2. Segmental information
Based on risks and returns the directors consider the primary reporting format is by business segment and the secondary reporting format is by geographical segment.
The analysis of associates’ revenue by business segment is provided here for completeness and consistency. The segmental analysis of associates’ net income is shown below and the Group’s aggregate investment in those associates required by IAS 14 Segment Reporting, is set out in note 17.
In 2007 Copebrás and Yang Quarry have been reclassified from Industrial Minerals to Base Metals and from Industrial Minerals to Coal respectively. This is to align with internal management reporting. As such, the comparative data has been reclassified.
Discontinued operations comprise the Paper and Packaging and Gold segments. The Paper and Packaging segment was demerged from the Group on 2 July 2007 and following a partial disposal on 2 October 2007 (which reduced the Group’s shareholding from 41.6% to 17.3%) the Group ceased to equity account for the Gold segment. The results for discontinued operations are disclosed in note 33.
Primary reporting format – by business segment
| Segment revenue | Segment result before special items and remeasurements(1) |
Segment result after special items and remeasurements(1) |
||||
|---|---|---|---|---|---|---|
| US$ million | 2007 | 2006(2) | 2007 | 2006(2) | 2007 | 2006(2) |
| Subsidiaries and joint ventures | ||||||
| Platinum | 6,673 | 5,766 | 2,635 | 2,337 | 2,635 | 2,337 |
| Coal | 2,880 | 2,757 | 365 | 605 | 224 | 452 |
| Base Metals | 7,129 | 6,534 | 4,338 | 3,897 | 4,338 | 3,905 |
| Ferrous Metals and Industries | 4,207 | 5,973 | 1,155 | 1,303 | 1,158 | 1,324 |
| Industrial Minerals | 4,581 | 3,961 | 474 | 315 | 407 | 46 |
| Exploration | – | – | (157) | (132) | (157) | (132) |
| Corporate Activities | – | – | (292) | (277) | (333) | (290) |
| Total subsidiaries and joint ventures – continuing operations | 25,470(3) | 24,991(3) | 8,518 | 8,048 | 8,272 | 7,642 |
| Revenue and net income from associates | ||||||
| Platinum | 116 | 95 | 38 | 40 | 38 | 40 |
| Diamonds | 3,076 | 3,148 | 223 | 199 | (229) | 337 |
| Coal | 694 | 607 | 190 | 185 | 190 | 185 |
| Ferrous Metals and Industries | 1,193 | 546 | 189 | 38 | 198 | 44 |
| Industrial Minerals | 10 | 17 | – | 1 | – | 1 |
| Total associates – continuing operations |
5,089 | 4,413 | 640 | 463 | 197 | 607 |
| Total Group operations including net income from associates – continuing operations | 30,559 | 29,404 | 9,158 | 8,511 | 8,469 | 8,249 |
| Net profit on disposals – continuing operations | 460 | 265 | ||||
| Total profit from operations and associates – continuing operations | 8,929 | 8,514 | ||||
(1) Segment result is defined as being segment revenue less segment expense; that is operating profit. In addition ‘Share of net income from associates’ is shown by segment. There are no material inter-segment transfers or transactions that would affect the segment result. Special items and remeasurements are set out in note 7.
(2) Comparatives have been adjusted to exclude amounts relating to discontinued operations.
(3) This represents segment revenue; the Group’s share of associates’ revenue figures are provided for additional information.
The table above represents continuing operations only, as disclosed in the income statement. Total Group revenue including share of revenue from associates and revenue from discontinued operations is $35,674 million (2006: $38,637 million) being $30,559 million (2006: $29,404 million) from continuing operations and $5,115 million (2006: $9,233 million) from discontinued operations. See note 33 for summarised segmental disclosures relating to discontinued operations.
