Annual Report 2008 - Securitas

90 Annual report
Notes and comments to the consolidated financial statements
SEcONDAry SEGMENTS AND GEOGrAPHIcAL INFOrMATION
Total sales Assets
Investments in
non-current tangible
and intangible assets
MSEK 2008 2007 2008 2007 2008 2007
Nordic region 7,310 6,649 4,753 10,926 –392 –358
Europe excluding Nordic region 26,720 23,434 17,745 14,756 –398 –346
North America 21,248 20,864 12,179 13,227 –132 –123
rest of world 1,294 589 1,042 276 –55 –11
Total 56,572 51,536 35,719 39,185 –977 –838
Note 10. Allocation of revenue
Sales
The Group’s revenue is generated from a range of guarding services. The
sale of alarm products is limited in extent following the dividend of Securitas
Direct and Systems. revenue from cash handling services ceased on
December 8, 2008 due to the dividend of Loomis, and is for 2008 and in
the comparatives included on the line Net income for the year, discontinued
operations. This revenue is thus not included in the Group´s total sales.
The breakdown of sales by segment is provided in Note 9.
Other operating income
Other operating income consists in its entirety of trade mark fees from
Securitas Direct AB and Niscayah Group AB (former Securitas Systems AB).
Trade mark fees from Niscayah Group AB ceased in November 2008.
Financial income
Interest income is accounted for in the statement of income in the period to
which it is attributable. Financial income and expenses are specified Note 14.
Note 11. Operating expenses
STATEMENT OF INcOME cLASSIFIED AccOrDING TO
TyPE OF cOST IN SUMMAry
MSEK 2008 2007 2006
Total sales 56,571.6 51,536.1 49,084.5
Salaries (Note 12) –37,436.8 –34,490.0 –32,167.1
Social benefits (Note 12) –8,409.3 –7,718.9 –8,420.7
Depreciation and amortization
(Notes 13, 18, 19 and 20) –942.1 –865.5 –856.5
Impairment losses
(Notes 17, 18, 19 and 20) – –349.9 –36.6
Bad debt losses (Note 25) –69.4 –13.0 –139.0
Other operating expenses –6,627.4 –5,730.0 –5,341.2
Total operating expenses –53,485.0 –49,167.3 –46,961.1
Operating income 3,086.6 2,368.8 2,123.4
ITEMS AFFEcTING cOMPArABILITy
MSEK 2008 2007 2006
Impairment and bad debt losses 1 – 50.1 –115.7
Provisions – –128.2 –169.3
Other items –29.3 – –264.1
Total items affecting comparability –29.3 –78.1 –549.1
1 Including other items as well as non-current assets and accounts receivable.
Securitas Annual report 2008
ITEMS AFFEcTING cOMPArABILITy ALLOcATED PEr FUNcTION 1
MSEK 2008 2007 2006
Production expenses – –78.1 –69.0
Selling and administrative expenses –29.3 – –480.1
Total items affecting comparability
allocated per function –29.3 –78.1 –549.1
1 Illustrates how items affecting comparability would have been classified per function in the statement
of income if the items had not been disclosed separately on the face of the statement of income.
ITEMS AFFEcTING cOMPArABILITy ALLOcATED PEr SEGMENT
MSEK 2008 2007 2006
Security Services North America – 50.1 –69.0
Security Services Europe – –124.4 –120.6
Mobile and Monitoring – –3.8 –
Other –29.3 – –359.5
Total items affecting comparability
allocated per segment –29.3 –78.1 –549.1
cASH FLOw IMPAcT FrOM ITEMS AFFEcTING cOMPArABILITy
MSEK 2008 2007 2006
Items affecting comparability
according to the statement of income –29.3 –78.1 –549.1
Cash flow 1 –110.8 –15.1 –129.3
Adjustment for effect on cash flow
from items affecting comparability –81.5 63.0 419.8
1 For the 2008 cash flow MSEK –78.5 relates to the cash settlement with the bankruptcy estate of Esabe
in Spain, MSEK –29.1 to listing costs for Loomis and MSEK –3.2 to other items affecting comparability.
For the 2007 cash flow MSEK 50.1 relates to Globe/FAA, MSEK –58.7 to the listing of Securitas Direct
and Systems project and the re–location of the head office and MSEK –6.5 to other items affecting
comparability.
For the 2006 cash flow MSEK –125.1 relates to the listing of Securitas Direct and Systems and the
re-location of the head office and MSEK –4.2 to other items affecting comparability.
AcqUISITION rELATED rESTrUcTUrING
cOSTS ALLOcATED PEr FUNcTION 1
MSEK 2008 2007 2006
Production expenses –19.6 –0.9 –
Selling and administrative expenses –33.0 –1.2 –0.4
Total acquisition related restructuring
costs allocated per function –52.6 –2.1 –0.4
1 Illustrates how acquisition related restructuring costs would have been classified per function in the statement
of income if the items had not been disclosed separately on the face of the statement of
income.
AcqUISITION rELATED rESTrUcTUrING
cOSTS ALLOcATED PEr SEGMENT
MSEK 2008 2007 2006
Security Services North America – – –
Security Services Europe –36.0 –0.4 –0.4
Mobile and Monitoring –13.4 –1.2 –
Other –3.2 –0.5 –
Total acquisition related restructuring
costs allocated per segment –52.6 –2.1 –0.4