Notes to the consolidated financial statements

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1 General information

1 General information

Sulzer Ltd (the “companyˮ) is a company domiciled in Switzerland. The address of the company’s registered office is Neuwiesenstrasse 15 in Winterthur, Switzerland. The consolidated financial statements for the year ended December 31, 2020, comprise the company and its subsidiaries (together referred to as the “groupˮ and individually as the “subsidiariesˮ) and the group’s interest in associates and joint ventures. The group specializes in pumping, agitation, mixing, separation and application technologies for fluids of all types. Sulzer was founded in 1834 in Winterthur, Switzerland, and employs around 15’000 people. The company serves clients in over 180 production and service sites around the world. Sulzer Ltd is listed on the SIX Swiss Exchange in Zurich, Switzerland (symbol: SUN).

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). They were authorized for issue by the Board of Directors on February 23, 2021.

Details of the group’s accounting policies are included in note 34.

2 Significant events and transactions during the reporting period

2 Significant events and transactions during the reporting period

The financial position and performance of the group was particularly affected by the following events and transactions during the reporting period:

  • COVID-19 dominated the world stage in 2020. The lockdowns led to a standstill of public life in many countries, limited access to customer sites, travel restrictions and challenges in supply chain and sales channels. As a consequence, the group has updated the budget and the three-year strategic plan, relevant for the goodwill impairment test (see note 5 and note 14). As another consequence, the group has reassessed the expected credit losses, relevant for the calculation of the allowance for doubtful trade accounts receivable, by applying updated forward-looking information such as development of gross domestic product (GDP) and oil price development (see note 21).
  • On October 1, 2020, Sulzer acquired a 100% controlling interest of Haselmeier AG (“Haselmeierˮ) for CHF 119.2 million. The headquarters of Haselmeier is located in Stuttgart, Germany. Haselmeier employs approximately 230 people and is an own-IP provider of drug delivery devices such as subcutaneous self-injection pens for use in fast-growing indications such as reproductive health, growth disorders, osteoporosis and diabetes. With the acquisition of Haselmeier, the group will complement its healthcare portfolio and leverage its expertise in precision injection molding. The acquisition resulted in an increase in goodwill of CHF 60.4 million and other intangible assets of CHF 39.8 million at the date of acquisition (see note 4).
  • The group launched decisive measures to mitigate the impact of market disruptions on Energy-related business activities early in 2020. The group recognized restructuring costs of CHF 58.0 million (2019: CHF 23.4 million), partly offset by released restructuring provisions of CHF 2.2 million (2019: CHF 0.2 million) (see note 27). Associated with restructuring initiatives, the group further recognized impairments on tangible and intangible assets of CHF 9.8 million (2019: CHF 4.4 million) (see note 14, note 15 and note 16). These mainly relate to the closure or resizing of sites in Europe and the Americas, as well as the resizing of supporting resources.

For a detailed discussion about the group’s performance and financial position please refer to the
Financial review”.

3 Segment information

3 Segment information

Segment information by divisions

 

 

Pumps Equipment

 

Rotating Equipment Services

 

Chemtech

 

Applicator Systems

millions of CHF

 

2020

 

2019

 

2020

 

2019

 

2020

 

2019

 

2020

 

2019

Order intake (unaudited) 1)

 

1’297.6

 

1’458.9

 

1’130.8

 

1’193.2

 

620.8

 

670.0

 

364.8

 

425.1

Nominal growth (unaudited)

 

–11.1%

 

6.3%

 

–5.2%

 

7.5%

 

–7.3%

 

11.6%

 

–14.2%

 

–5.4%

Currency-adjusted growth (unaudited)

 

–4.1%

 

8.3%

 

2.5%

 

10.7%

 

–1.1%

 

12.8%

 

–11.0%

 

–4.3%

Organic growth 2) (unaudited)

 

–2.9%

 

8.0%

 

0.6%

 

8.6%

 

–6.9%

 

6.5%

 

–14.2%

 

–5.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Order backlog as of December 31 (unaudited)

 

845.0

 

924.3

 

435.0

 

422.2

 

396.9

 

385.3

 

82.0

 

60.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales recognized at a point in time

 

839.5

 

1’002.6

 

887.3

 

985.5

 

372.6

 

415.1

 

349.8

 

419.1

Sales recognized over time

 

456.9

 

474.3

 

191.1

 

181.6

 

220.5

 

248.8

 

1.4

 

1.5

Sales 3)

 

1’296.3

 

1’477.0

 

1’078.3

 

1’167.0

 

593.1

 

664.0

 

351.2

 

420.6

Nominal growth

 

–12.2%

 

15.0%

 

–7.6%

 

9.7%

 

–10.7%

 

17.9%

 

–16.5%

 

–7.3%

Currency-adjusted growth (unaudited)

 

–5.7%

 

17.2%

 

0.1%

 

12.8%

 

–4.8%

 

19.0%

 

–13.4%

 

–6.4%

Organic growth 2) (unaudited)

 

–4.5%

 

17.0%

 

–1.1%

 

10.0%

 

–9.7%

 

12.7%

 

–15.2%

 

–7.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational profit (unaudited)

 

55.2

 

59.7

 

150.3

 

164.5

 

56.9

 

63.8

 

44.7

 

88.2

Operational profitability (unaudited)

 

4.3%

 

4.0%

 

13.9%

 

14.1%

 

9.6%

 

9.6%

 

12.7%

 

21.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring expenses

 

–34.1

 

–5.2

 

–11.3

 

–2.6

 

–5.7

 

–0.8

 

–3.2

 

–13.7

Amortization

 

–29.6

 

–30.0

 

–9.2

 

–8.1

 

–6.8

 

–6.2

 

–19.2

 

–19.0

Impairments on tangible and intangible assets

 

–2.1

 

 

–1.5

 

 

–5.3

 

–1.0

 

–0.5

 

–1.3

Non-operational items (unaudited)

 

–5.6

 

–12.6

 

–1.9

 

–1.6

 

–3.2

 

–1.9

 

–1.6

 

–14.1

EBIT

 

–16.1

 

11.9

 

126.3

 

