Financial Statements

CMAAS TRAINING PROGRAM

2025 - Internal use only

OBJECTIVES
Agenda
01 Presentation of Financial Statements

Statement of financial position

Statement of profit & loss and other comprehensive income

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

02 Annual report

03 Key considerations

04 Exercise
IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

What are International Financial Reporting Standards (IFRS)?

Comparability
IASB
International Accounting Consistency
Standards Board
Transparency

Accounting rules and guidelines Common accounting language Principle based

That govern the reporting of That provide a single set of Rather than prescribing specific
different types of accounting accounting standards to be used rules which allows for more
transactions and events in globally by more than 100 flexibility
Financial Statements countries

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

IAS 1 – Presentation of Financial Statements

Applies to all entities,

Comparability with Minimum including those that present
both previous requirements for consolidated FS and
periods and other their content those that present
entities separate FS
Other IFRSs set out the recognition,
Overall Guidelines for measurement and disclosure
requirements for the financial requirements for specific transactions and
the presentation of statements other events.
the financial structure
statements

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

IAS 1 – Presentation of Financial Statements

The objective of financial statements is to provide information about:
• The financial position
• The financial performance
• The cash flows

Other information in the notes

Assets Equity

Cash flows
Liabilities
Income & expenses
Contributions by and (incl. gains and losses)
distributions to owners
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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

IAS 1 – Presentation of Financial Statements

A complete set of financial statements includes the following component: [IAS 1.10]

Primary financial statements

Balance Sheet P&L Not included in BeGAAP Not included in BeGAAP Not included in BeGAAP

Statement of financial Statement of profit Statement of Statement of

Statement of cash flows
position and loss comprehensive income changes in equity
Terms as amended
by IAS 1 (2007)
(for the period)
(as at the end of the period) (for the period) (for the period) (for the period)

Notes to the financial statements

Or as a single

Statement of profit and loss and other

comprehensive income

IAS 1 requires that comparative information to be disclosed in respect of the previous period for all amounts reported
in the financial statements (including the notes)

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

IAS 1 – Presentation of Financial Statements

IFRS and BeGAAP in Belgium*

Separate financial Consolidated financial

statements statements

Listed Companies Belgian GAAP IFRS

(BeGAAP)

Non-Listed Companies Belgian GAAP BeGAAP

(BeGAAP) or IFRS

(*) Special rules apply to and banks, insurance companies and certain types of real estate investment companies trusts

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

IAS 1 – General assumptions

Fair presentation and compliance with IFRSs Going concern Accrual basis of account
Financial Statements shall present fairly the: Financial statements shall be prepared on a going Except for Cash Flows, the preparation should be done
• Financial position concern basis unless management either intends to using the accrual basis of accounting.
• Financial performance liquidate the entity or to cease trading or has no realistic
• Cash flows of an entity alternative but to do so. Recognition of items as assets, liabilities, equity, income
and expenses when they satisfy the definitions and
Faithful representation of the effects of transactions, other recognition criteria for those elements in the conceptual
events and conditions in accordance with the definitions framework.
and recognition criteria.

Materiality and aggregation Offsetting Comparative information

An entity shall present separately: An entity shall not offset assets and liabilities or income Except when IFRS permit or require otherwise, an entity
and expenses, unless required or permitted by an IFRS. shall present comparative information in respect of the
• Each material class of similar items preceding period for all amounts reported in the current
• Items of a dissimilar nature or function unless they are period’s FS.
immaterial

Frequency of reporting Consistency of presentation

An entity shall present a complete set of financial statements (including comparative information) at An entity shall retain the presentation and classification of items in the financial statements from one
least annually. When an entity changes the end of its reporting period and presents FS for a period period to the next unless:
longer or shorter than one year, an entity shall disclose, in addition to the period covered by the FS:
• Another presentation or classification would be more appropriate (following a significant change in
• The reason for using a longer or shorter period, and the nature of entity’s operations or a review of its FS)
• The fact that amounts presented in the FS are not entirely comparable
• An IFRS requires a change in presentation

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

IAS 1 – Presentation of Financial Statements

How to prepare financial statements?

