Note 33 Assets and liabilities held for sale and discontinued operations
On 24 March 2015, Alliander and Enexis signed heads of agreement on a transaction under which Enexis Holding would sell to Alliander Activabedrijf Enexis Friesland B.V. and Alliander would in turn sell Endinet Groep to Enexis. The Sale and Purchase Agreement (SPA) was signed on 27 July 2015 and the transaction took effect on 1 January 2016. Coincidentally with the signing of the heads of agreement, in compliance with IFRS 5, Endinet was classified in Alliander’s consolidated balance sheet as being held for sale with effect from 24 March 2015, with the corresponding classification of discontinued operations being applied in the consolidated income statement. The held-for-sale classification means that, with effect from 24 March 2015, all of Endinet’s assets and liabilities carried in Alliander’s consolidated balance sheet were reclassified to the balance sheet items ‘assets held for sale’ and ‘liabilities connected with the assets held for sale’. Depreciation charges relating to Endinet’s assets also ceased with effect from 24 March 2015. The financial effect amounts to €29 million (tax effect €7 million). Furthermore, all intercompany accounts between Alliander and Endinet were eliminated prior to recognition as ‘held for sale’ and ‘discontinued operations’. The discontinued-operations classification means that Endinet Groep’s consolidated net profit is recognised and reported in Alliander’s income statement.
Balance sheet
The total net assets include goodwill amounting to €36 million relating to Endinet's activities.
€ million | 2015 |
Assets | |
Non-current assets | |
Property, plant and equipment | 554 |
Intangible assets | 41 |
Non-current financial assets | 1 |
Total non-current assets | 596 |
Current assets | 17 |
Total assets | 613 |
Liabilities | |
Non-current liabilities | 88 |
Short-term liabilities | 7 |
Total liabilities | 95 |
Net assets | 518 |
Income statement
€ million | 2015 | |
Revenue | 95 | |
Other Income | 5 | |
Total income | 100 | |
Operating expenses | ||
Purchase costs and costs of subcontracted work | -14 | |
Employee benefit expenses | -21 | |
External personnel expenses | -2 | |
Other operating expenses | -8 | |
Total purchase costs, costs of subcontracted work and operating expenses | -45 | |
Depreciation and impairment of property, plant and equipment | -9 | |
Less: Own work capitalised | 5 | |
Total operating expenses | -49 | |
Operating profit | 51 | |
Finance income | - | |
Finance expense | - | |
Profit before tax | 51 | |
Tax | -13 | |
Profit after tax | 38 | |
Sale of the shares of Endinet Groep B.V.
Effective 1 January 2016, the shares of Endinet Groep B.V. were sold to Enexis. For the purposes of determining the book profit on the sale of the shares of Endinet Groep B.V., IFRS requires the fair value of Endinet to be measured. This was done on the basis of cash flows for the medium and long term, regulatory developments, outperformance effects and synergy gains. The fair value of Endinet Groep B.V. as at 1 January 2016 including the final settlement has been calculated at €708 million. The carrying amount of the assets and liabilities transferred to Enexis on the above basis was €518 million.
The book profit has been determined as follows:
€ million | |
Fair value Endinet | 708 |
Total net assets | -518 |
Contributions for personnel | -14 |
Book result | 176 |
The contribution for personnel related to the payment to be made by Alliander to Enexis in respect of the transfer of ‘Not Primarily Network’-related staff from Alliander/Endinet to Enexis. This is covered by separate agreements in the SPA.
The book profit is recognised in the result from discontinued operations in the income statement for 2016.