152.2

 

35.9

 

54.0

 

20.2

 

40.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

–34.6

 

–34.8

 

–28.5

 

–28.2

 

–12.2

 

–13.8

 

–23.4

 

–22.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating assets

 

1’456.4

 

1’605.5

 

893.6

 

960.8

 

507.0

 

590.9

 

745.0

 

608.3

Unallocated assets

 

 

 

 

 

 

 

 

Total assets as of December 31

 

1’456.4

 

1’605.5

 

893.6

 

960.8

 

507.0

 

590.9

 

745.0

 

608.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating liabilities

 

725.1

 

730.6

 

354.9

 

363.2

 

323.6

 

364.5

 

126.6

 

108.6

Unallocated liabilities

 

 

 

 

 

 

 

 

Total liabilities as of December 31

 

725.1

 

730.6

 

354.9

 

363.2

 

323.6

 

364.5

 

126.6

 

108.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating net assets

 

731.3

 

874.9

 

538.7

 

597.6

 

183.5

 

226.4

 

618.4

 

499.7

Unallocated net assets

 

 

 

 

 

 

 

 

Total net assets as of December 31

 

731.3

 

874.9

 

538.7

 

597.6

 

183.5

 

226.4

 

618.4

 

499.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure (incl. lease assets)

 

–34.7

 

–41.0

 

–40.9

 

–36.6

 

–11.1

 

–22.1

 

–70.0

 

–41.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employees (number of full-time equivalents) as of December 31

 

5’362

 

5’759

 

4’449

 

4’900

 

3’221

 

3’803

 

1’857

 

1’821

1) Order intake from external customers.

2) Adjusted for currency and acquisition effects.

3) Sales from external customers.

Segment information by divisions

 

 

Total divisions

 

Others 4)

 

Total Sulzer

millions of CHF

 

2020

 

2019

 

2020

 

2019

 

2020

 

2019

Order intake (unaudited) 1)

 

3’414.1

 

3’747.2

 

 

 

3’414.1

 

3’747.2

Nominal growth (unaudited)

 

–8.9%

 

6.1%

 

 

 

–8.9%

 

6.1%

Currency-adjusted growth (unaudited)

 

–2.2%

 

8.2%

 

 

 

–2.2%

 

8.2%

Organic growth 2) (unaudited)

 

–3.8%

 

6.3%

 

 

 

–3.8%

 

6.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

Order backlog as of December 31 (unaudited)

 

1’758.9

 

1’792.6

 

 

 

1’758.9

 

1’792.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales recognized at a point in time

 

2’449.2

 

2’822.3

 

 

 

2’449.2

 

2’822.3

Sales recognized over time

 

869.8

 

906.2

 

 

 

869.8

 

906.2

Sales 3)

 

3’319.0

 

3’728.5

 

 

 

3’319.0

 

3’728.5

Nominal growth

 

–11.0%

 

10.8%

 

 

 

–11.0%

 

10.8%

Currency-adjusted growth (unaudited)

 

–4.6%

 

13.0%

 

 

 

–4.6%

 

13.0%

Organic growth 2) (unaudited)

 

–5.6%

 

10.8%

 

 

 

–5.6%

 

10.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational profit (unaudited)

 

307.1

 

376.2

 

–9.5

 

–4.9

 

297.6

 

371.3

Operational profitability (unaudited)

 

9.3%

 

10.1%

 

n/a

 

n/a

 

9.0%

 

10.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring expenses

 

–54.4

 

–22.2

 

–1.4

 

–1.0

 

–55.8

 

–23.1

Amortization

 

–64.9

 

–63.4

 

–1.1

 

–1.1

 

–65.9

 

–64.5

Impairments on tangible and intangible assets

 

–9.4

 

–2.3

 

–0.5

 

–2.1

 

–9.8

 

–4.4

Non-operational items (unaudited)

 

–12.3

 

–30.1

 

–3.2

 

–8.2

 

–15.4

 

–38.3

EBIT

 

166.3

 

258.3

 

–15.6

 

–17.3

 

150.6

 

241.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

–98.8

 

–99.6

 

–3.0

 

–3.0

 

–101.8

 

–102.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating assets

 

3’602.0

 

3’765.5

 

71.1

 

35.6

 

3’673.1

 

3’801.1

Unallocated assets

 

 

 

1’705.6

 

1’308.4

 

1’705.6

 

1’308.4

Total assets as of December 31

 

3’602.0

 

3’765.5

 

1’776.7

 

1’344.0

 

5’378.7

 

5’109.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating liabilities

 

1’530.2

 

1’566.9

 

152.7

 

135.8

 

1’682.8

 

1’702.7

Unallocated liabilities

 

 

 

2’278.7

 

1’812.9

 

2’278.7

 

1’812.9

Total liabilities as of December 31

 

1’530.2

 

1’566.9

 

2’431.4

 

1’948.7

 

3’961.6

 

3’515.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating net assets

 

2’071.9

 

2’198.6

 

–81.6

 

–100.2

 

1’990.2

 

2’098.4

Unallocated net assets

 

 

 

–573.1

 

–504.5

 

–573.1

 

–504.5

Total net assets as of December 31

 

2’071.9

 

2’198.6

 

–654.7

 

–604.7

 

1’417.2

 

1’593.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure (incl. lease assets)

 

–156.7

 

–140.9

 

–1.3

 

–1.2

 

–158.0

 

–142.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Employees (number of full-time equivalents) as of December 31

 

14’888

 

16’284

 

165

 

222

 

15’054

 

16’506

1) Order intake from external customers.

2) Adjusted for currency and acquisition effects.

3) Sales from external customers.

4) The most significant activities under “Others” relate to Corporate Center.

For the definition of operational profit, operational profitability and adjustments for currency and acquisition effects, reference is made to the “Supplementary information” and for the reconciliation statements to the “Financial review”.

