EX-99.2 4 d822913dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

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2014

Unaudited

Condensed

Interim

Financial

Report

 

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Contents

 

I Business review of the first nine months of 2014

     3   

II Unaudited condensed interim financial statements

     4   

Unaudited consolidated income statement

     4   

Unaudited consolidated statement of comprehensive income

     5   

Unaudited consolidated balance sheet

     6   

Unaudited consolidated statement of changes in equity

     7   

Unaudited consolidated cash flow statement

     8   

Selected notes

     9   

General information

     9   

Summary of significant accounting policies

     9   

Segment reporting

     13   

Other notes

     14   

1. Significant events and transactions for the period

     14   

2. Income tax

     14   

3. Contingencies

     14   

4. Main risks and uncertainties

     14   

5. Business combinations

     15   

6. Financial instruments

     17   

7. Related parties

     17   

8. Significant events after balance sheet date

     17   

9. Exceptional items

     17   

 


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I. Business Review of the First Nine months of 2014

Highlights

 

  Since Omega Pharma Invest NV is a holding company that holds all shares of its participation, Omega Pharma NV, the business of the company is mainly determined by the business of the Omega Pharma group. Therefore, this business review mainly refers to the Omega Pharma group.

 

  Turnover grew by 7% compared to the same period of last year, benefitting from the good results of the Top 20 brands (increase of 10%). Double digit sales growth in France, Belgium, Germany, UK, Spain and Portugal. As a consequence of the strong euro, the currency conversion impact mounted to €-5.2 million versus last year.

 

  Gross margin grew by 9% from 54% on net sales to 56% as the result of an improved product mix.

 

  Results show that the restructuring of the last years turned around the business and start to pay off.

Key financial figures

Key financial figures for the First Nine months of 2014

 

(in € million)    YTD Sept
2014
     YTD Sept
2013
     Year on year
evolution
 

Consolidated turnover

     960.7         897.6         +7

Gross margin

     533.3         487.4         +9

Operating profit from continuing operations

     180.8         105.5         +71

 

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II. Unaudited condensed interim financial statements

Unaudited consolidated income statement

 

(in € thousand)

   January-
September
2014

Unaudited
     % of Net
sales
    January-
September
2013

Unaudited
     % of Net
sales
    Year on
year
evolution
 

Net Sales

     960 706         100     897 599         100     +7

Cost of goods sold

     -427 431         44     -410 236         46     +4

Gross Margin

     533 275         56     487 363         54     +9

Distribution expenses

     -48 874         5     -51 672         6     -5

Sales and Marketing expenses

     -268 496         29     -260 193         28     +3

General Administrative expenses

     -42 532         4     -42 560         5     -0

Other operating income/expense, net

     -3 756         0     3 212         0     -217

Exceptional items

     11 052         1     -30 679         3     +136

Operating Profit

     180 669         19     105 471         13     +65

Finance income

     3 047         0     3 308         0     -8

Finance cost

     -48 630         5     -49 732         5     -2

Net Finance cost

     -45 583         5     -46 424         5     -2

Result before income tax

     135 086         14     59 047         7     +129

Income tax expense

     -14 887         2     -16 305         2     -9

Result after income tax

     120 199         13     42 742         5     +181

Of which attributable to the shareholders of the parent company

     120 468           42 759        

Of which attributable to non-controlling interests

     -269           -17        

 

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Unaudited consolidated statement of total comprehensive income

 

(in € thousand)

   Fair value
and other
reserves
     Cumulative
translation
adjustments
     Retained
earnings
     Attributable to
the shareholders
of the parent
company
     Attributable
to non-
controlling
Interests
     Total equity  

Profit for the period

           42 759         42 759         -17         42 742   

Fair value gains on cash flow hedges

     2 777               2 777            2 777   

Fair value gains on cash flow hedges - Tax effect

     -944               -944            -944   

Currency translation adjustments (*)

        763            763            763   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total comprehensive income for the period ended 30 September 2013

     1 833         763         42 759         45 355         -17         45 338   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(in € thousand)

   Fair value
and other
reserves
     Cumulative
translation
adjustments
     Retained
earnings
     Attributable to
the shareholders
of the parent
company
     Attributable
to non-
controlling
Interests
     Total equity  

Profit for the period

           120 468         120 468         -269         120 199   

Fair value losses on cash flow hedges

     -3 831               -3 831            -3 831   

Fair value losses on cash flow hedges - Tax effect

     1 302               1 302            1 302   

Currency translation adjustments(*)

        471            471            471   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total comprehensive income for the period ended 30 September 2014

     -2 529         471         120 468         118 410         -269         118 141   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The fair value gains / (losses) and the currency translation adjustments may subsequently be reclassified to the income statement and total € -2.5 million as at 30 September 2014 and € 1.8 million as at 30 September 2013.

