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Segment information and revenue from contracts with customers
12 Months Ended
Dec. 31, 2021
Segment information and revenue from contracts with customers  
Segment Information

7 Segment information and revenue from contracts with customers

7.1 Segment information

For management purposes, the Group is organized into business units based on its products and services. In line with the management approach, the operating segments were identified on the basis of the Group’s internal reporting and how the chief operating decision maker (“CODM”) assesses the performance of the business. On this basis, the Group has the following three operating segments, which also represent the Group’s reportable segments:

●Pharmaceutical segment: This segment provides a variety of solutions to our pharmaceutical partners, including target discovery, early patient recruitment and identification, epidemiological insights, biomarker discovery and patient monitoring, in order to accelerate their development of treatments for rare diseases; and
●Diagnostics segment: This segment provides genetic sequencing and diagnostics services to our clients, who are typically physicians, laboratories or hospitals, either directly or through distributors; and
●COVID-19 segment: This segment provides COVID-19 testing services to our clients. Our original COVID-19 test is a molecular diagnostic test performed for the in vitro qualitative detection of RNA from the SAR-CoV-2 in oropharyngeal samples from presymptomatic probands according to the recommended testing by public health authority guidelines. In addition, we also offer COVID-19 antigen testing.

The management board is the Chief Operating Decision Maker and monitors the operating results of the segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on segment results and is measured with reference to the Adjusted EBITDA. Adjusted EBITDA is a financial measure which is not prescribed by IFRS, which the Group defines as income/loss before finance costs (net), taxes, and depreciation and amortization (including impairments), adjusted to exclude corporate expenses as well as share-based payment expenses.

Corporate expenses, interest and similar income and expenses, as well as share-based payment expenses are not allocated to individual segments as the underlying instruments are managed on a group basis. Assets and liabilities are managed on a Group basis and are not allocated to the different segments for internal reporting purposes. Therefore, our CODM does not regularly review this information by segment and accordingly we do not report this information by segment.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2021

in EUR k

    

Pharmaceutical

    

Diagnostics

    

COVID-19

    

Corporate

    

Total

Total Revenues from contracts with external customers

 

15,641

​

27,900

​

146,382

​

—

​

189,923

​

​

​

​

​

​

​

​

​

​

​

Adjusted EBITDA

 

4,843

​

4,024

​

20,678

​

(46,247)

​

(16,702)

​

​

​

​

​

​

​

​

​

​

​

Capital Expenditures

 

​

​

​

​

​

​

​

​

​

Additions to property, plant and equipment and right-of-use assets

 

690

​

261

​

2,480

​

936

​

4,367

Additions to intangible assets

 

2,401

​

—

​

386

​

—

​

2,787

​

​

​

​

​

​

​

​

​

​

​

Other segment information

 

​

​

​

​

​

​

​

​

​

Depreciation and amortization (including impairments)

 

2,076

​

2,539

​

10,828

​

5,849

​

21,291

Research and development expenses

 

—

​

—

​

—

​

19,297

​

19,297

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

in EUR k

    

Pharmaceutical

    

Diagnostics

    

COVID-19 (1)

    

Corporate

    

Total

Total Revenues from contracts with external customers

​

16,951

​

22,108

​

89,322

​

—

​

128,381

​

​

​

​

​

​

​

​

​

​

​

Adjusted EBITDA

 

6,194

​

(2,408)

​

37,215

​

(39,918)

​

1,083

​

​

​

​

​

​

​

​

​

​

​

Capital Expenditures

 

​

​

​

​

​

​

​

​

​

Additions to property, plant and equipment and right-of-use assets

 

333

​

602

​

9,113

​

2,682

​

12,730

Additions to intangible assets

 

3,183

​

—

​

1,672

​

1,802

​

6,657

​

​

​

​

​

​

​

​

​

​

​

Other segment information

 

​

​

​

​

​

​

​

​

​

Depreciation and amortization (including impairments)

 

6,769

​

2,289

​

1,400

​

4,670

​

15,128

Research and development expenses

 

—

​

—

​

—

​

14,935

​

14,935

​

​

​

​

​

​

​

​

​

​

​

​

2019

in EUR k

    

Pharmaceutical

    

Diagnostics

    

Corporate

    

Total

Total Revenues from contracts with external customers

​

21,522

​

27,258

​

—

​

48,780

​

​

​

​

​

​

​

​

​

Adjusted EBITDA

 

14,956

​

2,306

​

(22,949)

​

(5,687)

​

​

​

​

​

​

​

​

​

Capital Expenditures

 

​

​

​

​

​

​

​

Additions to property, plant and equipment and right-of-use assets

 

1,362

​

1,998

​

17,908

​

21,268

Additions to intangible assets

 

3,603

​

—

​

3,677

​

7,280

​

​

​

​

​

​

​

​

​

Other segment information

 

​

​

​

​

​

​

​

Depreciation and amortization

 

1,308

​

2,032

​

3,239

​

6,579

Research and development expenses

 

—

​

—

​

9,590

​

9,590

(1)As discussed in note 2, in March 2020 the Group commenced testing for COVID-19 in response to the COVID-19 pandemic and in the third quarter started managing and reporting the COVID-19 business as a separate segment. As such, the Group did not have any activities related to the COVID-19 business prior to 2020 and retrospective presentation in prior year segment reporting is not applicable.

