
| OTHER SUBSIDIARIES | - | - | - - |
||
| Sum | 454 | 20 | 3 973 |
||
| ASSOCIATES | |||||
| INTRACOM TELECOM SA | 6 | - | - 3.415 |
||
| OTHER ASSOCIATES | - | - | - 27 |
||
| Sum | 6 | 0 | 0 3.442 |
||
| OTHER RELATED PARTIES | |||||
| OTHER RELATED PARTIES | 26 | - | - 80 |
||
| Sum | 26 | 0 | 0 80 |
||
| TOTAL | 486 | 20 | 3 4.495 |
Annual Report 31 December 2010
| SUBSIDIARIES | SERVICES | PURCHASE S O F FIXED |
O THER | PAYABLES | |
|---|---|---|---|---|---|
| ASSETS | - - - - - 0 - - 0 - 0 |
||||
| INTRAKAT SA | - 100 |
630 | |||
| IN MAINT SA | 309 | 45 | 190 | ||
| INTRADEVELO PMENT SA | - | - | 40 | ||
| INTRACO M I.T. SERVICES SA | 141 | - | 1.122 | ||
| HELLAS ON LINE Α.Ε. | 12 | - | - | 215 | |
| O THER SUBSIDIARIES | - | - | 1 | ||
| Sum | 462 | 145 | 2.198 | ||
| ASSO CIATES | |||||
| INTRACO M TELECO M SA | 67 | - | 3.158 | ||
| CONΚLIN | - | - | - | 175 | |
| O THER ASSO CIATES | - | - | 39 | ||
| Sum | 67 | 0 | 3.372 | ||
| O THER RELATED PARTIES | |||||
| O THER RELATED PARTIES | 53 | - | 53 | ||
| Sum | 53 | 0 | 53 | ||
| TO TAL | 582 | 145 | 0 5.623 |
||
(amounts in thousands €)
In relation to the above transactions:
The Company's income from services comes mainly from the provision of administrative, accounting, legal and computer support services.
The purchases from IN MAINT SA relate to maintenance of facilities and networks, and purchases from INTRACOM IT SERVICES SA relate to IT services and maintenance of systems and computer software.
The transactions have taken place under normal market conditions.
Directors' remuneration and key management compensation amounted to €2.103 during the year 2010 in comparison to €2.636 during the previous year. There was no outstanding receivable or payable to directors as at 31st December 2010.
PAIANIA 30 March 2011
The Board of Directors
Annual Report 31 December 2010
We have audited the accompanying separate and consolidated financial statements of INTRACOM HOLDINGS S.A. and its subsidiaries, which comprise the separate and consolidated balance sheet as of 31 December 2010, the separate and consolidated statement of comprehensive income, the separate and consolidated statement of changes in equity and the separate and consolidated cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management is responsible for the preparation and fair presentation of these separate and consolidated financial statements in accordance with International Financial Reporting Standards, as adopted by the European Union, and for such internal controls as management determines is necessary to enable the preparation of separate and consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these separate and consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the separate and consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the separate and consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the separate and consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the separate and consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's system of internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the separate and consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Annual Report 31 December 2010
In our opinion, the accompanying separate and consolidated financial statements present fairly, in all material respects, the financial position of the Company and its subsidiaries as of 31 December 2010 and of their financial performance and their cash flows for the year then ended in accordance with International Financial Reporting Standards, as adopted by the European Union.
Athens, 30 March 2011
Maria N. Charitou
Certified Public Accountant Auditor Institute of CPA (SOEL) Reg. No. 15161
Associated Certified Public Accountants s.a. member of Crowe Horwath International 3, Fok. Negri Street – 112 57 Athens, Greece Institute of CPA (SOEL) Reg. No. 125
Annual Report 31 December 2010
In accordance with International Financial Reporting Standards
As adopted by the European Union
These financial statements have been translated from the original statutory financial statements that have been prepared in the Greek language. In the event that differences exist between this translation and the original Greek language financial statements, the Greek language financial statements will prevail over this document.
(15) from (93)
Financial Statements in accordance with IFRS 31 December 2010
| Balance Sheet | 18 | |
|---|---|---|
| Statement of Comprehensive Income | 19 | |
| Statement of Changes in Equity - Group | 20 | |
| Statement of Changes in Equity – Company | 21 | |
| Cash Flow Statement | 22 | |
| 1. | General Information | 23 |
| 2. | Summary of Significant Accounting Policies | 23 |
| 3. | Financial Risk Management | 39 |
| 4. | Critical Accounting Estimates and Judgments | 44 |
| 5. | Segment Information | 44 |
| 6. | Property, Plant and Equipment | 47 |
| 7. | Goodwill | 49 |
| 8. | Intangible Assets | 50 |
| 9. | Investment Property | 52 |
| 10. | Investments in Subsidiaries | 53 |
| 11. | Investments in Associates | 56 |
| 12. | Joint Ventures | 57 |
| 13. | Available-for-Sale Financial Assets | 57 |
| 14. | Deferred Income Tax | 58 |
| 15. | Long-Term Loan Receivables | 60 |
| 16. | Trade and Other Receivables | 61 |
| 17. | Inventories | 63 |
| 18. | Construction Contracts | 64 |
| 19. | Financial Assets at Fair Value through Profit or Loss | 64 |
| 20. | Cash and Cash Equivalents | 65 |
| 21. | Share Capital | 65 |
| 22. | Other Reserves | 67 |
| 23. | Borrowings | 68 |
| 24. | Retirement Benefit Obligations | 70 |
| 25. | Grants | 72 |
| 26. | Derivative Financial Instruments | 72 |
| 27. | Provisions | 73 |
| 28. | Trade and Other Payables | 74 |
| 29. | Expenses by Nature | 75 |
Financial Statements in accordance with IFRS 31 December 2010
| 30. | Employee Benefits | 75 |
|---|---|---|
| 31. | Other Operating Income | 76 |
| 32. | Other Gains / (Losses) – Net | 76 |
| 33. | Finance Expenses / (Income) - Net | 77 |
| 34. | Income Tax Expense | 77 |
| 35. | Earnings per Share | 78 |
| 36. | Cash Generated from Operations | 79 |
| 37. | Assets Classified as Held for Sale | 80 |
| 38. | Business Combinations | 81 |
| 39. | Commitments | 83 |
| 40. | Contingencies / Outstanding Legal Cases | 83 |
| 41. | Related Party Transactions | 85 |
| 42. | Post-Balance Sheet Events | 86 |
| 43. | Subsidiaries | 87 |
(All amounts in €'000)
| Group | Company | ||||
|---|---|---|---|---|---|
| ASSETS | Note | 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 |
| Non-current assets | |||||
| Property, plant and equipment | 6 | 362.394 | 375.496 | 25.425 | 29.190 |
| Goodwill | 7 | 68.387 | 65.788 | - | - |
| Intangible assets | 8 | 56.604 | 64.832 | 7 | 8 |
| Investment property | 9 | 68.368 | 57.618 | 65.768 | 64.009 |
| Investments in subsidiaries | 10 | - | - | 250.098 | 237.088 |
| Investments in associates | 11 | 110.844 | 113.316 | 115.900 | 115.900 |
| Available - for - sale financial assets | 13 | 11.191 | 12.562 | 9.470 | 9.520 |
| Deferred income tax assets | 14 | 5.236 | 7.310 | - | - |
| Long-term loans | 15 | 8.706 | 8.385 | 8.706 | 8.385 |
| Trade and other receivables | 16 | 6.009 | 15.824 | 39 | 36 |
| 697.740 | 721.130 | 475.411 | 464.136 | ||
| Current assets | |||||
| Inventories | 17 | 44.166 | 47.140 | - | - |
| Trade and other receivables | 16 | 367.125 | 332.553 | 17.900 | 22.058 |
| Construction contracts | 18 | 12.374 | 21.618 | - | - |
| Financial assets at fair value through profit or loss | 19 | 187 | 298 | - | - |
| Current income tax assets | 10.166 | 11.142 | - | - | |
| Cash and cash equivalents | 20 | 34.994 | 64.641 | 4.048 | 10.146 |
| 469.012 | 477.392 | 21.948 | 32.204 | ||
| Assets classified as held for sale | 37 | - | 10.291 | - | - |
| 469.012 | 487.683 | 21.948 | 32.204 | ||
| Total assets | 1.166.752 | 1.208.813 | 497.359 | 496.340 | |
| EQUITY | |||||
| Capital and reserves attributable to the Company's equity holders | |||||
| Share capital | 21 | 381.771 | 377.148 | 381.771 | 377.148 |
| Reserves | 30.409 | 66.047 | 77.551 | 91.113 | |
| 412.180 | 443.195 | 459.322 | 468.261 | ||
| Non-controlling interest | 40.637 | 57.300 | - | - | |
| Total equity | 452.817 | 500.495 | 459.322 | 468.261 | |
| LIABILITIES | |||||
| Non-current liabilities | |||||
| Borrowings | 23 | 158.328 | 168.848 | 13.699 | 6.196 |
| Deferred income tax liabilities | 14 | 3.089 | 2.853 | 1.140 | 1.071 |
| Retirement benefit obligations | 24 | 5.215 | 4.881 | 335 | 298 |
| Grants | 25 | 20.888 | 21.382 | - | - |
| Derrivative financial instruments | 26 | 1.241 | 436 | - | - |
| Provisions for other liabilities and charges | 27 | 1.939 | 3.631 | - | - |
| Trade and other payables | 28 | 13.387 | 16.744 | - | - |
| 204.087 | 218.776 | 15.174 | 7.565 | ||
| Current liabilities | |||||
| Trade and other payables | 28 | 291.457 | 284.285 | 7.456 | 9.248 |
| Current income tax liabilities | 5.175 | 2.723 | - | - | |
| Construction contracts | 18 | 8.190 | 18.057 | - | - |
| Borrowings | 23 | 192.805 | 171.792 | 13.840 | 9.698 |
| Grants | 25 | 5.432 | 3.168 | - | - |
| Provisions for other liabilities and charges | 27 | 6.790 | 6.921 | 1.568 | 1.568 |
| 509.848 | 486.945 | 22.864 | 20.514 | ||
| Liabilities directly associated with non-current assets classified as held | |||||
| for sale | 37 | - | 2.596 | - | - |
| 509.848 | 489.541 | 22.864 | 20.514 | ||
| Total liabilities | 713.935 | 708.317 | 38.037 | 28.078 | |
| Total equity and liabilities | 1.166.752 | 1.208.813 | 497.359 | 496.340 | |
(All amounts in €'000)
| Group | Company | |||||
|---|---|---|---|---|---|---|
| Note | 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | ||
| Sales | 575.384 | 547.414 | 2.898 | 3.392 | ||
| Cost of goods sold | 29 | (496.163) | (488.021) | (2.421) | (2.944) | |
| Gross profit | 79.220 | 59.393 | 477 | 448 | ||
| Selling and research costs | 29 | (43.250) | (39.814) | (123) | (157) | |
| Administrative expenses | 29 | (67.694) | (61.983) | (8.927) | (10.355) | |
| Other operating income | 31 | 17.824 | 9.327 | 3.130 | 4.702 | |
| Other gains/ (losses) - net | 32 | (2.170) | (4.632) | (3.685) | (6.833) | |
| Gain from change in interest held in subsidiary / sale of pre-emption rights |
10 | - | 51.771 | - | 764 | |
| Operating profit / (loss) | (16.069) | 14.061 | (9.127) | (11.430) | ||
| Finance expenses | 33 | (21.626) | (21.558) | (1.153) | (1.764) | |
| Finance income | 33 | 1.018 | 2.264 | 608 | 755 | |
| Finance income /(expenses) - net | (20.608) | (19.294) | (545) | (1.009) | ||
| Share of losses of associates | 11 | (2.127) | (78) | - | - | |
| Loss before income tax | (38.804) | (5.311) | (9.672) | (12.438) | ||
| Income tax expense | 34 | (7.077) | 2.733 | (88) | (594) | |
| Loss for the year | (45.881) | (2.577) | (9.761) | (13.032) | ||
| Other comprehensive income : Fair value gains / (losses) on available for sale financial assets , net of |
||||||
| tax | 13 | (1.376) | (119) | (5) | (2) | |
| Currency translation differences, net of tax | (169) | (967) | - - |
|||
| Cash flow hedges | 26 | (805) | (436) | - | - | |
| Effect of change in non-controlling interest | 10 | - | (51.007) | - | - | |
| Other comprehensive income for the year, net of tax | (2.350) | (52.529) | (5) | (2) | ||
| Total comprehensive income for the year | (48.231) | (55.107) | (9.766) | (13.034) | ||
| Profit / (loss) attributable to: | ||||||
| Equity holders of the Company | (30.530) | 10.497 | (9.761) | (13.032) | ||
| Non-controlling interest | (15.351) | (13.075) | - | - | ||
| (45.881) | (2.577) | (9.761) | (13.032) | |||
| Total comprehensive income attributable to: | ||||||
| Equity holders of the Company | (32.100) | 9.406 | (9.766) | (13.034) | ||
| Non-controlling interest | (16.131) | (64.513) | - | - | ||
| (48.231) | (55.107) | (9.766) | (13.034) | |||
| Earnings per share for profit / (loss) attributable to the equity holders of the Company during the year (expressed in € per share) |
||||||
| Basic | 35 | (0,23) | 0,08 | (0,07) | (0,10) | |
| Diluted | 35 | (0,23) | 0,08 | (0,07) | (0,10) | |
(All amounts in €'000)
| Attributable to equity holders of the Company | Non-controlling interest |
Total equity | ||||
|---|---|---|---|---|---|---|
| Note | Share capital | Other reserves Retained earnings | ||||
| Balance at 1 January 2009 | 374.046 | 187.099 | (128.481) | 35.822 | 468.487 | |
| Loss for the year | - | - 10.497 |
(13.075) | (2.577) | ||
| Fair value losses on available for sale financial assets | 13 | - (75) |
- (44) |
(119) | ||
| Currency translation differences | - | (730) | - (237) |
(967) | ||
| Cash flow hedge | 26 | - (286) |
- (150) |
(436) | ||
| Effect of change in non-controlling interest | 10 | - | - | - (51.007) |
(51.007) | |
| Total comprehensive income for the year | - (1.091) |
10.497 | (64.513) | (55.107) | ||
| Share capital increase in subsidiary | 10 | - | - | - 83.957 |
83.957 | |
| Distribution of treasury shares | 21 | 3.102 | - (2.123) |
65 | 1.044 | |
| Employees stock options scheme | - | - | - | - - |
||
| - value of employee services | 21 | - | - 175 |
5 180 |
||
| Dividend | - | - | - (204) |
(204) | ||
| Acquisition of subisidiaries | - | - | - 2.138 |
2.138 | ||
| Transfer | 22 | - 216 |
(246) | 30 | - | |
| 3.102 | 216 | (2.194) | 85.991 | 87.116 | ||
| Balance at 31 December 2009 | 377.148 | 186.224 | (120.177) | 57.300 | 500.495 | |
| Balance at 1 January 2010 | 377.148 | 186.224 | (120.177) | 57.300 | 500.495 | |
| Loss for the year | - | - (30.530) |
(15.351) | (45.881) | ||
| Fair value losses on available for sale financial assets | 13 | - (859) |
- (518) |
(1.376) | ||
| Currency translation differences | - | (280) | - 112 |
(168) | ||
| Cash flow hedge | 26 | - (430) |
- (375) |
(805) | ||
| Total comprehensive income for the year | - (1.568) |
(30.530) | (16.132) | (48.231) | ||
| Distribution of treasury shares | 21 | 4.622 | (3.955) | 159 | 826 | |
| Employees stock options scheme | ||||||
| - value of employee services | 21 | - 45 |
- | - 45 |
||
| Dividend | - | - | - (2) |
(2) | ||
| Effect of change in interest held in subsidiary | 10 | - (5) |
(55) | 81 | 21 | |
| Disposal of subisidiaries | 10 | - 171 |
(171) | (338) | (338) | |
| Transfer | - 1.485 |
(1.054) | (431) | - | ||
| 4.622 | 1.696 | (5.234) | (532) | 552 | ||
| Balance at 31 December 2010 | 381.771 | 186.352 | (155.942) | 40.636 | 452.817 |
Analysis of other reserves is presented in note 22.
| Retained | |||||
|---|---|---|---|---|---|
| Note | Share capital | Other reserves | earnings | Total equity | |
| Balance at 1 January 2009 | 374.046 | 147.118 | (40.913) | 480.251 | |
| Loss for the year | - - |
(13.032) | (13.032) | ||
| Fair value gains on available for sale financial assets | 13 | - (2) |
- | (2) | |
| Total comprehensive income for the year | - (2) |
(13.032) | (13.034) | ||
| Distribution of treasury shares | 21 | 3.102 | - | (2.058) | 1.044 |
| Transfer | - 614 |
(614) | - | ||
| 3.102 | 614 | (2.672) | 1.044 | ||
| Balance at 31 December 2009 | 377.148 | 147.730 | (56.617) | 468.261 | |
| Balance at 1 January 2010 | 377.148 | 147.730 | (56.617) | 468.261 | |
| Loss for the year | - - |
(9.761) | (9.761) | ||
| Fair value gains on available for sale financial assets | 13 | - (5) |
- | (5) | |
| Total comprehensive income for the year | - (5) |
(9.761) | (9.766) | ||
| Distribution of treasury shares | 21 | 4.622 | - | (3.796) | 826 |
| 4.622 | - | (3.796) | 826 | ||
| Balance at 31 December 2010 | 381.771 | 147.725 | (70.174) | 459.322 |
Analysis of other reserves is presented in note 22.
(All amounts in €'000)
| Group | Company | ||||
|---|---|---|---|---|---|
| Note | 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | |
| Cash flows from operating activities | |||||
| Cash generated from operations | 36 | 55.045 | 45.545 | (5.923) | (2.264) |
| Interest paid | (21.669) | (21.384) | (1.153) | (1.764) | |
| Income tax paid | (1.484) | 3.647 | (95) | 5.075 | |
| Net cash generated from operating activities | 31.891 | 27.808 | (7.171) | 1.047 | |
| Cash flows from investing activities | |||||
| Purchase of property, plant and equipment (PPE) | (55.332) | (68.933) | (58) | (373) | |
| Purchase of investment property | (396) | - (2) |
- | ||
| Purchase of intangible assets | (28.165) | (29.443) | (2) | (33) | |
| Proceeds from sale of PPE | 5.585 | 5.045 | 3.737 | 1.093 | |
| Proceeds from sale of investment property | 3.269 | 22 | 969 | 22 | |
| Proceeds from sale of intangible assets | 942 | 53 | - 53 |
||
| Acquisition of financial assets at fair value through profit or loss | 19 | - (118) |
- - |
||
| Acquisition of available-for-sale financial assets | 13 | (52) | (8) | - (8) |
|
| Proceeds from sale of financial assets at fair value trough profit or loss | - | 401 | - - |
||
| Proceeds from sale of available - for - sale financial assets | - | 470 | - - |
||
| Acquisition of subsidiary, net of cash acquired | 38 | (1.013) | (896) | - (1.000) |
|
| Disposal of subsidiaries | 10 | 415 | - | - - |
|
| Establishment of subsidiary/Share capital increase by subsidiary | 10 | 95 | 49.823 | (15.589) | - |
| Purchase of associates | 11 | (297) | - | - - |
|
| Dividends received | - 12 |
200 | 1.500 | ||
| Interest received | 626 | 1.004 | 216 | 255 | |
| Net cash from investing activities | (74.321) | (42.568) | (10.528) | 1.509 | |
| Cash flows from financing activities | |||||
| Dividends paid to Company's shareholders | (43) | (75) | (43) | (75) | |
| Dividends paid to non-controlling interest | (2) | (204) | - - |
||
| Proceeds from borrowings | 42.822 | 64.362 | 15.100 | - | |
| Repayments of borrowings | (30.618) | (59.397) | (3.098) | (3.400) | |
| Proceeds from grants | 25 | 5.764 | 20.924 | - - |
|
| Repayments of finance leases | (5.140) | (4.892) | (357) | - | |
| Net cash from financing activities | 12.783 | 20.718 | 11.602 | (3.475) | |
| Net (decrease) / increase in cash and cash equivalents | (29.647) | 5.958 | (6.097) | (919) | |
| Cash and cash equivalents at beginning of year | 64.641 | 58.682 | 10.146 | 11.064 | |
| Cash and cash equivalents at end of year | 20 | 34.994 | 64.641 | 4.048 | 10.146 |
INTRACOM Holdings S.A., with the distinctive title "INTRACOM HOLDINGS" ("INTRACOM"), was incorporated in Greece and its shares are traded in the Athens Stock Exchange.
Intracom Group operates, through the subsidiaries and associates, in developing products, providing services and undertaking complex, integrated and advanced technology projects in the telecommunications, defence, public administration, and banking & finance industries and has also activities in the construction sector and the telecommunications sector. The parent company operates as a holding company.
The Group operates in Greece, U.S.A, Bulgaria, Romania, as well as in other foreign countries.
The Company's registered office is at 19 km Markopoulou Ave., Peania Attikis, Greece. Its website address is www.intracom.com.
These financial statements have been approved for issue by the Board of Directors on 30 March 2011 and are subject to approval by the Annual General Meeting of the Shareholders.
These financial statements consist of the stand alone financial statements of Intracom Holdings S.A. (the "Company") and the consolidated financial statements of the Company and its subsidiaries (the "Group") for the year ended 31 December 2010, in accordance with International Financial Reporting Standards ("IFRS"), as adopted by the European Union (EU).
These financial statements have been prepared under the historical cost convention, as modified by the available-for-sale financial assets, financial assets at fair value through profit or loss and derivative financial instruments, which are carried at fair value.
The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgement in the process of applying the Company's accounting policies. Moreover, the use of estimates and assumptions is required that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of preparation of financial statements and the reported income and expense amounts during the reporting period. Although these estimates are based on the best possible knowledge of management with respect to the current conditions and activities, the actual results can eventually differ from these estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 4.
