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of the shareholding in Yangtze Optical Fibre and Cable Joint
Stock Limited Company, Euro 8 million in expenses for
restructuring the pension plan of certain Dutch companies
and Euro 9 million to write down an unrecoverable tax credit
of a Brazilian company.
Group operating income was Euro 312 million for 2014,
compared with Euro 368 million in the prior year, posting a
decrease of Euro 56 million. This reduction is mainly attrib-
utable to the adjustments against the Western HVDC Link
project, and to higher impairment losses recognised against
assets; this reduction has been partially offset by lower net
non-recurring expenses and by the positive change in the fair
value of metal derivatives. Excluding the negative impact on
expected profit margin for the Western HVDC Link project,
operating income would have been Euro 406 million.
Net finance costs came to Euro 140 million for 2014, down
from Euro 150 million (-6.6%) in the prior year.
The reduction of Euro 10 million is mainly attributable to the
reduction in finance costs relating to the Group's borrowings.
Taxes came to Euro 57 million, representing an effective tax
rate of around 33.1%.
Net profit for 2014 was Euro 115 million, compared with
Euro 153 million in 2013. Excluding the adjustments for the
Western HVDC Link project, net profit for 2014 would have
been Euro 178 million.
Adjusted net profit
1
was Euro 186 million, versus Euro 269
million the year before. Excluding the adjustments for the
Western HVDC Link project, adjusted net profit for 2014
would have been Euro 252 million.
(1) Adjusted net profit is defined as net profit/(loss) before non-recurring income and expenses, the fair value change in metal derivatives and in other fair value
items, the effect of currency and interest rate derivatives, exchange rate differences, non-monetary interest on the convertible bond and the related tax
effects.