Information about reportable segments

Operating segments are determined based on the reports reviewed by the Chief Executive Officer that are used to measure performance, make strategic decisions, and allocate resources to the segments. The business is managed on a divisional basis and the reported segments have been identified as follows:

Pumps Equipment

The Pumps Equipment division specializes in pumping solutions specifically engineered for the processes of its customers. The division provides pumps, agitators, compressors, grinders, screens and filters developed through intensive research and development in fluid dynamics and advanced materials. The focus is on pumping solutions for water, oil and gas, power, chemicals and most industrial segments.

Rotating Equipment Services

Through a network of over 100 service sites around the world, the Rotating Equipment Services division provides cutting-edge parts as well as maintenance and repair solutions for pumps, turbines, compressors, motors and generators. The division services Sulzer original equipment, but also all associated third-party rotating equipment run by the customers, maximizing its sustainability and life cycle cost-effectiveness. The division’s technology-based solutions, fast execution and expertise in complex maintenance projects are available at its customers’ doorsteps.

Chemtech

The Chemtech division focuses on innovative mass transfer, static mixing and polymer solutions for chemicals, petrochemicals, refining and LNG. Chemtech also provides ecological solutions such as biopolymers as well as textile and plastic recycling, contributing to a circular economy. The division’s product offering ranges from technology licensing to process components all the way to complete separation process plants. Customer support ranges from engineering and field services to tray and packing installation, tower maintenance, welding and plant turnaround projects – ensuring minimal downtime.

Applicator Systems

Through its well-known brands (Mixpac, Transcodent, Cox, Medmix, Haselmeier and Geka), the Applicator Systems division develops and delivers innovative products and services for liquid application and mixing solutions within the healthcare, adhesives and beauty markets. The division’s IP-protected applicator solutions make the customers’ products precise, safe, unique and more sustainable, leveraging the division’s expertise in plastic-injection molding, two-component mixing, drug delivery and micro-brushes.

Others

Certain expenses related to the Corporate Center are not attributable to a particular segment and are reviewed as a whole across the group. Also included are the eliminations for operating assets and liabilities.

The Chief Executive Officer primarily uses operational profit to assess the performance of the operating segments. However, the Chief Executive Officer also receives information about the segments’ order intake and backlog, sales, and operating assets and liabilities on a monthly basis.

Sales from external customers reported to the Chief Executive Officer are measured in a manner consistent with that in the income statement. There are no significant sales between the segments. No individual customer represents a significant portion of the group’s sales.

Operating assets and liabilities are assets or liabilities related to the operating activities of an entity and contributing to the EBIT.

Segment information by region

The allocation of assets is based on their geographical location. Non-current assets exclude other financial assets, deferred tax assets and employee benefit assets. The allocation of sales from external customers is based on the location of the customer.

Non-current assets by region

millions of CHF

 

2020

 

2019

Europe, Middle East, Africa

 

1’451.9

 

1’346.7

– thereof Germany

 

365.1

 

275.4

– thereof Switzerland

 

274.8

 

234.1

– thereof United Kingdom

 

209.9

 

222.4

– thereof Sweden

 

187.4

 

192.9

– thereof the Netherlands

 

116.8

 

124.1

 

 

 

 

 

Americas

 

452.8

 

524.0

– thereof USA

 

417.1

 

479.3

 

 

 

 

 

Asia-Pacific

 

141.8

 

148.0

– thereof China

 

54.6

 

60.1

 

 

 

 

 

Total

 

2’046.5

 

2’018.7

Sales by region

 

 

2020

millions of CHF

 

Pumps Equipment

 

Rotating Equipment Services

 

Chemtech

 

Applicator Systems

 

Total Sulzer

Europe, Middle East, Africa

 

555.7

 

469.6

 

172.7

 

204.0

 

1’402.0

– thereof Germany

 

58.2

 

49.2

 

26.3

 

82.1

 

215.9

– thereof United Kingdom

 

25.7

 

107.4

 

7.9

 

15.4

 

156.3

– thereof Saudi Arabia

 

89.0

 

26.9

 

31.2

 

0.0

 

147.0

– thereof Russia

 

31.5

 

50.9

 

11.7

 

1.6

 

95.7

– thereof France

 

26.8

 

30.9

 

7.3

 

23.1

 

88.0

 

 

 

 

 

 

 

 

 

 

 

Americas

 

452.7

 

446.2

 

128.2

 

117.0

 

1’144.1

– thereof USA

 

297.8

 

358.8

 

81.9

 

106.5

 

845.0

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

288.0

 

162.5

 

292.2

 

30.3

 

772.9

– thereof China

 

206.5

 

24.0

 

188.2

 

15.6

 

434.3

 

 

 

 

 

 

 

 

 

 

 

Total

 

1’296.3

 

1’078.3

 

593.1

 

351.2

 

3’319.0

 

 

2019

millions of CHF

 

Pumps Equipment

 

Rotating Equipment Services

 

Chemtech

 

Applicator Systems

 

Total Sulzer

Europe, Middle East, Africa

 

576.7

 

534.7

 

195.4

 

232.7

 

1’539.6

– thereof Germany

 

60.2

 

50.5

 

36.9

 

91.5

 

239.1

– thereof United Kingdom

 

26.5

 

142.1

 

6.7

 

19.6

 

194.8

– thereof Saudi Arabia

 

60.2

 

39.9

 

22.5

 

0.1

 

122.7

– thereof Russia

 

42.1

 

75.5

 

13.8

 

1.3

 

132.7

– thereof France

 

35.0

 

28.0

 

5.0

 

27.0

 

94.9

 

 

 

 

 

 

 

 

 

 

 

Americas

 

511.3

 

480.6

 

173.4

 

156.0

 

1’321.3

– thereof USA

 

345.3

 

377.1

 

103.4

 

139.9

 

965.8

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

389.0

 

151.6

 

295.2

 

31.8

 

867.7

– thereof China

 

211.2

 

25.0

 

169.7

 

14.9

 

420.8

 

 

 

 

 

 

 

 

 

 

 

Total

 

1’477.0

 

1’167.0

 

664.0

 

420.6

 

3’728.5

Segment information by market segment

The following table shows the allocation of sales from external customers by market segments:

Sales by market segment

 

 

2020

millions of CHF

 

Pumps Equipment

 

Rotating Equipment Services

 

Chemtech

 

Applicator Systems

 