Accounting policies used in the preparation of the financial statements of subsidiaries, associates and joint ventures are consistent with those applied by the parent company.
Certain new standards, amendments to standards and interpretations have been issued that are mandatory for periods beginning during the current reporting period and subsequent reporting periods. The Group's evaluation of the effect of these new standards, amendments to standards and interpretations is as follows:
The revised IFRS 3 introduces a number of changes in the accounting for business combinations which will impact the amount of goodwill recognized, the reported results in the period that an acquisition occurs, and future reported results. Such changes include the expensing of acquisition-related costs and recognizing subsequent changes in fair value of contingent consideration in the profit or loss (rather than by adjusting goodwill). The amended IAS 27 requires that a change in ownership interest of a subsidiary is accounted for as an equity transaction. Therefore such a change will have no impact on goodwill, nor will it give raise to a gain or loss. Furthermore the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss of control of a subsidiary. The changes introduced by these standards will be applied prospectively and will affect future acquisitions and transactions with non-controlling interests. The Group has applied these changes from 1st January 2010.
The purpose of the amendment is to clarify the scope of IFRS 2 and the accounting for group cash-settled sharebased payment transactions in the separate or individual financial statements of the entity receiving the goods or services, when that entity has no obligation to settle the share-based payment transaction. This amendment had no impact on the Group's financial statements.
This amendment clarifies how the principles that determine whether a hedged risk or portion of cash flows is eligible for designation should be applied in particular situations. This amendment has no impact on the Group's financial statements.
This interpretation addresses the diversity in accounting for real estate sales. Some entities recognise revenue in accordance with IAS 18 (i.e. when the risks and rewards in the real estate are transferred) and others recognise revenue as the real estate is developed in accordance with IAS 11. The interpretation has no impact on the Group's financial statements.
The amendments set out below describe the key changes to IFRS's following the publication in April 2009 of the results of the IASB's annual improvements project. These amendments have not yet been endorsed by the EU. The following amendments are effective for the current period / year. In addition, unless otherwise stated, the following amendments will not have a material impact on the Group's financial statements.
The amendment confirms that contributions of a business on formation of a joint venture and common control transactions are excluded from the scope of IFRS 2.
The amendment clarifies disclosures required in respect of non-current assets classified as held for sale or discontinued operations.
The amendment provides clarifications on the disclosure of information about segment assets.
The amendment provides clarification that the potential settlement of a liability by the issue of equity is not relevant to its classification as current or non-current.
The amendment requires that only expenditures that result in a recognized asset in the statement of financial position can be classified as investing activities.
The amendment provides clarification as to the classification of leases of land and buildings as either finance or operating.
The amendment provides additional guidance regarding the determination as to whether an entity is acting as a principal or an agent.
The amendment clarifies that the largest cash-generating unit to which goodwill should be allocated for the purposes of impairment testing is an operating segment as defined by paragraph 5 of IFRS 8 (that is before the aggregation of segments).
The amendments clarify (a) the requirements under IFRS 3 (revised) regarding accounting for intangible assets acquired in a business combination and (b) the description of valuation techniques commonly used by entities when measuring the fair value of intangible assets acquired in a business combination that are not traded in active markets.
The amendments relate to (a) clarification on treating loan pre-payment penalties as closely related derivatives, (b) the scope exemption for business combination contracts and (c) clarification that gains or losses on cash flow hedge of a forecast transaction should be reclassified from equity to profit or loss in the period in which the hedged forecast cash flow affects profit or loss.
IFRS 9 states that financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, particular transaction costs. Subsequently financial assets are measured at amortized cost or fair value and depend on the basis of the entity's business model for managing the financial assets and the contractual cash flow characteristics of the financial asset. IFRS 9 prohibits reclassifications
except in rare circumstances when the entity's business model changes; in this case, the entity is required to reclassify affected financial assets prospectively. IFRS 9 classification principles indicate that all equity investments should be measured at fair value. However, management has an option to present in other comprehensive income unrealised and realised fair value gains and losses on equity investments that are not held for trading. Such designation is available on initial recognition on an instrument-by-instrument basis and is irrevocable. There is no subsequent recycling of fair value gains and losses to profit or loss; however, dividends from such investments will continue to be recognized in profit or loss. IFRS 9 removes the cost exemption for unquoted equities and derivatives on unquoted equities but provides guidance on when cost may be an appropriate estimate of fair value. The Group is currently investigating the impact of IFRS 9 on its financial statements. The Group cannot currently early adopt IFRS 9 as it has not been approved by the EU. Only once approved will the Group decide if IFRS 9 will be adopted prior to 1 January 2013.
IAS 12 (Amendment) "Income Taxes" (effective for annual periods beginning on or after 1 January 2012)
The amendment to IAS 12 provides a practical approach for measuring deferred tax liabilities and deferred tax assets when investment property is measured using the fair value model in IAS 40 "Investment Property". Under IAS 12, the measurement of deferred tax depends on whether an entity expects to recover an asset through use or through sale. However, it is often difficult and subjective to determine the expected manner of recovery with respect to investment property measured at fair value in terms of IAS 40. To provide a practical approach in such cases, the amendments introduce a presumption that an investment property is recovered entirely through sale. This presumption is rebutted if the investment property is depreciable and is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale. The presumption cannot be rebutted for freehold land that is an investment property, because land can only be recovered through sale. This amendment has not yet been endorsed by the EU.
IAS 24 (Amendment) "Related Party Disclosures" (effective for annual periods beginning on or after 1 January 2011)
This amendment attempts to relax disclosures of transactions between government-related entities and clarify related-party definition. More specifically, it removes the requirement for government-related entities to disclose details of all transactions with the government and other government-related entities, clarifies and simplifies the definition of a related party and requires the disclosure not only of the relationships, transactions and outstanding balances between related parties, but of commitments as well in both the consolidated and the individual financial statements. The Group will apply these changes from their effective date.
IAS 32 (Amendment) "Financial Instruments: Presentation" (effective for annual periods beginning on or after 1 February 2010)
This amendment clarifies how certain rights issues should be classified. In particular, based on this amendment, rights, options or warrants to acquire a fixed number of the entity's own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. This amendment is not expected to impact the Group's financial statements.
IFRS 7 (Amendment) "Financial Instruments: Disclosures" – transfers of financial assets (effective for annual periods beginning on or after 1 July 2011)
This amendment sets out disclosure requirements for transferred financial assets not derecognised in their entirety as well as on transferred financial assets derecognised in their entirety but in which the reporting entity has continuing involvement. It also provides guidance on applying the disclosure requirements. This amendment has not yet been endorsed by the EU.
(All amounts in €'000)
The amendments set out below describe the key changes to IFRSs following the publication in May 2010 of the results of the IASB's annual improvements project. The following amendments are effective for annual periods beginning on or after 1 January 2011. In addition, unless otherwise stated, the following amendments will not have a material impact on the Group's financial statements.
The amendments provide additional guidance with respect to: (i) contingent consideration arrangements arising from business combinations with acquisition dates preceding the application of IFRS 3 (2008); (ii) measuring non-controlling interests; and (iii) accounting for share-based payment transactions that are part of a business combination, including un-replaced and voluntarily replaced share-based payment awards.
The amendments include multiple clarifications related to the disclosure of financial instruments.
The amendment clarifies that entities may present an analysis of the components of other comprehensive income either in the statement of changes in equity or within the notes.
The amendment clarifies that the consequential amendments to IAS 21, IAS 28 and IAS 31 resulting from the 2008 revisions to IAS 27 are to be applied prospectively.
The amendment places greater emphasis on the disclosure principles that should be applied with respect to significant events and transactions, including changes to fair value measurements, and the need to update relevant information from the most recent annual report.
Subsidiaries are all entities (including special purpose entities) over which the group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases.
The group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the group recognizes any non-controlling interest in the acquiree either at fair value or at the non-controlling interest's proportionate share of the acquiree's net assets.
Investments in subsidiaries are accounted for at cost less impairment. Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the group's share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the statement of comprehensive income.
Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
The group treats transactions with non-controlling interests as transactions with equity owners of the group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.
When the group ceases to have control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.
Joint ventures or jointly controlled entities are accounted for by proportional consolidation. The Group combines its share in the joint venture on a line-by-line basis in the financial statements.
The Group recognises the portion of gains or losses on the sale of assets by the Group to the joint venture that is attributable to the other venturers. The Group does not recognise its share of profits or losses from the joint venture that result from the purchase of assets by the Group from the joint venture until it resells the assets to an independent party. However, if a loss on the transaction provides evidence of a reduction in the net realizable value of current assets or an impairment loss, the loss is recognised immediately.
Accounting policies of joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group.
The Company accounts for investments in joint ventures in its stand alone financial statements at cost less impairment.
Associates are entities over which the Group generally has between 20% and 50% of the voting rights, or over which the Group has significant influence, but which it does not control. Investments in associates are accounted for by the equity method of accounting and are initially recognised at cost. The Group's investment in associates includes goodwill (net of any cumulative impairments losses) identified in acquisition.
Under this method the Group's share of the post-acquisition profits or losses of associates is recognised in the income statement and its share of post-acquisition movements in reserves is recognised in reserves. The
cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's interest in the associates; unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. The Group's investment in associates includes goodwill (net of accumulated amortisation) on acquisition. When the Group's share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise further losses, unless the Group has incurred obligations or made payments on behalf of the associates.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate.
Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.
The Company accounts for investments in associates in its stand alone financial statements at cost less impairment.
The segments are determined on the basis of internal information reviewed by the management of the Group and are reported in the financial statements based on this internal component classification.
Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The consolidated financial statements are presented in Euros, which is the Company's functional and presentation currency.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. Translation differences on non-monetary items, such as equities held at fair value through profit or loss, are reported as part of the fair value gain or loss.
The results and financial position of all the group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are taken to shareholders' equity. When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.
Investment property, principally comprising land and buildings, is held by the Group for long-term rental yields. Investment property is measured at cost less depreciation. When the carrying amounts of the investment property exceed their recoverable amounts, the difference (impairment) is charged directly in the income statement.
The Company classifies all land and buildings rented to subsidiaries as investment property in its stand alone financial statements.
The land classified as investment property is not depreciated. Depreciation on buildings is calculated using the straight-line method to allocate the cost of each asset to its residual value over its estimated useful life, which is 33-34 years.
All property, plant and equipment ("PPE") is shown at cost less subsequent depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group higher than the initially expected according to the initial return of the financial asset and under the assumption that the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
Land is not depreciated. Depreciation on PPE is calculated using the straight-line method to allocate the cost of each asset to its residual value over its estimated useful life, in order to write down the cost in its residual value. The expected useful life of property, plant and equipment is as follows:
| - Buildings | 33-34 | years |
|---|---|---|
| - Machinery, installations and equipment | 10 years | |
| - Motor vehicles | 5-7 years | |
| - Telecommunications equipment | 5-10 years | |
| - Other equipment | 5-10 years |
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
When the carrying amount of the asset is higher than its recoverable amount, the resulting difference (impairment loss) is recognized immediately as an expense in the income statement.
In case of sale of property, plant and equipment, the difference between the sale proceeds and the carrying amount is recognized as profit or loss in the income statement.
Finance costs are recognized in the income statement in the period in which they arise.
Leases of property, plant and equipment whereby the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease's inception at the lower of the fair value of the leased property, plant and equipment and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. If there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, the property, plant and equipment acquired under finance leases is depreciated over the shorter of the useful life of the asset or the lease term.
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.
Goodwill is not amortized but is tested for impairment annually and whenever there is an indication that the goodwill may be impaired. Goodwill acquired on a business combination is allocated to the cash-generating units or groups of cash-generating units that are expected to benefit from the synergies of the combination. Impairment is determined by assessing the recoverable amount of the cash-generating units, which are related to goodwill.
If the carrying amount of the cash-generating unit, including goodwill that has been allocated, exceeds the recoverable amount of the unit, impairment is recognized.
Gains and losses on the disposal of a cash-generating unit to which goodwill has been allocated include the carrying amount of goodwill relating to the part sold. The amount of goodwill attributable to the part sold is determined by the relative values of the part sold and the part of the cash-generating unit retained.
Goodwill on business combinations has been allocated and is monitored by the Group on the basis of the cashgenerating units which have been identified according to the provisions of IAS 36 "Impairment of Assets". The Group has performed impairment tests, at a Group level, on cash-generating units to which goodwill has been allocated, and no impairment loss has resulted.
The caption 'intangible assets' includes:
a) Computer software: Purchased computer software is stated at historical cost less subsequent amortisation. Amortisation is calculated using the straight-line method over the useful economic lives, not exceeding a period of 3-8 years. Costs associated with developing or maintaining computer software programmes are recognised as an expense as incurred. Costs that are directly associated with identifiable and unique software products controlled by the Group (internally-generated software), are recognised as part of intangible assets. Direct costs include materials, staff costs of the software development team and an appropriate portion of relevant overheads. Internally-generated software is amortised using the straight-line method over its useful live, not exceeding a period of 5-10 years.
b) Customer acquisition costs: they relate to one-off connection fees as well as commissions paid for the acquisition of new customers of the subsidiary company Hellas online and are amortised over 12 months, which is the contract period with the customer.
c) Customer relationships: they relate to amounts recognised on the acquisition of the subsidiary companies Hellas online SA, Attica Telecommunications SA and IT Services Denmark A/S and they are amortised over a period of 9, 10 and 10 years respectively.
d) Trade name: it mainly relates to asset recognised on the acquisition of the subsidiary company Hellas online SA. The trade name has an indefinite useful life.
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested for impairment annually and whenever events indicate that the carrying amount may not be recoverable. Assets that are subject to amortisation are reviewed for impairment at each balance sheet date and are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised, as expense immediately, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. Fair value less costs to sell is the amount obtainable from the sale of an asset in an arms' length transaction between knowledgeable, willing parties, less the costs of disposal. Value in use is the present value of the future cash flows expected to be derived from an asset. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cashgenerating units).
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired.
The financial assets that are reviewed for impairment (provided that the relative indications exist) are assets stated at cost (investments in subsidiaries and associates in the balance sheet of the parent company), assets measured at amortised cost based on the effective interest rate method (non-current receivables) and available for sale investments.
The recoverable amount of investments in subsidiaries and associates is determined in the same way as for nonfinancial assets.
For the purposes of impairment testing of the other financial assets the recoverable amount is determined based on the present value of future cash flows, discounted using the original asset-specific rate or a rate of a similar financial asset. Any resulting impairment losses are recognised in the income statement.
The Group classifies its investments in the following categories. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at every reporting date.
This category refers to financial assets acquired principally for the purpose of selling in the short term or if so designated by Management. Derivatives are also categorised as held for trading unless they are designated as
(All amounts in €'000)
hedges. If these assets are either held for trading or are expected to be realised within 12 months of the balance sheet date these assets are classified as current assets.
These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance sheet date, which are classified as non-current assets.
Loans and receivables are carried at amortised cost using the effective interest method.
These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance sheet date, which are classified as non-current assets.
These are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the balance sheet date.
Purchases and sales of investments are recognised on trade date, which is the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Investments are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.
Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Unrealised gains and losses arising from changes in the fair value of investments classified as available-for-sale are recognised in equity. When investments classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the income statement as gains and losses from investment securities. Impairment losses recognised in the income statement are not reversed through profit or loss.
Realised and unrealised gains and losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss' category are included in the income statement in the period in which they arise.
The fair values of quoted investments are based on year-end bid prices. If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using valuation techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models refined to reflect the issuer's specific circumstances. In cases where the fair value cannot be measured reliably, investments are measured at cost.
The Group uses derivatives to hedge interest rate risks. These derivatives are initially recognised on balance sheet at fair value on the date the contract is entered into and are subsequently remeasured at their fair value. Fair values are obtained from quoted market prices and discounted cash flow models.
All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative.
(All amounts in €'000)
The Group designates derivatives as either fair value hedges or cash flow hedges when the required criteria are met. For derivatives that do not meet the conditions for hedge accounting, gains or losses from changes in the fair value are included in the income statement.
The Group designates derivatives, for the purposes of hedge accounting, as:
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognised in equity. The gain or loss relating to the ineffective portion is recognised immediately in the income statement.
Amounts accumulated in equity in relation to cash flow hedges are recycled in the income statement in the periods when the hedged item will affect profit or loss.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement.
The derivative financial instruments of the Group at 31 December 2010 include interest rate swaps (IRS) and interest rate caps for which cash flow hedge accounting is applied.
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average method. The cost of finished and semi-finished goods, by-products and work in progress comprises design costs, raw materials, direct labour, other direct costs and related production overheads. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses and in case of work-in-progress estimated costs to completion.
Provisions for slow-moving or obsolete inventories are formed when necessary.
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the income statement.
Trade and other receivables are reduced by the amounts that have been received in advance under factoring agreements without recourse.
(All amounts in €'000)
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less.
The Group classifies a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use.
The basic criteria to classify a non-current asset (or disposal group) as held for sale are that it must be available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such assets and its sale must be highly probable.
For the sale to be highly probable:
Immediately prior to initial classification of a non current asset (or disposal group) as held for sale, the asset (or the assets and liabilities included in the disposal group) will be measured in accordance with the applicable IFRSs.
Non-current assets (or disposal groups) that are classified as assets held for sale are stated at the lower of carrying amount and fair value less costs to sell and any possible resulting impairment losses are recognised in the income statement. Any subsequent increase in fair value will be recognised in the income statement, but not in excess of the cumulative impairment loss which was previously recognised.
While a non-current asset (or non-current assets that are included in a disposal group) is classified as held for sale, it should not be depreciated or amortised.
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares are shown after the reduction of the relative income tax in reduction to the product of issue. Incremental costs directly attributable to the issue of new shares for the acquisition of other entities are included in the cost of acquisition of the new company.
Where any Group company purchases the Company's equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the Company's equity holders until the shares are cancelled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of any directly attributable incremental
(All amounts in €'000)
transaction costs and the related income tax effects, is included in equity attributable to the Company's equity holders.
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method.
All borrowing costs are recognized in the income statement as incurred.
Current income tax is computed based on the separate financial statements of each of the entities included in the consolidated financial statements, in accordance with the tax rules in force in Greece and other tax jurisdictions in which foreign subsidiaries operate. Current income tax expense consists of income taxes for the current year based on each entity's profits as adjusted in its tax returns and additional income taxes to cover potential tax assessments which are likely to occur from tax audits by the tax authorities, using the enacted tax rates.
Trade payables are recognized initially at fair value and subsequently measured at amortised cost using the effective interest method.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. The deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit or loss.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries, joint ventures and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date.
The Group contributes to both defined benefit and defined contribution plans.
(All amounts in €'000)
The regular contributions for defined contribution plans constitute net periodic costs for the year in which they are due and as such are included in staff costs.
The liability in respect of defined benefit pension or retirement plans is the present value of the defined benefit obligation at the balance sheet date minus the fair value of plan assets (where funded) together with adjustments for actuarial gains/ losses and past service cost. Independent actuaries using the projected unit credit method calculate the defined benefit obligation annually.
Cumulative actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions in excess of the greater of 10% of the value of plan assets or 10% of the defined benefit obligation are spread to income over the employees' expected average remaining working lives. Past-service costs are recognised immediately in income, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are amortised on a straight-line basis over the vesting period.
Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to either: terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.
Where there is uncertainty about the number of employees who will accept an offer of termination benefits, the Group discloses information about the contingent liability.
The Group operates an equity-settled, share-based compensation plan. The fair value of the employee services received in exchange for the grant of the share options is recognised as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted. At each balance sheet date, the entity revises its estimates of the number of options that are expected to become exercisable. It recognises the impact of the revision of original estimates, if any, in the income statement, and a corresponding adjustment to equity over the remaining vesting period. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions.
Government grants relating to costs are deferred and recognised in the income statement over the period necessary to match them with the costs they are intended to compensate. Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities and are credited to the income statement on a straight-line basis over the expected lives of the related assets.
Provisions are recognized when:
(All amounts in €'000)
The Group recognizes a provision that represents the present value of the estimated liability for the repair or replacement of guaranteed products or concerning the delivery of projects / rendering of services at the balance sheet date. This provision is calculated on the basis of historical facts over repairs and replacements.
The claims over compensated absences are recognized as incurred. The Group recognizes the expected cost of short-term employee benefits in the form of compensated absences based on their unused entitlement at the balance sheet date.
The Group recognizes a provision with an immediate charge to the income statement for loss-making construction contracts or long-term service contracts when the expected revenues are lower than the unavoidable expenses which are estimated to arise in order that the contract commitments are met.
Revenue comprises the fair value of the sale of goods and services, net of value-added tax, rebates and discounts and after eliminating sales within the Group. Revenue is recognised as follows:
Sales of goods are recognized when a Group entity has delivered products to the customer; the customer has accepted the products; and collectibility of the related receivables is reasonably assured.
Sales of services are recognized in the accounting period in which the services are rendered, by reference to the stage of completion of the specific service. The stage of completion is assessed on the basis of the costs of the actual services provided until the balance sheet date as a proportion of the costs of the total estimated services to be provided under each contract. Costs of services are recognized in the period incurred. When the services to be provided under a contract cannot be reliably estimated, revenue is recognized only to the extent of costs incurred that are possibly recoverable.
Revenue from fixed price contracts are recognized, as long as the contract outcome can be estimated reliably, on the percentage of completion method, measured by reference to the percentage of labour hours incurred to date to estimated total labour hours for each contract.
Revenue from cost plus contracts is recognized by reference to the recoverable costs incurred during the period plus the fee earned, measured by the proportion that costs incurred to date bear to the estimated total costs of the contract.
(All amounts in €'000)
Interest income is recognized on a time-proportion basis using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at original effective interest rate. Subsequently, interest is recognized on the impaired value.
Dividends are recognized when the right to receive payment is established.
Dividend distribution to the Company's shareholders is recognised as a liability in the Group's financial statements in the period in which the dividends are approved by the Company's shareholders.
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares held as treasury shares.
