Professional Documents
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Financial Statement of GS Engineering & Construction
Financial Statement of GS Engineering & Construction
and Subsidiaries
Consolidated Financial Statements
for the years ended December 31, 2014 and 2013
with independent auditors report
Table of contents
Page
Independent auditors report
Consolidated financial statements
Consolidated statements of financial position
Consolidated statements of profit or loss
Consolidated statements of comprehensive Income
Consolidated statements of changes in equity
Consolidated statements of cash flows
Notes to the consolidated financial statements
1
3
4
5
6
7
8-69
We have audited the accompanying consolidated financial statements of GS Engineering & Construction
Corporation (the Company) and its subsidiaries (collectively referred to as the Group), which comprise the
consolidated statements of financial position as at December 31, 2014 and the consolidated statements of profit
or loss and comprehensive income, consolidated statements of changes in equity and consolidated statements of
cash flows for the years then ended.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the Republic of Korea. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the
consolidated financial statements 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 the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the consolidated financial
statements.
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 consolidated financial statements present fairly, in all material respects, the financial position of
GS Engineering & Construction Corporation and its subsidiaries as at December 31, 2014 and the results of its
financial performance and cash flows for the years then ended in accordance with Korean International Financial
Reporting Standards.
Other Matter
The consolidated financial statements of GS Engineering & Construction Corporation and its subsidiaries for the
year ended December 31, 2013, were audited by PWC who expressed an unqualified opinion on those
statements on March 13, 2014.
Notes
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Short-term financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investment properties
Investments in associates
Long-term trade and other receivables
Long-term financial assets
Deferred tax assets
Total non-current assets
10,32,33
7,8,10,30,32,33
9
6,10,12,32,33
9
14
15
16
13
7,10,30,32,33
6,10,11,32,33
28
Total assets
Liabilities
Current liabilities
Trade and other payables
Short-term financial liabilities
Income tax payable
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term trade and other payables
Long-term financial liabilities
Net defined benefit liabilities
Non-current provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
10,17,30,32,33
10,12,18,32,33
2,456,041
169,962
121,138
36,973
842,194
347,466
467,988
4,441,762
1,865,508
4,785,254
499,240
323,187
941,278
8,414,467
2,242,896
194,899
167,188
32,446
615,442
333,278
426,697
4,012,846
13,094,709
12,427,313
1,633,207
1,709,989
15,200
2,768,787
6,127,183
1,527,396
2,190,045
2,443
2,417,028
6,136,912
8,10,17,33
10,17,32,33
10,12,14,18,32,33
19
10,20,32,33
28
10,17,33
Total liabilities
Equity
Equity attributable to owners of the Parent
Issued capital
1,22
Share premium
22
Other components of equity
22
Accumulated other comprehensive loss
12,22
Retained earnings
23
Non-controlling interests
Total equity
Total liabilities and equity
2,151,187
4,573,822
613,225
332,671
982,042
8,652,947
2013
136,080
2,487,230
93,539
287,078
148,854
233,133
3,385,914
2,356,362
49,501
301,751
215,544
207,964
3,131,122
9,513,097
9,268,034
355,000
610,634
(140,811)
(87,938)
2,534,051
3,270,936
310,676
3,581,612
13,094,709
255,000
159,136
(145,244)
(21,614)
2,616,700
2,863,978
295,301
3,159,279
12,427,313
The accompanying notes are an integral part of these consolidated financial statements.
Notes
Sales
Construction operations
Housing construction and sales operations
Other operations
5,8,30
Cost of sales
Construction operations
Housing construction and sales operations
Other operations
29,30
8,819,513
183,026
485,012
9,487,551
8,440,626
180,605
437,647
9,058,878
428,673
25,29
8,331,544
889,049
345,165
9,565,758
8,885,712
728,585
330,645
9,944,942
(379,184)
377,504
556,267
51,169
(935,451)
10,26
10,26
12
10,27
10,27
334,933
349,622
5,935
264,832
336,866
377,112
412,076
9,519
211,859
244,140
5
28
(29,619)
(7,166)
(993,177)
(165,830)
2013
24
(22,453)
(827,347)
(41,072)
18,619
(828,196)
849
(667)
(16,012)
The accompanying notes are an integral part of these consolidated financial statements.
Notes
Loss for the year
(22,453)
2013
\
(827,347)
(1,004)
356
(2,769)
(7,681)
(14,413)
(42,330)
120
60
292
598
(6,856)
4,381
9,228
7,546
(112)
(72)
(38,025)
52,010
(105,686)
67,015
19,23
(128,139)
(760,332)
Attributable to:
Equity holders of the Parent
Non-controlling interests
(145,004)
16,865
(760,320)
(12)
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.
355,000
255,000
100,000
100,000
255,000
255,000
Issued capital
610,634
448,369
3,129
451,498
159,136
159,136
123
123
159,013
Share premium
(140,811)
4,433
4,433
(145,244)
(145,244)
165
165
(145,409)
Other components
of equity
(87,938)
(998)
436
120
41
(1,533)
(7,681)
(14,413)
(42,296)
(66,324)
(21,614)
(21,614)
286
568
(112)
(49)
(4,155)
4,381
9,228
6,529
16,676
(38,290)
Accumulated other
comprehensive
income (loss)
2,534,051
(3,969)
(3,969)
(41,072)
(37,608)
(78,680)
2,616,700
2,616,700
(12,390)
8,198
(4,192)
(828,196)
51,200
(776,996)
3,397,888
Retained earnings
3,270,936
548,369
3,129
464
551,962
(41,072)
(998)
436
120
41
(1,533)
(7,681)
(14,413)
(42,296)
(37,608)
(145,004)
2,863,978
2,863,978
(12,390)
123
8,363
(3,904)
(828,196)
286
568
(112)
(49)
(4,155)
4,381
9,228
6,529
51,200
(760,320)
3,628,202
Total
310,676
(1,519)
(127)
157
(1,489)
18,619
(6)
(80)
19
(1,236)
(35)
(417)
16,864
295,301
295,301
(986)
613
(3,717)
(864)
(4,954)
849
6
30
(23)
(2,701)
1,017
810
(12)
300,267
Non-controlling
Interests
3,581,612
(1,519)
548,369
3,129
(127)
621
550,473
(22,453)
(1,004)
356
120
60
(2,769)
(7,681)
(14,413)
(42,331)
(38,025)
(128,140)
3,159,279
3,159,279
(13,376)
613
(3,594)
7,499
(8,858)
(827,347)
292
598
(112)
(72)
(6,856)
4,381
9,228
7,546
52,010
(760,332)
3,928,469
Total
equity
Notes
Cash flows from operating activities
Cash generated from (used in) operations
Interest received
Interest paid
Dividends received
Income tax paid
Net cash flows from (used in) operating activities
31
652,458
63,912
(96,200)
780
(49,418)
571,532
2013
(1,071,149)
54,106
(101,371)
533
(36,393)
(1,154,274)
862,946
7,250
124,098
37,209
71,788
18
53,579
-
177,001
25,557
88,752
15,914
154,763
18
255,045
488
1,079
(893,541)
(47,383)
(185,539)
(56,575)
-
(313,554)
(57,771)
(149,684)
(62,256)
-
(307,954)
(1,221)
(232)
(334,478)
(176,780)
(19,432)
(2,816)
(249)
(65,004)
1,450,859
776,565
69,394
548,369
578
(2,578,751)
(15,332)
(174,631)
(40,373)
(1,519)
35,159
1,252,709
2,169,789
102,021
646
(1,404,005)
(20,480)
(228,209)
(202,118)
(12,406)
(13,379)
1,644,568
13,466
285,679
1,865,508
2,151,187
9,939
435,229
1,430,279
1,865,508
The accompanying notes are an integral part of these consolidated financial statements.
Location
Korea
Year end
12.31
EziVille Inc.
Korea
12.31
Xi service
Korea
12.31
Korea
12.31
GCS Plus
Korea
12.31
BSM
Korea
12.31
GS O&M
Korea
12.31
Korea
12.31
12.31
12.31
12.31
3.31
12.31
3.31
12.31
12.31
12.31
Equity
Industry
ownership (%)
Hotel
67.56
Home network
system
84
development and
operation
Construction
100
service
Construction
100
service
Resort maintenance
100
Service
Processing
100
Plant operation and
maintenance
100
service
Providing food
98.46
service
Construction
100
Construction
100
Construction
100
Construction
100
service
Construction
100
Construction
100
service
Construction
98
Construction
75
Construction
100
8
12.31
12.31
12.31
12.31
3.31
Cambodia
8.31
Philippines
12.31
Construction
Construction
Rental
Construction
Construction
Real estate
Business
IT Consulting
100
100
100
79.62
49
49
100
(*1) Summarized information of the subsidiary of Parnas Hotel Co., Ltd. is as follows.
Equity
Subsidiary
Location
Industry
Year end
ownership (%)
PNS Co., Ltd.
Korea
management and operation
12.31
100
(*2) Newly established in 2014.
(*3) Although the Group owns less than 50% of the voting rights, the Group is considered to have control of the
companies based on the mutual agreement between the shareholders; so, the investees are classified as
subsidiaries.
(*4) Summarized information of the subsidiaries of GS Inima Environment S.A. is as follows.
Equity
Subsidiary
Location
Industry
Year end
ownership (%)
Aguas de Ensenada, S.A. de C.V.
Mexico
Construction
12.31
100
Ambient Servicos Ambientais de Ribeirao
Brasil
Construction
12.31
100
Preto, S.A.
Aquaria Water LLC
USA
Construction
12.31
87.5
Araucaria Saneamento, S.A.
Brasil
Construction
12.31
51
Chile
Construction
12.31
100
Chile
Construction
12.31
100
Mexico
Construction
12.31
100
USA
Construction
12.31
100
USA
Construction
12.31
100
Brasil
Construction
12.31
100
Mexico
Construction
12.31
98
Brasil
Construction
12.31
50.1
Brasil
Construction
12.31
57
Spain
Construction
12.31
100
Spain
Construction
12.31
50.4
Portugal
Construction
12.31
50
Mexico
Construction
12.31
100
Spain
Construction
12.31
59.2
Spain
Construction
12.31
80
Portugal
Construction
12.31
100
Brasil
Construction
12.31
60
2014
Subsidiary
Parnas Hotel Co., Ltd. (*1)
EziVille Inc.
Xi service
G-Estec Co., Ltd.
GCS Plus
BSM
GS O&M
Sanglak Food Co., Ltd.
GL Project Financing Vehicle 1 Ltd. (*2)
GS E&C Nanjing co., Ltd.
