Audited condensed results for the year ended 30 June 2012

Business combinations

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Subsidiaries and businesses acquired	Nature of business	Operational segment	Date acquired	Interest acquired (%)	Purchase consideration transferred Rm
Lehnkering Group	Logistics	Logistics	January 2012	100	1 892
Transport Holdings Botswana Group	Transport logistics	Logistics	March 2012	80	66
Accordian Investments (Pty) Ltd	Distributor & importer	Distributorships	July 2011	60	(11)
Watts Truck Centre Limited (Glouchester)	Vehicle sales & services	Automotive retail	February 2012	100	26
Bobcat Group	Industrial equipment	Distributorships	June 2012	67,5	19
Individual immaterial business combinations					249
Total purchase consideration transferred					2 241

Reason for the acquisitions

We acquired a further 20% interest in Accordian Investments, a previously held associate in which we held 40% resulting in its acquisition as a subsidiary, to expand our distribution business.

Lehnkering Group, was acquired to expand the International logistics business and to benefit from synergies within the shipping business.

Watts Truck Centre (Glouchester), was acquired to expand our automotive retail business within the United Kingdom.

Bobcat Group, was acquired to expand our distribution business.

We acquired a further 40% interest in Transport Holdings Botswana, a previously held associate in which we held 40% resulting in its acquisition as a subsidiary, to expand our logistics business within Africa.

Fair value of assets acquired and liabilities assumed at date of acquisition:	Total Rm	Lehnkering Group Rm	Transport Holdings Botswana Group Rm	Accordian Investments (Pty) Ltd Rm	Watts Truck Centre Limited (Glouchester) Rm	Bobcat Group Rm	Individually immaterial acquisitions Rm
Assets
Intangible assets	872	857	3			1	11
Investments, loans, associates and joint ventures	55	40	3				12
Property, plant and equipment	1 045	935	11	2	4	11	82
Transport fleet	467	245	54				168
Vehicles for hire	50					47	3
Non-current financial assets	16	11					5
Deferred tax assets	97	91			2		4
Inventories	383	98	3	142	56	70	14
Tax in advance	28	25				2	1
Trade and other receivables	2 097	1 807	70	57	38	39	86
Loans due by group entities	52	40				12
Cash resources	312	256	19		8	3	26
	5 474	4 405	163	201	108	185	412
Liabilities
Retirement benefit obligations	342	342
Interest-bearing borrowings	1 476	1 161	32	118		35	130
Deferred tax liabilities	435	395	11			5	24
Non-current financial liabilities	1						1
Trade and other payables and provisions	2 492	2 055	60	112	106	87	72
Loans due to group entities	142	8		16		39	79
Current tax liabilities	44	39	1				4
	4 932	4 000	104	246	106	166	310
Acquirees’ carrying amount at acquisition	542	405	59	(45)	2	19	102
Less: Non-controlling interests	(58)		(28)	18		(6)	(42)
Net assets acquired	484	405	31	(27)	2	13	60
Purchase consideration transferred	2 241	1 892	66	(11)	26	19	249
– Cash	2 147	1 892	52	2	26	6	169
– Contingent consideration	76					13	63
– Fair value of other assets transferred	5			5
– Fair value of previously held interest	13		14	(18)			17

Excess of purchase price over net assets acquired	1 757	1 487	35	16	24	6	189

Trade and other receivables acquired had gross contractual amounts of R2 110 million of which R13 million was doubtful. None of the goodwill is expected to be deductible for tax purposes. Non-controlling interests have been calculated based on their proportionate share in net assets.

Details of contingent consideration

The contingent consideration requires the group to pay the vendors an additional total amount of R76 million over three years if the entities’ net profit after tax exceeds certain earnings targets.

Acquisition costs

Acquisition costs amounting to R51 million has been excluded from the purchase consideration and have been recognised as an expense during the year.

Impact of the acquisitions on the results of the Group	Total	Lehnkering Group	Transport Holdings Botswana Group	Accordian Investments (Pty) Ltd	Watts Truck Centre Limited (Glouchester)	Bobcat Group	Individually immaterial acquisitions
From the dates of acquisition, the
acquired businesses contributed:
Revenue	4 214	2 993	121	464	119		517
Attributable profit	111	96	3		1		11
Had all the acquisitions been consolidated from 1 July 2011 the income statement would have included:
Revenue	7 817	5 867	313	464	317	223	633
Attributable profit	214	180	13		3	4	14