Segmental analysis  
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BUSINESS AND GEOGRAPHIC SEGMENTS
Business segments

The group is currently organised into four segments:

CBI-electric comprising CBI-electric: low voltage, CBI-electric: energy cables and CBI-electric: telecom cables, Nashua comprising Nashua Office Automation, Nashua Mobile, Nashua Electronics and RCCF (refer to note 34), NSN and Reutech comprising Reutech Precision Products, Reutech Communications, Reutech Solutions and Reutech Radar Systems.

The group overview on pages 6 to 8 gives details of the activities of each division.

These divisions are the basis on which the group reports its primary business segments. Segment information about these businesses is presented below.

The group’s operations are situated mostly in South Africa, with minor operations situated in Australia, Germany and the United States of America. It is, therefore, not considered meaningful to disclose information on geographic segments according to location of operation.

REVENUE INCLUDING ASSOCIATE COMPANIES*
 
    2008      2007     
      Rm  %     Rm  change   
CBI-electric**     3 951,9  36    3 315,1  29  19   
Nashua     6 445,2  58    5 816,3  52  11   
NSN***     —  —    1 712,9  15     
Reutech     622,3    490,5  27   
Total operations     11 019,4  100    11 334,8  100  (3)  
Less: Reunert’s attributable portion of associate companies’ revenue     (98,3)     (1 760,4)      
Revenue as reported per the income statement     10 921,1      9 574,4    14   
 
*   Intersegment revenue is immaterial and has not been disclosed.
**   2007 revenue includes an amount of R96,3 million for inventory sold at book value by ATC (Pty) Limited to CBI-Electric Aberdare ATC Telecom Cables (Pty) Limited.
***   Revenue excludes commission received attributable to the investment in NSN (refer to note 2). Revenue of NSN in 2008 is not included due to the change in accounting treatment of the investment in NSN (refer to note 15).
 
OPERATING PROFIT INCLUDING ASSOCIATE COMPANIES
 
    2008      2007     
      Rm    Rm  change   
CBI-electric     675,3  42    553,9  36  22   
Nashua     652,8  41    674,7  44  (3)  
NSN*     139,0    211,2  13  (34)  
Reutech     136,9    109,2  25   
Total operations     1 604,0  100    1 549,0  100   
Less: Reunert’s attributable portion of associate companies’ net operating profit     (31,4)     (230,3)      
Operating profit as reported in the income statement     1 572,6     1 318,7    19   
 
*   Operating profit in 2008 represents commission received, whereas the 2007 figure represents 40% of the NSN operating profit (refer to notes 2, 14 and 15).
 
   
TOTAL ASSETS* (INCLUDING ASSOCIATE COMPANIES)            
    2008    2007   
      Rm    Rm   
CBI-electric     2 187,2    1 690,3   
Nashua     4 266,6    3 231,6   
NSN**     —    538,7   
Reutech     313,2    259,2   
Total operations     6 767,0    5 719,8   
Less: Reunert’s attributable portion of associate companies’ assets     —    (1 409,2)  
Total assets* as reported per the balance sheet     6 767,0    4 310,6   
 
*   Total assets exclude deferred taxation assets, cash and cash equivalents and RCCF bank balances and cash.
**   NSN not included due to the change in accounting treatment (refer to note 15).
 
 
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