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Consolidated Financial Statements Arbonia Group

Notes to the Consolidated Financial Statements

A Accounting principles

1. General information

Arbonia Group (Arbonia) is a focused building components supplier. Arbonia is divided into two main divisions, namely HVAC (Heating, Ventilation and Air Conditioning) and Doors. Manufacturing plants are located in Switzerland, Germany, the Czech Republic, Italy, Poland, Belgium, Russia and Serbia. Arbonia owns major brands such as Kermi, Arbonia, Prolux, Koralle, Sabiana, Vasco, Brugman, Superia, RWD Schlatter, Prüm, Garant and Invado and possesses a strong position in its home markets in Switzerland and Germany. The Group focuses on the development of existing markets in Central and Eastern Europe. Arbonia is represented in over 70 countries worldwide.

The ultimate parent company, Arbonia AG is a corporation organised under Swiss law incorporated and domiciled at Amriswilerstrasse 50, CH-9320 Arbon (Canton Thurgau). Arbonia AG is listed on the SIX Swiss Exchange in Zurich under the valor number 11024060 / ISIN CH0110240600.

These consolidated financial statements have been approved for issue by the Board of Directors of Arbonia AG on 21 February 2023 and require approval from the Annual General Meeting on 21 April 2023. The publication of the consolidated financial statements occurred on 28 February 2023 at the media and analyst conference.

2. General principles and basis of preparation

The consolidated financial statements of Arbonia have been prepared in accordance with International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB).

The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates and assumptions. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. Areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 30.

Amendments to significant published standards

The accounting policies adopted in the preparation of the annual consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements for the year ended 31 December 2021.

The new or amended standards had no material impact on the Group’s financial statements.

Published standards that are not yet effective nor adopted early

The published but as of the balance sheet date not yet effective significant new or amended standards will not have a material impact on the Group’s financial statements.

Changes in presentation – Consolidated Income Statement

External services in the area of assembly, which were previously shown mainly for the Wood Solutions Business Unit of the Doors Division under «personnel expenses», are now shown under «other operating expenses». Arbonia believes that the restated presentation more appropriately reflects the underlying business transactions. The comparative figures for 2021 with an effect of CHF 13.8 million have been restated accordingly.

3. Reporting entity

The consolidated financial statements are based on the financial statements of the individual Group companies prepared as of 31 December. Subsidiaries are fully consolidated from the date on which control is transferred to Arbonia (generally where the interest in votes and share capital is more than 50%). They are deconsolidated from the date that control ceases.

Investments in associated companies, over which Arbonia exercises significant influence but does not control, are initially recognised at cost. The cost comprises the share in net assets and a possible goodwill. After the date of acquisition, the investment is accounted for using the equity method. A significant influence is generally assumed by a shareholding of between 20% to 50% of the voting rights.

The following material changes occurred in the Group:

In the financial year 2022

  • As of 16 July 2022, Arbonia acquired 100% of Joro Türen Gmbh, DE-Renchen (see note 41).
  • As of 5 December 2022, Arbonia acquired 100% of Cirelius S.A., PT-Avintes (see note 41).

In the financial year 2021

  • As of 30 March 2021, Arbonia acquired 100% of CICSA Industriales del Calor S.L., ES-Coslada (Madrid) (see note 41).
  • As of 22 July 2021, Arbonia acquired 100% of Termovent Komerc d.o.o., RS-Belgrade (see note 41).
  • As of 31 August 2021, Arbonia acquired 100% of Glasverarbeitungsgesellschaft Deggendorf mbH (GVG), DE-Deggendorf (see note 41).
  • As of 31 August 2021, Arbonia sold the Windows Division (see note 36).

An overview of the material Group companies is included in note 60.

4. Full consolidation

In line with the full consolidation method, 100% of all balance sheet and income statement items are included in the consolidated financial statements. Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.

For each acquisition the non-controlling interest in the acquiree is either measured at fair value or the proportionate acquired net assets. Non-controlling interests are disclosed in the balance sheet as part of shareholders’ equity, provided that no purchase commitment exists. The result attributable to non-controlling interests in the income statement and the statement of comprehensive income forms part of the Group result for the period.

5. Capital consolidation

Subsidiaries are fully consolidated from the date on which control is transferred to Arbonia. The acquisition method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured at the fair value of the assets given and liabilities incurred or assumed at the date of exchange. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. Contingent considerations are measured at fair value and are included in the purchase price. Subsequent changes to the fair value of the contingent consideration are recognised in the income statement unless the consideration is an equity instrument. Directly attributable acquisition-related costs are expensed.

If the acquisition is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest is remeasured to fair value at the acquisition date. Gains or losses arising from such remeasurement are recognised in the income statement.

If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the income statement.

Companies which are sold are deconsolidated from the date that control ceases. The difference between the consideration received and the net assets is recognised in the income statement as other operating income / expenses.

B Summary of significant accounting policies

6. Significant accounting policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below, from notes 7 to 29.

These consolidated financial statements are based on the annual financial statements of the Group companies prepared in accordance with the Group’s uniform accounting policies. Balance sheet items are generally stated at cost as modified by the revaluation of financial instruments at fair value through profit or loss. Assets held for sale and disposal groups are measured at the lower of its carrying amount and fair value less costs to sell. Investments in associated companies are measured at cost at the time of acquisition and subsequently at the proportionate share of equity.

7. Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each Group company are measured using the currency of the primary economic environment in which the company operates (the functional currency). The consolidated financial statements are presented in Swiss francs (CHF).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in comprehensive income as qualifying net investment hedges.

Group companies

The results and financial position of all the Group companies that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet. Income and expenses for each income statement as well as the cash flow statements are translated at average exchange rates. All resulting exchange differences are recognised as a separate component of comprehensive income under other reserves.

Exchange differences arising on intercompany loans of an equity nature that essentially form part of the company’s net investment in the foreign entity are classified in comprehensive income under other reserves.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and are translated at the closing rate.

When a foreign operation is sold or liquidated, exchange differences that were recorded in comprehensive income are recognised in the income statement.

The following foreign currency rates have been applied:

Currency

Unit

2022

2021

Year-end rate

Average rate

Year-end rate

Average rate

EUR

1

0.9897

1.0053

1.0372

1.0812

CZK

100

4.1041

4.0939

4.1722

4.2161

PLN

100

21.1028

21.4807

22.5508

23.6956

CNY

100

13.3331

14.2048

14.3662

14.1683

RUB

100

1.2829

1.4206

1.2355

1.2402

RSD

100

0.8385

0.8559

0.8800

0.9200

8. Maturities

Assets realised or consumed within 12 months in the ordinary course of business or held for trading purposes are classified as current assets. All other assets are classified as non-current assets.

Liabilities to be redeemed in the ordinary course of business, held primarily for the purpose of trading, falling due within 12 months from the balance sheet date or do not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date are classified as current liabilities. All other liabilities are classified as non-current liabilities. If a binding commitment to extend an expiring financial liability has been received as of the balance sheet date, the new maturity is also taken into account in the classification.

9. Financial instruments

A financial instrument is a transaction that results in the creation of a financial asset for one party and simultaneously in the creation of a financial liability or equity instrument for the other party. Accounts receivable and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument.

Financial assets are divided into the following three categories: (1) Financial assets measured at amortised cost (FA AC), (2) Financial assets measured at fair value through profit or loss (FA FVTPL), (3) Financial assets measured at fair value through other comprehensive income (FA FVTOCI). The classification depends on the company’s business model for managing financial assets and on the contractual cash flows. Management determines the classification upon initial recognition. Arbonia’s financial assets include cash and cash equivalents (category 1), trade accounts receivable (1), derivative financial assets (2), other assets (1), deferred expenses (1), other financial assets (1) and loans (2).

Purchases and sales constituting a financial asset are reported in the balance sheet as of the execution date and are eliminated when the right to receive payments has lapsed or been transferred and Arbonia has surrendered control of the same, i.e. when the related opportunities and risks have been transferred or expired.

Transaction costs directly attributable to the acquisition are also reported with respect to all financial assets not carried at fair value through profit or loss in subsequent periods.

The subsequent measurement of debt instruments depends on the classification: (1) Assets held to collect contractual cash flows, for which these cash flows represent exclusively interest and principal payments, are measured at amortised cost. (2) Assets that do not meet the criteria of category 1 or 3 are classified as at fair value through profit or loss. (3) Assets held to collect contractual cash flows and to sell financial assets, where the cash flows are exclusively interest and principal payments, are measured at fair value through equity. Subsequent measurement of the equity instruments held is at fair value.

There are no financial assets designated as at fair value through profit or loss (fair value option).

At each balance sheet date, financial assets (debt securities) that are not measured at fair value through profit or loss are assessed for expected credit losses. Indications that the creditworthiness of assets is impaired include financial difficulties, breaches of contract and possible bankruptcy of the contracting party. A default with respect to a financial asset exists if it appears unlikely that the contracting party will meet its contractual payments to the Group in full. If loans or receivables have been impaired, the company continues to enforce the receivable to recover it. Financial assets are written-off as soon as there is no reasonable expectation of recovery. Among the indicators that there is no reasonable expectation of recovery is the bankruptcy of the counterparty. Further information on the impairment of financial assets is provided in the accounting policies for the individual assets (in particular on accounts receivable and contract assets in note 13).

Financial liabilities are divided into the following two categories: (1) Financial liabilities measured at fair value through profit or loss (FL FVTPL), this category being further subdivided into financial liabilities classified as held for trading from the inception and those designated at fair value through profit or loss from the inception and (2) financial liabilities measured at amortised cost (FL AC). Arbonia’s financial liabilities comprise trade accounts payable (2), other liabilities (2), lease liabilities (2), accruals and deferred income (2), financial debts (2) and derivative financial liabilities (1).

Financial assets and financial liabilities are normally reported on a gross basis. They are only reported on a net basis if there is at presence a right of offset and an intent to settle on a net basis.

10. Derivative financial instruments

The Group uses derivative financial instruments to minimise interest rate and commodity price risks resulting from operational business and financial transactions. They are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value.

Arbonia does not apply hedge accounting in accordance with IFRS 9. Derivatives are measured at fair value through profit or loss and disclosed in the balance sheet as other current assets or other current liabilities.

11. Fair value estimation of financial instruments

The fair value of financial instruments traded in active markets (such as publicly traded derivatives and securities) is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets is the current bid price, for financial liabilities the current asking price.

The fair value of financial instruments that are not traded in an active market is determined by using appropriate valuation techniques, e.g. comparison with similar at arm’s length transactions, valuation using the discounted cash flow method or other established valuation methods.

Financial instruments measured at fair value are disclosed under the following hierarchy:

  • Level 1 – quoted prices in active markets for identical assets or liabilities.
  • Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly (derived from prices).
  • Level 3 – unobservable market data.

Due to its current nature, the nominal value less estimated allowance of accounts receivable is assumed to approximate their fair value. The nominal value of accounts payable is assumed to approximate their fair value. The fair value of financial liabilities disclosed in note 44 is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.

The fair value of financial debts is assigned to level 2 of the above mentioned hierarchy.

12. Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with post and banks, other short-term highly liquid investments with original maturities not exceeding three months. Cash and cash equivalents are subject to the impairment provisions of IFRS 9, but as the expected losses are completely insignificant, no impairment losses have been recognised.

13. Receivables and contract assets

Accounts receivable and other current assets are measured at amortised cost using the effective interest method, less provision for impairment. Accounts receivable and contract assets are regularly monitored and expected credit defaults assessed. The expected losses are estimated as part of the determination of specific allowances. The assessment is based both on historical experience and on current circumstances, as well as on forward-looking information. This includes an assessment of the expected business and economic conditions as well as the future financial performance of the contracting party. Collateral received is taken into account when calculating the provision for impairment. Impairment losses on receivables are recognised using an allowance account.

14. Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average cost method based on normal operating capacity. It excludes borrowing costs. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Claimed cash discounts are treated as a reduction of cost. Items with a low turnover rate are depreciated and obsolete items are fully written off.

15. Assets held for sale and associated liabilities

Non-current assets or a disposal group held for sale and liabilities associated with assets held for sale are classified as such if their carrying amount will be recovered principally through a sale transaction, not through continuing use. For this to be the case, the successful sale must be highly probable, an active search for a buyer is taking place and the asset must be available for immediate sale in its present condition. For the sale to be highly probable, management must be committed to a plan to sell the asset, the offer price of the asset is reasonable in relation to its current fair value and the sale is expected to be completed within one year. The assets are stated at the lower of carrying amount and fair value less costs to sell. Potential impairments are directly recorded within the income statement. Starting from the date of reclassification to this category, depreciation is ceased.

16. Discontinued operations

A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale and represents a separate major line of business or geographical area of operations. Such a component comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. The classification as discontinued operations occurs on the disposal of the operation or at an earlier point in time, provided the operation meets the criteria for the classification as held for sale. Discontinued operations are disclosed separately in the income statement and previous comparative periods are restated accordingly. However previous year’s balance sheet is not restated.

17. Property, plant and equipment

Land is stated at cost. Buildings, plant, machinery and other equipment are stated at cost less depreciation. Depreciation is calculated using the straight-line method based on estimated useful lives as stipulated under note 21.

Impairments (see also note 20) are separately disclosed under accumulated depreciation. Repair and maintenance costs are expensed.

18. Investment property

Investment property, principally comprising land and buildings, is held for long-term rental yields or appreciation and only an insignificant portion is used for operational purposes. Investment property is carried at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated using the straight-line method.

The fair value of investment property, which is required for disclosure purposes, is determined using the discounted cash flow method. Based on attainable net rental income (gross rental income minus operating costs and future refurbishment costs), the discounted cash flows are calculated for the next 10 years with a residual value for the time thereafter. The fair value of undeveloped land is determined by considering current local market conditions.

19. Intangible assets

Intangible assets include goodwill, which represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary including contingent liabilities at the date of acquisition. If in case of an acquisition Arbonia grants a put option to the non-controlling interests, this obligation is recognised at the present value of the exercise price. Goodwill is seen as an intangible asset with an indefinite useful life. Impairment on goodwill (see note 20) is separately disclosed under accumulated impairment losses.

Intangible assets comprise computer software and licenses at costs incurred. They are measured at cost less accumulated amortisation, calculated using the straight-line method based on estimated useful lives as stipulated under note 21.

Intangible assets acquired in a business combination (brands, patents, technologies, client relationships, distribution channels, etc.) are carried at fair value less accumulated amortisation, calculated using the straight-line method based on estimated useful lives as stipulated under note 21.

Expenses relating to research activities are directly charged to the income statement in the period in which they are incurred. Development costs are capitalised at acquisition cost or production cost and reported under intangible assets if all criteria under IAS 38 have been met on a cumulative basis, including evidence of technical and economic feasibility, evidence of expected future economic benefit and attributability of costs and their reliable valuation. They are amortised over the expected useful life on the basis specified in note 21. Development costs not meeting the criteria under IAS 38 are directly charged to the income statement in the period in which they are incurred.

