Notes to the company balance sheet and profit and loss account

• General

  The registered office of Beter Bed Holding N.V. is Linie 27, Uden, the Netherlands. The company financial statements have been compiled on the basis of Title 9, Book 2 of the Dutch Civil Code. Beter Bed Holding N.V. uses the option of art. 362.8 Title 9, Book 2 of the Dutch Civil Code to prepare the company financial statements, using the same accounting policies as in the consolidated financial statements (IFRS as adopted for use in the European Union). The participating interests in group companies are valued at the net asset value calculated in accordance with Beter Bed Holding N.V.’s policies. When a participating interest has a negative equity the sequence is as follows: first, the valuation of the participating interest is reduced, after which a write-down is applied to the amounts owed by this participating interest insofar as these are an increase of the net investment in the participating interest, and then a provision is formed.

  Beter Bed Holding N.V. had an average number of six employees (FTE) in 2018 (2017: 7).

  The company financial statements are presented in euros and all amounts are rounded to thousands (€ 000) unless stated otherwise.

  The note on executive remuneration is included in the notes to the consolidated balance sheet and profit and loss account.

  The fees charged for the audit of the financial statements and other non-audit services by the auditor PwC Accountants are also disclosed in the notes to the consolidated balance sheet and profit and loss account.

• 1 Financial assets

  This item includes the participating interests in the group companies and the amounts owed by the group companies.

  Movements in this item were as follows:

  	Participating interests in group companies	Loans	Deferred tax assets	Total
  Balance at 1 January 2017	96,815	87,659	-	184,474
  Profit from participating interests in 2017	4,614	-	-	4,614
  Dividend paid	(9,000)	-	-	(9,000)
  Capital contribution	11,212	-	-	11,212
  Repayment of loans to group companies	-	(419)	-	(419)
  Exchange gain	(240)	-	-	(240)
  Change to provisions for subsidiaries	(4,858)	-	-	(4,858)
  Balance at 31 December 2017	98,543	87,240	-	185,783
  Balance at 1 January 2018	98,543	87,240	-	185,783
  Loss from participating interests in 2018	(30,456)	-	-	(30,456)
  Capital contribution	15,834	-	-	15,834
  Repayment of loans to group companies	-	(87,240)	-	(87,240)
  Exchange gain	(125)	-	-	(125)
  Revaluation	403	-	-	403
  Change to provisions for subsidiaries	(4,265)	-	-	(4,265)
  Permanent differences	-	-	4,850	4,850
  Balance at 31 December 2018	79,934	-	4,850	84,784

• 2 Receivables

  		2018	2017
  Group companies		1,823	2,871
  Taxes and social security contributions		793	72
  Other receivables		1,609	2,397
  Total		4,225	5,340

  All receivables fall due within one year.

  Beter Bed Holding N.V. uses a cash pool structure as a result of which there are minimal and very short term current account intra-group balances.

• 3 Cash and cash equivalents

  This item relates to the balance of cash in hand and at the bank. The cash and cash equivalents are at the full disposal of the company.

• 4 Equity

  The company’s authorised capital amounts to € 2,000, divided into 100 million ordinary shares with a nominal value of € 0.02 each. At the end of 2018 21,955,562 shares had been issued and paid up (2017: 21,955,562).

  There are no shares that have been repurchased and not yet cancelled. Repurchased shares are no longer included in the earnings per share calculation.

  The movement in the equity items is explained in the consolidated statement of changes in equity . The revaluation reserve is the statutory revaluation reserve and relates to company land. The reserve for currency translation differences is also a statutory reserve. Neither reserve is freely distributable.

• 5 Provisions

  At year-end 2018 and 2017 the provisions consisted in full of the provision for participating interests. The participating interests' provision is a provision for participating interests that have negative net asset value after setting off loans provided by the company.
  

  The movements in the provisions in 2018 and 2017 are as follows:

  		2018	2017
  Balance at 1 January		9,912	14,770
  Profit (loss) from participating interests		(4,265)	(4,858)
  Balance at 31 December		5,647	9,912

  In 2018 the negative equity of some of the subsidiaries has been purified through capital deposits. As such, these subsidiaries are now independently capable to meet their obligations. This has resulted in a decrease of the provision for participating interests of Beter Bed Holding N.V.

• 6 Current liabilities

  The breakdown of this balance sheet item is as follows:

  		2018	2017
  Credit institutions		19,905	109,033
  Group companies		48,351	-
  Taxes and social security contributions		27	1,494
  Other liabilities, accruals and deferred income		1007	653
  Total		69,290	111,180

  Beter Bed Holding N.V. uses a cash pool structure as a result of which there are minimal and very short term current account intra-group balances.

• 7 Commitments not included in the balance sheet

  Together with the other Dutch operating companies, the company is part of a tax entity for corporation tax purposes. Each of the operating companies is jointly and severally liable for the tax payable of all operating companies included in the tax entity. The company settles the corporation tax with the operating companies concerned on the basis of the profit or loss before income tax of the operating company concerned.

  Beter Bed Holding N.V. has issued declarations of joint and several liability for all Dutch group companies for the obligations arising from all legal transactions entered into by these group companies.

• 8 Post-balance sheet events

  There have been no subsequent events between the end of the year under review and the preparation of these financial statements which are required to be disclosed.

• 9 Appropriation of result

  The Management Board proposes to deduct the net result of € (23,250) in full from the other reserves. The proposal for the appropriation of result has not been taken into the balance sheet.

  
  
  

  Uden, The Netherlands, 28 February 2019

  Management Board	Supervisory Board
  A.J.G.P.M. Kruijssen, CEO	D.R. Goeminne, Chairman
  H.G. van den Ochtend, CFO	A. Beyens
  	P.C. Boone
  	B.E. Karis
  	H.C.M. Vermeulen