Segment reporting
General
Alliander has applied IFRS 8 Operating Segments with effect from the 2010 financial year. Alliander distinguishes the following segments:
Network operator Liander
Other
The figures for each reporting segment, excluding incidental items and fair value movements, are shown in the following table. These figures are a direct reflection of the regular internal reporting. Detailed information on segment reporting can be found in note [2] of the financial statements.
Primary segmentation
Network operator Liander | Other | Eliminations | Total | |||||
€ million | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
Operating income | ||||||||
External income | 1,835 | 1,773 | 220 | 197 | - | - | 2,055 | 1,970 |
Internal income | 7 | 10 | 361 | 336 | -368 | -346 | - | - |
Operating income | 1,842 | 1,783 | 581 | 533 | -368 | -346 | 2,055 | 1,970 |
Operating expenses | ||||||||
Operating expenses | 1,519 | 1,375 | 566 | 539 | -368 | -346 | 1,717 | 1,568 |
Operating profit | 323 | 408 | 15 | -6 | - | - | 338 | 402 |
Network operator Liander
The network operator Liander segment consists of the legal entity Liander N.V., which, as designated network operator within network company Alliander, has a statutory duty to manage the electricity and gas networks and related assets in the provinces of Gelderland and Flevoland, as well as in parts of Friesland, Noord-Holland, and Zuid-Holland. Liander connects customers to the energy infrastructure through which it distributes electricity and gas to those customers. At €1,842 million, operating income in 2020 was up by nearly €60 million compared with 2019. This increase is due to the higher number of connections and an increase in the regulated tariffs. The operating expenses for Liander were up by €144 million, chiefly owing to higher tariffs charged by TenneT for transmission capacity purchases, higher costs for procurement and subcontracted work as a result as of the greater work package and higher depreciation as a result of the higher level of investment. As a result, the operating profit of €323 million was €85 million lower than in 2019.
Other
The ‘Other’ segment covers the entirety of the other operating segments within the Alliander group, such as the activities of Kenter, Qirion, Stam, Alliander AG, Firan, TReNT, the service units, corporate staff departments and the new activities. At €220 million, external operating income in 2020 was up by €23 million compared with 2019. Operating profit for 2020 amounted to €15 million positive (2019: €6 million negative). This improvement is mainly accounted for by higher profits at Qirion and Kenter and elsewhere.