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- Stock Exchange Releases
- 5/5/2009
IFRS 8 operating segments - segment information for 2008 compliant with the standard
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 5.5.2009, AT 14.50 IFRS 8 OPERATING SEGMENTS - SEGMENT INFORMATION FOR 2008 COMPLIANT WITH THE STANDARD Lemminkäinen is reporting its interim financial reviews from the beginning of the 2009 accounting period in compliance with IFRS 8 Operating Segments. The Standard requires that reportable segment information be based on internal segment r
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 5.5.2009, AT 14.50 IFRS 8 OPERATING SEGMENTS - SEGMENT INFORMATION FOR 2008 COMPLIANT WITH THE STANDARD Lemminkäinen is reporting its interim financial reviews from the beginning of the 2009 accounting period in compliance with IFRS 8 Operating Segments. The Standard requires that reportable segment information be based on internal segment reports that are reviewed by management. Adoption of the Standard has no effect on the number or composition of Lemminkäinen Group's operating segments, but it does change the content of the segment information. The Standard has no effect on geographical segment information. LEMMINKÄINEN GROUP´S OPERATING SEGMENTS (BUSINESS SECTORS) Lemminkäinen Group is organised into four different operating segments. The building construction segment (Lemminkäinen Talo Oy) comprises residential construction, commercial and office construction, industrial and logistics construction, and sports and leisure construction. The infrastructure construction segment (Lemminkäinen Infra Oy) comprises construction and maintenance of road, street and rail networks as well as rock and geotechnical engineering. The Company has its own asphalt, concrete and mineral aggregate production. The technical building services segment (Tekmanni Oy) comprises technical building services, technical facility services and industrial services. The Company also has installation, contracting, servicing and maintenance services. Lemminkäinen Building Products is a seller and contractor of roofing and waterproofing products, concrete and natural stone products, and sports and urban environment products. In addition, management receives reports on Group administration, which forms the segment 'Other operations'. SEGMENT REPORTING In Lemminkäinen Group, management means the Managing Director of Lemminkäinen Corporation, who is the chief operating decision-maker. Internal segment reporting to management covers net sales, depreciation, operating profit, financial items, profit before taxes, non-current assets and liabilities, inventories, trade receivables and accounts payable. The segment information reported to management is generally prepared according to the same principles as those applied in the consolidated financial statements. Imputed items are not considered in segment reporting. Such items include, among others, depreciation of assets acquired by finance leasing, interest separated from payments, warranty provisions, and unrealised gains or losses on derivatives. In segment reporting to management, finance leasing arrangements are treated as ordinary rental agreements, which deviates from the accounting principles of IFRS financial statements. Affiliated companies are combined in segment reporting in proportion to ownership share using the line-by-line method. In IFRS financial statements affiliated companies are combined by the equity method. In segment reporting, intersegment sales are not allocated to segments, owing to their minimal magnitude, and are not reported to management. Lemminkäinen Group's comparative information for 2008 compliant with IFRS 8 is presented in this release. -------------------------------------------------------------------------------- | SEGMENT INFORMATION | | | | | | | 1-12/2008 | | | | | | -------------------------------------------------------------------------------- | | | | | Net | Profit | -------------------------------------------------------------------------------- | | Net | | Operati | financia | Before | | | | | ng | l | | -------------------------------------------------------------------------------- | EUR million | sales | Depreciat | profit | items | taxes | | | | ion | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Building construction | 1,207. | 2.9 | 69.7 | -13.0 | 56.7 | | | 5 | | | | | -------------------------------------------------------------------------------- | Infrastructure | 920.3 | 30.7 | 26.2 | -9.4 | 16.8 | | construction | | | | | | -------------------------------------------------------------------------------- | Technical building | 269.9 | 0.8 | 16.3 | 2.2 | 18.5 | | services | | | | | | -------------------------------------------------------------------------------- | Building products | 156.0 | 2.6 | 10.5 | -0.5 | 9.9 | -------------------------------------------------------------------------------- | Other operations | 13.5 | 0.9 | -3.3 | -7.0 | -10.3 | -------------------------------------------------------------------------------- | Group eliminations | -65.7 | | | | | -------------------------------------------------------------------------------- | Segments, total | 2,501. | 37.9 | 119.4 | -27.8 | 91.6 | | | 5 | | | | | -------------------------------------------------------------------------------- | Reconciling items | -19.7 | -3.0 | 3.8 | -4.4 | -0.6 | -------------------------------------------------------------------------------- | Group total, IFRS | | 2,481. | 34.9 | 123.2 | -32.1 | 91.0 | | | | 8 | | | | | -------------------------------------------------------------------------------- The reconciling items for net sales stem from the equity share treatment of affiliated companies (EUR -17.5 million) and other operating income recognised as net sales in segment reporting. The reconciling items for operating profit comprise EUR 1.1 million in personnel expenses, EUR 0.8 million in gains from the sale of derivatives, EUR 3.3 million from the IFRS treatment of finance leasing, EUR -1.2 million from the change in the warranty provision, and EUR -0.2 million from the equity share treatment of affiliated companies. The reconciling items for financial items are finance leasing interest of EUR -1.5 million as well as exchange rate differences, interest timing differences, and unrealised gains and losses on derivatives. -------------------------------------------------------------------------------- | SEGMENT INFORMATION | | | | | | | 1-9/2008 | | | | | | -------------------------------------------------------------------------------- | | | | | Net | Profit | -------------------------------------------------------------------------------- | | Net | | Operatin | financia | Before | | | | | g | l | | -------------------------------------------------------------------------------- | EUR million | sales | Depreciat | profit | items | taxes | | | | ion | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Building construction | 780.5 | 2.2 | 34.1 | -8.1 | 26.0 | -------------------------------------------------------------------------------- | Infrastructure | 698.1 | 23.2 | 31.0 | -5.3 | 25.7 | | construction | | | | | | -------------------------------------------------------------------------------- | Technical building | 193.4 | 0.6 | 12.7 | 1.5 | 14.2 | | services | | | | | | -------------------------------------------------------------------------------- | Building products | 121.8 | 1.9 | 9.2 | -0.5 | 8.7 | -------------------------------------------------------------------------------- | Other operations | 9.8 | 0.6 | -3.2 | -4.9 | -8.1 | -------------------------------------------------------------------------------- | Group eliminations | -48.5 | | | | | -------------------------------------------------------------------------------- | Segments, total | 1,755. | 28.4 | 83.8 | -17.3 | 66.5 | | | 1 | | | | | -------------------------------------------------------------------------------- | Reconciling items | -15.9 | -0.7 | 1.9 | -0.3 | 1.5 | -------------------------------------------------------------------------------- | Group total, IFRS | 1,739. | 27.7 | 85.7 | -17.6 | 68.0 | | | 3 | | | | | -------------------------------------------------------------------------------- The reconciling items for net sales stem from the equity share treatment of affiliated companies (EUR -14.2 million) and other operating income recognised as net sales in segment reporting. The reconciling items for operating profit comprise EUR 2.1 million in personnel expenses, EUR 0.8 million in gains from the sale of derivatives, EUR -0.5 million from the IFRS treatment of finance leasing, EUR -0.5 million from the change in the warranty provision, EUR 0.2 million from the equity share treatment of affiliated companies, and EUR -0.2 million in other closing entries. The reconciling items for financial items are finance leasing interest of EUR -1.1 million as well as exchange rate differences, interest timing differences, and unrealised gains and losses on derivatives. -------------------------------------------------------------------------------- | SEGMENT INFORMATION | | | | | | | 1-6/2008 | | | | | | -------------------------------------------------------------------------------- | | | | | Net | Profit | -------------------------------------------------------------------------------- | | Net | | Operatin | financia | Before | | | | | g | l | | -------------------------------------------------------------------------------- | EUR million | sales | Depreciat | profit | items | taxes | | | | ion | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Building construction | 572.8 | 1.5 | 19.6 | -5.1 | 14.5 | -------------------------------------------------------------------------------- | Infrastructure | 351.4 | 11.8 | 0.7 | -2.2 | -1.5 | | construction | | | | | | -------------------------------------------------------------------------------- | Technical building | 124.6 | 0.4 | 7.3 | 1.0 | 8.3 | | services | | | | | | -------------------------------------------------------------------------------- | Building products | 70.8 | 1.3 | 3.4 | -0.3 | 3.0 | -------------------------------------------------------------------------------- | Other operations | 6.5 | 0.4 | -1.9 | -3.7 | -5.6 | -------------------------------------------------------------------------------- | Group eliminations | -28.8 | | | | | -------------------------------------------------------------------------------- | Segments, total | 1,097. | 15.3 | 29.0 | -10.3 | 18.6 | | | 3 | | | | | -------------------------------------------------------------------------------- | Reconciling items | -6.6 | -1.1 | 3.1 | -2.3 | 0.8 | -------------------------------------------------------------------------------- | Group total, IFRS | 1,090. | 14.3 | 32.1 | -12.7 | 19.4 | | | 8 | | | | | -------------------------------------------------------------------------------- The reconciling items for net sales stem from the equity share treatment of affiliated companies (EUR -5.4 million) and other operating income recognised as net sales in segment reporting. The reconciling items for operating profit comprise EUR -1.2 million in personnel expenses, EUR 0.8 million in gains from the sale of derivatives, EUR 2.9 million from the IFRS treatment of finance leasing, EUR 0.1 million from the equity share treatment of affiliated companies, and EUR 0.5 million in other closing entries. The reconciling items for financial items are finance leasing interest of EUR -0.8 million as well as exchange rate differences, interest timing differences, and unrealised gains and losses on derivatives. -------------------------------------------------------------------------------- | SEGMENT INFORMATION | | | | | | | 1-3/2008 | | | | | | -------------------------------------------------------------------------------- | | | | | Net | Profit | -------------------------------------------------------------------------------- | | Net | | Operatin | financia | Before | | | | | g | l | | -------------------------------------------------------------------------------- | EUR million | sales | Depreciat | profit | items | taxes | | | | ion | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Building construction | 277.1 | 0.8 | 10.3 | -1.8 | 8.6 | -------------------------------------------------------------------------------- | Infrastructure | 95.1 | 3.7 | -16.4 | -0.6 | -17.1 | | construction | | | | | | -------------------------------------------------------------------------------- | Technical building | 56.6 | 0.2 | 1.7 | 0.5 | 2.2 | | services | | | | | | -------------------------------------------------------------------------------- | Building products | 25.0 | 0.6 | -1.2 | -0.1 | -1.3 | -------------------------------------------------------------------------------- | Other operations | 2.9 | 0.2 | -1.1 | -1.6 | -2.7 | -------------------------------------------------------------------------------- | Group eliminations | -11.5 | | | | | -------------------------------------------------------------------------------- | Segments, total | 445.2 | 5.5 | -6.7 | -3.7 | -10.4 | -------------------------------------------------------------------------------- | Reconciling items | -0.3 | -0.5 | 1.1 | -2.4 | -1.3 | -------------------------------------------------------------------------------- | Group total, IFRS | 444.9 | 4.9 | -5.5 | -6.1 | -11.6 | -------------------------------------------------------------------------------- The reconciling items for net sales stem from the equity share treatment of affiliated companies (EUR -0.2 million) and other operating income recognised as net sales in segment reporting. The reconciling items for operating profit comprise EUR 0.4 million in personnel expenses, EUR 0.5 million from the IFRS treatment of finance leasing, EUR -0.2 million from the equity share treatment of affiliated companies, and EUR 0.5 million in other closing entries. The reconciling items for financial items are finance leasing interest of EUR -0.4 million as well as exchange rate differences, interest timing differences, and unrealised gains and losses on derivatives. -------------------------------------------------------------------------------- | NET SALES, QUARTERLY | | | | | | -------------------------------------------------------------------------------- | | 1-3/ | 4-6/ | 7-9/ | 10-12/ | | -------------------------------------------------------------------------------- | EUR million | 2008 | 2008 | 2008 | 2008 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Building construction | 277.1 | 295.7 | 207.8 | 426.9 | | -------------------------------------------------------------------------------- | Infrastructure | 95.1 | 256.4 | 346.6 | 222.3 | | | construction | | | | | | -------------------------------------------------------------------------------- | Technical building | 56.6 | 68.0 | 68.8 | 76.5 | | | services | | | | | | -------------------------------------------------------------------------------- | Building products | 25.0 | 45.8 | 51.0 | 34.2 | | -------------------------------------------------------------------------------- | Other operations | 2.9 | 3.6 | 3.3 | 3.7 | | -------------------------------------------------------------------------------- | Group eliminations | -11.5 | -17.3 | -19.7 | -17.2 | | -------------------------------------------------------------------------------- | Segments, total | 445.2 | 652.1 | 657.8 | 746.3 | | -------------------------------------------------------------------------------- | Reconciling items | -0.3 | -6.3 | -9.3 | -3.8 | | -------------------------------------------------------------------------------- | Group total, IFRS | 444.9 | 645.9 | 648.5 | 742.5 | | -------------------------------------------------------------------------------- | OPERATING PROFIT, | | | | | | | QUARTERLY | | | | | | -------------------------------------------------------------------------------- | | 1-3/ | 4-6/ | 7-9/ | 10-12/ | | -------------------------------------------------------------------------------- | EUR million | 2008 | 2008 | 2008 | 2008 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Building construction | 10.3 | 9.2 | 14.6 | 35.5 | | -------------------------------------------------------------------------------- | Infrastructure | -16.4 | 17.1 | 30.3 | -4.8 | | | construction | | | | | | -------------------------------------------------------------------------------- | Technical building | 1.7 | 5.6 | 5.4 | 3.7 | | | services | | | | | | -------------------------------------------------------------------------------- | Building products | -1.2 | 4.6 | 5.9 | 1.2 | | -------------------------------------------------------------------------------- | Other operations | -1.1 | -0.8 | -1.3 | -0.1 | | -------------------------------------------------------------------------------- | Segments, total | -6.7 | 35.6 | 54.8 | 35.6 | | -------------------------------------------------------------------------------- | Reconciling items | 1.1 | 2.0 | -1.2 | 1.9 | | -------------------------------------------------------------------------------- | Group total, IFRS | -5.5 | 37.6 | 53.6 | 37.5 | | -------------------------------------------------------------------------------- | ASSETS BY SEGMENT | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 03/200 | 06/2008 | 09/2008 | 12/2008 | | | | 8 | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Building construction | 432.4 | 491.4 | 586.4 | 467.5 | | -------------------------------------------------------------------------------- | Infrastructure | 242.6 | 364.4 | 394.4 | 294.5 | | | construction | | | | | | -------------------------------------------------------------------------------- | Technical building | 28.0 | 34.7 | 33.1 | 33.0 | | | services | | | | | | -------------------------------------------------------------------------------- | Building products | 49.8 | 57.5 | 57.4 | 46.3 | | -------------------------------------------------------------------------------- | Other operations | 41.6 | 41.2 | 41.0 | 41.0 | | -------------------------------------------------------------------------------- | Segments, total | 794.3 | 989.1 | 1,112.3 | 882.2 | | -------------------------------------------------------------------------------- | Assets unallocated to | | | | | | | segments | | | | | | -------------------------------------------------------------------------------- | and Group eliminations | 354.7 | 389.9 | 380.2 | 531.1 | | -------------------------------------------------------------------------------- | Group total, IFRS | 1,149. | 1,379.0 | 1,492.4 | 1,413.3 | | | | 0 | | | | | -------------------------------------------------------------------------------- In segment reporting, assets are trade receivables, inventories and tangible and intangible assets. Intersegment items are eliminated in the IFRS financial statements. -------------------------------------------------------------------------------- | LIABILITIES BY SEGMENT | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | 03/200 | 06/2008 | 09/2008 | 12/2008 | | | | 8 | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Building construction | 46.6 | 60.5 | 63.3 | 57.6 | | -------------------------------------------------------------------------------- | Infrastructure | 33.2 | 81.7 | 93.5 | 55.9 | | | construction | | | | | | -------------------------------------------------------------------------------- | Technical building | 6.3 | 8.8 | 8.0 | 10.0 | | | services | | | | | | -------------------------------------------------------------------------------- | Building products | 4.5 | 7.7 | 8.3 | 5.8 | | -------------------------------------------------------------------------------- | Other operations | 1.1 | 0.5 | 0.4 | 0.7 | | -------------------------------------------------------------------------------- | Segments, total | 91.6 | 159.1 | 173.4 | 129.9 | | -------------------------------------------------------------------------------- | Liabilities unallocated to | | | | | | | segments | | | | | | -------------------------------------------------------------------------------- | and Group eliminations | 781.9 | 919.2 | 983.2 | 941.6 | | -------------------------------------------------------------------------------- | Group total, IFRS | 873.6 | 1,078.3 | 1,156.6 | 1,071.5 | | -------------------------------------------------------------------------------- In segment reporting, liabilities are accounts payable only. Intersegment items are eliminated in the IFRS financial statements. Additional information: Finance Director Jukka Ovaska, tel. +358 2071 53334, jukka.ovaska@lemminkainen.fi LEMMINKÄINEN CORPORATION Corporate Communications DISTRIBUTION: NASDAQ OMX Helsinki Ltd. Key media www.lemminkainen.com Lemminkäinen Group operates in all areas of the construction sector. The Group's business sectors are building construction, infrastructure construction, technical building services, and building products. Net sales in 2008 were approx. EUR 2.5 billion, of which international operations accounted for over a quarter. The Group employs about 9,800 people. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Helsinki Ltd.