Implementation of Grouplsquos succesful strategyExecution of strategic milestones resulting in international growth and expansion
Expanding our business globally into APAC LATAM Europe MEA and North America
Increase of our customer base
Winning significant and strategic deals in Europe US and LATAM
Increase of processing volumes of our Managed Services business
Starting of our third business line Direct Acquiring in Europe and LATAM
Application for Financial Institution License
Enhancing our platform by adding new tools
Strengthen our position in the market as one of leading providers of global omni-
channel payment services
5
Highlights 2019
EuropeStarting of our Direct Acquiring business
Application for our Financial Institution licence in Germany
bull Acquiring payment services
bull Issuing of payment instruments
bull Payment initiation services
bull Money remittance services
Acquisition of KALICOM Liebers Zahlungssysteme GmbH for full merchant offerings
bull Immediate capabilities of selling installing servicing terminals and processing card transactions
Preparation to launch the services with our Alliance partner for the travel industry
Sponsorship to launch our white-label Acquiring Solution
Setting up the team and the infrastructure in preparation of the Financial Institution licence
Click to edit Master title style
6
Highlights 2019
North America
Well-positioned as Service Provider
Significant and strategic agreement with one of the top three large US Acquirer as
Managed Service client
First US client went live
Two clients have been boarded to go live
Signing of three ISOlsquos ready to be launced 2020
Continuous expansion by increasing the staff compliment and building infrastructure
for the processing clients
7
Highlights 2019
LATAM
Increase of services to our current customers in Brazil Argentina and Colombia
Partnership with MOViiRED to offer Direct Acquiring and Issuing
bull Leading challenger bank
bull MOVii has a strong base of 60000 POS terminals
bull 15 million client transactions per month
Expanding with current Managed Services client into other countries within the
region
Expanding with current Licenced clients by consolidating their entire cross -regional
business on the platform
8
Highlights 2019
APAC
Increase of services to our current customers both for Licenced and Managed
Services in several countries in the region
Preparation of Group wide services (Chargeback Call Center services)
Delivering payment as a service for issuing and acquiring to financial institutions of
any size and offering term licences for issuing and acquiring to large international
banks
Significant and strategic agreements in different industries
9
Executive Summary
Key highlights of RS2 amp RS2rsquos growth strategy
Solid financial base and market out-performance
Highly attractive industry
Strong market momentum
Clear Strategy for accelerated growth
Comprehensive technical solution1
2
3
4
5
bull RS2 is one of the only providers to offer a global omnimulti-channel platformbull 30 years market experience Worldwide presence with blue chip customer portfoliobull Uniquely positioned for global customers to process international amp local payment
bull Healthy financial positionbull Solid and prime long-term oriented shareholder-structurebull Over last years RS2 significantly outperformed the stock market
bull Double digit market growth in payment over last yearsbull Digitalization drives innovation and disruption and offers new revenue streamsbull Future tailwind is coming from consumer behavior regulation and digitalization
bull Consolidation process offers opportunities both for organic and inorganic growthbull Influence of leading-edge technology increases software is a crucial advantagebull High liquidity and cheap re-financing allow significant investments
relating to the Transaction Please detail any anticipated timetable constraints that you foresee regarding completion of the Transaction Jens
bull Future-driven strategy around the big opportunities in the payments-industry bull Ambition to become a full integrated digital omni-multi-channel payment provider bull Developed a clear strategic roadmap to implement strategy and to maintain focus
bull Founded in 1988 and headquartered in Malta RS2 Software develops software and managed services for card payment processing to banks and other Financial Institutions
bull The company operates in three segments
o Licensing engaged in licensing of the Companyrsquos BankWORKS software to banks and service providers including maintenance and services thereto
o Processing segment is involved in processing of payment transactions utilizing its BankWORKS software
o Merchant service New business-line to take next step in the payment value chain Solution is to directly serve merchants for acquiring and issuing solutions
bull RS2 has steadily significantly outperformed the market Shareholder returns over the last 5 years amount to gt250
bull Current market capitalization euro452m (as of 07-10-20)
Oct 19July 19 Aug 19 Feb 20Dec 19 April 20 July 20
Max euro256
Min euro159
Mar
ket s
hare
pri
ce
Company description Stock price development
Comparative return analysis
Act euro234
12
Internal Analysis of RS2 Organization
Overview about the RS2 GroupRS2 Software Plc
Mosta MLT~270 Employees
Holding Software development licensing
RS2 Germany GmbH
Neu-Isenburg GER~ 14 employees
Service provider for software Plc product mgt implementation
RS2 Merchant Services Europe GmbH
Neu-Isenburg GER0 employees
Holding for merchant business in Europe
RS2 Smart Processing Ltd
Mosta MLT~25 Employees
Processing-business for FI globally wo US
RS2 Software LAC LTDA
Sao Paulo BRA~ 1 employees
Sales amp service office for Latin America
RS2 Software APAC
Metro Manila PHL~22 employees
Sales for Software Plc amp Processing Ltd vice versa
service center for both
RS2 Software Inc
Denver USA ~35 employees
Processing for US Sub-Licensing for Key
Accounts
RS2 Financial Services GmbH
Neu-Isenburg GER~8 employees
Acquiring business E-Money for Europe
Kalicom Zahlungssysteme
GmbH
Neu-Isenburg GER~ 8 employees
ISO for Germany (Sales Service NSP)
100 100 9992 99 9999 6420
100 100
13
Internal Analysis of RS2 Organization
Employment statistics
Employee nationality and work location Employee development 2014 to 2019
59
9
7
7
15
4
Nationality Work location
73
9
75 4
2
No of employees by tenure in years (2019)
135116
71
28 17
gt 152 to 5lt 2 5 to 10 10 to 15
144188 217 244
282
368
201920182014 2015 2016 2017
CAGR +21
AmericanMaltese German
JordanPhilippines
Other USAMalta not defined Germany
Philippines Other
Competences
Management
IT amp Product Management
Customer
Back Office amp Administration
4
68
2
2
24
Sales amp Marketing
Back Office amp Operations
Customer Service
IT amp Product Management
Management
Competences
14
Internal Analysis of RS2 USPs
Unique Selling Points and Value Proposition overview of key differentiators
Omni ChannelTrue omni-channel covering all payment sources (online offline
mobile)
ScalableCloud-based solution linearly scalable with no lead-time for
infrastructure upgrade
One Global PlatformGlobal state of the art solution
and global coverage instant and real time payments
Reliable performanceRobust 9999 availability and
high performance engine
API enabledSingle platform with single API
integration ndash one source code for SMEs and large Enterprises
Highly ConfigurableConfigurable by client region currency business type and
channel
Customer experienceHigh integration over the payment
merchant and partner portal global reconciliation FX
bull RS2 is one of the only providers worldwide to offer global omnichannel payment services through a single integration to its cloud platform
bull RS2 is uniquely positioned to enable global customers to process both international and local payments
bull RS2 provides customers with a single view of their transactions through consolidated reporting and the reconciliation of their entire businesses across currencies and languages
bull It has a highly flexible platform allowing customers quicker time to market through a single API integration
Five main trends for opportunities and challenges in the payment ecosystem
Global payment revenues by region(USD trillions)
Market trends
02
2018
04
16
03
02
06
0103
2015
05
2011
0103
03
04
07
05
08
2017
0218
05
09
13 1419
2013
03
04
CAGR 56
Latin America EMEA North America APAC
Regulatory environment The EU has developed a comprehensive legislative payment framework aimed at keeping pace with the rapid evolution of the industry as well as preserve financial stability while creating a more competitive payment system (PSD2) and ICF regulation
Dynamic market growth Non-cash transactions grew by 12 globally during 2018 Asia and CEMEA growing by 20-30 Drivers are mobile payments contactless payments and shift to e-commerce
Technology invests of incumbents Main payment providers modernized there operations and infrastructure to support new product offerings and new technologies in order to generate new revenue sources
Boosted competition New entrants especially Big Techs have changed the dynamics in the industry as businesses and consumers shift from cash to digital payment methods ndash Apple as a game-changer
Consolidations The payments market is undergoing an unprecedented wave of consolidation with intensive MampA in payment services related to acquiring and broader merchant servicing
Global non-cash transactions (trillions)
67 102 152 185124 130145
161 168104 126
150183
206
2013
539
3539
29
2015
43
2017
46
2018
358436
605
2011
306
50
CAGR 102
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
17
Payment MarketGlobal Payment Market Development
Global payments revenue is expected to grow to about $27 trillion by 2022
Projected global non-cash transactions
020305
09
2018
030507
12
19
2022
27
CAGR 72
North AmericaLatin America EMEA APAC
Projected global payment revenues(USD trillions)
The future of payments
Continuous development from cash to electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions and the demand in rich payment solutions is expected to generate additional $18 trillion in revenues by 2022The APAC region especially China is expected to grow by gt30 from 2018 to 2022 reaching $12 trillion in revenues
Consolidation process is expected to continue to gain momentum in the current economic situation with interest rates being down creating large international players
Fostered by regulators contactless penetration is set to bring mobile in-store solutions to prominence in the coming years
Projected payment revenues by region(USD trillions)
185443168
202206
343
46
2018 2022
605
581045
CAGR 146
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
Green technology is expected to increase in importance in the coming years with a focus on sustainable energy supply for data centers and production of terminals general waste reduction etc
Technology is rapidly changing the entire payment industry ecosystem The move away from cash towards electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions demand for instant cross-border payment solutions increasing data protection demands and cyber risks foster technological advancements
18
Payment MarketImpact of COVID-19 on Payments
Impact of COVID-19 pandemic on payments
bull Significant decrease of global payment-revenue with negative growthbull Most affected industries Hospitality and tourism retail airlines events hotels restaurants But also some
segments can benefit from the crisis like E-Commerce gardenflower-retail food delivery service supermarkets
bull Acceleration of cash displacement towards contactless payment infrastructure and migration to terminals without pin-pads
Short term
Mid Long term
29 Countries have raised contatless payment limits
Contactless payment limits
30More planned online shopping of current online-shoppers
Increasing e-com sales Declining in travel
88Drop of number of passengers traveling at EU airports
Decline x-border payments
58Cross-border transaction flow decline
bull Accelerated shift from POS to E-Commercebull Shift in consumer behavior will lead in an accelerated growth for card based payments at POSbull Self-checkout or ldquoorder amp collectrdquo solutions gaining popularity pre-crisis contactless payment
cards with increasing penetrationbull Expected uptake in regional travel on the back of certain international travel (eg cruises)
shifting spending patterns and revenue opportunities Proven effectiveness of virtual meetings reducing business travel expected This lead in a lasting drop for some segments like Airlines Hotels Events hitting their business model and in less cross boarder transactions
In mid-term payments can profit from the corona crises but in a shift in customer-industries infrastructure-equipment and channels
Strategic Marketsbull US and Europe to focus onbull Organic growth supported by tec-driven solutionsbull Inorganic growth address targets with complementary
capabilities
02Products Customers
01
bull Densified value chainbull Technical development of in-house solutionsbull Focus on customers not adequately served
resulting from mega-mergers
bull Seek funding for accelerated growthbull Foster sales and marketing capabilitiesbull Reach critical market share to capitalize on
necessary infrastructure investmentsbull Reduce dependencies from external providers bull Increase control along the value chain to
maximize client stickinessbull Get own licenses (authority and schemes)
Among strategic options the fully integrated E2E payment provider seems most attractive
Fully integrated End2End Provider
White Label processing
AS IS POINT OF DEPARTURE
SECENARIOPOINT OF ARRIVAL
Among the strategic options the fully integrated End2End payment provider seems most attractive one
Beeing a truly fully service provider by means offering Processing Acquiring Issuing and NSPPSP out of one hand at the front- and back-end seems the most future-prooven strategy which also allows the
maximum customer-monetarization and high degree of merchant stickiness
23
Strategic Planning Strategic Choice
Fully integrated End2End payment provider ndash Strategy is based on focussing toward merchant with an integrated proposition delivered by inhouse-capacities belong the entire value chain
Customer Segment
Product Portfolio
Distribution amp Go-to-market
Market (geopraphy)
From Towards Out of scope
bull All kinds of industries bull All merchant sizes bull Focus Omni-channel customer
bull Focus on marktes EU and US
bull Banks bull Espacially Key Account
merchants
bull Serving all markets with same prioriry
bull Intergated multi sales channel offering via own salesforce
Truly global amp fully integrated E2E digital omnimulti-channel payment service provider
Deliver all payment services out of one hand worldwide scalable and agile solutions combined with best in class customer service ndash We empower Financial Service Provider amp merchants to benefit from
digitalization of payment and on-us processing
Our ambition is to become a fully integrated digital omnimulti-channel payment service provider ndash simple innovative targeted to consumer demands and with global reach
Vision
Mission
26
Cornerstones of RS2 Group-Strategy
Five pillars will drive the strategy to build an integrated omni-channel service provider
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
2) The IFRS conversion had a positiv impact of meuro 37 on net income
250
193221
2018 ACT 2018 adj 2019 ACT
Revenues
-44 -44
-48
2018 ACT 2018 adj 2019 ACT
Cash Flow
32
-05
-322018 ACT 2018 adj 2019 ACT
Net Profit
79
22
-02
2018 ACT 2018 adj 2019 ACT
EBITDA
1)
1)
2)
in eurom
31
Revenue by business lines 2018 vs 2019
Shift revenue into new business lines
155 136
38 85
2018 2019
Licensing Processing Acquiring
193
221
+127
-12
80
20
2018
62
38
2019
Deversifing of business linesGrowth due to enhanched product portfolio
In meuro
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
32
Revenue and EBITDA by legal entities
162 188
38 49
43 05
07 18
02
2018 2019
Revenues
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
+12
- 14
221
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
- 12
44 37
08 05
(28)(42)
(00)
02 03
(01) (01)
2018 2019
EBITDA
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
- 24 meuro
22In meuro
205
193 inter-company- 86
307 - 0123
- 02- 06
04
33
In million euro 2018 2018 2019 delta
adj
Revenue 250 193 221 28
Cost of sales (126) (126) (151) (25)
Gross profit 124 67 70 03
Marketing and promotional expenses (10) (10) (19) (08)
Administrative expenses (50) (50) (70) (21)
Other income expenses 02 02 (01) (03)
Results from operating activities 66 09 (20) (29)
Financial result (00) (00) (01) (01)
(Loss)Profit before income tax 66 09 (21) (30)
Income tax expense (33) (14) (11) 03
(Loss)Profit for the year 32 (05) (32) (27)
(Loss)Earnings per share 0022 (0002) (0008) (0006)
PampL 2018 and 2019
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
The IFRS conversion had a positiv impact of meuro 37 on net income
1)
Investments into marketing management and the integration of RS2 Germany
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
34
In million euro 2018 2019 delta
Assets
Property plant and equipment 94 92 (01)
Right-of-use assets 00 26 26
Intangible assets and goodwill 75 90 15
Other investment 10 10 00
Total non-current assets 179 217 39
Trade and other receivables 16 43 28
Accrued income and prepayments 52 33 (18)
Cash at bank and in hand 34 24 (10)
Total current assets 101 101 (00)
Total assets 280 318 38
Equity and Liabilities
Equity 172 141 (31)
Total non-current liabilities 42 67 24
Total current liabilities 65 111 45
Total liabilities 107 177 70
Total equity and liabilities 280 318 38
Balance Sheet 2018 and 2019
Mainly new bank borrowings to finance the US and Europen extended product portfolio
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
35
Cash Flow Statement 2018 and 2019
In million euro 2018 2019 delta
Cash flows from operating activities 13 (11) (24)
Cash flows from investing activities (21) (27) (05)
Cash flows from financing activities (35) 28 63
Net decrease in cash and cash equivalents (44) (10) 34
Cash and cash equivalents at 1 January 78 34 (44)
Effect of exchange rate fluctuations on cash held (00) 00 00
Cash and cash equivalents at 31 December 34 24 (10)
Invest in marketing and high qualified stuff to ensure growth
Financing future growth- 2019 new bank borrowings - 2018 repayment of bank
borrowings and dividend payment
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Thank you
together beyond payments
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PampL
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
1141695
2422211
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
PampL
In million euro
2018
2018
2019
delta
adj
Revenue
250
193
221
28
Cost of sales
(126)
(126)
(151)
(25)
Gross profit
124
67
70
03
Marketing and promotional expenses
(10)
(10)
(19)
(08)
Administrative expenses
(50)
(50)
(70)
(21)
Other income expenses
02
02
(01)
(03)
Results from operating activities
66
09
(20)
(29)
Financial result
(00)
(00)
(01)
(01)
(Loss)Profit before income tax
66
09
(21)
(30)
Income tax expense
(33)
(14)
(11)
03
(Loss)Profit for the year
32
(05)
(32)
(27)
(Loss)Earnings per share
0022
(0002)
(0008)
(0006)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
Implementation of Grouplsquos succesful strategyExecution of strategic milestones resulting in international growth and expansion
Expanding our business globally into APAC LATAM Europe MEA and North America
Increase of our customer base
Winning significant and strategic deals in Europe US and LATAM
Increase of processing volumes of our Managed Services business
Starting of our third business line Direct Acquiring in Europe and LATAM
Application for Financial Institution License
Enhancing our platform by adding new tools
Strengthen our position in the market as one of leading providers of global omni-
channel payment services
5
Highlights 2019
EuropeStarting of our Direct Acquiring business
Application for our Financial Institution licence in Germany
bull Acquiring payment services
bull Issuing of payment instruments
bull Payment initiation services
bull Money remittance services
Acquisition of KALICOM Liebers Zahlungssysteme GmbH for full merchant offerings
bull Immediate capabilities of selling installing servicing terminals and processing card transactions
Preparation to launch the services with our Alliance partner for the travel industry
Sponsorship to launch our white-label Acquiring Solution
Setting up the team and the infrastructure in preparation of the Financial Institution licence
Click to edit Master title style
6
Highlights 2019
North America
Well-positioned as Service Provider
Significant and strategic agreement with one of the top three large US Acquirer as
Managed Service client
First US client went live
Two clients have been boarded to go live
Signing of three ISOlsquos ready to be launced 2020
Continuous expansion by increasing the staff compliment and building infrastructure
for the processing clients
7
Highlights 2019
LATAM
Increase of services to our current customers in Brazil Argentina and Colombia
Partnership with MOViiRED to offer Direct Acquiring and Issuing
bull Leading challenger bank
bull MOVii has a strong base of 60000 POS terminals
bull 15 million client transactions per month
Expanding with current Managed Services client into other countries within the
region
Expanding with current Licenced clients by consolidating their entire cross -regional
business on the platform
8
Highlights 2019
APAC
Increase of services to our current customers both for Licenced and Managed
Services in several countries in the region
Preparation of Group wide services (Chargeback Call Center services)
Delivering payment as a service for issuing and acquiring to financial institutions of
any size and offering term licences for issuing and acquiring to large international
banks
Significant and strategic agreements in different industries
9
Executive Summary
Key highlights of RS2 amp RS2rsquos growth strategy
Solid financial base and market out-performance
Highly attractive industry
Strong market momentum
Clear Strategy for accelerated growth
Comprehensive technical solution1
2
3
4
5
bull RS2 is one of the only providers to offer a global omnimulti-channel platformbull 30 years market experience Worldwide presence with blue chip customer portfoliobull Uniquely positioned for global customers to process international amp local payment
bull Healthy financial positionbull Solid and prime long-term oriented shareholder-structurebull Over last years RS2 significantly outperformed the stock market
bull Double digit market growth in payment over last yearsbull Digitalization drives innovation and disruption and offers new revenue streamsbull Future tailwind is coming from consumer behavior regulation and digitalization
bull Consolidation process offers opportunities both for organic and inorganic growthbull Influence of leading-edge technology increases software is a crucial advantagebull High liquidity and cheap re-financing allow significant investments
relating to the Transaction Please detail any anticipated timetable constraints that you foresee regarding completion of the Transaction Jens
bull Future-driven strategy around the big opportunities in the payments-industry bull Ambition to become a full integrated digital omni-multi-channel payment provider bull Developed a clear strategic roadmap to implement strategy and to maintain focus
bull Founded in 1988 and headquartered in Malta RS2 Software develops software and managed services for card payment processing to banks and other Financial Institutions
bull The company operates in three segments
o Licensing engaged in licensing of the Companyrsquos BankWORKS software to banks and service providers including maintenance and services thereto
o Processing segment is involved in processing of payment transactions utilizing its BankWORKS software
o Merchant service New business-line to take next step in the payment value chain Solution is to directly serve merchants for acquiring and issuing solutions
bull RS2 has steadily significantly outperformed the market Shareholder returns over the last 5 years amount to gt250
bull Current market capitalization euro452m (as of 07-10-20)
Oct 19July 19 Aug 19 Feb 20Dec 19 April 20 July 20
Max euro256
Min euro159
Mar
ket s
hare
pri
ce
Company description Stock price development
Comparative return analysis
Act euro234
12
Internal Analysis of RS2 Organization
Overview about the RS2 GroupRS2 Software Plc
Mosta MLT~270 Employees
Holding Software development licensing
RS2 Germany GmbH
Neu-Isenburg GER~ 14 employees
Service provider for software Plc product mgt implementation
RS2 Merchant Services Europe GmbH
Neu-Isenburg GER0 employees
Holding for merchant business in Europe
RS2 Smart Processing Ltd
Mosta MLT~25 Employees
Processing-business for FI globally wo US
RS2 Software LAC LTDA
Sao Paulo BRA~ 1 employees
Sales amp service office for Latin America
RS2 Software APAC
Metro Manila PHL~22 employees
Sales for Software Plc amp Processing Ltd vice versa
service center for both
RS2 Software Inc
Denver USA ~35 employees
Processing for US Sub-Licensing for Key
Accounts
RS2 Financial Services GmbH
Neu-Isenburg GER~8 employees
Acquiring business E-Money for Europe
Kalicom Zahlungssysteme
GmbH
Neu-Isenburg GER~ 8 employees
ISO for Germany (Sales Service NSP)
100 100 9992 99 9999 6420
100 100
13
Internal Analysis of RS2 Organization
Employment statistics
Employee nationality and work location Employee development 2014 to 2019
59
9
7
7
15
4
Nationality Work location
73
9
75 4
2
No of employees by tenure in years (2019)
135116
71
28 17
gt 152 to 5lt 2 5 to 10 10 to 15
144188 217 244
282
368
201920182014 2015 2016 2017
CAGR +21
AmericanMaltese German
JordanPhilippines
Other USAMalta not defined Germany
