Primary Copper segment Recycling/Precious Metals segment Copper Products segment Other Total Reconciliation/consolidation Group total
in € thousand 2010/11 operating operating2009/10 2010/11 operating operating2009/10 2010/11 operating operating2009/10 2010/11 operating operating2009/10 2010/11 operating operating2009/10 2010/11 ifrs 2009/10IFRS 2010/11 ifrs 2009/10IFRS Revenues Total revenues 6,662,561 5,385,223 4,547,987 3,399,638 9,656,769 7,419,286 31,493 15,883 Inter-segment revenues 5,899,589 4,915,627 1,593,134 1,410,307 59,332 22,424 10,947 6,303
Revenues with third parties 762,972 469,596 2,954,853 1,989,331 9,597,437 7,396,862 20,546 9,580 13,335,808 9,865,369 0 0 13,335,808 9,865,369
EBITDA 255,096 147,395 122,883 73,367 88,639 75,674 (26,912) (3,261) 439,706 293,175 139,513 288,370 579,219 581,545
Depreciation and amortisation (70,863) (73,330) (14,831) (14,102) (27,109) (18,299) (219) (728) (113,022) (106,459) (10,674) 0 (123,696) (106,459)
EBIT 184,233 74,065 108,052 59,265 61,530 57,375 (27,131) (3,989) 326,684 186,716 128,839 288,370 455,523 475,086
Result from investments 0 0 700 490 6 4 0 0 706 494 0 0 706 494
Interest income 33,168 25,631 1,479 1,360 21,829 18,002 285 11 56,761 45,004 (42,223) (34,688) 14,538 10,316
Interest expense (47,910) (34,280) (10,088) (11,706) (33,672) (27,437) (581) (79) (92,251) (73,502) 42,223 34,688 (50,028) (38,814)
Earnings before taxes 169,491 65,416 100,143 49,409 49,693 47,944 (27,427) (4,057) 291,900 158,712 128,839 288,370 420,739 447,082
Income taxes (98,321) (121,335) (98,321) (121,335)
COnsOlIdaTEd nET InCOmE 322,418 325,747
Return on capital employed (ROCE)
in % 22.0 9.8 75.9 25.4 8.3 9.5 21.8 25.5
Capital expenditure on intangible assets and property, plant and
equipment 47,525 71,336 55,166 47,390 12,950 20,415 0 12,000 115,641 151,141 (769) 0 114,872 151,141
Average number of employees 2,186 2,143 1,079 999 1,744 1,612 0 0 5,009 4,754 0 0 5,009 4,754
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 Execu- tive 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 adminis- trative 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. Internal control is carried out on the basis of the operating result. The operating result of the respective Business Unit follows after adjusting the results in accordance with IFRS by
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Valuation results from the application of the average costmethod in accordance with IAS 2
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Copper price-related valuation effects on inventories»
Effects from purchase price allocations, primarily on fixedFinancial RepoRtConsolidated finanCial statements
The presentation of the segment reporting corresponds with the internal reporting.
As part of the definition of the operating result as an internal control parameter in fiscal year 2010/11, the prior-year figures for the Primary Copper and Copper Products segments were adjusted to ensure the comparability of the fiscal years. Because of the adjustment, earnings before taxes for 2009/10 changed to € 65,416 thousand in the Primary Copper segment and to € 47,944 thousand in the Copper Products segment.
The reconciliation to the average cost method used in the consolidated financial statements is shown in the recon- ciliation/consolidation column. A total of € – 42 thousand (€ – 82 thousand in the prior year) is allocated to consoli- dation in earnings before taxes, while € 128,881 thousand (€ 288,452 thousand in the prior year) is allocated to recon- ciliation to the average cost method.
