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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 16.

The Corporate Activities and Unallocated Costs segment includes insurance costs.

Discontinued operations comprise the Paper and Packaging and Gold segments. The results for discontinued operations are disclosed in note 35.

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 2008 2007 2008 2007 2008 2007
Subsidiaries and joint ventures
Platinum 6,288 6,673 2,206 2,635 2,187 2,635
Base Metals 5,878 7,129 2,505 4,338 2,153 4,338
Ferrous Metals and Industries 4,455 4,207 1,857 1,155 1,242 1,158
Coal 5,319 2,880 1,742 365 1,723 224
Industrial Minerals 4,371 4,581 228 474 137 407
Exploration (212) (157) (162) (157)
Corporate Activities and Unallocated Costs (345) (292) (430) (333)
Total subsidiaries and joint ventures – continuing operations 26,311(2) 25,470(2) 7,981 8,518 6,850 8,272
Revenue and net income from associates
Platinum 39 116 13 38 13 38
Diamonds 3,096 3,076 237 223 47 (229)
Ferrous Metals and Industries 2,394 1,193 724 189 724 198
Coal 1,117 694 329 190 329 190
Industrial Minerals 7 10
Total associates – continuing operations 6,653 5,089 1,303 640 1,113 197
Total operations including net income from associates – continuing operations
32,964

30,559

9,284

9,158

7,963

8,469
Net profit on disposals – continuing operations 1,009 460
Total profit from operations and associates – continuing operations 8,972 8,929
(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)
This represents segment revenue; the Group’s share of associates’ revenue is 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 $32,964 million (2007: $35,674 million) being $32,964 million (2007: $30,559 million) from continuing operations and nil (2007: $5,115 million) from discontinued operations. See note 35 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 2008 2007 2008 2007
Total subsidiaries and joint ventures –
continuing operations
7,981 8,518 6,850 8,272
Associates
Platinum 20 62 20 62
Diamonds 508 484 282 19
Ferrous Metals and Industries 1,078 277 1,078 277
Coal 498 249 498 249
Total associates – continuing operations 2,104 1,072 1,878 607
Operating profit including associates –
continuing operations
10,085 9,590 8,728 8,879
(1)
Associates’ operating profit is reconciled to ‘Share of net income from associates’ as follows:
US$ million 2008 2007
Operating profit from associates before special items and remeasurements – continuing operations
2,104

1,072
Operating special items and remeasurements (226) (465)
Operating profit from associates after special items and remeasurements – continuing operations
1,878

607
Net profit on disposals 18 24
Net finance costs (before remeasurements) (147) (85)
Financing remeasurements (15) (4)
Income tax expense (after special items and remeasurements) (606) (303)
Minority interests (after special items and remeasurements) (15) (42)
Share of net income from associates – continuing operations 1,113 197

‘Operating profit, including associates, before special items and remeasurements – continuing operations’ is reconciled to ‘Profit for the financial year – continuing operations’ as follows:

US$ million 2008 2007
Operating profit, including associates, before special items
and remeasurements – continuing operations
10,085 9,590
Operating special items and remeasurements
Subsidiaries and joint ventures
(1,131) (246)
Platinum (19)
Base Metals (352)
Ferrous Metals and Industries (615) 3
Coal (19) (141)
Industrial Minerals (91) (67)
Exploration 50
Corporate Activities and Unallocated Costs (85) (41)
Associates (226) (465)
Diamonds (226) (465)
Operating profit, including associates, after special items and
remeasurements – continuing operations
8,728 8,879
Net profit on disposals
Subsidiaries and joint ventures 1,009 460
Associates 18 24
Associates’ net finance costs (before remeasurements) (147) (85)
Associates’ financing remeasurements (15) (4)
Associates’ income tax expense (before special items and
remeasurements)
(623) (305)
Associates’ tax on special items and remeasurements 17 2
Associates’ minority interests (before special items and
remeasurements)
(31) (42)
Associates’ minority interests on special items and
remeasurements
16
Total profit from operations and associates – continuing
operations
8,972 8,929
Net finance costs (before remeasurements) (452) (137)
Financing remeasurements 51 29
Profit before tax – continuing operations 8,571 8,821
Income tax expense (after special items and remeasurements) (2,451) (2,693)
Profit for the financial year – continuing operations 6,120 6,128

