Integrated Reports Senwes Financial Review 2018 - Page 20

20 FINANCIAL REVIEW NOTES TO THE FINANCIAL STATEMENTS 1.2 Segmental revenue and results 1. SEGMENTAL INFORMATION 1.1 Senwes group operates in South Africa only. GROUP For management and control purposes, the group is divided into business units based on their products, services and clients and consists of the following reportable segments: Financial Services (Senwes Credit, Senwes Asset Finance, Certisure group and Molemi Sele) Credit extension to agricultural producers and grain buyers. Senwes Credit also renders agricultural services to its growing client base. Certisure includes commission received on short-term, crop and life insurance premiums and administration fees. Sales at retail outlets, direct sales of farming input requirements and Input Supply (Senwes Equipment, JD Implemente, sales of mechanisation goods and spare parts, as well as the servicing of such farming and other mechanisation equipment. Hinterland group, Grasland Onder- nemings and Nautilus Hedge Fund) Market Access (Senwes Grainlink, Tradevantage, Senwes Graanmakelaars, Grainova- tion and ESC) Income received from the handling and storage of agricultural pro- duce as well as the transportation of grain commodities. Commis- sion earned on the marketing of grain and revenue from the sale of grain. Electronic issuing and trading of silo certificates. Corporate (Senwes Share Incen­tive Trust, Thobo Trust, Senwes Capital and Senwes Agrowth) Head office services, information technology, human re­sour­ces, pro- perties, central administration, fleet manage­ment, secretarial servi­ces, legal services, corporate marke­­ting, risk management, internal audit, strategic develop­ment, group finance, corporate finance, innovation and integration, business engineering and treasury and directors. Income tax is managed on a group basis and is not allocated to operating segments. Services rendered between related parties as reflected in operating segments are on an arm’s length basis in a manner similar to transactions with third parties. The group Executive Committee monitors the operational results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segmental performance is evaluated, based on operating profit or loss, and is measured consistently against operating profit or loss in the consolidated financial statements. 2018 R’m 2017 R’m SEGMENTAL REVENUE Financial Services (Senwes Credit, Senwes Asset Finance, Certisure group and Molemi Sele) Income from financing clients and service level agreement AgriRewards Finance costs Profit from joint ventures Input Supply (Senwes Equipment, JD Implemente, Hinterland group, Grasland Ondernemings and Nauitlus Hedge Fund) Income/(loss) from sale of goods and services rendered Intragroup sales Finance costs Loss from joint ventures Market Access (Senwes Grainlink, Tradevantage, Senwes Graanmakelaars, Grainovation and ESC) Income from commodity trading, sale of goods and services rendered * AgriRewards Intragroup sales Finance costs Profit from joint ventures Normal operational activities Corporate Income from service level agreement Interest income from joint ventures Finance costs Corporate costs Total revenue Profit before tax Tax Profit after tax 2018 R’m 2017 R’m SEGMENTAL PROFIT/(LOSS) 321 309 157 147 324 (3) - - 1 425 309 - - - 1 350 283 (3) (132) 9 (61) 275 - (136) 8 43 1 548 (123) - - 7 690 1 470 (120) - - 8 171 (3) - (36) (22) 384 62 - (14) (5) 85 11 384 12 508 447 133 (25) (3 669) - - 9 436 104 73 31 - - 9 540 (4 337) - - 9 830 97 82 15 - - 9 927 (25) - (46) 8 480 (48) 12 31 (9) (82) - - (51) 3 275 (46) 15 16 (3) (74) 432 (121) 311 229 (62) 167 * There was a single business partner from where more than 10% of revenue from commodity trading was derived which amounted to R1,3 billion. FINANCIAL REVIEW