Segment reporting

General

Alliander distinguishes the following segments:

• Network operator Liander

• Other

The figures for each reporting segment, excluding incidental items and fair value movements, are shown in the following table. These figures are a direct reflection of the regular internal reporting. Detailed information on segment reporting can be found in note 2 of the financial statements.

Primary segmentation

Network operator Liander

The Liander network operator segment consists of the legal entity Liander N.V., which, as designated network operator within network company Alliander, has a statutory duty to manage the electricity and gas networks and related assets in the provinces of Gelderland and Flevoland, as well as in parts of Friesland, Noord-Holland and Zuid-Holland. Liander connects customers to the energy infrastructure through which it distributes electricity and gas to those customers. Liander’s operating income for 2023 was up €571 million on 2022, coming in at €2,523 million. This increase is mainly due to the increase in the regulated tariffs. Liander’s operating expenses were also up by €413 million. This is mainly caused by the higher tariffs charged by TenneT for the procurement of transmission capacity, increased procurement costs associated with network losses, higher costs due to increasing digitisation and efforts to future-proof our information systems. Employee benefit expenses also increased due to regular raises and increases under the collective labour agreement, and due to the larger workforce. The operating profit of €435 million was €158 million higher than in 2022.

Other

The Other segment covers the entirety of the other operating segments within the Alliander group, such as the activities of Qirion, Kenter, Alliander AG and Firan. At €255 million, external operating income in 2023 was up by €4 million compared with 2022. Operating profit for 2023 amounted to €8 million negative (2022: €10 million profit). The €18 million drop in operating profit is mainly the result of the increased costs of sustainability initiatives and consultancy costs related to the sale of a subsidiary.