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Eqstra Holdings Limited FY 2012 results

Eqstra Holdings Limited FY 2012 results

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Eqstra Holdings Limited FY 2012 results Document Transcript

  • 1. AUDITED ABRIDGED YEAR-END RESULTS FOR THE YEAR ENDED 30 JUNE 2012 18.0% to R8 143 million Headline earnings per share from continuing operations increased 6.2% to 77.2 cents Revenue increased 35.6% to R488 million Profit before taxation increased 15.2% to R8 884 million Revenue- generating assets increasedR424 million 12.0% to 28 cents per share Proceeds from sale of Eqstra Mining Services (Bucyrus) business unit Final dividend increased Introduction Eqstra Holdings (“the group”) produced satisfactory results from continuing operations in a year that was characterised by a weakening economic environment. ‡ Revenue increased 18.0% to R8 143 million (2011: R6 903 million), mainly due to a ramp-up of production volumes recorded by Contract Mining and Plant Rental’s Benga project in Mozambique and increased unit and aftermarket sales in Industrial Equipment. ‡ Profit before taxation increased 35.6% to R488 million (2011: R360 million) resulting in the profit before taxation margin increasing to 6.0% from 5.2% in the prior year. This includes net impairment reversals of R30 million (2011: R50 million impairment charge) which includes insurance recoveries following industrial unrest. ‡ Revenue-generating assets (leasing assets and finance lease receivables) increased 15.2% to R8 884 million (2011: R7 715 million) across all divisions. The Benga equipment fleet grew to its full complement and reached targeted production levels in the last quarter of the financial year. Foreign exchange movements accounted for 2.8% of the increase. ‡ Net finance costs increased 17.3% to R481 million (2011: R410 million) as average debt levels increased during the year, mainly due to the growth in revenue-producing assets. ‡ Working capital increased by R250 million as trade and other receivables increased on higher revenues in Contract Mining and Plant Rental, resulting in cash generated by operations decreasing by 24.6%. ‡ Cash and cash equivalents increased to R610 million (2011: R191 million), mainly due to the proceeds from the sale of the Eqstra Mining Services (Bucyrus) business unit being received at year end. These proceeds were utilised subsequent to year end to repay bank debt maturing in April 2013 as well as commercial paper. ‡ Basic earnings per share from continuing operations increased 34.8% to 89.4 cents and headline earnings per share increased 6.2% to 77.2 cents. Basic earnings per share from discontinued operations totalled 26.5 cents, resulting in total basic earnings per share of 115.9 cents, an increase of 62.1%. Discontinued operations On 29 June 2012 the Eqstra Mining Services (Bucyrus) business unit was sold as a going concern for a purchase price based on R287 million inventory and R137 million for goodwill, resulting in a net cash inflow to the group of R424 million. The group has also given notice of termination of its distribution rights for New Holland Construction equipment, effective 31 August 2012. This exit is anticipated to have a minimal impact on the 2013 financial year. Discontinued operations will not materially alter group’s future operating performance. Prior year results of the group and Construction and Mining Equipment have been re-presented to reflect the effect of discontinued operations. Long-term debt funding Total interest-bearing borrowings net of cash and cash equivalents increased 21.6% to R6 543 million (2011: R5 380 million), with foreign exchange movements accounting for 3.7% (R199 million) of the increase. This is in line with the planned increase in revenue-generating assets linked to long-term contracts. The group complied with all bank debt covenants and achieved an interest cover (EBITDA) ratio of 5.6 times (2011: 5.7 times) and a capital adequacy ratio of 23.8% (2011: 25.3%). In April 2012 the group issued a R900 million 