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

2019

2018

2019

2018

2019

2018

2019

2018

Operating income

        

External income

1,773

1,772

197

191

-

-

1,970

1,963

Internal income

10

10

336

313

-346

-323

-

-

Operating income

1,783

1,782

533

504

-346

-323

1,970

1,963

         

Operating expenses

        

Operating expenses

1,375

1,337

539

555

-346

-323

1,568

1,569

         

Operating profit

408

445

-6

-51

-

-

402

394

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. Operating income in 2019 (€1,783 million) was virtually unchanged compared with 2018. The operating costs for Liander were up by €37 million, chiefly owing to higher purchase costs and the cost of subcontracted work as a result as of the greater work package. As a result, the operating profit of €408 million was €37 million lower than in 2018.

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, the service units, corporate staff departments, and the new activities. At €197 million, external operating income in 2019 was up by €6 million compared with 2018. Operating profit for 2019 amounted to €6 million negative (2018: €51 million negative). This improvement is mainly accounted for by higher profits at Qirion and Kenter among others.