 

(*) There is no tax impact on the cumulative translation adjustments.

 

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Unaudited consolidated balance sheet

 

(in € thousand)   

30 September 2014

unaudited

    

31 December 2013

audited

 

Non-current assets

     1 777 368         1 689 977   

Intangible assets

     1 629 465         1 555 423   

Of which Consolidation goodwill

     603 914         580 594   

Property, plant and equipment

     85 498         79 665   

Financial assets

     0         1 940   

Deferred income tax assets

     59 510         41 315   

Other non-current assets

     2 895         11 634   

Current assets

     502 763         523 929   

Inventories

     208 684         191 613   

Trade receivables

     220 820         210 223   

Other current assets

     51 674         44 719   

Of which Income tax assets

     5 022         3 483   

Cash and cash equivalents

     21 585         77 374   
  

 

 

    

 

 

 

TOTAL ASSETS

     2 280 131         2 213 906   
  

 

 

    

 

 

 

EQUITY

     700 879         626 799   

Share capital and share premium

     424 489         424 489   

Retained earnings

     319 999         243 530   

Treasury shares

     -34 926         -34 926   

Fair value and other reserves

     -9 279         -6 750   

Cumulative translation adjustments

     989         518   

Equity attributable to the shareholders of the parent company

     701 272         626 861   

Equity attributable to non-controlling interests

     -393         -62   

LIABILITIES

     1 579 252         1 587 107   

Non-current liabilities

     1 247 334         1 145 592   

Provisions

     1 790         1 754   

Pension obligations

     13 847         14 013   

Deferred income tax liabilities

     124 213         106 246   

Retail Bond

     600 000         600 000   

Borrowings (non-current financial liabilities)

     491 815         410 586   

Other non-current liabilities

     1 133         1 072   

Derivative financial instruments

     14 536         11 921   

Current liabilities

     331 918         441 515   

Borrowings (current financial liabilities)

     34 090         41 045   

Trade payables

     193 992         309 716   

Taxes, remuneration and social security

     55 554         48 558   

Other current payables

     48 282         38 619   

Derivative financial instruments

     0         3 577   
  

 

 

    

 

 

 

TOTAL EQUITY AND LIABILITIES

     2 280 131         2 213 906   
  

 

 

    

 

 

 

 

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Unaudited consolidated statement of changes in equity

 

(in € thousand)

   Number of
shares
     Share
capital
and share
premium
     Treasury
shares
     Fair
value &
other
reserves
     Cumulative
translation
adjustments
     Retained
earnings
     Attributable
to
Shareholders
of parent
company
     Attributable
to non-
controlling
interests
     Total
equity
 

Balance at 31 December 2012

     685 348 257         424 489         -34 926         -8 541         423         229 812         611 257         -129         611 128   

Total comprehensive income for the period ended 30 September 2013

              1 833         763         42 759         45 355         -17         45 338   

Capital increases

                          

Share split

                          

Dividend

                    -40 024         -40 024            -40 024   

Attributable to non-controlling interests

                          94         94   

Balance at 30 September 2013

     685 348 257         424 489         -34 926         -6 708         1 186         232 547         616 588         -52         616 536   

Balance at 31 December 2013

     685 348 257         424 489         -34 926         -6 750         518         243 530         626 861         -62         626 799   

Total comprehensive income for the period ended 30 September 2014

              -2 529         471         120 468         118 410         -269         118 141   

Capital increases

                          

Share split

                          

Change in percentage of non-controlling interests

                          

Dividend

                    -43 999         -43 999            -43 999   

Attributable to non-controlling interests

                          -62         -24   

Balance at 30 September 2014

     685 348 257         424 489         -34 926         -9 279         989         319 999         701 272         -393         700 879   

