L1E Finance GmbH & Co. KG Consolidated Interim Financial Statements for the Period 1 January - 30 September 2018

Transcription

1 L1E Finance GmbH & Co. KG Consolidated Interim Financial Statements for the Period 1 January - 30 September

2 - 2 - L1E Finance GmbH & Co. KG - Consolidated Income Statement 1) 3. Quarter 3. Quarter 1) Sales and other operating revenues Cost of sales Gross profit Exploration costs General and administration expenses Net impairment of assets Net impairment of operating receivables Operating Result Financial Income Financial expenses Result from continuing operations before taxes Income taxes Result from continuing operations Result from discontinued operations Net result Thereof attributable to: The owners of L1E Finance GmbH & Co KG Non-controlling interests ) Due to the reporting of discontinued operations, the comparative prior figures have been adjusted.

3 - 3 - L1E Finance GmbH & Co. KG - Consolidated Statement of Comprehensive Income 3. Quarter 3. Quarter Net result Items that may be reclassified to profit or loss Currency translation adjustments Fair valuation of financial instruments in hedge relationship Items that will not be reclassified to profit or loss Remeasurement of defined benefit plans Other comprehensive income Total comprehensive income (after tax) Thereof attributable to: The owners of L1E Finance GmbH & Co. KG Non-controlling interests

4 - 4 - L1E Finance GmbH & Co. KG - Consolidated Balance Sheet Assets () Non-current assets Intangible assets - 1,698 Property, plant and equipment - 3,482 Investment property - 14 Financial investments - 4 Financial receivables - 1 Other receivables and other assets Deferred tax assets ,404 Current assets Inventories 83 Financial receivables Trade accounts receivable Other receivables and other assets 0 83 Income tax assets 0 11 Cash and cash equivalents Assets classified as held for sale 6,740-6, ,911 6,276 Equity and Liabilities () Equity Equity attributable to the owners of L1E Finance GmbH & Co. KG 1,294 1,427 Non-controlling interests 5 5 1,299 1,432 Non-current liabilities Provisions Notes Debt to banks - 1,312 Financial debt to related companies Income tax liabilities 0 59 Other liabilities - 15 Deferred tax liabilities 8 1, ,058 Current liabilities Provisions Notes 14 6 Debt to banks - 0 Trade accounts payable Income tax liabilities 0 31 Other liabilities Liabilities directly associated with assets classified as held for sale 4,628-4, ,911 6,276

5 - 5 - L1E Finance GmbH & Co. KG - Consolidated Cash Flow Statement 1) Result from continuing operations Depreciation/impairment losses/reversal of impairment losses - - Changes in provisions -2 0 Changes in deferred taxes -3 7 Gain/losses from disposal of assets - - Other non-cash income/expenses Changes in working capital -1-4 Changes in other balance sheet items -1 0 Cash flow from operation activities - continuing operations Cash flow from operating activities - discontinued operations Cash flow from operating activities Cash outflows for additions to intangible assets, property, plant and equipment and investment property - - Cash outflows for acquisitions - - Cash inflows from (cash outflows for) divestures - - Cash inflows from (cash outflows for) financial assets Cash flow from investment activities - continuing operations Cash flow from investment activities - discontinued operations Cash flow from investment activities Repayments of debt to banks - - Proceeds from debt to banks - 0 Cash flow from financing activities - continuing operations - 0 Cash flow from financing activities - discontinued operations Cash flow from financing activities Net change in cash and cash equivalents 4-8 Effects of foreign exchange rates changes and other changes in value 3-1 Cash and cash equivalents at beginning of reporting period Cash and cash equivalents at end of reporting period Less: Cash and cash equivalents of discontinued operations at end of reporting period Cash and cash equivalents of continuing operations at end of reporting period 2 2 Supplementary information on cash flows from operating activities Income tax paid (less refunds) 1 - Interest paid Interest received - - Dividends received - - 1) Due to the reporting of discontinued operations, the comparative prior figures have been adjusted.

