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Proximus SA Audit Report / Information 2024
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Audit Report / Information
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Proximus NV van publiek recht / Proximus SA de droit public Document subtitle= Verdana Heading 12 0/0 single
Proximus NV van publiek recht / Proximus SA de droit public
Statutory report of the joint auditors to the shareholders' meeting for the year ended 31 December 2024 - Annual accounts
The original text of this report is in Dutch and French
/ Reviseurs d'Entreprises
Statutory report of the joint auditors to the shareholders' meeting of Proximus NV van publiek recht/Proximus SA de droit public for the year ended 31 December 2024 - Annual accounts
In the context of the statutory audit of the annual accounts of Proximus NV van publiek recht/Proximus SA de droit public (the "company"), we hereby submit our statutory audit report. This report includes our report on the annual accounts and the other legal and regulatory requirements. These parts should be considered as integral to the report.
As Required by law and the company's articles of association, and more specifically by article 25 of the law of 21 March 1991 reforming certain economic public corporations applicable to Proximus NV van publiek recht/Proximus SA de droit public, the statutory auditors, members of the joint auditors, were appointed in their capacity as statutory auditor by the shareholder's meeting of 20 April 2022 for a period of six years, in accordance with the proposal of the board of directors issued upon recommendation of the audit and compliance committee. Our mandate will expire on the date of the shareholders' meeting deliberating on the annual accounts for the year ending 31 December 2027. Based on article 25, §3 of the law of 21 March 1991, two members of the Belgian Court of Audit were reappointed as members of the joint auditors by the General assembly of the Belgian Court of Audit dated 3 February 2021 and 19 July 2023.
Deloitte Bedrijfsrevisoren/Réviseurs d'Entreprises BV/SRL has performed the statutory audit of the annual accounts of Proximus NV van publiek recht/Proximus SA de droit public for 15 consecutive periods. Luc Callaert BV/SRL has performed the statutory audit for the annual accounts of Proximus NV van publiek recht/Proximus SA de droit public for 3 consecutive periods.
Report on the annual accounts
Unqualified opinion
We have audited the annual accounts of the company, which comprises the balance sheet as at 31 December 2024 and the income statement for the year then ended, as well as the explanatory notes. The annual accounts show total assets of 9 814 248 (000) EUR and the income statement shows a profit for the year ended of 359 785 (000) EUR.
In our opinion, the annual accounts give a true and fair view of the company's net equity and financial position as of 31 December 2024 and of its results for the year then ended, in accordance with the financial reporting framework applicable in Belgium.
Basis for the unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISA), as applicable in Belgium. In addition, we have applied the International Standards on Auditing approved by the IAASB applicable to the current financial year, but not yet approved at national level. Our responsibilities under those standards are further described in the "Responsibilities of the joint auditors for the audit of the annual accounts" section of our report. We have complied with all ethical requirements relevant to the statutory audit of the annual accounts in Belgium, including those regarding independence.
We have obtained from the board of directors and the company's officials the explanations and information necessary for performing our audit.
We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the annual accounts of the current period. These matters were addressed in the context of our audit of the annual accounts as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Revenue recognition on telecommunication activities
The accuracy of revenue is an inherent risk in the telecommunications industry. This is driven by the complexity of billing systems, the magnitude of volumes of data in combination with different products on the market and price changes during the year. The correct application of revenue recognition accounting standards to the separate elements of a customer's contract is complex and requires judgement by management.
The details on revenue recognition are included in the explanatory notes 6.19 'Valuation rules' and 6.10 'Net turnover' to the annual accounts.
Key audit matters How our audit addressed the key audit matters
We addressed this key audit matter by applying the following controls and substantive test procedures to the material revenue streams:
- We tested the design, implementation and operating effectiveness of the relevant key controls in place in the revenue cycle, as well as in the IT environment in which billing, rating and other relevant support systems reside, including the change control procedures in place around systems that support material revenue streams;
- We performed tests of details on a sample of individual revenue transactions, tracing these back to order documentation and cash receipts; and
- We performed a substantive analytical review.
Additionally, we assessed the appropriateness of the group's accounting policies with respect to revenue recognition and assessed compliance with the applicable accounting standards.
