ETX-10829_Etex-AR2017_WEB_2018_DEF2 (2)

6.1
Financial report
Consolidated financial statements
Etex Annual Report 2017
Financial report
Consolidated financial statements
Note 6 - Income tax expense
Note 7 - Property, plant and equipment
In thousands of EUR 2016 2017
Current income tax charge for the year -59,264 -64,238
Adjustments to current income tax of previous years -1,261 1,902
Current income tax expense -60,525 -62,336
Origination and reversal of temporary differences 37,765 11,024
Net effect on deferred tax assets -5,941 -13,112
Net effect of changes in tax rates on deferred tax 11,674 1,515
Deferred income tax expense 43,498 -573
Total income tax expense -17,027 -62,909
The reconciliation between the effective income tax expense and the theoretical income tax expense is summarised below. The
theoretical income tax expense is calculated by applying the domestic nominal tax rate of each Group entity to their contribution to the
Group profit before income tax and before share of the profit in equity accounted investees.
In thousands of EUR 2016 2017
Profit before income tax and before share of profit in equity accounted investees 104,879 215,023
Theoretical income tax expense (nominal rates) -22,217 -56,859
Weighted average nominal tax rate % 21.2% 26.4%
Tax impact of
Non deductible expenses -11,750 -11,284
Tax on profit distribution inside the Group -2,566 -3,647
Tax-free gains/losses on investments - 12,856
Other tax deductions 8,712 7,493
Unrecognised deferred tax assets on current year losses -19,404 -17,190
Recognition of previously unrecognised deferred tax assets 23,985 14,913
Derecognition of previously recognised deferred tax assets -4,088 -10,835
Net effect of changes in tax rates on deferred tax 11,674 1,515
Adjustments to prior year income tax -1,261 1,902
Other tax adjustments -111 -1,774
Income tax expense recognised in the income statement -17,027 -62,909
Effective tax rate % 16.2% 29.3%
In 2017 and 2016, the unrecognised deferred tax assets on current year losses are mainly impacted by restructuring. The recognition of
previously unrecognised deferred tax assets relates mainly to improved profitability expectation in some companies.
In 2017 the net effect of changes in tax rates is mainly impacted by the decrease in tax rate applied to most of the Belgian deferred tax
liability. In 2016 the net effect changes in tax rates were mainly impacted by the decrease in tax rate applied to most of the French
deferred tax liability.
Income tax recognised directly in equity is related to:
In thousands of EUR 2016 2017
Actuarial gains (losses) on post employment benefit plans 21,187 -14,247
Gains (losses) on financial instruments - cash flow hedging -316 -3,353
Total 20,871 -17,600
In thousands of EUR
At 31 December 2015
Land and
buildings
Plant,
machinery,
equipment
Furniture,
vehicles
Other
property, plant,
equipment
Under
construction
Gross book value 1,104,052 2,397,639 258,327 22,819 155,116 3,937,953
Accumulated depreciation -510,724 -1,444,271 -167,695 -16,313 - -2,139,003
Accumulated impairment loss -10,418 -66,613 -553 -74 -5,174 -82,832
Net book value 582,910 886,755 90,079 6,432 149,942 1,716,118
Of which leased assets 378 40 307 - - 725
Additions 14,932 60,107 3,368 1,241 50,689 130,337
Disposals -1,059 -1,121 -932 - 204 -2,908
Changes in the scope of consolidation -32,175 -51,122 -376 - -584 -84,257
Transfer between captions 42,342 85,813 1,041 2,200 -143,211 -11,815
Depreciation for the year -29,759 -93,985 -12,526 -1,557 - -137,827
Impairment loss of the year -409 -5,752 -174 -9 -90 -6,434
Reversal impairment loss - 805 38 - - 843
Translation differences -4,956 -23,247 -777 221 5,720 -23,039
At 31 December 2016
Gross book value 1,086,057 2,354,550 239,440 26,146 67,475 3,773,668
Accumulated depreciation -507,542 -1,432,230 -159,113 -17,541 - -2,116,426
Accumulated impairment loss -6,691 -64,068 -586 -78 -4,804 -76,227
Net book value 571,824 858,252 79,741 8,527 62,671 1,581,015
Of which leased assets - 1,723 141 - - 1,864
Additions 11,801 40,203 3,906 1,740 84,040 141,690
Disposals -474 -2,071 -185 - 1,103 -1,627
Changes in the scope of consolidation 26,045 31,606 33 65 48,058 105,807
Transfer between captions 7,621 28,092 1,545 -2,224 -34,496 538
Depreciation of the year -29,805 -90,377 -10,944 -1,689 - -132,815
Impairment loss of the year -1,265 -11,374 -343 - - -12,982
Reversal of impairment loss 57 3,476 - - - 3,533
Translation differences -16,642 -21,989 -231 -184 -5,135 -44,181
At 31 December 2017
Gross book value 1,116,789 2,414,690 230,652 25,696 161,037 3,948,864
Accumulated depreciation -539,023 -1,514,127 -156,216 -19,381 - -2,228,747
Accumulated impairment loss -8,604 -64,745 -914 -80 -4,796 -79,139
Net book value 569,162 835,818 73,522 6,235 156,241 1,640,978
Of which leased assets - 4,314 21 - - 4,335
Total
During the year, investments have started in a new fibre cement line in Belgium and Argentina that will become operational in 2018. The
Pladur acquisition gives us access to an operational plasterboard plant and a plasterboard plant under construction.
The disposal proceeds of property, plant and equipment in 2017 amount to € 5,077 thousand, resulting in a net gain of €3,450 thousand.
In 2016, the proceeds amounted to €4,335 thousand with a net gain of €1,432 thousand.
Etex Annual Report 2017 p. 27
Etex Annual Report 2017 p. 28
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