Accounting policy
Segment information
The segment information is based on internal management reporting and is presented in accordance with the Nilfisk Group\u2019s accounting policies.
Segment income and expenses include those items that are directly attributable to the individual segment and those items that can be reliably allocated to it.
Reportable segments
The reportable segments are generally referred to as business segments. The business segments consist of Professional, Service, Specialty, and Consumer.
The Executive Management Board assesses revenue, gross profit, and EBITDA before special items of the business segments separately to enable decisions concerning allocation of resources and measurement of performance.
Revenue in the reportable segments
The business segments are identified without aggregation of reportable segments.
Cost of sales in the reportable segments
Cost of sales consists of costs incurred in generating the revenue for the year. The cost of raw materials, consumables, inbound freight, production staff, and a proportion of production overheads, including maintenance, amortization, depreciation, and impairment of intangible and tangible assets used in production as well as operation, administration, and management of the production facilities are recognized as cost of sales.
Cost of sales also includes shrinkage, waste production, and any write-downs on inventory for obsolescence.
Assets in the reportable segments
Because the production units deliver products to several business segments and because the business segments in some cases use the same assets, it is not possible to attribute assets reliably to the individual segments.
Sales and distribution costs
Sales and distribution costs include costs incurred for distribution of goods and services sold and costs for sales and distribution personnel, advertising costs, and amortization, depreciation, and impairment of intangible and tangible assets used in the sales and distribution process.
Administrative costs
Administrative costs include costs of staff functions, administrative personnel, office costs, rent, lease payments, amortization, depreciation, and impairment of intangible and tangible assets not relating specifically to cost of sales, research and development, and sales and distribution activities.