Total Sulzer

Oil and gas

 

319.2

 

372.3

 

183.5

 

 

875.1

Chemicals

 

185.3

 

191.5

 

369.3

 

 

746.1

General industry

 

298.3

 

170.8

 

35.0

 

 

504.1

Water

 

386.0

 

32.6

 

3.5

 

 

422.1

Power

 

107.5

 

311.1

 

1.8

 

 

420.4

Adhesives, dental, healthcare

 

 

 

 

229.5

 

229.5

Beauty

 

 

 

 

121.7

 

121.7

Total

 

1’296.3

 

1’078.3

 

593.1

 

351.2

 

3’319.0

 

 

2019

millions of CHF

 

Pumps Equipment

 

Rotating Equipment Services

 

Chemtech

 

Applicator Systems

 

Total Sulzer

Oil and gas

 

355.8

 

422.3

 

217.7

 

 

995.8

Chemicals

 

232.9

 

198.2

 

414.8

 

 

845.9

General industry

 

340.4

 

195.7

 

23.4

 

 

559.5

Water

 

432.7

 

38.2

 

0.9

 

 

471.8

Power

 

115.2

 

312.6

 

7.2

 

 

435.1

Adhesives, dental, healthcare

 

 

 

 

274.1

 

274.1

Beauty

 

 

 

 

146.5

 

146.5

Total

 

1’477.0

 

1’167.0

 

664.0

 

420.6

 

3’728.5

4 Acquisitions of subsidiaries

4 Acquisitions of subsidiaries

Acquisitions in 2020

The following table summarizes the recognized amounts of assets acquired and liabilities assumed at the date of acquisition, including the resulting goodwill and the total consideration paid. If new information obtained within one year of the date of acquisition about facts and circumstances that existed at the date of acquisition identifies adjustments to the amounts recognized below, then the accounting for the acquisition will be revised.

Net assets acquired

millions of CHF

 

Haselmeier

 

Others

 

Total

Intangible assets

 

39.8

 

1.7

 

41.5

Property, plant and equipment

 

13.1

 

0.0

 

13.1

Lease assets

 

2.4

 

 

2.4

Deferred income tax assets

 

0.3

 

 

0.3

Cash and cash equivalents

 

3.7

 

0.0

 

3.7

Trade accounts receivable

 

5.2

 

0.0

 

5.2

Other current assets

 

9.6

 

0.1

 

9.7

Lease liabilities

 

–2.4

 

 

–2.4

Provisions

 

–3.5

 

–0.0

 

–3.5

Non-current income tax liabilities

 

–2.3

 

 

–2.3

Deferred income tax liabilities

 

–5.3

 

–0.3

 

–5.6

Other liabilities

 

–1.8

 

 

–1.8

Net identifiable assets

 

58.8

 

1.5

 

60.3

Goodwill recognized in balance sheet

 

60.4

 

 

60.4

Total consideration

 

119.2

 

1.5

 

120.7

 

 

 

 

 

 

Purchase price paid in cash

 

105.0

 

1.5

 

106.5

Contingent consideration

 

14.2

 

 

14.2

Total consideration

 

119.2

 

1.5

 

120.7

Haselmeier

On October 1, 2020, Sulzer acquired a 100% controlling interest of Haselmeier AG for CHF 119.2 million. The headquarters of Haselmeier is located in Stuttgart, Germany. Haselmeier employs approximately 230 people and is a leading own-IP provider of drug delivery devices such as subcutaneous self-injection pens for use in fast-growing indications such as reproductive health, growth disorders, osteoporosis and diabetes. With the acquisition of Haselmeier, Sulzer will complement its healthcare portfolio and leverage its APS expertise in precision injection molding to seize growth opportunities in the fast-growing drug delivery devices market. Haselmeier will operate as part of Sulzer’s Applicator Systems division. The goodwill is attributable to significant synergies by leveraging scale and cross-selling opportunities. None of the goodwill is expected to be deductible for tax purposes. Transaction costs recognized in the income statement amount to CHF –0.4 million. Since the acquisition date, Haselmeier contributed order intake of CHF 13.0 million, sales of CHF 7.4 million, and net income of CHF 0.9 million to the group.

Contingent consideration

The contingent consideration is mainly dependent on technology-related proof-of-concept, project development and customer orders. The total liability is limited at CHF 16.5 million and is discounted to a present value of CHF 14.2 million. The calculation of the contingent consideration is based on management assessments that the criteria will be achieved at a probability of 100%.

Acquired receivables

The fair value of acquired trade accounts receivable is CHF 5.2 million. The gross contractual amount for trade account receivables due is CHF 5.2 million, of which none are expected to be uncollectible at the date of acquisition.

Pro forma sales and profit contribution

Had all above acquisitions occurred on January 1, 2020, management estimates that total net sales of the group would amount to CHF 3'344.2 million, and the consolidated net income would be CHF 89.9 million.

Cash flow from acquisitions of subsidiaries

millions of CHF

 

2020

 

2019

Cash consideration paid

 

–106.5

 

–94.3

Cash acquired

 

3.7

 

15.9

Payments for acquisitions in prior years

 

–5.4

 

Total cash flow from acquisitions, net of cash acquired

 

–108.2

 

–78.5

Contingent consideration

millions of CHF

 

2020

 

2019

Balance as of January 1

 

3.5

 

0.9

Assumed in a business combination

 

14.2

 

3.6

Release to other operating income

 

 

–0.9

Currency translation differences

 

0.6

 

–0.1

Total contingent consideration as of December 31

 

18.3

 

3.5

– thereof non-current

 

13.9

 

3.5

– thereof current

 

4.4

 

Acquisitions in 2019

The following table summarizes the recognized amounts of assets acquired and liabilities assumed at the date of acquisition, including the resulting goodwill and the total consideration paid.

millions of CHF

 

GTC Technology US, LLC

 

Alba Power

 

Other

 

Total

Intangible assets

 

19.5

 

38.2

 

5.3

 

63.1

Property, plant and equipment

 

4.0

 

3.9

 

 

8.0

Lease assets

 

5.7

 

0.1

 

 