Diluted earnings per share is calculated by dividing the profit attributable to equity holders of the Company (after deducting interest on convertible shares, net of tax) by the weighted average number of ordinary shares outstanding during the year (adjusted for the effect of dilutive convertible shares).
Differences between amounts presented in the financial statements and corresponding amounts in the notes result from roundings.
In the group balance sheet at 31 December 2009, the amount of €447 has been reclassified from current income tax assets ('current assets') to deferred income tax assets ('non-current assets').
INTRACOM S.A., being a Greek multinational company, is exposed to a variety of financial risks, including market risk (the effects of changes in foreign currency exchange rates, cash flow and fair value risk from changes in interest rates and market prices), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group as a whole.
The financial liabilities of the Group include short-term loans, long-term loans, bond loans and finance lease agreements, through which the Group finances its working capital and capital expenditure needs. Moreover, the Group manages financial assets, mainly short-term bank deposits arising from operating activities.
Derivative financial instruments are used exclusively for the hedging of interest or exchange rate risk, since according to the approved policy, speculative use is not permitted.
In summary, the financial risks that arise are analyzed below.
The foreign exchange risk of the Group is limited, since for most of the foreign currency receivables, there are corresponding payables in the same currency. Almost all foreign currency contracts for both assets and liabilities are denominated in USD.
In cases where natural hedge is not adequate due to large amounts of foreign currency payables, the Group may convert part of the borrowings to that currency or may use forward currency contracts.
The Group's policy is to maintain a minimum amount of cash in foreign currency, to meet short-term liabilities in that currency.
The following table presents the sensitivity of the Group's net profit in possible fluctuations of the foreign exchange rates for the years 2010 and 2009. This analysis takes into consideration borrowings and cash and cash equivalents of the Group, as well as trade receivables and payables in USD as at 31st December 2010 and 2009 respectively.
| Increase in | Effect on net | |
|---|---|---|
| EUR/USD rate | profit | Effect on net |
| by | 31/12/2010 | profit 31/12/2009 |
| 3,00% | 323 | 54 |
| 6,00% | 647 | 108 |
| 9,00% | 970 | 161 |
| 12,00% | 1.293 | 215 |
The following table presents the sensitivity of the Company's net profit in possible fluctuations of the foreign exchange rates for the years 2010 and 2009. This analysis takes into consideration borrowings and cash and cash equivalents of the Company, as well as trade receivables and payables in USD as at 31st December 2010 and 2009 respectively.
| Increase in EUR/USD rate |
Effect on net profit |
Effect on net |
|---|---|---|
| by | 31/12/2010 | profit 31/12/2009 |
| 3,00% | (2) | (29) |
| 6,00% | (4) | (57) |
| 9,00% | (7) | (86) |
| 12,00% | (9) | (114) |
The Group has limited exposure to changes in the prices of the shares held either for trading or as available for sale financial assets.
The interest-rate risk arises mainly from the fact that almost all of the Group's borrowings carry floating interest rates. The Group assesses that during the current year, interest rate risk is limited since it is expected that interest rates will increase slightly in the medium-term. At the same time, the Group assesses the possibility for converting part of the borrowings into fixed rate.
The following tables present the sensitivity of the Group's net profit in possible fluctuations of the interest rates for the years 2010 and 2009. The analysis takes into consideration borrowings and cash and cash equivalents of the Group as at 31st December 2010 and 2009 respectively.
Financial instruments in Euro
| Increase in | Effect on net | |
|---|---|---|
| interest rates | profit | Effect on net |
| (Base units) | 31/12/2010 | profit 31/12/2009 |
| 25,00 | (813) | (702) |
| 50,00 | (1.626) | (1.404) |
| 75,00 | (2.439) | (2.107) |
| 100,00 | (3.252) | (2.809) |
Financial instruments in USD
| Increase in | Effect on net | |
|---|---|---|
| interest rates | profit | Effect on net |
| (Base units) | 31/12/2010 | profit 31/12/2009 |
| 25,00 | 6 8 |
|
| 50,00 | 12 16 |
|
| 75,00 | 18 24 |
|
| 100,00 | 24 31 |
The following tables present the sensitivity of the Company's net profit in possible fluctuations of the interest rates for the years 2010 and 2009. The analysis takes into consideration borrowings and cash and cash equivalents of the Company as at 31st December 2010 and 2009 respectively.
(All amounts in €'000)
Financial instruments in Euro
| Increase in | Effect on net | |
|---|---|---|
| interest rates | profit | Effect on net |
| (Base units) | 31/12/2010 | profit 31/12/2009 |
| 25,00 | (61) | (26) |
| 50,00 | (122) | (52) |
| 75,00 | (183) | (78) |
| 100,00 | (244) | (105) |
| Increase in interest rates |
Effect on net profit |
Effect on net |
|---|---|---|
| (Base units) | 31/12/2010 | profit 31/12/2009 |
| 25,00 | - 3 |
|
| 50,00 | - 7 |
|
| 75,00 | 1 10 |
|
| 100,00 | 1 14 |
The sales transactions of the Group are made to private companies and public sector organisations with an appropriate credit history, with which in many cases there is a long standing relationship. In cases that vendor financing to an overseas customer is required, the Group insures its credit risk via the Export Credit Insurance Organisation (ECIO). As a result, the risk of doubtful debts is considered limited.
Regarding credit risk related to cash deposits, the Group collaborates only with financial institutions of high credit rating.
Each subsidiary draws up and monitors on a monthly basis a cash flow schedule that includes the operating as well as the investing cash flows. All subsidiaries submit to Intracom Holdings on a weekly basis a detailed report of their cash and credit position, in order that an effective monitoring and co-ordination on a group level is achieved.
Prudent liquidity management is achieved by an appropriate combination of cash and cash equivalents and approved bank facilities. The Group manages the risks that may arise from lack of adequate liquidity by ensuring there are always approved bank facilities for use. The available undrawn borrowing facilities to the Group are sufficient to address any potential shortfall in cash.
On 31 December 2010 current and non-current borrowings of the Group amounted to 55% (2009: 51%) and 45% (2009: 49%) of total borrowings respectively. The increase in short-term borrowings has resulted from the maturity of medium-term bond loans. In addition to the above, it must be noted that further action is taken by the Group in order to replace the borrowings of several Group companies, currently financed through short-term facilities, with medium-term bond loans.
(All amounts in €'000)
The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern and to maintain an optimal capital structure to reduce the cost of capital.
Group's capital is considered sufficient on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital employed. Net debt is calculated as total borrowings (including 'current and non-current borrowings' as shown in the consolidated balance sheet) less 'cash and cash equivalents'. Total capital employed is calculated as 'equity attributable to Company's equity holders' as shown in the consolidated balance sheet plus net debt.
| Group | Company | |||
|---|---|---|---|---|
| 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | |
| Total borrowings (Note 23) | 351.133 | 340.640 | 27.539 | 15.894 |
| Less: Cash and cash equivalents (Note 20) | (34.994) | (64.641) | (4.048) | (10.146) |
| Net borrowings | 316.140 | 275.999 | 23.491 | 5.748 |
| Equity | 452.817 | 500.495 | 459.322 | 468.261 |
| Total capital employed | 768.957 | 776.495 | 482.812 | 474.010 |
| Gearing ratio | 41,11% | 35,54% | 4,87% | 1,21% |
Effective 1st January 2009, the Group adopted the amendment to IFRS 7 for financial instruments that are measured in the balance sheet at fair value. This amendment requires disclosures of fair value measurements by level of a fair value measurement 3-level hierarchy.
On 31 December 2010 the Group had:
Financial assets at fair value through profit or loss of €187 which are classified in Level 1.
Derivative financial instruments of €1.241 which are classified in Level 2.
Available-for-sale financial assets out of which €847 are classified in Level 1 and €10.344 are classified in Level 3.
On 31 December 2009 the Group had:
Financial assets at fair value through profit or loss of €298 which are classified in Level 1.
Derivative financial instruments of €436 which are classified in Level 2.
Available-for-sale financial assets out of which €2.222 are classified in Level 1 and €10.340 are classified in Level 3.
The fair value of financial instruments traded in active markets is based on quoted market rates at the balance sheet date ('Level 1').
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques and assumptions that are based on observable market data at the balance sheet date ('Level 2').
If the fair values of financial instruments that are not traded in an active market are based on valuation methods and assumptions that are not mainly based on observable market data, the instruments are classified in Level 3. Investments in shares, which are not publicly traded and for which the fair value cannot be reliably estimated, are presented at cost less impairment. There were no significant changes in the instruments included in Level 3 during the year.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
At 31 December 2010, the Group is organised into five segments:
(All amounts in €'000)
| Telecommunications systems |
Technology solutions for government and banking sector |
Defence systems |
Construction | Telecom operations |
Other | Total | |
|---|---|---|---|---|---|---|---|
| Total sales | 5.407 | 148.183 | 43.292 | 191.833 | 200.497 | 3.032 | 592.244 |
| Inter-segment sales | - | (5.978) | (8) | (8.360) | (268) | (2.245) | (16.860) |
| Sales from external customers | 5.407 | 142.205 | 43.284 | 183.473 | 200.228 | 787 | 575.384 |
| Operating profit / (loss) | 124 | 3.921 | 414 | 8.826 | (19.953) | (9.401) | (16.069) |
| Earnings before interest, tax, depreciation and amortisation | |||||||
| (EBITDA) | 175 | 6.778 | 2.540 | 12.166 | 48.789 | (7.294) | 63.154 |
| Depreciation (note 29) | (51) | (2.857) | (2.126) | (3.341) | (68.742) | (2.107) | (79.223) |
| Impairment of receivables (note 29) | (12) | (1.475) | - (4.626) |
(9.294) | - (15.407) | ||
| Impairment of inventory (note 29) | (8) | (225) | (440) | - | - | - (673) |
|
| Impairment of investment property and intangibles assets (note | |||||||
| 32) | - | (496) | - | - | - | - (496) |
|
| Finance income (note 33) | 20 | - 111 |
266 | 5 616 |
1.018 | ||
| Finance expenses (note 33) | (3) | (3.968) | 23 | (5.013) | (11.505) | (1.159) | (21.626) |
| Share of (loss) / profit of associates | (1.888) | - | - (239) |
- | - (2.127) |
||
| Income tax | (17) | (2.941) | (433) | (2.912) | (643) | (130) | (7.077) |
| Total assets | 109.282 | 158.050 | 111.099 | 245.556 | 404.176 | 138.589 | 1.166.752 |
| Total assets include: | |||||||
| Invetsments in associates (note 11) | 109.802 | - | - 1.042 |
- - |
110.844 | ||
| Non-current assets* | 153 | 31.700 | 51.686 | 60.219 | 310.732 | 101.264 | 555.754 |
| Additions in Non-current assets* (notes 6, 7, 8 and 9) | 83 | 7.645 | 514 | 6.893 | 55.418 | 62 | 70.616 |
| Total liabilities | 645 | 118.872 | 44.780 | 148.747 | 363.151 | 37.739 | 713.935 |
* Includes PPE, investment property, intangible assets and goodwill.
The segment information for the year ended 31 December 2009 is as follows:
| Telecommunications systems |
Technology solutions for government and banking sector |
Defence systems |
Construction | Telecom operations |
Other | Total | |
|---|---|---|---|---|---|---|---|
| Total sales | 13.391 | 137.425 | 43.237 | 210.162 | 157.993 | 5.683 | 567.890 |
| Inter-segment sales | - | (7.583) | (7) | (9.965) | (209) | (2.712) | (20.476) |
| Sales from external customers | 13.391 | 129.842 | 43.230 | 200.197 | 157.784 | 2.970 | 547.414 |
| Operating profit / (loss) | (1.702) | 7.491 | 1.042 | 4.027 | 20.472 | (17.269) | 14.061 |
| Earnings before interest, tax, depreciation | |||||||
| and amortisation (EBITDA) | (1.332) | 10.126 | 3.345 | 7.893 | 53.669 | 3.522 | 77.223 |
| Depreciation (note 29) | (370) | (2.635) | (2.303) | (3.866) | (50.574) | (3.415) | (63.162) |
| Impairment of receivables (note 29) | (149) | (267) | - (2.400) |
(3.239) | (112) | (6.166) | |
| Impairment of inventory (note 29) | - | - (543) |
- (239) |
- (783) |
|||
| Impairment of investment property and | |||||||
| intangibles assets (note 32) | - | (928) | - | - (2.285) |
(1.579) | (4.791) | |
| Finance income (note 33) | 110 | 57 | 51 | 361 | 132 | 1.552 | 2.264 |
| Finance expenses (note 33) | (155) | (3.485) | (469) | (5.389) | (10.281) | (1.779) | (21.558) |
| Share of (loss) / profit of associates | (2.130) | - | - 2.059 |
- | (6) | (78) | |
| Income tax | - (1.239) |
(287) | (1.020) | 6.256 | (976) | 2.733 | |
| Total assets | 116.694 | 156.657 | 119.948 | 250.493 | 422.110 | 142.911 | 1.208.812 |
| Total assets include: | |||||||
| Invetsments in associates (note 11) | 112.412 | - | - 904 |
- | - 113.316 | ||
| Non-current assets* | 130 | 28.359 | 53.305 | 54.444 | 326.653 | 100.842 | 563.733 |
| Additions in Non-current assets* (notes 6, 7, | |||||||
| 8 and 9) | 64 | 7.766 | 903 | 10.186 | 123.490 | 1.712 | 144.121 |
| Total liabilities | 3.236 | 114.610 | 33.480 | 170.920 | 359.861 | 26.210 | 708.317 |
* Includes PPE, investment property, intangible assets and goodwill.
(All amounts in €'000)
The activities of the parent company Intracom Holdings SA, as well as its assets and liabilities are included under the column 'Other'. The assets consist primarily of property, plant and equipment and investment property.
The reconciliation of earnings before interest, tax, depreciation and amortization (EBITDA) to losses before tax is as follows:
| 1/1-31/12/2010 | 1/1-31/12/2009 | |
|---|---|---|
| Earnings before interest, tax, depreciation and | ||
| amortisation (EBITDA) | 63.154 | 77.223 |
| Depreciation | (79.223) | (63.162) |
| Finance cost - net (note 33) | (20.608) | (19.294) |
| Loss from associates | (2.127) | (78) |
| Loss before income tax | (38.804) | (5.311) |
Inter-segment transfers or transactions are entered into under the normal commercial terms and conditions that would also be available to unrelated third parties.
| Sales | 1/1 - 31/12/2010 | 1/1 - 31/12/2009 |
|---|---|---|
| Greece | 406.920 | 369.382 |
| European Community | 136.003 | 143.471 |
| Other European countries | 846 | 3.099 |
| Other countries | 31.614 | 31.461 |
| Total | 575.384 | 547.414 |
| Non-current assets* | 31/12/2010 | 31/12/2009 |
| Greece | 636.720 | 665.823 |
| European Community | 26.979 | 6.463 |
| Other countries | 2.899 | 4.763 |
| Total | 666.598 | 677.049 |
* Includes property, plant and equipment (PPE), investment property, intangible assets, goodwill and investments in associates.
Sales are allocated based on the country in which the customer is located. Assets are allocated based on their geographical location.
| Sales per category | 1/1 - 31/12/2010 | 1/1 - 31/12/2009 |
|---|---|---|
| Sales of products | 2.777 | 56.951 |
| Sales of goods | 65.973 | 7.823 |
| Revenue from services | 357.869 | 305.800 |
| Revenue from construction contracts | 148.765 | 176.839 |
| Total | 575.384 | 547.414 |
The revenue deriving from sales to the Greek public sector for the year amounts to €88.966.
(All amounts in €'000)
| Prepayments and | |||||||
|---|---|---|---|---|---|---|---|
| Land - | Telecommunicatio | Furniture & | assets under | ||||
| buildings | Machinery | Vehicles | ns Equipment | other equipment | construction | Total | |
| Cost | |||||||
| Balance at 1 January 2009 | 139.654 | 43.203 | 3.838 | 201.036 | 32.521 | 19.003 | 439.255 |
| Exchange differences | (71) | 34 | (41) | (16) | (9) | (8) | (109) |
| Additions | 398 | 3.461 | 168 | 19.950 | 564 | 31.140 | 55.681 |
| Acquisition of subsidiaries / businesses | 692 | 2.526 | 1 28.429 |
21 | 1.150 | 32.819 | |
| Disposals | (3.485) | (6.953) | (834) | (500) | (2.583) | (33) | (14.388) |
| Transfer to investment property (Note 9) | (5.332) | - | - | - | - - |
(5.332) | |
| Reclassifications | 999 | 2.307 | - 44.305 |
(2.159) | (45.451) | - | |
| Transfer to assets held for sale (Note 37) | (333) | (643) | (94) | - (118) |
(0) | (1.188) | |
| Balance at 31 December 2009 | 132.522 | 43.935 | 3.037 | 293.204 | 28.237 | 5.801 | 506.737 |
| Balance at 1 January 2010 | 132.522 | 43.935 | 3.037 | 293.204 | 28.237 | 5.801 | 506.737 |
| Exchange differences | (14) | (4) | 2 | 36 29 |
(2) | 48 | |
| Additions | 168 | 1.242 | 97 | 20.645 | 1.632 | 14.118 | 37.903 |
| Disposals | (237) | (3.124) | (247) | (322) | (505) | (105) | (4.539) |
| Acquisition of subsidiaries / businesses | - | - | - | - | - 34 |
34 | |
| Disposal of subsidiaries | (18) | (12) | - | - (220) |
- | (250) | |
| Reclassifications | 681 | 118 | (2) | 12.471 | 250 | (13.518) | - |
| Transfer to investment property (Note 9) | (6.340) | - | - | - | - - |
(6.340) | |
| Transfer from investment property (Note 9) | 1.522 | - | - | - | - - |
1.522 | |
| Balance at 31 December 2010 | 128.284 | 42.155 | 2.887 | 326.035 | 29.423 | 6.330 | 535.114 |
| Accumulated depreciation | |||||||
| Balance at 1 January 2009 | 20.837 | 21.726 | 1.727 | 35.943 | 25.169 | - | 105.401 |
| Exchange differences | (5) | 42 | (16) | (8) (2) |
- | 10 | |
| Depreciation | 2.486 | 3.698 | 447 | 26.363 | 1.946 | - | 34.941 |
| Acquisition of subsidiaries / businesses | - | - | - | - | - - |
- | |
| Disposals | (555) | (4.122) | (707) | (449) | (2.491) | - | (8.324) |
| Reclassifications | - | 1.717 | - | 59 (1.776) |
- | - | |
| Transfer from / (to) investment property (Note 9) | (16) | - | - | - | - - |
(16) | |
| Transfer to assets held for sale (Note 37) | (16) | (608) | (59) | - (89) |
- | (771) | |
| Balance at 31 December 2009 | 22.732 | 22.454 | 1.392 | 61.907 | 22.756 | - | 131.241 |
| Balance at 1 January 2010 | 22.732 | 22.454 | 1.392 | 61.907 | 22.756 | - | 131.241 |
| Exchange differences | (2) | (3) | - 21 |
18 | - | 34 | |
| Depreciation | 2.379 | 3.248 | 406 | 36.975 | 1.700 | - | 44.708 |
| Disposals | - | (1.422) | (182) | (181) | (488) | - | (2.274) |
| Disposals of subsidiaries | (18) | (4) | - | (0) (176) |
- | (198) | |
| Reclassifications | - | - | - (152) |
152 | - | ||
| Transfer to investment property (Note 9) | (829) | - | - | - | - - |
(829) | |
| Transfer from investment property (Note 9) | 37 | - | - | - | - - |
37 | |
| Balance at 31 December 2010 | 24.299 | 24.272 | 1.617 | 98.570 | 23.962 | - | 172.720 |
| Net book amount at 31 December 2009 | 109.790 | 21.481 | 1.645 | 231.297 | 5.481 | 5.801 | 375.496 |
| Net book amount at 31 December 2010 | 103.985 | 17.883 | 1.271 | 227.465 | 5.461 | 6.330 | 362.394 |
(All amounts in €'000)
| Buildings | Telecommunications Equipment |
Machinery | Vehicles | Furniture & other equipment |
Total | |
|---|---|---|---|---|---|---|
| 31/12/2009 | ||||||
| Cost | 601 | 15.620 | 5.171 | 934 | - | 22.325 |
| Accumulated depreciation | (41) | (2.679) | (1.591) | (268) | - | (4.579) |
| Net book amount | 559 | 12.941 | 3.580 | 665 | - | 17.746 |
| 31/12/2010 | ||||||
| Cost | 601 | 15.620 | 4.592 | 757 | 988 | 22.557 |
| Accumulated depreciation | (62) | (3.838) | (1.485) | (276) | (50) | (5.712) |
| Net book amount | 539 | 11.782 | 3.107 | 481 | 937 | 16.845 |
Furthermore, during the period, the Company entered in a sale and lease back agreement of a fixed asset with net book value as at 31/12/2010 amounting to €15.963, which is included in property, plant and equipment. The leaseback transaction is treated as finance lease with a 12 year duration (see note 23).
| Land - buildings |
Machinery | Vehicles | Furniture & other equipment |
Prepayments and assets under construction |
Total | |
|---|---|---|---|---|---|---|
| Cost | ||||||
| Balance at 1 January 2009 | 43.096 | 898 | 131 | 8.603 | - | 52.728 |
| Additions | 324 | 2 | 8 | 5 33 |
373 | |
| Disposals | (3.348) | (10) | (11) | (225) | (33) | (3.627) |
| Transfer to investment property (Note 9) | (6.721) | - | - | - - |
(6.721) | |
| Balance at 31 December 2009 | 33.351 | 891 | 128 | 8.383 | - | 42.753 |
| Balance at 1 January 2010 | 33.351 | 891 | 128 | 8.383 | - | 42.753 |
| Additions | 7 | - 33 |
4 14 |
58 | ||
| Disposals | - | - (2) |
(23) | - | (25) | |
| Transfer to investment property (Note 9) | (3.180) | - | - | - - |
(3.180) | |
| Balance at 31 December 2010 | 30.178 | 891 | 159 | 8.364 | 14 | 39.606 |
| Accumulated depreciation | ||||||
| Balance at 1 January 2009 | 6.301 | 792 | 100 | 5.667 | - | 12.859 |
| Additions | 756 | 31 | 15 | 619 | - | 1.421 |
| Disposals | (514) | (10) | (7) | (186) | - | (717) |
| Balance at 31 December 2009 | 6.543 | 813 | 107 | 6.100 | - | 13.564 |
| Balance at 1 January 2010 | 6.543 | 813 | 107 | 6.100 | - | 13.564 |
| Depreciation charge | 613 | 25 | 17 | 506 | - | 1.160 |
| Disposals | - | - (2) |
(15) | - | (17) | |
| Transfer to investment property (Note 9) | (526) | - | - | - - |
(526) | |
| Balance at 31 December 2010 | 6.630 | 839 | 122 | 6.591 | - | 14.181 |
| Net book amount at 31 December 2009 | 26.808 | 78 | 21 | 2.282 | - | 29.190 |
| Net book amount at 31 December 2010 | 23.548 | 52 | 37 | 1.773 | 14 | 25.425 |
During the period, the Company entered in a sale and lease back agreement of a fixed asset with net book value as at 31/12/2010 amounting to €15.963, which is included in property, plant and equipment. The leaseback transaction is treated as finance lease with a 12 year duration (see note 23).
