Annual Report 2019
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2019 SOL GROUP ANNUAL REPORT STRUCTURE OF THE SOL GROUP AS AT DECEMBER 31, 2019 SOL S.P.A. (1) 100% TGS AD 99,81% AIRSOL SRL 100% SOL FRANCE SAS CTS SRL 100% 100% SOL GAS PRIMARI SRL Skopje (MK) Monza (I) Cergy Pontoise (F) (4) Monza (I) Monza (I) 2,84% SOL SEE DOO 97,16% SOL DEUTSCHLAND GMBH 100% 49% VIVISOL SRL SOL GROUP LAB SRL CONSORZIO ECODUE 50% Skopje (MK) Krefeld (D) 51% 100% Monza (I) Costabissara (I) Monza (I) 0,28% SOL- K SHPK 99,72% VIVISOL FRANCE SARL 100% 0,01% VIVISOL ADRIA DOO 100% 0,01% Vaux le Penil (F) FLOSIT SA 82,00% DIATHEVA Srl Pristina (KS) Jesenice (SLO) 99,96% 0,01% Casablanca (MA) Cartoceto (I) 23,57% SOL SRBIJA DOO 67,16% MBAR ASSISTANCE 100% IL POINT SRL 9,27% RESPIRATOIRE SAS 81% Nova Pazova (SRB) 10% 90% Ballan Mire (F) Verona (I) FLOSIT PHARMA SAS 89,63% TESI Srl Casablanca (MA) * Milano (I) SOL KOHLENSÄURE 100% GMBH & CO. KG FRANCE OXIGÈNE SARL 100% VIVISOL NAPOLI SRL 81% Burgbrohl (D) Templemars (F) Marcianise (I) GTH GAZE 99,99% 51% MEDES SRL INDUSTRIALE SA Settimo Milanese (I) Bucarest (RO) SOL KOHLENSÄURE DOLBY HEALTHCARE 70% VIVISOL SILARUS SRL 100% 100% VERWALTUNGS GMBH LIMITED Battipaglia (I) Stirling (UK) CRYOLAB SRL Burgbrohl (D) VIVISOL NEDERLAND BV 100% 85% Roma (I) ICOA SRL 97,60% Tilburg (NL) SOL KOHLENSÄURE WERK 100% DOLBY MEDICAL HOME Vibo Valentia (I) 100% RESPIRATORY CARE LIMITED 25,79% CONSORGAS SRL GMBH & CO. KG 100% Burgbrohl (D) Stirling (UK) SOL NEDERLAND BV Milano (I) 70% VIVISOL CALABRIA SRL 30% Tilburg (NL) Vibo Valentia (I) VIVISOL IBERICA S.L.U. CT BIOCARBONIC GMBH 50% 100% 100% ENERGETIKA ZJ DOO Arganda del Rey (E) (3) Zeitz (D) SOL HYDROPOWER DOO 100% Jesenice (SLO) 100% SPITEX PERSPECTA AG Basel (CH) Skopje (MK) SICGILSOL INDIA VIVISOL DEUTSCHLAND 56,80% 100% SPG - SOL PLIN 45,15% PRIVATE LIMITED GMBH 80% 54,85% GORENJSKA DOO Chennai (IND) Neufahrn bei Freising (D) DIRECT MEDICAL MEL AD 100% LIMITED COMPANY Trn (BiH) Jesenice (SLO) 70% VIVICARE GMBH Athlone (IRL) SICGILSOL GASES 100% Neufahrn bei Freising (D) 35,89% PRIVATE LIMITED 96,04% HYDROENERGY SHPK 64,11 TPJ DOO Pudukudi (IND) * IRISH OXYGEN Tirana (AL) Jesenice (SLO) INTENSIVPFLEGEDIENST 50,01% COMPANY LIMITED 70% KOMPASS GMBH Cork (IRL) SOL TG GMBH 100% Munich (D) 100% GTS SHPK ZDS JESENICE DOO 75% Wiener Neustadt (A) Tirana (AL) Jesenice (SLO) * 100% VIVISOL H. GMBH PIELMEIER 100% 100% SOL HUNGARY KFT MEDIZINTECHNIK GMBH Vienna (A) Budapest (H) 100% GTE SL 100% SOL CROATIA DOO Taufkirchen (D) Barcellona (E) * Sisak (HR) 70% CRYOS SRL TGT AD 75,18% Peveragno (I) INTENSIVSERVICE 100% T rn(BiH) WANNINGER GMBH 100% SOL BULGARIA EAD UTP DOO 100% Regensburg (D) 100% BT GASES LTD Sofia (BG) Pula (HR) 34,64% TGP AD 61,38% Sittingbourne (UK) * Petrovo (BiH) MEDTEK 100% MEDIZINTECHNIK GMBH 80% REVI SRL PERSONAL GENOMICS SRL 84,71% Grunstadt (D) Verona (I) Surbo (I) SOL HELLAS SA 70% 99,72% 80% STERIMED SRL PALLMED SP.Z O.O. Magoula (GR) Bydgoszcz (PL) Milano (I) VIVISOL HELLAS SA 100% 0,08% MEDSEVEN SP.Z O.O. 70,05% Athens (GR) 99,92% VIVISOL B SPRL Osielsko (PL) Lessines (B) 100% BTG BVBA 2% P PAR PARTECIPACOES LTDA 85% Lessines (B) (2) 49% BEHRINGER SRL San Paolo (BR) Genova (I) SOL TK AS 100% UNIT CARE SERVICOS Istanbul (TR) BEHRINGER FRANCE SARL 70% MEDICOS LTDA 