5.8

Cash and cash equivalents

 

12.6

 

3.2

 

 

15.9

Trade accounts receivable

 

9.3

 

4.4

 

 

13.7

Other current assets

 

0.8

 

1.4

 

 

2.2

Borrowings

 

–0.4

 

 

 

–0.4

Lease liabilities

 

–5.7

 

–0.1

 

 

–5.8

Provisions

 

 

–0.7

 

 

–0.7

Other liabilities

 

–6.9

 

–4.1

 

–0.7

 

–11.7

Deferred tax liabilities

 

–2.3

 

–5.4

 

 

–7.7

Net identifiable assets

 

36.8

 

41.1

 

4.6

 

82.4

Goodwill recognized in balance sheet

 

6.8

 

13.3

 

0.7

 

20.8

Total consideration

 

43.5

 

54.4

 

5.3

 

103.2

 

 

 

 

 

 

 

 

 

Purchase price paid in cash

 

39.9

 

54.4

 

 

94.3

Purchase price not yet paid

 

 

 

5.3

 

5.3

Contingent consideration

 

3.6

 

 

 

3.6

Total consideration

 

43.5

 

54.4

 

5.3

 

103.2

5 Critical accounting estimates and judgments

5 Critical accounting estimates and judgments

All estimates and assessments are continually reviewed and are based on historical experience and other factors, including expectations regarding future events that appear reasonable under the given circumstances. The group makes estimates and assumptions that relate to the future. By their nature, these estimates will only rarely correspond to actual subsequent events. The estimates and assumptions that carry a significant risk, in the form of a substantial adjustment to the present values of assets and liabilities within the next financial year, are set out below.

Employee benefit plans

The present value of the pension obligation and the plan assets depends on a number of factors that are determined on an actuarial basis using a number of assumptions. Assumptions used in determining the defined benefit obligation and the plan assets include the discount rate, future salary and pension increases, and mortality rates. The assumptions are reviewed and reassessed at the end of each year based on observable market data, i.e. interest rate of high-quality corporate bonds denominated in the corresponding currency and asset management studies. Further details are provided in note 9 and note 34.

Income taxes

The group is obliged to pay income taxes in numerous jurisdictions. Assumptions are required in order to determine income tax provisions. There are transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of the business. The group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Management believes that the estimates are reasonable, and that the recognized liabilities for income-tax-related uncertainties are adequate. Further details are disclosed in note 13.

Goodwill and other intangible assets

The group carries out an annual impairment test on goodwill in the first quarter of the year (after the budget and the three-year strategic plan have been approved by the Board of Directors in February), or when indications of a potential impairment exist. Due to COVID-19, the budget and the three-year strategic plan have been updated after the approval. This update has been presented to the Board of Directors in May 2020. The goodwill impairment test is based on the updated version of the budget and the three-year strategic plan. The recoverable amount from cash-generating units is measured on the basis of value-in-use calculations with the terminal growth rate, the discount rate, and the projected cash flows as the main variables. Information about assumptions and estimation uncertainties that have significant risk of resulting in a material adjustment in the year ending December 31, 2020, are disclosed in note 14. The accounting policies are disclosed in note 34.

Lease assets and lease liabilities

The group has applied judgment to determine the lease term for lease contracts that include renewal and termination options. The assessment of whether the group is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and lease assets recognized. This assessment depends on economic incentives, such as removal and relocation costs.

Further details are disclosed in note 16 and note 34.

Sales

At contract inception, the group assesses the goods or services promised in a contract with a customer and identifies each promise to transfer to the customer as a performance obligation. The group considers the terms of the contract and all other relevant facts, including the economic substance of the transaction. Judgment is needed to determine whether there is a single performance obligation or multiple separate performance obligations. In typical engineering contracts, engineering, production and installation are treated as one single performance obligation.

If the consideration promised in a contract includes a variable amount (e.g. expected liquidated damages, early payment discounts, volume discounts), the group estimates the amount of consideration to which the group will be entitled in exchange for transferring the promised goods or services to a customer. The amount of the variable consideration is estimated by using either of the following methods, depending on which method the group expects to better predict the amount of consideration to which it will be entitled: the expected value or the most likely amount. The method selected is applied consistently throughout the contract and to similar types of contracts when estimating the effect of uncertainty on the amount of variable consideration to which the group is entitled. Depending on the outcome of the respective transactions, actual payments may differ from these estimates.

To allocate the transaction price to each performance obligation on a relative stand-alone selling price basis, the group determines the stand-alone selling price at contract inception of the distinct good or service underlying each performance obligation in the contract and allocates the transaction price in proportion to those stand-alone selling prices. If the stand-alone selling price is not directly observable, then the group estimates the amount with the expected cost plus margin method.

The group is recognizing sales either over time or at a point in time. Sales are recognized over time if any of the conditions described in note 34 is met. To determine the method, the right to payment condition is the one with the most critical estimates. The group estimates if an enforceable right to payment (including reasonable profit margin) for performance up to date exists in case the customer terminates the contract for convenience. For this estimate the group reviews the contracts and considers relevant laws, legal precedents and customary business practice.

Applying the over time method requires the group to estimate the proportional sales and costs. To measure the stage of completion, generally the cost-to-cost method is applied. Work progress of sub-suppliers is considered to determine the stage of completion. If circumstances arise that may change the original estimates of sales, costs or extent of progress toward completion, estimates are revised. These revisions may result in increases or decreases in estimated sales or costs and are reflected in income in the period in which the circumstances that give rise to the revision become known by management.

Further details are disclosed in note 20 and note 34.

Provisions

Provisions are made, among other reasons, for warranties, disputes, litigation and restructuring. A provision is recognized in the balance sheet when the group has a legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. The nature of these costs is such that judgment has to be applied to estimate the timing and amount of cash outflows. Depending on the outcome of the respective transactions, actual payments may differ from these estimates. Further details are disclosed in note 27 and note 34.

6 Financial risk management

6 Financial risk management

6.1 Financial risk factors

The group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk, and price risk), credit risk and liquidity risk. The group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the group’s financial performance. The group uses derivative financial instruments to hedge certain risk exposures.

