PROVISIONAL CONDENSED REVIEWED CONSOLIDATED FINANCIAL STATEMENTS and cash dividend declaration for the year ended 30 September 2020

Condensed segmental analysis

For the year ended 30 September 2020

  Reviewed % Restated %  
Rm  2020 of total 2019 of total % change
Revenue1
Electrical Engineering (EE) 3 767 46 5 457 50 (31)
Information Communication Technologies (ICT) 2 524 30 3 236 29 (22)
Applied Electronics (AE) 1 951 24 2 346 21 (17)
Other 17 - 16 - -
Total segment revenue 8 259 100 11 055 100 (25)
Equity-accounted joint venture in EE segment (179) (307)
Equity-accounted associate in ICT segment (28) (29)
Equity-accounted joint venture in Other segment (6) (5)    
Revenue as reported in the statement of profit or loss
8 046 10 714   (25)
Operating profit 
EE 31 4 320 23 (90)
ICT2 604 69 770 56 (22)
AE 269 31 361 26 (25)
Other (33) (4) (71) (5) (54)
Total operations
871 100 1 380 100 (37)
Operating loss from equity-accounted joint venture in EE segment 30 11
Operating profit from equity-accounted associate in ICT segment (3) (4)
Operating profit from equity-accounted joint venture in Other segment (5) (4)  
Operating profit before credit write-off and expected
credit losses
893 1 383 (35)
Expected credit losses in EE segment (26) 3
Expected credit losses and credit write-off in ICT segment (541) (22)
Expected credit losses in AE segment (19) (3)  
Operating profit as reported in the statement of profit or loss
307 1 361 (77)
1 Inter-segment revenue has been eliminated, however it is immaterial and has not been separately disclosed.
2 The net interest charged on Group funding provided to the Group’s in-house finance operation has been eliminated in line with IFRS 10 – Consolidated Financial Statements. The interest eliminated amounted to R134 million (2019: R170 million). Should this operation be externally funded, this would result in a reduction of ICT’s operating profit by the quantum of the external interest paid.

 

  As at 30 September    
  Reviewed  %  Audited  % 
Rm 2 020  of total  2 019  of total 
Total assets 
EE 2 420 25 2 820 27
ICT  4 328 44 4 678 45
AE 2 500 26 2 322 23
Other 478 5 484 5
Total assets as reported in the statement of financial position1
9 726 100 10 304 100
Total liabilities
EE 1 007 32 1 131 39
ICT  1 037 32 748 26
AE 793 25 789 28
Other 346 11 205 7
Total liabilities as reported  in the statement of financial position1
3 183 100 2 873 100
1 Intercompany receivables, payables and loans have been eliminated in line with the consolidation principles of IFRS.

Impact of restatement

The reason for the restatement is to highlight the significant impact of the credit write-offs and expected credit losses on the result for 2020 financial year. This has resulted in additional disclosure for 2019 in order to reflect the comparative.

2019
Rm
Operating profit for
total operations as
previously reported
Expected credit
losses previously
incorporated in
operating profit for
total operations 
Operating profit for
total operations as
reported now
EE 323 (3) 320
ICT  748 22 770
AE 358 3 361
Other (71) (71)
 
1 358 22 1 380