 

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Unaudited consolidated cash flow statement

 

(in € thousand)   

January-
September

2014

Unaudited

    

January-
September

2013

Unaudited

 

Profit before income tax

     135 086         59 046   
  

 

 

    

 

 

 

Taxes paid

     -17 370         -14 591   

Adjustments for operational non-cash items

     26 419         33 797   

Adjustments for interests and financial non-cash items

     37 310         37 528   
  

 

 

    

 

 

 

Gross cash flow from operating activities

     181 445         115 780   
  

 

 

    

 

 

 

Changes in working capital

     -150 480         -203 909   
  

 

 

    

 

 

 

Total cash generated from operating activities

     30 965         -88 129   
  

 

 

    

 

 

 

Capital expenditure

     -72 578         -65 034   

Disposals of investment goods

     3 224         1 794   

Proceeds from divestments in existing and former holdings

     30 753         0   

Investments in existing shareholdings (post payments) and in new holdings

     -40 269         -5 153   
  

 

 

    

 

 

 

Total cash used in investing activities

     -78 870         -68 393   
  

 

 

    

 

 

 

Dividend distribution

     -44 003         -40 033   

Proceeds from borrowing

     67 896         149 931   

Interest received

     3 423         2957   

Interests paid

     -34 972         -26 307   
  

 

 

    

 

 

 

Total cash used in financing activities

     -7 656         86 548   
  

 

 

    

 

 

 

Net increase/decrease of cash flows for the period

     -55 561         -69 974   
  

 

 

    

 

 

 

Cash and cash equivalents - start of the period

     77 373         136 881   

Gains or losses on currency exchange on liquid assets

     -227         -2 609   

Cash and cash equivalents - end of the period

     21 585         64 298   
  

 

 

    

 

 

 

Total net cash flow of the period

     -55 561         -69 974   
  

 

 

    

 

 

 

 

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Selected notes

General information

Omega Pharma Invest NV (the ‘Company’) and its subsidiaries (together the ‘Group’) are vendors of high-added-value products and services to pharmacies and other medical sectors. The Group has activities in close to 40 countries.

The Company is a limited liability company, making a public appeal on savings. The Company is incorporated and domiciled in Belgium, having its registered office at Venecoweg 26, 9810 Nazareth, with company number BE 0439 608 834.

The condensed consolidated interim financial statements for the nine months’ period ended 30 September 2014 have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ as issued by the International Accounting Standards Board (IASB). This document should be read together with the consolidated annual accounts for the period 2013 (including the significant accounting policies) as prepared for the purpose of publication in the United States of America (US) and based on International Financial Reporting Standards as issued by the IASB (further the 2013 Consolidated Financial Statements).

Since the Group prepares condensed consolidated interim financial statements as per and for the nine-month periods ended 30 September 2014 and 2013 for the first time and since the Group otherwise does not prepare quarterly interim financial statements, the third quarter information is not included in these condensed consolidated interim financial statements.

These condensed consolidated interim financial statements have been approved for publication by the Board of Directors of 17 November 2014.

Summary of significant accounting policies

The principal accounting policies applied in preparation of these consolidated interim financial report are identical to those applied in preparation of the consolidated financial statements for the year ended on 31 December 2013.

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these condensed interim financial statements, the significant judgements made by management in applying the group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the 2013 Consolidated Financial Statements), with the exception of changes in estimates that are required in determining the provision for income taxes and recognition of deferred tax assets as further detailed further in the notes.

 

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A summary of the principal accounting policies can be found in Note 2 to the consolidated financial statements as included in the 2013 Consolidated Financial Statements.

The following new standards, amendments to standards and interpretations are mandatory for the first time for the financial year beginning 1 January 2014. None of the below standards or interpretations had a significant impact on the Group:

 

  Amendments to IAS 32 ‘Offsetting financial assets and financial liabilities’, effective for annual periods beginning on or after 1 January 2014. The amendments clarify some of the requirements for offsetting financial assets and financial liabilities on the statement of financial position.

