Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 15

NOTES TO THE FINANCIAL STATEMENTS 1. SEGMENTAL INFORMATION 1.1. 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: INVESTMENT ACTIVITIES (Senwesbel) It is Senwesbel’s strategy to consider interests in other agricultural and agricultural rela- ted businesses. At present Senwesbel owns an interest in Senwes Limited. 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. INPUT SUPPLY (Senwes Equipment, JD Implemente, Hinterland group, Grasland Ondernemings and Nautilus Hedge Fund) Sales at retail outlets, direct sales of farming input requirements and sales of mecha- nisation goods and spare parts as well as the servicing of such farming and other mechanisation equipment. MARKET ACCESS (Senwes Grainlink, Tradevantage, Senwes Graanmakelaars, Grainovation and ESC) Income received from the handling and storage of agricultural produce as well as the transportation of grain commodities. Commission is earned on the marketing of grain and revenue from the sale of grain. ESC issues silo certificates and facilitates the trading thereof. CORPORATE (Senwes Share Incentive Scheme Trust, Thobo Trust, Senwes Capital and Senwes Agrowth) Head office services, information technology, human resources, properties, central ad- ministration, fleet management, secretarial services, legal services, corporate marketing, risk management, internal audit, strategic development, group finance, corporate fi- nance innovation and integration, 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. Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2018 14