HEIDELBERG MATERIALS AG Report of Heidelberg Materials AG on the
Annual Financial Statements 2023
Annual financial statements | Heidelberg Materials 2023 2 |
Annual financial statements 2023
4 | Balance sheet | 32 | Independent auditor's report |
6 | Income statement | 39 | Responsibility statement |
- Statement of changes in fixed
assets / Notes for the 2023 financial year
- Notes for the 2023 financial year
- General information
-
Accounting and valuation methods
11 Notes to the balance sheet
15 Notes to the income statement
17 Other information
31 Proposal for the appropriation of the balance sheet profit
Annual financial statements
In accordance with section 315 (5) of the German Commercial Code (HGB), the management report of Heidelberg Materials AG has been combined with the Group's management report, as the business trend, economic position, and future opportunities and risks of the parent company are closely linked with the Group on account of their common activity in the building materials business.
The combined management report of Heidelberg Materials Group and Heidelberg Materials AG can be found in the Group's Annual and Sustainability Report 2023.
The list of shareholdings in accordance with section 285 no. 11 of the German Commercial Code (HGB) can also be found in the notes of the Group's Annual and Sustainability Report 2023.
The annual financial statements and the combined management report of Heidelberg Materials AG and the Group for the 2023 financial year will be published in the Company Register.
Due to rounding, numbers presented in the annual finan cial statements may not add up precisely to the totals provided.
Heidelberg Materials 2023 3
Annual financial statements | Heidelberg Materials 2023 4 |
Assets
€m | Notes | 31 Dec. 2022 | 31 Dec. 2023 | |||
Fixed assets | ||||||
Acquired concessions, industrial property rights, similar rights and assets, and licences thereunder | 23.6 | 27.6 | ||||
Goodwill | 0.9 | 0.7 | ||||
Prepayments | 6.1 | 5.5 | ||||
Intangible assets | 1 | 30.6 | 33.8 | |||
Land and buildings | 316.6 | 324.3 | ||||
Plant and machinery | 300.6 | 306.5 | ||||
Other operating equipment | 51.8 | 49.7 | ||||
Prepayments and assets under construction | 66.2 | 88.9 | ||||
Property, plant and equipment | 2 | 735.2 | 769.4 | |||
Investments in subsidiaries | 3 | 21,090.0 | 22,292.4 | |||
Loans to subsidiaries | 4 | 1,116.4 | 1,388.6 | |||
Investments in other participations | 5 | 211.7 | 359.5 | |||
Other loans | 0.0 | 0.0 | ||||
Financial assets | 22,418.1 | 24,040.5 | ||||
23,183.9 | 24,843.7 | |||||
Current assets | ||||||
Raw materials and consumables | 41.0 | 42.9 | ||||
Work in progress | 36.2 | 40.6 | ||||
Finished goods and goods for resale | 18.3 | 24.3 | ||||
Prepayments | 0.1 | 0.1 | ||||
Emission rights | 62.6 | 73.9 | ||||
Inventories | 6 | 158.3 | 181.9 | |||
Trade receivables | 10.1 | 8.3 | ||||
Receivables from subsidiaries | 2,053.5 | 646.1 | ||||
Receivables from other participations | 3.6 | 3.1 | ||||
Other assets | 112.1 | 71.6 | ||||
Receivables and other assets | 7 | 2,179.4 | 729.1 | |||
Cash at bank and in hand | 243.9 | 2,052.5 | ||||
2,581.5 | 2,963.4 | |||||
Prepaid expenses | 8 | 18.1 | 27.5 | |||
Balance sheet total | 25,783.5 | 27,834.6 |
Annual financial statements | Heidelberg Materials 2023 5 |
Equity and liabilities
€m | Notes | 31 Dec. 2022 | 31 Dec. 2023 | |||
Equity | ||||||
Subscribed share capital | 9 | 579.3 | 558.6 | |||
