3. Operating segments
Business segments are based on Stedin Group's internal organisation and management reporting structure. 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.
‘Other and eliminations’ segment
The most important units of the ‘Other and eliminations’ segment are the non-regulated activities as described in 1.1 General information, the activities of the holding company and the cost entities being Stedin Groep Personeels B.V. and Stedin Groep Services B.V., as well as the elimination of intragroup transactions. The units are non-reportable segments, since they are not material, and are therefore included within the ‘Other and eliminations’ segment.
The balance sheet by operating segment is not reported periodically in the internal management information. Consequently, this is not presented. The accounting policies for these 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 there. The non-current assets of all segments are located in the Netherlands.
For the breakdown of net revenue, Stedin Group sought alignment wherever possible with the periodic reports required by the Netherlands Authority for Consumers and Markets (ACM) for the regulated domain. The table also provides a reconciliation of the broken down net revenue with the segment information on the basis of the internal organisation and management reporting structure:
2023 | Segment Stedin | Other and eliminations | Total |
|---|---|---|---|
Net revenue | |||
- Electricity transmission and connection services | 1,229 | - | 1,229 |
- Gas distribution and connection services | 355 | - | 355 |
- Metering services | 67 | - | 67 |
- Infrastructure services and other | 65 | 36 | 101 |
Other income | 16 | 2 | 18 |
Total revenue | 1,732 | 38 | 1,770 |
Operating expenses | 1,156 | 14 | 1,170 |
Depreciation, amortisation and impairments of property, plant and equipment and intangible assets | 282 | 25 | 307 |
Total operating expenses | 1,438 | 39 | 1,477 |
Operating profit | 294 | -1 | 293 |
Financial income and expenses | -36 | -29 | -65 |
Profit after income tax subsidiaries | - | - | - |
Profit before income tax | 258 | -30 | 228 |
Income tax | -66 | 8 | -58 |
Profit after income tax | 192 | -22 | 170 |
Investments in 2023 based on the internal organisation and management reporting structure were as follows:
2023 | Segment Stedin | Other and eliminations | Total |
|---|---|---|---|
Investments in property, plant and equipment, intangible assets and right-of-use assets | 820 | 23 | 843 |
Revenue and results for and investments in 2022 based on the internal organisation and management reporting structure were as follows:
2022 | Segment Stedin | Other and eliminations | Total |
|---|---|---|---|
Net revenue | |||
- Regulated electricity transmission and connection services | 819 | - | 819 |
- Regulated gas distribution and connection services | 315 | - | 315 |
- Metering services | 92 | - | 92 |
- 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 | 272 | 24 | 296 |
Total operating expenses | 1,155 | 42 | 1,197 |
Operating profit | 136 | - | 136 |
Financial income and expenses | 6 | -36 | -30 |
Profit after income tax subsidiaries** | - | 3 | 3 |
Profit before income tax | 142 | -33 | 109 |
Income tax | -38 | 10 | -28 |
Result after income tax | 104 | -23 | 81 |
- * The comparative figures have been adjusted as a result of a change in accounting policy for the valuation of property, plant and equipment. See 2.2.10 Property, plant and equipment for more information.
- * Profit after income tax subsidiaries mainly concerns the sale of TUMS to Censo as of February 10, 2022.
2022 | Segment Stedin | Other and eliminations | Total |
|---|---|---|---|
Investments in property, plant and equipment, intangible assets and right-of-use assets | 701 | 21 | 722 |
Major customers
Stedin Group has no customers for which the net revenue per customer amounts to 10% or more of total net revenue.
