Segmental reporting

Under § 8 (3) ElWOG (Electricity Industry and Organization Act), electricity companies must prepare, and publish in the notes, separate balance sheets and income statements for each of these areas: generation, transmission and distribution - if they operate in at least two of these areas. Verbund’s segmentation was based on the provisions of ElWOG. Since generation derives its sales predominantly from business with other segments, it is considered an internal segment and, under IAS 14.35, does not have to prepare separate reports. Generation, therefore, is stated together with electricity trade and distribution under the segment "Electricity”.

Since 01 January 2003, APG, in its role as an eco-balance group representative, is committed, under § 10 para 1 Eco-Electricity Act, to purchasing, on the approved general terms and conditions and at the regulated tariffs, electrical energy from eco-electricity plants that is offered in its control area. Consequently, eco-electricity operations are, for the first time, reported as a separate segment.

The segment "Others/Holding” comprises, in accordance with IAS 14.20, the financing function of Verbundgesellschaft and VERBUND-Finanzierungsservice GmbH as well as the services of the Shared Services Center of VERBUND Management Service GmbH and the telecom activities of VERBUNDTelekom Service GmbH. In contrast to the previous year, all companies that are consolidated at equity were allocated to this segment and the previous year’s figures were adjusted accordingly.

Internal sales are always settled at generally accepted market terms.

SEGMENTAL REPORTING (ACCORDING TO REGIONS)		Million €
	2003	2002
Domestic electricity sales	1,023.0	677.2
Thereof to energy utilities	639.3	541.6
Thereof to industrial and commercial customers	175.3	135.6
Thereof eco-electricity sales	208.4	0.0
Electricity exports	1,172.0	1,090.9
Thereof to EU member states	950.4	884.0
Thereof to other countries	221.6	206.9
Subtotal electricity sales	2,195.0	1,768.1
Revenue from grid services (domestic)	231.3	259.6
Subtotal electricity and grid sales	2,426.3	2,027.7
Other sales revenue (domestic)	51.7	44.5
Total sales revenue	2,478.0	2,072.2
Thereof domestic sales revenue	1,306.0	981.3
Thereof sales revenue abroad	1,172.0	1,090.9

The segmentation according to regions comprises the breakdown of sales revenue according to domestic, EU states and other countries. Since Verbund does not have generation capacities for the export market, the assets and investments allocated to exports are not material.