The Group has 181 locations across the world serving a range of market sectors with various thermal processing services. The range and type of services offered is common to all market sectors.

In accordance with IFRS 8 Operating Segments, the segmentation of Group activity reflects the way the Group is managed by the chief operating decision maker, being the Group Chief Executive, who on a monthly basis reviews the operating performance of six operating segments, split between the Aerospace, Defence & Energy (ADE) and Automotive & General Industrial (AGI) business areas, as follows:

• ADE – Western Europe;
• ADE – North America;
• ADE – Emerging markets;
• AGI – Western Europe;
• AGI – North America; and
• AGI – Emerging markets.

The split of operating segments by geography reflects the divisional reporting structure of the Group.

In accordance with the aggregation criteria of IFRS 8, the operating segments are aggregated into the Group's two key business areas, ADE and AGI, the split being driven by customer behaviour and requirements. Customers in the ADE segment tend to operate and purchase more globally and have long supply chains, whilst customers in the AGI segment tend to purchase more locally and have shorter supply chains.

Bodycote plants do not exclusively supply services to customers of a given market sector. The allocation of plants between ADE and AGI is therefore derived by reference to the preponderance of markets served.

Group	Half year to 30 June 2016
	ADE £m	AGI £m	Central costs and eliminations £m	Consolidated £m
Revenue
Total revenue	121.9	169.1	–	291.0
Result
Headline operating profit prior to share-based payments and unallocated central costs	27.9	28.6	–	56.5
Share-based payments (including social charges)	(0.5)	(0.7)	(0.5)	(1.7)
Unallocated central costs	–	–	(5.5)	(5.5)
Headline operating profit / (loss)	27.4	27.9	(6.0)	49.3
Amortisation of acquired intangible fixed assets	(0.8)	(1.4)	–	(2.2)
Segment result	26.6	26.5	(6.0)	47.1
Investment revenue				0.1
Finance costs				(1.3)
Profit before taxation				45.9
Taxation				(12.6)
Profit for the period				33.3

Inter-segment sales are not material.

The Group does not rely on any individual major customers.

Aerospace, Defence & Energy	Half year to 30 June 2016
	Western Europe £m	North America £m	Emerging markets £m	Total ADE £m
Revenue
Total revenue	55.9	65.5	0.5	121.9
Result
Headline operating profit / (loss) prior to share-based payments	11.5	16.6	(0.2)	27.9
Share-based payments (including social charges)	(0.2)	(0.3)	–	(0.5)
Headline operating profit / (loss)	11.3	16.3	(0.2)	27.4
Amortisation of acquired intangible fixed assets	(0.1)	(0.7)	–	(0.8)
Segment result	11.2	15.6	(0.2)	26.6

Automotive & General Industrial	Half year to 30 June 2016
	Western Europe £m	North America £m	Emerging markets £m	Total AGI £m
Revenue
Total revenue	104.4	45.6	19.1	169.1
Result
Headline operating profit prior to share-based payments	17.3	6.7	4.6	28.6
Share-based payments (including social charges)	(0.5)	(0.1)	(0.1)	(0.7)
Headline operating profit	16.8	6.6	4.5	27.9
Amortisation of acquired intangible fixed assets	(0.1)	(1.3)	–	(1.4)
Segment result	16.7	5.3	4.5	26.5

Group	Half year to 30 June 2015
	ADE £m	AGI £m	Central costs and eliminations £m	Consolidated £m
Revenue
Total revenue	128.8	171.0	–	299.8
Result
Headline operating profit prior to share-based payments and unallocated central costs	31.6	28.1	–	59.7
Share-based payments (including social charges)	(0.1)	(0.5)	(0.3)	(0.9)
Unallocated central costs	–	–	(4.7)	(4.7)
Headline operating profit / (loss)	31.5	27.6	(5.0)	54.1
Amortisation of acquired intangible fixed assets	(0.7)	(1.4)	–	(2.1)
Operating profit / (loss) prior to exceptional items	30.8	26.2	(5.0)	52.0
Reorganisation costs	(0.7)	(19.2)	–	(19.9)
Segment result	30.1	7.0	(5.0)	32.1
Investment revenue				0.1
Finance costs				(1.6)
Profit before taxation				30.6
Taxation				(10.4)
Profit for the period				20.2