5-year floating rate note, which improved debt duration and diversification into the capital market. The board is satisfied that the group has sufficient facilities in place to meet anticipated liquidity requirements and that we have achieved our medium term refinancing objectives. Divisional review Contract Mining and Plant Rental HY1 2012 Rm HY2 2012 Rm 30 June 2012 Rm 30 June 2011 Rm % change Revenue 1 840 1 867 3 707 3 225 14.9% Operating profit 185 137 322 322 0.0% Net finance costs (141) (136) (277) (221) 25.3% Profit before taxation (PBT) 81 28 109 51 113.7% PBT margin 4.4% 1.5% 2.9% 1.6% 85.9% Revenue-generating assets 4 511 4 517 4 517 3 912 15.5% Revenue growth showed improved commodity and regional diversification. The Benga project in Mozambique and plant rental activities in Namibia, Botswana and Mozambique were the main contributors to the increase. South African revenue was unchanged as two projects concluded (Eland and Marikana) and certain contracts reduced their production requirements in a weakening commodity market. Domestic plant rental demand also remained weak from a depressed construction sector. Operating profit remained static, with the operating profit margin decreasing from 10.0% to 8.7%. This was due to: ‡ Increased equipment maintenance in South Africa following a rapid growth cycle four years ago; ‡ Illegal industrial unrest causing standing costs and under-utilisation of assets; and ‡ Two under-performing contracts (Pilanesberg Platinum Mine (“PPM”) and Nkomati Nickel). These contracts have now been renegotiated to more acceptable terms. Corrective actions have been initiated and positive results are already visible. The successful conclusion of an insurance claim relating to equipment damage at PPM in June 2011 resulted in a net impairment reversal of R35 million (2011:R50 million impairment) in the first half of the financial year. Construction and Mining Equipment (continuing operations) HY1 2012 Rm HY2 2012 Rm 30 June 2012 Rm 30 June 2011 Rm % change Revenue 163 289 452 507 (10.8%) Operating profit 5 5 33 (84.8%) Net finance costs (1) 4 3 (5) (160.0%) Profit before taxation (PBT) (2) 3 1 24 (95.8%) PBT margin (1.2%) 1.0% 0.2% 4.7% (95.3%) Inventories 386 269 269 544 (50.6%) Revenue and operating profit declined for the year, as equipment demand slowed due to a contraction in commodity prices and projects. Operating performance was further impacted by significant rationalisation of the division as a result of the sale of the Eqstra Mining Services (Bucyrus) business unit, the transfer of the Heavy Lift business unit to Industrial Equipment and the imminent termination of the New Holland Construction distributorship. The continuing operations of the division consist of Terex rigid and articulated dump trucks and Sleipner excavator transport systems. The group remains optimistic about the future performance from the division given an expectation of increased aftermarket revenues and market share gains in the dump truck market, notwithstanding current weakness in equipment demand due to an uncertain global economic environment. Fleet Management and Logistics HY1 2012 Rm HY2 2012 Rm 30 June 2012 Rm 30 June 2011 Rm % change Revenue 1 095 1 066 2 161 1 911 13.1% Operating profit 174 183 357 316 13.0% Net finance costs (70) (67) (137) (130) 5.4% Profit before taxation (PBT) 104 115 219 186 17.7% PBT margin 9.5% 10.8% 10.1% 9.7% 4.1% Revenue-generating assets 2 765 2 804 2 804 2 576 8.9% Revenue increased primarily as a result of solid growth in end-of-lease vehicle remarketing and a 57% unit growth in value- added products. Profit before taxation increased 17.7% despite start-up costs in the logistics business. Revenue-generating assets grew by 8.9% in a relatively flat corporate leasing market. The GPS Tracking Solutions (Pty) Ltd, a tracking product launched last year provided a platform for differentiation and diversification into new market segments. The division successfully renewed the outsource agreement with one of its core clients, Clover SA, as well as retaining all