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Segment, Geographic and Other Information

12 Months Ended

Dec. 31, 2017

Segment, Geographic and Other Information [Abstract]

Segment, Geographic and Other Information

4.	Segment, Geographic and Other Information

(1)

Segment determination and explanation of the measurements

The Company’s operating segments are its business components that generate discrete financial information that is reported to and regularly reviewed by the Company’s the chief operating decision maker, the Chief Executive Officer, for the purpose of resource allocation and assessment of segment performance. The Company’s reportable segments are ‘Transmission and distribution’, ‘Electric power generation (Nuclear)’, ‘Electric power generation (Non-nuclear)’, ‘Plant maintenance & engineering service’ and ‘Others’; others mainly represent the business unit that manages the Company’s foreign operations.

Segment operating profit (loss) is determined the same way that consolidated operating profit is determined under IFRS without any adjustment for corporate allocations. The accounting policies used by each segment are consistent with the accounting policies used in the preparation of the consolidated financial statements. Segment assets and liabilities are determined based on separate financial statements of the entities instead of on a consolidated basis. There are various transactions between the reportable segments, including sales of property, plant and equipment and so on, that are conducted on an arms-length basis at market prices that would be applicable to an independent third-party. For subsidiaries which are in a different segment from that of its immediate parent company, their carrying amount in separate financial statements is eliminated in the consolidating adjustments in the tables below. In addition, consolidation adjustments in the table below include adjustments of the amount of investment in associates and joint ventures from the cost basis amount reflected in segment assets to that determined using equity method in the consolidated financial statements.

(2)

Financial information of the segments for the years ended December 31, 2015, 2016 and 2017, respectively, are as follows:


		2015
Segment		Total segment revenue			Intersegment revenue			Revenue from external customers		Depreciation and amortization			Interest income			Interest expense			Profit (loss) related to associates and joint ventures			Employee benefit expense			Loss on abandonment of property, plant, and equipment		Increase in provisions, net			Operating profit
		In millions of won
Transmission and distribution	￦		58,164,394			1,230,975			56,933,419		2,859,037			132,809			1,092,594			220,406			135,261			359,521		872,096			13,319,310
Electric power generation (Nuclear)			10,642,352			10,596,189			46,163		3,070,828			24,612			532,490			(595	)		54,572			—		401,839			3,806,617
Electric power generation (Non-nuclear)			21,469,345			20,906,081			563,264		2,337,353			22,171			319,647			(10,686	)		74,007			5,305		148,053			2,704,260
Plant maintenance & engineering service			2,533,887			2,016,699			517,188		85,662			12,293			542			(1,746	)		74,542			—		174,912			332,531
Others			672,250			150,557			521,693		27,491			108,104			127,684			—			343			230		34			80,165
Consolidation adjustments			(34,900,501	)		(34,900,501	)		—		(38,987	)		(58,404	)		(57,273	)		—			(24,033	)		—		5,790			37,993

	￦		58,581,727			—			58,581,727		8,341,384			241,585			2,015,684			207,379			314,692			365,056		1,602,724			20,280,876

Finance income																															1,182,988

Finance expense																															(3,015,457	)

Profit related to associates and joint ventures																															207,379

Profit before income tax																													￦		18,655,786


		2016
Segment		Total segment revenue			Intersegment revenue			Revenue from external customers		Depreciation and amortization			Interest income			Interest expense			Profit (loss) related to associates and joint ventures			Employee benefit expense			Loss on abandonment of property, plant, and equipment		Increase in provisions, net				Operating profit (loss)
		In millions of won
Transmission and distribution	￦		59,862,284			1,890,489			57,971,795		3,226,700			80,882			844,200			(128,402	)		162,326			424,356		711,430				5,274,308
Electric power generation (Nuclear)			11,168,579			11,129,385			39,194		3,130,820			33,111			474,590			(1,082	)		70,582			—		576,223				3,770,165
Electric power generation (Non-nuclear)			21,394,223			20,561,044			833,179		2,523,306			24,171			359,607			(8,342	)		79,846			2,133		276,619				3,211,684
Plant maintenance & engineering service			2,618,388			2,190,207			428,181		98,843			10,672			2,156			478			86,268			—		221,301				210,680
Others			567,836			77,098			490,738		26,817			115,928			97,926			—			1,050			30		168				76,336
Consolidation adjustments			(35,848,223	)		(35,848,223	)		—		(45,498	)		(22,986	)		(25,611	)		—			(26,319	)		—		(3,009	)			(246,813	)

	￦		59,763,087			—			59,763,087		8,960,988			241,778			1,752,868			(137,348	)		373,753			426,519		1,782,732				12,296,360

Finance income																																791,543

Finance expense																																(2,437,087	)

