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Operating Segments
 12 Months Ended
Dec. 31, 2022
Disclosure of operating segments [abstract]  
Operating Segments
Note 22 - Operating Segments
 
The Company’s reportable segments, which form the Company’s strategic business units, are described below:
 
  ●
Photovoltaic power plants (“PV Plants”) – Operation of installations that convert the energy in sunlight into electrical energy as follows: (i) approximately 7.9MWp aggregate installed capacity of photovoltaic power plants in Spain, (ii) Ellomay Solar S.L.U, a photovoltaic plant with a peak capacity of 28 MW in the municipality of Talaván, Cáceres, Spain, that was connected to the electricity grid at June 24, 2022 (iii) 51% of Talasol, with a peak capacity of 300 MW in the municipality of Talaván, Cáceres, Spain, (iv) a photovoltaic power plant of approximately 9 MWp installed capacity in Israel (v) Ellomay Solar Italy One SRL and Ellomay Solar Italy Two SRL that are constructing photovoltaic plants with installed capacity of 14.8 MW and 4.95 MW respectively, in the Lazio Region, Italy and (vi) Ellomay Solar Italy four SRL, Ellomay Solar Italy five SRL and Ellomay Solar Italy Ten SRL that are developing photovoltaic projects with installed capacity of 15.06 MW, 87.2 MW and 18 respectively, in the Lazio Region, Italy that have reached “ready to build” status.
  ●
Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V. (BioGas), project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million Nm3 per year, respectively.
  ●
Dorad Energy Ltd. (Dorad) – 9.375% indirect interest in Dorad, which owns and operates a combined cycle power plant based on natural gas, with production capacity of approximately 860 MW, located south of Ashkelon, Israel.
  ●
Pumped storage hydro power plant (Manara) – 83.333% indirect interest in a company constructing a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel.
 
Factors that management used to identify the Company’s reportable segments
 
The Company’s strategic business units offer different products, and the allocation of resources and evaluation of performance is managed separately because they require different technology.
 
For each of the strategic business units, the Company’s chief operating decision maker (“CODM”) reviews internal management reports on at least a quarterly basis. The following summary describes the operations in each of the Company’s operating segments.
 
The Company presented the photovoltaic power plants per geographical areas, as the information collected and analyzed by the CODM in connection with the PV Plants is presented based on the physical location of the PV Plant. The CODM reviews the NIS denominated information on Dorad and the PV Plant located in Israel and the information presented in the tables below is translated into euro. The CODM reviews the results of Dorad according to the Company’s share in Dorad. In the reports analyzed by the CODM, the PV Plant located in Israel is presented under the fixed asset model and not under the financial asset model as per IFRIC 12, please see the adjusted gross profit calculation.
 
Performance is measured based on segment adjusted gross profit as included in reports that are regularly reviewed by the chief operating decision maker. Segment adjusted gross profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.

 

   
PV
                      
Total
              
               
Ellomay
                
Bio
                
reportable
          
Total
  
   
Italy
    
Spain
    
Solar
    
Talasol
    
Israel
    
Gas
    
Dorad
    
Manara
    
segments
    
Reconciliations
    
consolidated
  
   
For the year ended December 31, 2022
  
   
€ in thousands
  
                                                                   
Revenues
    
-
      
3,264
      
3,597
      
32,740
      
1,119
      
12,640
      
62,813
      
-
      
116,173
      
(62,813
)
    
53,360
  
Operating expenses
    
-
      
(322
)
    
(1,399
)
    
(8,764
)
    
(418
)
    
(13,186
)
    
(47,442
)
    
-
      
(71,531
)
    
47,442
      
(24,089
)
Depreciation expenses
    
-
      
(908
)
    
(427
)
    
(11,400
)
    
(512
)
    
(2,824
)
    
(6,339
)
    
-
      
(22,410
)
    
6,318
      
(16,092
)
Gross profit (loss)
    
-
      
2,034
      
1,771
      
12,576
      
189
      
(3,370
)
    
9,032
      
-
      
22,232
      
(9,053
)
    
13,179
  
                                                                                         
Adjusted gross profit (loss)
    
-
      
2,034
      
1,771
      
12,576
      
1,565
1 
    
(3,370
)
    
9,032
      
-
      
23,608
      
(10,429
)
    
13,179
  
Project development costs
                                                                                    
(3,784
)
General and administrative expenses
                                                                                    
(5,892
)
Share of loss of equity accounted investee
                                                                                    
1,206
  
Operating profit
                                                                                    
4,709
  
Financing income
                                                                                    
9,565
  
Financing expenses in connection
                                                                                        
with derivatives and warrants, net
                                                                                    
605
  
Financing expenses, net
                                                                                    
(12,636
)
Loss before taxes on income
                                                                                    
2,243
  
                                                                                         
Segment assets as at December 31, 2022
    
22,608
      
14,577
      
20,090
      
244,584
      
34,750
      
32,002
      
107,079
      
137,432
      
613,122
      
(36,965
)
    
576,157
  
 
1 The gross profit of the Talmei Yosef PV Plant located in Israel is adjusted to include income from the sale of electricity (approximately €3,427 thousand) and depreciation expenses (approximately €2,051 thousand) under the fixed asset model, which were not recognized as revenues and depreciation expenses, respectively, under the financial asset model as per IFRIC 12.
 
   
PV
                      
Total
              
               
Ellomay
                
Bio
                
reportable
          
Total
  
   
Italy
    
Spain
    
Solar
    
Talasol
    
Israel
    
Gas
    
Dorad
    
Manara
    
segments
    
Reconciliations
    
consolidated
  
   
For the year ended December 31, 2021
  
   
€ in thousands
  
                                                                   
Revenues
    
-
      
2,587
      
-
      
29,432
      
*1,016
      
12,686
      
51,630
      
-
      
97,351
      
(51,630
)
    
45,721
  
Operating expenses
    
-
      
(472
)
    
-
      
(6,305
)
    
(367
)
    
(10,446
)
    
(39,175
)
    
-
      
(56,765
)
    
39,175
      
(17,590
)
Depreciation expenses
    
-
      
(904
)
    
-
      
(10,586
)
    
(475
)
    
(3,135
)
    
(5,539
)
    
-
      
(20,639
)
    
5,523
      
(15,116
)
Gross profit (loss)
    
-
      
1,211
      
-
      
12,541
      
*174
      
(895
)
    
6,916
      
-
      
19,947
      
(6,932
)
    
13,015
  
                                                                                         
Adjusted gross profit (loss)
    
-
      
1,211
      
-
      
12,541
      
1,514
2 
    
(895
)
    
6,916
      
-
      
21,287
      
(8,272
)
    
13,015
  
Project development costs
                                                                                    
(2,508
)
General and administrative expenses
                                                                                    
(5,661
)
Share of loss of equity accounted investee
                                                                                    
117
  
Operating profit
                                                                                    
4,963
  
Financing income
                                                                                    
2,931
  
Financing expenses in connection
                                                                                        
with derivatives and warrants, net
                                                                                    
(841
)
Financing expenses, net
                                                                                    
(28,974
)
Loss before taxes on income
                                                                                    
(21,921
)
                                                                                         
Segment assets as at December 31, 2021
    
1,715
      
13,841
      
14,456
      
247,004
      
38,809
      
34,570
      
118,435
      
107,678
      
576,508
      
(24,529
)
    
551,979
  

 

* Segment presentation for prior periods was adjusted to reflect revenues and operating expenses for the Talmei Yosef PV Plant under IFRIC 12 and not under the fixed asset model and to include the adjusted gross profit of such segment, to align the presentation with the presentation of the segments for the year ended December 31, 2022.

2 The gross profit of the Talmei Yosef PV Plant located in Israel is adjusted to include income from the sale of electricity (approximately €3,239 thousand) and depreciation expenses (approximately €1,899 thousand) under the fixed asset model, which were not recognized as revenues and depreciation expenses, respectively, under the financial asset model as per IFRIC 12.