Treasury shares | 9 | -20.7 | -12.4 | |||
Share premium | 10 | 6,159.9 | 6,180.6 | |||
Other revenue reserves | 11 | 4,024.6 | 3,968.6 | |||
Balance sheet profit | 12 | 494.3 | 566.4 | |||
11,237.3 | 11,261.8 | |||||
Provisions | ||||||
Provisions for pensions | 13 | 394.2 | 400.1 | |||
Tax provisions | 14 | 323.2 | 286.8 | |||
Other provisions | 15 | 220.7 | 176.8 | |||
938.1 | 863.7 | |||||
Liabilities | 16 | |||||
Bonds payable | 1,750.0 | 2,500.0 | ||||
Bank loans | 279.5 | 95.2 | ||||
Trade payables | 132.1 | 113.7 | ||||
Liabilities to subsidiaries | 11,386.3 | 12,888.4 | ||||
Liabilities to other participations | 1.2 | 0.7 | ||||
Other liabilities | 58.8 | 110.7 | ||||
13,608.0 | 15,708.7 | |||||
Deferred income | 0.1 | 0.4 | ||||
Balance sheet total | 25,783.5 | 27,834.6 |
Annual financial statements | Heidelberg Materials 2023 6 |
Profit and Loss Account
€m | Notes | 2022 | 2023 | |||
Revenue | 17 | 1,024.5 | 1,044.0 | |||
Change in finished goods and work in progress | 13.0 | 10.3 | ||||
Own work capitalised | 1.2 | 2.3 | ||||
Operating revenue | 1,038.8 | 1,056.7 | ||||
Other operating income | 18 | 30.7 | 16.7 | |||
Material costs | 19 | -440.8 | -385.8 | |||
Personnel costs | 20 | -287.1 | -305.1 | |||
Amortisation and depreciation of intangible assets and poperty, plant, and equipment | -48.7 | -47.6 | ||||
Other operating expenses | 21 | -250.4 | -291.2 | |||
Operating result | 42.5 | 43.7 | ||||
Income from profit transfer agreements | 22 | 13.5 | 922.5 | |||
Income from investments | 23 | 129.7 | 11.9 | |||
Income from long-term loans | 24 | 37.9 | 64.9 | |||
Other interest and similar income | 24 | 347.7 | 282.0 | |||
Income from currency translation | 25 | 1,645.7 | 923.8 | |||
Write-ups on financial assets | 26 | 0.0 | 142.7 | |||
Impairment on financial assets | 26 | 0.0 | -15.1 | |||
Interest and similar expenses | 24 | -252.4 | -601.6 | |||
Expenses from currency translation | 25 | -1,613.6 | -922.2 | |||
Taxes on income | 27 | -92.9 | -45.4 | |||
Profit after tax | 258.1 | 807.3 | ||||
Other taxes | -1.1 | -1.1 | ||||
Profit for the financial year | 257.0 | 806.2 | ||||
Profit brought forward | 37.3 | 10.2 | ||||
Withdrawals from other revenue reserves | 216.0 | 20.7 | ||||
Increase of other revenue reserves | 0.0 | -250.0 | ||||
Income from reduction of capital | 16.0 | 20.7 | ||||
Increase of share premium | -16.0 | -20.7 | ||||
Expense from cancellation of treasury shares | -16.0 | -20.7 | ||||
Balance sheet profit | 494.3 | 566.4 |
Annual financial statements | Heidelberg Materials 2023 | 7 |
Statement of changes in fixed assets/ Notes for the 2023 financial year
Acquisition and production cost | Accumulated drepreciation and impairment | Carrying amount | ||||||||||||||||||||||
1 Jan. | 31 Dec. | 1 Jan. | 31 Dec. | 31 Dec. | 31 Dec. | |||||||||||||||||||
€m | 2023 | Additions | Disposals | Transfer | 2023 | 2023 | Additions | Disposals | Transfer | 2023 | 2023 | 2022 | ||||||||||||
Intangible assets | ||||||||||||||||||||||||
Acquired concessions, industrial property rights, | ||||||||||||||||||||||||
similar rights and assets, and licences thereunder | 117.3 | 7.6 | 13.9 | 7.5 | 118.5 | 93.6 | 10.3 | 13.0 | 90.9 | 27.6 | 23.6 | |||||||||||||
Goodwill | 70.3 | 70.3 | 69.3 | 0.1 | 69.4 | 0.7 | 0.9 | |||||||||||||||||
Prepayments | 6.0 | 4.9 | -5.5 | 5.5 | 0.0 | 0.0 | 5.5 | 6.1 | ||||||||||||||||
