NOTE 4 OPERATING ACTIVITY
4.1 Operating segments
IFRS 8 requires companies to present financial information aggregated into “operating segments”. The operating segments must reflect the groupings made by “the chief operating decision maker” for the purposes of allocating resources and assessing the performance of the consolidated group.
For aggregation to occur, IFRS 8 requires that the operating segments have similar long-term economic characteristics, and be similar in each of the following respects:
- the nature of the products and services;
- the nature of the production processes;
- the type or class of customer for their products and services;
- the methods used to distribute their products or provide their services; and
- if applicable, the nature of the regulatory environment, for example, banking, insurance or public utilities.
Chief operating decision maker
Edenred’s chief operating decision maker is the Chief Executive Officer assisted by the Executive Committee (or “executive management”). Executive management makes decisions about resource allocation to the operating segments and assesses their performance.
Executive management decisions are based on data produced by the Group’s internal reporting system. The internal reporting system presents information at the country level. This is because Edenred’s business is multi-location with operational decisions made at the level of each homogeneous geographic area.
In the Group’s internal reporting system, country-level information is aggregated into four geographical operating segments:
- Europe (excluding France);
- Latin America;
- Rest of the World.
Except France, the presented segments are thus aggregations of operating segments.
The “Europe (excluding France)” and “Latin America” aggregations meet the criteria mentioned above.
The “Rest of the World” segment aggregates the countries that are not included in “France”, “Europe (excluding France)” and “Latin America”.
Finally, “Others” includes the Edenred SA holding company, regional headquarters and companies with no operating activity.
Transactions between segments are not material.
Condensed financial information
Income statement (in € millions)
Executive management uses the following indicators to track business performance:
- total revenue;