GS Nha Be Development One-member LLC
GS Saigon Development One-member LLC
GS E&C Delhi Pvt. Ltd. (GS E&C India Private
Ltd.)
GS(Cambodia) Development Co., Ltd.
GS Engineering & Construction Mumbai Pvt.
Ltd. (*3)
GS Construction Arabia Co., Ltd.
GS Saudi Co., Ltd.
GS E&C Poland SP.ZO.O
GS Engineering & Construction Spain, S.L
GS E&C Construction Canada Ltd.
GS E&C Panama S.A.
GS Inima Environment S.A. (*1)
GS PP Development Co., Ltd.
GS E&C Thai Co., Ltd.
GS East Asia Manila Inc. (*3)
Assets
\ 1,250,319
34,334
8,356
809
10,031
1,106
3,982
4,910
23,713
112,055
144,853
314,072
Liabilities
\
542,935
13,166
7,498
724
5,565
988
1,490
2,072
5,232
70,524
121,568
280,424
198,949
77,448
13,579
4,413
38,110
7,881
25,683
14,101
(2,382)
283,292
50,443
Sales
\
18,336
13,262
18,094
(5,796)
1,455
53
(3)
6,609
216,012
307
440
85,034
13,285
840
536,819
59,058
684
3,816
3,418
435,885
4,021
386
87,614
19,978
318,740
139,998
15
97
3,660
235,206
816
121,910
80,005
79
147,822
79,561
-
(6,374)
(94,367)
(1,172)
6
11,866
(1,883)
(41)
1,784
29,256
(277)
(274)
2013
Subsidiary
Parnas Hotel Co., Ltd. (*)
EziVille Inc.
Xi service
G-Estec Co., Ltd.
GLS Service
GCS Plus
BSM
GS O&M
Sanglak Food Co., Ltd
GL Project Financing Vehicle 1 Ltd.
GS E&C Nanjing Co., Ltd
Assets
\ 1,210,595
32,552
4,028
957
508
9,024
1,135
3,723
5,753
265,738
166,354
Liabilities
\
510,190
12,214
3,263
851
96
4,882
1,076
2,367
2,879
50,121
130,627
Sales
\
180,841
74,609
14,439
5,088
3,935
36,504
8,641
25,705
19,403
685,744
244,966
109,207
239,518
5,177
51
221,990
3,144
461
20,118
76,988
151
297,199
149,937
5
153,065
11,982
83,379
1,715
28,054
342,397
160
194,181
-
(1,503)
2,016
(2,179)
(3)
(86,702)
(3,153)
6
2,304
(2,419)
(126)
1,913
(2,590)
(143)
13
14
Financial assets
The rights to receive cash flows from the asset have expired, or
The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a pass-through arrangement; and
either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has
neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control
of the asset.
16
The Group assesses at each reporting date whether there is any objective evidence that a financial asset or a
group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if,
and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the
initial recognition of the asset (an incurred loss event) and that loss event has an impact on the estimated future
cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of
impairment may include indications that the debtors or a group of debtors is experiencing significant financial
difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or
other financial reorganization and where observable data indicate that there is a measurable decrease in the
estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
Financial assets carried at amortized cost
For financial assets carried at amortized cost the Group first assesses individually whether objective evidence of
impairment exists individually for financial assets that are individually significant, or collectively for financial assets
that are not individually significant. If the Group determines that no objective evidence of impairment exists for an
individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets
with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually
assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a
collective assessment of impairment.
If there is objective evidence that an impairment loss has incurred, the amount of the loss is measured as the
difference between the assets carrying amount and the present value of estimated future cash flows (excluding
future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows
is discounted at the financial assets original effective interest rate. If a loan has a variable interest rate, the discount
rate for measuring any impairment loss is the current EIR.
The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is
recognized in the consolidated statement of profit or loss and other comprehensive income. Interest income
continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount
the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of
finance income in the consolidated statement of profit or loss and other comprehensive income. Loans together
with the associated allowance are written off when there is no realistic prospect of future recovery and all collateral
has been realized or has been transferred to the Group. If, in a subsequent year, the amount of the estimated
impairment loss increases or decreases because of an event occurring after the impairment was recognized, the
previously recognized impairment loss is increased or reduced by adjusting the allowance account.
17
Financial liabilities
18
Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of
financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and
there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.
2.3.8 Derivative financial instruments and hedge accounting
Derivatives are initially recognized at fair value on the date when a derivative contract is entered into and are
subsequently re-measured at their fair value. Changes in the fair value of the derivatives that are not qualified for
hedge accounting are recognized in the consolidated statements of profit or loss within 'other operating income
(expenses)' or 'finance income (expenses)' according to the nature of transactions.
The Group designates certain derivatives as either:
hedges of the fair value of recognized assets or liabilities or a firm commitment (fair valuehedge); or
hedges of a particular risk associated with a recognized asset or liability or a highly probable forecast
transaction (cash flow hedge)
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged
items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The
Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the
derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash
flows of hedged items.
The fair values of various derivative instruments used for hedging purposes are disclosed in Note 12. Movements
on the hedging reserve in other comprehensive income are shown in Note 12. The full fair value of a hedging
derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is longer
than the Groups normal business cycle and as a current asset or liability when the remaining maturity of the
hedged item is shorter than the Groups normal business cycle. Trading derivatives are classified as a non-current
asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or
liability when the remaining maturity of the hedged item is less than 12 months.
(a) Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the
consolidated statements of profit or loss, together with any changes in the fair value of the hedged asset or liability
that are attributable to the hedged risk.
19
Buildings
Structures
Machinery
Construction equipment
Vehicles
Tools
Equipment
10 to 50 years
10 to 40 years
5 to 20 years
6 to 12 years
6 to 10 years
5 to 6 years
3 to 20 years
The assets residual values, useful lives and methods of depreciation are reviewed at each financial year end, and
adjusted prospectively, if appropriate.
2.3.11 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes
a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset.
All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of funds.
20
Rental rights
Technical rights
Concession assets
Software
Others
20 years
10 years
18 years
4 to 6 years
4 to 6 years
21
Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss.
In respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it
is probable that the temporary differences will not reverse in the foreseeable future.
22
Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss
In respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilized
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be
utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent
that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date. Deferred tax relating to items recognized outside profit or loss is recognized outside
profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other
comprehensive income or directly in equity. Deferred tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation authority.
2.3.18 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable, and represents amounts
receivable for goods and rendering of services arising from normal activities of the Group. It is stated as net of
value added taxes, returns, rebates and discounts, after elimination of inter-company transactions.
The Group recognizes revenue when the amount of revenue can be reliably measured; when it is probable that
future economic benefits will flow to the Group; and when specific criteria have been met for each of the Groups
activities, as described below. The revenue can be reliably measured only when any contingency related to sales is
resolved. The Group bases its estimate on historical results, taking into consideration the type of customer, the
type of transaction and the specifics of each arrangement.
(a) Construction contracts
A construction contract as defined by KIFRS 1011, Construction Contracts, is a contract specifically negotiated for
the construction of an asset.
When the outcome of a construction contract can be estimated reliably and it is probable that the contract will be
profitable, contract revenue is recognized over the period of the contract by reference to the stage of completion.
Contract costs are recognized as expenses by reference to the stage of completion of the contract activity at the
end of the reporting period. When it is probable that total contract costs will exceed total contract revenue, the
expected loss on the construction contract is immediately recognized as an expense.
When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognized only to
the extent of contract costs incurred that are likely to be recoverable. Variations in contract work, claims and
incentive payments are included in contract revenue to the extent that may have been agreed with the customer
and are capable of being reliably measured. Contract costs are recognized as an expense in the period in which
they are incurred.
23
24
25
26
Sales
Inter-company
sales
Net sales
Operating
Profit (loss) (*)
Profit (loss)
before
income tax (*)
Infra
Architectural
Plant
Consolidation Consolidated
works
construction construction
Power
Hotel
Others
Total
adjustment
total
\ 1,109,335 \
2,956,215 \ 4,280,901 \ 1,062,509 \ 198,949 \ 186,753 \ 9,794,662 \
(307,110) \ 9,487,552
(23,522)
1,085,813
(144,419)
2,811,796
(79,286)
4,201,615
(270)
1,062,239
(346)
198,603
(59,267)
127,486
(307,110)
9,487,552
307,110
9,487,552
10,031
96,377
(14,308)
(72,658)
19,128
12,599
51,169
51,169
(76,457)
224,448
(76,181)
(97,288)
14,355
(18,496)
(29,619)
(29,619)
(*) Operating profit (loss) and profit (loss) before income tax are stated after eliminating the intercompany transactions.
(Korean won in millions)
2013
Sales
Inter-company
sales
Net sales
Operating
Profit (loss) (*)
Profit (loss)
before
income tax (*)
Infra
Architectural
Plant
Consolidation Consolidated
works
construction construction
Power
Hotel
Others
Total
adjustment
total
\ 1,175,285 \
3,601,494 \ 3,861,285 \ 1,044,743 \ 180,841 \ 112,971 \ 9,976,619 \ (410,861) \ 9,565,758
(28,237)
1,147,048
(262,887)
3,338,607
(65,095)
3,796,190
(342)
1,044,401
(513)
180,328
(53,787)
59,184
(410,861)
9,565,758
410,861
9,565,758
(30,329)
231,689
(1,084,083)
(46,173)
18,412
(24,967)
(935,451)
(935,451)
(76,505)
270,897
(1,111,433)
(52,638)
6,355
(29,853)
(993,177)
(993,177)
(*) Operating profit (loss) and profit (loss) before income tax are stated after eliminating the intercompany transactions.