20. Impairment of assets

The recoverability of property, plant and equipment, right-of-use assets, investment properties, goodwill and other intangible assets is reviewed whenever events or changes in circumstances indicate that the carrying amounts may be overstated. Intangible assets that have an indefinite useful life, such as goodwill, are tested annually for impairment. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of its fair value less costs to sell and its value in use. The value in use is based on discounted future cash flows. The applied discount rate is a pre-tax rate using the weighted average cost of capital (WACC) method. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units – CGU).

21. Estimated useful lives

Asset categories

main category

Useful lives(in years)

Office buildings

Land and buildings

35  60

Factory buildings

Land and buildings

25  40

Investment properties – buildings

Investment property - buildings

25  50

Production machinery

Plant and machinery

8  20

Transport and storage equipment

Plant and machinery

8  15

Tools and moulds

Plant and machinery

5

IT-hardware

Plant and machinery

up to 5

Vehicles

Other equipment

5  10

Office furniture and equipment

Other equipment

up to 5

Capitalised development costs

Other intangibleassets

up to 5

Other intangible assets (mainly IT-software)

Other intangibleassets

up to 5

Intangible assets from business combinations

– Customer relationships

Customerrelationships

7  20

– Brands, technologies

Brands, Technologies

10 – 20

– Distribution channels

Other intangibleassets from businesscombinations

10 – 20

– Order backlog

Other intangibleassets from businesscombinations

up to 2

Land is not systematically depreciated.

22. Provisions

Provisions are recognised only when Arbonia has a present legal or constructive obligation as a result of past events, the amount has been reliably estimated and it is more likely than not that an outflow of resources will be required to settle the obligation.

Provisions for restructuring are only recognised when costs for such a programme can be reliably estimated by virtue of a detailed formal plan and Arbonia has a legal or constructive obligation or has raised a valid expectation in those affected.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The increase in provision due to passage of time is recognised as interest expense.

23. Employee benefit obligations

Arbonia manages various pension plans within Switzerland and abroad. The plans are funded through payments to trustee-administered funds or insurance companies or are unfunded arrangements.

Based on their characteristics the pension plans qualify under IAS 19 as defined benefit plans. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

The liability recognised in the balance sheet to pay future retirement benefits is determined using the projected unit credit method, which is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. If the fair value of plan assets exceeds the present value of the defined benefit obligation, a pension surplus will only be recognised taking the asset ceiling into account. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality bonds. Actuarial valuations are carried out on a regular basis by independent actuaries. Components of defined benefit costs are service cost, net interest result and remeasurement of pension obligations. Service cost includes the increase in current service cost, past service cost (plan amendments or curtailments) and settlements and is reported under personnel expenses. The net interest result is calculated on the net amount of the defined benefit obligation and plan assets using the discount rate and is reported in the financial result. The remeasurement of pension benefit obligations include actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions and is recognised immediately in the statement of comprehensive income in other comprehensive income. Likewise, this position includes the return on plan assets and asset ceiling effects.

24. Financial debts

Current and non-current financial debts consist of promissory note loans, syndicated loans, bank loans and mortgages. Financial debts are initially recognised at fair value, net of transaction costs incurred. They are subsequently stated at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the financial debt, using the effective interest method.

25. Leases

An assessment is made at the beginning of the contract as to whether an agreement constitutes or contains a lease. A contract is or contains a lease if the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. Arbonia uses the optional exemption not to recognise short-term and low-value leases in the balance sheet, but to recognise the corresponding lease payments as an expense on a straight-line basis over the lease term.

The lease liability is initially measured at the present value of future lease payments during the non-cancellable period of the lease. Arbonia uses incremental borrowing rates as discount rates. On initial measurement, the right-of-use asset corresponds to the lease liability plus any dismantling costs, initial direct costs and advance payments. The right-of-use asset is depreciated on a straight-line basis over the shorter of the useful life and the lease term. If it is intended to exercise a purchase option at the end of the contract period, the asset is depreciated over its useful life. The right-of-use asset is subject to an impairment test if there are indications of impairment.

If the expected lease payments change, e.g. in the case of payments based on an index or due to new estimates regarding contractual options, the lease liability is remeasured. The remeasurement to the lease liability is generally recognised as an adjustment to the related right-of-use asset without affecting the income statement.

26. Deferred income tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates that have been enacted by the balance sheet date. Deferred income tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by Arbonia and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets including unused tax loss carryforwards are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

The book value of capitalised deferred income tax assets is assessed for impairment at each balance sheet date and a loss is recognised in case of insufficient future taxable profit.

27. Share based payment

Members of the Board of Directors and Group Manage- ment as well as certain employees participate in a share based payment plan. The fair value of the equity compensation instruments granted to employees is estimated at the grant date and recorded over the service period to the income statement as personnel expenses with a corresponding offsetting entry to equity.

28. Shareholders’ equity

The share premium relates to the Company going public back in 1988 and the capital increases in 2007, 2009, 2015, 2016 and 2017 reduced by previous distributions. Retained earnings include also remeasurements of employee benefit obligations.

Treasury shares are deducted from shareholders’ equity. The cost of these treasury shares and the consideration received from the sale of these instruments (net of transaction cost and taxes) are recorded directly in shareholders’ equity.

29. Income statement

Net revenue

The Heating, Ventilation and Air Conditioning Division (HVAC) generates its sales in the heating technology sector by selling individual product components as well as complete system solutions for residential, commercial and public construction. In the ventilation and air conditioning sector, the product portfolio includes fan coils, ceiling systems, air heaters and ventilation units, as well as systems for residential, commercial and industrial buildings. In addition, radiators, underfloor heating systems, heating walls and underfloor convectors are sold.

With its Wood Solutions Business Unit, the Doors Division generates its sales by selling interior and functional doors in a wide variety of designs and configurations. In the area of Glass Solutions, the division generates its sales through the sale of shower areas, shower enclosures and shower stalls for individual bathroom situations.

Contracts within the Division HVAC and the Business Unit Glass Solutions may include several different products which qualify as separate performance obligations. The performance obligation is generally fulfilled when the customer has received delivery. The individual products of a contract are delivered at the same time. It is therefore not necessary to allocate the transaction price to the individual performance obligations. At the time of delivery the invoice is issued and hence a recognition of a contract asset is not required. Revenue is therefore recognized at a point in time.

In the short-term series production (resale /  commercial business) of the Wood Solutions business, the transactions always consist of one single performance obligation. The performance obligation is fulfilled when the customer has received the delivery. As a result of that, an invoice is issued and hence recognition of a contract asset is not required.

The variable considerations can be reliably measured at the time the performance obligation is fulfilled and are taken into account as sales deductions. Payment periods customary in the industry are granted unless special payment periods have been agreed. There is therefore no financing component.

The Wood Solutions Business Unit and a minor part of the Division HVAC operate, in addition to the short-term series production, in the project business. The project business is characterised by long-term contracts which partially have a duration of over one year. The performance obligation in the project business is progressively satisfied over the period of the provided services (planning, production, assembly, acceptance) using the cost-to-cost method. Under the cost-to-cost method, the stage of completion is measured based on the ratio of costs incurred to date to the total budgeted costs. Revenue is recognised in proportion to the contract costs incurred. Therefore, revenue is recognised over the term of a contract. The allocation of the transaction price to separate performance obligations is not required because of the existence of only one performance obligation in the project business. Variable considerations such as discounts or construction rebates which can be measured reliably are deducted from the transaction price at the beginning of the contract term. In this way, these revenue reductions can be realised proportionally to the revenue recognition over the contract term. For reasons of materiality, it is not necessary to adjust the consideration for the time value of money or to measure non-cash consideration. If revenue is recognised as mentioned before, but the expected amount of consideration has not yet been invoiced, then a contract asset is recognised due to the conditional right to consideration. Accounts receivable from project business are recognised when the right to the consideration becomes unconditional. The right becomes unconditional when an acceptance protocol is signed and accordingly the invoice is issued to the customer. Payment periods customary in the industry are granted unless special payment periods have been agreed. The contract liability relates to contracts whose partial payments exceed the stage of completion or the revenue already recognised respectively, on a net contract-by-contract basis. Contract liabilities are recognised as revenue when the contractual performance obligation has been satisfied. Based on the analysed order durations, there are no significant financing components. The treatment of loss-making contracts occurs regardless of the stage of completion by recognising a provision amounting to the total contract loss resulting from the total budgeted costs not covered by the total amount of the transaction price.

Net revenues are reported net of sales or value-added taxes and are shown net of sales deductions.

If significant costs are incurred in the course of initiating or fulfilling a contract with a customer, these are capitalised.

The assessment of right of return, refund and similar obligations is not necessary as they do not constitute an integral part of Arbonia’s business.

Revenues from contracts with customers are broken down by category in the segment reporting. Segment reporting also shows a breakdown of revenues recognised at a point in time and satisfied over time.

Other operating income

Other operating income is recognised when the service has been rendered and comprises amongst others proceeds from the sale of scrap metal, service income, rental income, insurance benefits and gains on the sale of investment property and property, plant and equipment.

EBITDA

EBITDA shows earnings before financial results, tax, depreciation and amortisation on non-current assets.

EBITA

EBITA shows earnings before financial results, tax and amortisation of intangible assets from acquisitions.

EBIT

EBIT shows earnings before financial results and tax.

Financial income

Financial income comprises amongst others interest income, minority share from associated companies and gains from derivative financial instruments. Furthermore, cumulative gains of exchange differences resulting from the disposal or the liquidation of subsidiaries, transferred from equity, are also included. Interest income is recognised on a time-proportion basis using the effective interest method. Dividend income is recognised when the right to receive payment is established.

Financial expenses

Financial expenses primarily include interest expenses, minority share from associated companies, bank charges and foreign exchange losses. Furthermore, cumulative losses of exchange differences resulting from the disposal or the liquidation of subsidiaries, transferred from equity, are also included. Interest expenses are recognised using the effective interest method. Foreign exchange gains and losses are shown on a net basis.

30. Significant accounting judgments, estimates and assumptions

All estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Arbonia makes judgments, estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, not always equal the related actual results. The judgments, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Revenue recognition

In project business, sales are realised over a period of time. Arbonia determines the stage of completion by using the cost-to-cost method. In Arbonia’s opinion, this method best depicts the transfer of control of the products to the customer. Under the cost-to-cost method, the stage of completion is measured based on the ratio of costs incurred to date to the total budgeted costs. Changes due to post calculations and actively managed project controlling are taken into account when determining the stage of completion. Such changes in estimates are recognised prospectively. Revenue is recognised proportionally as costs are incurred. If the expected margin cannot be measured reliably, then revenue is recognised only in the amount of costs incurred.

Inventory provision

In order to determine the adequacy of the inventory provision, factors such as expected sales prices, inventory turnover and coverage days of inventory are considered. As of 31 December 2022, the carrying amount of inventory was at CHF 226.9 million. Therein a provision for inventories of CHF 19.7 million is included. A falling market demand or falling sales prices could lead to additional provisions needed. For further information on the inventory provision, see note 34.

Useful lives for property, plant and equipment

Arbonia has a significant amount of its assets invested in property, plant and equipment. As of 31 December 2022, the carrying amount of property, plant and equipment totalled CHF 675.0 million. At the time of the purchase useful lives for such assets are based on estimates, as technical obsolescence or competition could lead to shorter useful lives than initially anticipated. Therefore the determination of useful lives is based on stringent standards and thereafter continuously reviewed and if necessary adjusted. A change in estimate could impact the level of future depreciation charges. For further information on property, plant and equipment, see note 37.

Estimated impairment of goodwill

As of 31 December 2022, the carrying amount of goodwill was at CHF 182.4 million. Arbonia tests at least annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 20. The recoverable amounts of cash-generating units have been determined based on value in use calculations. These calculations require the use of estimates such as expected future cash flows, margins, discount rates and growth rates. These estimates could change or differ from the actual outcome and therefore lead to additional impairments. For further information on goodwill, see note 40.

Intangible assets acquired in a business

combination

Brands, technologies, client relationships and distribution channels are amortised over their estimated useful lives. At initial recognition, assumptions and estimates must be made about the expected cash flows such as sales prices, margins, discount rates, attrition rates of clients and technological development which of course are exposed to some uncertainties. As of 31 December 2022, the carrying amount of intangible assets acquired in a business combination amounted to CHF 155.7 million. For further information on such acquired intangible assets, see note 40.

Provisions

Provisions are recognised based on the criteria as set out under note 22. As of 31 December 2022, the carrying amount of the provisions totalled CHF 22.8 million. In estimating the amount of provision, assumptions are used and depending on the outcome of the various business transactions, the actual cash outflow and its timing could significantly differ from the booked provision. For further information on provisions, see note 45.

Employee benefit obligations

Employee benefit obligations for defined benefit plans are based on actuarial valuations, which use statistical calculations and actuarial assumptions (see note 23). Such assumptions include amongst others future salary and pension increases, probable turnover rates as well as life expectancy of plan participants. The assumptions underlying these calculations are dependent on a number of prospective factors, therefore actual results could significantly differ from the original valuations and as a consequence impact the carrying amount of capitalised pension surplus and employee benefit obligation. As of 31 December 2022, the underfunding amounted to CHF 37.4 million, thereof CHF 4.9  million recorded in the balance sheet as capitalised pension surplus and CHF 42.3 million as employee benefit obligation. For further information on employee benefit obligation, see note 47.

Income taxes

Arbonia is subject to income taxes in numerous jurisdictions. Significant judgment is required in determining the worldwide liability for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. Arbonia recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will become due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax in the period in which such determination is made. Deferred tax assets, including those on tax loss carryforwards and expected tax credits, are only recognised if it is probable that they can be used by future taxable profits. The assessment of the recoverability of those deferred tax assets is therefore based on estimates, which could differ from actual results and consequently lead to valuation allowances. As of 31 December 2022, the carrying amount of deferred tax assets before offsetting totalled CHF 22.6 million. For further information on income taxes, see notes 46 and 52.

C Explanation to certain positions of the consolidated financial statements

31. Segment information

Arbonia is organised into the divisions or segments HVAC (Heating, Ventilation and Air Conditioning) and Doors. Corporate Services which mainly include service, finance, real estate and investment companies, provides their services almost entirely to Group companies. They have not been allocated to an operating segment and are therefore shown separately.

For the monitoring and assessment of the financial performance, EBITDA, EBITA and EBIT are pivotal key measures. However, Group Management and the Board of Directors also are provided with financial data down to the line item "result after income tax" by operating segment. The segments apply the same accounting policies as the Group. Purchases, sales and services between segments are entered into under normal commercial terms and conditions that would also be available to unrelated third parties. Income and expenses between segments are eliminated on consolidation and disclosed in "Eliminations".

Segment assets and liabilities include all assets, liabilities and intercompany transactions. Goodwill has been allocated to the respective segments.