Responsibilities of the board of directors for the preparation of the annual accounts
The board of directors is responsible for the preparation and fair presentation of the annual accounts in accordance with the financial reporting framework applicable in Belgium and for such internal control as the board of directors determines is necessary to enable the preparation of the annual accounts that are free from material misstatement, whether due to fraud or error.
In preparing the annual accounts, the board of directors is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters to be considered for going concern and using the going concern basis of accounting unless the board of directors either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Responsibilities of the joint auditors for the audit of the annual accounts
Our objectives are to obtain reasonable assurance about whether the annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue a statutory auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts.
During the performance of our audit, we comply with the legal, regulatory and normative framework as applicable to the audit of annual accounts in Belgium. The scope of the audit does not comprise any assurance regarding the future viability of the company nor regarding the efficiency or effectiveness demonstrated by the board of directors in the way that the company's business has been conducted or will be conducted.
As part of an audit in accordance with ISA, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- identify and assess the risks of material misstatement of the annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from an error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
- obtain an understanding of internal control relevant to the audit 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;
- evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of directors;
- conclude on the appropriateness of the use of the going concern basis of accounting by the board of directors and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our statutory auditor's report to the related disclosures in the annual accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our statutory auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern;
- evaluate the overall presentation, structure and content of the annual accounts, and whether the annual accounts represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the audit and compliance committee regarding, amongst other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the audit and compliance committee with a statement that we have complied with relevant ethical requirements regarding independence, and we communicate with them about all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated to the audit and compliance committee, we determine those matters that were of most significance in the audit of the annual accounts of the current period and are therefore the key audit matters. We describe these matters in our report unless law or regulation precludes any public disclosure about the matter.
Other legal and regulatory requirements
Responsibilities of the board of directors
The board of directors is responsible for the preparation and the content of the directors' report on the annual accounts, including the sustainability statement and other matters disclosed in the annual report, for the documents to be filed according to the legal and regulatory requirements, for maintaining the company's accounting records in compliance with the legal and regulatory requirements applicable in Belgium, as well as for the company's compliance with the Code of companies and associations and the company's articles of association.
Responsibilities of the joint auditors
As part of our mandate and in accordance with the Belgian standard complementary to the International Standards on Auditing (ISA) as applicable in Belgium, our responsibility is to verify, in all material respects, the director's report on the annual accounts and other matters disclosed in the annual report, those documents to be filed according to the legal and regulatory requirements and compliance with certain obligations referred to in the Code of companies and associations and the articles of association, as well as to report on these matters.
Aspects regarding the directors' report
The annual report contains the sustainability statement which is the subject of a separate limited assurance report on the sustainability statement. This section does not pertain to the assurance on the sustainability statement included in the annual report. For this part of the annual report, we refer to the relevant report on the matter.
In our opinion, after performing the specific procedures on the directors' report on the annual accounts, the directors' report on the annual accounts is consistent with the annual accounts for that same year and has been established in accordance with the requirements of article 3:5 and 3:6 of the Code of companies and associations.
In the context of our statutory audit of the annual accounts we are also responsible to consider, in particular based on information that we became aware of during the audit, if the directors' report on the annual accounts is free of material misstatement, either by information that is incorrectly stated or otherwise misleading. In the context of the procedures performed, we are not aware of such material misstatement.
Statement on the social balance sheet
The social balance sheet, to be filed at the National Bank of Belgium in accordance with article 3:12, § 1, 8° of the Code of companies and associations, includes, both in form and in substance, all of the information required by this Code, including those relating to wages and training, and is free from any material inconsistencies with the information available to us in the context of our mission.
Statements regarding independence
- No services, incompatible with the statutory audit of the annual accounts as referred to by the law, have been performed and our audit firms and, if applicable, our networks of audit firms remained independent from the company during the performance of our mandate.
- The fees for the additional non-audit services compatible with the statutory audit of the annual accounts, as defined in article 3:65 of the Code of companies and associations, have been properly disclosed and disaggregated in the notes to the annual accounts.
Other statements
- 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.