For information, a segmental analysis of associates’ operating profit is set out below to show operating profit for the Group’s continuing operations including associates.
| Operating profit before special items and remeasurements(1) |
Operating profit after special items and remeasurements(1) |
|||
|---|---|---|---|---|
| US$ million | 2007 | 2006(2) | 2007 | 2006(2) |
| Total subsidiaries and joint ventures – continuing operations | 8,518 | 8,048 | 8,272 | 7,642 |
| Associates | ||||
| Platinum | 62 | 61 | 62 | 61 |
| Diamonds | 484 | 463 | 19 | 446 |
| Coal | 249 | 257 | 249 | 257 |
| Ferrous Metals and Industries | 277 | 57 | 277 | 57 |
| Industrial Minerals | – | 2 | – | 2 |
| Total associates – continuing operations | 1,072 | 840 | 607 | 823 |
| Total Group operations including operating profit from associates – continuing operations | 9,590 | 8,888 | 8,879 | 8,465 |
(1) Associates’ operating profit is reconciled to ‘Share of net income from associates’ as follows:
| US$ million | 2007 | 2006(2) |
|---|---|---|
| Operating profit from associates before special items and remeasurements – continuing operations | 1,072 | 840 |
| Operating special items and remeasurements | (465) | (17) |
| Operating profit from associates after special items and remeasurements – continuing operations | 607 | 823 |
| Net profit on disposals | 24 | 182 |
| Net finance costs (before remeasurements) | (85) | (70) |
| Financing remeasurements | (4) | 1 |
| Income tax expense (after special items and remeasurements) | (303) | (300) |
| Minority interests (after special items and remeasurements) | (42) | (29) |
| Share of net income from associates – continuing operations | 197 | 607 |
(2) Comparatives have been adjusted to exclude amounts relating to discontinued operations.
The segment result and associates’ operating profit before special items and remeasurements, as shown above, is reconciled to ‘Profit for the financial year’ as follows:
| US$ million | 2007 | 2006(1) | |
|---|---|---|---|
| Operating profit, including associates, before special items and remeasurements – continuing operations | 9,590 | 8,888 | |
| Operating special items and remeasurements Subsidiaries and joint ventures |
(246) | (406) | |
| Coal | (141) | (153) | |
| Base Metals | – | 8 | |
| Ferrous Metals and Industries | 3 | 21 | |
| Industrial Minerals | (67) | (269) | |
| Corporate Activities | (41) | (13) | |
| Associates |
(465) | (17) | |
| Diamonds | (465) | (17) | |
| Operating profit, including associates, after special items and remeasurements – continuing operations | 8,879 | 8,465 | |
| Net profit on disposals | |||
| Subsidiaries and joint ventures | 460 | 265 | |
| Associates | 24 | 182 | |
| Associates’ net finance costs | (85) | (70) | |
| Associates’ financing remeasurements | (4) | 1 | |
| Associates’ income tax expense | (305) | (278) | |
| Associates’ tax on special items and remeasurements | 2 | (22) | |
| Associates’ minority interests | (42) | (29) | |
| Total profit from operations and associates – continuing operations | 8,929 | 8,514 | |
| Net finance costs before special items and remeasurements | (137) | (110) | |
| Financing special items | – | (4) | |
| Financing remeasurements | 29 | 43 | |
| Profit before tax – continuing operations | 8,821 | 8,443 | |
| Income tax expense | (2,693) | (2,518) | |
| Profit for the financial year – continuing operations | 6,128 | 5,925 | |
(1) Comparatives have been adjusted to exclude amounts relating to discontinued operations.
