Annual Report - EDP

notes to the consolidated EDP and - Energias company de Portugal, financial S.A. statementsfor the years ended 31 december 2012 and 2011Notes to the Consolidated and Company Financial Statementsfor the years ended 31 December 2012 and 2011The segments defined by the Group are the following:• Long Term Contracted Generation in Iberia;• Liberalised Activities in Iberia;• Regulated Networks in Iberia;• EDP Renováveis;• EDP Brasil.The Long Term Contracted Generation in Iberia segment corresponds to the activity of electricity generation of plants with CMEC and SRP plants in Portugal and Spain.This segment includes, namely, the following companies:• EDP - Gestão da Produção de Energia, S.A. (CMEC and SRP generation);• Energin, S.A.;• Soporgen, S.A.;• EDP Produção Bioléctrica, S.A.;• Fisigen - Empresa de Cogeração, S.A.The Liberalised Activities segment in Iberia corresponds to the activity of unregulated generation and supply of electricity and gas in Portugal and Spain. This segmentincludes, namely, the following companies:• EDP - Gestão da Produção de Energia, S.A. (liberalised generation);• Empresa Hidroeléctrica do Guadiana, S.A.;• Electrica de la Ribera del Ebro, S.A.;• Hidroeléctrica Del Cantábrico, S.L.;• Central Térmica Ciclo Combinado Grupo 4, S.A.;• Patrimonial de La Ribera del Ebro, S.L.;• EDP Comercial - Comercialização de Energia, S.A.;• Hidrocantábrico Energia, S.A.U.;• EDP Soluções Comerciais, S.A.;• Naturgás Comercializadora, S.A.The Regulated Networks segment in Iberia corresponds to the activities of electricity and gas distribution in Portugal and Spain and last resort supplier. This segmentincludes, namely, the following companies:• EDP Distribuição de Energia, S.A.;• EDP Serviço Universal, S.A.;• Electra de Llobregat Energía, S.L.;• Hidrocantábrico Distribucion Eléctrica, S.A.U.;• Portgás - Soc. de Produção e Distribuição de Gás, S.A.;• EDP Gás Serviço Universal, S.A.;• Naturgás Energia Transporte, S.A.U.;• Naturgás Energia Distribución, S.A.U.The EDP Renováveis segment corresponds to the power generation activity through renewable energy resources and includes all the companies of EDPR Europe,EDPR North America, EDPR Canada and EDPR Brasil subgroups. This segment also includes the holding company EDP Renováveis, S.A., and all the adjustmentsbetween the companies composing this segment, including consolidation adjustments.The EDP Brasil segment includes the activities of electricity generation, distribution and supply in Brazil, and is composed by the Holding EDP Energias do Brasil, S.A.and all its subsidiaries, with the exception of EDP Renováveis Brasil which is included in the EDP Renováveis segment. As in the EDP Renováveis segment, this segmentincludes all the adjustments for the companies composing this segment, including consolidation adjustments.The column Corporate Activities segment includes the centralised management of financial investments, namely the centralised management of human resources,logistic platforms and shared service centers.The column Adjustments segment includes the adjustments related to the elimination of financial investments in the EDP Group subsidiaries and the remainingconsolidation adjustments and intra-segments eliminations.Segment DefinitionThe amounts reported in each business segment result from the aggregation of the subsidiaries and business units defined in each segment perimeter and theelimination of transactions between companies of the same segment.The statement of financial position captions of each subsidiary and business unit are determined based on the amounts booked directly in the companies thatcompose the segment, including the elimination of balances between companies of the same segment, and excluding the allocation in the segments of theadjustments between segments.The income statement captions for each business segment are based in the amounts booked directly in the companies financial statements and related businessunits, adjusted by the elimination of transactions between companies of the same segment.Nevertheless, since EDP - Gestão da Produção de Energia, S.A.’s assets belong to more than one business segment, namely the CMEC and SRP generation plants -allocated to the Long Term Contracted Generation - and the liberalised generation plants - allocated to the Liberalised Activities -, it was necessary to allocate all itsgains, costs, assets and liabilities to those power plants.254A World Full Of Energy