| Segmental Reporting |
Note
28 - Segmental Reporting
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.
The
Chief Operation Decision Maker (CODM) reviews the group’s results by segmenting them into three business units: MENA (Middle East
and North Africa), Europe, the US.
Presented
below are details regarding the Company’s operating segments, in accordance with IFRS 8:
|
MENA
segment - |
Produces
its revenue from the sale of the electricity which is produced through solar energy and wind energy in the Middle East and North Africa
(MENA). |
|
|
|
|
Europe
segment - |
Produces
its revenue from the sale of the electricity which is produced through wind energy and solar energy in Europe. |
|
|
|
|
U.S.A
segment - |
Produces
its revenue and income from the sale of the electricity which is produced through solar energy in the United States, mostly at fixed tariffs
over extended periods and from tax benefits. |
|
|
|
|
Others
- |
Produces
its revenue mostly from management services to projects in stages of development, construction or operation, and from construction services
for projects. None of the above meets the quantitative thresholds for determining reportable segment. |
The
results of the segments are measured based on the Company’s segment adjusted EBITDA which is the Operating Profit adjusted to add
the repayments of contract asset under concession agreements, depreciation and amortization, share-based compensation expenses, and non-recurring
events attributed to the Company’s reportable segments. For the purposes of calculating adjusted EBITDA, compensation for inadequate
performance of goods and services procured by the Company are included in other income, net. Compensation for inadequate performance of
goods and services reflects the profits the Company would have generated under regular operating conditions and is therefore included
in adjusted EBITDA. With respect to gains or losses from asset disposals, the Company sells parts of or the entirety of selected renewable
project assets from time to time, and therefore includes realized gains or losses from these asset disposals in adjusted EBITDA. In the
case of partial assets disposals, adjusted EBITDA includes only the actual consideration less the book value of the assets sold.
| |
B. |
Segmental revenues and
results |
| |
|
For
the year ended December 31, 2025 |
|
| |
|
|
|
|
|
|
|
|
|
|
Total
reportable segments |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Revenues
|
|
|
222,388
|
|
|
|
199,763
|
|
|
|
64,911
|
|
|
|
487,062
|
|
|
|
1,534
|
|
|
|
-
|
|
|
|
488,596
|
|
|
Tax benefits
|
|
|
-
|
|
|
|
-
|
|
|
|
93,668
|
|
|
|
93,668
|
|
|
|
-
|
|
|
|
-
|
|
|
|
93,668
|
|
|
External
revenues and income |
|
|
222,388
|
|
|
|
199,763
|
|
|
|
158,579
|
|
|
|
580,730
|
|
|
|
1,534
|
|
|
|
-
|
|
|
|
582,264
|
|
|
Inter-segment revenues
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,551
|
|
|
|
(4,551
|
|
|
|
-
|
|
|
Total
revenues and income |
|
|
222,388
|
|
|
|
199,763
|
|
|
|
158,579
|
|
|
|
580,730
|
|
|
|
6,085
|
|
|
|
(4,551
|
|
|
|
582,264
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (**)
|
|
|
65,784
|
|
|
|
45,463
|
|
|
|
17,206
|
|
|
|
128,453
|
|
|
|
5,466
|
|
|
|
462
|
|
|
|
134,381
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
adjusted EBITDA |
|
|
189,304
|
|
|
|
159,015
|
|
|
|
142,567
|
|
|
|
490,886
|
|
|
|
1,034
|
|
|
|
-
|
|
|
|
491,920
|
|
| |
|
|
|
|
|
|
Reconciliations
of unallocated amounts: |
|
|
|
|
|
|
Headquarter costs (*)
|
|
|
|
(54,135
|
)
|
|
Intersegment profit
|
|
|
|
188
|
|
|
Depreciation and amortization
and share-based compensation |
|
|
|
(160,392
|
)
|
|
Gains from projects disposals
|
|
|
|
|
|
|
Operating
profit |
|
|
|
332,178
|
|
|
Finance income
|
|
|
|
40,851
|
|
|
Finance expenses
|
|
|
|
(164,730
|
)
|
|
Share in the losses of
equity accounted investees |
|
|
|
(3,722
|
|
|
Profit
before income taxes |
|
|
|
204,577
|
|
(*)
Including general and administrative and development expenses (excluding depreciation and amortization and share-based compensation).