other major contracts. In addition, the division was recently awarded a substantial portion of the City of Johannesburg managed services outsource contract on its commercial vehicle fleet for a period of five years, commencing in the second quarter of the 2013 financial year. Industrial Equipment HY1 2012 Rm HY2 2012 Rm 30 June 2012 Rm 30 June 2011 Rm % change Revenue 940 1 038 1 978 1 607 23.1% Operating profit 87 117 204 186 9.7% Net finance costs (50) (38) (88) (83) 6.0% Profit before taxation (PBT) 55 75 130 101 28.7% PBT margin 5.9% 7.2% 6.6% 6.3% 4.6% Revenue-generating assets 1 266 1 523 1 523 1 201 26.8% Revenue increased as a result of improved sales in all business units. The forklift market increased 4.0% in South Africa and 10.6% in the UK on the previous financial year. Market share dropped marginally on the back of the tsunami in Japan and the strength of the yen resulting in pricing pressures. Profit before taxation increased 28.7%, boosted by a strong distribution and aftermarket performance from the forklift and heavy lift (Konecranes port equipment and Terex mobile cranes) business units. Revenue-generating assets grew by 26.8%. This was as a result of 60% (SA market) and 68% (UK market) of new forklifts being sold into the division’s leasing fleet. The UK operations gained market share in recessionary economic conditions, with monthly order intake now at significantly higher levels relative to the operation’s history. Dividend In line with the group’s published dividend policy of an annual payout of between 30% and 35% of attributable headline earnings, the board declares a dividend of 28 cents per share, a 12.0% increase. The board considered the solvency and liquidity of the company and is satisfied that the company will be solvent and liquid immediately after completing the distribution. Share buy-back In November 2011, following shareholder approval, Eqstra repurchased the remaining 15.8 million “A” deferred ordinary shares in issue for a premium of R66 million. These shares were cancelled subsequent to the transaction. A subsidiary company purchased 9.0 million ordinary shares to the value of R65 million during June 2012, currently held as treasury shares. Subsequent to year end the company repurchased a further 3.4 million ordinary shares that were delisted and cancelled. Prospects The group’s performance is expected to improve in the coming year as corrective action to address contract management issues in Contract Mining and Plant Rental takes effect. In addition, the division will focus on the rationalisation of its existing asset base. This will take place through equipment sales, improved planning of the maintenance cycle and a reduction and smoothing of capital spend. Opportunities for achieving better leverage from existing assets have been identified. All other divisions remain positioned for meaningful growth in profitability from secured long-term contracts, increased client penetration, additions to the group’s range of products and value-added services. Global and local economic conditions are expected to remain subdued. However, the group is better structured for this challenging economic situation than it was in 2008 in several important respects: ‡ It has reduced its exposure to the cyclical construction and mining equipment market and resulting working capital drain, through the sale of Eqstra Mining Services (Bucyrus) and the termination of the New Holland Construction distribution agreement; ‡ It has diversified its commodity exposure from a previous concentration in platinum and diamonds; ‡ It has pursued a policy of matching equipment purchases to its contract mining requirements; and ‡ The Fleet Management and Logistics and Industrial Equipment divisions have retained their resilience and defensive nature through depressed economic cycles. Outlook The depressed global macro environment and the European debt crisis will result in lower GDP growth in Southern Africa. Business confidence is expected to remain weak with private sector delays in capital