Glossary

Pertinence of published financial ratios

The Fluxys group continually evaluates its financial solidity, in particular using the following financial ratios:

• Solvency: The ratio between net financial debt and the sum of equity and net financial debt indicates the solidity of the Fluxys group’s financial structure,
• Interest coverage: The ratio between the FFO, before interest expenses, and interest expenses represents the group’s capacity to cover its interest expenses thanks to its operating activities,
• Net financial debt/extended RAB: This ratio expresses the share of the extended RAB financed by external debt,
• FFO/Net financial debt: This ratio is to determine the group’s capacity to pay off its debts based on cash generated by its operating activities,
• RCF/Net financial debt:This ratio is to determine the group’s capacity to pay off its debts based on cash generated by its operating activities after payment of dividends,

Definition of indicators

Other property, plant and equipment investments outside the RAB
Average combined investments in property, plant and equipment linked to the extensions to the Zeebrugge LNG terminal and in unregulated activities,

Net finance costs
Interest charges less financial income from lease contracts, interest on investments and cash equivalents and other interest received, excluding interest on regulatory assets,

Interest expenses
Interest expenses on debts (including interest charges on leasing debts), less interest on regulatory assets,

EBIT
Earnings Before Interests and Taxes plus the result of investments accounted for using the equity method and the dividends received from non-consolidated entities,

EBITDA
Earnings Before Interests, taxes, depreciation and amortisation, plus the result of investments accounted for using the equity method and the dividends received from non-consolidated entities,

Net financial debt
Interest-bearing liabilities and guarantees granted, less regulatory liabilities, non-current loans linked to debts, cash linked to early refinancing transactions and 75% of the balance of cash, cash equivalents and short- and long-term cash investments,

FFO
Funds from Operations or profit/loss from continuing operations, excluding changes in regulatory assets and liabilities, before depreciation, amortization, impairment and provisions, to which dividends received from associates and joint ventures and unconsolidated entities are added, and from which net financial expenses and current tax are deducted,

RAB
Average Regulatory Asset Base, or average value of the regulated asset base for the year,

Extended RAB
Total of the RAB and other property, plant and equipment investments outside the RAB,

RCF
Retained Cash-Flow or FFO, less dividends paid,

Calculations

Fluxys SA consolidated income statement in thousands of €
	31.12.2019	31.12.2018 Restated	Notes
Profit/loss from continuing operations	346,401	238,097	4
Net depreciation	401,163	382,676	4.3.5
Net provisions	-7,625	-7,960	4.3.5
Impairment losses	568	448	4.3.5
Earnings from associates and joint ventures	3,767	19,868	4.6
Dividends from unconsolidated entities	0	0	4.4.2
EBITDA	744,274	633,129

 

Fluxys SA consolidated income statement in thousands of €
	31.12.2019	31.12.2018 Restated	Notes
Profit/loss from continuing operations	346,401	238,097	4
Earnings from associates and joint ventures	3,767	19,868	4.6
Dividends from unconsolidated entities	0	0	4.4.2
EBIT	350,168	257,965

 

Fluxys SA consolidated income statement in thousands of €
	31.12.2019	31.12.2018 Restated	Notes
Financial income from lease contracts	0	0
Interest income on investments, cash and cash equivalents at fair value through profit and loss	7,206	6,973	4.4.2
Other interest income	1,115	8,190	4.4.2
Borrowing interest costs	-59,906	-61,247	4.5
Borrowing interest cost on leasing	-8,372	-5,999	4.5
Interest on regulatory assets and liabilities	529	1,433
Net financial expenses	-59,428	-50,650

 

Fluxys SA consolidated income statement in thousands of €
	31.12.2019	31.12.2018 Restated	Notes
Borrowing interest costs	-59,906	-61,247	4.5
Borrowing interest costs on leasing	-8,372	-5,999	4.5
Interest on regulatory liabilities	529	1,433
Interest expenses	-67,132	-65,813

 

Fluxys SA consolidated income statement in thousands of €
	31.12.2019	31.12.2018 Restated	Notes
Profit/loss from continuing operations	346,401	238,097	4
Operating revenue - Movements in regulatory assets and liabilities	-4,377	49,928
Net depreciation	401,163	382,676	4.3.5
Net provisions	-7,625	-7,960	4.3.5
Impairment losses	568	448	4.3.5
Inflows related to associates and joint ventures	0	13,952
Dividends from unconsolidated entities	0	0	4.4.2
Net financial expenses	-59,428	-50,650
Current tax	-92,253	-94,388	4,7
FFO	584,449	532,103

 

Fluxys SA consolidated income statement in thousands of €
	31.12.2019	31.12.2018 Restated	Notes
FFO	584,449	532,103
Dividends paid	-172,854	-174,838
RCF	411,595	357,265

 

Fluxys SA consolidated balance sheet In thousands of €
	31.12.2019	31.12.2018 Restated	Notes
Non-current interest-bearing liabilities	3,318,201	3,330,377	5.13
Current interest-bearing liabilities	238,738	370,643	5.13
Granted guarantees	549,312	537,450	7.7
Other financial assets	-12,554	-30,097	6
Other financing (non-current)	-82,789	-95,343	6
Other liabilities (current)	-100,701	-95,367	6
Other liabilities (non-current)	-410,249	-407,319	6
Non-current loan	-87,379	-99,957	5.7
Cash investments (75%) -	-137,223	-202,661	5.10
Cash and cash equivalents (75%)	-122,833	-222,419	5.10
Other financial assets (75%)	-65,576	-56,735	6
Net financial debt	3,086,947	3,028,572

 

Fluxys SA consolidated balance sheet in millions of €
	31.12.2019	31.12.2018 Restated	Notes
Transmission	2,939.7	2,874.1
Transmission - Fluxys Belgium	2,125.3	2,194.1
Transmission - Fluxys TENP	7.1	14.1
Transmission – TENP	260.5	248.1
Transmission - Fluxys Deutschland	546.8	417.8
Storage	239.7	246.1
LNG terminalling	314.4	324.6
RAB (in millions of €)	3,493.8	3,444.8
Other tangible investments outside RAB	3,029.9	3,111.8
Extended RAB in millions of €	6,523.7	6,556.6

In Belgium, the Regulated Asset Base (RAB) is determined based on the average book value of the fixed assets for the period, plus essentially the accounting amortisations accumulated on the revaluation surpluses. The calculation is in line with the tariff methodology published by the CREG.