(All amounts in €'000)
| Group | |
|---|---|
| Balance at 1 January 2009 | 58.259 |
| Acquisition of subsidiaries / businesses | 7.529 |
| Balance at 31 December 2009 | 65.788 |
| Balance at 1 January 2010 | 65.788 |
| Acquisitions of subsidiaries (note 38) | 2.600 |
| Balance at 31 December 2010 | 68.388 |
Goodwill resulted from the acquisition of the companies listed below and is allocated to cash generating units (CGUs) as follows:
| 31/12/2010 | 31/12/2009 | |
|---|---|---|
| Intrasoft International SA | 11.361 | 11.361 |
| Hellas online AE | 30.219 | 30.219 |
| Attica Telecommunications SA | 18.107 | 18.107 |
| IT Services Denmark A/S | 2.212 | 2.212 |
| Intrakat s.a.- construction segments | 3.562 | 3.562 |
| Prisma - Domi ΑΤΕ | 326 | 326 |
| AMBTILA Enterprises Ltd (note 38) | 2.600 | - |
| 68.388 | 65.788 |
The Group, in order to determine whether there is goodwill impairment as at 31 December 2010, performed the relevant impairment tests, at Group level, on cash generating units (CGUs) to which goodwill has been allocated, and no impairment loss resulted.
The recoverable amount of goodwill from Intrasoft International SA and IT Services Denmark A/S was determined using comparable company indicators. This approach takes into consideration among others, the risk profile and the growth prospects of a selected sample of comparable listed companies.
The recoverable amount of goodwill from Hellas online SA was calculated based on the quoted stock prices.
The recoverable amount of goodwill from Attica Telecommunications SA and Intrakat SA was determined based on value-in-use calculations. The value-in-use reflects the present value of future expected cash flows of the CGU discounted at a rate that reflects the time value of money and the risks associated with the CGU. The activity of each subsidiary was the CGU.
(All amounts in €'000)
| Internally generated |
Customer acquisition |
Customers | |||||
|---|---|---|---|---|---|---|---|
| Software | software | costs | Trade name | Relationships | Other | Total | |
| Cost | |||||||
| Balance at 1 January 2009 | 59.140 | 2.532 | 16.126 | 7.671 | 14.719 | 1.037 | 101.224 |
| Exchange differences | (28) | (1) | - | 2 | (11) | (37) | |
| Additions | 8.079 | 3.583 | 23.989 | - 1.705 |
1 | 37.357 | |
| Disposals | (1.103) | (33) | - | - - |
- (1.137) | ||
| Impairment | (4.576) | - | - | - - |
- (4.576) | ||
| Additions from acquisitions | 9.460 | - | - | - - |
- 9.460 |
||
| Transfer to assets held fos sale (Note 37) | (1.422) | - | - | - - |
(699) | (2.121) | |
| Reclassifications | (432) | 434 | 10 | - - |
(12) | - | |
| Balance at 31 December 2009 | 69.117 | 6.514 | 40.126 | 7.672 | 16.424 | 317 | 140.170 |
| Balance at 1 January 2010 | 69.117 | 6.514 | 40.126 | 7.672 | 16.424 | 317 | 140.170 |
| Exchange differences | (4) | 5 | - (1) |
2 | - 2 |
||
| Additions | 2.189 | 4.677 | 20.162 | - - |
- 27.028 | ||
| Disposals | (968) | (12) | - | - - |
- (980) |
||
| Reclassifications | 796 | (796) | - | - - |
- - |
||
| Balance at 31 December 2010 | 71.130 | 10.388 | 60.288 | 7.671 | 16.426 | 317 | 166.221 |
| Accumulated depreciation | |||||||
| Balance at 1 January 2009 | 38.756 | 1.462 | 9.154 | - 2.823 |
1.000 | 53.196 | |
| Exchange differences | (15) | (1) | - | (10) | (25) | ||
| Additions | 6.893 | 17 18.892 |
- 1.840 |
18 | 27.660 | ||
| Disposals | (1.083) | - | - | - - |
- (1.083) | ||
| Impairment | (2.291) | - | - | - - |
- (2.291) | ||
| Transfer to assets held fos sale (Note 37) | (1.419) | - | - | - - |
(699) | (2.118) | |
| Reclassifications | 541 | (540) | 10 | - - |
(12) | - | |
| Balance at 31 December 2009 | 41.382 | 939 | 28.057 | - 4.663 |
298 | 75.338 | |
| Balance at 1 January 2010 | 41.382 | 939 | 28.057 | - 4.663 |
298 | 75.338 | |
| Exchange differences | (1) | 2 | - | - - |
- 1 |
||
| Additions | 9.438 | 74 22.449 |
- 1.840 |
17 | 33.818 | ||
| Disposals | (25) | (12) | - | - - |
- (37) |
||
| Impairment | 496 | - | - | - - |
- 496 |
||
| Balance at 31 December 2010 | 51.289 | 1.003 | 50.506 | - 6.503 |
315 | 109.617 | |
| Net book amount at 31 December 2009 | 27.735 | 5.576 | 12.069 | 7.672 | 11.761 | 19 | 64.832 |
| Net book amount at 31 December 2010 | 19.841 | 9.385 | 9.782 | 7.671 | 9.923 | 2 56.604 |
(All amounts in €'000)
| Software | Total | |
|---|---|---|
| Cost | ||
| Balance at 1 January 2009 | 2.134 | 2.134 |
| Disposals | (161) | (161) |
| Balance at 31 December 2009 | 1.973 | 1.973 |
| Balance at 1 January 2010 | 1.973 | 1.973 |
| Acquisitions | 2 | 2 |
| Balance at 31 December 2010 | 1.975 | 1.975 |
| Accumulated depreciation | ||
| Balance at 1 January 2009 | 1.915 | 1.915 |
| Amortisation charge | 191 | 191 |
| Disposals | (141) | (141) |
| Balance at 31 December 2009 | 1.964 | 1.964 |
| Balance at 1 January 2010 | 1.964 | 1.965 |
| Amortisation charge | 4 | 4 |
| Balance at 31 December 2010 | 1.968 | 1.968 |
| Net book amount at 31 December 2009 | 8 | 8 |
| Net book amount at 31 December 2010 | 7 | 7 |
(All amounts in €'000)
| Group | Company | |
|---|---|---|
| Cost | ||
| Balance at 1 January 2009 | 67.837 | 68.941 |
| Exchange differences | (108) | - |
| Acquisition of subsidiaries/ businesses | 1.275 | - |
| Transfer to assets held for sale | (7.369) | - |
| Disposals | (1.683) | (960) |
| Impairment | (2.506) | (1.579) |
| Transfer from PPE (Note 6) | 5.332 | 6.721 |
| Balance at 31 December 2009 | 62.777 | 73.123 |
| Balance at 1 January 2010 | 62.777 | 73.123 |
| Exchange differences | 139 | - |
| Additions | 396 | 2 |
| Acquisition of subsidiaries (note 38) | 2.655 | - |
| Transfer from assets held fos sale (Note 37) | 7.369 | - |
| Disposals | (3.220) | - |
| Transfer to PPE (Note 6) | (1.522) | - |
| Transfer from PPE (Note 6) | 6.340 | 3.180 |
| Balance at 31 December 2010 | 74.934 | 76.305 |
| Accumulated depreciation | ||
| Balance at 1 January 2009 | 4.712 | 8.491 |
| Exchange differences | 11 | - |
| Transfer from PPE (Note 6) | 16 | - |
| Depreciation charge | 561 | 764 |
| Disposals | (141) | (141) |
| Balance at 31 December 2009 | 5.160 | 9.114 |
| Balance at 1 January 2010 | 5.160 | 9.114 |
| Exchange differences | 26 | - |
| Transfer to PPE (Note 6) | (37) | - |
| Transfer from PPE (Note 6) | 829 | 526 |
| Depreciation charge | 696 | 897 |
| Disposals | (109) | - |
| Balance at 31 December 2010 | 6.565 | 10.537 |
| Net book amount at 31 December 2009 | 57.618 | 64.009 |
| Net book amount at 31 December 2010 | 68.368 | 65.768 |
Rental income from investment properties for 2010 amounted to €1.918 and €2.930 for the Group and the Company respectively (2009: €2.072 and €3.180 for the Group and the Company respectively).
(All amounts in €'000)
The movement in investments in subsidiaries is analyzed as follows:
| Company | ||||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | |||
| Balance at the beginning of the year | 237.088 | 247.019 | ||
| Share capital increases | 15.891 | 1.000 | ||
| Treasury shares (Note 21) | 643 | 498 | ||
| Impairment | (3.524) | (11.430) | ||
| Balance at the end of the year | 250.098 | 237.088 |
The interests held in subsidiaries and their carrying amounts at 31 December are as follows:
| 31/12/2010 | 31/12/2009 | ||||
|---|---|---|---|---|---|
| Country of | % interest | Carrying | % interest | Carrying | |
| Name | incorporation | held | value | held | value |
| Intracom SA Information Technology | Greece | 100% | 52.407 | 100% | 52.269 |
| Intracom SA Defence Electronic Systems | Greece | 100% | 71.151 | 100% | 71.013 |
| Intrakat SA | Greece | 62,24% | 22.030 | 62,24% | 21.892 |
| Intracom Holdings International Ltd | Cyprus | 100% | 7.132 | 100% | 6.829 |
| Intracom Group USA Inc | USA | 2,91% (**) | 65 | - | - |
| Hellas on Line SA | Greece | 49,25% (*) | 97.313 | 49,25% | 85.084 |
| 250.098 | 237.088 |
(*) The total shareholding as at 31 December 2010 is 53,40% through the participation of subsidiaries of the Group.
(**) The total shareholding as at 31 December 2010 is 100% through the participation of subsidiaries of the Group.
The above list contains only the direct investments in subsidiaries. A list of all the direct and indirect interests in subsidiaries is presented in note 43.
During the year 2010, Intracom Holdings paid the amount of €12.000 to its subsidiary Hellas online SA ("HoL") for the purposes of a future share capital increase. The share capital increase was approved by the General Meeting of the subsidiary's shareholders on 21/12/2010, and it was also validated by a ministerial decision.
On the date of approval of the financial statements, the share capital increase of the subsidiary is still in progress.
During the year, the subsidiary Intracom Holdings International Ltd made a share capital increase of €3.826, in which Intracom Holdings participated by contributing this amount.
(All amounts in €'000)
On 31 December 2010, the Company performed an impairment test of its shareholding in the subsidiary and recorded a loss of € 3.524.
In December 2010, the subsidiary company Intracom Group USA, subsidiary to Intracom Holdings International Ltd., proceeded to a share capital increase amounting to €65, with Intracom Holdings participating in this increase directly.
In February 2010, the subsidiary company Intracom Technologies Ltd disposed of its entire holding (67%) in the subsidiary company Fornax RT for the consideration of €360. The activities of the company as well as the result from the disposal were not material for the Group. This transaction resulted in a decrease of the noncontrolling interest by €11, while the net cash inflow arose to €200.
In March 2010, the subsidiary company Hellas online SA disposed of its entire holding (100%) in the subsidiary company Unibrain Inc for the total amount of €845. The activities of the company as well as the result from the disposal were not material for the Group. The net cash inflow deriving from the sale totaled to €171.
In June 2010, the subsidiary company Intracom IT Services SA disposed of its entire holding (39,5%) in the subsidiary company Dialogos SA for €265. The activities of the company as well as the result from the disposal were not material for the Group. This transaction resulted in a decrease of the non-controlling interest by €327, while the net cash inflow arose to €143.
In April 2010, Intrakat SA transferred part of its shareholding in the subsidiary company Eurokat ATE for €243. As a result, the shareholding has decreased from 94,38% to 54,38% and non-controlling interests increased by €246. Prior to this, there was a share capital decrease of the subsidiary resulting in a decrease of non-controlling interests by €56.
During the third quarter of the current year, the subsidiary company Databank reduced its share capital by €2.042. As a result, the non-controlling interests decreased by €204.
During the year and in connection with Intrakat subgroup, the share capital increase of the subsidiary company Fracasso Hellas SA took place. As a result, the non-controlling interests increased by €45.
For the business combinations that took place during the year 2010 see note 38.
(All amounts in €'000)
(a) On 10 March 2009 the share capital increase of the subsidiary company Hellas online ("HoL") was completed through the issuance of 31.692.308 new common shares at € 1,60 each, following the decision of the Extraordinary General Meeting of the company's shareholders on 12/12/2008 for the increase of share capital through cash and with pre-emption rights in favor of existing shareholders. Intracom Holdings SA and Intracom IT Services SA did not participate in the share capital increase of the subsidiary company. The Company sold its pre-emption rights to third parties with net proceeds of €764.
Net proceeds from the share capital increase of the subsidiary to third parties amounted to €49.823 (total proceeds €50.708 and expenses on issue of share capital €885) and have resulted in an increase to the minority interests in the statement of changes in equity.
Prior to the share capital increase of the subsidiary, the percentage interest held by the Group in Hellas online was 84,17%. Following the share capital increase, the Group's interest dropped to 63,13%, out of which 60,43% is held directly and 2,7% is held indirectly, through its 100% subsidiary company Intracom IT Services.
Due to the change in the interest holdings, the Group recorded a gain of €33.630 which is included in the profit of the year 2009 with a corresponding change in the minority interests. Total gain for the Group amounted to €34.394, which includes the gain of €764 from the sale of the pre-emption rights.
(b) During the last quarter of 2009 the Group acquired an interest of 2,39% in its subsidiary Hellas online through the acquisition of a company by a subsidiary company of the Group. This transaction resulted in the reduction of minority interests by €398 and the recognition of goodwill amounting to €7.203.
(c) On 28 December 2009, the Minister of Economy, Competitiveness and Marine approved the acquisition of Vodafone's business sector of fixed line and broadband services (DSL) by the subsidiary HoL. The share capital increase was completed on 2 February 2010 and the corresponding 28,775,838 new shares of HoL, which account for 18.5% of the issued share capital, are traded on the Athens Stock Exchange since that date.
Management considered that the date of acquisition of the sector was the 28 December 2009. The fair value of the issued shares at that date amounted to € 34.531. This amount has increased minority interests in the statement of changes in equity.
Following the share capital increase, the Group's interest is 53,40%, out of which 49,25% is held directly and 4,14% is held indirectly, through subsidiaries of the Group.
Due to the change in the interest holdings, the Group recorded a gain of €17.377 which is included in the profit of the year 2009 with a corresponding change in the minority interests.
During the year 2009, the subsidiary Intracom Holdings International Ltd made a share capital increase of €1.000, in which Intracom Holdings participated by contributing this amount.
On 31 December 2009, the Company performed an impairment test of its shareholding in the subsidiary and recorded a loss of € 11.430.
(All amounts in €'000)
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Balance at the beginning of the year | 113.316 | 116.397 | 115.900 | 116.175 |
| Additions | 297 | - | - - |
|
| Disposals | - (200) |
- (276) |
||
| Transfer to subsidiary | (70) | - | - | |
| Share of loss | (1.998) | (2.322) | - - |
|
| Effect of tax, dividends and exchange differences | (702) | (560) | - - |
|
| Balance at the end of the year | 110.844 | 113.316 | 115.900 | 115.900 |
The direct shareholding of the Company in associates relates to Intracom SA Telecommunication Services.
Information about the Group's associates is presented below:
| Name | Country of incorporation |
Assets | Liabilities | Equity | Revenue | Profit / (Loss) | Interest Held |
|---|---|---|---|---|---|---|---|
| INTRACOM SA TELECOMMUNICATIONS | GREECE | 552.456 | 322.427 | 230.029 | 256.409 | (5.145) | 49,00% |
| ALPHA MOGILANY | POLAND | 6.846 | 4.484 | 2.363 | - | (263) | 25,00% |
| I.C.C. S.A. Construction Company | GREECE | 2.847 | 2.334 | 513 | 1.196 | (295) | 50,00% |
| 562.149 | 329.244 | 232.904 | 257.605 | (5.703) |
On 22 June 2010 the subsidiary Intrakat SA has acquired 50% of I.C.C. SA Construction Company's share capital for an amount summing up to a total of €297. Due to lack of management's control, this investment was classified as an associate and is accounted for using the equity method. The effect of the acquisition on the Group's financial statements is considered to be immaterial.
| Name | Country of incorporation |
Assets | Liabilities | Equity | Revenue | Profit / (Loss) | Interest Held |
|---|---|---|---|---|---|---|---|
| INTRACOM SA TELECOMMUNICATIONS | GREECE | 561.083 | 324.399 | 236.684 | 297.514 | (4.018) | 49,00% |
| ALPHA MOGILANY | POLAND | 6.884 | 4.339 | 2.546 | (322) 17 |
25,00% | |
| SC PLURIN srl | ROMANIA | 1.029 | 883 | 146 | 524 | 123 | 50,00% |
| 568.996 | 329.620 | 239.376 | 298.056 | (4.216) |
On 7 April 2009, the Company disposed of its entire holding (32,85%) in the associate company "Moldovan Lottery". The gain from the disposal for the Company and the Group amounting to €374 and €450 respectively is included in "Other gains – net" (note 32). The consideration amounting to €650 has not been received and is included in other short term receivables.
(All amounts in €'000)
The following amounts show the Group's share of assets and liabilities in joint ventures and companies that are accounted for by proportionate consolidation and are included in the balance sheet:
| 31/12/2010 | 31/12/2009 | |
|---|---|---|
| Assets | ||
| Non-current assets | 1.508 | 3.500 |
| Current assets | 27.106 | 28.150 |
| 28.613 | 31.649 | |
| Liabilities | ||
| Non-current liabilities | 30 | 286 |
| Current liabilities | 32.117 | 33.882 |
| 32.146 | 34.168 | |
| Equity | (3.533) | (2.518) |
| Income | 49.489 | 43.890 |
| Expenses | (48.409) | (43.782) |
| Profit (after tax) | 1.080 | 108 |
Information for the Group's joint ventures is included in Note 43.
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Balance at the beginning of the year | 12.562 | 13.287 | 9.520 | 9.514 |
| Additions | 52 | 8 | - 8 |
|
| Disposals | - (615) |
- - |
||
| Fair value gains / (losses) | (1.376) | (119) | (5) | (2) |
| Impairment | (46) | - (46) |
- | |
| Balance at the end of the year | 11.191 | 12.562 | 9.470 | 9.520 |
| Group | Company | |||
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Listed securities: | ||||
| - equity securities | 847 | 2.221 | 6 11 |
|
| Unlisted securities: | ||||
| - equity securities | 10.344 | 10.340 | 9.464 | 9.510 |
| 11.191 | 12.562 | 9.470 | 9.520 |
Investments in unlisted shares are shown at cost less impairment.
The investments in listed companies relate to companies listed in the Athens Stock Exchange, and are measured at their quoted stock prices at the balance sheet date.
