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Reclassified balance sheet37

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(€ million)

31.12.2012

31.12.2013

Change

(*)

Includes short-term portions.

(**)

The figures recorded at 31 December 2012 were restated following the retrospective application of the new provisions of IAS 19. The restatement resulted in: (i) an increase in provisions for employee benefits (€3 million); (ii) an improvement in net working capital (€1 million) following the reduction in deferred tax liabilities; and (iii) a reduction in shareholders’ equity (€2 million) in terms of net effect. Further details can be found in Note 5, “Changes to accounting criteria”, of the notes to the separate financial statements.

Fixed capital

15,522

18,016

2,494

Property, plant and equipment

3

3

 

Intangible assets

9

13

4

Equity investments

7,609

8,197

588

Intragroup medium- and long-term financial receivables (*)

7,930

9,833

1,903

Net receivables (payables) for investments

(29)

(30)

(1)

Net working capital (**)

353

129

(224)

Provisions for employee benefits (**)

(16)

(16)

 

NET INVESTED CAPITAL

15,859

18,129

2,270

Shareholders’ equity (**)

6,576

6,440

(136)

Net financial debt

9,283

11,689

2,406

COVERAGE

15,859

18,129

2,270

Fixed capital (€18,016 million) rose by €2,494 million compared with 31 December 2012, due mainly to an increase in equity investments (+€588 million) and in intragroup medium- and long-term financial receivables from subsidiaries (+€1,903 million).

Equity investments

Equity investments of €8,197 million break down as follows:

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(€ million)

% ownership

Balance at 31.12.2012

Acqui­sitions and sub­scriptions

Other changes

Balance at 31.12.2013

Investments in subsidiaries

 

 

 

 

 

Snam Rete Gas S.p.A.

100%

2,849

 

 

2,849

GNL Italia S.p.A.

100%

43

 

 

43

Italgas S.p.A.

100%

2,966

 

 

2,966

Stogit S.p.A.

100%

1,618

 

 

1,618

Investments in companies under Joint control

 

 

 

 

 

TIGF Holding SAS

45%

 

597

 

597

- Gasbridge 1 B.V. and Gasbridge 2 B.V.

50%

133

 

(9)

124

 

 

7,609

597

(9)

8,197

The acquisitions and subscriptions (€597 million) refer to Snam’s total outlay for its acquisition, through TIGF Investissements SAS (a wholly owned subsidiary of TIGF Holding SAS), of 100% of TIGF S.A., which is active in the transportation and storage of gas in the south-west of France38. The amount includes: (i) the subscription of 45% of the share capital of TIGF Holding SAS (€241 million); and (ii) the subscription of a 45% quota of a convertible bond issued by TIGF Investissements SAS (€356 million).

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Net working capital

 

 

 

 

(€ million)

31.12.2012

31.12.2013

Change

Tax receivables

259

147

(112)

Trade receivables

94

87

(7)

Net prepaid tax assets

8

6

(2)

Other assets

95

75

(20)

Tax payables

(3)

(81)

(78)

Trade payables

(68)

(62)

6

Derivatives

 

(7)

(7)

Provisions for risks and charges

(3)

(5)

(2)

Other liabilities

(29)

(31)

(2)

 

353

129

(224)

Net working capital fell by €224 million compared with 31 December 2012 to €129 million, owing mainly to: (i) the reduction in tax receivables (-€112 million) in relation to receivables due from subsidiaries for the national tax consolidation scheme (-€110 million) resulting from the advance tax payments made by operating companies to Snam for 2013; (ii) the increase in tax payables (-€78 million) as a result of higher pre-tax profits for companies included in the tax consolidation scheme; and (iii) the reduction in other assets (-€20 million), due mainly to the effects on the income statement of prepayments for up-front fees and the substitute tax on the revolving credit lines (-€33 million)39.

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Statement of comprehensive income

 

 

 

(€ million)

2012

2013

(*)

The figures for 2012 refer to the retrospective application of the new provisions of IAS 19. Further details can be found in Note 5, “Changes to accounting criteria”, of the notes to the separate financial statements.