27
Architectural
construction
\ 1,462,900 \
842,329
1,306,250
744,320
Plant
construction
Power
Hotel
Others
Total
Consolidation Consolidated
adjustment
total
3,690,315
3,325,733
468,239
371,994
1,210,595
510,190
2,476,882
2,663,295
13,707,133
9,694,185
(1,279,820)
(426,151)
12,427,313
9,268,034
(4) Geographic information for the years ended December 31, 2014 and 2013 are as follows:
(Korean won in millions)
Korea
2014
Sales
Inter-company
sales
Net sales
2013
Sales
Inter-company
sales
Net sales
China &
South-East Asia
Middle East
Others
Total
4,065,574 \
2,053,738 \
2,419,439 \
1,255,911 \
9,794,662
(200,981)
3,864,593
(39,320)
2,014,418
(55,172)
2,364,267
(11,637)
1,244,274
(307,110)
9,487,552
4,938,508
2,184,709
1,832,031
1,021,371
9,976,619
(346,774)
4,591,734
(19,347)
2,165,362
(27,900)
1,804,131
(16,840)
1,004,531
(410,861)
9,565,758
Bank
Short-term
financial assets
Shinhan
2013
4,212
Remarks
4,182
30,000
4,800
30,000
6,000
KEB
50,000
50,000
1,883
2,730
125
130
2,618
877
2,468
-
5,588
Other deposits
30
30
2014
Caixa (Metrofang)
Shinhan and others
Other deposits
28
2014
Allowance
for doubtful
accounts
Receivables
Current assets
Trade receivables
Sub-total
Other receivables
Sub-total
Total
Receivables from
construction contracts
Receivables from
apartment sales
Unbilled amount related to
construction
Notes receivable
Other trade receivables
Other receivables
Accrued revenues
Short-term loans
\
Non-current assets
Long-term trade and
Long-term trade Receivables
\
other receivables
Long-term loans
Leasehold deposits
Deposits provided for business
Total
\
1,590,438
Receivables,
net
(188,656)
1,401,782
91,161
91,161
2,381,578
2,381,578
10,588
22,121
4,095,886
408,032
19,781
337,689
765,502
4,861,388
(568)
(189,224)
(18,177)
(2,050)
(78,115)
(98,342)
(287,566)
10,588
21,553
3,906,662
389,855
17,731
259,574
667,160
4,573,822
82,697
82,697
(130,669)
(492)
(131,161)
502,402
132,738
124,357
842,194
633,071
132,738
124,849
973,355
29
2013
Allowance
for doubtful
accounts
Receivables
Current
Trade receivables
Sub-total
Other receivables
Receivables from
construction contracts
Receivables from
apartment sales
Unbilled amount related to
construction
Notes receivable
Other trade receivables
Non-current
Long-term trade and
Long-term trade receivables
other receivables
Long-term loans
Leasehold deposits
Deposits provided for business
Total
(223,698)
1,905,283
245,707
245,707
1,952,680
1,952,680
35,481
16,992
4,379,841
304,993
25,020
401,872
731,885
5,111,726
(465)
(224,163)
(8,381)
(2,056)
(91,872)
(102,309)
(326,472)
35,481
16,527
4,155,678
296,612
22,964
310,000
629,576
4,785,254
80,625
80,625
527,267
90,951
41,206
740,049
(124,115)
(492)
(124,607)
403,152
90,951
40,714
615,442
Other receivables
Accrued revenues
Short-term loans
Sub-total
Total
2,128,981
Receivables,
net
2014
Trade
Receivables
Receivables not impaired
Up to 1 year
1 to 2 years
Over 2 years
Sub-total
Individually impaired
Total
Allowance for
doubtful accounts
Other
receivables
\
3,119,215
84,308
407,541
3,611,064
484,822
4,095,886
(189,224)
2013
Trade
receivables
\
215,161
72,256
154,449
441,866
323,636
765,502
(98,342)
Other
receivables
\
3,221,766
169,519
392,955
3,784,240
595,601
4,379,841
492,297
61,438
75,457
629,192
102,693
731,885
(224,163)
(102,309)
30
2014
Sub-total
Long-term trade and
other receivables
Trade receivables
Other receivables
Accrued revenues
Short-term loans
Long-term loans
Deposits provided
for business
Sub-total
Total
Beginning
\
224,163
8,381
2,056
91,872
326,472
124,115
Allowance
for doubtful
accounts
\
1,565
11,686
13,251
19,370
Reversal
/ write-off
\
(36,504)
(1,890)
(6)
(13,757)
(52,157)
(12,816)
492
124,607
451,079
19,370
32,621
(12,816)
(64,973)
Ending
189,224
18,177
2,050
78,115
287,566
130,669
492
131,161
418,727
Sub-total
Long-term trade and
other receivables
Trade receivables
Other receivables
Accrued revenues
Short-term loans
Long-term loans
Deposits provided
for business
Leasehold deposits
Sub-total
Total
Beginning
266,244
\
10,573
2,378
194,903
474,098
139,646
2013
Allowance
for doubtful
Reversal
accounts
/ write-off
\
62,539 \ (104,620)
6,008
(8,200)
1,913
(2,235)
2,385
(105,416)
72,845
(220,471)
15,065
(30,596)
Ending
\
224,163
8,381
2,056
91,872
326,472
124,115
1,117
(625)
492
140,763
614,861
181
15,246
88,091
(181)
(31,402)
(251,873)
124,607
451,079
8. Construction contracts
(1) Changes in the outstanding balances construction contracts for the years ended December 31, 2014 and 2013
are as follows:
(Korean won in millions)
Infra works
Architectural construction
Plant construction
Power
Total
Beginning
\
3,360,436
3,861,800
8,630,228
1,408,845
\
17,261,309
2014
Increase (*)
Sales recognized
\
1,475,382 \
1,078,656
2,868,179
2,523,841
5,594,009
4,073,389
1,109,978
1,058,368
\
11,047,548 \
8,734,254
Ending
3,757,162
4,206,138
10,150,848
1,460,455
19,574,603
31
Beginning
3,879,815
4,358,543
8,817,074
2,145,163
\
19,200,595
Infra works
Architectural construction
Plant construction
Power
Total
2013
Increase (*)
Sales recognition
\
626,081 \
1,145,460
1,888,508
2,385,251
3,433,508
3,620,354
352,082
1,088,400
\
6,300,179 \
8,239,465
Ending
3,360,436
3,861,800
8,630,228
1,408,845
17,261,309
(2) Details of construction contracts in progress as at December 31, 2014 and 2013:
(Korean won in millions)
Infra works
Architectural construction
Plant construction
Power
Total
Accumulated
sales
\ 6,855,032
12,640,609
22,398,299
3,694,450
\ 45,588,390
Accumulated
cost
\ 6,440,882
11,322,644
21,815,083
3,525,166
\ 43,103,775
2014
Accumulated
profit
\
414,150
1,317,965
583,216
169,284
\ 2,484,615
Accumulated
cost
\ 5,750,038
10,445,144
19,071,906
2,575,922
\ 37,843,010
2013
Accumulated
profit
\
395,677
1,324,305
739,003
202,688
\ 2,661,673
Reserve
receivables (*)
\
35,694
12,557
145,842
36,782
\
230,875
Advances
\ 163,298
83,493
955,121
128,857
\ 1,330,769
Infra works
Architectural construction
Plant construction
Power
Total
Accumulated
sales
\ 6,145,715
11,769,449
19,810,909
2,778,610
\ 40,504,683
Reserve
receivables (*)
\
23,652
2,314
165,849
9,262
\
201,077
Advances
\ 167,633
116,258
684,501
117,756
\ 1,086,148
2014
Infra works
Architectural construction
Plant construction
Power
Total
Unbilled amount
\
522,476
209,023
1,336,437
313,642
\
2,381,578
Overbilled
amount
\
131,348
391,807
326,120
35,765
\
885,040
2013
Unbilled amount
\
424,852
321,628
866,824
339,375
\
1,952,679
Overbilled
amount
\
88,084
291,718
281,448
70,767
\
732,017
32
Amounts
Total contract attributable to
amount
the Group
\ 6,573,981 \ 2,465,243
4,811,704
1,603,741
5,543,912
1,385,978
4,033,744
1,344,447
2,407,027
1,272,836
(%)
attributable to
the Group
37.50%
33.33%
25.00%
33.33%
52.88%
1,365,940
682,970
50.00%
1,092,478
1,379,130
751,215
781,629
655,487
551,652
450,729
429,896
60.00%
40.00%
60.00%
55.00%
Principal
contractee
Hyundai E&C
JGC
JGC
GS E&C
Petrofac
Arabian Bemco
Contracting Co., Ltd.
GS E&C
Hyundai E&C
GS E&C
GS E&C
2014
Land held for development
Finished housing
Goods and products
Raw materials
Supplies
Finished buildings
Unfinished building construction
Unfinished housing construction
Total
2013
249,993
10,394
500
23,220
1,275
327,843
613,225
156,534
42,618
432
32,314
1,314
7,599
111,787
146,642
499,240
(2) Other current assets as at December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
Prepaid construction cost
Advance payments
Prepaid expenses
Prepaid value added tax
Prepaid income taxes
Total
2013
355,363
451,366
62,270
80,279
32,765
982,043
372,527
449,875
35,665
63,970
19,241
941,278
33
2014
Loans and
other
receivables
Cash and cash
equivalents
Trade and other
receivables (*)
Short-term
financial assets
Long-term trade and
other receivables
Long-term
financial assets
Total
Financial assets
at fair-value
through
profit or loss
2,151,187 \
2,192,243
170,811
842,194
169,624
5,526,059 \
Derivative
financial
instruments
Available-forsale
financial assets
Total
\ 2,151,187
2,192,243
23
161,837
332,671
842,194
177,842
177,842
347,466
\ 5,865,761
23
161,837
2013
Loans and
other
receivables
Cash and cash
equivalents
Trade and other
receivables (*)
Short-term
financial assets
Long-term trade and
other receivables
Long-term
financial assets
Total
Financial assets
at fair-value
through
profit or loss
Derivative
financial
instruments
Available-forsale
financial assets
Total
\
1,865,508 \
2,832,574
130,919
615,442
172,884
5,617,327 \
1,865,508
2,832,574
1,175
191,094
323,188
615,442
160,394
160,394
333,278
\ 5,969,990
1,175
191,094
34
Financial liabilities
at fair-value through
profit or loss
\
-
- \
4,647
205,279
136,080
223,747
2,482,583
146,526
6,381,276
136,080
223,747
2,487,230
146,526
6,586,555
(*1) Consists of accrued expenses, accrued dividends and current membership guarantee deposits.
(*2) Consists of security deposits and non-current membership guarantee deposits.
(*3) Represents provision for financial guarantees.
(Korean won in millions)
2013
Financial liabilities
Derivative
Other financial
at fair-value through
financial
liabilities at
profit or loss
instruments
amortized costs
Total
Trade and other payables
\
\
\
\
1,527,396
1,527,396
Short-term financial liabilities
9,970
122,071
2,058,005
2,190,046
Other current liabilities (*1)
292,565
292,565
Other non-current liabilities (*2)
191,750
191,750
Long-term financial liabilities
4,321
2,352,042
2,356,363
Non-current provision
liabilities (*3)
162,474
162,474
Total
\
9,970 \
126,392 \
6,584,232 \ 6,720,594
(*1) Consists of accrued expenses, accrued dividends and current membership guarantee deposits.
(*2) Consists of security deposits and non-current membership guarantee deposits.
(*3) Represents provision for financial guarantees.
