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Notes to the financial statements

2. Segmental information

The Group's segments are aligned to the structure of Business Units based around core commodities. In addition assets identified for divestment are managed as a separate Business Unit, Other Mining and Industrial. The Kumba Iron Ore, Iron Ore Brazil and Samancor Business Units have been aggregated as the Iron Ore and Manganese segment on the basis of the ultimate product produced (ferrous metals). Each Business Unit has a management team that is accountable to the Chief executive.

The Group's Executive Committee evaluates the financial performance of the Group and its segments principally with reference to operating profit before special items and remeasurements which includes the Group's attributable share of associates' operating profit before special items and remeasurements.

Segments predominately derive revenue as follows - Platinum: platinum group metals; Diamonds: rough and polished diamonds and diamond jewellery; Copper and Nickel: base metals; Iron Ore and Manganese: iron ore, manganese ore and alloys; Metallurgical Coal: metallurgical coal; Thermal Coal: thermal coal; and Other Mining and Industrial: heavy building materials, zinc and steel products.

The segment results are stated after elimination of inter-segment transactions and include an allocation of corporate costs.

The Corporate Activities and Unallocated Costs segment includes insurance costs.

Due to the portfolio and management structure changes announced in October 2009, the segments have changed from those reported at 31 December 2008. Comparatives have been reclassified to align with current year presentation.

  Revenue(1)   Operating profit/(loss)(2)
US$ million 2009 2008   2009 2008
Platinum 4,535 6,327   32 2,169
Diamonds 1,728 3,096   64 508
Copper 3,967 3,907   2,010 1,892
Nickel 348 408   2 123
Iron Ore and Manganese 3,419 4,099   1,489 2,554
Metallurgical Coal 2,239 3,119   451 1,110
Thermal Coal 2,490 3,051   721 1,078
Other Mining and Industrial 5,908 8,951   506 1,082
Exploration - -   (172) (212)
Corporate Activities and Unallocated Costs 3 6   (146) (219)
Segment measure 24,637 32,964   4,957 10,085
Reconciliation:          
Less: Associates (3,779) (6,653)   (580) (2,104)
Operating special items and remeasurements - -   (1,637) (1,131)
Statutory measure 20,858 26,311   2,740 6,850
(1)
Segment revenue includes the Group's attributable share of associates' revenue. This is reconciled to Group revenue from subsidiaries and joint ventures as presented in the Consolidated income statement.
(2)
Segment operating profit is revenue less operating costs before special items and remeasurements, and includes the Group's attributable share of associates' operating profit. This is reconciled to Operating profit from subsidiaries and joint ventures after special items and remeasurements as presented in the Consolidated income statement.

Associates' revenue and operating profit are as follows:

  Associates' revenue   Associates' operating
profit/(loss)(1)
US$ million 2009 2008   2009 2008
Platinum 47 39   (26) 20
Diamonds 1,728 3,096   64 508
Iron Ore and Manganese 603 1,526   143 980
Metallurgical Coal 164 170   48 102
Thermal Coal 742 841   303 375
Other Mining and Industrial 495 981   48 119
  3,779 6,653   580 2,104
Reconciliation:          
Associates' net finance costs (before special items and remeasurements)       (28) (147)
Associates' income tax expense (before special items and remeasurements)       (235) (623)
Associates' minority interests (before special items and remeasurements)       1 (31)
Share of net income from associates (before special items and remeasurements)       318 1,303
Associates' special items and remeasurements       (184) (223)
Associate's tax special item       (45) -
Associates' tax on special items and remeasurements       (6) 17
Associates' minority interests on special items and remeasurements       1 16
Share of net income from associates       84 1,113
(1)
Associates' operating profit is the Group's attributable share of associates' revenue less operating costs before special items and remeasurements.

Significant non-cash items included within operating profit are as follows:

  Depreciation and amortisation(1)   Other non-cash
expenses(2)
US$ million 2009 2008   2009 2008
Platinum 636 507   92 7
Copper 244 212   71 50
Nickel 26 27   9 4
Iron Ore and Manganese 81 52   4 51
Metallurgical Coal 249 205   26 43
Thermal Coal 107 78   13 61
Other Mining and Industrial 360 404   94 108
Exploration - -   4 -
Corporate Activities and Unallocated Costs 22 24   79 67
  1,725 1,509   392 391
(1)
The Group's attributable share of depreciation and amortisation in associates is $248 million (2008: $253 million) and is split by segment as follows: Platinum $9 million (2008: $2 million), Diamonds $151 million (2008: $157 million), Iron Ore and Manganese $23 million (2008: $19 million), Metallurgical Coal $6 million (2008: $4 million), Thermal Coal $47 million (2008: $44 million) and Other Mining and Industrial $12 million (2008: $27 million).
(2)
Other non-cash expenses include equity settled share-based payment charges and amounts included in operating costs in respect of provisions.

