Vtech 2004 Annual Report Download - page 37

35
Notes to the
Financial Statements
VTech Holdings Ltd Annual Report 2004
1 SEGMENT INFORMATION (continued)
Primary reporting format — business segments (continued)
Year ended 31st March 2003
Telecommunication
and electronic Other
products activities Total
US$ million US$ million US$ million
i Segment revenue 864.0 2.5 866.5
Segment result 63.9 (3.0) 60.9
Unallocated corporate
expenses (1.4)
Operating profit 59.5
Net finance costs (1.0)
Share of results of associates —(0.2) (0.2)
Profit from ordinary
activities before taxation
58.3
Taxation (17.4)
Profit from ordinary
activities after taxation
40.9
Minority interest (0.1)
Profit attributable to shareholders 40.8
ii Segment assets 296.4 1.9 298.3
Associates —0.1 0.1
Unallocated assets 60.2
Total assets 358.6
Segment liabilities 217.2 3.4 220.6
Unallocated liabilities 9.7
Total liabilities 230.3
iii Capital expenditure, depreciation
and other non-cash expenses
Capital expenditure 13.6 0.5 14.1
Depreciation 22.5 1.6 24.1
Amortisation of leasehold
land payments —0.1 0.1
Impairment charges —0.2 0.2
Other non-cash expenses 5.7 —5.7
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 distribution of
telecommunication and electronic products.
Europe — the operations are principally the distribution of
telecommunication and electronic products.
Asia Pacific — the Group is headquartered in the Hong Kong SAR
and the Group’s principal manufacturing operations are located in
mainland China.
Operating Operating
Revenue Revenue profit/(loss) profit/(loss)
2004 2003 2004 2003
US$ million US$ million US$ million US$ million
North America 681.8 680.3 43.7 67.9
Europe
200.3 149.5 8.4 (6.2)
Asia Pacific
23.4 29.2 (5.8) (2.0)
Others
9.7 7.5 3.2 (0.2)
915.2 866.5 49.5 59.5
Capital Capital Total Total
expenditure expenditure assets assets
2004 2003 2004 2003
US$ million US$ million US$ million US$ million
North America 2.5 2.4 142.1 154.9
Europe
0.3 0.5 54.1 47.7
Asia Pacific
16.7 11.2 216.8 153.4
Others
— — 9.2 2.6
19.5 14.1 422.2 358.6
2 OPERATING PROFIT The operating profit is arrived at
after charging/(crediting) the following:
2004 2003
Note
US$ million US$ million
Staff related costs
— salaries and wages
95.5 88.1
— pension costs: defined
contribution schemes 16
1.7 1.5
— pension costs: defined
benefit scheme 16
1.5 1.0
— severance payments
2.3 4.4
Depreciation charges 8
— owned assets
17.8 23.9
— leased assets
0.1 0.2
Amortisation of leasehold land
payments 9
0.1 0.1
Impairment of leasehold land
payments 9
— 0.2
Loss on disposal of tangible assets
and leasehold land
1.9 1.4
Gain on disposal of subsidiaries
(1.1) —
Auditors’ remuneration
0.5 0.6
Operating leases
— land and buildings
11.2 8.7
— others
1.7 2.2
Provision for stock obsolescence
6.9 2.0
Provision for doubtful debts
(1.8) 3.7
Repairs and maintenance expenditure
2.7 2.6
Royalties
12.3 16.5
Exchange gain
(8.6) (2.6)
Forward contracts: fair value losses
on cash flow hedges transferred
from hedging reserve 19
3.6 0.4