Primary Copper segment Recycling / Precious Metals segment Copper Products segment
in € thousand 2008 / 09 2007 / 08 2008 / 09 2007 / 08 2008 / 09 2007 / 08
Revenues
Total revenues 4,247,767 4,038,450 1,957,096 2,709,639 3,643,924 6,273,112
Inter-segment revenues 2,340,718 3,219,687 800,702 1,364,169 22,047 56,512
Revenues with third parties 1,907,049 818,763 1,156,394 1,345,470 3,621,877 6,216,600
EBITDA 104,464 136,340 54,330 159,578 64,035 148,733
Depreciation and amortisation (72,164) (54,122) (12,760) (12,329) (20,102) (25,188)
EBIT 32,300 82,218 41,570 147,249 43,933 123,545
Result from investments 0 0 561 700 5 8
Interest income 33,555 13,776 2,419 2,700 21,070 6,406
Interest expense (51,298) (30,610) (9,702) (6,636) (34,089) (27,990)
Earnings before taxes 14,557 65,384 34,848 144,013 30,919 101,969
Income taxes
Consolidated net loss (income)
Capital expenditure on intangible assets and property,
plant and equipment 48,277 65,152 42,242 26,127 20,965 22,634
Average number of employees 2,083 1,843 953 959 1,679 1,304
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 defi ned as the Executive Board of Aurubis AG.
Three reportable segments, which diff er as regards production process or their products and are managed separately, have been identifi ed. The “other” column includes central adminis- trative 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 fi nancial statements, with the exception of the valuation of inventories. For internal controlling purposes, the inventory valuation is performed using the LIFO method since these fi gures are much less infl u- enced by metal price fl uctuations. The presentation of the segment reporting corresponds with the internal reporting.
The reconciliation to the average cost method used in the consolidated fi nancial statements is shown in the reconciliation / consolidation column. The application of the average cost method aff ects the earnings for the year under review by € 138,869 thousand (€ 97,630 thousand in the prior year), the change in inventories by € 48,407 thousand (€ 4,783 thousand in the prior year) and cost of materials by € 90,462 thousand (€ 92,847 thousand in the prior year).
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
Group total
in € thousand 2008 / 09 2007 / 08
Germany 2,518,777 4,104,464
Other Total Reconciliation Group total 2008 / 09 2007 / 08 2008 / 09 2007 / 08 2008 / 09 2007 / 08 2008 / 09 2007 / 08 1,558 3,728 0 0 1,558 3,728 6,686,878 8,384,561 0 0 6,686,878 8,384,561 (5,257) (4,179) 217,572 440,472 (140,009) (64,109) 77,563 376,363 (558) (403) (105,584) (92,042) 0 0 (105,584) (92,042) (5,815) (4,582) 111,988 348,430 (140,009) (64,109) (28,021) 284,321 0 0 566 708 0 0 566 708 (23) (217) 57,021 22,665 (41,932) (7,312) 15,089 15,353 129 540 (94,960) (64,696) 41,932 7,312 (53,028) (57,384) (5,709) (4,259) 74,615 307,107 (140,009) (64,109) (65,394) 242,998 19,288 (72,223) 19,288 (72,223) (46,106) 170,775 0 (5) 111,484 113,908 0 0 111,484 113,908 0 0 4,715 4,106 0 0 4,715 4,106
The breakdown of capital expenditure and non-current assets by regions was carried out in accordance with the respective location of the assets:
Information on regions
Capital expenditure Non-current assets
in % 2008 / 09 2007 / 08 2008 / 09 2007 / 08 Germany 76,612 78,321 482,233 441,978 Belgium 10,454 8,220 97,272 104,929 Bulgaria 17,760 24,785 355,807 374,750 Rest of Europe 6,658 2,582 34,110 31,390 Group total 111,484 113,908 969,422 953,047
The locations in the rest of Europe are mainly places of business within the European Union.
C ONSOLID A TED FINANCIAL ST A TEMENTS
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 Metal 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.
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 profi les 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
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 Metal segment.
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 segment. 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.
Impairment losses of altogether € 35,759 thousand (€ 93,161 thou- sand in the prior year) were recognised on assets, of which € 26,099 thousand (€ 60,185 thousand in the prior year) related to the Primary Copper segment, reversals of impairment losses of € 1,323 thousand (impairment losses of € 1,884 thousand in the prior year) to the Recycling / Precious Metal segment, impair- ment losses of € 10,983 thousand (€ 30,504 thousand in the prior year) to the Copper Products segment and € 0 (€ 588 thousand in the prior year) to “Other”. The impairment losses in the Primary Copper segment of € 26,099 thousand comprise impair- ment losses on property, plant and equipment of € 3,052 thou- sand (€ 6,239 thousand in the prior year) and impairment losses on current assets of € 23,047 thousand (€ 53,946 thousand in the prior year). The reversal of impairment losses in the Recycling / Precious Metals segment of € 1,323 thousand (impairment losses of € 1,884 thousand in the prior year) related as in the prior year exclusively to impairment losses on current assets. In the Copper Products segment, impairment losses of € 2,794 thousand were recognised on property, plant and equipment (€ 8,766 thousand in the prior year) and of € 8,189 thousand (€ 21,738 thousand in the prior year) on current assets.
The average number of employees for each segment includes the employees of all companies that were fully or proportion- ately consolidated in the accompanying fi nancial 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 fi scal year, are included in accordance with the duration of their employment in the Group. Personnel expenses were reported accordingly.