Segment reporting

General

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

The Liander network operator 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 €1,953 million, operating income in 2022 was up by €13 million compared with 2021. This increase is due to the higher number of connections and an increase in the regulated tariffs. Operating expenses for Liander rose by €98 million, particularly due to the higher procurement costs associated with network losses, higher depreciation due to the high level of investment and the application of the declining balance method of depreciation to the gas network, and to the higher tariffs charged by TenneT for procuring transmission capacity. As a result, the operating profit of €254 million was €85 million lower than in 2021. This decline is partly due to the sale of Stam in January 2022.

Other

The ‘Other’ segment covers the entirety of the other operating segments within the Alliander group, such as the activities of Kenter, Qirion, Alliander AG, Firan, TReNT, the service units, corporate staff departments and the new activities. At €251 million, external operating income in 2022 was up by €22 million compared with 2021. Operating profit for 2022 amounted to €9 million (2021: €11 million profit).