The Group has 187 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 2018
	ADE £m	AGI £m	Central costs and eliminations £m	Consolidated £m
Revenue
Total revenue	142.7	225.3	–	368.0
Result
Headline operating profit prior to share-based payments and unallocated central costs	33.8	45.0	–	78.8
Share-based payments (including social charges)	(0.5)	(1.8)	(0.4)	(2.7)
Unallocated central costs	–	–	(6.0)	(6.0)
Headline operating profit/(loss)	33.3	43.2	(6.4)	70.1
Amortisation of acquired intangible fixed assets	(0.4)	(1.5)	–	(1.9)
Segment result	32.9	41.7	(6.4)	68.2
Investment revenue				0.1
Finance costs				(1.1)
Profit before taxation				67.2
Taxation				(16.4)
Profit for the period				50.8

Inter-segment sales are not material.

The Group does not rely on any individual major customers.

Aerospace, Defence & Energy	Half year to 30 June 2018
	Western Europe £m	North America £m	Emerging markets £m	Total ADE £m
Revenue
Total revenue	69.3	72.9	0.5	142.7
Result
Headline operating profit prior to share-based payments	16.9	17.1	(0.2)	33.8
Share-based payments (including social charges)	(0.1)	(0.4)	–	(0.5)
Headline operating profit/(loss)	16.8	16.7	(0.2)	33.3
Amortisation of acquired intangible fixed assets	0.2	(0.6)	–	(0.4)
Segment result	17.0	16.1	(0.2)	32.9

Automotive & General Industrial	Half year to 30 June 2018
	Western Europe £m	North America £m	Emerging markets £m	Total AGI £m
Revenue
Total revenue	142.3	52.4	30.6	225.3
Result
Headline operating profit prior to share-based payments	31.5	5.5	8.0	45.0
Share-based payments (including social charges)	(1.3)	(0.3)	(0.2)	(1.8)
Headline operating profit	30.2	5.2	7.8	43.2
Amortisation of acquired intangible fixed assets	(0.3)	(1.2)	–	(1.5)
Segment result	29.9	4.0	7.8	41.7

Group	Half year to 30 June 2017
	ADE £m	AGI £m	Central costs and eliminations £m	Consolidated £m
Revenue
Total revenue	136.1	209.6	–	345.7
Result
Headline operating profit prior to share-based payments and unallocated central costs	31.6	38.6	–	70.2
Share-based payments (including social charges)	(0.9)	(1.7)	(0.7)	(3.3)
Unallocated central costs	–	–	(5.2)	(5.2)
Headline operating profit/(loss)	30.7	36.9	(5.9)	61.7
Amortisation of acquired intangible fixed assets	(0.8)	(1.5)	–	(2.3)
Segment result	29.9	35.4	(5.9)	59.4
Finance costs				(1.2)
Profit before taxation				58.2
Taxation				(14.6)
Profit for the period				43.6

Aerospace, Defence & Energy	Half year to 30 June 2017
	Western Europe £m	North America £m	Emerging markets £m	Total ADE £m
Revenue
Total revenue	61.8	73.6	0.7	136.1
Result
Headline operating profit prior to share-based payments	13.4	18.0	0.2	31.6
Share-based payments (including social charges)	(0.4)	(0.5)	–	(0.9)
Headline operating profit	13.0	17.5	0.2	30.7
Amortisation of acquired intangible fixed assets	(0.2)	(0.6)	–	(0.8)
Segment result	12.8	16.9	0.2	29.9

Automotive & General Industrial	Half year to 30 June 2017
	Western Europe £m	North America £m	Emerging markets £m	Total AGI £m
Revenue
Total revenue	129.6	54.7	25.3	209.6
Result
Headline operating profit prior to share-based payments	25.1	6.4	7.1	38.6
Share-based payments (including social charges)	(1.2)	(0.3)	(0.2)	(1.7)
Headline operating profit	23.9	6.1	6.9	36.9
Amortisation of acquired intangible fixed assets	(0.2)	(1.3)	–	(1.5)
Segment result	23.7	4.8	6.9	35.4

Group	Year ended 31 December 2017
	ADE £m	AGI £m	Central costs and eliminations £m	Consolidated £m
Revenue
Total revenue	273.1	417.1	–	690.2
Result
Headline operating profit prior to share-based payments and unallocated central costs	65.6	77.3	–	142.9
Share-based payments (including social charges)	(1.4)	(3.1)	(4.6)	(9.1)
Unallocated central costs	–	–	(9.9)	(9.9)
Headline operating profit/(loss)	64.2	74.2	(14.5)	123.9
Amortisation of acquired intangible fixed assets	(1.5)	(3.0)	–	(4.5)
Segment result	62.7	71.2	(14.5)	119.4
Investment revenue				0.1
Finance costs				(2.5)
Profit before taxation				117.0
Taxation				(19.7)
Profit for the year				97.3

Aerospace, Defence & Energy	Year ended 31 December 2017
	Western Europe £m	North America £m	Emerging markets £m	Total ADE £m
Revenue
Total revenue	126.0	145.7	1.4	273.1
Result
Headline operating profit prior to share-based payments	30.7	34.7	0.2	65.6
Share-based payments (including social charges)	(0.5)	(0.9)	–	(1.4)
Headline operating profit	30.2	33.8	0.2	64.2
Amortisation of acquired intangible fixed assets	(0.3)	(1.2)	–	(1.5)
Segment result	29.9	32.6	0.2	62.7

Automotive & General Industrial	Year ended 31 December 2017
	Western Europe £m	North America £m	Emerging markets £m	Total AGI £m
Revenue
Total revenue	258.9	105.5	52.7	417.1
Result
Headline operating profit prior to share-based payments	51.2	11.6	14.5	77.3
Share-based payments (including social charges)	(2.4)	(0.4)	(0.3)	(3.1)
Headline operating profit	48.8	11.2	14.2	74.2
Amortisation of acquired intangible fixed assets	(0.4)	(2.6)	–	(3.0)
Segment result	48.4	8.6	14.2	71.2