presentación 4t19 v6 en v2 - viscofan · 2020. 3. 10. · africa asia pacífic latam europe north...
TRANSCRIPT
1January-December 2019 results
January– December 2019February 28, 2020
2January-December 2019 results
<<<<<<<<
<<<<<<<<
<<<<<<<<1 MORE TO BE Progress
2 2019 Results
3 Initiatives and 2020 outlook
3January-December 2019 results
<<<<<<<<
<<<<<<<<
<<<<<<<<1 MORE TO BE Progress
2 2019 Results
3 Initiatives and 2020 outlook
4January-December 2019 results
Cellulose
Collagen
Plastics
Fibrous
Casings
market
Veggie
Technology
ServiceCost
Vision: The Casing Company
Leadership in the three key strategic axis
Reinforce
leadership in Cellulose and Collagen
Reach
leadesrship in
Plastics and Fibrous
A transformation to change the industry of casings
2019 Landmarks
Turnover record
Growth above the market
Exploring new opportunities
Acquisition of Nitta Casings
5January-December 2019 results
ServiceLargest commercial launch of new products: Natur, Veggie, Marathon, among others…
Diversification
Completion of the projectof a new cellulosetechnologyDevelopment of a new veggie technology
Higher productivespeedEmployeeproductivity
Cardiomesh. First implant in a human beingCommercialization of collagenhydrolysates
Sustainability Action Plan
Technology Cost
MORE TO BE 2019. Progression
2019
Proyectos
6January-December 2019 results
Russia
UK
Thailand
Costa Rica
USA
Nitta y Vector
Fibrous technology
improvement
Canada
Transform Pack
and Nitta
Mexico
Energetic model shift
Plastic production
stability
Uruguay
Higher capacity and
speed
Brazil
Higher converting capacity
Production stability
Germany
Veggie technology
Supralon
Production
improvement
Czech Republic
Improvement of productivity
4.0 Industry - converting
Serbia
Small-caliber collagen
capacity.
Large-caliber collagen
technology improvement
France
Supralon
Belgium
Vector
Spain
New cellulose and
fibrous technology
Increased collagen
capacity
Australia and New Zealand
China
Self-sufficiency
Higher flexibility and
production speed
MORE TO BE 2016-2019. A renewed industrial park, more efficient and global.
2016-2019
Progress
7January-December 2019 results
1.45
2016
54%
2017
1.55
60%
1.60
2018
59%Ordinary remuneration
Pay-out*
1.35
2015
52%
+1.3%
+20.0%
2019 vs. 2015
MORE TO BE. Increasing shareholder remuneration
1.62
2019
71%
ORDINARY DIVIDEND(€ per share)
+€5.3 Millon
cancellation of treasury shares in 2019
€0.13 Extraordinary dividend
8January – December 2019 results
<<<<<<<<
<<<<<<<<
<<<<<<<<1 MORE TO BE Progress
2 2019 Results
3 Initiatives and 2020 outlook
9January – December 2019 results
Revenue
EBITDA
EBITDA margin
Operating profit
Net Profit
2 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts.
Recurring 1
1 Recurring results. Exclude non-recurring impacts in operating profit, +€2.9 million in 2019 arising from the business combination from the acquisition of Nitta Casings Inc. (USA) and NittaCasings Canada Inc., the impairment of goodwill for Nanopack Technology & Packaging S.L. and the impact of the strike in the U.S. In 2018 +€19.1 million from the combination of businessesfrom the acquisition of the Globus companies in Australia and New Zealand, and the lawsuit with Mivisa.
€ million Guidance
+5.9%
+0.5%
-1.2 p.p.
849.7 +8.1%
2019 % y-o-y
198.0 +4.4%
23.3% -0.8 p.p.
