Note 5 Operating segments Fiven identifies its segments according to the organization and reporting structure as decided and followed up by group management. Operating segments are components of a business that are evaluated regularly by the chief operating decision maker, defined as the Chairman, for the purpose of assessing performance and allocating resources. Fiven has three reportable segments: Fiven Norway, Fiven Brazil and Fiven Belgium. Fiven Norway - The two plants in Norway in respectively Lillesand and Arendal are focused on specialty products as well as abrasive applications. Arendal is the oldest still running silicon carbide plant in the world. Fiven Brazil - The largest silicon carbide plant within the Fiven Group is located in Barbacena, Brazil. Mainly supplying the American continent market, the plant provides solutions for refractory and metallurgical applications. Fiven Belgium - The processing plant in Hody, Belgium, delivers mainly products for metallurgical and refractory applications. Fiven Belgium’s source of crude silicon carbide has traditionally been Fiven entities in Venezuela acting as an extension of the Belgian operations with no other customers than the Belgian entity. In November 2022 the Venezuelan production entities were sold, and a supply agreement was entered into with the new owner. Other - Fiven ASA has offices in Oslo, Norway. Together with Fiven GmbH in Cologne, Germany, they are performing headquarter and management activities for the Fiven Group. Fiven also has a subsidiary in Pittsburgh (USA) performing sales and marketing services, and a sales representation office in Shanghai (China). Operating segment information Segment performance is evaluated based on Adjusted EBITDA (as defined in the APM attachment). Adjusted EBITDA shows the Group’s operating profit (loss) before depreciation and amortization, before items that require special explanation. “Other income and expenses” (OIE), include one-off and non-recurring operating expenses, but excludes operating income excess power sales for 2022. The Alternative Performance Measures (APMs) are further explained in the APM attachment to the annual report. Fiven's financing and taxes are managed on a group basis and are not allocated to operating segments. Eliminations comprise mainly of intersegment sales. Transactions between operating segments are conducted on an arm's length basis in a manner similar to transactions with third parties. The accounting policies used for segment reporting reflect those used for the group. SEGMENT REPORTING FOR THE PERIOD 1 JANUARY TO 31 DECEMBER 2022 Amounts in EUR thousand Fiven Norway Fiven Brazil Fiven Belgium Other Total segment reporting Revenue from contracts with customers 74 721 93 593 23 943 - 192 258 Other income 15 161 1 11 2 15 174 Total revenue and other income from external customers 89 882 93 594 23 955 2 207 432 Revenue from other group segments 2 842 23 903 1 492 (28 236) - Total revenue and other income 92 724 117 497 25 447 (28 235) 207 432 Operating expenses (excluding depr. and amort.) (57 199) (83 908) (26 951) 27 645 (140 413) Other gains and losses 1 22 388 - - - 22 388 Operating profit (loss) before depreciation and amortization 57 913 33 588 (1 505) (589) 89 408 Non-recurring & other non-financial items 2 (30 302) 306 779 1 267 (27 950) Adjusted EBITDA 27 611 33 894 (725) 677 61 457 Operating profit (loss) before depreciation and amortization 57 913 33 588 (1 505) (589) 89 408 Depreciation and amortization (2 486) (1 535) (229) (1 186) (5 437) Operating profit (loss) 83 971 1 Other items relate to the gain or loss on fair value of a power contract, refer to note 23 for further information. 2 Of non-recurring & other non-financial items kEUR (30 353) is related to power contract income. Fiven Annual Report 2022 44 Financial statements
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