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|
(€ million) |
2009 (*) |
2010 |
2011 |
Change |
Change % | ||||||||
| |||||||||||||
|
2,438 |
3,475 |
3,539 |
64 |
1.8 | |||||||||
|
Other revenue and income |
30 |
33 |
66 |
33 |
100.0 | ||||||||
|
Total revenue |
2,468 |
3,508 |
3,605 |
97 |
2.8 | ||||||||
|
Total revenue net of IFRIC 12 (**) |
2,468 |
3,159 |
3,245 |
86 |
2.7 | ||||||||
|
Operating costs (***) |
(581) |
(968) |
(993) |
(25) |
2.6 | ||||||||
|
Operating costs net of IFRIC 12 (**) |
(581) |
(619) |
(633) |
(14) |
2.3 | ||||||||
|
1,887 |
2,540 |
2,612 |
72 |
2.8 | |||||||||
|
Depreciation, amortisation and impairment losses |
(613) |
(678) |
(654) |
24 |
(3.5) | ||||||||
|
1,274 |
1,862 |
1,958 |
96 |
5.2 | |||||||||
|
(217) |
(271) |
(313) |
(42) |
15.5 | |||||||||
|
Net income from equity investments |
22 |
47 |
51 |
4 |
8.5 | ||||||||
|
Profit before taxes |
1,079 |
1,638 |
1,696 |
58 |
3.5 | ||||||||
|
Income taxes |
(347) |
(532) |
(906) |
(374) |
70.3 | ||||||||
|
Net profit (****) |
732 |
1,106 |
790 |
(316) |
(28.6) | ||||||||
|
Adjusted net profit (****) |
732 |
1,106 |
978 |
(128) |
(11.6) | ||||||||
Net profit
Net profit achieved in 2011 amounted to €790 million, a decrease of €316 million, equal to 28.6%, compared with 2010. This reduction was due to an increase in income taxes (-€374 million) mainly following the higher tax charge (€344 million, of which €169 million of higher current taxes and €175 million of higher deferred taxes, essentially from the adjustment of deferred tax at 31 December 2010) due to the application of the additional IRES (Robin Hood Tax) to the natural gas transportation and distribution business segments. The reduction was also affected by increased net financial expenses (-€42 million) essentially following the increased cost of debt (3.1% in 2011 compared with 2.9% in 2010) and the higher average debt in the period. These effects were partially offset by the increase in EBIT (+€96 million).
The application of the Robin Hood Tax resulted in a significant increase in the consolidated tax rate, equal to 53.4%, including the effect resulting from the one-off adjustment of deferred tax at 31 December 2010 (32.5% in 2010).
Reconciliation of net profit with adjusted net profit
The management of Snam evaluates Group performance based on adjusted earnings, obtained by excluding special items from reported profit.
The income components classified as special items exclusively relate to the adjustment of deferred tax at 31 December 2010 for companies operating in the natural gas transportation and distribution business segments, for which, starting from 2011, an additional IRES of 10.5% is applied for three years (2011, 2012 and 2013) before moving to an additional corporate income tax rate of 6.5% in 2014.
The adjustment of deferred tax at 31 December 2010 resulted in €188 million of higher income taxes. This cost, classified among the special items, was therefore excluded from the adjusted net profit.
Income entries are classified as special items, if material, when: (i) they result from non-recurring events or transactions or from events which do not occur frequently in the ordinary course of business; or (ii) they result from events or transactions which are not representative of the normal course of business. The tax rate applied to the items excluded from the calculation of adjusted income is determined on the basis of the nature of each revenue item subject to exclusion.
Adjusted profit is not envisaged by the IFRS or by the US GAAP accounting standards. The management consider that this performance metric allows for analysis of the trends of the businesses, yielding better comparability of the results.
The following table shows the reconciliation of net profit with adjusted net profit.
| Download XLS (17 kB) |
|
(€ million) |
2009 |
2010 |
2011 |
Change |
Change % | ||
| |||||||
|
Profit before taxes |
1,079 |
1,638 |
1,696 |
58 |
3.5 | ||
|
Income taxes |
(347) |
(532) |
(906) |
(374) |
70.3 | ||
|
Tax rate (%) |
32.2 |
32.5 |
53.4 |
20.9 |
64.3 | ||
|
- of which Robin Hood Tax total effects |
|
|
(344) |
(344) |
| ||
|
Reported net profit |
732 |
1,106 |
790 |
(316) |
(28.6) | ||
|
Excluding Special items: |
|
|
|
|
| ||
|
- One-off adjustment of deferred tax at 31.12.2010 |
|
|
188 |
188 |
| ||
|
Income taxes (*) |
(347) |
(532) |
(718) |
(186) |
35.0 | ||
|
Adjusted Tax Rate (%) |
32.2 |
32.5 |
42.3 |
9.8 |
30.2 | ||
|
Adjusted net profit |
732 |
1,106 |
978 |
(128) |
(11.6) | ||
Adjusted net profit in 2011, which excludes special items, amounted to €978 million, a fall of €128 million, or 11.6%, compared with 2010. The decrease is due to: (i) higher income taxes (-€186 million) following the application of the additional IRES (-€156 million, of which €169 million in additional current taxes and €13 million in lower deferred taxes); and (ii) an increase in net financial expenses (-€42 million), attributable to the higher cost of debt and higher average debt for the period. These effects were partially offset by the increase in EBIT (+€96 million).
The adjusted tax rate, calculated as the ratio between taxes net of special items and pre-tax profit, was 42.3% (32.5% in 2010).