HVAC Division

The Heating, Ventilation and Air Conditioning Division is a leading and highly integrated provider to the industry. Under the main brands – Kermi, Arbonia, Prolux, Sabiana, Vasco, Superia and Brugman – it sells its wide product range across Europe. Production takes place in Germany, the Czech Republic, Italy, Belgium, Poland, Russia and Serbia. In addition a large number of sales locations in Europe and a world-wide network of exclusive distribution partners ensure customer proximity.

Doors Division

With its Wood Solutions Business Unit and the associated companies Prüm, Garant, Invado and RWD Schlatter, the Doors Division is one of Europe’s leading suppliers of interior doors and wood frames. In its domestic markets, the business unit offers its customers a comprehensive product range from standard doors to complex functional doors. With the Glass Solutions Business Unit and the well-known brands Kermi, Koralle and Baduscho, the Doors Division is also the European market leader with shower solutions for all generations and lifestyles. The Doors Division has eight production sites: five are located in Germany, two in Switzerland and one in Poland.

Corporate Services

Corporate Services mainly consists of service, finance, real estate and investment companies. These companies provide their services across divisions and almost entirely to Group companies.

in 1 000 CHF

2022

HVAC

Doors

Total reportable segments

Corporate Services

Elimina- tions

Total Group

Sales with third parties at point in time

636 650

483 442

1 120 092

3 219

 

1 123 311

Sales with third parties over time

9 541

69 245

78 786

 

 

78 786

Sales with other segments

 

51

51

 

– 51

 

Net revenues

646 191

552 738

1 198 929

3 219

– 51

1 202 097

Segment results I (EBITDA)

58 569

59 217

117 786

– 9 488

5

108 303

in % of net revenues

9.1

10.7

9.8

9.0

Depreciation and amortisation

– 29 439

– 23 551

– 52 990

– 2 079

 

– 55 069

Impairment right-of-use assets

 

– 262

– 262

 

 

– 262

Segment results II (EBITA)

29 130

35 404

64 534

– 11 567

5

52 972

in % of net revenues

4.5

6.4

5.4

4.4

Amortisation of intangible assets from acquisitions

– 4 538

– 11 420

– 15 958

 

 

– 15 958

Segment results III (EBIT)

24 592

23 984

48 576

– 11 567

5

37 014

in % of net revenues

3.8

4.3

4.1

3.1

Interest income

675

134

809

9 667

– 10 075

401

Interest expenses

– 6 751

– 4 521

– 11 272

– 2 978

10 089

– 4 161

Minority share from associated companies

 

1 263

1 263

 

 

1 263

Other financial result

– 2 467

– 3 235

– 5 703

15 250

– 14 246

– 4 699

Result before income tax

16 048

17 625

33 674

10 372

– 14 227

29 818

Income tax expense

– 4 463

– 3 757

– 8 220

– 926

 

– 9 146

Result after income tax

11 585

13 868

25 454

9 446

– 14 227

20 672

Average number of employees

3 239

3 176

6 415

117

6 532

Total assets

704 699

795 510

1 500 209

1 116 381

– 1 097 078

1 519 512

thereof associated companies

10 457

10 457

10 457

Total liabilities

441 430

455 184

896 614

253 775

– 618 419

531 970

Purchases of property, plant and equipment, right-of-use assets, investment properties and intangible assets

52 774

104 073

156 847

30 115

 

186 962

in 1 000 CHF

2021

HVAC

Doors

Total reportable segments

Corporate Services

Elimina- tions

Total Group

Sales with third parties at point in time

626 067

484 821

1 110 888

3 836

 

1 114 724

Sales with third parties over time

4 481

66 972

71 453

 

 

71 453

Net revenues

630 548

551 793

1 182 341

3 836

 

1 186 177

Segment results I (EBITDA)

61 916

76 191

138 107

– 13 419

10

124 698

in % of net revenues

9.8

13.8

11.7

10.5

Depreciation and amortisation

– 27 573

– 21 708

– 49 281

– 1 982

 

– 51 263

Impairment property, plant and equipment /  intangible assets

– 4 413

 

– 4 413

 

 

– 4 413

Segment results II (EBITA)

29 930

54 483

84 413

– 15 401

10

69 022

in % of net revenues

4.7

9.9

7.1

5.8

Amortisation of intangible assets from acquisitions

– 4 392

– 11 322

– 15 715

 

 

– 15 715

Segment results III (EBIT)

25 538

43 161

68 698

– 15 401

10

53 308

in % of net revenues

4.1

7.8

5.8

4.5

Interest income

229

86

315

5 055

– 5 331

39

Interest expenses

– 4 229

– 2 575

– 6 804

– 4 005

5 332

– 5 477

Minority share from associated companies

 

– 1 060

– 1 060

 

 

– 1 060

Other financial result

– 2 875

– 2 888

– 5 764

13 804

– 10 926

– 2 886

Result before income tax

18 663

36 723

55 386

– 547

– 10 915

43 924

Income tax expense

– 8 520

– 7 921

– 16 441

57

 

– 16 384

Result after income tax

10 143

28 802

38 945

– 490

– 10 915

27 540

Average number of employees

3 076

2 977

6 052

125

6 177

Total assets

651 734

722 865

1 374 599

1 118 755

– 870 058

1 623 296

thereof associated companies

7 276

7 276

7 276

Total liabilities

376 241

369 991

746 232

228 854

– 396 132

578 954

Purchases of property, plant and equipment, right-of-use assets, investment properties and intangible assets

53 889

106 553

160 442

931

 

161 373

The impairment recognised in the previous year in the HVAC Division is mainly related to machinery in connection with the relocation and closure of a production site in the Netherlands.

Information about geographical areas

in 1 000 CHF

2022

Switzerland

Germany

Other Countries

Total

Net revenues

168 466

592 817

440 814

1 202 097

Property, plant and equipment, right-of-use assets, investment properties, intangible assets and goodwill

114 909

619 635

342 046

1 076 590

in 1 000 CHF

2021

Switzerland

Germany

Other Countries

Total

Net revenues

162 710

591 001

432 466

1 186 177

Property, plant and equipment, right-of-use assets, investment properties, intangible assets and goodwill

101 807

551 501

322 587

975 894

Major customers

Arbonia has no customer who generates more than 10% of the Group’s net revenues (see also paragraph credit default risk in note 53).

32. Cash and cash equivalents

Cash and cash equivalents are denominated in the following currencies:

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

CHF

1 382

196 408

EUR

18 638

47 709

PLN

751

3 423

CZK

1 971

1 707

RUB

3 502

1 499

Other currencies

2 952

3 124

Total

29 196

253 870

33. Accounts receivable / contract balances

Accounts receivable

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Accounts receivable

 117 773 

 115 610 

Allowance for accounts receivable

 – 8 214 

 – 9 181 

Total

 109 559 

 106 429 

thereof accounts receivable project business

 9 920 

 8 201 

The allowance for accounts receivable includes expected credit losses and cash discounts.

The ageing analysis is as follows:

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Not yet due

 96 423 

 95 200 

Overdue up to 30 days

 7 246 

 6 874 

Overdue more than 30, less than 60 days

 2 811 

 2 389 

Overdue more than 60, less than 90 days

 1 797 

 542 

Overdue more than 90, less than 180 days

 1 003 

 1 178 

Overdue more than 180, less than 360 days

 306 

 366 

Overdue more than 360 days

 – 27 

 – 120 

Total accounts receivable, net

 109 559 

 106 429 

Outstanding accounts receivable amounting to CHF 74.5 million (2021: CHF 62.4 million) were secured and mainly consist of credit insurances. No allowances are made on the secured receivables.

The expected credit losses on accounts receivable developed as follows:

in 1 000 CHF

2022

2021

Balance at 01 / 01

 – 4 206 

 – 6 816 

Foreign exchange differences

 84 

 35 

Changes in scope of consolidation

 – 175 

 – 199 

Additional allowances

 – 323 

 – 353 

Used during year

 474 

 2 789 

Unused amounts reversed

 253 

 338 

Balance at 31 / 12

 – 3 892 

 – 4 206 

Contract balance

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Contract assets project business

 18 822 

 13 527 

Total contract assets

 18 822 

 13 527 

Contract liabilities project business

 6 592 

 5 317 

Other advance payments by customers

 3 207 

 3 442 

Total contract liabilities

 9 799 

 8 759 

The contract balances project business result from Arbonia’s longer-term contracts. Revenues recognised over the term of a contract are shown as contract assets. Contract assets are presented on a net contract-by-contract basis, e.g. less the received partial payments. As soon as the acceptance protocol is signed, the final invoice is issued and the items are transferred to accounts receivable. The movement in the contract assets is as follows:

in 1 000 CHF

2022

2021

Balance at 01 / 01

 13 527 

 11 574 

Foreign exchange differences

 – 45 

 – 51 

Reclassification of contract assets existing at the beginning of the period to accounts receivable

 – 10 424 

 – 9 224 

Revenue recognition on projects in progress as of the balance sheet date based on percentage of completion

 36 757 

 29 178 

Offset against contract liabilities due to partial payments received

 – 20 993 

 – 17 950 

Balance at 31 / 12

 18 822 

 13 527 

The contract liabilities project business relate to contracts whose partial payments exceed the stage of completion. Contract liabilities are recognised as revenue when the contractual performance obligation has been satisfied. The movement in the contract liabilities project business is as follows:

in 1 000 CHF

2022

2021

Balance at 01 / 01

 5 317 

 1 218 

Foreign exchange differences

 – 143 

 – 100 

Revenue recognised from amounts included in the contract liabilities at the beginning of the period

 – 623 

 – 654 

Partial payments received for projects in progress at the balance sheet date

 23 034 

 22 803 

Offset against contract assets

 – 20 993 

 – 17 950 

Balance at 31 / 12

 6 592 

 5 317 

In 2022, there were no known default risks and therefore no need for specific allowances on contract assets. The expected credit losses are estimated to be insignificant and therefore no allowance was made.

There have been no general changes in the timeframe until an enforceable right for consideration or a performance obligation is fulfilled.

The expected revenues to be recognised on the current order backlog are as follows:

in 1 000 CHF

within 1 year

in 1-2 years

after 2 years

Revenues expected to be recognised on uncompleted order backlog as at 31 / 12 / 2022

 62 799 

 16 401 

 576 

Revenues expected to be recognised on uncompleted order backlog as at 31 / 12 / 2021

 40 367 

 7 434 

 1 505 

These amounts only include contracts of project business with an expected original duration of more than one year.

34. Inventories

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Raw material and supplies

119 601

95 315

Semi-finished and finished goods

96 132

77 030

Goods purchased for resale

10 787

10 125

Prepayments

401

314

Total

226 921

182 784

A provision of CHF 19.7 million (2021: CHF 20.2 million) has been provided for obsolete and slow-moving items and is deducted from inventories. 2022 and 2021, there are no material inventories written down to the net realisable value and no material write-downs to net realisable value were recorded.

35. Financial assets

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Investments in associated companies > 20 % < 50 %

10 457

7 276

Other financial assets

424

339

Loans

40

58

Total

10 921

7 673

thereof disclosed as current assets

12

15

In October 2022, Arbonia further increased its shares in the German KIWI-KI GmbH, DE-Berlin, and now holds 34.0% of the company. The purchase price amounted to CHF 2.3 million. In the cash flow statement, the cash outflow is included in the position issuance of financial assets.

In July 2021, Arbonia had acquired shares in the German KIWI-KI GmbH, DE-Berlin, for the equivalent of CHF 0.5 milion and held 24.9% of the company as at 31 December 2021.

Associated companies

in 1 000 CHF

2022

2021

Balance at 01 / 01

7 276

8 194

Foreign exchange differences

– 374

– 308

Increase of investment

2 292

450

Minority share from associated companies

1 263

– 1 060

Balance at 31 / 12

10 457

7 276

Subsequently, the financial information of the associated company is disclosed in condensed form.

Associated companies – Balance sheet

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Current assets

8 348

1 751

Non-current assets

1 454

1 443

Total assets

9 802

3 194

Current liabilities

952

526

Non-current liabilities

447

Shareholders’ equity

8 850

2 221

Total liabilities and shareholders’ equity

9 802

3 194

Associated companies - Income statement

in 1 000 CHF

2022

2021

Net revenues

9 205

2 368

Results after taxes

3 730

– 3 938

Business transactions with associated companies

in 1 000 CHF

2022

2021

Purchase of goods and services

1

4

36. Non-current assets held for sale and discontinued operations

Sold operations 2021

Disposal of windows business

On 4 January 2021, a contract was signed between Arbonia and the Danish DOVISTA Group for the sale of the windows business. The closing of the transaction took place on 31 August 2021.

in 1 000 CHF

31 / 08 / 2021

Assets

Cash and cash equivalents

12 741

Receivables and other assets

39 489

Inventories and contract assets

62 053

Deferred expenses

4 568

Property, plant and equipment and right-of-use assets

129 217

Intangible assets and goodwill

34 911

Deferred income tax assets

351

Capitalised pension surplus

41 295

Financial assets

29

Total assets

324 654

Liabilities

Liabilities

46 889

Financial debts and lease liabilities

17 424

Accruals and deferred income

28 074

Provisions

4 763

Deferred income tax liabilities

11 323

Total liabilities

108 473

Net assets

216 181

Cash and cash equivalents disposed

– 12 741

Net assets excluding cash and cash equivalents

203 440

Gain on disposal

130 625

Net cash inflow from disposal

334 065

The sale of the windows business on 31 August 2021 resulted in a disposal gain of CHF 130.6 million. From the sale of this business unit, accumulated currency translation differences in the amount of CHF 31.5 million resulted, which have been transferred from equity to the income statement and debited to the financial result from discontinued operations. The resulting net amount of CHF 99.1 million was eliminated in the cash flow statement under the item profit / loss on disposal of non-current assets / subsidiaries.

Result from discontinued operations

in 1 000 CHF

01 / 01 – 31 / 08 / 2021

Net revenues

237 190

Other operating income and capitalised own services

7 979

Changes in inventories of semi-finished and finished goods

6 513

Cost of material and goods

– 113 715

Personnel expenses

– 82 624

Other operating expenses

– 35 846

EBITDA

19 497

EBIT

19 497

Financial result

– 31 978

Result from discontinued operations before income tax

– 12 481

Income tax expense

– 6 954

Result from discontinued operations

– 19 435

Gain on disposal of discontinued operations

130 625

Net result from discontinued operations

111 190

The results for the reporting period 2021 comprised sales costs for the disposal of the business unit windows of CHF 3.9 million which were included in other operating expenses.

In 2022, costs of CHF 2.5 million still incurred for the sale of the windows business and provisions of CHF 1.0 million built for the sale were not used and could be released over the income statement.

In the consolidated cash flow statement 2021, the cash flows from the discontinued operations are included, however, subsequently condensed and shown separately below. Neither the cash inflows nor the sales costs from the divested business are included in the below table.

Cash flow from discontinued operations

in 1 000 CHF

01 / 01 – 31 / 08 / 2021

Cash flows from operating activities

8 460

Cash flows from investing activities

– 6 197

Cash flows from financing activities

– 3 138

In 2021, an investment property in Germany was sold. The cash inflow of CHF 2.2 million had been included in the consolidated statement of cash flows under proceeds from sale of investment properties.