Balance sheet measures are as follows:

  Capital expenditure(1)   Net debt(2)
US$ million 2009 2008   2009 2008
Platinum 1,150 1,563   196 995
Copper 1,068 808   (187) (622)
Nickel 554 530   380 (66)
Iron Ore and Manganese 1,044 783   874 698
Metallurgical Coal 96 467   (9) (18)
Thermal Coal 400 365   23 (139)
Other Mining and Industrial 268 603   341 354
Exploration - 1   - -
Corporate Activities and Unallocated Costs 27 26   9,425 9,849
  4,607 5,146   11,043 11,051
Reconciliation:          
Interest capitalised 246 215      
Non-cash movements(3) 379 365      
Tangible asset additions 5,232 5,726      
Tangible assets acquired through business combinations 28 7,358      
Intangible asset additions 50 1,731      
Net debt in disposal groups       (48) (8)
  5,310(4) 14,815(4)   10,995 11,043
(1)
Capital expenditure is segmented on a cash basis and is reconciled to balance sheet additions. Cash capital expenditure excludes cash flows on related derivatives.
(2)
Segment net debt excludes net debt in disposal groups and hedges. A reconciliation of net debt to the balance sheet is provided in note 30. At 31 December 2007 net debt of $5,170 million was split by segment as follows: Platinum $846 million, Copper $(298) million, Nickel $(233) million, Iron Ore and Manganese $(123) million, Metallurgical Coal $(3) million, Thermal Coal $(76) million, Other Mining and Industrial $182 million, Exploration $(1) million and Corporate Activities and Unallocated Costs $4,876 million. Group net debt of $5,239 million included a further $69 million of net debt in disposal groups.
(3)
Includes movements on tangible asset accruals and the impact of cash flow hedge derivatives.
(4)
Capital expenditure on an accruals basis and including additions resulting from acquisitions of interests in subsidiaries and joint ventures is split by segment as follows: Platinum $1,445 million (2008: $3,026 million), Copper $1,186 million (2008: $1,087 million), Nickel $570 million (2008: $597 million), Iron Ore and Manganese $1,157 million (2008: $7,569 million), Metallurgical Coal $173 million (2008: $1,222 million), Thermal Coal $409 million (2008: $383 million), Other Mining and Industrial $323 million (2008: $882 million), Exploration nil (2008: $1 million) and Corporate Activities and Unallocated Costs $47 million (2008: $48 million).

The following balance sheet segment measures are provided for information:

  Segment assets(1)   Segment liabilities(2)   Net segment assets
US$ million 2009 2008   2009 2008   2009 2008
Platinum 13,082 9,713   (941) (668)   12,141 9,045
Copper 5,643 4,134   (880) (986)   4,763 3,148
Nickel 1,888 1,485   (101) (84)   1,787 1,401
Iron Ore and Manganese 10,758 10,768   (388) (311)   10,370 10,457
Metallurgical Coal 4,176 3,369   (769) (700)   3,407 2,669
Thermal Coal 2,343 1,624   (636) (606)   1,707 1,018
Other Mining and Industrial 6,231 6,435   (1,202) (1,204)   5,029 5,231
Exploration 4 3   (2) (7)   2 (4)
Corporate Activities and Unallocated Costs 311 251   (409) (310)   (98) (59)
  44,436 37,782   (5,328) (4,876)   39,108 32,906
Other assets and liabilities                
Investments in associates(3) 3,312 3,612   - -   3,312 3,612
Financial asset investments 2,729 3,288   - -   2,729 3,288
Deferred tax assets/(liabilities) 288 258   (5,192) (4,555)   (4,904) (4,297)
Cash and cash equivalents 3,269 2,771   - -   3,269 2,771
Other financial assets/(liabilities) - derivatives 603 376   (659) (1,497)   (56) (1,121)
Other non-operating assets/(liabilities) 1,671 1,651   (2,128) (2,515)   (457) (864)
Other provisions - -   (617) (544)   (617) (544)
Borrowings - -   (14,315) (13,995)   (14,315) (13,995)
Net assets 56,308 49,738   (28,239) (27,982)   28,069 21,756
(1)
Segment assets at 31 December 2009 are operating assets and consist of intangible assets of $2,776 million (2008: $3,006 million), tangible assets of $35,198 million (2008: $29,545 million), biological assets of $4 million (2008: $3 million), environmental rehabilitation trusts of $342 million (2008: $244 million), retirement benefit assets of $54 million (2008: $32 million), inventories of $3,212 million (2008: $2,702 million) and operating receivables of $2,850 million (2008: $2,250 million).
(2)
Segment liabilities at 31 December 2009 are operating liabilities and consist of non-interest bearing current liabilities of $3,447 million (2008: $3,534 million), retirement benefit obligations of $706 million (2008: $401 million) and environmental restoration and decommissioning provisions of $1,175 million (2008: $941 million).
(3)
Refer to note 16 for a split of investments in associates by segment.

