ESB Annual Report 2012 - (Page 21)

BUSINESS OVERVIEW OPERATING & FINANCE REVIEW CORPORATE SOCIAL RESPONSIBILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS ESB Annual Report 2012 21 01 FINANCE REVIEW FIGURE 1: FIVE-YEAR SUMMARY 2012 €’m Revenue and other operating income Operating profit before exceptional items1 Adjusted profit before taxation2 EBITDA3 Capital expenditure4 Net debt Gearing (%)5 Total assets 3,295 576 351 1,095 765 (4,414) 53% 12,600 2011 €’m 2,995 469 283 1,121 883 (4,324) 52% 12,539 2010 €’m 2,740 339 249 839 819 (3,944) 50% 12,112 2009 €’m 3,114 350 335 814 921 (2,231) 35% 9,567 1 Stated before the following exceptional items: 2012: staff exit costs (€161 million). 2010: pension charge (€330 million). 2009: profit on disposal of generating assets: (€265 million). 2 Excludes market to market movements on RPI swaps and exceptional items. 3 Includes exceptional items (€161 million). 4 Excludes NIE acquisition in 2010 (€1.2 billion). 5 Excludes joint ventures. THIS YEAR HASSEENGOOD FINANCIAL PERFORMANCE ACROSSOURBUSINESS WITH REVENUE AND OPERATINGPROFIT AT €3.3 BILLION AND €415 MILLION RESPECTIVELY. FIGURE 2: SUMMARISED INCOME STATEMENT 2012 €’m Revenue & other operating income Operating costs Operating profit Exceptional items Operating profit after exceptional items Total finance costs Joint venture profits Profit/(loss) before tax Tax credit Profit/(loss) after tax Revenue Revenue and other operating income at €3,295 million has increased by €300 million over 2011 (€2,995 million). Higher underlying commodity prices are reflected in higher revenues in Electric Ireland and our generation business. Also over 100,000 electricity customers and 80,000 gas customers have switched to Electric Ireland during 2012. 3,295 2011 €’m 2,995 (2,719) (2,526) 576 (161) 415 (269) 21 166 28 194 469 - 469 (414) 24 79 21 100 Operating costs Overall operating costs at €2,719 million have increased by €193 million year on year. Excluding the impact of fuel, other energy costs and depreciation, operating costs are €950 million and are up €60 million on 2011. These variances can be explained in more detail below: FIGURE 3: OPERATING COSTS 2012 €’m 2011 €’m Fuel & other energy costs 1,056 951 Depreciation & amortisation Employee costs6 Operating & maintenance costs 713 685 465 475 485 415 2,719 2,526 6 excludes exceptional staff exit costs in 2012 (€161 million). Fuel and other energy costs have increased by €105 million on 2011 levels largely due to higher commodity prices and increased volumes. Depreciation at €713 million is up €28 million on 2011 due to continued capital spend in both of our networks businesses. 04 2008 €’m 3,515 340 304 753 1,094 (2,088) 40% 8,645 03 02 05 A DETAILED BREAKDOWN OF OUR OPERATING COSTS BY BUSINESS SEGMENT IS PROVIDED IN NOTE 1 TO THE CONSOLIDATED FINANCIAL STATEMENTS.

Table of Contents for the Digital Edition of ESB Annual Report 2012

ESB Annual Report 2012
Contents
Business Overview
Chairman’s Statement
Chief Executive Review
Our Strategy and Business Model
Operating and Financial Review
Operating Environment
Finance Review
Business Unit Sections: ESB Generation and Wholesale Markets
ESB Networks
NIE
Electric Ireland
Corporate Social Responsibility
Introduction from Executive Director, People and Sustainability
Sustainability Charter
Energy Usage 2012
ESB Innovation
Equality and Diversity
Our People
Our Community
Corporate Governance
Chairman’s Corporate Governance Statement
The Board
Executive Team
Board Members’ Report
Risk Management Report
Statement of Board Members’ Responsibilities
Independant auditor’s report to the stockholders of Electricity Supply Board (ESB)
Statement of Accounting Policies
Financial statements
Prompt Payments Act

ESB Annual Report 2012

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