Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Operating Segments

v3.19.1
Operating Segments
12 Months Ended
Dec. 31, 2018
Disclosure of operating segments [abstract]  
Segments Information
Note 22 - Operating Segments

The Company presented the results of its reportable segments starting the current reporting period, in view of the Company's recent entry into additional operations such as the Bio Gas in the Netherlands resulting in separate segment reporting reviewed and analyzed by the CODM.  Comparison figures were presented accordingly.

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. Approximately 22.6MWp aggregate installed capacity of photovoltaic power plants in Italy, approximately 7.9MWp aggregate installed capacity of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MWp installed capacity in Israel. Also, Talasol Solar S.L.U which is promoting the construction of a photovoltaic plant with a peak capacity of 300 MW in the municipality of Talaván, Cáceres, Spain.
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 850 MW, located south of Ashkelon, Israel.
Anaerobic digestion plants (Bio Gas) 51% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V., project companies developing and operating anaerobic digestion plants with a green gas production capacity of approximately 375 Nm3/h, in Goor, the Netherlands and 475 Nm3/h, in Oude Tonge, the Netherlands, respectively.
Pumped storage hydro power plant (Manara) 75% of a project to construct 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 Israeli Shekel 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 company’s share in the results of 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.

Performance is measured based on segment gross profit as included in reports that are regularly reviewed by the chief operating decision maker. Segment 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.
 
Segment assets consist of current assets and fixed assets, as included in reports provided regularly to the chief operating decision maker.
 
   
PV
                     
Total
             
                                             
reportable
         
Total
 
   
Italy
   
Spain
   
Israel
   
Talasol
   
Bio Gas
   
Dorad
   
Manara
   
segments
   
Reconciliations
   
consolidated
 
   
For the year ended December 31, 2018
 
   
€ in thousands
 
                                                             
Revenues
   
9,560
     
3,033
     
4,011
     
-
     
4,483
     
58,063
     
-
     
79,150
     
(61,033
)
   
18,117
 
Operating expenses
   
(1,579
)
   
(574
)
   
(507
)
   
-
     
(3,682
)
   
(44,600
)
   
-
     
(50,942
)
   
44,600
     
(6,342
)
Depreciation expenses
   
(3,569
)
   
(828
)
   
(2,042
)
   
-
     
(1,081
)
   
(4,811
)
   
-
     
(12,331
)
   
6,515
     
(5,816
)
Gross profit (loss)
   
4,412
     
1,631
     
1,462
     
-
     
(280)
     
8,652
     
-
     
15,877
     
(9,918
)
   
5,959
 
Project development costs
                                                                   
(2,878
)
   
(2,878
)
General and
                                                                               
 administrative expenses
                                                                   
(3,600
)
   
(3,600
)
Share of profits (loss) of
                                                                               
 equity accounted investee
                                                                   
2,545
     
2,545
 
Other income, net
                                                                   
884
     
884
 
Operating profit
                                                                           
2,910
 
Financing income
                                                                   
2,936
     
2,936
 
Financing income
                                                                               
 (expenses) in connection
                                                                               
 with derivatives, net
                                                                   
494
     
494
 
Financing expenses, net
                                                                   
(5,521
)
   
(5,521
)
Profit before taxes on
                                                                               
 Income
                                                                           
819
 
Segment assets as at
                                                                               
 December 31, 2018
   
54,539
     
16,799
     
34,258
     
15,169
     
18,879
     
105,246
     
2,318
     
247,208
     
(36,048
)
   
211,160
 
 
   
PV
                     
Total
             
                                       
Reportable
         
Total
 
   
Italy
   
Spain
   
Israel
   
Dorad
   
Bio Gas
   
Manara
   
Segments
   
Reconciliations
   
consolidated
 
   
For the year ended December 31, 2017
 
   
€ in thousands
 
Revenues
   
10,143
     
3,007
     
1,378
     
58,234
     
303
     
-
     
73,065
     
(59,429
)
   
13,636
 
Operating expenses
   
(1,660
)
   
(677
)
   
(117
)
   