Risk management is carried out by a central treasury department (Group Treasury). Group Treasury identifies, evaluates and hedges financial risks in close cooperation with the group’s subsidiaries. Principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity exist in writing.

a) Market risk

(I) Foreign exchange risk

The group operates internationally and is exposed to foreign exchange risk arising from various currency exposures. The group is exposed to transactional foreign currency risk to the extent that sales, purchases, license fees, borrowings and other balance sheet items are denominated in currencies other than the functional currencies of group companies. The functional currencies of group companies are primarily CHF, EUR, USD, CNY and GBP. Management has set up a policy to require subsidiaries to manage their foreign exchange risk against their functional currency. The subsidiaries are required to hedge their major foreign exchange risk exposure using forward contracts or other standard instruments, usually transacted with Group Treasury. The group’s management policy is to apply the following hedge ratios:

Contractual FX exposure
  • 90% – 100% of the exposure
Non-contractual FX exposure
  • 100% of the forecasted exposure for the next 1–3 months
  • 60% of the forecasted exposure for the next 4–6 months
  • 40% of the forecasted exposure for the next 7–12 months

The group uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date. The contracts are generally designated for hedge accounting as cash flow hedges. The group determines the existence of an economic relationship between the hedging instruments and the hedged item based on the currency, amount and timing of the respective cash flows. For hedges of foreign currency purchases, the group enters into hedge relationships where the critical terms of the hedging instrument match exactly with the terms of the hedged item. The group therefore performs a qualitative assessment of effectiveness. If changes in circumstances affect the terms of the hedged item such that the critical terms no longer match exactly with the critical terms of the hedging instrument, the group uses the hypothetical derivative method to assess effectiveness. In hedges of foreign currency purchases, ineffectiveness may arise if the timing of the forecast transaction changes from what was originally estimated.

Presently, most of the contracts are designated as cash flow hedges. External foreign exchange contracts are designated as hedges of foreign exchange risk on specific assets, liabilities or future transactions on a gross basis. The group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. If required, currency exposure arising from the net assets of the group’s foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies. Derivative financial instruments are only used on an ad hoc basis to manage foreign currency translation risk.

The following tables show the hypothetical influence on the income statement for 2020 and 2019 related to foreign exchange risk of financial instruments. The volatility used for the calculation is the one-year historic volatility on December 31 for the relevant currency pair and year. For 2020, the currency pair with the most significant exposure and inherent risk was the EUR versus the RUB. If, on December 31, 2020, the EUR had increased by 1.0% against the RUB with all other variables held constant, profit after tax for the year would have been CHF 0.6 million higher due to foreign exchange gains on EUR-denominated financial assets. A decrease of the rate would have caused a loss of the same amount.

Hypothetical impact of foreign exchange risk on income statement

millions of CHF

 

2020

Currency pair

 

EUR/RUB

 

GBP/SAR

 

GBP/USD

 

EUR/ZAR

Exposure

 

4.1

 

6.8

 

–4.6

 

–2.9

Volatility

 

20.3%

 

7.8%

 

11.0%

 

16.7%

Effect on profit after tax (rate increase)

 

0.6

 

0.4

 

–0.4

 

–0.4

Effect on profit after tax (rate decrease)

 

–0.6

 

–0.4

 

0.4

 

0.4

millions of CHF

 

2019

Currency pair

 

USD/CHF

 

USD/ARS

 

USD/CAD

 

EUR/USD

Exposure

 

14.9

 

3.4

 

9.4

 

–9.0

Volatility

 

5.5%

 

24.9%

 

5.1%

 

4.9%

Effect on profit after tax (rate increase)

 

0.6

 

0.6

 

0.4

 

–0.3

Effect on profit after tax (rate decrease)

 

–0.6

 

–0.6

 

–0.4

 

0.3

The following tables show the hypothetical influence on equity for 2020 and 2019 related to foreign exchange risk of financial instruments for the most important currency pairs as per December 31 of the respective year. The volatility used for the calculation is the one-year historic volatility on December 31 for the relevant currency pair and year. Most of the hypothetical effect on equity is a result of fair value changes of derivative financial instruments designated as hedges of future cash flows in foreign currencies.

Hypothetical impact of foreign exchange risk on equity

millions of CHF

 

2020

Currency pair

 

USD/MXN

 

GBP/USD

 

USD/CHF

 

EUR/USD

 

EUR/RUB

 

USD/BRL

 

USD/INR

Exposure

 

–41.5

 

52.0

 

–63.5

 

49.0

 

–15.2

 

–12.5

 

–22.1

Volatility

 

18.9%

 

11.1%

 

7.4%

 

7.6%

 

21.0%

 

21.3%

 

5.4%

Effect on equity, net of taxes (rate increase)

 

–5.6

 

4.1

 

–3.4

 

2.7

 

–2.3

 

–1.9

 

–0.9

Effect on equity, net of taxes (rate decrease)

 

5.6

 

–4.1

 

3.4

 

–2.7

 

2.3

 

1.9

 

0.9

millions of CHF

 

2019

Currency pair

 

USD/MXN

 

USD/BRL

 

GBP/USD

 

USD/INR

 

EUR/USD

 

USD/CHF

 

EUR/INR

Exposure

 

37.8

 

–20.8

 

31.1

 

–43.1

 

40.6

 

36.0

 

24.6

Volatility

 

8.7%

 

12.9%

 

8.2%

 

5.8%

 

4.9%

 

5.5%

 

6.8%

Effect on equity, net of taxes (rate increase)

 

2.4

 

–2.0

 

1.9

 

–1.9

 

1.5

 

1.5

 

1.2

Effect on equity, net of taxes (rate decrease)

 

–2.4

 

2.0

 

–1.9

 

1.9

 

–1.5

 

–1.5

 

–1.2

(II) Price risk

As of December 31, 2020, the group was not exposed to significant price risk related to investments in equity securities.