35
as follows:
(Korean won in millions)
2014
Loans and
receivables
\ 59,626
-
Assets
Other
(liabilities) at
Availablefinancial
fair-value
Derivative
for-sale
liabilities at
through
financial
financial
amortized
profit or loss instruments
assets
costs
Total
\
- \
- \
134 \
- \ 59,760
(116,031)
(116,031)
Interest income
Interest expense
Gain (loss) on foreign
currency transactions
40,819
Gain (loss) on foreign
currency translation
(938)
Gain (loss) on
derivative valuation
Gain (loss) on
derivative
transactions
Dividend income
Other finance
income (loss)
15,302
\ 114,809 \
Total
(67,757)
(26,938)
51,882
50,944
15,117
15,125
(12,615)
-
2,719
-
265
(9,896)
265
(329)
(12,936) \
17,836
(4,283)
(3,884) \
31,016
(100,890) \
41,706
14,935
2013
Interest income
Interest expense
Gain (loss) on foreign
currency transactions
Gain (loss) on foreign
currency translation
Gain (loss) on
derivative valuation
Gain (loss) on
derivative
transactions
Dividend income
Other finance
income (loss)
Total
Loans and
receivables
\ 60,695
-
Assets
(liabilities) at
fair-value
through
profit or loss
\
-
AvailableforDerivative
sale
financial
financial
instruments
assets
\
\
157
-
Other
financial
liabilities at
amortized
costs
Total
\
\
60,852
(131,023)
(131,023)
(47,953)
61,541
13,588
(16,186)
19,279
3,093
(9,357)
24,301
14,944
27,343
-
(11,797)
-
136
15,546
136
12,504
(77,591)
\ (77,298)
(47,774)
\ (51,218) \
(58)
17,928
16,187
(109,236)
(34,016) \ (132,100)
36
2014
Government bonds
Debt securities
Marketable equity securities
Non-marketable equity securities
Total
2013
\
894
5,242
171,706
177,842
3,616
5,242
303
151,233
160,394
(2) Changes in available-for-sale financial assets for the years ended December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
Beginning
Acquisition
Disposal
Impairment
Valuation
Changes in consolidation scope
Ending
2013
\
160,394
54,050
(32,518)
(4,401)
425
(108)
177,842
214,053
41,366
(19,196)
(76,770)
941
160,394
(3) Details of Marketable equity securities as at December 31, 2014 and 2013 are as follows:
(Korean won in millions)
Investee
Dongyang Engineering
&Constructon CORP.
NamKwang Engineering
& Constructon
Byucksan Engineering
& Constructon
Total
Number
of shares
2014
Equity
Acquisition
Interest (%)
cost
Book value
2013
Acquisition
cost
Book value
\
402
152
43
653
1,098
21
130
303
37
Acquisition cost
Investee
Public Development Co., Ltd.
Asiad Country Club Co., Ltd.
(Formerly, Busan Travel &
Development Co., Ltd.)
Alpha Dome City Co., Ltd.
Bichaenoori Development
Co., Ltd. (*1)
Bichaenoori Co., Ltd. (*1)
The 2nd YoungDong Highway
Co., Ltd.
Junju Drain Co., Ltd.
Eumseong Sewage Pipe
Co., Ltd.
Y-S highway Co., Ltd.
Youngduk&Bio Co., Ltd.
Yangju Eco Corporation
Alpharos PFV Co., Ltd.
Alpharos Mixed-use
Development Co., Ltd.
Alpha Dome City Asset
Management Co., Ltd
Seoul Northern Highway Co.,
Ltd.
New Seoul Railroad Co., Ltd.
MILESEUM Co., Ltd.
Midan City Development Co.,
Ltd.
Masan Drain Co., Ltd.
Dream Hub Project Financial
Investment
Daejeon Sewage Pipe Co.,
Ltd.
Dangyul Co,.Ltd.
Nonsan Drain Co., Ltd.
South-Seoul LRT Co., Ltd.
Gyeonggi Highway Co., Ltd.
Kangreung Sewage Pipe Co.,
Ltd.
Kangnam Inter Circular Road
Co., Ltd.
Gaya Railway Co., Ltd.
The Korea Economic Daily
International Convention
Center Jeju
M-Ciety Development Co., Ltd.
M-Cieta Co., Ltd.
Wonju Green Co., Ltd.
Mugung Hwa Trust Co., Ltd.
GS Cu Chi Development
One-member Ltd.
Uijeongbu LRT Inc.
Ulsan green Co., Ltd.
Clean Gimpo Co., Ltd.
Number
of shares
394,655
Equity
Interest (%)
2014
17.09 \ 3,947
Book value
2013
3,947
2014
4,258
2013
4,258
80,000
3,933,600
2.67
4.25
400
19,668
400
19,668
17,587
17,587
657,800
11,500
11.50
11.50
3,289
58
3,289
58
3,289
58
3,116,993
207,060
5.84
7.90
15,585
1,035
17,120
1,035
15,000
1,035
16,535
1,035
67,210
4,324,000
34,870
1,900
2,299,200
6.30
10.00
4.22
19.00
9.58
336
21,620
174
10
11,496
336
17,255
174
10
11,496
336
21,620
174
10
-
336
17,255
174
10
-
9,580
9.58
48
48
4,000
4.00
20
20
20
20
2,730,560
62,735
86,645
7.67
7.46
1.63
13,653
314
433
14,017
314
433
13,653
314
433
14,017
314
433
1,809,760
220,890
10.14
8.14
9,049
1,104
9,049
1,104
7,938
1,104
7,938
1,104
4,000,000
2.00
20,000
20,000
108,456
128,228
91,868
1,370
495,000
4.00
11.29
11.90
13.70
4.57
830
641
459
7
2,475
830
564
459
7
2,475
830
641
459
7
2,475
830
564
459
7
2,475
50,682
3.30
253
253
253
253
414,000
305,490
646
0.17
2.30
0.00
2,070
1,527
14
2,070
1,527
14
2,070
1,527
14
2,070
1,527
14
100,000
226,376
-
0.30
11.03
-
500
1,132
-
500
2,244
13
1,132
950
500
1,132
-
500
2,244
13
1,132
950
0.1
8,663,394
701,368
403,032
5.00
47.54
39.47
22.81
713
45,226
3,507
1,949
713
45,226
3,507
1,949
615
3,507
1,949
615
3,507
1,949
38
Acquisition cost
Number
Investee
of shares
Seoul Tunnel Co., Ltd.
270,689
Green Energy Development
Co., Ltd.
81,000
Seoul-Munsan Highway Co.,
Ltd.
572,815
Oksan Ochang Highway
Corporation
3,782,040
Eun Pyung New Road Corp.
435,200
Gumi Green Water Co., Ltd.
380
Paju-Yangju Powerful Army
Co., Ltd.
89,289
Evergreen Goyang Co., Ltd.
24,267
Seoul Beltway Corporation
400
Daegu Green Energy
Center CO., Ltd.
474,400
Geoje Big Island PFV CO., Ltd.
Geoje Big Island asset
Management
HANIL ENGINEERING &
CONSTRUCT CO., Ltd.
13,810
KUKDONG E&C
28,948
POONGLIM INDUSTRIAL
CO.,LTD.
280
Bumyang Kunyoung
DAEJEON Green Energy
Centre Ltd.
396,792
Bumyang asset management
725
Seo-seoul City Expressway
Co., Ltd.
290
Seoseoul highway (Fnds)
35,158
Seoul National University
Medical Hub Co., Ltd.
3,750
Shiheung echopia Co., Ltd.
30,530
Ssangyong E&C Co., Ltd.
70,608
STX E&C Co., Ltd.
7,598
Korea Investment Trust
Management
1
Engineering Construction
Financial Cooperative
8,950
Electric Construction Financial
Cooperative
600
Construction Guarantee
Cooperative
14,263
Information & Communication
Financial Cooperative
440
Fire Guarantee Cooperative
40
Korea Housing Guarantee
Co., Ltd. (*2)
1,038,490
LIG E&C and Others
5,035
Equity fund
Total
Equity
Interest (%)
12.05
2014
1,353
Book value
2013
65
2014
1,353
2013
65
27.00
405
405
405
405
46.14
2,864
2,637
2,864
2,637
60.00
55.06
0.45
18,910
2,176
2
3,015
2,176
2
18,910
2,176
2
3,015
2,176
2
8.00
1.83
20.00
447
121
2
442
95
2
447
121
2
442
95
2
40.01
-
2,372
-
2,372
1,000
2,372
-
2,372
1,000
10
10
0.46
0.59
69
145
154
145
69
145
154
145
0.00
-
1
-
1
9
1
-
1
9
51.08
0.14
1,984
4
1,984
4
29.00
39.06
1
176
1
176
25.00
3.51
0.48
0.25
19
153
353
38
19
153
353
38
29.07
9,960
9,960
1.26
3,925
180
3,925
180
0.02
98
98
98
98
0.36
14,092
12,092
14,244
12,244
0.05
0.02
61
20
61
20
61
20
61
20
0.16
0.15
21,532
846
21,532
608
8,462
3,880
8,462
4,096
\ 265,671
8,768
\ 240,095
\ 171,706
10,070
\ 151,233
2014
Valuation
Assets Liabilities
Accumulated
other comprehensive income (*)
Gain
Loss
Net
Gain or loss
Loss
Gain
Net
Derivative
Forwards \ 33,751 \ 149,300 \ 9,990 \ 82,299 \ (72,309) \ 37,502 \ 118,215 \ (80,713)
instruments
Interest
4,647
1,474
1,474
rate swap
Sub-total
33,751
153,947
9,990
82,299
(72,309)
38,976
118,215
(79,239)
Firm
Forwards
128,108
51,332
109,391
21,957
87,434
commitments
Total
\ 161,859 \ 205,279 \ 119,381 \ 104,256 \ 15,125 \ 38,976 \ 118,215 \ (79,239)
(*) Gain (loss) on valuation of derivatives are presented prior to income tax effects.
(Korean won in millions)
2013
Valuation
Assets
Liabilities
Derivative
instruments
Forwards
Gain
Accumulated
other comprehensive income (*)
Gain
Loss
Net
Net
Interest
rate swap
Sub-total
Firm
Forwards
commitments
Total
Gain or loss
Loss
4,321
(1)
1,972
1,972
123,654
61,924
58,524
17,587
40,937
58,489
59,557
(1,068)
68,615
74,437
48,987
74,981
(25,994)
(*) Gain (loss) on valuation of derivatives are presented prior to income tax effects.
