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Notes to the Financial Statements
Washington H. Soul Pattinson and Company Limited
Annual Report 2016
62
Group Structure and Performance
3
NOTE 3
SEGMENT INFORMATION – HOW THE GROUP IS ORGANISED AND MANAGED
How the Group is organised – Corporate structure
The Parent company invests in a diversified range of companies. Larger holdings in a single entity are
classified as follows:
Controlled entities:
(subsidiaries)
The Parent company is able to control the activities
of the organisation.
Associates:
The Parent company has significant influence but
does not control the activities of the organisation.
No controlled entities were acquired or disposed of during the year ended 31 July 2016.
A subsidiary, New Hope Corporation Limited, acquired a 40% interest in the Bengalla coal mine, which is a jointly
controlled operation. Refer to note 6 for details of this acquisition.
For changes in ownership of Associates, refer note 10.
How the Group is managed – Segment reporting
The Parent company, its subsidiaries and associates operate within five segments. Segments are based on product
and service type and are predominately based in Australia.
The level of ownership determines the extent to which the Parent company is able to manage the underlying
operations of its investment. The Group is managed by operating segment.
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker. The Chief Operating Decision Maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board.
As the Chief Operating Decision Maker is not regularly provided with the operating results from the listed
associates (material contributors to reported profit) these associates are included within the Investing activities
segment except for Syndicated Metals Limited, which is included within the Copper and Gold operations
segment. Results for listed associates are sourced from publicly available information. Unlisted associates are
considered not to be material contributors to the Group. These have been included within the segment as
disclosed in the diagram on the following page:
The Group’s operating segments are described as:
Investing activities
The Group invests in cash, term deposits, and equity investments.
Energy
The Group engages in coal, oil and gas activities which include exploration, development, production,
processing, associated transport infrastructure and ancillary activities.
Copper and Gold operations
The Group engages in copper and gold mining activities which includes exploration, mining and processing
of ore into copper concentrate, copper sulphide and gold.
Corporate advisory
The Group provides corporate advisory services.
Property
The Group engages in property investment activities including the identification and management of real
estate to be held, sold or developed to earn rental income or capital appreciation, or both.