5. Segment reporting
The Company’s Chief Executive Officer has been identified as the chief operating decision maker (“CODM”) since the role encompasses authority over resource allocation decisions and performance assessment, mainly analyzing performance from the production obtained in the operations. The Company has identified 10 operating segments:
| · | Europe – Manganese Alloys |
| · | South Africa – Silicon Metals |
| · | South Africa – Silicon Alloys; and |
The operating segments described above are those components whose operating results are regularly reviewed by the entity’s CODM to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. This is due to the integrated operations within each region and product family and the ability to reallocate production based on the individual capacity of each plant. Additionally, economic factors that may impact our results of operations, such as currency fluctuations and energy costs, are also assessed at a regional and product level.
The Company’s North America- Silicon Metal and North America – Silicon Alloys reportable segments are the result of the aggregation of the operating segments of the United States and Canada Silicon Metals and the operating segments of the United States and Canada Silicon Alloys. These operating segments have been aggregated as they have similar long-term economic characteristics and there is similarity of competitive and operating risks and the political environment in the United States and Canada. The Europe-Silicon Metals, the Europe-Silicon Alloys, the Europe -Manganese, the South Africa – Silicon Metals and South Africa – Silicon Alloys reportable segments are equal to each related Operating segment.
All other segments that do not meet the quantitative threshold for separate reporting and are deemed to have similar economic characteristics have been grouped as “Other segments”, which mainly includes holding entities in the United Kingdom and our Ferroglobe Advanced Material (formerly Ferrosolar OPCO) subsidiary in Spain.
The consolidated income statements as of December 31, 2023, 2022 and 2021, respectively, by reportable segment, are as follows:
| North America · North America · Europe · Europe · South Africa · South Africa · Adjustments/ |
|---|
| Silicon Metal | Silicon Alloys | Europe Manganese | Silicon Metal | Silicon Alloys | Silicon Metal | Silicon Alloys | Other segments | Eliminations (*) | Total |
|---|
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
|---|
| Sales | 505,472 | 283,180 | 277,508 | 307,230 | 216,465 | 50,071 | 109,684 | 54,921 | (154,497) | 1,650,034 |
|---|
| Raw materials and energy consumption for production | (313,162) | (165,193) | (183,839) | (103,304) | (108,409) | (44,003) | (82,201) | (35,280) | 156,105 | (879,286) |
|---|
| Other operating income | 6,605 | 3,896 | 36,628 | 40,321 | 21,149 | 594 | (142) | 50,655 | (58,714) | 100,992 |
|---|
| Staff costs | (67,160) | (37,744) | (28,326) | (79,114) | (42,069) | (5,007) | (10,412) | (36,027) | — | (305,859) |
|---|
| Other operating expense | (44,304) | (26,840) | (69,897) | (71,632) | (44,132) | (11,223) | (10,718) | (48,309) | 56,965 | (270,090) |
|---|
| Depreciation and amortization charges | (32,313) | (15,183) | (7,835) | (6,325) | (3,005) | (1,840) | (4,056) | (2,975) | — | (73,532) |
|---|
| Impairment (loss) gain | (21,008) | — | (1,571) | — | (3,619) | 478 | — | 430 | — | (25,290) |
|---|
| Other (loss) gain | (71) | (115) | 1 | 79 | 47 | — | — | 30 | — | (29) |
|---|
| Operating Profit | 34,059 | 42,001 | 22,669 | 87,255 | 36,427 | (10,930) | 2,155 | (16,555) | (141) | 196,940 |
|---|
| North America · North America · Europe · Europe · South Africa · South Africa · Adjustments/ |
|---|
| Silicon Metal | Silicon Alloys | Europe Manganese | Silicon Metal | Silicon Alloys | Silicon Metal | Silicon Alloys | Other segments | Eliminations (*) | Total |
|---|
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
|---|
| Sales | 671,290 | 339,414 | 701,140 | 536,753 | 259,419 | 17,337 | 122,262 | 81,560 | (131,259) | 2,597,916 |
|---|
| Raw materials and energy consumption for production | (305,545) | (68,490) | (541,034) | (241,936) | (139,687) | (9,270) | (65,373) | (46,759) | 133,008 | (1,285,086) |
|---|
| Other operating income | 6,464 | 122 | 42,882 | 76,255 | 23,622 | 156 | 66 | 59,840 | (62,051) | 147,356 |
|---|
| Staff costs | (61,378) | (41,923) | (28,996) | (81,175) | (50,467) | (1,736) | (11,652) | (37,483) | — | (314,810) |
|---|
| Other operating expense | (33,708) | (37,859) | (111,741) | (99,513) | (33,265) | (2,649) | (13,193) | (74,626) | 60,302 | (346,252) |
|---|
| Depreciation and amortization charges | (33,708) | (15,135) | (13,005) | (4,605) | (8,086) | (748) | (5,278) | (994) | — | (81,559) |
|---|
| Impairment (loss) gain | — | — | (33,222) | — | (26,028) | 5,357 | 2,408 | (5,514) | — | (56,999) |
|---|
| Other (loss) gain | (522) | (126) | (178) | 230 | 82 | — | — | 495 | — | (19) |
|---|
| Operating (loss) profit | 242,893 | 176,003 | 15,846 | 186,009 | 25,590 | 8,447 | 29,240 | (23,481) | — | 660,547 |
|---|
| North America · North America · Europe · Europe · South Africa · South Africa · Adjustments/ |
|---|
| Silicon Metal | Silicon Alloys | Europe Manganese | Silicon Metal | Silicon Alloys | Silicon Metal | Silicon Alloys | Other segments | Eliminations (*) | Total |
|---|
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
|---|
| Sales | 370,109 | 154,699 | 476,287 | 437,533 | 227,804 | 12,604 | 104,591 | 43,568 | (48,287) | 1,778,908 |
|---|
| Raw materials and energy consumption for production | (265,653) | (57,663) | (326,257) | (303,811) | (170,073) | (8,240) | (68,377) | (33,445) | 48,623 | (1,184,896) |
|---|
| Other operating income | 5,089 | 296 | 34,142 | 48,828 | 16,924 | 278 | 485 | 49,901 | (45,858) | 110,085 |
|---|
| Staff costs | (51,163) | (31,300) | (33,696) | (77,608) | (42,679) | (1,542) | (11,726) | (31,203) | — | (280,917) |
|---|
| Other operating expense | (22,222) | (20,848) | (105,290) | (105,712) | (23,043) | (1,904) | (11,352) | (51,960) | 45,522 | (296,809) |
|---|
| Depreciation and amortization charges | (40,489) | (15,281) | (18,634) | (7,330) | (9,522) | (546) | (4,535) | (991) | — | (97,328) |
|---|
| Impairment (loss) gain | — | — | (376) | 14 | (455) | 288 | 2,396 | (1,730) | — | 137 |
|---|
| Other (loss) gain | (347) | 741 | — | 733 | 295 | — | — | 784 | — | 2,206 |
|---|
| Operating (loss) profit | (4,676) | 30,644 | 26,176 | (7,353) | (750) | 938 | 11,482 | (25,013) | — | 31,386 |
|---|
