Unaudited condensed consolidated interim financial statements for the first half-year 2015

Transcription

1 Unaudited condensed consolidated interim financial statements for the first half-year 2015 Eurogrid GmbH Berlin Page 1 of 14

2 Consolidated income statement EUR m 1 January to 30 June January to 30 June 2014 Revenue 4, ,701.4 Cost-matching income (4,263.5) (4,210.8) Revenue from grid business and other revenue Other income Cost of materials, services and other goods (4,695.4) (4,502.3) Income-matching costs 4, ,210.8 Cost of materials, services and other goods from grid business (431.9) (291.5) Personnel expenses (43.9) (38.5) Depreciation, amortization, impairment (42.2) (38.3) Changes in provisions Other expenses (0.9) (0.5) Share of profit of equity accounted investees (0.5) (0.3) Profit before interest and taxes Financial result (7.4) (4.6) Finance income Finance expenses (8.5) (6.2) Profit before tax Income taxes (39.8) (43.4) Group profit for the period Consolidated statement of comprehensive income EUR m 1 January to 30 June January to 30 June 2014 Group profit for the period Other comprehensive income (OCI): Items that will not be reclassified to the income statement in the future: Actuarial gains and losses - - Deferred taxes on changes recognized directly in equity Other comprehensive income after taxes Total other comprehensive income The entire total comprehensive income disclosed is attributable to Eurogrid International. Page 2 of 14

3 Consolidated statement of financial position EUR m 30 June December 2014 Non-current assets 2, ,743.7 Property, plant and equipment 2, ,682.4 Intangible assets Trade and other receivables Other financial assets Investments accounted for using the equity method Deferred tax assets Current assets 2, ,406.9 Inventories Trade and other receivables 1, Receivables from income taxes Cash and cash equivalents 1, Anticipatory assets TOTAL ASSETS 5, ,150.6 EUR m 30 June December 2014 Equity 1, ,169.0 Issued capital* Reserves 1, ,012.5 Retained earnings Non-current liabilities 1, Loans and borrowings 1, Provisions for employee benefits Other provisions Deferred tax liabilities Other liabilities Current liabilities 2, ,799.9 Loans and borrowings Other provisions Trade and other liabilities 2, ,743.7 Liabilities from income taxes Accrued charges and deferred income Regulatory items Total equity and liabilities 5, ,150.6 * Eurogrid GmbH s issued capital remains unchanged at EUR 25,000. Page 3 of 14

4 Consolidated statement of changes in equity Total Issued capital comprehensive Reserves (*) income for the Total EUR m period As of 1 January ,107.2 Group profit Other comprehensive income Total other comprehensive income Dividend - - (96.7) (96.7) Reclassifications (69.7) 0.0 As of 30 June , ,111.7 Total Issued capital comprehensive Reserves (*) income for the Total EUR m period As of 1 January , ,169.0 Group profit Other comprehensive income Total other comprehensive income Dividend - - (98.7) (98.7) Reclassifications (61.9) 0.0 As of 30 June , ,162.8 * Eurogrid GmbH s issued capital remains unchanged at EUR 25,000. Page 4 of 14

5 Consolidated statement of cash flows EUR m Cash flows from operating activities 1 January to 30 June January to 30 June 2014 Profit for the period Adjustments for: Net finance expenses Income tax expense Depreciation of property, plant and equipment and amortisation of intangible assets Gain on sale of property, plant and equipment and intangible assets Impairment losses of current assets Changes in provisions 0.8 (9.8) Changes in deferred taxes 19.9 (9.6) Share of profit of investments in equity-accounted investees Changes in inventories (0.6) 0.2 Changes in trade and other receivables (585.7) (291.0) Changes in trade and other payables Changes in regulatory items (116.2) 29.6 Changes in working capital Interest paid (1.1) (9.4) Interest received Income tax paid (16.3) (77.8) Cash flow from operating activities Cash flow from investing activities Acqusition of property, plant and equipment and intangible assets (178.5) (125.9) Acquisition of investments recognised at cost (10.5) (5.0) Acquisition of equity accounted investments - (2.5) Proceeds from sale of property, plant and equipment Cash flow from investing activities (188.6) (133.1) Cash flow from financing activities Dividends paid (98.7) (96.7) Cash received for the issue of a registered bond Borrowings Cash flow from financing activities (96.6) Change in cash and cash equivalents Cash and cash equivalents as of 1 January Cash and cash equivalents as of 30 June 1, Change in cash and cash equivalents Page 5 of 14

6 Notes to the condensed consolidated interim financial statements for the first half-year 2015 Unaudited condensed consolidated interim financial statements of Eurogrid GmbH Berlin Page 6 of 14

7 Table of contents 1. Basic information Summary of significant accounting policies Seasonal fluctuations Selected explanations on the consolidated statement of financial position Segment reporting Distribution of profit Contingent liabilities and other financial obligations Related party disclosures Subsequent events...14 Page 7 of 14