expenditure. Government infrastructure spending, if executed, will support leasing and industrial equipment sales growth. By order of the board NP Mageza WS Hill Chairperson Chief Executive Officer 20 August 2012 CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY for the years ended Share capital and premium Rm Other reserves Rm Retained income Rm Non- controlling interests Rm Total Rm Balance at 1 July 2010 2 060 22 278 20 2 380 Total comprehensive income for the year (22) 300 (1) 277 Profit for the year 300 (1) 299 Other comprehensive loss for the year, net of taxation (22) (22) Share-based payment expense 21 21 Revaluation of Lereko call option 17 17 Other movements (7) (7) Balance at 30 June 2011 2 060 31 578 19 2 688 Total comprehensive income for the year 77 486 2 565 Profit for the year 486 2 488 Other comprehensive income for the year, net of taxation 77 77 Net share-based payment reversal (21) (21) Revaluation of Lereko call option 2 2 Repurchase of "A" deferred ordinary shares (66) (66) Purchase of treasury shares by subsidiary (65) (65) Dividends paid (105) (3) (108) Other movements 17 (28) (4) (15) Balance at 30 June 2012 1 929 106 931 14 2 980 CONDENSED GROUP STATEMENT OF CASH FLOWS for the years ended 30 June 2012 Rm 30 June 2011 Rm Cash flows from operating activities Cash generated by operations before working capital movements 2 668 2 387 Working capital movements (250) 822 Cash generated by operations 2 418 3 209 Interest received 27 26 Interest paid (565) (481) Taxation paid (59) (40) Net cash flows from operating activities 1 821 2 714 Cash flows from investing activities Disposal of businesses 424 Acquisition of businesses (53) (3) Gross capital expenditure (3 289) (3 076) Proceeds on disposal of assets 385 292 Increase in finance lease receivables (39) (84) Increase in other investments and loans (3) (4) Net cash flows from investing activities (2 575) (2 875) Cash flows from financing activities Repurchase of non-controlling interest (6) Repurchase of “A” deferred ordinary shares (66) Purchase of treasury shares by subsidiary (65) Dividends paid (108) Increase in interest-bearing borrowings 1 417 89 Net cash flows from financing activities 1 172 89 Net increase (decrease) in cash and cash equivalents 418 (72) Effect of exchange rate translation on cash and cash equivalents 1 (4) Cash and cash equivalents at beginning of year 191 267 Cash and cash equivalents at end of year 610 191 CONDENSED GROUP STATEMENT OF DISCONTINUED CASH FLOWS for the years ended 30 June 2012 Rm 30 June 2011 Rm Net cash flows from operating activities (43) 185 Net cash flows from investing activities 425 (3) Net cash flows from financing activities (382) (182) Net change in cash and cash equivalents CONDENSED GROUP STATEMENT OF FINANCIAL POSITION as at 30 June 2012 Rm 30 June 2011 Rm ASSETS Non-current assets 9 553 8 316 Intangible assets 51 22 Property, plant and equipment 500 429 Leasing assets 8 755 7 625 Deferred tax assets 30 56 Finance lease receivables 59 51 Other investments, loans and derivatives(2) 158 133 Current assets 3 036 2 325 Inventories 811 986 Trade and other receivables and derivatives 1 533 1 084 Finance lease receivables 70 39 Taxation in advance 12 25 Cash and cash equivalents 610 191 Total assets 12 589 10 641 EQUITY AND LIABILITIES Capital and reserves Share capital and premium 1 929 2 060 Other reserves 106 31 Retained income 931 578 Equity attributable to owners of the parent 2 966 2 669 Non-controlling interests 14 19 Total equity 2 980 2 688 Non-current liabilities 6 498 5 206 Interest-bearing borrowings 5 801 4 570 Deferred tax liabilities 697 636 Current liabilities 3 111 2 747 Trade and other payables, provisions and derivatives 1 747 1 726 Current tax liabilities 12 20 Current portion of interest-bearing borrowings(3) 1 352 1 001 Total equity and liabilities 12 589 10 641 CONDENSED GROUP INCOME STATEMENT for the years ended 30 June 2012 Rm 30 June 2011* Rm Continuing operations Revenue 8 143 6 903 Profit from operations before depreciation and recoupments 2 596 2 338 Depreciation and