Collection of financial Update of the

Preparation of the Financial
information in the accounting ledger accounts
Trial balance statements
system and other records

Where all business transactions for the period must be identified according to the
double entry accounting method…
… and classified under 5 types of accounts:
Double entry principle - Quick reminder
• Assets
Every financial transaction has equal and
• Liabilities opposite effects in at least two different
• Equity accounts and are recorded in terms of debits
and credits.
• Income
• Expenses

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Statement of financial
position
(Balance Sheet)
IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of financial position (Balance Sheet)

Residual interest in the assets of
Balance Sheet the entity after deducting liabilities
= Net assets
• A resource controlled by the entity EQUITY
• As a result of past events
• From which future economic
benefits are expected to flow to the ASSETS
entity
LIABILITIES

• A present obligation of the entity

to transfer an economic resource
as a result of past events
• An obligation is a duty or
responsibility that the entity has
no practical ability to avoid

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of financial position (IFRS) In thousands of EUR Notes 31 December 2024 31 December 2023

Equity
In thousands of EUR Notes 31 December 2024 31 December 2023 Share Capital 14,979 14,550

Share premium 4,777 3,500

Asset
Reserves 1,1219 439
Intangible assets and Goodwill 21 6,111 4,541
Retained earnings 20,443 13,786
Property, plant and equipment 22 28,490 33,230
Equity attributable to owners of the Company 26 41,418 32,275
Investment property 23 1,520 400
Non-controlling interests 35 3,804 3,091
Biological Assets 16 4,698 4,025
Total equity 45,222 35,366
Equity-accounted investees 24 2,489 1,948

Other investments, including derivatives 25 3,616 3,512 Liabilities

Loans and borrowings (more than 1 year) 28 22,808 21,268
Deferred tax assets 14 2,251 2,108
Employee benefits 13 912 453
Other non-current assets 13 671 731
Trade and other payables 29 290 5
Non-current assets (after 12 months) 49,846 50,495
Deferred income 30 1,424 1,462
Intangible assets 22 115 120
Provisions 31 1,010 -
Biological assets 16 32 31
Deferred tax liabilities 14 549 406
Inventories and work-in-progress 17 12,148 12,119

Contract assets 8 1,271 782 Non-current liabilities (after 12 months) 26,993 23,594

Bank overdraft 19 334 282

Trade and other receivables 25 32,518 22,325
Loans and borrowing (less than 1 year) 28 6,297 5,656
Current tax receivables 34 60
Current provisions 31 660 1,540
Other investments, including derivatives 18 662 1,032
Trade and other payables 29 24,013 21,328
Prepayments 330 1,200

Cash and cash equivalents 19 1,504 1,849 Current tax liabilities 4,751 1,693

Other current liabilities 13, 8 180 554

Assets held for sale 20 14,400 0
Liabilities directly associated with assets held for sale 20 4,410
Current assets (within 12 months) 63,014 39,518
Current liabilities (within 12 months) 40,645 31,053
TOTAL ASSETS 112,860 90,013
TOTAL EQUITY AND LIABILITIES 112,860 90,013
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with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of financial position (IFRS)

Balance Sheet
EQUITY

ASSETS
LIABILITIES

In thousands of EUR Notes 31 December 2024 31 December 2023

Asset
Intangible assets and Goodwill 21 6,111 4,541

Property, plant and equipment 22 28,490 33,230

Investment property 23 1,520 400

Current and non-current classification
Biological Assets 16 4,698 4,025
24
Unless liquidity classification is more relevant
Equity-accounted investees 2,489 1,948

Other investments, including derivatives 25 3,616 3,512

Deferred tax assets 14 2,251 2,108

[IAS 1.66] defines CURRENT ASSETS as assets that are:
Other non-current assets 13 671 731
• expected to be realized in the entity’s normal operating cycle
Non-current assets (after 12 months) 49,846 50,495
22
• held primarily for the purpose of trading
Intangible assets 115 120

Biological assets 16 32 31 • expected to be realized within 12 months after reporting period

Inventories and work-in-progress 17 12,148 12,119 • cash and cash equivalents (unless restricted)
Contract assets 8 1,271 782
25
= All other assets are non-current
Trade and other receivables 32,518 22,325

