Notes to the consolidated income statement

All amounts in millions of euros unless stated otherwise.

Revenues from energy sales and transmission and energy-related activities

2015

2014

Electricity

2,066

2,207

Gas

1,662

1,793

District heat

220

247

Energy-related activities

106

96

Total

4,054

4,343

Sales to large-volume consumers are billed monthly based on meter readings. Billing for sales to retail consumers is based on meter readings taken throughout the year. The amount of energy supplied and transmission services to retail consumers during the reporting period and the resulting revenues are, therefore, estimated in part on the basis of historical consumption information, standard customer profiles and applicable energy tariffs.

The geographical breakdown of revenues is presented in the segment information.

Other revenues

2015

2014

Operation of street lighting

52

60

Infrastructural works

69

99

Government grants and payment collection services

13

10

Other

94

78

Total

228

247

Employee benefits

2015

2014

Wages and salaries

285

293

Social security contributions

40

42

Pension contributions

34

41

Other employee benefits

35

38

Total

394

414

Employee benefits of € 20 million (2014: € 23 million) have been recognised as part of Purchases of energy and transmission and energy-related activities in view of their direct relationship with revenue. Including these and capitalised employee benefits, total employee benefits were € 517 million (2014: € 526 million).

Headcount

The table below shows headcount by business segment expressed in full-time equivalents (FTE) at year-end. See ‘Segment information' for further information on the composition of the segments.

FTE

At 31 December 2015

At 31 December 2014 1

Energy company Eneco

2,997

3,282

Stedin

2,826

2,956

Other

766

669

Total

6,589

6,907

of whom, working outside the Netherlands

303

324

  1. 12014 figures restated for comparative purposes following changes to segmentation.

In 2015, average headcount expressed in FTEs was 6,711 (2014: 7,023).

Remuneration of the Board of Management and Supervisory Board

The remuneration policy for the Board of Management (see 'Remuneration 2015' in the annual report) proposed by the Supervisory Board was approved at the General Shareholders’ Meeting on 20 May 2005. The remuneration of the Board of Management is set by the Supervisory Board on the recommendation of the Remuneration Committee. The Remuneration Report for 2015 will be published on Eneco Holding N.V.’s website.

The remuneration of the members of the Board of Management consists of a fixed salary and a variable salary. The variable salary amounts to 20% of the total salary. In 2015, the variable salary was again dependent on performance criteria including socially-relevant results. The main criteria for the variable salary were:

• Customer satisfaction (Consumers, Business and Stedin);
• Financial results (EBIT);
• Performance (cost measures);
• Eneco’s long-term growth (strong growth in Toon thermostat); and
• Innovation and long-term targets (new prospects, partners, innovation structure).

The pension entitlements of the members of the Board of Management come under Eneco Holding N.V.’s standard pension plan.

The current employment contracts with the members of the Board of Management are for an unlimited time with a period of notice for the company of four months. Each member of the Board of Management has been appointed for a period of four years. Messrs Rameau, Dubbeld and van der Linden are entitled to payment of 12 months salary and Mr de Haas to 24 months salary if dismissed by the company.

Total remuneration was as follows:

Remuneration of the Board of Management

 

x € 1,000

Gross salary

Variable
remuneration

Pension
contributions

Other

Total 2015

J.F. de Haas 1

424

96

28

51

599

C.J. Rameau

377

71

23

35

506

G.A.J. Dubbeld

377

71

23

35

506

M.W.M. van der Linden

337

58

21

26

442

Total

1,515

296

95

147

2,053

  1. 1Remuneration adjusted in connection with special leave during 2015.

Since 1 January 2015, tax facilities for accrual of pension entitlements have been limited to a maximum gross annual salary of € 100,000. As a result, the short-term contribution to pensions for the part of the gross salary over € 100,000 has taken a different form and is presented in the 'Other' column.

x € 1,000

Gross salary

Variable
remuneration

Pension
contributions

Total 2014

J.F. de Haas

491

118

84

693

C.J. Rameau

366

89

63

518

G.A.J. Dubbeld

361

82

60

503

M.W.M. van der Linden

294

66

46

406

Total

1,512

355

253

2,120

Remuneration of the Supervisory Board

The remuneration of the chairman of the Supervisory Board is € 36,500 per year. The other members of the Supervisory Board each receive an annual fee of € 28,700. Members of committees each receive an additional annual payment as follows:

Committee

Audit committee

5,200

Remuneration committee

3,150

Selection and appointments committee

3,150

Works Council committee

1,600

The fixed expense allowance is € 1,150 per annum.

Share of profit of associates and joint ventures

The associates and joint ventures are included in the List of principal subsidiaries, joint operations, joint ventures and associates in these financial statements.

2015

2014

Share in net profit

7

11

Result on disposal

3

3

Impairment

–1

-

Total

9

14

Financial income

2015

2014

Interest income

6

7

Result on disposal of other capital interests

-

5

Other

-

2

Total

6

14

Financial expenses

2015

2014

Interest expense

74

87

Interest added to provisions

4

5

Impairment of financial fixed assets

1

12

Other

1

10

Total

80

114

Income tax

The company and almost all its Dutch subsidiaries form a fiscal unity for corporate income tax purposes.

The table below shows the income taxes:

2015

2014

Current tax expense

77

47

Movements in deferred taxes

–15

28

Adjustment for prior years movements deferred taxes

–1

– 4

Income tax

61

71

The movements in deferred taxes include a reduction of € 4 million in the Energy Investment Allowance to be amortised (2014: increase of € 7 million).


The table below shows the current tax expense:

2015

2014

Profit before income tax

269

277

Participation exemption

–9

–12

Non tax-deductible expenses

6

36

Depreciation at non-statutory rates

48

–15

Addition to provisions treated differently for tax purposes

–4

–18

Disallowable losses

1

29

Adjustment prior years results

–4

–15

Taxable profit

307

282

Carry forward of losses

-

–96

Taxable amount

307

186

Nominal tax rate

25.0%

25.0%

Current tax expense

77

47

The table below shows the effective tax burden expressed as a percentage of the profit before income tax:

2015

2014

Nominal tax rate

25.0%

25.0%

Effect of:

- Participation exemption

–0.9%

–1.1%

- Non tax-deductible expenses

0.6%

3.2%

- Tax incentives (Energy Investment Allowance, EIA scheme)

–2.1%

–1.8%

- Other

0.1%

0.3%

Effective tax rate

22.7%

25.6%

Result after tax on discontinued operations

No operations previously classified as discontinued operations were settled during 2015 and no new operations have been classified as such. A few discontinued operations (of a limited size) still had to be settled at year-end 2015.

Government grants

Government grants recognised in the result were as follows:

2015

2014

Environmental Quality of Electricity Production (MEP scheme)

93

92

Energy Investment Allowance (EIA scheme)

6

4

Stimulation Sustainable Energy Production (SDE scheme)

46

12

Other government grants

1

Total

146

108

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Notes to the consolidated financial statements
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