Philippines Other
Competences
Management
IT amp Product Management
Customer
Back Office amp Administration
4
68
2
2
24
Sales amp Marketing
Back Office amp Operations
Customer Service
IT amp Product Management
Management
Competences
14
Internal Analysis of RS2 USPs
Unique Selling Points and Value Proposition overview of key differentiators
Omni ChannelTrue omni-channel covering all payment sources (online offline
mobile)
ScalableCloud-based solution linearly scalable with no lead-time for
infrastructure upgrade
One Global PlatformGlobal state of the art solution
and global coverage instant and real time payments
Reliable performanceRobust 9999 availability and
high performance engine
API enabledSingle platform with single API
integration ndash one source code for SMEs and large Enterprises
Highly ConfigurableConfigurable by client region currency business type and
channel
Customer experienceHigh integration over the payment
merchant and partner portal global reconciliation FX
bull RS2 is one of the only providers worldwide to offer global omnichannel payment services through a single integration to its cloud platform
bull RS2 is uniquely positioned to enable global customers to process both international and local payments
bull RS2 provides customers with a single view of their transactions through consolidated reporting and the reconciliation of their entire businesses across currencies and languages
bull It has a highly flexible platform allowing customers quicker time to market through a single API integration
Five main trends for opportunities and challenges in the payment ecosystem
Global payment revenues by region(USD trillions)
Market trends
02
2018
04
16
03
02
06
0103
2015
05
2011
0103
03
04
07
05
08
2017
0218
05
09
13 1419
2013
03
04
CAGR 56
Latin America EMEA North America APAC
Regulatory environment The EU has developed a comprehensive legislative payment framework aimed at keeping pace with the rapid evolution of the industry as well as preserve financial stability while creating a more competitive payment system (PSD2) and ICF regulation
Dynamic market growth Non-cash transactions grew by 12 globally during 2018 Asia and CEMEA growing by 20-30 Drivers are mobile payments contactless payments and shift to e-commerce
Technology invests of incumbents Main payment providers modernized there operations and infrastructure to support new product offerings and new technologies in order to generate new revenue sources
Boosted competition New entrants especially Big Techs have changed the dynamics in the industry as businesses and consumers shift from cash to digital payment methods ndash Apple as a game-changer
Consolidations The payments market is undergoing an unprecedented wave of consolidation with intensive MampA in payment services related to acquiring and broader merchant servicing
Global non-cash transactions (trillions)
67 102 152 185124 130145
161 168104 126
150183
206
2013
539
3539
29
2015
43
2017
46
2018
358436
605
2011
306
50
CAGR 102
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
17
Payment MarketGlobal Payment Market Development
Global payments revenue is expected to grow to about $27 trillion by 2022
Projected global non-cash transactions
020305
09
2018
030507
12
19
2022
27
CAGR 72
North AmericaLatin America EMEA APAC
Projected global payment revenues(USD trillions)
The future of payments
Continuous development from cash to electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions and the demand in rich payment solutions is expected to generate additional $18 trillion in revenues by 2022The APAC region especially China is expected to grow by gt30 from 2018 to 2022 reaching $12 trillion in revenues
Consolidation process is expected to continue to gain momentum in the current economic situation with interest rates being down creating large international players
Fostered by regulators contactless penetration is set to bring mobile in-store solutions to prominence in the coming years
Projected payment revenues by region(USD trillions)
185443168
202206
343
46
2018 2022
605
581045
CAGR 146
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
Green technology is expected to increase in importance in the coming years with a focus on sustainable energy supply for data centers and production of terminals general waste reduction etc
Technology is rapidly changing the entire payment industry ecosystem The move away from cash towards electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions demand for instant cross-border payment solutions increasing data protection demands and cyber risks foster technological advancements
18
Payment MarketImpact of COVID-19 on Payments
Impact of COVID-19 pandemic on payments
bull Significant decrease of global payment-revenue with negative growthbull Most affected industries Hospitality and tourism retail airlines events hotels restaurants But also some
segments can benefit from the crisis like E-Commerce gardenflower-retail food delivery service supermarkets
bull Acceleration of cash displacement towards contactless payment infrastructure and migration to terminals without pin-pads
Short term
Mid Long term
29 Countries have raised contatless payment limits
Contactless payment limits
30More planned online shopping of current online-shoppers
Increasing e-com sales Declining in travel
88Drop of number of passengers traveling at EU airports
Decline x-border payments
58Cross-border transaction flow decline
bull Accelerated shift from POS to E-Commercebull Shift in consumer behavior will lead in an accelerated growth for card based payments at POSbull Self-checkout or ldquoorder amp collectrdquo solutions gaining popularity pre-crisis contactless payment
cards with increasing penetrationbull Expected uptake in regional travel on the back of certain international travel (eg cruises)
shifting spending patterns and revenue opportunities Proven effectiveness of virtual meetings reducing business travel expected This lead in a lasting drop for some segments like Airlines Hotels Events hitting their business model and in less cross boarder transactions
In mid-term payments can profit from the corona crises but in a shift in customer-industries infrastructure-equipment and channels
Strategic Marketsbull US and Europe to focus onbull Organic growth supported by tec-driven solutionsbull Inorganic growth address targets with complementary
capabilities
02Products Customers
01
bull Densified value chainbull Technical development of in-house solutionsbull Focus on customers not adequately served
resulting from mega-mergers
bull Seek funding for accelerated growthbull Foster sales and marketing capabilitiesbull Reach critical market share to capitalize on
necessary infrastructure investmentsbull Reduce dependencies from external providers bull Increase control along the value chain to
maximize client stickinessbull Get own licenses (authority and schemes)
Among strategic options the fully integrated E2E payment provider seems most attractive
Fully integrated End2End Provider
White Label processing
AS IS POINT OF DEPARTURE
SECENARIOPOINT OF ARRIVAL
Among the strategic options the fully integrated End2End payment provider seems most attractive one
Beeing a truly fully service provider by means offering Processing Acquiring Issuing and NSPPSP out of one hand at the front- and back-end seems the most future-prooven strategy which also allows the
maximum customer-monetarization and high degree of merchant stickiness
23
Strategic Planning Strategic Choice
Fully integrated End2End payment provider ndash Strategy is based on focussing toward merchant with an integrated proposition delivered by inhouse-capacities belong the entire value chain
Customer Segment
Product Portfolio
Distribution amp Go-to-market
Market (geopraphy)
From Towards Out of scope
bull All kinds of industries bull All merchant sizes bull Focus Omni-channel customer
bull Focus on marktes EU and US
bull Banks bull Espacially Key Account
merchants
bull Serving all markets with same prioriry
bull Intergated multi sales channel offering via own salesforce
Truly global amp fully integrated E2E digital omnimulti-channel payment service provider
Deliver all payment services out of one hand worldwide scalable and agile solutions combined with best in class customer service ndash We empower Financial Service Provider amp merchants to benefit from
digitalization of payment and on-us processing
Our ambition is to become a fully integrated digital omnimulti-channel payment service provider ndash simple innovative targeted to consumer demands and with global reach
Vision
Mission
26
Cornerstones of RS2 Group-Strategy
Five pillars will drive the strategy to build an integrated omni-channel service provider
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
2) The IFRS conversion had a positiv impact of meuro 37 on net income
250
193221
2018 ACT 2018 adj 2019 ACT
Revenues
-44 -44
-48
2018 ACT 2018 adj 2019 ACT
Cash Flow
32
-05
-322018 ACT 2018 adj 2019 ACT
Net Profit
79
22
-02
2018 ACT 2018 adj 2019 ACT
EBITDA
1)
1)
2)
in eurom
31
Revenue by business lines 2018 vs 2019
Shift revenue into new business lines
155 136
38 85
2018 2019
Licensing Processing Acquiring
193
221
+127
-12
80
20
2018
62
38
2019
Deversifing of business linesGrowth due to enhanched product portfolio
In meuro
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
32
Revenue and EBITDA by legal entities
162 188
38 49
43 05
07 18
02
2018 2019
Revenues
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
+12
- 14
221
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
- 12
44 37
08 05
(28)(42)
(00)
02 03
(01) (01)
2018 2019
EBITDA
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
- 24 meuro
22In meuro
205
193 inter-company- 86
307 - 0123
- 02- 06
04
33
In million euro 2018 2018 2019 delta
adj
Revenue 250 193 221 28
Cost of sales (126) (126) (151) (25)
Gross profit 124 67 70 03
Marketing and promotional expenses (10) (10) (19) (08)
Administrative expenses (50) (50) (70) (21)
Other income expenses 02 02 (01) (03)
Results from operating activities 66 09 (20) (29)
Financial result (00) (00) (01) (01)
(Loss)Profit before income tax 66 09 (21) (30)
Income tax expense (33) (14) (11) 03
(Loss)Profit for the year 32 (05) (32) (27)
(Loss)Earnings per share 0022 (0002) (0008) (0006)
PampL 2018 and 2019
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
The IFRS conversion had a positiv impact of meuro 37 on net income
1)
Investments into marketing management and the integration of RS2 Germany
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
34
In million euro 2018 2019 delta
Assets
Property plant and equipment 94 92 (01)
Right-of-use assets 00 26 26
Intangible assets and goodwill 75 90 15
Other investment 10 10 00
Total non-current assets 179 217 39
Trade and other receivables 16 43 28
Accrued income and prepayments 52 33 (18)
Cash at bank and in hand 34 24 (10)
Total current assets 101 101 (00)
Total assets 280 318 38
Equity and Liabilities
Equity 172 141 (31)
Total non-current liabilities 42 67 24
Total current liabilities 65 111 45
Total liabilities 107 177 70
Total equity and liabilities 280 318 38
Balance Sheet 2018 and 2019
Mainly new bank borrowings to finance the US and Europen extended product portfolio
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
35
Cash Flow Statement 2018 and 2019
In million euro 2018 2019 delta
Cash flows from operating activities 13 (11) (24)
Cash flows from investing activities (21) (27) (05)
Cash flows from financing activities (35) 28 63
Net decrease in cash and cash equivalents (44) (10) 34
Cash and cash equivalents at 1 January 78 34 (44)
Effect of exchange rate fluctuations on cash held (00) 00 00
Cash and cash equivalents at 31 December 34 24 (10)
Invest in marketing and high qualified stuff to ensure growth
Financing future growth- 2019 new bank borrowings - 2018 repayment of bank
borrowings and dividend payment
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Thank you
together beyond payments
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PampL
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
1141695
2422211
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
PampL
In million euro
2018
2018
2019
delta
adj
Revenue
250
193
221
28
Cost of sales
(126)
(126)
(151)
(25)
Gross profit
124
67
70
03
Marketing and promotional expenses
(10)
(10)
(19)
(08)
Administrative expenses
(50)
(50)
(70)
(21)
Other income expenses
02
02
(01)
(03)
Results from operating activities
66
09
(20)
(29)
Financial result
(00)
(00)
(01)
(01)
(Loss)Profit before income tax
66
09
(21)
(30)
Income tax expense
(33)
(14)
(11)
03
(Loss)Profit for the year
32
(05)
(32)
(27)
(Loss)Earnings per share
0022
(0002)
(0008)
(0006)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
Implementation of Grouplsquos succesful strategyExecution of strategic milestones resulting in international growth and expansion
Expanding our business globally into APAC LATAM Europe MEA and North America
Increase of our customer base
Winning significant and strategic deals in Europe US and LATAM
Increase of processing volumes of our Managed Services business
Starting of our third business line Direct Acquiring in Europe and LATAM
Application for Financial Institution License
Enhancing our platform by adding new tools
Strengthen our position in the market as one of leading providers of global omni-
channel payment services
5
Highlights 2019
EuropeStarting of our Direct Acquiring business
Application for our Financial Institution licence in Germany
bull Acquiring payment services
bull Issuing of payment instruments
bull Payment initiation services
bull Money remittance services
Acquisition of KALICOM Liebers Zahlungssysteme GmbH for full merchant offerings
bull Immediate capabilities of selling installing servicing terminals and processing card transactions
Preparation to launch the services with our Alliance partner for the travel industry
Sponsorship to launch our white-label Acquiring Solution
Setting up the team and the infrastructure in preparation of the Financial Institution licence
Click to edit Master title style
6
Highlights 2019
North America
Well-positioned as Service Provider
Significant and strategic agreement with one of the top three large US Acquirer as
Managed Service client
First US client went live
Two clients have been boarded to go live
Signing of three ISOlsquos ready to be launced 2020
Continuous expansion by increasing the staff compliment and building infrastructure
for the processing clients
7
Highlights 2019
LATAM
Increase of services to our current customers in Brazil Argentina and Colombia
Partnership with MOViiRED to offer Direct Acquiring and Issuing
bull Leading challenger bank
bull MOVii has a strong base of 60000 POS terminals
bull 15 million client transactions per month
Expanding with current Managed Services client into other countries within the
region
Expanding with current Licenced clients by consolidating their entire cross -regional
business on the platform
8
Highlights 2019
APAC
Increase of services to our current customers both for Licenced and Managed
Services in several countries in the region
Preparation of Group wide services (Chargeback Call Center services)
Delivering payment as a service for issuing and acquiring to financial institutions of
any size and offering term licences for issuing and acquiring to large international
banks
Significant and strategic agreements in different industries
9
Executive Summary
Key highlights of RS2 amp RS2rsquos growth strategy
Solid financial base and market out-performance
Highly attractive industry
Strong market momentum
Clear Strategy for accelerated growth
Comprehensive technical solution1
2
3
4
5
bull RS2 is one of the only providers to offer a global omnimulti-channel platformbull 30 years market experience Worldwide presence with blue chip customer portfoliobull Uniquely positioned for global customers to process international amp local payment
bull Healthy financial positionbull Solid and prime long-term oriented shareholder-structurebull Over last years RS2 significantly outperformed the stock market
bull Double digit market growth in payment over last yearsbull Digitalization drives innovation and disruption and offers new revenue streamsbull Future tailwind is coming from consumer behavior regulation and digitalization
bull Consolidation process offers opportunities both for organic and inorganic growthbull Influence of leading-edge technology increases software is a crucial advantagebull High liquidity and cheap re-financing allow significant investments
relating to the Transaction Please detail any anticipated timetable constraints that you foresee regarding completion of the Transaction Jens
bull Future-driven strategy around the big opportunities in the payments-industry bull Ambition to become a full integrated digital omni-multi-channel payment provider bull Developed a clear strategic roadmap to implement strategy and to maintain focus
bull Founded in 1988 and headquartered in Malta RS2 Software develops software and managed services for card payment processing to banks and other Financial Institutions
bull The company operates in three segments
o Licensing engaged in licensing of the Companyrsquos BankWORKS software to banks and service providers including maintenance and services thereto
o Processing segment is involved in processing of payment transactions utilizing its BankWORKS software
o Merchant service New business-line to take next step in the payment value chain Solution is to directly serve merchants for acquiring and issuing solutions
bull RS2 has steadily significantly outperformed the market Shareholder returns over the last 5 years amount to gt250
bull Current market capitalization euro452m (as of 07-10-20)
Oct 19July 19 Aug 19 Feb 20Dec 19 April 20 July 20
Max euro256
Min euro159
Mar
ket s
hare
pri
ce
Company description Stock price development
Comparative return analysis
Act euro234
12
Internal Analysis of RS2 Organization
Overview about the RS2 GroupRS2 Software Plc
Mosta MLT~270 Employees
Holding Software development licensing
RS2 Germany GmbH
Neu-Isenburg GER~ 14 employees
Service provider for software Plc product mgt implementation
RS2 Merchant Services Europe GmbH
Neu-Isenburg GER0 employees
Holding for merchant business in Europe
RS2 Smart Processing Ltd
Mosta MLT~25 Employees
Processing-business for FI globally wo US
RS2 Software LAC LTDA
Sao Paulo BRA~ 1 employees
Sales amp service office for Latin America
RS2 Software APAC
Metro Manila PHL~22 employees
Sales for Software Plc amp Processing Ltd vice versa
service center for both
RS2 Software Inc
Denver USA ~35 employees
Processing for US Sub-Licensing for Key
Accounts
RS2 Financial Services GmbH
Neu-Isenburg GER~8 employees
Acquiring business E-Money for Europe
Kalicom Zahlungssysteme
GmbH
Neu-Isenburg GER~ 8 employees
ISO for Germany (Sales Service NSP)
100 100 9992 99 9999 6420
100 100
13
Internal Analysis of RS2 Organization
Employment statistics
Employee nationality and work location Employee development 2014 to 2019
59
9
7
7
15
4
Nationality Work location
73
9
75 4
2
No of employees by tenure in years (2019)
135116
71
28 17
gt 152 to 5lt 2 5 to 10 10 to 15
144188 217 244
282
368
201920182014 2015 2016 2017
CAGR +21
AmericanMaltese German
JordanPhilippines
Other USAMalta not defined Germany
Philippines Other
Competences
Management
IT amp Product Management
Customer
Back Office amp Administration
4
68
2
2
24
Sales amp Marketing
Back Office amp Operations
Customer Service
IT amp Product Management
Management
Competences
14
Internal Analysis of RS2 USPs
Unique Selling Points and Value Proposition overview of key differentiators
Omni ChannelTrue omni-channel covering all payment sources (online offline
mobile)
ScalableCloud-based solution linearly scalable with no lead-time for
infrastructure upgrade
One Global PlatformGlobal state of the art solution
and global coverage instant and real time payments
Reliable performanceRobust 9999 availability and
high performance engine
API enabledSingle platform with single API
integration ndash one source code for SMEs and large Enterprises
Highly ConfigurableConfigurable by client region currency business type and
channel
Customer experienceHigh integration over the payment
merchant and partner portal global reconciliation FX
bull RS2 is one of the only providers worldwide to offer global omnichannel payment services through a single integration to its cloud platform
bull RS2 is uniquely positioned to enable global customers to process both international and local payments
bull RS2 provides customers with a single view of their transactions through consolidated reporting and the reconciliation of their entire businesses across currencies and languages
bull It has a highly flexible platform allowing customers quicker time to market through a single API integration
Five main trends for opportunities and challenges in the payment ecosystem
Global payment revenues by region(USD trillions)
Market trends
02
2018
04
16
03
02
06
0103
2015
05
2011
0103
03
04
07
05
08
2017
0218
05
09
13 1419
2013
03
04
CAGR 56
Latin America EMEA North America APAC
Regulatory environment The EU has developed a comprehensive legislative payment framework aimed at keeping pace with the rapid evolution of the industry as well as preserve financial stability while creating a more competitive payment system (PSD2) and ICF regulation
Dynamic market growth Non-cash transactions grew by 12 globally during 2018 Asia and CEMEA growing by 20-30 Drivers are mobile payments contactless payments and shift to e-commerce
Technology invests of incumbents Main payment providers modernized there operations and infrastructure to support new product offerings and new technologies in order to generate new revenue sources
Boosted competition New entrants especially Big Techs have changed the dynamics in the industry as businesses and consumers shift from cash to digital payment methods ndash Apple as a game-changer
Consolidations The payments market is undergoing an unprecedented wave of consolidation with intensive MampA in payment services related to acquiring and broader merchant servicing
Global non-cash transactions (trillions)
67 102 152 185124 130145
161 168104 126
150183
206
2013
539
3539
29
2015
43
2017
46
2018
358436
605
2011
306
50
CAGR 102
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
17
Payment MarketGlobal Payment Market Development
Global payments revenue is expected to grow to about $27 trillion by 2022
Projected global non-cash transactions
020305
09
2018
030507
12
19
2022
27
CAGR 72
North AmericaLatin America EMEA APAC
Projected global payment revenues(USD trillions)
The future of payments
Continuous development from cash to electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions and the demand in rich payment solutions is expected to generate additional $18 trillion in revenues by 2022The APAC region especially China is expected to grow by gt30 from 2018 to 2022 reaching $12 trillion in revenues
Consolidation process is expected to continue to gain momentum in the current economic situation with interest rates being down creating large international players
Fostered by regulators contactless penetration is set to bring mobile in-store solutions to prominence in the coming years
Projected payment revenues by region(USD trillions)
185443168
202206
343
46
2018 2022
605
581045
CAGR 146
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
Green technology is expected to increase in importance in the coming years with a focus on sustainable energy supply for data centers and production of terminals general waste reduction etc
Technology is rapidly changing the entire payment industry ecosystem The move away from cash towards electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions demand for instant cross-border payment solutions increasing data protection demands and cyber risks foster technological advancements
18
Payment MarketImpact of COVID-19 on Payments
Impact of COVID-19 pandemic on payments
bull Significant decrease of global payment-revenue with negative growthbull Most affected industries Hospitality and tourism retail airlines events hotels restaurants But also some
segments can benefit from the crisis like E-Commerce gardenflower-retail food delivery service supermarkets
bull Acceleration of cash displacement towards contactless payment infrastructure and migration to terminals without pin-pads
Short term
Mid Long term
29 Countries have raised contatless payment limits
Contactless payment limits
30More planned online shopping of current online-shoppers
Increasing e-com sales Declining in travel
88Drop of number of passengers traveling at EU airports
Decline x-border payments
58Cross-border transaction flow decline
bull Accelerated shift from POS to E-Commercebull Shift in consumer behavior will lead in an accelerated growth for card based payments at POSbull Self-checkout or ldquoorder amp collectrdquo solutions gaining popularity pre-crisis contactless payment
cards with increasing penetrationbull Expected uptake in regional travel on the back of certain international travel (eg cruises)
shifting spending patterns and revenue opportunities Proven effectiveness of virtual meetings reducing business travel expected This lead in a lasting drop for some segments like Airlines Hotels Events hitting their business model and in less cross boarder transactions
In mid-term payments can profit from the corona crises but in a shift in customer-industries infrastructure-equipment and channels
Strategic Marketsbull US and Europe to focus onbull Organic growth supported by tec-driven solutionsbull Inorganic growth address targets with complementary
capabilities
02Products Customers
01
bull Densified value chainbull Technical development of in-house solutionsbull Focus on customers not adequately served
resulting from mega-mergers
