Tropical Island Holding GmbH

Krausnick - Groß Wasserburg

Befreiender Konzernabschluss zum Geschäftsjahr vom 01.01.2019 bis zum 31.12.2019

Parques Reunidos Servicios Centrales, S.A.

Madrid/Spanien

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018

(Thousands of euros)

ASSETS	Notes	31.12.2019	31.12.2018
Property, plant and equipment	8	1.203.556	1.211.385
Goodwill	7	545.982	558.041
Intangible assets	6	352.321	423.465
Non-current financial assets	10	4.402	1.296
Non-current assets		2.106.261	2.194.187
Inventory	4 l)	22.987	20.559
Trade and other receivables	11	18.862	24.378
Current tax assets	18	2.712	2.680
Other current financial assets	15	-	823
Other current assets		7.110	8.520
Cash and cash equivalents	12	39.610	52.324
Current assets		91.281	109.284
Total Assets		2.197.542	2.303.471

EQUITY AND LIABILITIES	Notes	31.12.2019	31.12.2018
Share capital		40.371	40.371
Share premium		1.327.528	1.327.528
Other reserves		(361.570)	(289.345)
Other comprehensive income		27.608	22.402
Retained earnings attributable to the shareholders of the Parent		(353.639)	(45.768)
Equity attributable to the shareholders of the Parent		680.298	1.055.188
Non-controlling interests		578	534
Total equity	13	680.876	1.055.722
Loans to group companies		583.979	-
Loans and borrowings	14	262.462	527.837
Leases	9	194.216	270.619
Deferred tax liabilities	18	163.219	183.377
Provisions	16	13.861	10.136
Other non-current liabilities	14	12.105	14.772
Non-current liabilities		1.229.842	1.006.741
Loans to group companies		71.246	-
Loans and borrowings	14	59.757	107.490
Leases	9	17.725	20.514
Trade and other payables	17	114.803	88.046
Current tax liabilities	18	23.293	24.958
Other current liabilities	4 n)	-	-
Current liabilities		286.824	241.008
Total equity and liabilities		2.197.542	2.303.471

The attached notes to the consolidated annual accounts for the year ended 31 December 2019.

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019 AND FOR THE THREE-MONTH ENDED 31 DECEMBER 2018

(Thousands of euros)

PROFIT AND LOSS	Notes	31.12.2019	31.12.2018
Revenue	20	695.786	76.855
Supplies		(77.964)	(8.769)
Personnel expenses	21	(220.261)	(41.374)
Amortisation and depreciation	6 y 8	(114.066)	(25.961)
Net losses on impairment and disposals of non-current assets		(321.586)	(9.243)
Changes in trade provisions		2.808	(1.128)
Other operating expenses	20	(265.683)	(36.606)
Gains / (losses) on disposal of group companies		-	895
Operating profit/(loss)		(300.966)	(45.331)
Finance income		686	44
Finance expenses	20	(72.617)	(12.152)
Exchange gains/(losses)		(7.746)	(968)
Profit / (loss) before income tax		(380.643)	(58.407)
Income tax	18	27.048	12.625
Profit / (loss) for the period		(353.595)	(45.782)
Profit / (loss) for the period attributable to:
Parent company shareholders		(353.639)	(45.768)
Non-controlling interests		44	(14)
		(353.595)	(45.782)
Basic Profit / (Loss) per share (expressed in euros)		(4,38)	(0,57)
Diluted profit / (loss) per share (expressed in euros)		(4,38)	(0,57)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019 AND FOR THE THREE-MONTH PERIOD ENDED 31 DECEMBER 2018

(Thousands of Euros)

		Other reserves
			Of the Parent Company
	Share Capital	Share premium	Other shareholder contributions	Other equity instruments	Reserves (legal and voluntary)
Balance at 30 September 2018	40.371	1.327.528	10.148	906	142.087
Consolidated global result for the three-month period ended 31 December 2018	-	-	-	-	-
Transactions with shareholders or owners
Distribution of the period ended 30 September 2018 result (note 3)	-	-	-	-	-
Share based payments (Note 20 c))	-	-	-	94	-
Other movements (note 8 and 14)	-	-	-	-	-
Balance at 31 December 2018	40.371	1.327.528	10.148	1.000	142.087
Consolidated global result for the three-month period ended 31 December 2018	-	-	-	-	-
Transactions with shareholders or owners
Distribution of the period ended 31 December 2018 result (note 3)	-	-	-	-	14.656
Distribution of dividends (Note 12 c))	-	-	-	-	(20.000)
Share based payments (Note 20 c))	-	-	-	(1.000)	-
Other movements (note 4 n))	-	-	-	-	1.043
Balance at 31 December 2019	40.371	1.327.528	10.148	-	137.786

	Other reserves			Other comprehensive income

	Balance in previous	Negative balance in previous	Reserves in consolidated companies by global integration	Exchange differences
Balance at 30 September 2018	-	(22.076)	(435.923)	19.784
Consolidated global result for the three-month period ended 31 December 2018	-	-	-	2.618
Transactions with shareholders or owners
Distribution of the period ended 30 September 2018 result (note 3)	12.108	-	-	-
Share based payments (Note 20 c))	-	-	-	-
Other movements (note 8 and 14)	-	-	3.311
Balance at 31 December 2018	12.108	(22.076)	(432.612)	22.402
Consolidated global result for the three-month period ended 31 December 2018	-	-	-	5.206
Transactions with shareholders or owners
Distribution of the period ended 31 December 2018 result (note 3)	-	-	(60.424)	-
Distribution of dividends (Note 12 c))	-	-	-	-
Share based payments (Note 20 c))	-	-	-	-
Other movements (note 4 n))	-	-	(6.500)	-
Balance at 31 December 2019	12.108	(22.076)	(499.536)	27.608



	Accumulated income attributable to Parent Company shareholders	Total	Non-controling interests	Total net equity
Balance at 30 September 2018	12.108	1.094.933	548	1.095.481
Consolidated global result for the three-month period ended 31 December 2018	(45.768)	(43.150)	(14)	(43.164)
Transactions with shareholders or owners
Distribution of the period ended 30 September 2018 result (note 3)	(12.108)	-	-	-
Share based payments (Note 20 c))	-	94	-	94
Other movements (note 8 and 14)		3.311	-	3.311
Balance at 31 December 2018	(45.768)	1.055.188	534	1.055.722
Consolidated global result for the three-month period ended 31 December 2018	(353.639)	(348.433)	44	(348.389)
Transactions with shareholders or owners				-
Distribution of the period ended 31 December 2018 result (note 3)	45.768	-	-	-
Distribution of dividends (Note 12 c))	-		-
Share based payments (Note 20 c))	-	(1.000)	-	(1.000)
Other movements (note 4 n))	-	(5.457)	-	(5.457)
Balance at 31 December 2019	(353.639)	680.298	578	680.876

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 AND FOR THE THREE-MONTH PERIOD ENDED 31 DECEMBER 2018

(Thousands of euros)

	Notes	31.12.2019	31.12.2018
Profit / (Loss) for the period		(353.595)	(45.782)
Other comprehensive (expense)/income	13 e)
Conversion differences in financial statements of businesses abroad		5.206	2.618
Other comprehensive (expense)/income for the period, net of tax		5.206	2.618
Total comprehensive (expense)/income for the period		(348.389)	(43.164)
Total comprehensive (expense)/income attributable to:
Parent Company shareholder		(348.433)	(43.150)
Non-controlling interests	13 e)	44	(14)
		(348.389)	(43.164)

CONSOLIDATED CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 AND THE THREE-MONTH PERIOD ENDED 31 DECEMBER 2018

(Thousands of euros)

	Notes	31.12.2019	31.12.2018
Cash flows from operating activities
Profit / (loss) for the period		(353.595)	(45.782)
Adjustments for:
Amortisation and depreciation	6 y 8	114.066	25.961
Changes in trade provisions		(2.808)	1.128
Variations from provisions		1.687	(784)
Finance income		(686)	(44)
Finance expenses	20	72.617	12.152
Exchange gains/(losses)		7.746	-
Income to be distributed in various years		(486)	(121)
(Gains)/losses on sale of property, plant and equipment	6 y 8	321.586	9.243
(Gains)/losses on disposal of group companies		-	(895)
Income tax	18	(27.048)	(12.625)
Adjusted profit / (loss) for the period		133.079	(11.767)
Changes in working capital
Inventories		(1.152)	814
Trade and other receivables		8.700	26.216
Other current assets		1.626	981
Trade and other payables		15.347	(23.143)
Cash flows from operating activities		157.600	(6.899)
Income tax payments		(7.538)	(6.020)
Net cash flows from operating activities		150.062	(12.919)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment	6 y 8	-	853
Interest received		687	44
Proceeds/(payments) from financial assets		1.113	15
Acquisition of subsidiaries, net of cash and cash equivalents	5	(235.820)	(24.850)
Proceeds from the sale of subsidiary companies, net of cash and cash equivalents		-	2.206
Payments for liquidation of subsidiary companies		(5.945)	-
Acquisition of property, plant and equipment	8 y 17	(140.562)	(32.334)
Acquisition of intangible assets	6	(7.278)	(390)
Net cash flows used in investing activities		(387.805)	(54.456)
Cash flows from financing activities
Receipts from debts with credit institutions		350.406	80.609
Repayment of loans and borrowings		(37.601)	(769)
Payments financial leases		(18.804)	(3.055)
Interest paid		(49.083)	(12.164)
Dividends paid	13	(20.000)	-
Net cash flows used in financing activities		224.918	64.621
Net increase/(decrease) in cash and cash equivalents		(12.825)	(2.754)
Cash and cash equivalents at beginning of period	12	52.324	54.875
Effect of exchange rate fluctuations		111	203
Cash and cash equivalents at end of period	12	39.610	52.324

Notes to the Consolidated Financial Statements 31 December 2019

(1) Nature, Activities and Composition of the Group

Parques Reunidos Servicios Centrales, S.A. (hereinafter the Company or the Parent Company) was incorporated on 23 November 2006 under the name of Desarrollos Empresariales Candanchú, S.L. On 1 March 2007, it changed its name to Centaur Spain Two, S.L.U. In March 2007, the Company acquired the leisure group Parques Reunidos, having begun its activity following such acquisition. On 27 January 2010 and 30 March 2010, the agreements of modification of the company name to the current one and transformation into a limited company.

Its business address is Paseo de la Castellana 216, planta 16 in Madrid.

On 23 March 2007, its Sole Shareholder approved the Amendment of Corporate Bylaws, establishing the closing date of its financial year as 30 September of each year. However, in the Ordinary General Shareholders' Meeting of 21 March 2018, the decision was made to modify the Corporate Bylaws, specifically that relating to its financial year, setting the closing date at 31 December of every year. For the correct implementation of this change, it has also been agreed that the fiscal year that started on 1 October 2018 will be irregular in length and will end on 31 December 2018.

On 16 September 2019, the company Piolin Bidco, S.A.U. has obtained full control of the Parques Reunidos leisure group. Through the formulation of a Voluntary Public Offer for the acquisition of shares of Parques Reunidos Servicios Centrales, S.A. and, subsequent contribution of shares to Alba Europe, S.à.rl (a subsidiary of Corporación Financiera Alba, SA) and Miles Capital, S.à.rl (a subsidiary of Groupe Bruxelles Lambert SA), Piolin Bidco, SAU acquires 86.4013 % of the shares representing the share capital of Parques Reunidos Servicios Centrales, SA. At 31 December 2019, Piolin Bidco, S.A.U has a percentage of participation of 99.5496 % of the share capital of Parques Reunidos Servicios Centrales, S.A.

Parques Reunidos Servicios Centrales, S.A. is the Parent Company of a Group (hereinafter, the Group) formed by subsidiaries whose main activity is the exploitation of amusement parks, animal parks, water parks and, in general, leisure facilities, including the new Indoor Entertainment Centres (IECs), indoor leisure venues located in shopping areas with a large number of visitors. Details of the parks operated by the Group under lease (in most cases only land lease) or administrative concessions are included in note 9. A detail of the Group companies included in the consolidation perimeter and related information to them is included in appendix I. During the year ended 31 December 2019, the subsidiary Tropical Island Holding GmbH has been incorporated into the consolidation perimeter (note 5). During the three-month period ended on 31 December 2018, the subsidiary Wet n'Wild Sydney Pty Ltd. was incorporated into the consolidation perimeter. Also, on 10 December 2018, the company Plunimar, SA, domiciled in Argentina, left the consolidation perimeter as a result of the sale of all the shares that were owned by the subsidiaries Parque de Atracciones de Madrid, SAU and Zoos Ibericos, S.A. This transaction generated a positive result amounting to 895 thousand euros, as shown in the attached consolidated income statement.

The period used to prepare the consolidated annual accounts includes from 1 January to 31 December 2019 for all the Group companies. The period used to prepare the consolidated annual accounts for the three-month period was from 1 October to 31 December 2018 for all the Group companies, except the subsidiaries belonging to the Centaur Holding II United States Inc. subgroup whose period used to prepare the consolidated annual accounts, was from 17 September to 31 December 2018.

Given the nature of the activities carried out by the Group, there is a significant seasonality in its operations that affect the interpretation of the consolidated annual accounts for the year ended 31 December 2019 compared to the consolidated annual accounts of the three-month period ended on 31 December 2018. The seasonality originates as a result of the significant decrease in visitors to the Group's parks during fall and winter due to weather conditions, as well as the fact that many of the leisure parks of the group are closed during this period, what means that sales for the three-month period are significantly lower than those for the annual year ended on 31 December 2019.

Voluntary Public Offer for the acquisition of shares of Parques Reunidos Servicios Centrales, S.A.

On 29 April 2016, the shares of Parques Reunidos Servicios Centrales, S.A., were admitted to official listing on the Madrid, Barcelona, Bilbao and Valencia Stock Exchanges, with no restrictions on their free transferability.

On 24 May 2019, Piolin Bidco, S.A.U. requested to the National Securities Market Commission (CNMV) authorization of the voluntary public offer (hereinafter the Offer or Bid) formulated by it on all the shares representing the Company's share capital. On April 26, 2019, the prior announcement of the Offer had been sent.

On April 26, 2019 the Company, Piolin II S.à.r.l, Piolin I, S.à.r.l, Alba Europe S.à.r.l. (hereinafter Alba Europe) and Miles Capital, S.à.r.l (hereinafter Miles Capital) signed an investment agreement ("Bid Agreement") that regulated the terms and conditions of the Offer; a commitment by the parties to refrain from acquiring or transferring, directly or indirectly, shares or debt instruments of the Company; the governance of the Company until the publication of the result of the Offer; and a commitment of the parties to collaborate and adopt any reasonable agreements for the good purpose of the Offer.

Furthermore, they undertook to sign a "Shareholders' Agreement" in the event of a positive result of the Offer and after the publication of said result. Such agreement was signed on 16 September 2019 and was communicated to the CNMV on 20 September 2019.

Likewise, Alba Europe and Miles Capital signed with Piolin II, S.à.r.l and Piolin Bidco, S.A.U. Both "Contribution Commitments" which regulated the obligation of Alba Europe and Miles Capital to immobilize their shares in the Company, combined 35,695,262 shares representing 44.21 % of their share capital, and their irrevocable commitment to contribute them, once the result of the Offer has been published and immediately before its settlement, to Piolin II, S.à.rl. The shares would be contributed to the Offer Price (13,753 euros per share). They also undertook to use their voting rights in the Company in order to allow the implementation of the Offer.

On 11 June 2019, the authorization request was admitted for processing, which was finally authorized by the CNMV on 24 July 2019. The Voluntary Public Offering of acquisition formulated by Piolin Bidco, S.A.U. on the shares of Parques Reunidos Servicios Centrales, S.A. at a price of 13,753 Euros per share, which was accepted on 12 September 2019 by a number of 21,491,300 shares representing 56.71 % of the shares to which the offer was directed and 26.62 % of the entity's share capital.

On 16 September 2019, Piolin Bidco, S.A.U. obtained full control of Parques Reunidos leisure group through the formulation of a Voluntary Public Offer for the acquisition of shares of Parques Reunidos Servicios Centrales, S.A., parent company of this group formed by subsidiary companies whose main activity consists in the operation of leisure parks, and subsequent contribution of shares owned by Alba Europe, SARL and Miles Capital, S.A.R.L., reaching 86.4013 % of the shares representing its share capital. Since the acceptance of the Voluntary Public Offering until the delisting of the Company from the Barcelona, Madrid, Bilbao and Valencia Stock Exchanges, Piolin Bidco, S.A.U. has acquired shares reaching a participation of 99,5496 % of the share capital.

On 25 November 2019, the request for the exclusion from trading of the shares representing all of the share capital of Parques Reunidos Servicios Centrales, S.A. was filed with the CNMV in the Madrid, Barcelona, Bilbao and Valencia Stock Exchanges, approved on 29 October 2019 by its extraordinary General Shareholders' Meeting. The request was allowed on 28 November 2019 and it was decided to suspend trading with effect from the 2 December 2019 at closing market. Stock Exchange Management Companies of Madrid, Barcelona, Bilbao and Valencia informed with effect from 5 December 2019 the delisting from trading of Parques Reunidos Servicios Centrales, S.A.

(2) Basis for presentation

The accompanying consolidated financial statements ended 31 December 2019 have been prepared on the basis of the accounting records of Parques Reunidos Servicios Centrales, S.A. and the consolidated companies. The consolidated financial statements for 2019 have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU), and other applicable provisions in the financial reporting framework, to give a fair view of the consolidated equity and consolidated financial position of Parques Reunidos Servicios Centrales, S.A. and subsidiaries in 31 December 2019 and consolidated financial performance, consolidated cash flows, and changes in consolidated equity corresponding for the period ended 31 December 2019.

The Group adopted IFRS-EU on 1 October 2007 and applied IFRS 1, "First-time adoption of International Financial Reporting Standards".

The consolidated financial statements for the three-month period ended 31 December 2018, which were authorised for issue by the Board Directors of the Parent on 21 May 2020, and the individual financial statements for the three-month period ended 31 December 2019 of Parques Reunidos Servicios Centrales, S.A. and of each of the consolidated companies, will be submitted for approval by the shareholders at the respective annual general meetings. It is considered that they will be approved with no changes.

a) Basis of preparation of the consolidated financial statements

These consolidated financial statements have been prepared on a historical cost basis, except for the derivative financial instruments which have been recorded at fair value and the rights of use which have been recorded at present value of the lease liabilities.

Note 4 summarizes the most significant accounting principles and valuation methods applied, as well as the alternatives that the regulations allow in this regard.

The Group has opted to present a consolidated income statement separately from the consolidated statement of comprehensive income. The consolidated income statement is reported using the nature of expense method and the consolidated statement of cash flows has been prepared using the indirect method.

b) Comparative information

In accordance with the requirements of IAS 1, the information contained in these consolidated annual accounts referring to the financial year ended on 31 December 2019 is presented, for comparative purposes, along the information relating to the previous financial year that was part of the consolidated annual accounts of the three-month period ended on 31 December 2018, which were approved by the General Shareholders' Meeting on the 28 March 2019.

However, as mentioned in note 1, during 2018 was agreed the change in the closing date of the Company's financial year to December 31 of each year has been agreed, so that the consolidated annual accounts closed on 31 December 2018 correspond to an exercise of only three months. Accordingly, as the figures in the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the statement of consolidated cash flows and the consolidated report of December 2018 correspond to a period of only three months, they are not directly comparable with those of the fiscal year 2019, which includes 12 months.

c) Accounting estimates and relevant assumptions and opinions in the application of accounting policies

Relevant accounting estimates and judgements and other estimates and assumptions have to be made when applying the Group's accounting principles to prepare the consolidated financial statements in conformity with IFRS-EU. A summary of the items requiring a greater degree of judgement or complexity.

or significant assumptions and estimates to elaborate the consolidated financial statements, is as follows:

•	Assumptions applied to calculate cash flows to assess possible impairment losses incurred on property, plant and equipment, intangible assets and goodwill.
•	Assumptions used to calculate future taxable income, which is used as the basis for recognising tax credits.
•	Judgements used to determine whether or not IFRIC 12 is applicable to the different concessions of the Group.
•	Judgements used to recognize lease contracts according to IFRS 16.

(i) Assumptions used in the impairment testing of property, plant and equipment, intangible assets and goodwill

At least every year, and always at year end, and with the assistance of an independent expert, the Group performs an impairment test on the goodwill and, in the event of evidence of impairment, of the tangible and intangible assets to calculate their recoverable value. Recoverable value is defined as the greater value between the fair value minus the cost of sale and the value in use. Based on the foregoing, the Group calculates the recoverable value on the basis of fair value minus cost of sale, applying discounted cash flow methods at Cash-Generating Unit level (hereinafter, "CGU"). In this regard, the determination of recoverable value requires the use of Management estimates.

Cash-generating units (CGUs) are the smallest groups of assets that generate independent cash inflows. Accordingly, the Group considers that each of its parks constitutes an independent cash-generating unit. The Group prepares individual projections for each CGU on the basis of past experience and of the best estimates available, which are consistent with the Group's business plans.

Although assets in each of the Group's parks are tested for impairment on an individual basis, goodwill is allocated to the CGU or the group of CGUs when there are economic grounds for applying this criterion (see note 7). In no event do the groups of CGUs exceed the operating segments established by the Group.

As a result of the analysis of the impairments tests performed by the Group at 31 December 2019, there has been an impairment of intangible and material assets amounting to 182,734 thousand Euros and an impairment of goodwill amounting to 137,588 thousand Euros (see note 6, 7 and 8). Additionally, during the three-month period ended 31 December 2018, an impairment of intangible and material assets amounting to 7,313 thousand Euros was recorded (see note 6 and 8).

Justification of the assumptions used in the impairment tests

After the Voluntary Public Offering of Acquisition of shares described in note 1, the Board of Directors of the new shareholder, Piolin Bidco, SAU, has approved a new global business plan for the period 2020-2024. This new business plan, prepared with the support of external consultants, involves changes in the strategy of some of the Group's parks. The main components of this business plan are visitor forecasts, visitor revenue, operating expenses and investments in new attractions, and reflect the overall strategy defined by the new shareholder for the Parques Reunidos Group as a whole, used to obtain projections for each of the parks. However, the cash flows and key assumptions, taking into account past experiences, and represent the best estimate of future market developments and renegotiations of concession and lease agreements. As indicated in note 25, the consequences derived from COVID-19 are a subsequent event that does not require an adjustment in the annual accounts for 2019, so the approved business plan that provides the basis for this impairment test does not consider the impact that the current health crisis may have on the recoverable value of the Group's assets.

These key assumptions include, among others, EBITDA growth rates, defined as operating profit/(loss) minus amortisation expenses, net impairment losses and sale of non-current assets minus valuation of traffic provisions and profits or losses arising from the sale of dependent companies. In addition, income and expenses considered as non-recurring according to the Group's internal policies are excluded. In this regard, the Group's EBITDA for the period ended 31 December 2019 is as follows:

	31.12.2019
Operating profit/(loss)	(300,966)
Amortisation and depreciation	114,066
Net losses on impairment and disposals of non-current assets	321,586
Changes in trade provisions	(2,808)
Other expenses and income considered as non-recurrent ^(*)	76,439
EBITDA	208,317

^(*) At 31 December 2019, Includes, according to the Group's internal policies, severance expenses for senior management in the amount of 4,050 thousand Euros and 1,455 thousand Euros for the long-term incentive plan, both included in the employee expenses heading, as well as expenses for consultancy services amounting to 70,934 thousand Euros included in the heading Other operating expenses (see note 20 (c)). At 31 December 2018, Included, according to the Group's expense allowance, other expenses for senior management in the amount of 2,403 thousand Euros and 94 thousand Euros for the long-term incentive plan, both included in the employee expenses heading, as well as expenses for consulting services amounting to 3,347 thousand Euros included in the heading Other operating expenses

Likewise, the key hypotheses mentioned above also include the additional periods of renewal of the concession or lease contracts, the constant growth rate or perpetuity growth rate, as well as the discount rate and the tax rates in each country where the parks are located. On the other hand, investments in fixed assets (capex) have been estimated on the annual EBITDA, without prejudice to specifically consider the investment estimated for the opening of new attractions or extensions of planned areas in certain years. It should be noted that the variation of the non-financial assets in the impairment tests is not taken into account given that the annual variations in the balances of customers and suppliers are not significant.

These estimates are categorised within level 3 of the estimated fair value hierarchy in accordance with IFRS 7 (see note 4 (I)).

a) Five-year EBITDA projections

As mentioned in note 1, in addition to its own parks, the Group operates certain parks under lease or concession. In all cases, the cash flow discounting calculations are based on the projections approved by the Board of Directions of Piolin Bidco, S.A.U. for each park for the period 2020-2024.

The main components of projections are visitor forecast, income, operating expenses and capex, which reflect the best estimates available on the expected performance of each park. In this regard, the key business assumption and main management variable defined by the Group is EBITDA, which is the main figure used by the Group to supervise its business performance.

The Group has drawn up EBITDA projections for the next five years based on the new strategic plan for each park designed for the new shareholder, and taking into account also past experience, the estimated growth of the sector in each country.

b) Projected years, additional extensions and growth rates

In the case of concession agreements, the projections included in the calculation of the cash flows have been made until the date of termination of the concession agreement, plus an additional extension of between 20 and 30 years. In the case of operating lease agreements, the projections are made up to the end of the contract, including additional extensions up to 20 years. The additional periods considered are based on past experience, which assume an uncertainty level of the renewal of such contracts.

As a general rule, for fully-owned parks the forecasts have been made for a five-year period.

In the case of concession or lease agreements, as of the fifth year the cash flows are extrapolated until the end of the agreement term (plus any additional extensions considered) at a constant growth rate, except for those specific cases where expansion Capex enables growth rates above the constant growth rate. In the case of fully owned parks, as of the last year of forecast the cash flow considers a terminal value calculated on the basis of a perpetuity growth rate.

The growth rates used are in line with the average long-term growth rate for the sector and take into consideration the long-term prospects for inflation and gross domestic product for each of the countries in which the parks are located (source: European Central Bank and International Monetary Fund).

In the case of the US parks, the terminal value has been calculated using the EBITDA multiples method.

c) Discount rates

The discount rates used by the Group are after tax (cash flows are also considered after tax) on the basis of the weighted average cost of capital (WACC) in each country in which the Group operates, taking into account:

i.	long-term government debt yields, which are used as a reference for the risk-free rate for each country (source: Bloomberg),
ii.	an unlevered beta and the average leverage ratio within the sector (debt ratio/ equity), based on comparable companies (source: Bloomberg).
iii.	The market risk premium, representing the difference between the historical average yield in the stock market and long-term public debt (source: various studies).
iv.	an alpha coefficient which represents an additional risk premium taking into account aspects such as size and lack of liquidity in the country (source: D&P Small Stock Premium),
v.	the after-tax cost of debt used is the 10-year Euribor (source: Bloomberg) plus a risk spread (based on comparable companies), after applying the prevailing tax rate in each country.

Main impairment test assumptions

The main assumptions used in the CGUs or groups of CGUs to estimate the recoverable amount for the year ended 31 December 2019 and for the year ended on 31 December 2018 are as follows:

•	Average compounded annual growth of EBITDA of 7.7 % (7.6 % in 2018). In specific situations where significant investments in new attractions are projected, the increase in EBITDA is higher.
•	Investments in fixed assets (capex) are generally estimated up to 15 % of the annual EBITDA, including both maintenance investments and capex in new attractions planned for the period 2020-2024.
•	The pre- and post-tax discount rates and estimated compound annual growth rates (or perpetual) used in each country in which the Group is present on, 31 December 2019 and 2018, are as follows:

	2019
Country	Post-tax discount rate	Pre-tax discount rate	Estimated constant (or perpetual) growth rate
Spain	7.65 %	9.95 %	2.00 %
Italy	8.69 %	10.69 %	2.00 %
France	7.07 %	8.96 %	2.00 %
United Kingdom	7.21 %	8.94 %	2.00 %
Norway	6.69 %	9.73 %	2.00 %
Belgium	7.15 %	9.48 %	2.00 %
Denmark	6.69 %	7.74 %	2.00 %
Germany	6.54 %	8.54 %	2.00 %
Netherlands	6.63 %	8.16 %	2.00 %
United States	8.88 %	9.36 %	⁽¹⁾

	2018
Country	Post-tax discount rate	Pre-tax discount rate	Estimated constant (or perpetual) growth rate
Spain	7.65 %	9.94 %	2 %
Italy	8.40 %	10.50 %	2 %
France	7.06 %	9.20 %	2 %
United Kingdom	7.52 %	9.48 %	2 %
Norway	7.05 %	10.22 %	2 %
Belgium	7.09 %	9.43 %	2 %
Denmark	7.09 %	8.18 %	2 %
Germany	6.60 %	8.49 %	2 %
Netherlands	7.12 %	8.75 %	2 %
United States	9.61 %	10.10 %	⁽¹⁾

⁽¹⁾ To calculate the terminal value, the US subgroup has used the multiples method, applying a multiple of between8.5 and 10 5 times EBITDA at 31 December 2019 and between 10 and 10.5 times EBITDA at 31 December 2018.

Sensitivity analysis

The estimates, including the methodology used, could have a significant impact on values and impairment of some CGUs.

The parks with a recoverable amount which far exceeds their carrying amount correspond to Spanish parks located in Madrid (Zoo-Aquarium and Parque de Atracciones) and the American water parks of Sandcastle, Water Country, Raging Water San Jose y Noah's Ark. Therefore, any reasonable variations in the key assumptions on which the Group Management has based the calculation of the recoverable amount could lead to the book value exceeding the recoverable amount.

In this sense, the Group has carried out a sensitivity analysis, without taking into account the effects of the current health crisis given its difficult estimation so far. In this analysis, the Group has considered a decrease with respect to the EBITDA figures initially projected for the next 5 years of 10 % given that, based on historical data, the actual data with respect to the projections made, except in exceptional cases, have not worsened above this percentage. In relation to constant (or perpetual) growth rates, the Group has performed a sensitivity analysis reducing this rate by 1 %. Lastly, the Group has carried out a sensitivity analysis without considering renewals in any of the contracts for the Group's parks, the impact of which is concentrated, mainly in the Spanish parks as they are all under concession or lease.

Taking into account the previous sensitivity analysis carried out at 31 December 2019 and 2018, as well as any variations in the discount rate (an increase or decrease of 1 % being considered reasonable), details of the effect on profit or loss are as follows:

	Thousand Euros (expense) / income
Sensitivity	31.12.2019	31.12.2018
+ 1 percentage point in discount rates	(65,781)	(81,106)
- 1 percentage point in discount rates	67,319	935
Extensions not obtained in concessions/leases	(115,345)	(79,389)
With a 10 % reduction in EBITDA in the next five years	(18,774)	(24,623)
-1 percentage point in estimated future growth rate (perpetual or constant)	(45,163)	(57,722)

The impact of these changes on the main CGUs are shown below:

• Parks in Spain: the effect of increasing the rate of growth by one percentage point would imply a lower impairment in Parques de la Naturaleza Selwo of 0.5 million Euro. In addition, a reduction of one percentage point in this rate would result in a further impairment by 0.4 million Euro. Likewise, a reduction of one percentage point in the growth rate would lead to an impairment of approximately 6.1 and 2 million Euros in Zoo-Aquarium de Madrid and Parque de Atracciones de Madrid, respectively.

On the other hand, the increase by one percentage point in the discount rate would imply an impairment in Parque de Atracciones de Madrid of 6.3 million Euros, 10 million Euros in Zoo-Aquarium de Madrid and an increase in 0.5 million Euros in Parques de la Naturaleza Selwo. By contrast, its reduction by one percentage point would lead to a lower impairment of 0.7 million Euros in Parques de la Naturaleza Selwo.

As for the EBITDA forecast for the next five years, a drop of 10 % would imply an impairment of 0.6 million Euros in Parque de Atracciones de Madrid and 1.9 million Euros in Zoo-Aquarium of Madrid.

Lastly, not considering extensions would lead to impairment of 82 million Euros in the Spanish parks.

• Parks in the US: an increase of one percentage point in the discount rate would result in an impairment of 0.4 million Euros in the American parks and a 10 % decrease in EBITDA for the next 5 years would lead to an additional impairment of 3.5 million Euros. Also, considering that the impairment tests in the U.S. are carried out using a method of multiples of EBITDA, if one point is reduced, the considered multiple would produce an impairment of approximately 2 million Euros. The parks that will suffer from this impairment's forehead mention, would be water parks Sandcastle, Water Country, Raging Water San Jose, Noah's Ark, and the animal park Miami Seaquarium.

• Parks in the rest of the world: The main impact would correspond to the Marineland, Bobbejaanland, Tusenfryd and Mirabilandia parks located in France, Belgium, Norway and Italy respectively. An increase of one percentage point in the discount rate would generate an impairment expense of 45 million Euros and a decrease of one percentage point would generate a lower impairment expense of 61 million Euros in the aforementioned parks. Likewise, a reduction of one percentage point in the growth rates at the aforementioned parks would have a negative impact on the financial results of 34 million Euros and an increase in one percentage point in such rate would generate an impairment of 46 million Euros in the aforementioned parks.

In relation to the EBITDA, a reduction of 10 % would produce an additional impairment of 12 million Euros in the aforementioned parks.

In relation to the goodwill associated to the Europe CGU amusement park, an increase of one percentage point in the discount rate would generate a higher impairment expense of 2.5 million Euros and a decrease of one percentage point in the discount rate would generate a lower impairment expense of 3.9 million Euro. However, a decrease of one percentage point in the growth rate would generate a negative impact in such rate, generating higher impairment expense of 2.1 million Euro and an increase of one percentage point in the growth rate would generate a positive impact in such rate, generating lower impairment expense of 3.2 million Euro. In relation to the EBITDA, a reduction of 10 % would cause an additional impairment of 0.6 million Euros.

Lastly, not considering additional renewals in the contracts of the European parks would produce an additional impairment of 33 million Euros in Tusenfryd.

Group management considers that taking into account the reasonableness of any possible changes in key assumptions and the provisions recognised in the financial statements, there is sufficient margin of manoeuvre to offset any impairment risk in the remaining parks for which provisions have not been made.

(ii) Assumptions used in the recognition of tax credits

The Group assesses whether to recognise tax credits based on tax loss carry forwards and temporary adjustments pending approval based on its capacity to generate future taxable income.

