Annual figures 2018

The consolidated financial statements of SD Worx Holding for the year ended 31 December 2018 have been prepared in accordance with Belgian Generally Accepted Accounting Principles (BE GAAP). The Group’s consolidated financial statements have been audited by Deloitte (unqualified opinion).

Consolidated profit-and-loss account of the SD Worx Holding (in €1,000)

Total Turnover

Operational profits

Other income

Costs

Consolidated net profit

Consolidated balance sheet of the SD Worx Holding (in €1,000)

Assets

Liabilities

Operating segments of the SD Worx Holding (in €1,000)

* The SD Worx Staffing & Career Solutions Group was created as a result of the acquisition of the Vio Group in February 2018 and the acquisition of the Flexpoint Group in September 2018. The Vio Group has been consolidated for 10 months, the Flexpoint Group 3 months.

Total

Overview consolidation scope
SD Worx Holding

Fully consolidated entries
SD Worx Holding nv
SD Worx Group nv
SD Worx Belgium nv
Aspex nv
LWB nv
Sodeco nv
SAK nv
Protime group
SD Worx sa (Luxembourg)
SD Worx Nederland bv
SD Worx France sas
SD Worx GmbH (Germany)
SD Worx Switzerland AG
SD Worx Austria GmbH AG
SD Worx UK Limited
SD Worx Ireland Limited
SD Worx Mauritius Limited
Hazel Heartwood cvba
Innovate-IT BVBA
SD Worx Staffing & Career Solutions - Holding NV
Vio HR Group NV
Vio Interim NV
2BeFreelance NV
Flexpoint Holding BV (the Netherlands)
Flexpoint Diensten Groep BV (the Netherlands)
Re-Direct BV (the Netherlands)
Easymatch Payrolling BV (the Netherlands)
Trento Engineering BV (the Netherlands)
Equipe BV (the Netherlands)
Flexpoint BVBA
Easymatch BVBA
Intertime BVBA
Trace SA
Trace Construction SA
Student & Go SA
Entities accounted for using the equity method
UwPayroll BVBA
Assusoft NV
Unbox NV
Globe Payroll Société (France)

Overview definitions

SD Worx Holding presents its results in accordance with generally accepted accounting principles in Belgium (“BE GAAP”).

Alternative performance measures (“APMs”) present useful information which supplements the Issuer’s financial statements and which allow the reader of the financial statements, including the Bondholders, to better understand the financial state of the Issuer and the wider Group. These measures are not defined under BE GAAP and may not be directly comparable with APMs for other companies. The APMs represent important measures for how management monitors the company and its business activity. The APMs are not intended to be a substitute for, or superior to, any BE GAAP measures of performance. Some of the financial information presented in our annual reports contains APMs. These include Normalised EBIT and Normalised EBITDA. Below we define these APMs and reconcile them with BE GAAP measures.

“EBITDA” means Earnings Before Interest, Taxes, Depreciation and Amortisation, or operating result profit (loss) (code 9901 of the BE GAAP consolidated financial statements) before charges for fixed asset depreciation, amortisation and impairment (code 630 of the BE GAAP consolidated financial statements).

(As an explanation for the use of this APM, EBITDA provides an analysis of the operating results, excluding depreciation and amortisation, as they are non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. Additionally, it is an APM which is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors.)

“EBIT” means Earnings Before Interest and Taxes, or operating profit (loss), code 9901 of the BE GAAP consolidated financial statements.

(As an explanation for the use of this APM, EBIT provides an analysis of the operating results, excluding interests and taxes, as the funding cost and effective tax rate can vary substantially from company to company depending on the capital structure and the legal jurisdictions in which a company deploys its operations. Additionally, it is an APM which is widely used by investors when evaluating business (multiples valuation), as well as by rating agencies and creditors.)

“Normalised EBITDA” means EBITDA after Normalisations.

(As an explanation for the use of this APM, Normalised EBITDA is used to provide insight in the recurring level of operational profitability. Please also refer to the definition of Normalisations below.)

“Normalised EBIT” means EBIT after Normalisations.

(As an explanation for the use of this APM, Normalised EBIT is used to provide insight in the recurring level operational profitability. Please also refer to the definition of Normalisations below.)

“Normalisations” means the revenues and expenses of which, in case of a change of control, an acquirer has the choice or option (mid- or long-term) to not realise those revenues or incur those expenses. In other words, expenses or revenues which are not part of the recurring business operations of the Issuer and its Subsidiaries, as follows:

(i)
Normalised EBITDA is determined as EBITDA before (a) restructuring & integration costs, (b) business and asset disposals, (c) acquisition & transaction costs related to third parties, (d) profit or loss from discontinued operations, and (e) share-based compensation;

(ii)
Normalised EBIT is determined as Normalised EBITDA after depreciations, amortisations and impairments and before (a) amortisation of goodwill and intangible assets acquired as part of a business combination (i.e. brand names, customer relations, etc.), and (b) impairment of non-current assets and goodwill.

Overview of Normalisations per financial year and reconciliation with operational profit (in thousands of EUR)