 

  Amendments to IAS 36 ‘Impairment of assets’, effective for annual periods beginning on or after 1 January 2014. The IASB made consequential amendments to the disclosure requirements of IAS 36 when it issued IFRS 13. One of the amendments was drafted more widely than intended. This limited scope amendment corrects this and introduces additional disclosures about fair value measurements when there has been impairment or a reversal of impairment.

 

  Amendments to IAS 39 ‘Financial instruments: Recognition and measurement’, effective for annual periods beginning on or after 1 January 2014. These amendments provide relief from discontinuing hedge accounting when novation of a derivative designated as a hedging instrument meets certain criteria. Similar relief will be included in IFRS 9 ‘Financial instruments’.

 

  IFRIC 21 ‘Levies’, effective for annual periods beginning on or after 1 January 2014. IFRIC 21 sets out the accounting for a liability to pay a levy if that liability is within the scope of IAS 37. It also addresses the accounting for a liability to pay a levy whose timing and amount is certain.

The following new standards and amendments to standards have been issued, but are not mandatory for the first time for the financial year beginning 1 January 2014. None of the following standards or interpretations is expected to have a significant effect on the consolidated financial statements of the Group:

 

  IFRS 9 ‘Financial instruments’, effective for annual periods beginning on or after 1 January 2018. The standard addresses the classification, measurement and derecognition of financial assets and financial liabilities.

 

  Amendment to IAS 19 ‘Defined benefit plans’, effective for annual periods beginning on or after 1 July 2014. The amendment seeks clarification for the accounting of employee contributions set out in the formal terms of a defined benefit plan.

 

  Amendment to IFRS 9 ‘financial instruments’ on general hedge accounting, effective for annual periods beginning on or after 1 January 2018. The amendment incorporates the new general hedge accounting model which will allow reporters to reflect risk management activities in the financial statements more closely as it provides more opportunities to apply hedge accounting. These amendments also impact IAS 39 and introduce new disclosure requirements for hedge accounting, thereby impacting IFRS 7, irrespective of the fact whether hedge accounting requirements under IFRS 9 or IAS 39 are used.

 

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  Amendment to IFRS 11 ‘Joint arrangements’ on acquisition of an interest in a joint operation, effective for annual periods beginning on or after 1 January 2016. This amendment adds new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business. The amendments specify the appropriate accounting treatment for such acquisitions.

 

  Amendment to IAS 16 ‘Property, plant and equipment’ and IAS 38 ‘Intangible assets’ on depreciation and amortisation, effective for annual periods beginning on or after 1 January 2016. In this amendment the IASB has clarified that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset. The IASB has also clarified that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset.

 

  IFRS 15 ‘Revenue from contracts with customers’. The IASB and FASB have jointly issued a converged standard on the recognition of revenue from contracts with customers. The standard will improve the financial reporting of revenue and improve comparability of the top line in financial statements globally. Companies using IFRS will be required to apply the revenue standard for annual periods beginning on or after 1 January 2017, subject to EU endorsement.

 

  Annual improvements (2010-2012 cycle)’ with minor amendments to eight standards, effective for annual periods beginning on or after 1 July 2014. The amendments relate to IFRS 2 ‘Definition of vesting condition’, IFRS 3 ‘Accounting for contingent consideration in a business combination’, IFRS 8 ‘Aggregation of operating segments’, ‘IFRS 8 ‘Reconciliation of the total of the reportable segments’ assets to the entity’s assets’, IFRS 13 ‘Short-term receivables and payables’, IAS 7 ‘Interest paid that is capitalised’, IAS 16/IAS 38 ‘Revaluation method—proportionate restatement of accumulated depreciation’ and IAS 24 ‘Key management personnel’.

 

  ‘Annual improvements (2011-2013 cycle)’ in response to four issues addressed during the 2011-2013 cycle, effective for annual periods beginning on or after 1 July 2014. The amendments include IFRS 1 ‘Meaning of effective IFRSs’, IFRS 3 ‘Scope exceptions for joint ventures’, IFRS 13 ‘Scope of paragraph 52 (portfolio exception)’ and IAS 40 ‘Clarifying the interrelationship of IFRS 3 Business Combinations and IAS 40 Investment Property when classifying property as investment property or owner-occupied property’.