(iii) Relevant judgements used in the application of IFRIC 12 and the analysis of lease agreements

The Group analyses the contractual and legal characteristics of concession arrangements and leases. As a result of this analysis, in relation to IFRIC 2, the Group determined in preceding years that the administrative concessions for the Parque de Atracciones de Madrid, the Zoo de la Casa de Campo in Madrid Teleférico de Benalmadena and Parque Acuático de Salou were subject to IFRIC, and had therefore applied this standard, in all significant aspects, to these concessions in the consolidated financial statements under IFRS-EU at 31 December 2019 and 2018.

Regarding the leases, the Group analyses the original contractual conditions, as well as subsequent amendments, in order to determine the lease term and the discount rate to be applied in accordance with IFRS 16. The Group has also performed an analysis of the possible existence of business leases over which the Group may hold control. As a result of these analyses, the Group has determined that there are no business leases at 31 December 2019 and 2018, as all leases are for assets that do not constitute a business.

Although, the estimates made by the Sole Administrator have been calculated based on the best information available at 31 December 2019, is likely that events that may take place in the future may force its modification in future years. The effect in the consolidated annual accounts of the modifications that, if applicable, result from the adjustments to be made during the coming years would be recorded prospectively as established in IAS 8.

d) Changes in estimate

Despite the fact that the estimates made by the Sole Administrator of the Company have been calculated based on the best information available at 31 December 2019, it is possible that events that may take place in the future require its modification in the coming years. The effect in the consolidated annual accounts of the modifications that, if applicable, derive from the adjustments to be made during the coming years would be recorded prospectively.

e) Standards and interpretations applicable to this period

The standards, issued by the International Accounting Standards Board (IASB), and adopted by the European Union, with effective application for annual periods beginning on or after 1 January 2019 have not had an impact on these consolidated financial statements.

•	IFRS 16 - Leases. This standard will require the recognition of all contracts identified in the lessee's balance sheet, with limited exceptions, replacing IAS 17 currently in force. The advance application is allowed for entities applying IFRS 15 before or on the date of initial application of IFRS 16.
•	Amendment of IFRS 9. Prepayment features with negative compensation. This amendment will enable the measurement at amortised cost of certain financial assets eligible for early cancellation for an amount that is lower than the outstanding principal and interest thereon.
•	IFRIC 23 - Uncertainty over income tax treatments. This interpretation clarifies how to apply the recognition and measurement of IAS 12 when there is uncertainty as to the acceptability by a taxation authority of a certain taxation treatment used by the entity. As a conclusion of the analysis carried out by the Group, this standard has no impact on the financial statements.

At 31 December 2018, The Group Management carried out an analysis on the effects of IFRS 9, 15 and 16. As a conclusion of that analysis, it was revealed that the only standard with a relevant effect was IFRS 16. In this regard, although the rule is effective for years initiated from 1 January 2019, early adoption is permitted when IFRS 15 is being applied. The Board of Directors of the Company decided to apply IFRS 16 in advance in this financial year of three-months starting on 1 October 2018.

Hereafter, the most relevant conclusions of the mentioned analysis are detailed:

IFRS 15 - Revenues from Ordinary Activities related to Client Contracts

This standard will replace the following standards currently in effect:

•	IAS 18 Revenue from ordinary activities,
•	IAS 11 Construction Contracts,
•	IFRIC 13 Client loyalty programmes,
•	IFRIC 15 Agreements for the construction of real estate,
•	IFRIC 18 Transfers of assets from clients and
•	SIC- 31 Revenue- Barter transactions involving Advertising Services.

This standard is effective for financial years commencing on or after 1 January 2018; therefore, the Group applied IFRS 15 for the first time in the three-month period that began on 1 October 2018.

According to this standard, revenue must be recognised so that the transfer of goods or services to clients is shown for an amount that reflects the consideration that the entity expects to receive in exchange for such goods or service. This approach is based on five steps:

1.	Identify the contract(s) with the client.
2.	Identify the performance obligations in the contract.
3.	Determine the transaction price.
4.	Allocate the transaction price to each performance obligation.
5.	Recognise revenue when (or insofar as) a performance obligation is satisfied.

In accordance with IFRS 15, revenue must be recognised as the performance obligations in the contract are satisfied. In addition, more detailed breakdowns of information are required.

With the help of an independent expert, the Group has performed a measurement of the first-time application of the standard, identifying the projects and services whose Revenue Recognition Method used to date must be adapted to the new standards. To this end the Group:

a)	Has performed a review of all its contracts and classified them by type.
b)	It has submitted each type to the pertaining five step analysis required by IFRS 15, establishing the revenue recognition policy for each type in accordance with the standard.
c)	It has then allocated each contract to one of these types, thus having defined the revenue recognition policy to apply to each contract.
d)	By comparing it to the revenue recognition policies currently being applied, differences have been identified and impacts have been quantified.

After this analysis, the Group Management concluded that the effect of the transition to IFRS 15 on the date of first-time application will not have a significant impact on the financial and income situation of the Group.

For this reason, from among the possibilities of transition to the standard, the Group has elected the modality of full retrospective application at 1 October 2018, but without requiring the restatement of comparative figures due to the absence of significant impact.

• IFRS 9 - Financial Instruments

This standard replaces IAS 39 and includes financial asset impairment and hedge accounting as requirements for the financial classification and measurement of financial instruments. In this regard, the Group has carried out an assessment of the impact that this change of standard might have on its consolidated financial statements. This assessment is based on information currently available and may be subject to variation due to additional information that becomes available when the Group adopts the IFRS 9.

The classification criterion for financial assets will depend both on the business model used for their management and on the characteristics of their contractual cash flows. Based on the foregoing, financial assets will be measured at amortised cost, at fair value with changes in equity or at fair value with value changes in the profit and loss for the period. Specifically, loans, as well as trade debtors, are held to receive contractual flows and are expected to generate flows that only represent payments of principal and interest.

On the other hand, the classification of financial liabilities under IFRS 9 remains similar to that of IAS 39. Generally, financial liabilities will be measured at amortised cost, except financial liabilities held for trading, such as derivatives, for instance, which will be measured at fair value with value changes in profit and loss.

The new impairment model of IFRS 9 is based on expected loss, unlike the incurred loss impairment model of IAS 39. According to IFRS 9, the entity shall measure the loss allowance at an amount equal to 12-month expected credit losses or to lifetime expected credit losses depending on the significant increase of the credit risk.

As for debt restructuring, IFRS 9 brings about a number of differences with regard to IAS 39 in terms of recording profit and loss impact. According to IFRS 9 the non-substantial modification of a financial liability is treated like a change in the estimate of cash flows from a financial instrument at the amortised cost. This adjustment means that the new amortised cost must be calculated on the transition date, deducting future cash flows estimated at the effective rate of the original liability. The difference between this amount and the previous amortised cost is recorded in consolidated profit and loss as an income or an expense at the refinancing date. Although, so as this interpretation is retroactive, for those operations made before 1 January 2018, this difference is recorded in reserves.

• IFRS 16-Leases

This standard is effective for periods starting on or after 1 January 2019, although earlier application is permitted provided IFRS 15 is being applied. In this regard, The Board of Directors of the Company assessed the potential effect of the application of IFRS 16 on the Group Annual Accounts and decided for early application in the three-month period starting 1 October 2018.

This standard replaces IAS 17 and the current associated interpretations associated to that standard.

IAS 17 does not require the recognition of any asset or liability under right-of-use for future payments under such leases; on the other hand, certain information must be disclosed as operating leases commitment in the notes.

The main novelty of the IFRS 16 is the existence of a single lessee accounting model requiring lessees to recognise all leases in the balance sheet (with a few limited exceptions) with an impact similar to that of current financial leases with amortisation of the asset due to right-of-use and a financial cost due to the amortised cost of the liability, with cost accrual being faster under IFRS 16.

When applying IFRS 16, which impact has been quantified with the collaboration of an independent expert, the Group has taken the following decisions and conclusions into consideration:

a)	The Group has elected the full retrospective method with restatement of comparative figures. In cases where the lease agreements have been incorporated to the Group in the course of a business combination, this method has been applied in retrospective up to the date of said business combination. To apply this method, after first taking care to identify the perimeter of contracts affected to ensure the integrity of the population, the Group has traced the contract back to its origin. It is necessary to take into account that some of the lease contracts of the Parques Reunidos Group are long-term and that, at the moment of the transition to IFRS 16, they are still in the minimum contractual period initially agreed, and there has been no modification to these contracts nor exercise of renewal options.
b)	The contracts related with IFRIC 12 mentioned in Notes 4 e) and 9 of the consolidated report have not been included in the analysis, pursuant to IFRS 16.
c)	The group will apply the exemptions of low value and short-term leases.
d)	The Group has decided not to apply the standard to intangible assets.
e)	On the other hand, no Group contracts not currently recognised as leases that should be classified as such under IFRS 16 are expected to exist (moreover taking into account the exemption set forth in the standard for contracts the pertaining analysis would have been performed under the previous standard).
f)	The term of the contract for purpose of IFRS 16 corresponds with the agreed contractual minimum, given the term of the leasing contracts of Parques Reunidos Group. Given the level of certitude required in IFRS 16 regarding renewal options, the Group has considered that, for the large of the contracts, these options (i.e., those that depend exclusively on Parques Group) do not reach the threshold of reasonable certainty. This is due to the fact that the contracts related with rental of parks have an agreed contractual minimum that is in the distant future and there are no significant assets pending amortisation beyond that contractually agreed minimum and also to the fact that the rest of assets related with leasing contracts are not strategic and can in any case be easily substituted. Regarding the rest of assets other than the contracts for parks, the contractually agreed minimum has likewise been considered without unilateral renewals, since it is understood that there are no economic or business circumstances that would enable us to assert that the unilateral exercise of renewal options by the lessee is reasonably certain.
g)	It has been possible to estimate the historic rents for the retrospective calculations since, although a large part of the contracts has been in place for a rather long time, the rents established in these contracts are fixed rents, updated if applicable due to inflation, and they have not been affected by contractual modifications.
h)	Given the characteristics of the Group's business, other factors such as direct costs, incentives of the lessor, grace periods, etc., are not usually taken into consideration with the exception of some contracts that have been concluded recently (in which their effect has indeed been considered).
i)	When it has not been possible to apply the implied interest rate, due to the difficulties of its determination, (paragraph 26 of IFRS 16) the group has calculated the incremental interest rate on the basis of the bond interest rate of the country in question plus, where appropriate the pertaining adjustments required to adapt the rate to the term of the lease, to the underlying asset and the spreads of credit risk to be applied to Group companies (given comparable financing information is available).

f) Going concern.

On 31 December 2019, the Group presents a negative working capital of 195,543 thousand Euros (negative working capital of 131,724 thousand Euros at 31 December 2018). These facts are:

―	The formalisation of a short-term debt with Piolin Bidco, S.A.U. (debt of the new financing obtained by this company) as a consequence of the repayment by the syndicated debt (of which part of it was previously at long-term) and revolving described in note 14.
―	Investments in new businesses mentioned in note 5 of the consolidated financial statement. Accordingly, the acquisition of the Tropical Island GmbH, a German company, whose activity consists of the exploitation of a water park called "Tropical Islands" located in Krausnick, for an amount of 234 million euros.
―	The seasonality of the Group's business, whose activity is focused on summer months.

The loss in 2019 amounting to 353,595 thousand Euros is mainly due to:

―	As a consequence of the impairment tests carried out by the Group at 31 December 2019, an impairment of intangible and tangible assets for an amount of 182,734 thousand Euros and an impairment of goodwill of 137,588 thousand Euros mentioned in notes 6, 7 and 8.
―	The existence of non-recurring expenses in the year, incurred by the Group, amounting to 76,439 thousand Euro, described in note 2 c).

Likewise, the effects on the Group of the closure of the parks caused by the COVID 19 crisis (see note 25) can be considered an additional factor of doubt in the Group's continued management. In this sense, the Sole Administrator has formulated these consolidated annual accounts under the principle of going concern, considering that there will be no problems to satisfy the short-term payment commitments, since at the date of formulation there are the following mitigating factors that ensure reasonableness in the application of such principle:

On one hand, as mentioned in note 14 a) of these consolidated annual accounts, the Group at 31 December 2019 has an undrawn balance of the revolving credit associated with the syndicated loan for an amount of 105,883 thousand Euros with agreed maturing in March 2026.

Likewise, at the date of preparation of these consolidated annual accounts, the Group has formalised additional credit lines for an amount of 235,000 thousand Euros, through an expansion of the syndicated debt for an amount of 200,000 thousand Euros, with an agreed maturing in September 2026 and an additional 35,000 thousand Euros in credit lines signed with various banks, with an agreed maturing in April 2023.

On the other hand, the Group has carried out an exhaustive analysis updating its estimates to the impact caused by the closure of the parks mentioned in note 25, which includes measures to reduce the expenses and investments of capex planned and thereby, adapting the cash flows to the current situation. In accordance with these new projections and the new available funding mentioned above, the Group would be guaranteed to meet its short-term payment commitments.

Lastly, the Group does not foresee that the new estimates will trigger the condition established in the covenant contract for their testing and, consequently, that a default will occur (see note 14 a) (i)) during the next financial year.

(3) Distribution of the Parent Company Profits

The proposal for the Parent Company profit distribution for the annual year ended on 31 December 2019, amounts to 253,598,666.90 Euros, proposed by the Sole Administrator and pending approval, to transfer as accumulated losses.

The proposal for the Parent Company profit distribution for the three-month period ended on 31 December 2018, amounts to 14,656,129.09 Euros, proposed by the Board of Directors and approved by the General Shareholders Meeting, consists of its transfer to voluntary reserves.

(4) Significant Accounting Policies

a) Principles of consolidation

The consolidated financial statements comprise the financial statements of the parent Company and its subsidiaries at 31 December 2019. Control is obtained when the Group is exposed or has rights to variable returns derived from its involvement in a subsidiary and has the possibility to influence such returns through the exercise of its power over the subsidiary. Specifically, the Group controls a subsidiary if, and only if, the Group has power over the subsidiary (existing rights that give it the power to lead the relevant activities of the subsidiary) or exposure or rights to variable returns derived from its involvement in the subsidiary or can influence such returns by exercising its power over the subsidiary.

Generally, there is a presumption that the majority of voting rights represent control. To support this presumption and when the Group does not have the majority of the voting rights, or similar rights, of the subsidiary, the Group considers all relevant facts and circumstances to assess whether it has power over it, which includes:

•	Contractual agreement (s) with other owners over the voting rights of the subsidiary.
•	Rights arising from other contractual agreements.
•	Potential voting rights of the Group.

The Group performs a revaluation on whether or not it has control over a subsidiary if the facts and circumstances indicate that there are changes in one or more of the elements that determine control. The consolidation of a subsidiary begins when the Group obtains control over it and ends when the Group loses control over the subsidiary. The assets, liabilities, income and expenses of a subsidiary that has been acquired or disposed of during the year are included in the consolidated financial statements from the date on which the Group obtains control or until the date on which the Group loses control.

Profits or losses and each of the components of other comprehensive income are attributed to the owners of the shares of the Group's parent company and to the external partners, even if this implies that the external partners have a debit balance. When deemed necessary, adjustments are made to the financial statements of the subsidiaries so that their accounting policies coincide with those applied by the Group. All assets, liabilities, equity, income, expenses and cash flows derived from transactions between Group companies are eliminated in full in the consolidation process.

A variation in the percentage of participation in a subsidiary, without loss of control, is recorded as a transaction with equity instruments.

When the Group loses control of a subsidiary, it derecognizes related assets (including goodwill), related liabilities, non-controlling interests and other components of equity, recording any profit or loss in the result for the year. Any investment held in the former subsidiary will be recognised at fair value.

b) Subsidiaries

Subsidiaries are entities, including structured entities, over which the Group, either directly or indirectly through subsidiaries, exercises control. The Company controls a subsidiary when it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. The Company has power over a subsidiary when it has existing substantive rights that give it the ability to direct the relevant activities. The Company is exposed, or has rights, to variable returns from its involvement with the subsidiary when its returns from its involvement have the potential to vary as a result of the subsidiary's performance.

The income, expenses and cash flows of subsidiaries are included in the consolidated financial statements from the date of acquisition, which is when the Group effectively takes control of the subsidiaries. Subsidiaries are excluded from the consolidated Group from the date on which this control is lost.

The subsidiaries' accounting policies have been adapted to Group accounting policies for like transactions and events in similar circumstances.

The accounts or financial statements of the dependent entities used in the consolidation process refer to the same filing date and the same period as those of the Parent Company.

The accounts of the subsidiaries have been consolidated with those of the Parent Company by application of the global integration method. Consequently, all significant balances and transactions between consolidated companies have been eliminated on consolidation.

c) Business combinations

The Group applied the exception referred in IFRS 1 "First-time adoption of International Financial Reporting Standards" so that only business combinations carried out from 1 October 2007, the Group's transition date to IFRS- EU, have been registered using the acquisition method. The acquisitions of entities made prior to that date were recorded in accordance with the accounting principles generally accepted in Spain (GAAP) , after considering the necessary corrections and adjustments on the transition date. The Group has applied IFRS 3 "Business Combinations" revised in 2008 in transactions made from 1 January 2010. IFRS 3 "Business Combinations" has been subject to improvement within the annual improvements to IFRS cycle 2015-2017, according to which when an entity obtains control of a business that was previously a joint operation, it must apply the requirements of the business combinations carried out in stages, reassessing at fair value the participations previously held in the assets and liabilities of the joint operation. In so doing, the acquirer value all of its previous participation in the joint operation.

An entity will apply these modifications to business combinations whose acquisition date is in the years beginning on or after 1 January 2019, allowing their early application. These modifications will be applied to the future business combinations of the Group.

The acquisition date is the date on which the Group obtains control of the acquired. The consideration given is calculated as the sum of the acquisition-date fair values of the assets transferred, the liabilities incurred or assumed, the equity instruments issued by the Group and any consideration contingent on future events or compliance with certain conditions in exchange for control of the acquired. Acquisition-related costs, such as professional fees, do not form part of the cost of the business combination and are accounted for as expenses in the consolidated income statement.

On the acquisition date, the Group determined whether the terms of any operating lease contracts included in business combinations were favourable or unfavourable relative to market terms. The Group recognises an intangible asset if the terms are favourable and a non-financial liability if the terms are unfavourable. Nevertheless, and although the terms are market terms, the Group recognises as leaseholds intangible assets associated with contracts that provide the Group with entry into a new market or other future economic benefits.

Any contingent consideration is measured at the acquisition-date fair value. Subsequent changes in the fair value of contingent consideration are recognised in the consolidated income statement unless the changes arise within a time period of 12 months established as the provisional accounting period, in which case goodwill will be adjusted.

Goodwill is measured as the difference between the sum of the consideration transferred, the noncontrolling interests and the fair value of the acquirer's previously held equity interest in the acquired, less the net identifiable assets acquired.

If the acquisition cost of the net identifiable assets is lower than their fair value, the difference is recognised in the consolidated income statement for the year.

d) Non-controlling interests

Non-controlling interests in subsidiaries acquired after 1 October 2007 (the date of the Group's transition to IFRS-EU) are recognised at the acquisition date at the proportional part of the fair value of the identifiable net assets. Non-controlling interests in subsidiaries acquired prior to the transition date were recognised at the proportional part of the equity of the subsidiaries at the date of first consolidation.

Non-controlling interests are disclosed in consolidated equity separately from equity attributable to shareholders of the Parent. Non-controlling interests' share in consolidated profit or loss for the year and in consolidated total comprehensive income for the year is disclosed separately in the consolidated income statement and in the consolidated statement of comprehensive income.

The Group's share and the non-controlling interests in the consolidated financial statement for the year (the total consolidated result for the year) and in the changes in equity of the dependent entities, once the adjustments and eliminations result from the consolidation, are determined from the ownership interests at the end of the year, without considering the possible conversion of the potential voting rights and once the effect of dividends, agreed or not, and preferred shares with cumulative rights that are classified in equity accounts. However, the Group's interest and non-controlling interests are determined considering the eventual exercise of potential voting rights and other derivative financial instruments that, in substance, currently grant access to the returns associated with ownership in the dependent entities.

e) Foreign currency transactions and balances

(i) Functional and presentation currency

The functional currency of all the Group companies is the local currency, which is the Euro, except for the subsidiaries located in the US, the UK, Norway, Denmark and Australia. The figures disclosed in the consolidated financial statements are expressed in thousands of Euro, the Parent Company functional and presentation currency, rounded off to the nearest thousand.

(ii) Foreign currency transactions, balances and cash flows

Transactions in foreign currency are translated at the spot exchange rate prevailing at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies have been translated into the functional currency at the closing rate, while non-monetary assets and liabilities measured at historical cost have been translated at the exchange rate prevailing at the transaction date. Non-monetary assets measured at fair value have been translated into the functional currency at the exchange rate at the date that the fair value was determined.

Exchange gains and losses arising on the settlement of foreign currency transactions and the currency into the functional currency of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

(iii) Conversion of foreign operations

The financial statements of the Group companies that are stated in a currency other than the presentation currency are translated to Euro as follows:

―	Assets and liabilities, including goodwill and net asset adjustments derived from the acquisition of the operations, are translated at the closing rate at the reporting date of each statement of financial position.
―	Income and expenses are translated at the average exchange rates for the year.
―	All resulting exchange differences are recognised as conversion differences in other comprehensive global income.

For presentation of the consolidated statement of cash flows, cash flows of the subsidiaries are translated into Euro applying the exchange rates prevailing when the cash flows occurred.

Conversion differences recognised in other comprehensive income are accounted for in profit or loss as an adjustment to the gain or loss on the sale using the same criteria as for subsidiaries.

The local currency of all the Group companies is the Euro, except for the subsidiaries located in the US, the UK, Norway and Denmark.

f) Interest cost

The Group recognises the interest cost directly attributable to the acquisition, construction or production of qualified assets as an increase in the value of the asset. Qualified assets are those that require a substantial period of time before they can be used or disposed of. Inasmuch as the financing has been obtained specifically for the qualified asset, the amount of the interest to be capitalised is determined based on the actual costs incurred during the year less the returns obtained from the temporary investments made with such funds. Financing obtained specifically for a qualifying asset is considered generic financing, once substantially all the activities necessary to prepare the asset for its intended use or sale have been completed. The amount of capitalised interest corresponding to generic financing is determined by applying a weighted average interest rate to the investment in qualified assets, without exceeding the total interest costs incurred.

Capitalisation of interest begins when the expenses related to the assets have been incurred, the interests have been incurred and the necessary activities are being carried out to prepare the assets or parts thereof for their desired use or for sale and it will end when all or virtually all activities necessary to prepare the assets or parts of assets for their intended use or for sale have been completed. However, the capitalisation of interests is suspended during the periods in which the development of activities is interrupted, if these extend significantly over time, unless the temporary delay is necessary to put the asset in operating condition or to sale.

g) Intangible assets and goodwill

Intangible assets are initially recognised at cost of acquisition or development and subsequently measured at cost less accumulated amortisation and impairment. Only assets whose cost can be estimated objectively and from which future economic benefits are expected to be obtained are recognised.

An intangible asset is regarded as having an indefinite useful life when it is considered that there is no foreseeable limit to the period over which it is expected to generate net cash inflows. In all other cases intangible assets are considered to have finite useful lives.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment at least once a year, using the same criteria as those applied to goodwill.

Intangible assets with finite useful lives are amortised on a straight-line basis over the years of estimated useful life of the related assets.

The Group reviews the residual value, useful life and amortisation method for intangible assets at each financial year end. Changes to initially established criteria are accounted for prospectively as a change in accounting estimates.

• Goodwill

Goodwill is determined using the same criteria as mention in the section of business combinations.

Goodwill is not amortised but is tested for impairment annually or more frequently where events or circumstances indicate that an asset may be impaired. Goodwill on business combinations is allocated to each CGU or group of CGUs expected to benefit from the synergies of the aforementioned business combination, applying the criteria described in section g). After initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Internally generated goodwill is not recognised as an asset.

• Administrative concessions

Administrative concessions and surface rights include the amounts paid to public sector and other entities on which some of the leisure facilities owned by the Group are located. This cost was determined as the fair value of the concessions and/or surface rights on the date on which they were included in the Group.

In relation to the application of the IFRIC 12 interpretation, which refers to the accounting for, measurement and presentation of administrative concessions affecting infrastructure and other public services, as mentioned in note 2 c) the Board of Directors considered that the administrative concessions held by the Group for the Parque de Atracciones de Madrid, the Zoo de Madrid, Teleférico de Benalmadena and Parque Acuático de Salou fell within the scope of this interpretation, which was therefore applied in the preparation of the consolidated financial statements.

This interpretation is applicable to service concession arrangements with public entities in which:

•	the grantor controls or regulates the services to be rendered using the infrastructure, as well as the associated conditions and prices; and
•	the grantor controls any significant residual interest in the infrastructure at the end of the concession period.

Based on the terms of the concession arrangements governing the services provided by the Group under these administrative concessions, the recognition and measurement criteria applied to concessions are those established for intangible assets. The consideration received takes the form of the right to charge visitors the corresponding tariffs for their visits. This right to receive consideration is not unconditional and the Group assumes the risk of a fall in demand or in visitor numbers. During initial application of this standard, all investment costs relating to the infrastructure at these facilities that were recognised under property, plant and equipment have been retrospectively reclassified to intangible assets.

Contractual obligations assumed by the Group in order to maintain the infrastructure during the operating period or carry out renovation work prior to returning the infrastructure to the grantor upon expiry of the concession are recognised using the accounting policy described for provisions (see section s) of this note). Maintenance works are recognised as an expense when incurred. Any replacements, major repairs and other work necessary before the infrastructure can be returned require the systematic recognition of a provision. Due to the extensive ordinary maintenance carried out on the infrastructure, the Group considers that no additional provisions are required to meet contractual obligations.

Concession contracts that are not subject to IFRIC 12 are recognised using the general criteria. If the Group recognises assets as property, plant and equipment, these are depreciated over the shorter of the asset's economic life and the concession period. Any investment, upgrade or replacement obligation assumed by the Group is considered when calculating the asset's impairment as a contractual outflow of future cash flows necessary to obtain future cash inflows.

Administrative concessions are amortised on a straight-line basis over the concession period (see note 6). Lastly, the cost of any concession assets that require a substantial period of time to get ready for their intended use includes the borrowing costs incurred until the assets become operational, provided that these qualify for capitalisation. No borrowing costs have been capitalised at 31 December 2019 and 2018.

• Industrial property

Industrial property reflects the amounts paid to acquire and register trademarks and is amortised over its useful life up to a maximum of 20 years.

• Computer software

Computer software is measured at acquisition cost and amortised on a straight-line basis over five years. Computer software maintenance costs are charged as expenses when incurred.

• Other intangible assets

Other intangible assets basically comprise the cost of certain leases that are measured at their fair value on the date they were included in the Group through a business combination (see section b) of this note)., and which are amortised on a straight-line basis over the remaining lease term.

The Group recognises the derecognition of the intangible asset at the time of disposal or when it does not expect to receive future economic benefits from its use or disposal. The disposal date of the intangible asset is the date on which the buyer acquires control of it as indicated in the accounting policy of revenue from contracts with customers. The amount of the consideration for the disposal of the intangible asset and the recording of subsequent changes is determined by applying the criteria indicated in the accounting policy of revenue from contracts with customers.

h) Property, plant and equipment

Property, plant and equipment are recognised at cost of acquisition less any accumulated depreciation and impairment.

The cost of assets acquired or produced that require a substantial period of time to get ready for their intended use includes the borrowing costs incurred until the assets become operational, provided that these qualify for capitalisation.

Costs of expansion, modernisation or improvements that increase productivity, capacity or efficiency or extend the useful lives of assets are recognised as an increase in the cost of those assets. Repair and maintenance costs of property, plant and equipment are recognised in the consolidated income statement when incurred.

The cost of an item of property, plant and equipment includes the estimated costs of dismantling or removal and restoration of the site on which it is located, provided that the obligation is incurred as a consequence of having used the item and for purposes other than to produce inventories. Several Group companies have entered into agreements that provide for the construction and other works, at their own cost, required for the facilities and structures located on the land included in the concessions to be handed over in perfect condition at the end of the concession term. At the beginning of each contract term, the Group assesses whether it will have to make disbursements in the future as a result of the obligations assumed and, if so, estimates the present value thereof, which is capitalised as an increase in the cost of the related asset leading to the recording of a provision that is subject to financial update in the periods following its constitution.

This item also includes the cost of acquiring animals (including the fair value assigned thereto in a business combination), in cases in which this acquisition involved a monetary consideration, net of accumulated depreciation. The depreciation period of these assets is based on the expected lifespan of each species acquired with a monetary consideration, which is between 10 and 50 years.

The Group depreciation is provided on a straight-line basis over the estimated useful lives of the assets, as follows.

	Years
Buildings and other structures	50
Machinery	25
Technical, installations and equipment	10 to 18
Furniture and fixtures	15
Information technology equipment	4
Vehicles	6 to 12
Other property, plant and equipment	3 to 15

The items of property, plant and equipment whose useful life exceeds the term of the administrative concessions or operating leases are depreciated on a straight-line basis over the term of the related concession or lease (see note 9). Land not assigned to concessions is considered to have an indefinite useful life and is therefore not depreciated.

The Group reviews the residual value, useful life and depreciation method for property, plant and equipment at each financial year end. Changes to initially established criteria are accounted for prospectively as a change in accounting estimates.

The Group identify the derecognition of property, plant and equipment at the time of disposal or when it does not expect to receive future economic benefits from its use or disposal. The acquisition date of the property, plant and equipment is the date on which the buyer acquires control of it. The amount of the compensation for the disposal of the fixed assets and the recording of subsequent changes thereof, is determined by applying the criteria indicated in the corresponding accounting policy.

i) Impairment of non-financial assets subject to amortisation or depreciation and goodwill

The Group evaluates whether there are indications of possible impairment losses on non-financial assets subject to amortisation or depreciation to verify whether the carrying amount of these assets exceeds the recoverable amount.

Likewise, and regardless of the existence of any indication of impairment, the Group verifies, at least annually, the potential impairment of value that may affect goodwill, to intangible assets with an indefinite useful life, as well as intangible assets that are not yet available for use. Negative differences resulting from comparison of the carrying amounts of the assets with their recoverable amount are recognised in profit and loss.

The negative differences arising as a result from the comparison of the book values of the assets with their recoverable values, are recognised in results.

The losses related to the impairment of the CGU, initially reduce, if applicable, the value of the goodwill allocated to it and then to the other assets of the CGU, prorating according to the book value of each of the assets, with the limit for each of them of the greater of their fair value less the costs of disposition or disposition in another way, their value in use and zero.

A reversal of an impairment loss is recognised in the consolidated income statement. A reversal of an impairment loss for a CGU is allocated to the assets of each unit, except goodwill, pro rata with the carrying amounts of those assets. The carrying amount of an asset may not be increased above the lower of its recoverable amount and the carrying amount that would have been disclosed, net of amortisation or depreciation, had no impairment loss been recognised.

j) Leases

(i) Identification of a lease

The Group evaluates at the beginning of a contract, if there is included a lease. A contract is or contains a lease, if it grants the right to control the use of the identified asset during a period of time in exchange for consideration. The period of time during which the Group uses an asset includes consecutive and non-consecutive periods of time. The Group only revaluates the conditions, when a modification of the contract occurs.

(ii) Lessee accounting

In contracts that contain one or more lease and non-lease components, the Group allocates the contract consideration to each lease component in accordance with the independent sale price of the lease component and the aggregate individual price of components other than the lease.

Payments made by the Group that do not involve the transfer of goods or services to the same by the lessor, are not a separate component of the lease, but are part of the total consideration of the contract.

The Group recognizes at the beginning of the lease an asset for right of use and a liability for lease. The right- of-use asset consists of the amount of the lease liability, any lease payment made on or prior to the commencement date, less the incentives received, the initial direct costs incurred and an estimate of the costs of dismantling or restoration to incur, as indicated in the accounting policy for provisions.

The Group values the lease liability for the current value of the lease payments that are outstanding on the start date. The Group discounts lease payments at the appropriate incremental interest rate, unless it can reliably determine the implicit interest rate of the landlord.

Outstanding lease payments are made up of fixed payments, less any incentive receivable, variable payments that depend on an index or rate, initially valued by the index or applicable rate on the start date, the amounts that are expected to be paid by guarantees of residual value, the price of the call option whose exercise is reasonably certain, and payments for compensation for cancellation of the contract, provided that the term of the lease reflects the exercise of the cancellation option.

The Group values the right of use at cost, less accumulated depreciation and accumulated impairment losses, adjusted for any re-estimation of the lease liability.

If the contract transfers ownership of the asset to the Group at the end of the lease term or the right-of-use asset includes the price of the call option, the depreciation criteria indicated in the item of property, plant and equipment from the start date applied to the lease until the end of the useful life of the asset. Otherwise, the Group depreciates the asset by the right of use from the start date until the previous date between the useful life of the right or the end of the lease term.

The Group applies the criteria for impairment of non-current assets mentioned in note 4 g).

The Group assesses the lease liability by increasing it by the accrued financial expense, decreasing it by the payments made and re-estimating the book value for the modifications of the lease or to reflect the updates of the fixed payments in substance.

The Group records the variable payments that have not been included in the initial valuation of the liability in results of the period in which the events that trigger its disbursement occur.

The Group records the liability estimates as an adjustment to the right of use asset, until it is reduced to zero and subsequently to profit or loss.

The Group re-estimates the lease liability by discounting the lease payments at an updated rate, if there is a change in the lease term or a change in the period expectation of the call option of the underlying asset.

The Group re-estimates the lease liability if there is a change in the expected amounts to be paid of a residual value guarantee or a change in the index or rate used to determine the payments, including a change to reflect changes in market rents once there is a review of them.

The Group includes a modification of the lease as a separate lease if it increases the scope of the lease by adding one or more rights of use and the amount of the consideration for the lease increases by an amount consistent with the individual price for the increase in scope and any adjustment to the individual price to reflect the particular circumstances of the contract.

If the modification does not result in a separate lease, on the date of modification, the Group allocates the consideration to the modified contract as indicated above, re-determines the lease term and re- estimates the value of the liability by discounting the revised payments at the interest rate reviewed. The Group reduces the book value of the asset by right of use to reflect the partial or total termination of the lease, in those modifications that reduce the scope of the lease and record the profit or loss in profit. For the other modifications, the Group adjusts the book value of the asset by right of use.

k) Financial instruments

(i) Recognition and classification of financial instruments

Financial instruments are classified on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the economic substance of the contractual arrangement and the definitions of a financial asset, a financial liability and an equity instrument in IAS 32 "Financial Instruments: Presentation".