(45,027
)
   
(95
)
   
-
     
(47,576
)
   
45,027
     
(2,549
)
Depreciation expenses
   
(3,567
)
   
(828
)
   
(447
)
   
(4,817
)
   
(111
)
   
-
     
(9,770
)
   
5,252
     
(4,518
)
Gross profit
   
4,916
     
1,502
     
814
     
8,390
     
97
     
-
     
15,719
     
(9,150
)
   
6,569
 
Project development costs
                                                           
(2,739
)
   
(2,739
)
General and administrative expenses
                                                                       
                                                           
(2,420
)
   
(2,420
)
Share of profits (loss) of equity accounted investee
                                                                       
                                                           
1,531
     
1,531
 
Other income, net
                                                           
18
     
18
 
Operating Profit
                                                                   
2,959
 
Financing income
                                                           
1,333
     
1,333
 
Financing income (expenses) in connection with derivatives, net
                                                                       
                                                                       
                                                           
(3,156
)
   
(3,156
)
Financing expenses, net
                                                           
(7,405
)
   
(7,405
)
Loss before taxes on
Income
                                                                       
                                                                   
(6,269
)
Segment assets as at
December 31, 2017
                                                                       
   
59,441
     
16,779
     
37,903
     
114,282
     
16,882
     
2,386
     
247,673
     
(49,586
)
   
198,087
 
   
PV
                     
Total
             
                                       
reportable
         
Total
 
   
Italy
   
Spain
   
Israel
   
Dorad
   
Bio Gas
   
Manara
   
segments
   
Reconciliations
   
consolidated
 
   
For the year ended December 31, 2016
 
   
€ in thousands
 
                                                       
Revenues
   
8,919
     
2,713
     
-
     
50,730
     
-
     
-
     
62,362
     
(50,730
)
   
11,632
 
Operating expenses
   
(1,518
)
   
(564
)
   
-
     
(39,628
)
   
-
     
-
     
(41,710
)
   
39,628
     
(2,082
)
Depreciation expenses
   
(3,566
)
   
(828
)
   
-
     
(4,612
)
   
-
     
-
     
(9,006
)
   
4,595
     
(4,411
)
Gross profit
   
3,835
     
1,321
     
-
     
6,490
     
-
     
-
     
11,646
     
(6,507
)
   
5,139
 
Project development costs
                                                           
(2,201
)
   
(2,201
)
General and administrative expenses
                                                                       
                                                           
(2,032
)
   
(2,032
)
Share of pro loss of equity accounted investee
                                                                       
                                                           
1,375
     
1,375
 
Other income, net
                                                           
90
     
90
 
Operating Profit
                                                                   
2,371
 
Financing income
                                                           
263
     
263
 
Financing income (expenses) in connection with derivatives, net
                                                                       
                                                                       
                                                           
636
     
636
 
Financing expenses, net
                                                           
(3,333
)
   
(3,333
)
Loss before taxes on
Income
                                                                       
                                                                   
(63
)
Segment assets as at
December 31, 2016
                                                                       
   
62,099
     
17,321
     
-
     
117,047
     
8,360
     
380
     
205,207
     
(56,743
)
   
148,464
 


Geographical information
The Company is domiciled in Israel and it operates in Israel, Italy and in Spain through its subsidiaries that own seventeen 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
 
   
2018
   
2017
   
2016
 
   
€ in thousands
 
Israel
   
1,041
     
183
     
-
 
The Netherlands
   
4,483
     
303
     
-
 
Italy
   
9,560
     
10,143
     
8,919
 
Spain
   
3,033
     
3,007
     
2,713
 
Total revenues
   
18,117
     
13,636
     
11,632
 

The following table lists the fixed assets, net from the Company's operation:
 
   
For the year ended December 31
 
   
2018
   
2017
 
   
€ in thousands
 
Israel
   
17
     
22
 
The Netherlands
   
17,464
     
15,046
 
Italy
   
44,986
     
48,555
 
Spain
   
24,753
     
15,214
 
Total fixed assets, net
   
87,220
     
78,837