Current tax receivables 34 60

Other investments, including derivatives 18 662 1,032

Prepayments 330 1,200

Cash and cash equivalents 19 1,504 1,849

Assets held for sale 20 14,400 0

Current assets (within 12 months) 63,014 39,518

TOTAL ASSETS 112,860 90,013

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with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of financial position (BEGAAP structure)

BE GAAP Statement and differences (1/2)

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of financial position (BEGAAP structure)

BE GAAP Statement and differences (2/2)

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with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of financial position (IFRS)

Balance Sheet
EQUITY

ASSETS
LIABILITIES
In thousands of EUR Notes 31 December 2024 31 December 2023

Equity
Share Capital 14,979 14,550

Share premium 4,777 3,500

Reserves 1,1219 439

Retained earnings 20,443 13,786

Equity attributable to owners of the Company 26 41,418 32,275 Current and non-current classification
Non-controlling interests 35 3,804 3,091

Total equity 45,222 35,366 Unless liquidity classification is more relevant

Liabilities
Loans and borrowings (more than 1 year) 28 22,808 21,268
13
[IAS 1.66] defines CURRENT LIABILITIES as those:
Employee benefits 912 453

Trade and other payables 29 290 5 • expected to be settled within the entity’s normal operating cycle
Deferred income 30 1,424 1,462 • held for the purpose of trading
Provisions 31 1,010 - • Due to be settled within 12 months
Deferred tax liabilities 14 549 406
• For which the entity does not have the right at the end of the
Non-current liabilities (after 12 months) 26,993 23,594 reporting period to defer settlement beyond 12 months
Bank overdraft 19 334 282
28
= All other liabilities are non-current
Loans and borrowing (less than 1 year) 6,297 5,656

Current provisions 31 660 1,540

Trade and other payables 29 24,013 21,328

Current tax liabilities 4,751 1,693

Other current liabilities 13, 8 180 554

Liabilities directly associated with assets held for sale 20 4,410

Current liabilities (within 12 months) 40,645 31,053

TOTAL EQUITY AND LIABILITIES 112,860 90,013

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with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of financial position (BEGAAP structure)

BE GAAP Statement and differences (1/2)

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with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of financial position (BEGAAP structure)

BE GAAP Statement and differences (2/2)

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with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of financial position (IFRS)

Example: Unibail-Rodamco-Westfield (Real Estate)
2023 Financial Statements

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Statement of profit
& loss and other
comprehensive income
(P&L)
IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of profit & loss and other comprehensive income (P&L)

Profit and loss

Increases in assets, or
decreases in liabilities, that
result in increases in equity
INCOME EXPENSE

Decreases in assets, or
increases in liabilities, that
result in decreases in equity

Other Comprehensive Income

OCI

Income and expense including reclassification adjustments that are not recognized
in profit or loss as required or permitted by IFRS.

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of profit & loss and other comprehensive income (IAS 1)

What is the difference between P&L and OCI?

CHANGES IN EQUITY/ NET ASSETS

Capital changes Performance changes

From primary performance From other activities allowed in

activities OCI by another IFRS

Statement of changes in Statement of profit and Statement of

equity loss comprehensive income
(for the period) (for the period) (for the period)

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of profit & loss and other comprehensive income (IAS 1)

In thousands of EUR Notes 2024 2023

Continuing operations
Revenue 8 102,860 96,719
Profit and loss section
Cost of sales 9(C) (55,432) (56,186)

Gross profit 47,428 40,533

Total of income less expense, analysed either by nature or by
Other income 9(A) 893 104 function.
Selling and distribution expenses 9(C) (18,322) (15,865)
The following minimum line items must be presented in the profit or
Administrative expenses 9(C) (17,732) (14,428) loss section:
Research and development expenses 9(C) (1,109) (697) • Revenue
Impairment loss on trade receivables and contract assets 32(C)(ii) (200) (190)
• Gains and losses from the derecognition of financial assets
Other expenses 9(B) (996) -
• Finance costs
Operating profit 9,962 9,457
• Share of the P&L of associates and JV (using the equity method)
Finance income 1,131 447