Financial instruments are recorded when the Group becomes an obligated party of the legal contract or business in accordance with its provisions.

For measurement purposes, the Group classifies financial instruments in the categories of financial assets and financial liabilities at fair value through profit or loss, separating those originally designated from those held for trading or mandatorily measured at fair value through profit or loss, financial assets and liabilities valued at depreciation cost and financial assets valued at fair value with changes in other comprehensive income, separating the equity instruments designated as such, from other financial assets. The Group classifies financial assets, other than those designated at fair value through profit or loss, and equity instruments designated at fair value with changes in other comprehensive income, in accordance with the business model and the characteristics of the contractual flows. The Group classifies financial liabilities as valued at depreciated cost, except those designated at fair value through profit or loss and those held for trading.

The Group classifies a financial asset or liability as held for trading if:

―	It is acquired or incurred mainly for the purpose of selling it or buying it again in the immediate future;
―	The initial recognition is part of a portfolio of identified financial instruments, which are jointly managed and for which there is evidence of a recent pattern of obtaining short-term benefits;
―	It is a derivative, except a derivative that has been designated as a hedging instrument and meets the conditions to be effective and a derivative that is a financial guarantee contract or
―	It is an obligation to deliver financial assets obtained on loan that are not owned.

The Group classifies a financial asset at depreciation cost, if it is held in the framework of a business model whose objective is to hold financial assets to obtain contractual cash flows and the contractual terms of the financial asset give rise, on specified dates, to cash flows of cash that are only payments of principal and interest on the outstanding principal amount (UPPI).

The Group classifies a financial asset at fair value with changes in other comprehensive income, if it is maintained in the framework of a business model whose objective is achieved by obtaining contractual cash flows and selling financial assets and the contractual conditions of the financial asset give rise to, at specified dates, to cash flows that are UPPI.

The business model is determined by the key personnel of the Group and at a level that reflects the way in which they jointly manage groups of financial assets to achieve a specific business objective. The Group's business model represents the way in which it manages its financial assets to generate cash flows.

The Group designates a financial asset at the initial moment at fair value with changes in results, if doing so eliminates or significantly reduces any inconsistency in the valuation or recognition that would otherwise arise, if the valuation of the assets or liabilities or the recognition of the results thereof were made on different bases.

The rest of financial assets are classified as at fair value with changes in results.

Financial assets and liabilities for contingent consideration arising in a business combination are classified as financial assets and liabilities measured at fair value through profit or loss.

The Group classifies liabilities held for trading at fair value through profit or loss.

The Group designates a financial liability at the initial moment at fair value with changes in results, if doing so eliminates or significantly reduces any inconsistency in the valuation or recognition that would otherwise arise, if the valuation of the assets or liabilities or the recognition of the results thereof was done on different bases or a group of financial liabilities or financial assets and financial liabilities is managed, and its performance is evaluated, based on fair value, according to an investment strategy or of documented risk management, and information relating to said group is provided internally on that same basis to key personnel of the Group's management.

The Group classifies the rest of the financial liabilities, except financial guarantee contracts, the commitments to grant a loan at a lower interest rate than the market one and the financial liabilities resulting from a transfer of financial assets that do not meet the requirements for their derecognition or that are accounted for using the continued involvement approach, as financial liabilities at depreciation cost.

(ii) Compensation principles

A financial asset and a financial liability are subject to compensation only when the Group has the currently enforceable legal right to offset the amounts recognized and intends to settle for differences or to realize the asset and settle the liability simultaneously. For the Group to have the legal right currently required, it must not be contingent on a future event and must be legally enforceable in the ordinary course of operations, in the event of insolvency or liquidation judicially declared and in case of default.

(iii) Financial assets and liabilities at fair value with changes in results

Financial assets and liabilities at fair value through profit or loss are initially recognized at fair value. Transaction costs directly attributable to the purchase or emission are recognized as an expense as incurred.

The fair value of a financial instrument at the initial moment is usually the price of the transaction, unless such price contains different elements of the instrument, in which case, the Group determines its fair value. If the Group determines that the fair value of an instrument differs from the transaction price, it records the difference in results, to the extent that the value was obtained by reference to a quoted price in an active market of an identical asset or liability, or was obtained from a valuation technique that has only used observable data. In all other cases, the Group recognizes the difference in results, to the extent that it arises from a change in a factor that market participation would consider when determining the price of the asset or liability.

Subsequent to their initial recognition, they are recognized at fair value by recording the changes in results. Changes in fair value include the interest and dividends component. The fair value is not reduced by the transaction costs that may be incurred by its eventual sale or disposal by other means.

Notwithstanding the foregoing, for financial liabilities designated at fair value through profit or loss, the Group recognizes the changes in fair value attributable to own credit risk in other comprehensive income. Deferred amounts in other comprehensive income are not subsequently reclassified to the income statement.

(iv) Financial assets at liabilities at depreciation cost.

Financial assets and liabilities at depreciation cost are initially recognized at fair value, plus or minus the transaction costs incurred and are subsequently valued at depreciated cost, using the effective interest rate method.

(v) Financial assets at fair value with changes in other comprehensive income.

Financial assets at fair value with changes in other comprehensive income are initially recognized at fair value plus transaction costs directly attributable to the purchase.

Subsequent to the initial recognition, financial assets classified in this category are measured at fair value, recognizing the loss or gain in other comprehensive income, except for the gains and losses from the exchange rate, as explained in the section on foreign currency transactions and expected credit losses. The amounts recognized in other comprehensive income are recognized in profit or loss at the time of the derecognition of financial assets. However, the interest calculated by the effective interest rate method is recognized in profit and loss.

(vi) Financial assets valued at cost

Investments in equity instruments for which there is insufficient information to be valued or those in which there is a wide range of valuations and the derivative instruments that are linked to them and that must be settled by delivery of said investments, are valued at cost. However, if the Group can have at any time a reliable valuation of the asset or the contract, these are recognized at that time at fair value, recording the profit or loss in profit or loss or in other comprehensive income, if the instrument is designated to fair value with changes in other comprehensive income.

(vii) Reclassifications of financial instruments

The Group reclassifies financial assets when it modifies the business model for its management. The Group does not reclassify financial liabilities.

If the Group reclassifies a financial asset of the depreciated cost category at fair value through profit or loss, it recognizes the difference between fair value and carrying amount in profit or loss. As of that moment, the Group does not record the interests of the financial asset separately.

If the Group reclassifies a financial asset of the fair value category with changes in results at depreciation cost, the fair value at the reclassification date is considered the new gross book value carrying amount, for the purpose of applying the effective interest rate method and the recording of credit losses.

If the Group reclassifies a financial asset of the depreciation cost category at fair value with changes in other comprehensive income, it recognizes the difference between the fair value and the book value in other comprehensive income. The effective interest rate and the recording of expected credit losses are not adjusted by the reclassification. However, the accumulated amount of expected credit losses is recorded against other comprehensive income and is disclosed in the notes.

If the Group reclassifies a financial asset of the fair value category with changes in other comprehensive income at depreciation cost, it is reclassified at its fair value. The deferred amount in equity is adjusted to the carrying amount of the asset. The effective interest rate and the recording of expected credit losses are not adjusted by the reclassification.

If the Group reclassifies a financial asset of the fair value category with changes in results at fair value with changes in other comprehensive income, the effective interest rate and expected credit losses are determined on the date of reclassification at fair value at that moment.

(viii) Impairment and uncollectibility of financial assets

The Group recognizes in profit or loss a value correction for expected credit losses of financial assets valued at depreciated cost, fair value through changes in other comprehensive income, accounts receivable from financial leases, assets by contract, loan commitments and financial guarantees.

For financial assets measured at fair value with changes in other comprehensive income, the expected credit loss is recognized in other comprehensive income and does not reduce the fair value of the assets.

The Group evaluates at each closing date the valuation adjustment in an amount equal to the expected credit losses in the following twelve months, for financial assets for which the credit risk has not increased significantly since the date of initial recognition. or when it considers that the credit risk of a financial asset has not increased significantly.

The Group evaluates, on each closing date, whether the credit risk of an instrument considered individually or a group of instruments considered collectively has increased significantly since the initial recognition.

When assessing whether for an instrument or a group of instruments, credit risk has increased significantly, the Group uses the change in the risk of default that will occur during the expected life of the instrument, instead of the change in the amount of expected credit losses. Therefore, the Group evaluates the change in default risk at each closing date compared to the initial recognition.

When evaluating whether there is a significant increase in the risk of credit risk, the Group considers all forward-looking information reasonable and supportable, specifically:

―	Internal and external credit risk ratings;
―	Current or expected adverse changes in the business, financial or economic conditions that may cause a significant change in the ability of the borrower to meet its obligations;
―	Current or expected significant changes in the operating results of the borrower;
―	Significant increases in credit risk in other financial instruments of the same borrower;
―	Significant changes in the value of the guarantee that supports the obligation or in the quality of the guarantees or improvements of credit of a third party;
―	Macroeconomic information such as interest rates, growth, unemployment rates, GDP of the area or region, real estate market prices or rental income.

The Group determines the expected credit losses considering the amount unweighted and weighted by the possible outcomes, the effective interest rate or the effective interest rate adjusted for the original credit risk and reasonable and supportable information that is available without effort and costs, not justified about past events, current conditions and projections of future economic conditions.

The maximum term considered by the Group to measure the expected credit losses is the contractual period, including the renewal options during which the Group is exposed to credit risk. However, the Group determines the credit losses during the period in which the Group is exposed to credit risk and the credit losses would not be mitigated by the credit risk management actions, although said period exceeds the maximum period contractual, for instruments that include a loan and an unencumbered commitment and the ability to demand reimbursement and cancel the commitment would not limit the Group's credit risk to the contractual period of notice.

(ix) Losses, modifications and cancellations of financial assets

The Group applies the criteria for the derecognition of financial assets to a part of a financial asset or to a part of a group of similar financial assets or to a financial asset or a group of similar financial assets.

Financial assets are derecognised when the rights to receive cash flows related to them have expired or have been transferred and the Group has substantially transferred the risks and benefits derived from their ownership. Likewise, the derecognition of financial assets in those circumstances in which the Group retains the contractual rights to receive the cash flows, only occurs when contractual obligations have been assumed that determine the payment of said cash flows to one or more recipients and are fulfilled. The following requirements:

―	The payment of cash flows is subject to prior collection;
―	The Group cannot proceed with the sale or pledge of the financial asset; and
―	The cash flows collected in the name of the eventual recipients are remitted without significant delay, and the Group is unable to reinvest the cash flows. Exceptions to the application of this criterion are investments in cash or cash equivalents made by the Group during the liquidation period between the date of collection and the date of referral agreed with the eventual recipients, provided that the accrued interest is attributed to the possible.

In those cases, in which the Group transfer a financial asset in its entirety, but retains the right to administer the financial asset in exchange for a commission, an asset or liability corresponding to the provision of said service is recognized. If the consideration received is less than the expenses to be incurred as a result of the provision of the service, a liability is recognized for an amount equivalent to the obligations contracted measured at fair value. If the consideration for the service is higher than that which would result from applying an adequate remuneration, an asset is recognized for the administration rights.

In transactions in which the derecognition of a financial asset is recorded in its entirety, financial assets obtained or financial liabilities, including liabilities corresponding to administrative services incurred, are recorded at fair value.

In the transactions in which the partial derecognition of a financial asset is recorded, the book value of the complete financial asset is assigned to the sold part and the maintained part, including the assets corresponding to the administration services, in proportion to the fair value relative of each of them.

The derecognition of a financial asset in its entirety implies the recognition of results for the difference between its book value and the sum of the consideration received, net of transaction expenses, including the assets obtained or liabilities assumed and any deferred loss or gain, in other comprehensive income, except for equity instruments designated at fair value with changes in other comprehensive income.

The criteria for recognition of the derecognition of financial assets in operations in which the Group neither transfers nor substantially retains the risks and benefits inherent to its ownership are based on the analysis of the degree of control maintained. Thus:

―

If the Group has not retained control, the financial asset is derecognised and any rights or obligations created or withheld due to the assignment are recognized separately as assets or liabilities.

―

If control has been retained, it continues to recognize the financial asset due to the Group's ongoing commitment therein and records an associated liability. The continuous commitment in the financial asset is determined by the amount of its exposure to changes in value in said asset. The asset and the associated liability are valued in accordance with the rights and obligations that the Group has recognized. The associated liability is recognized in such a way that the book value of the asset and the associated liability is equal to the depreciated cost of the rights and obligations retained by the Group, when the asset is valued at depreciated cost or at the fair value of the rights and obligations held, by the Group, if the asset is valued at fair value. The Group continues to recognize the income derived from the asset to the extent of its continuing commitment and the expenses derived from the associated liability. Changes in the fair value of the asset and of the associated liability are recognized consistently in results or in equity, following the general recognition criteria set forth above and should not be offset.

Transactions in which the Group substantially retains all the risks and benefits inherent to the ownership of a transferred financial asset are recorded through the recognition in liabilities of the consideration received. The expenses of the transaction are recognized in results using the effective interest rate method.

The Group applies the weighted average price criterion to value and write off the cost of equity instruments that are part of homogeneous portfolios and that have the same rights, unless the instruments sold and the individualized cost of the instruments can be clearly identified. same. For debt instruments, determine the cost individually or collectively in a manner consistent with the unit of account used to determine the impairment.

If the Group modifies the contractual flows of a financial asset, insofar as it does not imply the derecognition of the same, the book value is recalculated by the current value of the modified cash flows at the effective interest rate or effective interest rate adjusted by the original credit risk and recognizes the difference in results. The costs and fees invoiced by the Group adjust the carrying amount of the financial asset and are depreciated over the residual.

The Group directly reduces the carrying amount of a financial asset when it has reasonable expectations of full or partial recovery.

(x) Interests and dividends

The Group recognizes interest by the effective interest rate method, which is the discount rate that equals the book value of a financial instrument with the estimated cash flows over the expected life of the instrument, based on its contractual conditions and without considering the expected credit losses, except for financial assets acquired or originated with incurred losses.

Interest is recognized on the gross carrying amount of financial assets, except for financial assets acquired or originated with credit losses incurred and financial assets with credit deterioration. For the former, the Group recognizes the interest for the effective interest rate adjusted for the initial credit risk and for the latter, the Group recognizes the interest on the depreciated cost.

The changes in the estimation of cash flows are discounted at the effective interest rate or interest rate adjusted for the original credit risk and are recognized in profit or loss.

Dividend income from investments in equity instruments is recognized in income when the rights for the Group have arisen when it is received, it is probable that it will receive the economic benefits and the amount can be estimated reliably.

Dividends from equity instruments classified at fair value with changes in other comprehensive income are recognized in profit or loss, unless they represent a return on investment, in which case they are recognized in other comprehensive income.

The Group recognizes as interest income and expenses the interest for delay in commercial transactions in accordance with the legal and contractual conditions agreed. If such interests are finally compensated or cancelled, the Group recognizes the transaction according to its substance. The Group recognizes the legal right to offset the costs for collection management incurred when it is probable that they will be collected. The Group recognizes the expense for claiming the costs for collection management in accordance with the provisions of the accounting policy for provisions.

(xi) Derecognition and modifications of financial liabilities

The Group derecognises all or part of a financial liability when it either discharges the liability by paying the creditor, or is legally released from primary responsibility for the liability either by process of law or by the creditor.

The exchange of debt instruments between the Group and the counterparty or substantial modifications of initially recognised liabilities are accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability, providing the instruments have substantially different terms.

The Group considers the terms to be substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability.

If the exchange is accounted for as an extinguishment of the financial liability, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. Otherwise, the modified cash flows are discounted at the original effective interest rate, recognizing any difference with the previous book value as an income or an expense. In addition, the costs or commissions adjust the book value of the financial liability and are amortized by the amortized cost method during the remaining life of the modified liability.

The Group recognizes the difference between the book value of the financial liability or a part of it that is cancelled or assigned to a third party and the consideration paid, including any assigned asset different from the cash or liability assumed in profit or loss.

l) Valuation techniques and assumptions applicable when measuring fair value

Fair value is the amount for which an asset can be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. The Group generally applies the following systematic hierarchy to determine the fair value of financial assets and financial liabilities:

―	Level 1: Firstly, the Group applies the quoted prices of the most advantageous active market to which the entity has immediate access, adjusted where appropriate to reflect any differences in counterparty credit risk between instruments traded in that market and the one being valued. The quoted market price for an asset held or liability to be issued is the current bid price and, for an asset to be acquired or liability held, the asking price. If the Group has assets and liabilities with offsetting market risks, it uses mid-market prices as a basis for establishing fair values for the offsetting risk positions and applies the bid or asking price to the net open position as appropriate.
―	Level 2: When current bid and asking prices are unavailable, the price of the most recent transaction is used, adjusted to reflect changes in economic circumstances.
―	Level 3: Otherwise, the Group applies generally accepted valuation techniques using, insofar as is possible, market data and, to a lesser extent, specific Group data.

The fair values of the Group's financial assets and financial liabilities are determined as follows:

―	The fair values of financial assets and financial liabilities with standard terms and conditions which are traded in active and liquid markets are measured using quoted prices in the market at the valuation date.
―	The fair value of other financial assets and financial liabilities is determined in accordance with generally accepted valuation models by discounting cash flows using transaction prices observable in the market and the quotations of similar instruments.
―	Interest rate derivatives are arranged so as to be more in line with the financing taken out by the Group. Since the inputs required to measure this type of instrument are available, instruments of this type are classified under Level 2 in the hierarchy of IFRS 7. To determine the fair value of interest rate derivatives, the Group discounts cash flows based on implicit rates determined through interest rate zero coupon curves, based on market conditions at the date on which the fair value was measured. To calculate implicit rates, a zero-coupon curve must be differentiated based on the current deposit/non-current swaps with monthly settlements curve, as variable interest is paid on a monthly basis. The zero-coupon curve based on the Overnight Index Swaps (OIS) curve with daily settlements is used to calculate the discount factors required to determine the present value of estimated cash flows (calculated as the difference between the fixed and implicit rates for each period).

m) Cash and cash equivalents

Cash and cash equivalents include cash on hand and demand deposits in financial institutions. They also include other short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. An investment normally qualifies as a cash equivalent when it has a maturity of less than three months from the date of acquisition.

For the purposes of the consolidated cash flows statement, bank overdrafts that are payable on demand and that are part of the Group's cash management are included as cash and other equivalent liquid. Bank overdrafts are included in the consolidated statement as financial liabilities for debts with credit institutions.

n) Inventory

Inventories in the consolidated statement of financial position at 31 December 2019 and 31 December 2018 comprise the raw materials, spare parts and other supplies required to carry out the Group's activities. Inventories mainly comprise catering and merchandising items that are measured at the lower of average purchase price and net realisable value. Obsolete, faulty or slow-moving inventories have been written down to their expected realisable value.

o) Classification of assets and liabilities as current and non-current

The Group classifies assets and liabilities in the consolidated statement of financial position as current and non-current. Current assets and liabilities are determined as follows:

―	Assets are classified as current when they are expected to be realised or are intended for sale or consumption in the Group's normal operating cycle, which is expected to be within 12 months.
―	Liabilities are classified as current when they are expected to be settled within 12 months after the reporting date or the Group does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
―	Financial liabilities are classified as current when they are due to be settled within 12 months after the reporting date, even if the original term was for a period longer than 12 months, and an agreement to refinance or to reschedule payments on a long-term basis is completed after the reporting date and before the consolidated financial statements are authorised for issue.

p) Recognition of income and expenses

As a general rule, the Group recognizes income in a way that represents the transfer of goods or services committed to customers in exchange for an amount that reflects the consideration to which the Group expects to be entitled in exchange for said goods or services. The main source of Group income corresponds to the income received by the entrance into the park, followed by the income for restoration and merchandising. Except for what is mentioned below regarding annual passes and season passes, the accrual of such income occurs at the time of sale or, in the case of merchandising and restoration revenues, at the time of sale.

Certain parks in the Group sell annual passes and season tickets. The annual passes are booked as unearned income at the date of sale and recognised on a following systematic criteria (based on statistical and historical data) in the consolidated income statement over their validity period.

At 31 December 2019 and 2018, the heading "Other current liabilities" in the accompanying consolidated statement of financial position includes the revenues invoiced and not accrued as of said dates for this concept.

Additionally, the Group has a customer loyalty program. In this case, the credits or points that the Group grants to customers are considered a separate execution obligation, so that the transaction price is assigned between the credits and the other components of the sale transaction in accordance with the Independent sale price. The independent selling price per point is estimated considering the probability of redemption based on past experience.

Specifically, once the analysis of IFRS 15 for the identification of the different performance obligations for each customer transaction has been carried out and the corresponding part of the total price has been attributed to each of these obligations, the revenues are calculated as the control is transferred to the customer, final and represent the amounts receivable for the goods delivered and the services provided in the ordinary framework of the activity, deducted discounts and taxes.

Interest income and expense are accrued using the current interest method, based on the outstanding portion of the principal and the applicable effective interest rate.

During the period ended at 31 December 2019 and the three-month period ended 31 December 2018, the Group has not capitalised costs of obtaining contracts with customers because they are not significant.

q) Capital grants

Capital grants from Public Administrations are recognized when there is reasonable assurance of compliance with the conditions associated with their grant and their collection.

Capital grants are measured at the fair value of the sum or asset transferred and are recognised as income over the same period and in proportion to the depreciation of the subsidised assets.

At 31 December 2019 and 2018, the balance of the grants not yet taken to the consolidated income statement was included under the heading "other non-current liabilities" in the accompanying consolidated statement of financial position.

r) Income tax

The Parent has availed of the tax regime applicable to groups of companies as permitted by the revised text approved by Law 27/2014, of 27 November 2014, of Income Tax and is the parent of the tax group (see note 18).

The income tax expense shown in the consolidated profit and loss account corresponds to the sum of the expenses of the individual companies, except for the mentioned Spanish subgroup, corrected, where appropriate, by the effect of the consolidation adjustments. Current income tax assets or liabilities are valued at the amounts expected to be paid or recovered from the tax authorities, using the regulations and tax rates that are approved or are about to be approved on the closing date.

The income tax expense or tax income for the year comprises current tax and deferred tax.

Current tax is the amount of income taxes payable or recoverable in respect of the consolidated taxable profit or tax loss for the period. Current tax assets or liabilities are measured at the amount expected to be paid to or recovered from the taxation authorities, using the tax rates and tax laws that have been enacted or substantially enacted at the reporting date.

Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences. Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of deductible temporary differences, the carry forward of unused tax losses and the carry forward of unused tax credits. Temporary differences are differences between the carrying amount of an asset or liability and its tax base.

Current and deferred tax are recognised as income or an expense and included in profit or loss for the period, except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different year, directly in equity, or from a business combination.

• Recognition of deferred tax liabilities

The Group recognises all deferred tax liabilities except where:

―	they arise from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable income;
―	they are associated with investments in subsidiaries and joint ventures for which the Group is able to control the timing of the reversal of the temporary difference and it is not probable that the difference will reverse in the foreseeable future.

• Recognition of deferred tax assets

The Group recognises deferred tax assets provided that:

―	it is probable that sufficient taxable income will be available against which the deductible temporary difference can be utilised, unless the differences arise 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 accounting profit nor taxable income;
―	the temporary differences are associated with investments in subsidiaries and joint ventures that will reverse in the foreseeable future and sufficient taxable profit is expected to be generated against which the temporary differences can be offset.

It is considered probable that the Group will generate sufficient taxable profit to recover deferred tax assets when there are sufficient taxable temporary differences relating to the same taxation authority and the same taxable entity, which are expected to reverse in the same tax period as the expected reversal of the deductible temporary differences or in periods into which a tax loss arising from a deductible temporary difference can be carried back or forward.

In order to determine future taxable profit, the Group takes into account tax planning opportunities, provided it intends or is likely to adopt them.

• Measurement of deferred tax assets and liabilities

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted. The tax consequences that would follow from the manner in which the Group expects to recover or settle the carrying amount of its assets or liabilities are also reflected in the measurement of deferred tax assets and liabilities. For these purposes, the Group has considered the deduction for reversal of the temporary measures provided in transitional provision thirty-seven of Spanish Income Tax Law 27/2014 of 27 November 2014 as an adjustment to the tax rate applicable to the deductible temporary difference associated with the non-deductibility of amortisation and depreciation charges in 2013 and 2014, and to the balance sheet revaluation under Law 16/2012 of 27 December.

The Group reviews the carrying amount of deferred tax assets at the reporting date and reduces this amount to the extent that it is not probable that sufficient taxable profit will be available against which to recover them.

Deferred tax assets that do not comply with the above conditions are not recognised in the consolidated statement of financial position. At year end the Group reassesses whether conditions are met for recognising previously unrecognised deferred tax assets.

• Public prosecutors' uncertainties

If the Group establish that the tax authority is not likely to accept an uncertain tax treatment or a group of uncertain tax treatments, will consider such uncertainty in determining the tax base, credits for negative tax bases, tax deductions or tax rate. The Group determines the effect of uncertainty in the corporate income tax by the expected amount method, when the range of possible outcomes is widely dispersed or the most probable outcome method, when the outcome is binary or concentrated in one value. In those cases in which the tax asset or liability calculated with these criteria exceeds the amount presented in the self-assessments, this is presented as current or non-current in the consolidated statement of financial position based on the expected date of recovery or settlement. , considering, where appropriate, the amount of the corresponding default interest on the liability as they accrue in the income statement. The Group records changes in facts and circumstances regarding tax uncertainties as a change in estimate.

• Offset and classification

The Group only offsets current tax assets and liabilities if it has a legally enforceable right to offset the recognised amounts and intends either to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

The Group only offsets deferred tax assets and liabilities if it has a legally enforceable right to offset the recognised amounts, and they relate to income taxes levied by the same taxation authority on the same taxable entity or on different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets and liabilities are recognised in the consolidated statement of financial position under non-current assets or liabilities, irrespective of the expected date of recovery or settlement.

s) Commitments with employees

The Group has commitments with certain employees of its companies in Spain in the form of defined benefit plans for early retirement, death or disability. In prior years the subsidiaries resolved to externalise their obligations through a single-premium insurance policy covering the actuarial liability incurred at the date of externalisation. This premium is revised each year on the basis of updated information provided by the Group concerning the number of beneficiary employees. The Group also has a savings plan in the form of a defined contribution plan.

• Defined benefit plans

The Group includes plans financed through the payment of insurance premiums under defined benefit plans where a legal or constructive obligation exists to directly pay employees the committed benefits when they become payable or to pay further amounts in the event that the insurance company does not pay the employee benefits relating to employee service in the current and prior periods.

Where applicable, the Group should recognise defined benefit liabilities in the statement of financial position reflecting the present value of defined benefit obligations at the reporting date, minus the fair value of plan assets at that date. In the event that the difference results in an asset, the Group measures the resulting asset at the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. Economic benefits are available to the Group when they are realisable at some point during the life of the plan or on settlement of plan liabilities, even when not immediately realisable at the reporting date.

Income or expense related to defined benefit plans is recognised as employee benefits expense and is the sum of the net current service cost and the net interest cost on the net defined benefit liability or asset. The recalculated amount of net assets and liabilities for defined benefits is recognised in another global profit/loss. This last one comprising actuarial gains and losses, return on plan assets and any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability or asset. The costs of managing the plan assets and any tax payable by the plan itself, other than tax included in the actuarial assumptions are deducted when determining the return on plan assets. Any amounts deferred in other comprehensive income are reclassified to retained earnings in reserves during that year.

Assets and liabilities arising from defined benefit plans are recognised as current or non-current based on the period of realisation of related assets or settlement of related liabilities.

• Defined contribution plans

The Group recognises the contributions payable to a defined contribution plan in exchange for a service when an employee has rendered service to the Group. The contributions payable is recognised as an expense for employee remuneration, and as a liability after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the period, the Group only recognises that excess as an asset (prepaid expense) to the extent that the prepayments will lead to, for example, a reduction in future payments or a cash refund.

When contributions to a defined contribution plan do not fall due wholly within 12 months after the end of the period in which the employees render the related service, they are discounted using the market yield on high quality corporate bonds.

• Other employee benefits

Under the legislation in force in Italy, the employees of the Italian subsidiaries are entitled to a termination benefit in the event of resignation or termination. Lastly, under the legislation in force in the US, the US Group companies must recognise a liability for the employment-related obligations to their employees in connection with healthcare coverage and other items.

• Termination benefits

By law, the Group is liable to pay termination benefits to employees whose services are discontinued.

Provisions and termination benefits for involuntary redundancies or restructuring processes are recognised when the Group has a constructive obligation deriving from a detailed formal plan and it has raised a valid expectation that it will carry out the process by starting to implement the plan or announcing its main features to those affected by it.

t) Share-based payments for services

The Group recognizes the goods or services received or acquired in a transaction with payments based on shares, at the moment of obtaining said goods or when the services are received. If the goods or services are received in a transaction with payments based on shares that are settled in equity instruments, an increase in net equity is recognized, whereas if they are settled in cash, a liability is recognized, with a counterpart in income or in assets of the consolidated statement.

Equity instruments granted as consideration for services rendered by Group employees or third parties that supply similar services are measured by reference to the fair value of the equity instruments offered.

• Equity-settled share-based payment transactions (through delivery or issuance)

Equity-settled payment transactions (through delivery or issuance) are recognised as follows:

―	If the equity instruments granted vest immediately on the grant date, the services received are recognised in full and with a corresponding increase in equity;
―	If the equity instruments granted do not vest until the employees complete a specified period of service, those services are accounted for during the vesting period, with a charge to profit and a corresponding increase in equity.

The Group determines the fair value of the instruments granted to employees at the grant date.

Market conditions and non-vesting conditions are taken into account when measuring the fair value of the instrument. Other vesting conditions are taken into account by adjusting the number of equity instruments included in the measurement of the transaction amount so that, ultimately, the amount recognised for services received is based on the number of equity instruments that eventually vest. Consequently, the Group recognises the amount for the services received during the vesting period based on the best available estimate of the number of equity instruments expected to vest and revises that estimate if subsequent information indicates that the number of equity instruments expected to vest differs from previous estimates.

Once the services received and the corresponding increase in equity have been recognised, no additional adjustments are made to equity after the vesting date, although any necessary reclassifications in equity may be made.

• Tax effect

In accordance with prevailing tax legislation in Spain and other countries in which the Group operates, costs settled through the delivery of equity instruments are deductible in the tax period in which delivery takes place, in which case a deductible temporary difference arises as a result of the time difference between the accounting recognition of the expense and its tax-deductibility.

u) Provisions and contingencies

In preparing the consolidated financial statements, the Sole Administrator distinguish between:

―	Provisions: balances payable for current obligations deriving from past events, settlement of which will probably require an outflow of undetermined resources as regards the amount and/or settlement date.
―	Contingent liabilities: possible obligations arising from past events, the future materialisation of which is conditional on the occurrence or not of one or more future events beyond the Group's control.

The consolidated financial statements include all provisions for which the probability of the obligation requiring settlement is estimated to be more likely than not. Contingent liabilities, except those relating to business combinations, are not recognised in the consolidated financial statements but are disclosed in the notes thereto, when they are not considered to be remote.

Provisions are measured at the present value of the best estimate of the expenditure required to settle or transfer the obligation, taking into account the information available on the event and its consequences. Any adjustments arising from the restatement of these provisions are recognised as a finance cost.

Provisions do not include the tax effect, or the expected profits from the disposal or abandonment of assets.

Rights to reimbursement from third parties of the expenditure required to settle a provision are recognised as a separate asset provided that it is virtually certain that the reimbursement will be received. Any income deriving from the reimbursement is recognised in profit and loss as a reduction in the provision expense up to the amount of the provision.

Provisions are reversed against results when it becomes unlikely that outflows will be required to cancel the obligation. The reversal is made against the income item in which the corresponding expense had been recorded and the excess, if any, other income is included as "other revenues".

v) Taxes

The liability to be paid for taxes associated with a Group activity is recognised when the activity that generates the payment is carried out, as established in the substantive law that regulates the tax legal regime. However, in those cases where there is a right of reimbursement for the amount paid proportional to the time during which there is no activity or the asset subject to the lien is not owned, the liability is recognized proportionally to the time elapsed.

w) Cash flow statement

The Group submit the cash flow statement using the indirect method.

x) Assets and liabilities of an environmental nature

At 31 December 2019 and 2018, the Group does not have any assets earmarked for the protection and improvement of the environment, nor has it incurred relevant costs of this nature during the years then ended.

The Sole Administrator consider that no significant contingencies exist concerning the protection and improvement of the environment and, accordingly, no provision has been made in this regard at 31 December 2019 and 31 December 2018.

y) Segment reporting

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Group's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

The operating segments disclosed in the consolidated annual financial statements are defined by geographic region. The Management of the Group has decided to supervise the performance of the group's operations and makes strategic decisions based on geographical segmentation. The Group has identified the following operating segments: "United States", "Spain" and "Rest of the World". The holding activities of the Parent Company, as well as the activities carried out by the central offices of the Group (offices in Spain and in the United States) not attributable to any of the specific operating segments, are included in the segment "Head Office- Non-Operating". Group management considers the segmentation to be aligned with that used by other groups in the sector.

Segment assets and liabilities include all items directly or indirectly attributable to a segment. No significant assets are shared between segments. The financial costs associated with the syndicated loan at 31 December 2019 and 31 December 2018, and the relating finance expense, are included in the "Head office - non-operating" segment.

Segment revenue refers to revenue directly attributable to the segment plus the relevant portion of any Group revenue that could be attributable to the segment using reasonable distribution criteria. Segment revenue does not include interest or dividend income, gains on the sale of investments, or gains on redemption or extinguishment of debt. Any such items are included under "Head office - Nonoperating".

Segment profit or loss is recognised before any adjustments attributable to non-controlling interests. Segment assets and liabilities are those directly related to its operating activities. Inter-segment sales prices are established in accordance with normal commercial terms and conditions governing unrelated third parties.