127.4 +0.1 %
101.5 -6.4%
% y-o-yLike-for-like2
Profit before taxes 127.2 -0.9 %
Taxes -25.7 +29.6 %
Outperformance
In line
In line
2019Main financial figures
10January – December 2019 results
Business combinationnet of relate expenses
Goodwill impairment
Strike in the USA
Mivisa claim
Million € 2018
+€3.7Mn
EBITDA contribution
Net Profit contribution
+€15.4Mn
+€19.1Mn
+€15.3Mn
Globus
2019
+€8.7Mn
-€3.5Mn
-€2.3Mn
+€2.9Mn
+€4.1Mn
NittaCasings
Non-recurring impacts
11January – December 2019 results
New all-time in revenue driven by volume growth in all technologies, price/mix improvement, Globus and forex strength.
1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts.
REVENUE 2019.Growth contribution (€ million)
849.7
786.0
2018 Guidance
July
ForexCo-generationLike-for-like 1
casings
+46.4MN
2019 vs. 2018
+8.1%
+0.1MN+17.1MN
+5.9 p.p. +0.0 p.p. +2.2 p.p.
2019
825/840
Guidance
February
833/850
12January – December 2019 results
EUROPE AND ASIA PACIFIC
NORTH AMERICA LATAM
56.5%
14.9%
+7.3% +8.6% +10.3%+3.2%+6.3% +9.7%
vs. 2018 vs. 2018 vs. 2018 Like-for-like2Like-for-like2Like-for-like2
126.4114.6
243.1223.8
2018 2019 2018 2019 2018 2019
480.1447.6
REVENUE 2019. Breakdown by geographical area 1 (€ million) +8.1% +5.9%
vs. 2018 Like-for-like2
1 Revenue per origin of sales. 2 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts.
GROUP
Growth in all reporting areas combining volumes and price/mix growth.
28.6%
13January – December 2019 results
1Q 3Q
2018 2019
CO-GENERATION REVENUE (€ million)
10.5
REVENUE. Viscofan Group (€ million)
2Q1Q 3Q 4Q
2Q1Q 3Q 4Q
2Q
CASING SALES (€ million)
2018 2019
177.3
4T
187.8
197.9
186.8
11.1
192.2
180.3
11.9
197.0
11.2
201.2
191.2
10.0
197.0
11.6
208.6 208.2
204.4
11.6
215.9 +3.1%
+3.7%223.9
vs. 4Q18+7.5%
211.9+3.7%
vs. 4Q18+7.6%
12.0
vs. 4Q18+6.9%
Speeding up revenue in the second half of the year…
14January – December 2019 results
ForexCo-generation
REVENUE.Quarterly growth contribution
1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts.
Like-for-like1
casings
- 0.3p.p.+2.1p.p.
+ 2.9p.p.+4.6p.p.
+3.1p.p.
+0.2p.p.
1Q 2Q 1Q 2Q 1Q 2Q
vs. 4Q18
+6.3%
Like-for-like14Q19 +7.5%
+10.0p.p.
3Q 3Q
-0.2p.p.
+ 2.6p.p.
3Q
+6.0p.p.
4Q
+0.3 p.p.
4Q
+ 1.2p.p.
4Q
…driven by higher volume and price.
15January – December 2019 results
Europe, Asia and Pacific
REVENUE. Quarterly change
Like-for-like1Reported
2.5%4.2%
13.7%
8.7%
1Q 2Q 3Q 4Q
1.2%
3.5%
12.9%
7.7%
1Q 2Q 3Q 4Q
Volume recovery consolidation
in China, pig gut susbtitution
Progress in Continental Europe
1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts.
Growing in Europe and Asia
16January – December 2019 results
North America
REVENUE. Quarterly change
Like-for-like1Reported
Recovery in cellulose volume
Growth in collagen products
1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts.
10.6%
7.5%8.8%
7.8%
2.9%1.7%
4.1% 4.3%
Growing in North America
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
17January – December 2019 results
Latam
REVENUE. Quarterly change
Like-for-like1Reported
Demanding comparative base
due to the strong volumes
performance in 4Q18
Maintaining a solid
performance with higher
volumes in all technologies
1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts.
19.1%
6.1%
14.7%
2.4%
19.6%
5.9%
9.9%
4.3%
Growing in Latam
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
18January – December 2019 results
2 Cost of consumption = Net purchases +/- Change in inventories of finished and unfinished products.
Revenue Cost of consumption2
Personnelcosts
Other operatingcosts
Revenuelike-for-like1
EBITDAlike-for-like1
D&A Recurring3
EBIT
Revenue growth offsets higher energy costs and wage inflation.