Finance costs (1,883) (1,635) • Gains or losses associated with the reclassification of financial assets
Net finance costs 10 (752) (1,188) • Tax expense
Share of profit of equity-accounted investees, net of tax 24 1,141 587 • A single amount for the total of discontinued items
Profit before tax 10,351 8,856
14
How profitable is the company?
Income tax expense (3,178) (2,460)

Profit from continuing operations 7,173 6,396

Discontinued operation
Profit (loss) from discontinued operation, net of tax 7 379 (422)

Profit for the period 7,552 5,974 Effective from the 1st of January 2027 IFRS 18 will be replacing IAS 1

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of profit & loss and other comprehensive income (IAS 1)

In thousands of EUR Notes 2024 2023

Continuing operations Effective from the 1st of January 2027 IFRS 18 will be replacing IAS 1
Revenue 8 102,860 96,719
Profit and loss section
Cost of sales 9(C) (55,432) (56,186)

Gross profit 47,428 40,533

Total of income less expense, analysed either by nature or by
Other income 9(A) 893 104 function.
Selling and distribution expenses 9(C) (18,322) (15,865)
The following minimum line items must be presented in the profit or
Administrative expenses 9(C) (17,732) (14,428) loss section:
Research and development expenses 9(C) (1,109) (697) • Revenue
Impairment loss on trade receivables and contract assets 32(C)(ii) (200) (190)
• Gains and losses from the derecognition of financial assets
Other expenses 9(B) (996) -
• Finance costs
Operating profit 9,962 9,457
• Share of the P&L of associates and JV (using the equity method)
Finance income 1,131 447

Finance costs (1,883) (1,635) • Gains or losses associated with the reclassification of financial assets
Net finance costs 10 (752) (1,188) • Tax expense
Share of profit of equity-accounted investees, net of tax 24 1,141 587 • A single amount for the total of discontinued items
Profit before tax 10,351 8,856
How profitable is the company?
Income tax expense 14 (3,178) (2,460)

Profit from continuing operations 7,173 6,396

Discontinued operation
Profit (loss) from discontinued operation, net of tax 7 379 (422)

Profit for the period 7,552 5,974

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of profit & loss and other comprehensive income (IAS 1)

BE GAAP Statement and differences (1/2)

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of profit & loss and other comprehensive income (IAS 1)

BE GAAP Statement and differences (2/2)

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of profit & loss and other comprehensive income (IAS 1)

In thousands of EUR Notes 2024 2023

Other comprehensive income

Items that will not be reclassified to profit or loss
Other comprehensive income (OCI) section
Revaluation of property, plant and equipment 21(F) 200 -

Remeasurements of defined benefit liability (asset) 13(B) 72 (15)

Items of income and expense (including reclassification adjustments)
Equity investments at FVOCI – net change in fair value 26(D) 141 59 that are not recognized in profit or loss, presented by nature.
Equity-accounted investees – share of OCI 24, 26(D) 15 (3)
The OCI includes:
Related tax 14(B) (137) (14)
• Changes in revaluation surplus from revaluation (IAS 16)
291 27
• Remeasurements of Employee Benefits (IAS 19)
Items that are or may be reclassified subsequently to profit or loss

Foreign operations – foreign currency translation differences 679 471

• Effects of Changes in Foreign Exchange Rates (IAS 21)

Net investments hedge – net loss (3) (8) • Changes on hedging instruments in a cash flow hedge (IFRS 9)
Equity-accounted investees – share of OCI 24, 26(D) (172) (166) • Remeasurements of investment in equity instruments (IFRS 9)
Reclassification of foreign currency differences on loss of significant 34(D) (20) - • Changes in the credit risk of a financial liability (IFRS 9)
influence

Cash flow hedges – effective portion of changes in fair value 26(D) (62) 95 Which elements, not immediately affecting the net income, could have
Cash flow hedges – reclassified to profit or loss 26(D) (31) (12) a significant impact on the future value of the company?
Cost of hedging reserve – changes in fair value 26(D) 34 10

Cost of hedging reserve – reclassified to profit or loss 26(D) 8 2

Debt investments at FVOCI – net change in fair value 26(D) 54 60

Debt investments at FVOCI – reclassified to profit or loss 26(D) (64) -

Related tax 14(B) 19 (48)

