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Proximus SA — Audit Report / Information 2011
Mar 16, 2012
3989_rns_2012-03-16_d8c875ef-09ce-4359-8161-c60e2432080e.pdf
Audit Report / Information
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Belgacom NV van publiek recht / SA de droit public
Report of the joint auditors for the year ended 31 December 2011
The original text of this report is in Dutch / French
Belgacom NV van publiek recht / SA de droit public
Report of the joint auditors for the year ended 31 December 2011 to the shareholders' meeting
To the shareholders
As required by law and the company's articles of association, and more specifically by articles 143 and 144 of the Companies Code, applicable to Belgacom NV van publiek recht / SA de droit public under article 37 of the law of 21 March 1991 reforming certain economic public corporations, we are pleased to report to you on the audit assignment which you have entrusted to us. This report includes our opinion on the financial statements together with the required additional comments and information.
Unqualified audit opinion on the financial statements
We have audited the financial statements of Belgacom NV van publiek recht / SA de droit public for the vear ended 31 December 2011, prepared in accordance with the accounting principles applicable in Belgium, which show total assets of 16.045.305 (000) EUR, and a profit for the year of 628.394 (000) EUR.
The board of directors of the company is responsible for the preparation and fair presentation of the financial statements. This responsibility includes among other things: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.
Our responsibility is to express an opinion on these financial statements based on their audit. We conducted our audit in accordance with legal requirements and auditing standards applicable in Belgium, as issued by the "Institut des Réviseurs d'Entreprises/Instituut van de Bedrijfsrevisoren". Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
In accordance with these standards, we have performed procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
Belgacom NV van publiek recht / SA de droit public Report of the joint auditors for the year ended 31 December 2011 2
$\frac{1}{2}$
In making those risk assessments, we have considered internal control relevant to the company's preparation and fair presentation of the 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 company's internal control. We have assessed the basis of the accounting policies used, the reasonableness of significant accounting estimates made by the company and the presentation of the financial statements, taken as a whole. Finally, the board of directors and responsible officers of the company have replied to all our requests for explanations and information. We believe that the audit evidence that we have obtained, provides a reasonable basis for our opinion.
In our opinion, the financial statements as of 31 December 2011 give a true and fair view of the company's assets, liabilities, financial position and the results in accordance with the accounting principles applicable in Belgium.
Additional comments and information
The preparation and the assessment of the information that should be included in the directors' report as well as the company's compliance with the requirements of the Companies Code and its articles of association are the responsibility of the board of directors.
Our responsibility is to include in our report the following additional comments and information, which do not change the scope of our audit opinion on the financial statements:
- The directors' report includes the information required by law and is in agreement with the financial statements. However, we are unable to express an opinion on the description of the principal risks and uncertainties confronting the company, or on the status, future evolution, or significant influence of certain factors on its future development. We can, nevertheless, confirm that the information given is not in obvious contradiction with any information obtained in the context of our appointment.
- Without prejudice to certain formal aspects of minor importance, the accounting records are maintained in accordance with the legal and regulatory requirements applicable in Belgium.
- In accordance with article 523 of the Companies Code, we are required to report on the following operations which have taken place since 31 December 2010:
During the meeting of the board of directors of 24 February 2011, the board of directors has decided upon the short and long term incentives of the President & CEO. In its directors' report, the board of directors has, in accordance with the requirements of article 523 of the Companies Code, reported on this transaction that triggered a conflict of interest for the President & CEO, in his capacity as director of the company. We refer to the attached directors' report, including annex 5, for the respective extract from the minutes of the board of directors. In respect of the offering to the President & CEO under the short term incentives, the board of directors estimates the financial consequences for the company at 711.652 EUR for the past year. In respect of the offering to the President & CEO under the long term incentives, the board of directors estimates the financial consequences for the company at 474.329 EUR for the past year.
$\bullet$ No transactions have been undertaken or decisions taken in violation of the company's articles of association or the Companies Code such as we would be obliged to report to you. The appropriation of the results proposed to the general meeting is in accordance with the requirements of the law and the company's articles of association.
$\frac{1}{\sqrt{2}}$
During the period, the company paid an interim dividend on which the statutory auditors, members of the joint $\bullet$ auditors, have issued the report attached to the present report, as required by law.
Brussels, 2 March 2012
The joint auditors
DELOITTE Bedrijfsrevisoren / Reviseurs d'Entreprises BV o.v.v.e. CVBA / SCs.f.d. SCRL Represented by Geert Verstraeten
Luc CALLAERT BV o.v.v.e. EBVBA / SC s.f.d. SPRLU Represented by Luc Callaert
The Belgian Court of Audit Represented by Pierre Rion Councelor
Romain Lesage Councelor
Belgacom NV van publiek recht /SA de droit public
Auditors' report on the statement of assets and liabilities as of 30 September 2011 with respect to the proposed distribution of an interim dividend
Free Translation
Table of content
$\mathbf{\hat{r}}$
Page
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| Introduction | ||
|---|---|---|
| 2. | Limited review procedures | 4 |
| 3. | Comments on the statement of assets and liabilities | 4 |
| 4. | Important post balance sheet date events | 4 |
| 5. | Limitations on the profit appropriation | |
| 6. | Conclusion |
$1.$ Introduction
In accordance with article 45 of the company's bylaws, the board of directors proposes to distribute an interim dividend out of the profit of the year.
