Notes to the company balance sheet

1. Tangible fixed assets

In millions of euros Carrying amount as at 1 Jan. 2018 Investments Depreciation Carrying amount as at 31 Dec. 2018
         
Other fixed operating assets 2.1  0.1  0.8  1.4 
Fixed assets under construction 0.1  - - 0.1 
         
Total 2.2  0.1  0.8  1.5 

In millions of euros Carrying amount as at 1 Jan. 2017 Investments Depreciation Carrying amount as at 31 Dec. 2017
         
Other fixed operating assets 2.8  - 0.7  2.1 
Fixed assets under construction 0.3   ‑0.2  - 0.1 
         
Total 3.1   ‑0.2  0.7  2.2 

In millions of euros Acquisition value as at 31 Dec. 2018 Accumulated depreciation *) as at 31 Dec. 2018 Acquisition value as at 31 Dec. 2017 Accumulated depreciation *) as at 31 Dec. 2017
         
Other fixed operating assets 3.9 2.4 3.8 1.7
Fixed assets under construction -   -  
         
Total 3.9 2.4 3.8 1.7

* Including any impairments

2. Financial fixed assets

In millions of euros   2018   2017*
Subsidiaries        
Equity interest as at 1 January   5,686.1   5,620.0
Movements        
- Investments 6.1   99.3  
- Acquisitions 0.0   0.0  
- Movements directly in equity ‑131.1   31.8  
- Share in result of group companies 304.5   227.7  
- Repayment of share premium ‑600.0   ‑40.0  
- Dividend received ‑335.5   ‑252.7  
         
Equity interest as at 31 December   4,930.1   5,686.1
         
Financing as at 1 January 4,055.9   4,222.3  
Movements        
- Long-term loans granted 649.9   154.7  
- Repayment of long-term loans ‑76.2   ‑321.1  
         
         
Financing as at 31 December   4,629.6   4,055.9
         
         
Total financial fixed assets as at 31 december   9,559.7   9,742.0

* Adjusted opening balance due to application of IFRS 15

The repayment of the share premium is part of the merger between GTS and GGS as of 2 January 2018. For details, refer to the Consolidation and accounting principles.

The fair value of the long-term loans was € 5,170 million on 31 December 2018.

The current amount of the long-term loans totalled € 20 million at year-end 2018 (2017: € 20 million). In the above table, this amount has been recognised in the financing of the group companies.

The interest rate on the long-term loans granted to group companies is the weighted average borrowing rate of the long-term loan portfolio of N.V. Nederlandse Gasunie plus 12.5 basis points.

The long-term loan granted to Gasunie Transport Services B.V. totalled € 3,639 million at year-end 2018 (2017: € 3,054 million). This concerns a loan facility of € 6 billion, made available as of 1 January 2014. The loan facility matures on 31 December 2029 and has an extension option. The parties agreed that, during the term, the facility can be drawn or redeemed. No amortisation schedule has been determined.

Gasunie Transport Services B.V. is the network operator of the national gas transport network in accordance with the Dutch Gas Act. The ministry has issued rules with regard to proper financial management by a network operator (In Dutch: Besluit Financieel Beheer Netbeheerder). These rules consist of a number of financial ratios, including a minimum for equity. Taking into account the rules with regard to proper financial management by a network operator, an assessment is made  whether the facility should be drawn or redeemed every quarter.

The long-term loans granted to Gastransport Noord-West Europa Holding B.V. totalled € 646 million at year-end 2018 (2017: € 631 million). The loans mature on 31 December 2022 and 2023. For all loans, the parties agreed that full or partial repayments may be made during the term.

The long-term loan granted to EnergyStock B.V. totalled € 185 million at year-end 2018 (201: € 205 million). The loan matures on 1 December 2028, and € 10.0 million is redeemed on the loan biannually, starting in 2014, until the loan has been fully repaid. In addition, voluntary repayments of a maximum of € 25.0 million can be made biannually.

The long-term loans granted to Gasunie BBL B.V. totalled € 151 million at year-end 2018 (2017: € 165 million). This includes a loan facility of € 200 million, made available as of 12 December 2014. The loan matures on 1 December 2024 and has an extension option. The parties agreed that, during the term, the facility can be drawn or redeemed.

No other special conditions have been agreed upon between N.V. Nederlandse Gasunie and the group companies concerning the long-term loans granted.

For information on investments in associates, refer to note 5 to the consolidated balance sheet in the consolidated financial statements.

3. Receivables from group companies

This concerns receivables relating to the performance of business activities for the group companies and dividends to be received. The interest on these receivables is 0% per annum (2017: 0%).

4. Issued share capital

The authorised share capital amounts to € 756,000 and is divided into 7,560 shares, each having a nominal value of € 100, of which 1,513 have been issued and paid up in full. No movements were recorded in 2018 or 2017.

All shares issued are held by the Dutch State.

