Note 2 - Segment reporting

Reporting per geographic market 2006/2007
		Group
		Sweden	Denmark	Finland	Norway	Elimination	Total
Income
External net sales		1,163,073	84,378	197,660	25,384	—	1,470,495
Internal net sales		179,857	—	—	—	– 179,857	—
Total		1,342,930	84,378	197,660	25,384	– 179,857	1,470,495

Operating profit/loss		198,372	5,643	20,896	– 3,459	—	221,452
Undistributed interest income		—	—	—	—	—	1,650
Undistributed interest expenses		—	—	—	—	—	– 1,994
Profit after financial items		—	—	—	—	—	221,108

Other information
Inventories		204,916	14,161	45,682	6,873	– 7,177	264,455
Other assets		410,748	33,846	31,255	22,027	22,162	520,038
Undistributed assets		—	—	—	—	—	12,858
Total assets		615,664	48,007	76,937	28,900	14,985	797,351

Liabilities		256,386	35,191	70,610	26,462	– 82,553	306,096
Undistributed liabilities		—	—	—	—	—	—
Total liabilities		256,386	35,191	70,610	26,462	– 82,553	306,096

Investments		66,903	3,804	10,889	8,902	—	90,498
Depreciation/amortization, tangible assets		10,820	1,444	4,655	1,047	2,850	20,816
Depreciation/amortization, intangible assets		5,471	185	156	—	– 251	5,561


Reporting per geographic market 2007/2008
		Group
	Sweden	Denmark	Finland	Norway	Estonia	Elimination	Total
Income
External net sales	1,245,409	76,313	227,318	56,295	2,994	—	1,608,329
Internal net sales	229,887	—	—	—	—	– 229,887	—
Total	1,475 296	76,313	227,318	56,295	2,994	– 229,887	1,608,329

Operating profit/loss	135,332	3,764	3,785	– 996	– 749	—	141,136
Undistributed interest income	—	—	—	—	—	—	677
Undistributed interest expenses	—	—	—	—	—	—	– 9,074
Profit after financial items	—	—	—	—	—	—	132,739

Other information
Inventories	253,571	14,396	70,702	11,128	1,253	– 13,114	337,936
Other assets	622,579	31,913	34,259	17,966	1,682	– 175,703	532,696
Undistributed assets	—	—	—	—	—	—	14,304
Total assets	876,150	46,309	104,961	29,094	2,935	– 188,817	884,936

Liabilities	361,074	37,518	102,302	27,405	4,169	– 119,988	412,480
Undistributed liabilities	—	—	—	—	—	—	—
Total liabilities	361,074	37,518	102,302	27,405	4,169	– 119,988	412,480

Investments	48,145	2,447	9,283	9,210	901	—	69,986
Depreciation, tangible assets		1,751	6,296	2,866	121	3,402	31,183
Amortization, intangible assets		194	159	—	—	182	8,397


Reporting per geographic market 2008/2009
	Group
	Sweden	Denmark	Finland	Norway	Estonia	Elimination	Total
Income
External net sales	1,048,685	69,269	210,589	54,167	7,887	—	1,390,597
Internal net sales	139,791	—	—	—	—	– 139,791	—
Total	1,188,476	69,269	210,589	54,167	7,887	– 139,791	1,390,597

Operating profit/loss	22,631	– 7,735	– 21,952	– 24,872	– 597	—	– 32,525
Undistributed interest income	—	—	—	—	—	—	281
Undistributed interest expenses	—	—	—	—	—	—	– 12,899
Profit after financial items	—	—	—	—	—	—	– 45,143

Other information
Inventories	227,633	15,460	56,428	10,495	2,275	—	312,291
Other assets	644,235	33,255	34,609	20,307	4,669	– 181,535	555,540
Undistributed assets	35,632	7,053	—	2,612	—	– 28,067	17,230
Total assets	907,500	55,768	91,037	33,414	6,944	– 209,602	885,061

Liabilities	462,073	43,248	101,403	45,241	9,163	– 128,982	532,146
Undistributed liabilities	—	—	—	—	—	—	—
Total liabilities	462,073	43,248	101,403	45,241	9,163	– 128,982	532,146

Investments	40,636	2,340	6,118	4,731	1,675	—	55,500
Depreciation, tangible assets	21,255	2,420	8,377	4,276	419	– 244	36,503
Amortization, intangible assets	9,397	159	173	—	—	4,000	13,729

Operating profit/loss for the segments includes retail stores’ income for each market and the Swedish wholesale operations income from sales to each market.

The internal price between the various markets of the Group is based on the "arms-length" principle, meaning between parties that are independent of each other, well informed and have an interest in the implementation of transactions. This is regulated through pricefixing and internal charges.

Net sales per geographic market for the Parent Company
				2006/07	2007/08	2008/09
Sweden				1,163,073	1,244,501	1,048,913
Finland				125,903	163,026	93,025
Denmark				38,046	38,013	28,859
Norway				15 908	28,848	21,263
Poland				—	3,902	4,303
Total				1,342,930	1,478,290	1,196,363


Net sales	Group			Parent Company
	2006/07	2007/08	2008/09	2006/07	2007/08	2008/09
Sales to franchise stores	182,785	104,998	97,102	182,784	104,998	97,102
Sales to subsidiary stores	—	—	—	179,857	229,887	139,791
Sales to consumers in own stores	1,287,710	1,503,331	1,293,495	980,289	1,143,405	959,470
Total	1,470,495	1,608,329	1,390,597	1,342,930	1,478,290	1,196,363

In addition to sales of goods in terms of Hemtex’s own product line, sales to franchise stores also include invoicing of goods from contract suppliers without markups and re-invoicing of the stores’ inventories and computer equipment.