+6.4%
+0.4%
+19.4%
+13.2%
+0.1%
+8.1%+4.4%
1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates in 2019 and non-recurring impacts.
+5.9%
+0.5%
P&L 2019. % year-on-year change
Recurring3
EBITDA
3 Recurring results. Exclude non-recurring impacts in operating profit, +€2.9 million in 2019 arising from the business combination from the acquisition of Nitta Casings Inc. (USA) and Nitta Casings Canada Inc., theimpairment of goodwill for Nanopack Technology & Packaging S.L. and the impact of the strike in the U.S. In 2018 +€19.1 million from the combination of businesses from the acquisition of the Globus companies inAustralia and New Zealand, and the lawsuit with Mivisa.
• Energy costs and CO2 emission
allowances (+14.4% vs. 2018)• Globus incorporation• Growth mix
EBITDA
-3.7%
• Investments in thenew Cáseda plant
19January – December 2019 results
46.3
48.6
44.6
50.3
45.9
48.9
1Q 2Q 3Q 4Q
2018
Quarterly recurring1 EBITDA. (€ million)
2019
1 Recurring results. Exclude non-recurring impacts in operating profit, +€2.9 million in 2019 arising from the business combination from the acquisition of Nitta Casings Inc. (USA) andNitta Casings Canada Inc., the impairment of goodwill for Nanopack Technology & Packaging S.L. and the impact of the strike in the U.S. In 2018 +€19.1 million from the combinationof businesses from the acquisition of the Globus companies in Australia and New Zealand, and the lawsuit with Mivisa.
50.852.5
-0.8% -8.3%
vs. 1Q18 Like-for-like2
+0.7% -1.7%vs. 2Q18 Like-for-like2
+13.8%+9.5%
vs. 3Q18 Like-for-like2
+4.4%+2.8%
vs. 4Q18 Like-for-like2
Recovering profitability in the second half of the year…
2 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates in 2019 and non-recurring impacts.
20January – December 2019 results
Recurring1 EBITDA 2019. y-o-y growth contribution (€ million)
189.7
2018
Like-for-like 2
+1.0MN
+0.5 p.p.
Forex
+7.3MN
+3.9 p.p.
2019
198.0
+4.4%
2019 vs. 2018
… offsetting a lower growth in the first half of the year.
1 Recurring results. Exclude non-recurring impacts in operating profit, +€2.9 million in 2019 arising from the business combination from the acquisition of Nitta Casings Inc. (USA) andNitta Casings Canada Inc, the impairment of goodwill for Nanopack Technology & Packaging S.L. and the impact of the strike in the U.S. In 2018 +€19.1 million from the combinationof businesses from the acquisition of the Globus companies in Australia and New Zealand, and the lawsuit with Mivisa.2 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates in 2019 and non-recurring impacts.
21January – December 2019 results
The main transformation projects are on track
CAPEX 2016-2019. Breakdown by type (€ million)
Capacity Processupgrade
Others EHS*
CAPEX 2019. Breakdown by region (€ million)
Spain
Other Europe, Asia Pacific
Latam
North America
12%
45%
32%
11%
71,6
€62,1Mn
*Environment, Health and Safety
62,1
86,7
107,2
2016 2017 2018 2019
22January – December 2019 results
79,
7
-198.0
26.7
62.1 -6.1 1.5
74.3
6.5 -4.1
42.5 19.3
27.689.4
Net bankdebt1 Dec’18
Capex
Workingcapital change
Forex and others
Acquisitions Share buyback
Directshareholder
remuneration3
Net bankdebt1 Dec’19
Leasing
IFRS 16
Other net
financial
liabilities
Net financial
debt 2
Dec’19
79.6
RecurringEBITDA
Tax paid
Results strength, lower capex needs and the reduction in working capital lead to lowerindebteness.
2 Net financial debt= Net bank debt + Non-current and current other financial liabilities + IFRS 16Leasing impact – Non-current and current financial assets.