(5) Business Combination

During the year ended 31 December 2019, there have been the following business combinations:

Acquisition Tropical Island (Germany)

On 16 January 2019, the Group obtained through the acquisition of 100 % of the shares of Centaur Holding Germany GmbH, the total control of the company Tropical Island Holding GmbH. Such company, is domiciled in Germany and its main activity is operating the water park called "Tropical Island" situated in Krausnick, Germany, whose business is orientated to family entertainment. This German company was incorporated for accounting purposes on 1 January 2019 since the effect of not considering the exact date of acquisition is not significant.

The detail of the consideration paid and the fair value of the assets acquired and liabilities recognised at the acquisition date is as follows:

	Book values	Adjustments	Fair values
Tangible assets	73,966	35,572	109,538
Intangible assets	810	13,328	14,138
Other current assets	7,414	961	8,375
Cash and other liquid assets	10,527		10,527
Non-Current liabilities	(9,329)	(14,572)	(23,901)
Current liabilities	(4,771)		(4,771)
Total net assets acquired	78,617	35,289	113,906
Consideration paid			234,734
Goodwill (note 7)			120.828

The result and income earned from the business incorporated in the year ended 31 December 2019 and included in the consolidated income statement totals profits amounting to 4,229 thousand Euros and income of 73,912 thousand Euro, respectively.

On 10 January 2020, the Group completed the accounting of the business combination for the acquisition of Tropical Island GmbH.

Assets acquisition of Volgelpark Walsrode (Germany)

On 30 January 2019, after the fulfillment of the conditions established in the asset purchase agreement dated 24 July 2018, the Group, through the German subsidiary Nature Park GmbH, has acquired all the assets of the company Vogelpark Walsrode GmbH related to the largest bird park in the world, Vogelpark Walsrode, located in Germany, for an amount of 8,053 thousand Euros (see note 8).

During the three-month period ended on 31 December 2018, the following business combination were carried out:

Acquisition Raging Waters Sydney (antes Wet'n'Wild Sydney) (Australia)

On 2 October 2018, the Group obtained, through the acquisition of 100 % of the shares constituting the capital stock by the US subsidiary Festival Fun Parks, LLC, the control of the company Raging Waters Sydney Pty Ltd. (previously named Wet'n'Wild Sydney Pty Ltd). This company is domiciled in Australia and its main activity is the exploitation of a water park called "Raging Waters Sydney" (previously named "Wet'n'Wild Sydney") located in Sydney, Australia, whose business is aimed at family entertainment. This Australian company has been incorporated for accounting purposes on 1 October 2018 since the effect of not considering the exact date of acquisition is not significant.

On 27 February 2019, the Group has completed the accounting for this business combination. The detail of the consideration paid and the fair value of the assets acquired and liabilities recognised at the acquisition date is as follows:

	Book values	Adjustments	Fair values
Tangible assets	37,653	(7,568)	30,085
Other current assets	1,285	(366)	919
Cash and other liquid assets	153	-	153
Current liabilities	(24,637)	23,461	(1,176)
Total net assets acquired	14,454	15,527	29,981
Consideration paid			25,003
Contingent consideration			4,978
Goodwill			-

The negative income and the income earned by the business included in the period ended at 31 December 2018 also included in the consolidated annual accounts for such period amounted to 2,314 thousand Euros and 2,096 thousand Euros, respectively.

Event Park - Belantis (Germany)

On 14 February 2018, the Group obtained through the acquisition of 100 % of the shares, the total control of the company Event Park GmbH. Such company, es domiciled in Germany and its main activity is operating the amusement park called "Belantis" situated in Leipzig, Germany, whose business is orientated to family entertainment. This German company was incorporated for accounting purposes on 1 March 2018 since the effect of not considering the exact date of acquisition is not significant.

On 14 February 2019, the Group completed the accounting of the business combination for the acquisition of Event Park GmbH, which does not differ from the detail presented in note 5 of the consolidated annual accounts for the three-month period ended on 31 December 2018.

(6) Intangible Assets

Movement under this heading of the consolidated balance sheet for the years ended 31 December and 2018 is as follows:

	Thousand Euros
	Balance at 31.12.18	Additions	Disposals
Cost
Administrative concessions	791,555	2,200	(95)
Industrial property	47.737	2,421	(153)
Computer software	18,716	1,467	(63)
Other intangible assets	32,488	1,190	-
Total, cost	890,496	7,278	(311)
Depreciation and amortisation
Administrative concessions	(412,585)	(29,710)	-
Industrial property	(26,606)	(3,263)	83
Computer software	(13,303)	(2,583)	151
Other intangible assets	(13,559)	(1,349)	49
Total depreciation	(466,053)	(36,905)	283
Impairments	(978)	(58,745)
	423,465	(88,372)	(28)

	Thousand Euros
	Transfers (note 8)	Business combination (Nota 5)	Exchange differences	Balance at 31.12.19
Cost
Administrative concessions	1,284	-	-	794,944
Industrial property	106	171	783	51,065
Computer software	1,171	13,967	-	35,258
Other intangible assets	161	-	-	33,839
Total, cost	2.722	14,138	783	915,106
Depreciation and amortisation
Administrative concessions	-	-	-	(442,295)
Industrial property	-	-	-	(29,786)
Computer software	-	-	(387)	(16,122)
Other intangible assets	-	-	-	(14,859)
Total depreciation	-	-	(387)	(503,062)
Impairments				(59,723)
	2,722	14,138	396	352,321

	31.12.2018
	Thousand Euros
	Balance at 30.09.18	Additions	Disposals
Cost
Administrative concessions	790,469	318	-
Industrial property	46,965	23	-
Computer software	18,027	48	(3)
Other intangible assets	30,123	-	-
Total, cost	885,584	389	(3)
Depreciation and amortisation
Administrative concessions	(404,128)	(8,457)	-
Industrial property	(25,764)	(570)	-
Computer software	(12,721)	(585)	3
Other intangible assets	(13,245)	(314)	-
Total, depreciation	(455,858)	(9,926)	3
Impairments	-	(978)	-
	429,726	(10,515)	-

	31.12.2018
	Thousand Euros
	Transfers (note 8)	Exchange differences	Balance at 31.12.18
Cost
Administrative concessions	768	-	791,555
Industrial property	199	550	47,737
Computer software	644	-	18,716
Other intangible assets	2,365	-	32,488
Total, cost	3,976	550	890,496
Depreciation and amortisation
Administrative concessions	-	-	(412,585)
Industrial property	-	(272)	(26,606)
Computer software	-	-	(13,303)
Other intangible assets	-	-	(13,559)
Total, depreciation	-	(272)	(466,053)
Impairments	-	-	(978)
	3,976	278	423,465

Additions at 31 December 2019 and 2018, primarily comprise investments in the concessions for the Parque de Atracciones de Madrid and the Zoo de Madrid, as well as investments in the Group. Conversion differences comprise the effect of fluctuations in the exchange rates used to translate the various line items reflecting intangible assets located in countries with a functional currency other than the Euro. Details of additions by operating segment are provided in the accompanying Appendix II.

Moreover, as a result of the business combinations described in note 5, there have been included assets for an amount of 14,138 thousand Euros from the German company Tropical Island Holding GmbH.

Details at 31 December 2019 and 2018 of the carrying amount of the administrative concessions are as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Parque de Atracciones de Madrid	89,479	100,405
Zoo de Madrid	94,593	100,890
Spanish water parks (Parques Acuáticos)	32,944	39,491
Parque de Atracciones Mirabilandia	134,034	136,529
Parque Biológico de Madrid	1,599	1,655
	352,649	378,970
Impairment	(56,280)	-
Total	296,369	378,970

Of the above amount, 187,367 thousand Euros at 31 December 2019 (201,295 thousand Euros at 31 December 2018) correspond to concessions recognised under IFRIC 12 criteria.

At 31 December 2019 and 2018, the Group carried out an impairment test on all intangible assets showing evidence of impairment according to the methodology described in note 2 c). As a result of this impairment test, in annual period ended 31 December 2019, an impairment of 58,745 thousand Euros was recorded relating mainly the following companies Mirabilandia and Mall Entertainment Centre Murcia, S.L.U. and Mall Entertainment Centre Temático Arroyomolinos, S.L.U. In the three-month period ended 31 December 2018, an impairment of 978 thousand Euros was recorded, mainly related to Mall Entertainment Centre Murcia, S.L.U.

At the date of authorisation for issue of these consolidated financial statements, the Sole Administrator consider that no additional events have occurred which would require amendments to the estimates made at the three-month period ended 31 December 2019 in respect of the impairment testing carried out.

Details, by category, of fully amortised intangible assets at 31 December 2019 and 2018 are as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Administrative concessions	32,730	31,788
Industrial property	1,171	1,059
Computer software	13,078	12,760
Other intangible assets	480	467
	47,459	46,074

(7) Goodwill

Details and movement under this heading of the consolidated statement of financial position at 31 December 2019 and 2018 are as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Opening balance 1 Januarry	558,041	555,169
Business combinations (note 5)	120,828	-
Impairments (note 2 c))	(137,588)	-
Exchange differences	4,701	2,872
Closing balance 31 December	545,982	558,041

Conversion differences comprise the effect of fluctuations in the exchange rates used to convert the goodwill in countries with a functional currency other than the Euro, essentially the United States.

The new business combinations during the year ended 31 December 2019, gather the goodwill arise from the acquisition of Tropical Island Holding GmbH (see note 5).

At 31 December 2019 and 2018, the Group has tested all goodwill for impairment in accordance with accounting principles, using the methodology described in note 2 c).

Since the visitor forecasts for the annual year were not being met, the Group's Management has revised the estimates of the cash flow projections considered for the Marineland park located in France. As a result, in 2019 the Group has impaired all the goodwill associated with the aforementioned park for an amount of 65,998 thousand Euros. Furthermore, impairments have been registered in the European parks of Bobbejaanland, Bonbonland, Tusenfryd and Bo Sommarland, as well as in the CGU of amusement parks in Europe for a total amount of 51,260 thousand Euros. Likewise, as result of the bad results of US parks due to adverse weather conditions (heavy rains and hurricanes), at 31 December 2019 the Group recognised impairments in goodwill associated with Sacramento, San José, Water Country and Noah's Ark Parks by an amount of 20,330 thousand Euros.

At the date of authorisation for issue of these consolidated financial statements, the Sole Administrator considers that no additional events have occurred which would require amendments to the estimates made of the threemonth period ended 31 December 2019 reporting date in respect of the impairment testing carried out.

Goodwill has been allocated to CGUs and/or groups of CGUs. Details of this goodwill and it book value at 31 December 2019 and 2018 are as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Spain parks
Parque Warner	39,085	39,085
US theme parks
Kennywood	58,313	57,191
Idlewild	7,066	6,621
Lake Compounce	8,856	8,685
Storyland	13,224	12,969
Dutch Wonderland	200	197
US animal parks
Sea Life Park	8,447	8,365
US Aquatic Parks
San Dimas	28,649	28,098
Sacramento	-	828
San Jose	-	5,020
Splish Splash	34,455	33,793
Water County	8,049	15,307
Emerald Point	23,507	23,055
Noah's Ark	1,788	8,055
European Amusement Parks
CGU Parks in Europe	62,918	75,000
Bobbejaanland	72,220	100,000
Bonbonland	-	2,500
Tusenfryd	25,346	33,403
Slagharen	2,922	2,922
Belantis	11,928	11,928
European Animal Parks
Marineland	-	65,998
Zoo and aquarium UK	12,302	12,302
European Aquatic Parks
BoSommarland	5,879	6,719
Tropical Island	120,828	-
	545,982	558,041

(8) Property, plant and equipment

Movement under this heading of the consolidated balance sheet at 31 December 2019 and 2018 is as follows:

	Balance at 31.12.18	Additions	Disposals
Cost
Land	77,222	2,946	-
Land - IFRS 16	15,744	-	-
Buildings and other structures	649,241	28,223	(5,743)
Buildings and other structures - IFRS 16	251,906	1,230	(72,322)
Plant, machinery and tools	646,841	58,294	(11,997)
Furniture and fixtures	48,073	3,873	(749)
Information technology equipment	28,426	3,355	(6,300)
Vehicles	64,626	8.612	(400)
Vehicles - IFRS 16	1,334	104	-
Other property, plant and equipment	158,418	4,154	(3,544)
Other property, plant and equipment -IFRS 16	23.150	-	(1,205)
Assets under construction	71,312	34,722	(4,841)
Total cost	2,036,293	145,513	(107,101)
Depreciation
Buildings and other structures	(220,442)	(10,727)	5,512
Buildings and other structures - IFRS 16	(36,191)	(5,054)	-
Plant, machinery and tools	(349,230)	(36,767)	11,550
Furniture and fixtures	(27,506)	(2,839)	580
Information technology equipment	(20,813)	(4,058)	6,222
Vehicles	(34,151)	(8,359)	376
Vehicles - IFRS 16	(646)	(520)	-
Other property, plant and equipment	(92,502)	(8,290)	2,696
Other property, plant and equipment -IFRS 16	(6,605)	(547)	-
Total accumulated depreciation	(788,086)	(77,161)	26,936
Impairment	(36,822)	(123,989)	-
	1,211,385	(55,637)	(80,165)

	Transfers (note 6)	Business combination (Nota 5)	Exchange differences	Balance at 31.12.18
Cost
Land	1,011	37,271	695	119,145
Land - IFRS 16	-	-	-	15,744
Buildings and other structures	8.247	27,242	11,576	718,786
Buildings and other structures - IFRS 16	-	-	-	180,814
Plant, machinery and tools	16,958	27,351	4,411	741,858
Furniture and fixtures	2,234	6,171	82	59,684
Information technology equipment	(1,165)	884	366	25,566
Vehicles	1,517	591	1,111	76,057
Vehicles - IFRS 16	-	-	-	1,438
Other property, plant and equipment	1.071	128	849	161,076
Other property, plant and equipment -IFRS 16	-	-	-	21,945
Assets under construction	(34,738)	17,953	662	85,070
Total cost	(4,865)	117,591	19,752	2,207,183
Depreciation
Buildings and other structures	25	-	(2,229)	(227,861)
Buildings and other structures - IFRS 16	-	-	-	(41,245)
Plant, machinery and tools	1,496	-	(3,160)	(376,111)
Furniture and fixtures	(1,215)	-	(6)	(30,986)
Information technology equipment	1,744	-	(37)	(16,942)
Vehicles	-	-	(10)	(42,144)
Vehicles - IFRS 16	-	-	-	(1,166)
Other property, plant and equipment	93	-	(1,206)	(99,209)
Other property, plant and equipment -IFRS 16	-	-	-	(7,152)
Total accumulated depreciation	2,143	-	(6,648)	(842,816)
Impairment	-	-	-	(160,811)
	(2,722)	117,591	13,104	1,203,556

	Thousands of Euro
	Balance at 30.09.18	Additions	Disposals	Transfers (note 6)
Cost
Land	76,486	248	-	-
Land - IFRS 16	15,744	-	-	-
Buildings and other structures	627,517	649	(269)	-
Buildings and other structures - IFRS 16	219,522	32,384	-	-
Plant, machinery and tools	629,371	2,144	(3,127)	14,025
Furniture and fixtures	46,930	339	(44)	441
Information technology equipment	27,081	169	(39)	307
Vehicles	61,504	207	(6)	2
Vehicles - IFRS 16	1,232	102	-	-
Other property, plant and equipment	154,710	619	(197)	3,216
Other property, plant and equipment -IFRS 16	23,152	-	(2)	-
Assets under construction	67.721	25,096	(201)	(21,991)
Total cost	1,950,971	61,957	(3,885)	(4,000)
Depreciation
Buildings and other structures	(214,204)	(2,197)	216	-
Buildings and other structures - IFRS 16	(34,562)	(1,364)	-	-
Plant, machinery and tools	(342,552)	(6,847)	1,092	24
Furniture and fixtures	(27,074)	(456)	23	-
Information technology equipment	(19,907)	(952)	40	-
Vehicles	(32,204)	(1,955)	6	-
Vehicles - IFRS 16	(562)	(84)	-	-
Other property, plant and equipment	(91,409)	(1,636)	43	-
Other property, plant and equipment -IFRS 16	(6,061)	(544)	-	-
Total accumulated depreciation	(768,535)	(16,035)	1,420	24
Impairment	(30,520)	(6,335)	-	-
	1,151,915	39,587	(2,465)	(3,976)

	Thousands of Euro
	Business combination (Nota 5)	Other movements	Exchange differences	Balance at 31.12.18
Cost
Land	-	-	488	77,222
Land - IFRS 16	-	-	-	15,744
Buildings and other structures	21,363	-	(19)	649,241
Buildings and other structures - IFRS 16	-	-	-	251,906
Plant, machinery and tools	5,048	-	(620)	646,841
Furniture and fixtures	364	-	43	48,073
Information technology equipment	710	-	198	28,426
Vehicles	2,207	-	712	64,626
Vehicles - IFRS 16	-	-	-	1,334
Other property, plant and equipment	-	-	70	158,418
Other property, plant and equipment -IFRS 16	-	-	-	23,150
Assets under construction	393	-	294	71,312
Total cost	30,085	-	1,166	2,036,294
Depreciation
Buildings and other structures	-	(4,678)	421	(220,442)
Buildings and other structures - IFRS 16	-	-	(265)	(36,191)
Plant, machinery and tools	-	-	(947)	(349,230)
Furniture and fixtures	-	-	1	(27,506)
Information technology equipment	-	-	6	(20,813)
Vehicles	-	-	2	(34,151)
Vehicles - IFRS 16	-	-	-	(646)
Other property, plant and equipment	-	-	500	(92,502)
Other property, plant and equipment -IFRS 16	-	-	-	(6,605)
Total accumulated depreciation	-	(4,678)	(282)	(788,086)
Impairment	-	-	33	(36,822)
	30,085	(4,678)	917	1,211,385

The additions of the Fiscal Year ended on 31 December 2019 and the year of three-month period ended on 31 December 2018 mainly include investments in maintenance made in various parks operated by the consolidated companies, as well as investments in new attractions. In this regard, the investments made in Parque Warner en España, Marineland in France, Mirabilandia in Italy, Slagharen in Netherlands, Bobbejaanland in Belgium and Movie Park Germany in Germany, as well as IEC in the United Kingdom (Lakeside), as those made in US parks stand out at 31 December 2019. At 31 December 2018, stood out the investment in new IEC group, mainly in Spain (Arroyomolinos), as well as Parque de Atracciones de Madrid, Parque Warner in Spain, Marineland in France, Mirabilandia in Italy y Movie Park Germany in Germany, ), as those made in US parks. The breakdown of new capital additions by operating segment is shown in Annex II attached hereto.

Additionally, derived from the resolution of the contracts associated with the opening of the interior leisure centers (IECs) of Lisbon in Portugal, Principe Pio in Madrid, Times Square in New York and other projects in development, the right of use capitalised has been withdrawn under IFRS 16 for an amount of 69,980 thousand Euros corresponding to the Times Square and Lisbon contracts. Likewise, as a result of the closure of the activity of the IEC Nickelodeon Xanadu in Madrid and the FEC Medford in the USA, the right of use capitalised under IFRS 16 corresponding to these contracts amounting to 2,343 thousand Euros has been withdrawn.

Furthermore, as a consequence of the business combinations described in note 5, assets amounting to 109,538 thousand Euros have been incorporated from the German company Tropical Island Holding GmbH and 8,053 thousand Euros related to the assets associated with the Volgelpark Walsrode bird park.

Likewise, fixed assets with a loss amounting to 1,152 thousand Euros have been withdrawn, mainly in the parks of the United States and in non-operational headquarters.

Other movements for the three-month period ended on 31 December 2018 correspond to the effect of the writeoff of property, plant and equipment of the annual periods ended on 30 September 2018 and 2017 in the adjustment of amortization homogenization that is recorded in the consolidation process to mitigate the effect of the difference between the net book value in the consolidated and the net book value in the local financial statements of certain assets of the group companies derived from differences in useful lives. This effect amounts to 4,678 thousand Euros (3,280 thousand Euros net of its tax effect).

Likewise, as a consequence of the application of the IFRS 16 standard described in note 2, the use rights associated with the assets leased described in note 9 have been registered.

At 31 December 2019 and 2018, the Group has carried out impairment testing on all property, plant and equipment that presented indications of impairment, using the methodology described in note 2 c). As a result of the tests, at 31 December 2019, asset impairments amounting to 123,989 thousand Euros have been registered. Such impairment affects mainly to the French park Marineland for an ampunt of 64,180 thousand Euros and to Aqualud for an amount of 2,827 thousand Euros. Nevertheless, there have been register mpairments related to IECS for an amount of 7,874 thousand Euros in Mall Entertainment Centre Temático Arroyomolinos, S.L.U., 1,869 thousand Euros in Lisbon Theme Mall Entertainment Centre, Unipessoal LDA, 1,283 thousand Euros in Indoor Entertainment Centre Príncipe Pio, S.A.U., as well as Parques Naturaleza Selwo, S.L. for an amount of 2,562 thousand Euro. However, as a result of the weather condition described in note 7, there are register asset impairment associated to the US park of Miami Seaquarium, Sacramento, San José y Sydney for an amount of 39,381 thousand Euros, as well as in IEC de Times Square for an amount of 2,880 thousand Euros. At 31 December 2018, they were register an asset impairment for an amount of 6,335 thousand Euros associated mainly to the company Mall Entertainment Centre Murcia, S.L.U. arise from the development experienced by such company after having completed the first year of activity. Likewise, a definitive loss of 1,930 thousand Euros was registered, generated by the dismantling of an attraction in the Warner park.

At the date of authorisation for issue of these consolidated financial statements, the Sole Administrator consider that no additional events have occurred which would require amendments to the estimates made for the period ended 31 December 2019 reporting date in respect of the impairment testing carried out.

Details, by category, of the fully depreciated items of property, plant and equipment in use at 31 December 2019 and 2018 are as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Buildings and other structures	233,990	188,083
Plant, machinery and tools	313,722	304,329
Furniture and fixtures	24,820	19,270
Information technology equipment	20,075	20,770
Vehicles	33,043	29,092
Other property, plant and equipment	40,052	34,908
	665,702	596,452

The Group takes out insurance policies to cover the possible risks affecting its property, plant and equipment, and for the intangible asset items relating to administrative concessions recognised in note 6 as a result of the application of IFRIC 12. The Sole Administrator consider that these policies are sufficient to cover the risks inherent in the Group's activity at 31 December 2019.

At 31 December 2019 and 2018, items of property, plant and equipment located abroad, mainly in the United States, Germany, France, Italy, Norway, Denmark, the United Kingdom and the Netherlands, amount to 683,791 thousand and 541,350 thousand Euros, respectively (of which 295,043 thousand Euros and 254,365 thousand Euros, respectively, in the United States), net of accumulated depreciation and impairment.

(9) Leases and concession agreements

During the years ended 31 December 2019 and 2018, the Group exploited a series of parks and other centres through administrative concession agreements, surface rights or leases with the Public Administration.

A detail of the terms and conditions of the main concessions and leases of parks and other centres at 31 December 2019 and 2018 is included in Annex III attached.

a) Operating leases (under IFRIC 12) and surface right (out of scope of IFRS 16)

Details of the parks and other leisure facilities operated by the Group during the years ended 31 December 2019 and 2018 for which administrative concessions (recorded in accordance with IFRIC 12), surface rights (beyond the scope of IRFRS 16) are as follows:

Country	Location	Type of park	Description	Maturity	Operating regime
Spain	Madrid	Animal park	Zooldgico de Madrid	2034 ⁽¹⁾	Administrative concession (IFRIC 12)
Spain	Madrid	Amusement park	Parque de atracciones de Madrid	2026 ⁽¹⁾	Administrative concession (IFRIC 12)
Spain	Madrid	Water park	Aquopolis Costa Dorada	2021 ⁽¹⁾	Administrative concession (IFRIC 12)
Spain	Madrid	Leisure parks	Teleférico de Benalmádena	2075 ^{(1) (4)}	Administrative concession (IFRIC 12)
France	Le Touquet	Water park	Aqualud	2034 ⁽²⁾	Surface right
Italy	Ravena	Amusement park	Mirabilandia (2 parks)	2072 ⁽²⁾⁽³⁾	Surface right

⁽¹⁾ The assets invested in for these parks must be returned at the end of the administrative concession. At 31 December 2019 nad 2018, the net book value of property, plant and equipment and intangible assets at these parks amounted to 112,343 and 115,799 thousand Euro, respectively.
⁽²⁾ These parks are operated by surface rights that do not imply the payment of a periodic rent and, therefore, are beyond the scope of IFRS 16.
⁽³⁾ Several contracts on different parcels with maturities in 2062 (automatically renewable for another 25 years), 2072 and 2070 (automatically renewable).
⁽⁴⁾ It is linked to the Selwo Marina surface right contract - forming a mixed contract - although its legal nature is more typical of a public service management contract, although it is not purely, of a public service since the Benalmadena Cable Car is a tourist transport.

The concession arrangements to construct, maintain and operate the parks and cable cars listed above on land leased by the corresponding local authorities were for initial periods of 30-35 years. They have since been extended up to the expiry dates based on a number of agreements with those authorities.

At the end of the concession periods, of the aforementioned surface rights or leases, the facilities will revert to the granting authority in accordance with the signed agreements. Nevertheless, the Group's experience in the sector suggests that it is possible to extend the contracts for additional periods through the contract financial and economic equilibrium. In most cases, one year prior to expiry, the concession operator must carry out at its own cost the construction and other work required for the facilities and structures to be handed over in perfect condition for rendering the services for which they were intended.

During the term of the agreement, concession operators are required to renovate and improve the facilities. As such, the concession operator undertakes to carry out the conservation and maintenance of the facilities. The Group considers that the ordinary maintenance carried out on the park facilities held under the concession is so comprehensive that no additional provisions are required in order to meet the contractual obligations. Likewise, the Group's updates on the fees for most concessions are made in reference to market indices. In addition, in the case of Parque de Atracciones de Madrid, Zoo de Madrid, Teleférico de Benalmádena and Aquopolis Costa Dorada entrance prices are controlled by the competent Authority, as they must be authorised on a yearly basis by the Authority after the request for review presented by the Group. Since they meet all the necessary conditions, these centres are recorded for accounting purposes under IFRIC 12.

b) Leases

During the three -month period ended 31 December 2019, the Group has operated a group of parks and other leisure facilities, for which it has signed operating lease agreements, concessions or those adapted as surface rights on patrimonial assets. The details of these parks and leisure facilities are as follows:

Country	Location	Operating segment	Description	Maturity
Spain	Alicante	Water park	Parque acuático de Torrevieja	2032 ⁽¹⁾
Spain	Madrid	Water park	Parque acuático de Villanueva de la Cañada	2026 ⁽¹⁾⁽⁵⁾
Spain	Valencia	Water park	Parque acuático de Cullera	2033 ⁽¹⁾
Spain	Sevilla	Water park	Parque acuatico de Sevilla	2020 ⁽¹⁾
Spain	Huelva	Water park	Parque acuático de Cartaya	2024 ⁽¹⁾
Spain	Madrid	Animal Park	Faunia (Parque Biológico Madrid)	2048 ⁽¹⁾
Spain	Málaga	Animal park	Parque de la naturaleza Selwo	2072 ⁽¹⁾
Spain	Malaga	Animal park	Parque Selwo Marina	2075 ⁽¹⁾
United Kingdom	Blackpool	Animal park	Zoológico de Blackpool	2033
United Kingdom	Windermere	Animal park	Acuario de Lake Windermere	2047
United Kingdom	Bournemouth	Animal park	Acuario de Bournemouth	2097 ⁽⁴⁾
Germany	Dusseldorf	Animal park	Movie Park	2062 ⁽²⁾
United States	California	Family entertainment centres	Palm Springs	2027
United States	Georgia	Family entertainment centres	Marietta Mountasia	2026
United States	Georgia	Family entertainment centres	Norcross Malibu	2026
United States	California	Family entertainment centres	Vista	2033
United States	Nueva York	Family entertainment centres	Medford	2034
United States	California	Water park	Sacramento	2025
United States	California	Water park	San Jose Raging Waters	2025
United States	Nueva York	Water park	Splish Splash	2034
United States	California	Water park	San Dimas Raging Waters	2034
United States	New Hampshire	Water park	Water County	2034
United States	Carolina del Norte	Water park	Emerald Pointe Wet n Wild	2037
United States	Hawaii	Animal park	Sea Life Hawaii	2027
United States	Florida	Animal park	Miami Seaquarium	2031
United States	California	Amusement park	Castle park	2037
Norway	Telemark	Water park	Bo Sommarland	2026 ⁽³⁾
Norway	Oslo	Amusement park	Tusenfryd	2025
Spain	Murcia	Family entertainment centres	Nickelodeon Adventure Murcia	2027 ⁽⁴⁾
Spain	Madrid	Family entertainment centres	Atlantis Aquarium Madrid	2028 ⁽⁶⁾
Spain	Madrid	Family entertainment centres	Nickelodeon Adventure Madrid	2028 ⁽⁷⁾
Australia	Sydney	Water park	Wet n'Wild Sydney	2063
United Kingdom	Lakeside	Family entertainment centres	Nickelodeon Adventure Madrid	2044

⁽¹⁾ The investments made in these parks are subject to reversion at the end of the contract. The net book value of the tangible and intangible assets of these parks, as of 31 December 2019 and 2018, amounts to 31,727 and 41,040 thousand Euros, respectively.
⁽²⁾ Various contracts with different instalments maturing in 2062, 2090, and 2092.
⁽³⁾ This contract allows for five-year renewals indefinitely.
⁽⁴⁾ It is possible to exercise up to two (2) extensions of five (5) years each.
⁽⁵⁾ The 14 of February 2019, the Municipal Plenary has agreed to extend the duration of the surface right until July 23, 2041. The modification of the contract will be drafted and signed in the coming months.
⁽⁶⁾ It is possible to exercise up to three (3) extensions of five (5) years each.
⁽⁷⁾ The contract of exploitation for this center has been terminated during 2019.

All the parks and leisure centres detailed in the previous table were also exploited in in three-month period ended 31 December 2018, except for the family entertainment centre of Murcia Nickelodeon Adventure which mas still under development.

At 31 December 2019, as a result of the review process of its IEC development strategy, the Group has decided not to continue with the projects in the United States and Portugal and, consequently, to solve the associated contracts. This decision has involved a cost of 41,716 thousand Euros (see note 20 c)). Furthermore, the Group has turn out the IEC Nickelodeon Adventure Madrid exploitation contract, which has entailed a cost of 1,271 thousand Euros (see note 20 c)).

The contracts detailed in the table in this section (except those whose consideration is entirely variable depending on the performance of the park) are capitalised (see note 8) as they fall within the scope of IFRS 16 (together with leases on other types of assets such as vehicles or other fixed assets).

There are no subleasing operations to third parties outside the Group or sale & leaseback contracts.

The average discount rate applied is around 6 %. As mentioned in note 4, since it was not possible to apply the implicit interest rate as it is not easily determinable (paragraph 26 of IFRS 16), the Group has calculated the incremental interest rate based on the interest rate of bonds of the, where appropriate, the corresponding adjustments to adapt the rate to the duration of the lease, the underlying asset and the credit risk spreads to be applied to the Group companies.

The Group's activity as lessee is mainly focused on the land on which the parks are located, as well as other less significant elements such as vehicles or small machinery. Due to the lengthy duration of land leases and the rest of the assets subject to leases are easily replaced, the lease liability is not subject to significant variations as a consequence of extension or determination options that they were not included in the lease period determined in accordance with IFRS 16 but whose period could be classified as probable.

Conversely, the Group is exposed to potential variable income payments for land leases whose rent is referenced to the volume of income or benefits of the park at issue, mainly in the United States, the United Kingdom and the latest contracts signed in Spain. The lease expense is due to variable income contracts included under the heading "Leases and royalties" in note 20 c).

The Group is not exposed to residual value guarantees and the covenants of its financing agreements do not include the liability for leases for the purposes of calculating them (equivalent to the contracts so far booked as financial leases).

(10) Financial Assets

The balance of the annual year ended on 31 December 2019 and the three-month period ended 31 December 2018 of non-current financial assets is as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Trade and other receivables:
Other receivables	675	-
Non-current deposits and guarantees arranged	1,126	1,645
Available-for-sale financial assets:
Measured at cost	2,615	14
Provision for value impairment	(14)	(363)
Derivative financial instruments
	4,402	1,296

The carrying amount of loans and receivables recognised at amortised cost net of impairment does not differ significantly from their fair value.

At 31 December 2019, this heading basically includes long-term deposits and guarantees, as well as the shares of the company acquired Tropical Islands Holding GmbH in the associate company Energieversorgung BRAND GmbH for an amount of 2,600 thousand Euros.

Likewise, a loan to the latter for an amount of 675 thousand euros is included in this heading.

(11) Trade and Other Receivables

Details at 31 December 2019 and 2018 are as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Trade receivables	14,472	21,445
Other receivables	3,181	2,523
Public entities, other	1,047	269
Personnel	162	141
	18,862	24,378

Trade receivables in the accompanying consolidated statements of financial position at 31 December 2019 and 2018 mainly comprise the balances receivable on Group sales made to third parties in the ordinary course of business. In general, these receivables earn no interest and fall due within 180 days.

The Group does not have a significant concentration of credit risk with regard to its trade receivables, since it has a large number of customers distributed throughout all the countries in which it operates.

At 31 December 2019 and 2018 this item includes provisions for impairment to cover the risk of debtor insolvency. The balance at these dates and movement for the years then ended are as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Opening balance	5,535	4,816
Provisions	582	2,010
Amounts used	(447)	-
Reversals for unrecoverable loans	(3,390)	(1,291)
Closing Balance	2,280	5,535

The Group follows the procedures of provisioning those debts that are default based on a specific analysis of the same. In determining the recoverability of trade accounts receivable, the Group takes into account any change in credit quality from the date it originated. In general, the age of impaired accounts receivable is, for the most part, greater than 12 months.

(12) Cash and cash equivalents

Details at 31 December 2019 and 2018 are as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Cash on hand	4,495	4.495
Cash in banks	33,957	46,565
Bank deposits	420	491
Accrued interest receivable	773	773
	39,610	52.324

At 31 December 2019 and 2018, the Group's cash balances are not subject to any restrictions.

Bank deposits mature in less than three months and generally earn interest at market rates below 0,5 %.

(13) Equity

Details of equity and movement during the year are shown in the consolidated statement of changes in equity.

a) Capital subscribed

At 31 December 2019 and 2018 the share capital of Parques Reunidos Servicios Centrales, S.A. is represented by 80,742,044 ordinary shares represented by account entries of a single class and series of 0,5 Euros of par value each. All shares have been fully subscribed and paid up and grant the same political and economic rights to their holders.