193.6 | 12.5 | 13.9 | 2.0 | 194.2 | 162.9 | 10.4 | 13.0 | 160.3 | 33.8 | 30.6 | ||||||||||||||
Property, plant and equipment | ||||||||||||||||||||||||
Land and buildings | 827.1 | 9.2 | 3.8 | 10.9 | 843.4 | 510.6 | 12.2 | 3.7 | 519.1 | 324.3 | 316.6 | |||||||||||||
Plant and machinery | 891.8 | 6.6 | 26.0 | 15.6 | 888.0 | 591.2 | 16.0 | 25.7 | 581.5 | 306.5 | 300.6 | |||||||||||||
Other operating equipment | 135.3 | 4.5 | 3.2 | 2.3 | 138.9 | 83.6 | 8.9 | 3.2 | 89.3 | 49.7 | 51.8 | |||||||||||||
Prepayments and assets under construction | 66.2 | 53.4 | -30.7 | 88.9 | 0.0 | 0.0 | 88.9 | 66.2 | ||||||||||||||||
1,920.4 | 73.7 | 33.0 | -2.0 | 1,959.1 | 1,185.4 | 37.1 | 32.6 | 1,189.9 | 769.4 | 735.2 | ||||||||||||||
Financial assets | ||||||||||||||||||||||||
Investments in subsidiaries | 21,091.5 | 1,231.0 | 28.5 | 22,294.0 | 1.5 | 1.5 | 22,292.4 | 21,090.0 | ||||||||||||||||
Loans to subsidiaries | 1,120.4 | 371.1 | 83.8 | 1,407.7 | 4.0 | 15.1 | 19.0 | 1,388.6 | 1,116.4 | |||||||||||||||
Investments in other participations | 354.8 | 5.1 | 359.9 | 143.1 | 142,7 1) | 0.4 | 359.5 | 211.7 | ||||||||||||||||
Other loans | 3.4 | 3.4 | 3.4 | 3.4 | 0.0 | 0.0 | ||||||||||||||||||
22,570.1 | 1,607.2 | 112.3 | 0.0 | 24,065.0 | 152.0 | 15.1 | 142.7 | 0.0 | 24.3 | 24,040.5 | 22,418.1 | |||||||||||||
Fixed Assets | 24,684.1 | 1,693.3 | 159.2 | 0.0 | 26,218.3 | 1,500.3 | 62.6 | 188.3 | 0.0 | 1,374.5 | 24,843.7 | 23,183.9 |
1) Write-up €m 142.7
Annual financial statements | Heidelberg Materials 2023 8 |
Notes for the 2023 financial year
General information
HeidelbergMaterials AG has its registered office in Heidelberg, Germany. The company is listed in the register of the Mannheim Local Court (Amtsgericht) under HRB number 330082. Heidelberg Materials AG is a large corporation within the meaning of section 267 of the German Commercial Code (Handelsgesetzbuch, HGB).
The 2023 financial statements of Heidelberg Materials AG are presented in compliance with the HGB, the German Stock Corporation Act (Aktiengesetz, AktG), and the Articles of Association.
In the interest of better clarity and transparency, the remarks to be made in accordance with the statutory provisions for the items of the balance sheet and income statement on their face as well as the remarks to be made either in the balance sheet or income statement or in the Notes are listed in the Notes. The income statement classifies expenses according to their na- ture. The financial year is the calendar year.
For improved presentation, the figures are shown in millions of euros.
The balance sheet structure defined by the HGB has been extended on the assets side under inventories to include the item "5. Emission rights". The "income from currency translation", "write-ups on financial assets", and "expenses from currency translation" are shown as separate items in the income statement. The structure
of the income statement is extended to include the voluntary subtotals "operating revenue" and "operating result" for improved clarity. In addition, the sub-items of material costs and personnel costs are summarised in the income statement and shown separately in the Notes. The structure of the income statement has been expanded to include the item "Income from profit transfer agreements" pursuant to Section 277(3)(2) of the HGB.
The accounting and valuation methods used in the preparation of the annual financial statements remained unchanged in comparison with the previous year.
