V. INCOME STATEMENT DISCLOSURES
(€ thousands) |
2016 |
2015 |
Revenue from the sale of goods and goods purchased and held for resale |
1,915,739 |
2,086,660 |
Services sales revenue |
249,913 |
248,171 |
|
2,165,652 |
2,334,831 |
The impact of the percentage of completion method pursuant to IAS 11 and the breakdown of sales revenue by segment (Pumps, Valves and Service) is presented in the segment reporting.
(€ thousands) |
2016 |
2015 |
Income from disposal of assets |
1,478 |
2,769 |
Reversal of impairment losses on receivables |
9,277 |
10,032 |
Currency translation gains |
3,629 |
2,450 |
Income from the reversal of provisions |
8,400 |
14,222 |
Miscellaneous other income |
24,443 |
20,479 |
|
47,227 |
49,952 |
Miscellaneous other income relates primarily to commission income, rental and lease income, insurance compensation, grants and subsidies. Income from government grants for individual projects (for example, for research activities) amounted to € 2,564 thousand (previous year: € 2,846 thousand).
(€ thousands) |
2016 |
2015 |
Cost of raw materials and production supplies consumed and of goods purchased and held for resale |
789,298 |
888,152 |
Cost of purchased services |
84,858 |
91,379 |
|
874,156 |
979,531 |
(€ thousands) |
2016 |
2015 |
Wages and salaries |
641,451 |
661,374 |
Social security contributions and employee assistance costs |
129,574 |
126,876 |
Pension costs |
27,725 |
31,000 |
|
798,750 |
819,250 |
Pension costs are reduced by the interest component of provisions for pensions and similar obligations, which is reported as an interest cost in financial income / expense.
EMPLOYEES
|
Average for the year |
At reporting date |
|
2016 |
2015 |
31 Dec. 2016 |
31 Dec. 2015 |
Wage earners |
7,311 |
7,512 |
7,091 |
7,351 |
Salaried employees |
8,125 |
8,364 |
8,015 |
8,415 |
|
15,436 |
15,876 |
15,106 |
15,766 |
Apprentices |
477 |
438 |
466 |
430 |
|
15,913 |
16,314 |
15,572 |
16,196 |
The first-time inclusion of fully consolidated companies in Slovenia and Finland led to an increase of 21 in the average number of employees over the year and in the total number at the reporting date.
(€ thousands) |
2016 |
2015 |
Losses from asset disposals |
1,270 |
3,258 |
Losses from current assets (primarily impairment losses on receivables) |
12,744 |
12,798 |
Currency translation losses |
2,222 |
2,778 |
Other staff costs |
31,157 |
28,253 |
Repairs, maintenance, third-party services |
85,816 |
95,546 |
Selling expenses |
73,835 |
90,658 |
Administrative expenses |
83,657 |
94,038 |
Rents and leases |
26,898 |
28,923 |
Miscellaneous other expenses |
54,842 |
55,215 |
|
372,441 |
411,467 |
Miscellaneous other expenses relate primarily to warranties, contractual penalties and additions to provisions.
16
Financial income / expense
(€ thousands) |
2016 |
2015 |
Financial income |
6,612 |
7,682 |
Income from equity investments |
147 |
– |
thereof from other investments |
(147) |
(–) |
Interest and similar income |
6,357 |
7,635 |
thereof from other investments |
(37) |
(76) |
thereof from investments accounted for using the equity method |
(20) |
(12) |
Other financial income |
108 |
47 |
Financial expense |
– 20,672 |
– 22,360 |
Interest and similar expenses |
– 19,885 |
– 19,414 |
thereof to other investments |
(1) |
(–) |
Write-downs on other investments |
– |
– 2 |
Write-downs on investments accounted for using the equity method |
– |
– 2,700 |
Expenses from the remeasurement of financial instruments |
– 62 |
– 178 |
Other financial expense |
– 725 |
– 66 |
Income / expense from / to investments accounted for using the equity method |
– 1,342 |
4,373 |
Financial income / expense |
– 15,402 |
– 10,305 |
Interest and similar expenses include the interest cost on pension provisions amounting to € 11,940 thousand (previous year: € 11,577 thousand). The change in the financial income / expense is mainly due to the negative result from investments accounted for using the equity method. Write-downs on investments accounted for using the equity method in the previous year were attributable to a German joint venture that faced ongoing economic difficulties.
All income-related taxes of the consolidated companies and deferred taxes are reported in this item. Other taxes are reported in the income statement after other expenses.
(€ thousands) |
2016 |
2015 |
Effective taxes |
41,160 |
43,538 |
Deferred taxes |
– 14,296 |
– 2,316 |
|
26,864 |
41,222 |
€ 875 thousand (previous year: € 85 thousand) of the effective taxes in the year under review related to prior-period tax refunds and € 2,923 thousand (previous year: € 2,912 thousand) to tax arrears.
