Segmental analysis

BUSINESS AND GEOGRAPHIC SEGMENTS

Business segments

For management purposes, the group is currently organised into two operating divisions: Electrical engineering (Circuit Breaker Industries, ATC and African Cables) and Electronics comprising of Office systems (Nashua Office Automation, Nashua Kopano and RC&C Finance Company), Consumer products and services (Nashua Mobile, RC&C Holdings and Saco Systems), Telecommunications (Siemens Telecommunications and Acuo Technologies) and Reutech (Fuchs Electronics, RDI Communications, RDL Technologies and Reutech Radar Systems). The group overview on pages 8 to 15 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 only immaterial operations situated in the United Kingdom, Germany, the United States of America and Australia. It is therefore not considered meaningful to disclose information on geographic segments according to location of operation.

REVENUE INCLUDING ASSOCIATE COMPANIES                  
                %  
Rm 2005   %   2004 %   change  


 
 

 
 
                   
Electrical engineering 1 986,7   25   1 456,7 20   36  


 
 

 
 
                   
Electronics                  
Office systems 981,3   12   1 071,0 15   (8)  
Consumer products and services 3 770,5   47   3 382,7 46   11  
Telecommunications 993,0   12   931,8 13   7  
Reutech 298,4   4   443,0 6   (33)  


 
 

 
 
                   
Total electronics 6 043,2   75   5 828,5 80   4  


 
 

 
 
                   
Total operations 8 029,9   100   7 285,2 100   10  
Less: Reunert's attributable portion of associate                  
companies' revenue (993,0)       (1 037,9)        


 
 

 
 
                   
Revenue as reported per the income statement 7 036,9       6 247,3     13  

OPERATING PROFIT BEFORE GOODWILL AMORTISATION INCLUDING ASSOCIATE COMPANIES

            %  
Rm 2005 % 2004 %   change  





 
 
Electrical engineering 324,0 31 217,1 25   49  





 
 
               
Electronics              
Office systems 256,3 25 226,3 26   13  
Consumer products and services 324,2 31 250,9 29   29  
Telecommunications 131,9 13 130,2 15   1  
Reutech 1,7 48,5 5   (96)  





 
 
               
Total electronics 714,1 69 655,9 75   9  





 
 
               
Total operations 1 038,1 100 873,0 100   19  





 
 
               
Less: Reunert's attributable portion of              
associate companies’ operating profit (132,6)   (119,0)        





 
 
               
Operating profit before amortisation of goodwill              
as reported per the income statement 905,5   754,0     20  





 
 
               
TOTAL ASSETS (EXCLUDING CASH AND CASH EQUIVALENTS AND DEFERRED TAXATION ASSETS) INCLUDING  
ASSOCIATE COMPANIES              
Rm       2005   2004*  





 
 
               
Electrical engineering       823,6   676,0  





 
 
               
Electronics              
Office systems       1 273,0   824,8  
Consumer products and services       962,3   887,4  
Telecommunications       581,6   514,9  
Reutech       69,2   122,4  





 
 
               
Total electronics       2 886,1   2 349,5  





 
 
               
Total operations       3 709,7   3 025,5  
Less: Reunert's attributable portion of associate companies’ assets     (479,9)   (445,5)  





 
 
               
Total assets (excluding cash and cash equivalents and deferred taxation assets) as reported per          
the balance sheet       3 229,8   2 580,0  





 
 
               
*   The comparative information has been amended to take account of the change of accounting policy          
in terms of which existing negative goodwill has been transferred to accumulated profit            
(refer to notes 8 and 12 to the annual financial statements).              
               
TRADE AND OTHER PAYABLES, DERIVATIVE LIABILITIES AND PROVISIONS,          
INCLUDING ASSOCIATE COMPANIES              
Rm       2005   2004**  





 
 
               
Electrical engineering       248,7   250,3  





 
 
               
Electronics              
Office systems       293,5   360,2  
Consumer products and services       803,5   717,6  
Telecommunications       435,1   335,1  
Reutech       97,2   118,0  





 
 
               
Total electronics       1 629,3   1 530,9  





 
 
               
Total operations       1 878,0   1 781,2  
Less: Reunert's attributable portion of associate companies’ liabilities     (434,5)   (378,9)  





 
 
               
Trade and other payables, derivative liabilities and provisions as reported per the balance sheet   1 443,5   1 402,3  
  • The comparative information has been amended to take account of the restatement of provisions (refer to notes 23 and 33 to the annual financial statements).

CAPITAL EXPENDITURE EXCLUDING ASSOCIATE COMPANIES

Rm 2005   2004  


 
 
         
Electrical engineering 34,4   27,1  


 
 
         
Electronics        
Office systems 2,3   5,7  
Consumer products and services 14,5   13,2  
Telecommunications   0,1  
Reutech 3,8   2,7  


 
 
         
Total electronics 20,6   21,7  


 
 
         
Capital expenditure as reported 55,0   48,8  


 
 
         
DEPRECIATION AND IMPAIRMENTS OF PROPERTY, PLANT AND EQUIPMENT AND        
AMORTISATION OF INTANGIBLE ASSETS EXCLUDING ASSOCIATE COMPANIES        
Electrical engineering 35,7   30,5  


 
 
         
Electronics        
Office systems 3,7   4,8  
Consumer products and services 13,1   18,5  
Telecommunications 0,1   0,1  
Reutech 3,7   4,0  


 
 
         
Total electronics 20,6   27,4  


 
 
         
Depreciation and impairments of property, plant and equipment and amortisation of intangible        
assets as reported 56,3   57,9  


 
 
         
NUMBER OF EMPLOYEES EXCLUDING ASSOCIATE COMPANIES        
Electrical engineering 2 680   2 524  


 
 
         
Electronics        
Office systems 413   445  
Consumer products and services 1 588   1 479  
Telecommunications 16   13  
Reutech 623   708  


 
 
         
Total electronics 2 640   2 645  


 
 
         
Number of employees as reported 5 320   5 169  


 
 
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
      29