40.00
30.00
Beginning
\
Increase
(Decrease)
- \
3,058
Gain (loss) on
equity method
- \
(515)
Changes in
equity
- \
626
Changes in
scope of
consolidation
- \
79
Ending
- \
-
3,248
21.95
1,394
183
(229)
1,348
33.33
4,440
687
(396)
4,731
25.49
6,237
1,862
(548)
7,551
25.50
17,046
3,872
(1,442)
19,476
7,230 \
(2,536) \
(150)
(150) \
36,354
40.00
\
150
32,325 \
(515) \
(*) The Group lost significant influence due to change of equity interest.
40
40.00
49.00
Increase
(Decrease)
Beginning
\
- \
618
Gain (loss) on
equity method
- \
-
Changes in
equity
- \
(65)
Changes in
scope of
consolidation
\
Ending
- \
(588)
35
49.00
30.00
2,977
(396)
572
-(95)
3,058
21.95
1,373
179
(158)
1,394
33.33
3,663
672
105
4,440
25.49
4,524
1,830
(117)
6,237
25.50
11,053
6,310
(317)
17,046
9,498 \
(547) \
(588) \
150
32,325
20.00
24,208 \
150
(246) \
(2) Changes in joint venture for the year ended December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
G&M Estate Co., Ltd.
Hialeah Water, LLP
Total
Equity
ownership (%)
50.00
50.00
Beginning
121
\
121
\
Gain (loss) on
equity method
\
140
(1,435)
\
(1,295)
Changes in equity
\
1,793
\
1,793
Ending
\
261
358
619
Equity
ownership (%)
50.00
Beginning
\
Gain (loss) on
equity method
100
\
Changes in equity
21
\
Ending
\
121
(3) Equity method of accounting has been suspended due to its accumulated losses, and therefore unrecognized
losses in equity for the years ended December 31, 2014 and 2013 are as follows:
(Korean won in millions)
Beginning
47,336
2014
Increase (Decrease)
\
(222)
Beginning
26,706
51,249
77,955
2013
Increase (Decrease)
20,630
(51,249)
\
(30,619)
Ending
\
47,114
(Korean won in millions)
Ending
47,336
47,336
41
2014
Assets
Associates Major Development
Co., Ltd.
GS-HP Corp.
Cadiz San
Fernando, A.I.E.
Participes de
Biorreciclaje S.A.
Shariket Miyeh
Ras Djinet, Spa
Shariket Tahlya
Miyah
Mostaganem, Spa
Joint
G&M Estate
Venture
Co., Ltd.
Hialeah Water, LLP
Liabilities
\
414,569
7,764
532,354
546
Net assets
\
Net income
(loss)
Sales
(117,785)
7,218
71,417
5,302
555
2,086
11,484
5,340
6,144
6,706
838
100,521
86,033
14,488
23,174
2,104
128,948
99,322
29,626
28,064
7,305
235,217
158,844
76,373
42,458
15,183
837
3,035
369
3,751
468
(716)
1,500
117
226
(2,869)
2013
Assets
Associates Major Development
Co., Ltd.
GS-HP Corp.
Cadiz San
Fernando, A.I.E.
Participes de
Biorreciclaje S.A.
Shariket Miyeh
Ras Djinet, Spa
Shariket Tahlya
Miyah
Mostaganem, Spa
HNH Development
Co., Ltd
Joint
G&M Estate
Venture
Co., Ltd.
Liabilities
\
659,285
7,973
777,625
1,298
Net assets
\
Net income
(loss)
Sales
(118,340)
6,675
39,026
5,285
(51,577)
1,908
14,271
7,919
6,352
5,999
817
104,657
90,971
13,686
24,854
2,058
141,579
117,108
24,471
29,724
7,181
245,971
179,120
66,851
45,473
24,747
108,110
152,235
(44,125)
(6,286)
343
101
242
430
42
Acquisition
cost
\ 1,436,253
909,259
111,201
61,626
Land
Buildings
Structures
Machinery
Construction
equipment
77,878
Vehicles
21,117
Tools
21,089
Equipment
218,241
Constructionin progress
157,856
Total
\ 3,014,520
2014
Accumulated
Net book
Accumulated impairment
losses
value
depreciation
\
- \
- \ 1,436,253
(297,074)
612,185
(32,956)
78,245
(43,145)
18,481
(20,342)
(17,992)
(14,592)
(132,378)
\ (558,479)
Acquisition
cost
\ 1,373,258
852,230
110,249
52,284
57,536
3,125
6,497
85,863
40,575
20,615
21,108
173,877
(15,871)
(18,888)
(13,963)
(124,048)
157,856
\ 2,456,041
145,899
\ 2,790,095
\ (534,991)
(95)
24,704
1,727
7,145
49,734
(12,208)
145,899
\ 2,242,896
42
Land
Buildings
Structures
Machinery
Construction
equipment
Vehicles
Tools
Equipment
Constructionin progress
Total
Beginning
Acquisition
Disposal
\ 1,373,258 \
85,717 \ (22,705)
551,435
2,276
(37,351)
79,959
1,717
9,035
2,711
(393)
24,704
1,727
7,145
49,734
49,116
2,402
1,861
32,402
145,899
2,242,896 \
Exchange
Depreciation Impairments
Transfer
differences
Ending
\
- \
- \
- \
(17) \ 1,436,253
(27,993)
116
119,858
3,844
612,185
(3,476)
17
28
78,245
(2,071)
1
9,208
(10)
18,481
(8,831)
(340)
(778)
(1,021)
(7,565)
(662)
(1,637)
(16,896)
142,142
320,344 \ (71,419) \
(60,300) \
21,416
112
(2)
(94)
228
(131,548)
117 \
18,951 \
57,536
3,125
6,497
85,863
1,363
157,856
5,452 \ 2,456,041
(Korean won in millions)
2013
Land
Buildings
Structures
Machinery
Construction
equipment
Beginning
\ 1,411,102
592,035
80,118
9,686
Changes in
consolidation
scope
\
490
-
6,860
3,065
5,591
50,203
Vehicles
Tools
Equipment
Constructionin progress
Total
95,288
\ 2,253,948
Acquisition
Disposal
\
65,227 \ (105,119)
4,231
(24,743)
2,780
(539)
479
(573)
22,327
182
3,654
10,437
494
(61)
(653)
(441)
(1,704)
167,059
\
Depreciation
Impairments
Transfer
\
- \
- \
2,044
(32,074)
(9,595)
22,350
(2,809)
41
370
(1,375)
304
546
(3,806)
(821)
(1,595)
(12,735)
276,376 \
(133,833)
280
(55,215)
(8,970)
Ending
\ 1,373,258
551,435
79,959
9,035
48
(46)
(68)
(283)
24,704
1,727
7,145
49,734
(664)
4
3,532
Exchange
differences
\
4
(1,259)
(2)
(32)
(116,172)
\
(87,990)
(276)
145,899
(1,914)
\ 2,242,896
(3) Collateral pledged to financial institutions for borrowings as at December 31, 2014 is as follows.
(Korean won in millions)
2014
Carrying
amount
Land & building
1,147,555
Secured
amount
\
347,000
Related account
Long-term borrowings
and others
Related amount
\
63,812
Secured party
KDB and others
2013
Carrying
amount
Land & building
990,267
Secured
amount
\
634,368
Related account
Long-term borrowings
and others
Related amount
\
12,373
Secured party
KDB
43
Goodwill
Rental rights
Memberships
Computer
software
Concession
assets
Technical rights
Others
Total
(24)
Amortization
\
(327)
-
Changes in
consolidation
scope
\
-
Exchange
differences
\
(5,119)
18
Beginning
\
62,555
1,528
52,199
Acquisition
\
-
2,700
1,221
(768)
(3)
(29)
3,121
40,354
35,220
343
194,899
1,221
(24)
(10,060)
(4,060)
(186)
(15,401)
(3)
(2,870)
(2,715)
(15)
(10,730)
27,424
28,445
142
169,962
Disposal
\
Ending
57,436
1,201
52,193
Beginning
\
63,270
1,856
52,083
Acquisition
\
105
2,840
30,285
39,456
31,633
221,423
Disposal
Exchange
differences
\
(715)
11
(694)
19
(13)
2,700
(9,572)
(4,202)
(33,903)
(48,699)
2,567
2,586
873
(34)
10
132
40,354
35,220
343
194,899
Amortization
\
(328)
-
567
(19)
18,768
36
19,476
(19)
Transfer
\
Ending
62,555
1,528
52,199
Allocated goodwill
57,436
Goodwill impairment reviews are undertaken annually. The impairment review performed in 2014 suggests that the
carrying value of cash generating units does not exceed the recoverable amount. The recoverable amounts of all
CGUs have been determined based on value-in-use calculations. The key assumptions used for value-in-use
calculations in 2014 are as follows:
(Korean won in millions)
Main assumption
(*1) Operation profit margin rate is used to extrapolate cash flows for next five years.
(*2) Perpetual growth rate is consistent with the projected growth rate after five years in industry reports.
(*3) Post-tax discount rate is applied to the cash flow projections.
44
2014
Beginning
Changes in consolidation scope
Acquisition
Transfer
Disposal
Depreciation
Impairment
Exchange differences
Ending
Acquisition cost
Accumulated depreciation
Accumulated impairment losses
2013
167,188
232
10,876
(55,247)
(1,278)
(700)
67
121,138
126,472
(2,897)
(2,437)
\
\
298,980
44,906
2,817
70,255
(242,515)
(2,526)
(1,042)
(3,687)
167,188
176,553
(5,328)
(4,037)
\
\
(2) Gain and loss on investment properties recognize in profit or loss for the years ended December 31, 2014 and
2013 are as follows:
(Korean won in millions)
2014
Lease income
Operating expenses
Total
2013
2,315
4,333
(2,018)
4,971
5,847
(876)
(3) Fair value of investment properties approximate their book values as at December 31, 2014 and 2013.
17. Current and non-current liabilities
(1) Trade and other payables as at December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
Trade payables
Other payables
Total
2013
1,513,449
119,758
1,633,207
1,382,476
144,920
1,527,396
(2) Details of other current liabilities as at December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
Advances from construction contracts
Advances from apartment sales
Overbilled amounts related to construction
Advances from customers
Withholdings
Deposits received
Accrued expenses
Dividends payable
Unearned revenues
Value added tax withheld
Membership guarantee deposits
Other liabilities
Total
2013
1,330,769
43,898
885,040
36,999
96,282
7,757
76,770
13
9,364
31,435
172,993
77,467
2,768,787
1,086,148
9,007
732,018
52,541
130,121
8,494
101,440
13
6,830
45,825
191,113
53,477
2,417,027
45
2014
Long-term trade and other payables
2013
136,080
(4) Details of other non-current liabilities as at December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
Long-term deposits received
Leasehold deposits received
Membership guarantee deposits
Total
2013
9,387
111,219
112,528
233,134
16,213
83,416
108,334
207,963
2014
Short-term financial liabilities
Short-term borrowings
Current portion of long-term debts
Present value discount
Derivative liabilities
Total
Long-term financial liabilities
Long-term borrowings
Present value discount
Debentures
Discount on debentures
Conversion right adjustments
Derivative liabilities
Others (*)
Total
\
\
2013
1,025,712
484,120
(475)
200,632
1,709,989
1,573,427
(95,403)
938,760
(3,209)
(3,510)
4,647
72,518
2,487,230
702,229
1,356,192
(416)
132,040
2,190,045
1,482,926
(121,332)
829,723
(2,454)
4,321
163,178
2,356,362
(*) Fair value of put option, which the Company has provided to financial investors by virtue of the shareholders'
agreement as regards participation in the acquisition of a subsidiary.
