Value added

in

EC1In the 2009-2011 period, the value added generated by the Group increased by 25% with regard to its continuing operations.

Also considering the value added of discontinued operations, the 2010-2011 variation is of 2.4%, while the comparison with 2009 was influenced by the significant positive impact deriving from the extraordinary sale transaction of the Brazilian Group Terna Participações that was finalized that same year.

During the 2009-2011 three-year period, the incidence on the total net value added of the remuneration of employees (on average 25%) and borrowed capital (on average 14%) was essentially stable.

With reference to direct and indirect taxes, the “second corrective measure”, approved with Legislative Decree no. 138 of August 13, 2011 (named the Robin Hood Tax), determined an increased tax incidence, on average equal to 25%, compared to the total net value added (+13.8% compared to the 2009 data). Without considering this phenomenon, that led to registering higher taxes by 153.8 million euro , the incidence of direct and indirect taxes on the total net value added, would have remained substantially unvaried (approximately +1% ).

As a proportion of the total net value added, the remuneration of risk capital has increased as opposed to 2009 (+4.6%).

During the three-year period, the allocations to reserves decreased (from approximately 29% to approximately 1%), considering the strongly negative impact on the 2011 results of the so-called Robin Hood Tax and the dividend policy adopted by the Parent Company, as established in the 2010-2014 Strategic Plan, that was defined taking into account the extraordinary sale transaction of the Brazilian companies that characterized the 2009 results.

Terna Group – Value added statement (1)
Values in euro Financial period
2011 
Financial period
2010 
Financial period
2009 
A. Production value      
1. Revenue from sales and services 1,591,278,319 1,533,102,227 1,346,812,023
4. Other revenue and proceed 44,323,144 56,077,819 43,379,376
Standard production revenue 1,635,601,463 1,589,180,046 1,390,191,399
5. Non-standard production revenue (self constructed assets) 100,980,008 91,972,485 77,407,493
Total production revenue 1,736,581,471 1,681,152,531 1,467,598,892
B. Costs of production      
6. Raw materials 33,699,422 38,433,650 31,236,973
7. Services 156,814,420 157,561,339 135,829,303
8. Leasing and rental expense 12,536,915 12,050,835 13,893,976
9. Provisions for risks 6,577,183 2,009,949 3,620,822
11. Other expense 10,367,402 12,824,885 26,422,832
Total intermediate cost of production      219,995,342 222,880,658 211,003,906
Standard gross value added 1,516,586,129 1,458,271,873 1,256,594,986
 - Accessory revenue 391,985,314 107,370,164 91,961,322
 - Accessory costs 326,332,709 83,607,472 86,900,793

12. Accessory balance

65,652,605 23,762,692 5,060,529
Gross net standard value added 1,582,238,734 1,482,034,565 1,261,655,515
Amortization intangible assets 50,822,429 45,118,232 54,832,235
Depreciation tangible assets 345,381,259 315,602,303 257,711,993
Net global value added 1,186,035,046 1,121,314,030 949,111,287
Value added of discontinued operations held for sale 112,703,809 146,847,712 416,976,119
Total net global value added 1,298,738,855 1,268,161,742 1,366,087,406
Non-subordinate personnel 1,957,413 1,621,627 2,063,354
Subordinate personnel: direct remuneration 217,416,887 214,860,807 182,908,901
Subordinate personnel: indirect remuneration 63,742,596 64,879,119 64,796,883
A. Remuneration of personnel 283,116,896 281,361,553 249,769,138
Direct taxes 387,281,919 246,825,990 177,969,448
Indirect taxes 6,133,331 6,620,414 5,579,516
B. Remuneration of government 393,415,250 253,446,404 183,548,964
Short- term loan expense 45,248 185,869 14,975
Interest on bank loans 92,634,544 80,378,970 89,763,459
Interest on bonds 89,522,207 40,810,758 57,855,170
C. Remuneration of borrowed capital 182,201,999 121,375,597 147,633,604
Dividends (2) 422,098,320 421,650,343 380,523,323
D - Remuneration of risk capital 422,098,320 421,650,343 380,523,323
Allocations to reserves 17,906,390 190,327,845 404,612,377
E – Remuneration of the Company 17,906,390 190,327,845 404,612,377
Total net global value added 1,298,738,855 1,268,161,742 1,366,087,406
(1) The sums regarding the creation and distribution of value added are taken from the Consolidated Financial Statements, which were prepared in compliance with the IFRS/IAS international accounting standards, Specifically, the Terna Group has used IFRS/IAS international accounting standards since 2005. It should be noted that the “Total Net Global Value Added” refers to the value added generated from continuing activities. It should also be noted that various comparative economic balances for 2010 and 2009 were modified considering the changed accounting model adopted by the Terna Group for goodwill taxation. Particularly with this restatement, current taxes (direct taxes) were modified for 2010 and 2009 (respectively for +1.6 million euro and for -14.2 million euro) with a consequent variation of the relative allocations to reserves for the respective years, It should be noted that referring to 2009 balances, in accordance with IFRIC 12 – “Service Concession Arrangements”, as from January 1, 2010, the Income Statement records the costs and revenues regarding dispatching as construction costs and revenues, without any effect on, respectively, the Group’s results and the total net value added. (2) The 2011 dividends regard the interim dividend distributed in November 2011 (160.8 million euro) and the balance proposed by the Board of Directors on March 20, 2012 (261.3 million euro).