6 - 6 - L1E Finance GmbH & Co. KG - Consolidated Statement of Changes in Equity from 1 January to 30 September Registered capital contribution (liable) Reserves Currency translation adjustments Fair valuation of financial instruments Owner's equity Noncontrolling interests Total As at , , ,547 Fair value of derivative financial instruments with no impact on profit or loss Currency translation adjustments Remeasurement of defined benefit plans Other comprehensive income Net result Total comprehensive income Capital increase/decrease Profit transfer/distribution -2-2 Other changes As at , , ,600 As at , , ,432 Adjustments on adoption of IFRS As at (restated) 0 1, , ,441 Fair value of derivative financial instruments with no impact on profit or loss Currency translation adjustments Remeasurement of defined benefit plans Other comprehensive income Net result Total comprehensive income Capital increase/decrease Profit transfer/distribution -3-3 Other changes As at , , ,299

7 - 7 - Notes (condensed) Basis of preparation L1E Finance GmbH & Co. KG is a German partnership and is headquartered at Überseering 40 in Hamburg, Germany. It is registered at the Hamburg local court under HRA The presented consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) applicable in the EU and comprise the period from 1 January to 30 September. In line with IAS 34, for the reporting the L1E Finance Group interim financial statements the option was chosen to prepare condensed notes compared with the scope applied to annual financial statements. With the exceptions of the changes and new rules described below, the consolidated interim financial statements were prepared using accounting policies applied in the consolidated financial statements for the period ended 31 December which provide the basis for the consolidated interim financial statements. The discount rates applied to provisions for reconditioning of sites and plugging of wells remain unchanged between 2.50 and 6.25 %. Provisions for pensions and similar obligations are discounted at an interest rate of 1.85 % in Germany and 2.40 % in Norway (31 December : 1.75 % and 2.40 %, respectively). Changes in accounting policies The International Accounting Standards Board (IASB) has adopted new International Financial Reporting Standards (IFRS), an Interpretation and amendments to existing Standards, which became effective for the L1E Finance Group as of 1 January. IFRS 15 (2014) "Revenue from Contracts with Customers" was issued in 2014 and replaces the previous regulations of IAS 11, IAS 18, IFRIC 13, IFRIC 15, IFRIC 18 and SIC 31. In April 2016, some clarifications were published. The new standard introduces uniform criteria for the timing of revenue recognition. According to IFRS 15, sales revenue is recognised when control of the agreed-upon goods or services and the benefits obtainable from them are transferred to the customer. The transfer of the essential risks and rewards of ownership of the goods is no longer the deciding factor. Sales revenue is measured as the amount the entity expects to receive in exchange for goods and services. The new model for the determination of revenue recognition is based on five steps, with the contract with the customer and the individual performance obligations within the contract to be identified first. The transaction price is then determined and allocated to the performance obligations in the contract. Finally, sales are recognised for each performance obligation in the amount of the allocated portion of the transaction price as soon as the agreed-upon good or service has been provided or the customer receives control over it. Principles are set out for determining whether the goods or services have been provided over time or at one point in time. The application of IFRS 15 has no impact on L1E Finance's consolidated financial statements.

8 - 8 - IFRS 9 (2014) "Financial Instruments" was issued in 2014 and replaces the previous regulations of IAS 39. IFRS 9 contains new requirements for the classification and measurement of financial instruments, fundamental changes regarding the accounting treatment of financial asset impairments, and a reformed approach to hedge accounting. IFRS 9 retains "amortised cost" and "fair value" as the criteria for measuring financial instruments. Whether financial assets are measured at amortised cost or fair value will depend on two factors: the entity's business model for managing the portfolio to which the financial asset belongs and contractual cash flow characteristics of the financial asset. According to IFRS 9, the recognition of financial asset impairments is based on expected losses. The general approach adopts a three-stage model to assess the provisions for risks. The model requires different degrees of impairment based on the credit default risk of the counterparties. For certain financial instruments, such as trade accounts receivable, operational simplifications for recognising impairment losses apply. IFRS 9 regulations on hedge accounting aim for a closer alignment of hedge accounting with the entity's risk management strategy and additionally include changes in the requirements for measuring effectiveness that will mainly be based on the hedge ratio. The hedge ratio needs to be adjusted (so-called "rebalancing") if it no longer meets the hedge effectiveness requirements under an unchanged risk management strategy. Measurement categories On the date of initial application, 1 January, the financial instruments were as follows, with any reclassification noted: Original (IAS 39) Measurement category 1) Carrying amount 1) New (IFRS 9) Original (IAS 39) New (IFRS 9) Financial assets available for sale FVPL 2) 4 4 Financial receivables Trade accounts receivable loans and receivables (amortised cost) loans and receivables (amortised cost) amortised cost amortised cost Other accounts receivable and other assets Derivatives (hedge accounting not applied) FVPL 2) FVPL 2) 1 1 Other accounts receivable and other assets in the scope of IFRS 9/IFRS 7 Cash and cash equivalents loans and receivables (amortised cost) loans and receivables (amortised cost) amortised cost amortised cost Notes amortised cost amortised cost Debt to banks amortised cost amortised cost Financial liabilities amortised cost amortised cost Trade accounts payable amortised cost amortised cost Other liabilities Derivatives (hedge accounting applied) Other liabilities in the scope of IFRS 9/IFRS7 in hedge relationship (measured at FV) 1) including continuing and discontinued operations 2) FVPL = Financial assets measured at fair value through profit or loss in hedge relationship (measured at FV) amortised cost amortised cost

