The Group has six reportable segments. The segments are identified from the Group’s two main business areas, Consumer Durables and Professional Products.
Products for the consumer durables market, i.e., major appliances and small appliances, have five reportable segments: Major Appliances Europe, Middle East and Africa; Major Appliances North America; Major Appliances Latin America; Major Appliances Asia/Pacific; and Small Appliances. Products within major appliances comprise mainly of refrigerators, freezers, cookers, dryers, washing machines, dishwashers, room air-conditioners and microwave ovens. Small appliances include vacuum cleaners and other small appliances.
In Professional Products, there are two operating segments that are aggregated into one reportable segment in accordance with the aggregation criteria. The segments are regularly reviewed by the President and CEO, the Group’s chief operating decision maker.
The segments are responsible for the operating results and the net assets used in their businesses, whereas financial items and taxes as well as net borrowings and equity are not reported per segment. The operating results and net assets of the segments are consolidated using the same principles as for the total Group. The segments consist of separate legal units as well as divisions in multi-segment legal units where some allocations of costs and net assets are made. Operating costs not included in the segments are shown under Group common costs, which mainly are costs for Group functions.
Sales between segments are made on market conditions with arm’s-length principles.
| Net sales | Operating income | |||
|---|---|---|---|---|
| 2013 | 2014 | 2013 | 2014 | |
| Major Appliances Europe, Middle East and Africa | 33,436 | 34,438 | 347 | 1,444 |
| Major Appliances North America | 31,864 | 34,141 | 2,136 | 1,714 |
| Major Appliances Latin America | 20,695 | 20,041 | 979 | 1,079 |
| Major Appliances Asia/Pacific | 8,653 | 8,803 | 467 | 448 |
| Small Appliances | 8,952 | 8,678 | 391 | 200 |
| Professional Products | 5,550 | 6,041 | 510 | 671 |
| 109,150 | 112,142 | 4,830 | 5,556 | |
| Common Group costs | 1 | 1 | –775 | –776 |
| Items affecting comparability | — | — | –2,475 | –1,199 |
| Total | 109,151 | 112,143 | 1.58 | 3,581 |
| Financial items, net | –676 | –584 | ||
| Income after financial items | — | — | 904 | 2,997 |
In the internal management reporting, items affecting comparability is not included in the segments. The table specifies the segments to which they correspond.
| Impairment/restructuring | ||
|---|---|---|
| 2013 | 2014 | |
| Major Appliances Europe, Middle East and Africa | –828 | –1,212 |
| Major Appliances North America | — | — |
| Major Appliances Latin America | — | –10 |
| Major Appliances Asia/Pacific | –351 | –10 |
| Small Appliances | -82 | — |
| Common Group costs, etc. | –1,214 | 33 |
| Total | –2,475 | –1,199 |
Inter-segment sales exist with the following split:
| 2013 | 2014 | |
|---|---|---|
| Major Appliances Europe, Middle East and Africa | 479 | 745 |
| Major Appliances North America | 1,052 | 953 |
| Major Appliances Asia/Pacific | 171 | 357 |
| Eliminations | 1,702 | 2,055 |
The segments are responsible for the management of the operational assets and their performance is measured at the same level, while the financing is managed by Group Treasury at group or country level. Consequently, liquid funds, interest-bearing receivables, interest-bearing liabilities and equity are not allocated to the business segments.
| Assets December 31, |
Equity and liabilities December 31, |
Net assets December 31, |
||||
|---|---|---|---|---|---|---|
| 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | |
| Major Appliances Europe, Middle East and Africa | 22,936 | 22,484 | 14,408 | 15,650 | 8,528 | 6,834 |
| Major Appliances North America | 12,886 | 16,555 | 7,606 | 9,968 | 5,280 | 6,587 |
| Major Appliances Latin America | 12,875 | 14,574 | 6,321 | 7,661 | 6,554 | 6,913 |
| Major Appliances Asia/Pacific | 4,866 | 5,713 | 2,852 | 3,250 | 2,014 | 2,463 |
| Small Appliances | 4,756 | 5,144 | 3,202 | 3,676 | 1,554 | 1,468 |
| Professional Products | 2,720 | 2,931 | 1,760 | 2,012 | 960 | 919 |
| Other1) | 7,285 | 8,053 | 7,214 | 7,138 | 71 | 915 |
| 68,324 | 75,454 | 43,363 | 49,355 | 24,961 | 26,099 | |
| Liquid funds | 7,232 | 9,835 | — | — | — | |
| Interest-bearing liabilities | — | — | 14,905 | 14,703 | — | — |
| Pension assets/liablities | 445 | 399 | 3,425 | 5,162 | — | — |
| Equity | — | — | 14,308 | 16,468 | — | — |
| Total | 76,001 | 85,688 | 76,001 | 85,688 | — | — |
1) Includes common functions, tax items and restructuring provisions.
| Depreciation and amortization | Capital expenditure | Cash flow1) | ||||
|---|---|---|---|---|---|---|
| 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | |
| Major Appliances Europe, Middle East and Africa | 1,455 | 1,530 | 1,294 | 977 | 373 | 3,366 |
| Major Appliances North America | 751 | 823 | 855 | 853 | 1,616 | 1,402 |
| Major Appliances Latin America | 458 | 551 | 742 | 535 | 259 | 1,034 |
| Major Appliances Asia/Pacific | 203 | 229 | 267 | 349 | 412 | 388 |
| Small Appliances | 204 | 230 | 225 | 162 | 296 | 386 |
| Professional Products | 99 | 104 | 76 | 75 | 530 | 796 |
| Other2) | 186 | 204 | 76 | 55 | –1,279 | –810 |
| Items affecting comparability | — | — | — | — | –603 | –1,026 |
| Financial items | — | — | — | — | –540 | –488 |
| Taxes paid | — | — | — | — | –1,343 | –985 |
| Total | 3,356 | 3,671 | 3,535 | 3,006 | –279 | 4,063 |
1) Cash flow from operations and investments.
2) Includes Group functions.
| Net sales1) | ||
|---|---|---|
| 2013 | 2014 | |
| USA | 31,006 | 32,885 |
| Brazil | 14,752 | 14,919 |
| Germany | 5,385 | 5,945 |
| Australia | 4,711 | 4,418 |
| Sweden (country of domicile) | 3,933 | 4,236 |
| Canada | 3,810 | 4,048 |
| France | 3,481 | 3,836 |
| Switzerland | 4,255 | 3,799 |
| Italy | 3,208 | 3,403 |
| United Kingdom | 2,989 | 3,254 |
| Other | 31,621 | 31,400 |
| Total | 109,151 | 112,143 |
1) Revenues attributable to countries on the basis of the customer’s location.
Tangible and non-tangible fixed assets located in the Group’s country of domicile, Sweden, amounted to SEK 1,550m (1,870). Tangible and non-tangible fixed assets located in all other countries amounted to SEK 26,612m (24,281). Individually, material countries in this aspect are Italy with SEK 3,069m (3,023), USA with SEK 5,747m (4,509) and Egypt with SEK 2,607m (2,199), respectively.