Segment reporting

T 110
 
  Primary Copper segment Copper Products segment Other Total Reconciliation/consolidation Group total
                         
in T€ 2015/2016
operating
2014/2015
operating
2015/2016
operating
2014/2015
operating
2015/2016
operating
2014/2015
operating
2015/2016
operating
2014/2015
operating
2015/2016
IFRS
2014/2015
IFRS
2015/2016
IFRS
2014/2015
IFRS
                         
Revenues                        
Total revenues 5,325,180 5,914,239 7,531,198 8,585,989 11,670 12,492            
Inter-segment revenues 2,788,892 3,240,790 601,851 273,658 2,599 3,071            
Revenues with third parties 2,536,288 2,673,448 6,929,347 8,312,332 9,071 9,421 9,474,706 10,995,202 0 0 9,474,706 10,995,202
EBITDA 237,827 357,207 150,658 181,348 (30,672) (39,404) 357,813 499,152 (46,191) (163,465) 311,622 335,687
Depreciation and amortization (83,496) (85,849) (44,403) (43,575) (974) (656) (128,873) (130,079) (5,930) (6,327) (134,803) (136,406)
EBIT 154,331 271,359 106,254 137,774 (31,645) (40,059) 228,940 369,073 (52,121) (169,792) 176,819 199,281
Interest income 4,346 2,736 8,471 13,561 60 19 12,877 16,316 (10,009) (12,725) 2,868 3,591
Interest expense (15,925) (17,870) (21,416) (25,641) (41) (154) (37,382) (43,665) 10,009 12,725 (27,373) (30,940)
Result from investments measured using the equity method 0 0 7,536 4,416 0 0 7,536 4,416 (1,185) (3,013) 6,351 1,403
Other financial income 0 0 5 5 252 220 257 225 0 0 257 225
Other financial expense (100) 0 (7) 0 0 (4,116) (107) (4,116) 0 0 (107) (4,116)
Earnings before taxes 142,652 256,224 100,842 130,115 (31,373) (44,090) 212,121 342,249 (53,306) (172,805) 158,815 169,444
Income taxes                     (35,296) (35,876)
 
Consolidated net income                     123,519 133,568
 
Return on capital employed (ROCE) (in %) 16.4 33.2 9.7 12.4                
Capital expenditure on intangible assets and property, plant and equipment 103,524 70,203 40,375 41,455 0 0 143.899 111.657 0 0 143,899 111,657
Average number of employees 2,750 2,730 3,335 3,330 270 257 6.355 6.317 0 0 6,355 6,317
    
Certain prior-year figures have been adjusted.

We report on the operating segments in the same way as in the internal reporting to the chief operating decision makers. The chief operating decision makers are defined as the Executive Board of Aurubis AG.

The Aurubis Group is divided into two reportable segments, which differ as regards their production processes or their products and which are managed separately. The “other” column discloses central administrative income and costs that cannot be directly allocated to one of the reportable segments.

The internal reporting is generally based on the accounting policies in accordance with IFRS, which are applied in the consolidated financial statements. For internal management purposes, the IFRS-based results are reconciled to the operating result. The operating result of the Group and of the respective Business Unit is determined by adjusting the IFRS-based results for:

  • Measurement impacts deriving from the use of the average cost method in accordance with IAS 2,
  • Copper price-related measurement effects on inventories,
  • Effects deriving from purchase price allocations, primarily on fixed assets, commencing in fiscal year 2010/11.

The presentation of the segment reporting corresponds to the internal reporting.

The reconciliation to the IFRS-based consolidated financial statements is shown in the reconciliation/consolidation column. In this connection, a total of € 524 thousand (previous year: € 452 thousand) of earnings before taxes derived from consolidation impacts, while € –53,830 thousand (previous year. € –173,257 thousand) derives from reconciliation to the IFRS EBT.

The Group generates most of its revenues with business associates in countries within the European Union. The breakdown of revenues by regions is based on the location of the customers, and is as follows:

T 111
 
in € thousand 2015/16 2014/15
     
Germany 3,306,555 3,581,806
Other European Union countries 3,576,941 4,128,565
Rest of Europe 316,060 269,375
Asia 1,087,737 1,626,442
America 774,556 935,792
Other 412,857 453,222
 
Group total 9,474,706 10,995,202

The breakdown of capital expenditure and non-current assets by regions is based on the location of the respective assets:

T 112
         
  Capital expenditure Assets
         
in € thousand 2015/16 2014/15 2015/16 2014/15
         
Germany 59,052 59,947 812,079 819,417
Bulgaria 57,640 29,476 347,287 332,777
Belgium 12,175 9,878 168,754 174,331
Other European countries 8,456 4,729 77,329 68,029
North America 5,819 7,717 44,386 45,875
 
Group total 143,143 111,747 1,449,836 1,440,429

The locations in other European countries are mainly business sites within the European Union.

Primary Copper segment

Copper production ranges from the procurement of copper-bearing and precious metal-bearing raw materials to the production of marketable metals. In the Primary Copper segment, copper concentrates are mainly used as the raw material for copper production.

The products are copper cathodes that can be traded on the metal exchanges, as well as gold and silver products that originate from additionally processed precious metal-bearing raw materials. During the copper production process, a variety of products, derived from the natural by-elements in the raw materials, are produced and sold in this segment, such as sulfuric acid and iron silicate stone. Furthermore, the Primary Copper segment produces high-quality selenium products.

Revenues in the Primary Copper segment consist both of revenues generated within the Group (since all of the copper cathodes produced are sold to the Copper Products segment) and of sales of precious metals to external customers. In addition, sulfuric acid and iron silicate stone are sold to external customers.

Copper Products segment

The Copper Products segment includes copper production from copper-bearing recycling materials and all sectors involved in the production and marketing of wire rod, continuous cast shapes, strip and profiles as well as specialty products. The copper cathodes produced in this segment and the Primary Copper segment mainly serve as the starting products for these products. Products produced by this segment are sold to customers worldwide.

Segment data

The revenues of the individual segments consist of inter-segment revenues and of revenues with third parties outside the Group. The total third party revenues of the individual segments correspond to the consolidated revenues of the Group. The prices and conditions for products and services exchanged between Group companies and segments correspond to those with non-related parties.

A breakdown of the revenues by product groups is provided in the information on revenues (Note 1).

Operating EBIT (earnings before interest and taxes) represents operating earnings before taxes, adjusted for the financial result attributable to the segment. Based on this, operating EBITDA (earnings before interest, taxes, depreciation and amortization) is operating EBIT adjusted for depreciation and amortization on intangible assets and property, plant and equipment belonging to the segment.

In total, reversals of impairment losses amounting to € 15,773 thousand were made in respect of assets (previous year: impairment losses of € 14,612 thousand), comprising reversals of impairment losses of € 10,849 thousand relating to the Primary Copper segment (previous year: impairment losses of € 9,346 thousand) and reversals of impairment losses of € 4,924 thousand relating to the Copper Products segment (previous year: impairment losses of € 5,266 thousand). As was the case with the impairment losses in the previous year, the reversals of impairment losses in the Primary Copper segment related exclusively to reversals of impairment losses (previous year: impairment losses) on current assets. In the Copper Products segment, current assets accounted for all reversals of impairment losses; in contrast, in the previous year impairment losses of € 2,648 thousand had been recognized on fixed assets in accordance with IAS 36.

The average number of employees for each segment included all the employees of companies that were fully consolidated in the accompanying financial statements.