amortisation (1 744) (1 523) Recoupments 41 13 Operating profit 893 828 Foreign exchange gains (losses) 46 (8) Net reversal of impairment (impairment) of leasing assets 30 (50) Profit before net finance costs 969 770 Net finance costs (481) (410) Finance costs including fair value gains(5) (507) (436) Finance income 26 26 Profit before taxation 488 360 Income tax expense (111) (82) Profit for the year from continuing operations 377 278 Discontinued operations Profit for the year from discontinued operations, including profit on sale of discontinued operation 111 21 Profit for the year 488 299 *Prior year re-presented to reflect the discontinued operations Attributable to: Owners of the parent 486 300 – Profit for the year from continuing operations 375 279 – Profit for the year from discontinued operations 111 21 Non-controlling interests 2 (1) Profit for the year 488 299 Cents Cents Earnings per share from continuing operations – Basic earnings per share 89.4 66.3 – Diluted earnings per share 88.0 63.7 Earnings per share from discontinued operations – Basic earnings per share 26.5 5.2 – Diluted earnings per share 26.1 5.1 CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME for the years ended 30 June 2012 Rm 30 June 2011* Rm Profit for the year 488 299 Total other comprehensive income (loss) for the year, net of taxation 77 (22) Exchange differences on translation of foreign subsidiaries 27 (15) Net fair value gain (loss) on cash flow hedges and other fair value reserves 50 (7) Total comprehensive income for the year, net of taxation 565 277 Attributable to: Owners of the parent 563 278 – Profit for the year from continuing operations 452 257 – Profit for the year from discontinued operations 111 21 Non-controlling interests 2 (1) 565 277 *Prior year re-presented to reflect the discontinued operations CONDENSED GROUP DISCONTINUED OPERATIONS INCOME STATEMENT for the years ended 30 June 2012 Rm 30 June 2011 Rm Revenue 1 120 683 Profit from operations before depreciation and recoupments 85 79 Depreciation, amortisation and recoupments (8) (4) Operating profit 77 75 Foreign exchange losses (19) (9) Profit before net finance costs 58 66 Net finance costs (48) (38) Finance costs (49) (38) Finance income 1 Profit before taxation 10 28 Income tax expense (36) (7) (Loss) profit for the year (26) 21 *The above discontinued operations formed part of the Construction and Mining Equipment division The profit for the year from discontinued operations, including profit on sale of discontinued operation comprises: (Loss) profit from discontinued operations (refer above) (26) 21 Profit on disposal of discontinued operation, net of taxation 137 111 21
  • 2. Contract Mining and Plant Rental Construction and Mining Equipment Distributorships Industrial Equipment Passenger and Commercial Vehicles EQSTRA HOLDINGS LIMITED 1998/011672/06 SHARE CODE: EQS ISIN: ZAE000117123 www.eqstra.co.za SEGMENT INFORMATION – CONDENSED GROUP STATEMENT OF FINANCIAL POSITION as at Group Contract Mining and Plant Rental# Construction and Mining Equipment# Fleet Management and Logistics Industrial Equipment# Corporate office and eliminations# 30 June 2012 Rm 30 June 2011 Rm 30 June 2012 Rm 30 June 2011 Rm 30 June 2012 Rm 30 June 2011 Rm 30 June 2012 Rm 30 June 2011 Rm 30 June 2012 Rm 30 June 2011 Rm 30 June 2012 Rm 30 June 2011 Rm BUSINESS SEGMENTATION ASSETS Intangible assets 51 22 14 2 34 19 3 1 Property, plant and equipment 500 429 152 205 4 15 62 52 142 126 140 31 Leasing assets 8 755 7 625 4 517 3 912 38 2 795 2 576 1 523 1 201 (118) (64) Finance lease receivables 129 90 120 90 9 Other investment and loans 124 115 12 72 7 3 105 40 Inventories 811 986 97 61 269 544 53 44 392 337 Trade and other receivables and derivatives 1 567 1 102 767 514 265 232 179 139 305 228 51 (11) Operating assets and derivatives 11 937 10 369 5 559 4 764 696 883 3 139 2 833 2 362 1 892 181 (3) Deferred tax assets 30 56 Taxation in advance 12 25 Cash and cash equivalents 610 191 Total assets 12 589 10 641 LIABILITIES Trade and other payables and derivatives 1 