Reconciliation of non-IFRS financial measures
In the discussion of TenneT’s financial results, a number of alternative performance measures (non-GAAP figures) are used to provide readers with additional financial information that is regularly reviewed by management. These 'underlying' (non-IFRS) figures should not be viewed as a substitute for TenneT’s financial results as determined in accordance with IFRS, which are presented in TenneT’s consolidated financial statements.
TenneT's main non-IFRS figures are explained below
TenneT defines EBITDA as operating result before interest, tax and depreciation (including impairments) of tangible fixed assets and amortisation (including impairments) of intangible assets.
|IFRS Depreciation and amortisation||700||629|
|Other underlying adjustments||-74||-3|
|Underlying adjustment depreciation||21||22|
The following table shows the underlying alignment between the IFRS and underlying net profit.
|IFRS finance result||-181||-170|
|IFRS tax expenses||-189||-177|
|IFRS net profit||510||553|
|Underlying EBIT adjustments||-74||-3|
|Underlying adjustment interest||-9||-24|
|Underlying adjustment deferred tax on to be settled in tariffs||44||29|
|Underlying adjustment deferred tax on auction receipts||-27||-33|
|Other underlying tax adjustments||-1||9|
|Underlying Net Profit||443||531|
Return on invested capital
ROIC is defined as 'underlying' EBIT (see note 2.3) as a percentage of the average invested capital during the year. The average invested capital is defined as the 'underlying' equity + loans and bank overdrafts minus cash at free disposal. Average is defined as sum of year-end and previous year-end figures divided by two.