​

Adjustments

Adjustments include non-cash charges in relation to depreciation, amortization (including impairments), and share-based payments as well as net financial costs, and income taxes. Certain costs, and related income, are not allocated to our reporting segment results and represent the residual operating activities of the Group reported as ‘Corporate’. These include corporate overheads, which are responsible for centralized functions such as communications, information technology, facilities, legal, finance and accounting, insurance (D&O), human resources, business development and strategic initiatives, certain professional and consulting services, procurement, research and development and other supporting activities.

Corporate expenses also includes expenses incurred in relation to capital raising activities. For the year ended December 31, 2021, no expenses were incurred (2020 July Offering: EUR 278k ; 2019 IPO: EUR 1,092k) (see note 8.2). The corporate expenses for the year ended December 31, 2019 also includes a real estate transfer tax of EUR 1,200k related to an intercompany sale of land and building (see note 13).

Reconciliation of segment Adjusted EBITDA to Group loss for the period

​

​

​

​

​

​

​

​

in EUR k

    

2021

    

2020

    

2019

Reportable segment Adjusted EBITDA

 

29,545

 

41,001

 

17,262

Corporate expenses

 

(46,247)

 

(39,918)

 

(22,949)

​

 

(16,702)

 

1,083

 

(5,687)

Share‑based payment expenses (Note 20)

 

(8,035)

 

(5,658)

 

(6,418)

Depreciation and amortization (including impairments)

 

(21,291)

 

(15,128)

 

(6,579)

Operating loss

 

(46,028)

 

(19,703)

 

(18,684)

Financial costs, net

 

(848)

 

(1,394)

 

(2,013)

Income taxes

 

24

 

(281)

 

(158)

Loss for the year

 

(46,852)

 

(21,378)

 

(20,855)

​

Non-current asset locations

Non-current assets of the Group consist of right-of-use assets (under IFRS 16), property, plant and equipment, as well as intangible assets. All of such assets are located in Germany, which is the country of the business address of the Centogene GmbH, except for property, plant and equipment of EUR 147k (2020: EUR 516k; 2019: EUR 286k) and right-of-use assets of EUR 137k (2020: EUR 709k; 2019: EUR 1,042k), which are located in the United States.

7.2 Revenue from contracts with customers

​

​

​

​

​

​

​

​

​

​

in EUR k

​

2021

​

    

Pharmaceutical

    

Diagnostics

​

COVID-19

    

Total

Rendering of services

 

14,879

​

27,900

​

146,380

​

189,159

Sales of goods

 

762

​

—

​

2

​

764

Total Revenues from contracts with external customers

 

15,641

​

27,900

​

146,382

​

189,923

​

​

​

​

​

​

​

​

​

Recognized over time

 

14,879

​

27,900

​

19,131

​

61,910

Recognized at a point in time

 

762

​

—

​

127,251

​

128,013

Total Revenues from contracts with external customers

 

15,641

​

27,900

​

146,382

​

189,923

​

​

​

​

​

​

​

​

​

Geographical information

​

​

​

​

​

​

​

​

Europe

 

490

​

5,425

​

144,669

​

150,584

—Germany*#

 

—

​

211

​

140,922

​

141,133

—Netherlands**

​

—

​

6

​

3,616

​

3,622

Middle East

 

117

​

16,315

​

—

​

16,432

North America

 

14,940

​

2,950

​

1,606

​

19,496

—United States#

 

14,940

​

2,763

​

1,606

​

19,309

Latin America

 

94

​

2,499

​

—

​

2,593

Asia Pacific

 

—

​

711

​

107

​

818

Total

 

15,641

​

27,900

​

146,382

​

189,923

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

    

Pharmaceutical

    

Diagnostics

​

COVID-19

    

Total

Rendering of services

 

15,947

​

22,108

​

88,587

​

126,642

Sales of goods

 

1,004

​

—

​

735

​

1,739

Total Revenues from contracts with external customers

 

16,951

​

22,108

​

89,322

​

128,381

​

​

​

​

​

​

​

​

​

Recognized over time

​

15,947

​

22,108

​

24,684

​

62,739

Recognized at a point in time

​

1,004

​

—

​

64,638

​

65,642

Total Revenues from contracts with external customers

​

16,951

​

22,108

​

89,322

​

128,381

​

 

​

​

​

​

​

​

​

Geographical information

​

​

​

​

​

​

​

​

Europe

 

149

​

5,605

​

88,314

​

94,068

—Germany*#

 

—

​

186

​

80,879

​

81,065

—Netherlands**

​

—

​

3

​

6,572

​

6,575

Middle East

 

56

​

12,568

​

—

​

12,624

North America

 