747 1 726 611 777 286 246 317 285 406 343 127 75 Interest-bearing borrowings 7 153 5 571 3 436 2 710 284 578 1 809 1 379 1 326 1 058 298 (154) Operating liabilities 8 900 7 297 4 047 3 487 570 824 2 126 1 664 1 732 1 401 425 (79) Deferred tax liabilities 697 636 Current tax liabilities 12 20 Total liabilities 9 609 7 953 GEOGRAPHIC SEGMENTATION Operating assets 11 937 10 369 5 559 4 764 696 883 3 139 2 833 2 362 1 892 181 (3) – South Africa 9 673 8 958 4 134 4 032 668 809 2 900 2 606 1 790 1 514 181 (3) – Rest of World 2 264 1 411 1 425 732 28 74 239 227 572 378 Trade and other payables and derivatives 1 747 1 726 611 777 286 246 317 285 406 343 127 75 – South Africa 1 498 1 267 491 502 278 182 265 229 337 279 127 75 – Rest of World 249 459 120 275 8 64 52 56 69 64 Interest-bearing borrowings 7 153 5 571 3 436 2 710 284 578 1 809 1 379 1 326 1 058 298 (154) – South Africa 5 891 5 001 2 669 2 423 283 574 1 726 1 359 915 799 298 (154) – Rest of World 1 262 570 767 287 1 4 83 20 411 259 Net capital expenditure 2 904 2 784 1 159 1 539 (4) (2) 1 027 838 703 402 19 7 – South Africa 2 085 1 963 682 881 (4) (2) 969 764 419 313 19 7 – Rest of World 819 821 477 658 58 74 284 89 # Prior year re-presented to reflect changes in reporting structures NOTES (1) Basis of preparation The audited abridged consolidated financial statements have been prepared using accounting policies compliant with International Financial Reporting Standards (IFRS), the AC 500 standards as issued by the Accounting Practices Board or its successor and contains information required by IAS 34: Interim Financial Reporting, the JSE Limited Listings Requirements and the South African Companies Act. The accounting policies and their application are consistent, in all material respects, with those detailed in Eqstra’s 2011 annual report, except for the adoption on 1 July 2011 of those new, revised and amended standards and interpretations in Eqstra’s 2012 annual report. The adoption of the new and amended statements of generally accepted accounting practice, interpretations of statements of generally accepted accounting practice, and improvements project amendments has not had an effect on the group’s financial results. 30 June 2012 Rm 30 June 2011 Rm (2) Other investments, loans and derivatives – Listed, at market value 66 61 – Unlisted, at fair value or directors' valuation 42 44 – Loans receivable 16 10 – Derivative financial asset 34 18 158 133 (3) Current portion of interest-bearing borrowings The current portion of interest-bearing borrowings includes R529 million (2011: R652 million) commercial paper that is supported by a R1 000 million standby liquidity facility that has an 13-month rolling notice period. (4) Capital commitments 2 402 3 058 – Contracted 489 1 042 – Authorised by directors but not contracted 1 913 2 016 Contingent liabilities 5 The expenditure is substantially for the acquisition and replacement of leasing assets. Expenditure will be financed from cash generated from operations and existing banking facilities. (5) Finance costs including fair value gains Interest expense 516 443 Fair value gains on borrowings and interest swaps (unrealised) (9) (7) Cents Cents (6) Net asset value per share attributable to owners of the parent 691. 9 624. 0 30 June 2012 Rm 30 June 2011 Rm (7) Headline earnings per share Headline earnings per shares – continuing operations(8) – Basic earnings per share 77.2 72.7 – Diluted earnings per share 76.0 69.8 Headline earnings per share – discontinued operations(8) – Basic earnings per share 5.2 – Diluted earnings per share 5.1 Reconciliation of continuing earnings per share Basic earnings per share 89.4 66.3 Profit on sale of property, plant and equipment and leasing equipment (9.8) (3.1) Net (reversal of impairment) impairments of leasing assets (7.2) 11.9 Taxation effect 4.8 (2.4) Headline earnings per share 77.2 72.7 Million Million (8) Weighted average number of shares in issue for the year Number of ordinary shares – in issue 428.7 427.7 Weighted average number of ordinary shares in issue during