Income Statement Group

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NOTE 5
BUSINESS SEGMENT REPORTING
  
Group management constitutes the Groups leading authority. Operational segments are based upon Group management reporting guidelines when allocating resources and assessing profitability.
               
The Group’s corporate structure consists in 2011 of three business areas; Local Infrastructure, Central Infrastructure and Security, based on the entity’s delivery of products and services. In financial terms, Infratek has reported within the following segments based on products supplied in 2011: Local Infrastructure, Central Infrastructure and Security, in addition to geography.
               
Segment information is presented for the Group’s business areas. The Group’s business segments reflect the division into product groups and is based on the Group’s in-house reporting structure. Group management assesses the segments’ performance on the basis of an adjusted operating profit (EBIT). This method of measurement excludes the effect of non-recurring costs when the costs are the result of an isolated incident which is not expected to be repeated. In the segment table such costs are reported as part of the segment “Other” (Group). Expenses related to a lack of subleasing of the Group’s main office have been expensed to Other in 2010 and 2011.
               
An overview of business segments follows:
Local Infrastructure: Comprises the Group’s infrastructure operations in Norway and Sweden geared towards the product areas distribution network, highway and street lighting, fibre/telecom, district heating and railways. The services within this business area are organised among three regions in Sweden and one region in Norway.
               
Central Infrastructure: Comprises the Group’s infrastructure operations in Norway, Sweden and Finland geared towards the central transmission network for power transmission in Scandinavia; products and services related to transformer stations, cables and power lines for higher voltages.
               
Security: Delivers security technology solutions such as alarm systems, CCTV surveillance, access control facilities, integrated security solutions, and electronic anti-theft solutions. The business area also delivers monitoring and inspection services to grid companies, which allow them to fulfil legally mandated responsibilities (so-called DLE services). The Security business area is established in Norway, Sweden and Finland.
               
Other (Group): This segment comprises mainly group costs in the form of costs incurred by the parent company Infratek ASA in connection with the Board, CEO and Group Finance, day-to-day financial reporting, costs linked with the company’s stock market listing as well as shortfall of subleasing revenues from the company’s headquarters. Infratek ASA is located in Norway.
               
Eliminations: This is elimination of Group-internal sales.
               
Segment information
  
Amounts in NOK million
  
Local Infrastructure
restated
Central Infrastructure
restated
Security
Other
Eliminations
Group restated
2010 restated
            
Gross segment operating revenue
1 853
570
314
-
-
2 737
Inter-segment sales
5
9
2
31
(46)
-
Operating revenues
1 858
579
316
31
(46)
2 737
Purchased material
(862)
(253)
(95)
-
(4)
(1 214)
Gross profit
996
326
221
31
(51)
1 522
Personell expenses
(633)
(204)
(129)
(24)
-
(990)
Other operating costs
(244)
(66)
(55)
(34)
51
(348)
EBITDA
118
56
37
(28)
-
184
Depreciations
(26)
(7)
(4)
(6)
-
(42)
EBIT
93
49
33
(33)
-
142
Financial expenses
(3)
(1)
6
(1)
-
1
Pre-tax profit
90
48
39
(34)
-
143
Tax
(26)
(14)
(9)
10
-
(39)
Profit for the year
64
35
30
(25)
-
104
               
               
Amounts in NOK million
Local Infrastructure
Central Infrastructure
Security
Other
Eliminations
Group
2011
            
Gross segment operating revenue
1 981
602
305
3
-
2 890
Inter-segment sales
8
9
1
10
(29)
-
Operating revenues
1 989
611
306
13
(29)
2 890
Purchased material
(959)
(281)
(93)
-
(10)
(1 342)
Gross profit
1 030
330
214
13
(39)
1 548
Personell expenses
(679)
(229)
(132)
(20)
-
(1 060)
Other operating costs
(239)
(82)
(56)
(6)
39
(344)
EBITDA
112
19
27
(13)
-
144
Depreciations
(26)
(7)
(3)
(7)
-
(43)
EBIT
86
12
23
(20)
-
101
Financial expenses
(3)
(1)
5
(2)
-
(1)
Pre-tax profit
83
11
29
(22)
-
100
Tax
(23)
(3)
(6)
6
-
(26)
Profit from discontinued operations
(4)
-
-
-
-
(4)
Profit for the year
56
8
22
(16)
-
71
               
               
Working capital as of 31 December and investments during the year:
  
Amounts in NOK million
Infrastructure
Security
Other
Group
  
2010
          
Working capital
231
32
2
265
  
Investments in operations
32
1
12
45
  
               
Amounts in NOK million
Infrastructure
Security
Other
Group
  
2011
          
Working capital
163
36
1
200
  
Investments in operations
36
1
8
45
  
               
               
Operating revenues from related parties – constitutes more than 10% of the revenue (see also note 18)
  
Amounts in NOK million
Infrastructure
Security
Other
Group
  
2010
          
Operating revenue from Hafslund
595
74
-
669
  
Operating revenue from Fortum
616
1
-
617
  
               
Amounts in NOK million
Infrastructure
Security
Other
Group
  
2011
          
Operating revenue from Hafslund
480
73
-
553
  
Operating revenue from Fortum
706
1
-
707
  
               
Geographical segment information
Amounts in NOK million
Norway restated
Sweden
Finland
Other
Eliminations
Group restated
2010 restated
            
Gross segment operating revenue
1 285
1 267
184
-
-
2 737
Operating profit
107
63
6
(33)
-
142
Profit for the year
80
45
4
(25)
-
104
           
-
  
Working Capital
96
128
39
2
-
265
Investments
22
9
2
12
-
45
               
2011
            
Gross segment operating revenue
1 250
1 451
186
3
-
2 890
Operating profit
71
39
11
(20)
-
101
Profit for the year
46
32
8
(16)
-
71
               
Working Capital
69
101
30
1
-
200
Investments
18
18
1
8
-
45
Other consists of the parent company Infratek ASA