5. Revaluation reserve

The movements in the revaluation reserve are as follows:

In millions of euros 2018 2017
Balance as at 1 January 1,702.9 1,761.1
     
Effect of tax rate change on deferred taxation 95.1 0.0
     
Realised share of the unrealised revaluation ‑52.2 ‑57.5
     
Transferred to the profit and loss account, ‑0.9 ‑0.9
of which corporate income tax 0.2 0.2
     
Balance as at 31 December 1,745.1 1,702.9

The revaluation reserve as at the balance sheet date in both 2018 and 2017 includes the revaluation of tangible fixed assets as at 1 January 2004, which were transferred to Gasunie Transport Services B.V. on 1 January 2014, and the cash flow hedge reserve of N.V. Nederlandse Gasunie relating to two long-term bond loans.

In millions of euros 31 Dec. 2018   31 Dec. 2017  
         
Revaluation of tangible fixed assets as at 1 January 2004   1,743.5   1,700.6
         
         
Cash flow hedge N.V. Nederlandse Gasunie, 2.3   3.1  
of which corporate income tax ‑0.7   ‑0.8  
         
    1.6   2.3
         
Total   1,745.1   1,702.9

6. Statutory reserve for participating interests

The movements in the legal reserve for participating interests are as follows:

In millions of euros 2018 2017
     
Balance as at 1 January 317.8 431.1
     
Movement in other equity interests stated at fair value 5.6 20.5
Non-distributable share in retained earnings due to legal restrictions - ‑133.8
     
Balance as at 31 December 323.4 317.8

In 2018, the financial instruments, including the cash flow hedge at Gate terminal B.V., were analysed in the context of the implementation of IFRS 9. This analysis prompted a reassessment of the legal reserves and the other reserve. In this process, the negative value of the legal reserve corresponding to Gate’s cash flow hedge reserve of € 37.0 million (2017: € 39.0 million) was reclassified to the other reserve. This reclassification has been incorporated in the comparative figures for 2017. There is no effect on the company’s equity or result.

7. Other reserve

The movements in the other reserve are as follows:

In millions of euros 2018 2017
     
Balance as at 1 January 3,494.7 3,218.8
     
Appropriation of result for previous financial year ‑2.2 73.4
Unrealised share in resultt on participations (cash flow hedge) 2.0 10.3
Balance of actuarial gains    
and losses on employee benefits, ‑0.3 1.3
of which corporate income tax 0.1 ‑0.3
Realised share of the unrealised revaluation 52.3 57.5
Change in deferred taxes ‑233.0 -
Movements in legal reserves - 133.7
     
Balance as at 31 December 3,313.6 3,494.7

* Adjusted opening balance due to IFRS 15

In 2018, the financial instruments, including the cash flow hedge at Gate terminal B.V., were analysed in the context of the implementation of IFRS 9. This analysis prompted a reassessment of the legal reserves and the other reserve. In this process, the negative value of the legal reserve corresponding to Gate’s cash flow hedge reserve of € 37.0 million (2017: € 39.0 million) was reclassified to the other reserve. This reclassification has been incorporated in the comparative figures for 2017. There is no effect on the company’s equity or result.

8. Result after taxation

The movements in the result after taxation are as follows:

In millions of euros 2018 2017*
Balance as at 1 January 257.2 183.5
     
Dividend paid ‑258.8 ‑110.1
Appropriation of result 1.6 ‑73.4
Result for the year 325.2 257.2
     
Balance as at 31 December 325.2 257.2

* Adjusted opening balance due to application of IFRS 15

Dividend

The Executive Board proposes that € 97.2 million of the profit for 2018 be added to the other reserve and € 228.0 million be distributed to the shareholder. The dividend per share is € 150.7 thousand.

This dividend proposal has not yet been recorded in the balance sheet as at 31 December 2018 or in the notes. The profit for 2017 amounted to € 259.5 million (under IFRS 15, this amounted to € 257.2 million), of which € 258.8 million was paid out as dividend in 2018.

9. Provisions

In millions of euros 2018 2017
     
Provision for deferred tax liabilities 69.2 101.2
Provision for jubilee benefits 7.0 8.2 
Provision for post-employment fringe benefits for non-active and retired employees 6.3 5.9
provision for restructuring 43.3 -
     
Total provisions 125.8 115.3

For more information on these provisions, refer to 7 and 15 to the consolidated statement of financial position in the consolidated financial statements.

10. Trade and other payables

The ‘trade and other payables can be categorised as follows:

In millions of euros 2018 2017
     
Trade payables 39.3 39.1
Tax liabilities 12.4 7.3
Other liabilities, accruals and deferred income 174.3 128.0
     
Total 226.0 174.4

The other liabilities, accruals and deferred income consist mainly of accrued interest, deposits received and invoices to be received.

The fair value of the trade and other payables approximates the carrying amount due to the short-term nature of these instruments.

11. Liabilities to group companies

Liabilities to group companies mainly concern the company’s draw of call funds from its group companies. The call funds carry an interest rate of 0% to 1%, depending on the group company.

12. Other items in the company balance sheet

For information on other items in the company balance sheet, refer to the notes to the relevant consolidated items in the consolidated financial statements. For ‘Off-balance sheet liabilities, reference is also made to the notes to the consolidated financial statements, as these commitments virtually all relate to the company.