3Direct remuneration: Includes €0.95 per share 2018 FY final dividend paid in June 2019 and €0.65 per share 2019 FY interim dividend paid in December 2019
1 Net bank debt = Non-current bank borrowings + Current bank borrowings – Cash and equivalents.
NET BANK1AND NET FINANCIAL DEBT2 bridge (€ million)
23January – December 2019 results
<<<<<<<<
<<<<<<<<
<<<<<<<<1 MORE TO BE Progress
2 2019 Results
3 Initiatives and 2020 outlook
24January – December 2019 results
Acquisition EV: €12.8 Mn 2020e figures: Revenue €33 Mn, EBITDA €1 Mn, Capex €6 Mn
€
€3/4 Mn savings goal in 2021Higher sproduction speed, lower waste, savings in RawMaterials and Other Operating expenses
Collagen casings leadership in the USViscofan + Nitta Casings
Completing our footprintCollagen casings, coextrusion and biomaterials
Nitta Casings acquisition drives up our positioning and leadership in collagen casings.
25January – December 2019 results
Extrusion Converting Served market
All markets benefit from a local service thanks to our global presence in collagen casings
26January – December 2019 results
CelluloseCollagen Fibrous Plastic
VISCOFAN´S FOOTPRINT. Available capacity
Africa
Asia
Pacífic
Latam
Europe
North
America
Vegetable
Extrusion Converting Long term
“share”
opportunity
Long term
"growth”
opportunity
We have built the most comprehensive commercial and productive footprint of the market.
27January – December 2019 results
Higher animal protein consumptionFAO: Annual estimated growth at 1/2% in 2020-2025
Searchig for a larger product offerFeeding habits globalization
Searching for industralizationUncertainty and inflation in animal gut supply
Emerging areas. Focused on organic growth
Casings market in €
30%
33%
24%
11%2%
North America
Europe
Asia
LatamAfrica
28January – December 2019 results
Global footprintFacilities and broad commercial experience in Asia and Latam
The only one with the main technologiesThe largest product portfolio in the industry, more than13,000 sold references in 2019
Suitable product to replace pig gutNatur casing launched in May 2019.
Viscofan´s approach
Emerging areas. Focused on organic growth
Higher animal protein consumptionFAO: Annual estimated growth at 1/2% in 2020-2025
Searchig for a larger product offerFeeding habits globalization
Searching for industralizationUncertainty and inflation in animal gut supply
29January – December 2019 results
Consumer looking for “convenience”Higher variety, flavours, food safety, health,…
Higher vegetable proteinMore vegetarian, vegan and flexitarian
Searching high added value productsto save on costs, production stages and to offer a widerproduct portfolio.
Developed areas. Focused on high value addedproducts
Casings market in €
30%
33%
24%
11%2%
North America
Europe
Asia
LatamAfrica
30January – December 2019 results
More casings varietyEg) New casings transfering flavours, aromas, colours, …
New Veggie technologySales growth and great acceptance in the market
Viscofan´s approach
Consumer looking for “convenience”Higher variety, flavours, food safey, health,…
Higher vegetable proteinMore vegetarian, vegan and flexitarian
Searching high added value productsto save on costs, production stages and to offer a widerproduct portfolio.
Developed areas. Focused on high added value products
The only one with the main technologiesThe largest product portfolio in the industry, more than13,000 sold references in 2019
31January – December 2019 results
Diversification and new products
MarathonNaturFunctional
solutions
Sustainable
plasticsVeggie
Take production
yields to the next
level with
extra-long sticks
Collagen casings
with extra glossy
appearance
and superior
productivity.
A natural,
edible choice
Casings adding
new colour,
flavour, and
species in food
Casings with reduced
thickness and
developmentof a
natural-based casing
Titanium
fibrousThe next
generation of
fibrous casing
32January – December 2019 results
Soluble Collagen Hydrolysate. Nutritional supplement to improve the health of the skin, bones or joints
Collagen hydrolysate plant installed in Weinheim
Commercial drive through distributors.
