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Operating Segments

The RCS Group has two reportable segments, as described

below, which are the RCS Group’s strategic business units. The

strategic business units offer different products and services,

and are managed separately because they require different

technology and marketing strategies. For each strategic

business unit, the RCS Group’s board reviews internal

management reports on a monthly basis. The following

summary describes the operations in each of the RCS Group’s

reportable segments:

• Cards segment - a general utility and private label card

product offered to consumers, delivered via participating

merchant outlets in South Africa, Namibia and Botswana

and their related insurance products.

• Loans segment - short and medium-term loans offered

to consumers and related insurance products provided

to individuals.

• All other segments includes RCS Investment Holdings

Limited, RCS Home Loans Proprietary Limited, RCS

CollectionsProprietary Limitedandonce-offcorporate costs.

– RCS Investment Holdings Limited acts as the external

funding vehicle for the RCS Group. Commercial paper

and bonds are issued via this entity (see note 17).

– RCS Home Loans Proprietary Limited operations include

the servicing of current home loans.

– RCS Collections Proprietary Limited is a registered

debt collector.

– None of these segments meets any of the quantitative

thresholds for determining reportable segments in the

current or previous financial periods. The RCS

Group’s external customers and assets are

predominantly situated in South Africa, and no single

customer comprises 10% or more of revenue for the

RCS Group.

The accounting policies of the reportable segments are the

same as described in note 1.



for the period ended 31 December 2015