9 - 9 - Financial assets were reclassified from available for sale to assets at fair value through profit or loss. They do not meet the criteria to be classified as at amortised cost in accordance with IFRS 9, because their cash flows do not represent solely payments of principal interest. Following the reclassification with transition to IFRS 9, there are no valuation differences and therefore no changes in the carrying amounts as well as no changes in equity. Impairment The application of the new impairment rules for financial assets resulted in a reversal of impairments amounting to 9m. The effect was recognised in the opening retained earnings. Deferred taxes did not have to be taken into account. Trade accounts receivable 1) Other assets and other receivables 1) Closing impairment losses as of 31 December (according to IAS 39) 31 - Amounts restated through opening retained earnings -9 0 Opening impairment losses as of 1 January (according to IFRS 9) ) including continuing and discontinued operations As from the reporting period, impairments and reversals of impairments are stated separately as "net impairment of operating receivables" and "net impairment of financial receivables" in separate line items in the income statement, as applicable. Prior periods have not been restated. Hedging The regulations on hedge accounting had no impact on the consolidated interim financial statements. Further changes in accounting standards The following interpretation and amendments to existing standards have no impact on L1E Finance's consolidated interim financial statements: Annual improvements to IFRS Standards (2016) Amendments to IFRS 2 (2016) "Classification and Measurement of Shared-based Payment Transactions" Amendments to IFRS 4 (2016) "Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts" IFRS Interpretation 22 (2016) "Foreign Currency Transactions and Advance Consideration" Amendments to IAS 40 (2016) "Transfer of Investment Property"

10 Scope of consolidation The consolidated financial statements include the accounts of L1E Finance GmbH & Co. KG and its subsidiaries over which the company has control. There are 23 consolidated companies (31 December : 24), 6 of them foreign (31 December : 5). Participations in 2 foreign subsidiaries (31 December : 3) of minor importance to the L1E Finance Group are reported as financial investments measured at fair value in accordance with IFRS 9. In total, these subsidiaries account for less than 1 % of the consolidated revenue and income as well as of consolidated debt. In the reporting period, one foreign subsidiary was deconsolidated due to liquidation and 2 foreign subsidiaries, one of them previously reported as financial asset measured at fair value, were consolidated for the first time. Moreover, 2 subsidiaries have been merged on their parent company. Joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. There are joint arrangements at L1E Finance Group in course of development and production activities. They are classified as joint operations since the arrangements transfer the rights and obligations relating to the assets and liabilities to the investors. The Group's shares in joint operations are accounted by recognising its respective share in assets and liabilities as well as its income and expenses. As of the balance sheet date there are 4 joint operations that are structured as separate entities (31 December : 5). Discontinued operations and disposals Discontinued operations As of 2 March L1E Finance Group has signed a contract for the sale of the complete storage business. The sale is expected to be closed within the next 12 months. The storage business, which represents a separate line of business and comprises 4 subsidiaries, was classified as a discontinued operation as of signature date. With the classification, the assets and associated liabilities are shown as "held for sale" in the balance sheet. A conducted measurement at the agreed purchase price resulted in an impairment loss after taxes of 61m. The results of the storage business and the impairment loss are reported as results from discontinued operations in the income statement. As of 27 September L1E Finance Group and BASF have signed a Business Combination Agreement to merge their oil and gas businesses. To effect the merger, L1E Finance Group will contribute all its shares in DEA to Wintershall Holding GmbH against the issuance of new shares of the company which will then be renamed to Wintershall DEA. BASF will initially hold 67 % and LetterOne will hold 33 % of Wintershall DEA. This does not take into account Wintershall's gas transportation business. The merger is expected to be closed within the next 12 months. The oil and gas business of L1E Finance Group - represented through DEA Group - was classified as a discontinued operation as of signature date. With the classification, the assets and associated liabilities are shown as "held for sale" in the balance sheet. The results of the oil and gas business are reported as results from discontinued operations in the income statement.

