Annual Report 2017 Enovos Luxembourg S.A.

42 43 Part I Our Mission 6 Part II Our Achievements 14 Part III Annual Accounts 22 Annual Report 2017 Enovos Luxembourg Note 4 – Intangible assets Transactions for the year were as follows: Concessions, patents, licences, trademarks and similar rights and assets Goodwill acquired for valuable consideration Payments on account and intangible assets under development TOTAL 2017 TOTAL 2016 € € € € € Gross book value - opening balance 109,150,125 5,280,000 5,963,339 120,393,464 112,378,039 Additions for the year 4,136,816 0 2,220,998 6,357,814 8,269,116 Disposals for the year 0 0 0 0 0 Transfers for the year 4,618,522 0 (4,618,522) 0 (253,691) Gross book value - closing balance 117,905,463 5,280,000 3,565,815 126,751,278 120,393,464 Accumulated value adjustments - opening balance (52,323,501) (3,030,000) 0 (55,353,501) (49,827,907) Allocations for the year (6,443,591) (375,000) 0 (6,818,591) (5,525,594) Exceptional depreciation for the year (2,457,481) 0 0 (2,457,481) 0 Transfers for the year 0 0 0 0 0 Accumulated value adjustments - closing balance (61,224,573) (3,405,000) 0 (64,629,573) (55,353,501) Net book value - closing balance 56,680,890 1,875,000 3,565,815 62,121,705 65,039,963 The additions and transfers for the year of EUR 4,136,816 and EUR 4,618,522 respectively concern mainly software investments related to the required separation of the Creos client energy data management systems from Enovos Luxembourg ones via the implementation of a standardized electronic market communication. A public consultation has been made by the regulator on this market communication among all market participants. In 2017, the Board of Directors decided to post an exceptional depreciation of EUR 2,457,481 related to an IT platform that will no longer be used by the Company. On 1 st January 2013, the Company started buying a flat base load of 50 MW power from two pulverised coal-fired power plants, under the terms and conditions of a long-term contract signed with Innogy SE (former RWE AG) (see also note 22). Its share of financing the plants of EUR 89,466,245 has been fully paid up and is depreciated over a period of 25 years, which corresponds to the duration of the commitment. Owing to a new assessment of the profitability of the contract in the context of the Company’s impairment-testing process, the Board of Directors decided that no additional impairment is necessary as of 31 st December 2017 (exceptional impairment of EUR 19,000,000 in 2015 and EUR 14,000,000 in 2014). The Board of Directors is further of the opinion that no other exceptional depreciation of the intangible assets are necessary. Defined contribution plan A defined contribution plan is a pension plan under which the Company pays fixed contributions to a separate entity and has no legal or constructive obliga- tions to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions paid are directly recorded in the profit and loss account during the year in which they are paid. The commitment of the Company is limited to the contributions that the Company has agreed to pay into the fund on behalf of its employees. Creditors Creditors are recorded at their reimbursement value. Where the amount repay- able on account is greater than the amount received, the difference is recorded in the profit and loss account when the debt is issued. All fixed costs related to setting up the facilities are depreciated over the duration of the loan. Deferred income This liability item includes income received during the financial year or preceding years but relating to a subsequent financial year. Net turnover Net turnover comprises sales of gas and electricity as well as of energy related services provided as part of the Company’s ordinary activities, net of discounts, value-added tax and other taxes directly linked to sales. Trading sales are not included, as they are shown net of supplies, which is part of the policy to consider trading as a means to reduce procurement costs. Other operating income Other operating income comprises all income only indirectly linked to normal business activities. Income from participating interests Dividend income is recorded when dividends are declared.