(All amounts in €'000)
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. The offset amounts are as follows:
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Deferred tax assets | (5.236) | (7.310) | - | - |
| Deferred tax liabilities | 3.089 | 2.853 | 1.140 | 1.071 |
| (2.148) | -4.457 | 1.140 | 1.071 |
The gross amounts are as follows:
| Group | Company | |||
|---|---|---|---|---|
| Deferred tax assets: | 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 |
| To be recovered after more than 12 months | (13.200) | (13.890) | (75) | (67) |
| To be recovered within 12 months | (5.534) | (4.375) | (14) | (26) |
| (18.734) | (18.265) | (89) | (93) | |
| Deferred tax liabilities | ||||
| To be settled after more than 12 months | 12.417 | 10.028 | 1.225 | 1.164 |
| To be settled within 12 months | 4.170 | 3.780 | 4 | 1 |
| 16.587 | 13.808 | 1.228 | 1.165 | |
| (2.148) | (4.457) | 1.140 | 1.071 |
The gross movement on the deferred income tax account is as follows:
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Balance at the beginning of the year | (4.457) | 3.325 | 1.071 | 660 |
| Exchange differences | (22) | (31) | - | - |
| Charged/ (credited) to the income statement (note 34) | 2.238 | (7.271) | 68 | 411 |
| Charge in equity | - | (3) | - | - |
| Acquisition of subsidiary | - | (478) | - | - |
| Disposal of subsidiaries | 93 | - | - | - |
| Balance at the end of the year | (2.148) | (4.457) | 1.140 | 1.071 |
(All amounts in €'000)
The movement in deferred tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdictions, is as follows:
| Provisions / | ||||
|---|---|---|---|---|
| Impairment losses | Tax losses | Other | Total | |
| Balance at 1 January 2009 | (3.219) | (4.045) | (5.117) | (12.382) |
| Exchange differences | 4 | (40) | (45) | (81) |
| Charged / (credited) to the income statement | (680) | (4.822) | 289 | (5.213) |
| Charge in equity | - | - | (3) | (3) |
| Acquisition of subsidiaries | (19) | (18) | (549) | (586) |
| Balance at 31 December 2009 | (3.914) | (8.926) | (5.425) | (18.265) |
| Balance at 1 January 2010 | (3.914) | (8.926) | (5.425) | (18.265) |
| Exchange differences | - | 1 | (23) | (21) |
| Charged / (credited) to the income statement | 739 | (1.233) | (71) | (565) |
| Disposal of subsidiaries | - | - | 117 | 117 |
| Balance at 31 December 2010 | (3.174) | (10.158) | (5.402) | (18.734) |
| Trade name & | |||||
|---|---|---|---|---|---|
| Customers | Accelerated tax | ||||
| relationships | Accrued Income | depreciation | Other | Total | |
| Balance at 1 January 2009 | 4.355 | 2.747 | 4.689 | 3.917 | 15.707 |
| Exchange differences | - | - | 50 | 50 | |
| Charged / (credited) to the income statement | (369) | - (140) |
(1.549) | (2.058) | |
| Acquisition of subsidiaries | - | - 108 |
- | 108 | |
| Balance at 31 December 2009 | 3.986 | 2.747 | 4.657 | 2.418 | 13.808 |
| Balance at 1 January 2010 | 3.986 | 2.747 | 4.657 | 2.418 | 13.808 |
| Exchange differences | - | - (1) |
(0) | (1) | |
| Charged / (credited) to the income statement | (357) | 881 | 142 | 2.137 | 2.803 |
| Disposal of subsidiaries | - | - - |
(23) | (23) | |
| Balance at 31 December 2010 | 3.629 | 3.628 | 4.799 | 4.531 | 16.587 |
| Provisions | Total | |
|---|---|---|
| Balance at 1 January 2009 | (308) | (308) |
| Charged / (credited) to the income statement | 215 | 215 |
| Balance at 31 December 2009 | (93) | (93) |
| Balance at 1 January 2010 | (93) | (93) |
| Charged / (credited) to the income statement | 5 | 5 |
| Balance at 31 December 2010 | (89) | (89) |
Deferred tax liabilities:
| Accelerated tax depreciation |
Other | Total | |
|---|---|---|---|
| Balance at 1 January 2009 | 855 | 114 | 968 |
| Charged / (credited) to the income statement | 309 | (113) | 196 |
| Balance at 31 December 2009 | 1.164 | 1 | 1.165 |
| Balance at 1 January 2010 | 1.164 | 1 | 1.165 |
| Charged / (credited) to the income statement | 1 | 63 | 64 |
| Balance at 31 December 2010 | 1.165 | 64 | 1.228 |
The Company has not recognized deferred tax asset on the losses of the previous and the current year. These losses amount to €23.390.
In 2008, the Company participated in the issue of a subordinated bond loan of a total amount of €55.000 by Moreas SA, in which Intracom Holdings holds an interest of 13,33%. The Company participated in the issue of the bond loan up to its percentage shareholding in Moreas SA (13,33%), paying an amount of €7.332. The loan carries a floating interest rate (1m Euribor plus 4,0% margin).
The amount recorded on the balance sheet as at 31 December 2010 consists of the initial capital plus interest of the period 2008-2010.
(All amounts in €'000)
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Trade receivables | 240.607 | 228.515 | 809 | 637 |
| Less: provision for impairment | (37.625) | (23.053) | - | - |
| Trade receivables - net | 202.982 | 205.462 | 809 | 637 |
| Prepayments | 23.554 | 14.090 | - | - |
| Receivables from related parties (Note 41) | 17.678 | 23.961 | 13.268 | 17.027 |
| Prepaid expenses | 9.663 | 3.304 | 24 | - |
| Accrued expenses | 57.028 | 47.927 | 36 | 61 |
| Other receivables | 62.230 | 53.633 | 3.801 | 4.369 |
| Total | 373.134 | 348.377 | 17.938 | 22.094 |
| Non-current assets | 6.009 | 15.824 | 39 | 36 |
| Current assets | 367.125 | 332.553 | 17.900 | 22.058 |
| 373.134 | 348.377 | 17.938 | 22.094 |
Other receivables of the Group on 31 December 2010 include VAT receivable of approximately €20 mil. (2009: €25 mil.).
The analysis of trade receivables of the Group and the Company at the end of each year is as follows:
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Total | 202.982 | 205.462 | 809 | 637 |
| Not past due and not impaired at the balance sheet | ||||
| date | 107.035 | 104.861 | 161 | 145 |
| Impaired at the balance sheet date | 39.002 | 23.635 | - | - |
| Provision made for the following amount: | (37.625) | (23.053) | - | - |
| 1.377 | 582 | - | - | |
| Not impaired at the balance sheet date but past due in the following periods: |
||||
| < 90 days | 21.346 | 20.728 | 4 | 61 |
| 90-180 days | 14.702 | 20.226 | 101 | 95 |
| 180-270 days | 11.075 | 9.713 | 4 | - |
| 270-365 days | 8.315 | 11.009 | 98 | 95 |
| 1- 2 years | 22.107 | 22.907 | 296 | 241 |
| >2 years | 17.025 | 15.437 | 145 | - |
| 94.570 | 100.019 | 647 | 492 | |
| Total trade receivables | 202.982 | 205.462 | 809 | 637 |
(All amounts in €'000)
Trade receivables of the Group which are past due for more than one year include receivables from the Greek State of approximately €21 mil (31 December 2009: €20 mil. approximately).
There is no concentration of credit risk in relation to trade receivables, since the Group has a great number of customers. The Group has developed policies to ensure that the sales agreements take place with customers with sufficient credit quality. The credit policy of the Group is determined on a case by case basis and is set out in the agreed terms in the contract signed with each customer.
The movement of provision for impairment of trade receivables is analysed as follows:
| Group | Company | |
|---|---|---|
| Balance at 1 January 2009 | 20.453 | - |
| Exchange differences | (6) | - |
| Provision for impairment (Note 29) | 6.166 | - |
| Receivables written-off during year | (2.892) | - |
| Acquisition of subsidiaries | 1.162 | |
| Unused amounts reversed | (1.831) | - |
| Balance at 31 December 2009 | 23.053 | - |
| Exchange differences | 5 | - |
| Provision for impairment (Note 29) | 15.407 | - |
| Receivables written-off during year | (778) | - |
| Unused amounts reversed | (62) | - |
| Balance at 31 December 2010 | 37.625 | - |
Trade and other receivables are analyzed in the following currencies:
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Εuro (EUR) | 329.112 | 309.695 | 17.938 | 22.094 |
| US Dollar (USD) | 24.359 | 16.552 | - | - |
| Polish Zloty (PLN) | 7.998 | 10.461 | - | - |
| Romanian New Lei (RON) | 3.757 | 8.460 | - | - |
| Jordan Dinar (JOD) | 5.407 | 2.444 | - | - |
| Danish Corona (DKK) | 1.389 | - | - | - |
| Other | 1.113 | 764 | - | - |
| 373.134 | 348.377 | 17.938 | 22.094 |
(All amounts in €'000)
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Raw materials | 24.504 | 27.980 | - - |
|
| Semifinished goods | 7.498 | 8.532 | - - |
|
| Finished goods | 8.598 | 9.194 | - - |
|
| Work in progress | 1.219 | 818 | - - |
|
| Merchandise | 4.337 | 2.133 | - - |
|
| Other | 318 | 304 | - - |
|
| Total | 46.473 | 48.960 | - - |
|
| Less: Provisions for obsolete inventories | ||||
| Raw materials | 1.566 | 146 | - - |
|
| Semifinished goods | 370 | 1.057 | - - |
|
| Finished goods | 359 | 414 | - - |
|
| Work in progress | - 13 |
- - |
||
| Merchandise | 12 | 191 | - - |
|
| 2.307 | 1.820 | - - |
||
| Net realisable value | 44.166 | 47.140 | - | - |
The movement of the provision is as follows:
| Group | Company | |
|---|---|---|
| Balance 1 January 2009 | 1.390 | - |
| Provision for impairment | 543 | - |
| Amount of provision reversed during the year | (113) | |
| Balance 31 December 2009 | 1.820 | - |
| Provision for impairment | 673 | - |
| Amount of provision reversed during the year | (187) | - |
| Balance 31 December 2010 | 2.307 | - |
(All amounts in €'000)
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Assets | ||||
| Contracts in progress at the balance sheet date: | ||||
| Receivables from construction contracts | 12.374 | 21.618 | - - |
|
| Total | 12.374 | 21.618 | - | - |
| Liabilities | ||||
| Contracts in progress at the balance sheet date: | ||||
| Liabilities from construction contracts | 8.190 | 18.057 | - - |
|
| Total | 8.190 | 18.057 | - | - |
| Accumulated contract costs plus accumulated | ||||
| recognised profits less accumulated recognised losses | 533.926 | 582.630 | - - |
|
| Less: Progress billings | (529.742) | (579.070) | - | - |
| Construction contracts | 4.184 | 3.561 | - | - |
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 31/12/2009 | ||
| Balance at the beginning of the year | 298 | 552 | - - |
|
| Additions | - | 118 | - - |
|
| Disposals | - | (308) | - - |
|
| Fair value adjustments (Note 32) | (111) | (65) | - - |
|
| Balance at the end of the year | 187 | 298 | - | - |
Investments relate to shares of companies listed in Athens Stock Exchange Market.
(All amounts in €'000)
Cash and cash equivalents include the following for the purposes of the cash flow statement:
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | ||
| Cash at bank and in hand | 23.914 | 30.327 | 489 | 1.875 |
| Short-term bank deposits | 11.079 | 34.313 | 3.559 | 8.270 |
| Total | 34.994 | 64.641 | 4.048 | 10.146 |
The effective interest rate on short-term bank deposits for the Company was 1,99% (2009: 1,74%).
Cash and cash equivalents are analysed in the following currencies:
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Euro (EUR) | 21.664 | 51.040 | 372 | 2.557 |
| US Dollar (USD) | 4.986 | 5.811 | 97 | 1.136 |
| Japanese Yen (JPY) | 3.100 | 6.420 | 3.100 | 6.420 |
| Romanian New Lei (RON) | 4.205 | 496 | 474 | - |
| Bulgarian Leva (BGN) | 424 | 331 | - | - |
| Other | 615 | 543 | 5 | 32 |
| 34.994 | 64.641 | 4.048 | 10.146 |
The Group's bank deposits in JPY have fixed exchange rate / fixed return, and as a result there is no exposure to risk from JPY exchange rate changes.
| Number of shares |
Share capital | Share premium |
Treasury shares |
Total | |
|---|---|---|---|---|---|
| Balance at 1 January 2009 | 131.345.181 | 187.567 | 194.204 | (7.724) | 374.046 |
| Treasury shares | 600.000 | - | - | 3.102 | 3.102 |
| Balance at 31 December 2009 | 131.945.181 | 187.567 | 194.204 | (4.622) | 377.148 |
| Balance at 1 January 2010 | 131.945.181 | 187.567 | 194.204 | (4.622) | 377.148 |
| Treasury shares | 1.080.815 | - | - | 4.622 | 4.622 |
| Balance at 31 December 2010 | 133.025.996 | 187.567 | 194.204 | - 381.771 |
(All amounts in €'000)
On 31 December 2010 the Company's share capital comprised 133.026.017 shares with a nominal value of €1,41 each.
During 2009, the Company granted 600.000 treasury shares with total acquisition cost of €3.102. During 2010 the Company granted 1.080.836 treasury shares to Group employees the cost of which was €4.622. As a result on 31 December 2010 the Company does not possess any treasury shares.
The charge to the income statement from the free distribution of treasury shares for the Group and the Company was €826 and €183 respectively (2009: €1.044 and €546 respectively).
Share options are granted to directors, management and employees of the Group.
A summary of share options granted is as follows:
| Share options | 2010 | 2009 |
|---|---|---|
| Outstanding at 1 January | 99.160 | 121.790 |
| Expired | (84.860) | (22.630) |
| Outstanding at 31 December | 14.300 | 99.160 |
The outstanding share options can be exercised wholly or partly within a period of 5 years from the year granted, during the first 15 days of December of each respective year. Consequently, the share options granted during 2006 can be exercised up to December 2011. No share options were granted by the Company after year 2006.
During the year 2007, a subsidiary company granted to executives 220 share options which are based on its share price, giving the right to the executives to exchange the share options with a determined amount of cash at the end of the vesting period (31 March 2010). These benefits were accounted partly as an obligation and partly through equity.
The total charge in the consolidated income statement is €183 (liability €138 and equity €45). For the year 2009 the total charge in the consolidated income statement was €767 (liability €587 and equity €180).
During the exercise of the share options, the amounts received net of any transaction costs are included in the share capital (nominal value) and in the share premium.
The fair value of the share options is determined on grant date using the Binomial model. Fair value reflects the inputs into the model, such as the risk-free interest rate, the expected share volatility, the dividend yield and the expected option life. The fair value is recognised as an expense over the vesting period of the share options. In the case that the share options are cash-settled and thus a liability is recorded, the fair value of the share options is determined at each balance sheet date.
(All amounts in €'000)
| Statutory reserves |
Special reserves |
Tax free reserves |
Extraordinary reserves |
Other reserves | Fair value reserves |
Total | |
|---|---|---|---|---|---|---|---|
| Balance at 1 January 2009 | 29.956 | 8.099 | 121.804 | 56.797 | (28.901) | (655) | 187.099 |
| Fair value loss on available-for-sale financial | |||||||
| assets | - | - | - | - | - (75) |
(75) | |
| Exchange differences | - | - | - | - | - (730) |
(730) | |
| Fair value loss on cash flow hedge | - | - | - | - | - (286) |
(286) | |
| Transfers between reserves | 255 | - 962 |
- (920) |
(81) | 216 | ||
| Balance at 31 December 2009 | 30.211 | 8.099 | 122.765 | 56.797 | (29.822) | (1.826) | 186.224 |
| Balance at 1 January 2010 | 30.211 | 8.099 | 122.765 | 56.797 | (29.822) | (1.826) | 186.224 |
| Fair value loss on available-for-sale financial | |||||||
| assets | - | - | - | - | - (859) |
(859) | |
| Exchange differences | - | - | - | - | - (280) |
(280) | |
| Fair value loss on cash flow hedge | - | - | - | - | - (430) |
(430) | |
| Disposal of subsidiaries | - 206 |
- | - (35) |
- | 171 | ||
| Transfers between reserves | 263 | - | 1.720 | - | 812 | (1.315) | 1.480 |
| Stock options | - | - | - | - 45 |
- | 45 | |
| Balance at 31 December 2010 | 30.474 | 8.305 | 124.485 | 56.797 | (29.000) | (4.710) | 186.351 |
| Statutory reserves |
Special reserves |
Tax free reserves |
Extraordinary reserves |
Fair value reserves |
Total | |
|---|---|---|---|---|---|---|
| Balance at 1 January 2009 Fair value loss on available-for-sale financial |
26.719 | 8.069 | 55.376 | 56.981 | (27) | 147.118 |
| assets Transfer between reserves |
- - - |
- 614 |
- | - (2) - - |
(2) 614 |
|
| Balance at 31 December 2009 | 26.719 | 8.069 | 55.990 | 56.981 | (28) | 147.730 |
| Balance at 1 January 2010 Fair value loss on available-for-sale financial |
26.719 | 8.069 | 55.990 | 56.981 | (28) | 147.730 |
| assets | - - |
- | - (5) |
(5) | ||
| Balance at 31 December 2010 | 26.719 | 8.069 | 55.990 | 56.981 | (34) | 147.725 |
A legal reserve is created under the provisions of Greek law (Law 2190/20, articles 44 and 45) according to which, an amount of at least 5% of the profit (after tax) for the year must be transferred to the reserve until it reaches one third of the paid share capital. The legal reserve can only be used, after approval of the Annual General meeting of the shareholders, to offset accumulated losses and therefore cannot be used for any other purpose.
(All amounts in €'000)
The special reserve includes amounts that were created following resolutions of the Annual General meetings, have no specific purpose and can therefore be used for any reason following approval from the Annual General meeting, as well as amounts, which were created under the provisions of Greek law. These reserves have been created from after tax profits and are therefore not subject to any additional taxation in case of their distribution or capitalisation.
This account includes reserves created from profits, which were used for the acquisition of new fixed assets employed in the production process and are therefore regarded as tax-free under special provisions of development laws in force each time. In other words, this reserve is created from profits for which no tax is calculated or paid.
This reserve includes the portion of the net income carried forward every year that comes from tax-free profits and profits taxed under special provisions by using up the tax liability.
The above-mentioned reserves can be capitalised or distributed, following the approval of the Annual General Meeting, after taking into consideration the restrictions that may apply. In case of capitalisation or distribution, tax is calculated at the current tax rate.
It includes the amount of €1.241 which relates to fair value losses for the year from cash flow hedges, the amount of €641 which relates to fair value losses from available for sale investments and foreign exchange currency differences.
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Non-current borrowings | ||||
| Bank loans | 4.772 | 9.514 | 3.098 | 6.196 |
| Finance lease liabilities | 13.272 | 4.783 | 10.601 | - |
| Bond loans | 140.284 | 154.551 | - - |
|
| Total non-current borrowings | 158.328 | 168.848 | 13.699 | 6.196 |
| Current borrowings | ||||
| Bank loans | 169.376 | 162.853 | 13.098 | 9.698 |
| Bond loans | 19.589 | 3.999 | - | - |
| Finance lease liabilities | 3.840 | 4.940 | 742 | - |
| Total current borrowings | 192.805 | 171.792 | 13.840 | 9.698 |
| Total borrowings | 351.133 | 340.640 | 27.539 | 15.894 |
(All amounts in €'000)
The loans of the Group and Company are analyzed in the following currencies.
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Euro | 345.556 | 334.484 | 27.539 | 15.894 |
| US dollar (USD) | 2.587 | 2.718 | - - |
|
| Danish Corona (DKK) | 1.410 | 1.093 | - | - |
| Polish Slot | 1.574 | 2.226 | - | - |
| Other | 6 | 118 | - | - |
| 351.133 | 340.640 | 27.539 | 15.894 |
The contractual undiscounted cash flows of the non-current borrowings, excluding finance leases (including interest payments), are as follows:
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Between 1 and 2 years | 31.198 | 28.783 | 3.176 | 3.376 |
| Between 2 and 3 years | 36.691 | 33.709 | - | 3.217 |
| Between 3 and 5 years | 91.702 | 127.209 | - | - |
| More than 5 years | - | 1.235 | - | - |
| 159.591 | 190.936 | 3.176 | 6.594 |
As at December 2010 the subsidiary companies had bond loans with weighted average floating interest rate of 4,27% (2009: 3,61%).
The weighted average interest rate for all the other borrowings of the Group and the Company for 2010 was approximately 4,60% and 5,26% respectively (2009: 4,02% and 3,47% respectively).
Long-term borrowings of the Group relates mainly to the syndicated loan of the subsidiary Hellas online SA of €144,5 mil. The repayment of the loan will be in 8 installments, of which the first 7 installments will repay 50% of the total loan and the last installment payable on the expiration date of the loan will repay the remaining balance. The first installment is due in April 2011 and the last in October 2014.
Securities relating to the above borrowings are disclosed in note 40.
(All amounts in €'000)
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Finance lease liabilities- minimum lease payments | ||||
| Not later than 1 year | 4.585 | 5.414 | 1.293 | - |
| Between 2 and 5 years | 7.884 | 5.245 | 5.179 | - |
| More than 5 years | 8.681 | - | 8.484 | - |
| Total | 21.150 | 10.659 | 14.957 | - |
| Less: Future finance charges on finance leases | (4.038) | (936) | (3.614) | - |
| Present value of finance lease liabilities | 17.112 | 9.723 | 11.343 | - |
| Present value of finance lease liabilities: | ||||
| Not later than 1 year | 3.840 | 4.940 | 742 | - |
| Between 2 and 5 years | 5.864 | 4.783 | 3.373 | - |
| More than 5 years | 7.408 | - | 7.228 | - |
| Total | 17.112 | 9.723 | 11.343 | - |
During the period the Company has signed a sale and leaseback agreement for a building. From the transaction, the Company has received €11.700 that is shown under "Proceeds from borrowings" in the cash-flow statement.
