3. Notes on Segment Reporting

In accordance with IFRS 8, segment information is based on the internal management and reporting structure. In terms of BLG LOGISTICS, this entails that segments are reported by division in line with the Group structure, i.e., the CONTAINER Division is still recognized as a separate segment in Segment Reporting and is eliminated again in the reconciliation column. At the same time, earnings from companies accounted for using the equity method, which primarily include the earnings of the CONTAINER Division, are reported as part of EBIT in line with internal management. This also applies to the other companies accounted for using the equity method.

Entire companies are each assigned to the AUTOMOBILE, CONTRACT and CONTAINER Divisions. These companies each represent operating segments that are grouped together for the purposes of reporting by division, as they operate in a similar economic environment and are very similar in their services, processes and customer groups.

The AUTOMOBILE Division is divided into business areas and the CONTRACT Division into regions. Responsibility for operational management, including earnings responsibility, lies with the respective business area or regional managers of the AUTOMOBILE and CONTRACT Divisions, and with the Group management of the EUROGATE GmbH & Co. KGaA, KG subgroup for the CONTAINER Division.

The AUTOMOBILE Division comprises the companies BLGAutoTerminal Bremerhaven GmbH & Co. KG, BLG AutoTerminal Deutschland GmbH & Co. KG, BLG AutoTransport GmbH & Co. KG and BLG AutoRail GmbH.

The major companies of the CONTRACT Division are BLG Industrielogistik GmbH & Co. KG, BLG Handelslogistik GmbH & Co. KG, BLG Cargo Logistics GmbH and BLG Sports & Fashion Logistics GmbH.

The CONTAINER Division includes the 50 percent stake in the operational management company EUROGATE GmbH & Co. KGaA, KG of the EUROGATE Group.

The operations of the divisions are described in detail in note 2.

BLG AG and BLG KG, as the management and financial holding companies of the BLG Group, are not operating segments as defined under IFRS 8. These central departments, with their assets, liabilities and earnings, are included in the reconciliation column. With regard to disclosures concerning employees, the relevant disclosures can be found in the Combined group management report.

BLG LOGISTICS predominantly conducts its activities in Germany. EUR 1,111,420 thousand of combined Group revenue (previous year: EUR 1,170,503 thousand) was attributable to Germany and EUR 54,039 thousand (previous year: EUR 50,161 thousand) to other countries. This allocation was based on the location at which the Group renders its services. EUR 551,835 thousand of the Group’s non-current intangible assets and property, plant and equipment (previous year: EUR 513,154 thousand) was attributable to Germany and EUR 15,532 thousand (previous year: EUR 19,418 thousand) to other countries.

EUR 176,745 thousand (previous year: EUR 188,969 thousand) of total combined Group revenue was generated with the Group’s largest customer in the AUTOMOBILE and CONTRACT Divisions. This corresponds to around 15 percent (previous year: 15 percent) of total Group revenue. Revenue of EUR 167,740 thousand (previous year: EUR 145,882 thousand) was generated with the Group’s second-largest customer, entirely attributable to the AUTOMOBILE Division and corresponding to around 14 percent (previous year: 12 percent) of total Group revenue.

BLG LOGISTICS is managed on the basis of the financial data for the operating segments defined in accordance with IFRS; the accounting policies apply to the segments in the same way as to the entire Group. The key performance indicators for the segments are revenue, earnings before interest and taxes (EBIT), earnings before taxes (EBT) and the EBT margin.

Services are billed between segments in the same way as with third parties.

Depreciation and amortization relate to the segments’ property, plant and equipment, including right-of-use assets.

Segment assets do not include equity investments in companies accounted for using the equity method, or deferred and current taxes. No segment assets exist that are not required for operations. In line with internal control, intragroup subleases are recognized by the end user only.

Segment liabilities include lease liabilities, current liabilities necessary for financing, and provisions, excluding interest-bearing loans.

Capital expenditure relates to additions to property, plant and equipment, right-of-use assets and non-current intangible assets.

The reconciliation of the total of the reportable segments with the Group data was as follows for the main items of Segment Reporting: