Note 27 - 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).

	U.S.A segment -	Produces its revenue from the sale of the electricity which is produced through solar energy in the United States, mostly at fixed tariffs over extended periods. The segment first operated in 2023.

	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.

			For the year ended December 31, 2023
	Israel		Central-Eastern Europe		Western Europe		USA		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			USD in thousands

External revenues		67,687		87,374		90,097		2,274		8,270		255,702		-			255,702
Inter-segment revenues		-		-		-		-		9,074		9,074		(9,074	)		-
Total revenues		67,687		87,374		90,097		2,274		17,344		264,776		(9,074	)		255,702

Segment Adjusted EBITDA		66,680		72,629		78,048		1,518		3,035		221,910		-			221,910

Reconciliations of unallocated amounts:
Headquarter costs (*)																	(30,434	)
Gains from projects disposals																	9,847
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																	40,119
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, project promotion and development expenses (excluding depreciation and amortization and share based compensation).

	For the year ended December 31, 2022
	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		51,363		70,705		58,991		11,113		192,172		-			192,172
Inter-segment revenues		-		-		-		9,111		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		-			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).