Notes to the summarised consolidated financial statements
Basis of preparation
The preliminary summarised consolidated financial statements have been prepared in accordance with the recognition and measurement
criteria of International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board
(IASB) in issue and effective for the group at 30 June 2013 and the SAICA Financial Reporting Guides, as issued by the Accounting Practices
Committee and financial reporting pronouncements as issued by the Financial Reporting Standards Council. The results are presented in
accordance with IAS 34 – Interim Financial Reporting and comply with the Listings Requirements of the JSE Limited and the Companies Act of
South Africa, 2008. These summarised consolidated financial statements do not include all the information required for full annual financial
statements and should be read in conjunction with the consolidated financial statements as at and for the year ended 30 June 2012.
These summarised consolidated financial statements have been prepared under the supervision of R Mumford, CA(SA) and were approved by
the board of directors on 20 August 2013.
Accounting policies
The accounting policies adopted and methods of computation used in the preparation of the summarised consolidated financial statements are
in accordance with IFRS and are consistent with those applied during the previous year except where the group has adopted new or revised
accounting standards.
Revised accounting standards and circulars
The group adopted amendments to the following accounting standards and interpretations that became applicable during the financial year.
IAS 1 – Presentation of financial statements – Amendments to the presentation of other comprehensive income.
IAS 12 – Income taxes – Deferred tax: recovery of underlying assets.
IAS 34 – Interim financial reporting – Disclosure of significant events and transactions.
IAS 1 introduced new terminology for the statement of comprehensive income and the income statement. As a result the group’s income
statement has been named the “statement of profit or loss”.
The group also adopted Circular 3/2012 – Headline Earnings as issued by the South African Institute of Chartered Accountants (SAICA).
These amendments had no significant impact on the group’s accounting policies and methods of computation.
For a list and the impact of other standards and interpretations that will become applicable to the group in future reporting periods refer to
note 2 of the group’s consolidated financial statements as at and for the year ended 30 June 2012.
Core earnings
Core earnings is a non-IFRS measure and excludes the impact of certain non-operational income and expense items from reported headline
earnings. It is included to provide an additional basis on which to measure the group’s normalised earnings performance.
Changes to the composition of the group
Acquisitions
For details about the acquisitions refer to the business combinations section on page 24.
Disposals
The group disposed of its 60% interest in Megafreight (Pty) Limited for R80 million in September 2012 and its 62% interest in NAC for
R62 million in February 2013.
Disposal group
The disposal of the Tourism division became highly probable in June 2013. As a result assets of R94 million and liabilities of R46 million are
classified as held for sale on the statement of financial position.
 |
|
|
 |
|
|
|
|
|
|
|
| Foreign exchange rates |
June
2013
|
|
June
2012
|
|
| The following major rates of exchange were used in the translation of the group’s foreign operations: |
|
|
|
|
|
| SA Rand:Euro |
|
|
|
|
|
| – closing |
13,04 |
|
|
10,39 |
|
| – 12-month average |
11,43 |
|
|
10,38 |
|
| SA Rand:US Dollar |
|
|
|
|
|
| – closing |
10,01 |
|
|
8,20 |
|
| – 12-month average |
8,84 |
|
|
7,75 |
|
Restatement and representation of comparative information
Restatement of the preliminary summarised consolidated statement of cash flows
| Decrease in interest-bearing borrowings |
2012
Rm
|
|
| Decrease in interest-bearing borrowings as originally presented |
(1 432) |
|
| Effects of exchange rate changes on cash resources in a foreign currency |
(102) |
|
| Decrease in interest-bearing borrowings – restated |
(1 534) |
|
Representation of the segment report
The executive committee, being the chief decision-making body, has changed the basis in which the various businesses within the group are
now being reported because of the changes to the executive management of the group. This has been aligned into three main pillars with
seven reporting segments being allocated to these pillars.
The principal services and products of each of these segments are as follows:
Main pillars for operating segments
Logistics
This pillar comprises:
| — |
Africa (including South Africa)
This segment comprises of logistics businesses within South Africa and Rest of Africa, which was previously reported as part of Logistics.
