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Summary consolidated annual financial statements
Group segmental
analysis
SEGMENT INFORMATION
Operating segments reflect the management structure of the group for the period under review and the manner in which performance
is evaluated and resources allocated as managed by the group’s chief operating decision maker, defined as the executive committee
members (exco) of the group.
These operating segments for the year under review are defined as:
Operating segment
Revenue source
Investments and
Concessions
Equipment supply, operations and maintenance revenue in concession contract
developments in the transport sector
Rental and development sales of A-grade property assets generating development and
investment returns
Engineering
& Construction
Multi-disciplinary project delivery from feasibility through to supporting bankability and
front-end design, as well as project management of contracts during execution to
completion, with a focus on the energy sector, including power plant construction and
nuclear construction services
Industrial services contractor
Manufacturing
Manufacture and sale of fibre cement products – exterior and interior walling, ceiling boards,
roof tiles and pipes, fibre cement-clad, steel-framed modular housing systems
Manufacture and sale of steel products, including scaffolding, formwork and steel reinforcing
for use in concrete structures, fabricated steel structures and large bore steel pipes
Construction
Building and housing contractor for large real estate and related infrastructure contracts
Civil engineering contractor for roads, ports, airports, pipelines and large structures in the
mining and industrial sectors
Engineering projects contractor for structural, mechanical, piping and electrical engineering,
as well as complete plant construction solutions
Building and Housing
Civil Engineering
Projects
The group is focused by discipline and each discipline is led by an executive committee member.
The role of exco is to drive the strategic intent of the group per segment. The executive committee members meet monthly to review
the group’s performance. Of primary focus to exco is the revenue, operating profit, capital expenditure and current assets per segment.
Exco assesses the performance of the operating segments based on a measure of adjusted operating profit. This measurement basis
excludes the effects of non-operational income and expenditure from the operating segments such as pension fund surpluses, profit/
loss on sale or impairment of subsidiaries, re-measurement of employment obligations and share option cost on the Izakhiwo Imfundo
Bursary Trust which is not controlled by the group. Gains or losses on disposal of property, plant and equipment as well as investment
property and fair value adjustments on service concessions, investment in property development and investment property are not
adjusted as these are deemed to be in the segments’ core operational control. The operating profit does not include any impairment
adjustments. As exco reviews operating profit, the results of discontinued operations are not included in the measure of operating profit.
Management do not believe that there are any additional segments that require separate reporting. The reportable operating segments
derive their revenue as described above. The group is also considered by geographical segment due to the extensive geographic
footprint maintained by the group. The geographies are grouped into regions for reporting purposes as the group moves towards
establishing operational hubs for management of regions.
FOR THE YEAR ENDED 30 JUNE 2014