Primary Copper segment Recycling / Precious Metals segment Copper Products segment Other Total Reconciliation Group total
in € thousand 2009 / 10 2008 / 09 2009 / 10 2008 / 09 2009 / 10 2008 / 09 2009 / 10 2008 / 09 2009 / 10 2008 / 09 2009 / 10 2008 / 09 2009 / 10 2008 / 09
Revenues
Total revenues 5,801,034 4,247,767 3,399,638 1,957,096 6,195,293 3,643,924 15,883 1,558
Inter-segment revenues 4,100,077 2,340,718 1,410,307 800,702 29,792 22,047 6,303 0
Revenues with third parties 1,700,957 1,907,049 1,989,331 1,156,394 6,165,501 3,621,877 9,580 1,558 9,865,369 6,686,878 0 0 9,865,369 6,686,878
EBITDA 223,220 104,464 73,367 54,330 98,761 64,035 (3,261) (5,257) 392,087 217,572 189,458 (140,009) 581,545 77,563
Depreciation and amortisation (73,330) (72,164) (14,102) (12,760) (18,299) (20,102) (728) (558) (106,459) (105,584) 0 0 (106,459) (105,584)
EBIT 149,890 32,300 59,265 41,570 80,462 43,933 (3,989) (5,815) 285,628 111,988 189,458 (140,009) 475,086 (28,021)
Result from investments 0 0 490 561 4 5 0 0 494 566 0 0 494 566
Interest income 25,631 33,555 1,360 2,419 18,002 21,070 11 (23) 45,004 57,021 (34,688) (41,932) 10,316 15,089
Interest expense (34,280) (51,298) (11,706) (9,702) (27,437) (34,089) (79) 129 (73,502) (94,960) 34,688 41,932 (38,814) (53,028)
Earnings before taxes 141,241 14,557 49,409 34,848 71,031 30,919 (4,057) (5,709) 257,624 74,615 189,458 (140,009) 447,082 (65,394)
Income taxes (121,335) 19,288 (121,335) 19,288
Consolidated net income
(loss in the prior year) 325,747 (46,106)
Capital expenditure on intangible assets and property,
plant and equipment 71,336 48,277 47,390 42,242 20,415 20,965 12,000 0 151,141 111,484 0 0 151,141 111,484
Average number of employees 2,143 2,083 999 953 1,612 1,679 0 0 4,754 4,715 0 0 4,754 4,715
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.
Three reportable segments, which differ as regards production process or their products and are managed separately, have been identified. 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 applied for the consolidated financial statements, with the exception of the valuation of inventories. For internal con- trolling purposes, the inventory valuation is performed using the LIFO method since these figures are much less influenced
method affects the earnings for the year under review by € 189,540 thousand (€– 138,869 thousand in the prior year), the change in inventories by € 8,642 thousand (€– 48,407 thousand in the prior year) and cost of materials by € 180,898 thousand (€– 90,462 thousand in the prior year).
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:
Revenues by regions
Group total
Primary Copper segment Recycling / Precious Metals segment Copper Products segment Other Total Reconciliation Group total
in € thousand 2009 / 10 2008 / 09 2009 / 10 2008 / 09 2009 / 10 2008 / 09 2009 / 10 2008 / 09 2009 / 10 2008 / 09 2009 / 10 2008 / 09 2009 / 10 2008 / 09
Revenues
Total revenues 5,801,034 4,247,767 3,399,638 1,957,096 6,195,293 3,643,924 15,883 1,558
Inter-segment revenues 4,100,077 2,340,718 1,410,307 800,702 29,792 22,047 6,303 0
Revenues with third parties 1,700,957 1,907,049 1,989,331 1,156,394 6,165,501 3,621,877 9,580 1,558 9,865,369 6,686,878 0 0 9,865,369 6,686,878
EBITDA 223,220 104,464 73,367 54,330 98,761 64,035 (3,261) (5,257) 392,087 217,572 189,458 (140,009) 581,545 77,563
Depreciation and amortisation (73,330) (72,164) (14,102) (12,760) (18,299) (20,102) (728) (558) (106,459) (105,584) 0 0 (106,459) (105,584)
EBIT 149,890 32,300 59,265 41,570 80,462 43,933 (3,989) (5,815) 285,628 111,988 189,458 (140,009) 475,086 (28,021)
Result from investments 0 0 490 561 4 5 0 0 494 566 0 0 494 566
Interest income 25,631 33,555 1,360 2,419 18,002 21,070 11 (23) 45,004 57,021 (34,688) (41,932) 10,316 15,089
Interest expense (34,280) (51,298) (11,706) (9,702) (27,437) (34,089) (79) 129 (73,502) (94,960) 34,688 41,932 (38,814) (53,028)
Earnings before taxes 141,241 14,557 49,409 34,848 71,031 30,919 (4,057) (5,709) 257,624 74,615 189,458 (140,009) 447,082 (65,394)
Income taxes (121,335) 19,288 (121,335) 19,288
Consolidated net income
(loss in the prior year) 325,747 (46,106)
Capital expenditure on intangible assets and property,
plant and equipment 71,336 48,277 47,390 42,242 20,415 20,965 12,000 0 151,141 111,484 0 0 151,141 111,484
Average number of employees 2,143 2,083 999 953 1,612 1,679 0 0 4,754 4,715 0 0 4,754 4,715
The breakdown of capital expenditure and non-current assets by regions is based on the location of the respective assets: Information on regions
Capital expenditure Non-current assets
in € thousand 2009 / 10 2008 / 09 2009 / 10 2008 / 09 Germany 126,400 76,612 537,175 482,233 Belgium 10,454 10,454 95,026 97,272 Bulgaria 10,043 17,760 330,831 355,807 Rest of Europe 4,244 6,658 36,307 34,110 group total 151,141 111,484 999,339 969,422
The locations in the rest of Europe are mainly places of business within the European Union.
