KOREA ELECTRIC POWER CORP | CIK:0000887225 | 3

  • Filed: 4/30/2018
  • Entity registrant name: KOREA ELECTRIC POWER CORP (CIK: 0000887225)
  • Generator: Fujitsu
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/887225/000119312518141125/0001193125-18-141125-index.htm
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    • ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory

    4. Segment, Geographic and Other Information

     

    (1) Segment determination and explanation of the measurements

    The Company’s operating segments are its business components that generate discrete financial information that is reported to and regularly reviewed by the Company’s the chief operating decision maker, the Chief Executive Officer, for the purpose of resource allocation and assessment of segment performance. The Company’s reportable segments are ‘Transmission and distribution’, ‘Electric power generation (Nuclear)’, ‘Electric power generation (Non-nuclear)’, ‘Plant maintenance & engineering service’ and ‘Others’; others mainly represent the business unit that manages the Company’s foreign operations.

    Segment operating profit (loss) is determined the same way that consolidated operating profit is determined under IFRS without any adjustment for corporate allocations. The accounting policies used by each segment are consistent with the accounting policies used in the preparation of the consolidated financial statements. Segment assets and liabilities are determined based on separate financial statements of the entities instead of on a consolidated basis. There are various transactions between the reportable segments, including sales of property, plant and equipment and so on, that are conducted on an arms-length basis at market prices that would be applicable to an independent third-party. For subsidiaries which are in a different segment from that of its immediate parent company, their carrying amount in separate financial statements is eliminated in the consolidating adjustments in the tables below. In addition, consolidation adjustments in the table below include adjustments of the amount of investment in associates and joint ventures from the cost basis amount reflected in segment assets to that determined using equity method in the consolidated financial statements.

     

    (2) Financial information of the segments for the years ended December 31, 2015, 2016 and 2017, respectively, are as follows:

     

              2015  

    Segment

    		         Total
    segment
    revenue    		     Intersegment
    revenue    		     Revenue
    from
    external
    customers    		     Depreciation
    and
    amortization    		     Interest
    income    		     Interest
    expense    		     Profit (loss)
    related to
    associates
    and joint
    ventures    		     Employee
    benefit
    expense    		     Loss on
    abandonment of
    property, plant,
    and equipment    		     Increase in
    provisions, net    		           Operating
    profit    		  
              In millions of won  

    Transmission and distribution

    		   ￦       58,164,394       1,230,975       56,933,419       2,859,037       132,809       1,092,594       220,406       135,261       359,521       872,096         13,319,310  

    Electric power generation (Nuclear)

    		       10,642,352       10,596,189       46,163       3,070,828       24,612       532,490       (595 )      54,572       —         401,839         3,806,617  

    Electric power generation (Non-nuclear)

    		       21,469,345       20,906,081       563,264       2,337,353       22,171       319,647       (10,686 )      74,007       5,305       148,053         2,704,260  

    Plant maintenance & engineering service

    		       2,533,887       2,016,699       517,188       85,662       12,293       542       (1,746 )      74,542       —         174,912         332,531  

    Others

    		       672,250       150,557       521,693       27,491       108,104       127,684       —         343       230       34         80,165  

    Consolidation adjustments

    		       (34,900,501 )      (34,900,501 )      —         (38,987 )      (58,404 )      (57,273 )      —         (24,033 )      —         5,790         37,993  
       

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		      

     

     

    		  
      ￦       58,581,727       —         58,581,727       8,341,384       241,585       2,015,684       207,379       314,692       365,056       1,602,724         20,280,876  
       

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		      

     

     

    		  

    Finance income

    		                             1,182,988  
                             

     

     

    		  

    Finance expense

    		                             (3,015,457 ) 
                             

     

     

    		  

    Profit related to associates and joint ventures

    		                             207,379  
                             

     

     

    		  

    Profit before income tax

    		                        

     

     

     

    ￦

     

     

    		     18,655,786  
                             

     

     

    		  

     

              2016  

    Segment

    		         Total
    segment
    revenue    		     Intersegment
    revenue    		     Revenue
    from
    external
    customers    		     Depreciation
    and
    amortization    		     Interest
    income    		     Interest
    expense    		     Profit (loss)
    related to
    associates
    and joint
    ventures    		     Employee
    benefit
    expense    		     Loss on
    abandonment of
    property, plant,
    and equipment    		     Increase in
    provisions, net    		           Operating
    profit (loss)    		  
              In millions of won  

