Altech Annual Report 2005


									Corporate
			Telecom-		Multi-Media and		Information		and
	Consolidated		munications		Electronics		Technology		eliminations
	2005	2004	2005	2004	2005	2004	2005	2004	2005	2004
	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm
BUSINESS SEGMENTATION
Revenue
Goods sold	8 065	6 693	1 799	1 543	3 587	3 474	2 655	1 720	24	(44)
Services rendered	4 101	3 291	2 908	2 211	66	2	1 156	1 102	(29)	(24)
Rental finance income	40	61	—	—	4	4	23	26	13	31
Inter-segment revenue	—	—	6	2	66	124	1	—	(73)	(126)

Total segment revenue	12 206	10 045	4 713	3 756	3 723	3 604	3 835	2 848	(65)	(163)
Expenditure	(11 047)	(9 198)	(4 322)	(3 469)	(3 420)	(3 315)	(3 381)	(2 599)	76	185
Depreciation	(191)	(129)	(35)	(34)	(76)	(60)	(77)	(33)	(3)	(2)

Segment operating income	968	718	356	253	227	229	377	216	8	20
Investment income	100	145	38	32	7	19	8	5	47	89
Finance costs	(62)	(26)	(4)	—	(11)	(13)	(16)	(25)	(31)	12
Income from associates	24	9	12	—	1	—	8	6	3	3

Income before goodwill amortised/impaired, capital items and taxation	1 030	846	402	285	224	235	377	202	27	124

GEOGRAPHIC SEGMENTATION
Revenue by market	12 206	10 045	4 713	3 756	3 723	3 604	3 835	2 848	(65)	(163)
South Africa	9 982	8 390	4 228	3 467	2 897	2 941	2 922	2 145	(65)	(163)
Rest of Africa	641	292	54	24	245	197	342	71	—	—
Europe	1 242	1 021	371	236	300	153	571	632	—	—
Rest of world	341	342	60	29	281	313	—	—	—	—

Segment operating income by location	968	718	356	253	227	229	377	216	8	20
South Africa	934	727	343	265	216	222	367	220	8	20
Rest of Africa	27	15	1	2	17	12	9	1	—	—
Europe	7	(26)	12	(13)	(6)	(8)	1	(5)	—	—
Rest of world	—	2	—	(1)	—	3	—	—	—	—

Segment revenue and expenses Revenues and expenses that are directly attributable to segments are allocated to those segments. Those that are not directly attributable to segments are allocated on a reasonable basis. Segment operating income is stated before goodwill amortisation/impairment and capital items. Inter-segment transfers Segment revenue, segment expenses and segment results include transfers between business segments and between geographical segments. These transfers occur at market prices and are eliminated on consolidation.

SEGMENT INFORMATION – BALANCE SHEET
									Corporate
			Telecom-		Multi-Media and		Information		and
	Consolidated		munications		Electronics		Technology		eliminations
	2005	2004	2005	2004	2005	2004	2005	2004	2005	2004
	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm
BUSINESS SEGMENTATION ASSETS
Property, plant and equipment	847	671	129	137	455	422	238	100	25	12
Goodwill and intangible assets	831	462	145	6	—	2	639	431	47	23
Associates and other investments	423	183	296	22	15	75	36	27	76	59
Rental finance advances	106	189	—	—	—	—	—	—	106	189
Inventories	1 158	905	187	187	742	642	231	79	(2)	(3)
Trade and other receivables	1 779	1 542	444	332	611	608	656	453	68	149
Operating assets	5 144	3 952	1 201	684	1 823	1 749	1 800	1 090	320	429
Deferred tax assets	114	113
Cash and cash equivalents	1 520	2 004
Total assets per balance sheet	6 778	6 069

LIABILITIES
Trade and other payables	2 207	1 674	914	601	470	522	820	390	3	161
Provisions	97	153	14	60	40	62	41	23	2	8
Non-interest bearing liabilities	2 304	1 827	928	661	510	584	861	413	5	169
Long-term liabilities	661	277
Short-term loans	30	247
Taxation payable	164	116
Deferred tax liabilities	53	31
Total liabilities per balance sheet	3 212	2 498

GEOGRAPHIC SEGMENTATION
Operating assets	5 144	3 952	1 201	684	1 823	1 749	1 800	1 090	320	429
South Africa	4 245	3 126	538	494	1 691	1 645	1 696	558	320	429
Rest of Africa	33	31	—	—	—	15	33	16	—	—
Europe	829	795	663	190	95	89	71	516	—	—
Rest of world	37	—	—	—	37	—	—	—	—	—
Non-interest bearing liabilities	2 304	1 827	928	661	510	584	861	413	5	169
South Africa	1 911	1 512	718	511	432	562	756	270	5	169
Rest of Africa	24	14	—	—	—	2	24	12	—	—
Europe	324	301	210	150	33	20	81	131	—	—
Rest of world	45	—	—	—	45	—	—	—	—	—
Capital expenditure	333	221	26	20	113	124	172	75	22	2
South Africa	312	210	23	19	100	118	167	71	22	2
Rest of Africa	2	1	1	—	—	—	1	1	—	—
Europe	11	10	2	1	5	6	4	3	—	—
Rest of world	8	—	—	—	8	—	—	—	—	—

Segment assets and liabilities Segment assets include all operating assets used by a segment and consist principally of operating receivables, inventories, investments and fixed assets, net of related allowances and provisions. While most such assets can be directly attributable to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. Segment liabilities include all operating liabilities, and consist principally of accounts, accruals and provisions.

Segment revenue and expenses

Inter-segment transfers

SEGMENT INFORMATION – BALANCE SHEET

BUSINESS SEGMENTATION ASSETS

LIABILITIES

GEOGRAPHIC SEGMENTATION

Segment assets and liabilities

BUSINESS SEGMENTATION
ASSETS