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Balance sheet obligations for: | ||||
| Pension benefits | 5.215 | 4.881 | 335 | 298 |
| Income statement charge Pension benefits (Note 30) |
2.840 | 2.143 | 123 | 483 |
The amounts recognized in the balance sheet are determined as follows:
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Present value of unfunded obligations | 6.164 | 5.476 | 427 | 387 |
| Unrecognised actuarial gains / (losses) | (949) | (595) | (92) | (90) |
| Liability on the balance sheet | 5.215 | 4.881 | 335 | 298 |
(All amounts in €'000)
The amounts recognised in the income statement are as follows:
| Group | Company | |||
|---|---|---|---|---|
| 1/1-31/12/2010 | 1/1-31/12/2009 | 1/1-31/12/2010 1/1-31/12/2009 | ||
| Current service cost | 908 | 979 | 47 41 |
|
| Interest cost | 306 | 275 | 22 29 |
|
| Net actuarial losses recognised during the year | 545 | 92 | 3 - |
|
| Past-service cost | 3 | - | - - |
|
| Losses on curtailment | 1.078 | 797 | 52 413 |
|
| Total, included in staff costs | 2.840 | 2.143 | 123 | 483 |
The movement in the liability recognised on the balance sheet is as follows:
| Group | Company | |||
|---|---|---|---|---|
| 1/1-31/12/2010 | 1/1-31/12/2009 | 1/1-31/12/2010 1/1-31/12/2009 | ||
| Cost of goods sold | 1.666 | 959 | - - |
|
| Selling costs | 524 | 303 | - - |
|
| Administrative expenses | 650 | 881 | 123 | 483 |
| 2.840 | 2.143 | 123 | 483 |
The movement in the liability recognised on the balance sheet is as follows:
| Group | Company | |||
|---|---|---|---|---|
| 1/1-31/12/2010 | 1/1-31/12/2009 | 1/1-31/12/2010 1/1-31/12/2009 | ||
| Balance at the beginning of the year | 4.880 | 4.480 | 298 | 504 |
| Exchange differences | 3 | - | - | |
| Total expense charged to the income statement | 2.840 | 2.143 | 123 | 483 |
| Contributions paid | (2.448) | (1.746) | (86) | (689) |
| Disposal of subsidiary | (58) | - | - - |
|
| Balance at the end of the year | 5.214 | 4.880 | 335 | 298 |
The principal actuarial assumptions used are as follows:
| Group | Company | |||
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| Discount rate | 5,60% | 5,60% - 6,00% | 5,60% | 5,60% |
| Future salary increases | 4,00% | 0,50% - 4,50% | 4,00% | 4,50% |
(All amounts in €'000)
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Balance at the beginning of the year | 24.549 | 12.624 | - | - |
| Additions | 11.485 | 16.911 | - - |
|
| Depreciation charge (note 31) | (9.714) | (4.986) | - - |
|
| Balance at the end of the year | 26.320 | 24.549 | - - |
|
| Current portion | 5.432 | 3.168 | - | - |
| Non-current portion | 20.888 | 21.382 | - | - |
| Total | 26.320 | 24.549 | - - |
The grants received in the years 2009 and 2010 relate to subsidies from the "Society of Information" and "Development Law" to the subsidiary company Hellas online for the expansion of its telecommunications network. The amount of €5.721 included in additions of 2010 was not received until 31 December 2010.
| Group | Nominal Value | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Cash flow hedge | Liabilities | Liabilities | ||
| Interest rate swaps | 948 | 192 | 29.875 | 29.875 |
| Interest rate caps | 293 | 244 | 44.375 | 44.375 |
| Total | 1.241 | 436 | 74.250 | 74.250 |
| Non-current liabilities | 1.241 | 436 | ||
| 1.241 | 436 |
There was not any portion determined to be an ineffective hedge recognized in the income statement.
The derivative financial instruments are recognized as non-current assets / non-current liabilities if the remaining period to maturity exceeds 12 months and as current assets/current liabilities if the remaining period to maturity is less than 12 months.
Gains and losses recognized in equity (note 22) from interest rate swaps at 31 December 2010 will be gradually transferred to the income statement until the repayment of the related debt.
Loss for the period amounts to €805 (2009:€436).
(All amounts in €'000)
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Current liabilities | 6.790 | 6.921 | 1.568 | 1.568 |
| Non- current liabilities | 1.939 | 3.631 | - - |
|
| Total | 8.729 | 10.551 | 1.568 | 1.568 |
| Unused | |||||
|---|---|---|---|---|---|
| Warranties | compensated absences |
Unaudited tax years |
Other | Total | |
| Balance at 1 January 2009 | 4.838 | 767 | 1.748 | 7.375 | 14.727 |
| Additional provisions | - 727 |
605 | 4.499 | 5.831 | |
| Unused amounts reversed | (1.951) | - (34) |
(2.465) | (4.449) | |
| Provisions used during the year | (1.833) | (667) | (546) | (2.536) | (5.582) |
| Acquisition of subsidiary | - | - - |
46 | 46 | |
| Disposal of subsidiary | - | - - |
(21) | (21) | |
| Balance at 31 December 2009 | 1.054 | 826 | 1.773 | 6.898 | 10.551 |
| Balance at 1 January 2010 | 1.054 | 826 | 1.773 | 6.898 | 10.551 |
| Additional provisions | 420 | 825 | 540 | 3.498 | 5.282 |
| Unused amounts reversed | - | - - |
(158) | (158) | |
| Provisions used during the year | (696) | (759) | (654) | (4.807) | (6.917) |
| Disposal of subsidiary | - | - (29) |
- | (29) | |
| Balance at 31 December 2010 | 778 | 892 | 1.629 | 5.430 | 8.729 |
The amount of other provisions €5.430 as at 31 December 2010 includes inter alia the amount of €1.020 for the recognition of losses from loss making contracts and the amount of €2.148 for accrued employee benefits. The corresponding amount as at 31 December 2009 includes the amount of €579 for the recognition of losses from loss making contracts and the amount of €3.613 for accrued employee benefits.
| Unused compensated absences |
Other | Total | |
|---|---|---|---|
| Balance at 1 January 2009 | 68 | 1.574 | 1.642 |
| Unused amounts reversed | - | (74) | (74) |
| Balance at 31 December 2009 | 68 | 1.500 | 1.568 |
| Balance at 1 January 2010 | 68 | 1.500 | 1.568 |
| Balance at 31 December 2010 | 68 | 1.500 | 1.568 |
(All amounts in €'000)
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Trade payables | 129.746 | 134.159 | 1.246 | 1.299 |
| Prepayments from customers | 56.412 | 58.761 | - | - |
| Deffered income | 20.199 | 12.589 | - | - |
| Amounts due to related parties (Note 41) | 62.305 | 56.861 | 4.495 | 5.623 |
| Accrued expenses | 11.457 | 15.199 | 138 | 1.081 |
| Social security and other taxes | 7.204 | 7.763 | 570 | 451 |
| Other liabilities | 17.521 | 15.696 | 1.007 | 794 |
| Total | 304.844 | 301.030 | 7.456 | 9.248 |
| Non-current liabilities | 13.387 | 16.744 | - - |
|
| Current liabilities | 291.457 | 284.285 | 7.456 | 9.248 |
| 304.844 | 301.030 | 7.456 | 9.248 |
Non-current liabilities as at 31 December 2010 include an amount of €13.387 that relates to deferred income (31 December 2009: €4.058).
The credit payment terms provided to the Group are determined on a case-by-case basis and are set out in the contracts signed with each supplier.
Trade and other payables are denominated in the following currencies:
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Euro | 259.479 | 268.749 | 7.381 | 9.010 |
| US Dollar (USD) | 37.536 | 18.345 | 22 | 186 |
| Romanian New Lei (RON) | 1.274 | 6.680 | - | - |
| Polish Zloty (PLN) | 1.534 | 3.824 | - | - |
| Bulgarian Leva (BGN) | 578 | 766 | - | - |
| Jordan Dinar (JOD) | 3.492 | 1.379 | - - |
|
| Other | 951 | 1.287 | 53 | 52 |
| 304.844 | 301.030 | 7.456 | 9.248 |
(All amounts in €'000)
| Note | Group | Company | ||||
|---|---|---|---|---|---|---|
| 1/1 - 31/12/2010 1/1 - 31/12/2009 | 1/1 - 31/12/2010 1/1 - 31/12/2009 | |||||
| Employee benefit expense | 30 | 133.401 | 134.064 | 4.470 | 5.609 | |
| Inventory cost recognised in cost of goods sold | 81.784 | 89.372 | - - |
|||
| Depreciation of PPE | 6 | 44.708 | 34.941 | 1.160 | 1.421 | |
| Depreciation of investment property | 9 | 696 | 561 | 897 | 764 | |
| Amortisation of intangible assets | 8 | 33.818 | 27.660 | 4 191 |
||
| Impairment of inventories | 673 | 783 | - - |
|||
| Repairs and maintenance | 2.619 | 7.360 | 382 | 427 | ||
| Operating lease payments | 9.040 | 6.965 | - - |
|||
| Subcontractors' fees | 100.835 | 128.191 | - - |
|||
| Impairment of receivables | 16 | 15.407 | 6.166 | - - |
||
| Telecommunications cost | 104.794 | 91.592 | - - |
|||
| Transportation and travelling expenses | 6.505 | 6.806 | 881 | 911 | ||
| Third party fees | 28.012 | 29.038 | 1.080 | 1.425 | ||
| Advertisement | 9.945 | 12.231 | 245 | 372 | ||
| Other | 34.870 | 14.089 | 2.351 | 2.334 | ||
| Total | 607.107 | 589.819 | 11.471 | 13.455 | ||
| Split by function: | ||||||
| Cost of goods sold | 496.163 | 488.021 | 2.421 | 2.944 | ||
| Selling and research costs | 43.250 | 39.814 | 123 | 157 | ||
| Administrative expenses | 67.694 | 61.983 | 8.927 | 10.355 | ||
| 607.107 | 589.819 | 11.471 | 13.455 | |||
| Split of depreciation by function: | ||||||
| Cost of goods sold | 64.323 | 50.729 | 227 | 317 | ||
| Selling and research costs | 1.036 | 1.347 | 5 | |||
| Administrative expenses | 13.864 | 11.086 | 1.834 | 2.054 | ||
| 79.223 | 63.162 | 2.061 | 2.376 |
| Group | Company | |||
|---|---|---|---|---|
| 1/1 - 31/12/2010 1/1 - 31/12/2009 1/1 - 31/12/2010 1/1 - 31/12/2009 | ||||
| Wages and salaries | 104.907 | 106.110 | 3.754 | 4.120 |
| Social security costs | 23.438 | 23.316 | 354 | 396 |
| Other employers' contributions and expenses | 1.022 | 1.229 | 56 | 64 |
| Share options granted to employees / treasury shares (Note 21) | 1.009 | 1.811 | 183 | 546 |
| Pension costs - defined contribution plans | 606 | 480 | - - |
|
| Pension costs - defined benefit plans (Note 24) | 2.840 | 2.143 | 123 | 483 |
| Other post-employment benefits | 1.319 | 1.300 | - - |
|
| Less: capitalisations to assets under construction | (1.740) | (2.324) | - - |
|
| Total | 133.401 | 134.064 | 4.470 | 5.609 |
The subsidiary company Hellas online has capitalized during the year 2010 employee costs of €1.740 (2009: €2.324) which relate to the construction of its telecommunications network.
(All amounts in €'000)
| Group | Company | ||||
|---|---|---|---|---|---|
| 1/1 - 31/12/2010 1/1 - 31/12/2009 1/1 - 31/12/2010 1/1 - 31/12/2009 | |||||
| Dividend income | 2 | 12 200 |
1.500 | ||
| Rental income | 1.918 | 2.072 | 2.930 | 3.180 | |
| Depreciation of grants received (Note 25) | 9.714 | 4.986 | - - |
||
| Income from grants | 76 | 183 | 1 22 |
||
| Insurance compensations | 2.626 | - | - - |
||
| Other | 3.487 | 2.073 | - - |
||
| Total | 17.824 | 9.327 | 3.130 | 4.702 |
| Group | Company | |||
|---|---|---|---|---|
| 1/1 - 31/12/2010 1/1 - 31/12/2009 1/1 - 31/12/2010 1/1 - 31/12/2009 | ||||
| Gains / (losses) from sale of PPE | (410) | 1.479 | 1 681 |
|
| Gains / (losses) from sale of investment property | (811) | 724 | - 172 |
|
| Impairment of investment property | - | (2.506) | - | (1.579) |
| Fair value losses of financial assets at fair value through profit or loss |
(111) | (65) | - - |
|
| Gains from sale of financial assets at fair value through profit or loss |
- | 92 | - - |
|
| Losses from sale of available-for-sale financial assets | - (145) |
- - |
||
| Impairment of available-for-sale financial assets Impairment of intangibles assets |
(46) (496) |
(2.285) | - (46) |
- - - |
| Losses from sale of subsidiaries | (7) | - | - - |
|
| Gains from sale of associates (Note 11) | - 450 |
- 374 |
||
| Impairment of subsidiaries (Note 10) | - | - (3.524) |
(11.430) | |
| Proceeds from receivables | - 7.304 |
- 6.034 |
||
| Write offs / impairment of other receivables | - (9.482) |
- - |
||
| Negative goodwill from acquisition of businesses (note 38) | 193 | - | - - |
|
| Net foreign exchange gains / (losses) | (18) | 121 | 15 | - |
| Other | (464) | (320) | (130) | (1.085) |
| Total | (2.170) | (4.632) | (3.685) | (6.833) |
(All amounts in €'000)
| Group | Company | |||
|---|---|---|---|---|
| 1/1 - 31/12/2010 1/1 - 31/12/2009 1/1 - 31/12/2010 1/1 - 31/12/2009 | ||||
| Finance expenses | ||||
| Interest and related expense | ||||
| - Bank borrowings | 8.880 | 7.365 | 862 | 887 |
| - Bond loans | 6.835 | 8.083 | - - |
|
| - Finance leases | 709 | 516 | 291 | - |
| - Letters of credit and related costs | 2.222 | 2.157 | ||
| - Net foreign exchange gains / (losses) | (305) | 3.543 | - - |
|
| - Other | 3.284 | 794 | - 876 |
|
| 21.626 | 22.459 | 1.153 | 1.764 | |
| Finance income | ||||
| Interest income | (610) | (386) | (216) | (255) |
| Interest income from loans | (392) | (500) | (392) | (500) |
| Other | (16) | (1.378) | - | |
| (1.018) | (2.264) | (608) | (755) | |
| Less: Capitalisations to assets under construction | - 901 |
- - |
||
| Finance expenses / (income) - net | 20.608 | 19.294 | 545 | 1.009 |
| Group | Company | |||
|---|---|---|---|---|
| 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | 1/1 - 31/12/2010 1/1 - 31/12/2009 | ||
| Current tax | 4.839 | 4.538 | 20 | 183 |
| Deffered tax (Note 14) | 2.238 | (7.271) | 68 | 411 |
| Total | 7.077 | (2.733) | 88 | 594 |
On 6 May 2010 the Greek Government implemented the Law regarding the "Special Tax Contribution" (Law 3845/2010). This special contribution, which was imposed retrospectively on the overall net income of the Group of year 2009, amounted to €609 for the Group and was recorded in the income tax of the year.
During the year 2010 the corporate income tax regime was amended under the Law 3842/23.04.2010, based on which the income tax rate on non-distributed profits arises to 24% (to be reduced annually by 1 percentage point until it reaches 20% by 2014), whereas on distributed profits it arises to 40%.
The tax on the profit before tax of the Group and the Company differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits/losses of the group companies as follows:
(All amounts in €'000)
| Group | Company | ||||
|---|---|---|---|---|---|
| 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | ||
| Loss before tax | (38.804) | (5.311) | (9.672) | (12.438) | |
| Tax calculated at tax rates applicable to Greece | (9.313) | (1.328) | (2.321) | (3.110) | |
| Income not subject to tax | (879) | (15.759) | (56) | (1.706) | |
| Expenses not deductible for tax purposes | 11.766 | 7.792 | 615 | 25 | |
| Differences in tax rates | 830 | 1.746 | - - |
||
| Utilisation of previously unrecognised tax losses | (49) | (638) | - - |
||
| Income tax effect from prior years' tax losses that cannot be carried forward |
749 | - | - - |
||
| Tax losses for which no deferred tax asset was | |||||
| recognised | 2.543 | 4.839 | 1.851 | 5.202 | |
| Tax losses for the year | - | - | - - |
||
| Prior years' taxes | 615 | - | - - |
||
| Special Tax Contribution Ν.3845/2010 | 609 | - | - | - | |
| Other | 206 | 615 | - 183 |
||
| Tax charge | 7.077 | (2.733) | 88 | 594 |
Basic earnings per share is calculated by dividing the profit / (loss) attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the Company and held as treasury shares (note 21).
| Group | Company | |||
|---|---|---|---|---|
| 1/1 - 31/12/2010 | 1/1 - 31/12/2009 1/1 - 31/12/2010 1/1 - 31/12/2009 | |||
| Profit / (loss) attributable to equity holders of the Company | (30.530) | 10.497 | (9.761) | (13.032) |
| Weighted average number of ordinary shares in issue (thousands) | 131.648 | 131.648 | 132.472 | 131.648 |
| Basic earnings per share (€ per share) | (0,23) | 0,08 | (0,07) | (0,10) |
Diluted earnings/(loss) per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares, such as stock options. For the share options a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
(All amounts in €'000)
| Group | Company | |||
|---|---|---|---|---|
| 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | |
| Profit / (loss) attributable to equity holders of the Company | (30.530) | 10.497 | (9.761) | (13.032) |
| Weighted average number of ordinary shares in issue (thousands) | 131.648 | 131.648 | 132.472 | 131.648 |
| Diluted earnings per share (€ per share) | (0,23) | 0,08 | (0,07) | (0,10) |
From the calculation of the weighted average number of ordinary shares of diluted earnings, no difference has occurred in relation to basic earnings per share.
| Group | Company | |||||
|---|---|---|---|---|---|---|
| Note | 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | 1/1 - 31/12/2010 | 1/1 - 31/12/2009 | ||
| Loss for the year | (45.881) | (2.577) | (9.761) | (13.032) | ||
| Adjustments for: | ||||||
| Tax | 7.077 | (2.733) | 88 | 594 | ||
| Depreciation of PPE | 6 | 44.708 | 34.941 | 1.160 | 1.421 | |
| Amortisation of intangible assets | 8 | 33.818 | 27.660 | 4 191 |
||
| Depreciation of investment property | 9 | 696 | 561 | 897 | 764 | |
| Impairment of investment property | 32 | - 2.506 |
- 1.579 |
|||
| Impairment of intangible assets | 32 | 496 | 2.285 | - - |
||
| Loss / (Profit) on sale of PPE | 32 | 410 | (1.479) | - (681) |
||
| Loss / (Profit) on sale of investment property | 32 | 811 | (724) | - (172) |
||
| Fair value losses of financial assets at fair value through profit or loss Losses / (gains) from sale of financial assets at fair value through profit or |
32 | 111 | 65 | - - |
||
| loss | 32 | - (92) |
- - |
|||
| Losses from sale of available-for-sale financial assets | 32 | - 145 |
- - |
|||
| Impairment of available-for-sale financial assets | 32 | 46 | - 46 |
- | ||
| Impairment of subsidiary | 32 | - | - 3.524 |
11.430 | ||
| Loss on disposal of subsidiary | 32 | 7 | - | - - |
||
| Gains on disposal of associates | 32 | - (450) |
- (374) |
|||
| Gain from change in interest held in subsidiary | 10 | - (51.007) |
- - |
|||
| Negative goodwill from acquisition of subsidiaries | 32 | (193) | - | - - |
||
| Distribution of treasury shares | 21 | 826 | 1.044 | 183 | 546 | |
| Employees share option scheme | 21 | 45 | 183 | - - |
||
| Interest income | 33 | (1.018) | (2.264) | (608) | (755) | |
| Interest expense | 33 | 21.626 | 21.558 | 1.153 | 1.764 | |
| Dividend income | 31 | - (12) |
(200) | (1.500) | ||
| Depreciation of grants received | 31 | (9.714) | (4.986) | - - |
||
| Share of profit from associates and joint ventures | 11 | 1.998 | 2.322 | - - |
||
| Exchange loss / (gain) | 253 | (194) | - - |
|||
| 56.124 | 26.750 | (3.513) | 1.774 | |||
| Changes in working capital | ||||||
| Decrease in inventories | 2.773 | 1.996 | - - |
|||
| (Increase)/ decrease in trade and other receivables | (14.889) | 6.665 | (513) | 39 | ||
| Increase/ (decrease) in trade and other payables | 12.438 | 13.908 | (1.934) | (3.797) | ||
| Decrease in provisions | (1.793) | (4.175) | - (74) |
|||
| Increase/ (decrease) in retirement benefit obligations | 392 | 400 | 37 | (206) | ||
| (1.079) | 18.795 | (2.409) | (4.039) | |||
| Cash generated from operations | 55.045 | 45.545 | (5.923) | (2.264) |
(All amounts in €'000)
The amount of €7.369 classified as asset held for sale in 2009 relates to the cost of land of the subsidiary company Intrakat SA for which a preliminary sales agreement with IASO SA has been drafted for the construction of a private maternity clinic. Due to the mutual cancellation of the agreement on 21 May 2010, the land was transferred to investment property at cost, which is lower than its fair value.
On 26 February 2010 the subsidiary company Intracom Technologies Ltd disposed of its entire holding (67%) in the subsidiary Fornax RT («Fornax group») for €350.000. Negotiations for the disposal had begun in the last quarter of 2009. The disposal resulted to a marginal gain for the Group.
The assets of €2.922 and liabilities of €2.596 as at 31 December 2009, as detailed in the table below, are presented in separate lines in the balance sheet.
| Assets | 31/12/2009 |
|---|---|
| Property, plant and equipment | 417 |
| Intangibles assets | 3 |
| Trade and other receivables | 2.213 |
| Cash and cash equivalents | 222 |
| Other assets | 67 |
| 2.922 | |
| Liabilities | |
| Borrowings | 1.218 |
| Trade and other payables | 1.358 |
| Provisions | 21 |
| 2.596 |
(All amounts in €'000)
Intrapower SA was founded on 8 April 2010, it is established in Greece and its main activity is the supply, construction, installment and operation of photovoltaic parks and other energy or environmental projects. Its share capital amounts to €60 divided into 6.000 ordinary shares with a nominal value of €10 per share. Intrakat holds 4.500 shares of the newly established company, representing 75% of its share capital. The effect of the establishment on the Group's results was not material.
In June 2010, Intrakat fully acquired the company Rominplot Srl, the main activity of which is the ownership of a plot of land in Bucharest.
The fair value of assets and liabilities at the acquisition date are as follows:
| Assets | Fair values |
|---|---|
| Investment property | 2.655 |
| Cash and cash equivalents | 151 |
| Other assets | 4 |
| 2.810 | |
| Liabilities | |
| Borrowings | 2.600 |
| Other liabilities | 86 |
| 2.686 | |
| Net assets | 123 |
| Purchase consideration | 0 |
| Negative goodwill | (123) |
| Cash outflows | |
| Purchase consideration | (0) |
| Cash and cash equivalents of acquired entity | 151 |
| 151 |
The acquisition resulted in negative goodwill of €123 which has been recorded in the income statement of the year, in the line "Other gain / (losses)" (Note 32). The effect of the acquisition on the Group's results was not material.