As indicated in note 1, since 29 April 2016 until 5 December 2019 the shares of the Company were listed in the Stock Exchanges of Madrid, Barcelona, Bilbao and Valencia.

As 31 December 2019, and as a consequence of the Public Stock Offering emitted by Piolin Bidco, S.A.U. described in Note 1, the shareholder of the Company with a participation equal or higher to 10 % of the Share Capital is Piolin Bidco, S.A.U., with a participation of 99.5496 %

Capital management

The main objectives of the Group's capital management are to ensure short and long-term financial stability and the adequate financing of its investments, while maintaining its borrowing levels. All this is aimed at ensuring that the Group maintains its financial strength and the soundness of its financial ratios in order to support its business and maximise value for its shareholders. For the purpose of measuring its capital management the Group uses the financial leverage ratio as an indicator, calculated as follows at 31 December 2019 and 2018:

	Thousand Euros
	31.12.2019	31.12.2018
Gross debt
Debt with credit institutions (note 14)	322.219	635,327
	322,219	635,327
Treasury assets
Current financial assets on maturity (Note 15)	-	(823)
Cash and other equivalents (note 12)	(39,610)	(52,324)
	(39,610)	(53,147)
Total net debt	282,609	582,180
Total net equity	680,876	1,055,722
Financial leverage
	0.42	0.55

The Group's financing structure, designed and in application, seeks to optimise equity and take advantage of the external financing capacities, without compromising the investment plans established in the business plan or short-term cash need. The Group manages the efficiency of this structure using the gearing ratio (Debt with credit institutions and obligations, net of cash assets /Net equity). The Sole Administrator considers that this ratio is suitable for achieving the abovementioned objective.

In addition, most of the financial debt used by the Group matures in September 2026 (see note 14), the Sole Administrator consider that this provides a sufficient period to perform such corporate transactions as might be required, together with the generation of cash from the Group's operations, to restore the balance in its volume of debt before it falls due.

As a result of the seasonal nature of the business, the Group makes treasury forecasts systematically for each business unit and geographical region in order to assess their needs. This liquidity policy followed by the Group ensures that its payment obligations are met without having to resort to interest bearing financing, allowing the Group to continuously monitor its liquidity position.

b) Share premium

The share premium is freely distributable, except when, as a result of its distribution, the net equity falls below the share capital. During 2016 the Company increased share capital, raising the existing share premium from 819,463 thousand Euros to 508,065 thousand Euros.

c) Other reserves

• Parent legal reserve and voluntary reserves

The legal reserve has been allocated in accordance with Article 274 of the Spanish Companies' Act, which requires companies to transfer 10 % of their profits for the year to the legal reserve until this reserve reaches an amount equal to 20 % of share capital.

The legal reserve is not distributable to shareholders and if it is used to offset losses, in the event that no other reserves are available, the reserve must be replenished with future profits.

At 31 December 2019 the Company has appropriated this reserve above the minimum limit established in the revised law of the Capital Companies Act.

The voluntary reserves are distributable to shareholders except when, as a consequence of the distribution, the Company's Equity amount is less than the Share Capital amount.

On 28 March 2019 the Company's General Meeting of Shareholders approved the distribution of dividends amounting to 20 million Euros, which was settled at 17 July 2019.

Additionally, during the fiscal year 2019 Management registered the effect in reserves derived from the capitalization of interest in tangible assets of the parks located in the United States of America of previous exercises by an amount of 1,399 thousand Euros and the decrease in the Tropical Islands GmbH and subsidiaries subgroup in the equity participation in the associated company Energieversorgung BRAND GmbH by an amount of 229 thousand Euros.

• Reserves in fully consolidated companies

The reserves in consolidated companies included retained profits and accumulated losses to be offset pertaining to the consolidated companies, also considering consolidation adjustments.

In the fiscal year exercise 2019, due to the cancelation of the previous syndicated debt (see note 14) has been recorded the retirement of the IFRS 9 impact of previous fiscal years associated with it.

• Restriction on the availability of reserves

The net equity of the Company and of some of the subsidiaries which are eliminated as part of the consolidation process includes reserves which, given their nature, are restricted according to the terms established in the legislation applicable to each case.

The main reserves are the legal reserve of the subsidiaries in Spain, Italy, France and Belgium. At 31 December 2019 and 2018, these reserves amounted to 25,541 thousand Euros and 25,545 thousand Euros, respectively, including the revaluation reserve resulting from the application of Royal Decree-Law 7/1996 in the Spanish subsidiaries, totalling 6,095 thousand Euros, in both years.

d) Other shareholder contributions

This heading mainly includes Exit Bonuses recognized during year 2016 amounting to 9,811 thousand Euros which the previous Sole Shareholder had assumed prior to the flotation of the Company in 2016 mentioned in note 1.

e) Other equity instruments

This heading includes an increase in net equity as a result of the share-based payment schedule detailed in note 4 t). During the years ended 31 December 2019 and 2018, with regard to the first and second cycles (2016-2019 and 2017-2020) of the long-term Incentives Plan (see note 21 c)), 125 and 94 thousand Euros have been respectively recognised. At 31 December 2019 this payment schedule has been redeemed.

f) Other comprehensive income

• Exchange differences:

Exchange differences mainly pertain to the conversion to Euro of the financial statements of the US subgroup, whose working currency is the US Dollar. Movement in the years ended 31 December 2019 and 2018 is as follows:

	Thousand
	Euros
Balance at 30 September 2018	19,784
Additions	2,618
Balance at 31 December 2018	22,402
Additions	5,206
Balance at 31 December 2019	27,608

• Valuation adjustments to equity:

At 30 September 2016, this heading included the net tax effect on the change in value of the financial derivative held by the Group in US dollars and designated as a cash flow hedging instrument. In 2017, the heading was reduced as a result of the ineffective coverage of said derivative (see Notes 4 (k) and 15 (a)). During 2019 and 2018, no movements have occurred since the coverage of the derivate continues to be ineffective. At 31 December 2019, this financial derivate has expired.

g) Non-controlling interests:

The detail of this section of the consolidated statement of financial position as of 31 December 2019 and 2018, and its movement during both years, are the following:

	Thousand Euros
	Leisure Parks, S.A.
Balance at 30 September 2018	548
Profit/ (Loss) of the year	(14)
Balance at 31 December 2018	534
Profit/ (Loss) of the year	44
Balance at 31 December 2019	578

h) Earnings per share

The basic earnings per share are calculated by dividing the profit / (loss) of the year attributable to the equity holders of the Parent Company by the weighted average number of the ordinary shares outstanding during the year, excluding own shares.

The breakdown of the basic earnings / (losses) per share is as follows:

	31.12.2019	31.12.2018
Profit / (loss) for the year attributable to Parent Company shareholders (in thousands of Euro)	(353,639)	(45,768)
Weighted average of ordinary shares in circulation	80,742,044	80,742,044
Basic earnings / (loss) per share (in Euro)	(4.38)	(0.57)

The Group has not issued financial instruments granting access to capital or to convertible debt, and therefore the diluted earnings per share are the same as the basic earnings.

(14) Loans and borrowings

The classification of financial liabilities by categories and classes, including the comparison of fair value and book value is presented in Appendix IV.

a) Loans and borrowings with credit institutions

Details of current and non-current financial liabilities with financial institutions at 31 December 2019 and 2018 are as follows:

	Thousand Euros
	31.12.2019
	Limit	Current	Non-current	Total
At amortised cost:
Syndicated loan	267,495	-	267,495	267,495
Revolving credit facility	200,000	28,574	-	28,574
Other bank loans	-	-	-	-
Credit facilities	62,568	28,665	-	28,665
Interests outstanding	-	2,518	-	2,518
Syndicated loan fees	-	-	(5,033)	(5,033)
Revolving credit facility fees	-	-	-	-
IFRS 9 adjustments	-	-	-	-
At fair value:
Derivative financial instruments (note 15)	-	-	-	-
	530,063	59,757	262,462	322,219

	Thousand Euros
	31.12.2018
	Limit	Current	Non-current	Total
At amortised cost:
Syndicated loan	549,657	22,902	526,755	549,657
Revolving credit facility	200,000	63,738	-	63,738
Other bank loans	-	2,341	10,926	13,267
Credit facilities	57,249	16,872	-	16,872
Interests outstanding	-	3,867	-	3,867
Syndicated loan fees	-	-	(4,393)	(4,393)
Revolving credit facility fees	-	-	(1,451)	(1,451)
IFRS 9 adjustments	-	(2,500)	(4,000)	(6,500)
At fair value:
Derivative financial instruments (note 15)	-	270	-	270
	806,906	107,490	527,837	635,327

At 31 December 2019 and 2018, the long-term maturity of debts with credit institutions is as follows:

	31.12.2019
	Thousand Euros
	2021	2022
Syndicated loan	-	-
	-	-

	31.12.2019
	Thousand Euros
	2023	2024	2025 and therefore	Total
Syndicated loan	-	-	267,495	267,495
	-	-	267,495	267,495

	31.12.2018
	Thousands of Euro
	2019/20	2020/21	2021/22
Syndicated loan	22,902	22,902	480,951
Other bank loans	2,370	2,391	2,421
	25,272	25,293	483,372

	31.12.2018
	Thousands of Euro
	2022/23	2023/24 and thereafter	Total
Syndicated loan	-	-	526,755
Other bank loans	832	2,912	10,926
	832	2,912	537,681

(i) Syndicated loan and revolving credit

On 1 April 2016 the Parent Company and its subsidiary in the US subgroup Festival Fun Parks, LLC, entered into a new syndicated loan as joint and several borrowers and guarantors, with Banco Santander, S.A., as the agent bank. This funding was used for (i) the repayment of the previous syndicated loan (arranged in 2014), the bonds of the US subgroup and the GE Capital 2011 revolving credit, which were repaid in full using the cash obtained from this financing as well as the amount obtained from the Initial Public Offering and (ii) pay the fees, commissions and expenses related to this financing. Furthermore, on that date a new revolving credit facility was signed to finance the Group's working capital requirements (including the permitted investments in Capex and business acquisitions).

On 13 February 2017, the Companies that initially entered into the syndicated loan agreed to a non-substantially-modifying renewal of this syndicated loan, implying a reduction of up to 40 basis points in the applicable interest rate spread and an extension of up to 11 months in the maturity schedule, depending on the tranche. An analysis of the renewal determined that modification of the syndicated loan was not substantial, the variation being only 1,52 %.

On 8 January 2019 the Parent Company has increased the syndicated loan by an amount of 300,000 thousand Euros. This increase has generated an additional tranche (B3 tranche) in the beforementioned syndicated loan and was granted under the same conditions of interest rate and maturity as the previous B2 tranche. This increase was allocated to financing the acquisition of the new covered aquatic park "Tropical Islands" located in Germany, as described in note 5.

On 3 September 2019 Management subscribed a financing contract subject to the United Kingdom Law denominated "Senior Facilities Agreement" by, among others, Piolin II, S.a.r.l., as Parent Company, Piolin Bidco, S.A.U., J.P. Morgan Europe Limited as Agent, BNP Paribas, S.A. as Security Agent, Morgan Stanley Bank International Limited, J.P. Morgan Securities PLC, Banco Santander, S.A., BNP Paribas Fortis, S.A. N.V. and ING Bank N.V., Spanish branch as the Original Lenders and Morgan Stanley Bank International Limited, J.P. Morgan AG, Banco Santander, S.A., BNP Paribas S.A., Spanish Branch and ING Bank N.V., Spanish Branch as CNMV Guarantee Providers (as it has been or may be modified in the future, and, as it has been novated and recast on 4 October 2019, the Senior Financing Agreement).

This new financing was used for (i) the payment of the shares included in the Public Stock Offering mentioned in note 1, (ii) the repayment of the Syndicated Loan signed in 2016 and the Revolving Credit facility. Additionally, a new Revolving Credit facility was signed to finance the Group's working capital requirements. As a consequence of the acquisition made by Piolin Bidco, S.A.U., on 16 September 2019, the outstanding balance and the accrued interests of the Syndicated Loan subscribed by the Company and not paid, were cancelled, resulting in the liquidation of all the related balances of the Syndicated Loan.

On 7 October 2019 an additional agreement was signed, which included Festival Fun Parks, LLC as an additional Lender of the Senior Facilities Agreement of 3 September 2019.

The loan, which amounts 1,064,117 thousand Euros as at 31 December 2019 comprises 2 tranches that have been taken by Piolin Bidco S.A.U. and Festival Fun Parks, LLC (both tranches in Euros) and a Revolving Credit facility (multi-currency) available to both Companies. As a result, in these Consolidated Financial Statements, only the B2 tranche taken by Festival Fun Parks, LLC is recognised as a Syndicated Loan as at 31 December 2019, amounting to 267,495 thousand Euros after the addition of Festival Fun Parks as an additional Lender on 7 October 2019, and the Revolving Credit facility, amounting to 28,574 thousand Euros. Below is a breakdown of the syndicated loan taken by Festival Fun Parks, LLC. at 31 December 2019 and 2018:

				31.12.2019
				Thousand Euros
Tranche	Year of maturity	Nominal Rate	Limit in original currency	Undrawn ⁽¹⁾	Drawn dawn
Tranche B2 (Euros)	September 2026	Euribor 6 month + 3,75 %	278,000	-	267,495
Revolving Credit facility (multicurrency)	March 2026	Libor/Euribor + 3,5 %	200,000	105,883	28,574
				105,883	296,069

⁽¹⁾ As at 31 December 2019, Piolin Bidco, S.A.U. has drawn 65,543 thousand Euros from the Revolving Credit facility and 10,505 thousand Euros of the tranche B2.

				31.12.2018
				Thousand Euros
Tranche	Year of maturity	Nominal Rate	Limit in original currency	Undrawn	Drawn down
Tranche Al (Dollars)	April 2022	Libor 6 months + 2,35 %	93,718	-	81,921
Tranche A2 (Euros)	April 2022	Euribor 6 months + 2,35 %	124,200	-	124,200
Tranche B1 (Dollars)	May 2022	Libor 6 months + 3,10 %	156,197	-	136,536
Tranche B2 (Euros)	May 2022	Euribor 6 months + 3,10 %	207,000	-	207,000
Revolving Credit facility (multicurrency)	April 2022	Libor/Euribor + 2,35 %	200,000	136,262	63,738
				136,262	613,395

The fair value of the syndicated loan and the Revolving Credit facility of the tranches taken by Festival Fun Parks, LLC at 31 December 2019 is of 298,119 thousand Euros (the fair value of the syndicated loan was 634,449 thousand Euros on December 2018). The estimated fair value is Level 2 based on the fair value hierarchy established in IFRS 7. At 31 December 2018 there were no restrictions on drawdowns of the revolving credit facilities.

The full amortisation on the capital of the B2 tranche is stablished as a sole repayment on 16 September 2026. The withdrawals on the Revolving Credit facility have to be repaid in full at the maturity date.

The syndicated loan also requires quarterly fulfilments, of a covenant financial ratio calculated on the consolidated financial statements or consolidated financial accounts of the last twelve months period of the Group. The Group Corporate Finance Department carries out a detailed follow-up of compliance with such financial ratios, in order to enable early detection of any potential risk of non-compliance. The first fulfilment of commitment will take place on 30 June 2020. The Sole Administrator of the Company has confirmed that the condition which causes the covenant calculation and the default of the covenant is not likely to occur.

The covenant is tested when the sum of all the initial withdrawals of Revolving Credit facilities (different local Credit facilities, of the syndicated loan and fixed assets investments), and the cash withdrawals under any auxiliary Credit facility of the initial Revolving Credit facility, less Cash and Cash equivalents assets held by any Group Company, exceeds in any moment the 40 % of the total commitments included in the initial Revolving Credit facility Agreement (being this 80 thousand Euros over 200 thousand Euros).

If the abovementioned condition would happen the following covenant has to be calculated:

Covenant	Definition	Ratio required
Debt	Net financial debt / Consolidated EBITDA	< 8.46

To ensure compliance with its obligations arising from the syndicated loan, the lender entities were provided with the following guarantees:

•	Under the new SFA, Piolin Bidco, S.A.U. and Festival Fun Parks, LLC are borrowers, answering these two Companies severally (pledge on the shares of these two Companies have been delivered as a guarantee). This guarantee is effective the moment that an "acceleration event" occurs, as described in the SFA (i.e. default on the principal or interest of the SFA by the borrowers). At 31 December 2019, both guarantors are up-to-date with the payments, so the guarantee has not been executed, and the Company did not need to recognize any additional liability in the Consolidated Financial Statements.
•	Additionally, to previous pledges, pledge on the shares of Parque de Atracciones Madrid, S.A.U., Madrid Theme Park Management ,S.L.U., Leisure Parks, S.A., Zoos Ibéricos, S.A., Tropical Island Holding GmbH, Attractie-en Vakantiepark Slagharen B.V. and Movie Park Germany GmbH .
•	In addition, with a personal guarantee, as additional guarantors, the dependent companies Parque de Atracciones Madrid, S.A.U., Madrid Theme Park Management, S.L.U., Leisure Parks, S.A., Zoos Ibéricos, S.A Tropical Island Holding GmbH, Movie Park Germany GmbH, Attractie-en Vakantiepark Slagharen B.V., Parco della Standiana SRL, and Centaur Holding Italy SRL.
•	Pledge over deposit accounts of Piolin Bidco, S.A.U. and the dependent companies Tropical Island Holding GmbH, Movie Park Germany GmbH, Parco della Standiana SRL, Centaur Holding Italy SRL and Festival Fun Parks, LLC.
•	Pledge over intercompany credit rights of Piolin Bidco S.A.U. and the dependent companies Festival Fun Parks, LLC, Parque de Atracciones Madrid, S.A.U., Madrid Theme Park Management, S.L.U., Leisure

Parks, S.A., Zoos Ibéricos, S.A., Tropical Island Holding GmbH, Movie Park Germany GmbH, Attractie-en Vakantiepark Slagharen B.V., Parco della Standiana SRL, and Centaur Holding Italy SRL.

• Omnibus pledge on the subsidiary Attractie-en Vakantiepark Slagharen B.V. and Festival Fun Parks, LLC.

(ii) Other bank loans and credits:

Other bank loans include a loan of dependent company Parque Biológico de Madrid, S.A., with an outstanding balance at 31 December 2018 of 4,725 thousand Euros, maturing in 2022 and at a variable annual interest rate of Euribor + 2,55 %. In addition, there was also a loan with an outstanding balance on 31 December 2018 of 6,971 thousand Euros, pertaining to dependent company Marineland Resort, S.A.S., and maturing in 2027 at a fixed annual interest rate of 3,8 %. Lastly, as a result of the acquisition and integration of the new company Event Park, this heading included a loan of this Company with an outstanding balance on 31 December 2018 of 1,751 thousand Euros maturing in 2022 at a fixed annual interest rate of 1,76 %. Those loans are cancelled as at 31 December 2019.

At 31 December 2019 and 2018, several Group companies have credit facilities amounting to a total 62,568 thousand Euros and 57,249 thousand Euros, respectively. These credit facilities are extended on a yearly basis. The drawdowns made at 31 December 2019 and 2018 are mainly a result of the seasonal nature of the Group's activity and the temporary cash requirements of some of the parks. Besides, the syndicated loan includes a Revolving Credit Facility of 200,000 thousand Euros maturing in March 2026.

b) Other financial liabilities

Other financial liabilities in the attached consolidated balance sheet mainly include the contributions granted to the Spanish companies Mall Entertainment Centre Murcia, S.L., Mall Entertainment Centre Acuario Arroyomolinos, S.L. and to the English company Lakeside Mall Entertainment Centre Ltd. for an amount of 6,153, 6,569, and 4,879 thousand Euros respectively, by the owners where those companies are executing the works of adaptation of these IECs. As a result of the adoption of IFRS 16, part of these contributions is reverted in the consolidation process due to the recognition of the lease liability of the IECs Mall Entertainment Center Murcia, S.L. and Mall Entertainment Center Tematico Arroyomolinos, S.L.U. amounting to 3,249 and 5,586 thousand Euros, respectively.

In addition, as a result of the business combination described in note 5, as at 31 December 2019, the amount of 782 thousand Euros is added to this heading in relation to the subsidy received by Tropical Island by the German Tax authorities. As of 31 December 2018, this heading included 5 million Euros in relation with the consideration retained in the acquisition of Wet n'Wild Sydney Pty Ltd.

(15) Derivative financial instruments

As at 31 December 2019 all of the derivatives financial instruments of the Group have expired.

The detail of the derivative financial instruments included in the consolidated balance sheet under "Loans and borrowings" and "Other financial assets" at 31 December 2018 is as follows:

	31.12.2018
	Thousand Euros
	Current	Non-current	Total
Assets Interest rate hedges	823	-	823
Liabilities Interest rate hedges	270	-	270

a) Interest rate derivatives

Details of derivative financial instruments and their corresponding fair values at 31 December 2018, together with the outstanding notional amounts to which they are linked, are provided below. At 31 December 2019 the Group does not applies hedge accounting to these derivatives.

Instrument	Interest rate swap	Interest rate swap	Interest rate swap
Fixed interest payable	-0.064 %	1.394 %	1.399 %
Variable interest receivable	6-month Libor	6-month Libor	6-month Libor
Date arranged	25/05/2016	31/05/2016	31/05/2016
Start of hedge	30/06/2016	30/06/2016	30/06/2016
Expiry date	30/06/2019	30/06/2019	30/06/2019
National (thousands)	184.000 (Euro)	50.600 (USD)	50.600 (USD)
Interest payments	Six-monthly (31 March y 30 September)	Six-monthly (31 March y 30 September)	Six-monthly (31 March y 30 September)
Fair value of swap (thousands of Euro)	(270)	403	420
Accrued interest payable (thousands of Euro)	-	156	155
Total fair value (thousands of Euro)	(270)	403	420

The Group hedged against the risk of variations in the interest rate of the syndicated loan using Interest Rate Swaps (IRSs). These financial instruments have been classified as Level 2 in the hierarchy established in IFRS 7.

With IRS, interest rates are interchanged so that the Group receives a variable interest rate from the bank in exchange for a payment of fixed interest on the nominal amount. The variable interest rate received for the derivative offsets the interest paid on the hedged financing. The end result is the payment of fixed interest on the hedged financing. To determine the fair value of interest rate derivatives, the Group discounts cash flows based on implicit rates determined through the Euro and US dollar interest rate curves depending on market conditions at the valuation date.

At 31 December 2019, the Group has recognised, in the heading "Variation in fair value of interest rate derivatives" of the consolidated balance sheet a loss of 553 thousand Euros pertaining to the variation in fair value since the start of the year until the maturity date both of the IRS in Euro and the one in USD (see note 20 d)).

Lastly, in the exercise ended 31 December 2019, these derivative instruments accrued interest expenses for the amount of 159 thousand Euros (311 thousand Euros revenues as at 31 December 2018) which are included in the "Financial Expenses" caption of the account, of consolidated results (see note 20 d)).

b) Sensitivity analysis

Details of the sensitivity analysis of the derivatives held by the Group at 31 December 2018 reporting date are as follows:

	Thousand Euros
	Result - (Expense)/ Income
Sensitivity	Spain	USA	Total
+0,50 points (rise in the interest rate curve)	240	116	356
-0,50 points (decrease in the interest rate curve)	(240)	(116)	(356)

The impact on results reflects the effect that variations in the interest rate applicable to derivatives would have had on finance costs accrued during the year.

The sensitivity of the derivatives at 31 December 2018 affected the Group's future equity to the extent that market conditions, specifically the future interest rate curve, could change.

(16) Provisions

Details of non-current provisions at 31 December 2019 and 2018 and the main movements therein during the years then ended are as follows:

	Thousand Euros
	Provision for pensions and sundry items	Other provisions	Total
Balance at 30 September 2018	490	9,289	9,779
Provisions	68	631	699
Provisions / Amounts used	(69)	(273)	(342)
Balance at 31 December 2018	489	9,647	10,136
Provisions	82	5,422	5,504
Amounts used / Reversals	(28)	(1,751)	(1,779)
Balance at 31 December 2019	543	13,318	13,861

The provision for pensions and similar commitments mainly comprises the amount accrued at 31 December 2019 and 2018 regarding the remuneration payable to Group employees in Italy when they leave the Group (see note 21).

"Other provisions" at 31 December 2019 and 2018 include a liability of 5,742 and 5,295 thousand Euros, respectively, to cover the Group's employment-related obligations to its US employees in connection with healthcare coverage and other items (see Note 21 b)). Additionally, there have been included as provisions for lawsuits for an amount of 489 thousand euros (875 thousand Euros in 2018) corresponding to the Leisure Parks, S.A. (Spain).

During the period ended 31 December 2019, the amount of 2,640 thousand Euros has been incorporated to this heading related to the first consolidation of the company Tropical Island Holding GmbH as a consequence of the business combination described in note 5. Likewise, an amount of 1,840 thousand Euros has been registered as a result of provisions for litigation corresponding to the resolutions of the ongoing projects described in note 9 b).

(17) Trade and other accounts payable

Details at 31 December 2019 and 2018 are as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Trade payables	61,126	43,531
Public Administrations (Note 18)	14,417	7,282
Personnel	19,264	16,283
Other current liabilities	19,996	20,950
	114,803	88,046

Trade payables reflect balances payable arising from the Group's commercial activity, which is its statutory activity. In general, these payables are not interest-bearing and fall due within 120 days.

At 31 December 2019 and 2018, "Other non-trade debt" includes, among other items, debts from fixed asset acquisitions amounting to 19,286 and 20,320 thousand Euros, respectively. These debts have maturities of less than 12 months and, in general, do not accrue interest.

At 31 December 2019 and 2018, the Group has supplier balances under confirming amounting to 17,495 and 14,637 thousand Euros, respectively. Of such balances under confirming, at 31 December 2019 and 2018, 14,987 and 10,859 thousand Euros respectively pertain to "Debts from purchases and service provisions" and the residual balance to "Other non-trade debt".

Average Supplier Payment Period, "Reporting Requirement", Third Additional Provision of Law 15/2010 of 5 July 2010

Pursuant to Law 15/2010, which stipulates measures to combat late payments in commercial transactions, the information on the average payment period to suppliers of the parent company and the Spanish subsidiaries at 31 December 2019 and 2018 is as follows:

	Days
	31.12.2019	31.12.2018
Average supplier payment period	37	50
Transactions paid ratio	36	49
Transactions payable ratio	72	63

	Amount (thousand Euros)
	31.12.2019	31.12.2018
Total payments made	143,218	44.215
Total payments outstanding	4,306	3.788

The payments to suppliers reflected in the above table refer only to the Spanish consolidated companies and are trade payables as they relate to goods and services. The Group takes the confirmation date to its suppliers as the payment date.

(18) Income tax

Details of balances with public entities at 31 December 2019 and 2018 are as follows:

	Thousand Euros
	31.12.2019		31.12.2018
	Non-current	Current	Non-current	Current
Assets
Deferred tax assets	29,970	-	30,562	-
Tax loss carryforwards	66,003	-	49,210	-
Withholdings and prepayments	-	3,759	-	-
Value added tax	-	-	-	-
Other items	-	-	-	2,680
	95,973	3,759	79,772	2,680
Liabilities
Deferred tax liabilities	259,192	-	263,149	-
Income Tax	-	-	-	-
Personal income tax	-	9,599	-	2,915
Social Security, payable	-	2,250	-	2,344
Value added tax	-	(1,302)	-	(1,369)
Other items	-	3,870	-	3,122
	259,192	14,417	263,149	7,013

The Parent Company is the leading company in the tax consolidation group, in accordance with Law 27/2014 of 27 November on Corporate Income Tax, formed by the companies Parque de Atracciones Madrid, S.A.U., Zoos Ibéricos, S.A., Parques de la Naturaleza Selwo, S.L., Leisure Parks, S.A., Parque de Atracciones San Fernando de Henares, S.L.U., Aquopolis de Cartaya, S.L.U., Madrid Theme Park Management, S.L.U., Gestion Parque de Animales Madrid, S.L.U., Travelpark Viajes, , S.L.U., Parques Reunidos Valencia, S.A, en liquidación., Parque Biológico de Madrid, S.A.U., Mall Entertainment Centre Murcia, S.L.U., Mall Entertainment Tematico Arroyomolinos Centre, S.L.U., Mall Entertainment Centre Acuario Arroyomolinos, S.L.U., Indoor Entertainment Principe Pio, S.L.U., and Parques Reunidos Atlantica S.L.U. All other dependent companies have not been included within this tax group due to not meeting the criteria established by Spanish tax regulations regarding the Consolidated Tax Return System.

As set forth in the legislation in force in Spain, taxes cannot be considered as definitively paid until the returns presented have been inspected by the tax authorities, or the statute of limitations of four years has passed. At 31 December 2019 the parent Company and the rest of its subsidiaries in Spain, with which it forms the tax consolidation group, have all main taxes applicable to them in the last four years open for review.

With regard to the US subgroup, the years 2003-2019 are open for review by federal and state tax authorities.

In relation to the German entities, there are various tax inspections ongoing:

•	Event Park, GmbH: Corporate tax, trade tax and withholding taxes and VAT inspections corresponding to the exercises 2013-2016. Wage taxes of the exercises 2014 - 2018 and social security inspection for the exercises 2015-2018.
•	Centaur Holding Germany, GmbH: Corporate tax, trade tax and withholding taxes and VAT inspections corresponding to the exercises 2014-2017.
•	Movie Park Germany, GmbH: Corporate tax, trade tax and withholding taxes and VAT inspections corresponding to the exercises 2014-2017.
•	Movie Park Germany Services, GmbH: Corporate tax, trade tax and withholding taxes and VAT inspections corresponding to the exercises 2014-2017.

Likewise, different limited verifications have been started in Belgium regarding to insurance taxes and gambling that are not finalised and a fiscal inspection related to Corporate Tax and VAT of the exercises 2017 and 2018, also not finalised.

Lastly, in the Netherlands is taking place an inspection of Corporate Tax regarding to the Netherland Tax Group, corresponding to the exercises 2015/2016 and 2016/2017.

Regarding to the rest of the companies of the Group, there are inspections over the exercises stablished by the local jurisdictions.

As a result, among others, of the different possible interpretations of the tax legislation in force in each country where the Group is present, additional liabilities resulting from a review might arise. In any event, the Sole Administrator consider that such liabilities, should they arise, would not affect the consolidated annual accounts in any significant manner.

In accordance with the Corporate Income Tax Law in Spain, and in other countries in which the Group operates, if pursuant to the laws applicable to calculate the taxable base of the companies, this were to be negative, it could be offset against positive income from tax periods ending in subsequent years in accordance with the tax legislation of each country (in the case of Spain, with no time limits). The offset will be made when presenting the Corporate Income Tax return, notwithstanding the powers of review that pertain to the tax authorities.

According to the Corporate Tax declarations presented by the Companies of the Tax Consolidation Group and the estimate of the consolidated tax declaration for the twelve month period ended 31 December 2019, the tax consolidation group in Spain has available consolidated tax loss carry forward pending compensation against possible tax future benefits, amounting to 6,104 thousand Euros. On the other hand, the tax loss carry forward of the companies integrating the tax consolidation group generated before joining the tax consolidation group amount to 46,258 thousand Euros as at 31 December 2019, taking into account the estimate of the tax declaration prepared by the Group (the Company does not produce any of the tax loss carry forward). Detail as follows:

Thousand Euros
Year of origin	Parques de la Naturaleza Selwo, S.L.	Aquopolis Cartaya, S.L.U.
1997	-	-
1998	-	698
1999	-	242
2000	-	267
2001	-	139
2002	-	2
2003	-	380
2005	-	9
2006	662	10
2010	-	-
2011	-	-
2012	-	-
2013	-	-
2014	-	-
2015	-	-
	662	1,747

Thousand Euros
Year of origin	Parque de Atracciones San Fernando de Henares, S.L.U.	Parque de Atracciones Madrid, S.A.U.	Parque Biológico de Madrid, S.A.U.	Total
1997	291	-	-	291
1998	210	-	-	908
1999	149	-	2	393
2000	443	-	13	723
2001	-	-	2,948	3,087
2002	-	-	-	2
2003	16	-	-	396
2005	15	115	-	139
2006	86	29,473	-	30,231
2010	-	-	2,568	2,568
2011	-	-	3,588	3,588
2012	-	-	2,616	2,616
2013	-	-	326	326
2014	-	-	852	852
2015	-	-	138	138
	1,21	29,588	13,051	46,258

During the period ended at 31 December 2019, the Spanish tax group has performed an analysis on the existence of sufficient estimated future tax profits to offset the aforementioned negative taxable bases, as well as other deferred tax assets. Based on this analysis, the Group has recognized deferred tax assets in the consolidated balance sheet as mentioned in paragraph b) of this note.

Regarding tax loss carry forward compensations on the corporate income tax applicable to Spanish companies, the Law 27/2014 of 27 November 2014 establishes an offset limit of 70 % of the previous taxable base and eliminates the 18-year period for offsetting negative taxable bases, making it indefinite for tax periods commencing as of 1 October 2015. In addition, on 2 December 2016 Royal Decree 3/2016 introduces a transitory provision establishing a limit of 25 % on the offset of negative taxable bases for companies with a net business turnover in excess of 60 million.

On its part, the US subgroup at 31 December 2019 has federal and state tax loss carry forwards, broken down as follows:

Thousand Euros				Maturity
Federal		State		Federal	State
Euro	Dollars	Euro	Dollars
204,478	229,334	177,587	199,174	2028	2023

The Group has recorded all of this subgroup's tax credits under deferred tax assets in the consolidated statement of financial position as at 31 December 2019 and 2018, considering that the recovery is probable based on the estimated future taxable income.

As at 31 December 2019, Group companies in France, Denmark, Netherlands, Norway and Italy have the following tax loss carry forwards:

Thousand Euros
France	Denmark	Netherlands	Norway	Italy
35,054	6,124	18,123	25	3,046

As at 31 December 2019, the Group companies in France, Denmark and the Netherlands have not posted tax loss carry forwards relating to their negative taxable bases given that their recoverability, based on future tax projections, is not likely over a reasonable period of time. On their part, the companies of the Group in Italy, Germany and Norway have partially posted tax loss carry forwards relating to negative taxable bases, given that their recoverability, based on future tax projections, is deemed likely.

a) Reconciliation of the accounting result and the taxable base and the Corporate Income Tax expense/(income)

The Corporation Tax of each company included in the consolidation perimeter is calculated based on the economic or accounting result, obtained by the application of accounting principles generally accepted in each country, which does not necessarily coincide with the fiscal result, understood as the taxable basis of the tax. The different dependent foreign companies calculate the expense for corporation tax in accordance with their corresponding legislations and according to the tax rates in force in each country.