Loss related to associates and joint ventures																																(137,348	)

Profit before income tax																														￦		10,513,468


		2017
Segment		Total segment revenue			Intersegment revenue			Revenue from external customers		Depreciation and amortization			Interest income			Interest expense			Profit (loss) related to associates and joint ventures			Employee benefit expense			Loss on abandonment of property, plant, and equipment		Increase in provisions, net				Operating profit
		In millions of won
Transmission and distribution	￦		59,486,766			2,044,160			57,442,606		3,466,410			49,987			737,971			(105,166	)		158,738			384,595		885,195				1,902,634
Electric power generation (Nuclear)			9,415,752			9,359,468			56,284		3,267,510			21,034			487,503			3,637			80,809			—		801,800				1,347,794
Electric power generation (Non-nuclear)			22,795,816			21,885,251			910,565		2,954,375			18,860			486,176			(6,718	)		94,075			39,335		171,457				1,523,497
Plant maintenance & engineering service			2,621,440			2,211,716			409,724		109,001			10,801			2,967			(70	)		87,344			161		219,382				265,593
Others			655,062			138,352			516,710		36,001			130,003			103,782			—			861			—		(967	)			113,296
Consolidation adjustments			(35,638,947	)		(35,638,947	)		—		(59,586	)		(24,542	)		(28,847	)		—			(30,467	)		—		(386,747	)			167,055

	￦		59,335,889			—			59,335,889		9,773,711			206,143			1,789,552			(108,317	)		391,360			424,091		1,690,120				5,319,869

Finance income																																1,530,618

Finance expense																																(3,127,952	)

Loss related to associates and joint ventures																																(108,317	)

Profit before income tax																														￦		3,614,218

(3)

Information related to segment assets and segment liabilities as of and for the years ended December 31, 2016 and 2017 are as follows:


		2016
Segment		Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
		In millions of won
Transmission and distribution	￦		105,321,129			4,121,462		6,345,004			49,854,420
Electric power generation (Nuclear)			52,782,915			15,384		1,945,610			27,366,938
Electric power generation (Non-nuclear)			47,427,642			1,320,203		3,508,313			26,205,049
Plant maintenance & engineering service			3,106,909			53,399		180,715			1,218,047
Others			7,423,132			—		365,470			2,761,262

Segment totals			216,061,727			5,510,448		12,345,112			107,405,716

Consolidation adjustments:
Elimination of inter-segment amounts			(39,114,371	)		—		(191,901	)		(5,811,800	)
Equity method adjustment			906,239			—		—			—
Deferred taxes			(5,830	)		—		—			4,301,404
Others			(10,723	)		—		—			(1,108,823	)

			(38,224,685	)		—		(191,901	)		(2,619,219	)

Consolidated totals	￦		177,837,042			5,510,448		12,153,211			104,786,497


		2017
Segment		Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets		Segment liabilities
		In millions of won
Transmission and distribution	￦		106,540,154			3,366,309		6,606,512		50,757,798
Electric power generation (Nuclear)			55,011,096			11,843		2,083,967		29,252,816
Electric power generation (Non-nuclear)			47,938,084			1,904,224		3,250,524		26,337,295
Plant maintenance & engineering service			3,273,959			48,320		145,779		1,176,627
Others			7,798,400			—		569,447		3,013,743

Segment totals			220,561,693			5,330,696		12,656,229		110,538,279

Consolidation adjustments:
Elimination of inter-segment amounts			(39,517,829	)		—		23,616		(5,239,156	)
Equity method adjustment			754,314			—		—		—
Deferred taxes			2,215			—		—		5,339,450
Others			(11,478	)		—		—		(1,814,299	)

			(38,772,778	)		—		23,616		(1,714,005	)

Consolidated totals	￦		181,788,915			5,330,696		12,679,845		108,824,274

(4)

Geographic information

Electric sales, the main operations of the Company, are conducted in the Republic of Korea where the controlling company is located. The following information on revenue from external customers and non-current assets is determined by the location of the customers and of the assets:


Geographical unit		Revenue from external customers						*Non-current assets(2)**
Geographical unit		2015		2016		2017		2015		2016		2017
		In millions of won
Domestic	￦		54,351,076		55,310,011		55,652,807		143,788,043		148,297,677		153,436,810
Overseas(*1)			4,230,651		4,453,076		3,683,082		4,526,395		4,474,699		4,497,535

	￦		58,581,727		59,763,087		59,335,889		148,314,438		152,772,376		157,934,345

(*1)

Middle East and other Asian countries make up the majority of overseas revenue and non-current assets.

(*2)

Amount excludes financial assets and deferred tax assets.

(5)

Information on significant customers

There is no individual customer comprising more than 10% of the Company’s revenue for the years ended December 31, 2015, 2016 and 2017.