Gschäftsbericht 2018

92 | Galenica financial statements 2018 Finance Notes to the consolidated financial statements of the Galenica Group 3. Operating segment information The management approach is used to determine the reportable operating segments. Accordingly, external segment report- ing is based on the internal organisational and management structures of Galenica and the internal financial reporting to the chief operating decision maker (CODM). The CODM of Galenica is the Board of Directors of Galenica Ltd. Galenica operates in Switzerland within the two operating segments Health & Beauty and Services. The operating result (EBIT) comprises all operating income generated and expenses incurred in the corresponding segments. Financial income and expenses as well as income taxes are reported at Group level only and not allocated to the segments. The assets and liabilities include all items of the statement of financial position that can be directly or reasonably allocated to a segment. Health & Beauty With the largest pharmacy network in Switzerland, Galenica offers unparalleled potential for selling strong brands – own brands as well as brands from business partners. The Health & Beauty operating segment comprises the two business sectors Retail and Products & Brands. Retail operates at 501 locations Galenica’s pharmacy network, the largest in Switzerland. With 345 pharmacies of its own and 156 partner pharmacies, Retail has attractive outlets throughout the country. Galenica’s own pharmacies comprise the Amavita brand with 163 branches and the Sun Store brand with 97 branches. Galenica also operates a chain of 78 pharmacies in partnership with Coop under the Coop Vitality brand. Galenica’s pharmacy network also covers the speciality pharmacy Mediservice, which is focused on medication for treatment of patients at home, 5 majority interests in pharmacies, 1 minority interests in a pharmacy and 149 Winconcept partner pharmacies and 7 Amavita partner pharmacies. Products & Brands launches and distributes a complete portfolio of consumer health products which is sold to Swiss pharma- cies and drugstores. The companies of the Products & Brands business sector launch and distribute pharmaceutical and parapharmaceutical products and offer marketing and sales services to all partners in the healthcare market. Services The companies of the Services business sector play an important role in the pharmaceutical supply chain. Services offers pharmaceutical and healthcare companies a broad range of specialised pre-wholesale services, from storage and distribution of products in Switzerland to debt collection. As a pharmaceutical wholesaler, Services ensures on-schedule delivery within short deadlines to pharmacies, physicians, drugstores, care homes and hospitals throughout Switzerland. The companies of the Services business sector offer solutions for the healthcare market. They operate comprehensive databases that provide additional knowledge for all service providers in the Swiss healthcare market and develop manage- ment solutions tailored specifically to the needs of the healthcare market. Services is the leading provider of master data systems for Switzerland’s entire healthcare market and publishes printed and electronic technical information on pharma- ceutical products as well as complete management solutions for pharmacies and physicians. Corporate The activities included within Corporate mainly comprise Galenica’s central operations, which include Group Management and Corporate functions such as Controlling, Accounting, Tax, Treasury, Insurance, Human Resources, Legal Services, General Secretariat, Communications and Investor Relations. Corporate charges management fees to the other business units and operating segments for the organisational and finan- cial management services that it provides. Eliminations Operating activities involve the sales of goods and services between the operating segments. Sales of goods and services between the operating segments and resulting unrealised gains are eliminated in the Eliminations column. In addition, Eliminations include adjustments recorded on Group level which mainly consist of expenses for share- based payment plans and costs for IAS 19 from defined benefit plans and long-service awards. Segment assets and liabilities include loans and current accounts held with respect to other segments. These positions are eliminated in the Eliminations column.