(III) Interest rate sensitivity

The group’s interest rate risk arises from interest-bearing assets and liabilities. Assets and liabilities at variable rates expose the group to cash flow interest rate risk. Assets and liabilities at fixed rates only expose the group to fair value interest rate risk in the case of debt instruments that are classified as at fair value through profit or loss. The group analyzes its interest rate exposure on a net basis, and if required, enters into derivative instruments in order to keep the volatility of net interest income or expense limited. The group’s non-current interest-bearing liabilities mainly comprise six bonds with a fixed interest rate.

The following table shows the hypothetical influence on the income statement for variable-interest-bearing assets net of liabilities at variable interest rates, assuming market interest rate levels would have increased/decreased by 100 basis points. For the most significant currencies, CHF, USD, EUR, CNY and GBP, increasing interest rates would have had a positive impact on the income statement, since the value of variable-interest-bearing assets (comprising mainly cash and cash equivalents) exceed the value of variable-interest-bearing liabilities.

Hypothetical impact of interest rate risk on income statement

millions of CHF

 

2020

Variable-interest-bearing assets (net)

 

Amount

 

Sensitivity in basis points

 

Impact on post-tax profit

 

 

 

rate increase

 

rate decrease

CHF

 

501.4

 

100

 

3.6

 

–3.6

USD

 

287.4

 

100

 

2.1

 

–2.1

EUR

 

229.5

 

100

 

1.6

 

–1.6

CNY

 

181.7

 

100

 

1.3

 

–1.3

GBP

 

40.2

 

100

 

0.3

 

–0.3

millions of CHF

 

2019

Variable-interest-bearing assets (net)

 

Amount

 

Sensitivity in basis points

 

Impact on post-tax profit

 

 

 

rate increase

 

rate decrease

USD

 

251.0

 

100

 

1.9

 

–1.9

CHF

 

217.1

 

100

 

1.6

 

–1.6

EUR

 

210.9

 

100

 

1.6

 

–1.6

CNY

 

108.7

 

100

 

0.8

 

–0.8

GBP

 

25.2

 

100

 

0.2

 

–0.2

On December 31, 2020, if the interest rates on CHF-denominated assets net of liabilities had been 100 basis points higher with all other variables held constant, post-tax profit for the year would have been CHF 3.6 million higher, as a result of higher interest income on CHF-denominated assets. A decrease of interest rates on CHF-denominated assets net of liabilities would have caused a loss of the same amount. As of December 31, 2019, if the interest rates had been 100 basis points higher with all other variables held constant, post-tax profit for the year would have been CHF 1.6 million higher, as a result of higher interest income on CHF-denominated assets.

b) Credit risk

Credit risk arises from cash and cash equivalents, derivative financial instruments, and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables, contract assets and committed transactions. The maximum exposure to credit risk per class of financial assets is outlined in the fair value table in note 6.3. Not exposed to credit risks are equity securities.

Credit risks of banks and financial institutions are monitored and managed centrally. Generally, only independently rated parties with a strong credit rating are accepted, and the total volume of transactions is split among several banks to reduce the individual risk with one bank.

For every customer with a large order volume, an individual risk assessment of the credit quality of the customer is performed that considers independent ratings, financial position, past experience and other factors. Additionally, bank guarantees and letters of credit are requested. For more details on the credit risk out of contract assets, please refer to note 20 and on the credit risk out of trade accounts receivable, please refer to note 21.

c) Liquidity risk

Prudent liquidity risk management includes the maintenance of sufficient cash and marketable securities, the availability of funding from an adequate number of committed credit facilities, and the ability to close out market positions. Due to the dynamic nature of the underlying businesses, Group Treasury maintains flexibility in funding through a committed credit line.

Management anticipates the future development of the group’s liquidity reserve on the basis of expected cash flows by performing regular group-wide cash forecasts. In 2017, the second of the two one-year extension options of the syndicated credit line of CHF 500 million was executed, and thus the credit line was extended to 2022. If special needs arise, financing will be reviewed case by case.

The following table analyzes the group’s financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows calculated with the year-end closing rates. Borrowings include the notional amount as well as interest payments.

Maturity profile of financial liabilities

 

 

2020

millions of CHF

 

Carrying amount

 

<1 year

 

1–5 years

 

>5 years

 

Total

Borrowings

 

1’723.1

 

246.7

 

1’207.4

 

329.6

 

1’783.7

Lease liabilities

 

119.7

 

30.0

 

67.1

 

31.7

 

128.8

Trade accounts payable

 

465.8

 

465.8

 

 

 

465.8

Other current and non-current liabilities (excluding derivative liabilities)

 

368.2

 

347.5

 

23.0

 

0.0

 

370.6

Derivative liabilities

 

8.1

 

6.9

 

 

1.2

 

8.1

– thereof outflow

 

 

 

730.1

 

 

6.1

 

736.2

– thereof inflow

 

 

 

723.2

 

 

4.9

 

728.0

 

 

2019

millions of CHF

 

Carrying amount

 

<1 year

 

1–5 years

 

>5 years

 

Total

Borrowings

 

1’330.2

 

144.0

 

1’107.3

 

125.6

 

1’376.8

Lease liabilities

 

109.7

 

27.4

 

66.4

 

15.9

 

109.7

Trade accounts payable

 

522.4

 

522.4

 

 

 

522.4

Other current and non-current liabilities (excluding derivative liabilities)

 

293.4

 

287.2

 

5.6

 

0.6

 

293.4

Derivative liabilities

 

8.2

 

8.2

 

0.0

 

 

8.2

– thereof outflow

 

 

 

434.6

 

0.4

 

 

435.0

– thereof inflow

 

 

 

426.4

 

0.4

 

 

426.8

6.2 Capital risk management

The group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In this respect, the group aims at maintaining an investment grade credit rating, either as a perceived rating or an external rating issued by a credit rating agency.

In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The following table shows the net debt/EBITDA ratio as at December 31, 2020 and 2019.