the year 419.6 419.4 – opening shares 419.4 404.9 – conversion of "A" deferred ordinary shares 0.8 – purchase of treasury shares (0.6) – conversion of "B" deferred ordinary shares 14.5 – dilutionary effect of deferred ordinary shares 6.5 16.8 Diluted weighted average number of ordinary shares 426.1 436.2 (9) The auditors, Deloitte and Touche, have audited the financial statements in accordance with section 29(1)(e) of the Companies Act (Act 71 of 2008) and have issued their unmodified opinion on the group's annual financial statements for the year ended 30 June 2012. The audit was conducted in accordance with International Standards on Auditing. These abridged financial statements have been derived from the group financial statements and are consistent in all material respects with the group financial statements. A copy of their audit report is available for inspection at the company's registered office. Any reference to future financial performance included in this announcement, has not been reviewed or reported on by the Company’s auditors. NAME AND REGISTRATION NUMBER Eqstra Holdings Limited 1998/011672/06 JSE codes: EQS; EQS01; EQS02; EQS04; EQS05 ISIN: ZAE000117123 REGISTERED OFFICE AND BUSINESS ADDRESS 61 Maple Street, Pomona, Kempton Park, 1619 PO Box 1050, Bedfordview, 2008 NON-EXECUTIVE DIRECTORS NP Mageza*(Chairperson), MJ Croucamp*, S Dakile-Hlongwane, VJ Mokoena*, SD Mthembi-Mahanyele*, AJ Phillips*, TDA Ross* (*Independent) EXECUTIVE DIRECTORS E Clarke, WS Hill (CEO), JL Serfontein (CFO)1 CA(SA) (1 Preparer of financial results) COMPANY SECRETARY L Möller TRANSFER SECRETARIES Computershare Investor Services (Proprietary) Limited 70 Marshall Street, Johannesburg, 2001 PO Box 61051, Marshalltown, 2107 SEGMENT INFORMATION – CONDENSED GROUP INCOME STATEMENT for the years ended Group Contract Mining and Plant Rental# Construction and Mining Equipment## Fleet Management and Logistics Industrial Equipment# Corporate office and eliminations## 30 June 2012 Rm 30 June 2011 Rm 30 June 2012 Rm 30 June 2011 Rm 30 June 2012 Rm 30 June 2011 Rm 30 June 2012 Rm 30 June 2011 Rm 30 June 2012 Rm 30 June 2011 Rm 30 June 2012 Rm 30 June 2011 Rm BUSINESS SEGMENTATION Revenue – Sales of goods 1 662 1 307 327 174 391 358 944 775 – Rendering of services and other 6 481 5 596 3 699 3 012 40 224 1 707 1 531 1 034 826 1 3 8 143 6 903 3 699 3 012 367 398 2 098 1 889 1 978 1 601 1 3 Inter segment revenue 8 213 85 109 63 22 6 (156) (350) 8 143 6 903 3 707 3 225 452 507 2 161 1 911 1 978 1 607 (155) (347) Net operating expenses (5 547) (4 565) (2 604) (2 262) (441) (476) (1 190) (1 004) (1 451) (1 133) 139 310 Depreciation and amortisation (1 744) (1 523) (789) (644) (6) (1) (632) (597) (326) (289) 9 8 Recoupments 41 13 8 3 3 18 6 3 1 12 Operating profit (loss) 893 828 322 322 5 33 357 316 204 186 5 (29) Foreign exchange gains (losses) 46 (8) 27 (4) (1) 14 (2) 6 (2) Net reversal of impairment (impairment) of leasing assets 30 (50) 37 (50) (7) Profit (loss) before net finance costs 969 770 386 272 (2) 29 356 316 218 184 11 (31) Net finance (costs) income (481) (410) (277) (221) 3 (5) (137) (130) (88) (83) 18 29 Profit (loss) before taxation 488 360 109 51 1 24 219 186 130 101 29 (2) Income tax expense (111) (82) 5 13 (69) (56) (19) (41) (28) 2 Profit for the year 377 278 114 64 1 24 150 130 111 60 1 GEOGRAPHIC SEGMENTATION Revenue 8 143 6 903 3 707 3 225 452 507 2 161 1 911 1 978 1 607 (155) (347) – South Africa 6 923 6 255 3 025 3 017 452 507 2 007 1 761 1 594 1 317 (155) (347) – Rest of World 1 220 648 682 208 154 150 384 290 Operating profit (loss) 893 828 322 322 5 33 357 316 204 186 5 (29) – South Africa 681 751 158 287 5 33 331 293 182 167 5 (29) – Rest of World 212 77 164 35 26 23 22 19 Net finance costs (income) 481 410 277 221 (3) 5 137 130 88 83 (18) (29) – South Africa 419 390 232 217 (3) 5 131 124 77 73 (18) (29) – Rest of World 62 20 45 4 6 6 11 10 # Prior year re-presented to reflect changes in reporting structures ## Prior year re-presented to reflect the discontinued operations and changes in reporting sructures