2019 Annual Financial Report

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2019 Annual Financial Report 2019 ANNUAL FINANCIAL REPORT ANNUAL CONSOLIDATED FINANCIAL STATEMENTS SPIE GROUP CONSOLIDATED FINANCIAL STATEMENTS AS AT DECEMBER 31, 2019 SPIE UK Ingineer in London (Smart City team) SPIE CONSOLIDATED FINANCIAL STATEMENTS– FY 2019 – 1 ANNUAL CONSOLIDATED FINANCIAL STATEMENTS CONTENTS 1. CONSOLIDATED INCOME STATEMENT ................................................................................................................................... 5 2. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ............................................................................................. 6 3. CONSOLIDATED STATEMENT OF FINANCIAL POSITION ...................................................................................................... 7 4. CONSOLIDATED CASH FLOW STATEMENT............................................................................................................................ 8 5. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ...................................................................................................... 9 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ...................................................................................................... 10 NOTE 1. GENERAL INFORMATION ........................................................................................................................ 10 Accounting policies and measurement methods .......................................................................................................................... 10 NOTE 2. BASIS OF PREPARATION .......................................................................................................... 10 2.1. STATEMENT OF COMPLIANCE ..................................................................................................................................................... 10 2.2. ACCOUNTING POLICIES ................................................................................................................................................................ 10 2.3. CRITICAL JUDGMENT AND ESTIMATES ...................................................................................................................................... 12 NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ................................................................ 12 3.1. CONSOLIDATION ........................................................................................................................................................................... 12 3.2. SEGMENT REPORTING .................................................................................................................................................................. 13 3.3. BUSINESS COMBINATIONS AND GOODWILL .............................................................................................................................. 14 3.4. RECOGNITION OF REVENUE FROM CONTRACTS WITH CUSTOMERS ..................................................................................... 15 3.5. OTHER OPERATING INCOME AND EXPENSES ........................................................................................................................... 15 3.6. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS ................................................................................................. 16 3.7. LEASE CONTRACTS ...................................................................................................................................................................... 16 3.8. INTANGIBLE ASSETS .................................................................................................................................................................... 17 3.9. PROPERTY, PLANT AND EQUIPMENT.......................................................................................................................................... 17 3.10. IMPAIRMENT OF GOODWILL, PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS ......................................... 18 3.11. FINANCIAL ASSETS ....................................................................................................................................................................... 18 3.12. FINANCIAL LIABILITIES ................................................................................................................................................................. 20 3.13. DERIVATIVE FINANCIAL INSTRUMENTS ...................................................................................................................................... 21 3.14. INVENTORIES ................................................................................................................................................................................. 21 3.15. CASH AND CASH EQUIVALENTS.................................................................................................................................................. 21 3.16. INCOME TAXES .............................................................................................................................................................................. 21 3.17. PROVISIONS ................................................................................................................................................................................... 22 3.18. EMPLOYEE BENEFITS ................................................................................................................................................................... 23 NOTE 4. ADJUSTEMENTS ON PREVIOUS PERIODS ................................................................................. 25 Significant events of the period ........................................................................................................................................ 26 NOTE 5. SIGNIFICANT EVENTS ............................................................................................................... 26 5.1. ISSUANCE OF BOND FOR AN AMOUNT OF € 600 MILLION AND FINANCIAL DEBT REFINANCING AS AT JUNE 18, 2019 ... 26 5.2. EMPLOYEE SHAREHOLDERS PLAN “SHARE FOR YOU 2019” – INCREASE ON SHARE CAPITAL ON DECEMBER 12, 2019 ......................................................................................................................................................................................................... 26 5.3. SALE OF OFFSHORE ACTIVITIES IN GERMANY.......................................................................................................................... 26 NOTE 6. ACQUISITIONS AND DISPOSALS ............................................................................................... 27 6.1 CHANGES IN SCOPE .......................................................................................................................................................................... 27 6.2 IMPACT OF NEWLY CONSOLIDATED COMPANIES.......................................................................................................................... 29 Segment information ........................................................................................................................................................ 31 NOTE 7. SEGMENT INFORMATION .......................................................................................................... 31 7.1. INFORMATION BY OPERATING SEGMENT .................................................................................................................................. 31 7.2. PRO-FORMA INDICATORS ............................................................................................................................................................ 32 7.3. NON-CURRENT ASSETS BY OPERATING SEGMENT .................................................................................................................. 32 7.4. PERFORMANCE BY GEOGRAPHIC AREA .................................................................................................................................... 33 7.5. INFORMATION ABOUT MAJOR CUSTOMERS .............................................................................................................................. 33 Notes to the consolidated income statement .................................................................................................................... 34 NOTE 8. OPERATING EXPENSES AND OTHER INCOME ........................................................................... 34 8.1. OPERATING EXPENSES ................................................................................................................................................................ 34 8.2. EMPLOYEE COST ........................................................................................................................................................................... 34 8.3. OTHER OPERATING INCOME (LOSS) ........................................................................................................................................... 36 NOTE 9. NET FINANCIAL COST AND FINANCIAL INCOME AND EXPENSES ............................................. 36 NOTE 10. INCOME TAX .............................................................................................................................................. 37 2 – SPIE CONSOLIDATED FINANCIAL STATEMENTS – FY 2019 ANNUAL CONSOLIDATED FINANCIAL STATEMENTS 10.1. TAX RATE ......................................................................................................................................................................................
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