Annual Report 2017 Enovos Luxembourg S.A.

48 49 Part I Our Mission 6 Part II Our Achievements 14 Part III Annual Accounts 22 Annual Report 2017 Enovos Luxembourg Note 7 – Current assets 7.1. Stocks As of 31 st December 2017, the Company owns gas stocks in France and Germany valued at EUR 15,216,948 (2016: EUR 12,277,136). No additional value adjustment has been recognised in 2017 under the caption “Value adjustments in respect of current assets” (2016: EUR 0). 7.2. Trade debtors Trade debtors are mainly related to energy sales and trading activities. Impairments of current assets are calculated for the customers for whom realisation of the outstanding receivable is not assured. Value adjustments are recorded in the income statement under “Value adjustments in respect of current assets” for an amount of EUR 1,570,857 (2016: EUR 1,671,799). As reversal of value adjustments on trade debtors of EUR 2,515,476 (2016: EUR 3,594,366) have been recorded under the same caption, the total amounts to a net positive value adjustment of EUR 944,619 for 2017 (2016: 1,922,567). Note 8 – Amounts owed by and owed to affiliated undertakings Enovos Luxembourg S.A. has entered into a cash-pooling agreement with Encevo S.A., under which the Company pays/receives an interest rate based on Euribor 1 month plus or minus a margin for loans and deposits, respectively. As of 31 st December 2017, the Company is owed a cash amount of EUR 92,440,582 by the parent company, which is recorded under the heading “Amounts owed by affiliated undertakings” (2016: EUR 81,041,796). Included under the same heading are receivables of EUR 89,326,760, relating to commercial activities with affiliated undertakings (2016: EUR 92,561,526). Included under the heading “Amounts owed to affiliated undertakings” are debts of EUR 35,807,270, which relate to commercial activities (2016: EUR 18,683,585). The long-term loan agreement of EUR 200,000,000 is related to the back-to- back shareholder loan by Encevo S.A. from the proceeds of the seven-year retail bond issued in June 2012 in consideration of the financing of the Company’s projects, including investments in conventional and renewable energy generation. An accrual for interest of EUR 6,049,315 is posted as of 31 st December 2017 (2016: 6,049,315). An amount of EUR 21,400, representing the Company’s tax debts, was owed to Encevo S.A. under the system of fiscal unity with its parent company (see note 12). Note 9 – Prepayments In 2017, this heading mainly includes a prepaid gas invoice for an amount of EUR 16,160,486 relating to the subsequent year. Furthermore, are included French capacity guarantees with delivery year 2018 for an amount of EUR 840,839. Are also included transaction fees of EUR 242,766 and EUR 240,830 following the sale of the windfarms La Benâte Energies S.à r.l. and Ferme Eolienne de la Côte du Gibet S.à r.l. in January 2018. Finally, EUR 9,680,564 relate to realised power portfolio positions from 2018 to 2021 (2016: EUR 22,508,025). Note 10 – Capital and reserves As at 31 st December 2017, the Company’s subscribed capital was EUR 119,224,100. The capital is fully paid-up and represented by 4,768,964 shares, with a nominal value of EUR 25 each. The Company is required to allocate a minimum of 5% of its annual net income to a legal reserve, until this reserve equals 10% of the subscribed share capital. This reserve may not be distributed. The reserve is already fully allocated. The movements of the year are as follows: 31/12/2016 Allocation of the previous year's profit Distribution of dividends Profit or loss for the financial year 31/12/2017 € € € € € Subscribed capital 119,224,100 0 0 0 119,224,100 Share premium account 122,458,503 0 0 0 122,458,503 Legal reserve 11,922,410 0 0 0 11,922,410 Other reserves 84,715,759 0 0 0 84,715,759 Other available reserves 61,100,000 0 0 0 61,100,000 Other non available reserves 23,615,759 0 0 0 23,615,759 *2) Profit or loss brought forward 51,004,413 25,229,050 *1) (12,590,065) 0 63,643,398 Profit or loss for the financial year 25,229,050 (25,229,050) *1) 0 (18,288,050) (18,288,050) Total 414,554,235 0 (12,590,065) (18,288,050) 383,676,120 1) Decision of the ordinary general meeting of shareholders of 9 th May 2017. 2)The other non-available reserves are a temporarily non-taxable capital gain of EUR 23,615,759 resulting from the transfer of the building in Strassen to Real Estate Strassen S.A. in 2012, a subsidiary of Enovos Real Estate Luxembourg S.A. The capital gain becomes taxable only when the latter subsidiary is sold.