TAQA FY 2020 Proforma Consolidated Results and Dividend Policy
FY 2020 proforma consolidated results - basis of preparation
Transco as the accounting acquiror, acquisition accounting and focus on pro-forma financials
Acquisition accounting applied for purposes of the merger
• Acquired assets/liabilities are remeasured to fair value as of 1 July 2020
Chosen over predecessor accounting, where historical book values are used
. Fair value approach adopted in light of recent market developments
Transco, the transmission operating company, determined as 'accounting acquiror'
. Highest fair value among candidates TAQA, Transco and ADDC
.
Applying acquisition accounting results in all entities, except Transco, being fair valued
on TAQA books
Focus on pro-forma financials to enable like-for-like comparisons
With Transco as the accounting acquirer, TAQA adopts Transco's historic financial results
prior to 1 July 2020 transaction date for published statutory IFRS reporting
Pro-forma financials adjust financials to assume the transaction occurred on 1 January
2019 and back-dates impact of purchase price allocation (fair valuation exercise)
New TAQA Group structure
Existing TAQA assets
TAQA
(as legal acquirer)
UAE
IWPPS
Int'l
Generation
Oil
& Gas
ASOS
& JVs
Assets transferred
to TAQA
Al Maqam Energy
(transaction SPV)
TransCo
(Acc.
acquirer)
2x DisCos
4x UAE
IWPPS
10% TAQA
IWPPS +
RO / PV2
Statutory financial statements (FY 2020*)
Income
statement
Balance
sheet
Transco
New TAQA
PPA
6 months + 6 months + 6 months
Jan-June
Jul-Dec
Jul-Dec
New TAQA
FY 2020
New TAQA
as at Dec
+
PPA
as at Dec
New TAQA
as at Dec
* Comparative 2019 financials are of Transco standalone
39
TAQɅView entire presentation