In accordance with article 618 of the Company Code we have performed a limited review of the attached interim statement of assets and liabilities for the period of 1 January 2011 till 30 September 2011, which shows a balance sheet total of 16.103.478 (000) EUR.
This attached interim statement of assets and liabilities has been established under the responsibility of the board of directors in order to allow the directors to verify whether the available profit of the period, determined in accordance with the below mentioned article 618, is sufficient in order to distribute an interim dividend of approximately 161 million EUR.
The wording (translated from Dutch) of article 618 reads as follows:
"The articles of association empower the board of directors to distribute an interim dividend on the results of the financial year.
The distribution can only relate to the profit of the current financial year, and, in such case, decreased by losses carried forward or increased by profit carried forward excluding the reserves set aside based upon a legal or statutory requirement. In addition, the distribution can only be realized after the board of directors has verified that the profit, determined in accordance with the second paragraph, is adequate in order to distribute an interim dividend on the basis of the statement of assets and liabilities, which is reviewed by the statutory auditor.
The verification report of the statutory auditor is attached to his annual opinion.
The board of directors' decision to distribute an interim dividend should be taken no later than 2 months subsequent to the date on which the statement of assets and liabilities has been drafted.
The distribution can be decided upon as early as 6 months after the closing of the previous financial year and following the approval of the financial statements of that financial year.
Subsequent to a first interim dividend distribution, a new distribution can be decided upon as early as 3 months after the first interim dividend was decided upon.
If the interim dividends exceed the amount of the year-end annual dividend, which is decided upon by the General Assembly, the surplus is considered as an advance on the subsequent dividend."
$2.$ Limited review procedures
Our review was performed in accordance with the recommendations of the Belgian Institute of Chartered Auditors relating to limited review procedures. A limited review of a statement of assets and liabilities mainly comprises of an analytical review of the financial data and a discussion of this information with management. The scope of this limited review is not as extensive as a full review performed in accordance with generally accepted accounting standards. Therefore we cannot express an opinion on the attached statement.
We also ascertained that, based on the company's by-laws, the board of directors has the required legal power to distribute an interim dividend.
$3.$ Comments on the statement of assets and liabilities
The interim statement of assets and liabilities as of 30 September 2011 has been established under the responsibility of the board of directors in accordance with the accounting law and regulations and the company's valuation rules and is derived from the company's accounting records. The valuation rules are consistent with those used in the previous accounting year.
The establishment of a statement of assets and liabilities for purposes of issuing an interim dividend does not require the inclusion of disclosures. Nevertheless, we would like to refer to the disclosures with respect to important claims and legal proceedings as included in the company's annual accounts as per 31 December 2010 and the consolidated halfyear results of the Belgacom Group per 30 June 2011, more specifically to the discussion of the alleged abuse of dominance on the Belgian mobile market. The board of directors of Belgacom SA de droit public/NV van publiek recht has to assess this situation in the context of the intended distribution of an interim dividend. For the purpose of the distribution of an interim dividend, the attached interim statement of assets and liabilities is reliable to the extent that the assessment previously made by the board of directors with respect to the risks resulting from the claims and legal proceedings remains unchanged. The management has confirmed to us that there are at present no new elements that would change the above mentioned risk assessment.
4. Important post balance sheet date events
On 14 October 2011, the board of directors of Tango SA, a wholly owned subsidiary, decided to distribute an interim dividend to its shareholder, Belgacom SA de droit public/NV van publiek recht, for an amount that ranges between 300 and 800 million EUR. The final amount will be decided on 16 December 2011 and will be recorded as financial income in the books of Belgacom SA de droit public/NV van publiek recht at that time. As of the date of this report and on the basis of our discussions with the company's management, there have been no other important post balance sheet events since 30 September 2011, date of the attached interim statement of assets and liabilities, that would have a material effect.
5. Limitations on the profit appropriation
In accordance with article 616 of the Company Code, an amount of at least one twentieth of the net profit is to be annually withheld for the creation of a legal reserve. The obligation to withhold ends when the reserve fund has reached one tenth of its nominal capital.
In accordance with article 617 of the Company Code, no distribution may occur if, as a result of that distribution, the net assets would fall below the paid-in capital, or when this is higher, of the called-upon capital, increased by the reserves, which according to the legal and statutory requirements cannot be distributed. The net assets concern the total amount of assets, as shown in the balance sheet, less provisions and debts. In the event of a distribution of dividends, the shareholders' equity may not include the amount of unamortized formation expenses, and, subject to motivation in exceptional instances, the amount of unamortized research and development costs.
In accordance with article 618, the distribution of an interim dividend can only be made on the profit of the current year and the profit carried forward, excluding the reserves set aside based upon a legal or statutory requirement.
Article 43 of the bylaws of Belgacom NV requires that 5 percent of the annual profit before tax needs to be distributed towards the personnel of the company. This happens via the profit appropriation in the annual accounts. The attached interim statement of assets and liabilities per 30 September 2011 does not contain this appropriation.
