Note 26 - Segmental Reporting

General

Operating segments are identified based on the internal reports regarding the components of the Company, which are routinely reviewed by the Group’s Chief Operational Decision Maker for the purpose of allocating resource and assessing the performance of operating segments. The set of reports which are submitted to the Group’s Chief Operating Decision Maker, for the purpose of allocating resources and assessing the performance of operating resources, is based on an evaluation of certain solar power systems located in Israel as fixed asset items, which generate electricity revenues, and not as a contract asset under concession arrangement.

Presented below are details regarding the Company’s operating segments, in accordance with IFRS 8:

	Israel segment -	Produces its revenue from the sale of the electricity which is produced through solar energy in Israel, from power purchase agreements at fixed tariffs over extended periods.

	Central-Eastern Europe segment -	Produces its revenue from the sale of the electricity which is produced through wind energy and solar energy in countries of Central-Eastern Europe, mostly at fixed tariffs over extended periods.

	Western Europe segment -	Produces its revenue from the sale of the electricity which is produced through wind energy in countries of Western Europe, mostly at prices determined in the free market (willing buyer to willing seller).

	Management and construction segment -	Produces its revenue from the provision of management services to projects in stages of development, construction or operation, and from the provision of construction services for projects which are fully or partially owned by the Company.

The results of the segments are measured based on the Company’s segment adjusted EBITDA which is the Operating Profit adjusted to add the Financial Asset repayments, depreciation and amortization, non-recurring events, and share-based compensation expenses attributed to the Company’s reportable segments.

Segmental revenues and results

For the year ended December 31, 2022

Israel

Central-Eastern Europe

Western Europe

Management and construction

Total reportable segments

Adjustments

Total

USD in thousands

External revenues

51,363

70,705

58,991

11,113

192,172

Inter-segment revenues

9,111

(9,111

)

Total revenues

51,363

70,705

58,991

20,224

201,283

(9,111

)

192,172

Segment Adjusted EBITDA

57,598

56,181

45,750

4,018

163,547

Reconciliations of unallocated amounts:

Headquarter costs (*)

(18,071

)

Intersegment loss

2,038

Repayment of contract asset under concession arrangements

(17,579

)

Depreciation and amortization and share based compensation

(50,940

)

Other incomes not attributed to segments

11,617

Operating profit

90,612

Finance income

23,341

Finance expenses

(62,591

)

Share in the losses of equity accounted investees

(306

)

Profit before income taxes

51,056

(*)

Including general and administrative, project promotion and development expenses (excluding depreciation and amortization and share based compensation).

	For the year ended December 31, 2021
	Israel		Central-Eastern Europe		Western Europe		Management and construction		Total reportable segments		Adjustments			Total
	USD in thousands		USD in thousands		USD in thousands		USD in thousands		USD in thousands		USD in thousands			USD in thousands

External revenues		18,919		61,326		14,064		8,152		102,461		-			102,461
Inter-segment revenues		-		-		-		10,894		10,894		(10,894	)		-
Total revenues		18,919		61,326		14,064		19,046		113,355		(10,894	)		102,461

Segment Adjusted EBITDA		44,549		51,610		11,183		6,623		113,965		-			113,965

Reconciliations of unallocated amounts:
Headquarter costs (*)															(12,086	)
Intersegment profit															(2,811	)
Repayment of contract asset under concession arrangements															(32,857	)
Depreciation and amortization and share based compensation															(24,480	)
U.S. acquisition expense															(7,331	)
Operating profit															34,400
Finance income															30,333
Finance expenses															(37,175	)
Share in the losses of equity accounted investees															(189	)

Profit before income taxes															27,369

(*)

Including general and administrative, project promotion and development expenses (excluding depreciation and amortization and share based compensation).

	For the year ended December 31, 2020
	Israel		Central-Eastern Europe		Western Europe		Management and construction		Total reportable segments		Adjustments			Total
	USD in thousands		USD in thousands		USD in thousands		USD in thousands		USD in thousands		USD in thousands			USD in thousands

Revenue from external		16,869		48,286		2,613		2,556		70,324		-			70,324
Inter-segment revenues		-		-		-		10,864		10,864		(10,864	)		-
Total Revenues		16,869		48,286		2,613		13,420		81,188		(10,864	)		70,324

Segment Adjusted EBITDA		40,722		40,317		1,222		3,693		85,954		-			85,954

Reconciliations of unallocated amounts:
Headquarter costs (*)															(7,016	)
Intersegment profit															(1,194	)
Repayment of contract asset under concession arrangements															(31,250	)
Depreciation and amortization and share based compensation															(18,120	)
Operating profit															28,374
Finance income															17,214
Finance expenses															(31,408	)
Early prepayment fee															(67,594	)
Share of loss of equity accounted investees															26

Loss before income taxes															(53,388	)

(*)

Including general and administrative, project promotion and development expenses (excluding depreciation and amortization and share based compensation).