- The appropriation of results proposed to the general meeting is in accordance with the relevant legal and regulatory requirements.
- We do not have to report any transactions undertaken or decisions taken which may be in violation of the company's articles of association or the Code of companies and associations.
- This report is consistent with our additional report to the audit and compliance committee referred to in article 11 of Regulation (EU) N° 537/2014.
- The board of directors has taken decisions which represented a conflict of interest for the CEO, Mr. Guillaume Boutin. The board of directors has provided the shareholders, in accordance with article 7:96 of the Code of companies and associations, with information relating to:
- ‒ The long and short-term incentives granted to the CEO for the performance evaluation of 2023 between the Company and the CEO.
- ‒ Renewal of the mandate of Proximus CEO including his contract and remuneration package for the period July 2024 and ending on June 2030.
We have assessed the financial consequences for the company relating to the decision taken in respect of the conflict of interest as described in the board of directors' report.
• In the context of article 7:213 of the Code of companies and associations, an interim dividend was distributed during the financial year on which we have issued the attached report in accordance with the legal requirements.
Signed at Brussels.
The joint auditors
Deloitte Bedrijfsrevisoren/Réviseurs d'Entreprises BV/SRL
Represented by Koen Neijens
The Belgian Court of Audit
Represented by Jan Debucquoy, Councillor
Luc Callaert BV/SRL Represented by Luc Callaert
The Belgian Court of Audit Represented by Christophe Rappe, Councillor
Deloitte Bedrijfsrevisoren/Réviseurs d'Entreprises BV/SRL Luc Callaert BV/SRL Rekenhof/Cour des comptes Registered Office: Gateway building, Bedrijfsrevisoren – Réviseurs d'Entreprises Regentschapsstraat 2 Luchthaven Brussel Nationaal 1 J, B-1930 Zaventem Zwaluwstraat 117 – B-1840 Londerzeel 2 Rue de la Régence VAT BE 0429.053.863 - RPR Brussel/RPM Bruxelles VAT BE 0463. 716.022 B-1000 Brussel/Bruxelles IBAN BE90 4350 2974 5132 - BIC KREDBEBB RPR Brussel/RPM Bruxelles Tel. +32 2 551 81 11
Fax +32 2 551 86 22
Deloitte.
Proximus SA under public law
Report on the limited review of the statement of assets and liabilities for the period ended 30 September 2024 of company Proximus SA under public law in the context of the distribution of an interim dividend
The original text of this report is in Dutch/French
Report on the limited review of the statement of assets and liabilities for the period ended 30 September 2024 of the company Proximus SA under public law in the context of the distribution of an interim dividend
In accordance with article 7:213 of the Code of companies and the articles of association of the company Proximus SA under public law ("the company") and in the context of our appointment as statutory auditor, we hereby report to the board of directors on the limited review of the statement of assets and liabilities for the period ended 30 September 2024.
We have conducted the limited review of the company's enclosed statement of assets and liabilities for the period ended 30 September 2024 which was prepared based on the financial reporting framework applicable in Belgium.
Board of directors' responsibility for the preparation of the statement of assets and liabilities
The board of directors is responsible for the preparation of the statement of assets and liabilities for the period ended 30 September 2024 in accordance with the financial reporting framework applicable in Belgium, following the principles stipulated in article 3:1, § 1, first paragraph, of the Code of companies and associations, as well as for compliance with the conditions set by article 7:213, second paragraph, of the Code of companies and associations.
Statutory auditor's responsibility
Our responsibility is to draw a conclusion on the statement of assets and liabilities, based on the limited review conducted by us.
We conducted our limited review in accordance with ISRE 2410, "Review of interim financial information performed by the independent auditor of the entity". This kind of review consists of making inquiries, primarily with persons responsible for financial and administrative matters, and of applying and other review procedures. A limited review is substantially less in scope than an audit performed in accordance with the International Standards on Auditing (ISA) and consequently does not enable us to obtain any assurance that we would become aware of all significant might be identified during the audit.
Accordingly, we do not express an audit opinion on this statement of assets and liabilities.
