EANS-Adhoc: Semperit AG Holding Semperit changes consolidation method for Siam
Sempermed Corp. Ltd.
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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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Joint Ventures/Cooperation/Collaboration/Company Information
16.02.2015
Semperit AG Holding converts the previously full consolidation of the 50% joint
venture investment at Siam Sempermed Corp. Ltd. (SSC), Thailand, to the "at
equity" method as of 31 December 2014. The change of the accounting method has
no significant effects on the earnings after tax and minorities of the Semperit
Group as well as on the earnings per Semperit share and on the operating
activities of Semperit and SSC.
As reported, Semperit demands increased transparency, compliance and corporate
governance in line with international standards by SSC within the scope of the
joint venture. The decisive reason for the present change of the accounting
method is the progressively unlawful conduct of the Thai joint venture partner
Sri Trang Agro-Industry Public Co Ltd. (Sri Trang). Within the scope of a
mediation process initiated by a Thai law court on 13 February 2015, there was
no evidence that Sri Trang would end their unlawful conduct in the near future
which currently effectively prevents Semperit from controlling SSC.
The Management Board feels confident that the claims presented in this context
by Semperit to an arbitration court in Zurich will be defended successfully. If
these procedures are concluded positively, Semperit will be able to effectively
exercise their contractually granted controlling options again.
In the consolidated balance sheet as of 31 December 2014, the change of the
accounting method will have implications, primarily a decrease of the following
balance sheet items: tangible assets, cash and cash equivalents and liabilities
from redeemable non-controlling interests as well as working capital. In the
consolidated income statement, the revenue recognised is expected to be around
10% lower compared to full consolidation and EBIT expected to be around 20%
lower starting from the financial year 2015.
Moreover, the Management Board is currently reviewing the consolidation method
of further joint venture companies. The Management Board will display all
further details at the presentation of the consolidated financial statements on
26 March 2015.
Further inquiry note:
Martina Büchele
Head of Group Communications
Tel.: +43 676 8715 8621
martina.buechele@semperitgroup.com
Stefan Marin
Investor Relations
Tel.: +43 676 8715 8210
stefan.marin@semperitgroup.comwww.semperitgroup.com
end of announcement euro adhoc
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issuer: Semperit AG Holding
Modecenterstrasse 22
A-1030 Wien
phone: +43 1 79 777-210
FAX: +43 1 79 777-602
mail: investor@semperitgroup.com
WWW: www.semperitgroup.com
sector: Synthetics & Plastics
ISIN: AT0000785555
indexes: WBI, ATX Prime, ViDX, Prime Market, ATX Global Players
stockmarkets: official market: Wien
language: English