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 2021, exceptional items had a positive impact of €12 million on our net profit. In 2020, exceptional items provided a gain of €3 million. This means that the net profit, adjusted for these exceptional items, was €9 million higher than in 2020. 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 | |||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
Revenue | 2.120 | 2.009 | - | - | 2.120 | 2.009 |
Other income | 61 | 46 | 17 | - | 44 | 46 |
Total purchase costs, costs of subcontracted work and operating expenses | -1.634 | -1.550 | -10 | -19 | -1.624 | -1.531 |
Depreciation and impairments | -498 | -461 | -3 | - | -495 | -461 |
Own work capitalised | 305 | 275 | - | - | 305 | 275 |
Operating profit | 354 | 319 | 4 | -19 | 350 | 338 |
Finance income/(expense) | -45 | -41 | -4 | - | -41 | -41 |
Result from associates and joint ventures | 5 | 1 | 6 | - | -1 | 1 |
Profit before tax | 314 | 279 | 6 | -19 | 308 | 298 |
Tax | -72 | -55 | 6 | 22 | -78 | -77 |
Profit after tax from continuing operations | 242 | 224 | 12 | 3 | 230 | 221 |
Profit after tax from discontinued operations | - | - | - | - | - | - |
Profit attributable to minority interests | - | - | - | - | - | - |
Profit after tax | 242 | 224 | 12 | 3 | 230 | 221 |
Sale of 450connect
The sale of part of our shareholding in 450connect GmbH had a positive impact of €10 million on our net profit in 2021. The effect is reflected in the revenue, other operating expenses, depreciation and the profit/loss from associates. These are disclosed below.
€ million | |
Other income | 17 |
Operating expenses | -10 |
Depreciation | -3 |
Profit/loss of associates and joint ventures | 6 |
Net profit | 10 |
Other income
(2021: €17 million, 2020: zero)
In 2021, the sale of part of our shareholding in 450connect GmbH had a positive impact of €17 million on other income.
Total procurement costs, costs of subcontracted work and operating expenses
(2021: €10 million; 2020: €19 million)
The net exceptional expenses in 2021 of €10 million comprised organisational adjustment costs (€5 million), compensation of €10 million paid under an earn-out arrangement for the former shareholders at 450connect and income resulting from the release of the provision for a loss-making maintenance contract in one of the business units. In 2020 an expense of €10 million was recognised for this. In addition, the exceptional expenses in 2020 included organisational adjustment costs of €9 million.
Depreciation and impairment
(2021: €3 million, 2020: zero)
The exceptional expenses in 2021 consisted of depreciation of the remaining goodwill at the time of the partial sale of our stake in 450connect.
Total finance income/(expenses)
(2021: €4 million expense, 2020: zero)
The exceptional expenses for 2021 of €4 million relate to the early termination of two CBL transactions. In 2020, the exceptional expenses were zero.
Tax
(2021: €6 million income, 2020: €22 million income)
The income item in 2021 is the result of the impact of the previously mentioned exceptional items on corporate income tax (€1 million, 2020: gain of €3 million), and the notified increase in the corporate income tax rate. The deferred tax assets and liabilities were revalued accordingly, leading to a tax gain of €5 million. In 2020, revaluation of deferred tax assets and liabilities also led to a tax gain of €19 million.
Profit/loss from associates
(2021: €6 million income, 2020: zero)
The income item in 2021 follows from the revaluation of our remaining interest in 450Connect following the partial sale of the shares.