Anglo American Annual Report 2012

FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS2. SEGMENTAL INFORMATIONThe Group’s segments are aligned to the structure of business units based around core commodities. Each business unit has a management team thatis accountable to the Chief Executive. The Kumba Iron Ore, Iron Ore Brazil and Samancor business units have been aggregated as the Iron Ore and Manganesesegment on the basis of the ultimate product produced (ferrous metals).Phosphates and Niobium (previously Copebrás and Catalão) are reported in the Other Mining and Industrial segment. Following a strategic review during thefirst half of the year, Amapá was transferred to the Other Mining and Industrial business unit, and accordingly is presented as part of the Other Mining andIndustrial segment. It was previously reported as part of the Iron Ore and Manganese segment. Comparatives have been reclassified to align with current yearpresentation. Tarmac is not considered to be individually significant to the Group and is therefore also presented in the Other Mining and Industrial segment.Until November 2012 this reporting segment also included Scaw South Africa.On 16 August 2012 the Group acquired a controlling interest in De Beers (Diamonds segment). Until this date De Beers was accounted for as an associate ofthe Group. From 16 August 2012 De Beers ceased to be an associate and has been accounted for as a subsidiary of the Group. For details of this acquisition,see note 32.The Group’s Executive Committee evaluates the financial performance of the Group and its segments principally with reference to underlying operating profit.Underlying operating profit is presented before special items and remeasurements and includes the Group’s attributable share of associates’ operating profitbefore special items and remeasurements.Segment revenue includes the Group’s attributable share of associates’ revenue. Segments predominantly derive revenue as follows – Iron Ore andManganese: iron ore, manganese ore and alloys; Metallurgical Coal: metallurgical coal; Thermal Coal: thermal coal; Copper and Nickel: base metals; Platinum:platinum group metals; Diamonds: rough and polished diamonds and diamond jewellery; and Other Mining and Industrial: phosphates, niobium, heavy buildingmaterials, iron ore, and, until November 2012, steel products.The Exploration segment includes the cost of the Group’s exploration activities across all segments.The segment results are stated after elimination of inter-segment transactions and include an allocation of corporate costs.Analysis by segmentRevenue and operating (loss)/profit by segmentUnderlying operatingRevenue (1)(loss)/profit (2)US$ million 2012 2011 2012 2011Iron Ore and Manganese 6,403 7,643 2,949 4,400Metallurgical Coal 3,889 4,347 405 1,189Thermal Coal 3,447 3,722 793 1,230Copper 5,122 5,144 1,687 2,461Nickel 336 488 26 57Platinum 5,489 7,359 (120) 890Diamonds 4,028 3,320 496 659Other Mining and Industrial 4,066 4,520 337 315Exploration – – (206) (121)Corporate Activities and Unallocated Costs 5 5 (203) 15Segment measure 32,785 36,548 6,164 11,095Reconciliation:Less: associates (4,024) (5,968) (759) (1,427)Operating special items and remeasurements – – (7,093) (229)Statutory measure 28,761 30,580 (1,688) 9,439(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 Consolidatedincome statement.(2)Segment underlying operating (loss)/profit is revenue less operating costs before special items and remeasurements, and includes the Group’s attributable share of associates’ operating profitbefore special items and remeasurements. This is reconciled to operating (loss)/profit from subsidiaries and joint ventures after special items and remeasurements as presented in theConsolidated income statement.Associates’ revenue and underlying operating profitAssociates’ underlyingAssociates’ revenueoperating profit/(loss) (1)US$ million 2012 2011 2012 2011Iron Ore and Manganese 831 926 104 165Metallurgical Coal 315 372 111 207Thermal Coal 970 1,080 355 482Platinum 231 269 (63) (86)Diamonds 1,675 3,320 252 659Other Mining and Industrial 2 1 – –4,024 5,968 759 1,427Reconciliation:Associates’ net finance costs (58) (48)Associates’ income tax expense (202) (385)Associates’ non-controlling interests (6) (16)Share of net income from associates (before special items and remeasurements) 493 978Associates’ special items and remeasurements (57) (5)Associates’ special items and remeasurements tax (3) 1Associates’ non-controlling interests on special items and remeasurements (1) 3Share of net income from associates 432 977(1)Associates’ underlying operating profit/(loss) is the Group’s attributable share of associates’ revenue less operating costs before special items and remeasurements.148 Anglo American plc Annual Report 2012