2014 Financial Statement

EDC 2014 Performance Report
6.
Operating Segment Information
The Company’s operating segments are determined based on geographical segment, with each
segment representing a strategic business location that has similar economic and political
conditions, proximity of operations and specific risks associated with operations in a particular
area.
The Company’s identified reportable segments below are consistent with the segments reported to
the BOD, which is the Chief Operating Decision Maker (CODM) of the Company:
a.
b.
c.
d.
e.
f.
g.
Leyte Geothermal Business Unit (LGBU) -This segment pertains to Leyte geothermal
production field and power plants. This includes projects in Tongonan, Mahanagdong, Upper
Mahiao, Malitbog and other projects in Leyte Province.
Negros Island Geothermal Business Unit (NIGBU) -This segment refers to Southern Negros
geothermal production field and power plants. Power plants included in NIGBU are
Palinpinon I, Palinpinon II, NNGP and Nasulo.
Bacon-Manito Geothermal Business Unit (BGBU) - This segment relates to Bacon-Manito
geothermal production field and power plants.
Mt. Apo Geothermal Business Unit (MAGBU) -This segment refers to Mt. Apo geothermal
production field and power plants.
Pantabangan/Masiway - This segment relates to Pantabangan-Masiway hydroelectric complex
located in Nueva Ecija Province.
Wind-Ilocos Norte Business Unit (WINBU) - This segment pertains to wind projects in
Northern Luzon, including Burgos wind energy project.
All others - refers to other renewable energy projects, foreign investments and head office of
the Company.
Management monitors the operating results of the business segments separately for the purpose of
making decisions about resources to be allocated and of assessing performance. Finance costs,
finance income, income taxes and other charges and income are managed on a group basis.
Segment performance is evaluated based on net income for the year and earnings before interest,
taxes, and depreciation and amortization (EBITDA). Net income for the year is measured
consistent with consolidated net income reported in the consolidated financial statements.
EBITDA is calculated as revenues minus costs of sales of electricity and general and
administrative expenses, excluding non-cash items such as depreciation and amortization,
impairment losses on non-financial assets, and loss on disposal of property, plant and equipment,
among others.
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