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3. Financial information by segment

The activities of the Group are primarily organized and presented in four operating segments supported by a central corporate office. Management monitors and evaluates EBITDA of all segments separately for the purpose of making decisions about resources to be allocated and of assessing performance.

  • Sustainable Forest Management Brazil: Activities in the field of sustainable management of tropical forests and the processing of tropical timber in Brazil
  • Sustainable Forest Management Gabon: Activities in the field of sustainable management of tropical forests and the processing of tropical timber in Gabon
  • Trading: trading of timber from external sources in Switzerland
  • Carbon & Energy: Activities in the field of energy production from biomass and trading of certified emission reductions (CERs)

Precious Woods’ forests in Brazil and Gabon are managed in a sustainable manner, which means that not more timber is harvested than can simultaneously grow back, and that the value of the forest is preserved. An integral part of Precious Woods’ approach to sustainable forestry is the use of waste wood to produce electricity and the registration and sale of carbon emission reductions (CERs). In 2020, 38 484 tons of CO2 equivalents were verified; whilst in 2021 39 960 tons of CO2 equivalents were produced, but are not yet verified.

Operating segments – for the year ending on 31 December 2021
in thousand EUR   Sustainable
Forest
Management
Brazil
  Sustainable
Forest
Management
Gabon
  Trading
  Carbon
& Energy
2
  Other
1
  Total
Revenues
 Third parties   13 550   35 277   3 444   1 723     53 994
 Intersegment   1 368   178     27   –1 573  
 Associates and related parties   305           305
Total revenues   15 223   35 455   3 444   1 750   –1 573   54 299
 Gain from changes in fair value from  biological assets   4 074           4 074
 Profit/(loss) on sale of PP&E     15         15
 Share of profit/(loss) of associates   211   –934         –723
Earnings before interest, tax, depreciation and amortization (EBITDA)   11 041   5 736   317   375   –2 403   15 066
 Depreciation and amortization   –379   –3 810     –8   –120   –4 317
 Impairment charges/reversals   –12           –12
Profit/(loss) from operating activities (EBIT)   10 650   1 926   317   367   –2 523   10 737
 Financial income                       195
 Financial expenses                       –2 983
Earnings before tax (EBT)                       7 949
 Income taxes   –2 687   –446   –54   –69   –7   –3 263
                         
Segment assets   66 593   49 767   2 440   3 592   –5 083   117 438
 Investments in associates     1 426         1 426
 Capital expenditures   774   809     12   9   1 604
Segment liabilities   40 859   45 187   1 410   504   –14 960   73 000
1 The eliminations and adjustments consist of the intersegment eliminations and the results from Precious Woods Holding Ltd, the Luxembourg entities and Precious Woods Management Ltd, which are not allocated to a specific segment.
2 Since 1 June 2021, the segment Carbon & Energy also includes the subsidiary MIL Energia Renovável Ltda. (Note 32)
Operating segments – for the year ending on 31 December 2020
in thousand EUR   Sustainable
Forest
Management
Brazil
  Sustainable
Forest
Management
Gabon
  Trading
  Carbon
& Energy
  Other
1
  Total
Revenues
 Third parties   12 037   28 899   2 496   65   0   43 497
 Intersegment   787   29       –815  
 Associates and related parties   607   2 082         2 689
Total revenues   13 431   31 009   2 496   65   –815   46 186
 Initial recognition of fair value from  biological assets   927           927
 Profit/(loss) on sale of PP&E   17   –78         –61
 Share of profit/(loss) of associates   385   –739         –354
Earnings before interest, tax, depreciation and amortization (EBITDA)   4 231   4 220   –422   6   –2 266   5 769
 Depreciation and amortization   –774   –3 062       –86   –3 922
 Impairment charges   40           40
Profit/(loss) from operating activities (EBIT)   3 497   1 158   –422   6   –2 352   1 887
 Financial income                       191
 Financial expenses                       –3 148
Earnings before tax (EBT)                       –1 070
 Income taxes   –770   –357   –8     24   –1 111
                         
Segment assets   56 213   51 238   1 989   663   –659   109 443
 Investments in associates   980   2 360         3 340
 Capital expenditures   353   3 636       5   3 994
Segment liabilities   38 189   45 130   810   136   –14 130   70 134
1 The eliminations and adjustments consist of the intersegment eliminations and the results from Precious Woods Holding Ltd, the Luxembourg entities and Precious Woods Management Ltd, which are not allocated to a specific segment.
Geographic information
in thousand EUR       2021       2020
Revenues
Europe   32 727   60.3%   25 458   55.1%
Latin America   6 666   12.3%   3 596   7.8%
Africa   4 883   9.0%   6 770   14.7%
Asia   5 451   10.0%   6 214   13.5%
Australia     0.0%   197   0.4%
North America   4 572   8.4%   3 951   8.5%
Total revenues   54 299   100.0%   46 186   100.0%
 
Location of non-current assets
Europe   394   0.5%   489   0.6%
Latin America   56 188   66.2%   50 225   61.1%
Africa   28 272   33.3%   31 443   38.3%
Total non-current assets 1   84 854   100.0%   82 157   100.0%
1 The non-current assets are shown without deferred tax assets, financial investments and post-employment benefit assets.
Accounting policies

Operating segments are reported in the manner consistent with the internal reporting to the chief operating decision maker, which is the Group Management of Precious Woods. Group Management is responsible for allocating resources and assessing the performance of the operating segments.