Segment reporting

                        T 107
                         
  Primary Copper segment Copper Products segment Other Total Reconciliation/consolidation Group total
                         
in € thousand 2014/2015
operating
2013/2014
operating
2014/2015
operating
2013/2014
operating
2014/2015
operating
2013/2014
operating
2014/2015
operating
2013/2014
operating
2014/2015
IFRS
2013/2014
IFRS
2014/2015
IFRS
2013/2014
IFRS
                         
Revenues                        
Total revenues 5,914,239 6,109,208 8,585,989 9,130,114 12,492 15,327            
Inter-segment revenues 3,240,790 3,430,170 273,658 580,122 3,071 3,389            
Revenues with third parties 2,673,448 2,679,038 8,312,332 8,549,992 9,421 11,938 10,995,202 11,240,967 0 0 10,995,202 11,240,967
EBITDA 357,207 232,108 181,348 100,623 (39,404) (44,238) 499,152 288,492 (163,465) (72,684) 335,687 215,808
Depreciation and amortization (85,849) (81,802) (43,575) (39,228) (656) (635) (130,079) (121,665) (6,327) (6,374) (136,406) (128,039)
EBIT 271,359 150,306 137,774 61,395 (40,059) (44,873) 369,073 166,827 (169,792) (79,058) 199,281 87,769
Interest income 2,736 1,452 13,561 16,526 19 2,348 16,316 20,326 (12,725) (15,390) 3,591 4,936
Interest expense (17,870) (21,541) (25,641) (27,332) (154) (2,738) (43,665) (51,611) 12,725 15,390 (30,940) (36,221)
Result from investments measured using the equity method 0 0 4,416 4,597 0 0 4,416 4,597 (3,013) (523) 1,403 4,074
Other financial income 0 0 5 5 220 194 225 199 0 26 225 225
Other financial expense 0 0 0 (26) (4,116) (3,180) (4,116) (3,205) 0 (26) (4,116) (3,231)
Earnings before taxes 256,224 130,216 130,115 55,167 (44,090) (48,249) 342,249 137,133 (172,805) (79,581) 169,444 57,552
Income taxes                     (35,876) 13,452
                         
Consolidated net income                     133,568 44,100
                         
Return on capital employed (ROCE)
in %
31.1 16.9 12.9 6.0             9.2 4.1
Capital expenditure on intangible assets and property, plant and equipment 70,203 81,764 41,455 46,608     111,657 128,372 0 0 111,657 128,372
Average number of employees 2,730 2,737 3,330 3,356 257 244 6,317 6,337 0 0 6,317 6,337
                          
Certain prior-year figures have been adjusted (see Changes in accounting and measurement methods due to new standards and interpretations).

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.

Aurubis changed the segment reporting during fiscal year 2014/15. The former BU Recycling/Precious Metals was integrated into two other BUs, Primary Copper and Copper Products. The change corresponds to the shift from a technology-oriented structure to a ­market-oriented one and was carried out retroactively. The internal controlling and reporting structure was adjusted correspondingly. ­Prior-year figures have been adjusted accordingly.

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 includes 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 IFRS used in the consolidated financial statements is shown in the reconciliation/consolidation column. In this connection, a total of € 452 thousand (previous year: € 22 thousand) of earnings before taxes derives from consolidation impacts, while € – 173,257 thousand (previous year. € – 79,603 thousand) derives from reconciliation to the IFRS EBT.

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

    T 108
     
in € thousand 2014/15 2013/14
     
Germany 3,581,806 3,353,270
Other European Union ¬countries 4,128,565 4,573,002
Rest of Europe 269,375 385,530
Asia 1,626,442 1,691,113
America 935,792 820,221
Other 453,222 417,831
     
Group total 10,995,202 11,240,967
      
Certain prior-year figures have been adjusted (see Changes in accounting and measurement methods due to new standards and interpretations).

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

        T 109
         
  Capital expenditure Assets
         
in € thousand 2014/15 2013/14 2014/15 2013/14
         
Germany 59,947 78,483 819,417 824,646
Bulgaria 29,476 21,569 332,777 349,303
Belgium 9,878 12,035 174,331 175,145
Other European countries 4,729 7,862 68,029 78,647
North America 7,717 8,423 45,875 40,547
         
Group total 111,747 128,372 1,440,429 1,468,288
          
Certain prior-year figures have been adjusted (see Changes in accounting and measurement methods due to new standards and interpretations).

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, silver and platinum metal products that originate from additionally processed precious metal-bearing raw materials. During the copper production process, a variety of products are produced in this segment from the natural by-elements in the raw materials, 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 earnings before taxes, adjusted for the financial result allocated 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, impairment losses amounting to € 14,612 thousand were made in respect of assets (previous year: reversals of impairment losses of € 3,465 thousand), comprising impairment losses of € 9,346 thousand relating to the Primary Copper segment (previous year: reversals of impairment losses of € 3,243 thousand) and impairment losses of € 5,266 thousand relating to the Copper Products segment (previous year: reversals of impairment losses of € 223 thousand). As was the case with the reversals of impairment losses in the previous year, the impairment losses in the Primary Copper segment related exclusively to impairment losses (previous year: reversals of impairment losses) on current assets. In the Copper Products segment, there were impairment losses of € 2,618 thousand (previous year: reversals of impairment losses of € 223 thousand) relating to current assets; impairment losses of € 2,648 thousand were recognized on fixed assets in the current fiscal year in accordance with IAS 36 (previous year: € 0 thousand).

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