Reclassified statement of financial position of the Group

Reclassified consolidated statements of financial position of the Terna Group at 31 December 2011, and 31 December 2010, obtained by reclassifying the figures shown in the consolidated statement of financial position, are presented below.

In millions of euros
At 31 December 2011 At 31 December 2010 Change
Net non-current assets      
Intangible assets and goodwill 470.9 470.6 0.3
Property, plant and equipment 8,618.2 7,802.6 815.6
Financial assets (1) 74.0 30.4 43.6
Total 9,163.1 8,303.6 859.5
Net working capital      
Trade receivables (2) 612.4 511.5 100.9
Inventories 16.3 11.4 4.9
Other assets (3) 14.9 16.2 (1.3)
Trade payables (4) 705.0 480.6 224.4
Payables for pass-through energy items, net (5) 247.0 77.3 169.7
Net tax liabilities (6) 121.5 68.3 53.2
Other liabilities (7) 294.3 294.2 0.1
Total (724.2) (381.3) (342.9)
Gross invested capital 8,438.9 7,922.3 516.6
Sundry provisions (8) 564.8 599.0 (34.2)
Net invested capital in continuing operations 7,874.1 7,323.3 550.8
Net invested capital in discontinued operations and assets held for sale 0.0 398.8 (398.8)
Total net invested capital 7,874.1 7,722.1 152.0
Equity attributable to owners of the Parent 2,751.0 2,773.2 (22.2)
Equity attributable to non-controlling interests 0.0 0.2 (0.2)
Actual net financial debt from continuing operations* (9) 5,123.1 4,722.4 400.7
Net financial debt from continuing operations 5,123.1 4,977.0 146.1
Net financial debt from discontinued operations and assets held for sale 0.0 (28.3) 28.3
TOTAL NET FINANCIAL DEBT 5,123.1 4,948.7 174.4
Total 7,874.1 7,722.1 152.0
*At 31.12.2010, includes the net cash position with regard to RTR (€254.6 million).
Reported in the consolidated statement of financial position as: (1) “Equity-accounted investees”, “Other non-current assets” and “Non-current financial assets” for the carrying amount of the other investments (€0.6 million); (2) “Trade receivables” net of the receivables for energy-related pass-through revenue (€1,077.8 million); (3) “Other current assets” net of other tax assets (€11.1 million) and “Current financial assets” in relation to the amount of deferred financial assets (€5.5 million); (4) “Trade payables” net of the payable for energy-related pass-through costs (€1,324.8 million); (5) “Trade receivables” for the value of receivables for pass-through energy revenue (€1,077.8 million) and “Trade payables” for the value of payables for pass-through energy costs (€1,324.8 million); (6) “Income tax assets”, “Other current assets” for the value of other tax receivables (€11.1 million), “Other current liabilities” for the value of other tax payables (€20.5 million) and “Income tax liabilities”; (7) “Other non-current liabilities”, “Current financial liabilities” and “Other current liabilities” net of other tax liabilities (€20.5 million); (8) “Employee benefits”, “Provisions for risks and charges” and “Deferred tax liabilities”; (9) “Long-term loans”, “Current portion of long-term loans”, “Non-current financial liabilities”, “Cash and cash equivalents”, “Non-current financial assets” for the value of FVH derivatives (€521.8 million) and “Current financial assets” for the value of the deposit certificates (€150.0 million).

The increase in net fixed assets amounting to €859.5 million with respect to the figures at 31 December 2010 is mainly due to the item property, plant and equipment (amounting to €815.6 million), mainly as a result of the joint effect of:

  • investments for €1,178.1 of which €1,168.7 in core business;
  • amortisation and depreciation for the year of €343.3 million.

Intangible assets and goodwill show a balance that is basically in line with the previous financial year (+€0.3 million) as a result of the combination of:

  • investments in the year for €51.1 million (of which €34.4 million in dispatching infrastructures);
  • amortisation in the year (€50.8 million including, in particular, €25.1 million for the amortisation of dispatching infrastructures and €5.6 million for the amortisation of the concession).

