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Results by business area

The representation of performance by business area presented here is based on the approach used by management in monitoring Group performance for the two periods under review, taking account of the operational model adopted by the Group as described above.

Taking account of the provisions of IFRS 8 regarding the management approach, the new “Enel X” Business Line modified the structure of reporting, as well as the representation and analysis of Group performance and financial position, as from March 31, 2018. More specifically, performance by business area reported in this Annual Report was determined by designating the Regions and Countries perspective as the primary reporting segment. In addition, account was taken of the possibilities for the simplification of disclosures associated with the materiality thresholds also established under IFRS 8 and, therefore:

  • “Thermal Generation” and “Trading & Upstream” are presented together given the considerable interaction and interdependence between them;
  • the item “Other, eliminations and adjustments” includes not only the effects from the elimination of intersegment transactions, but also the figures for the Parent Company, Enel SpA.

The following chart outlines these organizational arrangements.

Economic results

The new organization, which continues to be based on a matrix of Business Lines, now calls for the integration of the various companies of the Enel Green Power Group in the various Business Lines by geographical area, functionally including the “Large Hydro” businesses, which formally remain under the thermal power generation companies, and a new configuration for the geographical areas (i.e. Italy, Iberia, Europe and Euro-Mediterranean Affairs, South America, North and Central America, Africa, Asia and Oceania, Central/Holding). In addition, the new business structure is divided as follows: Thermal Generation, Trading, Infrastructure and Networks, Enel Green Power, Enel X, Retail, Services and Holding.