Full year report 2012 - Nobel Biocare Corporate

Operating segments are identified geographically as the business is managed on a global basis and isrun in three geographical areas. The business contribution is derived from sales, the cost of goodspurchased from manufacturing sites and expenses related to the sale of products in the respectiveregions. Certain administrative expenses directly attributable to the sale of products are also allocated tothe three geographic regions. The Board of Directors reviews and assesses the business (i.e. sales andbusiness expenses) on this basis.Revenue arises from two integrated product groups, Implant system products and Individualizedproducts. These products are sold in all operating segments, often with both Implant system andIndividualized products forming part of a combined offer as Nobel Biocare is a full-solution provider.in EUR ‘000 Europe, Middle East Americas Asia/Pacific Total Groupand Africa (EMEA)FY 2012 FY 2011 1 FY 2012 FY 2011 1 FY 2012 FY 2011 FY 2012 FY 2011External sales 230’140 236’942 228’441 208’641 121’904 123’596 580’485 569’179Share of total revenue 40% 41% 39% 37% 21% 22% 100% 100%Business expenses –141’840 –139’478 –120’805 –112’582 –65’989 –65’708 –328’634 –317’768Business contribution 88’300 97’464 107’636 96’059 55’915 57’888 251’851 251’4111 Prior year figures are reclassified to reflect changes in the management structure.Certain expenses, presented in the reconciliation, are not attributable to a particular segment and arereviewed as a whole across the Group irrespective of geographic origin. Unallocated business expensesinclude certain production costs remaining with the manufacturing sites. Functional costs compriseheadquarter and plant functions, which include global marketing, global symposia events, quality,logistics, IT, research and development, NobelProcera development, legal and finance. Also included arereconciling and other items, e.g., adjustments and eliminations made in preparing the financialstatements. The business contribution also excludes the effects of Group-wide equity-settled sharebasedexpenses and depreciation, amortization and impairment expenses. The revenue from externalcustomers reported to the Board of Directors is measured in a manner consistent with that in the incomestatement. There are no significant sales between the segments. No individual customer represents asignificant portion of the Group’s revenue.Reconciliationin EUR ‘000 FY 2012 FY 2011Business contribution 251’851 251’411Unallocated business expenses –18’150 –13’982Functional costs –126’897 –128’011Depreciation, amortization and impairment losses –32’033 –32’451Share-based payment expenses –6’117 –4’911Reconciling and other items 32 70Operating profit (EBIT) 68’686 72’126Net financial result –7’691 –16’657Profit before tax 60’995 55’469Full year report 201217/21