bull Seek funding for accelerated growthbull Foster sales and marketing capabilitiesbull Reach critical market share to capitalize on
necessary infrastructure investmentsbull Reduce dependencies from external providers bull Increase control along the value chain to
maximize client stickinessbull Get own licenses (authority and schemes)
Among strategic options the fully integrated E2E payment provider seems most attractive
Fully integrated End2End Provider
White Label processing
AS IS POINT OF DEPARTURE
SECENARIOPOINT OF ARRIVAL
Among the strategic options the fully integrated End2End payment provider seems most attractive one
Beeing a truly fully service provider by means offering Processing Acquiring Issuing and NSPPSP out of one hand at the front- and back-end seems the most future-prooven strategy which also allows the
maximum customer-monetarization and high degree of merchant stickiness
23
Strategic Planning Strategic Choice
Fully integrated End2End payment provider ndash Strategy is based on focussing toward merchant with an integrated proposition delivered by inhouse-capacities belong the entire value chain
Customer Segment
Product Portfolio
Distribution amp Go-to-market
Market (geopraphy)
From Towards Out of scope
bull All kinds of industries bull All merchant sizes bull Focus Omni-channel customer
bull Focus on marktes EU and US
bull Banks bull Espacially Key Account
merchants
bull Serving all markets with same prioriry
bull Intergated multi sales channel offering via own salesforce
Truly global amp fully integrated E2E digital omnimulti-channel payment service provider
Deliver all payment services out of one hand worldwide scalable and agile solutions combined with best in class customer service ndash We empower Financial Service Provider amp merchants to benefit from
digitalization of payment and on-us processing
Our ambition is to become a fully integrated digital omnimulti-channel payment service provider ndash simple innovative targeted to consumer demands and with global reach
Vision
Mission
26
Cornerstones of RS2 Group-Strategy
Five pillars will drive the strategy to build an integrated omni-channel service provider
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
2) The IFRS conversion had a positiv impact of meuro 37 on net income
250
193221
2018 ACT 2018 adj 2019 ACT
Revenues
-44 -44
-48
2018 ACT 2018 adj 2019 ACT
Cash Flow
32
-05
-322018 ACT 2018 adj 2019 ACT
Net Profit
79
22
-02
2018 ACT 2018 adj 2019 ACT
EBITDA
1)
1)
2)
in eurom
31
Revenue by business lines 2018 vs 2019
Shift revenue into new business lines
155 136
38 85
2018 2019
Licensing Processing Acquiring
193
221
+127
-12
80
20
2018
62
38
2019
Deversifing of business linesGrowth due to enhanched product portfolio
In meuro
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
32
Revenue and EBITDA by legal entities
162 188
38 49
43 05
07 18
02
2018 2019
Revenues
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
+12
- 14
221
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
- 12
44 37
08 05
(28)(42)
(00)
02 03
(01) (01)
2018 2019
EBITDA
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
- 24 meuro
22In meuro
205
193 inter-company- 86
307 - 0123
- 02- 06
04
33
In million euro 2018 2018 2019 delta
adj
Revenue 250 193 221 28
Cost of sales (126) (126) (151) (25)
Gross profit 124 67 70 03
Marketing and promotional expenses (10) (10) (19) (08)
Administrative expenses (50) (50) (70) (21)
Other income expenses 02 02 (01) (03)
Results from operating activities 66 09 (20) (29)
Financial result (00) (00) (01) (01)
(Loss)Profit before income tax 66 09 (21) (30)
Income tax expense (33) (14) (11) 03
(Loss)Profit for the year 32 (05) (32) (27)
(Loss)Earnings per share 0022 (0002) (0008) (0006)
PampL 2018 and 2019
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
The IFRS conversion had a positiv impact of meuro 37 on net income
1)
Investments into marketing management and the integration of RS2 Germany
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
34
In million euro 2018 2019 delta
Assets
Property plant and equipment 94 92 (01)
Right-of-use assets 00 26 26
Intangible assets and goodwill 75 90 15
Other investment 10 10 00
Total non-current assets 179 217 39
Trade and other receivables 16 43 28
Accrued income and prepayments 52 33 (18)
Cash at bank and in hand 34 24 (10)
Total current assets 101 101 (00)
Total assets 280 318 38
Equity and Liabilities
Equity 172 141 (31)
Total non-current liabilities 42 67 24
Total current liabilities 65 111 45
Total liabilities 107 177 70
Total equity and liabilities 280 318 38
Balance Sheet 2018 and 2019
Mainly new bank borrowings to finance the US and Europen extended product portfolio
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
35
Cash Flow Statement 2018 and 2019
In million euro 2018 2019 delta
Cash flows from operating activities 13 (11) (24)
Cash flows from investing activities (21) (27) (05)
Cash flows from financing activities (35) 28 63
Net decrease in cash and cash equivalents (44) (10) 34
Cash and cash equivalents at 1 January 78 34 (44)
Effect of exchange rate fluctuations on cash held (00) 00 00
Cash and cash equivalents at 31 December 34 24 (10)
Invest in marketing and high qualified stuff to ensure growth
Financing future growth- 2019 new bank borrowings - 2018 repayment of bank
borrowings and dividend payment
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Thank you
together beyond payments
Slide Number 1
Slide Number 2
Slide Number 3
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Slide Number 7
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Slide Number 10
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Slide Number 15
Slide Number 16
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Slide Number 19
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Slide Number 23
Slide Number 24
Slide Number 25
Slide Number 26
Slide Number 27
Slide Number 28
Slide Number 29
Slide Number 30
Slide Number 31
Slide Number 32
Slide Number 33
Slide Number 34
Slide Number 35
Slide Number 36
PampL
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
1141695
2422211
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
PampL
In million euro
2018
2018
2019
delta
adj
Revenue
250
193
221
28
Cost of sales
(126)
(126)
(151)
(25)
Gross profit
124
67
70
03
Marketing and promotional expenses
(10)
(10)
(19)
(08)
Administrative expenses
(50)
(50)
(70)
(21)
Other income expenses
02
02
(01)
(03)
Results from operating activities
66
09
(20)
(29)
Financial result
(00)
(00)
(01)
(01)
(Loss)Profit before income tax
66
09
(21)
(30)
Income tax expense
(33)
(14)
(11)
03
(Loss)Profit for the year
32
(05)
(32)
(27)
(Loss)Earnings per share
0022
(0002)
(0008)
(0006)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
4
Highlights 2019
Implementation of Grouplsquos succesful strategyExecution of strategic milestones resulting in international growth and expansion
Expanding our business globally into APAC LATAM Europe MEA and North America
Increase of our customer base
Winning significant and strategic deals in Europe US and LATAM
Increase of processing volumes of our Managed Services business
Starting of our third business line Direct Acquiring in Europe and LATAM
Application for Financial Institution License
Enhancing our platform by adding new tools
Strengthen our position in the market as one of leading providers of global omni-
channel payment services
5
Highlights 2019
EuropeStarting of our Direct Acquiring business
Application for our Financial Institution licence in Germany
bull Acquiring payment services
bull Issuing of payment instruments
bull Payment initiation services
bull Money remittance services
Acquisition of KALICOM Liebers Zahlungssysteme GmbH for full merchant offerings
bull Immediate capabilities of selling installing servicing terminals and processing card transactions
Preparation to launch the services with our Alliance partner for the travel industry
Sponsorship to launch our white-label Acquiring Solution
Setting up the team and the infrastructure in preparation of the Financial Institution licence
Click to edit Master title style
6
Highlights 2019
North America
Well-positioned as Service Provider
Significant and strategic agreement with one of the top three large US Acquirer as
Managed Service client
First US client went live
Two clients have been boarded to go live
Signing of three ISOlsquos ready to be launced 2020
Continuous expansion by increasing the staff compliment and building infrastructure
for the processing clients
7
Highlights 2019
LATAM
Increase of services to our current customers in Brazil Argentina and Colombia
Partnership with MOViiRED to offer Direct Acquiring and Issuing
bull Leading challenger bank
bull MOVii has a strong base of 60000 POS terminals
bull 15 million client transactions per month
Expanding with current Managed Services client into other countries within the
region
Expanding with current Licenced clients by consolidating their entire cross -regional
business on the platform
8
Highlights 2019
APAC
Increase of services to our current customers both for Licenced and Managed
Services in several countries in the region
Preparation of Group wide services (Chargeback Call Center services)
Delivering payment as a service for issuing and acquiring to financial institutions of
any size and offering term licences for issuing and acquiring to large international
banks
Significant and strategic agreements in different industries
9
Executive Summary
Key highlights of RS2 amp RS2rsquos growth strategy
Solid financial base and market out-performance
Highly attractive industry
Strong market momentum
Clear Strategy for accelerated growth
Comprehensive technical solution1
2
3
4
5
bull RS2 is one of the only providers to offer a global omnimulti-channel platformbull 30 years market experience Worldwide presence with blue chip customer portfoliobull Uniquely positioned for global customers to process international amp local payment
bull Healthy financial positionbull Solid and prime long-term oriented shareholder-structurebull Over last years RS2 significantly outperformed the stock market
bull Double digit market growth in payment over last yearsbull Digitalization drives innovation and disruption and offers new revenue streamsbull Future tailwind is coming from consumer behavior regulation and digitalization
bull Consolidation process offers opportunities both for organic and inorganic growthbull Influence of leading-edge technology increases software is a crucial advantagebull High liquidity and cheap re-financing allow significant investments
relating to the Transaction Please detail any anticipated timetable constraints that you foresee regarding completion of the Transaction Jens
bull Future-driven strategy around the big opportunities in the payments-industry bull Ambition to become a full integrated digital omni-multi-channel payment provider bull Developed a clear strategic roadmap to implement strategy and to maintain focus
bull Founded in 1988 and headquartered in Malta RS2 Software develops software and managed services for card payment processing to banks and other Financial Institutions
bull The company operates in three segments
o Licensing engaged in licensing of the Companyrsquos BankWORKS software to banks and service providers including maintenance and services thereto
o Processing segment is involved in processing of payment transactions utilizing its BankWORKS software
o Merchant service New business-line to take next step in the payment value chain Solution is to directly serve merchants for acquiring and issuing solutions
bull RS2 has steadily significantly outperformed the market Shareholder returns over the last 5 years amount to gt250
bull Current market capitalization euro452m (as of 07-10-20)
Oct 19July 19 Aug 19 Feb 20Dec 19 April 20 July 20
Max euro256
Min euro159
Mar
ket s
hare
pri
ce
Company description Stock price development
Comparative return analysis
Act euro234
12
Internal Analysis of RS2 Organization
Overview about the RS2 GroupRS2 Software Plc
Mosta MLT~270 Employees
Holding Software development licensing
RS2 Germany GmbH
Neu-Isenburg GER~ 14 employees
Service provider for software Plc product mgt implementation
RS2 Merchant Services Europe GmbH
Neu-Isenburg GER0 employees
Holding for merchant business in Europe
RS2 Smart Processing Ltd
Mosta MLT~25 Employees
Processing-business for FI globally wo US
RS2 Software LAC LTDA
Sao Paulo BRA~ 1 employees
Sales amp service office for Latin America
RS2 Software APAC
Metro Manila PHL~22 employees
Sales for Software Plc amp Processing Ltd vice versa
service center for both
RS2 Software Inc
Denver USA ~35 employees
Processing for US Sub-Licensing for Key
Accounts
RS2 Financial Services GmbH
Neu-Isenburg GER~8 employees
Acquiring business E-Money for Europe
Kalicom Zahlungssysteme
GmbH
Neu-Isenburg GER~ 8 employees
ISO for Germany (Sales Service NSP)
100 100 9992 99 9999 6420
100 100
13
Internal Analysis of RS2 Organization
Employment statistics
Employee nationality and work location Employee development 2014 to 2019
59
9
7
7
15
4
Nationality Work location
73
9
75 4
2
No of employees by tenure in years (2019)
135116
71
28 17
gt 152 to 5lt 2 5 to 10 10 to 15
144188 217 244
282
368
201920182014 2015 2016 2017
CAGR +21
AmericanMaltese German
JordanPhilippines
Other USAMalta not defined Germany
Philippines Other
Competences
Management
IT amp Product Management
Customer
Back Office amp Administration
4
68
2
2
24
Sales amp Marketing
Back Office amp Operations
Customer Service
IT amp Product Management
Management
Competences
14
Internal Analysis of RS2 USPs
Unique Selling Points and Value Proposition overview of key differentiators
Omni ChannelTrue omni-channel covering all payment sources (online offline
mobile)
ScalableCloud-based solution linearly scalable with no lead-time for
infrastructure upgrade
One Global PlatformGlobal state of the art solution
and global coverage instant and real time payments
Reliable performanceRobust 9999 availability and
high performance engine
API enabledSingle platform with single API
integration ndash one source code for SMEs and large Enterprises
Highly ConfigurableConfigurable by client region currency business type and
channel
Customer experienceHigh integration over the payment
merchant and partner portal global reconciliation FX
bull RS2 is one of the only providers worldwide to offer global omnichannel payment services through a single integration to its cloud platform
bull RS2 is uniquely positioned to enable global customers to process both international and local payments
bull RS2 provides customers with a single view of their transactions through consolidated reporting and the reconciliation of their entire businesses across currencies and languages
bull It has a highly flexible platform allowing customers quicker time to market through a single API integration
Five main trends for opportunities and challenges in the payment ecosystem
Global payment revenues by region(USD trillions)
Market trends
02
2018
04
16
03
02
06
0103
2015
05
2011
0103
03
04
07
05
08
2017
0218
05
09
13 1419
2013
03
04
CAGR 56
Latin America EMEA North America APAC
Regulatory environment The EU has developed a comprehensive legislative payment framework aimed at keeping pace with the rapid evolution of the industry as well as preserve financial stability while creating a more competitive payment system (PSD2) and ICF regulation
Dynamic market growth Non-cash transactions grew by 12 globally during 2018 Asia and CEMEA growing by 20-30 Drivers are mobile payments contactless payments and shift to e-commerce
Technology invests of incumbents Main payment providers modernized there operations and infrastructure to support new product offerings and new technologies in order to generate new revenue sources
Boosted competition New entrants especially Big Techs have changed the dynamics in the industry as businesses and consumers shift from cash to digital payment methods ndash Apple as a game-changer
Consolidations The payments market is undergoing an unprecedented wave of consolidation with intensive MampA in payment services related to acquiring and broader merchant servicing
Global non-cash transactions (trillions)
67 102 152 185124 130145
161 168104 126
150183
206
2013
539
3539
29
2015
43
2017
46
2018
358436
605
2011
306
50
CAGR 102
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
17
Payment MarketGlobal Payment Market Development
Global payments revenue is expected to grow to about $27 trillion by 2022
Projected global non-cash transactions
020305
09
2018
030507
12
19
2022
27
CAGR 72
North AmericaLatin America EMEA APAC
Projected global payment revenues(USD trillions)
The future of payments
Continuous development from cash to electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions and the demand in rich payment solutions is expected to generate additional $18 trillion in revenues by 2022The APAC region especially China is expected to grow by gt30 from 2018 to 2022 reaching $12 trillion in revenues
Consolidation process is expected to continue to gain momentum in the current economic situation with interest rates being down creating large international players
Fostered by regulators contactless penetration is set to bring mobile in-store solutions to prominence in the coming years
Projected payment revenues by region(USD trillions)
185443168
202206
343
46
2018 2022
605
581045
CAGR 146
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
Green technology is expected to increase in importance in the coming years with a focus on sustainable energy supply for data centers and production of terminals general waste reduction etc
Technology is rapidly changing the entire payment industry ecosystem The move away from cash towards electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions demand for instant cross-border payment solutions increasing data protection demands and cyber risks foster technological advancements
18
Payment MarketImpact of COVID-19 on Payments
Impact of COVID-19 pandemic on payments
bull Significant decrease of global payment-revenue with negative growthbull Most affected industries Hospitality and tourism retail airlines events hotels restaurants But also some
segments can benefit from the crisis like E-Commerce gardenflower-retail food delivery service supermarkets
bull Acceleration of cash displacement towards contactless payment infrastructure and migration to terminals without pin-pads
Short term
Mid Long term
29 Countries have raised contatless payment limits
Contactless payment limits
30More planned online shopping of current online-shoppers
Increasing e-com sales Declining in travel
88Drop of number of passengers traveling at EU airports
Decline x-border payments
58Cross-border transaction flow decline
bull Accelerated shift from POS to E-Commercebull Shift in consumer behavior will lead in an accelerated growth for card based payments at POSbull Self-checkout or ldquoorder amp collectrdquo solutions gaining popularity pre-crisis contactless payment
cards with increasing penetrationbull Expected uptake in regional travel on the back of certain international travel (eg cruises)
shifting spending patterns and revenue opportunities Proven effectiveness of virtual meetings reducing business travel expected This lead in a lasting drop for some segments like Airlines Hotels Events hitting their business model and in less cross boarder transactions
In mid-term payments can profit from the corona crises but in a shift in customer-industries infrastructure-equipment and channels
Strategic Marketsbull US and Europe to focus onbull Organic growth supported by tec-driven solutionsbull Inorganic growth address targets with complementary
capabilities
02Products Customers
01
bull Densified value chainbull Technical development of in-house solutionsbull Focus on customers not adequately served
resulting from mega-mergers
bull Seek funding for accelerated growthbull Foster sales and marketing capabilitiesbull Reach critical market share to capitalize on
necessary infrastructure investmentsbull Reduce dependencies from external providers bull Increase control along the value chain to
maximize client stickinessbull Get own licenses (authority and schemes)
Among strategic options the fully integrated E2E payment provider seems most attractive
Fully integrated End2End Provider
White Label processing
AS IS POINT OF DEPARTURE
SECENARIOPOINT OF ARRIVAL
Among the strategic options the fully integrated End2End payment provider seems most attractive one
Beeing a truly fully service provider by means offering Processing Acquiring Issuing and NSPPSP out of one hand at the front- and back-end seems the most future-prooven strategy which also allows the
maximum customer-monetarization and high degree of merchant stickiness
23
Strategic Planning Strategic Choice
Fully integrated End2End payment provider ndash Strategy is based on focussing toward merchant with an integrated proposition delivered by inhouse-capacities belong the entire value chain
Customer Segment
Product Portfolio
Distribution amp Go-to-market
Market (geopraphy)
From Towards Out of scope
bull All kinds of industries bull All merchant sizes bull Focus Omni-channel customer
bull Focus on marktes EU and US
bull Banks bull Espacially Key Account
merchants
bull Serving all markets with same prioriry
bull Intergated multi sales channel offering via own salesforce
Truly global amp fully integrated E2E digital omnimulti-channel payment service provider
Deliver all payment services out of one hand worldwide scalable and agile solutions combined with best in class customer service ndash We empower Financial Service Provider amp merchants to benefit from
digitalization of payment and on-us processing
Our ambition is to become a fully integrated digital omnimulti-channel payment service provider ndash simple innovative targeted to consumer demands and with global reach
Vision
Mission
26
Cornerstones of RS2 Group-Strategy
Five pillars will drive the strategy to build an integrated omni-channel service provider
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
2) The IFRS conversion had a positiv impact of meuro 37 on net income
250
193221
2018 ACT 2018 adj 2019 ACT
Revenues
-44 -44
-48
2018 ACT 2018 adj 2019 ACT
Cash Flow
32
-05
-322018 ACT 2018 adj 2019 ACT
Net Profit
79
22
-02
2018 ACT 2018 adj 2019 ACT
EBITDA
1)
1)
2)
in eurom
31
Revenue by business lines 2018 vs 2019
Shift revenue into new business lines
155 136
38 85
2018 2019
Licensing Processing Acquiring
193
221
+127
-12
80
20
2018
62
38
2019
Deversifing of business linesGrowth due to enhanched product portfolio
In meuro
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
32
Revenue and EBITDA by legal entities
162 188
38 49
43 05
07 18
02
2018 2019
Revenues
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
+12
- 14
221
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
- 12
44 37
08 05
(28)(42)
(00)
02 03
(01) (01)
2018 2019
EBITDA
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
- 24 meuro
22In meuro
205
193 inter-company- 86
307 - 0123
- 02- 06
04
33
In million euro 2018 2018 2019 delta
adj
Revenue 250 193 221 28
Cost of sales (126) (126) (151) (25)
Gross profit 124 67 70 03
Marketing and promotional expenses (10) (10) (19) (08)
Administrative expenses (50) (50) (70) (21)
Other income expenses 02 02 (01) (03)
Results from operating activities 66 09 (20) (29)
Financial result (00) (00) (01) (01)
(Loss)Profit before income tax 66 09 (21) (30)
Income tax expense (33) (14) (11) 03
(Loss)Profit for the year 32 (05) (32) (27)
(Loss)Earnings per share 0022 (0002) (0008) (0006)
PampL 2018 and 2019
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
The IFRS conversion had a positiv impact of meuro 37 on net income
1)
Investments into marketing management and the integration of RS2 Germany
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
34
In million euro 2018 2019 delta
Assets
Property plant and equipment 94 92 (01)
Right-of-use assets 00 26 26
Intangible assets and goodwill 75 90 15
Other investment 10 10 00
Total non-current assets 179 217 39
Trade and other receivables 16 43 28
Accrued income and prepayments 52 33 (18)
Cash at bank and in hand 34 24 (10)
Total current assets 101 101 (00)
Total assets 280 318 38
Equity and Liabilities
Equity 172 141 (31)
Total non-current liabilities 42 67 24
Total current liabilities 65 111 45
Total liabilities 107 177 70
Total equity and liabilities 280 318 38
Balance Sheet 2018 and 2019
Mainly new bank borrowings to finance the US and Europen extended product portfolio
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
35
Cash Flow Statement 2018 and 2019
In million euro 2018 2019 delta
Cash flows from operating activities 13 (11) (24)
Cash flows from investing activities (21) (27) (05)
Cash flows from financing activities (35) 28 63
Net decrease in cash and cash equivalents (44) (10) 34
Cash and cash equivalents at 1 January 78 34 (44)
Effect of exchange rate fluctuations on cash held (00) 00 00
Cash and cash equivalents at 31 December 34 24 (10)
Invest in marketing and high qualified stuff to ensure growth
Financing future growth- 2019 new bank borrowings - 2018 repayment of bank
borrowings and dividend payment
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Thank you
together beyond payments
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Slide Number 36
PampL
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
1141695
2422211
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
PampL
In million euro
2018
2018
2019
delta
adj
Revenue
250
193
221
28
Cost of sales
(126)
(126)
(151)
(25)
Gross profit
124
67
70
03
Marketing and promotional expenses
(10)
(10)
(19)
(08)
Administrative expenses
(50)
(50)
(70)
(21)
Other income expenses
02
02
(01)
(03)
Results from operating activities
66
09
(20)
(29)
Financial result
(00)
(00)
(01)
(01)
(Loss)Profit before income tax