The reconciliation of the accounting result and the Corporate Income Tax expense is as follows:

	31.12.2019		31.12.2018
	Thousand Euros	%	Thousand Euros	%
Profit / (loss) before income tax	(380,643)		(58,407)
Tax calculated at the applicable rate in Spain	8,603	(2 %)	14,602	(25 %)
Effect of permanent differences in Spain	(6,979)	2 %	3,197	(5 %)
Effect of tax credits	(585)	0 %	378	(1 %)
Consolidated adjustments and other permanent differences	21,409	(6 %)	(827)	1 %
Expenses at foreign subsidiaries and other adjustments	4,600	(l %)	(4,725)	8 %
Consolidated tax expense	27,048	(7 %)	12,625	(22 %)

Details by geographical area of the expense/income of the corporate tax (current tax and deferred tax), calculated in accordance with the different tax legislation in force in each country, are as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Italy	(15,228)	691
France	(5,575)	(218)
Spain	(3,447)	(8,300)
United States	(10,954)	(4,810)
Norway	674	577
Belgium	828	(64)
Rest of countries	6,654	(501)
	(27,048)	(12,625)

b) Recognised deferred tax assets and liabilities

The movement experienced in the years ended 31 December 2019 and 2018 by the heading "Deferred tax liabilities" of the accompanying consolidated statement of financial position, in which the assets and liabilities for income tax are presented offset deferred, is as follows:

	Thousand Euros
	Deferred tax assets
	31.12.2019	31.12.2018
Opening balance	79,772	70,138
Exchange differences	1,181	585
Capitalisations / (cancellations)	15,020	9,049
Closing balance	95,973	79,772

	Thousand Euros
	Deferred tax liabilities		Total
	31.12.2019	31.12.2018	31.12.2019	31.12.2018
Opening balance	(263,149)	(265,203)	(183,377)	(195,065)
Exchange differences	(1,212)	835	(31)	1,420
Capitalisations / (cancellations)	5,169	1,219	20,189	10,268
Closing balance	(259,192)	(263,149)	(163,219)	(183,377)

i. Deferred tax assets

Details of deferred tax assets (including tax credits) by geographical area at 31 December 2019 and 2018 are as follows:

	Thousands of Euro
	31.12.2019	31.12.2018
United States	67,667	53,327
Spain	25,756	24,313
Germany	460	325
Rest of countries	2,090	1,807
	95,973	79,772

The deferred tax assets mentioned earlier have been recognised in the consolidated balance sheet insofar as the Sole Administrator of the parent Company has considered that, in accordance with the best estimate of the future results of the Group and the individual companies, as the case may be, including certain tax planning actions, the recovery of such assets is deemed likely.

Deferred tax assets are generated, mainly, from tax credits generated by negative taxable bases pending compensation, the tax effect of financial expenses to be deducted in subsequent years, recognised provisions to be deducted in the year in which they are realised, as well as a result of difference that arise from the tax treatment of the amortisation of certain fixed assets. Additionally, deferred tax assets are recorded due to some differences between local accounting and consolidated accounting.

The deferred tax assets corresponding to the US subgroup include, fundamentally, the credits for losses to be compensated of the subgroup, as well as other consolidation differences. In addition, deferred tax assets in Spain include 10 million Euros pertaining to the tax effect of non-deductible financial expenses, 9 million Euros in tax credits from tax loss carry forwards of the dependent companies generated prior their entry in the Spanish tax consolidation group and 1,5 million Euros of tax loss carry forwards generated by the Tax Group, 4 million Euros to asset accounting impairment that have no tax impact and 1,5 million Euros of tax credits for amortisation expenses whose deductibility has been deferred.

ii. Deferred tax liabilities

Detail of deferred tax liabilities by geographical area at 31 December 2019 and 2018 is as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Spain	29,282	34,044
United States	112,562	108,137
Italy	44,239	59,581
Germany	36,359	20,473
France	10,114	15.685
Netherlands	5,588	5,395
Rest of countries	21,048	19,834
	259,192	263,149

As at 31 December 2019, deferred tax liabilities include 55,814 thousand Euros (83,137 thousand Euros at 31 December 2018) due to the tax effect of the merging process of Parque de Atracciones Madrid, S.A.U. and Centaur Spain Bidco, S.L.U. in March 2007. This item also includes 6,926 thousand Euros (7,088 thousand Euros at 31 December 2018) arising from the business combination to acquire Movie Park in Germany in 2010, 4,318 thousand Euros (4,417 thousand Euros at 31 December 2018) derived from the business combination in 2012 for the acquisition of the Dutch park Slagharen, 4,026 thousand Euros derived from the business combination to acquire Event Park GmbH (4,169 thousand Euros at 31 December 2018), 14,263 thousand Euros derived from the business combination described in the note 5 as well as other amounts deriving from business combinations of US subsidiaries and the tax effect of other temporary differences totalling 114,937 thousand Euros due to the valuation of the property, plant and equipment and intangible assets of these companies (110,512 thousand Euros at 31 December 2018).

In addition, deferred tax liabilities include the effect of the difference of 49,323 thousand Euros (47,636 thousand Euros at 31 December 2018) between the consolidated book value and the local book value in the financial statements of certain assets of European Group companies, the useful lives and depreciation or amortisation of which have been harmonised in the consolidation process.

Lastly, adjustments to Spanish income tax bases have been included as a result of various Spanish subsidiaries availing of Royal Decree 3/1993 of 26 February 1993 on accelerated depreciation in 1993 and 1994, other deferred taxes generated as a result of the temporary differences arising from the acquisition of capital goods under finance leases and other taxable temporary differences.

(19) Commitments and Contingencies

As at 31 December 2019, the Group has constituted guarantees in Spain, Italy, Norway, Germany and Australia amounting to 8,750 thousand Euros (9,267 thousand Euros as at 31 December 2018) originated in the contractual collaterals demanded in their normal activity. The Sole Administrator considers no significant liabilities will arise as a result of the abovementioned guarantees.

A summary of the types of guarantee per country, amounts, guarantor and beneficiary at 31 December 2019 and 2018 is provided below:

		Thousand Euros
Type	Country	31.12.2019	31.12.2018	Guarantor	Beneficiary
Arising from park operating agreement	Spain	2,777	2,758	Financial entities	Municipal entities
Social Security	Spain	4	23	Financial entities	Social Security
Counter-guarantees	Spain	6	1,006	Financial entities	Financial entities
Warner theme park licences	Spain	3,861	3,796	Financial entities	Warner Bros
Inherent to activity agreement	Italy	528	528	Financial entities	Several
Taxes	Norway	355	352	Financial entities	Municipal entities
Other	Norway	203	30	Financial entities	Several
Leases	Germany	773	773	Financial entities	Several
Leases	Australia	243	-	Financial entities	Financial entities
		8,750	9,266

In addition, as mentioned in note 14, in order to guarantee fulfilment of the obligations arising from the syndicated loan, the Group has provided guarantees on the stocks and shares of certain Group companies. The Sole Administrator considers that no significant additional liabilities will be generated for the Group as a result of the aforementioned guarantees and sureties.

At 31 December 2019 and 2018, the Group has insurance policies to cover against the risk of damage to material property, loss of profit and civil liability, as well as employee obligations. The insured capital is deemed to be sufficient by the Sole Administrator of the parent Company, is sufficient to cover such assets and risks.

Occasionally, the Group is involved in legal actions regarding complaints arising from transactions in the ordinary course of business. At 31 December 2019 and 2018, there are legal contingencies relating to the Group's participation in certain legal proceedings, the result of which, in the opinion of the Management and legal advisers, individually or as a whole, would not have a significant adverse effect on the consolidated income statement of the Group.

(20) Income and expense

a) Ordinary income

The breakdown of the balance of this heading in the consolidated income statement is as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Tickets	385,351	40,833
Food services	158,295	16,008
Merchandising	41.468	4,486
Games and gaming machines	23,960	3,871
Parking	18,171	2,435
Sale of hotel packages	14,583	1,598
Subconcessions	16,340	2,254
Exclusivity	8,489	272
Events	7,913	1.580
Other income	21,216	3,518
	695,786	76,855

The breakdown of the Group's income, by geographical distribution is as follows:

	Thousand Euros
	31.12.2019	31.12.2018
United States	221,644	23,907
Spain	160,679	22,944
Italy	44,513	3,123
France	25,691	2,198
Norway	22,694	813
Germany	140,023	13,328
Belgium	20,051	2,900
Netherlands	30,129	5,445
Rest of countries	30,361	2,197
	695,786	76,855

b) Cost of goods sold

The breakdown of the balance of this heading in the consolidated income is as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Good and supplies purchased	58,269	5,951
Work carried out by other companies	15,255	1,913
Changes in inventories	4,440	905
	77,964	8,769

c) Other operating expenses

The breakdown of the heading "Other operating expenses" in the consolidated income statement is as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Advertising and propaganda	36,664	5,081
Leases and rental (note 9)	6,542	1.085
Utilities	48,673	7,652
Repairs and conservation	21,413	4,063
Taxes	11,865	2,732
Guarding, cleaning and gardening	15,475	2,187
Independent professional services	20,694	7,742
Insurance premiums	9,954	2,067
Other expenses	94,403	3,997
	265,683	36,606

Other expenses, as at 31 December 2019, includes an expense derived from the termination of the contracts associated with the opening of indoor entertainment centres (lECs) from Lisbon in Portugal, Times Square in the United States, Principe Pio and Nickelodeon Xanadú in Madrid, as a consequence of the revision process of the development strategy of the lECs of the Group, by an amount of 46,574 thousand Euros. Additionally, it mainly includes the provision of an ongoing litigation related to the abovementioned termination of contracts by an amount of 1,840 thousand Euros (see note 16), expenses related to the end of the license of the aquatic park Parque de Atracciones San Fernando de Henares by an amount of 758 thousand Euros and the provision of an ongoing litigation related to the component Leisure Parks amounting to 489 thousand Euros.

Apart from that, this heading includes advise expenses by an amount of 12,739 thousand Euros, related with expansion projects of the Group, as with the Public Stock Offering described in note 1.

Furthermore, the acquisition of Tropical Islands GmbH by Centaur Holding Germany GmbH (note 5) has supposed the accrual of the Real Estate Transfer Tax by an amount of 6,200 million Euros. This indirect tax, non-deductible for the Group, taxes the direct or indirect acquisitions of more than a 95 % of the Share capital of companies with Real Estate assets in Germany, with rates between 3.5 % and 6.5 % over the value of the German Real Estate assets.

Lastly, at 31 December 2019, includes royalties amounting to 16,807 thousand Euros.

d) Financial expenses

A breakdown of this item in the consolidated income statement is as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Interest expenses	71,905	12,438
Interest rate derivative expenses	159	(311)
Change in the fair value of interest rate derivatives	553	25
	72,617	12,152

Financial expenses at 31 December 2019 and 2018 include interest on the syndicated loan liquidated the 16 September 2019 amounting to 27,089 thousand Euros and 6,453 thousand Euros respectively. As a consequence of such liquidation and the formalization of the new syndicated loan (see note 14), it is included in this heading an amount of 9,653 thousand Euros derived from the formalization expenses of the new loan. Also, as at 31 December 2019, there are expenses in this heading arising from interests of the new syndicated loan amounting to 2,599 thousand Euros and the expenses accrued from the credits between Piolin Bidco, S.A.U. with dependent companies by an amount of 8,175 thousand Euros (see note 22 b)). As mentioned in note 9, the financial expense arising from the contracts subject to the IFRS 16 has increased to 15,135 thousand Euros as at 31 December 2019 (2,081 thousand Euros as at 31 December 2018).

e) Foreign currency transactions

The Group's foreign currency transactions, performed in currencies other than the functional currency of each component, are not significant.

(21) Employee remuneration expenses

A breakdown of this item in the consolidated income statement is as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Salaries and wages	176,336	31,663
Social Security	34,321	6,424
Severance pay	4,858	2,584
Other social expenses	4,746	703
	220,261	41.374

a) Employee Information

The average headcount of the Group, distributed by category, is as follows:

	Number
	31.12.2019	31.12.2018
Administrator/Board members	1	-
Senior management personnel	5	7
Management	92	49
Department directors	198	125
Other qualified personnel	154	177
Managers	494	819
Operating personnel	7,350	3,313
Administrative staff	472	389
Maintenance	666	626
Lifeguards and carers	705	1,352
	10,137	6,857

For the fiscal year ended 31 December 2019 and the three-month period ended 31 December 2018, the distribution by gender of personnel and Group Directors is as follows:

	Number
	31.12.2019
	Male	Female	Total
Administrator/Board members	1	-	1
Senior management personnel	6	2	8
Management	72	13	85
Department directors	121	74	195
Other qualified personnel	73	83	156
Managers	259	201	460
Operating personnel	1,551	2,209	3,760
Administrative staff	99	236	335
Maintenance	498	35	533
Lifeguards and carers	181	170	351
	2,861	3,023	5,884

	Number
	31.12.2018
	Male	Female	Total
Administrator/Board members	7	2	9
Senior management personnel	4	3	7
Management	43	14	57
Department directors	78	40	118
Other qualified personnel	116	105	221
Managers	378	242	620
Operating personnel	857	1.441	2,298
Administrative staff	90	211	301
Maintenance	525	63	588
Lifeguards and carers	395	387	782
	2,493	2,508	5,001

For the fiscal year ended 31 December 2019 and the three-month period ended 31 December 2018, the Group employed 58 and 21 persons, respectively, with 33 % disability or more.

b) Employee benefits under defined benefit plans and other employee benefits

(i) Defined benefit plans

The Group currently has defined benefit commitments with certain serving employees in Spain, in the form of retirement benefits and indemnities in the event of death or disability, as set forth in the respective collective labour agreements applicable to the different work centres.

The Group has not recorded any provision or asset deriving from these commitments in its consolidated financial statements as it considers that at 31 December 2019 and 2018, the present value of these defined benefit obligations does not differ significantly from the fair value of the plan assets.

Retirement benefits

The Group has externalised the retirement benefit defined in its collective labour agreements through a collective policy arranged with a financial institution. This obligation comprises an indemnity payable to workers who retire whilst employed at the company.

The obligation has been insured and updated at 31 December 2019 through an insurance policy compliant with the first additional provision of Royal Legislative Decree 1/2002 of 29 November, approving the revised Law on the Regulation of Pension Plans and Funds, and Royal Decree 1588/1999 of 15 October, approving the Regulation on the implementation of companies' pension obligations to employees and beneficiaries.

The main actuarial assumptions used to update the policy for the fiscal year ended 31 December 2019 and the three-month period ended 31 December 2018 were as follows:

―	The cumulative annual salary growth rate is 2 %.
―	The mortality tables used to calculate the defined benefit obligation were PERM/F 2000 New Production.
―	Decrease in workforce due to staff turnover, based on the Group's historical information.
―	The employees to be insured are those who will retire before expiry of the concession in force.

The value or mathematical provision of the policy arranged to insure retirement benefits amounted to 10 thousand Euros for the period ended 31 December 2019 (6 thousand Euros for the three-month period ended 31 December 2018). This amount corresponds mainly to the premium paid to the insurer and its returns.

Obligations in the event of death or disability

The obligations in the event of death or disability have been insured and updated at 31 December 2019 and 2018 through an insurance policy compliant with the first additional provision of Royal Legislative Decree 1/2002 of 29 November, approving the revised Law on the Regulation of Pension Plans and Funds, and Royal Decree 1588/1999 of 15 October, approving the Regulation on the implementation of companies' pension obligations to employees and beneficiaries. The amount of the net premium paid during 2019 is 52 million Euros. The Group did not pay any amount in concept of net premium in the exercise of three months ended at 31 December 2018.

(ii) Defined contribution plans

The Group has arranged a mixed collective insurance policy with an insurance company to finance a defined contribution benefit scheme (savings plan) for a specific group of employees based in Spain, considered as a defined contribution plan.

The Group makes annual contributions in the form of the policy premium payments. The amount of these contributions is determined each year by the Group. During the 12-month period ended 31 December 2019, the Group has paid 18 thousand Euros to the insurance company for this concept (for the three- month period ended 31 December 2018, the Group has not paid any amount to the insurer for this concept).

(iii) Benefits payable to employees in Italy

Pursuant to legislation in force in Italy, employees are entitled to receive an exceptional payment upon leaving the company, voluntarily or otherwise. The projected unit credit method was used to calculate this obligation. Provisions in the accompanying consolidated statement of financial position (see note 16) include a liability accrued for this item at 31 December 2019 and 2018, based on the latest actuarial studies available conducted by an independent expert.

Details of the main assumptions used in this actuarial study, which is the basis for the liability recognised at 31 December 2019 and 2018 are as follows:

•	Discount rate of 4.40 %.
•	Expected annual salary growth rate of 3 %.
•	Expected rate of return on plan assets of 3 %.

(iv) Commitments with employees in the United States

The US subgroup has arranged a programme to cover the employment-related obligations to its employees in connection with healthcare coverage and other items. These commitments are calculated annually in accordance with a study carried out by an independent expert, based on the use of different actuarial methods applied to the historical information of the US subgroup, as well as sector information, "Personnel", under current liabilities and non-current provisions in the accompanying consolidated balance sheet at 31 December 2019 include 4,508 thousand Euros (3,799 thousand Euros at 31 December 2018) and 5,740 thousand Euros (5,295 thousand Euros at 31 December 2018), respectively, in connection with this subgroup's obligations in this connection.

c) Long-term incentive plan

In April 2016, prior to the Initial Public Offer, the Offer for Sale and the Admission to Trading (see note 1), the Sole Shareholder at that date, Centaur Nederland, B.V., approved, for several Senior Executives of the Group and Board Directors of the Parent Company, the implementation of a 2016-2020 long term incentive plan payable by way of Parent Company shares.

This Plan consisted of two share delivery cycles, each with a measurement period of three years. At the start of each cycle, a number of shares was allocated to each beneficiary on the basis of his salary level, as well as the estimated compliance with conditions of permanence and estimated degree of achievement of certain financial targets. The first cycle (Cycle 2016/2019) began on 1 May 2016 (valuation date) and the second cycle (Cycle 2017/2020) began on 1 January 2017 and was supposed to end 31 December 2019.

For the 2016/2019 Cycle, the Group has estimated a 100 % compliance with the terms and conditions and, at the valuation date, it estimated that a total of 204,573 shares, with a weighted average fair value of 14,75 Euros per share, to be delivered to Board Directors and executives. This fair value was determined on the basis of the trading price of the Company shares on the valuation date. During the present exercise ended 31 December 2019, the Company re-estimated compliance with the terms and conditions for both cycles, resulting in 0 % compliance for employees and management subjected to the Plan (0 % compliance as at 31 December 2018). For some Board Directors who benefit from the restricted stock unit's incentive, the compliance is a 100 % given that their objectives are not subject to a degree of compliance but to the mere acceptance of the position as Board Director.

With the expiration of the fist cycle, the corresponding part of the former Administrators has been liquidated, resulting in a total of 58,345 shares, of which 39,139 have been paid in cash and 19,152 have been transmitted to the beneficiaries. At 31 December 2019, the Group has recognized 125 thousand Euros (94 thousand Euros as at 31 December 2018) in relation to the first and second cycle of the long term Incentives Plan, recognizing in the moment of the liquidation an excess of the provision amounting 114 thousand euros, recognized under personnel expenses in the profit and loss account.

On 26 February 2019, the Board of Directors approved a new long-term incentives plan directed to different executives of the Group and the new Chief Executive Officer. This plan stablishes a period of accrual that ends on 31 December 2020 and a period of 4 years starting on the final accrual date, meaning until 31 December 2024.

In the context of the Initial Public Offering for shares acquisition of the Parent Company, the liquidation of the Company has activated the clauses of change of control of the plan, resulting in the anticipated accrual of the second cycle of the 2016 plan, which the Group estimated a 0 % of fulfilment, as the approved plan in February 2019.

In relation with the Initial Public Offering for shares acquisition described in note 1, the participants of the Incentives Plan developed by the Group in February 2019 have received the amount of 1,455 thousand Euros, based on the approbation by the Appointments and Remunerations Committee of the Company on 22 May 2019, in cash, as explained in the heading of personnel expenses.

(22) Related Party Balances and Transactions

a) Related party balances and transactions

The balances and transactions with related parties of the 12-month period ended 31 December 2019 and the three-month period ended 31 December 2018 referring to the remuneration paid to Group Board Directors and senior management personnel and also the transactions and balances with Piolin Bidco, S.A.U., major shareholder of the Parent Company.

b) Balances and transactions with Piolin Bidco, S.A.U.

As a consequence of the acquisition of the Group by Piolin Bidco S.A.U. and the liquidation of the syndicated loan maintained by the Parent Company described in note 14, the following intercompany balances have arisen between the Parent Company and Piolin Bidco, S.A.U. Also, Piolin Bidco, S.A.U. has liquidated the bank loan that the company Parque Biológico de Madrid, S.A. maintained.

A detail of the intercompany balances balances that these companies maintain with Piolin Bidc, S.A.U are shown below:

Group Companies	Original currency	Interest rate	Initial date
Parques Reunidos Servicios Centrales, S.A.	Euros	Euribor+3,75 %	September 2019
Parques Reunidos Servicios Centrales, S.A.	Euros	Euribor+3,50 %	September 2019
Parques Reunidos Servicios Centrales, S.A.	Euros	Euribor +3.50 %	October 2019
Parque Biológico de Madrid, S.A.	Euros	Euribor+3,75 %	October 2019

Group Companies	Maturity date	Nominal value	Non-current	Current
Parques Reunidos Servicios Centrales, S.A.	September 2026	579,763	579,763	5,134
Parques Reunidos Servicios Centrales, S.A.	March 2026	41,758	-	33,719
Parques Reunidos Servicios Centrales, S.A.	March 2026	32,100	-	32,359
Parque Biológico de Madrid, S.A.	September 2026	4,216	4,216	34
			583,979	71,246

On 16 September 2019, after obtaining the control of Parques Reunidos, Piolin Bidco prepaid the outstanding balances corresponding to the syndicated loan and Revolving Credit facility that the Parent Company and Festival Fun Parks maintained, with the funds raised with the formalization of the new debt. The Group companies have formalized credits with Piolin Bidco, S.A.U. with the same conditions as the debt received by Piolin Bidco.

On 7 October 2019, the credit formalised with Festival Fun Parks, LLC have been cancelled anticipatedly after converting Festival Fun Parks as an additional Lender to the Senior Facilities Agreement of 3 September 2019.

c) Information on Board Directors of the Parent Company and Senior Executive personnel

The remuneration received by the directors as members of the Parent's board of directors, including those who are also members of senior management during the fiscal year ended 31 December 2019 and the three-month period ended 31 December 2018, is as follows:

	Thousands of Euro
	31.12.2019	31.12.2018
Fixed remuneration	1,667	442
Variable remuneration	-	72
Compensation	-	750
Other	1,864	127
	3,531	1,391

In relation to the previous remuneration, 1,429 and 1,148 thousand Euros for the fiscal year ended 31 December 2019 and the three-month period ended 31 December 2018, respectively, correspond to those received by members of Senior Management.

The remuneration received for the period ended 31 December 2019 and 2018, by members of senior management (other than those who are also members of the board of directors, whose remuneration was indicated above), was as follows:

	Thousand Euros
	31.12.2019	31.12.2018
Salaries and wages	1,548	569
Compensation	53	514
Insurance premiums	1	3
Other	394	-
	1,996	1,086

At 31 December 2019 and 2018, the Company has no balances payable to Senior Management neither to former Administrators and has not extended any advances to the Board Directors or senior management personnel and had no pension fund, life insurance or other such commitments with these parties, except for the defined contribution plans for senior management detailed in note 21. The amount of the corporate civil insurance premium of the former Administrators and high executives paid by the Company has amounted to 88 and 15 thousand Euros for the fiscal year ended on 31 December 2019 and the three-month period ended on 31 December 2018, respectively.

At 29 October 2019, the extraordinary shareholders general meeting of the Parent Company commissioned as Sole Administrator the Company Piolin Bidco, S.A.U., determining the remuneration of the position as free, subject all of the above to the effective delisting of the shares in the Stock Exchange that happened on 5 December 2019.

d) Transactions other than ordinary business or under terms differing from market conditions carried out by the previous Board Directors of the Parent and their related parties

During the fiscal year ended 31 December 2019 and the three-month period ended 31 December 2018, the previous Board Directors of the Parent Company and their related parties did not carry out any transactions other than ordinary business with the Group or applying terms that differ from market conditions.

e) Conflicts of interest concerning the former Board Directors

The previous Board Directors of the Company and their related parties have had no conflicts of interest requiring disclosure in accordance with article 229 of the Revised Spanish Companies Act.

(23) Risk policy and management

Management of the risks to which the Group is exposed in the performance of its activities is one of the basic pillars of its effort to preserve the value of its assets and, consequently, the value of shareholders' investment. The risk management system is structured and defined for the achievement of the strategic and operational objectives of the Group.

The management of the Group's financial risk is centralised in the Corporate Financial Department. This Department has established the necessary mechanisms to control, according to the structure and financial position of the Group and the economic variables of the environment, the exposure to the changes in interest and currency rates, as well as the risks of credit and liquidity by resorting, if necessary, to occasional hedge transactions and establishing, if deemed necessary, the pertaining credit limits and establishing policies for the provision of credit insolvencies. The following describes the principal financial risks and the corresponding Group policies:

Foreign exchange risk

The Group is exposed to very limited exchange rate fluctuations since practically all of the transactions of the Group companies are made in their functional currencies. The Group's presentation currency is the euro, but some of the subsidiaries use other currencies, namely the US dollar, the Danish krone, the Norwegian krone, and the British pound.

For the ended 31 December 2019, 61 % of revenues were generated in Euro and 32 % in US dollars (65 % and 31 %, respectively, for the three-month period ended 31 December 2018). As a consequence of foreign currency exchange rate fluctuations, the Group's financial statements are subject to fluctuations arising from the process of translating financial information into currencies other than the euro.

The following table shows the impact that a movement of 5 %-10 % in US dollar value would have had on the consolidated P&L of the year:

	Million Euros
	Result - (Expense) / Income
	31.12.2019	31.12.2018
Appreciation of 5 %	(5,3)	(0.8)
As % of consolidated result for the year	1,5 %	1.9 %
Devaluation of 5 %	4,8	0.8
As % of consolidated result for the year	(1,4 %)	(1.7 %)
Appreciation of 10 %	(11,3)	(1.8)
As % of consolidated result for the year	3,2 %	4.1 %
Devaluation of 10 %	9,2	1.5
As % of consolidated result for the year	(2,6 %)	(3.3 %)

Credit risk

The main financial assets of the Group are cash and cash equivalents as well as trade and non-trade debtor. Generally, the Group deposits its cash and cash equivalents with a highly rated entity.

The Group does not have a significant concentration of credit risk with third parties since most of its revenue is paid in cash and the risk is distributed among a large number of customers with short collection periods. The Group monitors the balances receivable from and payable to these debtors in order to control the net position risk and to adopt suitable measures to prevent undesirable situations arising.

Details of the estimated maturities of the Group's financial assets reflected in the consolidated statements of financial position at 31 December 2019 and 2018. The accompanying tables reflect the analysis of the maturities of financial assets at 31 December 2019 and 2018, was as follows:

	31.12.2019
	Thousand Euros
	Less than 3 months	More than 6 months and less than 1 year	More than 1 year	Total
Non-current deposits and guarantees arranged	-	-	1,126	1,126
Trade debtors and other accounts receivable	18,862	-	-	18,862
	18,862	-	1,126	19,988

	31.12.2018
	Thousand Euros
	Less than 3 months	More than 6 months and less than 1 year	More than 1 year	Total
Non-current deposits and guarantees arranged	-	-	1,296	1,296
Trade debtors and other accounts receivable	24,378	-	-	24,378
	24,378	-	1,296	25,674

Liquidity risk

The various acquisitions that have taken place in recent years have been carried out through appropriate financing structures. However, these structures lead to the fulfilment of certain commitments with financial institutions that facilitate such financing, so monitoring compliance with them is a very important task.

The Corporate Financial Department performs a detailed monitoring of compliance with these commitments, in order to detect any potential risk of default thereof well in advance. In the event of such a risk being detected, the General Management is notified so that the appropriate decisions to correct the situation may be taken. As of 31 December 2019, and 2018, the Group has not identified any breach of the financial ratios committed with the financial entities with which the loans have been subscribed.

The exposure to adverse situations in the debt or capital markets may hinder or prevent the procurement of the financing required by the Group to adequately conduct its business activities and implement its strategic plan.

The Group's exposure to liquidity risk at 31 December 2019 and 2018 is shown below. These tables present an analysis of financial liabilities (including interest payable in the future) by remaining contractual maturity dates.

	31.12.2019
	Thousand Euros
	Less than 1 month	From 2 to 3 months
Financial liabilities with credit institutions
Syndicated loan at floating interest rate	-	-
Revolving credit facility	-	-
Other loans at floating interest rate	-	-
Other loans at fixed interest rate	-	-
Financial lease creditors	-	-
Trade creditors and other accounts payable	-	61,126
	-	61,126

	31.12.2019
	Thousand Euros
	From 4 months to 1 year	From 2 to 5 years	More than 5 years	Total
Financial liabilities with credit institutions
Syndicated loan at floating interest rate	10,198	40,709	284,882	335,789
Revolving credit facility	-	28,574	-	28,574
Other loans at floating interest rate	-	-	-	-
Other loans at fixed interest rate		-	-	-
Financial lease creditors	17,725	73,870	396,152	487,747
Trade creditors and other accounts payable	-	-	-	61,126
	27,923	143,153	681,034	913,236

	31.12.2018
	Thousand Euros
	Less than 1 month	From 2 to 3 months	From 4 months to 1 year
Financial liabilities with credit institutions
Syndicated loan at floating interest rate	-	-	38,291
Revolving credit facility
Other loans at floating interest rate	-	-	1,181
Other loans at fixed interest rate	-	-	1,160
Financial lease creditors	-	-	20,514
Trade creditors and other accounts payable	-	43,531	-
	-	43,531	61,146

	31.12.2018
	Thousand Euros
	From 2 to 5 years	More than five years	Total
Financial liabilities with credit institutions
Syndicated loan at floating interest rate	570,009	-	608,300
Revolving credit facility	6,738		63,738
Other loans at floating interest rate	3,543	-	4,724
Other loans at fixed interest rate	4,469	2,914	8,543
Financial lease creditors	100,525	481,388	602,427
Trade creditors and other accounts payable	-	-	43,531
	742,284	484,302	1,331,263

Also, as detailed in note 14 of this report, the Group has credit lines that are not available for a significant amount. Therefore, the Group considers that the liquidity risk is adequately managed as of 31 December 2019.

Interest rate risk

The Group's financial assets and liabilities are exposed to interest rate fluctuations which could have an adverse effect on its results and cash flow.

In accordance with the reporting requirements of IFRS 7, the Group has performed sensitivity analysis on the possible interest rate fluctuations that might occur in the markets in which it operates. Based on such requirements, the Group estimates that an increase of 0,50 points in the reference interest rates of the syndicated loan would imply an increase in the financial expenses thereof of 328 thousand Euros for the fiscal year ended 31 December 2019 (841 thousand Euros on the three-month period ended 31 December 2018).

Operating risk - Brexit

Following the outcome of the referendum in the United Kingdom in favour of its exit from the European Union (Brexit) which final terms are pending of negotiation between the British Government and the European Union, the Group has analysed the possible impact that this situation could have on its results and has concluded that this will not be significant since the weight of the income in the total of the Group does not exceed 2 %. In addition, from the operational point of view, the number of visitors should not be affected in a relevant way since these, fundamentally, are made up of residents of the country.

(24) Audit Fees

KPMG Auditores, S.L., and other related companies as defined in the fourteenth additional provision of legislation governing the reform of the financial system, rendered professional services to the Group during the fiscal ayer ended 31 December 2019 and the three-month period ended 31 December 2018, the fees and expenses for which are as follows:

	31.12.2019
	Thousand Euros
	KPMG Auditores, S.L.	Other entities affiliated with KPMG International	Other auditors	Total
Audit and other assurance services	256	687	82	1,025
Other services	102	81	-	183
	358	768	82	1,208

	31.12.2018
	Thousand Euros
	KPMG Auditores, S.L.	Other entities affiliated with KPMG International	Other auditors	Total
Audit and other assurance services	228	373	43	644
Other services	-	15	-	15
	228	388	43	659

Other services include primarily, limited revision services for the interim consolidated financial statements at 30 June 2019, external verification service of the Non-financial Information Report included in the consolidated management report, mandatory based on Law 11/2018, of 28 December, in non-financial, diversity and other procedures information matters agreed to be performed by an external auditor.

Other services correspond, in the three-month period ended 31 December 2018, to the external verification service of the Non-Financial Information Report included in the consolidated management report of the Group, as required by the Law 11/2018, of 28 December, regarding non-financial information and diversity.

The amounts detailed in the above table include the total fees for the fiscal year ended 31 December 2019 and the three-month period ended 31 December 2018, irrespective of the date of invoice.

(25) Subsequent Events

On 3 February 2020, José Diaz, Chief Executive Officer (CEO) of the Group as 31 December 2019, has announced his resignation. The 24 February 2020, the Board of Directors of the Group has named Jesús Fernandez (previous Chief Operation Officer (COO)) as the new CEO.

On the other hand, at 11 March of 2020, the World Health Organization declared the COVID-19 outbreak as a pandemic, based on the fast-worldwide propagation, affecting in more than 150 countries. In Spain, the Government adopted the Royal Decree 463/2020, of 14 March, declaring the alarm estate for the management of the health crisis originated by the COVID-19, which had an initial duration of 15 days, and was extended until the 7 June. Similar measures have been declared in the countries where the Group operates (Europe, United States of America and Australia), where the governments are taking restrictive measures to contain the propagation, including: quarantine, confinement and outdoors movement restrictions, closure of public and private establishments, except those of basic necessity and health related, closure of borders and drastic decrease of air, sea and land transport.

