Notes to the Consolidated Financial Statements
1. Basic information and principles of the report
2. Changes in Group structure
3. Summary of significant accounting policies
4. Risk assessment and management
5. Management of capital
6. Trade accounts receivable
7. Other current assets and current financial assets
8. Inventories
9. Property, plant and equipment
10. Other non-current assets and non-current financial assets
11. Goodwill and intangible assets
12. Short-term debt
13. Other current liabilities and provisions
14. Long-term debt
15. Financial instruments
16. Retirement benefit plans
17. Participation plans
18. Deferred tax assets and liabilities
19. Other non-current liabilities and provisions
20. Contingencies
21. Capital stock and treasury shares
22. Earnings per share
23. Other operating expenses, net
24. Financial result, net
25. Income tax expenses
26. Leases
27. Research and development cost
28. Free Cashflow
29. Segment reporting
The Geberit Group consists of one single business unit, the purpose of which is to develop, produce and distribute sanitary products and systems for the residential and commercial construction industry. The major part of the products is distributed through the wholesale channel in general to plumbers, who resell the products to the end users. Products are produced by plants that specialise in particular production processes. As a general rule, one specific article is produced at only one location. Distribution is carried out by country or regional distribution subsidiaries, which sell to wholesalers. A distribution subsidiary is always responsible for the distribution of the whole range of products in its sales area. The main task of the distribution companies is local market development, which contains as a main focus the support of installers, sanitary planners, architects, wholesalers and other distributors. Research and development of the whole range of products is carried out centrally by Geberit International AG. All corporate tasks are also centralised at Geberit International AG.
Due to the unity and focus of the business, the top management (Group Executive Board) and the management structure of the Geberit Group are organised by function (Overall Management, Sales Europe, Sales International, Marketing & Brands, Operations, Product Management & Innovation, Finance). The financial management of the Group by the Board of Directors and the Group Executive Board is based on net sales by markets and product areas and on the consolidated income statements, balance sheets and statements of cashflows.
Segment reporting is therefore prepared according to IFRS 8.31 et seq. (one single reportable segment), and the valuation is made according to the same principles as the consolidated financial statements. The basis for revenue recognition is the same for all markets and product areas. The geographical allocation of net sales is based on the domicile of the customers.
The information is as follows:
| 2019 | 2018 | |
| MCHF | MCHF | |
| Net sales by product areas | ||
| Installation and Flushing Systems | 1,144.6 | 1,132.5 |
| Piping Systems | 949.1 | 928.3 |
| Bathroom Systems | 989.2 | 1,019.7 |
| Total net sales | 3,082.9 | 3,080.5 |
| 2019 | 2018 | |
| MCHF | MCHF | |
| Net sales by markets | ||
| Germany | 928.3 | 934.1 |
| Nordic Countries | 303.2 | 311.6 |
| Switzerland | 293.8 | 282.7 |
| Eastern Europe | 304.9 | 307.2 |
| Benelux | 261.2 | 252.4 |
| Italy | 210.9 | 216.2 |
| France | 179.6 | 187.1 |
| Austria | 172.8 | 170.6 |
| United Kingdom/Ireland | 114.2 | 111.6 |
| Iberian Peninsula | 24.7 | 24.5 |
| Other markets | 289.3 | 282.5 |
| Total net sales | 3,082.9 | 3,080.5 |
| 2019 | 2018 | |
| MCHF | MCHF | |
| Share of net sales by customers | ||
| Customers with more than 10% of net sales: customer A | 486.7 | 482.1 |
| Total > 10% | 486.7 | 482.1 |
| Remaining customers with less than 10% of net sales | 2,596.2 | 2,598.4 |
| Total net sales | 3,082.9 | 3,080.5 |
| 2019 1 | 2018 | |
| MCHF | MCHF | |
| Property, plant and equipment by markets | ||
| Germany | 336.4 | 310.1 |
| Nordic Countries | 44.5 | 40.3 |
| Switzerland | 183.7 | 161.6 |
| Eastern Europe | 147.8 | 135.6 |
| Benelux | 14.5 | 6.4 |
| Italy | 62.4 | 58.1 |
| France | 15.5 | 11.2 |
| Austria | 42.4 | 38.9 |
| United Kingdom/Ireland | 7.9 | 2.3 |
| Iberian Peninsula | 13.0 | 13.1 |
| Other markets | 51.9 | 51.3 |
| Total property, plant and equipment | 920.0 | 828.9 |
| 1 2019 includes the Group’s own as well as leased property, plant and equipment | ||