66
09
(21)
(30)
Income tax expense
(33)
(14)
(11)
03
(Loss)Profit for the year
32
(05)
(32)
(27)
(Loss)Earnings per share
0022
(0002)
(0008)
(0006)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
5
Highlights 2019
EuropeStarting of our Direct Acquiring business
Application for our Financial Institution licence in Germany
bull Acquiring payment services
bull Issuing of payment instruments
bull Payment initiation services
bull Money remittance services
Acquisition of KALICOM Liebers Zahlungssysteme GmbH for full merchant offerings
bull Immediate capabilities of selling installing servicing terminals and processing card transactions
Preparation to launch the services with our Alliance partner for the travel industry
Sponsorship to launch our white-label Acquiring Solution
Setting up the team and the infrastructure in preparation of the Financial Institution licence
Click to edit Master title style
6
Highlights 2019
North America
Well-positioned as Service Provider
Significant and strategic agreement with one of the top three large US Acquirer as
Managed Service client
First US client went live
Two clients have been boarded to go live
Signing of three ISOlsquos ready to be launced 2020
Continuous expansion by increasing the staff compliment and building infrastructure
for the processing clients
7
Highlights 2019
LATAM
Increase of services to our current customers in Brazil Argentina and Colombia
Partnership with MOViiRED to offer Direct Acquiring and Issuing
bull Leading challenger bank
bull MOVii has a strong base of 60000 POS terminals
bull 15 million client transactions per month
Expanding with current Managed Services client into other countries within the
region
Expanding with current Licenced clients by consolidating their entire cross -regional
business on the platform
8
Highlights 2019
APAC
Increase of services to our current customers both for Licenced and Managed
Services in several countries in the region
Preparation of Group wide services (Chargeback Call Center services)
Delivering payment as a service for issuing and acquiring to financial institutions of
any size and offering term licences for issuing and acquiring to large international
banks
Significant and strategic agreements in different industries
9
Executive Summary
Key highlights of RS2 amp RS2rsquos growth strategy
Solid financial base and market out-performance
Highly attractive industry
Strong market momentum
Clear Strategy for accelerated growth
Comprehensive technical solution1
2
3
4
5
bull RS2 is one of the only providers to offer a global omnimulti-channel platformbull 30 years market experience Worldwide presence with blue chip customer portfoliobull Uniquely positioned for global customers to process international amp local payment
bull Healthy financial positionbull Solid and prime long-term oriented shareholder-structurebull Over last years RS2 significantly outperformed the stock market
bull Double digit market growth in payment over last yearsbull Digitalization drives innovation and disruption and offers new revenue streamsbull Future tailwind is coming from consumer behavior regulation and digitalization
bull Consolidation process offers opportunities both for organic and inorganic growthbull Influence of leading-edge technology increases software is a crucial advantagebull High liquidity and cheap re-financing allow significant investments
relating to the Transaction Please detail any anticipated timetable constraints that you foresee regarding completion of the Transaction Jens
bull Future-driven strategy around the big opportunities in the payments-industry bull Ambition to become a full integrated digital omni-multi-channel payment provider bull Developed a clear strategic roadmap to implement strategy and to maintain focus
bull Founded in 1988 and headquartered in Malta RS2 Software develops software and managed services for card payment processing to banks and other Financial Institutions
bull The company operates in three segments
o Licensing engaged in licensing of the Companyrsquos BankWORKS software to banks and service providers including maintenance and services thereto
o Processing segment is involved in processing of payment transactions utilizing its BankWORKS software
o Merchant service New business-line to take next step in the payment value chain Solution is to directly serve merchants for acquiring and issuing solutions
bull RS2 has steadily significantly outperformed the market Shareholder returns over the last 5 years amount to gt250
bull Current market capitalization euro452m (as of 07-10-20)
Oct 19July 19 Aug 19 Feb 20Dec 19 April 20 July 20
Max euro256
Min euro159
Mar
ket s
hare
pri
ce
Company description Stock price development
Comparative return analysis
Act euro234
12
Internal Analysis of RS2 Organization
Overview about the RS2 GroupRS2 Software Plc
Mosta MLT~270 Employees
Holding Software development licensing
RS2 Germany GmbH
Neu-Isenburg GER~ 14 employees
Service provider for software Plc product mgt implementation
RS2 Merchant Services Europe GmbH
Neu-Isenburg GER0 employees
Holding for merchant business in Europe
RS2 Smart Processing Ltd
Mosta MLT~25 Employees
Processing-business for FI globally wo US
RS2 Software LAC LTDA
Sao Paulo BRA~ 1 employees
Sales amp service office for Latin America
RS2 Software APAC
Metro Manila PHL~22 employees
Sales for Software Plc amp Processing Ltd vice versa
service center for both
RS2 Software Inc
Denver USA ~35 employees
Processing for US Sub-Licensing for Key
Accounts
RS2 Financial Services GmbH
Neu-Isenburg GER~8 employees
Acquiring business E-Money for Europe
Kalicom Zahlungssysteme
GmbH
Neu-Isenburg GER~ 8 employees
ISO for Germany (Sales Service NSP)
100 100 9992 99 9999 6420
100 100
13
Internal Analysis of RS2 Organization
Employment statistics
Employee nationality and work location Employee development 2014 to 2019
59
9
7
7
15
4
Nationality Work location
73
9
75 4
2
No of employees by tenure in years (2019)
135116
71
28 17
gt 152 to 5lt 2 5 to 10 10 to 15
144188 217 244
282
368
201920182014 2015 2016 2017
CAGR +21
AmericanMaltese German
JordanPhilippines
Other USAMalta not defined Germany
Philippines Other
Competences
Management
IT amp Product Management
Customer
Back Office amp Administration
4
68
2
2
24
Sales amp Marketing
Back Office amp Operations
Customer Service
IT amp Product Management
Management
Competences
14
Internal Analysis of RS2 USPs
Unique Selling Points and Value Proposition overview of key differentiators
Omni ChannelTrue omni-channel covering all payment sources (online offline
mobile)
ScalableCloud-based solution linearly scalable with no lead-time for
infrastructure upgrade
One Global PlatformGlobal state of the art solution
and global coverage instant and real time payments
Reliable performanceRobust 9999 availability and
high performance engine
API enabledSingle platform with single API
integration ndash one source code for SMEs and large Enterprises
Highly ConfigurableConfigurable by client region currency business type and
channel
Customer experienceHigh integration over the payment
merchant and partner portal global reconciliation FX
bull RS2 is one of the only providers worldwide to offer global omnichannel payment services through a single integration to its cloud platform
bull RS2 is uniquely positioned to enable global customers to process both international and local payments
bull RS2 provides customers with a single view of their transactions through consolidated reporting and the reconciliation of their entire businesses across currencies and languages
bull It has a highly flexible platform allowing customers quicker time to market through a single API integration
Five main trends for opportunities and challenges in the payment ecosystem
Global payment revenues by region(USD trillions)
Market trends
02
2018
04
16
03
02
06
0103
2015
05
2011
0103
03
04
07
05
08
2017
0218
05
09
13 1419
2013
03
04
CAGR 56
Latin America EMEA North America APAC
Regulatory environment The EU has developed a comprehensive legislative payment framework aimed at keeping pace with the rapid evolution of the industry as well as preserve financial stability while creating a more competitive payment system (PSD2) and ICF regulation
Dynamic market growth Non-cash transactions grew by 12 globally during 2018 Asia and CEMEA growing by 20-30 Drivers are mobile payments contactless payments and shift to e-commerce
Technology invests of incumbents Main payment providers modernized there operations and infrastructure to support new product offerings and new technologies in order to generate new revenue sources
Boosted competition New entrants especially Big Techs have changed the dynamics in the industry as businesses and consumers shift from cash to digital payment methods ndash Apple as a game-changer
Consolidations The payments market is undergoing an unprecedented wave of consolidation with intensive MampA in payment services related to acquiring and broader merchant servicing
Global non-cash transactions (trillions)
67 102 152 185124 130145
161 168104 126
150183
206
2013
539
3539
29
2015
43
2017
46
2018
358436
605
2011
306
50
CAGR 102
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
17
Payment MarketGlobal Payment Market Development
Global payments revenue is expected to grow to about $27 trillion by 2022
Projected global non-cash transactions
020305
09
2018
030507
12
19
2022
27
CAGR 72
North AmericaLatin America EMEA APAC
Projected global payment revenues(USD trillions)
The future of payments
Continuous development from cash to electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions and the demand in rich payment solutions is expected to generate additional $18 trillion in revenues by 2022The APAC region especially China is expected to grow by gt30 from 2018 to 2022 reaching $12 trillion in revenues
Consolidation process is expected to continue to gain momentum in the current economic situation with interest rates being down creating large international players
Fostered by regulators contactless penetration is set to bring mobile in-store solutions to prominence in the coming years
Projected payment revenues by region(USD trillions)
185443168
202206
343
46
2018 2022
605
581045
CAGR 146
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
Green technology is expected to increase in importance in the coming years with a focus on sustainable energy supply for data centers and production of terminals general waste reduction etc
Technology is rapidly changing the entire payment industry ecosystem The move away from cash towards electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions demand for instant cross-border payment solutions increasing data protection demands and cyber risks foster technological advancements
18
Payment MarketImpact of COVID-19 on Payments
Impact of COVID-19 pandemic on payments
bull Significant decrease of global payment-revenue with negative growthbull Most affected industries Hospitality and tourism retail airlines events hotels restaurants But also some
segments can benefit from the crisis like E-Commerce gardenflower-retail food delivery service supermarkets
bull Acceleration of cash displacement towards contactless payment infrastructure and migration to terminals without pin-pads
Short term
Mid Long term
29 Countries have raised contatless payment limits
Contactless payment limits
30More planned online shopping of current online-shoppers
Increasing e-com sales Declining in travel
88Drop of number of passengers traveling at EU airports
Decline x-border payments
58Cross-border transaction flow decline
bull Accelerated shift from POS to E-Commercebull Shift in consumer behavior will lead in an accelerated growth for card based payments at POSbull Self-checkout or ldquoorder amp collectrdquo solutions gaining popularity pre-crisis contactless payment
cards with increasing penetrationbull Expected uptake in regional travel on the back of certain international travel (eg cruises)
shifting spending patterns and revenue opportunities Proven effectiveness of virtual meetings reducing business travel expected This lead in a lasting drop for some segments like Airlines Hotels Events hitting their business model and in less cross boarder transactions
In mid-term payments can profit from the corona crises but in a shift in customer-industries infrastructure-equipment and channels
Strategic Marketsbull US and Europe to focus onbull Organic growth supported by tec-driven solutionsbull Inorganic growth address targets with complementary
capabilities
02Products Customers
01
bull Densified value chainbull Technical development of in-house solutionsbull Focus on customers not adequately served
resulting from mega-mergers
bull Seek funding for accelerated growthbull Foster sales and marketing capabilitiesbull Reach critical market share to capitalize on
necessary infrastructure investmentsbull Reduce dependencies from external providers bull Increase control along the value chain to
maximize client stickinessbull Get own licenses (authority and schemes)
Among strategic options the fully integrated E2E payment provider seems most attractive
Fully integrated End2End Provider
White Label processing
AS IS POINT OF DEPARTURE
SECENARIOPOINT OF ARRIVAL
Among the strategic options the fully integrated End2End payment provider seems most attractive one
Beeing a truly fully service provider by means offering Processing Acquiring Issuing and NSPPSP out of one hand at the front- and back-end seems the most future-prooven strategy which also allows the
maximum customer-monetarization and high degree of merchant stickiness
23
Strategic Planning Strategic Choice
Fully integrated End2End payment provider ndash Strategy is based on focussing toward merchant with an integrated proposition delivered by inhouse-capacities belong the entire value chain
Customer Segment
Product Portfolio
Distribution amp Go-to-market
Market (geopraphy)
From Towards Out of scope
bull All kinds of industries bull All merchant sizes bull Focus Omni-channel customer
bull Focus on marktes EU and US
bull Banks bull Espacially Key Account
merchants
bull Serving all markets with same prioriry
bull Intergated multi sales channel offering via own salesforce
Truly global amp fully integrated E2E digital omnimulti-channel payment service provider
Deliver all payment services out of one hand worldwide scalable and agile solutions combined with best in class customer service ndash We empower Financial Service Provider amp merchants to benefit from
digitalization of payment and on-us processing
Our ambition is to become a fully integrated digital omnimulti-channel payment service provider ndash simple innovative targeted to consumer demands and with global reach
Vision
Mission
26
Cornerstones of RS2 Group-Strategy
Five pillars will drive the strategy to build an integrated omni-channel service provider
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
2) The IFRS conversion had a positiv impact of meuro 37 on net income
250
193221
2018 ACT 2018 adj 2019 ACT
Revenues
-44 -44
-48
2018 ACT 2018 adj 2019 ACT
Cash Flow
32
-05
-322018 ACT 2018 adj 2019 ACT
Net Profit
79
22
-02
2018 ACT 2018 adj 2019 ACT
EBITDA
1)
1)
2)
in eurom
31
Revenue by business lines 2018 vs 2019
Shift revenue into new business lines
155 136
38 85
2018 2019
Licensing Processing Acquiring
193
221
+127
-12
80
20
2018
62
38
2019
Deversifing of business linesGrowth due to enhanched product portfolio
In meuro
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
32
Revenue and EBITDA by legal entities
162 188
38 49
43 05
07 18
02
2018 2019
Revenues
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
+12
- 14
221
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
- 12
44 37
08 05
(28)(42)
(00)
02 03
(01) (01)
2018 2019
EBITDA
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
- 24 meuro
22In meuro
205
193 inter-company- 86
307 - 0123
- 02- 06
04
33
In million euro 2018 2018 2019 delta
adj
Revenue 250 193 221 28
Cost of sales (126) (126) (151) (25)
Gross profit 124 67 70 03
Marketing and promotional expenses (10) (10) (19) (08)
Administrative expenses (50) (50) (70) (21)
Other income expenses 02 02 (01) (03)
Results from operating activities 66 09 (20) (29)
Financial result (00) (00) (01) (01)
(Loss)Profit before income tax 66 09 (21) (30)
Income tax expense (33) (14) (11) 03
(Loss)Profit for the year 32 (05) (32) (27)
(Loss)Earnings per share 0022 (0002) (0008) (0006)
PampL 2018 and 2019
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
The IFRS conversion had a positiv impact of meuro 37 on net income
1)
Investments into marketing management and the integration of RS2 Germany
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
34
In million euro 2018 2019 delta
Assets
Property plant and equipment 94 92 (01)
Right-of-use assets 00 26 26
Intangible assets and goodwill 75 90 15
Other investment 10 10 00
Total non-current assets 179 217 39
Trade and other receivables 16 43 28
Accrued income and prepayments 52 33 (18)
Cash at bank and in hand 34 24 (10)
Total current assets 101 101 (00)
Total assets 280 318 38
Equity and Liabilities
Equity 172 141 (31)
Total non-current liabilities 42 67 24
Total current liabilities 65 111 45
Total liabilities 107 177 70
Total equity and liabilities 280 318 38
Balance Sheet 2018 and 2019
Mainly new bank borrowings to finance the US and Europen extended product portfolio
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
35
Cash Flow Statement 2018 and 2019
In million euro 2018 2019 delta
Cash flows from operating activities 13 (11) (24)
Cash flows from investing activities (21) (27) (05)
Cash flows from financing activities (35) 28 63
Net decrease in cash and cash equivalents (44) (10) 34
Cash and cash equivalents at 1 January 78 34 (44)
Effect of exchange rate fluctuations on cash held (00) 00 00
Cash and cash equivalents at 31 December 34 24 (10)
Invest in marketing and high qualified stuff to ensure growth
Financing future growth- 2019 new bank borrowings - 2018 repayment of bank
borrowings and dividend payment
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Thank you
together beyond payments
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PampL
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
1141695
2422211
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
PampL
In million euro
2018
2018
2019
delta
adj
Revenue
250
193
221
28
Cost of sales
(126)
(126)
(151)
(25)
Gross profit
124
67
70
03
Marketing and promotional expenses
(10)
(10)
(19)
(08)
Administrative expenses
(50)
(50)
(70)
(21)
Other income expenses
02
02
(01)
(03)
Results from operating activities
66
09
(20)
(29)
Financial result
(00)
(00)
(01)
(01)
(Loss)Profit before income tax
66
09
(21)
(30)
Income tax expense
(33)
(14)
(11)
03
(Loss)Profit for the year
32
(05)
(32)
(27)
(Loss)Earnings per share
0022
(0002)
(0008)
(0006)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
6
Highlights 2019
North America
Well-positioned as Service Provider
Significant and strategic agreement with one of the top three large US Acquirer as
Managed Service client
First US client went live
Two clients have been boarded to go live
Signing of three ISOlsquos ready to be launced 2020
Continuous expansion by increasing the staff compliment and building infrastructure
for the processing clients
7
Highlights 2019
LATAM
Increase of services to our current customers in Brazil Argentina and Colombia
Partnership with MOViiRED to offer Direct Acquiring and Issuing
bull Leading challenger bank
bull MOVii has a strong base of 60000 POS terminals
bull 15 million client transactions per month
Expanding with current Managed Services client into other countries within the
region
Expanding with current Licenced clients by consolidating their entire cross -regional
business on the platform
8
Highlights 2019
APAC
Increase of services to our current customers both for Licenced and Managed
Services in several countries in the region
Preparation of Group wide services (Chargeback Call Center services)
Delivering payment as a service for issuing and acquiring to financial institutions of
any size and offering term licences for issuing and acquiring to large international
banks
Significant and strategic agreements in different industries
9
Executive Summary
Key highlights of RS2 amp RS2rsquos growth strategy
Solid financial base and market out-performance
Highly attractive industry
Strong market momentum
Clear Strategy for accelerated growth
Comprehensive technical solution1
2
3
4
5
bull RS2 is one of the only providers to offer a global omnimulti-channel platformbull 30 years market experience Worldwide presence with blue chip customer portfoliobull Uniquely positioned for global customers to process international amp local payment
bull Healthy financial positionbull Solid and prime long-term oriented shareholder-structurebull Over last years RS2 significantly outperformed the stock market
bull Double digit market growth in payment over last yearsbull Digitalization drives innovation and disruption and offers new revenue streamsbull Future tailwind is coming from consumer behavior regulation and digitalization
bull Consolidation process offers opportunities both for organic and inorganic growthbull Influence of leading-edge technology increases software is a crucial advantagebull High liquidity and cheap re-financing allow significant investments
relating to the Transaction Please detail any anticipated timetable constraints that you foresee regarding completion of the Transaction Jens
bull Future-driven strategy around the big opportunities in the payments-industry bull Ambition to become a full integrated digital omni-multi-channel payment provider bull Developed a clear strategic roadmap to implement strategy and to maintain focus
bull Founded in 1988 and headquartered in Malta RS2 Software develops software and managed services for card payment processing to banks and other Financial Institutions
bull The company operates in three segments
o Licensing engaged in licensing of the Companyrsquos BankWORKS software to banks and service providers including maintenance and services thereto
o Processing segment is involved in processing of payment transactions utilizing its BankWORKS software
o Merchant service New business-line to take next step in the payment value chain Solution is to directly serve merchants for acquiring and issuing solutions
bull RS2 has steadily significantly outperformed the market Shareholder returns over the last 5 years amount to gt250
bull Current market capitalization euro452m (as of 07-10-20)
Oct 19July 19 Aug 19 Feb 20Dec 19 April 20 July 20
Max euro256
Min euro159
Mar
ket s
hare
pri
ce
Company description Stock price development
Comparative return analysis
Act euro234
12
Internal Analysis of RS2 Organization
Overview about the RS2 GroupRS2 Software Plc
Mosta MLT~270 Employees
Holding Software development licensing
RS2 Germany GmbH
Neu-Isenburg GER~ 14 employees
Service provider for software Plc product mgt implementation
RS2 Merchant Services Europe GmbH
Neu-Isenburg GER0 employees
Holding for merchant business in Europe
RS2 Smart Processing Ltd
Mosta MLT~25 Employees
Processing-business for FI globally wo US
RS2 Software LAC LTDA
Sao Paulo BRA~ 1 employees
Sales amp service office for Latin America
RS2 Software APAC
Metro Manila PHL~22 employees
Sales for Software Plc amp Processing Ltd vice versa
service center for both
RS2 Software Inc
Denver USA ~35 employees
Processing for US Sub-Licensing for Key
Accounts
RS2 Financial Services GmbH
Neu-Isenburg GER~8 employees
Acquiring business E-Money for Europe
Kalicom Zahlungssysteme
GmbH
Neu-Isenburg GER~ 8 employees
ISO for Germany (Sales Service NSP)
100 100 9992 99 9999 6420
100 100
13
Internal Analysis of RS2 Organization
Employment statistics
Employee nationality and work location Employee development 2014 to 2019
59
9
7
7
15
4
Nationality Work location
73
9
75 4
2
No of employees by tenure in years (2019)
135116
71
28 17
gt 152 to 5lt 2 5 to 10 10 to 15
144188 217 244
282
368
201920182014 2015 2016 2017
CAGR +21
AmericanMaltese German
JordanPhilippines
Other USAMalta not defined Germany
Philippines Other
Competences
Management
IT amp Product Management
Customer
Back Office amp Administration
4
68
2
2
24
Sales amp Marketing
Back Office amp Operations
Customer Service
IT amp Product Management
Management
Competences
14
Internal Analysis of RS2 USPs
Unique Selling Points and Value Proposition overview of key differentiators
Omni ChannelTrue omni-channel covering all payment sources (online offline
mobile)
ScalableCloud-based solution linearly scalable with no lead-time for
infrastructure upgrade
One Global PlatformGlobal state of the art solution
and global coverage instant and real time payments
Reliable performanceRobust 9999 availability and
high performance engine
API enabledSingle platform with single API
integration ndash one source code for SMEs and large Enterprises
Highly ConfigurableConfigurable by client region currency business type and
channel
Customer experienceHigh integration over the payment
merchant and partner portal global reconciliation FX
bull RS2 is one of the only providers worldwide to offer global omnichannel payment services through a single integration to its cloud platform
bull RS2 is uniquely positioned to enable global customers to process both international and local payments
bull RS2 provides customers with a single view of their transactions through consolidated reporting and the reconciliation of their entire businesses across currencies and languages
bull It has a highly flexible platform allowing customers quicker time to market through a single API integration
Five main trends for opportunities and challenges in the payment ecosystem
Global payment revenues by region(USD trillions)
Market trends
02
2018
04
16
03
02
06
0103
2015
05
2011
0103
03
04
07
05
08
2017
0218
05
09
13 1419
