Page 84 - EVRY Annual Report 2012

Annual Accounts Group 84
Segment information
The group’s activities were divided into three segments for the purpose of reporting in 2012. The allocation of activities to
segments is based on the products and services delivered, and corresponds with the structures used for routine internal
reporting to the Board of Directors, which is the senior level of decisionmaking in the group.
The IT Operations segment generates its operating revenue fromnetwork services, operation of infrastructure and appli-
cations, security services, user support, and electronic business support services, as well as product sales. IT Operations
delivers accessible and reliable systems operation for its customers to ensure that their employees and customers can use
the systems at all times. The activities of the IT Operations business area cover most industries and sectors, and it oper-
ates principally in Norway and Sweden.
The Solutions segment offers a wide range of software solutions and consulting services, principally in Norway and
Sweden. Solutions offers a complete suite of solutions for the Nordic banking and finance sector. In Norway, Solutions
offers ERP solutions for Norwegianmunicipalities, regional health authorities and national public sector entities. The
business area also supplies solutions for case management and document handling to the public sector, as well as supply-
ing systems for carrying out elections. Solutions Norway also offers application services and information solutions suit-
able for use by all types of industry and sector. In Sweden, Solutions offers ERP solutions for a broad range of industries
and sectors, as well as niche solutions for municipalities, the healthcare sector and the forest products industry. The
Solutions segment also includes the group’s Global Sourcing activities in the Ukraine and in India.
The Consulting segment generates its operating revenue by supplying its expertise in SAP, Microsoft, Oracle and IBM
technology, as well as in project management, systems and applications development, digital commerce and infrastruc-
ture consulting services. The segment also includes sales of hardware. The Consulting segment is well-positioned with
offices in 50 towns and cities across the Nordic countries.
The group’s other activities are shown in the presentation below as corporate costs / eliminations. These activities prin-
cipally relate to financing and central group functions, as well as synergy costs, that are not allocated to the segments.
Non-recurring items are not distributed to the segments in accordance with the management reporting structure in the
group, and are reported as a separate line in the presentation below.
Transactions between the business areas are based onmarket terms and conditions and are reported as corporate costs /
eliminations in the presentation below. The rental of software and other IT equipment is based on the cost from an exter-
nal supplier plus a margin. The segment Consulting, including Global Sourcing, charges other segments an agreed price
equivalent to the price that it charges its best customer. The operating profit (EBITA) reported for each segment includes
revenue and costs related to transactions with other segments of the group.
The group’s senior management routinely monitors the operating profit (EBITA) of each segment and uses this informa-
tion to analyse the various segments’ operational performance and to make decisions on resource allocation. The perfor-
mance of each segment is evaluated on the basis of EBITA, and the measurement of EBITA is consistent with the EBITA
figures reported for the group as a whole. Management also monitors each segment in terms of other key figures such as
operational investment spending, working capital and the turnover time for customer receivables.
Non-recurring items
NOK million Segment 2012 2011 2010
Provisons for restructuring Group -45.0 -59.1 -217.0
Write-down / provisions related to DigOff Solutions -112.0 - -203.0
Termination of pension schemes Group 51.0 - -
Write-down of operating assets IT Operations -67.3 - -
Write-down of goodwill Consulting - -28.6 -
Transactions costs merger ErgoGroup Group - - -24.0
Total non-recurring items -173.3 -87.7 -444.0
The group does not have any single customer that accounts for more than 10 % of its consolidated revenue.
Note 03