Device safety test phaseA sample of 10 patients with myocardial insufficiency
Expanding borders with new uses of collagen
33January – December 2019 results
Cáseda. The best technology in the industry in cellulose and fibrous has become a reality
€86 million investmentCarried out in the period 2016-2019
Cellulose. Producing 50% of the Group total capacityYear-on-year savings of €10 million + Improvements in the learning curve
Fibrous. Looking for leadership……in a market worth €300 Mn with a better product, technology and time-to-market to the European customers
34January – December 2019 results
2015 2016 2017 2018 2019
694.7 691.2
734.1 741.4
804.5
CASINGS REVENUE AND MARKET SHARE (€ million)
30%
36%
NittaCasings
+4 p.p.Viscofan´s market share gain
34%
2%
A stronger leader…
35January – December 2019 results
100 99
106107
116
96
10199
103
94
98 9495
2015 2016 2017 2018 2019 e**
Top 6 players
Top 6 ex Viscofan
CASINGS PLAYERS* REVENUE (Base 100 year 2015)
* IncludesViscofan, Viskase, Devro, Kalle, Visko Teepak and Shenguan
** Results release and internal estimates
…in a growing market.
36January – December 2019 results
10095
99 9894
87 88
78
72
78 77
58
49
2015 2016 2017 2018 2019 e**
CASINGS PLAYERS* EBITDA (Base 100 year 2015)
Top 6 players
Top 6 ex Viscofan
Improving leadership also in EBITDA within and adverse environment.
* IncludesViscofan, Viskase, Devro, Kalle, Visko Teepak and Shenguan
** Results release and internal estimates
37January – December 2019 results
Rawmaterialsstability
Improvement of the efficiency of plants
New technologyin Cáseda
Integration of acquiredcompanies
Optimise
operations
Challenge
Challenge 2020. Optimise our operations and improve our margins
38January – December 2019 results
Capacity
27%
Processupgrade
19%
Recurring
28% 26%
€54MnCapex 2020e
Sustainability
Adapting cogeneration engines for hydrogen fuel
Water treatment plant expansion in Cáseda
Use of non-fossil gases
Safety and ergonomics projects
CAPEX BREAKDOWN 2020e (€ million)
Optimising our operations
39January – December 2019 results
A year characterized by cash flow expansion.
204 211 209 201
215-220
EBITDA - CAPEXOperating Cash Flow (Mn €) =
OPERATING CASH FLOW (€ Million)
117 104 137 >160
87
107
7262
2016 2017 2018 2019 2020e
139
54
+16%vs 2019
40January – December 2019 results
33
1
-1
6
870-888(+2%/4%)
214-219(+6%/9%)
113-116(+7%/10%)
48(-23%)
Guidance 2020
Revenue
EBITDA
Net Profit
Capex
Million € Nitta CasingsTraditional Viscofan
903-921(+6%/8%)
215-220(+7%/9%)
112-115(+6%/9%)
54(-13%)
Viscofan Group
US$/€: 1.13
41January – December 2019 results
The acquisition of Nitta Casings reinforces our leadership in collagen casings and completes our productive portfolio in North America.
Robust finantial position and shareholder remuneration
A unique position in the industry that makes us await revenue, EBITDA and net result growth for 2020, together with a lower need for investment.
Conclusions
New all-time high in annual revenue led by the exceptional performance in the second half of the year that allow us to keep gaining market share.
We have carried out a transformation that puts us in a unique position for the future of the Group at the same time as we continue taking advantage of growth opportunities in the casing market and other business.
42January – December 2019 results
Reported
+6.3%
+2.8%
-0.8p.p.
223.9 +7.5%
4Q19 % y-o-y
52.5 +4.4%
23.5% -0.7p.p.
35.3 +3.1%
27.1 -10.3%
4Q19 % y-o-y
223.9 +7.5%
57.7 +5.3%
25.8% -0.5p.p.
40.5 +4.5%
32.9 -6.0%
Recurring 1
Revenue
EBITDA
EBITDA margin
Operating profit
Net profit
% y-o-yLike-for-like 2
Appendix. 4Q19. Main financial figures
(€ million)
2 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts.
