Value added

in

In the three-year period 2007-2009, the value added generated and distributed by the Group showed a decrease of 5.9%, which was essentially due to the fact that the 2009 figure is net of the value added generated by the sale of the operating businesses in Brazil. When the latter is included, the 2007-2009 change in Group value added shows an increase of 35.4%.

TERNA GROUP VALUE-ADDED STATEMENT (1)

In euros 2009 2008 2007
A. Turnover      
1. Revenue from sales and services  1,317,331,291 1,151,965,436 1,296,174,946
4. Other revenue and proceeds  43,379,376 43,855,562 51,991,730
Revenue from standard production 1,360,710,667 1,195,820,998 1,348,166,676
5. Revenue from non-standard production (low-cost work)  81,347,977 66,341,085 51,191,913
Total turnover 1,442,058,644 1,262,162,083 1,399,358,589
B. Productioni costs      
6. Raw materials  29,077,344 25,247,177 16,703,095
7. Services 114,130,834 96,813,167 121,549,334
8. Use of third-party assets 13,893,976 13,919,106 13,681,375
9. Provisions for risks  3,620,822 2,884,532 5,688,218
11. Other expenses  24,740,682 13,987,619 8,938,057
Total intermediate production costs  185,463,658 152,851,601 166,560,079
Gross standard value added 1,256,594,986 1,109,310,482 1,232,798,510
 - Accessory revenue  91,961,322 205,896,415 117,682,973
 - Accessory costs 86,900,793 181,802,080 84,789,606
12. Accessory balance  5,060,529 24,094,335 32,893,367
Gross global value added  1,261,655,515 1,133,404,817 1,222,393,004
       
Amortisation of intangible assets  32,092,552 24,624,733 23,380,193
Depreciation of tangible assets  280,451,676 228,845,898 233,281,293
       
Net global value added 949,111,287 879,934,186 1,009,030,391
Value added of discontinued operations  416,976,119 40,874,917  
Total net global value added 1,366,087,406 920,809,103  
Non-subordinate personnel  2,063,354 1,582,934 3,937,131
Subordinate personnel: direct remuneration 182,908,901 202,907,779 189,120,465
Subordinate personnel: indirect remuneration 64,796,883 56,395,874 51,036,274
A. Remuneration of personnel 249,769,138 260,886,587 244,093,870
       
Direct taxes  192,150,648 174,623,989 173,580,625
Indirect taxes  5,579,516 4,814,421 14,905,302
B. Remuneration of the government 197,730,164 179,438,410 188,485,927
       
Charges for short-term capital  14,975 445,217 3,483,147
Charges on bank loans  89,763,459 36,059,258 71,312,756
Charges on bonds  57,855,170 102,567,782 67,446,159
C. Remuneration of borrowed capital 147,633,604 139,072,257 142,242,062
       
Dividends (2) 380,172,672 328,155,134 322,709,374
D. Remuneration of risk capital  380,172,672 328,155,134 322,709,374
       
Earmarked for reserves  390,781,828 13,256,715 111,499,158
E. Remuneration of the Company 390,781,828 13,256,715 111,499,158
       
NET GLOBAL VALUE ADDED 1,366,087,406 920,809,103 1,009,030,391

(1) The sums regarding the creation and distribution of value added are taken from the consolidated financial statements, which were drawn up according to the International Accounting Standards Board’s International Financial Reporting Standards (IFRS/IAS). The Terna Group has used the IFRS/IAS since 2005. It should be noted that – with regard to the preparation of the Income Statement of the Consolidated Financial Statements for the year ended December 31, 2009 – following the sale of the equity interest in the Brazilian subsidiary Terna Participações, which was finalised in that year, the 2009 balances concerning the sale of the Brazilian companies were reclassified as “Profit for the year from discontinued operations and assets held for sale” in accordance with “IFRS 5 – Non-current assets held for sale and discontinued operations”. See page 198 of the consolidated financial statements for the year ended December 31, 2009 for further details. Consequently, in drawing up the 2009 consolidated value added statement, the value added from sale of the Brazilian operations is recorded in “Net global value added of discontinued operations”. Therefore, total net global value added represents the value added of the continuing operations, that is, of the Parent Company and its Italian subsidiaries (Net global value added) and the value added of the discontinued operations. In order to make the comparison more accurate, several comparative balances of the 2008 annual report, and consequently in the 2008 value-added statement, have been reclassified, without, however, changing the values of the shareholders’ equity as of December 2008 or the 2008 income statement.

(2) Of the 2008 dividends, €316.1 million regard those distributed by Terna S.p.A. and €12.0 million those distributed by Terna Participações to third parties. Of the 2007 dividends, €302.1 million regard those distributed by Terna S.p.A. and €11.8 million those distributed by Terna  Participações to third parties.