Reclassified income statement

in
In millions of euros 2009 2008 Change %
Revenue        
Grid transmission fees (1) 1,185.6 1,060.5 125.1 11.8%
Other energy items(1) 91.5 48.4 43.1 89.0%
Other revenue from sales and services (1) 40.2 43.1 -2.9 -6.7%
Other revenue and income 43.4 43.8 -0.4 -0.9%
Total revenue 1,360.7 1,195.8 164.9 13.8%
Operating expenses     
Personnel expense 181.6 201.2 -19.6 -9.7%
Services and use of third-party assets 128.0 110.7 17.3 15.6%
Materials 10.2 11.8 -1.6 -13.6%
Other expenses (2) 37.7 21.7 16.0 73.7%
Total operating expenses 357.5 345.4 12.1 3.5%
EBITDA 1,003.2 850.4 152.8 18.0%
Amortisation and depreciation (3) 308.8 253.5 55.3 21.8%
EBIT 694.4 596.9 97.5 16.3%
Net financial income/(expense) (4) -148.3 -121.8 -26.5 21.8%
Profit before taxes 546.1 475.1 71.0 14.9%
Income taxes 192.1 174.6 17.5 10.0%
Profit from continuing operations 354.0 300.5 53.5 17.8%
Profit for the year from discontinued operations and assets held for sale 417.0 40.9 376.1 919.6%
Profit for the year 771.0 341.4 429.6 125.8%
Attributable to the shareholders of the Parent 771.0 327.5 443.5 135.4%
Attributable to minority interests 0.0 13.9 -13.9 -100.0%

In the income statement:
(1) this figure is included in “Revenue from sales and services”;
(2) corresponds to “Other operating expenses” and “Amortisation, depreciation and impairment losses” for the impairment of non-current assets
(€3.7 million) and the accrual to the provision for bad debts (€14.1 million);
(3) corresponds to “Amortisation, depreciation and impairment losses” net of the impairment of non-current assets (€3.7 million) and the accrual
to the provision for bad debts (€14.1 million);
(4) corresponds to the balance of the items described under points 1, 2 and 3 of “C. Financial income/expense”.

For comments on the main changes in revenue and expenses for the Parent, see the section “Terna S.p.A. performance and financial position” above. However, in the interests of full disclosure, the following should also be noted.

Revenue for 2009, in the amount of €1,360.7 million (€1,261.2 million for the Parent and €99.5 million for TELAT), increased by €164.9 million (+13.8% over the €1,195.8 million of 2008). In particular:

  • the increase in grid transmission fees (€125.1 million) is related to the Parent in the amount of €27.4 million and to the contribution from the acquisition of TELAT in the amount of €97.7 million, which is related to the remuneration for the last nine months of the year for RTN’s portion owned by the Company as per AEEG Resolution no. 31/09 (€93.3 million) and to the effects of the mitigation mechanism established by Resolution no. 188/08 (€4.4 million);
  • the €43.1 million increase in other energy items is related entirely to the Parent;
  • the change in other sales and services (a decline of €2.9 million) is essentially related to the Parent (€3 million, taking account of the Group’s insourcing of plant service and maintenance contracts signed with the subsidiary TELAT for the last nine months of the year, which were recognised in relation to Enel Distribuzione during the previous year);
  • the reduction in other revenue and income (€0.4 million) is related to the Parent in the amount of €2.1 million, which was partially offset by the contribution of the acquisition of TELAT in the amount of €1.7 million, relating essentially to the contract with the Wind Group and Enel Distribuzione for the housing of fibre optic cables for the networks owned with regard to the last nine months of the year.

Operating expenses for 2009, in the amount of €357.5 million (€353.2 million for the Parent and €4.2 million for TELAT, as well as €0.1 million for SunTergrid), increased by €12.1 million (+3.5% over the €345.4 million of 2008). In particular:

  • the reduction in “Personnel expense” (€19.6 million) is entirely attributable to the Parent (taking account of capitalised personnel expense in the amount of €0.7 million related to the investments made in favour of TELAT);
  • the increase in “Services and the use of third-party assets” (€17.3 million) is related mainly to the Parent in the amount of €15.6 million, as well as the contribution of the acquisition of TELAT in the amount of €1.6 million;
  • the reduction in the consumption of “Materials” (€1.6 million) is entirely attributable to the Parent (taking account of capitalised costs for materials related to the investments made in favour of SunTergrid and TELAT in the amount of €5.0 million and €2.5 million, respectively);
  • the increase in “Other expenses” (€16.0 million) is related to the Parent in the amount of €13.4 million and to TELAT in the amount of €2.6 million, which is related mainly to capital losses (€0.6 million) and local taxes and duties (€1.0 million).

EBITDA (gross operating profit) for the year reached €1,003.2 million, rising by €152.8 million over the €850.4 million of 2008 (+18.0%). The subsidiary TELAT contributed €95.3 million to this total. The EBITDA margin came to 73.7%, for an increase of 3 percentage points from 2008.

Amortisation and depreciation for the year rose by €55.3 million from 2008 (+21.8%); of this increase, €25.9 million is attributable to the Parent and €29.4 million to the contribution of TELAT for the last nine months of the year.

Therefore, EBIT (operating profit) for the year reached €694.4 million, rising by €97.5 million over the €596.9 million of 2008 (+16.3%). The subsidiary TELAT contributed €65.9 million to this total.

The increase in net financial expense (€26.5 million) is related entirely to the Parent and was partially offset by the increase in gains on the measurement at equity of CESI and ELMED ÉTUDES in the amount of €0.6 million compared with the related measurement for the previous year.

Income taxes for the year totalled €192.1 million, €179.5 million for the Parent and €12.6 million for the subsidiaries (a negative €3.8 million of which for net deferred taxes). The effective tax rate on profits from continuing operations came to 35.2%, compared with 36.8% for 2008 (the taxes related to the sale of Terna Participações are included under “Profit for the year from discontinued operations and assets held for sale”).

Profit for the year from discontinued operations came to €417.0 million and included:

  • the gain on the sale of the Brazilian subsidiaries, net of the costs of the sale and the hedging derivatives, as well as of the taxes and other costs directly attributable to the transaction, in the amount of €305.0 million;
  • the release of the translation reserve accrued through the date of sale in the amount of €68.4 million;
  • the contribution, at the consolidated level, of the results of the Brazilian subsidiaries for 2009 and accrued through the date of sale in the amount of €43.6 million. For the full year 2008, the consolidated figure related to the Brazilian subsidiaries was €40.9 million.

Profit for the year, which is attributable entirely to the shareholders of the Parent, reached €771.0 million, for an increase of €443.5 million (+135.4%) over the same figure of the previous year (€327.5 million).