Annual Report 2010/11 - Sonova

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5. segment information
segment infoRmation By Business segments
until the acquisition of advanced Bionics in the financial year 2009/10, the group was active in one operating segment.
with the acquisition of advanced Bionics as of december 30, 2009, the group entered into a new business segment
(hearing implants) which is reported separately to the group’s chief operating decision maker. the financial information
that is provided to the group’s chief operating decision maker (ie. chief executive officer), which is used to allocate
resources and to assess the performance, is primarily based on the sales analysis (by product groups and regions) as well
as the consolidated income statements, balance sheets and cash flow statements for the individual segments.
hearing instruments: this operating segment includes the companies that are active in the design, development, manufacture,
distribution and service of hearing instruments and related products. Research and development is predominantly
centralized in switzerland and canada. Production of hearing instruments is concentrated in three production centers in
switzerland, china, and vietnam. technologically advanced production processes are performed in switzerland, whereas
standard assembly of products is conducted in asia. most of the marketing activities are steered by the brand marketing
departments in switzerland, canada, and the united states. the execution of marketing campaigns lies with the sales
organizations in each market. the distribution of products is effected through sales organizations in the individual markets.
the distribution channels of the group in the individual markets vary depending on the sales strategy and the characteristics
of the countries.
hearing implants: this operating segment includes the companies that are active in the design, development, manufacture,
distribution and service of hearing implants and related products. Besides the acquired company advanced Bionics
which provides cochlear implant systems, the segment also consists of Phonak acoustic implants. Phonak acoustic
implants, located in switzerland, is developing a middle ear implant. Research and development, production as well
as marketing activities of advanced Bionics are predominantely centralized in the united states. the distribution of
products is effected through sales organizations in the individual markets.
1,000 chf 2010/11 2009/10 2010/11 2009/10 1) 2010/11 2009/10 2010/11 2009/10 1)
hearing
instruments
hearing
implants
eliminations total
segment sales 1,545,890 1,475,058 70,915 25,248 1,616,805 1,500,306
Intersegment sales (15) (90) (105)
Sales
Operating profit before acquisitionrelated
amortization and impairment
1,545,875 1,475,058 70,825 25,248 1,616,700 1,500,306
(EBITA) 371,661 428,100 (45,039) (7,824) 326,622 420,276
Segment assets 1,873,647 1,891,070 433,573 507,220 (404,274) (555,811) 1,902,946 1,842,479
Unallocated assets2) 268,698 481,547
Total assets 2,171,644 2,324,026
1) Restated based on finalization of the acquisition accounting of advanced Bionics (for details refer to note 3.7).
2) unallocated assets include cash and cash equivalents, other current financial assets (excluding loans), investments in associates/joint ventures, employee
benefit assets, and deferred tax assets.