11 Gas storage business Oil and gas business Total Sales and other operating revenues ,198 1,081 1,222 1,092 Cost of sales Exploration costs General and administration expenses Net impairment of assets Net impairment of operative receivables Loss recognised on measurement to fair value less cost to sell Financial result Result from discontinued operations before taxes Income taxes from ordinary activities Income taxes on loss recognised on measurement to fair value less cost to sell Result from discontinued operations after taxes Thereof attributable to: The owners of L1E Finance GmbH & Co. KG Non-controlling interests Other comprehensive income of discontinued operations amounted to -49m (first nine months of 14m).

12 The carrying amount of the assets and liabilities classified as "held for sale" are as follows: Gas storage business Oil and gas business Total Intangible assets - 1,900 1,900 Property, plant and equipment 42 4,014 4,056 Investment property Financial investments Financial receivables Inventories Trade accounts receivable Other receivables and other assets Income tax assets Deferred tax assets Cash and cash equivalents Assets classified as held for sale 144 6,596 6,740 Provisions Debt to banks - 1,451 1,451 Trade accounts payable Income tax liabilities 25 1,121 1,146 Other liabilities Deferred tax liabilities Liabilities directly associated with assets classified as held for sale 89 4,539 4,628 The presentation of discontinued operations is made on a consolidated basis. Intercompany relations, mainly related to financing activities, have been eliminated. This mainly concerns financial receivables and liabilities as well as the respective interest income and expenses. L1E Funding GmbH being the parent company of the German tax group is liable for the corporate income tax, solidary surcharge and trade income tax of that tax group. Since several group companies being part of that tax group belong to the discontinued oil and gas business, the respective income taxes/assets/ liabilities for the tax group companies in the oil and gas business are also disclosed under discontinued operations.

13 The discontinued operations comprise primary and derivative financial instruments that are recognized at fair value: Fair value hierarchy Total Level 1 Level 2 Level 3 Financial investments 3 3 Derivative financial liabilities No transfer between the levels occurred during the period under review. The derivative financial liabilities comprise oil price swaps used to partly hedge future oil sales. Disposals One foreign subsidiary was deconsolidated due to liquidation. The cumulative currency exchange losses relating to that foreign operation of 8m were reclassified from equity to profit or loss. The loss is disclosed under discontinued operations. Related party disclosures Related parties to the L1E Finance Group, as defined in IAS 24, are parties who control the Group or exercise significant influence over it. Accordingly, related companies are all companies in which the Group s ultimate parent LetterOne Holdings S.A. or their controlling shareholder, respectively, have at least a significant holding. Affiliated companies LetterOne Group / / Financial receivables Financial debt Trade accounts payable - 9 General and administrative expenses 1 7 Interest expenses All transactions are subject to market terms and conditions. Related persons are the members of the management of the partners of L1E Finance GmbH & Co. KG. As in the previous year, the management of the general partner does not receive any salaries from L1E Finance GmbH & Co. KG. There are no business relations to the members of the management of the limited partner.