25,50% 100% Saint Andre Lez Lille (F) San Paolo (BR) RESPITEK AS 70% Istanbul (TR) 49% 51% GLOBAL CARE ASSISTENCIA BIOTECHSOL SRL 99,50% Monza (I) DOMICILIAR LTDA GEBZE GAZ AS 80% San Paolo (BR) Gebze (TR) 100% VIVISOL PORTUGAL (1) SOL established the following foreign branches: Vaux le Penil (F), Lugano (CH), Feluy-Seneffe (B), Frankfurt (D). UNIPESSOAL LDA (2) 50% DN GLOBAL HOMECARE LTDA 100% SITEX SA BTG established a foreign branch in Avion (France) and one in Sittingbourne (UK). Condeixa – a - Nova (P) (3) VIVISOL IBERICA established a foreign branch in Andorra. Salvador (BR) Plan-les-Ouates (CH) (4) SOL FRANCE established a foreign branch in Arganda del Rey (Spain). * Company outside the scope of consolidation 40% VIVISOL BRASIL LTDA 60% 100% SITEX MAD SA 99% SOL SLOVAKIA SRO 1% San Paolo (BR) Plan-les-Ouates (CH) Bratislava (SK) INDEX 2 MANAGEMENT REPORT 2019 SOL GROUP 14 CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2019 15 Consolidated income statement 16 Consolidated statement of financial position 17 Consolidated cash flow statement 18 Statement of changes in consolidated shareholders’ equity 19 Explanatory notes 76 REPORT OF THE INDEPENDENT AUDITORS SOL GROUP SOL Spa Registered office Via Borgazzi, 27 20900 Monza - Italy Share Capital Euro 47.164.000,00 i.v. C.F. and company register of Milano, Monza Brianza, Lodi n° 04127270157 R.E.A. n° 991655 C.C.I.A.A. Milano, Monza Brianza, Lodi BOARD OF DIRECTORS Chairman and Managing Director Aldo Fumagalli Romario Deputy Chairman and Managing Director Marco Annoni Director with special powers Giovanni Annoni Director with special powers Giulio Fumagalli Romario Directors Maria Cristina Annoni Maria Antonella Boccardo (Independent) Susanna Dorigoni (Independent) Anna Gervasoni (Independent) Prisca Fumagalli Romario Antonella Mansi (Independent) Erwin Paul Walter Rauhe (Independent) GENERAL MANAGERS Giulio Mario Bottes Andrea Monti BOARD OF STATUTORY AUDITORS Chairman Alessandro Danovi Regular auditors Livia Martinelli Giuseppe Marino Alternate Auditors Maria Gabriella Drovandi Vincenzo Maria Marzuillo AUDITING COMPANY DELOITTE & TOUCHE Spa Via Tortona n. 25 20144 Milan POWERS GRANTED TO THE DIRECTORS (CONSOB Communication No. 97001574 dated 20 February 1997) To the Chairman and Deputy Chairman: the legal representation of the Company in dealings with third parties and before the legal authorities; powers of ordinary management acting severally; powers of extraordinary management, acting jointly, it being understood that for the execution of the related acts the signature of one of the two with the written authorisation of the other is sufficient; exception is made for certain specific acts of particular importance reserved for the competence of the Board. To Directors with special appointments: powers of ordinary administration relevant to Legal and Corporate Business (Giulio Fumagalli Romario) and the Organisation of Information Systems (Giovanni Annoni) with single signature. MANAGEMENT REPORT SOL GROUP MANAGEMENT REPORT - SOL GROUP 3 INTRODUCTION This Annual Financial Report as at December 31, 2019 is drawn up pursuant to Article 154 ter of Italian Legis- lative Decree 58/1998 and prepared in accordance with the International Accounting Standards (IFRS) issued by the International