 

   
PV
                      
Total
              
               
Ellomay
                
Bio
                
reportable
          
Total
  
   
Italy
    
Spain
    
Solar
    
Talasol
    
Israel
    
Gas
    
Dorad
    
Manara
    
segments
    
Reconciliations
    
consolidated
  
   
For the year ended December 31, 2020
  
   
€ in thousands
  
                                                                   
Revenues
    
-
      
2,577
      
-
      
-
      
*1,066
      
6,002
      
57,495
      
-
      
67,140
      
(57,495
)
    
9,645
  
Operating expenses
    
-
      
(463
)
    
-
      
-
      
(379
)
    
(4,109
)
    
(44,489
)
    
-
      
(49,440
)
    
44,489
      
(4,951
)
Depreciation expenses
    
-
      
(905
)
    
-
      
-
      
(462
)
    
(1,457
)
    
(5,674
)
    
-
      
(8,498
)
    
5,523
      
(2,975
)
Gross profit (loss)
    
-
      
1,209
      
-
      
-
      
225
      
436
      
7,332
      
-
      
9,202
      
(7,483
)
    
1,719
  
                                                                                         
Adjusted gross profit (loss)
    
-
      
1,209
      
-
      
-
      
1,400
3 
    
436
      
7,332
      
-
      
10,377
      
(8,658
)
    
1,719
  
Project development costs
                                                                                    
(3,491
)
General and administrative expenses
                                                                                    
(4,512
)
Share of loss of equity accounted investee
                                                                                    
1,525
  
Other income, net
                                                                                    
2,100
  
Operating profit
                                                                                    
(2,659
)
Financing income
                                                                                    
2,134
  
Financing expenses in connection
                                                                                        
with derivatives and warrants, net
                                                                                    
1,094
  
Financing expenses, net
                                                                                    
(6,862
)
Loss before taxes on income
                                                                                    
(6,293
)
                                                                                         
Segment assets as at December 31, 2020
    
503
      
15,220
      
2,354
      
232,955
      
36,521
      
36,253
      
109,983
      
21,925
      
455,714
      
4,458
      
460,172
  
 

* Segment presentation for prior periods was adjusted to reflect revenues and operating expenses for the Talmei Yosef PV Plant under IFRIC 12 and not under the fixed asset model and to include the adjusted gross profit of such segment, to align the presentation with the presentation of the segments for the year ended December 31, 2022.

3 The gross profit of the Talmei Yosef PV Plant located in Israel is adjusted to include income from the sale of electricity (approximately €3,023 thousand) and depreciation expenses (approximately €1,848 thousand) under the fixed asset model, which were not recognized as revenues and depreciation expenses, respectively, under the financial asset model as per IFRIC 12.

 

Geographical information
The Company is domiciled in Israel and it operates in Israel, Spain and Italy through its subsidiaries that promote, develop and own PV Plants, in the Netherlands through its subsidiaries that own anaerobic digestion plants and also in Israel through Dori Energy.
 
The following table lists the revenues from the Company's operations in Israel, the Netherlands, Italy and Spain:
 
   
For the year ended December 31
  
   
2022
    
2021
    
2020
  
   
€ in thousands
  
Israel
    
1,119
      
1,016
      
1,066
  
Italy
    
-
      
-
      
-
  
The Netherlands
    
12,640
      
12,686
      
6,002
  
Spain (including Talasol PV Plant)
    
39,601
      
32,019
      
2,577
  
Total revenues
    
53,360
      
45,721
      
9,645
  
 
The following table lists the fixed assets, net from the Company’s operations in Israel, Spain and the Netherlands:
 
   
As at December 31
  
   
2022
    
2021
  
   
€ in thousands
  
Israel
    
102,518
      
78,928
  
Italy
    
9,043
      
-
  
Spain (including Talasol PV Plant)
    
227,492
      
233,729
  
The Netherlands
    
26,703
      
28,240
  
Total fixed assets, net
    
365,756
      
340,897