Comprehensive income for the period = P&L + OCI
442 404 Represents "the changes in equity during a period resulting from
transactions and other events, other than those changes resulting from
OCI for the period, net of tax 733 431
transactions with owners in their capacity as owners". [IAS 1.7]
Total comprehensive income for the period 8,285 6,405
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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of profit & loss and other comprehensive income (IAS 1)

No OCI under BE GAAP

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Statement of changes in
equity
IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of changes in equity (IFRS)

Parent

Total comprehensive income for the period

Non-controlling interests (NCI)

Effect of retrospective application of accounting policies or restatements

Profit or loss

Reconciliation of each component of equity OCI

Owners

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of changes in equity (IFRS)

In thousands of EUR Notes 31 December 2024 31 December 2023

Equity
Share Capital 14,979 14,550

Share premium 4,777 3,500

Reserves 1,1219 439

Retained earnings 20,443 13,786

Equity attributable to owners of the Company 26 41,418 32,275

Non-controlling interests 35 3,804 3,091

Total equity 45,222 35,366

Liabilities
Loans and borrowings (more than 1 year) 28 22,808 21,268 ? What’s behind this variance of +9,856k ?

Employee benefits 13 912 453

Trade and other payables 29 290 5

Deferred income 30 1,424 1,462

Provisions 31 1,010 -

Deferred tax liabilities 14 549 406

Non-current liabilities (after 12 months) 26,993 23,594

Bank overdraft 19 334 282

Loans and borrowing (less than 1 year) 28 6,297 5,656

Current provisions 31 660 1,540

Trade and other payables 29 24,013 21,328

Current tax liabilities 4,751 1,693

Other current liabilities 13, 8 180 554

Liabilities directly associated with assets held for sale 20 4,410

Current liabilities (within 12 months) 40,645 31,053

TOTAL EQUITY AND LIABILITIES 112,860 90,013

© 2025 KPMG Advisory, a Belgian BV/SRL and a member firm of the KPMG global organization of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
32
IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of changes in equity (IFRS)

Attributable to owners of the Company

In thousands of EUR Notes Share Share Translation Cost of Hedging Fair value Revaluation Treasury Equity Retained Total Non- Total
capital premium reserve hedging reserve reserve reserve share component earnings controlling equity
reserve reserve of convertible interests
notes

Balance at 1 January 2024 14,550 3,500 156 (27) 491 99 - (280) - 13,786 32,275 3,091 35,366
Total comprehensive income for the period

Profit for the period - - - - - - - - - 7,055 7,055 497 7,552

OCI for the period 14(B), - - 458 27 (62) 87 134 - - 63 707 26 733
26(D)

Total comprehensive income for the period - - 458 27 (62) 87 134 - - 7,118 7,762 523 8,285

Hedging gains and losses and costs of hedging - - - 4 4 - - - - - 8 - 8

transferred to the cost of inventory

Transactions with owners of the Company

Issue of ordinary shares 26(A) 390 1,160 - - - - - - - - 1,550 - 1,550

Issue of ordinary shares related to business combinations 34(A) 24 63 - - - - - - - 120 207 - 207

Issue of convertible notes 14(C) - - - - - - - - 109 - 109 - 109

Treasury shares sold 28(C)(D) - 19 - - - - - 11 - - 30 - 30

Dividends 28(C) - - - - - - - - - (1,243) (1,243) - (1,243)

Equity-settled share-based payment 13(E), - - - - - - - - - 755 755 - 755

14(C)

Share options exercised 26(A) 15 35 - - - - - - - 50 - 50

Total contributions and distributions 429 1,277 - - - - - 11 109 (368) 1,458 - 1,458

Acquisition of NCI without a change in control 36 - - 8 - - - - - - (93) (85) (115) (200)

Acquisition of subsidiary with NCI 34 - - - - - - - - - - - 305 305

Total changes in ownership interests - - 8 - - - - - - (93) (85) 190 105

Total transactions with owners of the Company 429 1,277 8 - - - - 11 109 (461) 1,373 190 1,563

Balance at 31 December 2024 14,979 4,777 622 4 433 186 134 (269) 109 20,443 41,418 3,804 45,222

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of changes in equity (IFRS)

Example: LVMH
2023 Financial Statements

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Statement of cash flows
IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of cash flows (IFRS)