In case new elements in connection with the existing claims and legal proceedings would arise prior to the general assembly that will approve the annual accounts as per 31 December 2011, which would give rise to a possible negative assessment that could be made in a reasonable and reliable manner, the distribution of the result could be influenced or potentially affected accordingly.
6. Conclusion
After consideration of what is mentioned above, our review did not reveal any facts or circumstances which would lead to important modifications to the statement of assets and liabilities for the period from 1 January 2011 till 30 September 2011.
The profit of the current period (109 million EUR), as mentioned in the statement as per 30 September 2011, excluding the reserves based upon legal or statutory requirements, is lower than the amount of the proposed interim dividend (approximately 161 million EUR). However, subsequent to 30 September 2011, the board of directors of Tango SA, a wholly owned subsidiary, decided to distribute an interim dividend of minimum 300 million EUR. Hence, prior to yearend 2011, at least 300 million of financial income will be recorded in the books of Belgacom SA de droit public/NV van publiek recht. Also, in case new elements in connection with the claims and legal proceedings would arise prior to the general assembly that will approve the annual accounts as per 31 December 2011, which would give rise to a possible negative assessment that could be made in a reasonable and reliable manner, the distribution of the result could be influenced or potentially affected accordingly.
The present report is solely intended for the use of the board of directors and the company's shareholders within the framework of the planned distribution of an interim dividend as set out above and can therefore not be used for any other purpose. In accordance with article 618, it should be annexed to the statutory report on the financial statements for the year ended 31 December 2011.
Brussels, 19 October 2011 DELOITTE Bedrijfsrevisoren BV o.v.v.e. CVBA Represented by Geert Verstraeten
Luc CALLAERT-BV 0.v.v.e. EBVBA Represented by Luc Callaert
Attachment: Statement of Assets and Liabilities per 30 September 2011
Belgacom Board October 27, 2011
Statement of assets and liabilities as per September 30, 2011 of Belgacom S.A. under public Law
BALANCE SHEET
| Notes | Codes | |||
|---|---|---|---|---|
| ASSETS | ||||
| FIXED ASSETS | 20/28 | 14.667.391.562,54 | ||
| Formation expenses | 5.1 | 20 | ||
| Intangible fixed assets | 5.2 | 21 | 4.746.893.255,05 | |
| Tangible fixed assets | 5.3 | 22/27 | 1.926.234.230,26 | |
| Land and buildings | 22 | 220.650.189,00 | ||
| Plant, machinery and equipment | 23 | 1.611.752.943,35 | ||
| Furniture and vehicles | 24 | 41.971.397,96 | ||
| Leasing and other similar rights | 25 | |||
| Other tangible fixed assets | 26 | 51.859.699,95 | ||
| Assets under construction and advance payments | 27 | |||
| 5.4/ | ||||
| Financial fixed assets | 5.5.1 | 28 | 7.994.264.077.23 | |
| Affiliated enterprises | 5.14 | 280/1 | 7.959.644.460,62 | |
| Participating interests | 280 | 7.959.644.460,62 | ||
| Amounts receivable | 281 | |||
| Other enterprises linked by participating interests | 5.14 | 282/3 | 9.365.422.01 | |
| Participating interests | 282 | 9.365.422,01 | ||
| Amounts receivable | 283 | |||
| Other financial assets | 284/8 | 25.254.194,60 | ||
| Shares | 284 | 23.646.826,64 | ||
| Amounts receivable and cash guarantees | 285/8 | 1.607.367,96 | ||
| CURRENT ASSETS | 29/58 | 1.436.086.075,91 | ||
| Amounts receivable after more than one year | 29 | 1.751.581.31 | ||
| Trade debtors | 290 | |||
| Other amounts receivable | 291 | 1.751.581,31 | ||
| Stocks and contracts in progress | 3 | 100.607.669.49 | ||
| Stocks | 30/36 | 76.210.290,95 | ||
| Raw materials and consumables | 30/31 | 26.657.621,98 | ||
| Work in progress | 32 | |||
| Finished goods | 33 | |||
| Goods purchased for resale | 34 | 49.552.668,97 | ||
| Immovable property intended for sale | 35 | |||
| Advance payments | 36 | |||
| Contracts in progress | 37 | 24.397.378,54 | ||
| Amounts receivable within one year | 5.5.1/ 5.6 |
40/41 | 794.770.030.19 | |
| Trade debtors | 40 | 779.698.964,08 | ||
| Other amounts receivable | 41 | 15.071.066,11 | ||
| Current investments ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, |
50/53 | 478.781.474.54 | ||
| Own shares | 50 | 463,762,843,29 | ||
| Other Investments and deposits | 51/53 | 15.018.631,25 | ||
| Cash at bank and in hand | 54/58 | 5,267.851,29 | ||
| Deferred charges and accrued income | 5.6 | 490/1 | 54.907.469,09 | |
| TOTAL ASSETS | ||||
| 20/58 | 16.103.477.638,45 |
4
| Nr. | ||||