The financial statements are prepared on the assumption that the company will continue to operate for the foreseeable future. Therefore, the going concern assumption was used for the valuation.
Accounting and valuation methods
Acquired intangible assets are capitalised at cost and amortised on a straight-line basis over the expected useful life of five to ten years. Where impairment is expected to be permanent, extraordinary write-downs are made.
The option to capitalise development costs is not used for internally generated intangible assets. Expenses incurred in this respect are recognised in profit or loss in the year in which they are incurred.
The goodwill recognised as a result of accretions and mergers is mainly due to the acquisition of customer bases, which are amortised over the average customer retention period of between 10 and 15 years.
Prepayments are accounted for at their nominal amount.
Property, plant and equipment are valued at acquisition or production cost less amortisation and depreciation and any extraordinary write-downs.Production cost includes direct cost of materials, direct labour, and an appropriate portion of necessary materials and production overheads including production-relatedde- preciation.
Depreciation is applied on the basis of the following useful lives:
Useful lives
Years | ||
Buildings | 10 to 30 | |
Plant and machinery | 25 | |
Other operating and office equipment | 5 to 15 | |
IT hardware | 5 | |
Since 1 January 2008, additions have been depreciated on a straight-line basis. Wherever possible, the declining balance depreciation method is used for assets purchased prior to 1 January 2008. The transition to straight-line depreciation takes place in the year in which the straight-line method leads to higher annual depreciation for the first time. The amortisation of exploitation rights is measured according to the reduction in substance.
Low-value assets with an acquisition cost of less than € 800.00 are written off in the year of addition.
Annual financial statements | Heidelberg Materials 2023 9 |
Prepayments are reported at their nominal amount. Assets under construction are recognised at acquisition or production cost.
Of the financial assets, investments in subsidiaries and investments in other participations are recognised at cost. Impairment that is expected to be permanent is provided for by extraordinary write-downs. Loans are valued at their nominal amount less valuation allowanc- es. Impairment losses are reversed up to a maximum of the acquisition cost if the reasons for impairment no longer apply.
The Statement of changes in fixed assets is shown on page 7.
Inventories are stated at the lower of cost or market.
Raw materials, consumables, as well as spare parts were generally measured using the periodic LIFO meth- od. This approach did not lead to any major differences compared with the last known market price.
Finished goods and work in progress are valued at cost on the basis of individual product costing derived from the current cost accounting. In addition to the direct cost of materials, direct labour, and other special direct costs, the cost includes an adequate share of production and material overheads, depreciation, and general administration costs. Borrowing costs are not included in the cost. Goods purchased for resale are recognised at the lower of cost or market.
Prepayments are accounted for at their nominal amount.
Adequate allowances provide for all identifiable inventory valuation risks resulting from slow-moving goods, reduced usability, and lower replacement costs.
Emission rights are shown as inventories. Emission rights granted free of charge are initially measured at a nominal value of zero. Emission rights acquired for consideration are accounted for at cost using the moving average method and are subject to write-down in the event of impairment. Provisions for the obligation to return emission rights are recognised if the actual CO2 emissions up to the reporting date are not covered by emission rights granted free of charge. The amount of the provision for emission rights already acquired for consideration is measured at the carrying amount and, for emission rights yet to be acquired in order to fulfil the obligation, at the market value as at the reporting date.
Receivables and other assets are accounted for at their nominal value. Valuation allowances provide for identifiable individual risks. A general loss allowance of 6 % of all receivables is recognised for general credit risks.
Cash at bank and in hand is reported at nominal amount.
Expenses prior to the reporting date are shown as prepaid expenses if they represent expenses for a certain time after this date.
Provisions for pensions are determined using actuarial principles based on biometric assumptions (Heubeck 2018 G mortality tables) according to the projected unit credit method. Future expected salary and pension increases are taken into account when calculating the obligations. The standard retirement age in the statutory pension insurance is used. For the calculation, an average market interest rate of the past ten years is used, which is forecast on the reporting date and applies to an assumed remaining term of 15 years. The additional amount due to the new German Accounting Law Modernisation Act (Bilanzrechtsmodernisierungs- gesetz, BilMoG) regulations for the measurement of provisions for pensions will be distributed at a rate of at least 1/15 in each financial year until 31 December 2024 pursuant to the transitional provisions of the BilMoG.
The impact of the discounting and the change to the discount rate recognised in profit or loss is shown in the financial result. When calculating the expense from dis- counting, it is presumed that changes to discount rate, defined benefit obligation, and remaining term occur at the end of the financial year.
There is a group contractual trust agreement (CTA) to protect pension entitlements from insolvency. They are measured at fair value. These plan assets are offset against the underlying defined benefit obligations.
Securities-linked pension commitments with a capital maintenance or minimum interest guarantee are recognised at the fair value of the assets as soon as this exceeds the guaranteed minimum amount in the individual case.
Annual financial statements | Heidelberg Materials 2023 10 |
The tax provisions are reported at the necessary settlement amount according to reasonable commercial assessment.
Other provisions are reported at the necessary settlement amount which, according to reasonable commercial assessment, is necessary to cover all impending losses and contingent liabilities as at the reporting date. Their valuation takes into consideration future price and cost increases. Provisions with a remaining term of more than one year are discounted using the average market interest rate of the last seven years, which is calculated by the German Central Bank and appropriate to the term.
The impact of the discounting and the change to the discount rate recognised in profit or loss is shown in the financial result. When calculating the expense from dis- counting, it is presumed that changes to discount rate, defined benefit obligation, and remaining term occur at the end of the financial year.
Liabilities are recognised at the settlement amount.
Deferred income contains proceeds prior to the reporting date if they represent income for a certain time after this date.
Transactions in foreign currency are recognised at the average spot exchange rate effective at the time they occur. Financial assets, receivables, and liabilities, as well as contingent liabilities in foreign currency, are valued for currency translation purposes at the aver-
age spot exchange rate effective as at the reporting date - unless included in valuation units. The realisation and imparity principle is applied where the remaining term exceeds one year.
Derivative financial instruments are used to cover Group-widecurrency, interest rate, and price risks as part of the central financial management function. In the event of a direct hedging relationship between derivative financial instruments and the hedged item, valuation units are formed and accounted for using the net hedge presentation method. If no adequate hedging relationship exists, anticipated losses are recognised in profit or loss.
Deferred taxes are determined for timing differences between the statutory and tax valuation of fixed as- sets, liabilities, and prepaid expenses. Where applica- ble, tax losses carried forward are also taken into ac- count. The calculation of deferred taxes is based on the combined income tax rate, which was 29.7% (previous year: 29.7%) for Heidelberg Materials AG in the reporting year. This rate is composed of corporation tax, solidarity surcharge, and trade tax.
Deferred tax liabilities are predominantly due to different valuations of fixed assets. Deferred tax assets arise from higher obligations for defined benefit obligations and provisions for partial retirement and anniversary benefits in the financial statements prepared under the HGB. In addition, deferred tax assets result from non-tax-deductible provisions for anticipated losses and from higher valuations of inventories in the tax accounts.
A total resulting tax burden is recognised on the balance sheet as a deferred tax liability. In the event of an overall tax reduction, the excess deferred tax assets are not recognised on the balance sheet pursuant to the option under section 274(1)(2) of the HGB.
In Germany, the rules on global minimum taxation (Pillar Two) have been transposed into local law as a minimum tax law. For Heidelberg Materials AG, this will result in initial application for the 2024 financial year.
We carried out an impact analysis in order to estimate the future effects of the new regulations. This analysis is based on the currently available tax returns, the country-by-country report, and the financial statements of the business units to be included. Based on the impact analysis, we assume that we are represented in only a few jurisdictions where the transitional safe harbour regulations do not apply and where the simplified effective tax rate is simultaneously less than 15%.
On the basis of the information available at this point in time and notwithstanding any possible changes to local tax laws in the various jurisdictions, Heidelberg Materials AG anticipates an increase in the current tax expense of a low single-digit million euro amount in the 2024 financial year due to the global minimum tax.
Pursuant to section 274(3) of the German Commercial Code (HGB), Heidelberg Materials AG does not recognise any deferred taxes resulting from differences in connection with global minimum taxation (Pillar Two).
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Heidelberg Materials AG published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 05:54:06 UTC.
