Volvo 2012 Annual Report Download - page 116

NOTE 6
SEGMENT REPORTING
New organization
As of January 1, 2012, the Volvo Group introduced a new functional
organization which better utilizes the global potential of the Group’s
brands and products and a new financial framework to reflect the changes
in the organization. The re-organization and the new framework impacts
to some extent how revenues and expenses are reported in the income
statement and between the different reportable segments.
In the new organization from January 1, 2012, the Trucks operations
have been structured according to a functional approach, whereby the
entire Trucks business is managed as one single business area consisting
of five different functional organizations: Group Trucks Sales & Marketing
EMEA (Europe, Middle East, Africa), Group Trucks Sales & Marketing
Americas, Group Trucks Sales & Marketing APAC (Asia Pacific), Group
Trucks Operations and Group Trucks Technology. In addition, a separate
unit for Truck Joint Ventures is included in business area Trucks. Business
areas Buses, Construction Equipment, Volvo Penta and Customer
Finance remain as separate business areas. Governmental Sales and
Volvo Rents are treated as separate business areas in the new organiza-
tion. The Volvo Group is thereby organized in seven business areas after
the divestment of Volvo Aero in October 2012. As from October 1, 2012
the separate unit Truck Joint Ventures is included in Group Truck Sales &
Marketing APAC. As a result of this change, Group Truck Sales & Market-
ing APAC is renamed Group Trucks Sales & Marketing and JV’s APAC.
Former business units Volvo Powertrain, Volvo 3P, Volvo Logistics and
Volvo Parts are included in business area Trucks from 2012. The costs of
these operations are shared between the different business based on
utilization according to the principles of the new financial framework. As
from January 1, 2012 Volvo IT, Group Business Services and Volvo Real
Estate are treated as business support functions and costs of operations
are shared by the business areas based on utilization according to the
principles of the financial framework. As from January 1, 2013, Volvo Real
Estate is included in Group Business Services.
The segment information for 2011 have been restated due to the new
organization.
Read more about the impact on segment reporting 2011 due to the new
organization in Note 32.
2012 Trucks
Con-
struction
Equipment Buses Volvo Penta Volvo Aero
Group
functions
and other
incl. elimi-
nations Industrial Operations Customer Finance Elimina- tions Volvo Group
Net sales, external
customers 190,247 62,449 19,646 7,470 5,219 9,485 294,516 9,131 –303,647
Net sales, internal 2,036 1,109 649 161 –(2,440) 1,515 652 (2,167) 0
I/S Net sales 192,283 63,558 20,295 7, 631 5,219 7,045 296,031 9,783 (2,167) 303,647
Expenses (182,079) (57,785) (20,253) (7,090) (4,452) (8,220) (279,878) (8,291) 2,167 (286,002)
I/S Income from invest-
ments in associated
companies 12 – 9 – – (43) (23) – – (23)
I/S Operating income 10,216 5,773 51 541 767 (1,218) 16,130 1,492 017,622
I/S Interest income and
similar credits 510 – – 510
I/S Interest expense
and simliar charges (2,476) – – (2,476)
I/S Other financial
income and expense (301) – – (301)
I/S Income after
financial items 13,863 1,492 015,355
Other segment
information
Depreciation and
amortization (8,359) (1,751) (354) (309) –(1,214) (11, 9 87 ) (2,768) –(14,755)
Restructuring costs (1,343) (13) (107) (17) –(29) (1,509) (15) –(1,524)
Gains/losses from
divestments –28 – – – 568 596 – – 596
Capital expenditure 11, 2 2 8 1,712 315 171 05,232 18,658 6,544 (76) 25,126
B/S Investments in
associated companies
(the equity method) 209 –71 – – 1,765 – – – 2,045
NOTES TO FINANCIAL STATEMENTS
FINANCIAL INFORMATION 2012
112