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24. Segmental reporting 

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Following the provisions of IFRS 8, reportable operating segments are identified based on the “management approach”. The management approach requires external segment reporting based on the Group’s internal organisational and management structure and on internal financial reporting to the chief operating decision maker, which considered the Group as being the Board of Management. 

The Group reports on three operating segments, which are independently managed by bodies responsible for the respective segments depending on the nature of products offered. The identification of Company components as operating segments is based in particular on the existence of business unit managers who report directly to the Board of Management of Dialog and who are responsible for the performance of the segment under their charge. Following the change in IFRS 8.23, the Group no longer reports assets and liabilities as only inventories are reported to the chief operating decision maker. Prior-year figures have been adjusted accordingly. 

a) Operating segments 

The Group’s operating segments are: 

## Mobile Systems 

This segment includes our power management and audio chips especially designed to meet the needs of the wireless systems markets and a range of advanced driver technologies for low power display applications – from PMOLEDs, to electronic paper and MEMS displays. This segment was newly created in Q1-2012 and includes our former Audio and Power Systems segment and our former Display Systems segment. For further information, see below. 

## Automotive and Industrial 

In the automotive and industrial market our products address the safety, management and control of electronic systems in cars and for industrial applications. 

## Connectivity 

The activities of this segment include short-range wireless, digital cordless and VoIP technology. The new Connectivity segment includes the operating segment of our acquired subsidiary SiTel Semiconductor B.V. SiTel which was acquired on 10 February 2011; therefore its results are consolidated from this date. 

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[1] All revenues are from sales to external customers 

[2] Certain overhead costs are predominantly allocated based on sales and headcount. The Operating loss of the Corporate Segment results from Holding related expenses, share option and business development costs 

[3] The revenue in the corporate column include mainly the BenQ settlement please refer to note 27 and sales discounts 

[4] Including 35,048 US$000 additions to PPE, 33,512 US$000 additions to intangible assets and -98 US$000 deposits 

[5] Including 20,902 US$000 additions to PPE, 11,099 US$000 additions to intangible assets and 157 US$000 deposits 