Please remember that this caption includes the net carrying amount of the infrastructures used by the dispatching service totalling €140.9 million at 31 December 2011 (compared with €131.5 million at 31 December 2010).

The Group’s total investments in core business in 2011 amount to €1,219.8 million, up 5% on the same figure for 2010.

Financial assets post an increase of €43.6 million, mainly deriving from the acquisition of the equity interest in the associate CGES (€36 million) and the adjustment to shareholders’ equity at the year-end for the associate CESI (€7.1 million) of which the Group acquired a further shareholding during the financial year (for a total of +2.5%).

Net working capital stands at a negative €724.2 million and has generated liquidity for €342.9 million, essentially due to the combined effect of:

  • increases in trade payables (€224.4 million) for the increase in investing activities during the last period of the financial year and also as a result of the payments made during the first few days of the next financial year;
  • an increase in net trade payables and receivables for electricity dispatching services of the Parent Company, which generated cash totalling €169.7 million, in particular due to:
    • increase in payables relating to the capacity payment (€110.8 million);
    • increase in payables linked to the essential production units for the safety of the electrical system (€84.7 million).
  • increase in net tax payables (€53.2 million) due to the tax authority for:
    • greater current taxes (€46.9 million);
    • net VAT payable (€11.2 million);
    • net of the greater credits and withholdings on interest accrued on financial assets for €4.5 million;
  • increase in trade receivables, amounting to €100.9 million, mainly referring to the price for transmission activities, for €51.9 million, mainly as a result of the recognition of the receivable due from CCSE related to the “mitigation” mechanism in consumption established by Resolution ARG/elt 188/08, for the adjustment of the receivable for the incentive connected with the reduction in volumes provisioned on the Market for Dispatching Services (€66 million) and with the quality of the transmission service (€7.7 million); these changes have been partly offset by the income received during the financial year in relation to receivables ascertained in 2009 for said incentive (Market for Dispatching Services).

Gross invested capital therefore amounted to €8,438.9 million, up by €516.6 million on the previous financial year.

Other provisions fell by €34.2 million, mainly due to:

  • the partial release of the provision set aside in 2009 (€33.8 million at 31 December 2010) for contractual obligations maturing during the financial year, deriving from the sale of the controlling stake in Terna Participações;
  • recording of the deferred tax asset on the change of the fair value associated with the derivative cash flow hedging instruments for €24.4 million;
  • accrual for deferred tax assets for tax recognition of the goodwill recorded on the consolidated financial statements arising from the acquisition of the subsidiary Terna Rete Italia S.r.l. (formerly TELAT) established by Italian Law Decree no. 98 of 6 July 2011 (amounting to €39.8 million);
  • utilisation of prior period allocations covering the accelerated depreciation recorded by the parent Terna and the subsidiary Terna Rete Italia (€39.1 million and €3.3 million respectively);

partially offset by the adjustment (equal to approximately €72.6 million) of the balances for net deferred tax liabilities for the start of the year, by virtue of the additional IRES (the “Robin Hood Tax”) and also by the accruals for probable expenses connected with the sale of Nuova Rete Solare S.r.l. and Rete Rinnovabile S.r.l. (€30.7 million and €11.9 million respectively).

Net invested capital in continuing operations and comprehensive net invested capital stand at €7,874.1 million, up respectively by €550.8 million with respect to the net invested capital in continuing operations at 31 December 2010 and €152 million with respect to comprehensive net invested capital at 31 December 2010.

Comprehensive net invested capital is financed through the Group’s shareholders’ equity for €2,751 million, as against €2,773.4 million at 31 December 2010, and the net financial debt for €5,123.1 million (€400.7 million on the actual net financial debt from continuing operations, which at 31 December 2010 included the net cash position with regard to RTR, amounting to €254.6 million).

The debt/equity ratio (total net financial debt/shareholders’ equity) stands at 1.86.