46
Type
Usance
Creditor
ANZ
BNP Paribas
BOA
CACIB
ING BANK
JP Morgan
NOVASCOTIA
RBS
SC
SG
Kookmin
Nonghyup
Deutsche
KDB
Suhyup
Shinhan
KEB
Woori
ICBC
China
Hana
General borrowings Korea Exim
Korea Exim
Korea Exim
Korea Exim
Korea Exim
KEB
KEB
KEB
Hana
Hana
ANZ
Subsidiaries
KDB
HSBC
Shinhan
HSBC and
others (*)
Total
Maturity
2015-03-25
2015-06-22
2015-06-16
2015-06-22
2015-05-25
2015-06-29
2015-06-29
2015-05-07
2015-06-29
2015-06-22
2015-06-29
2015-06-29
2015-06-29
2015-06-02
2015-06-19
2015-06-26
2015-02-17
2015-04-30
2015-02-17
2015-06-19
2015-07-23
2015-01-06
2015-12-09
2015-02-06
2015-02-26
2015-02-26
2015-04-25
2015-12-31
2014
21,722
219
4,449
5,880
5,683
71,646
34,334
141
59,026
6,731
11,311
19,994
39,248
2,378
14,150
55,274
53,481
46,117
181,063
100,051
55,219
22,559
16,777
53,901
60,300
54,818
5,299
23,941
\
1,025,712
2013
16,893
10,376
656
15,589
14,848
4,472
15,374
1,724
14,851
18,588
55,379
20,804
7,736
43,950
6,997
15,081
10,096
43,069
13,980
12,440
62,361
158,227
22,031
16,837
52,497
3,290
44,083
702,229
(*) Future cash flows that occur in the Service Concession Arrangements have been pledged as collateral (Note
34).
47
Type
Long-term borrowings
in Korean won
Long-term borrowings
in foreign currency
Subsidiaries
Maturity
2025-03-24
1.00
2016-05-20
2018-01-29
2016-04-29
2019-02-20
2019-05-29
4.70
3.48
5.50
3.48~3.49
4.25~4.40
150,000
500,000
29,000
300,000
180,000
500,000
300,000
180,000
Korea Exim
2016-07-16
3M Libor + 2.25~2.29
603,036
1,039,826
HSBC
KDB
Korea Exim
Bank of China and
others
Caixa and others
(*2)
2017-05-22
2020-12-15
2016-08-26
3M Libor + 3.25
2.77~3.61
3M Libor + 2.37
21,984
34,812
109,882
21,106
12,373
106,038
84,529
2035-02-12
TR + 8.30
115,502
66,692
2,056,156
(482,729)
1,573,427
2,322,504
(839,578)
1,482,926
(95,403)
(121,332)
\ 1,478,024
\ 1,361,594
Creditor
Korea Housing
Guarantee(*1)
1st BPFC
SK Securities
LIG Insurance
KTB Securities
Korea Exim
Sub-total
Less: current portion
Sub-total
Less: discount on
long-term borrowings
Total
2014
\
2013
11,940
11,940
(*1) Non-marketable equity securities provided as collateral to Korea Housing Guarantee Co., Ltd.
(*2) Future cash flows that occur in the Service Concession Arrangements have been pledged as collateral (Note 34).
(4) Details of debentures as at December 31, 2014 and 2013 are as follows:
(Korean won in millions)
Type
Bonds with fixed
interest rate
Foreign bonds
Bonds of subsidiaries
in Korean won
Series
125th - non-guaranteed
debentures
127th - non-guaranteed
debentures
128-1st - non-guaranteed
debentures
128-2nd - non-guaranteed
debentures
126th - non-guaranteed
debentures
Convertible Bond (*1)
29th - non-guaranteed
debentures
30th - non-guaranteed
debentures
Bonds of subsidiaries in
Bond(*2)
foreign currency bond
Sub-total
Less: current portion
Balance
Less: discount on
debentures
Less: conversion
right adjustment
Total
Maturity
2017-10-09
3.36
200,000
200,000
2016-02-05
3.54
320,000
320,000
2018-02-05
3.70
60,000
60,000
316,615
2019-01-28
3.25
109,882
2017-07-05
3.82
100,000
100,000
2018-05-28
3.20
100,000
100,000
2030-03-01
TR + 9.00
50,269
49,723
940,151
(1,391)
938,760
1,346,338
(516,615)
829,723
(3,209)
(2,454)
(3,510)
2014
\
2013
-
932,041
200,000
827,269
48
49,501
(*) The present value of the defined benefit obligation is calculated by deducting contributions to the National
Pension Fund of 972 million as at December 31, 2014 (2013: 1,057 million).
49
2014
Beginning balance
Current service cost
Interest expense
Remeasurements:
- Actuarial gains and losses arising from
changes in demographic assumptions
- Actuarial gains and losses arising from
changes in financial assumptions
- Experience adjustments
Exchange differences
Payments from plans:
- Benefit payments
Liabilities transferred to a related party
Ending balance
2013
274,058
47,333
10,313
47,309
299,092
56,948
10,322
(68,864)
1,470
(6,043)
30,204
15,635
73
(38,033)
(38,033)
(110)
340,943
(70,220)
7,399
35
(23,696)
(23,696)
221
274,058
(3) The movements in the fair value of plan assets for the years ended December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
Beginning balance
Interest income
Remeasurements:
- Return on plan assets (excluding amounts
included in interest income)
Contributions:
- Employers
Payments from plans:
- Benefit payments
- Management fee
Assets transferred from a related party
Ending balance
2013
224,557
8,452
(2,854)
(2,854)
47,665
47,665
(30,320)
(29,865)
(455)
(96)
247,404
212,922
7,413
(249)
(249)
23,850
23,850
(19,401)
(18,860)
(540)
22
224,557
(4) The amounts recognized in statement of profit or loss for the years ended December 31, 2014 and 2013 are as
follows:
(Korean won in millions)
2014
Current service cost
Net interest
2013
47,333
2,316
49,649
56,948
3,449
60,397
2014
Cost of sales
Selling and administrative expenses
Total
\
\
2013
37,455
12,194
49,649
\
\
43,051
17,346
60,397
50
2014
2.92%~3.14%
3.00%~4.38%
Discount rate
Future salary increase (including inflation)
2013
3.99%~4.07%
2.90%~3.00%
Mortality rates used as actuarial assumptions are based on post 2012 figures announced by the Insurance
Development Institute, was used.
(6) A quantitative sensitivity analysis for significant assumptions as at December 31, 2014 is as shown below:
(Korean won in millions)
Assumptions
Discount rate
Future salary increases
2014
Provisions for financial guarantee
Provisions for construction warranty
Provisions for others
Total
2013
146,527
129,237
11,314
287,078
162,474
130,994
8,283
301,751
51
Location
Gyeonggi Province
Gyeonggi Province
Gyeonggi Province
Gyeonggi Province
Gyeonggi Province
Chungcheong Province
Gyeonggi Province
Seoul
Gyeonggi Province
Gyeonggi Province
creditor
Securities
and others
Securities
and others
Securities
and others
Securities
and others
Securities
and others
Securities
and others
Securities
and others
Securities
and others
Securities
and others
Securities
and others
Loan balance
\
Guarantee
money
Details
Loan period
Type
ABCP, ABSTB
and other loan
ABCP, ABSTB
and other loan
ABCP, ABSTB
and other loan
ABCP, ABSTB
and other loan
ABCP, ABSTB
and other loan
ABCP, ABSTB
and other loan
279,466
\ 279,466
223,500
223,500
186,500
186,500
176,300
176,300
144,473
144,473
112,000
112,000
110,000
110,000
ABCP, ABSTB
80,000
80,000
ABCP, ABSTB
78,800
78,800
ABCP, ABSTB
63,900
63,900
ABCP, ABSTB
and other loan
52
2013
200,000,000 shares
5,000
51,000,000 shares
255,000 million
(*) The Company issued 20,000,000 shares at \5,000 par value during the year ended December 31, 2014 and
issued at a price of \27,600 per share.
(2) Details of share premium as at December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
Gain on sale of treasury stock
Additional paid-in capital
Gain on business combination
Other additional capital
Total
2013
9,724
558,104
15,002
27,804
610,634
9,724
109,735
15,002
24,675
159,136
(3) Details of other components of equity as at December 31, 2014 and 2013, are as follows:
(Korean won in millions)
2014
Treasury stock (*1)
Other component of equity (*2)
Total
\
\
2013
(75,733)
(65,078)
(140,811)
\
\
(75,733)
(69,510)
(145,243)
(*1) To stabilize the Groups share price, the Group purchased 1,439,281 shares of own stock.
(*2) Present value of exercising price of put option, which the Group has provided to financial investors by virtue of
the shareholders' agreement as regards participation in the acquisition of a subsidiary, was recorded.
53
2014
Gain on valuation of derivative instruments
Loss on valuation of derivative instruments
Gain on valuation of available-for-sale financial assets
Loss on valuation of available-for-sale financial assets
Gain on exchange differences on translations of
foreign operations
Loss on exchange differences on translations of
foreign operations
Share of other comprehensive income of associates
Share of other comprehensive loss of associates
Total
2013
28,427
(86,681)
6,766
(3,337)
42,840
(44,385)
7,765
(3,773)
56,814
58,347
(90,940)
1,243
(230)
(87,938)
(83,258)
1,122
(271)
(21,613)
2014
Legal reserves
Appropriated retained earnings for business stabilization
Discretionary reserves
Remeasurements of net defined benefit liability
Other consolidated retained earnings
Unappropriated accumulated deficit
Total
79,869
844,653
2,870,344
(26,040)
18,294
(1,253,069)
2,534,051
2013
\
79,639
844,653
2,871,604
11,567
11,222
(1,201,985)
2,616,700
2014 (*1)
2013
Loss attributable to equity holders of
\
\
the parent company
(41,071,813,801)
(828,196,424,626)
Weighted average number of ordinary
shares in issue (*2)
61,595,606
51,724,730
Basic and diluted loss per share
\
\
(667)
(16,012)
(*1) Although the Group holds convertible bonds which have a potential dilutive effect, diluted loss per share
amounts are the same as basic loss per share amounts due to an anti-dilutive effect on loss per share.