14 Reporting on financial instruments The financial instruments comprise both primary and derivative financial instruments. Financial instruments on the assets side chiefly comprise financial assets, financial receivables and cash and cash equivalents. Financial assets in the category "available for sale" are recognised at fair value and other primary are recognised at amortised cost. On the liabilities side, the primary financial instruments include liabilities recorded at amortised cost. The primary financial instruments are stated in the balance sheet, with the carrying amounts of financial assets reflecting the maximum risk of default. Wherever default risks are apparent in the financial assets, they are covered by impairments. Fair values of derivative financial instruments are determined using customary market valuation methods taking into account the market data available on the measurement data as well as the counterparty default risk. The following overview represents the financial instruments to be recognised at fair value and the essential parameters on which the measurement is based. The individual levels are defined as follows in accordance with IFRS 13: Level 1: Measurement at (unadjusted) prices quoted for identical assets or liabilities on active markets. Level 2: Measurement based on inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Measurement on the basis of unobservable inputs. As of 30 September all assets and liabilities recognised at fair value are shown under discontinued operations. Fair value hierarchy Total Level 1 Level 2 Level 3 Financial investments 4 4 Derivative financial assets 1 1 Derivative financial liabilities No transfers between the levels occurred during the previous year. Events after the balance sheet date No events subject to mandatory disclosure occurred after the balance sheet date.

15 Voluntary disclosure The presentation of the oil and gas business, which presents the core business of L1E Finance Group, as discontinued operation may not be adequate to get an insight into the actual development of the business. For this reason, this section provides income statement, balance sheet, cash flow statement as well as key figures and a financial review, in each case, without presenting the oil and gas business as discontinued operation. L1E Finance GmbH & Co. KG - Consolidated Income Statement 1) 3. Quarter 3. Quarter 1) Sales and other operating revenues 1,198 1, Cost of sales Gross profit Exploration costs General and administration expenses Net impairment of assets Net impairment of operating receivables Operating Result Financial Income Financial expenses Result from continuing operations before taxes Income taxes Result from continuing operations Result from discontinued operations Net result Thereof attributable to: The owners of L1E Finance GmbH & Co KG Non-controlling interests ) Due to the reporting of discontinued operations (storage business), the comparative prior figures have been adjusted.

16 L1E Finance GmbH & Co. KG - Consolidated Balance Sheet Assets () Non-current assets Intangible assets 1,900 1,698 Property, plant and equipment 4,014 3,482 Investment property Financial investments 3 4 Financial receivables 1 1 Other receivables and other assets Deferred tax assets ,957 5,404 Current assets Inventories Financial receivables Trade accounts receivable Other receivables and other assets Income tax assets 8 11 Cash and cash equivalents Assets classified as held for sale ,911 6,276 Equity and Liabilities () Equity Equity attributable to the owners of L1E Finance GmbH & Co. KG 1,294 1,427 Non-controlling interests 5 5 1,299 1,432 Non-current liabilities Provisions Notes Debt to banks 1,451 1,312 Financial debt to related companies Income tax liabilities Other liabilities Deferred tax liabilities 1,129 1,041 4,410 4,058 Current liabilities Provisions Notes 14 6 Debt to banks 0 0 Trade accounts payable Income tax liabilities Other liabilities Liabilities directly associated with assets classified as held for sale 89-1, ,911 6,276

17 L1E Finance GmbH & Co. KG - Consolidated Cash Flow Statement 1) Result from continuing operations Depreciation/impairment losses/reversal of impairment losses Changes in provisions 1 37 Changes in deferred taxes Gain/losses from disposal of assets Other non-cash income/expenses Changes in working capital 2 57 Changes in other balance sheet items Cash flow from operation activities - continuing operations Cash flow from operating activities - discontinued operations Cash flow from operating activities Cash outflows for additions to intangible assets, property, plant and equipment and investment property Cash outflows for acquisitions Cash inflows from (cash outflows for) divestures 75 9 Cash inflows from (cash outflows for) financial assets Cash flow from investment activities - continuing operations Cash flow from investment activities - discontinued operations -9 0 Cash flow from investment activities Repayments of debt to banks Proceeds from debt to banks Cash flow from financing activities - continuing operations Cash flow from financing activities - discontinued operations -3-2 Cash flow from financing activities Net change in cash and cash equivalents 4-8 Effects of foreign exchange rates changes and other changes in value 3-1 Cash and cash equivalents at beginning of reporting period Cash and cash equivalents at end of reporting period Less: Cash and cash equivalents of discontinued operations at end of reporting period 0 0 Cash and cash equivalents of continuing operations at end of reporting period Supplementary information on cash flows from operating activities Income tax paid (less refunds) Interest paid Interest received 2 3 Dividends received 0 0 1) Due to the reporting of discontinued operations (storage business), the comparative prior figures have been adjusted.

