Incidental items
Alliander’s results can be affected by incidental items and fair value movements. Alliander defines exceptional 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 2022, exceptional items had a positive impact of €26 million on our net profit. In 2021, exceptional items provided a gain of €12 million. This means that the net profit adjusted for these exceptional items was €76 million lower than in 2021. The middle column in the table below shows the exceptional items, with an explanation below.
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 | |||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
Revenue | 2,150 | 2,120 | - | - | 2,150 | 2,120 |
Other income | 63 | 61 | 13 | 17 | 50 | 44 |
Total purchase costs, costs of subcontracted work and operating expenses | -1,658 | -1,634 | 10 | -10 | -1,668 | -1,624 |
Depreciation and impairments | -539 | -498 | - | -3 | -539 | -495 |
Own work capitalised | 294 | 305 | - | - | 294 | 305 |
Operating profit | 310 | 354 | 23 | 4 | 287 | 350 |
Finance income/(expense) | -53 | -45 | - | -4 | -53 | -41 |
Result from associates and joint ventures | 3 | 5 | 4 | 6 | -1 | -1 |
Profit before tax | 260 | 314 | 27 | 6 | 233 | 308 |
Tax | -62 | -72 | -1 | 6 | -61 | -78 |
Profit after tax from continuing operations | 198 | 242 | 26 | 12 | 172 | 230 |
Profit after tax from discontinued operations | - | - | - | - | - | - |
Profit attributable to minority interests | - | - | - | - | - | - |
Profit after tax | 198 | 242 | 26 | 12 | 172 | 230 |
Other income
(2022: €13 million; 2021: €17 million)
We sold our shares in our subsidiary Stam at the beginning of 2022, which produced a book profit of €13 million; this is recognised under ‘other income’.
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.
Total procurement costs, costs of subcontracted work and operating expenses
(2022: €10 million income, 2021: €10 million expense)
The exceptional income of €10 million in 2022 relates to the release of two provisions. One is a provision of €3 million made following a dispute concerning the past sale of an associate and the other is a provision for a loss-making contract at one of the subsidiaries. Part of this provision was also released to the benefit of the result in 2021. In addition, the exceptional expenses in 2021 of €10 million comprised the cost of organisational adjustments (€5 million) and the payment of €10 million paid under an earnout arrangement for the former shareholders in 450connect.
Depreciation and impairment
(2022: nil, 2021: €3 million)
The exceptional expenses in 2021 consisted of amortisation of the remaining goodwill at the time of the partial sale of our stake in 450connect.
Total finance income/expenses
(2022: nil, 2021: €4 million expense)
The exceptional expenses for 2021 of €4 million related to the early termination of two cross-border lease transactions.
Tax
(2022: €1 million income, 2021: €6 million income)
The income in 2022 is the result of the impact of the aforementioned exceptional items on corporate income tax (€1 million, 2021: €1 million). In addition, the exceptional income in 2021 comprised the revaluation of deferred tax assets of €5 million due to the announced increase in the corporate tax rate.
Profit/loss from associates
(2022: €4 million income, 2021: €6 million income)
The payment of €4 million from a trust office in which Alliander holds 100% of the depositary receipts for shares has been classified as exceptional income, which has been recognised as the result of the non-consolidated participating interest. The income item in 2021 followed from the revaluation of our remaining interest in 450connect following the partial sale of the shares.