3.29. Presentation of reports by business segments
A company’s operating segments are defined as components that:
a) carry out activities from which they may obtain revenues and incur expenses;
b) whose operating results are regularly reviewed by the Management to make decisions about resources to be allocated to the segment and assess its performance; and
c) for which there is financial information.
The Company has determined the following operating segments:
|
I) |
Generation, in which activities consist in electric power generation and sale of electricity for distribution companies and consumers, and marketing; |
|
II) |
Transmission, in which activities consist in the transmission of electrical energy; |
|
III) |
Distribution, in which activities consist in the distribution of electrical energy to the final consumer; |
|
IV) |
Management, in which activities represent mainly the cash management of the whole Eletrobras Group, the management of the compulsory loan and the business management of the SPEs and associates, whose monitoring and management is made differently from other corporate investments; and |
Eliminations, represent the transactions between related parties and inter-segment transactions eliminated for consolidation purposes.
Transactions between these operating segments are determined by prices and terms agreed between the parties, taking into account the terms applied to transactions with unrelated parties.