37. Property, plant and equipment

in 1 000 CHF

Land and buildings

Plant and machinery

Other equipment

Prepayments and assets under construction

Total

Net book value at 01 / 01 / 2021

 212 743 

 181 431 

 11 225 

 86 038 

 491 437 

Cost

Balance at 01 / 01 / 2021

 320 953 

 377 748 

 42 446 

 91 784 

 832 931 

Foreign exchange differences

 – 9 853 

 – 10 054 

 – 970 

 – 4 673 

 – 25 550 

Change in scope of consolidation

 10 376 

 7 237 

 1 167 

 

 18 780 

Additions

 32 485 

 11 218 

 4 891 

 90 879 

 139 473 

Disposals

 – 377 

 – 11 023 

 – 2 494 

 – 430 

 – 14 324 

Reclassification to /  from assets held for sale

 3 096 

 501 

 77 

 7 

 3 680 

Reclassifications

 4 992 

 33 332 

 1 075 

 – 40 798 

 – 1 399 

Balance at 31 / 12 / 2021

 361 672 

 408 959 

 46 192 

 136 769 

 953 591 

Foreign exchange differences

 – 12 461 

 – 14 709 

 – 1 487 

 – 5 094 

 – 33 751 

Change in scope of consolidation

 2 593 

 1 982 

 255 

 

 4 830 

Additions

 38 442 

 15 338 

 6 477 

 97 728 

 157 985 

Disposals

 – 1 617 

 – 15 282 

 – 3 015 

 – 22 

 – 19 936 

Reclassifications

 4 125 

 45 187 

 1 281 

 – 62 734 

 – 12 141 

Balance at 31 / 12 / 2022

 392 754 

 441 475 

 49 703 

 166 647 

 1 050 578 

in 1 000 CHF

Land and buildings

Plant and machinery

Other equipment

Prepayments and assets under construction

Total

Accumulated depreciation

Balance at 01 / 01 / 2021

 108 210 

 196 317 

 31 221 

 5 746 

 341 494 

Foreign exchange differences

 – 2 997 

 – 4 296 

 – 575 

 181 

 – 7 687 

Depreciation

 9 105 

 25 031 

 3 605 

 

 37 741 

Impairment

 

 4 179 

 

 

 4 179 

Disposals

 – 359 

 – 10 915 

 – 2 407 

 

 – 13 681 

Reclassification to /  from assets held for sale

 388 

 426 

 62 

 

 876 

Reclassifications

 – 12 

 – 285 

 180 

 433 

 316 

Balance at 31 / 12 / 2021

 114 335 

 210 457 

 32 086 

 6 360 

 363 238 

Foreign exchange differences

 – 4 098 

 – 7 527 

 – 990 

 949 

 – 11 666 

Depreciation

 10 386 

 28 131 

 4 500 

 

 43 017 

Disposals

 – 1 223 

 – 15 162 

 – 2 877 

 

 – 19 262 

Reclassifications

 – 63 

 7 356 

 70 

 – 7 133 

 230 

Balance at 31 / 12 / 2022

 119 337 

 223 255 

 32 789 

 176 

 375 557 

Net book value at 31 / 12 / 2021

 247 336 

 198 502 

 14 106 

 130 409 

 590 353 

Net book value at 31 / 12 / 2022

 273 416 

 218 220 

 16 914 

 166 471 

 675 021 

No borrowing costs were capitalised in 2022. In 2021, borrowing costs of CHF 0.1 million were included in assets under construction.

Capital commitments

As of the balance sheet date, Arbonia had entered into the following capital commitments for the purchase of property, plant and equipment and intangible assets:

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Property, plant and equipment

51 976

59 247

Intangible assets

124

136

Total

52 100

59 383

Land and buildings amounting to CHF 39.6 million (2021: CHF 48.7 million) are pledged to secure mortgages.

38. Leasing

Arbonia leases various assets, including buildings, machinery, vehicles, tools and IT equipment. The lease conditions are negotiated individually and contain a variety of different conditions. The rights-of-use assets in connection with these leases are as follows:

in 1 000 CHF

Right-of-use buildings

Right-of-use plant and machinery

Right-of-use other equipment

Total

Net book value at 01 / 01 / 2021

 44 203 

 4 318 

 7 936 

 56 457 

Cost

Balance at 01 / 01 / 2021

 57 784 

 6 095 

 14 748 

 78 627 

Foreign exchange differences

 – 608 

 – 243 

 – 461 

 – 1 312 

Change in scope of consolidation

 446 

 

 122 

 568 

Additions

 6 838 

 939 

 2 748 

 10 525 

Disposals and remeasurements

 – 18 748 

 31 

 – 2 246 

 – 20 963 

Reclassification to /  from assets held for sale

 

 

 64 

 64 

Reclassifications

 69 

 – 313 

 – 290 

 – 534 

Balance at 31 / 12 / 2021

 45 781 

 6 509 

 14 685 

 66 975 

Foreign exchange differences

 – 909 

 – 247 

 – 561 

 – 1 717 

Change in scope of consolidation

 1 922 

 

 12 

 1 934 

Additions

 9 307 

 409 

 2 803 

 12 519 

Disposals and remeasurements

 – 31 927 

 – 503 

 – 2 909 

 – 35 339 

Reclassifications

 – 10 

 – 749 

 – 149 

 – 908 

Balance at 31 / 12 / 2022

 24 164 

 5 419 

 13 881 

 43 464 

in 1 000 CHF

Right-of-use buildings

Right-of-use plant and machinery

Right-of-use other equipment

Total

Accumulated depreciation

Balance at 01 / 01 / 2021

 13 581 

 1 777 

 6 812 

 22 170 

Foreign exchange differences

 – 163 

 – 87 

 – 239 

 – 489 

Depreciation

 4 934 

 887 

 3 847 

 9 668 

Disposals

 – 6 438 

 – 2 

 – 2 178 

 – 8 618 

Reclassification to /  from assets held for sale

 

 

 29 

 29 

Reclassifications

 

 – 156 

 – 175 

 – 331 

Balance at 31 / 12 / 2021

 11 914 

 2 419 

 8 096 

 22 429 

Foreign exchange differences

 – 299 

 – 98 

 – 299 

 – 696 

Depreciation

 3 889 

 737 

 3 335 

 7 961 

Impairment

 262 

 

 

 262 

Disposals

 – 6 899 

 – 485 

 – 2 836 

 – 10 220 

Reclassifications

 

 – 208 

 – 70 

 – 278 

Balance at 31 / 12 / 2022

 8 867 

 2 365 

 8 226 

 19 458 

Net book value at 31 / 12 / 2021

 33 867 

 4 090 

 6 589 

 44 546 

Net book value at 31 / 12 / 2022

 15 297 

 3 054 

 5 655 

 24 006 

The disposals in the right-of-use buildings include the Corporate Center in CH-Arbon for CHF 21.5 million. In the 2nd quarter of 2022, Arbonia repurchased the Corporate Center prematurely for CHF 25.1 million and thus also early terminated the lease agreement. The lease agreement had an original term until 31 August 2027. The lease liability and the purchase price obligation recognised in other non-current liabilities were derecognised against the right-of-use asset.

The disposals in the right-of-use buildings in 2021 included Arbonia’s largest rental agreement, which concerned the rental of a production and office building in Germany for the Doors Division. In 2021, this property was purchased and the lease agreement with an original lease term until 31 May 2027 was early terminated.

Other operating expenses include the following expenses in connection with leases:

in 1 000 CHF

2022

2021

Expenses relating to short-term leases

2 636

2 348

Expenses relating to leases of low-value assets (excluding short-term leases)

907

512

Expenses for variable lease payments

943

617

Total

4 486

3 477

Total cash outflows for leases amounted to CHF 13.2 million in 2022 (2021: CHF 14.9 million).

Some of Arbonia’s rental leases include renewal options. The determination of the lease term of these leases requires judgement. The assessment of whether it is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognised. In its assessment, Arbonia considers the facts and circumstances that create an economic incentive to exercise such options. The assessment is reviewed if a significant event or a significant change in circumstances occurs. As of 31 December 2022, possible future cash outflows of CHF 0.9 million (2021: CHF 1.1 million) were not included in the lease liability as it is not reasonably certain that the lease agreements will be renewed.

39. Investment property

in 1 000 CHF

Investment property – land

Investment property – buildings

Total

Net book value at 01 / 01 / 2021

 1 104 

 192 

 1 296 

Cost

Balance at 01 / 01 / 2021

 1 603 

 24 728 

 26 331 

Balance at 31 / 12 / 2021

 1 603 

 24 728 

 26 331 

Foreign exchange differences

 – 66 

 – 4 

 – 70 

Additions

 

 3 296 

 3 296 

Reclassifications

 4 250 

 236 

 4 486 

Balance at 31 / 12 / 2022

 5 787 

 28 256 

 34 043 

Accumulated depreciation

Balance at 01 / 01 / 2021

 499 

 24 536 

 25 035 

Depreciation

 

 44 

 44 

Balance at 31 / 12 / 2021

 499 

 24 580 

 25 079 

Foreign exchange differences

 – 1 

 

 – 1 

Depreciation

 

 38 

 38 

Reclassifications

 38 

 25 

 63 

Balance at 31 / 12 / 2022

 536 

 24 643 

 25 179 

Net book value at 31 / 12 / 2021

 1 104 

 148 

 1 252 

Net book value at 31 / 12 / 2022

 5 251 

 3 613 

 8 864 

Fair values of investment properties at 31 / 12 / 2021

 8 705 

Fair values of investment properties at 31 / 12 / 2022

 16 994 

Rental income from investment properties amounted to CHF 0.7 million (2021: CHF 1.3 million) and is included in other operating income. Related direct operating expenses were CHF 0.3 million (2021: CHF 0.2 million) and are included in other operating expenses. The fair values of investment properties are, in the hierarchy according to IFRS 13, assigned to level 3 for non-observable market data, since they are calculated on the basis of estimates that have been determined by independent external valuers and internal assessments.

40. Intangible assets

in 1 000 CHF

Brands

Customer relationships

Technologies

Other intangible assets from business combinations

Other intangible assets

Total

Goodwill

Net book value at 01 / 01 / 2021

 58 452 

 79 174 

 13 350 

 81 

 12 435 

 163 492 

 177 598 

Cost

Balance at 01 / 01 / 2021

 84 007 

 120 010 

 20 126 

 4 506 

 29 235 

 257 884 

 208 099 

Foreign exchange differences

 – 3 371 

 – 4 725 

 – 798 

 – 65 

 – 809 

 – 9 768 

 – 6 984 

Change in scope of consolidation

 5 951 

 12 466 

 

 

 212 

 18 629 

 8 007 

Additions

 

 

 

 

 3 366 

 3 366 

Disposals

 

 

 

 

 – 2 502 

 – 2 502 

 – 1 500 

Reclassifications

 

 

 

 

 1 845 

 1 845 

 

Balance at 31 / 12 / 2021

 86 587 

 127 751 

 19 328 

 4 441 

 31 347 

 269 454 

 207 622 

Foreign exchange differences

 – 3 733 

 – 5 155 

 – 926 

 – 89 

 – 1 204 

 – 11 107 

 – 7 973 

Change in scope of consolidation

 5 638 

 19 426 

 4 800 

 653 

 28 

 30 545 

 11 747 

Additions

 

 

 

 

 13 161 

 13 161 

Disposals

 

 

 

 

 – 915 

 – 915 

 

Reclassifications

 

 

 

 

 8 607 

 8 607 

 

Balance at 31 / 12 / 2022

 88 492 

 142 022 

 23 202 

 5 005 

 51 024 

 309 745 

 211 396 

Accumulated amortisation

Balance at 01 / 01 / 2021

 25 555 

 40 836 

 6 776 

 4 425 

 16 800 

 94 392 

 30 501 

Foreign exchange differences

 – 1 103 

 – 1 362 

 – 302 

 – 66 

 – 442 

 – 3 275 

 

Amortisation

 6 608 

 8 007 

 1 072 

 28 

 3 809 

 19 524 

 

Impairment

 234 

 234 

 

Disposals

 

 

 

 

 – 2 502 

 – 2 502 

 – 1 500 

Reclassifications

 

 

 

 

 – 41 

 – 41 

 

Balance at 31 / 12 / 2021

 31 060 

 47 481 

 7 546 

 4 387 

 17 858 

 108 332 

 29 001 

Foreign exchange differences

 – 1 313 

 – 1 701 

 – 352 

 – 85 

 – 538 

 – 3 989 

 

Amortisation

 5 608 

 8 796 

 1 200 

 355 

 4 054 

 20 013 

 

Disposals

 

 

 

 

 – 915 

 – 915 

 

Balance at 31 / 12 / 2022

 35 355 

 54 576 

 8 394 

 4 657 

 20 459 

 123 441 

 29 001 

Net book value at 31 / 12 / 2021

 55 527 

 80 270 

 11 782 

 54 

 13 489 

 161 122 

 178 621 

Net book value at 31 / 12 / 2022

 53 137 

 87 446 

 14 808 

 348 

 30 565 

 186 304 

 182 395 

Expenses for research and development in the amount of CHF 12.7 million (2021: CHF 15.6 million) have been charged to the income statement, since they did not fulfil the capitalisation criteria. The additions to intangible assets consist of CHF 3.3 million (2021: CHF 0.3 million) of own development costs and CHF 9.9 million (2021: CHF 3.1 million) of purchased or acquired items. Of the additions to other intangible assets, CHF 6.2 million relate to implementation costs in connection with the introduction of SAP S / 4HANA in the Doors Division.

Goodwill

As of 31 December 2022 goodwill from business combinations is allocated to the Group’s five cash-generating units (CGUs) Termovent, Sabiana, Joro Doors, Wood Solutions and Glass Solutions. The movements of the carrying amounts of goodwill during the reporting period were as follows:

in 1 000 CHF

Termovent

Sabiana

Joro Doors

Wood Solutions

Glass Solutions

Total

Balance at 31 / 12 / 2021

7 631

22 641

133 702

14 647

178 621

Acquisition

11 747

11 747

Foreign exchange differences

– 360

– 1 037

– 132

– 6 444

– 7 973

Balance at 31 / 12 / 2022

7 271

21 604

11 615

127 258

14 647

182 395

Goodwill impairment tests 2022

The recoverability of goodwill is assessed annually towards year-end or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of its value in use and its fair value less costs to sell.

The recoverable amount of the CGUs was determined based on value in use calculations. These calculations used cash flow projections covering a five-year period. Cash flows beyond the five-year period were extrapolated using estimated growth rates. The underlying financial data consisting of one budget year and four plan years form part of the Group’s medium term plan approved by the Board of Directors in autumn 2022 and were used for the impairment tests.

