2012 Annual Report - Italcementi Group

4. Operating segment disclosure
The table below shows the Group operating segments after the sale of Afyon (Turkey) and Fuping (China):
Italy
France-Belgium
Spain
Others Central Western Europe (C.W.E.) - Greece
North America
Egypt
Morocco
Others Emerging Europe, North Africa and Middle East (EE.NA.ME.) - Bulgaria, Kuwait and Saudi Arabia
Thailand
India
Others Asia - Kazakhstan
Cement and clinker trading
Other operations
Cement & clinker trading includes cement and clinker marketing activities in countries where Group terminals
are located: Gambia, Mauritania, Sri Lanka and Albania, as well as direct exports to markets not covered by
Group subsidiaries.
The “Other operations” segment comprises the operations of the Ciments Français S.A. sub-holding, consisting
essentially of provision of services to subsidiaries. It also includes liquid and solid fuel procurement operations
for Group companies, the BravoSolution group in the e-business sector, Italcementi Finance S.A., other
international holdings and other minor operations in Italy.
The Group management and organizational structure essentially reflects the operating segment structure.
Finance income and costs, impairment losses on financial assets and income taxes are not allocated to the
operating segments.
The Group business segments are:
operations relating to the production and sale of cement/clinker,
operations relating to construction materials: ready mixed concrete and aggregates,
other operations such as: transport, engineering, e-business and energy.
The operating segments and business segments are organized and managed by country. The operating
segments consist of the non-current assets of the individual entities located and operating in the countries
indicated above; sales refer mainly to the local market, exports are generally with other Group entities; exports
to external countries are conducted through the Group companies of the international Trading segment.
Consequently the revenue of the entities in each operating segment, net of revenue within the Group, arises
essentially in the areas in which the non-current assets are located.
The cement/clinker business delivers a portion of its production to the ready mixed concrete segment. The
transfer prices applied to trading of goods and services among the segments are regulated on the basis of
arm’s length transactions.
Consolidated cement/clinker revenue is present in all the operating segments with the exception of “Other
operations”, which consists largely of fuel sales and e-business revenue.
Consolidated ready mixed concrete and aggregates revenue is present in almost all the operating segments
with the exception of: Bulgaria and India.
Revenue of other operations refers mainly to e-business revenue and energy revenue in the Italy segment and
fuel sales.
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