Aerospace, Defence & Energy	Half year to 30 June 2015
	Western Europe £m	North America £m	Emerging markets £m	Total ADE £m
Revenue
Total revenue	58.5	69.2	1.1	128.8
Result
Headline operating profit prior to share-based payments	12.3	19.2	0.1	31.6
Share-based payments (including social charges)	–	(0.1)	–	(0.1)
Headline operating profit	12.3	19.1	0.1	31.5
Amortisation of acquired intangible fixed assets	(0.1)	(0.6)	–	(0.7)
Reorganisation costs	(0.4)	(0.3)	–	(0.7)
Segment result	11.8	18.2	0.1	30.1

Automotive & General Industrial	Half year to 30 June 2015
	Western Europe £m	North America £m	Emerging markets £m	Total AGI £m
Revenue
Total revenue	104.0	46.3	20.7	171.0
Result
Headline operating profit prior to share-based payments	18.7	8.6	0.8	28.1
Share-based payments (including social charges)	(0.4)	(0.1)	–	(0.5)
Headline operating profit	18.3	8.5	0.8	27.6
Amortisation of acquired intangible fixed assets	(0.1)	(1.2)	(0.1)	(1.4)
Reorganisation costs	(6.5)	(0.3)	(12.4)	(19.2)
Segment result	11.7	7.0	(11.7)	7.0

Group	Year ended 31 December 2015
	ADE £m	AGI £m	Central costs and eliminations £m	Consolidated £m
Revenue
Total revenue	243.5	323.7	–	567.2
Result
Headline operating profit prior to share-based payments and unallocated central costs	59.1	53.7	–	112.8
Share-based payments (including social charges)	0.1	(0.3)	0.8	0.6
Unallocated central costs	–	–	(11.3)	(11.3)
Headline operating profit / (loss)	59.2	53.4	(10.5)	102.1
Amortisation of acquired intangible fixed assets	(1.4)	(2.8)	–	(4.2)
Operating profit / (loss) prior to exceptional items	57.8	50.6	(10.5)	97.9
Reorganisation costs	(5.1)	(14.9)	–	(20.0)
Segment result	52.7	35.7	(10.5)	77.9
Investment revenue				0.1
Finance costs				(3.0)
Profit before taxation				75.0
Taxation				(18.8)
Profit for the year				56.2

Aerospace, Defence & Energy	Year ended 31 December 2015
	Western Europe £m	North America £m	Emerging markets £m	Total ADE £m
Revenue
Total revenue	111.2	130.3	2.0	243.5
Result
Headline operating profit prior to share-based payments	23.4	35.6	0.1	59.1
Share-based payments (including social charges)	(0.1)	0.2	–	0.1
Headline operating profit	23.3	35.8	0.1	59.2
Amortisation of acquired intangible fixed assets	(0.3)	(1.1)	–	(1.4)
Operating profit prior to exceptional items	23.0	34.7	0.1	57.8
Reorganisation costs	(3.3)	(1.8)	–	(5.1)
Segment result	19.7	32.9	0.1	52.7

Automotive & General Industrial	Year ended 31 December 2015
	Western Europe £m	North America £m	Emerging markets £m	Total AGI £m
Revenue
Total revenue	195.9	89.3	38.5	323.7
Result
Headline operating profit prior to share-based payments	34.1	16.3	3.3	53.7
Share-based payments (including social charges)	(0.3)	0.1	(0.1)	(0.3)
Headline operating profit	33.8	16.4	3.2	53.4
Amortisation of acquired intangible fixed assets	(0.2)	(2.4)	(0.2)	(2.8)
Operating profit prior to exceptional items	33.6	14.0	3.0	50.6
Reorganisation costs	(8.0)	(1.6)	(5.3)	(14.9)
Segment result	25.6	12.4	(2.3)	35.7