5.3.2Operating Segments
The Company’s reportable operating segments as defined by IFRS 8 ‘Operating segments’ are:
- Lease and Operate;
- Turnkey.
The operating segments are measured under Directional Reporting accounting principles, as described under Note 5.2.7. of the consolidated financial statements as of and for the year ended December 31, 2016.
In 2016, the Turnkey segment is impacted by the onerous contract provision related to DSCV SBM Installer and the long term offices rental contracts.
2016 operating segments
|
Lease and Operate |
Turnkey |
Reported
|
Other |
Total Directional reporting |
|
|---|---|---|---|---|---|
|
Third party revenue |
1,310 |
702 |
2,013 |
- |
2,013 |
|
Gross margin |
423 |
142 |
565 |
- |
565 |
|
Other operating income/expense |
(3) |
(39) |
(42) |
(24) |
(66) |
|
Selling and marketing expenses |
(3) |
(35) |
(37) |
0 |
(37) |
|
General and administrative expenses |
(19) |
(61) |
(81) |
(61) |
(142) |
|
Research and development expenses |
0 |
(29) |
(29) |
0 |
(29) |
|
Operating profit/(loss) (EBIT) |
398 |
(22) |
376 |
(86) |
290 |
|
Net financing costs |
(196) |
||||
|
Share of profit of equity-accounted investees |
(61) |
||||
|
Income tax expense |
(9) |
||||
|
Profit/(Loss) |
24 |
||||
|
Operating profit/(loss) (EBIT) |
398 |
(22) |
376 |
(86) |
290 |
|
Depreciation, amortisation and impairment |
425 |
9 |
433 |
2 |
435 |
|
EBITDA |
823 |
(14) |
809 |
(84) |
725 |
|
Other segment information : |
|||||
|
Impairment charge/(reversal) |
(8) |
0 |
(8) |
- |
(8) |
Reconciliation of 2016 operating segments
|
Reported segments under Directional reporting |
Impact of consolidation methods |
Impact of lease accounting treatment |
Impact of Other1 |
Total Consolidated IFRS |
|
|---|---|---|---|---|---|
|
Revenue |
|||||
|
Lease and Operate |
1,310 |
172 |
(210) |
- |
1,273 |
|
Turnkey |
702 |
(17) |
314 |
- |
1,000 |
|
Total revenue |
2,013 |
155 |
105 |
- |
2,272 |
|
Gross margin |
|||||
|
Lease and Operate |
423 |
94 |
38 |
- |
555 |
|
Turnkey |
142 |
(3) |
144 |
- |
283 |
|
Total gross margin |
565 |
91 |
182 |
- |
838 |
|
EBIT |
|||||
|
Lease and Operate |
398 |
93 |
39 |
- |
531 |
|
Turnkey |
(22) |
(2) |
143 |
- |
119 |
|
Other |
- |
0 |
0 |
(86) |
(86) |
|
Total EBIT |
376 |
91 |
182 |
(86) |
564 |
|
EBITDA |
|||||
|
Lease and Operate |
823 |
118 |
(208) |
- |
733 |
|
Turnkey |
(14) |
(1) |
138 |
- |
124 |
|
Other |
- |
- |
- |
(84) |
(84) |
|
Total EBITDA |
809 |
117 |
(70) |
(84) |
772 |
- 1 Impact of business segment that does not meet the definition of an operating segment
2015 operating segments
|
Lease and Operate |
Turnkey |
Reported
|
Other |
Total Directional reporting |
|
|---|---|---|---|---|---|
|
Third party revenue |
1,105 |
1,512 |
2,618 |
- |
2,618 |
|
Gross margin |
342 |
447 |
789 |
- |
789 |
|
Other operating income/expense |
(5) |
(34) |
(38) |
(260) |
(298) |
|
Selling and marketing expenses |
(5) |
(56) |
(61) |
0 |
(60) |
|
General and administrative expenses |
(18) |
(83) |
(101) |
(95) |
(196) |
|
Research and development expenses |
- |
(43) |
(43) |
0 |
(43) |
|
Operating profit/(loss) (EBIT) |
315 |
231 |
545 |
(354) |
191 |
|
Net financing costs |
(137) |
||||
|
Share of profit of equity-accounted investees |
(8) |
||||
|
Income tax expense |
(22) |
||||
|
Profit/(Loss) |
24 |
||||
|
Operating profit/(loss) (EBIT) |
315 |
231 |
545 |
(354) |
191 |
|
Depreciation, amortisation and impairment |
352 |
8 |
360 |
10 |
370 |
|
EBITDA |
667 |
239 |
906 |
(345) |
561 |
|
Other segment information : |
|||||
|
Impairment charge/(reversal) |
13 |
2 |
15 |
- |
15 |
Reconciliation of 2015 operating segments
|
Reported segments under Directional reporting |
Impact of consolidation methods |
Impact of lease accounting treatment |
Impact of Other1 |
Total Consolidated IFRS |
|
|---|---|---|---|---|---|
|
Revenue |
|||||
|
Lease and Operate |
1,105 |
65 |
(151) |
- |
1,020 |
|
Turnkey |
1,512 |
(9) |
181 |
- |
1,685 |
|
Total revenue |
2,618 |
57 |
31 |
- |
2,705 |
|
Gross margin |
|||||
|
Lease and Operate |
342 |
54 |
30 |
- |
426 |
|
Turnkey |
447 |
(21) |
(11) |
- |
414 |
|
Total gross margin |
789 |
33 |
18 |
- |
841 |
|
EBIT |
|||||
|
Lease and Operate |
315 |
51 |
30 |
- |
395 |
|
Turnkey |
231 |
(21) |
(11) |
- |
198 |
|
Other |
- |
0 |
- |
(354) |
(354) |
|
Total EBIT |
545 |
29 |
18 |
(354) |
239 |
|
EBITDA |
|||||
|
Lease and Operate |
667 |
76 |
(151) |
- |
592 |
|
Turnkey |
239 |
(22) |
(2) |
- |
215 |
|
Other |
- |
- |
- |
(345) |
(345) |
|
Total EBITDA |
906 |
53 |
(152) |
(345) |
462 |
- 1 Impact of business segment that does not meet the definition of an operating segment