2013
03
04
CAGR 56
Latin America EMEA North America APAC
Regulatory environment The EU has developed a comprehensive legislative payment framework aimed at keeping pace with the rapid evolution of the industry as well as preserve financial stability while creating a more competitive payment system (PSD2) and ICF regulation
Dynamic market growth Non-cash transactions grew by 12 globally during 2018 Asia and CEMEA growing by 20-30 Drivers are mobile payments contactless payments and shift to e-commerce
Technology invests of incumbents Main payment providers modernized there operations and infrastructure to support new product offerings and new technologies in order to generate new revenue sources
Boosted competition New entrants especially Big Techs have changed the dynamics in the industry as businesses and consumers shift from cash to digital payment methods ndash Apple as a game-changer
Consolidations The payments market is undergoing an unprecedented wave of consolidation with intensive MampA in payment services related to acquiring and broader merchant servicing
Global non-cash transactions (trillions)
67 102 152 185124 130145
161 168104 126
150183
206
2013
539
3539
29
2015
43
2017
46
2018
358436
605
2011
306
50
CAGR 102
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
17
Payment MarketGlobal Payment Market Development
Global payments revenue is expected to grow to about $27 trillion by 2022
Projected global non-cash transactions
020305
09
2018
030507
12
19
2022
27
CAGR 72
North AmericaLatin America EMEA APAC
Projected global payment revenues(USD trillions)
The future of payments
Continuous development from cash to electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions and the demand in rich payment solutions is expected to generate additional $18 trillion in revenues by 2022The APAC region especially China is expected to grow by gt30 from 2018 to 2022 reaching $12 trillion in revenues
Consolidation process is expected to continue to gain momentum in the current economic situation with interest rates being down creating large international players
Fostered by regulators contactless penetration is set to bring mobile in-store solutions to prominence in the coming years
Projected payment revenues by region(USD trillions)
185443168
202206
343
46
2018 2022
605
581045
CAGR 146
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
Green technology is expected to increase in importance in the coming years with a focus on sustainable energy supply for data centers and production of terminals general waste reduction etc
Technology is rapidly changing the entire payment industry ecosystem The move away from cash towards electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions demand for instant cross-border payment solutions increasing data protection demands and cyber risks foster technological advancements
18
Payment MarketImpact of COVID-19 on Payments
Impact of COVID-19 pandemic on payments
bull Significant decrease of global payment-revenue with negative growthbull Most affected industries Hospitality and tourism retail airlines events hotels restaurants But also some
segments can benefit from the crisis like E-Commerce gardenflower-retail food delivery service supermarkets
bull Acceleration of cash displacement towards contactless payment infrastructure and migration to terminals without pin-pads
Short term
Mid Long term
29 Countries have raised contatless payment limits
Contactless payment limits
30More planned online shopping of current online-shoppers
Increasing e-com sales Declining in travel
88Drop of number of passengers traveling at EU airports
Decline x-border payments
58Cross-border transaction flow decline
bull Accelerated shift from POS to E-Commercebull Shift in consumer behavior will lead in an accelerated growth for card based payments at POSbull Self-checkout or ldquoorder amp collectrdquo solutions gaining popularity pre-crisis contactless payment
cards with increasing penetrationbull Expected uptake in regional travel on the back of certain international travel (eg cruises)
shifting spending patterns and revenue opportunities Proven effectiveness of virtual meetings reducing business travel expected This lead in a lasting drop for some segments like Airlines Hotels Events hitting their business model and in less cross boarder transactions
In mid-term payments can profit from the corona crises but in a shift in customer-industries infrastructure-equipment and channels
Strategic Marketsbull US and Europe to focus onbull Organic growth supported by tec-driven solutionsbull Inorganic growth address targets with complementary
capabilities
02Products Customers
01
bull Densified value chainbull Technical development of in-house solutionsbull Focus on customers not adequately served
resulting from mega-mergers
bull Seek funding for accelerated growthbull Foster sales and marketing capabilitiesbull Reach critical market share to capitalize on
necessary infrastructure investmentsbull Reduce dependencies from external providers bull Increase control along the value chain to
maximize client stickinessbull Get own licenses (authority and schemes)
Among strategic options the fully integrated E2E payment provider seems most attractive
Fully integrated End2End Provider
White Label processing
AS IS POINT OF DEPARTURE
SECENARIOPOINT OF ARRIVAL
Among the strategic options the fully integrated End2End payment provider seems most attractive one
Beeing a truly fully service provider by means offering Processing Acquiring Issuing and NSPPSP out of one hand at the front- and back-end seems the most future-prooven strategy which also allows the
maximum customer-monetarization and high degree of merchant stickiness
23
Strategic Planning Strategic Choice
Fully integrated End2End payment provider ndash Strategy is based on focussing toward merchant with an integrated proposition delivered by inhouse-capacities belong the entire value chain
Customer Segment
Product Portfolio
Distribution amp Go-to-market
Market (geopraphy)
From Towards Out of scope
bull All kinds of industries bull All merchant sizes bull Focus Omni-channel customer
bull Focus on marktes EU and US
bull Banks bull Espacially Key Account
merchants
bull Serving all markets with same prioriry
bull Intergated multi sales channel offering via own salesforce
Truly global amp fully integrated E2E digital omnimulti-channel payment service provider
Deliver all payment services out of one hand worldwide scalable and agile solutions combined with best in class customer service ndash We empower Financial Service Provider amp merchants to benefit from
digitalization of payment and on-us processing
Our ambition is to become a fully integrated digital omnimulti-channel payment service provider ndash simple innovative targeted to consumer demands and with global reach
Vision
Mission
26
Cornerstones of RS2 Group-Strategy
Five pillars will drive the strategy to build an integrated omni-channel service provider
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
2) The IFRS conversion had a positiv impact of meuro 37 on net income
250
193221
2018 ACT 2018 adj 2019 ACT
Revenues
-44 -44
-48
2018 ACT 2018 adj 2019 ACT
Cash Flow
32
-05
-322018 ACT 2018 adj 2019 ACT
Net Profit
79
22
-02
2018 ACT 2018 adj 2019 ACT
EBITDA
1)
1)
2)
in eurom
31
Revenue by business lines 2018 vs 2019
Shift revenue into new business lines
155 136
38 85
2018 2019
Licensing Processing Acquiring
193
221
+127
-12
80
20
2018
62
38
2019
Deversifing of business linesGrowth due to enhanched product portfolio
In meuro
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
32
Revenue and EBITDA by legal entities
162 188
38 49
43 05
07 18
02
2018 2019
Revenues
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
+12
- 14
221
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
- 12
44 37
08 05
(28)(42)
(00)
02 03
(01) (01)
2018 2019
EBITDA
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
- 24 meuro
22In meuro
205
193 inter-company- 86
307 - 0123
- 02- 06
04
33
In million euro 2018 2018 2019 delta
adj
Revenue 250 193 221 28
Cost of sales (126) (126) (151) (25)
Gross profit 124 67 70 03
Marketing and promotional expenses (10) (10) (19) (08)
Administrative expenses (50) (50) (70) (21)
Other income expenses 02 02 (01) (03)
Results from operating activities 66 09 (20) (29)
Financial result (00) (00) (01) (01)
(Loss)Profit before income tax 66 09 (21) (30)
Income tax expense (33) (14) (11) 03
(Loss)Profit for the year 32 (05) (32) (27)
(Loss)Earnings per share 0022 (0002) (0008) (0006)
PampL 2018 and 2019
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
The IFRS conversion had a positiv impact of meuro 37 on net income
1)
Investments into marketing management and the integration of RS2 Germany
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
34
In million euro 2018 2019 delta
Assets
Property plant and equipment 94 92 (01)
Right-of-use assets 00 26 26
Intangible assets and goodwill 75 90 15
Other investment 10 10 00
Total non-current assets 179 217 39
Trade and other receivables 16 43 28
Accrued income and prepayments 52 33 (18)
Cash at bank and in hand 34 24 (10)
Total current assets 101 101 (00)
Total assets 280 318 38
Equity and Liabilities
Equity 172 141 (31)
Total non-current liabilities 42 67 24
Total current liabilities 65 111 45
Total liabilities 107 177 70
Total equity and liabilities 280 318 38
Balance Sheet 2018 and 2019
Mainly new bank borrowings to finance the US and Europen extended product portfolio
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
35
Cash Flow Statement 2018 and 2019
In million euro 2018 2019 delta
Cash flows from operating activities 13 (11) (24)
Cash flows from investing activities (21) (27) (05)
Cash flows from financing activities (35) 28 63
Net decrease in cash and cash equivalents (44) (10) 34
Cash and cash equivalents at 1 January 78 34 (44)
Effect of exchange rate fluctuations on cash held (00) 00 00
Cash and cash equivalents at 31 December 34 24 (10)
Invest in marketing and high qualified stuff to ensure growth
Financing future growth- 2019 new bank borrowings - 2018 repayment of bank
borrowings and dividend payment
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Thank you
together beyond payments
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Slide Number 36
PampL
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
1141695
2422211
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
PampL
In million euro
2018
2018
2019
delta
adj
Revenue
250
193
221
28
Cost of sales
(126)
(126)
(151)
(25)
Gross profit
124
67
70
03
Marketing and promotional expenses
(10)
(10)
(19)
(08)
Administrative expenses
(50)
(50)
(70)
(21)
Other income expenses
02
02
(01)
(03)
Results from operating activities
66
09
(20)
(29)
Financial result
(00)
(00)
(01)
(01)
(Loss)Profit before income tax
66
09
(21)
(30)
Income tax expense
(33)
(14)
(11)
03
(Loss)Profit for the year
32
(05)
(32)
(27)
(Loss)Earnings per share
0022
(0002)
(0008)
(0006)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
7
Highlights 2019
LATAM
Increase of services to our current customers in Brazil Argentina and Colombia
Partnership with MOViiRED to offer Direct Acquiring and Issuing
bull Leading challenger bank
bull MOVii has a strong base of 60000 POS terminals
bull 15 million client transactions per month
Expanding with current Managed Services client into other countries within the
region
Expanding with current Licenced clients by consolidating their entire cross -regional
business on the platform
8
Highlights 2019
APAC
Increase of services to our current customers both for Licenced and Managed
Services in several countries in the region
Preparation of Group wide services (Chargeback Call Center services)
Delivering payment as a service for issuing and acquiring to financial institutions of
any size and offering term licences for issuing and acquiring to large international
banks
Significant and strategic agreements in different industries
9
Executive Summary
Key highlights of RS2 amp RS2rsquos growth strategy
Solid financial base and market out-performance
Highly attractive industry
Strong market momentum
Clear Strategy for accelerated growth
Comprehensive technical solution1
2
3
4
5
bull RS2 is one of the only providers to offer a global omnimulti-channel platformbull 30 years market experience Worldwide presence with blue chip customer portfoliobull Uniquely positioned for global customers to process international amp local payment
bull Healthy financial positionbull Solid and prime long-term oriented shareholder-structurebull Over last years RS2 significantly outperformed the stock market
bull Double digit market growth in payment over last yearsbull Digitalization drives innovation and disruption and offers new revenue streamsbull Future tailwind is coming from consumer behavior regulation and digitalization
bull Consolidation process offers opportunities both for organic and inorganic growthbull Influence of leading-edge technology increases software is a crucial advantagebull High liquidity and cheap re-financing allow significant investments
relating to the Transaction Please detail any anticipated timetable constraints that you foresee regarding completion of the Transaction Jens
bull Future-driven strategy around the big opportunities in the payments-industry bull Ambition to become a full integrated digital omni-multi-channel payment provider bull Developed a clear strategic roadmap to implement strategy and to maintain focus
bull Founded in 1988 and headquartered in Malta RS2 Software develops software and managed services for card payment processing to banks and other Financial Institutions
bull The company operates in three segments
o Licensing engaged in licensing of the Companyrsquos BankWORKS software to banks and service providers including maintenance and services thereto
o Processing segment is involved in processing of payment transactions utilizing its BankWORKS software
o Merchant service New business-line to take next step in the payment value chain Solution is to directly serve merchants for acquiring and issuing solutions
bull RS2 has steadily significantly outperformed the market Shareholder returns over the last 5 years amount to gt250
bull Current market capitalization euro452m (as of 07-10-20)
Oct 19July 19 Aug 19 Feb 20Dec 19 April 20 July 20
Max euro256
Min euro159
Mar
ket s
hare
pri
ce
Company description Stock price development
Comparative return analysis
Act euro234
12
Internal Analysis of RS2 Organization
Overview about the RS2 GroupRS2 Software Plc
Mosta MLT~270 Employees
Holding Software development licensing
RS2 Germany GmbH
Neu-Isenburg GER~ 14 employees
Service provider for software Plc product mgt implementation
RS2 Merchant Services Europe GmbH
Neu-Isenburg GER0 employees
Holding for merchant business in Europe
RS2 Smart Processing Ltd
Mosta MLT~25 Employees
Processing-business for FI globally wo US
RS2 Software LAC LTDA
Sao Paulo BRA~ 1 employees
Sales amp service office for Latin America
RS2 Software APAC
Metro Manila PHL~22 employees
Sales for Software Plc amp Processing Ltd vice versa
service center for both
RS2 Software Inc
Denver USA ~35 employees
Processing for US Sub-Licensing for Key
Accounts
RS2 Financial Services GmbH
Neu-Isenburg GER~8 employees
Acquiring business E-Money for Europe
Kalicom Zahlungssysteme
GmbH
Neu-Isenburg GER~ 8 employees
ISO for Germany (Sales Service NSP)
100 100 9992 99 9999 6420
100 100
13
Internal Analysis of RS2 Organization
Employment statistics
Employee nationality and work location Employee development 2014 to 2019
59
9
7
7
15
4
Nationality Work location
73
9
75 4
2
No of employees by tenure in years (2019)
135116
71
28 17
gt 152 to 5lt 2 5 to 10 10 to 15
144188 217 244
282
368
201920182014 2015 2016 2017
CAGR +21
AmericanMaltese German
JordanPhilippines
Other USAMalta not defined Germany
Philippines Other
Competences
Management
IT amp Product Management
Customer
Back Office amp Administration
4
68
2
2
24
Sales amp Marketing
Back Office amp Operations
Customer Service
IT amp Product Management
Management
Competences
14
Internal Analysis of RS2 USPs
Unique Selling Points and Value Proposition overview of key differentiators
Omni ChannelTrue omni-channel covering all payment sources (online offline
mobile)
ScalableCloud-based solution linearly scalable with no lead-time for
infrastructure upgrade
One Global PlatformGlobal state of the art solution
and global coverage instant and real time payments
Reliable performanceRobust 9999 availability and
high performance engine
API enabledSingle platform with single API
integration ndash one source code for SMEs and large Enterprises
Highly ConfigurableConfigurable by client region currency business type and
channel
Customer experienceHigh integration over the payment
merchant and partner portal global reconciliation FX
bull RS2 is one of the only providers worldwide to offer global omnichannel payment services through a single integration to its cloud platform
bull RS2 is uniquely positioned to enable global customers to process both international and local payments
bull RS2 provides customers with a single view of their transactions through consolidated reporting and the reconciliation of their entire businesses across currencies and languages
bull It has a highly flexible platform allowing customers quicker time to market through a single API integration
Five main trends for opportunities and challenges in the payment ecosystem
Global payment revenues by region(USD trillions)
Market trends
02
2018
04
16
03
02
06
0103
2015
05
2011
0103
03
04
07
05
08
2017
0218
05
09
13 1419
2013
03
04
CAGR 56
Latin America EMEA North America APAC
Regulatory environment The EU has developed a comprehensive legislative payment framework aimed at keeping pace with the rapid evolution of the industry as well as preserve financial stability while creating a more competitive payment system (PSD2) and ICF regulation
Dynamic market growth Non-cash transactions grew by 12 globally during 2018 Asia and CEMEA growing by 20-30 Drivers are mobile payments contactless payments and shift to e-commerce
Technology invests of incumbents Main payment providers modernized there operations and infrastructure to support new product offerings and new technologies in order to generate new revenue sources
Boosted competition New entrants especially Big Techs have changed the dynamics in the industry as businesses and consumers shift from cash to digital payment methods ndash Apple as a game-changer
Consolidations The payments market is undergoing an unprecedented wave of consolidation with intensive MampA in payment services related to acquiring and broader merchant servicing
Global non-cash transactions (trillions)
67 102 152 185124 130145
161 168104 126
150183
206
2013
539
3539
29
2015
43
2017
46
2018
358436
605
2011
306
50
CAGR 102
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
17
Payment MarketGlobal Payment Market Development
Global payments revenue is expected to grow to about $27 trillion by 2022
Projected global non-cash transactions
020305
09
2018
030507
12
19
2022
27
CAGR 72
North AmericaLatin America EMEA APAC
Projected global payment revenues(USD trillions)
The future of payments
Continuous development from cash to electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions and the demand in rich payment solutions is expected to generate additional $18 trillion in revenues by 2022The APAC region especially China is expected to grow by gt30 from 2018 to 2022 reaching $12 trillion in revenues
Consolidation process is expected to continue to gain momentum in the current economic situation with interest rates being down creating large international players
Fostered by regulators contactless penetration is set to bring mobile in-store solutions to prominence in the coming years
Projected payment revenues by region(USD trillions)
185443168
202206
343
46
2018 2022
605
581045
CAGR 146
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
Green technology is expected to increase in importance in the coming years with a focus on sustainable energy supply for data centers and production of terminals general waste reduction etc
Technology is rapidly changing the entire payment industry ecosystem The move away from cash towards electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions demand for instant cross-border payment solutions increasing data protection demands and cyber risks foster technological advancements
18
Payment MarketImpact of COVID-19 on Payments
Impact of COVID-19 pandemic on payments
bull Significant decrease of global payment-revenue with negative growthbull Most affected industries Hospitality and tourism retail airlines events hotels restaurants But also some
segments can benefit from the crisis like E-Commerce gardenflower-retail food delivery service supermarkets
bull Acceleration of cash displacement towards contactless payment infrastructure and migration to terminals without pin-pads
Short term
Mid Long term
29 Countries have raised contatless payment limits
Contactless payment limits
30More planned online shopping of current online-shoppers
Increasing e-com sales Declining in travel
88Drop of number of passengers traveling at EU airports
Decline x-border payments
58Cross-border transaction flow decline
bull Accelerated shift from POS to E-Commercebull Shift in consumer behavior will lead in an accelerated growth for card based payments at POSbull Self-checkout or ldquoorder amp collectrdquo solutions gaining popularity pre-crisis contactless payment
cards with increasing penetrationbull Expected uptake in regional travel on the back of certain international travel (eg cruises)
shifting spending patterns and revenue opportunities Proven effectiveness of virtual meetings reducing business travel expected This lead in a lasting drop for some segments like Airlines Hotels Events hitting their business model and in less cross boarder transactions
In mid-term payments can profit from the corona crises but in a shift in customer-industries infrastructure-equipment and channels
Strategic Marketsbull US and Europe to focus onbull Organic growth supported by tec-driven solutionsbull Inorganic growth address targets with complementary
capabilities
02Products Customers
01
bull Densified value chainbull Technical development of in-house solutionsbull Focus on customers not adequately served
resulting from mega-mergers
bull Seek funding for accelerated growthbull Foster sales and marketing capabilitiesbull Reach critical market share to capitalize on
necessary infrastructure investmentsbull Reduce dependencies from external providers bull Increase control along the value chain to
maximize client stickinessbull Get own licenses (authority and schemes)
Among strategic options the fully integrated E2E payment provider seems most attractive
Fully integrated End2End Provider
White Label processing
AS IS POINT OF DEPARTURE
SECENARIOPOINT OF ARRIVAL
Among the strategic options the fully integrated End2End payment provider seems most attractive one
Beeing a truly fully service provider by means offering Processing Acquiring Issuing and NSPPSP out of one hand at the front- and back-end seems the most future-prooven strategy which also allows the
maximum customer-monetarization and high degree of merchant stickiness
23
Strategic Planning Strategic Choice
Fully integrated End2End payment provider ndash Strategy is based on focussing toward merchant with an integrated proposition delivered by inhouse-capacities belong the entire value chain
Customer Segment
Product Portfolio
Distribution amp Go-to-market
Market (geopraphy)
From Towards Out of scope
bull All kinds of industries bull All merchant sizes bull Focus Omni-channel customer
bull Focus on marktes EU and US
bull Banks bull Espacially Key Account
merchants
bull Serving all markets with same prioriry
bull Intergated multi sales channel offering via own salesforce
Truly global amp fully integrated E2E digital omnimulti-channel payment service provider
Deliver all payment services out of one hand worldwide scalable and agile solutions combined with best in class customer service ndash We empower Financial Service Provider amp merchants to benefit from
digitalization of payment and on-us processing
Our ambition is to become a fully integrated digital omnimulti-channel payment service provider ndash simple innovative targeted to consumer demands and with global reach
Vision
Mission
26
Cornerstones of RS2 Group-Strategy
Five pillars will drive the strategy to build an integrated omni-channel service provider
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
2) The IFRS conversion had a positiv impact of meuro 37 on net income
250
193221
2018 ACT 2018 adj 2019 ACT
Revenues
-44 -44
-48
2018 ACT 2018 adj 2019 ACT
Cash Flow
32
-05
-322018 ACT 2018 adj 2019 ACT
Net Profit
79
22
-02
2018 ACT 2018 adj 2019 ACT
EBITDA
1)
1)
2)
in eurom
31
Revenue by business lines 2018 vs 2019
Shift revenue into new business lines
155 136
38 85
2018 2019
Licensing Processing Acquiring
193
221
+127
-12
80
20
2018
62
38
2019
Deversifing of business linesGrowth due to enhanched product portfolio
In meuro
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
32
Revenue and EBITDA by legal entities
162 188
38 49
43 05
07 18
02
2018 2019
Revenues
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
+12
- 14
221
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
- 12
44 37
08 05
(28)(42)
(00)
02 03
(01) (01)
2018 2019
EBITDA
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
- 24 meuro
22In meuro
205
193 inter-company- 86
307 - 0123
- 02- 06
04
33
In million euro 2018 2018 2019 delta
adj
Revenue 250 193 221 28
Cost of sales (126) (126) (151) (25)
Gross profit 124 67 70 03
Marketing and promotional expenses (10) (10) (19) (08)
Administrative expenses (50) (50) (70) (21)
Other income expenses 02 02 (01) (03)
Results from operating activities 66 09 (20) (29)