1 Recurring results. Exclude non-recurring impacts in operating profit, +€2.9 million in 2019 arising from the business combination from the acquisition of Nitta Casings Inc. (USA) and NittaCasings Canada Inc., the impairment of goodwill for Nanopack Technology & Packaging S.L. and the impact of the strike in the U.S. In 2018 +€19.1 million from the combination of businessesfrom the acquisition of the Globus companies in Australia and New Zealand, and the lawsuit with Mivisa.
43January – December 2019 results
Reported
+5.9%
+0.5%
-1.2p.p.
849.7 +8.1%
2019 % y-o-y
198.0 +4.4%
23.3% -0.8p.p.
127.4 +0.1%
101.5 -6.4%
2019 % y-o-y
849.7 +8.1%
201.0 -3.7%
23.7% -2.9p.p.
130.3 -11.0%
105.6 -14.7%
Recurring 1
Revenue
EBITDA
EBITDA margin
Operating profit
Net profit
% y-o-yLike-for-like 2
Appendix. 2019. Main financial figures
(€ million)
2 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts.
1 Recurring results. Exclude non-recurring impacts in operating profit, +€2.9 million in 2019 arising from the business combination from the acquisition of Nitta Casings Inc. (USA) and NittaCasings Canada Inc., the impairment of goodwill for Nanopack Technology & Packaging S.L. and the impact of the strike in the U.S. In 2018 +€19.1 million from the combination of businessesfrom the acquisition of the Globus companies in Australia and New Zealand, and the lawsuit with Mivisa.
44January – December 2019 results
Appendix. Alternative Performance MeasuresThe Alternative Performance Measures included in this report are as follows:
• The EBITDA, or operating profit before depreciation and amortisation, is calculated excluding depreciation and amortisation costs from the operating profit. The EBITDA is a measure that is commonly reported and widespread among analysts, investors and other stakeholders in the casing industry. The Viscofan Group uses this measure to monitor the business' development and to establish operational and strategic objectives in Group companies. However, it is not a defined indicator in IFRS and, therefore, it may not be compared with other similar indicators employed by other companies in their reports.
• Cost of consumption: This is calculated as the net amount of supplies plus the change in finished and unfinished products. Management monitors cost of consumption as one of the main cost components for Viscofan. The weight of net revenue for this cost component on revenue or gross margin is also analysed to study the operating margin's development. However, it is not a defined indicator in IFRS and cost of consumption must not be considered a substitute for the different items in the profit and loss account that comprise them. Furthermore, it may not be compared with other similar indicators employed by other companies in their reports.
• Net bank debt: This is calculated as non-current borrowings plus current borrowings netted from cash and cash equivalents. Management considers net bank debt to be relevant to shareholders and other stakeholders as it provides an analysis of the Group's solvency. However, net bank debt should not be considered a substitute for gross bank debt in the consolidated balance sheet, nor other liability or asset items that may affect the Group's solvency.
• Like-for-like revenue and EBITDA: This measure excludes the impact of exchange rate variations on the comparable previous period and the non-recurring impacts of the business in order to present a homogeneous comparison of the Viscofan Group's development. However, like-for-like revenue and EBITDA are not defined indicators in IFRS and, therefore, they may not be compared with other similar indicators employed by other companies in their reports, nor may they be considered a substitute for the business development indicators defined in IFRS.
45January – December 2019 results
Appendix. Disclaimer
This document may include statements about intentions, expectations or forecasts of the Company additional to the mandatory financial reporting whose sole purpose is to provide information more accurately about the perspectives of future behaviours.
Such intentions, expectations or forecasts do not constitute any guaranties of compliance and involve risks, uncertainties and other relevant factors that could cause actual developments and results to differ materially from those states in such forward-looking statements.
This circumstance must be taken into account mainly for all persons or entities that may have to take decision, develop or spread opinions relative to values issued by the Company and particularly by analysts and investors that handle this document.
The financial statements contained in this document have been prepared under International Financial Reporting Standards (IFRS). This financial statements has not been audited and consequently is susceptible to potential future modifications.