|---|---|---|---|---|
| EQUITY AND LIABILITIES | Notes | Codes | ||
| EQUITY | 10/15 | 2.109.919.670,69 | ||
| Capital | 5.7 | 10 | 1.000.000.000,00 | |
| Issued capital | 100 101 |
1.000.000.000,00 | ||
| Uncalled capital Share premium account |
11 | |||
| Revaluation surpluses | 12 | |||
| Reserves | 13 | 1.000.701.725,67 | ||
| Legal reserve | 130 | 100.000.000.00 | ||
| Reserves not available |
131 | 501.842.008.42 | ||
| In respect of own shares held | 1310 1311 |
501.842.008,42 | ||
| Other ……………………………………………………………………………………………… Untaxed reserves |
132 | 12.920.212.95 | ||
| Available reserves | 133 | 385.939.504.30 | ||
| Accumulated profits (losses) | 14 | 108.735.054.19 | ||
| Investment grants | 15 | 482.890,83 | ||
| Advance to associates on the sharing | ||||
| out of the assets manual content content of the assets manual content of the assets | 19 | |||
| PROVISIONS AND DEFERRED TAXES | 16 | 619.500.969.71 | ||
| Provisions for liabilities and charges | 160/5 | 614.868.976,93 | ||
| Pensions and similar obligations | 160 | 206.791.75 | ||
| Taxation | 161 | |||
| Major repairs and maintenance | 162 | |||
| Other liabilities and charges | 5.8 | 163/5 | 614.662.185.18 | |
| Deferred taxes | 168 | 4.631.992.78 | ||
| AMOUNTS PAYABLE | 17/49 | 13.374.056.998,05 | ||
| Amounts payable after more than one year | 5.9 | 17 | 10,198,347,365,65 | |
| Financial debts | 170/4 | 10.127.953.428.87 | ||
| Subordinated loans | 170 | |||
| Unsubordinated debentures | 171 | 1.767.298.626,76 | ||
| Leasing and other similar obligations | 172 | |||
| Credit institutions | 173 | 7.902.154.802,11 | ||
| Other loans | 174 | 458,500.000,00 | ||
| Trade debts | 175 | 70.393.936,78 | ||
| Suppliers | 1750 | 70.393.936,78 | ||
| Bills of exchange payable | 1751 | |||
| Advances received on contracts in progress | 176 | |||
| Other amounts payable | 178/9 | |||
| Amounts payable within one year | 42/48 | 2.740.325.489,01 | ||
| Current portion of amounts payable after more than one | ||||
| year falling due within one year | 5.9 | 42 | 429.485.221.47 | |
| Financial debts | 43 | 1.250.938.426,99 | ||
| Credit institutions | 430/8 | 1,248.643.426,99 | ||
| Other loans | 439 | 2.295.000,00 | ||
| Trade debts | 44 | 608.522.640,28 | ||
| Suppliers | 440/4 | 608.522.640,28 | ||
| Bills of exchange payable | 441 | |||
| Advances received on contracts in progress | 46 | 7.591.720,35 | ||
| Taxes, remuneration and social security | 5.9 | 45 | 430.413.802,35 | |
| Taxes | 450/3 | 250.124.551,41 | ||
| Remuneration and social security | 454/9 | 180,289,250,94 | ||
| Other amounts payable | 47/48 | 13.373.677,57 | ||
| Accrued charges and deferred income | 5.9 | 492/3 | 435.384.143,39 | |
| TOTAL LIABILITIES | 10/49 | 16.103.477.638,45 | ||
| _ | and the component of the component of the component of the component of the component of the component of the __ |
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|---|---|---|---|
| N°. | |||
| 0202.239.951 | . | ||
| ____ | ------------ $-100$ _________ |
. |
VALUATION RULES
The valuation rules comply with the terms of Chapter II of the R.D. of Jan 30, 2001.
These rules were approved and adapted by the Board of Directors at their meetings on May 27, 1993, Dec 4, 1997, Oct 22, 1998, Oct 28, 1999, Oct 26, 2000, April 25, 2002, Oct 23, 2003, Dec 13, 2004, Dec 18, 2008 and Feb 24, 2011.
BALANCE SHEET
FORMATION EXPENSES
The loan issue expenses are charged entirely to the year during which they are issued. Important formation expenses are capitalised and depreciated over a period of 5 years. The acquisitions of the year are depreciated pro rata temporis. Reorganisation costs are expensed.
INTANGIBLE ASSETS
The intangible assets are valued at the acquisition cost; this is the purchase price, production cost or the assigned value. General expenses are not incorporated.
For depreciations the straight line method is used. The acquisitions of the year are depreciated pro rata temporis.
Intangible assets with an unlimited useful life are not depreciated. These assets shall only be written down in case of a permanent impairment or diminution in value.
Intangible assets with a limited useful life are depreciated at a fixed rate using the following plan, established on the basis of economic criteria:
- Goodwill: 5 to 15 years
- $\overline{a}$ Software: 5 years
- Network licenses: over the license period $\blacksquare$
- Rights to use, football and broadcasting rights: over the contract period
- Customer bases and trademarks: 3 to 10 years
The goodwill generated by the merger of beginning of 2010 is depreciated over 15 years. This depreciation period is justified by the long life character of the profitability of all the merged companies.
