Alliander’s results can be affected by incidental items and fair value movements. Alliander defines incidental items as items that, in the management’s opinion, do not derive directly from the ordinary activities and/or whose nature and size are so significant that they must be considered separately to permit proper analysis of the underlying results. In 2019, incidental items had a negative impact of €14 million on our net profit. In 2018, incidental items provided a gain of €73 million. This means that in 2019 the net profit, adjusted for these incidental items, was €6 million higher than in 2018. A table listing the incidental items is shown below, along with the notes to these.
Reported figures and figures excluding incidental items and fair value movements
(2019: nil, 2018: €105 million income)
The incidental income in 2018 is related to the gain on the sale of Allego.
Total purchase costs, costs of subcontracted work and operating expenses
(2019: €17 million expense, 2018: €3 million expense)
The incidental expenses in 2019 consist of the costs for organisational changes (€9 million) and the costs of a provision for loss-making contracts in Germany of €8 million. The incidental expense in 2018 is made up of income of €5 million due to the impact of changes in the collective labour agreement and extra costs of €8 million arising from organisational changes.
Depreciation and impairment
(2019: €6 million expense, 2018: nil)
The incidental expenses in 2019 consist of impairment of assets, including for a company building (€4 million).
Total finance income/(expenses)
(2019: €4 million expense, 2018: nil)
The incidental expenses incurred in 2019 consist of the costs of the write-down on a long-term receivable (€4 million) relating to heating operations as a result of discontinuation of production.
(2019: €13 million income, 2018: €29 million expense)
The income in 2019 is the result of the impact of the previously mentioned incidental items on corporate income tax (€4 million), but also, in particular, changes in the government’s plans to amend corporate income tax rates. In 2018, the corporate tax rate was expected to be lowered from 2020 onwards, but revised plans have now postponed this. The revaluation of deferred tax assets leads to income of €9 million in 2019, while in 2018 there was still an expense of €29 million.