NOTES TO THE FINANCIAL STATEMENTS continued
04. Segment information:// Segments
Vector reports on three reportable segments in accordance with NZ IFRS 8 Operating Segments . These segments are reported internally to the group chief executive and the board of directors. This reporting is used to assess performance and make decisions about the allocation of resources. The segments are unchanged from those reported in Vector’s Annual Report for the year ended 30 June 2017. The segments are: Regulated Networks Auckland electricity and gas distribution services. Gas Trading Natural gas and LPG sales, storage and processing, and cogeneration. Technology Metering services, telecommunications and new energy solutions. Segment information is prepared and reported in accordance with Vector’s accounting policies. Intersegment transactions included in the revenues and operating expenses for each segment are on an arms’ length basis. The Technology segment includes the financial performance of E-Co Products Group Limited, SolPho Limited, PowerSmart NZ Limited and Aircon Direct Limited from the dates of acquisition. The measures of segment profit reported to the group chief executive and the board of directors are earnings before interest and tax and earnings before interest, tax, depreciation and amortisation (EBITDA). Corporate activities, comprising shared services and investments, earn revenues that are incidental to Vector’s operations and do not meet the definition of an operating segment under NZ IFRS 8. The results for corporate activities are reported in the reconciliations of segment information to the group’s financial statements. Interest costs (net), fair value change on financial instruments and associates (share of net profit/ (loss)) are reported as corporate activities and are not allocated to the segments. Vector engages with three major customers, each of which contribute greater than ten percent of the group’s revenue. These customers are large energy retailers. For the year ended 30 June 2018, the customers contributed $223.6 million (2017: $228.2 million), $177.2 million (2017: $177.6 million) and $162.7 million (2017: $160.4 million) respectively, which is reported across all segments.
Segment profit
Corporate activities
Major customers
74
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