Net debt/EBITDA ratio

millions of CHF

 

2020

 

2019

 

 

 

 

 

Cash and cash equivalents

 

–1’123.2

 

–1’035.5

Current financial assets

 

–305.1

 

–57.5

Non-current borrowings

 

1’491.3

 

1’199.2

Non-current lease liabilities

 

90.2

 

82.3

Current borrowings

 

231.8

 

131.0

Current lease liabilities

 

29.5

 

27.4

Net debt as of December 31

 

414.5

 

346.9

 

 

 

 

 

EBIT

 

150.6

 

241.0

Depreciation

 

101.8

 

102.6

Impairments on tangible and intangible assets

 

9.8

 

4.4

Amortization

 

65.9

 

64.5

EBITDA

 

328.1

 

412.5

 

 

 

 

 

Net debt

 

414.5

 

346.9

EBITDA

 

328.1

 

412.5

Net debt/EBITDA ratio

 

1.26

 

0.84

Another important ratio for the group is the gearing ratio (borrowings-to-equity ratio), which is calculated as total borrowings and lease liabilities divided by equity attributable to shareholders of Sulzer Ltd. The equity capital as shown in the balance sheet corresponds to the managed equity capital.

As of December 31, 2020 and 2019, the gearing ratio was as follows:

Gearing ratio (borrowings-to-equity ratio)

millions of CHF

 

2020

 

2019

Non-current borrowings

 

1’491.3

 

1’199.2

Non-current lease liabilities

 

90.2

 

82.3

Current borrowings

 

231.8

 

131.0

Current lease liabilities

 

29.5

 

27.4

Total borrowings and lease liabilities

 

1’842.8

 

1’439.9

Equity attributable to shareholders of Sulzer Ltd

 

1’404.3

 

1’580.7

Gearing ratio (borrowings-to-equity ratio)

 

1.31

 

0.91

For the definition of net debt, EBITDA and gearing ratio, please refer to “Supplementary information”.

6.3 Fair value estimation

The following tables present the carrying amounts and fair values of financial assets and liabilities as of December 31, 2020 and 2019, including their levels in the fair value hierarchy. For financial assets and financial liabilities not measured at fair value in the balance sheet, fair value information is not provided if the carrying amount is a reasonable approximation of fair value.

Fair values are categorized into three different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

The fair value of financial instruments traded in active markets, including the outstanding bonds, is based on quoted market prices at the balance sheet date. Such instruments are included in level 1.

The fair values included in level 2 are based on valuation techniques using observable market input data. This may include discounted cash flow analysis, option pricing models or reference to other instruments that are substantially the same, while always making maximum use of market inputs and relying as little as possible on entity-specific inputs. The fair values of forward contracts are measured based on broker quotes for foreign exchange rates and interest rates.

Fair values measured using unobservable inputs are categorized within level 3 of the fair value hierarchy. This applies particularly to contingent considerations in business combinations.

Contingent considerations are linked to the fulfillment of certain parameters, mainly related to earn-out clauses and technology transfer. For more information please refer to note 4.

Fair value table

 

 

 

 

December 31, 2020

 

 

 

 

Carrying amount

 

Fair value

millions of CHF

 

Notes

 

Fair value hedging instruments

 

Fair value through profit or loss

 

Financial assets at amortized cost

 

Other financial liabilities

 

Total carrying amount

 

Level 1

 

Level 2

 

Level 3

 

Total fair value

Financial assets measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other non-current financial assets (at fair value)

 

18

 

 

 

8.7

 

 

 

 

 

8.7

 

0.2

 

 

8.4

 

8.7

Derivative assets – non-current

 

29

 

1.0

 

 

 

 

 

 

 

1.0

 

 

1.0

 

 

1.0

Derivative assets – current

 

22, 29

 

12.1

 

 

 

 

 

 

 

12.1

 

 

12.1

 

 

12.1

Current financial assets (at fair value)

 

18

 

 

 

1.7

 

 

 

 

 

1.7

 

1.7

 

 

 

1.7

Total financial assets measured at fair value

 

 

 

13.2

 

10.4

 

 

 

23.6

 

2.0

 

13.2

 

8.4

 

23.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other non-current financial assets (at amortized cost)

 

18

 

 

 

 

 

2.0

 

 

 

2.0

 

 

 

 

 

 

 

 

Non-current receivables (excluding non-current derivative assets)

 

 

 

 

 

 

 

3.3

 

 

 

3.3

 

 

 

 

 

 

 

 

Trade accounts receivable

 

21

 

 

 

 

 

599.1

 

 

 

599.1

 

 

 

 

 

 

 

 

Other current receivables (excluding current derivative assets and other taxes)

 

22

 

 

 

 

 

19.2

 

 

 

19.2

 

 

 

 

 

 

 

 

Current financial assets (at amortized cost)

 

18

 

 

 

 

 

303.3

 

 

 

303.3

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

23

 

 

 

 

 

1’123.2

 

 

 

1’123.2

 

 

 

 

 

 

 

 

Total financial assets not measured at fair value

 

 

 

 

 

2’050.0

 

 

2’050.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities – non-current

 

29

 

1.2

 

 

 

 

 

 

 

1.2

 

 

1.2

 

 

1.2

Derivative liabilities – current

 

28, 29

 

6.9

 

 

 

 

 

 

 

6.9

 

 

6.9

 

 

6.9

Contingent considerations

 

4

 

 

 

18.3

 

 

 

 

 

18.3

 

 

 

18.3

 

18.3

Total financial liabilities measured at fair value

 

 

 

8.1

 

18.3

 

 

 

26.4

 

 

8.1

 

18.3

 

26.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding non-current bonds

 

26

 

 

 

 

 

 

 

1’488.5

 

1’488.5

 

1’527.5

 

 

 

1’527.5

Other non-current borrowings

 

26

 

 

 

 

 

 

 

2.7

 

2.7

 

 

 

 

 

 

 

 

Other non-current liabilities (excluding non-current derivative liabilities)

 

 

 

 

 

 

 

 

 

20.7

 

20.7

 

 

 

 

 

 

 

 

Outstanding current bonds

 

26

 

 

 

 

 

 

 

209.9

 

209.9

 

211.3

 

 

 

211.3

Other current borrowings and bank loans

 

26

 

 

 

 

 

 

 

21.9

 

21.9

 

 

 

 

 

 

 

 

Trade accounts payable

 

 

 

 

 

 

 

 

 

465.8

 

465.8

 

 

 

 

 

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