Financial result (00) (00) (01) (01)
(Loss)Profit before income tax 66 09 (21) (30)
Income tax expense (33) (14) (11) 03
(Loss)Profit for the year 32 (05) (32) (27)
(Loss)Earnings per share 0022 (0002) (0008) (0006)
PampL 2018 and 2019
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
The IFRS conversion had a positiv impact of meuro 37 on net income
1)
Investments into marketing management and the integration of RS2 Germany
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
34
In million euro 2018 2019 delta
Assets
Property plant and equipment 94 92 (01)
Right-of-use assets 00 26 26
Intangible assets and goodwill 75 90 15
Other investment 10 10 00
Total non-current assets 179 217 39
Trade and other receivables 16 43 28
Accrued income and prepayments 52 33 (18)
Cash at bank and in hand 34 24 (10)
Total current assets 101 101 (00)
Total assets 280 318 38
Equity and Liabilities
Equity 172 141 (31)
Total non-current liabilities 42 67 24
Total current liabilities 65 111 45
Total liabilities 107 177 70
Total equity and liabilities 280 318 38
Balance Sheet 2018 and 2019
Mainly new bank borrowings to finance the US and Europen extended product portfolio
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
35
Cash Flow Statement 2018 and 2019
In million euro 2018 2019 delta
Cash flows from operating activities 13 (11) (24)
Cash flows from investing activities (21) (27) (05)
Cash flows from financing activities (35) 28 63
Net decrease in cash and cash equivalents (44) (10) 34
Cash and cash equivalents at 1 January 78 34 (44)
Effect of exchange rate fluctuations on cash held (00) 00 00
Cash and cash equivalents at 31 December 34 24 (10)
Invest in marketing and high qualified stuff to ensure growth
Financing future growth- 2019 new bank borrowings - 2018 repayment of bank
borrowings and dividend payment
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Thank you
together beyond payments
Slide Number 1
Slide Number 2
Slide Number 3
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Slide Number 7
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Slide Number 10
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Slide Number 15
Slide Number 16
Slide Number 17
Slide Number 18
Slide Number 19
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Slide Number 22
Slide Number 23
Slide Number 24
Slide Number 25
Slide Number 26
Slide Number 27
Slide Number 28
Slide Number 29
Slide Number 30
Slide Number 31
Slide Number 32
Slide Number 33
Slide Number 34
Slide Number 35
Slide Number 36
PampL
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
1141695
2422211
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
PampL
In million euro
2018
2018
2019
delta
adj
Revenue
250
193
221
28
Cost of sales
(126)
(126)
(151)
(25)
Gross profit
124
67
70
03
Marketing and promotional expenses
(10)
(10)
(19)
(08)
Administrative expenses
(50)
(50)
(70)
(21)
Other income expenses
02
02
(01)
(03)
Results from operating activities
66
09
(20)
(29)
Financial result
(00)
(00)
(01)
(01)
(Loss)Profit before income tax
66
09
(21)
(30)
Income tax expense
(33)
(14)
(11)
03
(Loss)Profit for the year
32
(05)
(32)
(27)
(Loss)Earnings per share
0022
(0002)
(0008)
(0006)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
8
Highlights 2019
APAC
Increase of services to our current customers both for Licenced and Managed
Services in several countries in the region
Preparation of Group wide services (Chargeback Call Center services)
Delivering payment as a service for issuing and acquiring to financial institutions of
any size and offering term licences for issuing and acquiring to large international
banks
Significant and strategic agreements in different industries
9
Executive Summary
Key highlights of RS2 amp RS2rsquos growth strategy
Solid financial base and market out-performance
Highly attractive industry
Strong market momentum
Clear Strategy for accelerated growth
Comprehensive technical solution1
2
3
4
5
bull RS2 is one of the only providers to offer a global omnimulti-channel platformbull 30 years market experience Worldwide presence with blue chip customer portfoliobull Uniquely positioned for global customers to process international amp local payment
bull Healthy financial positionbull Solid and prime long-term oriented shareholder-structurebull Over last years RS2 significantly outperformed the stock market
bull Double digit market growth in payment over last yearsbull Digitalization drives innovation and disruption and offers new revenue streamsbull Future tailwind is coming from consumer behavior regulation and digitalization
bull Consolidation process offers opportunities both for organic and inorganic growthbull Influence of leading-edge technology increases software is a crucial advantagebull High liquidity and cheap re-financing allow significant investments
relating to the Transaction Please detail any anticipated timetable constraints that you foresee regarding completion of the Transaction Jens
bull Future-driven strategy around the big opportunities in the payments-industry bull Ambition to become a full integrated digital omni-multi-channel payment provider bull Developed a clear strategic roadmap to implement strategy and to maintain focus
bull Founded in 1988 and headquartered in Malta RS2 Software develops software and managed services for card payment processing to banks and other Financial Institutions
bull The company operates in three segments
o Licensing engaged in licensing of the Companyrsquos BankWORKS software to banks and service providers including maintenance and services thereto
o Processing segment is involved in processing of payment transactions utilizing its BankWORKS software
o Merchant service New business-line to take next step in the payment value chain Solution is to directly serve merchants for acquiring and issuing solutions
bull RS2 has steadily significantly outperformed the market Shareholder returns over the last 5 years amount to gt250
bull Current market capitalization euro452m (as of 07-10-20)
Oct 19July 19 Aug 19 Feb 20Dec 19 April 20 July 20
Max euro256
Min euro159
Mar
ket s
hare
pri
ce
Company description Stock price development
Comparative return analysis
Act euro234
12
Internal Analysis of RS2 Organization
Overview about the RS2 GroupRS2 Software Plc
Mosta MLT~270 Employees
Holding Software development licensing
RS2 Germany GmbH
Neu-Isenburg GER~ 14 employees
Service provider for software Plc product mgt implementation
RS2 Merchant Services Europe GmbH
Neu-Isenburg GER0 employees
Holding for merchant business in Europe
RS2 Smart Processing Ltd
Mosta MLT~25 Employees
Processing-business for FI globally wo US
RS2 Software LAC LTDA
Sao Paulo BRA~ 1 employees
Sales amp service office for Latin America
RS2 Software APAC
Metro Manila PHL~22 employees
Sales for Software Plc amp Processing Ltd vice versa
service center for both
RS2 Software Inc
Denver USA ~35 employees
Processing for US Sub-Licensing for Key
Accounts
RS2 Financial Services GmbH
Neu-Isenburg GER~8 employees
Acquiring business E-Money for Europe
Kalicom Zahlungssysteme
GmbH
Neu-Isenburg GER~ 8 employees
ISO for Germany (Sales Service NSP)
100 100 9992 99 9999 6420
100 100
13
Internal Analysis of RS2 Organization
Employment statistics
Employee nationality and work location Employee development 2014 to 2019
59
9
7
7
15
4
Nationality Work location
73
9
75 4
2
No of employees by tenure in years (2019)
135116
71
28 17
gt 152 to 5lt 2 5 to 10 10 to 15
144188 217 244
282
368
201920182014 2015 2016 2017
CAGR +21
AmericanMaltese German
JordanPhilippines
Other USAMalta not defined Germany
Philippines Other
Competences
Management
IT amp Product Management
Customer
Back Office amp Administration
4
68
2
2
24
Sales amp Marketing
Back Office amp Operations
Customer Service
IT amp Product Management
Management
Competences
14
Internal Analysis of RS2 USPs
Unique Selling Points and Value Proposition overview of key differentiators
Omni ChannelTrue omni-channel covering all payment sources (online offline
mobile)
ScalableCloud-based solution linearly scalable with no lead-time for
infrastructure upgrade
One Global PlatformGlobal state of the art solution
and global coverage instant and real time payments
Reliable performanceRobust 9999 availability and
high performance engine
API enabledSingle platform with single API
integration ndash one source code for SMEs and large Enterprises
Highly ConfigurableConfigurable by client region currency business type and
channel
Customer experienceHigh integration over the payment
merchant and partner portal global reconciliation FX
bull RS2 is one of the only providers worldwide to offer global omnichannel payment services through a single integration to its cloud platform
bull RS2 is uniquely positioned to enable global customers to process both international and local payments
bull RS2 provides customers with a single view of their transactions through consolidated reporting and the reconciliation of their entire businesses across currencies and languages
bull It has a highly flexible platform allowing customers quicker time to market through a single API integration
Five main trends for opportunities and challenges in the payment ecosystem
Global payment revenues by region(USD trillions)
Market trends
02
2018
04
16
03
02
06
0103
2015
05
2011
0103
03
04
07
05
08
2017
0218
05
09
13 1419
2013
03
04
CAGR 56
Latin America EMEA North America APAC
Regulatory environment The EU has developed a comprehensive legislative payment framework aimed at keeping pace with the rapid evolution of the industry as well as preserve financial stability while creating a more competitive payment system (PSD2) and ICF regulation
Dynamic market growth Non-cash transactions grew by 12 globally during 2018 Asia and CEMEA growing by 20-30 Drivers are mobile payments contactless payments and shift to e-commerce
Technology invests of incumbents Main payment providers modernized there operations and infrastructure to support new product offerings and new technologies in order to generate new revenue sources
Boosted competition New entrants especially Big Techs have changed the dynamics in the industry as businesses and consumers shift from cash to digital payment methods ndash Apple as a game-changer
Consolidations The payments market is undergoing an unprecedented wave of consolidation with intensive MampA in payment services related to acquiring and broader merchant servicing
Global non-cash transactions (trillions)
67 102 152 185124 130145
161 168104 126
150183
206
2013
539
3539
29
2015
43
2017
46
2018
358436
605
2011
306
50
CAGR 102
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
17
Payment MarketGlobal Payment Market Development
Global payments revenue is expected to grow to about $27 trillion by 2022
Projected global non-cash transactions
020305
09
2018
030507
12
19
2022
27
CAGR 72
North AmericaLatin America EMEA APAC
Projected global payment revenues(USD trillions)
The future of payments
Continuous development from cash to electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions and the demand in rich payment solutions is expected to generate additional $18 trillion in revenues by 2022The APAC region especially China is expected to grow by gt30 from 2018 to 2022 reaching $12 trillion in revenues
Consolidation process is expected to continue to gain momentum in the current economic situation with interest rates being down creating large international players
Fostered by regulators contactless penetration is set to bring mobile in-store solutions to prominence in the coming years
Projected payment revenues by region(USD trillions)
185443168
202206
343
46
2018 2022
605
581045
CAGR 146
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
Green technology is expected to increase in importance in the coming years with a focus on sustainable energy supply for data centers and production of terminals general waste reduction etc
Technology is rapidly changing the entire payment industry ecosystem The move away from cash towards electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions demand for instant cross-border payment solutions increasing data protection demands and cyber risks foster technological advancements
18
Payment MarketImpact of COVID-19 on Payments
Impact of COVID-19 pandemic on payments
bull Significant decrease of global payment-revenue with negative growthbull Most affected industries Hospitality and tourism retail airlines events hotels restaurants But also some
segments can benefit from the crisis like E-Commerce gardenflower-retail food delivery service supermarkets
bull Acceleration of cash displacement towards contactless payment infrastructure and migration to terminals without pin-pads
Short term
Mid Long term
29 Countries have raised contatless payment limits
Contactless payment limits
30More planned online shopping of current online-shoppers
Increasing e-com sales Declining in travel
88Drop of number of passengers traveling at EU airports
Decline x-border payments
58Cross-border transaction flow decline
bull Accelerated shift from POS to E-Commercebull Shift in consumer behavior will lead in an accelerated growth for card based payments at POSbull Self-checkout or ldquoorder amp collectrdquo solutions gaining popularity pre-crisis contactless payment
cards with increasing penetrationbull Expected uptake in regional travel on the back of certain international travel (eg cruises)
shifting spending patterns and revenue opportunities Proven effectiveness of virtual meetings reducing business travel expected This lead in a lasting drop for some segments like Airlines Hotels Events hitting their business model and in less cross boarder transactions
In mid-term payments can profit from the corona crises but in a shift in customer-industries infrastructure-equipment and channels
Strategic Marketsbull US and Europe to focus onbull Organic growth supported by tec-driven solutionsbull Inorganic growth address targets with complementary
capabilities
02Products Customers
01
bull Densified value chainbull Technical development of in-house solutionsbull Focus on customers not adequately served
resulting from mega-mergers
bull Seek funding for accelerated growthbull Foster sales and marketing capabilitiesbull Reach critical market share to capitalize on
necessary infrastructure investmentsbull Reduce dependencies from external providers bull Increase control along the value chain to
maximize client stickinessbull Get own licenses (authority and schemes)
Among strategic options the fully integrated E2E payment provider seems most attractive
Fully integrated End2End Provider
White Label processing
AS IS POINT OF DEPARTURE
SECENARIOPOINT OF ARRIVAL
Among the strategic options the fully integrated End2End payment provider seems most attractive one
Beeing a truly fully service provider by means offering Processing Acquiring Issuing and NSPPSP out of one hand at the front- and back-end seems the most future-prooven strategy which also allows the
maximum customer-monetarization and high degree of merchant stickiness
23
Strategic Planning Strategic Choice
Fully integrated End2End payment provider ndash Strategy is based on focussing toward merchant with an integrated proposition delivered by inhouse-capacities belong the entire value chain
Customer Segment
Product Portfolio
Distribution amp Go-to-market
Market (geopraphy)
From Towards Out of scope
bull All kinds of industries bull All merchant sizes bull Focus Omni-channel customer
bull Focus on marktes EU and US
bull Banks bull Espacially Key Account
merchants
bull Serving all markets with same prioriry
bull Intergated multi sales channel offering via own salesforce
Truly global amp fully integrated E2E digital omnimulti-channel payment service provider
Deliver all payment services out of one hand worldwide scalable and agile solutions combined with best in class customer service ndash We empower Financial Service Provider amp merchants to benefit from
digitalization of payment and on-us processing
Our ambition is to become a fully integrated digital omnimulti-channel payment service provider ndash simple innovative targeted to consumer demands and with global reach
Vision
Mission
26
Cornerstones of RS2 Group-Strategy
Five pillars will drive the strategy to build an integrated omni-channel service provider
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
2) The IFRS conversion had a positiv impact of meuro 37 on net income
250
193221
2018 ACT 2018 adj 2019 ACT
Revenues
-44 -44
-48
2018 ACT 2018 adj 2019 ACT
Cash Flow
32
-05
-322018 ACT 2018 adj 2019 ACT
Net Profit
79
22
-02
2018 ACT 2018 adj 2019 ACT
EBITDA
1)
1)
2)
in eurom
31
Revenue by business lines 2018 vs 2019
Shift revenue into new business lines
155 136
38 85
2018 2019
Licensing Processing Acquiring
193
221
+127
-12
80
20
2018
62
38
2019
Deversifing of business linesGrowth due to enhanched product portfolio
In meuro
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
32
Revenue and EBITDA by legal entities
162 188
38 49
43 05
07 18
02
2018 2019
Revenues
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
+12
- 14
221
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
- 12
44 37
08 05
(28)(42)
(00)
02 03
(01) (01)
2018 2019
EBITDA
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
- 24 meuro
22In meuro
205
193 inter-company- 86
307 - 0123
- 02- 06
04
33
In million euro 2018 2018 2019 delta
adj
Revenue 250 193 221 28
Cost of sales (126) (126) (151) (25)
Gross profit 124 67 70 03
Marketing and promotional expenses (10) (10) (19) (08)
Administrative expenses (50) (50) (70) (21)
Other income expenses 02 02 (01) (03)
Results from operating activities 66 09 (20) (29)
Financial result (00) (00) (01) (01)
(Loss)Profit before income tax 66 09 (21) (30)
Income tax expense (33) (14) (11) 03
(Loss)Profit for the year 32 (05) (32) (27)
(Loss)Earnings per share 0022 (0002) (0008) (0006)
PampL 2018 and 2019
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
The IFRS conversion had a positiv impact of meuro 37 on net income
1)
Investments into marketing management and the integration of RS2 Germany
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
34
In million euro 2018 2019 delta
Assets
Property plant and equipment 94 92 (01)
Right-of-use assets 00 26 26
Intangible assets and goodwill 75 90 15
Other investment 10 10 00
Total non-current assets 179 217 39
Trade and other receivables 16 43 28
Accrued income and prepayments 52 33 (18)
Cash at bank and in hand 34 24 (10)
Total current assets 101 101 (00)
Total assets 280 318 38
Equity and Liabilities
Equity 172 141 (31)
Total non-current liabilities 42 67 24
Total current liabilities 65 111 45
Total liabilities 107 177 70
Total equity and liabilities 280 318 38
Balance Sheet 2018 and 2019
Mainly new bank borrowings to finance the US and Europen extended product portfolio
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
35
Cash Flow Statement 2018 and 2019
In million euro 2018 2019 delta
Cash flows from operating activities 13 (11) (24)
Cash flows from investing activities (21) (27) (05)
Cash flows from financing activities (35) 28 63
Net decrease in cash and cash equivalents (44) (10) 34
Cash and cash equivalents at 1 January 78 34 (44)
Effect of exchange rate fluctuations on cash held (00) 00 00
Cash and cash equivalents at 31 December 34 24 (10)
Invest in marketing and high qualified stuff to ensure growth
Financing future growth- 2019 new bank borrowings - 2018 repayment of bank
borrowings and dividend payment
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Thank you
together beyond payments
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Slide Number 35
Slide Number 36
PampL
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
1141695
2422211
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
PampL
In million euro
2018
2018
2019
delta
adj
Revenue
250
193
221
28
Cost of sales
(126)
(126)
(151)
(25)
Gross profit
124
67
70
03
Marketing and promotional expenses
(10)
(10)
(19)
(08)
Administrative expenses
(50)
(50)
(70)
(21)
Other income expenses
02
02
(01)
(03)
Results from operating activities
66
09
(20)
(29)
Financial result
(00)
(00)
(01)
(01)
(Loss)Profit before income tax
66
09
(21)
(30)
Income tax expense
(33)
(14)
(11)
03
(Loss)Profit for the year
32
(05)
(32)
(27)
(Loss)Earnings per share
0022
(0002)
(0008)
(0006)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
9
Executive Summary
Key highlights of RS2 amp RS2rsquos growth strategy
Solid financial base and market out-performance
Highly attractive industry
Strong market momentum
Clear Strategy for accelerated growth
Comprehensive technical solution1
2
3
4
5
bull RS2 is one of the only providers to offer a global omnimulti-channel platformbull 30 years market experience Worldwide presence with blue chip customer portfoliobull Uniquely positioned for global customers to process international amp local payment
bull Healthy financial positionbull Solid and prime long-term oriented shareholder-structurebull Over last years RS2 significantly outperformed the stock market
bull Double digit market growth in payment over last yearsbull Digitalization drives innovation and disruption and offers new revenue streamsbull Future tailwind is coming from consumer behavior regulation and digitalization
bull Consolidation process offers opportunities both for organic and inorganic growthbull Influence of leading-edge technology increases software is a crucial advantagebull High liquidity and cheap re-financing allow significant investments
relating to the Transaction Please detail any anticipated timetable constraints that you foresee regarding completion of the Transaction Jens
bull Future-driven strategy around the big opportunities in the payments-industry bull Ambition to become a full integrated digital omni-multi-channel payment provider bull Developed a clear strategic roadmap to implement strategy and to maintain focus
bull Founded in 1988 and headquartered in Malta RS2 Software develops software and managed services for card payment processing to banks and other Financial Institutions
bull The company operates in three segments
o Licensing engaged in licensing of the Companyrsquos BankWORKS software to banks and service providers including maintenance and services thereto
o Processing segment is involved in processing of payment transactions utilizing its BankWORKS software
o Merchant service New business-line to take next step in the payment value chain Solution is to directly serve merchants for acquiring and issuing solutions
bull RS2 has steadily significantly outperformed the market Shareholder returns over the last 5 years amount to gt250
bull Current market capitalization euro452m (as of 07-10-20)
Oct 19July 19 Aug 19 Feb 20Dec 19 April 20 July 20
Max euro256
Min euro159
Mar
ket s
hare
pri
ce
Company description Stock price development
Comparative return analysis
Act euro234
12
Internal Analysis of RS2 Organization
Overview about the RS2 GroupRS2 Software Plc
Mosta MLT~270 Employees
Holding Software development licensing
RS2 Germany GmbH
Neu-Isenburg GER~ 14 employees
Service provider for software Plc product mgt implementation
RS2 Merchant Services Europe GmbH
Neu-Isenburg GER0 employees
Holding for merchant business in Europe
RS2 Smart Processing Ltd
Mosta MLT~25 Employees
Processing-business for FI globally wo US
RS2 Software LAC LTDA
Sao Paulo BRA~ 1 employees
Sales amp service office for Latin America
RS2 Software APAC
Metro Manila PHL~22 employees
Sales for Software Plc amp Processing Ltd vice versa
service center for both
RS2 Software Inc
Denver USA ~35 employees
Processing for US Sub-Licensing for Key
Accounts
RS2 Financial Services GmbH
Neu-Isenburg GER~8 employees
Acquiring business E-Money for Europe
Kalicom Zahlungssysteme
GmbH
Neu-Isenburg GER~ 8 employees
ISO for Germany (Sales Service NSP)
100 100 9992 99 9999 6420
100 100
13
Internal Analysis of RS2 Organization
Employment statistics
Employee nationality and work location Employee development 2014 to 2019
59
9
7
7
15
4
Nationality Work location
73
9
75 4
2
No of employees by tenure in years (2019)
135116
71
28 17
gt 152 to 5lt 2 5 to 10 10 to 15
144188 217 244
282
368
201920182014 2015 2016 2017
CAGR +21
AmericanMaltese German
JordanPhilippines
Other USAMalta not defined Germany
Philippines Other
Competences
Management
IT amp Product Management
Customer
Back Office amp Administration
4
68
2
2
24
Sales amp Marketing
Back Office amp Operations
Customer Service
IT amp Product Management
Management
Competences
14
Internal Analysis of RS2 USPs
Unique Selling Points and Value Proposition overview of key differentiators
Omni ChannelTrue omni-channel covering all payment sources (online offline
mobile)
ScalableCloud-based solution linearly scalable with no lead-time for
infrastructure upgrade
One Global PlatformGlobal state of the art solution
and global coverage instant and real time payments
Reliable performanceRobust 9999 availability and
high performance engine
API enabledSingle platform with single API
integration ndash one source code for SMEs and large Enterprises
Highly ConfigurableConfigurable by client region currency business type and
channel
Customer experienceHigh integration over the payment
merchant and partner portal global reconciliation FX
bull RS2 is one of the only providers worldwide to offer global omnichannel payment services through a single integration to its cloud platform
bull RS2 is uniquely positioned to enable global customers to process both international and local payments
bull RS2 provides customers with a single view of their transactions through consolidated reporting and the reconciliation of their entire businesses across currencies and languages
bull It has a highly flexible platform allowing customers quicker time to market through a single API integration
Five main trends for opportunities and challenges in the payment ecosystem