Accounting Standard Board (IASB) recognised by the European Community pursuant to Regulation (EC) no. 1606/2002 of the European Parliament and of the Council of July 19, 2002, as well as with the implementation regulations set out in Article 9 of Italian Legislative Decree no. 38/2005. These IFRS principles also include all revised international accounting standards (“IAS”) and all of the interpretations of the International Financial Reporting Interpretation Committee (“IFRIC”), previously called Standing Interpretations Committee (“SIC”). GENERAL CONTEXT The SOL Group is primarily engaged in production, applied research and distribution activities pertaining to in- dustrial, pure and medicinal gases, in door-to-door medical care, as well as in the sector for related medical equip- ment in Italy, presently active in 24 other European countries, in Turkey, in Morocco, in India and in Brazil. The products and services of companies belonging to the Group are used in the chemical, electronics, iron and steel, engineering and foodstuff industries, as well as in sectors such as environmental protection, research and health. 2019 was characterised by an economic scenario of low growth with a further slowdown in the second half of the year. The trade tariff war between the United States and other economies, especially China, with the increase in cus- toms duties to protect domestic production, characterised the entire year and it was only at the beginning of 2020 that an agreement was signed between the United States and China. However, there remains uncertainty about its future impact, especially on the European economy. The price of oil has been quite stable, albeit with periods of increase due to the various situations of conflict in different Arab countries. Interest rates on loans in Euro remained at the low levels of the last few years, albeit the spreads applied by the banking system had a variable trend. Italy registered a GDP growth rate close to zero. For the year 2020, macroeconomic forecasts show a very slight recovery, although political uncertainties and ongoing conflicts in various continental areas make the forecasts not too stable. To this must be added the negative effects resulting from the spread of the Coronavirus (COVID-19); it is cur- rently difficult to assess its impact on the world economy as this will depend mainly on the extent and duration of the contagion. The risk is that the recovery of global trade and industry could be delayed for months. A final factor of uncertainty, especially for Europe, is the consequences of Brexit, which, after years of postpone- ment, will have to be put into practice. With regard to the technical, special and medical gases sector, there was a slight increase in volumes and prices in 2019, partly as a result of higher transport and electricity costs. The increase in the consumption of technical gases was reported especially in the sectors that use liquid nitro- gen, such as food, mechanics and pharmaceuticals. The sectors that use liquid nitrogen reported a consumption trend in line with that of 2018. There was a sharp drop in sales of refrigerant gases. The situation of low availability of helium from sources worldwide continued in 2019, which caused SOL to increase its purchase cost considerably.