TANGIBLE ASSETS
Tangible assets are valued at their acquisition cost; this is the purchase price, production cost or the assigned value. General expenses are not incorporated.
Tangible assets with an unlimited useful life are not depreciated. These assets shall only be written down in case of a permanent impairment or diminution in value.
Tangible assets with a limited useful life are depreciated using the straight line method. They are depreciated at a fixed rate using the following plan, established on the basis of economic criteria:
| Land and buildings | Useful life (years) |
|---|---|
| - Land | indefinite |
| - Buildings and building equipment | $22 - 33$ |
| - Facilities in buildings | $3 - 10$ |
| - Leasehold improvements | $3 - 10$ |
| 0202.239.951 | $N^{\circ}$ | |
|---|---|---|
Technical and network equipment
| - Cables and ducts | $15 - 20$ |
|---|---|
| - Switches | $8 - 10$ |
| - Transmission equipment | $6 - 8$ |
| - Radio Access Network | $6 - 7$ |
| - Mobile sites and site facility equipment | $5 - 10$ |
| - Equipment installed at client premises | $2 - 8$ |
| - Data and other network equipment | $2 - 15$ |
| Furniture and vehicles | |
| - Furniture and office equipment | $3 - 10$ |
| - Vehicles | $5 - 10$ |
Fixed assets held under leasing or other similar rights are depreciated according to the life period of the real property as mentioned in the contract.
Assets under construction and advance payments are depreciated over the life period of the assets to which they relate.
Fixed assets that are put out of order are valued at net book value or at their expected realisation value if lower. They are no longer depreciated.
The acquisitions of the year are depreciated pro rata temporis.
FINANCIAL ASSETS
Participating interests and shares are valued at their acquisition cost, which is the purchase price or the assigned value. Only the important ancillary costs are capitalised.
A write down is recorded if a durable permanent impairment or reduction in value of these assets is observed, based on the financial situation, the profitability or the prospects of the company in which the participating interests or shares are held, taking into account the CBN/CNC advice n° 126-8.
Receivables are booked at their nominal value. A write down is recorded when, at the due date, the payment is partially or entirely uncertain.
AMOUNTS RECEIVABLE AFTER MORE THAN ONE YEAR
Amounts receivables are booked at nominal value. Amounts receivable expressed in foreign currencies are converted to EUR at the rate in force on the date of booking of the outgoing invoice and are translated at the year-end rate.
A write down is recorded on the nominal value when at the due date, the payment is partially or entirely uncertain.
STOCKS AND CONTRACTS IN PROGRESS
Inventories of consumables and goods for resale are booked at their acquisition cost.
At the time of the annual inventory, the Weighted Average Price method is used to assess the various subdivisions in this caption.
A write down is applied when the sales or market value is lower than the acquisition cost or to take into consideration the risks inherent to the nature of the products.
Contracts in progress and work in process are valued at production cost or at market price (if this is lower than the production cost).
| 'N° | |
|---|---|
| 0202.239.951 | |
AMOUNTS RECEIVABLE WITHIN ONE YEAR
These amounts appear on the balance sheet at nominal value.
A write down is recorded on the nominal value when at the due date, the payment is partially or entirely uncertain.
Amounts receivable expressed in foreign currencies are converted into EUR at the rate in force on the date of entry of the outgoing invoice. At balance date they are translated at closing rate.
Amounts receivable from foreign telecommunication operators concerning settlements for telecommunication traffic in gold francs are translated in EUR on the basis of the rate of the Special Drawing Rights in effect on the closing date of the balance sheet via fixed parity of the Gold Franc/Special Drawing Rights exchange rate.
INVESTMENTS
Investments are valued at nominal value when they concern funds held in financial institutions and at acquisition cost, acquisition price without ancillary costs, in the other case.
A write-down is recorded on the nominal value or on the acquisition cost when the sales value on the closing date of the balance sheet is less than the previously booked value.
Investments in foreign currencies are translated into EUR at the rate in force on the closing date of the balance sheet.
CASH AT BANK AND IN HAND
Cash at bank and in hand is valued at nominal value. A write-down is recorded on the nominal value when the realisation value on the closing date of the balance sheet is less than the previously booked value. Cash at bank and in hand in foreign currencies is translated into EUR at the rate in force on the closing date of the balance sheet.
PROVISIONS AND DEFERRED TAXES
On the closing date of the balance sheet, an inventory is made of all foreseeable liabilities and contingent losses arising during the current year or during prior years. Provisions are established based on a reliable estimate of the risk on the moment of the establishment of the annual accounts. In the framework of post employment benefits, a provision is made at the origination of the obligation, namely at the moment of the pension or a specific agreement concerning leave before pension.
Deferred taxes are booked in compliance with article 76 of the R.D. of January 30, 2001.
AMOUNTS PAYABLE AFTER MORE AND WITHIN ONE YEAR
Amounts payables appear on the balance sheet at nominal value.
Amounts payable in foreign currencies are converted into EUR as follows:
- loans in foreign currencies at the rate in force at the time the loan is concluded;
- amounts payable to foreign telecommunication operators concerning settlements for telecommunication traffic in Gold Francs, on the basis of the rate of the Special Drawing Rights in effect on the date of the closing date of the balance sheet via the fixed parity of the Gold Franc/Special Drawing Rights exchange rate:
- trade debts at the exchange rate on the date of entry of the incoming invoice.