Segment reporting
Primary Copper segment Recycling/Precious Metals segment Copper Products segment Other Total Reconciliation/consolidation Group total
in € thousand 2010/11 operating operating2009/10 2010/11 operating operating2009/10 2010/11 operating operating2009/10 2010/11 operating operating2009/10 2010/11 operating operating2009/10 2010/11 ifrs 2009/10IFRS 2010/11 ifrs 2009/10IFRS Revenues Total revenues 6,662,561 5,385,223 4,547,987 3,399,638 9,656,769 7,419,286 31,493 15,883 Inter-segment revenues 5,899,589 4,915,627 1,593,134 1,410,307 59,332 22,424 10,947 6,303
Revenues with third parties 762,972 469,596 2,954,853 1,989,331 9,597,437 7,396,862 20,546 9,580 13,335,808 9,865,369 0 0 13,335,808 9,865,369
EBITDA 255,096 147,395 122,883 73,367 88,639 75,674 (26,912) (3,261) 439,706 293,175 139,513 288,370 579,219 581,545
Depreciation and amortisation (70,863) (73,330) (14,831) (14,102) (27,109) (18,299) (219) (728) (113,022) (106,459) (10,674) 0 (123,696) (106,459)
EBIT 184,233 74,065 108,052 59,265 61,530 57,375 (27,131) (3,989) 326,684 186,716 128,839 288,370 455,523 475,086
Result from investments 0 0 700 490 6 4 0 0 706 494 0 0 706 494
Interest income 33,168 25,631 1,479 1,360 21,829 18,002 285 11 56,761 45,004 (42,223) (34,688) 14,538 10,316
Interest expense (47,910) (34,280) (10,088) (11,706) (33,672) (27,437) (581) (79) (92,251) (73,502) 42,223 34,688 (50,028) (38,814)
Earnings before taxes 169,491 65,416 100,143 49,409 49,693 47,944 (27,427) (4,057) 291,900 158,712 128,839 288,370 420,739 447,082
Income taxes (98,321) (121,335) (98,321) (121,335)
COnsOlIdaTEd nET InCOmE 322,418 325,747
Return on capital employed (ROCE)
in % 22.0 9.8 75.9 25.4 8.3 9.5 21.8 25.5
Capital expenditure on intangible assets and property, plant and
equipment 47,525 71,336 55,166 47,390 12,950 20,415 0 12,000 115,641 151,141 (769) 0 114,872 151,141
Financial RepoRtConsolidated finanCial statements
The Group generates most of its revenues with business asso- ciates 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
in € thousand 2010/2011 2009/2010
Germany 4,650,988 3,580,008
Other European Union states 6,076,638 4,881,657
Rest of Europe 502,764 455,814
Asia 880,284 327,352
America 857,606 405,238
Other 367,528 215,300
GROup TOTal 13,335,808 9,865,369
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 2010/2011 2009/2010 2010/2011 2009/2010 Germany 95,083 126,400 566,114 537,175 Bulgaria 10,204 10,043 306,121 330,831 Belgium 6,388 10,454 88,659 95,026 Rest of Europe 2,880 4,244 108,032 36,307 North America 317 0 27,030 0 GROup TOTal 114,872 151,141 1,095,956 999,339
The locations in the rest of Europe are mainly places of business within the European Union.
Financial RepoRtConsolidated finanCial statements
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 con- taining precious metals are utilised as the raw materials for the production 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 trad- ing. The copper cathodes produced in the Primary Copper and Recycling/Precious Metals segments mainly serve as the starting products for these products. Most of the products from the copper processing segment are sold to customers in Europe.
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 with the consolidated revenues of the Group. The prices and conditions for products and services ex- changed 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) repre- sents earnings before taxes, adjusted for the net interest allocated to the segment and the income from investments. Based on this, operating EBITDA (earnings before interest, taxes, depreciation and amortisation) is operating EBIT plus the depreciation and amortisation on the intangible assets and the property, plant and equipment of the segment. Impairment losses of altogether € 10,930 thousand ( reversals of impairment losses of € 515 thousand in the prior year) were recognised on assets, comprising € 488 thousand (€ 431 thousand in the prior year) relating to the Primary Copper segment, € 29 thousand (€ 774 thousand in the prior year) relating to the Recycling/Precious Metals segment and € 10,413 (reversals of impairment losses of € 1,720 thousand in the prior year) relating to the Copper Products segment. The impairment losses in the Primary Copper segment of € 488 thousand and the impairment losses in the Recycling/ Precious Metals segment of € 29 thousand related as in the
Financial RepoRtConsolidated finanCial statements
prior year exclusively to impairment losses on fixed assets. In the Copper Products segment, impairment losses of € 6,561 thousand were recognised on fixed assets (€ 174 thousand in the prior year) and impairment losses of € 3,852 thousand were recognised on current assets (reversals of impairment losses of € 1,894 thousand in the prior year).
The average number of employees for each segment includes the employees of all companies that were fully or proportio- nately consolidated in the accompanying financial statements. Employees of the proportionately consolidated companies have been included proportionately in accordance with the Group’s holding. Employees who became part of the Group in the course of the fiscal year are included in accordance with the duration of their employment in the Group. Personnel expenses were reported accordingly.