This situation is significantly affecting the world economy, due to the measures approved to contain the propagation, interruption or slowdown of supply chains, suspension of some economic activities and the significant increase of economic uncertainty, evidenced in the volatility increase in asset prices, exchange rates and decrease in long term interest rates. To mitigate the economic impacts of this crisis, on Wednesday 13th of march, in Spain was published the Royal Decree-Law 7/2020, of 12th March, adopting urgent measures to answer to the economic and social impact of COVID-19, and later, on 18th of March, was published the Royal Decree-Law 8/2020 of 17th March, of urgent and extraordinary measures to confront the economic and social impact of COVID-19.

The consequences derived from COVID-19 are considered a subsequent event that does not require an adjustment to the financial statements of the year 2019, without prejudice to being an adjustment on the financial statements of year 2020.

At the date of formulation of these financial statements is not possible to measure the present and future impact derived from this crisis to the Group, the consequences until this date have been the following:

―	The Group had to stop his activity worldwide and every park and entertainment centre of the Group (in Spain, Europe, USA and Australia) are closed to the public, with the exception of the German park Weltvogelpark Walsrode, which opened the 15th of May.
―	Management of every park has been forced to adopt employment measures that derived, in several cases, in temporal suspension of the majority of the workforce contracts of their respective parks.

The uncertainty regarding the duration of the restrictive measures imposed by governments, joined with the stationarity of the Group's activity (which main volume of operations occurs during summer months), and the unpredictable social and cultural impact that this crisis and his effects will have on the Group's activity, makes the estimation of the impacts that will be derived from this situation difficult. In any case, the Group is taking all the measures (financial, legal, labour and operative) at his reach to reduce the Group expenses to the minimum, ensure the liquidity and minimize the impact of the losses that will be generated because of this crisis. Until this date, the Group has met all of his financial and operative payments.

In this sense the Group has formalized additional credit lines amounting 235,000 thousand Euros, consisting at 13 May 2020 in an increase of the syndicated loan by an amount of 200,000 thousand Euros, maturing September 2026 and an additional 35,000 thousand Euros in credit facilities subscribed with different financial institutions, maturing April 2023.

The Group will evaluate during year 2020 the impact of the event beforementioned and those that could produce in the future affecting the equity and financial situation as of 31 December 2020, and the results and cash flows of the year ended on the beforementioned date.

Details of Subsidiaries at 31 December 2019


Name	Registered Office	Auditor	Activity	Percentage ownership ⁽¹⁾
Parque de Atracciones Madrid, S.A.U.	⁽²⁾	KPMG	Amusement park	100 %
Zoos Ibéricos, S.A.	⁽²⁾	KPMG	Zoo	100 %
Leisure Parks, S.A.	⁽³⁾	KPMG	Amusement park	99,25 %
Parques de la Naturaleza Selwo, S.L.	⁽³⁾	KPMG	Amusement park	100 %
Aquopolis Cartaya, S.L.U.	⁽³⁾	Non-audited	Aquatic park	100 %
Parque de Atracciones San Fernando de Henares, S.L.U.	⁽³⁾	Non-audited	Aquatic park	100 %
Madrid Theme Park Management, S.L.U.	⁽³⁾	KPMG	Amusement park	100 %
Travelpark Viajes, S.L.U.	⁽³⁾	Non-audited	Bookings	100 %
Parque Biológico de Madrid, S.A.U.	⁽³⁾	Non-audited	Amusement park	100 %
Parques Reunidos Valencia, S.A. en liquidatión	Valencia	KPMG	In liquidation	100 %
Gestión Parque de Animales Madrid, S.L.U.	⁽³⁾	KPMG	Faunia management	100 %
Mall Entertainment Centre Murcia, S.L.U.	⁽³⁾	Non-audited	Amusement park	100 %
Mall Entertainment Centre Acuario Arroyomolinos, S.L.U.	⁽³⁾	Non-audited	Aquarium	100 %
Mall Entertainment Centre Temático Arroyomolinos, S.L.U.	⁽³⁾	Non-audited	Amusement park	100 %
Indoor Entertainment Centre Príncipe Pío, S.L.U.	Madrid	Non-audited	Without activity	100 %
Parques Reunidos Atlántica, S.L.U.	Madrid	Non-audited	Without activity	100 %
Lisbon Theme Mall Entertainment Centre, Unipessoal, LDA.	Portugal	Non-audited	Without activity	100 %
Bobbejaanland B.V.B.A.	Belgium	KPMG	Amusement park	100 %
Travel parks B.V.B.A.	Belgium	Non-audited	Bookings	100 %
BO Sommarland AS	Norway	KPMG	Aquatic park	100 %
Tusenfryd AS	Norway	KPMG	Amusement park	100 %
Parkferie AS	Norway	Non-audited	Bookings	100 %
Centaur Holding France 1 S.A.	France	Non-audited	Holding company	100 %
Centaur Holding France 2 S.A.	France	Non-audited	Holding company	100 %
Delphinus S.A.	France	Non-audited	Holding company	100 %
Marineland S.A.S.	France	KPMG	Marine park	100 %
SCI Col Vert	France	Non-audited	Land owner	100 %
LB Investissement S.A.	France	KPMG	Aquatic park	100 %
Travel parks S.A.S.	France	Non-audited	Bookings	100 %
Marineland Resort, S.A.S.	France	Non-audited	Hotel management	100 %
Centaur Holding Italy S.r.l.	Italy	Non-audited	Holding company	100 %

	Thousand Euros
Name	Assets	Liabilities	Equity	Net Result
Parque de Atracciones Madrid, S.A.U.	1,511,229	1,923,152	(411,923)	(26,990)
Zoos Ibéricos, S.A.	68,035	5,414	62,621	134
Leisure Parks, S.A.	96,304	22,220	74,084	(1,524)
Parques de la Naturaleza Selwo, S.L.	11.846	29,662	(17,816)	(106)
Aquopolis Cartaya, S.L.U.	2,203	851	1,352	(97)
Parque de Atracciones San Fernando de Henares, S.L.U.	1,690	3,367	(1,677)	(179)
Madrid Theme Park Management, S.L.U.	133,178	81,964	51,214	(775)
Travelpark Viajes, S.L.U.	3,089	1,694	1,395	23
Parque Biológico de Madrid, S.A.U.	14,560	5,144	9,416	(5)
Parques Reunidos Valencia, S.A. en liquidatión	3,130	42	3,088	(23)
Gestión Parque de Animales Madrid, S.L.U.	8,615	7,291	1,324	(387)
Mall Entertainment Centre Murcia, S.L.U.	2,460	9,256	(6,796)	(5,766)
Mall Entertainment Centre Acuario Arroyomolinos, S.L.U.	21,517	21,831	(314)	(228)
Mall Entertainment Centre Temático Arroyomolinos, S.L.U.	14,532	14,622	(90)	(148)
Indoor Entertainment Centre Príncipe Pío, S.L.U.	600	531	69	(1)
Parques Reunidos Atlántica, S.L.U.	3	2	1	-
Lisbon Theme Mall Entertainment Centre, Unipessoal, LDA.	4,109	4,074	35	(8)
Bobbejaanland B.V.B.A.	202,673	104,950	97,723	(629)
Travel parks B.V.B.A.	35	4	31	(3)
BO Sommarland AS	3,777	2,056	1,721	(292)
Tusenfryd AS	32,373	29,817	2,556	(2,446)
Parkferie AS	45	35	10	(2)
Centaur Holding France 1 S.A.	176,558	102,445	74,113	(682)
Centaur Holding France 2 S.A.	131,790	125	131,665	(11)
Delphinus S.A.	26,731	5,667	21,064	(11)
Marineland S.A.S.	51,989	28,662	23,327	(4,148)
SCI Col Vert	2,690	2,688	2	1
LB Investissement S.A.	2,325	4,115	(1,790)	(394)
Travel parks S.A.S.	113	1.066	(953)	(23)
Marineland Resort, S.A.S.	10,317	8,337	1,980	(354)
Centaur Holding Italy S.r.l.	156,490	65,337	91,153	(619)

Details of Subsidiaries at 31 December 2019


Name	Registered Office	Auditor	Activity	Percentage ownership ⁽¹⁾
Parco della Standiana S.r.l.	Italy	KPMG ⁽⁸⁾	Amusement park	100 %
Travelmix S.r.l.	Italy	KPMG ⁽⁸⁾	Bookings	100 %
Travelparks Italy S.r.l.	Italy	Non-audited	Bookings	100 %
Grant Leisure Group Limited	United Kingdom	KPMG	Zoo	100 %
Real Live Leisure Company Limited	United Kingdom	KPMG	Aquarium	100 %
Lakeside Mall Entertainment Centre Limited	United Kingdom	KPMG	Without activity	100 %
Bon-Bon Land A/S	Denmark	KPMG	Amusement park	100 %
Centaur Holding Denmark A/S	Denmark	Non-audited	Holding company	100 %
BonBon Rejser Danmark A/S	Denmark	Non-audited	Bookings	100 %
Centaur Nederland 2 B.V.	Netherlands	Non-audited	Holding company	100 %
Centaur Holding Germany, GmbH.	Germany	Non-audited	Holding company	100 %
Movie Park Germany GmbH	Germany	KPMG	Amusement park	100 %
Movie Park Germany Services GmbH.	Germany	Non-audited	Bookings	100 %
Event Park GmbH	Germany	BDO	Amusement park	100 %
Nature Park Germany GmbH	Germany	Non-audited	Without activity	100 %
Centaur Nederland 3.B.V.	Netherlands	Non-audited	Holding company	100 %
Pleasantville, B.V y sociedades dependientes ⁽⁴⁾	Netherlands	BDO	⁽⁵⁾	100 %
Centaur Holding US Inc. y sociedades dependientes ⁽⁶⁾	United States of America	KPMG	⁽⁷⁾	100 %

	Thousand Euros
Name	Assets	Name	Registered Office	Auditor
Parco della Standiana S.r.l.	96,984	23,453	73,531	(2,228)
Travelmix S.r.l.	1,168	740	428	(109)
Travelparks Italy S.r.l.	129	16	113	9
Grant Leisure Group Limited	14,918	2,502	12,416	(5)
Real Live Leisure Company Limited	5,535	976	4,559	(203)
Lakeside Mall Entertainment Centre Limited	5,432	5,452	(20)	(17)
Bon-Bon Land A/S	16,812	1,464	15,348	(732)
Centaur Holding Denmark A/S	34,299	107	34,192	(4)
BonBon Rejser Danmark A/S	96	13	83	(5)
Centaur Nederland 2 B.V.	349,050	136,130	212,920	(548)
Centaur Holding Germany, GmbH.	35,742	40.698	(4.956)	(1,451)
Movie Park Germany GmbH	31,334	15,863	15,471	2,047
Movie Park Germany Services GmbH.	484	433	51	-
Event Park GmbH	12,087	7,307	4,780	(452)
Nature Park Germany GmbH	29	1	28	-
Centaur Nederland 3.B.V.	302,146	298	301,848	(6)
Pleasantville, B.V y sociedades dependientes ⁽⁴⁾	42,572	35,386	7,186	(1,164)
Centaur Holding US Inc. y sociedades dependientes ⁽⁶⁾	730,014	512,847	217,167	(17,222)

⁽¹⁾ Only Parque de Atracciones Madrid, S.A.U., Centaur Nederland 3 B.V., and Marineland Resorts, S.A.S, are direct subsidiaries of the Company, For the rest of the Group companies, the percentage ownership shown reflects indirect ownership.
⁽²⁾ Casa de Campo s/n, Madrid.
⁽³⁾ During 2017, there was a change in the registered office to Paseo de la Castellana 216, planta 16, 28046, Madrid.
⁽⁴⁾ This line includes the figures reflecting the assets, liabilities, equity and profit or loss of the consolidated subgroup formed by Pleasantville, B.V., Bembom Brothers Beheer B.V., Attractie-en Vakantiepark Slagharen B.V., (previously called Shetland Ponypark Slagharen B.V.), Wigwam Wereld Slagharen B.V., Bembom Rides B.V. y Horeca Exploittatie Slagharen, B.V.
⁽⁵⁾ Equity investment management firms and operators of a theme park.
⁽⁶⁾ Includes the figures reflecting the assets, liabilities, equity and profit or loss of the consolidated subgroup of Centaur Holding II United States, Inc., Centaur Holding United States, Inc., Palace Entertainment Holdings, LLC., Palace Entertainment Holdings Corporation, Festival Fun Parks, LLC, Palace Entertainment Management, Llc, DD Pacific Investors, Llc., SLP Services, Llc., DD Parks, Llc., Oahu Entertainment Parks, LP, Attractions Hawaii, LP, Splish Splash Beverage, Llc., Wonderland Hotel, Llc., Wonderland Reality, Llc. and Wet'n'Wild Sydney Pty Ltd .
⁽⁷⁾ Equity investment management firms and operators of theme parks, water parks, zoos and nature parks, and family entertainment centres.
⁽⁸⁾ The legal audit is carried out by a local audit firm.
⁽⁹⁾ Includes the figures for assets, liabilities, equity and results of the consolidated subgroup of the companies Tropical Island Holding Gmbh, Tropical Island Management Gmbh, Tropical Island Asset Management Gmbh, TI Hotel Asset Gmbh, TI Property Gmbh, TI Hospitality Gmbh and Energieversorgung BRAND Gmbh

Segment Reporting at 31 December 2018


Name	Registered office	Auditor	Activity	Percentage ownership ⁽¹⁾
Parque de Atracciones Madrid, S.A.U.	⁽²⁾	KPMG	Amusement park	100 %
Zoos Ibéricos, S.A.	⁽²⁾	KPMG	Zoo	100 %
Leisure Parks, S.A.	⁽³⁾	KPMG	Water parks and cable cars	99,25 %
Parques de la Naturaleza Selwo, S.L.	⁽³⁾	KPMG	Nature parks, botanical gardens and zoos	100 %
Aquopolis Cartaya, S.L.U.	⁽³⁾	Unaudited	Water park	100 %
Parque de Atracciones San Fernando de Henares, S.L.U.	⁽³⁾	Unaudited	Water park	100 %
Madrid Theme Park Management, S.L.U.	⁽³⁾	KPMG	Amusement park	100 %
Travelpark Viajes, S.L.U.	⁽³⁾	Unaudited	Bookings	100 %
Parque Biológico de Madrid, S.A.U.	⁽³⁾	Unaudited	Nature parks, botanical gardens and zoos	100 %
Parques Reunidos Valencia, S.A. en liquidación	Valencia	KPMG	In liquidation	100 %
Gestión Parque de Animales Madrid, S.L.U.	⁽³⁾	KPMG	Management of Faunia	100 %
Mall Entertainment Centre Murcia, S.L.U.	⁽³⁾	Unaudited	Theme park	100 %
Mall Entertainment Centre Acuario Arroyomolinos, S.L.U.	⁽³⁾	Unaudited	Aquarium	100 %
Mall Entertainment Centre Tematico Arroyomolinos, S.L.U.	⁽³⁾	Unaudited	Theme Park	100 %
Indoor Entertainment Centre Principe Pio, S.L.U.	Madrid	Unaudited	Without activity	100 %
Parques Reunidos Atlantica, S.L.U.	Madrid	Unaudited	Without activity	100 %
Lisbon Theme Mall Entertainment Centre, Unipessoal, LDA.	Portugal	Unaudited	Without activity	100 %
Bobbejaanland B.V.B.A.	Belgium	KPMG	Amusement park	100 %
Travel parks B.V.B.A.	Belgium	Unaudited	Bookings	100 %
BO Sommarland AS	Norway	KPMG	Water park	100 %
Tusenfryd AS	Norway	KPMG	Amusement park	100 %
Parkferie AS	Norway	Unaudited	Bookings	100 %
Centaur Holding France 1 S.A.	France	Unaudited	Holding company	100 %
Centaur Holding France 2 S.A.	France	Unaudited	Holding company	100 %
Delphinus S.A.	France	Unaudited	Holding company	100 %
Marineland S.A.S.	France	KPMG	Marine park	100 %
SCI Col Vert	France	Unaudited	Land owner	100 %
LB Investissement S.A.	France	KPMG	Water park	100 %
Travel parks S.A.S.	France	Unaudited	Bookings	100 %
Marineland Resort, S.A.S.	France	Unaudited	Hotel management	100 %
Centaur Holding Italy S.r.l.	Italy	Unaudited	Holding company	100 %

	Thousands of Euro
Name	Assets	Liabilities	Equity	Profit/(loss)
Parque de Atracciones Madrid, S.A.U.	1,511,229	1,923,152	(411,923)	(26,990)
Zoos Ibéricos, S.A.	68,035	5,414	62,621	134
Leisure Parks, S.A.	96,304	22,220	74,084	(1,524)
Parques de la Naturaleza Selwo, S.L.	11,846	29,662	(17,816)	(106)
Aquopolis Cartaya, S.L.U.	2,203	851	1,352	(97)
Parque de Atracciones San Fernando de Henares, S.L.U.	1,690	3,367	(1,677)	(179)
Madrid Theme Park Management, S.L.U.	133,178	81,964	51.214	(775)
Travelpark Viajes, S.L.U.	3.089	1,694	1,395	23
Parque Biológico de Madrid, S.A.U.	14,560	5,144	9,416	(5)
Parques Reunidos Valencia, S.A. en liquidación	3,130	42	3,088	(23)
Gestión Parque de Animales Madrid, S.L.U.	8.615	7,291	1,324	(387)
Mall Entertainment Centre Murcia, S.L.U.	2,460	9,256	(6,796)	(5,766)
Mall Entertainment Centre Acuario Arroyomolinos, S.L.U.	21,517	21,831	(314)	(228)
Mall Entertainment Centre Tematico Arroyomolinos, S.L.U.	14,532	14,622	(90)	(148)
Indoor Entertainment Centre Principe Pio, S.L.U.	600	531	69	(1)
Parques Reunidos Atlantica, S.L.U.	3	2	1	-
Lisbon Theme Mall Entertainment Centre, Unipessoal, LDA.	4,109	4,074	35	(8)
Bobbejaanland B.V.B.A.	202,673	104,950	97,723	(629)
Travel parks B.V.B.A.	35	4	31	(3)
BO Sommarland AS	3,777	2,056	1,721	(292)
Tusenfryd AS	32.373	29,817	2,556	(2,446)
Parkferie AS	45	35	10	(2)
Centaur Holding France 1 S.A.	176,558	102.445	74,113	(682)
Centaur Holding France 2 S.A.	131,790	125	131,665	(11)
Delphinus S.A.	26.731	5,667	21,064	(11)
Marineland S.A.S.	51,989	28,662	23,327	(4,148)
SCI Col Vert	2,690	2,688	2	1
LB Investissement S.A.	2,325	4,115	(1,790)	(394)
Travel parks S.A.S.	113	1,066	(953)	(23)
Marineland Resort, S.A.S.	10,317	8,337	1,980	(354)
Centaur Holding Italy S.r.l.	156,490	65,337	91,153	(619)

Details of Subsidiaries 31 December 2018


Name	Registered office	Auditor	Activity	Percentage ownership ⁽¹⁾
Parco della Standiana S.r.l.	Italy	KPMG ⁽⁸⁾	Amusement park	100 %
Travelmix S.r.l.	Italy	KPMG ⁽⁸⁾	Bookings	100 %
Travelparks Italy S.r.l.	Italy	Unaudited	Bookings	100 %
Grant Leisure Group Limited	United Kingdom	KPMG	Zoo	100 %
Real Live Leisure Company Limited	United Kingdom	KPMG	Aquarium	100 %
Lakeside Mall Entertainment Centre Limited	United Kingdom	KPMG	Without activity	100 %
Bon-Bon Land A/S	Denmark	KPMG	Amusement park	100 %
Centaur Holding Denmark A/S	Denmark	Unaudited	Holding company	100 %
BonBon Rejser Danmark A/S	Denmark	Unaudited	Bookings	100 %
Centaur Nederland 2 B.V.	Netherlands	Unaudited	Holding company	100 %
Centaur Holding Germany, GmbH.	Germany	Unaudited	Holding company	100 %
Movie Park Germany GmbH	Germany	KPMG	Theme park	100 %
Movie Park Germany Services GmbH.	Germany	Unaudited	Bookings	100 %
Event Park GmbH	Germany	BDO	Amusement park	100 %
Nature Park Germany GmbH	Germany	Unaudited	Without activity	100 %
Centaur Nederland 3.B.V.	Netherlands	Unaudited	Holding company	100 %
Pleasantville, B.V y sociedades dependientes ⁽⁴⁾	Netherlands	BDO	⁽⁵⁾	100 %
Centaur Holding US Inc. y sociedades dependientes ⁽⁶⁾	United States	KPMG	⁽⁷⁾	100 %

	Thousands of Euro
Name	Assets	Liabilities	Equity	Profit/(loss)
Parco della Standiana S.r.l.	96.984	23,453	73,531	(2,228)
Travelmix S.r.l.	1,168	740	428	(109)
Travelparks Italy S.r.l.	129	16	113	9
Grant Leisure Group Limited	14,918	2,502	12,416	(5)
Real Live Leisure Company Limited	5,535	976	4,559	(203)
Lakeside Mall Entertainment Centre Limited	5,432	5,452	(20)	(17)
Bon-Bon Land A/S	16,812	1,464	15,348	(732)
Centaur Holding Denmark A/S	34,299	107	34,192	(4)
BonBon Rejser Danmark A/S	96	13	83	(5)
Centaur Nederland 2 B.V.	349,050	136,130	212,920	(548)
Centaur Holding Germany, GmbH.	35,742	40,698	(4,956)	(1,451)
Movie Park Germany GmbH	31,334	15,863	15,471	2,047
Movie Park Germany Services GmbH.	484	433	51	-
Event Park GmbH	12,087	7,307	4.780	(452)
Nature Park Germany GmbH	29	1	28	-
Centaur Nederland 3.B.V.	302,146	298	301,848	(6)
Pleasantville, B.V y sociedades dependientes ⁽⁴⁾	42,572	35,386	7,186	(1,164)
Centaur Holding US Inc. y sociedades dependientes ⁽⁶⁾	730,014	512,847	217,167	(17,222)

⁽¹⁾ Only Parque de Atracciones Madrid, S.A.U., Centaur Nederland 3 B.V., and Marineland Resorts, S.A.S, are direct subsidiaries of the Company, For the rest of the Group companies, the percentage ownership shown reflects indirect ownership.
⁽²⁾ Casa de Campo s/n, Madrid.
⁽³⁾ Paseo de la Castellana 216, planta 16, 28046, Madrid.
⁽⁴⁾ This line includes the figures reflecting the assets, liabilities, equity and profit or loss of the consolidated subgroup formed by Pleasantville, B.V., Bembom Brothers Beheer B.V., Attractie-en Vakantiepark Slagharen B.V., (previously called Shetland Ponypark Slagharen B.V.), and Slagharen Crew B.V.
⁽⁵⁾ Equity investment management firms and operators of a theme park.
⁽⁶⁾ This line includes the figures reflecting the assets, liabilities, equity and profit or loss of the consolidated subgroup of Centaur Holding II United States, Inc., Centaur Holding United States, Inc., Palace Entertainment Holdings, Llc., Festival Fun Parks, Llc., Dallas Speedzone Club, Llc., BR Beverage Company Llc., DD Pacific Investors Llc., Sea Life Services, Llc., DD Parks, Llc., Oahu Entertainment Parks, LP y Attractions Hawaii, LP.
⁽⁷⁾ Equity investment management firms and operators of theme parks, water parks, zoos and nature parks, and family entertainment centres.
⁽⁸⁾ The legal audit is carried out by a local audit firm.

This appendix forms an integral part of note 1 to the consolidated financial statements for the year ended at 31 December 2019, in conjunction with which it should be read.

Segment Reporting at 31 December 2019 and 2018

	Thousands of Euro
	United States		Spain
	31.12.2019	31.12.2018	31.12.2019	31.12.2018
Ordinary income	229,795	23,663	151,952	21,123
Supplies	(21,191)	(2,185)	(16,961)	(2,516)
Fixed expenses ^(a)	(183,324)	(26,550)	(71,849)	(13,981)
Amortisation and depreciation ^(b)	(91,265)	(6,833)	(12,989)	(4,581)
Variation in trade provisions	3,706	(243)	(79)	23
Other results	-	-	-	-
Profit / (loss) from the sale of subsidiaries	-	-	-	-
Operating profit / (loss)	(62,279)	(12,148)	50,074	68
Net financial expenses ^(c)	(8,521)	(1,744)	17,975	(937)
Pre-tax Profit / (Loss)	(70,800)	(13,892)	68,049	(869)
Income Tax	-	122	(5,109)	7,757
Profit / (loss) for the year	(70,800)	(13,770)	62,940	6,888
Non-controlling interests	-	-	44	(14)
Profit / (loss) for the year attributable to the shareholders of the Parent Company	(70,800)	(13,770)	62,896	6,902
Additions to PPE and intangible assets	60.190	6,001	15,694	2,259
Amortisation and depreciation ^(c)	(91,265)	(6,833)	(12,989)	(4,581)
Total assets	506,386	728.288	728,468	731,688
Total liabilities	179,698	94,753	219,518	235,866

	Thousands of Euro
	Rest of the world		Head Office - Non-Operating
	31.12.2019	31.12.2018	31.12.2019	31.12.2018
Ordinary income	304,445	30,003	9,594	2,066
Supplies	(39,471)	(3,980)	(341)	(88)
Fixed expenses ^(a)	(182,717)	(30,084)	(48,054)	(7,365)
Amortisation and depreciation ^(b)	(278,872)	(5,980)	(52,526)	(17,810)
Variation in trade provisions	(1,000)	(1,288)	181	380
Other results	-	-	-	-
Profit / (loss) from the sale of subsidiaries	-	895	-	-
Operating profit / (loss)	(197,615)	(10,434)	(91,146)	(22,817)
Net financial expenses ^(c)	(25,325)	(4,447)	(63,806)	(5,948)
Pre-tax Profit / (Loss)	(222,940)	(14,881)	(154,952)	(28,765)
Income Tax	6,059	455	26,098	4,291
Profit / (loss) for the year	(216,881)	(14,426)	(128,854)	(24,474)
Non-controlling interests	-	-	-	-
Profit / (loss) for the year attributable to the shareholders of the Parent Company	(216,881)	(14,426)	(128,854)	(24,474)
Additions to PPE and intangible assets	52,244	10,462	17,504	11,136
Amortisation and depreciation ^(c)	(278,872)	(5,980)	(52,526)	(17,810)
Total assets	895,435	684,392	67.253	159,103
Total liabilities	133,082	88,075	984,368	829,055

	Thousands of Euro
	Total
	31.12.2019	31.12.2018
Ordinary income	695.786	76,855
Supplies	(77,964)	(8,769)
Fixed expenses ^(a)	(485,944)	(77,980)
Amortisation and depreciation ^(b)	(435,652)	(35,204)
Variation in trade provisions	2,808	(1,128)
Other results	-	-
Profit / (loss) from the sale of subsidiaries	-	895
Operating profit / (loss)	(300,966)	(45,331)
Net financial expenses ^(c)	(79,677)	(13,076)
Pre-tax Profit / (Loss)	(380,643)	(58,407)
Income Tax	27,048	12,625
Profit / (loss) for the year	(353,595)	(45,782)
Non-controlling interests	44	(14)
Profit / (loss) for the year attributable to the shareholders of the Parent Company	(353,639)	(45,768)
Additions to PPE and intangible assets	145,632	29,858
Amortisation and depreciation ^(c)	(435,652)	(35,204)
Total assets	2,197,542	2,303,471
Total liabilities	1,516,666	1,247,749

^(a) Includes the headings "Employee remuneration expenses" and "Other operating costs" in the consolidated income statement.
^(b) Includes the headings "Amortisation expenses" and "Net impairment losses and disposal of non-current assets" in the consolidated income statement.
^(c) Includes the headings "Financial Income", "Financial Expenses" and "Exchange differences" in the consolidated income statement.

This appendix forms an integral part of note 4 (u) to the consolidated financial statements for the year ended at 31 December 2019, in conjunction with which it should be read.

Detail of concession arrangements At 31 December 2019 and 2018

Name of the park	Type of deed	Owner of contract	Owner of good	Term
PARQUE DE ATRACCIONES DE MADRID	Public concession	PARQUE DE ATRACCIONES MADRID, S.A.U.	Municipal government of Madrid	Term ends: 5 October 2026.
AQUOPOLIS TORREVIEJA	"Lease agreement for the Hoya Grande estate". Lease agreement relating to a private property.	LEISURE PARKS, S.A.	Municipal government of Torrevieja	Term ends: 20 February 2032.
AQUOPOLIS SEVILLA	"25-year administrative concession for the use of the site and facilities of Parque Acuático de Sevilla, owned by the municipality". Concession for the private use of a public good.	LEISURE PARKS, S.A.	Municipal government of Seville	Term ends: 18 May 2020.
AQUOPOLIS COSTA DORADA	"Agreement to build and operate under administrative concession a water park in Vila Seca i Salou". Administrative concession of works and services.	LEISURE PARKS, S.A.	Municipal government of Vila-Seca	Term ends: 31 December 2021.
AQUOPOLIS CARTAYA	"Administrative agreement for the installation of a 'water park' with sundry facilities (restaurant, etc.), and subsequent operation of the 'Malpica' site, in the adjacent common lot known as 'Playas de Cartaya'"	AQUOPOLIS CARTAYA, S.L.U.	Municipal government of Cartaya	Term ends: 15 March 2024.
AQUOPOLIS SAN FERNANDO DE HENARES	"Assignment of use of a municipal site". This is a contract for the usage of a site owned by the municipality.	PARQUE DE ATRACCIONES SAN FERNANDO DE HENARES, S.L.U.	Municipal government of San Fernando de Henares	Term ends: 23 November 2019. The park did not open in 2019 due to an agreement.
AQUOPOLIS VILLANUEVA DE LA CANADA	Right of surface occupation	LEISURE PARKS, S.A.	Municipal government of Villanueva de la Cañada	Term ends: 23 July 2026. On 14 February 2019, the extension was approved by the Municipal Plenary until 23 July 2041. Pending of formalization.
ZOO-AQUARIUM DE MADRID	"Concession for the construction, maintenance and operation of a zoo in Madrid's Casa de Campo". Public concession.	ZOOS IBÉRICOS, S.A.	Municipal government of Madrid	Term ends: 18 April 2034.
AQUOPOLIS CULLERA	"Lease agreement for municipal land to build and install a sports, water and amusement park"	LEISURE PARKS, S.A.	Municipal government of Cullera	Term ends: 31 December 2033.
FAUNIA	"Concession for the use of the site known as 'Parque Bioldgico' in Plan Especial Norte, PAU,-4, Valdebernardo, Madrid". Administrative concession of a public good.	PARQUE BIOLOGICO DE MADRID, S.A.	Department of the Environment, Madrid regional government	Term ends: 22 July 2048.
SELWO AVENTURA	"Agreement for the creation, installation and operation of an integrated park and establishment of right of surface occupation". Right of surface occupation	PARQUES DE LA NATURALEZA SELWO, S.L.	Municipal government of Estepona	Term ends: 08 February 2072.
SELWO MARINA	"Construction, execution of works and operation of a nature park in Benalmadena, and to	LEISURE PARKS, S.A.	Municipal government of Benalmadena	Term ends: 27 June 2075.
BENALMADENA CABLE CAR	operate the Benalmádena-Calamorro public transport cable car under a lease". Right of surface occupation "Construction, execution of works and operation of a nature park in Benalmádena, and to operate the Benalmádena-Calamorro public transport cable car under a lease". Public service lease.	LEISURE PARKS, S.A.	Municipal government of Benalmádena	Term ends: 27 June 2075.

Name of the park	Review of prices and rates	Early cancellation	Fee/revenues and review thereof	Reversion of installations
PARQUE DE ATRACCIONES DE MADRID	Access rates are approved annually by the municipal government of Madrid. Increases in line with CPI are envisaged.	Early cancellation is envisaged in cases of (i) essential non- compliance by the concessionaire; (ii) bankruptcy of the concessionaire; (iii) destruction; (iv) mutual agreement; (v) abandonment; and (vi) withdrawal (bailout), in which case the indemnity is subject to the general framework.	Euro 0.138 per visitor (with a guaranteed minimum equal to 2,500,000 visitors). The fee for 2018 amounted to 339,471 Euros	The installations will revert to the council when the concession expires.
AQUOPOLIS TORREVIEJA	LEISURE PARKS is free to set the prices to access the park and the rest of services.	No clause is envisaged concerning early cancellation, and the agreement is subject to the general framework for contracts.	54,555 Euros per year, reviewed in line with the CPI (last available revenue paid: 58,565 Euros) until 20 February 2017. From that date on, the annual fee totals 254,092 Euros updated in line with CPI.	The installations will revert to the council when the concession expires.
AQUOPOLIS SEVILLA	LEISURE PARKS is free to set the prices to access the park and the rest of services, but these may not exceed the normal rates for this kind of establishment.	Early cancellation is envisaged in cases of (i) non-compliance by the concessionaire; (ii) mutual agreement; (iii) destruction of the facilities; (iv) abandonment or withdrawal by the concessionaire; and (v) inactivity of the facilities for a period of one year. No specific indemnities or penalties are established, except for compensation in the event of a new adjudication before the term ends.	31,200 Euros per year reviewed in line with the CPI (last fee paid: 53,405 Euros).	The installations will revert to the council when the concession expires.
AQUOPOLIS COSTA DORADA	The rates must be approved by the municipal government. Increases in line with CPI are envisaged.	The municipal government is entitled to bail out from the concession early if this is justified by the public interest, most notably for reasons of urban planning. The concessionaire will be duly compensated in accordance with the general framework, except in the case of fraud or criminal liability by the concessionaire.	In 1998 a fee of 102,000 Euros per year was established, which was to be reviewed in line with the CPI (last fee paid: 196,145 Euros).	The installations will revert to the council when the concession expires.
AQUOPOLIS CARTAYA	No framework is specified.	The potential for bailout is provided in the event of noncompliance by the concessionaire; withdrawal of the concessionaire; the property ceases to be included in the public domain and for reasons of the public interest. The concessionaire will be compensated-where applicable-in accordance with the general framework.	12,000 Euros per year reviewed in line with the CPI (latest fee paid: 20,335 Euros).	The land and the installations will revert to the council when the concession ends (except any own tools used to perform the activity).
AQUOPOLIS SAN FERNANDO DE HENARES	No specific restrictions are established for the contractor in relation to access rates.	Early termination is specifically provided in the event the fee is not paid for four months, or by mutual agreement or due to abandonment of the site.	Annual minimum of 24,000 Euros plus a variable fee in line with ticket office revenues. (latest fee paid: 24,040 Euros).	The installations reverted to the council when the concession expired. Because the park was being demolished, it reverted on 13 February 2020.
AQUOPOLIS VILLANUEVA DE LA CANADA	No framework is specified.	Envisaged in the event of non- compliance by superficiary.	50,000 Euros per year reviewed in line with CPI (latest fee paid: 55,348 Euros).	The installations will revert to the council when the surface right expires.
ZOO-AQUARIUM DE MADRID	The rates must be approved annually by the municipal government. Updates in line with CPI are envisaged.	Early cancellation is envisaged in cases of (i) essential non- compliance by the concessionaire; (ii) bankruptcy of the concessionaire; (iii) destruction; (iv) mutual agreement; (v) abandonment; and (vi) withdrawal (bailout), in which case the indemnity is subject to the general framework.	25,000 Euros per year + 45,000 tickets per year. Paid in 2018: 25,000 Euro.	The installations will revert to the council when the concession expires.
AQUOPOLIS CULLERA	No framework is specified.	Provision for termination in case of essential and continual non-compliance by the concessionaire.	3,000 Euros per year reviewed in line with the CPI (latest fee paid: 7,362 Euros).	The installations will revert to the council when the concession expires.
FAUNIA	No specific restriction is established for the concessionaire when it comes to setting access rates and service prices.	Envisaged in the event of non- compliance by concessionaire, while no cause is specified, in the event of it being terminated early due to causes imputable to the Administration, the concessionaire will be entitled to receive compensation (in accordance with the general framework).	Last amount paid: 1,049,866 Euros (reviewable annually in line with CPI).	The installations will revert to the Madrid city council when the concession ends.
SELWO AVENTURA	No specific restriction is established for the concessionaire when it comes to setting access rates and service prices.	Due to non-compliance by the superficiary, especially in the event the park remains closed for six months.	Last amount paid: 85,825 Euros (to be reviewed annually in line with CPI+1 %).	The installations will revert to Estepona municipal council.
SELWO MARINA	No specific restriction is established for the superficiary when it comes to setting access rates and service prices.	No framework is specified, so the general framework applies.	Latest fee paid: 88,133 Euros, Fixed amount with a fixed annual increase of 2,5 %.	The installations will revert to Benalmadena municipal council.
BENALMADENA CABLE CAR	Access rates for the cable car must be approved by the municipal government, Authorisation must be requested for any modification other than an increase in line with CPI.	No framework is specified, so the general framework applies.	Latest fee paid: 176,265 Euros, Fixed amount with a fixed annual increase of 2,5 %.	The installations will revert to Benalmádena municipal council.