Primary segment disclosures for segment assets, liabilities and capital expenditure are as follows:
| Segment assets(1) |
Segment liabilities(2) |
Net segment assets |
Capital expenditure(3) |
|||||
|---|---|---|---|---|---|---|---|---|
| US$ million | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 |
| Platinum | 9,926 | 7,721 | (692) | (643) | 9,234 | 7,078 | 2,512 | 935 |
| Coal | 4,987 | 3,661 | (1,003) | (791) | 3,984 | 2,870 | 1,052 | 791 |
| Base Metals | 5,897 | 5,291 | (908) | (692) | 4,989 | 4,599 | 582 | 315 |
| Ferrous Metals and Industries | 4,517 | 3,529 | (530) | (733) | 3,987 | 2,796 | 2,412 | 660 |
| Industrial Minerals | 5,370 | 5,080 | (861) | (895) | 4,509 | 4,185 | 352 | 383 |
| Exploration | 1 | 1 | – | (2) | 1 | (1) | – | – |
| Corporate Activities | 225 | 200 | (346) | (404) | (121) | (204) | 44 | 29 |
| Continuing operations | 30,923 | 25,483 | (4,340) | (4,160) | 26,583 | 21,323 | 6,954 | 3,113 |
| Gold | – | – | – | – | – | – | – | 196 |
| Paper and Packaging | – | 8,113 | – | (1,094) | – | 7,019 | 198 | 704 |
| Discontinued operations | – | 8,113 | – | (1,094) | – | 7,019 | 198 | 900 |
| Total Group | 30,923 | 33,596 | (4,340) | (5,254) | 26,583 | 28,342 | 7,152 | 4,013 |
| Unallocated | ||||||||
| Investments in associates | 3,341 | 4,780 | – | – | 3,341 | 4,780 | ||
| Financial asset investments | 4,780 | 1,973 | – | – | 4,780 | 1,973 | ||
| Deferred tax assets/ (liabilities) | 474 | 372 | (4,650) | (3,687) | (4,176) | (3,315) | ||
| Cash and cash equivalents | 3,129 | 3,004 | – | – | 3,129 | 3,004 | ||
| Other financial assets/ (liabilities) – derivatives | 535 | 329 | (586) | (520) | (51) | (191) | ||
| Other non-operating assets/(liabilities) | 1,580 | 2,429 | (2,264) | (3,308) | (684) | (879) | ||
| Other provisions | – | – | (293) | (339) | (293) | (339) | ||
| Borrowings | – | – | (8,299) | (6,248) | (8,299) | (6,248) | ||
| Net assets | 44,762 | 46,483 | (20,432) | (19,356) | 24,330 | 27,127 | ||
(1) Segment assets at 31 December 2007 are operating assets and consist of tangible assets of $23,534 million (2006: $23,498 million), intangible assets of $1,556 million (2006: $2,134 million), biological assets of $3 million (2006: $324 million), environmental rehabilitation trusts of $252 million (2006: $197 million), inventories of $2,344 million (2006: $2,974 million), pension and post retirement healthcare assets of $52 million (2006: $110 million) and operating receivables of $3,182 million (2006: $4,359 million).
(2) Segment liabilities at 31 December 2007 are operating liabilities and consist of non-interest bearing current liabilities of $2,965 million (2006: $3,732 million), restoration and decommissioning provisions of $931 million (2006: $747 million) and retirement benefit obligations of $444 million (2006: $775 million).
(3) Capital expenditure reflects cash payments and accruals in respect of additions to tangible assets of $4,129 million (2006: $3,702 million), intangible assets of $9 million (2006: $9 million) (see notes 14 and 13 respectively) and additions resulting from acquisitions through business combinations of $3,014 million (2006: $302 million).
Other primary segment items included in the income statement are as follows:
| Depreciation and amortisation | (Impairments)/ reversal(1)(2) | Other non-cash expenses(3) | ||||
|---|---|---|---|---|---|---|
| US$ million | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 |
| Platinum | 455 | 444 | – | – | 8(4) | 72 |
| Coal | 221 | 173 | (153) | (143) | 42 | 27 |
| Base Metals | 344 | 357 | – | – | 94 | 124 |
| Ferrous Metals and Industries | 100 | 199 | – | 11 | 48 | 37 |
| Industrial Minerals | 258 | 224 | (43) | (255) | 55 | 20 |
| Exploration | – | – | – | – | – | 2 |
| Corporate Activities | 20 | 17 | – | (13) | 45 | 40 |
| Continuing operations | 1,398 | 1,414 | (196) | (400) | 292 | 322 |
| Gold | – | 183 | – | – | 32 | 12 |
| Paper and Packaging | 234 | 439 | (5) | (100) | 12 | 21 |
| Discontinued operations | 234 | 622 | (5) | (100) | 44 | 33 |
| Total Group | 1,632 | 2,036 | (201) | (500) | 336 | 355 |
(1) See operating special items in note 7.
(2) Amounts include negative goodwill in 2006.
(3) Other non-cash expenses include share-based payment charges and charges in respect of environmental rehabilitation provisions and other provisions.
(4) Includes the reversal of a share-based payment over provision of $30 million relating to prior periods.