16,711

​

1,576

​

978

​

19,265

—United States#

 

16,711

​

1,370

​

978

​

19,059

Latin America

 

35

​

1,851

​

2

​

1,888

Asia Pacific

 

—

​

508

​

28

​

536

Total

 

16,951

​

22,108

​

89,322

​

128,381

​

​

​

​

​

​

​

​

in EUR k

​

2019

​

    

Pharmaceutical

    

Diagnostics

​

Total

Rendering of services

 

19,089

​

27,258

​

46,347

Sales of goods

 

2,433

​

—

​

2,433

Total Revenues from contracts with external customers

 

21,522

​

27,258

​

48,780

​

​

​

​

​

​

​

Recognized over time

​

17,159

​

27,258

​

44,417

Recognized at a point in time

​

4,363

​

—

​

4,363

Total Revenues from contracts with external customers

​

21,522

​

27,258

​

48,780

​

​

  

 

  

​

​

Geographical information

 

​

​

​

​

​

Europe

 

381

​

7,066

​

7,447

—Germany*

 

233

​

275

​

508

—Netherlands**

​

—

​

25

​

25

Middle East

 

122

​

13,977

​

14,099

—Saudi Arabia#

 

—

​

7,417

​

7,417

North America

 

20,896

​

2,380

​

23,276

—United States#

 

20,896

​

1,882

​

22,778

Latin America

 

123

​

2,864

​

2,987

Asia Pacific

 

—

​

971

​

971

Total

 

21,522

 

27,258

​

48,780

*  country of the incorporation of Centogene GmbH

** country of the incorporation of Centogene N.V.

#    countries contributing more than 10% of the Group's total consolidated revenues for the respective year ended December 31, 2021, 2020 or 2019

The Group collaborated with the majority of our pharmaceutical partners on a worldwide basis in 2021, 2020 and 2019. In addition, in cases where our pharmaceutical partners are developing a new rare disease treatment, it is generally anticipated that the final approved treatment will be made available globally. As a result, we allocate the revenues of our pharmaceutical segment by geographical region by reference to the location where each pharmaceutical partner mainly operates, which is based on the region from which most of their revenues are generated. The allocation of revenues in our diagnostics and COVID-19 segments are based on the location of each customer.

Pharmaceutical segment

During the year ended December 31, 2021, revenues from one pharmaceutical partner represented 5.1% of the Group’s total revenues (2020: 8.6%; 2019: 24.3%).

During the year ended December 31, 2021, we entered into collaboration agreements with certain pharmaceutical partners, of which upfront fees of EUR 455k were received in relation to setup fees which will be recognized as revenue over the period of the partnership collaboration. No such payments were received or revenues recognized for the year ended December 31, 2020. During the year ended December 31, 2019, Centogene entered into several collaborations with pharmaceutical partners, of which upfront fees totaling EUR 1,930k were received. Such upfront payments were recognized as revenues during the year as they represented the transaction price allocated to the one-off transfer of the Group’s intellectual property—provision of epidemiological insights of relevant rare diseases and relevant data.

COVID-19 segment

During the year ended December 31, 2021, revenues from two COVID-19 partners represented 6.4% and 9.4%, respectively, of the Group’s total revenues. (2020: 14.6% and 13.5%, respectively).

To support the expansion of test offerings, the Company acquired laboratory facilities and equipment, developed a Corona Test Portal and leased laboratory space at several locations in Germany. Additionally, COVID-19 testing capacity is provided through our custom-built CentoTruck, a mobile laboratory in a container designed to carry out COVID-19 analysis. Total capitalized investments in COVID-19 testing as of December 31, 2021 amounted to EUR 2.8 million (2020: EUR 10.8 million), of which EUR 2.4 million (2020: EUR 7.7 million) are included in property, plant and equipment and EUR 0.4 million (2020: EUR 1.7 million) is included in intangible assets and relates to the development of the Corona Test Portal.

Contract balances

​

​

​

​

​

​

in EUR k

    

Dec 31, 2021

    

Dec 31, 2020

Trade receivables (note 15)

 

21,065

 

25,656

Contract assets (note 15)

 

3,272

 

3,543

Contract liabilities (note 19.2)

 

4,842

 

4,479

​

The contract assets primarily relate to the Group’s rights to consideration for work completed but not billed at the reporting date on the tests for the diagnostics segment, with the satisfaction of the respective performance obligation measured by reference to stages in a standardized process. The contract assets also include work performed for pharmaceutical partners which are based on milestone fees. In 2021, EUR 483k (2020: EUR 356k) was recognised as provision for expected credit losses on contract assets (see note 21). The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer.

The contract liabilities include EUR 2,506k (2020: EUR 2,516k) which relate to the advance consideration, including various contracts with performance obligations, received from pharmaceutical partners for which revenue is recognized over time, and consideration from sales of CentoCards which have not yet been delivered. In addition, EUR 2,336k relates to COVID-19 performance obligations that have not been met as of December 31, 2021 (2020: EUR 1,963k).