Distribuidora Internacional de Alimentación, SA and Subsidiaries

103 Pages·2016·1.03 MB·English

Distribuidora

Internacional de
Alimentación, S.A.
and Subsidiaries

Consolidated Annual Accounts
31 December 2015

Consolidated Directors’ Report
2015

(With Auditor's Report Thereon)
(Free translation from the original in
Spanish. In the event of discrepancy, the
Spanish-language version prevails.)
KPMG Auditores S.L.
Edificio Torre Europa
Paseo de la Castellana, 95
28046 Madrid

Independent Auditor's Report on the Consolidated Annual Accounts

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language
version prevails.)

To the Shareholders of Distribuidora Internacional de Alimentación, S.A.
Report on the consolidated annual accounts
We have audited the accompanying consolidated annual accounts of Distribuidora Internacional
de Alimentación, S.A. (the “Company”) and its subsidiaries (the “Group”), which comprise the
consolidated statement of financial position at 31 December 2015 and the consolidated income
statement, consolidated statement of comprehensive income, consolidated statement of changes
in equity and consolidated statement of cash flows for the year then ended, and consolidated notes.
Directors' responsibility for the consolidated annual accounts
The Directors are responsible for the preparation of the accompanying consolidated annual
accounts in such a way that they present fairly the consolidated equity, consolidated financial
position and consolidated financial performance of Distribuidora Internacional de Alimentación,
S.A. in accordance with International Financial Reporting Standards as adopted by the European
Union (IFRS-EU), and other provisions of the financial reporting framework applicable to the
Group in Spain and for such internal control that they determine is necessary to enable the
preparation of consolidated annual accounts that are free from material misstatement, whether
due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated annual accounts based on our
audit. We conducted our audit in accordance with prevailing legislation regulating the audit of
accounts in Spain. This legislation requires that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether the consolidated annual
accounts are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the consolidated annual accounts. The procedures selected depend on the auditor's
judgement, including the assessment of the risks of material misstatement of the consolidated
annual accounts, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of the consolidated annual accounts
in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit
also includes evaluating the appropriateness of accounting policies used and reasonableness of
accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated annual accounts taken as a whole.
KPMG Auditores S.L., a limited liability Spanish company and a
member firm of the KPMG network of independent member firms Reg. Mer Madrid, T. 11.961, F. 90,
affiliated with KPMG International Cooperative (“KPMG Sec. 8, H. M -188.007, Inscrip. 9
International”), a Swiss entity. N.I.F. B-78510153
2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the accompanying consolidated annual accounts for 2015 present fairly, in all
material respects, the consolidated equity and consolidated financial position of Distribuidora
Internacional de Alimentación, S.A. and subsidiaries at 31 December 2015 and their financial
performance and consolidated cash flows for the year then ended in accordance with International
Financial Reporting Standards as adopted by the European Union and other applicable provisions
of the financial reporting framework in Spain.
Report on other legal and regulatory requirements
The accompanying consolidated directors’ report for 2015 contains such explanations as the
Directors of Distribuidora Internacional de Alimentación, S.A. consider relevant to the situation
of the Group, its business performance and other matters, and is not an integral part of the
consolidated annual accounts. We have verified that the accounting information contained therein
is consistent with that disclosed in the consolidated annual accounts for 2015. Our work as
auditors is limited to the verification of the consolidated directors’ report within the scope
described in this paragraph and does not include a review of information other than that obtained
from the accounting records of Distribuidora Internacional de Alimentación, S.A. and
subsidiaries.
KPMG Auditores, S.L.
(Signed on the original in Spanish)
Carlos Peregrina García
23 February 2016
DIA GROUP CONSOLIDATED ANNUAL ACCOUNTS
AT 31 DECEMBER2015

I Consolidated statements of financial position

II Consolidated Income Statements

III Consolidated Statements of Comprehensive Income

IV Consolidated Statements of Changes in Equity

V Consolidated statements of cash flows

VI Notes to the consolidated annual accounts
1 Nature, Activities and Composition of the Group
2 Basis of Presentation
2.1. Basis of preparation of the consolidated annual accounts
2.2. Comparative information
2.3. Functional and presentation currency
2.4. Relevant accounting estimates, assumptions and judgements used when applying accounting principles
a. Relevant accounting estimates and assumptions
2.5. First-time application of accounting standards
2.6. Standards and interpretations issued and not applied
2.7. Basis of consolidation
3 Significant Accounting Policies
a. Business combinations and goodwill
b. Joint arrangements
c. Non-controlling interests
d. Translation of foreign operations
e. Foreign currency transactions, balances and cash flows
f. Recognition of income and expenses
g. Intangible assets
h. Property, plant and equipment
i. Leases
j. Discontinued operations
k. Impairment of non-financial assets
l. Advertising and catalogue expenses
m. Financial instruments – assets
n. Inventories
o. Cash and cash equivalents
p. Financial liabilities
q. Parent own shares
r. Distributions to shareholders
s. Employee benefits
t. Provisions
u. Share-based payments for goods and services
v. Grants, donations and bequests
w. Income tax
x. Segment reporting
y. Classification of assets and liabilities as current and non-current
z. Environmental issues
aa. Related party transactions
ab. Interest
4 Business Combinations
5 Information on Operating Segments
6 Property, Plant and Equipment
7 Intangible Assets
8 Operating Leases
9 Financial Assets
10 Derivative Financial Instruments and Hedges
11 Other Equity-accounted Investments
12 Other Assets
13 Inventories
14 Cash and Cash Equivalents
15 Discontinued Operations
16 Equity
17 Financial Liabilities
18 Provisions
19 Tax Assets and Liabilities and Income Tax
20 Share-based Payment Transactions
21 Other Income and Expenses
22 Commitments and Contingencies
23 Related Parties
24 Financial Risk Management: Objectives and Policies
25 Other Information
26 Events after the Reporting Period
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (I)
at 31 December 2015 and 2014
(Expressed in thousands of Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

