7.Segment Reporting

Segment Reporting by Business Units

In the Energie AG Group, identification of reportable segments according to IFRS 8 is done according to internal reporting and internal control (Management Approach).

The segment reporting includes the Energy, Grid, Waste Management, and Water and Holding & Services Segments.

The accounting policies of the reported segments are the same as those used throughout the Group. The operating result is the net profit or loss for the period that is monitored regularly by the chief operating decision-makers and used as the primary basis for assessing success and for allocating resources.

The sales transactions carried out between the Grid Segment and the other segments primarily involve grid services for which the prices are based on regulatory stipulations. Intra-Group sales transactions in the Holding & Services Segment primarily involve delivery of goods and services that are charged at prices corresponding to market conditions, as well as sales in the area of grid services (metering) which are charged at prices based on regulatory stipulations. Capital employed is the key figure relating to assets and liabilities in the Group that are reported to the chief operating decision makers on a regular basis. Capital employed includes above all equity and interest-bearing liabilities, less cash and cash equivalents, fixed term deposits, and certain financial assets.

Energy

The Energy Segment figures include the production, trade and sales of electrical energy. Electrical energy is primarily generated using hydraulic and thermal power generation plants. In addition, electrical energy is also obtained from third-party power plants via procurement rights, as well as on the electricity market. The Electricity Segment also includes Energie AG Oberösterreich Trading GmbH as a central electricity and gas trading company, as well as the 7-Fields gas reservoir. The trade with and distribution of natural gas, the heating business unit, as well as Energie AG Oberösterreich Vertrieb GmbH & Co KG (measured at equity), ENAMO GmbH, ENAMO Ökostrom GmbH, Bioenergie Steyr GmbH, Fernwärme Steyr GmbH, Windpower EP GmbH, Geothermie-Wärmegesellschaft Braunau-Simbach GmbH, Geothermie-Fördergesellschaft Simbach-Braunau GmbH and Energie Wärme Ried GmbH are allocated to the Energy Segment.

Grid

The Grid Segment includes the construction and operation of the electricity and gas grids.

Waste Management

The Waste Management Segment primarily includes the acceptance, sorting, incineration and landfilling of domestic and industrial waste. “Papyrus” Altpapierservice Handelsgesellschaft m.b.H. (measured at equity), Papyrus Wertstoff Service GmbH and Austrian Metal Recovery GmbH are allocated to the Waste Management Segment.

Water

The Water Segment primarily includes supplying drinking water, as well as disposing of wastewater.

Holding & Services

The Holding & Services Segment comprises the management and control functions of the segment, commercial and technical services, and the telecommunications business unit, as well as the two consolidated at-equity investments Salzburg AG für Energie, Verkehr und Telekommunikation and Wels Strom GmbH.

Segment reporting by business units is as follows:

The composition of the Waste Management Segment and the Water Segment was changed as of 1 October 2017. WDL-Wasserdienstleistungs GmbH and Komunalna ODTOK d.o.o were transferred from the Water Segment to the Waste Management Segment. The image below shows the segment information for 2017/2018 according to the old segment structure:

Revenues from the reversal of construction cost subsidies of EUR 24.8 million (previous year: EUR 24.1 million) pertain to the Grid Segment, while reversals of impairments in the amount of EUR 2.1 million (previous year: EUR 20.9 million) pertain to the Energy Segment and EUR 0.0 million (previous year: EUR 16.5 million) to the Grid Segment. Non-cash line items in connection with derivatives in the amount of EUR 5.0 million (previous year: EUR -15.7 million) pertain to the Energy Segment.

Segment Reporting by Geographical Segments

Energie AG Oberösterreich Group operates primarily in the regions “Austria” and “Czech Republic”. Business operations in other countries (Italy, Germany, Slovenia, Hungary, Poland) are combined in the geographical segment “Other Countries”.