Conclusion
Based on our limited review, no facts have come to our attention that cause us to believe that the enclosed statement of assets and liabilities of Proximus SA under public law for the period ended 30 September 2024 showing total assets of 9 375 103 (000) EUR and the deferred result of 298 253 (000) EUR, has not been prepared, in all material respects, in accordance with the financial reporting framework applicable in Belgium.
Restrictions on the use of our report
This report has solely been prepared in virtue of article 7:213 of the Code of companies and associations and may not be used for any other purposes.
Signed at Zaventem.
The statutory auditor
-Digitally signed by
Signed By: Koen Neijens (Signature) Koen Neijens Signing Time: 30-okt-2024 | 18:06 CET
DocuSign® Issuer: Citizen CA
2A8E2DCFD59C4E1FB8A5EA30AB0224A5
Deloitte Bedrijfsrevisoren/Réviseurs d'Entreprises BV/SRL
Represented by Koen Neijens
-Digitally signed by
DocuSian®
Signed By: Luc Callaert (Signature) Signing Time: 30-okt-2024 | 13:51 CET
C: BE Issuer: Citizen CA
-BDEBD8125C204907810F620A60ED35B5
Luc Callaert BV/SRL Represented by Luc Callaert
Enclosure: Statement of assets and liabilities for the period ended 30 September 2024 and accounting principles of the company
Deloitte Bedrijfsrevisoren/Réviseurs d'Entreprises BV/SRL Registered Office: Gateway building, Luchthaven Brussel Nationaal 1 J, B-1930 Zaventem VAT BE 0429.053.863 - RPR Brussel/RPM Bruxelles - IBAN BE86 5523 2431 0050 - BlC GKCCBEBB - Zwaluwstraat 117 - 1840 Londerzed (Malderen)
Luc Callaert BV/SRL Bedrijfsrevisoren – Réviseurs d'Entreprises VAT BE 0463 716 022 - RPR Brussel/RPM Bruxelles
Proximus Board October 24, 2024
Statement of assets and liabilities as per September 30, 2024 of Proximus S.A. under public law (in EUR)
ANNUAL ACCOUNTS
| BALANCE SHEET AFTER APPROPRIATION | 01/01/24 - 30/09/24 | 01/01/23 - 31/12/23 | ||
|---|---|---|---|---|
| Notes | Codes | Period | Preceding period | |
| ASSETS | ||||
| FORMATION EXPENSES | 6.1 | 20 | ||
| FIXED ASSETS | 21/28 | 8.420.328.317 | 8.125.203.505 | |
| Intangible fixed assets | 6.2 | 21 | 1.505.433.896 | 1.875.723.754 |
| Tangible fixed assets | 63 | 22/27 | 3.775.522.910 | 3.609.168.720 |
| Land and buildings | 22 | 94.381.348 | 94.637.322 | |
| Plant, machinery and equipment | 23 | 3.568.827.146 | 3.406.606.236 | |
| Furniture and vehicles | 24 | 12.990.654 | 12.682.301 | |
| Leasing and other similar rights | 25 | 69.258.082 | 65.221.857 | |
| Other tangible fixed assets | 26 | 12.008.227 | 14.714.937 | |
| Assets under construction and advance payments | 27 | 18.057.452 | 15.306.067 | |
| Financial fixed assets | 6 4 / 6.5.1 |
28 | 3.139.371.511 | 2.640.311.031 |
| Affiliated Companies | 6.15 | 280/1 | 3.090.294.404 | 2.487.072.971 |
| Participating interests | 280 | 3.090.294.404 | 2.487.072.971 | |
| Amounts receivable | 281 | |||
| Other companies linked by participating interests | 6 15 | 282/3 | 47.420.811 | 151.631.948 |
