Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697752283571.pdf (Georgia)
Georgian Oil and Gas Corporation JSC Unaudited Interim Consolidated Condensed Financial Statements for the six months ended 30 June 2018 Georgian Oil and Gas Corporation JSC Contents Condensed Consolidated Interim Statement of Financial Position Condensed Consolidated Interim Statement of Comprehensive Income Condensed Consolidated Interim Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Condensed Consolidated Interim Financial Statements Georgian Oil and Gas Corporation JSC Interim Consolidated Statement of Financial Position as at 30 June 2018 Note 30 June 2018 Unaudited 31 December 2017 Audited ’000 GEL Assets Property, plant and equipment Prepayments for non-current assets Intangible assets Finance lease receivable Loans given Trade and other receivables Equity accountable investees Non-current assets Loans given Inventories Taxes other than on income Prepayments Trade and other receivables Cash and cash equivalents Current assets Total assets Equity Share capital Additional paid in capital Fair value adjustment reserve for non-cash owner contributions Retained earnings Equity attributable to owners of the Company Non-controlling interests Total equity Liabilities Loans and borrowings Non-current liabilities Loans and borrowings Trade and other payables Current tax liabilities Provisions Current liabilities Total liabilities Total equity and liabilities 11 12 13 13 14 15 16 16 879,829 778,419 55,012 59,535 1,136 1,125 64,868 62,873 13,151 12,041 26,011 21,169 17,702 15,480 1,057,696 950,653 32 - 14,214 12,412 18,669 - 73,450 50,791 112,514 147,026 448,235 498,960 667,114 709,189 1,724,810 1,659,842 625,442 624,916 71,718 71,718 (282,181) (282,181) 502,917 428,994 917,897 843,447 88,368 69,063 1,006,265 912,510 602,809 602,809 637,381 637,381 75,755 78,519 37,916 29,254 - 113 2,065 2,065 115,736 109,951 718,545 747,332 1,724,810 1,659,842 The interim consolidated statement of financial position is to be read in conjunction with the notes to, and forming part of, the
 consolidated financial statements set out on pages 7 to 19.
3 Georgian Oil and Gas Corporation JSC Interim Consolidated Statement of Changes in Equity for the six months ended 30 June 2018 Attributable to owners of the Company ’000 GEL Balance at 1 January 2017 Profit and total comprehensive income for 6 months of 2017 Contributions and distributions Increase in share capital Distribution of non-cash assets Dividends Balance at 30 June 2017 Balance at 1 January 2018 Profit and total comprehensive income for 6 months of 2018 Contributions and distributions Increase in share capital Balance at 30 June 2018 Fair value reserve for non-cash owner contributions APIC Retained earnings Total 71,718 273,500 680,129 Non- controlling interests 40,186 Total equity 720,315 - 161,133 161,133 30,880 192,013 - - - (4,461) 7,778 (4,461) - - 7,778 (4,461) Share capital 617,093 - 7,778 - (282,181) - - - 624,872 (282,181) 71,718 430,171 844,580 71,066 915,645 624,916 (282,181) 71,718 428,994 843,447 69,063 912,510 - 526 - - - 73,923 73,923 19,305 93,228 - - 526 - 526 625,442 (282,181) 71,718 502,917 917,897 88,368 1,006,265 The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 7 to 19.
5 Georgian Oil and Gas Corporation JSC Notes to the Interim Consolidated Financial Statements for the six months ended 30 June 2018 Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Cash flows from operations before income taxes and interest paid Income tax paid Net interest paid Cash flows from operating activities Cash flows from investing activities (Increase)/Decrease in term deposit Acquisition of property, plant and equipment Investing in other companies Loans given Cash flows used in investing activities Cash flows from financing activities Repayment of the borrowings Net cash from/(used in) financing activities Effect of exchange rate fluctuations on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at 30 June Six months ended June 2018 2017 422,498 (350,484) 72,014 (15) (6,514) 65,485 - (109,358) - (1,219) (110,577) 466,306 (373,979) 92,327 (8) 729 93,047 74,375 (9,867) (350) - 64,157 - - (134,704) (134,704) (5,635) (22,523) (45,090) 498,960 448,235 22,501 391,609 391,587 The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 7 to 19.
6 Georgian Oil and Gas Corporation JSC Notes to the Interim Consolidated Financial Statements for the six months ended 30 June 2018 Note Page Note Page 1.

