35. Segments

The Management Board forms the Group’s chief operating decision-maker (‘CODM’). Management has determined the operating segments based on the information reviewed by the CODM for the purposes of allocating resources and assessing performance.

The Group’s business is organized and managed on a geographic basis and operates through three business segments: the G4, Other Europe and Latin America & Asia. All geographic segments are involved in the optical retail industry, and there are no other significant product lines or sources of revenue for the Company.  

The most important measures assessed by the CODM and used to make decisions about resources to be allocated are total net revenue and adjusted EBITDA. Measures of assets and liabilities by segment are not reported to the CODM.

The accounting policies applied in the segment information are in line with those applied for GrandVision as described in the accounting policies.

The following table presents total net revenue and adjusted EBITDA for the operating segments for 2014 and 2013. The adjusted EBITDA is defined as EBTIDA excluding other reconciling items and exceptional non-recurring items. The non-recurring items in 2014 appertain to expenses relating to the anticipated listing, additional expenses for the long-term incentive plan as a result of falling within the scope of IFRS 2, and other small items. A reconciliation from adjusted EBITDA to earnings before taxes is presented within each table below. Other reconciling items represent corporate costs that are not allocated to a specific segment.

in thousands of EUR

G4

Other Europe

Latin America
& Asia

Total

2014

Total net revenue

1,820,412

731,751

264,831

2,816,994

Adjusted EBITDA

364,235

114,046

5,155

483,436

Other reconciling items

- 33,938

Total adjusted EBITDA

449,498

Non-recurring items

- 23,911

Depreciation

- 96,805

Amortization and impairments

- 40,173

Operating income/loss

288,609

Non-operating items:

- Interest income/expense

- 34,366

Earnings before tax

254,243

2013

Total net revenue

1,686,039

694,465

239,676

2,620,180

Adjusted EBITDA

325,680

92,170

5,594

423,444

Other reconciling items

- 22,990

Total adjusted EBITDA

400,454

Non-recurring items

-

Depreciation

- 92,392

Amortization and impairments

- 37,910

Operating income/loss

270,152

Non-operating items:

- Interest income/expense

- 41,033

Earnings before tax

229,119

The breakdown of revenue from external customers by geographical area is shown as follows:

in thousands of EUR

2014

2013

France

565,008

547,903

Germany

402,645

364,382

UK

390,937

331,125

Other countries

1,458,404

1,376,770

2,816,994

2,620,180

The breakdown of non-current assets by geographical area is shown as follows:

in thousands of EUR

31 December 2014

31 December 2013

The Netherlands

99,967

101,005

France

492,821

499,590

UK

236,636

192,250

Italy

206,475

59,170

Other countries

791,420

708,738

1,827,319

1,560,753

The non current assets by geographical area is given based on the location of the assets. This disclosure is given for all the non current assets except financial instruments and deferred tax assets. The comparative figures have been changed to conform to the current year presentation.

Revenue in the Netherlands, the Group’s country of domicile, is €237,830 (2013: €226,552). There are no customers that comprise 10% or more of revenue in any year presented.