Financial Results
Balance sheet
TenneT has a balance sheet total of almost EUR 2.9 billion, of which EUR 1.1 billion is not at the Group's free disposal as a result of:
- energy exchange activities undertaken by the APX Group;
- auctioning of capacity on the cross-border connections;
- maintenance of the energy balance;
- grants received under the Electricity Production (Environmental Quality) Act;
- market coupling.
The financial assets not at free disposal have increased sharply in recent years. They represent a substantial portion of the balance sheet total and cash flows, as shown in the graphs below.
The balance sheet total excluding assets not at free disposal and investment contributions received in advance (adjusted balance sheet total) amounts to EUR 1.8 billion1) and is the basis for gauging the performance of the company. This produces the following ratios:
| |
2008 |
2007 |
2006 |
2005 |
2004 |
| Equity to capital |
46.1% |
45.9% |
50.2% |
51.6% |
51.0% |
| Return on average equity |
8.0%
|
8.7%
|
7.9%
|
16.5%
|
12.3%
|
| Interest cover ratio |
5.5 |
4.2 |
5.8 |
4.3 |
7.5 |
| Loans and credit facilities / EBITDA |
3.0 |
4.0 |
2.7 |
2.4 |
2.0 |
1) The adjusted balance sheet total (EUR 1.8 billion) is equal to the balance sheet total (EUR 2.9 billion) minus the assets not at free disposal (EUR 1.1 billion).
The following definitions are used for accounting purposes:
| Equity to capital |
Equity divided by the adjusted balance sheet total |
| Return on average equity |
Income after tax divided by average equity (year-end position + opening position / 2)
|
| Interest cover ratio |
Operating income divided by interest paid on loans and credit facilities
|
| Loans and credit facilities / EBITDA |
Withdrawals from bank loans and credit facilities divided by operating income plus depreciations and impairments of tangible and intangible fixed assets
|
|
