notes to the segment reporting
The data for the individual annual financial statements have been segmented by business fields and by region. The structure follows internal reporting (management approach). The segmentation is intended to create transparency with regard to the earning power and the prospects, as well as the opportunities and threats for the various business fields within the Group.
Segment reporting is designed to accommodate the new structure of the kuka Group and comply with the ifrs 5 criteria with regard to accounting for discontinued operations. The kuka Group was engaged in the reporting years 2007 and 2008 in two major business fields:
kuka systems
The segment plans and implements complete plants and systems. In addition to utilizing its application-oriented robotics expertise, the division employs many other metal forming and joining processes in its designs. In the automotive industry, kuka Systems focuses on flexible manufacturing lines for making vehicle bodies. Several different models or variants of a particular model can be built using these systems. Other business segements include press tool manufacturing and automated assembly lines for engine and transmission components. The division is expanding into technically comparable general industry sectors such as the aviation and solar industries.
kuka robotics
This segment offers customers from the automotive sector and general industry – as well as those supported by comprehensive customer services – industrial robots, from small models to the Titan robot weighing in at 1,000 kg.
The kuka Aktiengesellschaft and additional participations that are supplementary to the operating activities of the kuka group have been aggregated in a separate area. In addition, this column also includes the cross-divisional major consolidation and reconciliation items. The attribution of the Group companies to the business segments is shown in the schedule of Shareholdings.
The breakdown of sales revenue by region is based on customer location. Capital employed and assets, investments and employees are calculated by company head office.
The notional calculations for segment reporting rely on the following principles:
- Group external sales revenue shows the divisions’ respective percentage of the Group’s consolidated sales revenue for continuing operations of the Group as presented in the income statement.
- Intra-group sales revenues are related sales transacted between segments.
- In principle, transfer prices for intra-Group sales are determined at the market level.
- Sales revenues for the divisions include revenues from sales to third parties as well as sales to other segments.
- ebit reflects operating earnings; that is, the earnings from ordinary activities – including goodwill impairment charges, if any – before result from financing activities.
- roce (return on capital employed) is the ratio of operating earnings (ebit) to capital employed, which is largely non-interest bearing. The calculation of roce uses an average figure as of the balance sheet date of the reporting period and previous period for capital employed.
- Capital employed comprises:
Intangible assets and tangible assets
Working capital:- inventories,
- receivables related to construction contracts,
- trade receivables,
- other receivables and assets,
- prepaid expenses and deferred changes,
- balance of payables and receivables versus affiliated companies, if not classified as financial transactions.
- less
- other provisions, excluding major provisions for restructuring,
- liabilities from construction contracts,
- advance payments received,
- trade payables,
- other liabilities except for liabilities similar to bonds,
- deferred income.
- Thus capital employed represents the difference between
- operating assets and
- non-interest bearing borrowed capital.
- Segment assets encompass all assets included in Capital Employed plus participations. Segment liabilities encompass all liability items included in Capital Employed plus pensions provisions and similar obligations as well as major liabilities arising from restructurings.
- Capital expenditures are related to additions to property, plant and equipment and intangible assets.
- Amortization / depreciation are related to plant, property and equipment and intangible assets.