In thousands of EUR Notes 31 December 2024 31 December 2023
In thousands of EUR

Equity
Notes 31 December
2024
31 December
2023

Share Capital 14,979 14,550

Asset
Share premium 4,777 3,500
Intangible assets and Goodwill 21 6,111 4,541
Reserves 1,1219 439
Property, plant and equipment 22 28,490 33,230
In thousands of EUR Notes 31 December 2024Retained
31 earnings
December 2023 20,443 13,786
Investment property 23 1,520 400
Equity attributable to owners of the 26 41,418 32,275
Biological Assets 16 4,698 4,025 Company
Equity-accounted investees 24 2,489 1,948
Cash and cash equivalents 1,504 1,849
Non-controlling interests 35 3,804 3,091
Other investments, including derivatives 25 3,616 3,512
Bank overdraft Total equity
(334) (282) 45,222 35,366
Deferred tax assets 14 2,251 2,108
Cash and cash equivalents in the statement of cash flows Liabilities
1,170 1,567
Other non-current assets 13 671 731
Loans and borrowings (more than 1 year) 28 22,808 21,268
Non-current assets (after 12 months) Net variance 49,846 50,495 (397)
Employee benefits 13 912 453
Intangible assets 22 115 120
Trade and other payables 29 290 5
Biological assets 16 32 What’s behind this variance?
31
30
Deferred income 1,424 1,462
Inventories and work-in-progress 17 12,148 12,119
Provisions 31 1,010 -
Contract assets 8 1,271 782
Deferred tax liabilities 14 549 406
Trade and other receivables 25 32,518 22,325
Non-current liabilities (after 12 months) 26,993 23,594
Current tax receivables 34 60
Bank overdraft 19 334 282
Other investments, including derivatives 18 662 1,032
Loans and borrowing (less than 1 year) 28 6,297 5,656
Prepayments 330 1,200
Current provisions 31 660 1,540
Cash and cash equivalents 19 1,504 1,849
Trade and other payables 29 24,013 21,328
Assets held for sale 20 14,400 0
Current tax liabilities 4,751 1,693
Current assets (within 12 months) 63,014 39,518
Other current liabilities 13, 8 180 554

TOTAL ASSETS 112,860 90,013 Liabilities directly associated with assets held 20 4,410
for sale

Current liabilities (within 12 months) 40,645 31,053

TOTAL EQUITY AND LIABILITIES 112,860 90,013

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Statement of cash flows (IFRS)

CASH INFLOW CASH OUTFLOW

Sources of cash Use of cash

CASH INFLOW (-) CASH OUTFLOW

= NET CASH FLOW

CASH FLOW FROM OPERATIONS

CASH FLOW FROM INVESTING

+
CASH FLOW FROM FINANCING
+
= NET INCREASE/ DECREASE IN CASH AND CASH EQUIVALENTS

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from operations Notes to the financial statements Annual report Key considerations

Statement of cash flows (IFRS)

In thousands of EUR Notes 2024 2023

Cash flows from operating activities

Profit/ (loss) for the period 7,552 5,974

Adjustments for: OPERATING ACTIVITIES

- Depreciation, amortization and impairments 21, 22 (A) 5,782 7,325

- Deferred income 30 (38) -

16(A)
Main revenue-producing activities of the entity that are not investing
- Change in fair value of biological assets (587) (28)
or financing activities.
- Increase in fair value of investment property 21 (B) (20) (60)
Operating cash flows include:
- Net finance costs 22 (C) 752 1,188
20 (A)
• cash received from customers
- Share of profit of equity-accounted investees, net of tax (1,141) (587)

- Gain on sale of PP&E 16(A) (48) (16) • cash paid to suppliers and employees
- Gain on sale of discontinued operation, net of tax 23(A) (516) -

- Equity-settled share-based payment transactions 10 755 248 Does the company generate sufficient positive cash flow to
- Tax expense/ income 24 3,153 2,416 maintain and grow its operations, without external financing?
15,644 16,460

Change in working capital:

- Inventories (1,843) (176)

- Trade and other receivables (16,946) (4,920) = Operating Cash Flow (OCF)
- Prepayments 870 (305) reflects cash generated by a company’s normal business operations .
- Trade and other payables 8,727 (6,841)