    Transmission and distribution

    		   ￦       59,862,284       1,890,489       57,971,795       3,226,700       80,882       844,200       (128,402 )      162,326       424,356       711,430         5,274,308  

    Electric power generation (Nuclear)

    		       11,168,579       11,129,385       39,194       3,130,820       33,111       474,590       (1,082 )      70,582       —         576,223         3,770,165  

    Electric power generation (Non-nuclear)

    		       21,394,223       20,561,044       833,179       2,523,306       24,171       359,607       (8,342 )      79,846       2,133       276,619         3,211,684  

    Plant maintenance & engineering service

    		       2,618,388       2,190,207       428,181       98,843       10,672       2,156       478       86,268       —         221,301         210,680  

    Others

    		       567,836       77,098       490,738       26,817       115,928       97,926       —         1,050       30       168         76,336  

    Consolidation adjustments

    		       (35,848,223 )      (35,848,223 )      —         (45,498 )      (22,986 )      (25,611 )      —         (26,319 )      —         (3,009 )        (246,813 ) 
       

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		      

     

     

    		  
      ￦       59,763,087       —         59,763,087       8,960,988       241,778       1,752,868       (137,348 )      373,753       426,519       1,782,732         12,296,360  
       

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		      

     

     

    		  
    Finance income                             791,543  
                             

     

     

    		  
    Finance expense                             (2,437,087 ) 
                             

     

     

    		  

    Loss related to associates and joint ventures

    		                             (137,348 ) 
                             

     

     

    		  
    Profit before income tax                         ￦       10,513,468  
                             

     

     

    		  

     

              2017  

    Segment

    		         Total
    segment
    revenue    		     Intersegment
    revenue    		     Revenue
    from
    external
    customers    		     Depreciation
    and
    amortization    		     Interest
    income    		     Interest
    expense    		     Profit (loss)
    related to
    associates
    and joint
    ventures    		     Employee
    benefit
    expense    		     Loss on
    abandonment
    of property,
    plant, and
    equipment    		     Increase in
    provisions, net    		           Operating
    profit    		  
              In millions of won  

    Transmission and distribution

    		     ￦       59,486,766       2,044,160       57,442,606       3,466,410       49,987       737,971       (105,166 )      158,738       384,595       885,195         1,902,634  

    Electric power generation (Nuclear)

    		       9,415,752       9,359,468       56,284       3,267,510       21,034       487,503       3,637       80,809       —         801,800         1,347,794  

    Electric power generation (Non-nuclear)

    		       22,795,816       21,885,251       910,565       2,954,375       18,860       486,176       (6,718 )      94,075       39,335       171,457         1,523,497  

    Plant maintenance & engineering service

    		       2,621,440       2,211,716       409,724       109,001       10,801       2,967       (70 )      87,344       161       219,382         265,593  

    Others

    		       655,062       138,352       516,710       36,001       130,003       103,782       —         861       —         (967 )        113,296  

    Consolidation adjustments

    		       (35,638,947 )      (35,638,947 )      —         (59,586 )      (24,542 )      (28,847 )      —         (30,467 )      —         (386,747 )        167,055  
       

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		      

     

     

    		  
        ￦       59,335,889       —         59,335,889       9,773,711       206,143       1,789,552       (108,317 )      391,360       424,091       1,690,120         5,319,869  
       

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		      

     

     

    		  

    Finance income

    		                             1,530,618  
                             

     

     

    		  

    Finance expense

    		                             (3,127,952 ) 
                             

     

     

    		  

    Loss related to associates and joint ventures

    		                             (108,317 ) 
                             

     

     

    		  

    Profit before income tax

    		                         ￦       3,614,218  
                             

     

     

    		  

     

    (3) Information related to segment assets and segment liabilities as of and for the years ended December 31, 2016 and 2017 are as follows:

     

               2016  

    Segment

    		          Segment
    assets    		     Investments
    in associates
    and joint
    ventures    		      Acquisition of
    non-current
    assets    		     Segment
    liabilities    		  
               In millions of won  

    Transmission and distribution

    		   ￦        105,321,129       4,121,462        6,345,004       49,854,420  

    Electric power generation (Nuclear)

