Note 22 - Operating Segments

The Company’s reportable segments, which form the Company’s strategic business units, are described below:

●

Photovoltaic power plants (PV Plants) – Operation of installations that convert the energy in sunlight into electrical energy as follows: (i) approximately 22.6MWp aggregate installed capacity of photovoltaic power plants in Italy, that the Company sold on December 20, 2019, (ii) approximately 7.9MWp aggregate installed capacity of photovoltaic power plants in Spain, (iii) a photovoltaic power plant of approximately 9 MWp installed capacity in Israel, (iv) Ellomay Solar S.L.U that is constructing a photovoltaic plant with a peak capacity of 28 MW in the municipality of Talaván, Cáceres, Spain and and (v) 51% of Talasol, which during the majority of the reporting period was constructing a photovoltaic plant with a peak capacity of 300 MW in the municipality of Talaván, Cáceres, Spain.

●

Dorad Energy Ltd. (Dorad) – 9.375% indirect interest in Dorad, which owns and operates a combined cycle power plant based on natural gas, with production capacity of approximately 860 MW, located south of Ashkelon, Israel.

●

Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million (with a license to produce 7.5 million) Nm3 per year, respectively.

●

Pumped storage hydro power plant (Manara) – 75% of a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel.

Factors that management used to identify the Company’s reportable segments

The Company’s strategic business units offer different products and the allocation of resources and evaluation of performance is managed separately because they require different technology.

For each of the strategic business units, the Company’s chief operating decision maker (CODM) reviews internal management reports on at least a quarterly basis. The following summary describes the operations in each of the Company’s operating segments.

The Company presented the photovoltaic power plants per geographical areas, as the information collected and analyzed by the CODM in connection with the PV Plants is presented based on the physical location of the PV Plant. The CODM reviews the New Israeli Shekel denominated information on Dorad and the PV Plant located in Israel and the information presented in the tables below is translated into euro. The CODM reviews the Company’s share in the results of Dorad. In the reports analyzed by the CODM, the PV Plant located in Israel is presented under the fixed asset model and not under the financial asset model as per IFRIC 12.

Performance is measured based on segment gross profit as included in reports that are regularly reviewed by the chief operating decision maker. Segment gross profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.

Segment assets consist of current assets and fixed assets, as included in reports provided regularly to the chief operating decision maker.

	PV																		Total
																			reportable						Total
	Italy		Spain			Israel			Talasol		Biogas			Dorad			Manara		segments			Reconciliations			consolidated
	For the year ended December 31, 2020
	€ in thousands

Revenues		-		2,577			4,089			-		6,002			57,495			-		70,163			(60,518	)		9,645
Operating expenses		-		(463	)		(379	)		-		(4,109	)		(44,489	)		-		(49,440	)		44,489			(4,951	)
Depreciation and amortization expenses		-		(905	)		(2,310	)		-		(1,457	)		(5,674	)		-		(10,346	)		7,371			(2,975	)
Gross profit (loss)		-		1,209			1,400			-		436			7,332			-		10,377			(8,658	)		1,719
Project development costs																										(3,491	)
General and
administrative expenses																										(4,512	)
Share of profits (loss) of
equity accounted investee																										1,525
Other income, net																										2,100
Capital gain (loss)																										-
Operating profit (loss)																										(2,659	)
Financing income																										2,134
Financing income
(expenses) in connection
with derivatives, net																										1,094
Financing expenses, net																										(6,862	)
Profit (loss) before taxes
on Income																										(6,293	)
Segment assets as at
December 31, 2020		503		17,574			36,521			232,955		36,253			109,983			21,925		455,714			4,458			460,172

	PV																				Total
																					reportable						Total
	Italy			Spain			Israel			Talasol			Biogas			Dorad			Manara		segments			Reconciliations			consolidated
	For the year ended December 31, 2019
	€ in thousands

Revenues		10,082			2,987			4,114			-			4,786			63,416			-		85,385			(66,397	)		18,988
Operating expenses		(1,422	)		(504	)		(325	)		-			(4,387	)		(48,558	)		-		(55,196	)		48,558			(6,638	)
Depreciation and amortization expenses		(3,668	)		(903	)		(2,271	)		(30	)		(1,353	)		(5,031	)		-		(13,256	)		6,840			(6,416	)
Gross profit (loss)		4,992			1,580			1,518			(30	)		(954	)		9,827			-		16,933			(10,999	)		5,934
Project development costs																												(4,213	)
General and
administrative expenses																												(3,827	)
Share of profits (loss) of
equity accounted investee																												3,086
Other income, net																												(2,100	)
Capital gain (loss)																												18,770
Operating profit																												17,650
Financing income																												1,827
Financing income
(expenses) in connection
with derivatives, net																												897
Financing expenses, net																												(10,877	)
Profit before taxes on
Income																												9,497
Segment assets as at
December 31, 2019		-			16,324			38,942			118,848			18,463			116,561			2,473		311,611			(1,439	)		310,172

	PV																			Total
																				reportable						Total
	Italy			Spain			Israel			Talasol		Biogas			Dorad			Manara		segments			Reconciliations			consolidated
	For the year ended December 31, 2018
	€ in thousands

Revenues		9,560			3,033			4,011			-		4,483			58,063			-		79,150			(61,033	)		18,117
Operating expenses		(1,579	)		(574	)		(507	)		-		(3,682	)		(44,600	)		-		(50,942	)		44,600			(6,342	)
Depreciation and amortization expenses		(3,569	)		(828	)		(2,042	)		-		(1,081	)		(4,811	)		-		(12,331	)		6,515			(5,816	)
Gross profit (loss)		4,412			1,631			1,462			-		(280	)		8,652			-		15,877			(9,918	)		5,959
Project development costs																											(2,878	)
General and
administrative expenses																											(3,600	)
Share of profits (loss) of
equity accounted investee																											2,545
Other income, net																											884
Operating profit																											2,910
Financing income																											2,936
Financing income
(expenses) in connection
with derivatives, net																											494
Financing expenses, net																											(5,521	)
Profit before taxes on
Income																											819
Segment assets as at
December 31, 2018		54,539			16,799			34,258			15,169		18,879			105,246			2,318		247,208			(36,048	)		211,160

Geographical information

The Company is domiciled in Israel and it operates in Israel, Italy (until the sale of the Italian Subsidiaries) and in Spain through its subsidiaries that own PV Plants, in the Netherlands through its subsidiaries that own anaerobic digestion plants and also in Israel through Dori Energy. On December 20, 2019, the Company sold ten Italian Subsidiaries, which own twelve photovoltaic plants with an aggregate nominal capacity of approximately 22.6 MW.

The following table lists the revenues from the Company's operations in Israel, the Netherlands, Italy and Spain:

	For the year ended December 31
	2020		2019		2018
	€ in thousands
Israel		1,066		1,133		1,041
The Netherlands		6,002		4,786		4,483
Italy		-		10,082		9,560
Spain		2,577		2,987		3,033
Total revenues		9,645		18,988		18,117

The following table lists the fixed assets, net from the Company's operation:

	As at December 31
	2020		2019
	€ in thousands
Israel		16,651		19
Italy		-		-
Spain		217,339		97,327
The Netherlands		30,105		17,043
Total fixed assets, net		264,095		114,389