8 1. Basic information Eurogrid GmbH, Berlin (hereafter Eurogrid or the Company ), is a limited liability company founded in accordance with the law of the Federal Republic of Germany. Via the shareholder Eurogrid International CVBA/SCRL (Eurogrid International), Brussels, Belgium, the Belgian transmission system operator Elia System Operator NV/SA (Elia) and Global InfraCo S.à.r.l., Luxembourg, Luxembourg have shareholdings in the Company. The ultimate parent company is Elia System Operator NV/SA. As a parent company domiciled in Germany, Eurogrid is required to prepare consolidated financial statements within the meaning of Sec. 315a HGB [ Handelsgesetzbuch : German Commercial Code]. Eurogrid has its registered office at Berlin, Eichenstrasse 3A, and is filed in the commercial register of the Berlin-Charlottenburg district court under HRB Eurogrid invests in electric grid infrastructure and holds 100% of the shares in 50Hertz Transmission GmbH. The Group consists of Eurogrid, 50Hertz Transmission and 50Hertz Offshore GmbH (50Hertz Offshore) as well as the participations and equity-accounted investee of 50Hertz Transmission. The Group is responsible for the operation, maintenance, planning and expansion of the 380/220 kilovolt transmission grid in eastern Germany, Berlin and Hamburg. 2. Summary of significant accounting policies The condensed consolidated interim financial statements for the first half-year of 2015 have been prepared in accordance with International Financial Reporting Standards (IFRS) on interim financial reporting (IAS 34), as endorsed by the European Commission for application within the EU. In line with IAS 34.10, the Company decided to publish a set of condensed financial statements. All figures - unless otherwise stated - are expressed in million euros (EUR m). The accounting policies applied in these condensed consolidated interim financial statements are the same as those described in the consolidated financial statements of the Company as of and for the year ended December 31, For further information, please refer to the 2014 Group s Annual Report, which contains the consolidated financial statements of the Company as of and for the year ended December 31, Page 8 of 14

9 3. Seasonal fluctuations The Group s revenues are affected by the seasonality of its operations as its main activity is the transmission of electricity and the operations regarding renewable energies which can be highly affected by weather conditions and thus have a material impact on the course of business. On an annual basis, the Group s revenues are not cyclical. 4. Selected explanations on the consolidated statement of financial position The increase in property, plant and equipment is mainly caused by the ongoing investment activities of the group concerning the grid connection of Baltic 2, preparations for further offshore grid connections as well as various onshore projects. In the first half-year of 2015, 50Hertz Transmission bought further shares in the European Energy Exchange (EEX) for an amount of EUR 10.5m. 50Hertz Transmission now holds 8.7% of share in the EEX for an amount of EUR 21.0m. On 2 nd June 2015 Eurogrid issued an additional Bond as part of the Debt Issuance Programme on the Luxembourg Stock Exchange with a nominal amount of EUR 500m. The coupon is 1.875% with ten years maturity. Correspondingly cash and cash equivalents as well as loans and borrowings increased in the first half of the year The recently issued bond is measured at amortized cost using the effective interest method. The expected cash-outflows for unsecured bonds will increase in total by EUR 594m. The bond is repayable at maturity date. The bonds had a fair value of in total EUR 1,053.5m on the reporting date. The fair value is the market value as of the reporting date. Interest on the 1 st bond is paid in October, on the 2 nd bond in June and accrued for during the rest of the year; this leads to a higher amount of accrued interests during the first half-year than at year-end. Page 9 of 14

10 5. Segment reporting Segment reporting is performed in line with the Group s reporting and organizational structure underlying its internal management reporting system. The Segment reporting comprises the reportable segments Non-profit business and Grid business. The ultimate decision body for the allocation of resources is Eurogrid International s board of directors. The board of directors assesses the result of the business segments on the basis of net profit (group profit). The segment Non-profit business primarily comprises, based on the EEG and its regulations, the marketing on the electricity exchange of renewable energy feed-in volumes remaining after deliveries to other transmission system operators for settling the burdens on the transmission system operators stemming from the EEG. The costs not covered by sales income are compensated for by levying an annually constant and standard nationwide EEG levy to the electricity distributors. Furthermore, this segment also reports services rendered for third parties which do not have any impact on earnings for the Group with the exception of any agreed fees for services. The allocation procedure in accordance with the KWKG ( Kraft-Wärme-Kopplungsgesetz : German Combined Heat and Power Act) as well as system services rendered for other transmission system operators also do not have any impact on earnings for the Group and are reported within this segment. According to Sec. 19(2) StromNEV, ultimate consumers may, under certain circumstances, apply for individual grid fee agreements. Beside the introduction of a standard nationwide levy to compensate individual grid fees, the same invoicing mechanism as Sec. 9 KWKG has been adopted in Sec. 19 StromNEV. The entire invoicing process has to be shown as non-profit in the accounts of the system operator. According to Sec. 17(f) EnWG ( Energiewirtschaftsgesetz : German Energy Industry Act), transmission system operators may, under certain circumstances, apply for a compensation for costs incurred by disruption, delay or maintenance on offshore plants. In 2013 a surcharge mechanism has been established to allocate financial resources to the TSOs. This process is fully neutral and also part of the non-profit business. The act on interruptible loads ( Verordnung zu abschaltbaren Lasten ) obliges transmission system operators to perform monthly tenders to buy breaking capacities for a total amount of 3,000MW. The costs incurred are subject to a compensation scheme in accordance to Sec. 9 KWKG. The segment Grid business primarily comprises grid provision and grid management as well as balancing group management. The segment figures have been determined in accordance with the Group s accounting policies. Net profit (group profit) was chosen as the segment result. Page 10 of 14