In August 2010, the subsidiaries Intrakat International Ltd and Intracom Construct SA acquired the remaining 50% of the shares of SC Plurin Telecommunications SRL, for €0,5. Until then, the Group owned 50% of the company's share capital, through its subsidiary Intrakat International Ltd, and it was consolidated as an associate using the equity method. After the acquisition of the remaining 50% (total shareholding held by Intrakat International Ltd is 99% and by Intracom Construct SA is 1%), the company is consolidated using the full consolidation method. The fair value of assets and liabilities at the acquisition date are as follows:
(All amounts in €'000)
| Assets | Fair values |
|---|---|
| Cash and cash equivalents | 127 |
| Other assets | 28 |
| 155 | |
| Liabilities | |
| Other liabilities | 16 |
| 16 | |
| Net assets | 139 |
| Percentage 50% | 70 |
| Purchase consideration | 1 |
| Negative goodwill | (69) |
| Cash outflows | |
| Purchase consideration | (1) |
| Cash and cash equivalents of acquired entity | 127 |
| 126 |
The acquisition resulted in negative goodwill of €69 which has been recorded in the income statement of the year, in the line "Other gain / (losses)" (Note 32). The effect of the acquisition on the Group's results was not material.
On 31 December 2010 the Group acquired, through its subsidiary Intrakat International, the 100% of the share capital of the company Ambtila Enterprises Limited, established in Cyprus, the only activity of which is the ownership of 50% of the share capital of the company A. Katselis Energeiaki SA. The aforementioned acquisition's scope is the construction and development of a wind park in the Prefecture of Voiotia by A. Katselis Energeiaki SA, which owns the license for the production of wind energy with a total capacity of 20,7 MW.
The fair value of assets and liabilities at the acquisition date are as follows:
| Assets | Fair values |
|---|---|
| Property, plant and equipment | 34 |
| Cash and cash equivalents | 4 |
| Other assets | 7 |
| 45 | |
| Liabilities | |
| Other liabilities | 57 |
| 57 | |
| Net assets | (13) |
| Purchase consideration | 2.588 |
| Goodwill | 2.600 |
| Cash outflows | |
| Purchase consideration | (1.294) |
| Cash and cash equivalents of entity acquired | 4 |
| (1.290) |
The total purchase consideration consists of €1.294 paid in cash and €1.294 consideration payable. The acquisition resulted in positive goodwill of €2.600. The effect of the acquisition on the Group's results was not material.
(All amounts in €'000)
The company Intra-Phos SA was founded on 23 September 2010, it is established in Greece and its operation includes any activity relating to energy. Its share capital amounts to €60 divided into 6.000 ordinary shares with a nominal value of €10 per share. Intrakat holds 2.520 shares of the new company which stands for 42% of its share capital and has control on the company's management. Consequently, the investment is classified as a subsidiary and is consolidated using the full consolidation method. The effect of the establishment on the Group's results was not material.
As at the balance sheet date there were capital commitments for Property, plant and equipment of €8.253 for the Group (2009: €7.859).
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | |
| Up to 1 year | 3.984 | 2.684 | 313 | 327 |
| From 2 to 5 years | 7.018 | 4.749 | 227 | 354 |
| More than 5 years | 4.651 | 992 | - - |
|
| 15.653 | 8.426 | 540 | 681 |
The Group and the Company have contingent liabilities in respect of banks, other guarantees and other matters arising in the ordinary course of business as follows:
| Group | Company | |||
|---|---|---|---|---|
| 31/12/2010 | 31/12/2009 31/12/2010 31/12/2009 | |||
| Guarrantees for advance payments | 50.360 | 78.088 | 47.229 | 71.330 |
| Guarrantees for good performance | 167.089 | 155.370 | 152.113 | 113.468 |
| Guarrantees for participation in contests | 23.479 | 15.495 | 10.126 | 6.236 |
| Other | 14.588 | 11.732 | 9.775 | 5.645 |
| 255.516 | 260.685 | 219.243 | 196.680 |
The Company has given guarantees to banks for subsidiaries' loans amounting to €362.976.
In addition, the Company has guaranteed the contractual liabilities of an associate company.
(All amounts in €'000)
There is an outstanding legal case against a subsidiary company from the Ministry of Merchant Marine (MMM) concerning violations during the execution of a project completed and delivered to the MMM in a prior period. The penalties and rebates that were initially claimed have been reduced to €9 mil., following relevant appeals of the Company and ministerial decisions. Subsequently, according to a decision by the administrative court of appeal of Piraeus, the above mentioned penalties and rebates were cancelled. According to the Company's legal advisers the appeal exercised by the Greek State against the previous decision by the administrative court of appeal of Piraeus will not succeed and hence there will be no surcharge on the Company. In addition the company, in order to ensure its claim for the remaining balance of the project consideration (€9 mil. approximately) against an assumed request by the State for statutory-limitation, it filed an appeal against the Greek State.
On 4 March 2008 specific major shareholders of Teledome S.A. took legal action against Intracom Holdings, Hellas Online and members of the Management, requesting among others, to abolish the earlier decision of key management personnel (Board of Directors and General Meeting) of the Group for the annulment of the merger of Hellas online, Unibrain and Teledome. Through this lawsuit, an amount of approximately €141 mil. is claimed from the parent company and the subsidiary, for the loss and the moral damage that the plaintiffs allege to have suffer. The Group's management and its lawyers assess that the possibility of any material liabilities arising for the Group in relation to this case is very low.
The Hellas Online Group is in dispute, which is under examination by EETT (Hellenic Telecommunications and Post Commission), with OTE SA regarding certain charges of the latter which are claimed to be unlawful. In relation to this case, the company disputed charges of €2.825 as at 31 December 2010, for which a provision of an equal amount has been recorded.
It is not anticipated that any material liabilities will arise from the contingent liabilities.
(All amounts in €'000)
The following transactions are carried out with related parties:
| Group | Company | ||||
|---|---|---|---|---|---|
| 1/1 - 31/12/2010 1/1 - 31/12/2009 1/1 - 31/12/2010 1/1 - 31/12/2009 | |||||
| Sales of goods / services: | |||||
| To subsidiaries | - | - 2.237 |
2.629 | ||
| To associates | 3.032 | 3.472 | 285 | 411 | |
| To other related parties | 6.389 | 2.943 | 13 2 |
||
| 9.421 | 6.415 | 2.536 | 3.042 | ||
| Purchases of goods / services: | |||||
| From subsidiaries | - | - 457 |
462 | ||
| From associates | 8.809 | 10.637 | 6 67 |
||
| From other related parties | 140 | 853 | 26 53 |
||
| 8.948 | 11.490 | 489 | 581 | ||
| Rental income: | |||||
| From subsidiaries | - | - 1.671 |
1.664 | ||
| From associates | 722 | 941 | 287 | 562 | |
| From other related parties | 306 | 288 | 166 | 167 | |
| 1.028 | 1.229 | 2.124 | 2.393 | ||
| Dividend income: | |||||
| From subsidiaries | - | - 200 |
1.500 | ||
| Group | Company | ||||
| 1/1 - 31/12/2010 1/1 - 31/12/2009 1/1 - 31/12/2010 1/1 - 31/12/2009 | |||||
| Purchases of fixed assets: | |||||
| From subsidiaries | - | - | 20 145 |
||
| From associates | 19.423 | 24.583 | - - |
||
| From other related parties | - 531 |
- - 145 |
|||
| Disposals of fixed assets: | 19.423 | 25.114 | 20 | ||
| To subsidiaries | - | - | 8 83 |
||
| To other related parties | - 4.505 |
- 4.505 |
|||
| 4.505 | 8 4.588 |
Services from and to related parties as well as sales and purchases of goods, take place on the basis of the price lists in force with non-related parties. Other related parties are mainly associates and companies in which the major shareholder of the Company holds an interest share.
(All amounts in €'000)
Year-end balances arising from transactions with related parties are as follows:
| Group | Company | |||
|---|---|---|---|---|
| 1/1 - 31/12/2010 1/1 - 31/12/2009 1/1 - 31/12/2010 1/1 - 31/12/2009 | ||||
| Receivables from related parties | ||||
| From subsidiaries | - | - 9.369 |
10.160 | |
| From associates | 7.908 | 8.451 | 2.705 | 2.443 |
| From other related parties | 9.770 | 15.510 | 1.195 | 4.423 |
| 17.678 | 23.961 | 13.268 | 17.027 | |
| Payables to related parties | ||||
| To subsidiaries | - | - 973 |
2.198 | |
| To associates | 61.571 | 56.058 | 3.442 | 3.372 |
| To other related parties | 734 | 803 | 80 52 |
|
| 62.305 | 56.861 | 4.495 | 5.623 |
Total amount of €2.103 has been paid by the Company as directors' remuneration and key management compensation for the year 2010 (2009: €2.636). The outstanding balance due to directors as at 31 December 2010 was €0 (2009: €0).
No significant events occurred after the balance sheet date.
(All amounts in €'000)
The companies included in the consolidated financial statements and the related direct percentage interests held are as follows.
| Name | Country of incorporation |
Direct % interest held |
Consolidation Method |
Unaudited Tax Years |
|---|---|---|---|---|
| * Intracom S.A Defence Electronic Systems | Greece | 100,00% | Full | 2007 - 2009 |
| 49,25% | ||||
| * HELLAS ON LINE | Greece | (note 1) | Full | 2007- 2009 |
| - Attica Telecommunications SA | Greece | 100,00% | Full | 2008-2009 |
| * Intracom Holdings International Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Technologies Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Operations Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Group USA | USA | 100,00% | Full | From establishment - 2009 |
| - Duckelco Holdings Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Ingrelenco Trading Co. Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| * Intracom IT Services | Greece | 100,00% | Full | 2005- 2009 |
| - Global Net Solutions Ltd | Bulgaria | 100,00% | Full | From establishment - 2009 |
| - Data Bank SA | Greece | 90,00% | Full | 2009 |
| - Intracom IT Services Middle East & Africa | Jordan | 80,00% | Full | 2009 |
| - Intracom IT Services Denmark AS | Denmark | 100,00% | Full | 2008 - 2009 |
| - Intracom Exports Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Cyprus Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intrasoft International SA | Luxemburg | 99,76% | Full | 2008-2009 |
| - Intrasoft SA | Greece | 99,00% | Full | 2008-2009 |
| - Intrasoft International Belgium | Belgium | 100,00% | Full | 2004-2009 |
Note 1: The total shareholding in Hellas on Line is 53,40% through the participation of subsidiary companies of the Group.
(All amounts in €'000)
| Name | Country of incorporation |
Direct % interest held |
Consolidation Method |
Unaudited Tax Years |
|---|---|---|---|---|
| * Intrakat SA | Greece | 62,24% | Full | 2009 |
| - Inmaint SA | Greece | 62,00% | Full | 2009 |
| - ΚEPA Attica SA | Greece | 51,00% | Full | 2005-2009 |
| - Intracom Construct SA | Romania | 96,54% | Full | 2009 |
| -Oikos Properties SRL. | Romania | 100,00% | Full | 2007-2009 |
| 99,99% | ||||
| -Rominplot SRL** | Romania | (note 2) | Full | - |
| - Eurokat SA | Greece | 54,38% | Full | 2007-2009 |
| -J./V. ΑΚΤOR ΑΤΕ - LOBBE TZILALIS - EUROKAT ATE (Ily | ||||
| Administration Κ.Ε.L.) | Greece | 18,00% | Proportional | 2007-2009 |
| - Intrakat International Ltd | Cyprus | 100,00% | Full | 2008-2009 |
| 99,00% | ||||
| -SC Plurin Telecommunications SRL | Romania | (note 3) | Full | 2008-2009 |
| -Alpha Mogilany Development SP Z.O.O | Poland | 25,00% | Equity | 2008-2009 |
| -Αmbtila Enterprises Limited ** | Cyprus | 100,00% | Full | 2006-2009 |
| -Α. Katselis Energiaki SA** | Greece | 50,00% | Proportional | 2008-2009 |
| - Intradevelopment SA | Greece | 100,00% | Full | 2004-2009 |
| - Fracasso Hellas AE Design & construction of road safety systems | Greece | 55,00% | Full | - |
| -Prisma - Domi ΑΤΕ | Greece | 50,00% | Full | 2009 |
| -J/V Athinaiki Techniki s.a.- "J/V Archirodon Hellas ATE - Prisma Domi ATE" (General Department East Macedonia & Thraki) |
Greece | 10,00% | Proportional | 2007-2009 |
| -J/V VIOTER s.a. - Prisma Domi ATE constructor (Sewages process facilities & subpipe of Ag.Theodorous municipality) |
Greece | 10,00% | Proportional | 2008-2009 |
| -J/V/ NOEL s.a. - Prisma Domi ATE - (Wind park in "Driopi") | Greece | 17,50% | Proportional | 2009 |
| -J/V Prisma - Domi ATE - Mesogeios ES SA - (operation & mainten. of biolog.wastewater treatment In Oinofita-Schimatari)** |
Greece | 25,00% | Proportional | - |
| -Intrapower SA Company of Energy Works** | Greece | 75,00% | Full | - |
| -Ιntra - Phos S.A. Alternative energy ** | Greece | 42,00% | Full | - |
| -ΙCC ΑΤΕ** | Greece | 50,00% | Equity | 2006-2009 |
| J./V. Mohlos - Intrakat (Tennis) | Greece | 50,00% | Equity | 2006-2009 |
| J./V. Mohlos - Intrakat (Swimm.) | Greece | 50,00% | Equity | 2003-2009 |
| J./V. Panthessalikon Stadium | Greece | 15,00% | Equity | 2008-2009 |
| J./V. Elter-Intrakat (EPA Gas) | Greece | 45,00% | Equity | 2008-2009 |
| J./V. Intrakat - Gatzoulas | Greece | 50,00% | Equity | 2004-2009 |
| J./V. Elter-Intrakat-Εnergy | Greece | 40,00% | Equity | 2005-2009 |
| J./V. "Αth.Techniki-Prisma Domi"-Ιntrakat | Greece | 57,50% | Equity | 2005-2009 |
| J./V. Intrakat-Ergaz-ALGAS | Greece | 33,33% | Equity | 2007-2009 |
| J./V. Intrakat - Elter (Maintenance N.Section) | Greece | 50,00% | Proportional | 2006-2009 |
| J./V. Intrakat - ΑΤΤΙΚΑΤ (Εgnatia Οdos) | Greece | 50,00% | Proportional | 2009 |
| J./V. Intrakat - Elter (Alex/polis pipeline) | Greece | 50,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Xiria) | Greece | 50,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Road diversion- Arta) | Greece | 30,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Natural gas installation project- Schools) | Greece | 30,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter ( Natural Gas Installation Project Attica Northeast & South ) |
Greece | 49,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Intracom Telecom (DEPA Network) | Greece | 70,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Broadband networks) | Greece | 50,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Natural Gas installation project - Schools EPA 3) | Greece | 50,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Natural Gas pipelines 2007 Northeastern Attica Region EPA 4) |
Greece | 50,00% | Proportional | 2007-2009 |
| J./V.Intrakat- Elter(Gas Distrib.Network Expansion) | Greece | 50,00% | Proportional | 2007-2009 |
Note 2: The total shareholding in Rominplot SRL is 100% through the participation of another subsidiary.
Note 3: The total shareholding in SC Plurin Telecommunications SRL is 100% through the participation of another subsidiary.
(All amounts in €'000)
| Name | Country of incorporation |
Direct % interest held |
Consolidation Method |
Unaudited Tax Years |
|---|---|---|---|---|
| J./V. ΑΚΤOR ΑΤΕ - Pantechniki SA - Intrakat (J./V. Μoreas) | Greece | 13,33% | Proportional | 2008-2009 |
| J./V. Intrakat - Elter (ΕPA 5) - Natural Gas Installation Central Region |
Greece | 50,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (EPA 6) - Natural Gas Installation South Region |
Greece | 50,00% | Proportional | 2008-2009 |
| J./V. Intrakat - Elter ( Hospital of Katerini) | Greece | 50,00% | Proportional | 2008-2009 |
| J./V. Intrakat - Elter (Hospital of Corfu) | Greece | 50,00% | Proportional | 2008-2009 |
| J./V. Intrakat Elter (EPA 7) - Natural Gas Distribut.Network Attica South Region |
Greece | 49,00% | Proportional | 2007-2009 |
| J./V. Ιntrakat Elter -Natural Gas Suppl.Network Lamia-Thiva Chalkida |
Greece | 50,00% | Proportional | 2008-2009 |
| J./V. Intrakat - Elter (Completion of Ionio Building, General Clinic) | Greece | 50,00% | Proportional | 2008-2009 |
| J./V. Eurokat-ΕΤVO- Construction of Central Library Building of School of Fine Arts |
Greece | 70,00% | Proportional | 2008-2009 |
| J/V Anastilotiki - Getem - Intrakat (Museum of Patras) | Greece | 25,00% | Proportional | 2007-2009 |
| J/V Anastilotiki - Getem - Intrakat (Piros-Parapiros Dams) | Greece | 33,30% | Proportional | 2006-2009 |
| J/V Intrakat - Elter - (dam construction in Filiatra) | Greece | 50,00% | Proportional | 2009 |
| J/V Intrakat - K.Panagiotidis & Co (line transfer construction 1) | Greece | 60,00% | Proportional | - |
| J/V Altec - Intrakat - Anastilotiki (Thessaloniki Airport) | Greece | 46,90% | Proportional | 2009 |
| J/V Elter ATE - Intrakat - Nea Messimvria project** | Greece | 50,00% | Proportional | - |
| J/V Intrakat - Filippod SA - Anthipolis project** | Greece | 50,00% | Proportional | - |
| J/V Ekter SA - Erteka SA - Themeli SA - Intrakat (Filothei & | Greece | 24,00% | - | |
| Kiffisias Aven. Network construction)** | Proportional | |||
| Name | Country of incorporation |
Direct % interest held |
Consolidation Method |
Unaudited Tax Years |
| * Intracom Telecom Solutions SA | Greece | 49,00% | Equity | 2009 |
| -Intracom Bulgaria S.A. | Bulgaria | 100,00% | Full | 1998-2009 |
| -Intracom Svyaz Ltd. | Russia | 100,00% | Full | From establishment - 2009 |
| -Intracom Doo Skopje | FYROM | 100,00% | Full | 2006-2009 |
| -Intralban Sha | Albania | 95,00% | Full | 2005-2009 |
| -Intrarom S.A. | Romania | 66,70% | Full | 2004-2009 |
| -Sitronics Intracom India PL | India | 100,00% | Full | From establishment - 2009 |
| -Intracom Telecom Holdings International Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Middle East L.L.C. | United Arab Emirates | 100,00% | Full | Not applicable |
| - Connklin Corporation | USA | 100,00% | Full | 2001-2009 |
| - Intracom Telecom solutions S.R.L. | Moldova | 100,00% | Full | From establishment - 2009 |
| - Intracom doo Belgrade | Serbia | 100,00% | Full | From establishment - 2009 |
| - Ε-Teleserv doo Belgrade | Serbia | 100,00% | Full | - |
| - Intracom doo Armenia | Armenia | 100,00% | Full | 2008 -2009 |
| - Intracom Telecom Technologies Ltd. | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Telecom Operations Ltd. | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Telecom Solutions Saudi Arabia | Saudi Arabia | 95,00% | Full | From establishment - 2009 |
(**) These companies have been included in the Group for the first time in the current year but were not included in the corresponding year of 2009.
The companies Unibrain Inc, Fornax RT, Fornax Integrator, Fornax Informatica Doo Croatia, Fornax Slovakia, Switchlink NV and Dialogos SA were included in the consolidated financial statements for the year 2009, but not in the current year's financial statements. In particular, Dialogos SA was included in the consolidated financial statements up to 7 June 2010, at which date it was disposed of. Furthermore, Intracom Jordan has been renamed to Intracom IT Services Middle East & Africa and Razobeco Development SRL to Rominplot SRL.
Except for the above, there are no further changes in the consolidation method for the companies included in the group financial statements.
(All amounts in €'000)
| Name | Country of incorporation |
Direct % interest held |
Consolidation Method |
Unaudited Tax Years |
|---|---|---|---|---|
| * Intracom S.A Defence Electronic Systems | Greece | 100,00% | Full | 2007 - 2009 |
| 49,25% (note |
||||
| * HELLAS ON LINE | Greece | 1) | Full | 2007- 2009 |
| - Attica Telecommunications SA | Greece | 100,00% | Full | 2008-2009 |
| - Unibrain Inc | USA | 100,00% | Full | From establishment - 2009 |
| * Intracom Holdings International Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Technologies Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Fornax RT | Hungary | 67,00% | Full | 2003, 2006-2009 |
| - Fornax Integrator | Hungary | 100,00% | Full | 2001-2009 |
| - Fornax Informatika Doo Croatia | Croatia | 100,00% | Full | 2005-2009 |
| - Fornax Slovakia | Slovakia | 100,00% | Full | 2005-2009 |
| - Intracom Operations Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Group USA | USA | 100,00% | Full | From establishment - 2009 |
| - Duckelco Holdings Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Ingrelenco Trading Co. Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| * Intracom IT Services | Greece | 100,00% | Full | 2005- 2009 |
| - Global Net Solutions Ltd | Bulgaria | 100,00% | Full | From establishment - 2009 |
| - Dialogos SA | Greece | 39,50% | Full | 2007-2009 |
| - Data Bank SA | Greece | 90,00% | Full | 2009 |
| - Intracom Jordan Ltd | Jordan | 80,00% | Full | 2009 |
| - Intracom IT Services Denmark AS | Denmark | 100,00% | Full | 2008 - 2009 |
| - Intracom Exports Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Cyprus Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intrasoft International SA | Luxembourg | 99,76% | Full | 2008-2009 |
| - Intrasoft SA | Greece | 99,00% | Full | 2008-2009 |
| - Intrasoft International Belgium | Belgium | 100,00% | Full | 2004-2009 |
| - Switchlink NV | Belgium | 65,16% | Full | From establishment - 2009 |
Note 1: The total shareholding in Hellas on Line is 53,40% through the participation of subsidiary companies of the Group.
