Annual Report 2017 Enovos Luxembourg S.A.

36 37 Part I Our Mission 6 Part II Our Achievements 14 Part III Annual Accounts 22 Annual Report 2017 Enovos Luxembourg Profit and loss account for the year ended 31 st December 2017 Notes to the annual accounts Note 1 – General Information Enovos Luxembourg S.A. (the “Company”) was incorporated in Luxembourg under the name of Cegedel Participations S.A. on 2 nd August 1993 as a société anonyme for an unlimited period. The Company is registered under RCS No. B44683. The Company was renamed Enovos Luxembourg S.A. in 2009. The registered office of the Company is established at 2, Domaine du Schlassgoard L-4327 in Esch-sur-Alzette. The main purpose of Enovos Luxembourg S.A. is to supply electricity and gas to customers in Luxembourg and abroad, and to perform trading activities. Enovos Luxembourg S.A. also holds several stakes in the energy-generation business, including significant interests in power-generation assets based on conventional and renewable energies. Annual accounts The Company’s financial year runs from 1 st January to 31 st December each year. Enovos Luxembourg S.A. accounts are consolidated into the financial state- ments of its sole shareholder, Encevo S.A., forming at once the largest and the smallest body of the undertakings of which the Company forms part as a subsidiary undertaking. Encevo S.A. is established in 2, Domaine du Schlass- goard, L-4327 Esch-sur-Alzette. The consolidated accounts are available at this address. Note 2 – Authorisations Following the two European directives 2003/54 and 55, of 26 th June 2003, concerning common rules for the internal markets in electricity and natural gas, and the laws that transposed these directives into national law, namely the laws of 1 st August 2007, as amended by the Laws of 18 th December 2009, 17 th October 2010 and 7 th August 2012, regarding the organisation of the electricity and natural gas markets, transportation and distribution grid-management ac- tivities have been legally separated from the other activities of electric or gas power generation and sale. Note 3 – Summary of significant accounting policies Basis of preparation The annual accounts have been prepared in accordance with Luxembourg legal and regulatory requirements, under the historical cost convention. Accounting policies and valuation rules are, besides the ones laid down by the amended Law of 19 th December 2002, determined and applied by the Board of Directors. The preparation of annual accounts requires the use of certain critical account- ing estimates. It also requires the Board of Directors to exercise its judgment in the process of applying the accounting policies. Changes in assumptions may have a significant impact on the annual accounts in the period in which the assumptions changed. The Board of Directors believes that the underlying as- sumptions are appropriate and that the annual accounts therefore present the financial position and results fairly. PROFIT AND LOSS ACCOUNT Notes 2017 2016 Denominated in EUR € € Net turnover Note 14 1,051,073,659 1,183,479,638 Work performed by the undertaking for its own purposes and capitalised 1,707,390 1,382,462 Other operating income Note 15 574,863 17,185,110 Raw materials and consumables and other external expenses a) Raw materials and consumables (988,610,836) (1,100,904,314) b) Other external expenses (32,286,925) (28,219,787) Staff costs Note 16 a) Wages and salaries (19,402,449) (18,508,920) b) Social security costs i) relating to pensions (1,275,629) (1,330,491) ii) other social security costs (1,121,447) (1,002,436) c) Other staff costs (1,575,149) (1,305,304) Value adjustments tangible and intangible fixed assets a) in respect of formation expenses and of tangible and intangible fixed assets (12,112,364) (8,234,907) b) in respect of current assets Note 7 944,619 1,922,567 Other operating expenses (10,709,274) (1,208,984) Income from particpating interests Note 17 a) derived from affiliated undertakings 25,538,549 16,592,300 b) other income from participating interests 743,344 525,615 Other interest receivable and similar income a) derived from affiliated undertakings 1,921,040 1,957,614 b) other interest and similar income 1,296,446 1,775,738 Value adjustments in respect of financial assets and of investments held as current assets Note 6, 18 (16,670,130) (20,923,735) Interest payable and similar expenses a) concerning affiliated undertakings (12,546,657) (12,739,767) b) other interest and similar expenses (5,069,978) (5,203,349) Tax on profit or loss Note 8, 12.1 (372,097) 0 Profit or loss after taxation (17,953,025) 25,239,050 Other taxes not shown under items 1 to 16 (335,025) (10,000) Profit or loss for the financial year (18,288,050) 25,229,050 The notes in the annex form an integral part of the annual accounts.