Reporting entity 2.

Basis of accounting 3.

4.

Use of estimates and judgments 5.

Operating segments 6.

7.

Revenue 8.

Other expenses 9.

Other income 10.

Finance income and finance cost 8 8 Functional and presentation currency 9 9 10 12 12 13 13 13 Seasonality of operations 11.

Property, plant and equipment 12.

Finance lease receivable 13.


Loans given 14.

Cash and cash equivalents 15.

Equity 16.

Loans and borrowings 17.

Financial risk management 18.

Contingencies 19.

Related party transactions 20.

New Standards and interpretations not 14 14 15 15 16 16 16 17 17 not yet adopted 19 7 The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 7 to 19.
Georgian Oil and Gas Corporation JSC Notes to the Interim Consolidated Financial Statements for the six months ended 30 June 2018 1.

Reporting entity (a) Organisation and operations Georgian Oil and Gas Corporation JSC (the “Company”) and its subsidiaries (the “Group”) comprise Georgian Joint Stock and Limited Liability Companies as defined in the Law of Georgia on Entrepreneurs.
The Company was established as a 100% state-owned enterprise by the order of the Ministry of Economy of Georgia on 21 March 2006, on the basis of three Georgian state-owned companies: Georgian International Oil Corporation JSC, Georgian Gas International Corporation JSC and Teleti Oil Company JSC.

In 2006 and 2007, respectively, Georgian International Oil Corporation JSC and Georgian Gas International Corporation JSC ceased legal existence and the assets and liabilities were transferred to the Company.
In November 2007 the shares in Teleti Oil Company JSC were taken over by the Government of Georgia.

Related party transactions are detailed in note 19.

The Company’s registered office is 21 Kakheti Highway, Tbilisi 0190, Georgia.

The Group’s principal activities are natural gas import and sale, rent of gas pipelines and the oil and gas exploration and extraction in Georgia.
Following the completion of the Gardabani Combined Cycle Power Plant (CCPP) construction in July 2015, electricity generation was added to the Group’s principal activities.

On 7 September 2015 CCPP obtained the licence on operation for an unlimited period from Georgian National Energy and Water Supply Regulatory Commission (GNERC) and commenced generating revenue in accordance with the deregulated tariffs on the electricity market in Georgia.
In accordance with the Government of Georgia order 475 dated 14 September 2015 Gardabani CCPP was granted the status of guaranteed capacity operator until 1 October 2040.

Since December 2006, when the Company has been granted the status of National Oil Company on behalf of the State of Georgia, the Company receives and sells the State’s share of extracted oil and gas in Georgia in accordance with Production Sharing Agreements signed between the State and investors.
(b) Business environment The Group’s operations are located in Georgia.

Consequently, the Group is exposed to the economic and financial markets of Georgia which display characteristics of an emerging market.

The legal, tax and regulatory frameworks continue development, but are subject to varying interpretations and frequent changes which together with other legal and fiscal impediments contribute to the challenges faced by entities operating in Georgia.
The consolidated financial statements reflect management’s assessment of the impact of the Georgian business environment on the operations and the financial position of the Group.

The future business environment may differ from management’s assessment.

2.

Basis of accounting (a) Statement of compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs”).
8 Georgian Oil and Gas Corporation JSC Notes to the Interim Consolidated Financial Statements for the six months ended 30 June 2018 3.

Functional and presentation currency The national currency of Georgia is the Georgian Lari (“GEL”), which is the Company’s functional currency and the currency in which these consolidated financial statements are presented.

All financial information presented in GEL has been rounded to the nearest thousand.

4.
4.

Use of estimates and judgments The preparation of consolidated financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.

Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements is included in the following notes: • Note 12 Finance lease receivable – determination of whether the initial arrangement contains a finance lease and the fair value of the unguaranteed residual value at the end of the lease term; • Note 14 Cash and cash equivalents – classification of term deposits with original maturities of more than three months as cash and cash equivalents; Measurement of fair values Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e.

as prices) or indirectly (i.e.

derived from prices).

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
9 Georgian Oil and Gas Corporation JSC Notes to the Interim Consolidated Financial Statements for the six months ended 30 June 2018 5.

Operating segments The Group has six reportable segments, as described below, which are the Group’s strategic business units.

The strategic business units offer different products and services, and are managed separately.

For each of the strategic business units, the Company’s General Director reviews internal management reports on at least a quarterly basis.
The following summary describes the operations in each of the Group’s reportable segments: • Gas supply: Includes purchase and sale of natural gas.

• Pipeline rental: Includes rental income earned by the Group from the lease of gas pipelines to a related party, Georgian Gas Transportation Company LLC • Upstream activities: Includes sale of oil from production-sharing arrangements.

• Oil transportation: Includes income from transportation of oil through the territory of Georgia.
• Oil trading: Includes agency fees from crude oil delivery from Azerbaijan to Black Sea ports in Georgia.

• Electricity generation: Includes electricity sales and guaranteed capacity fees.

Information regarding the results of each reportable segment is included below.
Performance is measured based on segment profit before depreciation, personnel costs, net finance costs, other income/expenses and income and other taxes, as included in the internal management reports that are reviewed by the Company’s General Director.

The management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.
The Company’s General Director does not monitor segment assets or liabilities.
10 (i) Information about reportable segments Georgian Oil and Gas Corporation JSC Notes to the Consolidated Financial Statements for the six month ended 30 June 2018 '000 GEL Gas supply Pipeline rental Upstream activities Oil transportation Electricity generation Total: 6 months ended 30 June 6 months ended 30 June 6 months ended 30 June 6 months ended 30 June 6 months ended 30 June 6 months ended 30 June 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 External revenues 219,632 263,169 21,026 40,508 2,309 4,929 10,405 9,879 82,299 98,288 335,671 416,773 Cost of gas and oil (206,728) (234,764) (29,384) (39,369) (236,111) (274,133) Reportable segment profit before unallocated costs, net finance cost and income tax 12,904 28,404 21,026 40,508 2,309 4,929 10,405 9,879 52,916 58,920 99,560 142,640 * Product sharing arrangements are considered as joint operations and the revenue from oil sales is recognised only when it is sold to third parties 11 Georgian Oil and Gas Corporation JSC Notes to the Consolidated Financial Statements for the six months ended 30 June 2018 ’000 GEL Revenues Total revenue for reportable segments Profit or loss Total profit for reportable segments Unallocated personnel expenses Unallocated depreciation and amortization expenses Net finance income/(costs) Other net unallocated income/(costs) Share of income/(loss) of equity accounted investees Consolidated profit before income tax Six months ended 30 June 2018 2017 335,671 416,773 99,560 (8,740) (19,488) 34,803 (15,136) 2,230 93,228 142,640 (8,174) (20,673) 53,644 (6,304) - 161,133 (ii) Geographical information All of the Group’s revenues are generated in Georgia and all non-current assets are located in Georgia.
(iii) Major customer During the 6 months of 2018, one customer in the gas supply segment represented approximately 65% of the Group’s total revenue GEL 219,632 thousand, (2016: 63%, GEL 263,169 thousand).

6.

Seasonality of operations Gas supply and pipeline rental revenues follow a seasonal pattern with an annual base-load of gas and a large heating peak occurring during the winter season.

Natural gas obtained from suppliers is utilized to meet the peak heating season requirements.
The Group’s other revenues remain relatively stable during the year.

7.

Revenue ’000 GEL Sales of natural gas Income from electricity generation Income from rent of gas pipelines Oil transportation fee Income from crude oil sales Total revenues Six months ended 30 June 2018 219,632 82,299 21,026 10,405 2,309 335,671 2017 263,169 98,288 40,508 9,879 4,929 416,773 The Company rents its gas pipeline to Georgian Gas Transportation Company LLC.
The lease payments were contingent on the volume of gas transported through the pipeline.

Since 1 September 2017 the rent fee is fixed at GEL 3,500 thousand per month.

Transactions with related parties are disclosed in note 19.

12 Georgian Oil and Gas Corporation JSC Notes to the Consolidated Financial Statements for the six months ended 30 June 2018 8.
Other expenses '000 GEL Banking, consulting and other professional services Representative and business trip expenses Regulatory fees Utility costs Insurance costs Transportation, materials and repair and maintenance Employee benefits Natural resources’ fee Other 9.

Other income '000 GEL Oil processing Rent income Other 10.
Finance income and finance costs ’000 GEL Recognised in profit or loss Customer penalties for late payment Interest income on bank deposits Interest accrued on given loans Unwinding of discount on finance lease receivable Net foreign exchange gain Finance income Interest expense on bank loans Interest expense on bonds payable Finance costs Net finance costs recognised in profit or loss Six months ended 30 June 2018 2017 (3,377) (357) (793) (447) (478) (4,148) (461) (313) (1,484) (11,859) (153) (248) (668) (375) (522) (3,024) (435) (263) (43) (5,798) Six months ended 30 June 2018 2017 209 238 1,120 1,567 229 264 2,309 2,802 Six months ended 30 June 2018 2017 9,482 19,240 522 1,993 27,726 58,963 (1,972) (22,188) (24,160) 34,803 9,823 20,112 100 1,873 47,055 78,963 - (25,319) (25,319) 53,644 Interest income was received from funds temporarily invested from the bond issuance proceeds in bank deposits and loans issued.
13 Georgian Oil and Gas Corporation JSC Notes to the Consolidated Financial Statements for the six months ended 30 June 2018 11.
Property, plant and equipment In thousand GEL Opening net book amount as at 1 January 2018 Transfers Additions Disposals Depreciation Closing net book amount as at 30 June 2018 Gas and oil pipelines Land and Buildings Electricity Generating Unit Oil wells Plant and equipment Other CIP Total 258,683 13,485 - (694) 36,829 273 526 (45) 354,032 223 - - 9,974 8,875 5,457 104,569 778,419 - - - - 97 (39) - - 13,980 403 120,501 121,528 (617) (13,990) (15,386) (8,439) (388) (8,163) (603) (925) (193) - (18,711) 263,034 37,196 346,091 9,371 8,008 5,050 211,081 879,829 12.
Finance lease receivable In 1996 the Government of Georgia entered into a 30 year arrangement with a consortium of oil companies that undertook major rehabilitation of existing pipeline from the border with Azerbaijan to the Georgian Black Sea coast and construction of Supsa oil terminal.

The arrangement granted the oil companies the right to transport oil across Georgia through that pipeline.
The pipeline infrastructure on Georgian territory, being the property of the Government of Georgia and ownership of this infrastructure was transferred to the Company in June-July 2010 through a contribution to its charter capital with a nominal value of GEL 269,299 thousand.

In exchange for the oil company’s use of the pipeline, the Group receives a transit fee for each barrel of oil transported through the pipeline.
Management has determined that the initial arrangement contained a finance lease at inception.

The Group has recognized a lease receivable of GEL 39,229 thousand at the date that title was transferred to the business.

The lease receivable is the present value of the net investment in the lease comprising the present value of the assets’ unguaranteed residual value at the end of the lease term.
The difference of GEL 230,070 thousand between the nominal amount and the present value of the net investment in the lease has been recognized in equity as fair value adjustment for non-cash owner contributions.
’000 GEL Balance at the beginning of the year/date of title transfer Unwinding of discount on finance lease receivable Balance at the end of the period 30 June 31 December 2018 2017 62,873 1,995 64,848 59,037 3,836 62,873 Contingent rents related to oil transportation recognized in the consolidated statement of comprehensive income during six months of 2018 amounted to GEL 10,405 thousand (six months of 2017 GEL 9,879 thousand).
14 Georgian Oil and Gas Corporation JSC Notes to the Consolidated Financial Statements for the six months ended 30 June 2018 13.
Loans given ’000 GEL Non-current assets Loan given to shareholder Total non-current Current assets Short term part of loan given to the third party Total current assets 30 June 31 December 2018 2017 13,151 13,151 12,041 12,041 32 32 - - The loan given to a third party bears the contractual rate of interest of 9.5% per annum and matures within 4 years and is secured by the borrower’s property, plant and equipment.

14.
Cash and cash equivalents ’000 GEL Cash and cash equivalents Call deposits 30 June 2018 31 December 2017 160,990 287,245 203,711 295,249 Cash and cash equivalents in the consolidated statement of cash flows and in the consolidated statement of financial position 448,235 498,960 Call deposits represent term deposits with banks with maturities greater than three months from the acquisition date but for which the Group has the unilateral right to withdraw the deposits within a few days of providing notification without incurring significant penalties or loss of interest.
Consequently, these term deposits have been classified in accordance with their nature which is that of a call deposit.

Term deposits represent deposits with maturity more than six months for which the Group does not have right to withdraw amounts until the end of its maturity date.

15 Georgian Oil and Gas Corporation JSC Notes to the Consolidated Financial Statements for the six months ended 30 June 2018 15.
Equity Share capital Number of shares unless otherwise stated Ordinary shares Par value On issue at 1 January Issue of shares in exchange for non-cash assets On issue at the reporting date Ordinary shares 30 June 2018 31 December 2017 GEL 20 31,245,797 26,556 31,272,353 GEL 20 30,854,651 391,146 31,245,797 The holders of ordinary shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share at meetings of the Company.

16.
16.

Loans and borrowings ’000 GEL Non-current liabilities Unsecured bond issue Current liabilities Loans from bank Current portion of unsecured bond issue 30 June 2018 31 December 2017 602,809 602,809 64,569 11,186 75,755 678,564 637,381 637,381 67,512 11,007 78,519 715,900 In April 2016 the Group carried out the issuance, placement and registration (listing) on the London Stock Exchange of unsecured bonds of USD 250 million and the early part redemption of the 2012 Bonds.
In 2017 the Group repaid outstanding part of 2012 Bonds.

As a result as of today, the Group has remaining issued USD 250 million 6.75% bonds due in 2021.

In 2017 the Group obtained loan facility of USD 26 million from local banks with interest rate of 6.5% which matures in 2018.

17.

Financial risk management The Group’s financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the twelve months ended 31 December 2017.
16 Georgian Oil and Gas Corporation JSC Notes to the Consolidated Financial Statements for the six months ended 30 June 2018 18.

Contingencies (a) Insurance The insurance industry in the Georgia is in a developing state and many forms of insurance protection common in other parts of the world are not yet generally available.
The Group does not have full coverage for its plant facilities, business interruption, or third party liability in respect of property or environmental damage arising from accidents on Group property or relating to Group operations.

Until the Group obtains adequate insurance coverage, there is a risk that the loss or destruction of certain assets could have a material adverse effect on the Group’s operations and financial position.
(b) Taxation contingencies The taxation system in Georgia is relatively new and is characterised by frequent changes in legislation, official pronouncements and court decisions.

In the event of a breach of tax legislation, no liabilities for additional taxes, fines or penalties may be imposed by the tax authorities after six years have passed since the end of the year in which the breach occurred.

These circumstances may create tax risks in Georgia that are more significant than in other countries.
Management believes that it has provided adequately for tax liabilities based on its interpretations of applicable Georgian tax legislation, official pronouncements and court decisions.

However, the interpretations of the relevant authorities could differ and the effect on these consolidated financial statements, if the authorities were successful in enforcing their interpretations, could be significant.
(c) Environmental matters The enforcement of environmental regulation in Georgia is evolving and the enforcement posture of government authorities is continually being reconsidered.

The Company periodically evaluates its obligations under environmental regulations.

As obligations are determined, they are recognized immediately.

Potential liabilities, which might arise as a result of changes in existing regulations, civil litigation or legislation, cannot be estimated but could be material.
In the current enforcement climate under existing legislation, management believes that there are no significant liabilities for environmental damage.

19.

Related party transactions (a) Control relationships As at 30 June 2018 Georgian Oil and Gas Corporation JSC is wholly owned by Partnership Fund JSC.

The ultimate controlling party of the Group is the Government of Georgia.

The Group’s parent company produces publicly available financial statements.
17 Georgian Oil and Gas Corporation JSC Notes to the Consolidated Financial Statements for the six months ended 30 June 2018 (b) Transactions with key management personnel (i) Key management remuneration Key management received the following remuneration during the year, which is included in personnel costs: Six months ended 30 June ’000 GEL Salaries and bonuses 2018 2017 694 481 (c) Other related party transactions The Group transacts in its daily operations with a number of entities that are either controlled, jointly controlled or under significant influence of the Government of Georgia.
The Group has opted to apply the exemption in IAS 24 Related Party Disclosures that allows the presentation of reduced related party disclosures regarding transactions with government-related entities.

Management estimates that the aggregate amounts of other income and expenses and the related balances with Government-related entities, except as disclosed below are not significant.
(i) Revenue ’000 GEL 2018 2017 2018 2017 Transaction value for the six months ended 30 June Outstanding balance as at 30 June 31 December State controlled entities: Rent of pipelines Income from electricity generation 21,026 82,299 40,508 98,288 103,325 138,796 26,011 4,190 30,201 29,800 11,268 41,068 (ii) Expenses ’000 GEL 2018 2017 2018 2017 Transaction value for the six months ended 30 June Outstanding balance as at 30 June 31 December State controlled entities: Purchase of Gas 2 2 28,613 28,613 13 13 30 30 18 Georgian Oil and Gas Corporation JSC Notes to the Consolidated Financial Statements for the six months ended 30 June 2018 20.
New standards and interpretations not yet adopted A number of new Standards, amendments to Standards and Interpretations are effective for annual periods beginning after 1 January 2019 and have not been applied in preparing these consolidated financial statements.

Of these pronouncements, potentially the following will have an impact on the Group’s operations.

The Group plans to adopt these pronouncements when they become effective.
IFRS 16 Leases IFRS 16 replaces existing leases guidance including IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases—Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

The standard is effective for annual periods beginning on or after 1 January 2019.

Early adoption is permitted for entities that apply IFRS 15 at or before the date of initial application of IFRS 16.
IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees.

A lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments.

There are recognition exemptions for short-term leases and leases of low value items.

Lessor accounting remains similar to the current standard – i.e.

lessors continue to classify leases as finance or operating leases.
The Group is assessing the potential impact on its financial statements resulting from the application of IFRS 16.
The actual impact of applying IFRS 16 on the consolidated financial statements in the period of initial application will depend on future economic conditions, including the Group’s borrowing rate at 1 January 2019, the composition of the Group’s lease portfolio at that date, the Group’s latest assessment of whether it will exercise any lease renewal options and the extent to which the Group chooses to use practical expedients and recognition exemptions.

19