The value in use calculation for the annual 2022 impairment tests assumed the following key assumptions:

in %

Termovent

Sabiana

Joro Doors

Wood Solutions

Glass Solutions

Budgeted gross margin

40.4

40.6

72.0

54.5

67.7

Eternal growth rate

2.5

1.8

2.5

2.1

2.0

Discount rate

11.4

12.0

11.2

10.8

10.3

Budgeted gross margins are based on expectations for the market development and initiated optimisation measures. The eternal growth rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risks relating to the relevant CGUs.

Based on a reasonably possible change in the key assumptions, sensitivity analyses were calculated in 2022 on higher discount rates, lower than actually expected EBITDAs, lower gross margins and lower eternal growth rates which only led to a possible impairment at the CGU Wood Solutions.

A reduction in the budgeted gross margin from 54.5% to 52.5% would result in an impairment of the CGU Wood Solutions amounting to CHF 64.8 million. At a budgeted gross margin of 53.6%, the calculated value would be equal to its carrying amount. A 10% reduction in EBITDA and a simultaneous reduction of eternal growth from 2.1% to 1.6% would lead to an impairment of CHF 51.8 million. At a reduction of 5.1% in EBITDA and a simultaneous reduction of eternal growth to 1.9%, the calculated value would be equal to its carrying amount.

Goodwill impairment tests 2021

The value in use calculation for the annual 2021 impairment tests assumed the following key assumptions:

in %

Termovent

Sabiana

Wood Solutions

Glass Solutions

Budgeted gross margin

50.3

42.1

55.6

70.1

Eternal growth rate

2.0

1.8

1.5

1.3

Discount rate

10.3

10.5

9.5

9.3

Budgeted gross margins were determined based on expectations for the market development and initiated optimisation measures. The eternal growth rates used were consistent with the forecasts included in industry reports. The discount rates used were pre-tax and reflected specific risks relating to the relevant CGUs.

Based on a reasonably possible change in the key assumptions, sensitivity analyses were calculated in 2021 on higher discount rates, lower than actually expected EBITDAs, lower gross margins and lower eternal growth rates which only led to a possible impairment at the CGU Wood Solutions.

A reduction in the budgeted gross margin from 55.6% to 53.6% would have resulted in an impairment of the CGU Wood Solutions amounting to CHF 63.3 million. At a budgeted gross margin of 54.6%, the calculated value would have been equal to its carrying amount. A 10% reduction in EBITDA and a simultaneous reduction of eternal growth from 1.5% to 1.0% would have led to an impairment of CHF 49.6 million. At a reduction of 5.6% in EBITDA and a simultaneous reduction of eternal growth to 1.3%, the calculated value would have been equal to its carrying amount.

41. Acquisitions

The following fair value of assets and liabilities had arisen from acquisitions as mentioned under note 3:

Acquisitions 2022

Joro Türen GmbH

in 1 000 CHF

Fair Value

Assets

Cash and cash equivalents

767

Accounts receivable

845

Other current assets

572

Inventories

1 920

Deferred expenses

29

Property, plant and equipment

1 709

Right-of-use assets

1 617

Intangible assets

10 635

Financial assets

11

Total assets

18 106

Liabilities

Accounts payable

160

Other liabilities

246

Lease liabilities

1 617

Accruals and deferred income

403

Current income tax liabilities

200

Provisions

25

Deferred income tax liabilities

2 919

Employee benefit obligations

1 159

Total liabilities

6 730

Net assets acquired

11 376

Goodwill

11 747

Acquisition price

23 123

Cost of acquisition

Purchase price

20 811

Deferred purchase price

2 312

Total cost of acquisition

23 123 

Net cash outflow was as follows:

Purchase price

20 811

Cash and cash equivalents acquired

– 767

Net cash outflow on acquisition

20 044

As of 16 July 2022, Arbonia acquired 100% of Joro Türen GmbH, DE-Renchen. This company is a producer of special doors for the project business in the area of fire, smoke, sound and burglary protection. This acquisition gives the Doors Division access to the German project business and access to extensive approvals and certificates for oversized doors that cannot be manufactured on industrial equipment. The purchase price amounted to CHF 23.1 million which included a deferred purchase price payment of CHF 2.3 million. A first tranche of CHF 1.15 million will mature on July 2023 and a second tranche of CHF 1.15 million on July 2024. From the date of acquisition, Joro contributed CHF 4.3 million in net revenues and CHF 1.1 million in profit to the Group. Had the acquisition taken place on 1 January 2022, net revenues would have been CHF 8.7 million and profit, including amortisation charges on intangible assets from acquisitions, would have been CHF 1.5 million. The gross carrying amount of accounts receivable amounted to CHF 1.1 million, of which CHF 0.3 million were considered uncollectable. The acquisition-related costs amounted to CHF 0.1 million and are included in other operating expenses in 2022. The goodwill from this acquisition is due to the fact that certain intangible assets did not meet the criteria of IFRS 3 «business combinations» for the recognition as intangible assets at the date of acquisition. These intangible assets consisted mainly of the know-how of the workforce. Furthermore goodwill includes the expected synergy potentials within the Doors Division.

Cirelius S.A.

in 1 000 CHF

Fair Value

Assets

Cash and cash equivalents

2 899

Accounts receivable

2 054

Other current assets

97

Inventories

4 850

Deferred expenses

38

Property, plant and equipment

3 121

Right-of-use assets

316

Intangible assets

19 909

Financial assets

37

Total assets

33 321

Liabilities

Accounts payable

540

Other liabilities

773

Lease liabilities

323

Accruals and deferred income

266

Current income tax liabilities

621

Deferred income tax liabilities

4 428

Total liabilities

6 950

Net assets acquired

26 371

Cost of acquisition

Purchase price

26 371

Total cost of acquisition

26 371 

Net cash outflow was as follows:

Purchase price

26 371 

Cash and cash equivalents acquired

– 2 899

Net cash outflow on acquisition

23 471 

As of 5 December 2022, Arbonia acquired 100% of Cirelius S.A., PT-Avintes. Cirelius specialises in particular in the sale and distribution of HVAC system solutions for residential construction throughout Portugal and distributes, among other things, heat pumps and photovoltaic systems. For the HVAC Division, this acquisition means a significant strengthening of its activities in the Portuguese and Spanish markets, making it a leading supplier of HVAC system solutions on the Iberian Peninsular. The purchase price amounted to CHF 26.4 million.

Since the acquisition took place just shortly before year-end, Arbonia has renounced to consolidate the income statement of Cirelius based on materiality reasons. Had the acquisition taken place on 1 January 2022, net revenues would have been CHF 23.2 million and profit, including amortisation charges on intangible assets from acquisitions, would have been CHF 2.9 million. The gross carrying amount of accounts receivable amounted to CHF 2.2 million, of which CHF 0.2 million were considered uncollectable. The acquisition-related costs amounted to CHF 0.2 million and are included in other operating expenses in 2022. The fair values of the acquired assets and liabilities could only be determined on a provisional basis, as the acquisition took place shortly before year-end and therefore not all valuations could be carried out or checked in detail.

Deferred purchase price payments for Tecna and CICSA of CHF 0.7 million were due and paid in 2022.

Acquisitions 2021

CICSA Industriales del Calor S.L.

in 1 000 CHF

Fair Value

Assets

Cash and cash equivalents

1 357

Accounts receivable

1 269

Other current assets

31

Inventories

1 108

Deferred expenses

12

Property, plant and equipment

110

Right-of-use assets

118

Intangible assets

8 773

Financial assets

20

Total assets

12 799

Liabilities

Accounts payable

673

Other liabilities

82

Financial debts

1 455

Lease liabilities

120

Accruals and deferred income

62

Current income tax liabilities

221

Deferred income tax liabilities

2 190

Total liabilities

4 803

Net assets acquired

7 996

Cost of acquisition

Purchase price

6 889

Deferred purchase price

1 107

Total cost of acquisition

7 996 

Net cash outflow was as follows:

Purchase price

6 889 

Cash and cash equivalents acquired

– 1 357

Net cash outflow on acquisition

5 531 

As of 30 March 2021, Arbonia had acquired 100% of CICSA Industriales del Calor S.L., ES-Coslada (Madrid). Cicsa is the Spanish market leader in the distribution of designer radiators and bathroom radiators. Following the 2018 acquisition of the already existing distribution partner for heating, ventilation and air conditioning equipment, TECNA S.L., the acquisition of Cicsa is intended to further strengthen the sales position of the HVAC Division in the Spanish and Portuguese markets. The purchase price amounted to CHF 8.0 million. From the date of acquisition, Cicsa contributed in 2021 CHF 5.6 million in net revenues and CHF 0.4 million in profit to the Group. Had the acquisition taken place on 1 January 2021, net revenues for 2021 would have been CHF 7.3 million and profit, including amortisation charges on intangible assets from acquisitions, would have been CHF 0.5 million. Both the gross and net book value of accounts receivable amounted to CHF 1.3 million. The acquisition-related costs amounted to CHF 0.2 million and were included in other operating expenses in 2020 and 2021.

Termovent Komerc d.o.o.

in 1 000 CHF

Fair Value

Assets

Cash and cash equivalents

2 210

Accounts receivable

3 767

Other current assets

161

Inventories

1 895

Contract assets

595

Deferred expenses

747

Property, plant and equipment

5 472

Right-of-use assets

428

Intangible assets

9 856

Financial assets

76

Total assets

25 207

Liabilities

Accounts payable

2 879

Contract liabilites

4 007

Other liabilities

519

Financial debts

3 404

Lease liabilities

430

Accruals and deferred income

402

Provisions

370

Deferred income tax liabilities

1 061

Total liabilities

13 072

Net assets acquired

12 134

Goodwill

8 007

Acquisition price

20 142

Cost of acquisition

Purchase price

20 142

Total cost of acquisition

20 142 

Net cash outflow was as follows:

Purchase price

20 142 

Cash and cash equivalents acquired

– 2 210

Net cash outflow on acquisition

17 931 

As of 22 July 2021, Arbonia had acquired 100% of the Serbian Termovent Komerc d.o.o., RS-Belgrade. For the HVAC division, the acquisition of this established Serbian manufacturer of commercial ventilation equipment means the geographical expansion of its holistic system offering in the field of ventilation into Eastern Europe and the Europe-wide expansion of its expertise in the field of indoor air quality, in particular cleanrooms. The purchase price amounted to CHF 20.1 million. From the date of acquisition, Termovent contributed in 2021 CHF 7.0 million in net revenues and CHF – 0.5 million in loss to the Group. Had the acquisition taken place on 1 January 2021, net revenues for 2021 would have been CHF 16.6 million and the loss, including amortisation charges on intangible assets from acquisitions, would have been CHF –1.0 million. The gross carrying amount of accounts receivable amounted to CHF 4.0 million, of which CHF 0.2 million were considered uncollectable. The acquisition-related costs amounted to CHF 0.3 million and were included in other operating expenses in 2020 and 2021. The goodwill from this acquisition was due to the fact that certain intangible assets did not meet the criteria of IFRS 3 "business combinations" for the recognition as intangible assets at the date of acquisition. These intangible assets consisted mainly of the know-how of the workforce. Furthermore goodwill includes the expected synergy potentials within the HVAC Division.

Glasverarbeitungsgesellschaft Deggendorf mbH

in 1 000 CHF

Fair Value

Assets

Cash and cash equivalents

3 489

Accounts receivable

732

Other current assets

268

Inventories

832

Deferred expenses

55

Property, plant and equipment

13 198

Right-of-use assets

22

Deferred income tax assets

603

Total assets

19 198

Liabilities

Accounts payable

942

Other liabilities

227

Lease liabilities

22

Accruals and deferred income

970

Provisions

96

Employee benefit obligations

9 235

Total liabilities

11 491

Net assets acquired

7 707

Cost of acquisition

Purchase price

7 707

Total cost of acquisition

7 707 

Net cash outflow was as follows:

Purchase price

7 707 

Cash and cash equivalents acquired

– 3 489

Net cash outflow on acquisition

4 218 

As of 31 August 2021, Arbonia had acquired 100% of Glasverarbeitungsgesellschaft Deggendorf mbH (GVG), DE-Deggendorf. 2022, the company was renamed Arbonia Glassysteme GmbH. By integrating the processing of the raw material glass into its own production processes, the Doors Division has increased its vertical depth of added value. The purchase price amounted to CHF 7.7 million. From the date of acquisition, GVG contributed in 2021 CHF 4.5 million in net revenues and CHF 0.5 million in profit to the Group. Had the acquisition taken place on 1 January 2021, net revenues in 2021 would have been CHF 11.8 million and the loss would have been CHF -0.3 million. Both the gross and net book value of accounts receivable amounted to CHF 0.7 million. The acquisition-related costs amounted to CHF 0.3 million and were included in other operating expenses in 2021.

42. Financial debts

On 3 November 2020, Arbonia had entered into a syndicated loan for CHF 250 million. This loan, arranged with a consortium of domestic and foreign banks, has a term of five years, with the option to extend the agreement twice for one year each. The first extension option was exercised in 2021 and the second in 2022, so that the term now runs until 2027.

The financial debts are comprised of the following:

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Promissory note loan

119 754

125 501

Syndicated loan

54 434

Mortgages

6 446

7 725

Bank loans

10 804

884

Total

191 438

134 110

The syndicated loan contains the leverage ratio as covenant. In the event of non-compliance, the banks may at any time at their option, declare the amounts then outstanding to be immediately due and payable. Arbonia was in compliance with the covenant in 2022 and 2021.

The maturities of the financial debts are as follows:

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

within 1 year

121 586

1 843

between 1 and 5 years

57 708

118 867

after 5 years

12 144

13 400

Total

191 438

134 110

The effective interest rates for the financial debts at the balance sheet date were as follows:

31 / 12 / 2022

EUR

Financial debts

2.1%

31 / 12 / 2021

EUR

Financial debts

1.7%

The syndicated loan and bank loans have variable interest rates, whereas the promissory note loan and mortgages have fixed interest rates.

The breakdown for the financial debts by currency was as follows:

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

EUR

191 438

133 974

PLN

 

136

Total

191 438

134 110

43. Financial instruments

The contractually agreed undiscounted interest payments and repayments of the non-derivative financial liabilities and the derivatives with a cash outflow are as follows:

31 / 12 / 2022

in 1 000 CHF

Book value

Contractual cash flows

up to 6 months

7 to 12 months

between 1 and 2 years

between 2 and 5 years

after 5 years

Non-derivative financial instruments

Accounts payable

 92 970 

 92 970 

 92 941 

 29 

 

 

 

Other liabilities (without derivatives)

 4 927 

 4 927 

 1 941 

 1 184 

 1 802 

 

 

Lease liabilities

 22 119 

 23 305 

 3 884 

 3 525 

 5 502 

 7 102 

 3 292 

Accruals and deferred income

 40 909 

 40 909 

 40 138 

 771 

 

 

 

Financial debts

 191 438 

 198 290 

 123 705 

 1 023 

 2 282 

 58 763 

 12 517 

Total

 352 363 

 360 401 

 262 609 

 6 532 

 9 586 

 65 865 

 15 809 

31 / 12 / 2021

in 1 000 CHF

Book value

Contractual cash flows

up to 6 months

7 to 12 months

between 1 and 2 years

between 2 and 5 years

after 5 years

Non-derivative financial instruments

Accounts payable

 133 574 

 133 574 

 133 396 

 178 

 

 

 

Other liabilities (without derivatives)

 18 244 

 22 633 

 983 

 693 

 957 

 

 20 000 

Lease liabilities

 26 542 

 28 408 

 4 136 

 3 892 

 6 105 

 9 957 

 4 318 

Accruals and deferred income

 44 600 

 44 600 

 42 722 

 1 878 

 

 

 

Financial debts

 134 110 

 142 529 

 3 730 

 1 137 

 61 088 

 62 637 

 13 937 

Derivative financial instruments

Interest rate swaps

988

Cash outflow

988

108

102

182

385

211

Commodity swaps

58

Cash outflow

58

58

Total

 358 116 

 372 790 

 185 133 

 7 880 

 68 332 

 72 979 

 38 466 

Amounts in foreign currency were each translated at the respective year-end rate. Variable interest payments arising from financial instruments were calculated using the conditions prevailing at the balance sheet date. Financial liabilities which can be repaid at any time are always assigned to the earliest possible time period.