(All amounts in €'000)
| Name | Country of incorporation |
Direct % interest held |
Consolidation Method |
Unaudited Tax Years |
|---|---|---|---|---|
| * Intrakat SA | Greece | 62,24% | Full | 2008 - 2009 |
| - Inmaint SA | Greece | 62,00% | Full | 2009 |
| - ΚEPA Attica SA | Greece | 51,00% | Full | 2005-2009 |
| - Intracom Construct SA | Romania | 96,54% | Full | 2009 |
| -Oikos Properties SRL. | Romania | 100,00% | Full | 2007-2009 |
| - Eurokat SA | Greece | 94,38% | Full | 2007-2009 |
| -J./V. ΑΚΤOR ΑΤΕ - LOBBE TZILALIS - EUROKAT ATE (Ily | ||||
| Administration Κ.Ε.L.) | Greece | 31,46% | Proportional | 2007-2009 |
| - Intrakat International Ltd | Cyprus | 100,00% | Full | 2008-2009 |
| -SC Plurin Telecommunications SRL | Romania | 50,00% | Equity | 2008-2009 |
| -Alpha Mogilany Development SP Z.O.O | Poland | 25,00% | Equity | 2008-2009 |
| - Intradevelopment SA | Greece | 100,00% | Full | 2004-2009 |
| - Fracasso Hellas AE Design & construction pf road safety systems | Greece | 55,00% | Full | - |
| -Prisma - Domi ΑΤΕ | Greece | 50,00% | Full | 2009 |
| -J/VAthinaiki Techniki s.a.- "J/V Archirodon Hellas ATE - Prisma Domi ATE" (General Department East Macedonia & Thraki) |
Greece | 10,00% | Equity | 2007-2009 |
| -J/V VIOTER s.a. - Prisma Domi s.a. constructor (Sewages process facilities & subpipe of Ag.Theodorous municipality) |
Greece | 10,00% | Equity | 2008-2009 |
| -J/V/ NOEL s.a. - Prisma Domi ATE - (Wind park in "Driopi") | Greece | 17,50% | Equity | 2009 |
| J./V. Mohlos - Intrakat (Tennis) | Greece | 50,00% | Equity | 2006-2009 |
| J./V. Mohlos - Intrakat (Swimm.) | Greece | 50,00% | Equity | 2003-2009 |
| J./V. Panthessalikon Stadium | Greece | 15,00% | Equity | 2008-2009 |
| J./V. Elter-Intrakat (EPA Gas) | Greece | 45,00% | Equity | 2008-2009 |
| J./V. Intrakat - Gatzoulas | Greece | 50,00% | Equity | 2004-2009 |
| J./V. Elter-Intrakat-Εnergy | Greece | 40,00% | Equity | 2005-2009 |
| J./V. "Αth.Techniki-Prisma Domi"-Ιntrakat | Greece | 50,00% | Equity | 2005-2009 |
| J./V. Intrakat-Ergaz-ALGAS | Greece | 33,33% | Equity | 2007-2009 |
| J./V. Intrakat - Elter (Maintenance N.Section) | Greece | 50,00% | Proportional | 2006-2009 |
| J./V. Intrakat - ΑΤΤΙΚΑΤ (Εgnatia Οdos) | Greece | 50,00% | Proportional | 2009 |
| J./V. Intrakat - Elter (Alex/polis pipeline) | Greece | 50,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Xiria) | Greece | 50,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Road diversion- Arta) | Greece | 30,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Natural gas installation project- Schools) J./V. Intrakat - Elter ( Natural Gas Installation Project Attica Northeast & |
Greece | 30,00% | Proportional | 2007-2009 |
| South ) | Greece | 49,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Intracom Telecom (DEPA Network) | Greece | 70,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Broadband networks) | Greece | 50,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Natural Gas installation project - Schools EPA 3) | Greece | 50,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (Natural Gas pipelines 2007 Northeastern Attica Region EPA 4) |
Greece | 50,00% | Proportional | 2007-2009 |
| J./V.Intrakat- Elter(Gas Distrib.Network Expansion) | Greece | 50,00% | Proportional | 2007-2009 |
| J./V. ΑΚΤOR ΑΤΕ- Pantechniki SA - Intrakat (J./V. Μoreas) | Greece | 13,33% | Proportional | 2008-2009 |
| J./V. Intrakat - Elter (ΕPA 5) - Natural Gas Installation Central Region | Greece | 50,00% | Proportional | 2007-2009 |
| J./V. Intrakat - Elter (EPA 6) - Natural Gas Installation South Region | Greece | 50,00% | Proportional | 2008-2009 |
| J./V. Intrakat - Elter ( Hospital of Katerini) | Greece | 50,00% | Proportional | 2008-2009 |
| J./V. Intrakat - Elter (Hospital of Corfu) | Greece | 50,00% | Proportional | 2008-2009 |
| J./V. Intrakat Elter (EPA 7) - Natural Gas Distribut.Network Attica | Greece | 49,00% | Proportional | 2007-2008 |
| J./V. Ιntrakat Elter -Natural Gas Suppl.Network Lamia-Thiva-Chalkida | Greece | 50,00% | Proportional | 2008-2009 |
| J./V. Intrakat - Elter (Completion of Ionio Building, General Clinic) J./V. Eurokat-ΕΤVO- Construction of Central Library Building of School of |
Greece | 50,00% | Proportional | 2008-2009 |
| Fine Arts | Greece | 70,00% | Proportional | 2008-2009 |
| J/V Anastilotiki - Getem - Intrakat (Museum of Patras) | Greece | 25,00% | Proportional | 2007-2009 |
| J/V Anastilotiki - Getem - Intrakat (Piros-Parapiros Dams) | Greece | 33,30% | Proportional | 2006-2009 |
| J/V Intrakat - Elter - (dam construction in Filiatra) | Greece | 50,00% | Proportional | 2009 |
| J/V Intrakat - K.Panagiotidis & Co (line transfer construction 1) | Greece | 60,00% | Proportional | - |
| J/V Altec - Intrakat - Anastilotiki (Thessaloniki Airport) | Greece | 46,90% | Proportional | 2009 |
(All amounts in €'000)
| Name | Country of incorporation |
Direct % interest held |
Consolidation Method |
Unaudited Tax Years |
|---|---|---|---|---|
| * Intracom Telecom Solutions SA | Greece | 49,00% | Equity | 2009 |
| -Intracom Bulgaria S.A. | Bulgaria | 100,00% | Full | 1998-2009 |
| -Intracom Svyaz Ltd. | Russia | 100,00% | Full | From establishment - 2009 |
| -Intracom Doo Skopje | FYROM | 100,00% | Full | 2006-2009 |
| -Intralban Sha | Albania | 95,00% | Full | 2005-2009 |
| -Intrarom S.A. | Romania | 66,70% | Full | 2004-2009 |
| -Sitronics Intracom India PL** | India | 100,00% | Full | From establishment - 2009 |
| -Intracom Telecom Holdings International Ltd | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Middle East L.L.C. | United Arab Emirates | 100,00% | Full | Not applicable |
| - Connklin Corporation | USA | 100,00% | Full | 2001-2009 |
| - Intracom Telecom solutions S.R.L. | Moldova | 100,00% | Full | From establishment - 2009 |
| - Intracom doo Belgrade | Serbia | 100,00% | Full | From establishment - 2009 |
| - Ε-Teleserv doo Belgrade** | Serbia | 100,00% | Full | - |
| - Intracom doo Armenia | Armenia | 100,00% | Full | 2008 -2009 |
| - Intracom Telecom Technologies Ltd. | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Telecom Operations Ltd. | Cyprus | 100,00% | Full | From establishment - 2009 |
| - Intracom Telecom Solutions Saudi Arabia | Saudi Arabia | 95,00% | Full | From establishment - 2009 |
* Direct shareholding
Ε) Notes and Information
| CONDENSED BALANCE SHEET Amounts in € thousands |
STATEMENT OF COMPREHENSIVE INCOME Amounts in € thousands |
||||||||
|---|---|---|---|---|---|---|---|---|---|
| GROUP | COMPANY | GROUP | COMPANY | ||||||
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | 01/01-31/12/2010 01/01-31/12/2009 | 01/01-31/12/2010 01/01-31/12/2009 | ||||
| ASSETS | |||||||||
| Property plant and equipment | 362.394 | 375.496 | 25.425 | 29.190 | Sales | 575.384 | 547.414 | 2.898 | 3.392 |
| Investment property | 68.368 | 57.618 | 65.768 | 64.008 | Gross profit (loss) | 79.220 | 59.393 | 477 | 448 |
| Intangible assets | 124.992 | 130.619 | 7 | 8 | Profit/(loss) before tax, financing and investing results | -16.069 | 14.061 | -9.128 | -11.430 |
| Other Non-current assets | 141.986 | 157.397 | 384.211 | 370.930 | Profit/(loss) before income tax | -38.804 | -5.311 | -9.672 | -12.438 |
| Inventories | 44.166 | 47.140 | - | Profit/(Loss) after Tax (A) | -45.881 | -2.577 | -9.761 | -13.032 | |
| Trade Receivables | 220.590 | 229.423 | 7.676 | 8.551 | -Equity holders of the Company | -30.530 | 10.497 | -9.761 | -13.032 |
| Other current assets | 204.256 | 200.829 | 14.272 | 23.653 | -Non-controlling Interest | -15.351 | -13.074 | - | - |
| Non current Assets classified as held for sale | 0 | 10.291 | 0 | - | |||||
| TOTAL ASSETS | 1.166.752 | 1.208.813 | 497.359 | 496.340 | Other comprehensive Income for the period, net of tax (Β) | -2.349 | -52.530 | -5 | -2 |
| Total comprehensive Income, net of Tax (Α) + (Β) | -48.230 | -55.107 | -9.766 | -13.034 | |||||
| EQUITY AND LIABILITIES | -Equity holders of the Company | -32.099 | 9.406 | -9.766 | -13.034 | ||||
| Share capital | 187.567 | 187.567 | 187.567 | 187.567 | -Non-controlling Interest | -16.131 | -64.513 | - | - |
| Reserves | 224.613 | 255.628 | 271.755 | 280.694 | |||||
| Capital and reserves attributable to the Company's equity holders (a) | 412.180 | 443.195 | 459.322 | 468.261 | Earnings After Tax per share - basic (in €) | -0,2305 | 0,0797 | -0,0737 | -0,0990 |
| Non controlling interest (b) | 40.637 | 57.300 | - | - | Profit/(loss) before income tax, financing, investing results | ||||
| Total Equity (c) = (a) + (b) | 452.817 | 500.495 | 459.322 | 468.261 | and total depreciation | 63.154 | 77.223 | -7.067 | -9.054 |
| Long-term bank borrowings | 158.328 | 168.848 | 13.699 | 6.196 | |||||
| Provisions/Other long-term liabilities | 45.759 | 49.928 | 1.475 | 1.369 | |||||
| Short-term bank borrowings | 192.805 | 171.792 | 13.840 | 9.698 | CONDENSED CASH FLOW STATEMENT | ||||
| Other short-term liabilities | 317.043 | 315.154 | 9.023 | 10.816 | Amounts in € thousands | ||||
| Liabilities related to non-current assets | |||||||||
| available for sale | 0 | 2.596 | - | - | |||||
| Total Liabilities (d) | 713.935 | 708.318 | 38.037 | 28.079 | GROUP | COMPANY | |||
| TOTAL EQUITY AND LIABILITIES (c)+(d) | 1.166.752 | 1.208.813 | 497.359 | 496.340 | Indirect Method | 01/01-31/12/2010 | 01/01-31/12/2009 | 01/01-31/12/2010 | 01/01-31/12/2009 |
| Amounts in € thousands | ||||||||
|---|---|---|---|---|---|---|---|---|
| GROUP | COMPANY | GROUP | COMPANY | |||||
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | 01/01-31/12/2010 01/01-31/12/2009 | 01/01-31/12/2010 01/01-31/12/2009 | |||
| Total comprehensive Income, net of Tax (Α) + (Β) | -48.230 | -55.107 | -9.766 | -13.034 | ||||
| Total Liabilities (d) | 713.935 | 708.318 | 38.037 | 28.079 | GROUP | COMPANY | |||
|---|---|---|---|---|---|---|---|---|---|
| TOTAL EQUITY AND LIABILITIES (c)+(d) | 1.166.752 | 1.208.813 | 497.359 | 496.340 | Indirect Method | 01/01-31/12/2010 | 01/01-31/12/2009 | 01/01-31/12/2010 | 01/01-31/12/2009 |
| Operating activities | |||||||||
| Profit/(Loss) before Income Tax (from continuing activities) | -38.804 | -5.311 | -9.672 | -12.438 | |||||
| STATEMENT OF CHANGES IN EQUITY | Profit/(Loss) before Income Tax (from discontinued activities) | - | - | ||||||
| Amounts in € thousands | Plus / Minus Adjustments for: | ||||||||
| GROUP | COMPANY | Depreciation | 79.223 | 63.162 | 2.061 | 2.376 | |||
| 31/12/2010 | 31/12/2009 | 31/12/2010 | 31/12/2009 | Impairement of Tangible and Intangible assets | 496 | 4.791 | 0 | 1.579 | |
| Balance at the beginning of period (01.01.2010 and 01.01.2009 respectively) | 500.495 | 468.487 | 468.261 | 480.251 | Provisions | -1.401 | -3.776 | 37 | -280 |
| Total comprehensive income for the period after tax | -48.230 | -55.107 | -9.766 | -13.034 | Translation Differences | 253 | -195 | - | - |
| Share capital Increase/ (Decrease) | 0 | 83.957 | - | - | Net cash from investing activities | -6.671 | -57.257 | 2.945 | 8.493 |
| Dividend Distributed | -2 | -204 | - | - | Interest expense and related costs | 21.626 | 21.558 | 1.153 | 1.764 |
| Effect from percentage changes in non-controlling interests | 21 -339 |
- | - | - | Plus / Minus Adjustments for Working Capital Changes | ||||
| Disposal of Subsidiary Acquisition of Subsidiaries |
0 | 0 2.138 |
0 - |
0 - |
or related to operating activities. Decrease / (increase) in inventories |
2.773 | 1.996 | - | - |
| Employees stock options scheme | 45 | 181 | - | - | Decrease / (increase) in receivables | -14.889 | 6.668 | -513 | 39 |
| Distribution of Treasury Shares | 827 | 1.043 | 827 | 1.044 | Decrease / (increase) in liabilities (other than banks) | 12.438 | 13.908 | -1.934 | -3.797 |
| Balance at the end of period (31/12/2010 and 31/12/2009 respectively) | 452.817 | 500.495 | 459.322 | 468.261 | Less: | ||||
| Interest expenses and related costs paid | -21.669 | -21.384 | -1.153 | -1.764 | |||||
| ADDITIONAL DATA AND INFORMATION: | Income Tax paid | -1.484 | 3.647 | -95 | 5.075 | ||||
| 1. There are no pledges on the Company's or Group's assets | Total inflow / (ouflow) from operating activities (a) | 31.891 | 27.807 | -7.171 | 1.047 | ||||
| 2. Number of employees at the end of current period: Company 42 employees (2009, 43employees) | Investing activities | ||||||||
| Group 5.487 employees (2009, 5.761 employees). | Acquisition of subsidiaries, associates, joint ventures and other investments | -1.267 | -151 | -15.588 | -1.008 | ||||
| 3. There are no legal disputes or cases on arbitration which may materially affect the financial position of the Company or the Group. | Proceeds from Share capital increase of subsidiary | 49.823 | - | - | |||||
| Other Provisions on 31.12.2010 sum up to € 1.568 thous. for the company and € 7.100 thous. for the Group. | Purchase of PPE and intangible assets | -83.893 | -98.376 | -62 | -406 | ||||
| There are no provisions for unaudited fiscal periods for the Company, whereas provisions for unaudited fiscal periods for the Group | Proceeds from sales of PPE and intangible assets | 9.798 | 5.120 | 4.706 | 1.168 | ||||
| sum up to € 1.629 thous. | Proceeds from sale of subsidiary | 415 | 0 | 0 | 0 | ||||
| There are no material provisions for legal disputes or cases on arbitration, neither for the Company nor for the Group. | Interest received | 626 | 1.004 | 216 | 255 | ||||
| 4. Sales and purchases amounts, cumulatively from the beginning of the fiscal year, and the balances of receivables and payables at the end | Dividends received | 12 | 200 | 1.500 | |||||
| of the current period deriving, for the Company and the Group, by related party transactions, under the light of IAS 24 provisions are as follows : | Total (outflow)/ inflow from investing activities (b) | -74.321 | -42.568 | -10.528 | 1.509 | ||||
| Financing activities | |||||||||
| (Amounts in € thousands) | Group | Company | Proceeds from share capital increase | - | - | - | - | ||
| a) Income | 10.448 | 4.868 | Payments for share capital decrease | - | - | - | - | ||
| b) Expenses | 28.372 | 509 | Expenses on issue of share capital | - | - | - | - | ||
| c) Receivables | 17.678 | 13.268 | Proceeds from borrowings | 48.586 | 85.287 | 12.002 | - | ||
| d) Payables | 62.305 | 4.498 | Repayments of borrowings | -30.618 | -59.397 | 0 | -3.400 | ||
| e)Transactions and remuneration of directors and key management. | 2.103 | 2.103 | Repayments of finance leases | -5.140 | -4.892 | -357 | - | ||
| f) Receivables from directors and key management | 0 | 0 | Dividends paid | -45 | -278 | -43 | -75 | ||
| g) Payables to directors and key management | 0 | 0 | Proceeds from grants | - - | - | - | |||
| 5. Information about the subsidiaries, associates and the joint ventures of the Group as at 31 December 2008 (name, country of incorporation, | Total inflow / outflow from financing activities (c ) | 12.783 | 20.720 | 11.602 | -3.475 | ||||
| direct interest held), as well as the consolidation method is presented in Note 43 of the financial statements. | Net increase / (decrease) in cash and cash equivalents | ||||||||
| Furthermore, in Note 43 changes in the consolidation method are mentionned. There are no changes in the consolidation method for the companies | for the period (a) + (b) + (c ) | -29.647 | 5.959 | -6.097 | -919 | ||||
| included in the group financial statements, or companies that are not included in the consolidation. | Cash and cash equivalents at beginning of period | 64.641 | 58.682 | 10.145 | 11.064 | ||||
| 6. The Company's tax returns have been audited by the tax authorities up to and including the fiscal year 2007. | Cash and cash equivalents at end of period | 34.994 | 64.641 | 4.048 | 10.145 | ||||
| Unaudited fiscal years by tax authorities for the Group's Companies are equally stated in Note 43. | |||||||||
| 7. At 31/12/2010 neither the company nor the Group hold any treasury shares of the mother company. | |||||||||
| 8. During the current period, expenses of € 5 thous., referring to valuation of financial assets available for sale,have been recorded directly | |||||||||
| to Shareholder's Equity (Fair value Reserves) of the company. | |||||||||
| Respectively, for the Group losses have been recorded of € 2.349 thous., from which € 1.376 thous. refer to valuation of financial assets available for sale, | |||||||||
| € 168 thous.are losses from exchange rate conversion, and € 805 thous. are fair value losses of cash flow hedge. | |||||||||
| 9. In the group balance sheet at 31 December 2009, the amount of €447 has been reclassified from current income tax assets | |||||||||
| ('current assets') to deferred income tax assets ('non-current assets'). | |||||||||
| (Note 2 of financial statements). | |||||||||
| 10. Amount of € 189.581 thous. has been reclasified from share capital to Other reserves, both in the group and stand-alone balance sheet at 31 December 2009. | |||||||||
| Mother company's Equity has not been affected by the reclassification. | |||||||||
| Peania, March 30th 2011 | |||||||||
| ACCOUNTING MANAGER | |||||||||
| THE CHAIRMAN OF THE BOARD OF DIRECTORS |
VICE CHAIRMAN OF THE BOARD OF DIRECTORS |
||||||||
| AND CEO | AND DEPUTY MANAGING DIRECTOR | ||||||||
| Ι. Κ. TSOUMAS ID No ΑΖ 505361/10.12.2007 |
|||||||||
| S.P. KOKKALIS ID No ΑΙ 091040/05.10.2009 |
D.C. KLONIS ID No Ρ 539675/06.11.1995 |
L.C. 637 First Class | |||||||
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Total comprehensive income for the period after tax | ||||
| Share capital Increase/ (Decrease) | ||||
| Dividend Distributed | ||||
| Effect from percentage changes in non-controlling interests | ||||
| Disposal of Subsidiary | ||||
| Distribution of Treasury Shares | ||||
| Balance at the end of period (31/12/2010 and 31/12/2009 respectively) | 452.817 | 500.495 | 459.322 | 468.261 |
| (Amounts in € thousands) | |
|---|---|
INTRACOM HOLDINGS SA
The purpose of the financial information set out below is to provide an overview of the financial position and financial results of INTRACOM HOLDINGS SA and INTRACOM GROUP. We advice the reader, before making any investment decision or other transaction with the Company, to visit the Company's website (www.intracom.com) where the interim financial statements prepared in accordance with International Financial Reporting Standards together with the audit review of the independent auditors, whenever this is required, are presented.
(Ledger No SA 13906/06/Β/86/20) 19 km MARKOPOULOU AVE., GR-19002, PEANIA ATHENS
Concise financial information for the period from 1 January 2010 to 31 December 2010
(reported under the provisions of L.2190 Art.135 for companies which prepare annual financial statements consolidated or stand alone in accordance with IFRS)
Authority in charge: Ministry of Development Web Address : www.intracom.com Date of approval of the financial statements by the BoD: 30/03/2011
Board of Directors: Chairman of the Board of Directors, Executive Member Socrates P. Kokkalis Vice Chairman and Deputy CEO, Executive Member: Dimitrios X. Klonis, Advisor, Executive Member: George Ar. Anninos, Non-Executive Member: Konstantinos G. Antonopoulos
Independent Non-Executive Members: Sotirios N. Filos, Dimitrios Κ. Hatzigrigoriadis.
Certified Auditors Accountants: Maria Charitou (L.C./ Accociation of Certified Auditors 15161) Auditing Firm: - SOL S.A. CERTIFIED AUDITORS ACCOUNTANTS Type of review Opinion: With no qualification
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