4.1.1Financial Overview

Directional

IFRS

in US$ million

FY 2022

FY 2021

FY 2022

FY 2021

Revenue

3,288

2,242

4,913

3,747

Lease and Operate

1,763

1,509

1,414

1,270

Turnkey

1,525

733

3,499

2,477

Underlying Revenue

3,288

2,317

4,913

3,822

Lease and Operate

1,763

1,584

1,414

1,345

Turnkey

1,525

733

3,499

2,477

EBITDA1

1,010

849

1,209

823

Lease and Operate

1,080

914

719

636

Turnkey

7

19

569

271

Other

(77)

(84)

(80)

(84)

Underlying EBITDA

1,010

931

1,209

906

Lease and Operate

1,080

989

719

711

Turnkey

7

19

569

271

Other

(77)

(76)

(80)

(76)

Profit/(loss) attributable to shareholders

115

121

450

400

Underlying profit attributable to shareholders

115

126

450

405

  • 1 EBITDA, earnings (profit attributable to shareholders) excluding net financing costs, income tax expense, depreciation, amortization and impairment as well as share of profit/(loss) of equity-accounted investees

General

The Company’s primary business segments are ’Lease and Operate’ and ’Turnkey’. Additionally, the Company discloses separately non-allocated corporate income and expense items presented in the category ’Other’. Revenue and EBITDA are analyzed by segment, but it should be recognized that business activities are closely related.

During recent years, the Company’s awarded lease contracts were systematically classified under IFRS as finance leases for accounting purposes, whereby the fair value of the leased asset is recorded as a Turnkey ‘sale’ during construction. For the Turnkey segment, this accounting treatment results in the acceleration of recognition of lease revenues and profits into the construction phase of the asset, whereas the asset generates the cash mainly only after construction and commissioning activities have been completed, as that is the moment the Company is entitled to start receiving the lease payments. In the case of an operating lease, lease revenues and profits are recognized during the lease period, in effect more closely tracking cash receipts. Following the implementation of accounting standards IFRS 10 and 11 starting January 1, 2014, it has also become challenging to extract the Company’s proportionate share of results. To address these accounting issues, the Company discloses Directional reporting in addition to its IFRS reporting. Directional reporting treats all lease contracts as operating leases and consolidates all co-owned investees related to lease contracts on a percentage of ownership basis. Under Directional, the accounting results more closely track cash-flow generation and this is the basis used by the Management Board of the Company to monitor performance and for business planning. Reference is made to 4.3.2 Operating Segments and Directional Reporting for further detail on the main principles of Directional reporting.

The Management Board, as chief operating decision maker, monitors the operating results of the Company primarily based on Directional reporting. The financial information in this section 4.1 Financial Review is presented both under Directional and IFRS while the financial information presented in note 4.3.2 Operating Segments and Directional Reporting is presented under Directional with a reconciliation to IFRS. For clarity, the remainder of the financial statements are presented solely under IFRS, except where expressly stated otherwise.