    		        52,782,915       15,384        1,945,610       27,366,938  

    Electric power generation (Non-nuclear)

    		        47,427,642       1,320,203        3,508,313       26,205,049  

    Plant maintenance & engineering service

    		        3,106,909       53,399        180,715       1,218,047  

    Others

    		        7,423,132       —          365,470       2,761,262  
        

     

     

    		    

     

     

    		     

     

     

    		    

     

     

    		  

    Segment totals

    		        216,061,727       5,510,448        12,345,112       107,405,716  
        

     

     

    		    

     

     

    		     

     

     

    		    

     

     

    		  

    Consolidation adjustments:

    		            

    Elimination of inter-segment amounts

    		        (39,114,371 )      —          (191,901 )      (5,811,800 ) 

    Equity method adjustment

    		        906,239       —          —         —    

    Deferred taxes

    		        (5,830 )      —          —         4,301,404  

    Others

    		        (10,723 )      —          —         (1,108,823 ) 
        

     

     

    		    

     

     

    		     

     

     

    		    

     

     

    		  
           (38,224,685 )      —          (191,901 )      (2,619,219 ) 
        

     

     

    		    

     

     

    		     

     

     

    		    

     

     

    		  

    Consolidated totals

    		   ￦        177,837,042       5,510,448        12,153,211       104,786,497  
        

     

     

    		    

     

     

    		     

     

     

    		    

     

     

    		  

     

               2017  

    Segment

    		          Segment
    assets    		     Investments
    in associates
    and joint
    ventures    		      Acquisition of
    non-current
    assets    		      Segment
    liabilities    		  
               In millions of won  

    Transmission and distribution

    		   ￦        106,540,154       3,366,309        6,606,512        50,757,798  

    Electric power generation (Nuclear)

    		        55,011,096       11,843        2,083,967        29,252,816  

    Electric power generation (Non-nuclear)

    		        47,938,084       1,904,224        3,250,524        26,337,295  

    Plant maintenance & engineering service

    		        3,273,959       48,320        145,779        1,176,627  

    Others

    		        7,798,400       —          569,447        3,013,743  
        

     

     

    		    

     

     

    		     

     

     

    		     

     

     

    		  

    Segment totals

    		        220,561,693       5,330,696        12,656,229        110,538,279  
        

     

     

    		    

     

     

    		     

     

     

    		     

     

     

    		  

    Consolidation adjustments:

    		             

    Elimination of inter-segment amounts

    		        (39,517,829 )      —          23,616        (5,239,156 ) 

    Equity method adjustment

    		        754,314       —          —          —    

    Deferred taxes

    		        2,215       —          —          5,339,450  

    Others

    		        (11,478 )      —          —          (1,814,299 ) 
        

     

     

    		    

     

     

    		     

     

     

    		     

     

     

    		  
           (38,772,778 )      —          23,616        (1,714,005 ) 
        

     

     

    		    

     

     

    		     

     

     

    		     

     

     

    		  

    Consolidated totals

    		   ￦        181,788,915       5,330,696        12,679,845        108,824,274  
        

     

     

    		    

     

     

    		     

     

     

    		     

     

     

    		  

     

    (4) Geographic information

    Electric sales, the main operations of the Company, are conducted in the Republic of Korea where the controlling company is located. The following information on revenue from external customers and non-current assets is determined by the location of the customers and of the assets:

     

    Geographical unit

    		          Revenue from external customers     Non-current assets(*2)  
             2015     2016     2017     2015     2016     2017  
               In millions of won  

    Domestic

    		    ￦       54,351,076       55,310,011       55,652,807       143,788,043       148,297,677       153,436,810  

    Overseas(*1)

    		        4,230,651       4,453,076       3,683,082       4,526,395       4,474,699       4,497,535  
        

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  
       ￦       58,581,727       59,763,087       59,335,889       148,314,438       152,772,376       157,934,345  
        

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

     

      (*1) Middle East and other Asian countries make up the majority of overseas revenue and non-current assets.

     

      (*2) Amount excludes financial assets and deferred tax assets.

     

    (5) Information on significant customers

    There is no individual customer comprising more than 10% of the Company’s revenue for the years ended December 31, 2015, 2016 and 2017.