54
2014
Number of
Number of
shares
days
51,000,000
365
(1,439,281)
365
17,089,783
202
746,206
202
2,164,011
365
Period
Shares at the beginning
2014.1.1~2014.12.31
Treasury stock
2014.1.1~2014.12.31
Paid-in capital increase
2014.6.13~2014.12.31
Increase in capital stock
2014.6.13~2014.12.31
without consideration (*)
2014.1.1~2014.12.31
Total
Weighted average number of ordinary shares outstanding
Number of shares
X Number of days
18,615,000,000
(525,337,565)
3,452,136,166
150,733,612
789,864,015
22,482,396,228
61,595,606
(*) Effect of increase in capital stock without consideration due to paid-in capital increase at the price less than
under the market price is reflected.
(Korean won except for shares)
2013
Shares at the beginning
Treasury stock
increase in capital stock
without consideration (*)
Period
2013.1.1~2013.12.31
2013.1.1~2013.12.31
Number of
shares
51,000,000
(1,439,281)
2013.1.1~2013.12.31
2,164,011
Total
Weighted average number of ordinary shares outstanding
Number of
days
365
365
365
Number of shares
X Number of days
18,615,000,000
(525,337,565)
789,864,015
18,879,526,450
51,724,730
(*) Effect of increase in capital stock without consideration due to paid-in capital increase at the price less than
under the market price is reflected.
55
2014
Salaries
Retirement benefits
Employee welfare benefits
Taxes and dues
Commission expense
Rental expenses
Depreciation
Depreciation of investment properties
Advertising expense
Bad debt expenses
Amortization
Development expenses
Warranty expenses
Insurance premium
Travel expenses
Reversal of financial guarantee liability
Others
Total
2013
163,152
12,194
32,890
16,845
67,797
25,623
6,448
82
13,465
(34,829)
4,389
44,204
1,392
7,385
5,062
(584)
11,990
377,505
221,798
17,346
35,997
11,400
83,479
35,788
5,930
539
16,158
22,003
38,222
49,401
(8,743)
8,625
7,993
(2,458)
12,789
556,267
2014
Gain on disposal of property, plant and equipment
Reversal of impairment loss
of property, plant and equipment
Gain on disposal of investment property
Gain on disposal of other assets
Gain on foreign currency transactions
Gain on foreign currency translation
Reversal of allowance for bad debts
Gain on valuation of derivatives
Gain on derivatives transactions
Gain on valuation of firm commitments
Miscellaneous gains
Dividend income
Gain on disposal of available-for-sale financial assets
Reversal of gain on exchange differences on
translations of foreign operations
Gain on disposal of equity-method investments
Total
2013
21,760
52,848
117
2,316
90,402
29,791
19,104
9,990
29,274
109,391
21,657
236
205
19,685
85
69,018
2,170
4,568
58,524
96,813
48,987
22,793
136
-
690
334,933
1,282
203
377,112
56
2014
Bad debts expense
Loss on disposal of property, plant, and equipment
Impairment loss of property, plant, and equipment
Loss on disposal of intangible assets
Loss on disposal of investment property
Impairment loss of investment property
Loss on foreign currency transactions
Loss on foreign currency translation
Loss on valuation of derivatives
Loss on derivatives transactions
Loss on valuation of firm commitments
Loss on disposal of trade receivables
Reversal of gain on exchange differences on
translations of foreign operations
Loss on disposal of financial assets
Impairment loss of financial assets
Miscellaneous losses and others
Total
2013
41,692
21,255
6
3,984
700
56,252
14,280
82,299
26,599
21,957
1,836
20
811
4,401
73,530
349,622
25,873
1,631
8,970
1
7,155
1,042
53,136
49,060
8,615
81,267
74,981
4,466
3,033
52
76,770
16,024
412,076
2014
Interest income
Dividend income
Gain on foreign currency transactions
Gain on foreign currency translation
Gain on disposal of long-term financial assets
Reversal of financial guarantee liabilities
Total
2013
59,760
29
80,554
31,044
862
92,583
264,832
60,852
34,822
66,153
32
50,000
211,859
(2) Finance costs for the years ended December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
Interest expense
Loss on foreign currency transaction
Loss on foreign currency translation
Loss on disposal of short-term financial assets
Loss on disposal of long-term financial assets
Loss on derivatives transactions
Loss on valuation of derivatives
Loss on disposal of equity-method investments
Financial guarantee expenses
Total
2013
116,031
63,760
73,493
329
137
12,571
1,915
68,629
336,865
131,023
47,611
5,677
58
800
8,971
50,000
244,140
57
2014
Current tax:
Current tax on profits for the year
Adjustments in respect of prior years
Total current tax
Deferred tax :
Origination and reversal of temporary differences (*1)
Total income tax expense (benefit)
Deferred income tax charged to equity (*2)
Income tax benefit
2013
59,793
11,900
71,693
29,249
7,485
36,734
(107,980)
(36,287)
(29,120)
(7,167)
(182,946)
(146,212)
19,618
(165,830)
(*1) Changes in deferred income tax for the years ended December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
Beginning balance of deferred tax assets
Change in deferred income tax
Ending balance of deferred tax assets
2013
\
211,153
107,980
319,133
28,208
182,946
211,153
(*2) Income tax (charged)/credited directly to equity as at December 31, 2014 and 2013 is as follows:
(Korean won in millions)
Before tax
Gains on valuation of
available for-sale securities \
(1,324)
Losses on valuation of
available for-sale securities
469
Gains on valuation of
derivatives
(19,016)
Losses on valuation of
derivatives
(57,158)
Gain on exchange
differences on
translations of foreign
operations
2,677
Loss on exchange
differences on
translations of foreign
operations
(10,133)
Remeasurement of the net
defined benefit liability
(50,164)
Equity method and others
4,207
Total
\ (130,442)
2014
Tax (charge)
credit
\
320
After tax
\
(1,004)
Before tax
\
363
2013
Tax (charge)
credit
\
(88)
After tax
\
275
(113)
356
668
(162)
506
4,602
(14,414)
12,174
(2,946)
9,228
14,827
(42,331)
12,942
(3,132)
9,810
(4,210)
(1,533)
81,552
(23,206)
58,347
2,452
(7,681)
(109,839)
26,581
(83,258)
12,140
(898)
29,120
(38,024)
3,309
\ (101,322)
66,320
49
64,229
(16,654)
(12)
\ (19,618)
49,666
37
44,611
58
2014
Profit before tax
Tax calculated at domestic tax rates applicable to profits
in the respective countries
Tax effects of:
Income not subject to tax
Expenses not deductible for tax purposes
Foreign income tax expense
Re-measurement of deferred tax liabilities
Additional income taxes for prior periods and others
Sub total
Income tax benefit
2013
(29,619)
(993,177)
(7,168)
(240,349)
(28)
12,515
19,310
23,136
(54,932)
1
(7,167)
3,201
10,974
47,609
12,735
74,519
(165,830)
2014
Labor cost
Materials
Outsourcing
Employee welfare benefits
Bad debts expense
Rent
Changes in inventories
Depreciation
Amortization
Taxes and dues
Service fees
Others
Total (*)
2013
982,519
2,963,837
3,543,707
136,112
(34,829)
194,438
(107,805)
60,300
15,401
78,511
764,854
839,338
9,436,383
943,410
2,986,351
3,819,481
133,676
22,003
175,681
333,748
55,215
48,699
93,402
974,855
914,688
10,501,209
59
Associates
Joint venture
Total
Related party
Major Development Co., Ltd
GS-HP Corp.
G&M Estate Co., Ltd.
709
217
926
2014
Sales and others
Other income
\
\
8
\
\
8
1,316
20
1,336
2013
Sales and others
Other income
\
\
2,316
85
20
\
\
2,421
Sales
\
Total
Purchases
\
709
8
217
934
920
920
Associates
Joint venture
Total
Counterparty
GS PP Development Co., Ltd.
Major Development Co., Ltd.
HNH development Co., Ltd. (*)
GS-HP Corp.
G&M Estate Co., Ltd.
Sales
\
Changes in
ownership
Total
2,316
1,316
85
40
3,757
150
100
250
(*)The Group lost significant influence due to change in equity interest during the current period.
(3) Receivables and payables from related parties as at December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
Receivables
Trade
Other
Related party
receivables receivables
Loans
Associates Major Development Co., Ltd. \ 205,047 \
- \
Cadiz San Fernando, A.I.E
218
Participes de Biorreciclaje
2,334
S.A.
Shariket Miyeh Ras Djinet,
1,898
Spa
Shariket Tahlya Miyah
7,011
Mostaganem, Spa
Joint
G&M Estate Co., Ltd.
28
venture
Total
28 \
\ 216,508 \
Total
\ 205,047
218
Trade
payables
\
200
Payables
Other
payables
23
\
-
Total
23
200
2,334
29
29
1,898
7,011
28
212
212
\ 216,536
229
235
464
60
Trade
payables
192
\
Total
\ 245,047
59,513
Payables
Other
payables
\
Total
192
242
218
218
3,712
32
32
7,696
5,438
306
\ 321,954
443
443
(*)The Group lost significant influence due to change in equity interest during the current period.
Allowance for doubtful receivables from related parties as at December 31, 2014 and 2013 is as follows:
(Korean won in millions)
\
\
47,741
5,400
53,141
(*)The Group lost significant influence due to change in equity interest during the current period.
Allowance for doubtful accounts of receivables from related parties includes allowance for doubtful accounts of
short and long-term loans, construction receivables, accrued revenues and others.
(4) Changes in loans to related parties for the years ended December 31, 2014 and 2013 are as follows:
(Korean won in millions)
2014
Annual
interest rate
(%) at
December Maturity
31, 2014
date
Beginning
6M Bibor +
306
\
1.75
Increase
Repayment
311
Effects of
changes in
foreign
exchange
rates
\
Interest
income
Ending
-
Total
GS PP
2013.
\ 141,927
Development 6M Libor + 2
11.13
Co., Ltd.
6M Bibor +
686
GS-HP Corp.
1.75
HNH
development 4.08~6.66 2014.02
Co,. Ltd. (*)
\ 142,613
Increase
\
Repayment
Effects of
changes
in foreign
exchange
rates
Changes in
consolidation
scope
\ 10,415
395
15
306
20
53,798
53,798
85
395
\ 10,430
(152,342)
\ 54,104
\ 53,798
(152,342)
Interest
income
Ending
\
2,316
2,421
(*)The Group lost significant influence due to change in equity interest during the current period.