- Provisions and employee benefits 26 274

- Other change in working capital (e.g. contract assets and liabilities) (490) (636)

Cash generated from operating activities 5,988 3,856

Interest paid (1,609) (1,289)

Normally classified as operating unless specifically identified with financing or
Income taxes paid (400) (1,910) investing activities.
Net cash from operating activities 3,979 657
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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from operations Notes to the financial statements Annual report Key considerations

Statement of cash flows (IFRS)

In thousands of EUR Notes 2024 2023

Cash flows from operating activities

Cash receipts from customers XXX XXX

Cash paid to suppliers XXX XXX

DIRECT METHOD
Cash paid to employees XXX XXX

Cash paid for other operating expenses XXX XXX

Cash generated from operating activities 5,988 3,856 Shows each major class of gross cash receipts and gross cash payments
Interest paid (1,609) (1,289)

Income taxes paid (400) (1,910)

Net cash from operating activities 3,979 657

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from operations Notes to the financial statements Annual report Key considerations

Statement of cash flows (IFRS)

In thousands of EUR Notes 2024 2023
DIRECT METHOD

Shows each major class of gross cash receipts and gross cash payments
Cash flows from operating activities
Profit/ (loss) for the period 7,552 5,974

Adjustments for:
OR
- Depreciation, amortization and impairments 21, 22 (A) 5,782 7,325

- Deferred income 30 (38) -

INDIRECT METHOD
- Change in fair value of biological assets 16(A) (587) (28)

- Increase in fair value of investment property 21 (B) (20) (60)

- Net finance costs 22 (C) 752 1,188 Profit or loss is adjusted for the effect of non-cash and non-
20 (A)
operating transactions.
- Share of profit of equity-accounted investees, net of tax (1,141) (587)

- Gain on sale of PP&E 16(A) (48) (16)

- Gain on sale of discontinued operation, net of tax 23(A) (516) -

From accrual method To Cash method
- Equity-settled share-based payment transactions 10 755 248

- Tax expense/ income 24 3,153 2,416

15,644 16,460

Change in working capital:

- Inventories (1,843) (176)

- Trade and other receivables (16,946) (4,920)

- Prepayments 870 (305) + Balance sheet changes (net variance over the period).
- Trade and other payables 8,727 (6,841)

- Provisions and employee benefits 26 274

- Other change in working capital (e.g. contract assets and liabilities) (490) (636)

Cash generated from operating activities 5,988 3,856

Interest paid (1,609) (1,289)

Income taxes paid (400) (1,910)

Net cash from operating activities 3,979 657

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from investing Notes to the financial statements Annual report Key considerations

Statement of cash flows (IFRS)

In thousands of EUR Notes 2024 2023

Cash flows from investing activities

Interest received 37 29

Dividends received 26 32 INVESTING ACTIVITIES

Proceeds from sale of PP&E 1,179 397

Proceeds from sale of investments 1,346 534

Acquisition and disposal of long-term assets and other investments
Disposal of discontinued operation, net of cash disposed of 7 10,890 -
that are not considered to be cash equivalents.
Acquisition of subsidiary, net of cash acquired 34 (1,799) -
Investing cash flows include:
Acquisition of PP&E 23 (A) (15,857) (2,228)
16 (A)
• Purchase of fixed assets (CAPEX) or disposal of assets
Acquisition of other investments (300) (40)

Purchase of non-current biological assets 24 (A) (305) (835)

• Purchase or sale of investments such as stocks or securities
Acquisition of other investments 22(A), (D) (359) (342) • Lending or collecting money
Dividends from equity-accounted investees 30 21 -
How much cash has been generated or spent from various
Development expenditure (1,235) (503) investment-related activities in the period?
Receipt of asset-related government grant 130 1,462

Net cash used in investing activities (6,226) (1,494)

Growth strategy?
CFI provides insights regarding future expansion enhancing future
profitability as well as assessing investment efficiency.

