General notes / Accounting principles

A business segment is a group of assets and operations engaged in providing services that are subject to risks and returns that are different from those of other business segments.

A geographical segment is engaged in providing services within a particular economic environment which are subject to risks and returns that are different from those of segments operating in other economic environments. Vedior’s risks and returns at this moment are affected predominantly by differences in the service sectors (traditional versus professional/executive recruitment) and by differences in geographical locations. Corporate expenses are not allocated to the various geographies.

The segment reporting is based on geographical and business segments. An analysis by geography, which is Vedior’s primary format, and by business segment is the best reflection of Vedior’s management structure and reporting lines. The accounting policies of the operating segments are the same as those described in this chapter.

Vedior evaluates performance based on geographical and business segment contributions, which is defined as the amount of segment profit or loss before intercompany charges, finance costs and income tax expense. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly cash, interest-bearing loans and corporate expenses. Segment capital expenditure is the cost incurred by the segment during the period to acquire assets that are expected to be used for more than one year. All segments are continuing operations.

Vedior’s primary segmentation is determined by geography. The segments identified are France, United Kingdom, Netherlands, Belgium, Spain, Other Europe, USA, Australia & New Zealand, Canada and Latin America, Asia, Middle East and Africa. The Other Europe segment consists of the European countries not reported separately, including Italy, Portugal, Germany, Switzerland, Eastern Europe and Scandinavia. Segment assets are based on the geographical location of the assets.

Business segments

Vedior provides professional/executive as well as traditional recruitment services. Professional/executive recruitment services include the provision of personnel within the Information Technology, Engineering/Technical, Healthcare, Accounting/Finance, Education and Other sectors.