Annual Report 2018
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Translation from the Italian which remains the definitive version Company officers ANNUAL REPORT 2018 ANNUAL REPORT AND CONSOLIDATED NON-FINANCIAL STATEMENT 31 DECEMBER 2018 Registered and administrative office: Via Rana, 12 - D/6 industrial estate - 15122 Spinetta Marengo - Alessandria 1 Share capital subscribed Euro 68,906,646 fully paid-up Tax code and Company Registration no. 10038620968 Company officers COMPANY OFFICERS BOARD OF DIRECTORS Chairman and Chief Executive Officer Marco Giovannini Director Anibal Diaz Director Francesco Bove Director Filippo Giovannini Director Edoardo Carlo Maria Subert Director Nicola Colavito Independent Director Luisa Maria Virginia Collina Independent Director Lucrezia Reichlin Independent Director Francesco Caio RISK AND CONTROL COMMITTEE Chairman Francesco Caio Independent Director Lucrezia Reichlin Nicola Colavito REMUNERATION COMMITTEE Chairman Luisa Maria Virginia Collina Independent Director Francesco Caio Edoardo Carlo Maria Subert BOARD OF STATUTORY AUDITORS Chairman Benedetta Navarra Standing auditors Piergiorgio Valente Franco Aldo Abbate Alternate auditors Ugo Marco Luca Maria Pollice Daniela Delfrate INDEPENDENT AUDITORS KPMG S.p.A. 2 Contents CONTENTS PAGE DIRECTORS’ REPORT 7 ✓ Introduction ✓ Definitions ✓ Guala Closures Group: o Group structure o key figures ✓ Events of the year and strategies ✓ Research and development ✓ Legal disputes ✓ Policies for financial and other business risk management ✓ Management regulations and procedures ✓ Related party transactions ✓ Other information ✓ Pro-forma statement of financial position, results of operations and cash flows of Guala Closures Group ✓ Pro-forma statement of financial position, results of operations and cash flows of Guala Closures S.p.A. ✓ Outlook ✓ ANNEXES TO THE DIRECTORS’ REPORT: · Annex A) Reconciliation between tables included in the Directors’ report with the classification used in the consolidated financial statements · Annex B) Reconciliation between tables included in the Directors’ report with the classification used in the separate financial statements CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2018 87 ✓ Consolidated statement of financial position of Guala Closures Group as at 31 December 2017 and as at 31 December 2018 ✓ Consolidated statement of profit or loss and other comprehensive income of Guala Closures Group for the years ended 31 December 2017 and 31 December 2018 ✓ Consolidated statement of cash flows of Guala Closures Group for the years ended 31 December 2017 and 31 December 2018 ✓ Consolidated statement of changes in equity of Guala Closures Group for the years ended 31 December 2017 and 31 December 2018 ✓ Notes to the consolidated financial statements at 31 December 2018 GENERAL INFORMATION · (1) The Group’s activities and key changes in its structure during the year · (2) Accounting policies · (3) Operating segments · (4) Acquisition of subsidiaries, business units and non-controlling interests 3 Contents STATEMENT OF FINANCIAL POSITION · (5) Cash and cash equivalents · (6) Trade receivables · (7) Inventories · (8) Financial derivative assets · (9) Property, plant and equipment · (10) Intangible assets · (11) Deferred tax assets and liabilities · (12) Current and non-current financial liabilities · (13) Trade payables · (14) Provisions · (15) Financial derivative liabilities · (16) Other current liabilities · (17) Employee benefits · (18) Equity attributable to the owners of the parent · (19) Equity attributable to non-controlling interests STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME · (20) Net revenue · (21) Other operating income · (22) Internal work capitalized · (23) Costs for raw materials · (24) Costs for services · (25) Personnel expense · (26) Other operating expense · (27) Financial income · (28) Financial expense · (29) Income and expenses on financial assets/liabilities · (30) Income taxes · (31) Explanatory notes to the consolidated statement of cash flows · (32) Earnings per share – basic and diluted · (33) Net financial indebtedness OTHER INFORMATION · (34) Fair value of financial instruments and sensitivity analysis · (35) Related party transactions · (36) Contingent liabilities · (37) Operating leases and rents · (38) Commitments and guarantees · (39) Fees to statutory and independent auditors · (40) Transactions deriving from atypical and/or unusual operations · (41) Brexit · (42) Significant subsequent events occurred after the year end date ✓ ANNEXES TO THE CONSOLIDATED FINANCIAL STATEMENTS: · Annex Certification of the consolidated financial statements pursuant to Article 81-ter of Consob Regulation no. 11971 of 14 May 1999, as subsequently amended and supplemented 4 Contents SEPARATE FINANCIAL STATEMENTS