44. Additional disclosures on financial instruments

The relation between the relevant balance sheet items and the measurement categories in accordance with IFRS 9 and the disclosure of fair values of financial instruments is shown in the following table. The table does not contain information on fair value for financial assets and financial liabilities that are not measured at fair value if the carrying amount is a reasonable approximation of fair value. Similarly, no information is required on the fair value of lease liabilities.

31 / 12 / 2022

in 1 000 CHF

FA FVTPL

FA AC

FL FVTPL

FL AC

Book value

Fair Value

Level 2

Level 3

Cash and cash equivalents

29 196

29 196

Accounts receivable

109 559

109 559

Derivative financial instruments

70

70

70

Other current assets (without derivatives)

1 208

1 208

Deferred expenses

3 198

3 198

Other financial assets

424

424

Loans

40

40

40

Assets

110

143 585

143 695

Accounts payable

92 970

92 970

Other liabilities (without derivatives)

4 927

4 927

Lease liabilities

22 119

22 119

Accruals and deferred income

40 909

40 909

Promissory note loan

119 754

119 754

115 761

Syndicated loan

54 434

54 434

Loans

10 804

10 804

Mortgages

6 446

6 446

6 376

Liabilities

 

352 363

352 363

31 / 12 / 2021

in 1 000 CHF

FA FVTPL

FA AC

FL FVTPL

FL AC

Book value

Fair Value

Level 2

Level 3

Cash and cash equivalents

253 870

253 870

Accounts receivable

106 429

106 429

Derivative financial instruments

15

15

15

Other current assets

1 533

1 533

Deferred expenses

2 010

2 010

Other financial assets

339

339

Loans

58

58

58

Assets

73

364 181

364 254

Accounts payable

133 574

133 574

Derivative financial instruments

1 046

1 046

1 046

Other liabilities (without derivatives)

18 244

18 244

Lease liabilities

26 542

26 542

Accruals and deferred income

44 600

44 600

Promissory note loan

125 501

125 501

127 381

Loans

884

884

Mortgages

7 725

7 725

8 713

Liabilities

1 046

357 069

358 116

Abbreviations in the header of this table are explained in note 9 "Financial Instruments".

The derivative financial instruments measured at fair value through profit or loss relate to interest rate transactions for 2022. In 2021, commodity transactions were also included. The fair value of level 2 is the present value of expected payments, which are discounted at market rates. The determination of the fair value of these transactions is made by the banks.

In 2022 and 2021, no gains / losses resulted from level 3 financial instruments. Furthermore, no reclassifications occurred between the levels 1 and 2.

45. Provisions

in 1 000 CHF

Warranty

Personnel

Restructuring

Onerous contracts project business

Other provisions

Total

Balance at 01 / 01 / 2021

 9 803 

 7 559 

 27 

 39 

 2 452 

 19 880 

Foreign exchange differences

 – 366 

 – 316 

 – 346 

 

 – 86 

 – 1 114 

Change in scope of consolidation

 237 

 229 

 

 

 

 466 

Additional provisions

 8 540 

 2 167 

 10 041 

 16 

 4 496 

 25 260 

Used during the year

 – 7 543 

 – 1 530 

 – 1 033 

 – 39 

 – 1 199 

 – 11 344 

Unused amounts reversed

 – 261 

 – 273 

 – 27 

 

 – 398 

 – 959 

Reclassification to /  from assets held for sale

 114 

 

 

 

 

 114 

Balance at 31 / 12 / 2021

 10 524 

 7 836 

 8 662 

 16 

 5 265 

 32 303 

Foreign exchange differences

 – 385 

 – 352 

 – 320 

 

 – 98 

 – 1 155 

Change in scope of consolidation

 25 

 

 

 

 

 25 

Additional provisions

 3 679 

 2 965 

 2 686 

 12 

 136 

 9 478 

Used during the year

 – 6 097 

 – 1 568 

 – 6 363 

 – 4 

 – 685 

 – 14 717 

Unused amounts reversed

 – 457 

 – 954 

 – 290 

 

 – 1 385 

 – 3 086 

Balance at 31 / 12 / 2022

 7 289 

 7 927 

 4 375 

 24 

 3 233 

 22 848 

thereof current at 31 / 12 / 2021

 7 178 

 1 648 

 8 662 

 16 

 2 987 

 20 491 

thereof current at 31 / 12 / 2022

 4 750 

 1 700 

 4 375 

 23 

 1 382 

 12 230 

The current provisions are expected to be fully utilised during 2023. The non-current provisions are expected to be utilised as follows:

in 1 000 CHF

Warranty

Personnel

Restructuring

Onerous contracts project business

Other provisions

Total

between 1 and 5 years

 2 533 

 5 260 

 

 

 1 785 

9 578

after 5 years

 6 

 967 

 

 

 67 

1 040

Warranty

Warranty provisions are assessed for each order individually. In case of a high volume of orders, such an individual assessment might be impractical and standard rates are applied based on past experience.

Personnel

Personnel provisions comprise mainly provisions for partial retirements.

Restructuring

In December 2022, the Doors Division announced that it would cease operations in Vlotho (DE). A large part of the restructuring provision recognised in 2022 is attributable to this. At the end of November 2021, the HVAC Division announced the relocation of production and closure of the plant in Tubbergen (NL). The restructuring provision amounted to CHF 8.5 million and costs incurred of CHF 6.2 million were booked against this provision in 2022. The restructuring of the radiator business will be completed by early summer 2023.

Other provisions

Other provisions include costs for environmental risks, legal claims and various risks that could arise in the normal course of business.

46. Deferred income taxes

Deferred tax assets and liabilities arise due to differences between the group valuation and tax valuation in the following balance sheet items:

31 / 12 / 2022

31 / 12 / 2021

in 1 000 CHF

Deferred tax assets

Deferred tax liabilities

Deferred tax assets

Deferred tax liabilities

Assets

Cash and cash equivalents

 4 

 

 

 

Accounts receivable

 484 

 226 

 622 

 150 

Other current assets

 6 

 134 

 168 

 166 

Inventories

 1 730 

 635 

 1 831 

 546 

Property, plant and equipment and right-of-use assets

 254 

 23 162 

 65 

 22 763 

Investment property

 67 

 320 

 65 

 

Intangible assets

 204 

 39 519 

 244 

 37 634 

Capitalised pension surplus and financial assets

 130 

 3 148 

 

 6 089 

Liabilities

Current liabilities

 5 505 

 4 997 

 5 446 

 3 376 

Non-current liabilities

 2 874 

 858 

 2 703 

 3 233 

Current and non-current provisions

 938 

 312 

 1 322 

 340 

Employee benefit obligations

 3 966 

 4 

 9 575 

 2 

Deferred taxes from timing differences

 16 162 

 73 315 

 22 041 

 74 299 

Deferred tax assets derived from tax loss carryforwards

 13 658 

 10 749 

Valuation allowance

 – 7 104 

 – 3 785 

Net deferred taxes from timing differences

 22 716 

 73 315 

 29 005 

 74 299 

Offset of deferred tax assets and liabilities

 – 18 330 

 – 18 330 

 – 22 100 

 – 22 100 

Total deferred taxes

 4 386 

 54 985 

 6 905 

 52 199 

From the capitalised pension surplus and employee benefit obligations, CHF 0.6 million (2021: CHF 4.7 million) of deferred taxes were recorded in comprehensive income. All other changes of assets and liabilities were recorded through the income statement.

Deferred income tax assets are recognised for tax loss carryforwards, to the extent that the realisation of the related tax benefit through future taxable profits is probable.

There are temporary differences totalling CHF 59.4 million (2021: CHF 44.6 million) in conjunction with investments in subsidiaries for which Arbonia has not recorded deferred tax liabilities based on the exemption provisions of IAS 12. There are no deductible temporary differences for both 2022 and 2021 on which no deferred tax assets have been recognised.

Activity in the deferred income tax account on a net basis is as follows:

in 1 000 CHF

2022

2021

Balance at 01 / 01

45 294

42 059

Change in scope of consolidation

7 347

2 649

Changes to other comprehensive income

567

4 660

Changes to the income statement

– 962

– 2 611

Foreign exchange differences

– 1 647

– 1 463

Balance at 31 / 12

50 599

45 294

Unrecognised tax loss carryforwards in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Tax loss carryforwards

70 007 

53 496 

thereof recognised as deferred taxes

– 35 376

– 37 414

Unrecognised tax loss carryforwards

34 631 

16 082 

Portion expiring:

between 1 and 5 years

 

2 990 

after 5 years

34 631 

13 092 

Total

34 631 

16 082 

Tax effect on unrecognised tax loss carryforwards

7 104 

3 785 

thereof pertaining to tax rates below 15.0%

2 021 

425 

thereof pertaining to tax rates between 15.0% and 20.0%

59 

 

thereof pertaining to tax rates between 20.1% and 25.0%

4 316 

2 620 

thereof pertaining to tax rates between 25.1% and 30.0%

708 

740 

47. Employee benefit obligations

Pension plans in Switzerland

The Swiss pension plans are governed by the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG), aiming to safeguard the employees against the risks of old age, death and disability. There are semi-autonomous pension plans, that is, the foundations fully bear the risk of age itself. The risks of disability and death are reinsured entirely (congruent reinsurance) or partially (stop-loss insurance) with Swiss insurance companies. The plans give plan participants a choice regarding the annual amount of contribution payments. The employees’ contributions are determined as a percentage of the insured salary and are deducted monthly. The retirement pension is calculated by multiplying the retirement capital at the retirement age with the then applicable regulatory conversion rate. Plan participants can also draw all or part of the retirement pension as a lump sum. Death and disability benefits are set as a percentage of the insured salary.

The Board of Trustees are by law the supreme governing body of the foundation. The duties of the trustees are set out in the BVG and the regulations of the foundations. The Board of Trustees exercises the overall direction and has overall responsibility. It is composed in accordance with the legal provisions of an equal number of employer and employee representatives, provided the foundation offers BVG-related pension plans.

The actuarial risks of old age, death and disability as well as the investment risks are primarily borne by the foundations. If certain duties are transferred to third parties, they assume the associated risks (insurance companies, external administrator etc.).

An unfavourable development of the semi-autonomous and autonomous foundations can lead to an underfunding of the affected foundation as stipulated by the BVG. The BVG allows a temporary underfunding but the Board of Trustees has to take the necessary remedial measures to remedy the underfunding within a maximum of ten years. Additional employer and employee contributions could be incurred in case the Swiss pension plan has a significant underfunding as per BVG. In such cases, the risk is borne by employers and employees alike and the employer is legally not obliged to accept more than 50% of the additional contributions.

The investment strategy of the Swiss pension plans follows BVG, including the rules and regulations for the diversification of plan assets. The security assessment of the investments takes place in the semi-autonomous foundations in evaluating total assets and liabilities as well as the structure and the expected development of the insured population.

Pension plans in Germany

The occupational pension provision in Germany is subject to the pension law. The method of the direct commitment was elected for the German pension plans. To fund these pension plans for future benefit payments, pension provisions are recorded in accordance with the relevant regulations. The employer has made commitments to the employees under certain benefit arrangements. The pension plans are defined benefit plans and provide current and former employees benefits in the event of reaching the retirement age, in case of disability, or death. The respective benefits become due at maturity and are paid directly by the company to the beneficiaries.

The following amounts are included in the consolidated financial statements:

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Present value of funded obligations

113 997 

130 659 

Fair value of plan assets

154 418 

169 835 

Overfunding

– 40 421

– 39 176

Present value of unfunded obligations

42 331 

61 846 

Adjustment to asset ceiling

35 547 

 

Liability (net) recognised in the balance sheet

37 457 

22 670 

thereof recorded as employee benefit obligations

42 336 

62 374 

thereof recorded as capitalised pension surplus

– 4 879

– 39 704

The movement in the defined benefit obligation over the year is as follows:

in 1 000 CHF

2022

2021

Balance at 01 / 01

192 505 

178 159 

Changes in scope of consolidation

1 159 

9 234 

Interest cost

1 355 

905 

Current service cost

5 413 

5 776 

Contributions by plan participants

2 494 

2 394 

Benefits paid

– 8 116

– 5 995

Actuarial gains arising from changes in demographic assumptions

 

– 5 248

Actuarial gains arising from changes in financial assumptions

– 36 856

– 6 981

Actuarial losses arising from experience adjustements

827 

3 761 

Other transfers

296 

Administration cost

62 

60 

Reclassification from / to liabilities associated with assets held for sale

 

13 283 

Foreign exchange differences

– 2 811

– 2 844

Balance at 31 / 12

156 327 

192 505 

thereof for active members

96 678 

117 054 

thereof for pensioners

54 307 

68 284 

thereof for deferred members

5 342 

7 167 

The movement in the fair value of plan assets over the year is as follows:

in 1 000 CHF

2022

2021

Balance at 01 / 01

169 833 

132 758 

Interest income

628 

265 

Return on plan assets excl. interest income

– 15 707

18 981 

Contributions by the employer

5 228 

5 051 

Contributions by plan participants

2 494 

2 394 

Benefits paid

– 8 116

– 5 995

Other transfers

296 

Reclassification from / to assets held for sale

 

16 595 

Foreign exchange differences

– 239

– 217

Balance at 31 / 12

154 416 

169 833 

The movement of the effect of the asset ceiling is as follows:

in 1 000 CHF

2022

Balance at 01 / 01

Change in effect of asset ceiling excl. interest cost

35 547 

Balance at 31 / 12

35 547 

The remeasurements of employee benefit obligations in other comprehensive income are as follows:

in 1 000 CHF

2022

2021

Actuarial gains

– 36 029

– 8 468

Actuarial gains from discontinued operations

 

– 7 342

Return on plan assets excl. interest income

15 707 

– 26 549

Change in effect of asset ceiling excl. interest cost

35 547 

 

Remeasurements of employee benefit obligations

15 224 

– 42 359

The amounts recognised in the income statement are as follows:

in 1 000 CHF

2022

2021

Current service cost

5 413 

5 776 

Net interest result

727 

639 

Administration cost

62 

60 

Net charges for defined benefit plans

6 202 

6 476 

thereof recorded under personnel expenses

5 475 

5 837 

thereof recorded under financial results

727 

639 

The principal actuarial assumptions used were as follows:

Weighted average

2022

2021

Discount rate at 31 / 12

2.8%

0.7%

Future salary increases

2.1%

1.3%

Future pension increases

0.6%

0.6%

Mortality tables

Switzerland

BVG 2020 GT

BVG 2020 GT

Germany

HB 2018 GT

HB 2018 GT

The sensitivity of employee benefit obligations due to changes of principal assumptions are as follows:

Impact on employee benefit obligations

Change in assumption

2022

2021

Discount rate

– 0.25%

4 757

7 509

+ 0.25%

– 4 491

– 7 080

Salary increases

– 0.25%

– 509

– 766

+ 0.25%

504

769

Life expectancy

+ 1 year

3 180

5 539

– 1 year

– 3 250

– 5 552

Service cost 2023 with discount rate

+ 0.25%

– 217

– 317

The weighted average duration of employee benefit obligations is 12.7 years (2021: 15.6 years).