| Participating interests | 282 | 47.420.811 | 151.631.948 | |
| Amounts receivable | 283 | |||
| Other financial fixed assets | 284/8 | 1.656.297 | 1.606.111 | |
| Shares | 284 | |||
| Amounts receivable and cash guarantees | 285/8 | 1.656.297 | 1.606.111 |
| N°. | 0202.239.951 |
|---|---|
| ----- | -------------- |
F-cap 3.1
| 01/01/24 - 30/09/24 | 01/01/23 - 31/12/23 | |||
|---|---|---|---|---|
| Notes | Codes | Period | Preceding period | |
| CURRENT ASSETS | 29/58 | 954 774 888 | 1.635.958.248 | |
| Amounts receivable after more than one year | 29 | 11.651 | 11.651 | |
| Trade debtors | 290 | |||
| Other amounts receivable | 291 | 11.651 | 11.651 | |
| Stocks and contracts in progress | 3 | 118.561.421 | 142.323.108 | |
| Stocks | 30/36 | 114.534.703 | 126.123.241 | |
| Raw materials and consumables | 30/31 | 41.034.422 | 46.328.293 | |
| Work in progress | 32 | |||
| Finished goods | 33 | |||
| Goods purchased for resale | 34 | 73.500.282 | 79.794.948 | |
| Immovable property intended for sale | 35 | |||
| Advance payments | 36 | |||
| Contracts in progress | 37 | 4.026.718 | 16.199.867 | |
| Amounts receivable within one year | 40/41 | 566.653.617 | 656.410.896 | |
| Trade debtors | 40 | 371.302.561 | 360.412.567 | |
| Other amounts receivable | 41 | 195.351.056 | 295,998,329 | |
| Current investments | 6.5.1 / 6.6 |
50/53 | 113.339.995 | 592.995.072 |
| Own shares | 50 | 106.670.116 | 131.066.195 | |
| Other investments | 51/53 | 6.669.879 | 461.928.877 | |
| Cash at bank and in hand | 54/58 | 85.162.531 | 150.537 170 | |
| Accruals and deferred income | 6.6 | 490/1 | 71.045.672 | 93.680.352 |
| TOTAL ASSETS | 20/58 | 9.375.103.205 | 9.761.161.754 |
| N°. 0202.239.951 |
F-cap 3.2 | |||
|---|---|---|---|---|
| 01/01/24 - 30/09/24 | 01/01/23 - 31/12/23 | |||
| Notes | Codes | Period | Preceding period | |
| EQUITY AND LIABILITIES | ||||
| EQUITY | 10/15 | 1.514.528.483 | 1.303.605.262 | |
| Contributions | 6.7.1 | 10/11 | 1.000.000.000 | 1.000.000.000 |
| Capital | 10 | 1.000.000.000 | 1.000.000.000 | |
| Issued capital | 100 | 1.000.000.000 | 1.000.000.000 | |
| Uncalled capital 6 | 101 | |||
| Beyond capital | 11 | |||
| Share premium account | 1100/10 | |||
| Other | 1109/19 | |||
| Revaluation surpluses | 12 | |||
| Reserves | 13 | 212.256.435 | 237.178.328 | |
| Reserves not available | 130/1 | 207.097.807 | 231.493.886 | |
| Legal reserve | 130 | 100.000.000 | 100.000.000 | |
| Reserves not available statutorily | 1311 | |||
| Purchase of own shares | 1312 | 106.670.116 | 131.066.195 | |
| Financial support | 1313 | |||
| Other | 1319 | 427,691 | 427.691 | |
| Untaxed reserves | 132 | 5.158.628 | 5.684.442 | |
| Available reserves | 133 | |||
| Accumulated profits (losses) | (+)/(-) | 14 | 298.253.313 | 65.110.006 |
| Capital subsidies | 15 | 4.018.736 | 1.316.929 | |
| Advance to shareholders on the distribution of net assets 7 |
19 | |||
| PROVISIONS AND DEFERRED TAXES | 16 | 465,602,755 | 488.570.311 | |
| Provisions for liabilities and charges | 160/5 | 464.077.221 | 487.770.108 | |
| Pensions and similar obligations | 160 | |||
| Taxes | 161 | |||
| Major repairs and maintenance | 162 | |||
| Environmental obligations | 163 | 204.862 | 233.023 | |
| Other liabilities and charges | 6.8 | 164/5 | 463.872.359 | 487.537.085 |
| Deferred taxes | 168 | 1.525.535 | 800.204 |
6 Amount to be deducted from the issued capital.
7 Amount to be deducted from the other components of equity.
| No. 0202.239.951 |
F-cap 3.2 | |||
|---|---|---|---|---|
| 01/01/24 - 30/09/24 | 01/01/23 - 31/12/23 | |||
| Notes | Codes | Period | Preceding period | |
| AMOUNTS PAYABLE | 17/49 | 7.394.971.966 | 7.968.986.180 | |
