THE PERFORMANCE
SEGMENTAL INFORMATION
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 Management)
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. Molemi Sele holds investments in agricultural
companies, an index tracker fund and a cell captive.
NET SEGMENTAL ASSETS
GROUP
2019
R’m
2019
R’m 3 800 3 405 (2 044) (1 948)
1 159 1 217 (786) ( 852)
ASSETS
Input Supply
(Senwes Equipment, JD Implemente, Staalmeester,
Senwes Equip Holdings, Hinterland group and
Bastion Lime group) Sales at retail outlets, direct sales of farming input requirements, the importation, manufacturing and
sale of mechanisation goods and spare parts, as well as the servicing of such farming and other
mechanisation equipment. Wholesale of agricultural and industrial retail products to agricultural retail
outlets. Financial Services
Market Access
(Senwes Grainlink, Tradevantage, Senwes Graan-
makelaars, Grainovation and ESC) Income received from the handling and storage of agricultural produce, the transportation of grain
commodities as well as the processing of seed. Commission earned on marketing of grain and
revenue from the sale of grain. Electronic issuing and trading of silo certificates. Corporate
Corporate
(Senwes Share Incentive Scheme Trust, Thobo Trust,
Senwes Capital, Senwes Agrowth and Nautilus
Hedge Fund) Head office services, information technology, human resources, properties, 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 governance. Total
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 re-
sults 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
Input Supply *
Market Access
Total operations
Total segmental assets/(liabilities)
Deferred tax
LIABILITIES
865 1 318
5 824 5 940
6 036 6 099
6 060 6 130
212
24
159
31
2019
R’m
2018
R’m
2019
R’m
SEGMENTAL
REVENUE
Financial Services (Senwes Credit, Senwes Asset Finance, Certisure group and Molemi Sele)
Income from financing clients and service level agreement income
AgriRewards
Finance costs
Profit from joint ventures
Input Supply ((Senwes Equipment, JD Implemente, Staalmeester, Hinterland Group and
Bastion Lime Group)
Income/(loss) from sale of goods and services rendered
Intragroup sales
Finance costs
Profit/(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 and other corporate fees
Interest income from joint ventures
Finance costs
Corporate costs
Total revenue
Profit before tax
321
(1) (3)
349 324
- -
1 485 1 598
(113)
-
-
758
3 003
(16)
286
(133) (132)
1 425 30 (59)
1 548
(123)
-
-
942 82
-
(40)
(12)
300 (1)
-
(36)
(22)
412
-
4 636
(25)
(3 669)
-
2 591
96
66
30
-
-
2 687 -
2 688
104
73
31
-
-
2 792
-
(1)
10
(32) (46)
8
498
(100)
15
32
( 8)
(139)
(115)
Profit after tax
283
(3 902)
(3 697) (3 951)
(217)
(49)
2 446 2 255
2 446 2 197
2 363 2 179
2019
R’m 2018
R’m
-
(83)
365
( 58)
(18)
2018
R’m
Corporate
-
(30)
2018
R’m
NON-CASH TRANS-
ACTIONS*
DEPRECIATION
-
(23)
(144) (83)
(210) (141)
(36)
2019
R’m
(35)
-
(7)
-
(6)
(30) (20)
(55) (42)
(18)
(16)
(15)
5
3
(57)
(11) (4)
(21) (61)
-
(3)
* Non-cash transactions consist of provisions made.
9
475
-
(3 590) 433
373
(3)
340
(16)
398
Taxation
160
292 (2 229)
-
168
Market Access
Total
SEGMENTAL
PROFIT/(LOSS)
348
-
Input Supply
2018
R’m
(3 685)
1 457
317
GROUP
Financial Services
2019
R’m
(3 378)
1 756
SEGMENTAL DISCLOSABLE ITEMS
CAPITAL
EXPENDITURE
GROUP
( 885)
(107)
2018
R’m
NET
(548)
(212)
2019
R’m
* Assets include the net investment in Hinterland joint venture of R98 million (2018: R146 million).
SEGMENTAL REVENUE AND RESULTS
Senwes group operates in South Africa only.
2018
R’m
(25)
-
8
513
(81)
12
31
(9)
(115)
432
(121)
311
* More than 10% of revenue from services rendered was derived from two business partners which amounted to R302 million (2018: R413 million).
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SENWES INTEGRATED REPORT 2019
SENWES INTEGRATED REPORT 2019
69