Vetropack - Integrated Annual Report and Remuneration Report 2020

30. Acquisition

On 10 December 2020, the group acquired a Moldovan glass factory based in Chișinău and fully consolidated it for the first time from 30 November 2020.

The current values of the net assets as at the date of acquisition are as follows:

CHF millions	30.11.2020

Liquid funds	1.6
Accounts receivables	15.3
Other short-term receivables	2.9
Inventories	9.0
Subtotal Short-term Assets	28.8
Long-term Assets	37.1
Total Assets	65.9
Accounts payables	3.7
Short-term financial debts	2.0
Advance payments	2.4
Other short-term liabilities	2.2
Deferrals	1.0
Subtotal Short-term Liabilities	11.3
Long-term financial debts	27.8
Subtotal Long-term Liabilities	27.8
Total Liabilities	39.1
Acquired net assets, measured at current market value	26.8
Goodwill from the acquisition	31.7
Total	58.5
Total consideration	58.5
Analysis of cash outflow as a result of the company acquisition:
Amount paid in 2020 (investment activity)	44.4
Cash acquired with the subsidiary (investment activity)	– 1.6
Actual cash outflow as a result of the company acquisition	42.8

The total consideration includes a fixed purchase price component of CHF 44.4 million and further payments dependent on future results, which presently is estimated at CHF 14.1 million.

The goodwill of a purchased consolidated company is offset with equity at the date of acquisition. The theoretical amortisation of the goodwill is over the useful live of five years. A theoretical capitalisation of the goodwill would have the following impact on the consolidated financial statements:

CHF millions	2020	2019

Theoretical goodwill
Gross book value as at 01.01.	16.8	16.8
Addition from acquisition	31.7	–
Gross book value as at 31.12.	48.5	16.8
Accumulated amortisation as at 01.01.	– 15.0	– 11.6
Amortisation	– 2.3	– 3.4
Accumulated amortisation as at 31.12.	– 17.3	– 15.0
Net book value as at 01.01.	1.8	5.2
Net book value as at 31.12.	31.2	1.8

Effect on Balance Sheet
Sharholders' Equity according to Balance Sheet	763.6	748.4
Theoretical capitalisation of net book value of goodwill	31.2	1.8
Theoretical Shareholders' Equity incl. net book value of goodwill	794.8	750.2

Effect on Income Statement
Consolidated Profit	81.2	72.4
Amortisation goodwill	– 2.3	– 3.4
Theoretical Consolidated Profit incl. amortization of goodwill	78.9	69.0