This appendix forms an integral part of note 9 (a) to the consolidated financial statements for the year ended at 31 December 2019, in conjunction with which it should be read.

Financial Liabilities by category at 31 December 2019 and 2018

	Thousand Euros
	31.12.2019
	Non-current		Current
	At amortised cost or cost		At amortised cost or cost
	Book Value	Fair Value	Book Value	Fair Value
Financial liabilities with credit institutions (see note 13)
Floating rate
Syndicated loan	267,495	269,215	-	-
(Arrangement expenses pending amortisation)	(5,033)	(5,033)
Other bank loans	-	-	59,757	60,087
IFRS 9 Adjustment	-	-	-	-
	262,462	264,182	59,757	60,087
Finance lease payables (see note 8)	194,216	203,855	17,725	18,919
Other financial liabilities (see note 17)	12,105	12,105	23,293	23,293
	206,321	215,960	41,018	42,212
Trade and other accounts payables (see note 16)
Suppliers	-	-	61,126	61,126
Other accounts payables	-	-	53,677	53,677
	-	-	114,803	114,803
Total financial liabilities	468,783	480,142	215,578	217,102

Financial Liabilities by category at 31 December 2019 and 2018

	Thousand Euros
	31.12.2018
	Non-current
	At amortised cost or cost
	Book value	Fair Value	At fair value	Total
Financial liabilities with credit institutions (see note 13)
Floating rate
Syndicated loan	267,495	634,449	-	267,495
(Arrangement expenses pending amortisation)	-	-	-	-
Other bank borrowings	-	-	-	-
IFRS 9 Adjustment	-	-		-
	267,495	634,449	-	267,495
Finance lease payables (see Note 9)	194,216	203.855	-	194,216
Other financial liabilities	12,105	12,105	-	12,105
	206,321	215,960	-	206,321
Trade and other accounts payable (see Note 17)
Suppliers	-	-	-	-
Other accounts payable	-	-	-	-
	-	-	-	-
Hedge derivatives (Note 14)
Arranged in non-organised markets	-	-	-	-
		-	-	-
Total financial liabilities	473,816	850,409	-	473,816

	Thousand Euros
	31.12.2018
	Current
	At amortised cost or cost
	Net book value	Fair Value	At fair value	Total
Financial liabilities with credit institutions (see note 13)
Floating rate
Syndicated loan	-	-	-	-
(Arrangement expenses pending amortisation)	(5,131)	(5,131)	-	(5,131)
Other bank borrowings	59,845	59,845	-	59,845
IFRS 9 Adjustment	-	-		-
	54,714	54,714	-	54,714
Finance lease payables (see Note 9)	17,727	18,919	-	17,727
Other financial liabilities	23.290	23,293	-	23,290
	41,017	42,212	-	41,017
Trade and other accounts payable (see Note 17)
Suppliers	61.126	61,126	-	61,126
Other accounts payable	53,677	53,677	-	53,677
	114,803	114,803	-	114,803
Hedge derivatives (Note 14)
Arranged in non-organised markets	-	-	-	-
	-	-	-	-
Total financial liabilities	210,534	211,729	-	210,534

This appendix forms an integral part of note 14 to the consolidated financial statements for the year ended at 31 December 2019, in conjunction with which it should be read.

Directors' Report 31 December 2019

1

1. Business performance and situation of the Group

The Group's main financial figures are presented below, adjusted for comparable exchange rates so as to eliminate any effects that might distort the comparison between the year ended 31 December 2019 and the same period of 2018. Accordingly, the most important performance rate of the Group is EBITDA defined as operating profit/(loss) minus amortisation and depreciation, net losses on impairment and disposals of non-current assets changes in trade provisions and other results. Including these, in addition, income and expenses considered as non-recurring according to the Group's internal policies. In this regard, the Group's EBITDA for the year ended 31 December 2019 is as follows (million Euros):

	31.12.2019
Operating profit/(loss)	(301.0)
Amortisation and depreciation	114.1
Net losses on impairment and disposals of	371,6
non-current assets
Changes in trade provisions	(2.8)
Other expenses and income considered as non-recurrent ^(*)	76.4
EBITDA	208.3

^(*) Includes, according to the Group's internal policies, severance and other expenses for Senior Management in the amount of 4,050 thousand Euros and 1,455 thousand Euros for the long-term incentive plan, both included in the personnel expenses heading, as well as non-recurrent expenses amounting 70,934 thousand Euros included in the heading Other operating expenses included in the consolidated financial statements of the fiscal year ended 31 December 2019.

Likewise, with the objective of showing a homogeneous consolidation perimeter the EBITDA resulting from the changes in the consolidation perimeter during 2019 is excluded. In this sense, the result of both periods from the companies acquired during the last exercise it's excluded: Tropical Island Holding GmbH, Nature Park Germany GmbH, as well as the result provided by Event Park GmbH (Belantis), acquired in the period ended 30 September 2018 and Wet'n'Wild Sydney, acquired in the fiscal year ended 31 December 2018.

The reconciliation for the fiscal year 2019 is as follows:

€ MM	Income	EBITDA
Annual accounts fiscal year ended 31 December 2019	695.8	208.3
Changes in consolidation perimeter	(101.1)	(28.6)
Comparable period 2019	594.7	179.7

Based on these criteria, hereunder, the table shows the group's main financial figures that have been harmonised for comparison purposes:

Group
€ MM	2018	2019	Variation
Visitors ('000)	19,457	19,047	(2.1 %)
Total Income Per capita ⁽¹⁾	30.0	31.2	4.0 %
Per capita ticket revenue	16.1	16.9	4.9 %
Per capita internal consumption revenue	12.1	12.6	4.1 %
Other income per capita	1.8	1.7	(5.5 %)
Total income	584.0	594.7	1.8 %
EBITDA	183.9	179.7	(2.3 %)
%margin ⁽²⁾	31.5 %	30.2 %

Method of calculation:

⁽¹⁾ Total Income per capita = Total income *1000/Visitors
⁽²⁾ % margin = EBITDA / Total income

During fiscal year 2019, despite of the great results obtained in Spain's segment, based on the excellent season of Warner, the Group was not able to reach the EBITDA levels of 2018, due to poorer outcomes obtained in the USA segment.

As a highlight, the Group was able to obtain a positive evolution on revenue's level, driven by the per capita.

This marginal increase in revenues did not result in an EBITDA increase mainly due to the operative expenses increase in the USA segment, driven by significant increases of personnel expenses, with increases in minimum wages and labour market reorganization expenses. If the EBITDA from this segment is excluded, the overall EBITDA increases 3.5 % over last year.

2. Business performance by geographical area

Below is a comparison of the main figures by segment (geographical area):

Spain

For the fiscal year 31 December 2019, Spanish parks logged significant growth compared with the previous year.

Spain
€ bn	2018	2019	Change
Visitors ('000)	6,290	6,055	(3.7 %)
Total Income Per capita ^(l)	23.0	25.1	9.3 %
Per capital ticket revenue	12.9	14.3	10.9 %
Per capita internal consumption revenue	9.3	10.0	7.5 %
Other income per capita	0.8	0.8	- %
Total income	144.4	152.0	5.2 %
EBITDA	61.9	65.1	5.1 %
% margin ⁽²⁾	42.9 %	42.8 %

Method of calculation:

⁽¹⁾ Total Income per capita = Total income *1000/Visitors
⁽²⁾ % margin = EBITDA / Total income.

The main drivers of this improvement (+5.2 %) in income and (+5.1 %) in EBITDA, were:

•	Success in the business strategy with a significant increase in percaps in ticketing and intern consumptions that compensated the loss of visitors.
•	Great results in the off-season events (Halloween and Christmas).
•	Success with the updates of the parks, specially the Warner Park with a significant increase in revenues and EBITDA vs PY.

Rest of Europe

The main magnitudes of the Rest of Europe segment are shown below:

Rest of Europe
€ bn	2018	2019	Change
Visitors ('000)	7,321	7,092	(3.1 %)
Total Income Per capita ⁽¹⁾	28.1	29.9	4.4 %
Per capital ticket revenue	15.3	15.9	3.9 %
Per capita internal consumption revenue	11.2	11.7	4.4 %
Other income per capita	2.2	2.3	4.5 %
Total income	210.0	212.2	1.1 %
EBITDA	67.3	65.3	(2.9 %)
% margin ⁽²⁾	32.0 %	30,8 %

Method of calculation:

⁽¹⁾ Total Income per capita = Total income *1000/Visitors
⁽²⁾ % margin = EBITDA / Total income

Regarding Rest of Europe segment, the total income improved compared with the previous year by 1.1 %, driven by significant growth in of 4.4 % in per capita revenue, compensating the loss of visitors.

The loss of EBITDA arose in Italy, due to a delay in the opening of the new Ducati World zone, and in France, because of the problems the park is still carrying from previous years, impacting the high season months.

Movie Park Germany obtained excellent results, driven by the high success of the updates and favourable weather conditions.

United States

United States
€ bn	2018	2019	Change
Visitors ('000)	5,713	5,644	(1.2 %)
Total Income Per capita ⁽¹⁾	38.3	39.1	2.1 %
Per capital ticket revenue	21.1	21.4	1.4 %
Per capita internal consumption revenue	16.6	16.8	1.2 %
Other income per capita	0.6	0.9	50 %
Total income	219.0	220.9	0.9 %
EBITDA	73.5	65.3	(11.2 %)
% margin ⁽²⁾	33.6 %	29.6 %

Method of calculation:

⁽¹⁾ Total Income per capita = Total income *1000/Visitors
⁽²⁾ % margin = EBITDA / Total income

This segment shows a marginal increase in revenues driven by the increase in per capita revenues. The significant increase in operative expenses results in a loss of 11.2 % at EBITDA level compared to previous year.

The main reasons of this increase in operative expenses have been the significant increase in personnel expenses, with increases in minimum wages and increases to adapt to the labour market organization, and the delay in the opening of the updates, which did not allow the segment to reach the projected revenues, but increased OPEX.

Head Office - Non-Operating

Head Office - Non-Operating
€ MM	2018	2019	Var.
Visitors ('000)	133	256	93.3 %
Total Revenues	10.6	9.6	(9.6 %)
EBITDA	(18.8)	(16.0)	15.1 %

The EBITDA increased driven by a cost reduction which has compensated the loss of income.

3. Foreseeable strategy and performance of the Group

The Group is working in a set of strategic measures, with the objective of boost the future growth of the business, his efficiency and risk profile. The main strategic measures covered are:

Organic growth:

Focus on the customer and increase in revenues. Internally, the Group is working in the efficiency improvement of structures and management procedures, as well as in increasing data analysis for decision making. Additionally, the Group is developing a focus on the digitalization of the business, improving external procedures as incrementing the knowledge about the customer and enhancing the experience in the parks of the Group. Besides, the Group is developing and applying new decision-making processes for the investments, with focus on the customer and profitability. All these strategic measures are complemented by an effort on sustainability in our operations and security for our customers.

Acquisitions:

The Group keeps looking for investment opportunities with operative improvement potential that reinforce and complement the actual portfolio.

To the date of preparation of these financial statements, our operations have been affected by the COVID-19 crisis, as well as with the measures adopted by the government of the countries in which the Group operates. The uncertainty arising from this situation, and the seasonable nature of our business, makes very difficult performing any kind of projection about the long-term evolution, right now.

4. Research and Development

During the period ended 31 December 2019, the Group continued to conduct internal R&D&I projects, mainly in the area of software applications as well as digital transformation.

5. Own Shares

On 30 August 2019, related with the incentive's plan, the Company delivered the beneficiary 13,064 shares, liquidating all own shares the Company had registered at that date.

As at 31 December 2019, the Parent Company does not have own shares registered.

6. Financial Instruments

As at 31 December 2019, all derivative financial instruments of the Group have expired.

The Group hedged against the risk of variations in the interest rate of the syndicated loan using Interest Rate Swaps (IRSs). These financial instruments have been classified as Level 2 in the hierarchy established in IFRS 7.

With IRS, interest rates are interchanged so that the Group receives a variable interest rate from the bank in exchange for a payment of fixed interest on the nominal amount. The variable interest rate received for the derivative offsets the interest paid on the hedged financing. The end result is the payment of fixed interest on the hedged financing. To determine the fair value of interest rate derivatives, the Group discounts cash flows based on implicit rates determined through the Euro and US dollar interest rate curves depending on market conditions at the valuation date.

At 31 December 2019, the Group has recognised, in the heading "Variation in fair value of interest rate derivatives" of the consolidated profit and loss account, a financial loss of 553 thousand Euros pertaining to the variation in fair value since the start of the year until the maturity date both of the IRS in Euro and the one in USD.

Lastly, in the period ended 31 December 2019, these derivative instruments accrued interest expenses for the amount of 159 thousand Euros (interests' income of 311 thousand Euros as at 31 December 2018), included in the "Financial Expenses" caption of the account, of consolidated profit and loss account.

7. Subsequent events

On 3 February 2020, José Diaz, Chief Executive Officer of the Group as 31 December 2019, has announced his resignation. The 24 February 2020, the Board of Directors of the Group has designated Jesus Fernandez (previous COO) as new CEO.

On the other hand, the 11 March of 2020, the World Health Organization declared the COVID-19 outbreak as a pandemic, based on the fast propagation worldwide, affecting in more than 150 countries. In Spain, the Government adopted the Royal Decree 463/2020, of 14 March, declaring the alarm estate for the management of the Health crisis originated by the COVID-19, which had an initial duration of 15 days, and was extended until the 7th of June. Similar measures have been declared in the countries where the Group operates (Europe, United States of America and Australia), where the governments are taking restrictive measures to contain the propagation, including: quarantine, confinement and outdoors movement restrictions, closure of public and private establishments, except those of basic necessity and health related, closure of borders and drastic decrease of air, sea and land transport.

This situation is affecting significantly the world economy, due to the measures approved to contain the propagation, interruption or slowdown of supply chains, suspension of some economic activities and the significant increase of economic uncertainty, evidenced in the increase in volatility in asset prices, exchange rates and decrease in long term interest rates. To mitigate the economic impacts of this crisis, the Wednesday 13th of march, in Spain was published the Royal Decree-Law 7/2020, of 12th March, adopting urgent measures to answer to the economic and social impact of COVID-19, and later, the 18th of March, was published the Royal Decree-Law 8/2020 of 17th March, of urgent and extraordinary measures to confront the economic and social impact of COVID-19.

The consequences derived from COVID-19 are considered a subsequent event that does not require an adjustment to the financial statements of the year 2019, without prejudice to being an adjustment on the financial statement of year 2020.

At the date of formulation of these financial statements is not possible to measure the present and future impact derived from this crisis to the Group, the consequences until this date have been the following:

―	The Group had to finish his activity worldwide and the totality of the parks and entertainment centres of the Group (in Spain, Europe, USA and Australia) are closed to the public, with the exception of the German park Weltvogelpark Walsrode, which opened the 15th of May.
―	I - The Management of every park has been forced to adopt employment measures that derived, in several cases, in temporal suspension of the majority of the workforce contracts of their respective parks.

The uncertainty regarding the duration of the restrictive measures imposed by governments, joined with the stationarity of the Group's activity (which main volume of operations occurs during summer months), and the unpredictable social and cultural impact that this crisis and his effects will have on the Group's activity, difficult the estimation of the impacts that will be derived from this situation. In every case, the Group is taking all the measures (financial, legal, labour and operative) at his reach to reduce the Group expenses to the minimum, ensure the liquidity and minimize the impact of the losses that will be generated because of this crisis. Until this date, the Group has met all the debt and supplier payments.

In this sense the Group has formalized additional credit lines amounting 235,000 thousand Euros, consisting as at 13 May 2020 in an increase of the syndicated loan by an amount of 200,000 thousand Euros, maturing September 2026 and an additional 35,000 thousand Euros in Credit facilities subscribed with different financial institutions, maturing April 2023.

The Group will evaluate during year 2020 the impact of the event before-mentioned and those that could produce in the future affecting the equity and financial situation as of 31 December 2020, and the results and cash flows of the year ended on the before-mentioned date.

8. Risk policy and management

Management of the risks to which the Group is exposed in the performance of its activities is one of the basic pillars of its effort to preserve the value of its assets and, consequently, the value of shareholders' investment. The risk management system is structured and defined for the achievement of the strategic and operational objectives of the Group.

The management of the Group's financial risk is centralised in the Corporate Financial Department. This Department has established the necessary mechanisms to control, according to the structure and financial position of the Group and the economic variables of the environment, the exposure to the changes in interest and currency rates, as well as the risks of credit and liquidity by resorting, if necessary, to occasional hedge transactions and establishing, if deemed necessary, the pertaining credit limits and establishing policies for the provision of credit insolvencies.

The following describes the principal financial risks and the corresponding Group policies:

Foreign exchange risk

The Group is exposed to very limited exchange rate fluctuations since practically all of the transactions of the Group companies are made in their functional currencies. The Group's presentation currency is the euro, but some of the subsidiaries use other currencies, namely the US dollar, the Danish krone, the Norwegian krone, and the British pound.

For the period ended 31 December 2019, 61 % of revenues were generated in Euro and 32 % in US dollars (65 % and 31 %, respectively, for the three-month period ended 31 December 2018). As a consequence of foreign currency exchange rate fluctuations, the Group's financial statements are subject to fluctuations arising from the process of translating financial information into currencies other than the euro.

The following table shows the impact that a movement of 5 %-10 % in US dollar value would have had on the consolidated P&L of the year:

	Million Euros
	Result - (Expense) / Income
	31.12.2019	31.12.2018
Appreciation of 5 %	(5.3)	(0.8)
As % of consolidated result for the year	1.5 %	1.9 %
Devaluation of 5 %	4.8	0.8
As % of consolidated result for the year	(1.4 %)	(1.7 %)
Appreciation of 10 %	(11.3)	(1.8)
As % of consolidated result for the year	3.2 %	4.1 %
Devaluation of 10 %	9.2	1.5
As % of consolidated result for the year	(2.6 %)	(3.3 %)

Credit risk

The main financial assets of the Group are cash and cash equivalents as well as trade and non-trade debtor. Generally, the Group deposits its cash and cash equivalents with a highly rated entity.

The Group does not have a significant concentration of credit risk with third parties since most of its revenue is paid in cash and the risk is distributed among a large number of customers with short collection periods.

The Group monitors the balances receivable from and payable to these debtors in order to control the net position risk and to adopt suitable measures to prevent undesirable situations arising.

Details of the estimated maturities of the Group's financial assets reflected in the consolidated statements of financial position at 31 December 2019 and 2018 are as follows. The accompanying tables reflect the analysis of the maturities of financial assets at 31 December 2019 and 2018.

	31.12.2019
	Thousands of Euro
	Less than 3 months	More than 6 months and less than 1 year	More than 1 year	Total
Non-current deposits and guarantees arranged	-	-	1,126	1,126
Trade debtors and other accounts receivable	18,862	-	-	18,862
	18,862	-	1,126	19,988

	31.12.2018
	Thousands of Euro
	Less than 3 months	More than 6 months and less than 1 year	More than 1 year	Total
Non-current deposits and guarantees arranged	-	-	1,296	1,296
Trade debtors and other accounts receivable	24,378	-	-	24,378
	24,378	-	1,296	25,674

Liquidity risk

The various acquisitions that have taken place in recent years have been carried out through appropriate financing structures. However, these structures lead to the fulfilment of certain commitments with financial institutions that facilitate such financing, so monitoring compliance with them is a very important task.

The Corporate Financial Department performs a detailed monitoring of compliance with these commitments, in order to detect any potential risk of default thereof well in advance. In the event of such a risk being detected, the General Management is notified so that the appropriate decisions to correct the situation may be taken. At 31 December 2019 and 2018, the Group has not identified any breach of the financial ratios committed with the financial entities with which the loans have been subscribed.

The exposure to adverse situations in the debt or capital markets may hinder or prevent the procurement of the financing required by the Group to adequately conduct its business activities and implement its strategic plan.

The Group's exposure to liquidity risk at 31 December 2019 and 2018 is shown below. These tables present an analysis of financial liabilities (including interest payable in the future) by remaining contractual maturity dates.

	31.12.2019
	Thousand Euros
	Less than 1 month	From 2 to 3 months	From 4 months to 1 year
Financial liabilities with credit institutions
Syndicated loan at floating interest rate	-	-	10,198
Revolving credit facility	-	-	-
Other loans at floating interest rate	-	-	-
Other loans at fixed interest rate	-	-	-
Financial lease creditors	-	-	17,725
Trade creditors and other accounts payable	-	61,126	-
	-	61,126	27,923

	31.12.2019
	Thousand Euros
	From 2 to 5 years	More than five years	Total
Financial liabilities with credit institutions
Syndicated loan at floating interest rate	40,709	284,882	335,789
Revolving credit facility	28,574	-	28,574
Other loans at floating interest rate	-	-	-
Other loans at fixed interest rate	-	-	-
Financial lease creditors	73,870	396,152	487,747
Trade creditors and other accounts payable	-	-	61,126
	143.153	681,034	913,236

	31.12.2018
	Thousand Euros
	Less than 1 month	From 2 to 3 months	From 4 months to 1 year
Financial liabilities with credit institutions
Syndicated loan at floating interest rate	-	-	38.291
Revolving credit facility
Other loans at floating interest rate	-	-	1,181
Other loans at fixed interest rate	-	-	1,160
Financial lease creditors	-	-	20,514
Trade creditors and other accounts payable	-	43,531	-
	-	43,531	61,146

	31.12.2018
	Thousand Euros
	From 2 to 5 years	More than five years	Total
Financial liabilities with credit institutions
Syndicated loan at floating interest rate	570,009	-	600,300
Revolving credit facility	63,738		63,738
Other loans at floating interest rate	3,534	-	5,315
Other loans at fixed interest rate	4,469	2,914	8,721
Financial lease creditors	100,525	481,388	602,427
Trade creditors and other accounts payable	-	-	43,531
	742,284	484,302	1,331,263

Also, the Group has credit lines that are not available for a significant amount. Therefore, the Group considers that the liquidity risk is adequately managed at 31 December 2019.

Interest rate risk

The Group's financial assets and liabilities are exposed to interest rate fluctuations which could have an adverse effect on its results and cash flow.

In accordance with the reporting requirements of IFRS 7, the Group has performed sensitivity analysis on the possible interest rate fluctuations that might occur in the markets in which it operates. Based on such requirements, the Group estimates that an increase of 0,50 points in the reference interest rates of the syndicated loan would imply an increase in the financial expenses thereof of 328 thousand Euros for the fiscal year period ended 31 December 2019 (841 thousand Euros for the three-month period ended 31 December 2018).

Operating risk - Brexit

Following the outcome of the referendum in the United Kingdom in favour of its exit from the European Union (Brexit) which final terms are pending of negotiation between the British Government and the European Union, the Group has analysed the possible impact that this situation could have on its results and has concluded that this will not be significant since the weight of the income in the total of the Group does not exceed 2 %. In addition, from the operational point of view, the number of visitors should not be affected in a relevant way since these, fundamentally, are made up of residents of the country.

9. Dividend Policy

The Group has paid a dividend of 20,000 thousand Euros during year 2019.

10. Average supplier payment period

Pursuant to Law 15/2010, which stipulates measures to combat late payments in commercial transactions, the information on the average payment period to suppliers of the parent company and the Spanish subsidiaries at 31 December 2019 and 2018 is as follows:

	Days
	31.12.2019	31.12.2018
Average supplier payment period	37	50
Transactions paid ratio	36	49
Transactions payable ratio	72	63

	Amount
	(Thousand Euros)
	31.12.2019	31.12.2018
Total payments made	143,218	44,215
Total payments outstanding	4.306	3,788

The data shown in the previous table regarding supplier payments refers to the Spanish group of companies belonging to the consolidated group and correspond to debts owed to the commercial creditors for goods and service. Likewise, the Group uses the transfer date as payment date as confirmation to all of its suppliers.

The group is currently making the necessary changes to of its internal process. What is more, in its payment terms policy subject to Law 15/2010, which establishes measures to combat late payment in commercial transactions with third parties in order to reduce the average payment period up to a maximum of thirty calendar, the limit currently established within regulations.

11. Non-financial information report

See Annex "Non-Financial Statement".

12. Other disclosures

Other Group related information is available at the webpage www.parquesreunidos.com

Audit Report on Parques Reunidos Servicios Centrales, S.A. and subsidiaries

(Together with the consolidated annual accounts and consolidated directors' report of Parques Reunidos Servicios Centrales, S.A. and subsidiaries for the year ended 31 December 2019)

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

Independent Auditor's Report on the Consolidated Annual Accounts

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

To the Shareholders of Parques Reunidos Servicios Centrales, S.A.

Opinion

We have audited the consolidated annual accounts of Parques Reunidos Servicios Centrales, S.A. (the "Parent") and subsidiaries (together the "Group"), which comprise the consolidated statement of financial position at 31 December 2019, and the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and consolidated notes.

In our opinion, the accompanying consolidated annual accounts give a true and fair view, in all material respects, of the consolidated equity and consolidated financial position of the Group at 31 December 2019 and of its consolidated financial performance and consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU) and other provisions of the financial reporting framework applicable in Spain.

Basis for Opinion

We conducted our audit in accordance with prevailing legislation regulating the audit of accounts in Spain. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Annual Accounts section of our report.

We are independent of the Group in accordance with the ethical requirements, including those regarding independence, that are relevant to our audit of the consolidated annual accounts pursuant to the legislation regulating the audit of accounts in Spain. We have not provided any non-audit services, nor have any situations or circumstances arisen which, under the aforementioned regulations, have affected the required independence such that this has been compromised.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

Most Relevant Aspects of the Audit

The most relevant aspects of the audit are those that, in our professional judgement, have been considered as the most significant risks of material misstatement in the audit of the consolidated annual accounts of the current period. These risks were addressed in the context of our audit of the consolidated annual accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these risks.

Recoverable amount of non-current assets (see notes 2 (c), 4 (g), 4 (h), 4 (i), 6, 7 and 8)

The Group has property, plant and equipment and intangible assets amounting to Euros 1,555,877 thousand and goodwill amounting to Euros 545,982 thousand allocated to the related cashgenerating units (CGUs). For the purposes of evaluating impairment, each park constitutes a cashgenerating unit. In this regard, intangible assets (primarily administrative concessions) and goodwill have been allocated to a significant portion of the CGUs. There is a risk that the carrying amount of cash-generating units may exceed their recoverable amount in those parks in which there is a decline in the number of visitors. Factors such as the weather, investments in fixed assets in each park (CAPEX), competition or promotional and marketing activities affect the number of visitors to each park. Group management, with the assistance of independent experts, calculates the recoverable amount of goodwill and tests property, plant and equipment and intangible assets for indications of impairment at least on an annual basis, for the purpose of determining their recoverable amount. These recoverable amounts, estimated by determining the fair value less costs to sell, are obtained based on the Business Plan approved by the Board of Directors of Piolin Bidco, S.A.U. (the principal shareholder of the Parent), by applying valuation techniques that require the exercising of judgement by the Sole Director and management and the use of estimates. Due to the complexity of the calculation of the recoverable amount, the high level of judgement when estimating the key assumptions and the associated uncertainty, as well as the significance of the carrying amount of the non-current assets, the process of measuring these assets has been considered a relevant aspect of our audit.

Our audit procedures included understanding the control environment and evaluating the design and implementation of the most relevant controls established by Group management with respect to the process of estimating the recoverable amount of goodwill and other non-current assets, and evaluating the criteria used in identifying indications of impairment. We reviewed, in collaboration with our specialists, the methodology and assumptions used by Group management in estimating the recoverable amount, its calculation based on the method for determining fair value less costs to sell based on discounted cash flows at CGU level, comparing the forecasts of the main variables in the financial projections estimated in prior years with the actual data obtained, and contrasting the information contained in the model used to calculate the recoverable amount with the Business Plan approved by the Board of Directors of Piolin Bidco, S.A.U. Furthermore, we analysed the sensitivity of the estimates of recoverable amount to changes in the relevant assumptions and judgements, such as the discount rate, the expected future growth rate and future cash flows.

Lastly, we assessed whether the disclosures in the consolidated annual accounts meet the requirements of the financial reporting framework applicable to the Group.

Emphasis of Matter

We draw attention to note 25 to the accompanying consolidated annual accounts, in which the Sole Director mentions the event after the reporting period in relation to the health emergency triggered by the spread of Coronavirus disease 2019 (COVID-19) and the main consequences identified at the date of the authorisation to issue these consolidated annual accounts, considering the measures adopted by the governments of the different countries where the Group is present, as well as the difficulties of estimating the possible impacts that this situation could have. Our opinion is not modified in respect of this matter.

Other Information: Consolidated Directors' Report

Other information solely comprises the 2019 consolidated directors' report, the preparation of which is the responsibility of the Parent's Sole Director and which does not form an integral part of the consolidated annual accounts.

Our audit opinion on the consolidated annual accounts does not encompass the consolidated directors' report. Our responsibility as regards the content of the consolidated directors' report is defined in the legislation regulating the audit of accounts, which establishes two different levels:

a)

A specific level applicable to the consolidated non-financial information statement, which consists solely of verifying that this information has been provided in the consolidated directors' report, or where applicable, that the consolidated directors' report makes reference to the separate report on non-financial information, as provided for in legislation, and if not, to report on this matter.

b)

A general level applicable to the rest of the information included in the consolidated directors' report, which consists of assessing and reporting on the consistency of this information with the consolidated annual accounts, based on knowledge of the Group obtained during the audit of the aforementioned accounts and without including any information other than that obtained as evidence during the audit. Also, assessing and reporting on whether the content and presentation of this part of the consolidated directors' report are in accordance with applicable legislation. If, based on the work we have performed, we conclude that there are material misstatements, we are required to report them.

Based on the work carried out, as described above, we have verified that the directors' report states that the information mentioned in section a) above is provided in the consolidated directors' report; that the rest of the information contained in the consolidated directors' report is consistent with that disclosed in the consolidated annual accounts for 2019; and that the content and presentation of the report are in accordance with applicable legislation.

Sole Director's Responsibility for the Consolidated Annual Accounts

The Sole Director of the Parent is responsible for the preparation of the accompanying consolidated annual accounts in such a way that they give a true and fair view of the consolidated equity, consolidated financial position and consolidated financial performance of the Group in accordance with IFRS-EU and other provisions of the financial reporting framework applicable to the Group in Spain, and for such internal control as they determine is necessary to enable the preparation of consolidated annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated annual accounts, the Sole Director of the Parent is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Sole Director either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Consolidated Annual Accounts

Our objectives are to obtain reasonable assurance about whether the consolidated annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with prevailing legislation regulating the audit of accounts in Spain will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence economic decisions of users taken on the basis of these consolidated annual accounts.

As part of an audit in accordance with prevailing legislation regulating the audit of accounts in Spain, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

―	Identify and assess the risks of material misstatement of the consolidated annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
―	Obtain an understanding of internal control relevant to the audit 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 Group's internal control.
―	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Parent's Sole Director.
―	Conclude on the appropriateness of the use by the Parent's Sole Director of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated annual accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
―	Evaluate the overall presentation, structure and content of the consolidated annual accounts, including the disclosures, and whether the consolidated annual accounts represent the underlying transactions and events in a manner that achieves a true and fair view.
―	Obtain sufficient appropriate evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated annual accounts. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the Sole Director of the Parent regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

From the significant risks communicated to the Sole Director of Parques Reunidos Servicios Centrales, S.A., we determine those that were of most significance in the audit of the annual accounts of the current period and which are therefore the most significant risks.

We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

KPMG Auditores, S.L.

On the Spanish Official Register of Auditors ("ROAC") with No. S0702

21 May 2020

Gustavo Rodríguez Pereira

On the Spanish Official Register of Auditors ("ROAC") with No. 17564