Unaudited condensed consolidated interim financial statements and cash dividend declaration for the six months ended 31 March 2021

Condensed segmental analysis

For the six months ended 31 March 2021
Rm Six months ended 31 March %
change
Year ended
30 September
2020
Audited
%
of total
2021
Unaudited
%
of total
2020  
Unaudited1
%
of total
Revenue2
             
Electrical Engineering (EE) 2 561 54 1 738 41 47 3 767 46
Information Communication Technologies (ICT) 1 253 26 1 494 35 (16)
2 524  30
Applied Electronics (AE) 945 20 1 038 24 (9) 1 951 24
Other 7   – (15) 147 17 
Total segment revenue              
Equity-accounted joint venture in 4 766 100 4 255 100 12 8 259 100
EE Segment (133)   (92)     (179)  
Equity-accounted associate in ICT          
Segment (14)   (16)     (28)  
Equity-accounted joint ventures          
and associates in AE Segment (2)        
Equity-accounted joint venture in          
Other Segment (3)   (3)     (6)  
Revenue as reported in the statement of profit or loss
4 614   4 144   11 8 046  
Operating profit
             
EE 165 37 (34) (9) 585 31   4
ICT3 293 65 384 98 (24) 604 69
AE 32 7 92 24 (65) 269 31
Other (42) (9) (50) (13) 16 (33) (4)
Total operations
448 100 392 100 14 87 100
Operating loss from equity-accounted          
joint venture in EE Segment 1   21     30  
Operating profit from equity-          
accounted associate in ICT Segment (1)   (1)     (3)  
Operating profit from equity-          
accounted joint ventures and          
associates in AE Segment (1)        
Operating profit from equity-          
accounted joint venture in          
Other Segment (3)   (2)     (5)  
Operating profit before credit write-off and expected credit losses
444   410   8 893  
Expected credit losses and credit write-off in EE Segment (13)   (21)     (26)  
Expected credit losses and credit write-off in ICT Segment (3)   (529)     (541)  
Expected credit losses in AE Segment 8   (15)     (19)  
Operating profit as reported in the statement of profit or loss
436   (155)   381 307  
1 The comparative period information has been re-presented to align with the presentation in the 2020 annual financial statements.
2 Inter-segment revenue has been eliminated; however, it is immaterial and has not been separately disclosed.
3 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 Rnil (March 2020: R84 million) (September 2020: R134 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.

Impact of re-presentation

The reason for the re-presentation is to highlight the impact of the credit write-offs and expected credit losses on the results for the six months ended 31 March 2020 and to align the disclosure with those in the 2020 annual financial statements. This has resulted in additional disclosure for 2020 in order to reflect the comparative.

March 2020
Rm
Total segment
operating profit as
previously reported
Expected credit
losses previously
incorporated in
operating profit
Operating profit for
total operations
as now reported
EE (42) 8 (34)
ICT 371 13 384
AE 77 15 92
Other (50) (50)
  356 36 392

Rm Six months ended 31 March Year ended
30 September
2020
Audited
%
of total
  2021
Unaudited
%
of total
2020
Unaudited
%
of total
Total assets
           
EE 2 587 26 2 560 25 2 420 25
ICT 4 357 44 4 680 46 4 328 44
AE 2 611 27 2 590 26 2 500 26
Other 347 3 300 3 478 5
Total assets as reported in the statement of financial position1
9 902 100 10 130 100 9 726 100
Total liabilities
           
EE 1 152 34 1 149 31 1 007 32
ICT 1 039 31 1 224 33 1 037 32
AE 761 23 1 072 29 8452 27
Other 418 12 263 7 2942 9
Total liabilities as reported in the statement of financial position1
3 370 100 3 708 100 3 183 100

1 Inter-company receivables, payables and loans have been eliminated in line with the consolidation principles of IFRS.
2 An amount of R52 million has been reclassified from the Other to the AE Segment.