Information about segments for reporting purposes
The JSW Management Board is the corporate body that makes the key decisions in the Group. The measure of the financial results generated by the Group’s distinct operating segments analyzed by the Management Board of the Parent Company is the segment’s operating profit/loss determined according to IFRS. Revenues from transactions with external entities are measured in a manner consistent with the method applied for consolidated financial result.
| | Coal | Coke | Other segments * | Consolidation adjustments ** | Total |
|---|---|---|---|---|---|
| FOR THE PERIOD ENDED 31 DECEMBER 2017 | |||||
| Total segment sales revenues | 7929.2 | 3688.1 | 839.2 | (3579.3) | 8877.2 |
| - Revenues on inter-segment sales | 3003.3 | - | 576.0 | (3579.3) | - |
| - Revenues on sales to external buyers | 4925.9 | 3688.1 | 263.2 | - | 8877.2 |
| Gross profit of the segment | 2987.3 | 120.4 | 111.3 | 19.9 | 3238.9 |
| Segment's operating profit/(loss) | 3001.9 | (47.9) | 57.1 | 105.4 | 3116.5 |
| Depreciation and amortization | (680.9) | (96.8) | (56.2) | 9.2 | (824.7) |
| OTHER SIGNIFICANT NON-CASH ITEMS: | |||||
| - Setting up impairment losses on property, plant and equipment and intangible assets | (759.1) | - | (0.5) | - | (759.6) |
| - Reversal of the provision for employee benefits for employees transferred to SRK | 50.1 | - | - | - | 50.1 |
| - Reversal of provisions in connection with the transfer of KWK Krupiński to SRK | 116.2 | - | - | - | 116.2 |
| - Reversal of the impairment loss on property, plant and equipment of the Krupiński Mine transferred from the Suszec Section to other units | 51.2 | - | - | - | 51.2 |
| - Reversal of the provision for potential litigation related to the free coal allowance for old-age and disability pensioners | 1249.2 | - | - | - | 1249.2 |
| TOTAL SEGMENT ASSETS, INCLUDING: | 8598.7 | 2008.7 | 1115.0 | (822.9) | 10899.5 |
| Increases in non-current assets (other than financial instruments and deferred income tax assets) | 852.3 | 81.2 | 123.5 | (9.1) | 1047.9 |
* No operations classified in “Other segments” meet the aggregation criteria and quantitative thresholds defined by IFRS 8 Operating Segments, to be accounted for as a separate operating segment
** The "Consolidation adjustments" column eliminates the effects of intra-segment transactions within the Group
| | Coal | Coke | Other segments * | Consolidation adjustments ** | Total |
|---|---|---|---|---|---|
| FOR THE PERIOD ENDED 31 DECEMBER 2016 | |||||
| Total segment sales revenues | 5846.2 | 2822.7 | 1022.3 | (2959.9) | 6731.3 |
| - Revenues on inter-segment sales | 2294.6 | - | 665.3 | (2959.9) | - |
| - Revenues on sales to external buyers | 3551.6 | 2822.7 | 357.0 | - | 6731.3 |
| Segment's gross profit/(loss) on sales | 1204.1 | 171.7 | 153.5 | (299.6) | 1229.7 |
| Segment’s operating profit/(loss) *** | 663.4 | (67.5) | 52.2 | *** -421.5 | 226.6 |
| Depreciation and amortization | (655.6) | (125.2) | (64.5) | 6.5 | (838.8) |
| OTHER SIGNIFICANT NON-CASH ITEMS: | |||||
| - Setting up impairment losses on property, plant and equipment and intangible assets | (92.1) | - | (9.4) | - | (101.5) |
| - Establishment of a provision for losses on account of unrealized agreements | (52.7) | - | - | - | (52.7) |
| - Reversal of the provision for employee benefits - transfer of Jas-Mos Section employees to SRK | 86.8 | - | - | - | 86.8 |
| - Reversal of provisions in connection with the transfer of the Jas-Mos Section to SRK | 79.3 | - | - | - | 79.3 |
| TOTAL SEGMENT ASSETS, INCLUDING: | 7834.3 | 2190.8 | 1034.6 | (1018.0) | 10041.7 |
| Increases in non-current assets (other than financial instruments and deferred income tax assets) | 739.7 | 61.9 | 304.3 | (35.9) | 1070.0 |
* No operations classified in “Other segments” meet the aggregation criteria and quantitative thresholds defined by IFRS 8 Operating Segments, to be accounted for as a separate operating segment
** The "Consolidation adjustments" column eliminates the effects of intra-segment transactions within the Group
*** Consolidated result on the sale of the companies PEC, SEJ and WZK Victoria is presented in “Consolidation adjustments”
Presented below is reconciliation of the results (operating profit) generated by the segments with profit before tax.
| 2017 | 2016 | |
|---|---|---|
| OPERATING PROFIT | 3116.5 | 226.6 |
| Financial income | 132.9 | 6.9 |
| Financial expenses | (125.9) | (213.8) |
| Share in profits/(losses) of associates | 0.1 | (0.1) |
| PROFIT BEFORE TAX | 3123.6 | 19.6 |
Revenues from transactions between segments are eliminated in the consolidation process. Sales between segments are conducted on an arm’s length basis. According to the principles applied by the Management Board of the Parent Company to evaluate operating results of the respective segments, revenues and margins are recognized in segmental results at the moment a sale is made outside of the segment. Financial income and expenses are not included in the financial result of the various segments.