FY 2012 Annual Report - Orascom Development

F-33 Orascom Development 2012 Annual Report F-34
7 SEGMENT INFORMATION
7.1 Products and services from which reportable segments derive their revenues
After selling the last subsidiary operating in the “Tours operations” segment and therefore showing the “Tours operations”
segment as discontinued operation (note 14), the Group has four remaining reportable segments, as described below, which are
the Group’s strategic divisions. The strategic divisions offer different products and services and are managed separately because
they require different skills or have different customers. For each of the strategic divisions, the Country CEOs and the Head of
Segments review the internal management reports at least on a quarterly basis. The following summary describes the operation in
each of the Group’s reportable segments:
– Hotels – Include provision of hospitality services in two to five star hotels owned by the Group which are managed by
international or local hotel chains or by the Group itself.
– Real estate and construction – Include acquisition of land in undeveloped areas and addition of substantial value by building
residential real estate and other facilities in stages.
– Land sales – Include sale of land and land rights to third parties on which the Group have developed or will develop certain
infrastructure facilities and where the Group does not have further development commitments.
– Town management – Include provision of facility and infrastructure services at operational resorts and towns.
Other operations include the provision of services from businesses not allocated to any of the segments listed above comprising
rentals from investment properties, mortgages, sports, hospital services, educational services, marina, limousine rentals, laundry
services and other services. None of these segments meets any of the quantitative thresholds for determining a reportable
segment in 2012 or 2011.
The following is an analysis of the Group's revenue from continuing operations by its major products and services.
(i)
Segment
Product
Revenue from external customers
2012 2011
Hotels Hotels managed by international chains 107,571,922 102,012,697
Hotels managed by local chains 26,584,114 24,282,196
Hotels managed by the Group 13,429,956 10,045,297
Segment total 147,585,992 136,340,190
Real estate and construction Tourism real estate 54,699,294 48,963,392
Budget Housing 14,262,654 12,413,287
Construction work 7,447,659 5,593,134
Segment total 76,409,607 66,969,813
Land sales Sales of land and land rights - 2,254,067
Destination management (i) Utilities (e.g. water, electricity) 16,500,275 17,680,163
Other operations Mortgage (Real estate financing) 6,626,927 5,132,459
Sport (Golf) 2,698,181 3,299,447
Rentals (ii) 8,542,561 8,043,705
Hospital services 3,635,022 3,304,702
Educational services 2,318,836 2,244,077
Marina 1,957,357 1,759,677
Limousine 522,438 568,145
Laundry services 83,845 135,284
Others 5,019,809 6,029,894
Segment total 31,404,976 30,517,390
TOTAL 271,900,850 253,761,623
The name of this segment has been changed from “Town Management” to “Destination Management” without any further
changes to the segment itself.
(ii) Rentals include income from investment property of CHF 6,170,558 (2011: CHF 5,943,966) and from other short term rent
contracts in hotels, marinas and golf courses of CHF 2,372,003 (2011: CHF 2,099,739).
7.2 Segment revenue, depreciation and results
The following is an analysis of the Group’s revenue and results from continuing operations by reportable segments:
Total segment revenue Inter-segment revenue Revenue external customers Cost of revenue Depreciation Gross profit/(loss) Segment result
CHF
2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
Hotels 147,585,992 136,340,190 - - 147,585,992 136,340,190 (103,463,909) (102,911,153) (18,355,710) (15,406,495) 25,766,373 18,022,542 19,707,733 16,353,995
Real estate and construction 91,905,466 120,211,348 (15,495,859) (53,241,535) 76,409,607 66,969,813 (76,835,957) (60,689,287) (2,303,264) (3,324,903) (2,729,614) 2,955,623 (2,887,491) 5,141,429
Land sales 2,667,000 2,254,067 (2,667,000) - - 2,254,067 (343,541) (1,776,573) (991,611) (822,128) (1,335,152) (344,634) (3,120,496) (344,634)
Destination management 36,256,490 37,627,873 (19,756,215) (19,947,710) 16,500,275 17,680,163 (17,936,199) (19,024,460) (5,206,170) (5,022,111) (6,642,094) (6,366,408) (6,492,586) (6,620,684)
Other operations 56,763,136 44,882,127 (25,358,160) (14,364,737) 31,404,976 30,517,390 (21,794,408) (21,585,538) (3,361,355) (3,540,605) 6,249,213 5,391,247 12,370,600 338,178
Total 335,178,084 341,315,605 (63,277,234) (87,553,982) 271,900,850 253,761,623 (220,374,014) (205,987,011) (30,218,110) (28,116,242) 21,308,726 19,658,370 19,577,760 14,868,284
Unallocated items*:
Share of (losses) of associates (907,733) (4,980,563)
Other gains and losses (32,122,085) (5,763,837)
Investment income 316,351 4,991,948
Central administration costs and directors’ salaries (76,221,769) (81,434,322)
Finance costs (3,004,924) (3,940,130)
(Loss) before tax (continuing operations) (92,362,400) (76,258,620)
Income tax expenses (10,073,093) (35,619)
(Loss) for the year (continuing operations) (102,435,493) (76,294,239)
* For the purpose of segment reporting, part of the amounts reported for these items in the consolidated statement of comprehensive income have been allocated in the table above to their
relevant segments.
The accounting policies of the reportable segments are the same as the Group’s accounting policies described in note 3. Segment profit represents the profit earned by each segment without
allocation of central administration costs and directors’ salaries, share of profits (losses) of associates, investment income, other gains and losses, finance costs and income tax expense, as included
in the internal management reports that are regularly reviewed by the Board of Directors. This measure is considered to be most relevant for the purpose of resources allocation and assessment of
segment performance.
No single customer contributed ten percent or more to the Group’s revenue for both 2012 and 2011.
No impairment loss in respect of property, plant and equipment as well as goodwill was recognized in 2012 and 2011.
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