The sensitivity analysis above is based on a change in an assumption while all other assumptions remain unchanged. In reality, this is unlikely to happen, because certain assumptions correlate. In the calculation of sensitivities of pension benefit obligations with the principal actuarial assumptions, the same method was applied (present value of the defined benefit obligation is calculated using the projected unit credit method at year-end) as for the calculation of the pension liability in these consolidated financial statements.

Plan assets at fair value consist of:

in 1 000 CHF

quoted

unquoted

31 / 12 / 2022 Total

quoted

unquoted

31 / 12 / 2021 Total

Cash and cash equivalents

7 287 

7 287 

7 202 

7 202 

Equity instruments

41 204 

41 204 

52 114 

52 114 

Debt instruments

26 241 

26 241 

29 125 

29 125 

Real estate

8 818 

56 983 

65 801 

8 473 

58 146 

66 619 

Others

8 557 

5 326 

13 883 

9 701 

5 072 

14 773 

Total plan assets

84 820

69 596

154 416

99 413

70 420

169 833

The category "Others" contains assets from full insurance contracts that have been terminated some years ago and are therefore expiring.

The expected maturity profile of benefit payments for unfunded plans is as follows:

in 1 000 CHF

up to 1 year

between 1 and 2 years

between 2 and 5 years

next 5 years

Benefit payments

1 618

1 791

6 093

12 155

Expected contributions to pension plans for the year 2023 amount to CHF 7.7 million (2022: CHF 7.3 million), of which CHF 5.2 million (2022: CHF 4.9 million) are attributable to the employer.

48. Share capital

The capital structure is as follows:

31 / 12 / 2022

31 / 12 / 2021

Category

Outstanding shares

Par value in CHF

Share capital in CHF

Outstanding shares

Par value in CHF

Share capital in CHF

Registered shares

 69 473 243 

4.20

 291 787 621 

 69 473 243 

4.20

 291 787 621 

The proposed distribution per share for the 2022 financial year amounts to CHF 0.30 (2021: CHF 0.30).

On 22 April 2022, the Annual General Meeting of Arbonia AG had approved amongst others the following: To authorise the Board of Directors to create additional share capital by a maximum amount of CHF 29 148 000 through the issue of a maximum of 6 940 000 fully paid registered shares with a par value of CHF 4.20 each until 22 April 2024 (authorised capital increase). To increase the share capital by a maximum amount of CHF 29 148 000 by issuing a maximum of 6 940 000 fully paid up registered shares with a par value of CHF 4.20 (conditional capital increase). The authorised and conditional capital increase together were limited to an additional share capital of CHF 29 148 000.

Earnings per share

2022

2021

Group earnings from continuing operations after non-controlling interests (in 1 000 CHF)

20 672 

27 540 

Group earnings from discontinued operations after non-controlling interests (in 1 000 CHF)

– 1 545

111 190 

Group earnings for the year (in 1 000 CHF)

19 127 

138 730 

Outstanding shares (average)

69 473 243 

69 473 243 

Less treasury shares (average)

– 526 858

– 309 282

Average number of shares outstanding for the calculation

68 946 385 

69 163 962 

There were no dilutive effects impacting the calculation.

49. Treasury shares

2022

2021

Ø market value in CHF

Number of shares

Amount in 1 000 CHF

Ø market value in CHF

Number of shares

Amount in 1 000 CHF

Balance at 01 / 01

15.36

350 373

5 383

8.70

282 386

2 456

Transfer for share based payments

15.64

– 164 084

– 2 566

10.85

– 307 758

– 3 340

Purchase

13.73

924 733

12 698

16.68

375 745

6 266

Balance at 31 / 12

13.96

1 111 022

15 514

15.36

350 373

5 383

50. Other comprehensive income and other reserves

The movements in other comprehensive income after taxes were as follows:

31 / 12 / 2022

31 / 12 / 2021

in 1 000 CHF

Other reserves

Retained earnings

Total other comprehensive income

Other reserves

Retained earnings

Total other comprehensive income

Remeasurements of employee benefit obligations

 – 15 224 

 – 15 224 

 42 359 

 42 359 

Deferred tax effect

 – 567 

 – 567 

 – 6 510 

 – 6 510 

Total items that will not be reclassified to income statement

 – 15 792 

 – 15 792 

 35 849 

 35 849 

Currency translation differences

 – 28 971 

 – 28 971 

 – 21 140 

 – 21 140 

Cumulative currency translation differences transferred to the income statement

 

 

 31 391 

 31 391 

Total items that may be subsequently reclassified to income statement

 – 28 971 

 – 28 971 

 10 251 

 10 251 

Other comprehensive income after taxes

 – 28 971 

 – 15 792 

 – 44 763 

 10 251 

 35 849 

 46 100 

Other reserves

in 1 000 CHF

Currency translation

Total

Balance at 31 / 12 / 2020

– 108 710

– 108 710

Currency translation differences

10 251 

10 251 

Balance at 31 / 12 / 2021

– 98 459

– 98 459

Currency translation differences

– 28 971

– 28 971

Balance at 31 / 12 / 2022

– 127 430

– 127 430

51. Financial results

in 1 000 CHF

2022

2021

Financial income

Bank and other interest

263

20

Interest on net pension surplus

137

19

Total interest income

400

39

Gains derivative financial instruments

993

453

Minority share from associated companies

1 263

 

Foreign currency exchange gain from sale / liquidation of subsidiaries

 

125

Other financial income

18

4

Total other financial income

2 274

582

Total financial income

2 674

621

Financial expenses

Bank and other interest

283

715

Interest on leases

538

919

Interest on non-current financial debts and syndicated loan

2 246

2 370

Interest on net employee benefit obligations

865

658

Compounding of liabilities

230

815

Total interest expenses

4 162

5 477

Impact of exchange rate fluctuations

4 497

1 627

Minority share from associated companies

 

1 060

Bank charges and other financial expenses

1 211

1 841

Total other financial expenses

5 708

4 528

Total financial expenses

9 870

10 005

Total net financial results

– 7 196

– 9 384

The classification of the financial result of financial instruments into the categories according to IFRS 9 is as follows:

in 1 000 CHF

2022

2021

Total interest income from financial assets measured at amortised cost (FA AC)

263

20

Total interest expenses from financial liabilities measured at amortised cost (FL AC)

3 297

4 819

Net gain from financial assets /  liabilities measured at fair value through profit or loss (FA /  FL FVTPL)

993

453

Finance costs recognised in financial expenses from financial assets /  liabilities measured at amortised cost (FA /  FL AC)

1 237

1 836

52. Income taxes

in 1 000 CHF

2022

2021

Current income taxes

 10 108 

 18 995 

Changes in deferred income taxes

 – 962 

 – 2 611 

Total

 9 146 

 16 384 

The tax on Group earnings before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to earnings before tax of the consolidated companies as follows:

in 1 000 CHF

2022

2021

Earnings before income tax

29 818

43 924

Weighted average tax rate in %

24.1

26.0

Expected tax expense

7 195

11 435

Income tax reconciliation

Effect of utilisation of previously unrecognised tax losses

– 16

– 69

Effect of not capitalised losses for the year

3 076

2 682

Effect of non-tax-deductible expenses and non-taxable income

– 159

2 636

Effect of income and expenses taxed at special rates

347

732

Effect of tax charges related to prior years

– 697

– 365

Effect of tax rate changes

– 479

– 445

Change in unrecognised deferred tax assets

 

60

Other items

– 121

– 282

Effective tax expense

9 146

16 384

Effective tax rate in %

30.7

37.3

The Group’s applicable tax rate represents the weighted average of the statutory corporate tax rates, prevailing in the tax jurisdictions in which the Group companies operate.

The expected weighted average tax rate decreased slightly compared to previous year. Compared to 2021, there were no significant changes in local tax rates.

Global minimum tax

To address concerns about uneven profit distribution and tax contribution of large multinational corporations, various agreements have been reached at the global level, including an agreement by over 135 jurisdictions to introduce a global minimum tax rate of 15%. In December 2021, the Organisation for Economic Co-operation and Development (OECD) released a draft legislative framework, followed by detailed guidance released in March 2022, that is expected to be used by individual jurisdictions that signed the agreement to amend their local tax laws. Once changes to the tax laws in any jurisdictions in which Arbonia operates are enacted or substantively enacted, the Group may be subject to the top-up tax. At the date when the financial statements were authorised for issue, none of the jurisdictions in which Arbonia operates had enacted or substantively enacted the tax legislation related to the top-up tax. Arbonia is closely monitoring the progress of the legislative process in each jurisdiction the Group operates in. At 31 December 2022, Arbonia did not have sufficient information to determine the potential quantitative impact.

53. Financial risk management

Risk management principles

Arbonia has a centralised risk management system. The risk management process is carried out as stated in the internal guidelines. Any potential and material risks have been identified and quantified according to the likelihood, damage to reputation and impact. Overall, no potential risks have been identified in the business year, which could lead to material adjustments of net assets, the financial position and results of operations of the consolidated financial statements of Arbonia.

Due to its international business activities, the Group is subject to various financial risks, such as credit, liquidity and other market risks. The principal goal of risk management activities is to minimise financial risks to the continued existence (liquidity and default risks) and profitability (currency, interest rate fluctuation, price risks) while ensuring adequate solvency at any time. Risk minimisation does not mean to completely eliminate but rather to control financial risks in an economically useful manner within an identified framework. Depending on their assessment, the Group uses derivative and non-derivative financial instruments to hedge certain risks. To minimise financial default risks, derivative financial instruments are only entered into with banks which are specifically defined in the treasury policy.

There are financial management guidelines and principles within the Group that regulate the handling of currency, interest rate fluctuation, commodity and credit risks, the use of derivative and non-derivative financial instruments as well as the management of liquid funds not required for operations. The risk management guidelines adopted by the Board of Directors are implemented centrally by group treasury but in close cooperation with the Divisions.

The Group’s financial resources are not used for speculation purposes. The derivatives used aim to hedge underlying transactions.

Credit default risk

Credit risks arise from the possibility that the counterparty of a transaction might not be able or willing to meet its obligations. The credit risk relates to financial assets (see note 44) as well as to contract assets (see note 33).

The credit or default risk in relation to receivables and contract assets is controlled by the individual subsidiaries on a decentralised basis and limited through the assignment of credit limits on the basis of systematic and regular credit ratings. Corresponding guidelines are in place within the Group aiming at an ongoing control and value adjustment of open positions. Due to the broad diversification of the customer portfolio into various business segments and geographic regions but also the possibility to create construction tradesman’s liens or the use of credit insurance, the credit risk is limited. The 10 largest debtors of Arbonia as of the balance sheet date accounted for a share of 25.9% (2021: 22.3%) of existing trade receivables. The 10 largest customers generated 23.5% (2021: 23.9%) of the Group’s net revenues in the year under review.

To minimise financial default risks, cash and cash equivalents, fixed-term deposits and derivative financial instruments are only deposited or entered into with banks which are specifically defined in the treasury policy. The three largest banks accounted for 68% / 8% / 5% of total liquid funds as of the balance sheet date (2021: 24% / 17% / 15%).

The maximum credit risk corresponds to the book values or fair values reported in note 44 for the financial asset categories "at fair value through profit and loss" (FA FVTPL) and "at amortised cost" (FA AC) and the book values of the contract assets reported in note 33. If applicable, these include derivative financial instruments having a positive fair value.

Liquidity risk

The liquidity risk arises from the fact that the Group might not be in a position to obtain the funds required to meet the obligations assumed in connection with financial instruments on the relevant due dates.

The cash, investments, financing and redemptions are managed and controlled on an ongoing basis by group treasury. The standard policy involves financial structures with matching maturities and currencies for each individual subsidiary.

Scheduled cash requirements for the planning horizon must be secured under facility agreements or internal funding within the Group and / or via banks. By means of rolling monthly cash flow forecasts over a planning horizon of 12 months, the future cash development is forecasted in order to take measures in due time in the event of an excess coverage or shortfall. Arbonia monitors its liquidity risk with the aid of a consolidated liquidity plan, taking into account additional funding sources, e.g. undrawn credit limits. As individual divisions of Arbonia are subject to seasonal fluctuations, cash decreases early in the year but normally rises again in the second half of the year.

The available liquidity as of the balance sheet date is shown below:

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Cash and cash equivalents

29 196

253 870

+ undrawn credit facilities

210 404

261 793

Total available liquidity

239 600

515 663

The syndicated loan taken out in 2020 includes the leverage ratio as covenant. If such covenant are not complied with, the banks may demand immediate redemption of their share. In 2022 and 2021, Arbonia complied with the covenant.

The contractually agreed maturities of financial liabilities within the meaning of IFRS 7 are set forth in note 43.

Market risk

(a) Currency risk

Due to the Group’s international focus, there are currency risks based on exchange rate fluctuations of various currencies. In the case of Arbonia, these mainly relate to the EUR, PLN, CZK and RUB.

A currency risk arises from transactions that are not settled in the functional currency of the Group companies. Group companies can hedge their net risk position for the period of the risk horizon with hedging transactions at Group Treasury. Arbonia’s risk position equals the sum of the subsidiaries’ net risk positions and is hedged by the group treasury with external counterparties using currency forward contracts of the relevant foreign currency. The hedging ratio depends on the maturity and currency risk exposure and is determined on a case by case basis.

Translation differences (translation risks) also arise from the consolidation in CHF of the financial statements of foreign subsidiaries prepared in foreign currencies. Translation affects the amount of earnings and comprehensive income. The major risk to the Group in connection with translation differences relates to the EUR. The effects of such exchange rate fluctuations on significant net investments are as much as possible hedged by means of natural hedges with liabilities in this currency.

For the description of market risks, IFRS 7 requires sensitivity analyses showing the effects of realistic currency fluctuations on Group earnings and shareholders’ equity. These effects are calculated on the basis of financial instruments existing as of the balance sheet date. In this context, it is assumed that all other variables remain unchanged. Translation risks arising from the translation of foreign subsidiaries are not included in the following table.