Trade debts and financial debts, not covered against exchange risks, expressed in foreign currencies are translated at closing rate.
æ
| 0202.239.951 |
|---|
| -------------- |
TRANSLATION DIFFERENCES
Exchange gains and losses resulting from the translation are taken in the income statement.
INCOME STATEMENT
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The items in the income statement are valued at nominal value. Own construction is booked at production cost excluding indirect costs.
RIGHT AND COMMITMENTS NOT ACCRUED IN THE BALANCE SHEET
The rights and commitments not accrued in the balance sheet are mentioned in the notes, per category, at the nominal value of the commitment in the contract, or failing that, at their estimated value.
$\overline{\mathscr{M}}$
Belgacom Board October 27, 2011
Statement of assets and liabilities as per September 30, 2011 of Belgacom S.A. under public Law
$Nr$ .
BALANCE SHEET
| Notes | Codes | |||
|---|---|---|---|---|
| ASSETS | ||||
| FIXED ASSETS | 20/28 | 14.667.391.562,54 | ||
| Formation expenses manual manufacture communications. | 5.1 | 20 | ||
| Intangible fixed assets monumeration communications. | 5.2 | 21 | 4.746.893.255,05 | |
| Tangible fixed assets | 5.3 | 22/27 | 1.926.234.230.26 | |
| Land and buildings | 22 | 220.650.189,00 | ||
| Plant, machinery and equipment | 23 | 1.611.752.943,35 | ||
| Furniture and vehicles | 24 | 41.971.397,96 | ||
| Leasing and other similar rights | 25 | 51.859.699,95 | ||
| Other tangible fixed assets | 26 | |||
| Assets under construction and advance payments | 27 | |||
| 5.41 | ||||
| Financial fixed assets | 5.5.1 | 28 | 7.994.264.077.23 | |
| Affiliated enterprises | 5.14 | 280/1 | 7.959.644.460.62 | |
| Participating interests www.communication.com | 280 | 7.959.644 460,62 | ||
| Amounts receivable | 281 | |||
| Other enterprises linked by participating interests | 5.14 | 282/3 | 9.365.422,01 | |
| Participating Interests | 282 | 9.365.422,01 | ||
| Amounts receivable | 283 | |||
| Other financial assets | 284/8 | 25.254.194,60 | ||
| Shares | 284 | 23.646.826,64 | ||
| Amounts receivable and cash guarantees | 285/8 | 1.607.367,96 | ||
| CURRENT ASSETS | 29/58 | 1.436.086.075,91 | ||
| Amounts receivable after more than one year | 29 | 1,751,581,31 | ||
| Trade debtors | 290 | |||
| Other amounts receivable | 291 | 1.751.581,31 | ||
| Stocks and contracts in progress | з | 100.607.669.49 | ||
| Stocks | 30/36 | 76.210.290,95 | ||
| Raw materials and consumables | 30/31 | 26.657.621,98 | ||
| Work in progress | 32 | |||
| Finished goods | 33 | |||
| Goods purchased for resale | 34 | 49,552,668,97 | ||
| Immovable property intended for sale | 35 | |||
| Advance payments | 36 | |||
| Contracts in progress | 37 | 24.397.378,54 | ||
| Amounts receivable within one year | 5.5.1/ 5.6 |
40/41 | 794.770.030.19 | |
| Trade debtors | 40 | 779.698.964,08 | ||
| Other amounts receivable | 41 | 15.071.066,11 | ||
| Current investments $\cdots$ |
50/53 | 478.781.474.54 | ||
| Own shares www.manualan.com/manualan.com/manualan.com | 50 | 463.762.843.29 | ||
| Other investments and deposits | 51/53 | 15.018.631,25 | ||
| Cash at bank and in hand | 54/58 | 5.267.851.29 | ||
| Deferred charges and accrued income | 5.6 | 490/1 | 54.907.469.09 | |
| TOTAL ASSETS | 20/58 | 16.103.477.638,45 | ||
$\label{eq:2.1} \mathcal{L}{\text{max}} = \left{ \begin{array}{ll} \mathcal{L}{\text{max}} & \mathcal{L}{\text{max}} \ \mathcal{L}{\text{max}} & \mathcal{L}_{\text{max}} \end{array} \right.$
| Nr. | ||||
|---|---|---|---|---|
| EQUITY AND LIABILITIES | Notes | Codes | ||
| EQUITY | 10/15 | 2.109.919.670,69 | ||
| Capital | 5.7 | 10 | 1.000.000.000,00 | |
| ssued capital Uncalled capital |
100 101 |
1.000.000.000,00 | ||
| Share premium account | 11 | |||
| Revaluation surpluses | 12 | |||
| Reserves | 13 | 1.000.701.725,67 | ||
| Legal reserve | 130 | 100.000.000,00 | ||
| Reserves not available $\cdots$ |
131 | 501.842.008,42 | ||
| In respect of own shares held Other manuscular communication communication and |
1310 1311 |
501.842.008.42 | ||
| Untaxed reserves | 132 | 12.920.212,95 | ||
| Available reserves | 133 | 385.939.504.30 | ||
