IOOF  | Annual Report 2012 Platform  management  and  administration Financial advice and  distribution Investment  management Trustee services Corporate and other Total 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 External management and service fee revenue 315,159  343,961  67, 85 0 58,399  122,148  129,789  19,118 18,910  - - 524,275  551,059  External other fee revenue 8,374  8,909  7,192 2 ,115 3,762  2,581  2,175  1,873  - 20  21,503  15,498  Inter-segment revenue  (i) - - 68,427  68,502  - - - - - - 68,427  68,502  Service fees and other direct costs (84,669) (97, 516) (121,257) (125,08 4) (47, 3 87 ) (53,216) 148  - 171  219  (252,994) (275,597) Amortisation of deferred acquisition costs (3, 812) (4,500) (2,756) (2,966) - - - - - - (6,568) ( 7, 4 6 6) Inter-segment  expenses  (i) (67, 627 ) (68,047) 48  - (665) (296) (183) (159) - - (68,427) (68,502) Gross Margin 167, 42 5 182,807  19,504  966  7 7, 85 8 78,858  21,258  20,624  171  239  286,216  283,494  Other external  revenue 120  - 57,967  61,964  2,233  1,721  5  323  281  837  60,606  64,845  Finance income 5  - 1,768  1,619  1,137  1,359  - - 15,470  8,269  18,380  11, 247 Inter-segment revenue  (i) - - 271  504  - - - - 53  - 324  504  Share of net profits of associates (8) 3  563  146  7, 626 9,052  - - - - 8,181  9,201  Operating expenditure (78,769) (75,270) (61,632) (50,062) (36,038) (33,486) (14,257) (14,126) (35, 812) (31,822) (226,508) (204,766) Share-based  payments expense (710) (626) (727) (760) (818) (698) (102) (95) (656) (1,053) (3,013) (3,232) Finance costs - - (47) (18) (534) - - - (2,005) (743) (2,586) (761) Inter-segment  expenses  (i) (90) - - - (53) - - - (181) (504) (324) (504) Impairment - - (172) - ( 7, 82 3) - - - (1,179) - (9,174) - Depreciation and amortisation (13,026) (12,778) (8,527) (5,410) (2,737) (2,688) (195) (116) (253) (721) (24,738) (21,713) Reportable segment profit before income tax 74,947  94,136  8,968  8,949  40,851  54,118  6,709  6,610  (24,111) (25,498) 107, 36 4  138,315  (i) Segment revenues, expenses and results include transfers between segments. Such transfers are priced on a commercial basis and are eliminated on consolidation. The Group predominantly operates in one geographical segment being Australia. Geographical segments page 83