Net profit

390

705

Other components of comprehensive income

 

 

Components that can be reclassified to the income statement:

 

 

Change in fair value of cash flow hedging derivatives (effective share)

 

(1)

 

 

(1)

Components that cannot be reclassified to the income statement:

 

 

Actuarial (losses)/gains from the remeasurement on defined-benefit obligations (*)

(2)

1

Tax effect (*)

1

 

 

(1)

1

Total other components of comprehensive income, net of tax effect

(1)

 

Total comprehensive income for the period (*)

389

705

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Shareholders’ equity

 

 

 

(€ million)

2012

2013

Shareholders’ equity at 31 December 2012

 

6.576

Increases owing to:

 

 

- Comprehensive income for 2013

705

 

- Other changes

4

 

 

 

709

Decreases owing to:

 

 

- Distribution of balance of 2012 dividend

(507)

 

- Distribution of interim 2013 dividend

(338)

 

 

 

(845)

Shareholders’ equity at 31 December 2013

 

6,440

Shareholders’ equity amounted to €6,440 million, down by €136 million compared with 31 December 2012. The reduction was due to the payment (-€507 million) of the balance of the 2012 dividend (€0.15 per share being the balance of the total dividend of €0.25 per share, the payment of which began on 23 May 2013), and the advance payment (-€338 million) of the 2013 dividend (€0.10 per share, the payment of which began on 24 October 2013), which was partially absorbed by the total profit for 2013 (+€705 million).

The other changes (+€4 million) relate mainly to the effects of the exercise of 1,233,700 stock options by Snam executives.40

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Net financial debt

 

 

 

 

(€ million)

31.12.2012

31.12.2013

Change

(*)

Includes the short-term portion of long-term financial debt.

Financial and bond debt

12,411

13,326

915

Short-term financial debt (*)

474

2,250

1,776

Long-term financial debt

11,937

11,076

(861)

Financial receivables and cash and cash equivalents

(3,128)

(1,637)

1,491

Intragroup short-term financial receivables

(3,126)

(1,635)

1,491

Cash and cash equivalents

(2)

(2)

 

 

9,283

11,689

2,406

Net financial debt stood at €11,689 million as at 31 December 2013, up by €2,406 million compared with the €9,283 million recorded at 31 December 2012. The increase is due to the reduction in intragroup short-term financial receivables (+€1,491 million) and the increase in financial and bond debt (+€915 million), due essentially to an increase in bonds (+€2,811 million), which was partly offset by the net repayment of bank loans (-€1,907 million).

Financial and bond debt, which totalled €13,326 million at 31 December 2013, was denominated entirely in euros, with the exception of a bond worth ¥10 billion, which was fully converted into euros via a hedging derivative worth around €75 million as at the issue date. Financial debt relates mainly to bonds (€8,857 million, equal to 66.5%), bank loans (€3,108 million, equal to 23.3%) and loan agreements concerning European Investment Bank (EIB) funding (€1,350 million, equal to 10.1%)41.

Intragroup short-term financial receivables (€1,635 million) relate to loans granted to subsidiaries through the intragroup current account.

Long-term financial debts (€11,076 million) represent around 83% of financial debt (around 96% at 31 December 2012).

The breakdown of debt by type of interest rate at 31 December 2013 is as follows:

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(€ million)

31.12.2012

%

31.12.2013

%

Change

Fixed rate

6,046

49

8,557

64

2,511

Floating rate

6,365

51

4,769

36

(1,596)

 

12,411

100

13,326

100

915

Fixed-rate debt (€8,557 million) rose by €2,511 million after new bonds were issued.

Floating-rate debt (€4,769 million) fell by €1,596 million compared with 31 December 2012, owing essentially to the early extinguishment of a term loan (-€1,483 million) and to the net repayment of revolving credit lines (-€1,673 million). These effects were partly offset by bank term loans taken out (+€1,249 million, of which €647 million related to EIB funding) and by the private placement of a bond (+€300 million).

37 Please refer to the “Financial review” section of the consolidated financial statements for an explanation of the methodology used in the reclassified financial statements.

38 Further details on the TIGF transaction can be found in the section entitled “Profile of the year – Main events – International development”.

39 A one-off up-front fee and substitute tax are to be regarded as “transaction costs” pursuant to IAS 39; the relative charges are spread over the (expected) life of the financial instrument.

40 Further information on the stock option plans in place can be found in the section of this Report entitled “Other information”.

41 Payables to banks include two loan agreements with CDP concerning EIB funding for a total of €400 million and four loans granted by the EIB for a nominal amount of €948 million.

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