 

  ‘Annual Improvements (2012–2014 cycle)’ with amendments to 4 standards, effective for annual periods beginning on or after 1 January 2016. The amendments include IFRS 5, ‘Non-current assets held for sale and discontinued operations’, IAS 19, ‘Employee benefits’, IFRS 7, ‘Financial instruments: disclosures’ and IAS 34, ‘Interim financial reporting’.

Amendments to IFRS 10, ‘Consolidated financial statements’ and IAS 28, ‘Investments in associates and joint ventures’, effective for annual periods beginning on or after 1 January 2016. These amendments address an inconsistency between the requirements in IFRS 10 and those in IAS 28 in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognised when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.

 

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Segment reporting

During the first three quarters of 2014, the segment reporting has not changed compared to the first three quarters ended 30 September 2013 and is consistent with the presentation in the 2013 Consolidated Financial Statements to which we refer for further details on the reporting process of the Group.

The segment results for the period ended 30 September 2013 are as follows:

 

(in EUR thousand)

   Total
turnover
     Inter-segment
turnover
     Net turnover      Operating result of
the segment
 

Western Europe

     601 015         -192 316         408 699         54 644   

Belgium

     219 663         -15 813         203 850         23 616   

France

     156 746         -4 034         152 712         24 018   

Emerging Markets

     161 750         -29 412         132 338         21 932   

Not allocated

     —           —           —           -18 739   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Omega Pharma Invest

     1 139 174         -241 575         897 599         105 471   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Finance cost

              -46 424   

Result before income tax

              59 047   

The segment results for the period ended 30 September 2014 are as follows:

 

(in EUR thousand)

   Total
turnover
     Inter-segment
turnover
     Net turnover      Operating result of
the segment
 

Western Europe

     640 947         -189 516         451 431         99 364   

Belgium

     248 795         -21 186         227 609         22 942   

France

     172 982         -3 458         169 524         38 818   

Emerging Markets

     133 553         -21 411         112 142         15 693   

Not allocated

     —           —           —           3 852   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Omega Pharma Invest

     1 196 277         -235 571         960 706         180 669   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Finance cost

              -45 583   

Result before income tax

              135 086   

The decrease in Net Turnover in the Emerging Markets by some 15% is predominantly due to the impact of political issues in Ukraine and neighbouring regions and the impact thereof on consumer confidence. These circumstances did not have a significant impact on the Group’s financial assets and liabilities.

 

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Other notes

 

1. Significant events and transactions of for the nine-month period ended 30 September 2014

 

    Increase of borrowings is mainly driven by the investments in capital expenditures and business combinations.

 

    Decrease of trade payables mainly relates to a timing differences of payments issued and is considered to be temporary.

 

    Proceeds from divestments predominantly relate to the earn-out received in respect a financial interest that was sold in 2009. The gain realised is included in Exceptional Items in the income statement.

 

    Dividends for an amount of EUR 44 million were paid during the first nine months of 2014.

 

2. Income tax

The amount of the income taxes is a management estimate and is based on an expected average effective tax rate of 20% for the entire accounting period 2014, adjusted for one-off events as mentioned below.

The effective tax rate related to the underlying operational profits is lower than last year. The previously unrecognised deferred tax asset in respect of tax losses carried forward at the level of Omega Pharma Invest NV, has been recognised for an amount of EUR 12.1 million. The recoverability is substantiated by a detailed plan. The effective tax rate is further positively impacted by the exceptional income on divestments which are not taxed.

 

3. Contingencies

During the first nine months of 2014 no material changes occurred to the situation as described in Note 7.1 of the 2013 Consolidated Financial Statements.

 

4. Main risks and uncertainties

The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The interim financial report does not include all financial risk management information and disclosures required in the 2013 Consolidated Financial Statements, and should be read in conjunction with the 2013 Consolidated Financial Statements.

During the first three quarters of 2014 there have been no significant changes in the risk profile of the Group nor is the risk profile of the group expected to change in the fourth quarter of 2014.

 

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5. Business combinations

During the first nine months of 2014, Omega Pharma acquired a number of companies:

 

    Ymea BV, a Dutch company and owner of the Ymea brand. The Group has obtained full control, the entity is consolidated since 1 April 2014.

 

    A company named OceBio NV, focused on health retail in pharmacies in Belgium and the Netherlands (includes in other in the table below). The Group has obtained full control, the entity is consolidated since 1 January 2014.

