5. Segments

The Management Board forms the Group’s chief operating decision-maker (‘CODM’). Management has determined the operating segments based on the information reviewed by the CODM for the purposes of allocating resources and assessing performance.

The Group’s business is organized and managed on a geographic basis and operates through three business segments: the G4, Other Europe and Americas & Asia. After the acquisition of For Eyes in United States, the segment Latin America & Asia was renamed to Americas & Asia. All geographic segments are involved in the optical retail industry, and there are no other significant product lines or sources of revenue for the Company.  

The most important measures assessed by the CODM and used to make decisions about resources to be allocated are total net revenue and adjusted EBITDA. Measures of assets and liabilities by segment are not reported to the CODM.

The accounting policies applied in the segment information are in line with those applied for GrandVision as described in the accounting policies.

The following table presents total net revenue and adjusted EBITDA for the operating segments for 2015 and 2014. The adjusted EBITDA is defined as EBTIDA excluding other reconciling items and exceptional non-recurring items. The non-recurring items in 2015 were mainly related to legal and regulatory provisions, costs related to the IPO in 2015, including its effect on the valuation of the long-term incentive plans, and some other items, partially offset by the benefit related to the changed pension arrangements in the Netherlands. The non-recurring items in 2014 pertain to expenses relating to the anticipated listing, additional expenses for the long-term incentive plan as a result of falling within the scope of IFRS 2, and other small items. A reconciliation from adjusted EBITDA to earnings before taxes is presented within each table below. Other reconciling items represent corporate costs that are not allocated to a specific segment.

in thousands of EUR

G4

Other Europe

Americas & Asia

Total

2015

Total net revenue

1,976,421

874,562

353,903

3,204,886

Adjusted EBITDA

400,989

134,655

8,186

543,830

Other reconciling items

- 32,219

Total adjusted EBITDA

511,611

Non-recurring items

- 5,468

Depreciation

- 107,158

Amortization and impairments

- 45,822

Operating income/loss

353,163

Non-operating items:

Net financial result

- 19,148

Earnings before tax

334,015

2014

Total net revenue

1,820,412

731,751

264,831

2,816,994

Adjusted EBITDA

364,235

114,046

5,155

483,436

Other reconciling items

- 33,938

Total adjusted EBITDA

449,498

Non-recurring items

- 23,911

Depreciation

- 96,805

Amortization and impairments

- 40,173

Operating income/loss

288,609

Non-operating items:

Net financial result

- 34,366

Earnings before tax

254,243

The breakdown of revenue from external customers by geographical area is shown as follows:

in thousands of EUR

2015

2014

France

586,753

565,008

Germany

451,227

402,645

United Kingdom

457,900

390,937

Other countries

1,709,006

1,458,404

3,204,886

2,816,994

Revenue in the Netherlands, the Group’s country of domicile, is €245,700 (2014: €237,830). There are no customers that comprise 10% or more of revenue in any year presented.

The breakdown of non-current assets by geographical area is shown as follows:

in thousands of EUR

31 December 2015

31 December 2014

The Netherlands

101,745

99,967

France

491,321

492,821

United Kingdom

246,293

236,636

Italy

198,340

206,475

Other countries

958,362

791,420

1,996,061

1,827,319

The non-current assets by geographical area are given based on the location of the assets. This disclosure is given for all non current assets except financial instruments and deferred tax assets.