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

2018

2017

2018

2017

2018

2017

2018

2017

Operating income

        

External revenue

1,772

1,681

191

159

-

-

1,963

1,840

Internal revenue

10

5

313

331

-323

-336

-

-

Operating income

1,782

1,686

504

490

-323

-336

1,963

1,840

         

Operating expenses

        

Operating expenses

1,337

1,313

554

554

-323

-336

1,568

1,531

         

Operating profit

445

373

-50

-64

-

-

395

309

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, Flevoland and parts of Friesland, Noord-Holland and Zuid-Holland. Liander connects customers to the electricity and gas networks through which it distributes electricity and gas. Operating income in 2018 was up by €96 million compared with 2017, at €1,782 million. Operating expenses were up by €24 million, chiefly owing to an increase in sufferance taxes, higher purchase costs and costs of subcontracted work and higher depreciation. Operating profit at €445 million was €72 million higher than in 2017.

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, Allego, Firan, new activities, the service units and the corporate staff departments. Alliander incurs ‘stewardship costs’ in the staff departments for the shareholdings in its participating interests. These are not generally recharged to business units. Finally, capital expenditure in the context of the energy transition is recognised in this segment. External operating income in 2018 was up by €32 million compared with 2017, at €191 million. Operating profit for 2018 amounted to €50 million negative (2017: €64 million negative). This improvement is mainly accounted for by higher profits at Kenter and Alliander AG, plus the deconsolidation of Allego.