C ONSOLID A TED FINANCIAL ST A TEMENT S t Ion t Ion
Primary Copper segment
Copper production ranges from the procurement of copper- bearing and precious metal-bearing raw materials to the pro- duction of marketable metals. In the Primary Copper segment, copper concentrates are mainly used as the raw material for copper production. The product is copper cathodes that can be traded on the metal exchanges.
Recycling / Precious Metals segment
Copper-bearing recycling materials and input materials contain- ing precious metals are utilised as the raw materials for the pro- duction of copper in the Recycling / Precious Metals segment. In addition to copper cathodes that can be traded on the metal exchanges, gold, silver and platinum group metal products are produced in this segment.
During the copper production process, a variety of products is produced in these two segments from the natural by-elements in the raw materials, such as sulphuric acid and iron silicate stone. The majority of the copper cathodes produced in the Primary Copper and Recycling / Precious Metals segments are passed on to the Copper Products segment, where they are processed into copper products and marketed externally. This accounts for most of the revenues in the Copper Products segment. The Primary Copper segment therefore generates most of its revenues within the Group.
Precious metals, sulphuric acid and iron silicate stone are by contrast primarily sold to external customers.
The production of high-grade selenium products and the environmentally-friendly dismantling of cable and sale of the resultant granules are also performed in the Recycling / Precious Metals segment.
Copper Products segment
The Copper Products segment includes all sectors involved in the production and marketing of wire rod, continuous cast shapes, pre-rolled strip, strips and profiles and copper trading. The copper cathodes produced in the Primary Copper and Recycling / Precious Metals segments mainly serve as the start- ing products for these products. Most of the products from the
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 corre- spond with 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).
EBIT (earnings before interest and taxes) represents earnings before taxes, adjusted for the net interest allocated to the seg- ment and the income from investments. Based on this, EBITDA (earnings before interest, taxes, depreciation and amortisation) is EBIT plus the depreciation and amortisation on the intangible assets and the property, plant and equipment of the segment. Reversals of impairment losses of altogether € 103,732 thou- sand (impairment losses of € 35,759 thousand in the prior year) were recognised on assets, comprising reversals of impairment losses of € 71,335 thousand (impairment losses of € 26,099 thousand in the prior year) relating to the Primary Copper segment, impairment losses of € 773 thousand (reversals of impairment losses of € 1,323 thousand in the prior year) relating to the Recycling / Precious Metals segment and reversals of impairment losses of € 33,170 thousand (impairment losses of € 10,983 thousand in the prior year) relating to the Copper Products segment. The reversals of impairment losses in the Primary Copper segment of € 71,335 thousand comprised impairment losses on fixed assets of € 0 thousand (€ 3,052 thousand in the prior year) and reversals of impairment losses on current assets of € 71,335 thousand (impairment losses of € 23,047 thousand in the prior year). The impairment losses in the Recycling / Precious Metals segment of € 773 thousand (reversals of impairment losses of € 1,323 thousand in the prior year) related as in the prior year exclusively to the current assets. In the Copper Products segment, impairment losses of € 174 thousand were recognised on fixed assets (€ 2,794 thou- sand in the prior year) and reversals of impairment losses of € 33,344 thousand were recognised on current assets (impair- ment losses of € 8,189 thousand in the prior year).
The average number of employees for each segment includes the employees of all companies that were fully or proportion- ately consolidated in the accompanying financial statements. Employees of the proportionately consolidated companies have been included proportionately in accordance with the Group’s