 

    The Group obtained control over Despharma through the acquisition of 100% of the shares. The entity is consolidated since 1 July 2014.

 

    A few small transactions with minor impact on the balance sheet (below materiality level).

All transactions are accounted for as business combinations.

In conformity with IFRS 3, the purchase price allocation and the goodwill calculation were done on a preliminary basis and may still be modified within twelve months following the acquisition date.

 

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    Ymea     Despharma     Others                    
(in € thousand)   Book value     Fair value
adjustments
    Book value     Book value     Fair value
adjustments
    Book value     Book value     Fair value
adjustments
    Fair value     Book value     Fair value
adjustments
    Fair value  

Non-current assets

    1        30.686        30.687        142        0        142        1.528        116        1.644        1.671        30.802        32.473   

Intangible assets

    0        30.686        30.686        140          140        889        -35        854        1.029        30.651        31.680   

Property, plant and equipment

    1        0        1        2          2        245        0        245        248        0        248   

Other non-current assets

    0        0        0              394        0        394        394        0        394   

Deferred tax assets

    0        0        0              0        151        151        0        151        151   

Current assets

    3.953        0        3.953        2.002          2.002        3.873        0        3.873        9.828        0        9.828   

Cash and cash equivalents

    1.608        0        1.608        110          110        235        0        235        1.953        0        1.953   

Other current assets

    2.345        0        2.345        1.892          1.892        3.638        0        3.638        7.875        0        7.875   

Non-current liabilities

    0        0        0        0          0        206        0        206        206        0        206   

Deferred tax liabilities

    0        7.672        7.672            0        0        0        0        0        7.672        7.672   

Other non-current liabilities

    0        0        0        0          0        206        0        206        206        0        206   

Current liabilities

    3.239        0        3.239        129          129        3.271        433        3.704        6.639        433        7.072   

Net assets acquired

    715        23.014        23.729        2.015          2.015        1.924        -317        1.607        4.654        22.697        27.351   

Goodwill

        7.672            5.745            8.671            21.088   
     

 

 

       

 

 

       

 

 

       

 

 

 

Total consideration

        31.401            7.760            10.278            49.439   
     

 

 

       

 

 

       

 

 

       

 

 

 

 

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6. Financial instruments

For all financial assets and liabilities the carrying amount is a reasonable approximation of their fair value except for the derivatives that are accounted for at fair value.

The fair value measurement of the derivatives can be categorised as level 2.

The fair value of the interest swaps is calculated as the present value of estimated future cash flows. The fair value of the currency swaps is determined using forward exchange market rates at the balance sheet dates. All inputs that have a significant effect on the fair value are observable, directly or indirectly.

As at 30 September 2014, the Group has unused credit lines available for a total amount of €259 million .

 

7. Related parties

Related parties refer to the non-executive members of the Board of Directors. The remuneration of the non-executive members of the Board of Directors is determined on an annual basis, for which reason no further details are included in this interim financial report.

 

8. Significant events after balance sheet date

 

    In October 2014, Omega Pharma acquired all European rights of XLS from InQpharm.

 

    On November 6th, Omega Pharma announced to have entered into a definitive agreement with Perrigo Company plc in which Perrigo has agreed to acquire Omega Pharma for 3.6 billion EUR. The proposed transaction, which has been unanimously approved by the respective Boards of Directors of Perrigo and Omega, is subject to the satisfaction of closing conditions, including customary regulatory approvals. The transaction is expected to close in the first quarter of calendar year 2015.

 

9. Exceptional items

Exceptional items are defined as those items that are considered by management to be non-recurring or unusual because of their nature. The exceptional items relate to:

 

    Acquisition costs;

 

    Restructuring costs;

 

    Factory or site closure costs;

 

    Business restructuring costs

 

    Cost associated with the termination of distribution agreement.

For the nine-months ended 30 September 2014, the exceptional items include EUR 24 million of income and EUR 13 million expenses. The income mainly relates to an earn-out received in respect a financial interest that was sold in 2009. The expenses mainly relate to business restructuring. For the nine-months ended 30 September 2013, the main components of the exceptional items relate to business restructuring and a bad debt provision for a major distributor in Italy.

 

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