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 Switzerland, 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 financial steering process within Alpiq will be set up along the value chain sourcing, trading, and supply. This will be implemented for the annual report 2023.
The internal organisational and management structure was adjusted in the first half of 2022. As a result, the international sales & origination business units were moved from Digital & Commerce to International, the Swiss sales & origination business unit from Digital & Commerce to Switzerland and the Swiss RES business units from International to Switzerland. Furthermore, the number of categories of exceptional items for reconciling the IFRS results to the alternative performance measures has been reduced so as to simplify the internal reporting. For more information, please refer to the explanations in the “Alternative performance measures of Alpiq” section of the Financial Review. Previous-year segment reporting for the first half of 2021 has been adjusted for comparability. In addition, the segment information for the period ended 30 June 2021 was adjusted due to an error. For more information, please refer to note 1. As a result of all these effects, the Alpiq Group’s EBITDA before exceptional items for the first half of 2021 increased by CHF 3 million from CHF 80 million to CHF 83 million.
- The Switzerland business division comprises the production of electricity from Swiss hydropower, nuclear power, wind power and industrial photovoltaic plants, the operation of power plants and the development of several wind farm projects in Switzerland. The power plant portfolio includes run-of-river power plants, storage and pumped storage power plants (including Nant de Drance) as well as interests in the Gösgen and Leibstadt nuclear power plants. Moreover, the business division manages shares in HYDRO Exploitation SA and Kernkraftwerk-Beteiligungsgesellschaft AG (KBG).
- The 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 located outside of Switzerland. 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. In addition, International includes direct marketing and energy management for industrial and business customers to help these meet their cost efficiency and sustainability goals always with a view to increasing customer benefits and creating value.
- 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. It also covers trading activities with standardised and structured products for electricity and gas as well as emission allowances and certificates. The business division will be renamed Trading in the second half of 2022 following the transfer of the support functions D&C Technology and Operations to the Group Centre.
The business divisions’ results are carried over to the Alpiq Group’s consolidated figures by including the units with no market operations (Group Centre & other companies), Group consolidation effects as well as other reconciliation items presented in a separate column. The latter comprises shifts of CHF 6 million (previous year: CHF 6 million) between external net revenue and other income due to the difference in account structures between internal and external reporting. This column also contains foreign currency effects from using other average exchange rates in management reporting than pursuant to IFRS. 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 sthalf-year 2022: Information by business division
|
CHF million |
Switzerland |
Interna- tional |
Digital & Commerce |
Group Centre & other companies |
Consoli- dation |
Reconcili- ation |
Alpiq Group |
|
Net revenue from third parties |
– 829 |
3,706 |
3,123 |
11 |
|
9 |
6,020 |
|
Inter-segment transactions 1 |
1,172 |
128 |
78 |
– 7 |
– 1,364 |
1 |
8 |
|
Exceptional items 2 |
77 |
– 15 |
781 |
|
|
– 2 |
841 |
|
Net revenue before exceptional items |
420 |
3,819 |
3,982 |
4 |
– 1,364 |
8 |
6,869 |
|
Net revenue |
343 |
3,834 |
3,201 |
4 |
– 1,364 |
10 |
6,028 |
|
Other income |
9 |
– 8 |
14 |
11 |
– 8 |
– 6 |
12 |
|
Total revenue and other income before exceptional items |
429 |
3,811 |
3,996 |
15 |
– 1,372 |
2 |
6,881 |
|
Total revenue and other income |
352 |
3,826 |
3,215 |
15 |
– 1,372 |
4 |
6,040 |
|
Operating costs |
– 236 |
– 3,813 |
– 3,868 |
– 59 |
1,372 |
– 2 |
– 6,606 |
|
Exceptional items 2 |
– 161 |
|
|
|
|
|
– 161 |
|
EBITDA before exceptional items |
32 |
– 2 |
128 |
– 44 |
0 |
0 |
114 |
|
EBITDA |
116 |
13 |
– 653 |
– 44 |
0 |
2 |
– 566 |
|
Depreciation, amortisation and impairment |
– 32 |
– 20 |
– 3 |
– 4 |
|
|
– 59 |
|
EBIT |
84 |
– 7 |
– 656 |
– 48 |
0 |
2 |
– 625 |
|
Number of employees at 30 June |
166 |
379 |
309 |
377 |
|
|
1,231 |
1 The net effect of CHF 8 million results from currency effects on intragroup energy transactions.
2 Includes effects from fair value changes of energy derivatives that were entered into in connection with hedges for future power production, from the performance of the fund shares for the decommissioning and waste disposal of Kernkraftwerk Gösgen-Däniken AG and Kernkraftwerk Leibstadt AG, as well as from onerous contracts. For more information, please refer to the explanations in the “Alternative performance measures of Alpiq” section of the Financial Review.
1 sthalf-year 2021: Information by business division (adjusted)
|
CHF million |
Switzerland |
Interna- tional |
Digital & Commerce |
Group Centre & other companies |
Consoli- dation |
Reconcili- ation |
Alpiq Group |
|
Net revenue from third parties |
19 |
1,475 |
1,144 |
9 |
|
7 |
2,654 |
|
Inter-segment transactions |
363 |
33 |
280 |
– 10 |
– 666 |
|
0 |
|
Exceptional items 1 |
12 |
22 |
11 |
|
|
– 1 |
44 |
|
Net revenue before exceptional items |
394 |
1,530 |
1,435 |
– 1 |
– 666 |
6 |
2,698 |
|
Net revenue |
382 |
1,508 |
1,424 |
– 1 |
– 666 |
7 |
2,654 |
|
Other income |
19 |
17 |
1 |
11 |
– 7 |
– 6 |
35 |
|
Total revenue and other income before exceptional items |
413 |
1,547 |
1,436 |
10 |
– 673 |
0 |
2,733 |
|
Total revenue and other income |
401 |
1,525 |
1,425 |
10 |
– 673 |
1 |
2,689 |
|
Operating costs |
– 284 |
– 1,547 |
– 1,364 |
– 26 |
673 |
|
– 2,548 |
|
Exceptional items 1 |
– 95 |
|
– 8 |
|
|
1 |
– 102 |
|
EBITDA before exceptional items |
34 |
0 |
64 |
– 16 |
0 |
1 |
83 |
|
EBITDA |
117 |
– 22 |
61 |
– 16 |
0 |
1 |
141 |
|
Depreciation, amortisation and impairment |
– 31 |
– 27 |
– 4 |
– 4 |
|
|
– 66 |
|
EBIT |
86 |
– 49 |
57 |
– 20 |
0 |
1 |
75 |
|
Number of employees at 30 June |
159 |
401 |
326 |
366 |
|
|
1,252 |
1 Includes effects from fair value changes of energy derivatives that were entered into in connection with hedges for future power production, from the performance of the fund shares for the decommissioning and waste disposal of Kernkraftwerk Gösgen-Däniken AG and Kernkraftwerk Leibstadt AG, as well as from onerous contracts. For more information, please refer to the explanations in the “Alternative performance measures of Alpiq” section of the Financial Review.