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CONSOLIDATED FINANCIAL REPORT | EXPLANATORY NOTES
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F. SEGMENT INFORMATION
The criteria used for identifying reportable segments are consistent with the way in which management runs
the Group.
The operating performance of the business is evaluated with reference to the following operating segments:
Energy Projects;
Energy Products;
Telecom.
Segment information is currently structured in the same way as the report periodically prepared for the
purpose of reviewing business performance. This report presents operating performance by macro type of
business (Energy Projects, Energy Products and Telecom) and the results of operating segments primarily
on the basis of Adjusted EBITDA, defined as earnings (loss) for the period before non-recurring items (eg.
restructuring costs), the fair value change in metal price derivatives and in other fair value items, amortisation,
depreciation and impairment, finance costs and income and taxes. This report also provides information
about the statement of financial position for the Group as a whole but not by operating segment.
In order to provide users of the financial statements with clearer information, certain economic data is also
reported for the following sales channels and business areas within the individual operating segments:
A) Energy Projects operating segment: encompassing the following high-tech and high value-added
businesses whose focus is on projects and their execution, as well as on product customisation: High
Voltage underground, Submarine and SURF (umbilical cables, flexible pipes and special DHT (Downhole
Technology) cables for the oil industry).
B) Energy Products operating segment: encompassing the businesses offering a complete and innovative
product portfolio designed to meet the various and many needs of the market, namely:
1.
Energy & Infrastructure (E&I): which includes Trade and Installers and Power Distribution;
2.
Industrial & Network Components: which comprises Specialties and OEM, Oil & Gas, Elevators,
Automotive and Network Components;
3.
Other: occasional sales of residual products.
C) Telecom operating segment: producing cable systems and connectivity products used in
telecommunication networks. This segment is organised in the following lines of business: optical fibre,
optical cables, connectivity components and accessories, OPGW (Optical Ground Wire) and copper cables.
All Corporate fixed costs are allocated to the Energy Projects, Energy Products and Telecom operating
segments. Revenues and costs are allocated to each operating segment by identifying all revenues and
costs directly attributable to that segment and by allocating indirect costs on the basis of Corporate
resources (personnel, space used, etc.) absorbed by the operating segments.