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from financing Notes to the financial statements Annual report Key considerations

Statement of cash flows (IFRS)

In thousands of EUR Notes 2024 2023

Cash flows from financing activities

Proceeds from issue of share capital 26 (A) 1,550 -

Proceeds from issue of convertible notes 28 (C) 5,000 - FINANCING ACTIVITIES

Proceeds from issue redeemable preference shares 28 (E) 2,000 -

Proceeds from loans and borrowings 591 4,079

Activities that alter the equity capital and borrowing structure of the
Proceeds from sale of treasury shares 30 -
entity.
Proceeds from exercise of share options 26 (A) 50 -
Investing cash flows include:
Proceeds from settlement of derivatives 5 11
26 (C)-(E)
• cash received from issuing stock or debt
Transaction costs related to loans and borrowings (311) -

Acquisition of NCI 36 (200) - • cash spent on repaying debt or buying back stock
Repurchase of treasury shares - (280)

Repayment of borrowings (5,055) (2,445)

How well is a company’s capital structure managed?
Payment of lease liabilities (554) (590)

Dividends paid 26 (C) (1,243) (571)

Net cash from financing activities 1,863 204

Net decrease in cash and cash equivalents (384) (633)
Capital from Debt or Equity?
Cash and cash equivalents at 1 January 1,567 2,226
CFF measures the movement of cash between a firm and its owners,
Effect of movements in exchange rates on cash held (13) (26)
investors and creditors.
Cash and cash equivalents at 31 December 1,170 1,567

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from financing Notes to the financial statements Annual report Key considerations

Statement of cash flows (IFRS)

No Statement of Cash Flows under BE GAAP

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from financing Notes to the financial statements Annual report Key considerations

Statement of cash flows (IFRS)

Example: LVMH
2023 Financial Statements

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Notes to the financial
statements
IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from financing Notes to the financial statements Annual report Key considerations

Notes to the financial statements

The notes must: [IAS 1.112]
• present information about the basis of preparation of the financial statements and the specific accounting
policies used
• disclose any information required by IFRSs that is not presented elsewhere in the financial statements and
• provide additional information that is not presented elsewhere in the financial statements but is relevant to an
understanding of any of them
Notes are presented in a systematic manner and cross-referenced from the face of the financial statements to the
relevant note. [IAS 1.113]
IAS 1.114 suggests the following order:

Statement of compliance with IFRS

Including measurement basis used

Summary of significant accounting policies applied + other accounting policies used that are relevant to an understanding of the FS

Supporting information for items presented in each statement In the order of which each statement and each line item is presented

Including contingent liabilities and unrecognized contractual commitments

Other disclosures + non-financial disclosures

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from financing Notes to the financial statements Annual report Key considerations

Notes to the financial statements

Example: SOLVAY GROUP
2022 Financial Statements

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from financing Notes to the financial statements Annual report Key considerations

Notes to the financial statements Statement of compliance with IFRS

Example

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from financing Notes to the financial statements Annual report Key considerations

Notes to the financial statements Summary of significant accounting policies applied

Example

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from financing Notes to the financial statements Annual report Key considerations

Notes to the financial statements Supporting information for items presented in each statement

Example

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows from financing Notes to the financial statements Annual report Key considerations

Notes to the financial statements Other disclosures

Example

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Annual report
IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Annual report
Letter to shareholders/ stakeholders

Business description & performance

highlights
Sustainability report

Management’s discussion and analysis (MD&A)

Corporate Governance Report &

Corporate information
Risk Analysis
(incl. internal control)

Audit Report

Financial statements

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IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Annual report
Example: UCB
2023 Annual Report

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Key considerations and
benefits
IAS 1 – Presentation of FS Financial position Profit & loss and OCI Changes in equity Cash flows Notes to the financial statements Annual report Key considerations

Key considerations
Insight into performance, Key information for stakeholders Comparability of different organizations
Understanding of the
operations and cash flow (investors, regulators, customers and
business’s revenue,
employees) IAS 1 provides a universal framework
expenses, profitability, debt
Assessing the ability to
Helping business owners and
meet short-term and Valuation, liquidity and
Snapshot of financial health investors make informed Risk management
long-term obligations solvency ratios
decisions

Interpretations of the financial statements often vary, leading investors to

draw divergent conclusions about a company’s financial performance.

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Q&A
Links

Guide to annual financial statements – Illustrative

disclosures

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