(**)
Excluding depreciation and amortization.
| |
|
For
the year ended December 31, 2024 |
|
| |
|
|
|
|
|
|
|
|
|
|
Total
reportable segments |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Revenues
|
|
|
155,693
|
|
|
|
197,143
|
|
|
|
15,748
|
|
|
|
368,584
|
|
|
|
9,351
|
|
|
|
-
|
|
|
|
377,935
|
|
|
Tax benefits
|
|
|
-
|
|
|
|
-
|
|
|
|
20,860
|
|
|
|
20,860
|
|
|
|
-
|
|
|
|
-
|
|
|
|
20,860
|
|
|
External
revenues and income |
|
|
155,693
|
|
|
|
197,143
|
|
|
|
36,608
|
|
|
|
389,444
|
|
|
|
9,351
|
|
|
|
-
|
|
|
|
398,795
|
|
|
Inter-segment revenues
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,569
|
|
|
|
(5,569
|
|
|
|
-
|
|
|
Total
revenues and income |
|
|
155,693
|
|
|
|
197,143
|
|
|
|
36,608
|
|
|
|
389,444
|
|
|
|
14,920
|
|
|
|
(5,569
|
|
|
|
398,795
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (**)
|
|
|
29,792
|
|
|
|
35,450
|
|
|
|
4,957
|
|
|
|
70,199
|
|
|
|
9,470
|
|
|
|
1,027
|
|
|
|
80,696
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
adjusted EBITDA |
|
|
123,724
|
|
|
|
165,385
|
|
|
|
33,539
|
|
|
|
322,648
|
|
|
|
4,141
|
|
|
|
-
|
|
|
|
326,789
|
|
| |
|
|
|
|
|
|
Reconciliations
of unallocated amounts: |
|
|
|
|
|
|
Headquarter costs (*)
|
|
|
|
(37,774
|
)
|
|
Intersegment profit
|
|
|
|
100
|
|
|
Depreciation and amortization
and share-based compensation |
|
|
|
(117,249
|
)
|
|
Other incomes not attributed
to segments |
|
|
|
3,669
|
|
|
Operating
profit |
|
|
|
175,535
|
|
|
Finance income
|
|
|
|
20,439
|
|
|
Finance expenses
|
|
|
|
(107,844
|
)
|
|
Share in the losses of
equity accounted investees |
|
|
|
(3,350
|
|
|
Profit
before income taxes |
|
|
|
84,780
|
|
(*)
Including general and administrative and development expenses (excluding depreciation and amortization and share-based compensation).
(**)
Excluding depreciation and amortization.
| |
|
For
the year ended December 31, 2023 |
|
| |
|
|
|
|
|
|
|
|
|
|
Total
reportable segments |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Revenues
|
|
|
67,687
|
|
|
|
177,471
|
|
|
|
2,274
|
|
|
|
247,432
|
|
|
|
8,270
|
|
|
|
-
|
|
|
|
255,702
|
|
|
Tax benefits
|
|
|
-
|
|
|
|
-
|
|
|
|
5,440
|
|
|
|
5,440
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,440
|
|
|
External
revenues and income |
|
|
67,687
|
|
|
|
177,471
|
|
|
|
7,714
|
|
|
|
252,872
|
|
|
|
8,270
|
|
|
|
-
|
|
|
|
261,142
|
|
|
Inter-segment revenues
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,074
|
|
|
|
(9,074
|
|
|
|
-
|
|
|
Total
revenues and income |
|
|
67,687
|
|
|
|
177,471
|
|
|
|
7,714
|
|
|
|
252,872
|
|
|
|
17,344
|
|
|
|
(9,074
|
|
|
|
261,142
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (**)
|
|
|
13,204
|
|
|
|
31,670
|
|
|
|
778
|
|
|
|
45,652
|
|
|
|
12,888
|
|
|
|
(5,746
|
)
|
|
|
52,794
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
adjusted EBITDA |
|
|
71,350
|
|
|
|
150,677
|
|
|
|
12,133
|
|
|
|
234,160
|
|
|
|
3,035
|
|
|
|
-
|
|
|
|
237,195
|
|
| |
|
|
|
|
|
|
Reconciliations
of unallocated amounts: |
|
|
|
|
|
|
Headquarter costs (*)
|
|
|
|
(30,434
|
)
|
|
Intersegment profit
|
|
|
|
1,587
|
|
|
Repayment of contract
asset under concession arrangements |
|
|
|
(14,120
|
)
|
|
Depreciation and amortization
and share-based compensation |
|
|
|
(70,766
|
)
|
|
Other incomes not attributed
to segments |
|
|
|
34,681
|
|
|
Operating
profit |
|
|
|
158,143
|
|
|
Finance income
|
|
|
|
36,799
|
|
|
Finance expenses
|
|
|
|
(68,143
|
)
|
|
Share in the losses of
equity accounted investees |
|
|
|
(330
|
|
|
Profit
before income taxes |
|
|
|
126,469
|
|
(*)
Including general and administrative and development expenses (excluding depreciation and amortization and share-based compensation).
(**)
Excluding depreciation and amortization.
|