Segment information

Segment information

Business segments are based on Eneco’s internal organisation and management reporting structure. Since 1 January 2015, Eneco’s business segments have been the two core businesses: Energy Company Eneco and Stedin. The Energy Company Eneco segment purchases, generates, trades and sells electricity, gas and district heating and constructs, maintains and manages district heating networks and offers consultancy services. The Stedin segment is the manager of the gas and electricity networks.

In the second half of 2015, it was decided to form a new Innovation segment for all activities related to investment in start-ups, innovative energy projects and strategic partnerships. The new Eneco Innovation & Ventures business unit is positioned separately within the Eneco Group and reports directly to the Board of Management (‘chief operating decision maker’). As this business unit’s revenues and results, and so also its cash flows, will be largely independent of other business units within the Energy Company Eneco, it is regarded as a separate Innovation segment. The energy consultancy activities of Ecofys are also regarded as an separate segment. This also applies to the activities of Joulz Energy Solutions, which is now part of a separate Infrastructure services segment. The new Innovation, Energy consultancy and Infrastructure services segments are non-reportable segments according to the criteria in IFRS 8 ‘Operating Segments’. Consequently, these three segments are included in the Other activities segment that, since it is not material, is included in the ‘Other activities, non-allocated and eliminations’ column in the tables below.

The result is two reporting segments, Energy Company Eneco and Stedin, and one non-reporting segment, Other activities. Where applicable, the comparative figures for 2014 have been restated to the new structure at the end of 2015.

The group accounting policies are also applied in the segment reports.

Transfer prices for internal products and services are on arm’s length terms.

Revenues and profit by business segment

2015

Segment

Energy

Company

Eneco

Segment Stedin

Other activities, non-allocated and eliminations

Total

Revenues from energy sales and transmission, energy related activities and other operating revenues

3,162

1,053

67

4,282

Inter-segment operating revenues

30

21

– 51

Purchases of energy and energy related and other operating expenses

– 2,852

– 564

– 37

– 3,453

Operating profit before depreciation, amortisation and impairment

340

510

– 21

829

Depreciation, amortisation and impairment

– 258

– 224

– 13

– 495

Operating profit

82

286

– 34

334

Share of profit of associates and joint ventures

9

Financial income and expenses

– 74

Profit before income tax

269

2014

Segment

Energy

Company

Eneco

Segment Stedin

Other activities, non-allocated and eliminations

Total

Revenues from energy sales and transmission, energy related activities and other operating revenues

3,384

1,124

82

4,590

Inter-segment operating revenues

40

12

– 52

Purchases of energy and energy related and other operating expenses

– 3,241

– 603

– 38

– 3,882

Operating profit before depreciation, amortisation and impairment

183

533

– 8

708

Depreciation, amortisation and impairment

– 108

– 223

– 14

– 345

Operating profit

75

310

– 22

363

Share of profit of associates and joint ventures

14

Financial income and expenses

– 100

Profit before income tax

277

Balance sheet by business segment

At 31 December 2015

Segment

Energy

Company

Eneco

Segment

Stedin

Other activities, non-allocated and eliminations

Total

Assets

Assets

4,679

5,101

60

9,840

Associates and joint ventures

60

1

61

Total assets

4,739

5,101

61

9,901

Liabilities

Equity and non-current liabilities

3,506

4,703

56

8,265

Current liabilities

1,233

398

5

1,636

Total liabilities

4,739

5,101

61

9,901

At 31 December 2014

Segment

Energy

Company

Eneco

Segment

Stedin

Other activities, non-allocated and eliminations

Total

Assets

Assets

4,786

5,150

95

10,031

Associates and joint ventures

57

57

Total assets

4,843

5,150

95

10,088

Liabilities

Equity and non-current liabilities

3,400

4,775

– 65

8,110

Current liabilities

1,443

375

160

1,978

Total liabilities

4,843

5,150

95

10,088

Other data by business segment

2015

Segment

Energy

Company

Eneco

Segment

Stedin

Other activities, non-allocated and eliminations

Total

Investments in property, plant and equipment and intangible assets

347

365

3

715

Depreciation/amortisation of property, plant and equipment and intangible assets

258

235

2

495

2014

Segment

Energy

Company

Eneco

Segment

Stedin

Other activities, non-allocated and eliminations

Total

Investments in property, plant and equipment and intangible assets

396

444

2

842

Depreciation/amortisation of property, plant and equipment and intangible assets

107

229

9

345

Revenues by country

2015

2014

Netherlands

4,046

4,348

Belgium

176

212

United Kingdom

43

17

Other

17

13

Total

4,282

4,590

Property, plant and equipment by country

2015

2014

Netherlands

7,046

7,153

Belgium

376

372

United Kingdom

401

353

Other

40

44

Total

7,863

7,922

Previous paragraph:
Notes to the consolidated cash flow statement
Next paragraph:
List of principal subsidiaries, joint operations, joint ventures and associates