2 Segment information
The segment reporting of the Alpiq Group is based on the Group’s internal organisational and management structure and the internal financial information reported to the chief operating decision maker. The reportable segments under IFRS 8 consist of the three business divisions Generation Switzerland, Generation International and Digital & Commerce. The Executive Board evaluates each of these separately for the purpose of assessing performance and allocating resources. Segment results (EBITDA) are the key performance indicators used for internal management and assessment purposes at Alpiq. Besides energy procurement and production costs, operating costs comprise all costs of operations, including personnel and service expenses. No operating business segments have been aggregated in the presentation of reportable segments.
The allocation keys for the internal settlement of Group Centre expenses were adjusted in the second half of 2020. Moreover, due to the sale of Flexitricity Ltd. in the second half of 2020 and Alpiq’s decision to no longer pursue the e-mobility business, the EBITDA effects from these two businesses are classified as exceptional items in internal reporting. Previous-year segment reporting for the first half of 2020 has been adjusted for comparability. As a result, the Alpiq Group’s EBITDA before exceptional items increased by CHF 3 million in the first half of 2020 from CHF 116 million to CHF 119 million.
- The Generation Switzerland business division comprises the production of electricity from Swiss hydropower and nuclear power. The power plant portfolio includes run-of-river power plants, storage and pumped storage power plants, investments in the Gösgen and Leibstadt nuclear power plants as well as the Nant de Drance pumped storage power plant project. Moreover, the business division manages shares in HYDRO Exploitation SA and Kernkraftwerk-Beteiligungsgesellschaft AG (KBG).
- The Generation International business division comprises power production of wind power plants, small-scale hydropower plants and industrial photovoltaic plants, the operation of power plants and the development of several wind farm projects. The business division also covers the production of electricity and heat in thermal power plants in Hungary, Italy and Spain. The power plant portfolio is made up of gas-fired combined-cycle power plants and gas-fired turbine power plants. Power is sold on the European electricity trading market via the Digital & Commerce business division or via third parties. The power plants are used by the respective grid operators to balance the grids.
- The Digital & Commerce business division comprises the optimisation of Alpiq’s own power plants as well as the optimisation of decentralised generation units and the production of electricity from third parties’ renewable energies. The business division also covers trading activities with standardised and structured products for electricity and gas as well as emission allowances and certificates. In addition, it includes direct marketing and energy management for industrial and business customers to help these meet their cost efficiency and sustainability goals. Digital & Commerce specifically utilises digitalisation and technologies such as artificial intelligence, connectivity, the Internet of Things and blockchain to further develop products and services for customer and business partners, always with a view to increasing customer benefits and creating value.
The business divisions’ results are carried over to the Alpiq Group’s consolidated figures by way of including the units with no market operations (Group Centre & other companies), Group consolidation effects (including foreign currency effects from using other average exchange rates in management reporting) as well as another reconciliation item presented in a separate column. This reconciliation item comprises shifts between external net revenue and other income due to the difference in account structures between internal and external reporting. Group Centre & other companies includes the financial and non-strategic investments which cannot be allocated directly to the business divisions as well as activities of the Group headquarters, including Alpiq Holding Ltd. and the functional units.
