Lagercrantz 2008/09

Note 3 Segment reporting

Segment reporting is drawn up for the Group’s lines of business and geographic areas. The Group’s internal reporting system is based on follow-up of the return on the Group’s goods and services, which makes lines of business the primary basis of division. The segments’ results, assets and liabilities are included in directly attributable items, as well as items that can be allocated to the segments in a reasonable and reliable manner. The segments’ investments in non-current assets include all capital expenditure, i.e. in intangible as well as tangible assets. Assets added as a result of acquisitions are not included in the investment value. Amortisation of Group surplus values is included, however. The segment reporting does not include receivables and liabilities relating to taxes or intra-Group transactions.

Lines of business

Lines of business are the Group’s primary segments. The Group consists of the following lines of business:

Geographic areas

Geographic areas constitute the Group’s secondary segment. Information presented about assets of the segments and the period’s capital expenditures in tangible and intangible non-current assets is based on geographic areas grouped according to where the assets are located.

Sales and result by line of business

 Electronics Mechatronics Communications

2008/09 2007/08 2008/09 2007/08 2008/09 2007/08
Revenue





External sales 727 778 628 604 783 790
Internal sales 16 15 3 5 – –
Total revenue 743 793 631 609 783 790
Result





Operating result 24 38 49 50 52 51

Parent Company and eliminations Total

2008/09 2007/08 2008/09 2007/08
Revenue



External sales – – 2,138 2,172
Internal sales –19 –20 – –
Total revenue –19 –20 2,138 2,172
Result



Operating result –20 –8 105 131
Finance income

7 7
Finance expense

–18 –17
Result before taxes

94 121
Taxes and minority interest

–26 –30
Net result

68 91

Transfer pricing between lines of business is on market terms.

Other information by line of business

 Electronics Mechatronics Communications

2008/09 2007/08 2008/09 2007/08 2008/09 2007/08
Assets 297 322 327 335 388 349
Undistributed assets – – – – – –
Total assets 297 322 327 335 388 349
Liabilities 95 116 99 110 150 156
Undistributed liabilities – – – – – –
Total liabilities 95 116 99 110 150 156
Capital expenditures 8 8 10 13 5 4
Depreciation and amortisation 5 5 10 9 9 8
Costs, in addition to depreciation and amortisation that do not result in disbursements – – – – – –

Parent Company Total

2008/09 2007/08 2008/09 2007/08
Assets 9 2 1,021 1,008
Undistributed assets – – 28 47
Total assets 9 2 1,049 1,055
Liabilities 18 23 362 405
Undistributed liabilities – – 169 191
Total liabilities 18 23 531 596
Capital expenditures 0 0 23 25
Depreciation and amortisation 1 1 25 23
Costs, in addition to depreciation and amortisation that do not result in disbursements – – – –
External sales by geographic market

 2008/09 2007/08
Sweden 652 676
Denmark 463 495
Norway 349 347
Finland 179 189
United Kingdom 52 45
Germany 120 126
Poland 42 60
Other Europe 146 154
Other world 135 80

2,138 2,172
Capital expenditures and assets by geographic market

 Capital expenditures Assets

2008/09 2007/08 2008/09 2007/08
Sweden 8 10 480 472
Denmark 5 10 293 282
Norway 3 3 52 65
Finland 6 1 117 110
United Kingdom 0 0 4 12
Germany 1 1 51 51
Poland 0 0 11 15
Other Europe 0 0 3 5
Other world 0 0 4 6
Undistributed assets – – 34 37

23 25 1,049 1,055
Internal net revenue by line of business
Parent Company 2008/09 2007/08
Electronics 10 11
Mechatronics 7 6
Communications 9 9

26 26
Internal net revenue by geographic market

 2008/09 2007/08
Sweden 11 11
Denmark 8 7
Norway 2 2
Finland 3 3
Germany 1 1
Other countries 1 2

26 26
Lagercrantz