| Amounts payable after more than one year | 6.9 | 17 | 4.635.451.850 | 3.907.351.596 |
| Financial debts | 170/4 | 4.015.214.773 | 3.318.771.611 | |
| Subordinated loans | 170 | |||
| Unsubordinated debentures | 171 | 3.588.548.698 | 2.889.812.327 | |
| Leasing and other similar obligations | 172 | 19.684.060 | 25.804.559 | |
| Credit institutions | 173 | 400.000.000 | 400.000.000 | |
| Other loans | 174 | 6.982.014 | 3.154.725 | |
| Trade debts | 175 | 560.237.077 | 588.579.985 | |
| Suppliers | 1750 | 560.237.077 | 588.579.985 | |
| Bills of exchange payable | 1751 | |||
| Advance payments on contracts in progress | 176 | |||
| Other amounts payable | 178/9 | 60.000.000 | ||
| Amounts payable within one year | 6.9 | 42/48 | 2.533.434.420 | 3.839.521.941 |
| Current portion of amounts payable after more than one year falling due within one year |
42 | 528.252.411 | 1.161.593.814 | |
| Financial debts | 43 | 855,489,448 | 581.977.844 | |
| Credit institutions | 430/8 | 2.700.000 | ||
| Other loans | 439 | 855,489,448 | 579.277.844 | |
| Trade debts | 44 | 716.551.732 | 896.348.876 | |
| Suppliers | 440/4 | 716.551.732 | 896.348.876 | |
| Bills of exchange payable | 441 | |||
| Advance payments on contracts in progress | 46 | 33.678.303 | ||
| Taxes, remuneration and social security | 6.9 | 45 | 407,881,558 | 359.768.507 |
| Taxes | 450/3 | 202.303.676 | 165.715.462 | |
| Remuneration and social security | 454/9 | 205.577.882 | 194.053.045 | |
| Other amounts payable | 47/48 | 25,259,272 | 806.154.597 | |
| Accruals and deferred income | 6.9 | 492/3 | 226.085.697 | 222.112.642 |
| TOTAL LIABILITIES | 10/49 | 9.375.103.205 | 9.761.161.754 |
6 Amount to be deducted from the issued capital.
7 Amount to be deducted from the other components of equity.
| 202,239,951 | F-cap 6.19 |
|---|---|
VALUATION RULES
The valuation rules comply with the terms of R.D. 29 April 2019 book 3 execution of the company and associations law
Valuation rules remain unchanged from the previous year.
BALANCE SHEET
FORMATION EXPENSES
The debt issuance costs are charged to income statement in the year in which they are incurred. Material formation expenses may be capitalised and depreciated over a 5 year period. The acquisitions of the year are depreciated pro rata temporis. Restructuring costs are expensed as incurred.
INTANGIBLE ASSETS
The intangible assets are measured at cost; this is the purchase price, production cost or the contribution value. General expenses are not included in the cost.
Intangible assets with an indefinite useful life are not amortized. An impairment loss on these assets is recorded in case of a permanent loss or durable decrease of value.
Intangible assets with a finite useful life are amortized on a straight-line basis at a fixed rate using the following plan, established on the basis of economic criteria:
- Goodwill: over the estimated useful life, if the useful life cannot be estimated reliably: 5 to 10 years
- Software: 5 years or the license period in case the latter one is shorter than 5 year
- Network licenses: over the license period
- Rights to use, football and broadcasting rights: over the contract period
- Customer bases and trademarks: 3 to 10 years
The acquisitions of the year are amortized pro rata temporis.
The goodwill resulting from the merger of early 2010 is depreciated over 15 years. This depreciation period is justified by the long-life character of the expected profitability of all the merged companies.
The goodwill resulting from the merger of Wireless Technology in 2016 is depreciated over 10 years. This depreciation period reflects the useful life over which the economic benefits from the assets in the business combination are expected to be consumed by Proximus.
