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Items in the consolidated statement of profit or loss and other comprehensive income
Besides the adoption of IFRS 16 as from 1 January 2019, there were no changes in the basis of preparation and therefore no restatements of figures from previous years were required.
(in € million) 2020 Revenue 858.1 Grid revenue: 848.2 Last mile connection 2.8 Other revenue 7.1 Net income (expense) from settlement mechanism 89.1 Other income 66.9 Services and technical expertise (1.5) Own production 21.6 Optimal use of assets 14.5 Other 31.6 Gain on sale PPE 0.6
We refer to the segment reporting for a detailed analysis of the Group’s recognised revenues at segment level. The Elia Transmission (Belgium) segment reported revenues and other income of €1,004.7 million (Note 4.2) and the ‘Non-regulated activities and Nemo Link’ segment reported revenues and other income of €9.4 million (Note 4.3). The reported revenues and other income amounts to €1,014.1 million.
The potential impact of Covid-19 on the revenues has been disclosed in the segment reporting. (Note 4)
The Group’s own production relates to time spent on investment projects by Group employees.
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Operating expenses
COST OF MATERIALS, SERVICES AND OTHER GOODS
(in € million)
2020 2019
Raw materials, consumables and goods for resale 6.5 0.0
Purchase of ancillary services 153.5 0.0
Services and other goods (excl. purchase of ancillary services) 241.6 0.1 Total 401.7 0.1
‘Purchase of ancillary services’ includes the costs for services which enable the Group to balance generation with demand, maintain constant voltage levels and manage congestion on its grids.
‘Services and other goods’ relates to maintenance of the grid, services provided by third parties, insurance and consultancy, and others.
PERSONNEL EXPENSES
(in € million) 2020
Salaries and wages 113.2 Social security contributions 29.4 Pension costs 21.0 Other personnel expenses 4.4 Share based payments expenses 1.4 Employee benefits (excl. pensions) (1.6)
Total 167.8
In December 2020, the first tranche of the 2020 capital increase for Elia employees was completed. The capital increase resulted in the creation of 499,640 additional shares without nominal value. The Group's employees were granted a 16.66% reduction on the quoted share price, which resulted in a €1.4 million reduction overall.
Total 2020 personnel expenses for Elia Transmission (Belgium) amounted to €162.3. The non-regulated activities and Nemo Link accounted for €5.4 million.
For more information about pension costs and employee benefits, see Note 6.14, ‘Employee benefits’.
DEPRECIATION, AMORTISATION, IMPAIRMENT AND CHANGES IN PROVISIONS
(in € million) 2020 Amortisation of intangible assets 9.6 Depreciation of property, plant and equipment 177.4 Total depreciation and amortisation 187.1 Impairment of inventories and trade receivables 0.1 Total impairment 0.1 Environmental provisions (0.4) Changes in provisions 1.1 Total 188.3
A detailed description and movement schedule is provided in other sections for 'Intangible assets' (see Note 6.2), 'Property, plant and equipment' (see Note 6.1) and 'Provisions' (see Note 6.15).
OTHER EXPENSES
(in € million) 2020
Taxes other than income tax 12.7 Loss on disposal/sale of property, plant and equipment 9.0 Impairment on receivables 0.1 Other 0.2
Total 22.1
Taxes other than income tax mainly consist of property taxes. The amount of impairment on trade receivables is explained in Note 8.1, ‘Financial risk and derivative management’.
Net finance costs
(in € million)
2020 Finance income 2.3
Interest income on cash and cash equivalents and granted loans (0.0) Other financial income 2.3
Finance costs (75.3) Interest expense on eurobonds and other bank borrowings (58.0) Interest expense on derivatives (5.2) Interest cost on leasing (0.7) Other financial costs (11.4) Net finance costs (72.9)
See note 6.13 for more details regarding the loans outstanding and the interest paid in 2020.
The interest rate swaps related to other loans (a loan with Synatom for €453.6 million) and the loan with Publi-Part (€42.1 million) were settled end of June 2020 with the repayment of both loans. With the settlement, an interest expense on derivatives of €4.4 million was incurred.
For more details of net debt and loans, see Note 6.13.
Income taxes
RECOGNISED IN PROFIT OR LOSS
The consolidated income statement includes the following taxes:
(in € million)
2020
Current year 42.6 Adjustments for prior years 1.5
Total current income tax expenses 44.2
Origination from and reversal of temporary differences (0.1)
Total deferred taxes expenses (0.1) Total income taxes and deferred taxes recognised in profit and loss 44.1
RECONCILIATION OF THE EFFECTIVE TAX RATE
The tax on the Group's profit (loss) before tax differs from the theoretical amount that would arise using the Belgian statutory tax rate applicable to profits (losses) of the consolidated companies:
(in € million)
2020
Profit before income tax 170.6
Income tax expense 44.1 Income tax, using the domestic corporate tax rate 42.7 Domestic corporate income tax 25.00% Share of profit of equity-accounted investees (2.3) Non-deductible expenses 2.2 Adjustments for prior years 1.5 Tax shelter investments (0.4) Other 0.4 Income tax expense 44.1
The income tax expense is higher than the theorethical income tax expense (calculated using the nominal tax rate) due to expenses for which tax deduction is disallowed.
Deferred income taxes are discussed further in Note 6.7.
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2.1. Earnings per share (EPS)
BASIC EPS
Basic earnings per share are calculated by dividing the net profit attributable to the shareholders of the Company (after adjustment for the distribution on hybrid securities) (€250.1 million) by the weighted average number of ordinary shares outstanding during the year.
Weighted average number of ordinary shares 2020
Ordinary shares issued on 1 January
Ordinary shares issued in July 2019 205,572,291
Incorporation of Elia System Operator (31 December 2019) Ordinary shares issued in December 2020 13,689
Weighted average number of shares on 31 December 205,585,980 2019
8,384
8,384
With the incorporation of the activities of Elia System Operator NV/SA in Elia Transmission Belgium NV/SA, 205,585,980 shares were created. As this occurred on 31 December 2019, the weighted average of this operation in 2019 was equal to 0.
DILUTED EPS
Diluted earnings per share are determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise share options and convertible bonds.
Diluted earnings per share are equal to basic earnings per share, since there are no share options or convertible bonds.
Share capital and reserves per share
Share capital and reserves per share totalled €11.2 per share on 31 December 2020, compared with a value of €10.74 per share at the end of 2019.
2.2. Other comprehensive income
Total comprehensive income includes both the result of the period recognised in the statement of profit or loss and other comprehensive income recognised in equity. ‘Other comprehensive income’ includes all changes in equity other than owner-related changes, which are reported in the statement of changes in equity.
The total other comprehensive income for 2020 amounts to €0.2 million positive impact.
Cash flow hedges
The fair value change of the cash flow hedges had a positive impact of €4.4 million on other comprehensive income. The interest rate swaps related to the loan with Publi-Part and other loans outstanding at year-end 2019 were settled end of June 2020. The negative fair value of €4.4 million was recycled in the profit or loss.
Remeasurements of post-employment benefit obligations The other comprehensive income on post-employment obligations had a negative impact of €4.2 million. See Note 6.14 for more details.
The related tax on these two elements balanced each other out, resulting in a total other comprehensive income of €0.2 million.