RECONCILIATION OF DEFERRED TAXES
(€ thousands) |
2016 |
2015 |
Change in deferred tax assets |
– 27,806 |
2,493 |
Change in deferred tax liabilities |
– 664 |
1,015 |
Change in deferred taxes recognised in balance sheet |
– 28,470 |
3,508 |
|
|
|
Change in deferred taxes taken directly to equity |
13,999 |
– 5,983 |
Changes in consolidated Group / CTA* / Other |
175 |
159 |
Deferred taxes recognised in income statement |
– 14,296 |
– 2,316 |
ALLOCATION OF DEFERRED TAXES
|
Deferred tax assets |
Deferred tax liabilities |
(€ thousands) |
2016 |
2015 |
2016 |
2015 |
Non-current assets |
1,828 |
1,619 |
31,309 |
33,543 |
Intangible assets |
1,152 |
1,019 |
279 |
484 |
Property, plant and equipment |
612 |
479 |
30,964 |
32,932 |
Non-current financial assets |
64 |
121 |
66 |
127 |
Current assets |
57,152 |
59,132 |
45,621 |
54,236 |
Inventories |
48,516 |
52,413 |
1,924 |
94 |
Receivables and other current assets |
7,096 |
6,719 |
43,554 |
54,142 |
Assets held for sale |
1,540 |
– |
143 |
– |
Non-current liabilities |
96,462 |
82,244 |
25 |
222 |
Provisions |
96,305 |
82,055 |
– |
183 |
Other liabilities |
157 |
189 |
25 |
39 |
Current liabilities |
20,949 |
17,789 |
8,573 |
8,765 |
Provisions |
11,248 |
7,929 |
1,201 |
719 |
Other liabilities |
9,701 |
9,860 |
7,372 |
8,046 |
Tax loss carryforwards |
8,928 |
7,303 |
– |
– |
Gross deferred taxes – before offsetting |
185,319 |
168,087 |
85,528 |
96,766 |
Offset under IAS 12.74 |
– 73,153 |
– 83,727 |
– 73,153 |
– 83,727 |
Net deferred taxes – after offsetting |
112,166 |
84,360 |
12,375 |
13,039 |
As at the reporting date, deferred tax assets of € 97,825 thousand (previous year: € 66,867 thousand) were recognised, arising from companies posting a loss in the financial year or previous year, whose realisation exclusively depends on the creation of future profit. Based on the planning figures available, we expect realisation to take place.
The taxes included under equity can be broken down as follows:
INCOME TAXES INCLUDED UNDER EQUITY
(€ thousands) |
2016 |
2015 |
Remeasurement of defined benefit plans |
– 47,278 |
18,087 |
Taxes on income |
13,546 |
– 5,454 |
Currency translation differences |
20,223 |
1,158 |
Taxes on income |
– |
– |
Changes in the fair value of financial instruments |
– 1,622 |
3,077 |
Taxes on income |
453 |
– 529 |
Other comprehensive income |
– 14,678 |
16,339 |
As in the previous year, the introduction of new local taxes had no effects in the year under review. Changes in foreign tax rates led to a reduction in the total tax expense of € 664 thousand (previous year: reduction of € 591 thousand).
As far as net income from affiliates and other equity investments is concerned, withholding taxes incurred in connection with distributions and German taxes incurred are recognised as deferred taxes if these gains are expected to be subject to corresponding taxation, or there is no intention of reinvesting them in the long term. No deferred tax liabilities were recognised for temporary differences of € 6,529 thousand (previous year: € 7,205 thousand) in relation to affiliates and associates as it is unlikely that these temporary differences will be reversed in the foreseeable future.
We did not recognise deferred tax assets from loss carryforwards amounting to € 41,720 thousand (previous year: € 49,641 thousand) because it is unlikely that there will be sufficient taxable profit available in the near future against which these deferred tax assets can be utilised. They are largely available for an indefinite period.
Deductible temporary differences for which no deferred tax assets had to be set up amounted to € 9,145 thousand (previous year: € 9,736 thousand).
RECONCILIATION OF INCOME TAXES
(€ thousands) |
2016 |
2015 |
Earnings before income taxes (EBT) |
74,641 |
93,392 |
Calculated income taxes on the basis of the applicable tax rate (30 % as in the previous year) |
22,392 |
28,018 |
Differences in tax rates |
– 793 |
– 331 |
Change in write-downs on deferred taxes on loss carryforwards and unused tax loss carryforwards |
– 108 |
2,357 |
Tax-exempt income |
– 1,184 |
– 4,071 |
Non-deductible expenses |
1,231 |
2,211 |
Impairment loss on goodwill |
1,542 |
3,535 |
Prior-period taxes |
2,048 |
2,827 |
Non-deductible foreign income tax |
3,396 |
2,851 |
Investments accounted for using the equity method |
662 |
– 306 |
Deferred taxes not recognised |
– 273 |
2,181 |
Other |
– 2,049 |
1,950 |
Current taxes on income |
26,864 |
41,222 |
Current tax rate |
36 % |
44 % |
The unchanged applicable tax rate of 30 % is a composite rate resulting from the current German corporation tax, solidarity surcharge and trade tax rates.
18
Earnings after income taxes – Non-controlling interests
The net profit attributable to non-controlling interests amounts to € 15,190 thousand (previous year: € 13,259 thousand) and the net loss attributable to non-controlling interests amounts to € 356 thousand (previous year: € 374 thousand). They relate primarily to PAB GmbH, Frankenthal, Germany, and the interests it holds, as well as to our companies in India.
|
|
2016 |
2015 |
Earnings after income taxes attributable to KSB AG shareholders |
€ thousands |
32,943 |
39,285 |
Additional dividend attributable to preference shareholders (€ 0.26 per preference share) |
€ thousands |
– 225 |
– 225 |
|
€ thousands |
32,718 |
39,060 |
|
|
|
|
Number of ordinary shares |
|
886,615 |
886,615 |
Number of preference shares |
|
864,712 |
864,712 |
Total number of shares |
|
1,751,327 |
1,751,327 |
|
|
|
|
Diluted and basic earnings per ordinary share |
€ |
18.68 |
22.30 |
Diluted and basic earnings per preference share |
€ |
18.94 |
22.56 |