Global payment revenues by region(USD trillions)
Market trends
02
2018
04
16
03
02
06
0103
2015
05
2011
0103
03
04
07
05
08
2017
0218
05
09
13 1419
2013
03
04
CAGR 56
Latin America EMEA North America APAC
Regulatory environment The EU has developed a comprehensive legislative payment framework aimed at keeping pace with the rapid evolution of the industry as well as preserve financial stability while creating a more competitive payment system (PSD2) and ICF regulation
Dynamic market growth Non-cash transactions grew by 12 globally during 2018 Asia and CEMEA growing by 20-30 Drivers are mobile payments contactless payments and shift to e-commerce
Technology invests of incumbents Main payment providers modernized there operations and infrastructure to support new product offerings and new technologies in order to generate new revenue sources
Boosted competition New entrants especially Big Techs have changed the dynamics in the industry as businesses and consumers shift from cash to digital payment methods ndash Apple as a game-changer
Consolidations The payments market is undergoing an unprecedented wave of consolidation with intensive MampA in payment services related to acquiring and broader merchant servicing
Global non-cash transactions (trillions)
67 102 152 185124 130145
161 168104 126
150183
206
2013
539
3539
29
2015
43
2017
46
2018
358436
605
2011
306
50
CAGR 102
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
17
Payment MarketGlobal Payment Market Development
Global payments revenue is expected to grow to about $27 trillion by 2022
Projected global non-cash transactions
020305
09
2018
030507
12
19
2022
27
CAGR 72
North AmericaLatin America EMEA APAC
Projected global payment revenues(USD trillions)
The future of payments
Continuous development from cash to electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions and the demand in rich payment solutions is expected to generate additional $18 trillion in revenues by 2022The APAC region especially China is expected to grow by gt30 from 2018 to 2022 reaching $12 trillion in revenues
Consolidation process is expected to continue to gain momentum in the current economic situation with interest rates being down creating large international players
Fostered by regulators contactless penetration is set to bring mobile in-store solutions to prominence in the coming years
Projected payment revenues by region(USD trillions)
185443168
202206
343
46
2018 2022
605
581045
CAGR 146
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
Green technology is expected to increase in importance in the coming years with a focus on sustainable energy supply for data centers and production of terminals general waste reduction etc
Technology is rapidly changing the entire payment industry ecosystem The move away from cash towards electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions demand for instant cross-border payment solutions increasing data protection demands and cyber risks foster technological advancements
18
Payment MarketImpact of COVID-19 on Payments
Impact of COVID-19 pandemic on payments
bull Significant decrease of global payment-revenue with negative growthbull Most affected industries Hospitality and tourism retail airlines events hotels restaurants But also some
segments can benefit from the crisis like E-Commerce gardenflower-retail food delivery service supermarkets
bull Acceleration of cash displacement towards contactless payment infrastructure and migration to terminals without pin-pads
Short term
Mid Long term
29 Countries have raised contatless payment limits
Contactless payment limits
30More planned online shopping of current online-shoppers
Increasing e-com sales Declining in travel
88Drop of number of passengers traveling at EU airports
Decline x-border payments
58Cross-border transaction flow decline
bull Accelerated shift from POS to E-Commercebull Shift in consumer behavior will lead in an accelerated growth for card based payments at POSbull Self-checkout or ldquoorder amp collectrdquo solutions gaining popularity pre-crisis contactless payment
cards with increasing penetrationbull Expected uptake in regional travel on the back of certain international travel (eg cruises)
shifting spending patterns and revenue opportunities Proven effectiveness of virtual meetings reducing business travel expected This lead in a lasting drop for some segments like Airlines Hotels Events hitting their business model and in less cross boarder transactions
In mid-term payments can profit from the corona crises but in a shift in customer-industries infrastructure-equipment and channels
Strategic Marketsbull US and Europe to focus onbull Organic growth supported by tec-driven solutionsbull Inorganic growth address targets with complementary
capabilities
02Products Customers
01
bull Densified value chainbull Technical development of in-house solutionsbull Focus on customers not adequately served
resulting from mega-mergers
bull Seek funding for accelerated growthbull Foster sales and marketing capabilitiesbull Reach critical market share to capitalize on
necessary infrastructure investmentsbull Reduce dependencies from external providers bull Increase control along the value chain to
maximize client stickinessbull Get own licenses (authority and schemes)
Among strategic options the fully integrated E2E payment provider seems most attractive
Fully integrated End2End Provider
White Label processing
AS IS POINT OF DEPARTURE
SECENARIOPOINT OF ARRIVAL
Among the strategic options the fully integrated End2End payment provider seems most attractive one
Beeing a truly fully service provider by means offering Processing Acquiring Issuing and NSPPSP out of one hand at the front- and back-end seems the most future-prooven strategy which also allows the
maximum customer-monetarization and high degree of merchant stickiness
23
Strategic Planning Strategic Choice
Fully integrated End2End payment provider ndash Strategy is based on focussing toward merchant with an integrated proposition delivered by inhouse-capacities belong the entire value chain
Customer Segment
Product Portfolio
Distribution amp Go-to-market
Market (geopraphy)
From Towards Out of scope
bull All kinds of industries bull All merchant sizes bull Focus Omni-channel customer
bull Focus on marktes EU and US
bull Banks bull Espacially Key Account
merchants
bull Serving all markets with same prioriry
bull Intergated multi sales channel offering via own salesforce
Truly global amp fully integrated E2E digital omnimulti-channel payment service provider
Deliver all payment services out of one hand worldwide scalable and agile solutions combined with best in class customer service ndash We empower Financial Service Provider amp merchants to benefit from
digitalization of payment and on-us processing
Our ambition is to become a fully integrated digital omnimulti-channel payment service provider ndash simple innovative targeted to consumer demands and with global reach
Vision
Mission
26
Cornerstones of RS2 Group-Strategy
Five pillars will drive the strategy to build an integrated omni-channel service provider
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
2) The IFRS conversion had a positiv impact of meuro 37 on net income
250
193221
2018 ACT 2018 adj 2019 ACT
Revenues
-44 -44
-48
2018 ACT 2018 adj 2019 ACT
Cash Flow
32
-05
-322018 ACT 2018 adj 2019 ACT
Net Profit
79
22
-02
2018 ACT 2018 adj 2019 ACT
EBITDA
1)
1)
2)
in eurom
31
Revenue by business lines 2018 vs 2019
Shift revenue into new business lines
155 136
38 85
2018 2019
Licensing Processing Acquiring
193
221
+127
-12
80
20
2018
62
38
2019
Deversifing of business linesGrowth due to enhanched product portfolio
In meuro
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
32
Revenue and EBITDA by legal entities
162 188
38 49
43 05
07 18
02
2018 2019
Revenues
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
+12
- 14
221
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
- 12
44 37
08 05
(28)(42)
(00)
02 03
(01) (01)
2018 2019
EBITDA
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
- 24 meuro
22In meuro
205
193 inter-company- 86
307 - 0123
- 02- 06
04
33
In million euro 2018 2018 2019 delta
adj
Revenue 250 193 221 28
Cost of sales (126) (126) (151) (25)
Gross profit 124 67 70 03
Marketing and promotional expenses (10) (10) (19) (08)
Administrative expenses (50) (50) (70) (21)
Other income expenses 02 02 (01) (03)
Results from operating activities 66 09 (20) (29)
Financial result (00) (00) (01) (01)
(Loss)Profit before income tax 66 09 (21) (30)
Income tax expense (33) (14) (11) 03
(Loss)Profit for the year 32 (05) (32) (27)
(Loss)Earnings per share 0022 (0002) (0008) (0006)
PampL 2018 and 2019
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
The IFRS conversion had a positiv impact of meuro 37 on net income
1)
Investments into marketing management and the integration of RS2 Germany
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
34
In million euro 2018 2019 delta
Assets
Property plant and equipment 94 92 (01)
Right-of-use assets 00 26 26
Intangible assets and goodwill 75 90 15
Other investment 10 10 00
Total non-current assets 179 217 39
Trade and other receivables 16 43 28
Accrued income and prepayments 52 33 (18)
Cash at bank and in hand 34 24 (10)
Total current assets 101 101 (00)
Total assets 280 318 38
Equity and Liabilities
Equity 172 141 (31)
Total non-current liabilities 42 67 24
Total current liabilities 65 111 45
Total liabilities 107 177 70
Total equity and liabilities 280 318 38
Balance Sheet 2018 and 2019
Mainly new bank borrowings to finance the US and Europen extended product portfolio
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
35
Cash Flow Statement 2018 and 2019
In million euro 2018 2019 delta
Cash flows from operating activities 13 (11) (24)
Cash flows from investing activities (21) (27) (05)
Cash flows from financing activities (35) 28 63
Net decrease in cash and cash equivalents (44) (10) 34
Cash and cash equivalents at 1 January 78 34 (44)
Effect of exchange rate fluctuations on cash held (00) 00 00
Cash and cash equivalents at 31 December 34 24 (10)
Invest in marketing and high qualified stuff to ensure growth
Financing future growth- 2019 new bank borrowings - 2018 repayment of bank
borrowings and dividend payment
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Thank you
together beyond payments
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Slide Number 36
PampL
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
1141695
2422211
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
PampL
In million euro
2018
2018
2019
delta
adj
Revenue
250
193
221
28
Cost of sales
(126)
(126)
(151)
(25)
Gross profit
124
67
70
03
Marketing and promotional expenses
(10)
(10)
(19)
(08)
Administrative expenses
(50)
(50)
(70)
(21)
Other income expenses
02
02
(01)
(03)
Results from operating activities
66
09
(20)
(29)
Financial result
(00)
(00)
(01)
(01)
(Loss)Profit before income tax
66
09
(21)
(30)
Income tax expense
(33)
(14)
(11)
03
(Loss)Profit for the year
32
(05)
(32)
(27)
(Loss)Earnings per share
0022
(0002)
(0008)
(0006)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
bull Founded in 1988 and headquartered in Malta RS2 Software develops software and managed services for card payment processing to banks and other Financial Institutions
bull The company operates in three segments
o Licensing engaged in licensing of the Companyrsquos BankWORKS software to banks and service providers including maintenance and services thereto
o Processing segment is involved in processing of payment transactions utilizing its BankWORKS software
o Merchant service New business-line to take next step in the payment value chain Solution is to directly serve merchants for acquiring and issuing solutions
bull RS2 has steadily significantly outperformed the market Shareholder returns over the last 5 years amount to gt250
bull Current market capitalization euro452m (as of 07-10-20)
Oct 19July 19 Aug 19 Feb 20Dec 19 April 20 July 20
Max euro256
Min euro159
Mar
ket s
hare
pri
ce
Company description Stock price development
Comparative return analysis
Act euro234
12
Internal Analysis of RS2 Organization
Overview about the RS2 GroupRS2 Software Plc
Mosta MLT~270 Employees
Holding Software development licensing
RS2 Germany GmbH
Neu-Isenburg GER~ 14 employees
Service provider for software Plc product mgt implementation
RS2 Merchant Services Europe GmbH
Neu-Isenburg GER0 employees
Holding for merchant business in Europe
RS2 Smart Processing Ltd
Mosta MLT~25 Employees
Processing-business for FI globally wo US
RS2 Software LAC LTDA
Sao Paulo BRA~ 1 employees
Sales amp service office for Latin America
RS2 Software APAC
Metro Manila PHL~22 employees
Sales for Software Plc amp Processing Ltd vice versa
service center for both
RS2 Software Inc
Denver USA ~35 employees
Processing for US Sub-Licensing for Key
Accounts
RS2 Financial Services GmbH
Neu-Isenburg GER~8 employees
Acquiring business E-Money for Europe
Kalicom Zahlungssysteme
GmbH
Neu-Isenburg GER~ 8 employees
ISO for Germany (Sales Service NSP)
100 100 9992 99 9999 6420
100 100
13
Internal Analysis of RS2 Organization
Employment statistics
Employee nationality and work location Employee development 2014 to 2019
59
9
7
7
15
4
Nationality Work location
73
9
75 4
2
No of employees by tenure in years (2019)
135116
71
28 17
gt 152 to 5lt 2 5 to 10 10 to 15
144188 217 244
282
368
201920182014 2015 2016 2017
CAGR +21
AmericanMaltese German
JordanPhilippines
Other USAMalta not defined Germany
Philippines Other
Competences
Management
IT amp Product Management
Customer
Back Office amp Administration
4
68
2
2
24
Sales amp Marketing
Back Office amp Operations
Customer Service
IT amp Product Management
Management
Competences
14
Internal Analysis of RS2 USPs
Unique Selling Points and Value Proposition overview of key differentiators
Omni ChannelTrue omni-channel covering all payment sources (online offline
mobile)
ScalableCloud-based solution linearly scalable with no lead-time for
infrastructure upgrade
One Global PlatformGlobal state of the art solution
and global coverage instant and real time payments
Reliable performanceRobust 9999 availability and
high performance engine
API enabledSingle platform with single API
integration ndash one source code for SMEs and large Enterprises
Highly ConfigurableConfigurable by client region currency business type and
channel
Customer experienceHigh integration over the payment
merchant and partner portal global reconciliation FX
bull RS2 is one of the only providers worldwide to offer global omnichannel payment services through a single integration to its cloud platform
bull RS2 is uniquely positioned to enable global customers to process both international and local payments
bull RS2 provides customers with a single view of their transactions through consolidated reporting and the reconciliation of their entire businesses across currencies and languages
bull It has a highly flexible platform allowing customers quicker time to market through a single API integration
Five main trends for opportunities and challenges in the payment ecosystem
Global payment revenues by region(USD trillions)
Market trends
02
2018
04
16
03
02
06
0103
2015
05
2011
0103
03
04
07
05
08
2017
0218
05
09
13 1419
2013
03
04
CAGR 56
Latin America EMEA North America APAC
Regulatory environment The EU has developed a comprehensive legislative payment framework aimed at keeping pace with the rapid evolution of the industry as well as preserve financial stability while creating a more competitive payment system (PSD2) and ICF regulation
Dynamic market growth Non-cash transactions grew by 12 globally during 2018 Asia and CEMEA growing by 20-30 Drivers are mobile payments contactless payments and shift to e-commerce
Technology invests of incumbents Main payment providers modernized there operations and infrastructure to support new product offerings and new technologies in order to generate new revenue sources
Boosted competition New entrants especially Big Techs have changed the dynamics in the industry as businesses and consumers shift from cash to digital payment methods ndash Apple as a game-changer
Consolidations The payments market is undergoing an unprecedented wave of consolidation with intensive MampA in payment services related to acquiring and broader merchant servicing
Global non-cash transactions (trillions)
67 102 152 185124 130145
161 168104 126
150183
206
2013
539
3539
29
2015
43
2017
46
2018
358436
605
2011
306
50
CAGR 102
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
17
Payment MarketGlobal Payment Market Development
Global payments revenue is expected to grow to about $27 trillion by 2022
Projected global non-cash transactions
020305
09
2018
030507
12
19
2022
27
CAGR 72
North AmericaLatin America EMEA APAC
Projected global payment revenues(USD trillions)
The future of payments
Continuous development from cash to electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions and the demand in rich payment solutions is expected to generate additional $18 trillion in revenues by 2022The APAC region especially China is expected to grow by gt30 from 2018 to 2022 reaching $12 trillion in revenues
Consolidation process is expected to continue to gain momentum in the current economic situation with interest rates being down creating large international players
Fostered by regulators contactless penetration is set to bring mobile in-store solutions to prominence in the coming years
Projected payment revenues by region(USD trillions)
185443168
202206
343
46
2018 2022
605
581045
CAGR 146
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
Green technology is expected to increase in importance in the coming years with a focus on sustainable energy supply for data centers and production of terminals general waste reduction etc
Technology is rapidly changing the entire payment industry ecosystem The move away from cash towards electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions demand for instant cross-border payment solutions increasing data protection demands and cyber risks foster technological advancements
18
Payment MarketImpact of COVID-19 on Payments
Impact of COVID-19 pandemic on payments
bull Significant decrease of global payment-revenue with negative growthbull Most affected industries Hospitality and tourism retail airlines events hotels restaurants But also some
segments can benefit from the crisis like E-Commerce gardenflower-retail food delivery service supermarkets
bull Acceleration of cash displacement towards contactless payment infrastructure and migration to terminals without pin-pads
Short term
Mid Long term
29 Countries have raised contatless payment limits
Contactless payment limits
30More planned online shopping of current online-shoppers
Increasing e-com sales Declining in travel
88Drop of number of passengers traveling at EU airports
Decline x-border payments
58Cross-border transaction flow decline
bull Accelerated shift from POS to E-Commercebull Shift in consumer behavior will lead in an accelerated growth for card based payments at POSbull Self-checkout or ldquoorder amp collectrdquo solutions gaining popularity pre-crisis contactless payment
cards with increasing penetrationbull Expected uptake in regional travel on the back of certain international travel (eg cruises)
shifting spending patterns and revenue opportunities Proven effectiveness of virtual meetings reducing business travel expected This lead in a lasting drop for some segments like Airlines Hotels Events hitting their business model and in less cross boarder transactions
In mid-term payments can profit from the corona crises but in a shift in customer-industries infrastructure-equipment and channels
Strategic Marketsbull US and Europe to focus onbull Organic growth supported by tec-driven solutionsbull Inorganic growth address targets with complementary
capabilities
02Products Customers
01
bull Densified value chainbull Technical development of in-house solutionsbull Focus on customers not adequately served
resulting from mega-mergers
bull Seek funding for accelerated growthbull Foster sales and marketing capabilitiesbull Reach critical market share to capitalize on
necessary infrastructure investmentsbull Reduce dependencies from external providers bull Increase control along the value chain to
maximize client stickinessbull Get own licenses (authority and schemes)
Among strategic options the fully integrated E2E payment provider seems most attractive
Fully integrated End2End Provider
White Label processing
AS IS POINT OF DEPARTURE
SECENARIOPOINT OF ARRIVAL
Among the strategic options the fully integrated End2End payment provider seems most attractive one
Beeing a truly fully service provider by means offering Processing Acquiring Issuing and NSPPSP out of one hand at the front- and back-end seems the most future-prooven strategy which also allows the
maximum customer-monetarization and high degree of merchant stickiness
23
Strategic Planning Strategic Choice
Fully integrated End2End payment provider ndash Strategy is based on focussing toward merchant with an integrated proposition delivered by inhouse-capacities belong the entire value chain
Customer Segment
Product Portfolio
Distribution amp Go-to-market
Market (geopraphy)
From Towards Out of scope
bull All kinds of industries bull All merchant sizes bull Focus Omni-channel customer
bull Focus on marktes EU and US
bull Banks bull Espacially Key Account
merchants
bull Serving all markets with same prioriry
bull Intergated multi sales channel offering via own salesforce
Truly global amp fully integrated E2E digital omnimulti-channel payment service provider
Deliver all payment services out of one hand worldwide scalable and agile solutions combined with best in class customer service ndash We empower Financial Service Provider amp merchants to benefit from
digitalization of payment and on-us processing
Our ambition is to become a fully integrated digital omnimulti-channel payment service provider ndash simple innovative targeted to consumer demands and with global reach
Vision
Mission
26
Cornerstones of RS2 Group-Strategy
Five pillars will drive the strategy to build an integrated omni-channel service provider
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
2) The IFRS conversion had a positiv impact of meuro 37 on net income
250
193221
2018 ACT 2018 adj 2019 ACT
Revenues
-44 -44
-48
2018 ACT 2018 adj 2019 ACT
Cash Flow
32
-05
-322018 ACT 2018 adj 2019 ACT
Net Profit
79
22
-02
2018 ACT 2018 adj 2019 ACT
EBITDA
1)
1)
2)
in eurom
31
Revenue by business lines 2018 vs 2019
Shift revenue into new business lines
155 136
38 85
2018 2019
Licensing Processing Acquiring
193
221
+127
-12
80
20
2018
62
38
2019
Deversifing of business linesGrowth due to enhanched product portfolio
In meuro
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
32
Revenue and EBITDA by legal entities
162 188
38 49
43 05
07 18
02
2018 2019
Revenues
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
+12
- 14
221
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
- 12
44 37
08 05
(28)(42)
(00)
02 03
(01) (01)
2018 2019
EBITDA
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
- 24 meuro
22In meuro
205
193 inter-company- 86
307 - 0123
- 02- 06
04
33
In million euro 2018 2018 2019 delta
adj
Revenue 250 193 221 28
Cost of sales (126) (126) (151) (25)
Gross profit 124 67 70 03
Marketing and promotional expenses (10) (10) (19) (08)
Administrative expenses (50) (50) (70) (21)
Other income expenses 02 02 (01) (03)
Results from operating activities 66 09 (20) (29)
Financial result (00) (00) (01) (01)
(Loss)Profit before income tax 66 09 (21) (30)
Income tax expense (33) (14) (11) 03
(Loss)Profit for the year 32 (05) (32) (27)
(Loss)Earnings per share 0022 (0002) (0008) (0006)
PampL 2018 and 2019
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
The IFRS conversion had a positiv impact of meuro 37 on net income
1)
Investments into marketing management and the integration of RS2 Germany
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
34
In million euro 2018 2019 delta
Assets
Property plant and equipment 94 92 (01)
Right-of-use assets 00 26 26
Intangible assets and goodwill 75 90 15
Other investment 10 10 00
Total non-current assets 179 217 39
Trade and other receivables 16 43 28
Accrued income and prepayments 52 33 (18)
Cash at bank and in hand 34 24 (10)
Total current assets 101 101 (00)
Total assets 280 318 38
Equity and Liabilities
Equity 172 141 (31)
Total non-current liabilities 42 67 24
Total current liabilities 65 111 45
Total liabilities 107 177 70
Total equity and liabilities 280 318 38
Balance Sheet 2018 and 2019
Mainly new bank borrowings to finance the US and Europen extended product portfolio
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
35
Cash Flow Statement 2018 and 2019
In million euro 2018 2019 delta
Cash flows from operating activities 13 (11) (24)
Cash flows from investing activities (21) (27) (05)
Cash flows from financing activities (35) 28 63
Net decrease in cash and cash equivalents (44) (10) 34
Cash and cash equivalents at 1 January 78 34 (44)
Effect of exchange rate fluctuations on cash held (00) 00 00
Cash and cash equivalents at 31 December 34 24 (10)
Invest in marketing and high qualified stuff to ensure growth
Financing future growth- 2019 new bank borrowings - 2018 repayment of bank
borrowings and dividend payment
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Thank you
together beyond payments
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PampL
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
1141695
2422211
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
PampL
In million euro
2018
2018
2019
delta
adj
Revenue
250
193
221
28
Cost of sales
(126)
(126)
(151)
(25)
Gross profit
124
67
70
03
Marketing and promotional expenses
(10)
(10)
(19)
(08)
Administrative expenses