The goodwill resulting from the merger of Scarlet is depreciated over 3 year.
TANGIBLE ASSETS
Tangible assets are valued at cost; this is the purchase price, production cost or the contribution value. General expenses are not included.
Tangible assets with an indefinite useful life are not depreciated. An impairment loss on these assets is recorded in case of a permanent loss or durable decrease of value.
Tangible assets with a finite useful life are depreciated using the straight-line method (except for tangible assets acquired in 2018 and 2019). The tangible assets acquired in 2018 and 2019 are depreciated using the annual declining method meaning the double of the linear rate with a maximum of 40% of the initial purchase value.
| F-cap 6.19 | ||||
|---|---|---|---|---|
| -- | -- | -- | -- | ------------ |
The determination of the depreciable amount takes into account a residual value if this can be determined accurately, is material and its realization is sufficiently certain.
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 |
| Technical and network equipment | |
| - Cables and ducts | 15 - 20 |
| Switches | 8 - 10 |
| - Transmission equipment | 6 – 8 |
| - Radio Access Network | 6 – 1 |
| - 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 | 3 - 10 |
Fixed assets held under leasing or other similar rights are depreciated based on the useful life of the fixed asset as defined in the contract.
Assets under construction and advance payments are depreciated over the life term 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 prorata temporis.
FINANCIAL ASSETS
Participating interests and shares are valued at their acquisition cost, which is the purchase price or the contribution value. Only the material ancillary costs are capitalised.
A write down is recorded if a durable permanent impairment or decrease in value of these assets is observed, based on the financial situation, the profitability or the perspectives of the company in which the participating interests or shares are held, taking into account the CBN/CNC advice n° 126-8.
Receivables are recognized at their nominal value. An allowance 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 at the date of delivery and are translated at the year-end rate.
A bad debt allowance 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 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 realisable 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).
The projects of the ICT activity (contracts in progress) are taken into result based on stage of completion.
AMOUNTS RECEIVABLE WITHIN ONE YEAR
These amounts appear on the balance sheet at nominal value.
A bad debt allowance 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 delivery. At balance date they are translated at closing rate.
CURRENT INVESTMENTS
Current investments are valued at nominal value when 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.
For the determination of the realisable value of own shares the market value is taken into account on the one hand and the strike price of granted share options for which these shares are held on the other hand.
Current 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 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. Provisions reflect the best estimate of probable costs or, when it relates to an obligation, the best estimate of the amount necessary to settle this at year-end closing.
In the framework of the departure plans, provisions are made after approval by the Joint Committee. These provisions are determined as the present value of the benefits granted during the period of inactivity, both for current and future beneficiaries.
In the framework of post-employment benefits, a provision is made for the current and future beneficiaries of these benefits. For the current beneficiaries this provision is determined as the present value of the obligation resulting from the granted beneficiaries, this provision is built up gradually based on the number of years of service. As a consequence, at the provision corresponds also to the present value of the obligation for the granted benefits.
The provision for damages concerning vehicles is built by the company as "own insurer" and is valued through an individualisation of all damages that occurred before 2014 and for which the costs will reasonably be borne by the company in future years.
Deferred taxes are booked in compliance with articles 3:54 of the R.D. of April 29, 2019.
AMOUNTS PAYABLE WITHIN ONE YEAR AND AFTER MORE THAN ONE YEAR
Amounts payables are recognized on the balance sheet at nominal value.
Amounts payable in foreign currencies are converted into EUR as follows:
- I loans in foreign currencies at the rate in force at the time the loan is concluded;
- trade debts at the exchange rate on the date of entry of the reception of the goods and services.
Trade debts and financial debts, not hedged against exchange risks, expressed in foreign currencies are translated at closing rate.
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.
TURNOVER
Revenue is recorded in the period to which they refer, regardless of their payment. The turnover takes commercial and volume discounts into account.
Specific revenue streams and related recognition criteria are as follows:
- revenue from fixed line, mobile and carrier traffic is recognized on usage.
- revenue from connection fees and installation fees is recognized in income at the time of connection or installation.