11 Segment reporting by business segment for the period from 01 January 2014 to 30 June 2014 (in EUR m) Non-profit business Grid business Total Revenue 4, ,701.4 Other income Cost of materials, services and other goods (4,210.8) (291.5) (4,502.3) Personel expenses - (38.5) (38.5) Depreciation, amortization and changes in provisions - (29.6) (29.6) Other expenses - (0.5) (0.5) Share of profit in equity-accounted investees - (0.3) (0.3) Net finance expenses - (4.6) (4.6) Finance income Finance expenses - (6.2) (6.2) Profit before tax Income taxes - (43.4) (43.4) Profit for the period from continuing operations Group profit for the period Segment reporting by business segment for the period from 01 January 2015 to 30 June 2015 (in EUR m) Non-profit business Grid business Total Revenue 4, ,899.0 Other income Cost of materials, services and other goods (4,263.5) (431.9) (4,695.4) Personel expenses - (43.9) (43.9) Depreciation, amortization and changes in provisions - (40.8) (40.8) Other expenses - (0.9) (0.9) Share of profit in equity-accounted investees - (0.5) (0.5) Net finance expenses - (7.4) (7.4) Finance income Finance expenses - (8.5) (8.5) Profit before tax Income taxes - (39.8) (39.8) Profit for the period from continuing operations Group profit for the period Page 11 of 14

12 Segment reporting by business segment 31 December 2014 Non-profit business Grid business Total Non-current assets 2, ,743.7 Current assets ,406.9 Non-current liabilities Current liabilities 1, ,799.9 Equity and regulatory items 1, ,566.2 Segment reporting by business segment 30 June 2015 Non-profit business Grid business Total Non-current assets 2, ,900.7 Current assets 1, , ,472.4 Non-current liabilities 1, ,295.8 Current liabilities 2, ,627.3 Equity and regulatory items 1, , Distribution of profit A dividend of EUR 98.7m relating to the fiscal year 2014 was paid to Eurogrid International in the interim reporting period. Page 12 of 14

13 7. Contingent liabilities and other financial obligations Contingencies We currently do not expect any risk of claims relating to contingent liabilities to arise. Other financial obligations On 30 June 2015, there was a purchase obligation for investments and maintenance measures of EUR 1,410.7m (31 December 2014: EUR 1,061.5m). 8. Related party disclosures Controlling entities: Via Eurogrid International CVBA/SCRL, Elia System Operator NV/SA (Elia: 60% shareholding) and Global InfraCo S.à.r.l., Luxembourg, Luxembourg (40% shareholding) together hold 100% of the shares in Eurogrid. No material business transactions were settled with Global InfraCo, or the administrative investment company IFM Investors in the first half-year Various service agreements have been in place between Elia and 50Hertz Transmission GmbH since Costs for consulting projects and other services are also cross-charged. In the first half-year 2015 expenses incurred in the amount of EUR 3.1m. This also generated revenues of EUR 0.2m for the Group. Receivables and liabilities each in the amount of EUR 0.5m were recognized on the reporting date. The Group distributed a dividend of EUR 98.7m (prior half-year: EUR 96.7m) to Eurogrid International in the first half-year. No other transactions with Eurogrid International took place that had material effects on the Group s financial position and result. Subsidiaries of the controlling companies outside the Group: Eurogrid International holds 100% of the shares in GridLab GmbH, Cottbus (GridLab). On 30 June 2011, Eurogrid granted a loan of EUR 1.4m to GridLab which is due on 30 June On the reporting date the Group has a liability to GridLab from cash-pooling for an amount of EUR 0.6m (31 December 2014: EUR 0.5m). Associates: 50Hertz Transmission holds 49,99% of the shares in EGI and consolidates this entity at equity. Assets under construction based on service agreements with EGI for consulting and engineering services in the area of grids and system services have been recognized in the amount of EUR 16.2m as of the end of the first half-year Furthermore various service agreements have been in place between EGI and 50Hertz. Page 13 of 14

14 9. Subsequent events Up to the date of preparing the condensed consolidated interim financial statements, no significant transactions were performed which had an effect on the Group s financial position and performance in the reporting period. Berlin, 19 October 2015 The management of Eurogrid GmbH Kerschl Schockaert Page 14 of 14