61
Type
Payment
guarantees
Payment
guarantees
Beneficiary
MERITZ SECURITIES CO., LTD
and others
HMC INVESTMENT
SECURITIES CO., LTD.and
others
2013.11~ 2014.02
96,900
(148,700)
(*)The Group lost significant influence due to change in equity interest during the current period.
(6) Compensation of key management personnel of the Group as at December 31, 2014 and 2013 consists of:
(Korean won in millions)
2014
Salaries
Severance benefits
Total
2013
21,951
4,221
26,172
27,501
5,649
33,150
Shares
The largest shareholder and related parties of the
largest shareholder
5,041,045
Amount
\
139,133
62
2014
Loss for the year
Adjustments for:
Income tax benefit
Interest expenses
Interest income
Dividend income
Depreciation
Depreciation of investment property
Amortization
Bad debt expenses
Reversal of bad debts expense
Provision for severance benefits
Losses on disposal of trade receivables
Gains or losses on foreign currency translation, net
Gains or losses on disposal of property, plant and equipment, net
Impairment losses of property, plant, and equipment
Reversal of impairment losses of property, plant, and equipment
Impairment losses of investment property
Gains or losses on disposal of investment property, net
Gains or losses on disposal of Intangible assets, net
Gains or losses on valuation of derivatives, net
Gains or losses on derivatives transactions, net
Gains or losses on valuation of firm commitments, net
Financial guarantee expenses
Reversal of provision for financial guarantee
Construction warranty expenses
Reversal of provision for construction warranties
Gains or losses on disposal of financial assets, net
Impairment losses of financial assets
Loss on overseas operations translation
Gain on overseas operations translation
Valuation gain of investments in associates
Others
Sub-total
Changes in operating assets and liabilities
Trade and other receivables
Inventories
Settlement of derivatives transactions
Other current assets
Other non-current assets
Trade and other payables
Other current liabilities
Non-current provision
Other non-current liabilities
Payment of severance benefits
Overseas operations translation
Sub-total
Cash flows from (used in) operations
2013
(22,453)
(827,347)
(7,167)
116,031
(59,760)
(265)
60,300
1,278
15,401
43,257
(55,498)
49,649
1,836
26,938
(505)
(117)
700
1,668
6
72,310
9,896
(87,434)
68,629
(93,167)
25,058
(4,573)
210
4,401
20
(690)
(5,935)
42,999
225,476
(165,830)
131,023
(60,852)
(136)
55,215
2,526
48,696
88,412
(45,016)
60,754
4,466
(13,588)
(51,217)
8,970
1,042
(12,530)
(40,938)
(15,546)
25,994
50,000
(54,788)
6,942
(15,685)
911
76,770
3,033
(1,281)
(9,519)
605
78,433
197,574
(88,822)
41,082
(152,873)
(18,148)
233,947
318,165
(7,623)
(24,887)
(55,833)
6,853
449,435
652,458
(447,581)
409,327
43,222
(192,346)
59,366
(169,603)
(7,119)
9,171
(24,856)
(1,816)
(322,235)
(1,071,149)
63
2014
Reclassification bonds payable
Reclassification borrowings
Reclassification from construction-in-progress
to property, plant and equipment
Reclassification from advance payments
to property, plant and equipment
Reclassification from advance payments to inventories
Reclassification from trade receivables to investment property
Reclassification loans to property, plant and equipment
Write off of trade receivables and long-term loans
Reclassification from inventories to investment property
2013
626,077
521,323
640,910
150,906
10,797
12,321
40,347
14,454
10,876
70,255
30,660
94,471
-
2014
USD
EUR
KWD
JPY
SGD
Financial assets
Foreign
Korean won
currency
equivalent
\
662,846
728,600
122,803
164,128
14,567
54,714
7,574
70
-
Financial liabilities
Foreign
Korean won
currency
equivalent
\
1,563,486
1,718,584
163,909
219,068
146
547
3,921,998
36,088
1,758
1,462
64
2013
USD
EUR
KWD
JPY
SGD
Financial assets
Foreign
Korean won
currency
equivalent
\
1,259,811
1,329,479
131,132
142,258
11,526
43,129
815,200
8,190
1,030
858
Financial liabilities
Foreign
Korean won
currency
equivalent
\
2,258,803
2,383,694
146,084
200,697
20,373
76,238
2,995,782
30,097
8,769
7,302
As at December 31, 2014 and 2013, if the Groups functional currency had weakened/strengthened by 5% against
foreign currencies with all other variables held constant, profit before income tax would have been affected as
follows:
(Korean won in millions)
2014
USD
EUR
KWD
JPY
SGD
5% increase
(49,499)
(2,747)
2,708
(1,801)
(73)
2013
\
5% decrease
49,499
2,747
(2,708)
1,801
73
5% increase
(52,712)
(1,089)
(1,655)
(1,095)
(322)
5% decrease
52,712
1,089
1,655
1,095
322
2014
100bp increase
Interest
expense
12,884
2013
100bp decrease
\
(12,884)
100bp increase
\
15,154
100bp decrease
\
(15,154)
65
2014
Cash equivalents (excluding cash on hands)
Trade and other receivables
Short-term financial assets
Long-term financial assets (*1)
Long-term trade and other receivables
Non-current provision (*2)
2013
\
2,142,808
4,573,822
332,671
175,760
842,194
2,849,829
1,854,816
4,785,254
323,187
181,742
615,442
2,718,190
2014
Financial
institutions
Short-term and
long-term financial
liability (*)
Korea Eximbank
and others
Limited
amount
\
2013
Used
amount
6,302,201
Limited
amount
4,145,887
Used
Amount
6,933,090
4,471,970
The table below summarizes the maturity profile of the Groups financial assets based on contractual undiscounted
payments.
(Korean won in millions)
2014
Book value
Trade and
other payables
Long-term trade and
other payables
Short-term and
long-term
financial liability (*1)
1,633,207
Cash flow
on contract
\
1,634,002
Residual maturity
Between
1 year
Between
and
2 years and
2 years
3 years
Less than 1
year
\
1,634,002
Over
3 years
\
136,080
147,765
49,255
98,510
4,145,887
4,248,460
1,428,662
881,705
453,001
1,485,092
146,526
2,849,829
2,115,807
230,703
327,500
175,819
6,061,700
8,880,056
5,178,471
1,161,663
879,011
1,660,911
66
Book value
Trade and
other payables
Long(short)-term financial
liability (*1)
1,527,396
Less than 1
year
\
1,527,396
1,527,396
Over
3 years
\
4,471,970
4,817,111
2,056,716
323,505
474,770
1,962,120
162,474
2,718,190
1,927,322
624,116
59,649
107,703
Cash flow
on contract
Residual maturity
Between
1 year
Between
and
2 years and
2 years
3 years
6,161,840
9,062,697
5,511,434
947,621
534,419
2,069,823
2014
Total liabilities(A)
Total equity(B)
Deposits(C)
Borrowings(D)
Debt-to-equity ratio(A/B)
Net borrowings ratio((D-C)/B)
9,513,097
3,581,612
2,142,808
3,919,423
266%
50%
2013
9,268,034
3,159,279
1,854,816
4,246,867
293%
76%
67
2014
Book value
Fair value
2013
Book value
Fair value
Financial assets
Cash and cash equivalents
Trade and other receivables (*1)
Short-term financial instrument assets
Long-term trade and
other receivables
Long-term financial instrument assets
Total
\ 2,151,187
2,192,243
332,671
\ 2,151,187
2,192,243
332,671
\ 1,865,508
2,832,574
323,188
\ 1,865,508
2,832,574
323,188
842,194
347,466
\ 5,865,761
842,194
347,466
\ 5,865,761
615,442
333,278
\ 5,969,990
615,442
333,278
\ 5,969,990
Financial liabilities
Trade and other payables
Short-term financial instrument liabilities
Other current liabilities (*2)
Long-term Trade and other payables
Long-term financial instrument liabilities
Other non-current liabilities (*3)
Non-current provisions (*4)
Total
\ 1,633,207
1,709,989
249,776
136,080
2,487,230
223,747
146,526
\ 6,586,555
\ 1,633,207
1,709,989
249,776
136,080
2,487,230
223,747
146,526
\ 6,586,555
\ 1,527,396
2,190,046
292,565
2,356,363
191,750
162,474
\ 6,720,594
\ 1,527,396
2,190,046
292,565
2,356,363
191,750
162,474
\ 6,720,594
68
2014
Financial assets
Available-for-sale financial assets
Derivatives assets
Total
Financial liabilities
Derivatives liabilities
Total
Level 1
\
Level 2
\
\
\
Level 3
\
161,859
161,859
\
\
205,279
205,279
Total
\
8,462
8,462
8,462
161,859
170,321
\
\
\
\
205,279
205,279
2013
Financial assets
Available-for-sale financial assets
Derivatives assets
Total
Financial liabilities
Derivatives liabilities
Total
Level 1
\
Level 2
303
303
\
\
\
\
192,269
192,269
\
\
136,361
136,361
Level 3
\
Total
\
8,462
8,462
8,765
192,269
201,034
\
\
\
\
136,361
136,361
The Groups financial assets and liabilities that are classified Level 3 are measured based on the fair value of
financial instruments using net asset book value. There are no transfers between levels of each fair value hierarchy
for the years ended December 31, 2014.
34. Service concession arrangements
GS Inima Environment S.A. has constructed, operated and maintained Service Concession Arrangements by
establishing subsidiaries. The subsidiaries and their respective business information are as follows:
(Korean won in millions)
Business
Subsidiaries
information
Ambientaisde
Sewage
Ribeirao Preto, S.A.
purifying plant ,
DBOOT
Araucaria Saneamento, Sewage
S.A.
purifying plant ,
(Campos do Jordao)
DBL
Saneamento do Vale
Sewage
do Pariba, S.A.
purifying plant ,
DBL
Servicos de
Sewage
Saneamento de Mogi
purifying plant ,
Mirim, S.A.
DBOOT
Tractament Metropolita Thermal sludge
de Fangs, S.L.
drying plant,
DBOOT
Countries
Start date
Expiry date
Date Amount
Brazil
September
1995
June 2023
Brazil
April 2010
Brazil
Classification
34,937
Financial
assets
June 2033
50,129
Financial
assets
March 2011
June 2034
35,809
Financial
assets
Brazil
May 2008
September
2038
25,689
Financial
assets
Spain
May 1998
April 2016
10,857
Intangible
assets