- revenue from sales of communication equipment is recognized upon delivery to the third-party distributors or upon delivery by the own Proximus shops to the end-customer.
- revenue relating to the monthly subscription fee and access fees in the framework of fixed and mobile telephony, internet and digital television are recognized in which the services are provided.
- prepaid revenue such as revenue from pre-paid fixed and mobile phone cards is deferred and recognized based on usage of the cards.
- maintenance fees are recognized as revenue over the maintenance period on a pro-rata basis.
- revenue from the ICT activity linked to projects is recognized in the result in function of the realization percentage (stage of completion).
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.
DocuSign
| Certificate Of Completion | ||
|---|---|---|
| Envelope Id: B967C2BC3111454FBDBF27CA617FFA1E | Status: Completed | |
| Subject: AR-Proximus-LM-Interimdividend-30Sep2024-EN | ||
| Source Envelope: | ||
| Document Pages: 12 | Signatures: 2 | Envelope Originator: |
| Certificate Pages: 2 | nitials: 0 | Noémie Monyango |
| AutoNav: Enabled | Luchthaven Brussel Nationaal 1 J | |
| Envelopeld Stamping: Disabled | Zaventem, Vlaams-Brabant 1930 | |
| Time Zone: (UTC+01:00) Brussels, Copenhagen, Madrid, Paris | ||
| IP Address: 163.116.240.115 | ||
| Record Tracking | ||
| Status: Original | Holder: Noémie Monyango | Location: DocuSign |
| 30-Oct-2024 10:32 | ||
| Signer Events | Signature | Timestamp |
| Koen Neijens | Signed by: | Sent: 30-Oct-2024 10:34 |
| Koen Neijens | Viewed: 30-Oct-2024 18:04 | |
| Security Level: Email, Account Authentication (None), Digital Certificate |
2A8E2DCFD59C4E1 | Signed: 30-Oct-2024 18:06 |
| Signature Provider Details: | Signature Adoption: Pre-selected Style | |
| Signature Type: Signer Held EU Qualified Signature Issuer: Citizen CA |
Using IP Address: 163.116.243.41 | |
| Electronic Record and Signature Disclosure: Not Offered via DocuSign |
||
| Luc Callaert | -DocuSigned by: | Sent: 30-Oct-2024 10:34 |
| Luc Callaert | Viewed: 30-Oct-2024 13:51 | |
| Security Level: Email, Account Authentication (None), Digital Certificate |
-BDEBD8125C20490 | Signed: 30-Oct-2024 13:52 |
| Signature Provider Details: | Signature Adoption: Pre-selected Style | |
| Signature Type: Signer Held EU Qualified | Using IP Address: 212.35.99.236 | |
| Signature Issuer: Citizen CA | ||
| Electronic Record and Signature Disclosure: Not Offered via DocuSign |
||
| In Person Signer Events | Signature | Timestamp |
| Editor Delivery Events | Status | Timestamp |
| Agent Delivery Events | Status | Timestamp |
| Intermediary Delivery Events | Status | Timestamp |
| Certified Delivery Events | Status | Timestamp |
| Carbon Copy Events | Status | Timestamp |
| Noémie Monyango | COPIED | Sent: 30-Oct-2024 18:06 |
Sr. Management Assistant Deloitte Bedrijfsrevisoren BV Security Level: Email, Account Authentication (None)
Electronic Record and Signature Disclosure: Not Offered via DocuSign
| Carbon Copy Events | Status | Timestamp |
|---|---|---|
| Yannick Dufromont | COPIED | Sent: 30-Oct-2024 18:06 |
| Security Level: Email, Account Authentication (None) |
||
| Electronic Record and Signature Disclosure: Not Offered via DocuSign |
||
| Witness Events | Signature | Timestamp |
| Notary Events | Signature | Timestamp |
| Envelope Summary Events | Status | Timestamps |
| Envelope Sent | Hashed/Encrypted | 30-Oct-2024 10:34 |
| Certified Delivered | Security Checked | 30-Oct-2024 13:51 |
| Signing Complete | Security Checked | 30-Oct-2024 13:52 |
| Completed | Security Checked | 30-Oct-2024 18:06 |
| Payment Events | Status | Timestamps |