The Group’s segment reporting follows the organisational structure as reflected in its internal management reporting systems, which are the basis for assessing the financial performance of the business segments and for allocating resources to these segments. Management’s assessment of the Group’s organisational structure takes the geographical location of the segments into account. All reporting segments located outside South Africa are included in the international distribution segment. Operations included in all other segments are located within South Africa.

Operating segments are reported internally to the chief operating decision-maker in a manner consistent with the financial statements. In addition, the chief operating decision-maker uses core net profit as a non-IFRS measure in evaluating the Group’s performance on a segmental level. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive directors, who are responsible for making strategic decisions on behalf of the Blue Label Telecoms Group.

Historically, the technology segment was reported on separately. As the bulk of its function and services are interdependent in the distribution of airtime, electricity and starter packs, it is more prudent to house its expenditure in the South African distribution segment. Accordingly, the technology segment has been included in the South African distribution segment and the comparative segmental results have been restated in accordance with IFRS 8 – Operating Segments.

Transactions between reportable segments are conducted on the same terms as other transactions of a similar nature.

At 31 May 2013, the Group is managed on the basis of five main business segments:

The segmental information in respect of the Group’s discontinued operations has been excluded from the segmental summary below. The discontinued operations were contained in the international segment.

The segment results for the year ended 31 May are as follows:

The company is domiciled in the Republic of South Africa. The result of its revenue from external customers in South Africa is R18.984 billion (2012: R18.698 billion), and the total of revenue from external customers from other countries is nil (2012: R17.4 million).

The total of non-current assets other than financial instruments and deferred tax assets located in South Africa is R841 million (2012: R647 million), and the total of these non-current assets located in other countries is R481 million (2012: R333 million).

The South African distribution segment includes revenue earned from a single external customer totalling R3.577 billion (2012: R1.810 billion).