Secondary reporting format – by geographical segment
The Group’s geographical analysis of revenue, allocated based on the country in which the customer is located, is as follows. The geographical analysis of the Group’s attributable revenue from associates is provided for completeness and consistency.
| Revenue | ||
|---|---|---|
| US$ million | 2007 | 2006(1) |
| Subsidiaries and joint ventures | ||
| South Africa | 4,014 | 4,767 |
| Rest of Africa | 178 | 276 |
| Europe | 10,718 | 9,142 |
| North America | 1,686 | 1,817 |
| South America | 2,545 | 2,797 |
| Australia and Asia | 6,329 | 6,192 |
| Total subsidiaries and joint ventures – continuing operations | 25,470 | 24,991 |
| Associates | ||
| South Africa | 796 | 467 |
| Rest of Africa | 82 | 40 |
| Europe | 1,498 | 1,532 |
| North America | 520 | 421 |
| South America | 52 | 41 |
| Australia and Asia | 2,141 | 1,912 |
| Total associates – continuing operations | 5,089 | 4,413 |
| Total Group operations including associates – continuing operations | 30,559 | 29,404 |
(1) Comparatives have been adjusted to exclude amounts relating to discontinued operations.
The Group’s geographical analysis of segment assets, liabilities and capital expenditure, allocated based on where assets and liabilities are located, is as follows:
| Segment assets | Segment liabilities | Net segment assets | Capital expenditure | |||||
|---|---|---|---|---|---|---|---|---|
| US$ million | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 |
| South Africa | 13,879 | 14,144 | (1,661) | (2,056) | 12,218 | 12,088 | 3,303 | 1,935 |
| Rest of Africa | 526 | 732 | (32) | (82) | 494 | 650 | 64 | 75 |
| Europe | 5,658 | 11,208 | (1,057) | (1,858) | 4,601 | 9,350 | 526 | 927 |
| North America | 465 | 388 | (106) | (108) | 359 | 280 | 151 | 202 |
| South America | 7,212 | 4,594 | (935) | (646) | 6,277 | 3,948 | 2,436 | 301 |
| Australia and Asia | 3,183 | 2,530 | (549) | (504) | 2,634 | 2,026 | 672 | 573 |
| 30,923 | 33,596 | (4,340) | (5,254) | 26,583 | 28,342 | 7,152 | 4,013 | |
Additional disclosure of secondary segmental information by origin (including attributable revenue and operating profit from associates) is as follows:
| Revenue | Operating profit/(loss) before special items and remeasurements(1) |
Operating profit/(loss) after special items and remeasurements(1) |
||||
|---|---|---|---|---|---|---|
| US$ million | 2007 | 2006(2) | 2007 | 2006(2) | 2007 | 2006(2) |
| Subsidiaries and joint ventures | ||||||
| South Africa | 12,003 | 11,693 | 4,043 | 3,692 | 4,044 | 3,704 |
| Rest of Africa | 540 | 417 | 351 | 213 | 351 | 214 |
| Europe | 4,995 | 5,395 | 425 | 476 | 320 | 193 |
| North America | 230 | 185 | 30 | 29 | 31 | 43 |
| South America | 6,234 | 5,687 | 3,697 | 3,389 | 3,697 | 3,389 |
| Australia and Asia | 1,468 | 1,614 | (28) | 249 | (171) | 99 |
| Total subsidiaries and joint ventures – continuing operations | 25,470 | 24,991 | 8,518 | 8,048 | 8,272 | 7,642 |
| Associates | ||||||
| South Africa | 1,374 | 943 | 248 | 162 | 222 | 170 |
| Rest of Africa | 2,160 | 2,094 | 342 | 295 | 342 | 295 |
| Europe | 872 | 469 | 88 | 98 | 88 | 98 |
| North America | 63 | 38 | 17 | 25 | (422) | – |
| South America | 96 | 542 | 198 | 190 | 198 | 190 |
| Australia and Asia | 524 | 327 | 179 | 70 | 179 | 70 |
| Total associates – continuing operations | 5,089 | 4,413 | 1,072 | 840 | 607 | 823 |
| Total Group operations including associates – continuing operations | 30,559 | 29,404 | 9,590 | 8,888 | 8,879 | 8,465 |
(1) Special items and remeasurements are set out in note 7.
(2) Comparatives have been adjusted to exclude amounts relating to discontinued operations