Entity wide information

The Group's analysis of segment revenue by product (including attributable share of revenue from associates) is as follows:

US$ million 2009 2008
Platinum 3,101 3,570
Palladium 361 531
Rhodium 527 1,632
Diamonds 1,728 3,096
Copper 3,783 3,639
Nickel 625 734
Iron ore 2,330 2,281
Manganese 603 1,526
Metallurgical coal 1,693 2,775
Thermal coal 3,197 3,637
Zinc 445 467
Steel products 1,371 1,927
Heavy building materials 2,870 4,399
Other 2,003 2,750
  24,637 32,964

The Group's geographical analysis of segment revenue (including attributable share of revenue from associates) allocated based on the country in which the customer is located, and non-current segment assets, allocated based on the country in which the assets are located, is as follows:

  Revenue   Non-current
segment assets(1)
US$ million 2009 2008   2009 2008
South Africa 2,567 3,951   15,161 11,040
Other Africa 139 322   599 309
United Kingdom (Anglo American plc's country of domicile) 3,850 4,672   2,686 2,491
Other Europe 5,014 7,279   241 712
US 790 1,294   123 92
Other North America 507 1,078   575 414
Brazil 662 1,423   10,105 10,468
Chile 1,229 1,398   4,280 3,448
Venezuela 5 8   281 462
Other South America 185 178   293 206
Australia 427 344   3,584 2,863
China 3,469 1,956   4 3
India 1,222 1,599   - -
Japan 2,697 4,516   - -
Other Asia 1,874 2,946   46 46
  24,637 32,964   37,978 32,554
(1)
Non-current segment assets are non-current operating assets and consist of tangible assets, intangible assets and biological assets. Non-current segment assets at 31 December 2007 were $25,093 million.

Segment revenue and operating profit/(loss) before special items and remeasurements by origin (including attributable share of revenue and operating profit/(loss) from associates) has been provided for information:

  Revenue   Operating profit/(loss) before special items and remeasurements
US$ million 2009 2008   2009 2008
South Africa 10,293 13,786   2,023 5,107
Other Africa 1,539 2,530   78 467
Europe 2,976 4,805   (54) (183)
North America 510 705   (20) (29)
South America 6,040 6,743   2,310 2,985
Australia and Asia 3,279 4,395   620 1,738
  24,637 32,964   4,957 10,085

The Group's geographical analysis of segment assets and liabilities, allocated based on where assets and liabilities are located, has been provided for information:

  Segment assets(1)   Segment liabilities   Net segment assets
US$ million 2009 2008   2009 2008   2009 2008
South Africa 18,309 13,540   (2,148) (1,633)   16,161 11,907
Other Africa 664 364   (66) (30)   598 334
Europe 3,820 4,045   (907) (910)   2,913 3,135
North America 805 629   (132) (119)   673 510
South America 16,528 15,688   (1,262) (1,431)   15,266 14,257
Australia and Asia 4,310 3,516   (813) (753)   3,497 2,763
  44,436 37,782   (5,328) (4,876)   39,108 32,906
(1)
Investments in associates are not included in segment assets. The geographical distribution of these investments, based on the location of the underlying assets, is disclosed in note 16.

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Annual Report 2009