OF GUALA CLOSURES S.p.A. AT 31 DECEMBER 2018 201 ✓ Statement of financial position of Guala Closures S.p.A. as at 31 December 2017 and 31 December 2018 ✓ Statement of profit or loss and other comprehensive income/(expense) of Guala Closures S.p.A. for the years ended 31 December 2017 and 31 December 2018 ✓ Statement of cash flows of Guala Closures S.p.A. for the years ended 31 December 2017 and 31 December 2018 ✓ Statement of changes in equity of Guala Closures S.p.A. for the years ended 31 December 2017 and 31 December 2018 ✓ Notes to the separate financial statements of Guala Closures S.p.A. as at and for the year ended 31 December 2018: GENERAL INFORMATION · (1) Company’s business overview and key changes in its shareholding structure occurred during the year · (2) Accounting policies · (3) Business combinations STATEMENT OF FINANCIAL POSITION · (4) Cash and cash equivalents · (5) Current and non-current financial assets · (6) Trade receivables · (7) Inventories · (8) Current direct tax assets · (9) Current indirect tax assets · (10) Financial derivative assets · (11) Other current assets · (12) Investments · (13) Property, plant and equipment · (14) Intangible assets · (15) Deferred tax assets and liabilities · (16) Other non-current assets · (17) Current and non-current financial liabilities · (18) Trade payables · (19) Current direct tax liabilities · (20) Current indirect tax liabilities · (21) Provisions · (22) Financial derivative liabilities · (23) Other current liabilities · (24) Employee benefits · (25) Equity STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME · (26) Net revenue · (27) Other operating income · (28) Internal work capitalized · (29) Costs for raw materials · (30) Costs for services 5 Contents · (31) Personnel expense · (32) Other operating expense · (33) Financial income · (34) Financial expense · (35) Dividends · (36) Income and expenses on financial assets/liabilities · (37) Income tax . (38) Explanatory notes to the separate statement of cash flow · (39) Net financial indebtedness OTHER INFORMATION · (40) Fair value of financial instruments and sensitivity analysis · (41) Related party transactions · (42) Contingent liabilities · (43) Operating leases and rents · (44) Commitments and guarantees · (45) Fees of the Statutory Auditors · (46) Significant subsequent events occurred after the year end date · (47) Proposals of the Board of Directors to the Shareholders’ Meeting ✓ ANNEXES TO THE SEPARATE FINANCIAL STATEMENTS: · Annex A) List of investments in indirectly controlled subsidiaries at 31 December 2018 · Annex B) Certification of the separate financial statements pursuant to Article 81-ter of Consob Regulation no. 11971 of 14 May 1999, as subsequently amended and supplemented CONSOLIDATED NON-FINANCIAL STATEMENT AS PER LEGISLATIVE DECREE 254/2016 · (1) Organization profile · (2) Guala Closures Group and its corporate social responsability · (3) Protection of the planet · (4) Enhancing human resources · (5) Customer satisfaction, consumers and investors · (6) Information note 6 Directors’ report DIRECTORS’ REPORT 7 Directors’ report Introduction Guala Closures Group is a multinational Group leader in the production of aluminium and non- refillable closures, which operates in 5 different continents, with 29 production plants and a commercial structure that operates out of more than 100 countries. Starting 6 August 2018, Guala Closures Group, through its parent company Guala Closures S.p.A. has been listed on the STAR segment of the Milan stock exchange following a business combination with Space 4 S.p.A. (Special Purpose Acquisition Company listed on the MIV - Investment Vehicles Market - of Borsa Italiana). The ownership structure of the parent company of Guala Closures Group as at the date of this document is characterised by a significant portion of shares being held by the market. These financial statements are characterised by the above business combination and, therefore, to assist the reader of the financial statements, the Directors’ report contains “pro forma” data with a view to making the performance of operations comparable between FY 2017 and FY 2018 (for more details, see the paragraph entitled “Statement of financial position, results of operations and cash flows of Guala Closures Group pro forma”). Definitions Lux BU: Company Branch transferred from GCL Holdings S.C.A. to GCL International S.à r.l. on 31 July 2018 which includes certain goods, assets, liabilities and legal relationships of GCL Holdings S.C.A. related, inter alia, to research and development activities, as well as a portion of the trade receivables and payables of GCL Holdings S.C.A. due from/to Guala Closures Pre- merger, except for the balances arising from intercompany loans granted to the latter. Company: Space4 S.p.A., renamed