1 st half-year 2021: Information by business division
|
CHF million |
Generation Switzerland |
Generation Interna- tional |
Digital & Commerce |
Group Centre & other companies |
Consoli- dation |
Reconcili- ation |
Alpiq Group |
|
Net revenue from third parties |
4 |
78 |
2,557 |
9 |
|
6 |
2,654 |
|
Inter-segment transactions |
358 |
22 |
– 53 |
– 10 |
– 317 |
|
0 |
|
Exceptional items 1 |
12 |
|
– 6 |
|
|
|
6 |
|
Net revenue before exceptional items |
374 |
100 |
2,498 |
– 1 |
– 317 |
6 |
2,660 |
|
Net revenue |
362 |
100 |
2,504 |
– 1 |
– 317 |
6 |
2,654 |
|
Other income |
19 |
16 |
2 |
11 |
– 7 |
– 6 |
35 |
|
Exceptional items 1 |
– 10 |
|
|
– 3 |
|
|
– 13 |
|
Total revenue and other income before exceptional items |
383 |
116 |
2,500 |
7 |
– 324 |
0 |
2,682 |
|
Total revenue and other income |
381 |
116 |
2,506 |
10 |
– 324 |
0 |
2,689 |
|
Operating costs |
– 274 |
– 74 |
– 2,454 |
– 26 |
324 |
|
– 2,504 |
|
Exceptional items 1 |
– 94 |
|
– 5 |
1 |
|
|
– 98 |
|
EBITDA before exceptional items |
15 |
42 |
41 |
– 18 |
0 |
0 |
80 |
|
EBITDA |
107 |
42 |
52 |
– 16 |
0 |
0 |
185 |
|
Depreciation, amortisation and impairment |
– 28 |
– 28 |
– 5 |
– 5 |
|
|
– 66 |
|
EBIT |
79 |
14 |
47 |
– 21 |
0 |
0 |
119 |
|
Number of employees at 30 June |
131 |
220 |
561 |
340 |
|
|
1,252 |
1 Includes effects from business disposals as well as the performance of the fund shares for the decommissioning and waste disposal of Kernkraftwerk Gösgen-Däniken AG and Kernkraftwerk Leibstadt AG, fair value changes of energy derivatives that were entered into in connection with hedges for future power production, provisions as well as restructuring costs. For more information, please refer to the explanations in the “Alternative performance measures of Alpiq” section of the Financial Review.
1 sthalf-year 2020: Information by business division (adjusted)
|
CHF million |
Generation Switzerland |
Generation Interna- tional |
Digital & Commerce |
Group Centre & other companies |
Consoli- dation |
Reconcili- ation |
Alpiq Group |
|
Net revenue from third parties |
99 |
65 |
1,641 |
14 |
– 1 |
7 |
1,825 |
|
Inter-segment transactions |
306 |
15 |
6 |
– 18 |
– 309 |
|
0 |
|
Exceptional items 1 |
– 16 |
|
– 7 |
|
|
|
– 23 |
|
Net revenue before exceptional items |
389 |
80 |
1,640 |
– 4 |
– 310 |
7 |
1,802 |
|
Net revenue |
405 |
80 |
1,647 |
– 4 |
– 310 |
7 |
1,825 |
|
Other income |
12 |
4 |
3 |
10 |
– 9 |
– 7 |
13 |
|
Exceptional items 1 |
– 1 |
|
|
|
|
|
– 1 |
|
Total revenue and other income before exceptional items |
400 |
84 |
1,643 |
6 |
– 319 |
0 |
1,814 |
|
Total revenue and other income |
417 |
84 |
1,650 |
6 |
– 319 |
0 |
1,838 |
|
Operating costs |
– 485 |
– 57 |
– 1,608 |
– 11 |
318 |
|
– 1,843 |
|
Exceptional items 1 |
133 |
1 |
26 |
– 12 |
|
|
148 |
|
EBITDA before exceptional items |
48 |
28 |
61 |
– 17 |
– 1 |
0 |
119 |
|
EBITDA |
– 68 |
27 |
42 |
– 5 |
– 1 |
0 |
– 5 |
|
Depreciation, amortisation and impairment |
– 28 |
– 25 |
– 7 |
– 4 |
– 1 |
|
– 65 |
|
EBIT |
– 96 |
2 |
35 |
– 9 |
– 2 |
0 |
– 70 |
|
Number of employees at 30 June |
138 |
204 |
597 |
353 |
|
|
1,292 |
1 Includes effects from business disposals as well as the performance of the fund shares for the decommissioning and waste disposal of Kernkraftwerk Gösgen-Däniken AG and Kernkraftwerk Leibstadt AG, fair value changes of energy derivatives that were entered into in connection with hedges for future power production, provisions as well as restructuring costs. For more information, please refer to the explanations in the “Alternative performance measures of Alpiq” section of the Financial Review.