Vtech 2007 Annual Report Download - page 39

VTech Holdings Ltd
Annual Report 2007 37
1 SEGMENT INFORMATION
Revenue represents turnover of the Group derived from
the amounts received and receivable for sale of goods and
rendering of services to third parties.
The principal activity of the Group is the design, manufacture
and distribution of consumer electronic products. The
telecommunication and electronic products business is the
principal business segment of the Group.
Primary reporting format – business segments
Year ended 31st March 2007
Telecommunication
and electronic Other
products activities Total
US$ million US$ million US$ million
i Segment revenue 1,463.8 – 1,463.8
Segment result 193.8 – 193.8
Unallocated corporate
income 0.2
Operating profi t 194.0
Net fi nance income 7.5
Profi t before taxation 201.5
Taxation (18.6)
Profi t attributable to
shareholders 182.9
ii Segment assets 461.5 0.2 461.7
Associates – 0.1 0.1
Unallocated assets 201.6
Total assets 663.4
Segment liabilities 296.9 0.3 297.2
Unallocated liabilities 22.9
Total liabilities 320.1
iii Capital expenditure,
depreciation,
amortisation and
other non-cash
expenses
Capital expenditure 36.9 0.3 37.2
Depreciation 23.8 0.4 24.2
Amortisation of leasehold
land payments 0.1 – 0.1
Other non-cash expenses 22.6 1.2 23.8
The Group evaluates the performance and allocates resources
to its operating segments. There are no sales or transactions
between the business segments. Corporate administrative
costs and assets are not allocated to the operating segments.
Segment assets consist primarily of tangible assets, stocks,
receivables and operating cash. Segment liabilities comprise
operating liabilities and exclude items such as taxation.
Capital expenditure comprises additions to moulds, machinery
and equipment, and other assets.
Primary reporting format – business segments
Year ended 31st March 2006
Telecommunication
and electronic Other
products activities Total
US$ million US$ million US$ million
i Segment revenue 1,203.7 0.9 1,204.6
Segment result 138.2 0.2 138.4
Unallocated corporate
expenses (2.2)
Operating profi t 136.2
Net fi nance income 3.9
Profi t before taxation 140.1
Taxation (11.3)
Profi t attributable to
shareholders 128.8
ii Segment assets 439.2 0.8 440.0
Associates – 0.1 0.1
Unallocated assets 195.1
Total assets 635.2
Segment liabilities 309.0 0.9 309.9
Unallocated liabilities 19.1
Total liabilities 329.0
iii Capital expenditure,
depreciation,
amortisation and
other non-cash
expenses
Capital expenditure 32.0 0.1 32.1
Depreciation 18.5 0.5 19.0
Amortisation of leasehold
land payments 0.1 – 0.1
Other non-cash expenses 12.3 1.6 13.9
Secondary reporting format – geographical
segments
Although the Group’s business segments are managed on
a worldwide basis, they principally operate in the following
geographical areas:
North America – the operations are principally the sale and
distribution of telecommunication and electronic products.
Europe – the operations are principally the sale and
distribution of telecommunication and electronic products.
Asia Pacifi c – the Group is headquartered in the Hong Kong
Special Administrative Region and the Group’s principal
manufacturing operations are located in mainland China.
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