A 5% increase (decrease) of the EUR against the CHF (2021: 5%), a 5% increase (decrease) of the CZK against the CHF (2021: 5%), a 5% increase (decrease) of the PLN against the CHF (2021: 5%) or a 5% increase (decrease) of the RUB against the CHF (2021: 5%) would have the following effects on Arbonia’s Group earnings as of the balance sheet date:

in 1 000 CHF

31 / 12 / 2022

EUR / CHF

CZK / CHF

PLN / CHF

RUB / CHF

Assumed change

5.0%

5.0%

5.0%

5.0%

Impact of an increase on group earnings

2 480

687

223

244

Impact of a decrease on group earnings

– 2 480

– 687

– 223

– 244

in 1 000 CHF

31 / 12 / 2021

EUR / CHF

CZK / CHF

PLN / CHF

RUB / CHF

Assumed change

5.0%

5.0%

5.0%

5.0%

Impact of an increase on group earnings

2 677

259

307

422

Impact of a decrease on group earnings

– 2 677

– 259

– 307

– 422

(b) Interest rate risk

Interest rate risks arise from interest rate fluctuations which may have a negative effect on the Group’s asset and earnings position. Interest rate fluctuations result in changes in interest income and expenses relating to interest-bearing assets and liabilities. In addition, they may also affect the fair value of certain financial assets, liabilities and financial instruments, as set forth below under «Market risks».

Group companies are exclusively funded via group treasury on terms in line with the market and on a decentralised basis only in exceptional cases and with the prior approval of the Group CFO. Excess cash is also invested via group treasury (with the exception of Russia). The standard policy for the Group as well as for subsidiaries is that interest-bearing financial transactions in terms of capital commitment and fixed interest rates must always meet the underlying requirements. Derivative financial instruments, such as interest rate swaps or interest rate options, are used on a case-by-case basis by group treasury and only upon consultation with or according to the instruction of Group CFO.

For the description of interest fluctuation risks, IFRS 7 requires sensitivity analyses showing the effects of realistic fluctuations in market interest rates on Group earnings and shareholders’ equity. These effects are calculated on the basis of financial instruments existing as of the balance sheet date. In this context, it is assumed that all other variables remain unchanged and that the balance of financial instruments as of the balance sheet date is representative of the entire year. Fixed-rate financial instruments valued at amortised cost are not subject to interest rate fluctuation risks within the meaning of IFRS 7.

An increase (decrease) in the market interest level as of the balance sheet date by 50 basis points for CHF interest rates (2021: 50 basis points) or by 50 basis points for EUR interest rates (2021: 50 basis points) would have the effects set forth below on Group earnings of Arbonia:

in 1 000 CHF

31 / 12 / 2022

CHF interest rate

EUR interest rate

Assumed change in basis points

50

50

Variable interest-bearing financial instruments

Impact of an increase on group earnings

6

– 157

Impact of a decrease on group earnings

– 6

157

Interest rate swaps

Impact of an increase on group earnings

82

Impact of a decrease on group earnings

– 82

in 1 000 CHF

31 / 12 / 2021

CHF interest rate

EUR interest rate

Assumed change in basis points

50

50

Variable interest-bearing financial instruments

Impact of an increase on group earnings

843

202

Impact of a decrease on group earnings

– 843

– 202

Interest rate swaps

Impact of an increase on group earnings

134

Impact of a decrease on group earnings

– 134

(c) Other market risks

Fair value risk

Changes in fair values of financial assets, liabilities or financial instruments may affect the Group’s asset and earnings position.

For the description of market risks, IFRS 7 requires sensitivity analyses showing the effects of a reasonable potential change in risk variables, such as market prices, indices, etc., on prices of financial instruments, on the Group’s earnings and shareholders’ equity.

Equity management

The objective of Arbonia is a strong equity base to secure the Group’s future development. A sustainable equity ratio of between 45% and 55% is the goal. The shareholders’ equity corresponds to an equity ratio of 65.0% as of the balance sheet date (2021: 64.3%). The slight increase in the equity ratio compared to the previous year is due to lower total assets as a result of the significant decrease in cash and cash equivalents.

With regard to the maximum amount still available for the creation of new share capital through a conditional and / or authorised capital increase, see note 48.

Arbonia is not governed by any regulatory authorities with respect to minimum capital requirements.

54. Derivative financial instruments

The following table shows the fair values of the various derivative financial instruments recognised in the balance sheet as of the balance sheet date:

in 1 000 CHF

31 / 12 / 2022

31 / 12 / 2021

Interest rate swaps without hedges

70

Commodity swaps without hedges

15

Liabilities

Interest rate swaps without hedges

988

Commodity swaps without hedges

58

Interest rate swaps are entered into to hedge the interest rate risk, i.e. to secure variable interest rates on borrowings in fixed interest rates.

Commodity transactions are entered into to hedge commodity price risks. The open transactions as at 31 December 2021 related to hedges of the steel price.

55. Additional information on the cash flow statements

in 1 000 CHF

2022

2021

Changes in non-cash transactions

Additional / reversed provisions

6 355

25 306

Changes in capitalised pension surplus / employee benefit obligations

260

1 357

Share based payments

2 278

5 049

Minority share from associated companies

– 1 263

1 060

Other non-cash effects

4 172

– 1 918

Total changes in non-cash transactions

11 802

30 854

Changes in working capital

Changes in accounts receivable

– 3 946

– 22 315

Changes in inventories

– 44 770

– 62 704

Changes in contract assets project business

– 5 340

– 10 311

Changes in other working capital items

– 1 884

– 3 851

Total changes in working capital

– 55 940

– 99 181

Changes in liabilities

Changes in accounts payable

– 36 642

47 335

Changes in contract liabilities

1 087

5 358

Used provisions

– 14 718

– 14 163

Changes in other current liabilities

– 11 208

9 232

Total changes in liabilities

– 61 481

47 762

in 1 000 CHF

Current and non-current financial debts

Balance at 31 / 12 / 2020

 140 169 

Foreign exchange differences

 – 413 

Change in scope of consolidation

 4 859 

Proceeds from financial debts

 68 385 

Repayments of financial debts

 – 73 542 

Non-cash foreign exchange effects

 – 5 348 

Balance at 31 / 12 / 2021

 134 110 

Foreign exchange differences

 – 383 

Proceeds from financial debts

 64 202 

Repayments of financial debts

 – 1 078 

Non-cash foreign exchange effects

 – 5 413 

Balance at 31 / 12 / 2022

 191 438 

in 1 000 CHF

Lease liabilities

Balance at 31 / 12 / 2020

 39 324 

Foreign exchange differences

 – 673 

Change in scope of consolidation

 571 

Lease additions

 10 447 

Lease liability payments

 – 10 480 

Lease disposals and remeasurements

 – 12 671 

Reclassification to liabilities associated with assets held for sale

 23 

Balance at 31 / 12 / 2021

 26 542 

Foreign exchange differences

 – 984 

Change in scope of consolidation

 1 940 

Lease additions

 12 487 

Lease liability payments

 – 8 218 

Lease disposals and remeasurements

 – 9 648 

Balance at 31 / 12 / 2022

 22 119 

56. Share based payments

For Group Management and certain other employees a share based payment plan exists. As part of this plan, Group Management members receive 50% (2021: 50%) and the other employees between 20% and 35% (2021: between 20% and 35%) of their bonus in shares. This equity-settled variable remuneration is measured at fair value and recognised as an increase in equity. The determination of the number of shares is based on the volume weighted average share price of 20 trading days, less a 20% discount for the restriction period. These shares granted have a restriction period of four years. A share based payment plan also exists for members of the Board of Directors. Under this plan, members receive a minimum of 50% of their compensation in shares. This plan has the same features as the one for Group Management.

In 2022, Group Management and certain other employees received for their work in the year 2021 a total of 72 712 allotted shares (2021: 75 255 shares) at a fair value of CHF 1.2 million (2021: CHF 1.2 million) and CHF 16.84 per share respectively (2021: CHF 16.52). The CEO received a larger portion of his base compensation for his employment 2022 in shares. He was allocated 60 000 shares (2021: 60 000) at a fair value of CHF 1.3 million (2021: CHF 0.9 million) and CHF 21.17 per share respectively (2021: CHF 15.00). In addition, he received a special compensation in 2021 in the form of 140 000 shares at a fair value of CHF 2.1 million or CHF 15.24 per share. The members of the Board of Directors received for their work from 23 April 2021 up to the Annual General Meeting on 22 April 2022 a total of 31 372 shares (2021: 32 503 shares) at a fair value of CHF 0.5 million (2021: CHF 0.5 million) and CHF 16.84 per share respectively (2021: CHF 16.52).

Personnel expenses in 2022 for share based payments totalled CHF 2.2 million (2021: CHF 4.8 million).

57. Related party transactions

Members of the Board of Directors and Group Management were compensated as follows:

in 1 000 CHF

2022

2021

Salaries and other short-term employee benefits

2 168

3 867

Share based payments

2 027

4 021

Pension and social security contributions

595

905

Total

4 790

8 793

The detailed disclosures regarding executive remuneration required by Swiss law are included in the compensation report.

The following transactions were carried out with related parties and the following balances were outstanding as of the balance sheet date respectively:

in 1 000 CHF

Purchase of services

Sale of goods

Purchase of goods

Balance on receivables

Balance on liabilities

2022

31 / 12 / 2022

Other related parties

216

3 759

175

241

5

Total

216

3 759

175

241

5

in 1 000 CHF

Purchase of services

Sale of goods

Purchase of goods

Balance on receivables

Balance on liabilities

2021

31 / 12 / 2021

Other related parties

2 876

32

18

31

Total

2 876

32

18

31

Goods sold in 2022 is almost exclusively Arbonia products acquired at market prices by companies owned by Michael Pieper (non-executive member of the Board of Directors) and companies in which a non-executive member of the Board of Directors is a director. Goods sold in 2021 were almost exclusively Arbonia products acquired at market prices by companies in which a non-executive member of the Board of Directors is a director. There were no guarantees granted as of the balance sheet date. Furthermore no provisions were required for receivables. Transactions and outstanding balances with associated companies are disclosed in note 35.

Major shareholders as of 31 December 2022 are disclosed in the notes to the 2022 financial statements of Arbonia AG.

58. Contingencies

There were no contingencies.

59. Events after the balance sheet date

No events occurred between the balance sheet date and the date of this report which could have a significant influence on the 2022 consolidated financial statements.

60. Subsidiaries

Share Capital in million

Interest in Capital 2022

Interest in Capital 2021

Room Climate

Shower Stalls

Doors

Services

HVAC Division

Arbonia Solutions AG

Arbon, CH

4.000

CHF

100%

100%

Prolux Solutions AG

Arbon, CH

1.000

CHF

100%

100%

Arbonia HVAC AG

Arbon, CH

0.250

CHF

100%

100%

Vasco Group NV

Dilsen-Stokkem, BE

32.500

EUR

100%

100%

Vasco BVBA

Dilsen-Stokkem, BE

20.029

EUR

100%

100%

Kermi s.r.o.

Stribro, CZ

195.000

CZK

100%

100%

PZP Heating a.s.

Dobre, CZ

7.200

CZK

100%

100%

Arbonia Riesa GmbH

Glaubitz, DE

0.614

EUR

100%

100%

Kermi GmbH

Plattling, DE

15.339

EUR

100%

100%

Vasco Group GmbH

Dortmund, DE

0.077

EUR

100%

100%

Tecnologia de Aislamientos y climatizacion, S.L.

Algete, ES

0.481

EUR

100%

100%

Cirelius S.A.

Avintes, PT

0.250

EUR

100%

Termovent Komerc d.o.o.

Belgrad, RS

0.064

RSD

100%

100%

Arbonia France Sàrl

Hagenbach, FR

0.600

EUR

100%

100%

Vasco Group Sarl

Nogent-sur-Marne, FR

2.000

EUR

100%

100%

Vasco Group Ltd

Horsham, GB

0.025

GBP

100%

100%

Sabiana S.p.A.

Corbetta, IT

4.060

EUR

100%

100%

Brugman Radiatorenfabriek BV

Tubbergen, NL

4.000

EUR

100%

100%

Vasco Group BV

Tubbergen, NL

9.518

EUR

100%

100%

Brugman Fabryka Grzejnikow Sp.z o.o.

Legnica, PL

20.000

PLN

100%

100%

Kermi Sp.z o.o.

Wroclaw, PL

0.900

PLN

100%

100%

Vasco Group Sp.z o.o.

Legnica, PL

0.500

PLN

100%

100%

AFG RUS

Moskau, RU

454.500

RUB

100%

100%

▲ Production / Sales

■ Trade

● Services / Finances

Share Capital in million

Interest in Capital 2022

Interest in Capital 2021

Room Climate

Shower Stalls

Doors

Services

Doors Division

Arbonia Doors AG

Arbon, CH

0.250

CHF

100%

100%

RWD Schlatter AG

Roggwil, CH

2.000

CHF

100%

100%

Bekon-Koralle AG

Dagmersellen, CH

1.000

CHF

100%

100%

Prüm-Türenwerk GmbH

Weinsheim, DE

3.500

EUR

100%

100%

Garant Türen- und Zargen GmbH

Amt Wachsenburg, DE

0.100

EUR

100%

100%

TPO Holz-Systeme GmbH

Leutershausen, DE

0.025

EUR

100%

100%

Joro Türen GmbH

Renchen, DE

0.125

EUR

100%

Arbonia Doors GmbH

Erfurt, DE

0.025

EUR

100%

100%

KIWI-KI GmbH

Berlin, DE

0.096

EUR

34%

25%

Koralle Sanitärprodukte GmbH

Vlotho, DE

2.070

EUR

100%

100%

Arbonia Glassysteme GmbH

Deggendorf, DE

1.278

EUR

100%

100%

Invado Sp.z o.o.

Ciasna, PL

20.000

PLN

100%

100%

Baduscho Dusch- und Badeeinrichtungen Produktions- und Vertriebsgesellschaft m.b.H

Margarethen am Moos, AT

0.036

EUR

100%

100%

Corporate Services

Arbonia AG

Arbon, CH

291.787

CHF

AFG International AG

Arbon, CH

1.000

CHF

100%

100%

Arbonia Schweiz AG

Arbon, CH

1.000

CHF

100%

100%

AFG Immobilien AG

Arbon, CH

12.000

CHF

100%

100%

Arbonia Management AG

Arbon, CH

0.250

CHF

100%

100%

Arbonia Services AG

Arbon, CH

0.250

CHF

100%

100%

AFG (Shanghai) Building Materials Co. Ltd.

Shanghai, CN

2.000

USD

100%

100%

Arbonia Deutschland GmbH

Plattling, DE

0.511

EUR

100%

100%

Skyfens Sp.z o.o.

Lublin, PL

13.005

PLN

100%

100%

▲ Production / Sales

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● Services / Finances