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265
The Parent Company's statement of financial position is summarised as follows:
STATEMENT OF FINANCIAL POSITION
31 December 2014
31 December 2013
Net fixed assets
1,896,019
1,787,648
of which: Investments in subsidiaries
1,818,399
1,728,516
Net working capital
(41,906)
(116,147)
Provisions
(13,129)
(31,477)
Net capital employed
1,840,984
1,640,024
Employee benefit obligations
7,576
6,305
Equity
1,107,027
1,021,052
Net financial position
726,381
612,667
Total equity and sources of funds
1,840,984
1,640,024
Unless specifically indicated below, the reasons behind
the more significant changes in individual items within the
Prysmian S.p.A. income statement are described in the
Explanatory Notes to the Parent Company Financial State-
ments, to which reference should be made.
The Parent Company's income statement for 2014 reports
Euro 191,556 thousand in net profit, an increase of Euro 6,871
thousand on the prior year.
The items contributing to this result will now be discussed:
Revenue from ordinary operations of Euro 1,090,578
thousand (Euro 452,225 thousand in 2013) comprises Euro
1,091,702 thousand from the resale of strategic materials
(copper, aluminium and lead) to Group operating companies
after this activity was centralised in the Parent Company from
July 2013, and Euro 1,125 thousand from the negative change
in inventories of such strategic materials.
Other income of Euro 106,624 thousand (Euro 102,068
thousand in 2013) mostly refers to amounts charged back by
Prysmian S.p.A. to Group companies for coordination activi-
ties, for services provided by headquarters functions and for
royalties relating to patents and know-how.
Operating costs of Euro 1,130,685 thousand in 2014 versus
Euro 501,444 thousand in 2013, refer to purchases of strategic
materials (Euro 1,088,416 thousand in 2014 versus Euro
450,063 thousand in 2013), purchases of other consumables
(Euro 2,356 thousand in 2014 versus Euro 2,952 thousand in
2013), the fair value change in metal derivatives (a negative
Euro 32 thousand in 2014 versus a positive Euro 38 thousand
in 2013) and personnel costs (Euro 39,881 thousand in 2014
versus Euro 48,467 thousand in 2013).
Net finance costs amount to Euro 38,862 thousand (Euro
38,775 thousand in 2013), mainly relating to interest accruing
on the bonds and to interest payable on the Credit Agreement
2011, the EIB Loan, the Revolving Credit Facility 2014 and the
Syndicated Revolving Credit Facility 2014.
Net income from investments amounts to Euro 204,606
thousand, compared with Euro 219,861 thousand in the prior
year, and comprises dividends received from the subsidiaries
Prysmian Cavi e Sistemi S.r.l. and Prysmian Powerlink S.r.l.
(Euro 221,071 thousand) less impairment of the investment in
Fibre Ottiche Sud -F.O.S. S.r.l. (Euro 16,465 thousand).
Income taxes are a positive Euro 16,136 thousand (Euro 28,244
thousand in 2013) and comprise the recognition of a negative
Euro 1,363 thousand for deferred taxes and a positive Euro
17,499 thousand for current taxes. The latter mainly reflect
the net positive effects of the relief provided by tax losses
transferred from some Italian companies under the rules of
the group tax consolidation.
More details about the Italian companies which have elected
to file for tax on a group basis with Prysmian S.p.A. can be
found in Note 22. Taxes, contained in the Explanatory Notes
to the Parent Company Financial Statements.
Research and development costs are fully expensed to
income as incurred and amount to Euro 16,244 thousand in
the period under review (Euro 16,507 thousand in 2013); more
details can be found in Note 32. Research and development,
contained in the Explanatory Notes to the Parent Company
Financial Statements.
Note: the composition and method of calculating the above indicators are discussed in the Directors' Report contained in the Group Annual Report.
(in thousands of Euro)