(50)
(50)
(70)
(21)
Other income expenses
02
02
(01)
(03)
Results from operating activities
66
09
(20)
(29)
Financial result
(00)
(00)
(01)
(01)
(Loss)Profit before income tax
66
09
(21)
(30)
Income tax expense
(33)
(14)
(11)
03
(Loss)Profit for the year
32
(05)
(32)
(27)
(Loss)Earnings per share
0022
(0002)
(0008)
(0006)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
11
Internal Analysis of RS2 Company Overview
RS2 is a powerhouse with strong financials
bull Founded in 1988 and headquartered in Malta RS2 Software develops software and managed services for card payment processing to banks and other Financial Institutions
bull The company operates in three segments
o Licensing engaged in licensing of the Companyrsquos BankWORKS software to banks and service providers including maintenance and services thereto
o Processing segment is involved in processing of payment transactions utilizing its BankWORKS software
o Merchant service New business-line to take next step in the payment value chain Solution is to directly serve merchants for acquiring and issuing solutions
bull RS2 has steadily significantly outperformed the market Shareholder returns over the last 5 years amount to gt250
bull Current market capitalization euro452m (as of 07-10-20)
Oct 19July 19 Aug 19 Feb 20Dec 19 April 20 July 20
Max euro256
Min euro159
Mar
ket s
hare
pri
ce
Company description Stock price development
Comparative return analysis
Act euro234
12
Internal Analysis of RS2 Organization
Overview about the RS2 GroupRS2 Software Plc
Mosta MLT~270 Employees
Holding Software development licensing
RS2 Germany GmbH
Neu-Isenburg GER~ 14 employees
Service provider for software Plc product mgt implementation
RS2 Merchant Services Europe GmbH
Neu-Isenburg GER0 employees
Holding for merchant business in Europe
RS2 Smart Processing Ltd
Mosta MLT~25 Employees
Processing-business for FI globally wo US
RS2 Software LAC LTDA
Sao Paulo BRA~ 1 employees
Sales amp service office for Latin America
RS2 Software APAC
Metro Manila PHL~22 employees
Sales for Software Plc amp Processing Ltd vice versa
service center for both
RS2 Software Inc
Denver USA ~35 employees
Processing for US Sub-Licensing for Key
Accounts
RS2 Financial Services GmbH
Neu-Isenburg GER~8 employees
Acquiring business E-Money for Europe
Kalicom Zahlungssysteme
GmbH
Neu-Isenburg GER~ 8 employees
ISO for Germany (Sales Service NSP)
100 100 9992 99 9999 6420
100 100
13
Internal Analysis of RS2 Organization
Employment statistics
Employee nationality and work location Employee development 2014 to 2019
59
9
7
7
15
4
Nationality Work location
73
9
75 4
2
No of employees by tenure in years (2019)
135116
71
28 17
gt 152 to 5lt 2 5 to 10 10 to 15
144188 217 244
282
368
201920182014 2015 2016 2017
CAGR +21
AmericanMaltese German
JordanPhilippines
Other USAMalta not defined Germany
Philippines Other
Competences
Management
IT amp Product Management
Customer
Back Office amp Administration
4
68
2
2
24
Sales amp Marketing
Back Office amp Operations
Customer Service
IT amp Product Management
Management
Competences
14
Internal Analysis of RS2 USPs
Unique Selling Points and Value Proposition overview of key differentiators
Omni ChannelTrue omni-channel covering all payment sources (online offline
mobile)
ScalableCloud-based solution linearly scalable with no lead-time for
infrastructure upgrade
One Global PlatformGlobal state of the art solution
and global coverage instant and real time payments
Reliable performanceRobust 9999 availability and
high performance engine
API enabledSingle platform with single API
integration ndash one source code for SMEs and large Enterprises
Highly ConfigurableConfigurable by client region currency business type and
channel
Customer experienceHigh integration over the payment
merchant and partner portal global reconciliation FX
bull RS2 is one of the only providers worldwide to offer global omnichannel payment services through a single integration to its cloud platform
bull RS2 is uniquely positioned to enable global customers to process both international and local payments
bull RS2 provides customers with a single view of their transactions through consolidated reporting and the reconciliation of their entire businesses across currencies and languages
bull It has a highly flexible platform allowing customers quicker time to market through a single API integration
Five main trends for opportunities and challenges in the payment ecosystem
Global payment revenues by region(USD trillions)
Market trends
02
2018
04
16
03
02
06
0103
2015
05
2011
0103
03
04
07
05
08
2017
0218
05
09
13 1419
2013
03
04
CAGR 56
Latin America EMEA North America APAC
Regulatory environment The EU has developed a comprehensive legislative payment framework aimed at keeping pace with the rapid evolution of the industry as well as preserve financial stability while creating a more competitive payment system (PSD2) and ICF regulation
Dynamic market growth Non-cash transactions grew by 12 globally during 2018 Asia and CEMEA growing by 20-30 Drivers are mobile payments contactless payments and shift to e-commerce
Technology invests of incumbents Main payment providers modernized there operations and infrastructure to support new product offerings and new technologies in order to generate new revenue sources
Boosted competition New entrants especially Big Techs have changed the dynamics in the industry as businesses and consumers shift from cash to digital payment methods ndash Apple as a game-changer
Consolidations The payments market is undergoing an unprecedented wave of consolidation with intensive MampA in payment services related to acquiring and broader merchant servicing
Global non-cash transactions (trillions)
67 102 152 185124 130145
161 168104 126
150183
206
2013
539
3539
29
2015
43
2017
46
2018
358436
605
2011
306
50
CAGR 102
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
17
Payment MarketGlobal Payment Market Development
Global payments revenue is expected to grow to about $27 trillion by 2022
Projected global non-cash transactions
020305
09
2018
030507
12
19
2022
27
CAGR 72
North AmericaLatin America EMEA APAC
Projected global payment revenues(USD trillions)
The future of payments
Continuous development from cash to electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions and the demand in rich payment solutions is expected to generate additional $18 trillion in revenues by 2022The APAC region especially China is expected to grow by gt30 from 2018 to 2022 reaching $12 trillion in revenues
Consolidation process is expected to continue to gain momentum in the current economic situation with interest rates being down creating large international players
Fostered by regulators contactless penetration is set to bring mobile in-store solutions to prominence in the coming years
Projected payment revenues by region(USD trillions)
185443168
202206
343
46
2018 2022
605
581045
CAGR 146
Latin America APACEMEA North America
Source McKinsey Global Payments Map Capgemini World Payments Report
Green technology is expected to increase in importance in the coming years with a focus on sustainable energy supply for data centers and production of terminals general waste reduction etc
Technology is rapidly changing the entire payment industry ecosystem The move away from cash towards electronic payment solutions the rapid growth of contactless and the adaption of invisible payment solutions demand for instant cross-border payment solutions increasing data protection demands and cyber risks foster technological advancements
18
Payment MarketImpact of COVID-19 on Payments
Impact of COVID-19 pandemic on payments
bull Significant decrease of global payment-revenue with negative growthbull Most affected industries Hospitality and tourism retail airlines events hotels restaurants But also some
segments can benefit from the crisis like E-Commerce gardenflower-retail food delivery service supermarkets
bull Acceleration of cash displacement towards contactless payment infrastructure and migration to terminals without pin-pads
Short term
Mid Long term
29 Countries have raised contatless payment limits
Contactless payment limits
30More planned online shopping of current online-shoppers
Increasing e-com sales Declining in travel
88Drop of number of passengers traveling at EU airports
Decline x-border payments
58Cross-border transaction flow decline
bull Accelerated shift from POS to E-Commercebull Shift in consumer behavior will lead in an accelerated growth for card based payments at POSbull Self-checkout or ldquoorder amp collectrdquo solutions gaining popularity pre-crisis contactless payment
cards with increasing penetrationbull Expected uptake in regional travel on the back of certain international travel (eg cruises)
shifting spending patterns and revenue opportunities Proven effectiveness of virtual meetings reducing business travel expected This lead in a lasting drop for some segments like Airlines Hotels Events hitting their business model and in less cross boarder transactions
In mid-term payments can profit from the corona crises but in a shift in customer-industries infrastructure-equipment and channels
Strategic Marketsbull US and Europe to focus onbull Organic growth supported by tec-driven solutionsbull Inorganic growth address targets with complementary
capabilities
02Products Customers
01
bull Densified value chainbull Technical development of in-house solutionsbull Focus on customers not adequately served
resulting from mega-mergers
bull Seek funding for accelerated growthbull Foster sales and marketing capabilitiesbull Reach critical market share to capitalize on
necessary infrastructure investmentsbull Reduce dependencies from external providers bull Increase control along the value chain to
maximize client stickinessbull Get own licenses (authority and schemes)
Among strategic options the fully integrated E2E payment provider seems most attractive
Fully integrated End2End Provider
White Label processing
AS IS POINT OF DEPARTURE
SECENARIOPOINT OF ARRIVAL
Among the strategic options the fully integrated End2End payment provider seems most attractive one
Beeing a truly fully service provider by means offering Processing Acquiring Issuing and NSPPSP out of one hand at the front- and back-end seems the most future-prooven strategy which also allows the
maximum customer-monetarization and high degree of merchant stickiness
23
Strategic Planning Strategic Choice
Fully integrated End2End payment provider ndash Strategy is based on focussing toward merchant with an integrated proposition delivered by inhouse-capacities belong the entire value chain
Customer Segment
Product Portfolio
Distribution amp Go-to-market
Market (geopraphy)
From Towards Out of scope
bull All kinds of industries bull All merchant sizes bull Focus Omni-channel customer
bull Focus on marktes EU and US
bull Banks bull Espacially Key Account
merchants
bull Serving all markets with same prioriry
bull Intergated multi sales channel offering via own salesforce
Truly global amp fully integrated E2E digital omnimulti-channel payment service provider
Deliver all payment services out of one hand worldwide scalable and agile solutions combined with best in class customer service ndash We empower Financial Service Provider amp merchants to benefit from
digitalization of payment and on-us processing
Our ambition is to become a fully integrated digital omnimulti-channel payment service provider ndash simple innovative targeted to consumer demands and with global reach
Vision
Mission
26
Cornerstones of RS2 Group-Strategy
Five pillars will drive the strategy to build an integrated omni-channel service provider
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
2) The IFRS conversion had a positiv impact of meuro 37 on net income
250
193221
2018 ACT 2018 adj 2019 ACT
Revenues
-44 -44
-48
2018 ACT 2018 adj 2019 ACT
Cash Flow
32
-05
-322018 ACT 2018 adj 2019 ACT
Net Profit
79
22
-02
2018 ACT 2018 adj 2019 ACT
EBITDA
1)
1)
2)
in eurom
31
Revenue by business lines 2018 vs 2019
Shift revenue into new business lines
155 136
38 85
2018 2019
Licensing Processing Acquiring
193
221
+127
-12
80
20
2018
62
38
2019
Deversifing of business linesGrowth due to enhanched product portfolio
In meuro
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
32
Revenue and EBITDA by legal entities
162 188
38 49
43 05
07 18
02
2018 2019
Revenues
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
+12
- 14
221
bull Adjusted by the IFRS revenue impact of meuro 57
+ 14
- 12
44 37
08 05
(28)(42)
(00)
02 03
(01) (01)
2018 2019
EBITDA
RS2 PLC RS2 SP RS2 IncRS2 APAC RS2 Germany Other
- 24 meuro
22In meuro
205
193 inter-company- 86
307 - 0123
- 02- 06
04
33
In million euro 2018 2018 2019 delta
adj
Revenue 250 193 221 28
Cost of sales (126) (126) (151) (25)
Gross profit 124 67 70 03
Marketing and promotional expenses (10) (10) (19) (08)
Administrative expenses (50) (50) (70) (21)
Other income expenses 02 02 (01) (03)
Results from operating activities 66 09 (20) (29)
Financial result (00) (00) (01) (01)
(Loss)Profit before income tax 66 09 (21) (30)
Income tax expense (33) (14) (11) 03
(Loss)Profit for the year 32 (05) (32) (27)
(Loss)Earnings per share 0022 (0002) (0008) (0006)
PampL 2018 and 2019
1) 2018 revenues and EBITDA were positive impacted by meuro 57 due to IFRS conversion
The IFRS conversion had a positiv impact of meuro 37 on net income
1)
Investments into marketing management and the integration of RS2 Germany
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
34
In million euro 2018 2019 delta
Assets
Property plant and equipment 94 92 (01)
Right-of-use assets 00 26 26
Intangible assets and goodwill 75 90 15
Other investment 10 10 00
Total non-current assets 179 217 39
Trade and other receivables 16 43 28
Accrued income and prepayments 52 33 (18)
Cash at bank and in hand 34 24 (10)
Total current assets 101 101 (00)
Total assets 280 318 38
Equity and Liabilities
Equity 172 141 (31)
Total non-current liabilities 42 67 24
Total current liabilities 65 111 45
Total liabilities 107 177 70
Total equity and liabilities 280 318 38
Balance Sheet 2018 and 2019
Mainly new bank borrowings to finance the US and Europen extended product portfolio
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
35
Cash Flow Statement 2018 and 2019
In million euro 2018 2019 delta
Cash flows from operating activities 13 (11) (24)
Cash flows from investing activities (21) (27) (05)
Cash flows from financing activities (35) 28 63
Net decrease in cash and cash equivalents (44) (10) 34
Cash and cash equivalents at 1 January 78 34 (44)
Effect of exchange rate fluctuations on cash held (00) 00 00
Cash and cash equivalents at 31 December 34 24 (10)
Invest in marketing and high qualified stuff to ensure growth
Financing future growth- 2019 new bank borrowings - 2018 repayment of bank
borrowings and dividend payment
PampL
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Balance Sheet
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Financial PositionampArialRegularamp10amp-Regularamp12As at 31 December 2019
ampP
SoCF
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Cash FlowsampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Slide Figures
amp-Regularamp20RS2 Software plcampArialRegularamp10 amp-Regularamp14Statements of Comprehensive IncomeampArialRegularamp10amp-Regularamp12For the year ended 31 December 2019
ampP
Thank you
together beyond payments
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PampL
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
In million euro
2018
2019
delta
Revenue
250
221
(29)
Cost of sales
(126)
(151)
(25)
Gross profit
124
70
(54)
Marketing and promotional expenses
(10)
(19)
(08)
Administrative expenses
(50)
(70)
(21)
Other income expenses
02
(01)
(03)
Results from operating activities
66
(20)
(86)
Financial result
(00)
(01)
(01)
(Loss)Profit before income tax
66
(21)
(87)
Income tax expense
(33)
(11)
22
(Loss)Profit for the year
32
(32)
(64)
(Loss)Earnings per share
0022
(0008)
(0030)
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
1141695
2422211
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges
-
-
- 0
- 0
Remeasurement in net defined benefit liability
(92746)
(385995)
- 01
- 04
Gain on revaluation of property
-
-
- 0
- 0
Deferred tax thereon
-
- 0
(42927)
(295721)
- 00
- 03
Total comprehensive (loss)income
(3247007)
2945579
- 32
29
(Loss)Profit for the year attributable to
Owners of the Company
(1633902)
4247289
- 16
42
Non-controlling interest
(1570178)
(1005989)
- 16
- 10
(Loss)Profit for the year
(3204080)
3241300
- 32
32
- 0
- 0
- 0
- 0
Total comprehensive (loss)income attributable to
Owners of the Company
(1655474)
3924115
- 17
39
Non-controlling interest
(1591533)
(978536)
- 16
- 10
Total comprehensive (loss)income for the year
(3247007)
2945579
- 0
- 32
29
- 0
- 0
- 0
- 0
(Loss)Earnings per share
-euro 0008
euro 0022
-euro 0000
euro 0000
Refer to Note 27
PampL
In million euro
2018
2018
2019
delta
adj
Revenue
250
193
221
28
Cost of sales
(126)
(126)
(151)
(25)
Gross profit
124
67
70
03
Marketing and promotional expenses
(10)
(10)
(19)
(08)
Administrative expenses
(50)
(50)
(70)
(21)
Other income expenses
02
02
(01)
(03)
Results from operating activities
66
09
(20)
(29)
Financial result
(00)
(00)
(01)
(01)
(Loss)Profit before income tax
66
09
(21)
(30)
Income tax expense
(33)
(14)
(11)
03
(Loss)Profit for the year
32
(05)
(32)
(27)
(Loss)Earnings per share
0022
(0002)
(0008)
(0006)
Balance Sheet
In million euro
2018
2019
delta
Assets
Property plant and equipment
94
92
(01)
Right-of-use assets
00
26
26
Intangible assets and goodwill
75
90
15
Other investment
10
10
00
Total non-current assets
179
217
39
Trade and other receivables
16
43
28
Accrued income and prepayments
52
33
(18)
Cash at bank and in hand
34
24
(10)
Total current assets
101
101
(00)
Total assets
280
318
38
Equity and Liabilities
Equity
172
141
(31)
Total non-current liabilities
42
67
24
Total current liabilities
65
111
45
Total liabilities
107
177
70
Total equity and liabilities
280
318
38
Cash Flow statement
In million euro
2018
2019
delta
Cash flows from operating activities
13
(11)
(24)
Cash flows from investing activities
(21)
(27)
(05)
Cash flows from financing activities
(35)
28
63
Net decrease in cash and cash equivalents
(44)
(10)
34
Cash and cash equivalents at 1 January
78
34
(44)
Effect of exchange rate fluctuations on cash held
(00)
00
00
Cash and cash equivalents at 31 December
34
24
(10)
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from operating activities
3
(Loss)Profit for the year
(3204080)
3241300
1486852
5815734
6
Adjustments for
Depreciation
9 10
1004082
525379
411313
411566
Amortisation of intangible assets
11
791983
719777
791983
719777
Provision for expected credit losses
23
(42000)
(24000)
(42000)
(24000)
Provision for impairment loss on receivables
23
81514
60907
(32877)
33216
Bad debts written off(recovered)
23
33517
(160300)
33517
(160300)
Impairment of obsolete assets
21
-
Interest payable
24
119808
64825
67029
64805
Interest receivable
24
(11072)
(11098)
(10743)
(11071)
Discounting on trade receivables and accrued income
22
Unwinding of discount on post-employment benefits
28
323849
38338
322866
29797
Unwinding of discount on contract assets
24
-
-
(26243)
(42441)
Unwinding of discount on deposit
1149
(652)
-
-
Employee share benefits
30
311278
681970
100000
100000
Impairment loss on other investment
21
-
-
-
-
Gain on sale of property plant and equipment
313
-
-
-
Income tax
25
1088824
3323666
965846
3096597
Provision for exchange fluctuations
23
(2014)
(13308)
(15288)
(24246)
Impairment on property plant and equipment
-
-
-
-
Change in fair value of equity investment
-
-
-
Change in fair value of derivative
24
(18180)
(20431)
(18180)
(20431)
478971
8426373
4034075
9989003
Changes in trade and other receivables
(2785459)
(2246681)
24360
(1164236)
7
(1)
Changes in trade and other payables
2390589
(4357507)
490547
(4801201)
Changes in parent companys balance
-
-
-
Change in sister companies balances
Change in subsidiaries balances
Change in other related parties balances
-
-
(2094358)
(47184)
Change in Shareholder loan balance
Cash (used in)generated from operating activities
84101
1822185
2454624
3976382
Interest paid
(92321)
(66183)
(67670)
(66183)
Interest received
330
665
295
639
Income taxes paid
(1100201)
(459841)
(1052058)
(459837)
Net cash (used in)generated from operating activities
(1108091)
1296826
1335191
3451001
Cash flows from investing activities
Acquisition of property plant and equipment
(441868)
(877204)
(134607)
(73305)
Acquisition of intangible asset
-
-
-
-
Capitalised development costs
11
(2223615)
(1268232)
(1137504)
(1268234)
Investment in subsidiary
12
-
-
(175000)
(25000)
Disposal of available-for-sale financial assets
Acquisition of intangible asset
13
Investment in other companies
Acquisition of available-for- sale financial assets
Advances to parent company
Advances to subsidiaries
-
-
(5041813)
(2920232)
Advances to Employees Trust
-
Repayment of advances to parent company
-
Repayment of advances from subsidiaries
-
-
379407
60475
Repayment of advances to other related parties
Loan repayments on behalf of parent Company
Payments on behalf of sister companies
Receipts by parent company on behalf of Company
Advances by parent company on behalf of Company
Additional security deposit
(7988)
-
-
-
Additional advance rent
(5977)
-
-
-
Net cash used in investing activities
(2679448)
(2145436)
(6109517)
(4226296)
Refer to Note 27
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
The Group
The Company
2019
2018
2019
2018
Note
euro
euro
euro
euro
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs on issue of shares
Dividends paid
(83)
(2501206)
(83)
(2501206)
Advances by related parties
Proceeds from borrowings under the credit facility
3779498
-
3779498
-
Repayments of bank borrowings
(634057)
(1023369)
(634057)
(1023368)
Repayment of lease liabilities
(347318)
-
(25999)
-
Proceeds from called-up share capital by non-controlling interest
Advances by non-controlling interest
Net cash generated from(used in) financing activities
2798040
(3524575)
3119359
(3524574)
Net decrease in cash and cash equivalents
(989499)
(4373185)
(1654967)
(4299869)
Cash and cash equivalents at 1 January
3402972
7789159
2798944
7083067
Effect of fair value movements
- 0
- 0
- 0
- 0
Effect of exchange rate fluctuations on cash held
8738
(13002)
(2282)
15746
1
2422211
Movement in cash pledged as guarantee
2422211
Cash and cash equivalents at 31 December
16
2422211
3402972
1141695
2798944
- 0
2018
2019
1141695
Cash flows from operating activities
130
(111)
2422211
Cash flows from investing activities
(215)
(268)
Refer to Note 27
Cash flows from financing activities
(352)
280
Net decrease in cash and cash equivalents
(437)
(099)
Cash and cash equivalents at 1 January
779
340297
Effect of fair value movements
(001)
001
The accompanying Notes on pages 34 to 100 are an integral part of these financial statements
Effect of exchange rate fluctuations on cash held
3402972
2422211
2422211
1141695
2422211
1141695
- 0
- 0
The Group
2019
2018
euro
euro
Assets
-
Property plant and equipment
92
94
9212926
9357510
Right-of-use assets
26
- 0
2560771
-
Intangible assets and goodwill
90
75
8961429
7503459
Other investment
10
10
217105
217105
Loans receivable
786170
775722
Accrued income and contract costs
-
-
Trade and other receivables
-
-
Total non-current assets
217
179
21738401
17853796
Trade and other receivables
43
16
4189260
1555170
Loans receivable
137938
7438
Accrued income and prepayments
33
52
710745
497194
Accrued income and contract costs
2613500
4653542
Cash at bank and in hand
24
34
2422211
3402972
Total current assets
101
101
10073654
10116316
Total assets
318
280
31812055
27970112
The Group
2019
2018
euro
euro
Equity
Share capital
11578114
10291657
Reserves
(182759)
(253291)
Retained earnings
5617485
8529949
ProfitLoss for the year
Total equity attributable to equity holders of the Company
17012840
18568315
Non-controlling interest
(2927662)
(1336130)
Total equity
1409
1723
14085178
17232185
Liabilities
Bank borrowings
66805
199820
Lease liabilities
2198329
-
Employee benefits
2964959
3000464
Deferred tax liability
1434154
1004937
Derivatives
9497
27677
Total non-current liabilities
667
423
6673744
4232898
Bank borrowings
39
06
3912653
634197
Trade and other payables
27
25
1704397
1452006
Lease liabilities
363773
-
Current tax payable
647466
1049342
Accruals
26
13
1813532
1208419
Employee benefits
774800
111422
Deferred income
18
20
1836512
2049643
Total current liabilities
111
65
11053133
6505029
Total liabilities
177
107
17726877
10737927
Total equity and liabilities
318
280
31812055
27970112
0
0
0
000
000
The Group
2019
2018
2019
2018
euro
euro
euro
euro
Continuing Operations
Revenue
22099721
25008395
221
250
Cost of sales
(15096946)
(12611558)
- 151
- 126
Gross profit
7002775
12396837
70
124
Other income
64421
67091
01
01
Marketing and promotional expenses
(1851523)
(1013245)
- 19
- 10
Administrative expenses
(7026087)
(4955543)
- 70
- 50
Capitalised development costs
- 0
- 0
Other expenses
(111290)
(12949)
- 01
- 00
Impairment loss on trade receivables and contract assets
(73031)
123393
- 01
01
Results from operating activities
(1994735)
6605584
- 20
66
Finance income
31124
31529
00
00
Finance costs
(151645)
(72147)
- 02
- 01
Net finance (costs)income
(120521)
(40618)
- 01
- 00
(Loss)Profit before income tax
(2115256)
6564966
- 21
66
Income tax expense
(1088824)
(3323666)
- 11
- 33
(Loss)Profit for the year
(3204080)
3241300
- 32
32
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations
49819
4954
00
00
- 0
- 0
Items that will not be reclassified to profit or loss
- 0
- 0
Net change in fair value of investment in equity instruments designated at FVTOCI upon initial recognition
-
85320
- 0
01
Deferred tax thereon
-
-
- 0
- 0
Effective portion of changes in fair value of cash flow hedges