18 Selected key financial data by region L1E Finance Group operates within several geographical areas. The following representation at country level is in accordance with the internal management reporting and does not represent segment information according to IFRS 8. With the first-time consolidation of the Mexican subsidiary, the new region "Latin America" was introduced. January - September /kboed Germany/ Denmark Norway North Africa 1) Latin America Other 2) Total Production (kboed) 3) ) Revenues ,190 Depletion, depreciation, amortisation Net impairment of assets EBITDAX Exploration cost Capital expenditures (without acquisitions) ) Comprising Egypt and Algeria 2) Incl. rest of the world, central functions and investment property 3) On working interest basis 4) Production included since early March, therefore 9 months average is lower than daily average production January - September * /kboed Germany/ Denmark Norway North Africa 1) Latin America Other 2) Total Production (kboed) 3) Revenues ,075 Depletion, depreciation, amortisation Net impairment of assets EBITDAX Exploration cost Capital expenditures (without acquisitions) ) Comprising Egypt and Algeria 2) Incl. rest of the world, central functions and investment property 3) On working interest basis * Due to the reporting of discontinued operations (storage business), the comparative prior figures have been adjusted.

19 Financial review The presented figures are shown excluding the discontinued operations with regard to the storage business. The income statement related comparative figures have been adjusted accordingly. EBITDAX The EBITDAX is used for the purpose of internal management control and is derived from the result from continuing operations before taxes adjusted by the following items: a) Interest income and expenses shown as financial income and expenses in the income statement, but adjusted for interest effects regarding pension provisions and pension plan assets which are shown separately in the line "pension items". b) Income and expenses attributable to exploration, but excluding depletion/depreciation/amortisation, impairment losses and reversal of impairment losses, interest income and expenses, currency effects and pension items for exploration, since these are adjusted in separate line items. c) Depletion, depreciation, amortisation and impairment losses as shown in the income statement less reversal of impairment losses. d) Acquisition, disposal and restructuring costs as well as further extraordinary items. This represents all fees, costs and expenses, stamp duty, registration and other taxes incurred by the company in connection with an acquisition or a disposal and material items of an unusual or non-recurring nature (e.g. resulting from restructuring activities). e) Realised and unrealised foreign exchange gains and losses (including hedging results). f) Gains over book value or losses on book value arising from the disposal of any fixed assets (other than the sale of trading stock). g) Income from pension plan assets, interest expenses, service costs or other charges attributable to a post-employment benefit scheme. Result from continuing operations before taxes a) Interest and other financing costs b) Exploration cost c) Depletion, depreciation, amortisation and net impairment losses d) Acquisition, disposal and restructuring costs and extraordinary items as well as income from investments e) Realised and unrealised gains/losses from foreign currency valuation and financial derivatives f) (Gain)/loss attributable to the disposal of fixed assets g) Pension items EBITDAX

20 Revenues Oil Gas Other Sales revenues 1,190 1,075 Other operating revenues 8 6 1,198 1,081 The oil revenues comprise losses from commodity derivatives amounting to 40m (first 9 months : gain of 2m). Cost of sales Cost of operations Production costs Royalties Change in over-/underlift position 2 9 Tariffs, transportation and lease expenses Depletion, depreciation, amortisation Other Development costs Other cost of operations for the reporting period include net gains from the disposal of fixed assets of 24m. In the first 9 months of, other cost of operations comprised net impairment gains on financial receivables of 20m and restructuring costs of 1m. As of this year, we disclose net impairments of operating receivables as a separate line item in the income statement (refer to first-time application of IFRS 9).

21 Financial income and financial expenses Interest income from third parties 2 3 Foreign currency exchange gains, net Gains from financial derivatives, net 0 - Financial income Interest expenses to third parties Interest expenses to affiliated companies Less capitalised borrowing costs Foreign currency exchange losses, net 32 - Losses from financial derivatives, net - 7 Interest from addition to provisions Other financial expenses 2 3 Financial expenses Contractual obligations As of 30 September L1E Finance Group has commitments from firm contracts for property, plant and equipment as well as from field development projects in the amount of 313m (31 December : 626m) and exploration commitments in the context of concession agreements in the amount of 55m (31 December : 106m).

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