Operating segments
3 Operating segments
Business segments are based on Stedin Group’s internal organisation and management reporting structure. The segments have changed with effect as of the 2022 financial year, because the integration between DNWG and Stedin has been completed. Grid manager Enduris has merged with and become part of Stedin Netbeheer, as well as a number of other entities of the former DNWG Group, as a result, the distinction between Stedin and DNWG is no longer visible and is not managed in this way internally. The comparative figures have been adjusted accordingly. The segments are:
‘Grid manager Stedin’ segment
The ‘Grid manager Stedin’ business segment comprises the regulated domain: the grid manager Stedin. Stedin manages the gas and electricity grids in its service area. As of 1 January 2022, the grid manager Enduris was fully included in grid manager Stedin and is part of this segment.
‘Other and eliminations’ segment
The most important units of the ‘Other and eliminations’ segment are the infrastructure, metering and steam network services of NetVerder, the heat infrastructure services by DNWG Warmte, the activities of the holding company and the cost entities being Stedin Groep Personeels BV and Stedin Groep Services, as well as the elimination of intragroup transactions. The units are non-reportable segments according to the criteria in IFRS 8 ‘Operating Segments’, since they are not material and are therefore included within the ‘Other and eliminations’ segment.
Since the balance sheets per operating segment are not periodically reported in the internal management information, Stedin Group has decided not to present these. The accounting policies for the group’s financial statements applied by Stedin Group are also applied in segment reporting.
The operating results are not cyclical in nature and are not materially affected by seasonal patterns.
3.1 Net revenue and other income, operating profit and investments by segment
Stedin Group operates solely in the Netherlands, and all its revenues are generated in the Netherlands. In accordance with the requirements of IFRS 15, the following table disaggregates the net revenue in 2022 into categories that reflect the way that the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
For the regulated domain, Stedin Group sought alignment wherever possible with the periodic reports required by the Netherlands Authority for Consumers and Markets (ACM). The table also provides a reconciliation of the disaggregated revenue with the segment information on the basis of the internal organisation and management reporting structure:
2022 | Segment Stedin | Other and eliminations | Total |
|---|---|---|---|
Net revenue | |||
- Regulated electricity transmission, connection and metering services | 866 | - | 866 |
- Regulated gas distribution, connection and metering services | 360 | - | 360 |
- Infrastructure services and other | 53 | 37 | 90 |
Other income | 12 | 5 | 17 |
Total revenue | 1,291 | 42 | 1,333 |
Operating expenses | 883 | 18 | 901 |
Depreciation, amortisation and impairments of property, plant and equipment and intangible assets | 322 | 24 | 346 |
Total operating expenses | 1,205 | 42 | 1,247 |
Operating profit | 86 | - | 86 |
Financial income and expenses | 6 | -36 | -30 |
Profit after income tax subsidiaries | - | 3 | 3 |
Profit before income tax | 92 | -33 | 59 |
Income tax | -25 | 10 | -15 |
Profit after income tax | 67 | -23 | 44 |
Investments in 2022 based on the internal organisation and management reporting structure were as follows:
2022 | Segment Stedin | Other and eliminations | Total |
|---|---|---|---|
Investments in property, plant and equipment, intangible assets and right-of-use assets | 701 | 21 | 722 |
Revenue and results for and investments in 2021 based on the internal organisation and management reporting structure were as follows:
2021 | Segment Stedin | Other and eliminations | Total |
|---|---|---|---|
Net revenue | |||
- Regulated electricity transmission, connection and metering services | 824 | - | 824 |
- Regulated gas distribution, connection and metering services | 347 | - | 347 |
- Infrastructure services and other | 52 | 42 | 94 |
Other income | 6 | 8 | 14 |
Total revenue | 1,229 | 50 | 1,279 |
Operating expenses | 767 | 28 | 795 |
Depreciation, amortisation and impairments of property, plant and equipment and intangible assets | 341 | 19 | 360 |
Total operating expenses | 1,108 | 47 | 1,155 |
Operating profit | 121 | 3 | 124 |
Financial income and expenses | -24 | -69 | -93 |
Profit after income tax subsidiaries | 19 | -18 | 1 |
Profit before income tax | 116 | -84 | 32 |
Income tax | -28 | 17 | -11 |
Result after income tax | 88 | -67 | 21 |
2021 | Segment Stedin | Other and eliminations | Total |
|---|---|---|---|
Investments in property, plant and equipment, intangible assets and right-of-use assets | 669 | 26 | 695 |
Non-current assets by country
The non-current assets of the Stedin and ‘Other and eliminations’ segments relate in full to entities registered in the Netherlands.
Major customers
Stedin Group has no customers for which the revenue per customer amounts to 10% or more of total revenue.