ASSETS 2015 2014
Notes
Property, plant and equipment 6 1,372,010 1,270,356
Goodwill 7.1 558,063 464,642
Other intangible assets 7.2 34,763 32,567
Investments accounted for using the equity method 11 92 -
Non-current financial assets 9.2 and 9.3 118,236 81,162
Consumer loans from financial activities 9.1 458 363
Deferred tax assets 19 271,480 147,890
Non-current assets 2,355,102 1,996,980
Inventories 13 562,489 553,119
Trade and other receivables 9.2 221,193 244,592
Consumer loans from financial activities 9.1 6,548 6,362
Current tax assets 19 69,474 64,347
Current income tax assets 19 49,663 42,593
Other current financial assets 9.3 15,718 12,144
Other assets 12 7,815 7,836
Cash and cash equivalents 14 154,627 199,004
Non-current assets held for sale 15 - 10
Current assets 1,087,527 1,130,007
TOTAL ASSETS 3,442,629 3,126,987

The accompanying notes form an integral part of the consolidated annual accounts for 2015.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (I)
at 31 December 2015 and 2014
(Expressed in thousands of Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

EQUITY AND LIABILITIES 2015 2014
Notes
Capital 16.1 62,246 65,107
Share premium - 618,157
Reserves 16.2 87,323 (553,059)
Own shares 16.3 (53,561) (58,864)
Other own equity instruments 16.3 11,647 22,827
Net profit for the period 299,221 329,229
Traslation differences 16.7 (93,683) (45,836)
Value adjustments due to cash flow hedges 50 55
Equity attributable to equity holders of the Parent 313,243 377,616
Non-controlling interests 16.6 (18) (46)
Total Equity 313,225 377,570
Non-current borrowings 17.1 920,951 532,532
Provisions 18 51,503 86,100
Other non-current financial liabilities 17.2 17,906 7,539
Deferred tax liabilities 19 3,193 2,749
Non-current liabilities 993,553 628,920
Current borrowings 17.1 374,279 199,912
Trade and other payables 17.3 1,518,843 1,693,113
Current tax liabilities 19 92,939 82,440
Current income tax liabilities 19 4,111 8,747
Other current financial liabilities 17.4 145,679 136,189
Liabilities directly associated with non-current assets held for
sale 15 - 96
Current liabilities 2,135,851 2,120,497
TOTAL EQUITY AND LIABILITIES 3,442,629 3,126,987

The accompanying notes form an integral part of the consolidated annual accounts for 2015.
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (II)
for the years ended 31 December 2015 and 2014
(Expressed in thousands of Euros)
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

INCOME STATEMENT 2015 2014
Notes
Sales 5 8,925,454 8,010,967
Other income 21.1 96,215 105,250
TOTAL INCOME 9,021,669 8,116,217
Goods and other consumables used 21.2 (7,018,881) (6,350,654)
Personnel expenses 21.3 (847,233) (704,940)
Operating expenses 21.4 (644,034) (535,029)
Amortisation and depreciation 21.5 (214,026) (184,604)
Impairment 21.5 (11,013) (5,525)
Losses on disposal of fixed assets 21.6 (12,340) (11,558)
RESULTS FROM OPERATING ACTIVITIES 274,142 323,907
Finance income 21.7 9,265 16,447
Finance expenses 21.7 (65,291) (57,259)
Profit of financial instruments - 103
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS 218,116 283,198
Income tax 19 82,610 (74,556)
PROFIT AFTER TAX FROM CONTINUING OPERATIONS 300,726 208,642
Gains net of taxes of discontinued operations 15 (1,477) 120,582
NET PROFIT 299,249 329,224
PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITYHOLDERS OF THE
PARENT 299,221 329,229
PROFIT FROM CONTINUING OPERATIONS 300,698 208,647
PROFIT FROM DISCONTINUED OPERATIONS (1,477) 120,582
Losses from continuing operations attributable to non-controlling interests 28 (5)
Basic and diluted earnings per share, in euros
Profit on continuing operations 0.48 0.32
Profit on discontinued operations - 0.19
Profit for the period 0.48 0.51

The accompanying notes form an integral part of the consolidated annual accounts for 2015.
CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY