Note 47 Derivatives

Financing was raised in 2017 under the Euro Commercial Paper Programme, denominated in foreign currency. In order to eliminate currency risks, the foreign currency was immediately converted into euros by means of foreign exchange swaps.

Note 48 Contingent assets and liabilities

Pursuant to Section 403 Book 2, of the Netherlands Civil Code, Alliander has assumed liability for the obligations arising from the legal acts of several of the subsidiaries listed in the other information.

Note 49 Operating income

Revenue mainly comprises charges passed on for CDMA data communication network services. The other income chiefly relates to group-wide activities at holding company level.

Note 50 Costs of subcontracted work and other external expense

Note 51 Employee benefit expense

Staff costs mainly concerns the costs of group-wide activities at holding company level.

Note 52 Depreciation and amortisation

The amortisation of intangible assets is disclosed in the column headed ‘Other’.

Note 53 Other operating expenses

Costs passed on by group companies mainly concerns internal development projects at holding company level.

Note 54 Finance income

Alliander uses FX swaps to hedge the currency risk. The exchange differences arise from the effect which the movements in the US dollar exchange rate against the euro have on the finance raised in foreign currencies under the ECP Programme.

Note 55 Finance expense

The finance expense on loans from third parties was €3 million lower, mainly due to a repayment of €400 million and contracting of a loan of €300 million at a lower interest rate in 2016.

Note 56 Tax

The effective tax rate was 19.8%. The recognised tax expense of €10 million is made up of tax charges of €12 million for 2017 and a tax recovery totalling €2 million relating to investment incentive schemes.