| Accumulated profits (losses) | 14 | 108.735.054,19 | ||
| Investment grants | 15 | 482.890,83 | ||
| Advance to associates on the sharing out of the assets www.communication.com/www.com/www.com |
19 | |||
| PROVISIONS AND DEFERRED TAXES | 16 | 619.500.969,71 | ||
| Provisions for liabilities and charges | 160/5 | 614.868.976,93 | ||
| Pensions and similar obligations | 160 | 206.791.75 | ||
| Taxation | 161 | |||
| Major repairs and maintenance | 162 | |||
| Other liabilities and charges | 5.8 | 163/5 | 614.662.185.18 | |
| Deferred taxes | 168 | 4.631.992.78 | ||
| AMOUNTS PAYABLE | 17/49 | 13.374.056.998,05 | ||
| Amounts payable after more than one year | 5.9 | 17 | 10.198.347,365,65 | |
| Financial debts | 170/4 | 10.127.953.428.87 | ||
| Subordinated loans | 170 | |||
| Unsubordinated debentures | 171 | 1.767.298.626.76 | ||
| Leasing and other similar obligations | 172 | |||
| Credit institutions | 173 | 7.902.154.802.11 | ||
| Other loans | 174 | 458,500.000.00 | ||
| Trade debts | 175 | 70.393.936.78 | ||
| Suppliers | 1750 | 70.393.936.78 | ||
| Bills of exchange payable | 1751 | |||
| Advances received on contracts in progress | 176 | |||
| Other amounts payable | 178/9 | |||
| Amounts payable within one year | 42/48 | 2.740.325.489,01 | ||
| Current portion of amounts payable after more than one year falling due within one year |
5.9 | 42 | 429.485.221,47 | |
| Financial debts municipalminimum communications and the contract of the Financial Contract of the Financial Co | 43 | 1.250.938.426.99 | ||
| Credit Institutions | 430/8 | 1.248.643.426,99 | ||
| Other loans | 439 | 2,295.000,00 | ||
| Trade debts | 44 | 608.522.640.28 | ||
| Suppliers | 440/4 | 608,522.640,28 | ||
| Bills of exchange payable | 441 | |||
| Advances received on contracts in progress | 46 | 7.591.720.35 | ||
| Taxes, remuneration and social security | 5.9 | 45 | 430.413.802.35 | |
| Taxes | 450/3 | 250.124.551,41 | ||
| Remuneration and social security | 454/9 | 180.289.250.94 | ||
| Other amounts payable | 47/48 | 13.373.677,57 | ||
| 5.9 | 492/3 | 435.384.143.39 | ||
| Accrued charges and deferred income | 16.103.477.638,45 | |||
| TOTAL LIABILITIES | 10/49 |
VALUATION RULES
The valuation rules comply with the terms of Chapter II of the R.D. of Jan 30, 2001.
These rules were approved and adapted by the Board of Directors at their meetings on May 27, 1993, Dec 4, 1997, Oct 22, 1998, Oct 28, 1999, Oct 26, 2000, April 25, 2002, Oct 23, 2003, Dec 13, 2004, Dec 18, 2008 and Feb 24, 2011.
BALANCE SHEET
FORMATION EXPENSES
The loan issue expenses are charged entirely to the year during which they are issued. Important formation expenses are capitalised and depreciated over a period of 5 years. The acquisitions of the year are depreciated pro rata temporis. Reorganisation costs are expensed.
INTANGIBLE ASSETS
The intangible assets are valued at the acquisition cost; this is the purchase price, production cost or the assigned value. General expenses are not incorporated.
For depreciations the straight line method is used. The acquisitions of the year are depreciated pro rata temporis.
Intangible assets with an unlimited useful life are not depreciated. These assets shall only be written down in case of a permanent impairment or diminution in value.
Intangible assets with a limited useful life are depreciated at a fixed rate using the following plan, established on the basis of economic criteria:
- Goodwill: 5 to 15 years
- Software: 5 years
- Network licenses: over the license period $\blacksquare$
- Rights to use, football and broadcasting rights: over the contract period
- Customer bases and trademarks: 3 to 10 years
The goodwill generated by the merger of beginning of 2010 is depreciated over 15 years. This depreciation period is justified by the long life character of the profitability of all the merged companies.
TANGIBLE ASSETS
Tangible assets are valued at their acquisition cost; this is the purchase price, production cost or the assigned value. General expenses are not incorporated.
Tangible assets with an unlimited useful life are not depreciated. These assets shall only be written down in case of a permanent impairment or diminution in value.