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 2008 2007 2008 2007 2008 2007 2008 2007
Platinum 9,713 9,926 (668) (692) 9,045 9,234 3,026 2,512
Base Metals 6,783 5,897 (1,309) (908) 5,474 4,989 1,874 582
Ferrous Metals and Industries 11,823 4,517 (656) (530) 11,167 3,987 7,688 2,412
Coal 5,300 4,987 (1,338) (1,003) 3,962 3,984 1,705 1,052
Industrial Minerals 3,935 5,370 (600) (861) 3,335 4,509 479 352
Exploration 3 1 (7) (4) 1 1
Corporate Activities and Unallocated Costs 225 225 (298) (346) (73) (121) 42 44
Continuing operations 37,782 30,923 (4,876) (4,340) 32,906 26,583 14,815 6,954
Paper and Packaging 198
Discontinued operations 198
Total Group 37,782 30,923 (4,876) (4,340) 32,906 26,583 14,815 7,152
Unallocated assets and liabilities
Investments in associates 3,612 3,341 3,612 3,341
Financial asset investments 3,288 4,780 3,288 4,780
Deferred tax assets/(liabilities) 258 474 (4,555) (4,650) (4,297) (4,176)
Cash and cash equivalents 2,771 3,129 2,771 3,129
Other financial assets/(liabilities) – derivatives 376 535 (1,497) (586) (1,121) (51)
Other non-operating assets/(liabilities) 1,651 1,580 (2,515) (2,264) (864) (684)
Other provisions (544) (293) (544) (293)
Borrowings (13,995) (8,299) (13,995) (8,299)
Net assets 49,738 44,762 (27,982) (20,432) 21,756 24,330  
(1)
Segment assets at 31 December 2008 are operating assets and consist of intangible assets of $3,006 million (2007: $1,556 million), tangible assets of $29,545 million (2007: $23,534 million), biological assets of $3million (2007: $3 million), environmental rehabilitation trusts of $244 million (2007: $252 million), inventories of $2,702 million (2007: $2,344 million), retirement benefit assets of $32 million (2007: $52 million) and operating receivables of $2,250 million (2007: $3,182 million).
(2)
Segment liabilities at 31 December 2008 are operating liabilities and consist of non-interest bearing current liabilities of $3,534 million (2007: $2,965 million), restoration and decommissioning provisions of $941 million (2007: $931 million) and retirement benefit obligations of $401 million (2007: $444 million).
(3)
Capital expenditure reflects cash payments and accruals in respect of additions to intangible assets of $24 million (2007: $9 million), tangible assets of $5,726 million (2007: $4,129 million) and additions resulting from acquisitions of interests in subsidiaries and joint ventures of $9,065 million (2007: $3,014 million).

Other primary segment items included in the income statement are as follows:

  Depreciation and
amortisation
(Impairments)/
reversals(1)
Other non-
cash expenses(2)
US$ million 2008 2007 2008 2007 2008 2007
Platinum 507 455 7 8
Base Metals 340 344 (140) 113 94
Ferrous Metals and Industries 87 100 (6) 63 48
Coal 293 221 (40) (153) 110 42
Industrial Minerals 259 258 (71) (43) 44 55
Exploration 45
Corporate Activities and Unallocated Costs 23 20 (2) 54 45
Continuing operations 1,509 1,398 (214) (196) 391 292
Paper and Packaging 234 (5) 12
Discontinued operations 234 (5) 12
Total Group 1,509 1,632 (214) (201) 391 304
(1)
See operating special items in note 7.
(2)
Other non-cash expenses include share-based payment charges, fair value movements relating to cash settled share-based payment provisions and charges in respect of environmental rehabilitation provisions and other provisions.

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 2008 2007
Subsidiaries and joint ventures
South Africa 3,009 4,014
Rest of Africa 97 178
Europe 9,966 10,718
North America 1,476 1,686
South America 2,923 2,545
Australia and Asia 8,840 6,329
Total subsidiaries and joint ventures – continuing operations 26,311 25,470
Associates
South Africa 942 796
Rest of Africa 225 82
Europe 1,985 1,498
North America 896 520
South America 84 52
Australia and Asia 2,521 2,141
Total associates – continuing operations 6,653 5,089
Total operations including associates – continuing operations 32,964 30,559

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 2008 2007 2008 2007 2008 2007 2008 2007
South Africa 13,540 13,879 (1,633) (1,661) 11,907 12,218 3,841 3,303
Rest of Africa 364 526 (30) (32) 334 494 16 64
Europe 4,045 5,658 (910) (1,057) 3,135 4,601 474 526
North America 629 465 (119) (106) 510 359 195 151
South America 15,688 7,212 (1,431) (935) 14,257 6,277 9,035 2,436
Australia and Asia 3,516 3,183 (753) (549) 2,763 2,634 1,254 672
  37,782 30,923 (4,876) (4,340) 32,906 26,583 14,815 7,152

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 2008 2007 2008 2007 2008 2007
Subsidiaries and joint ventures
South Africa 11,708 12,003 4,468 4,043 4,363 4,044
Rest of Africa 280 540 78 351 78 351
Europe 4,545 4,995 (226) 425 (460) 320
North America 451 230 (33) 30 (25) 31
South America 5,825 6,234 2,612 3,697 1,787 3,697
Australia and Asia 3,502 1,468 1,082 (28) 1,107 (171)
Total subsidiaries and joint ventures – continuing operations 26,311 25,470 7,981 8,518 6,850 8,272
Associates
South Africa 2,078 1,374 639 248 417 222
Rest of Africa 2,250 2,160 389 342 385 342
Europe 260 872 43 88 43 88
North America 254 63 4 17 4 (422)
South America 918 96 373 198 373 198
Australia and Asia 893 524 656 179 656 179
Total associates – continuing operations 6,653 5,089 2,104 1,072 1,878 607
Total operations including associates – continuing operations 32,964 30,559 10,085 9,590 8,728 8,879
(1)
Special items and remeasurements are set out in note 7.

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