Incidental items
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 2020, incidental items had a positive impact of €3 million on our net profit. In 2019, incidental items had a negative impact of €14 million. This means that in 2020 the net profit, adjusted for these incidental items, was €46 million lower than in 2019. 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
€ million | Reported | Incidental items and fair value movements | Excluding incidental items and fair value movements | |||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
Revenue | 2,009 | 1,930 | - | - | 2,009 | 1,930 |
Other income | 46 | 40 | - | - | 46 | 40 |
Total purchase costs, costs of subcontracted work and operating expenses | -1,550 | -1,399 | -19 | -17 | -1,531 | -1,382 |
Depreciation and impairments | -461 | -449 | - | -6 | -461 | -443 |
Own work capitalised | 275 | 257 | - | - | 275 | 257 |
Operating profit | 319 | 379 | -19 | -23 | 338 | 402 |
Finance income/(expense) | -41 | -52 | - | -4 | -41 | -48 |
Result from associates and joint ventures | 1 | 1 | - | - | 1 | 1 |
Profit before tax | 279 | 328 | -19 | -27 | 298 | 355 |
Tax | -55 | -76 | 22 | 13 | -77 | -89 |
Profit after tax from continuing operations | 224 | 252 | 3 | -14 | 221 | 266 |
Profit after tax from discontinued operations | - | - | - | - | - | - |
Profit attributable to minority interests | - | 1 | - | - | - | 1 |
Profit after tax | 224 | 253 | 3 | -14 | 221 | 267 |
Total procurement costs, costs of subcontracted work and operating expenses
(2020: €19 million expense, 2019: €17 million expense)
The incidental expenses in 2020 consist of the costs for organisational changes (€9 million) and the costs of a provision of €10 million for a loss-making maintenance contract in one of the business units. In 2019, the organisational changes resulted in an expense of €9 million, and the costs of the provision for a loss-making maintenance contract in one of the business units amounted to €8 million.
Depreciation and impairment
(2020: nil, 2019: €6 million expense)
There were no incidental expenses in 2020. The incidental expenses in 2019 consisted of impairment of assets, including a company building (€4 million).
Total finance income/(expenses)
(2020: nil, 2019: €4 million expense)
The incidental expenses in 2020 were zero. 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.
Tax
(2020: €22 million income, 2019: €13 million income)
The income in 2020 is the result of the impact of the previously mentioned incidental items on corporate income tax (€3 million, 2019: €4 million), but also, in particular, non-implementation of the reduction in corporate income tax rates announced in 2019. The deferred tax assets were revalued accordingly, leading to an income of €19 million in 2020 (2019: income of €9 million).