Tangible assets with a limited useful life are depreciated using the straight line method. They are depreciated at a fixed rate using the following plan, established on the basis of economic criteria:
| Useful life (years) | |
|---|---|
| Land and buildings | |
| - Land | indefinite |
| - Buildings and building equipment | $22 - 33$ |
| - Facilities in buildings | $3 - 10$ |
| - Leasehold improvements | $3 - 10$ |
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Technical and network equipment
| - Cables and ducts | $15 - 20$ |
|---|---|
| - Switches | $8 - 10$ |
| - Transmission equipment | $6 - 8$ |
| - Radio Access Network | $6 - 7$ |
| - Mobile sites and site facility equipment | $5 - 10$ |
| - Equipment installed at client premises | $2 - 8$ |
| - Data and other network equipment | $2 - 15$ |
| Furniture and vehicles | |
| - Furniture and office equipment | $3 - 10$ |
| - Vehicles | $5 - 10$ |
Fixed assets held under leasing or other similar rights are depreciated according to the life period of the real property as mentioned in the contract.
Assets under construction and advance payments are depreciated over the life period of the assets to which they relate.
Fixed assets that are put out of order are valued at net book value or at their expected realisation value if lower. They are no longer depreciated.
The acquisitions of the year are depreciated pro rata temporis.
FINANCIAL ASSETS
Participating interests and shares are valued at their acquisition cost, which is the purchase price or the assigned value. Only the important ancillary costs are capitalised.
A write down is recorded if a durable permanent impairment or reduction in value of these assets is observed, based on the financial situation, the profitability or the prospects of the company in which the participating interests or shares are held, taking into account the CBN/CNC advice n° 126-8.
Receivables are booked at their nominal value. A write down is recorded when, at the due date, the payment is partially or entirely uncertain.
AMOUNTS RECEIVABLE AFTER MORE THAN ONE YEAR
Amounts receivables are booked at nominal value. Amounts receivable expressed in foreign currencies are converted to EUR at the rate in force on the date of booking of the outgoing invoice and are translated at the year-end rate.
A write down is recorded on the nominal value when at the due date, the payment is partially or entirely uncertain.
STOCKS AND CONTRACTS IN PROGRESS
Inventories of consumables and goods for resale are booked at their acquisition cost.
At the time of the annual inventory, the Weighted Average Price method is used to assess the various subdivisions in this caption.
A write down is applied when the sales or market value is lower than the acquisition cost or to take into consideration the risks inherent to the nature of the products.
Contracts in progress and work in process are valued at production cost or at market price (if this is lower than the production cost).
AMOUNTS RECEIVABLE WITHIN ONE YEAR
These amounts appear on the balance sheet at nominal value.
A write down is recorded on the nominal value when at the due date, the payment is partially or entirely uncertain.
Amounts receivable expressed in foreign currencies are converted into EUR at the rate in force on the date of entry of the outgoing invoice. At balance date they are translated at closing rate.
Amounts receivable from foreign telecommunication operators concerning settlements for telecommunication traffic in gold francs are translated in EUR on the basis of the rate of the Special Drawing Rights in effect on the closing date of the balance sheet via fixed parity of the Gold Franc/Special Drawing Rights exchange rate.
INVESTMENTS
Investments are valued at nominal value when they concern funds held in financial institutions and at acquisition cost, acquisition price without ancillary costs, in the other case.
A write-down is recorded on the nominal value or on the acquisition cost when the sales value on the closing date of the balance sheet is less than the previously booked value.
Investments in foreign currencies are translated into EUR at the rate in force on the closing date of the balance sheet.
CASH AT BANK AND IN HAND
Cash at bank and in hand is valued at nominal value. A write-down is recorded on the nominal value when the realisation value on the closing date of the balance sheet is less than the previously booked value. Cash at bank and in hand in foreign currencies is translated into EUR at the rate in force on the closing date of the balance sheet.
PROVISIONS AND DEFERRED TAXES
On the closing date of the balance sheet, an inventory is made of all foreseeable liabilities and contingent losses arising during the current year or during prior years. Provisions are established based on a reliable estimate of the risk on the moment of the establishment of the annual accounts. In the framework of post employment benefits, a provision is made at the origination of the obligation, namely at the moment of the pension or a specific agreement concerning leave before pension.
Deferred taxes are booked in compliance with article 76 of the R.D. of January 30, 2001.
AMOUNTS PAYABLE AFTER MORE AND WITHIN ONE YEAR
Amounts payables appear on the balance sheet at nominal value.
Amounts payable in foreign currencies are converted into EUR as follows:
- loans in foreign currencies at the rate in force at the time the loan is concluded;
- amounts payable to foreign telecommunication operators concerning settlements for telecommunication traffic in Gold Francs, on the basis of the rate of the Special Drawing Rights in effect on the date of the closing date of the balance sheet via the fixed parity of the Gold Franc/Special Drawing Rights exchange rate;
- trade debts at the exchange rate on the date of entry of the incoming invoice.
Trade debts and financial debts, not covered against exchange risks, expressed in foreign currencies are translated at closing rate.
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TRANSLATION DIFFERENCES
Exchange gains and losses resulting from the translation are taken in the income statement.
INCOME STATEMENT
The items in the income statement are valued at nominal value. Own construction is booked at production cost excluding indirect costs.
RIGHT AND COMMITMENTS NOT ACCRUED IN THE BALANCE SHEET
$\ddot{\phantom{a}}$
The rights and commitments not accrued in the balance sheet are mentioned in the notes, per category, at the nominal value of the commitment in the contract, or failing that, at their estimated value.