Note 2 - Segment reporting

Reporting by operating segment 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 expense	—	—	—	—	—	—	– 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 by operating segment 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 expense	—	—	—	—	—	—	– 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	679,867	40,308	34,609	22,919	4,669	– 209,602	572,770
Undistributed assets	—	—	—	—	—	—	—
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		2,420	8,377	4,276	419	– 244	36,503
Amortization, intangible assets		159	173	—	—	4,000	13,729

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

Reporting by operating segment 2009*
	Group
	Sweden	Denmark	Finland	Norway	Estonia	Elimination	Total
Income
External net sales	687,616	46,601	138,225	39,206	5,188	—	916,836
Internal net sales	75,965	—	—	—	—	– 75,965	—
Total	763,581	46,601	138,225	39,206	5,188	– 75,965	916,836

Operating profit/loss	– 73,598	– 24,373	– 28,236	– 20,794	– 1,041	—	– 148,042
Undistributed interest income	—	—	—	—	—	—	90
Undistributed interest expense	—	—	—	—	—	—	– 3,633
Profit after financial items	—	—	—	—	—	—	– 151,585

Other information
Inventories	172,548	9,353	31,172	6,212	1,571	—	220,856
Other assets	586,518	19,097	46,740	18,623	3,257	– 106,469	567,766
Undistributed assets	—	—	—	—	—	—	—
Total assets	759,066	28,450	77,912	24,835	4,828	– 106,469	788,622

Liabilities	339,926	20,915	94,926	23,946	8,114	– 91,284	396,543
Undistributed liabilities	—	—	—	—	—	—	—
Total liabilities	339,926	20,915	94,926	23,946	8,114	– 91,284	396,543

Investments	9,850	200	504	870	—	—	11,424
Depreciation, tangible assets	21,094	1,582	5,674	2,986	353	5,426	37,115
Amortization, intangible assets	34,420	11,182	115	—	—	4,000	49,717


Net sales per geographic market for the Parent Company
				2007/08	2008/09	2009*
Sweden				1,244,501	1,048,913	690,204
Finland				163,026	93,025	48,060
Denmark				38,013	28,859	16,627
Norway				28,848	21,263	13,848
Poland				3,902	4,303	30
Total				1,478,290	1,196,363	768,769


Net sales	Group			Parent Company
	2007/08	2008/09	2009*	2007/08	2008/09	2009*
Sales to franchise stores	104,998	97,102	41,544	104,998	97,102	41,544
Sales to subsidiary stores	—	—	—	229,887	139,791	75,965
Sales to consumers in own stores	1,503,331	1,293,495	875,292	1,143,405	959,470	651,260
Total	1,608,329	1,390,597	916,836	1,478,290	1,196,363	768,769

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.

* Pertains to the abbreviated fiscal year May 1–December 31, 2009.