These businesses provide complete logistics solutions including transportation, warehousing, container handling and related value-added
services within Africa. |
| — |
International
This segment comprises the European logistics businesses, which was previously reported as part of Logistics. These businesses provide
complete logistics solutions including transportation, warehousing, inland waterway shipping, container handling, manufacturing and
packaging of materials and related value-added services within Europe. |
Automotive and Industrial
This pillar comprises:
| — |
Distribution, Retail and Allied Services
This segment comprises the distribution, retail and allied services businesses, which was previously reported as part of Distributorships.
These businesses import and distribute a range of passenger and commercial vehicles, industrial equipment and motorcycles and include
vehicle dealerships in South Africa and Australia. |
| — |
Automotive Retail
This segment comprises the automotive businesses, which is now being reported under the pillar Automotive and Industrial. These businesses
consists of a large network of motor vehicle and commercial vehicle dealerships in South Africa representing most of the major original
equipment manufacturers (OEMs) and commercial vehicle dealerships in the United Kingdom. It also manufactures and sells caravans
and canopies. |
| — |
Other Segments
This segment comprises the businesses of Autoparts, Car Rental, Tourism and NAC. Autoparts and NAC were reported under Distributorships
in 2012 and Car Rental and Tourism was previously shown as a segment on its own. The Car Rental business consists of vehicle rental
operations spanning the domestic corporate, leisure sectors (local and international), with extensive support services and the sale of preowned
vehicles. The Autoparts business is involved in wholesaling and distributing vehicle parts and accessories. |
Financial Services
This pillar comprises:
| — |
Insurance
This segment consists the insurance businesses of the group, which was previously reported under the Financial Services segment in 2012.
These businesses comprise insurance operations which are focused on a range of short-, medium- and long-term insurance and assurance
products that are predominantly associated with the automotive market and include cell captive arrangements. |
| — |
Other Financial Services
This segment consists of the financial services business of the group, which was previously reported under the Financial Services segment
in 2012. These businesses comprise the sale of warranty and maintenance products associated with the automotive market, income from
joint ventures on the sale of financial services and factoring of premium finance operations. |
The new restructured segments resulted in the following restatements:
| |
Operating
assets
2012
Rm
|
|
Operating
liabilities
2012
Rm |
|
| Segment financial position |
|
|
|
|
| LOGISTICS |
|
|
|
|
| Now disclosed separately as Africa (including South Africa) Logistics |
9 152 |
|
3 758 |
|
| Now disclosed separately as International Logistics |
7 985 |
|
3 005 |
|
| Total as originally reported for Logistics in 2012 |
17 137 |
|
6 763 |
|
| AUTOMOTIVE AND INDUSTRIAL |
|
|
|
|
| As reported originally in Distributorships in 2012 |
11 561 |
|
3 628 |
|
| Autoparts reclassified to Other Segments |
(1 423) |
|
(568) |
|
| NAC reclassified to Other Segments |
(668) |
|
(230) |
|
| Total now remaining in Distribution, Retail and Allied Services |
9 470 |
|
2 830 |
|
| Autoparts reclassified from Distributorships |
1 423 |
|
568 |
|
| NAC reclassified from Distributorships |
668 |
|
230 |
|
| Car Rental and Tourism reclassified in total |
2 809 |
|
380 |
|
| Total now reported in Other Segments |
4 900 |
|
1 178 |
|
| FINANCIAL SERVICES |
|
|
|
|
| Now disclosed separately as Insurance |
3 943 |
|
2 308 |
|
| Now disclosed separately as Other Financial Services |
1 233 |
|
2 564 |
|
| Total as originally reported for Financial Services in 2012 |
5 176 |
|
4 872 |
|
| |
Revenue
2012
Rm
|
|
Operating
profit
2012
Rm
|
|
Profit before
tax and
exceptional
items
2012
Rm |
|
| Segment profit or loss |
|
|
|
|
|
|
| LOGISTICS |
|
|
|
|
|
|
| Now disclosed separately as Africa (including South Africa) Logistics |
16 457 |
|
910 |
|
672 |
|
| Now disclosed separately as International Logistics |
11 247 |
|
598 |
|
381 |
|
| Total as originally reported for Logistics in 2012 |
27 704 |
|
1 508 |
|
1 053 |
|
| AUTOMOTIVE AND INDUSTRIAL |
|
|
|
|
|
|
| As reported originally in Distributorships in 2012 |
28 318 |
|
2 456 |
|
2 211 |
|
| Autoparts reclassified to Other Segments |
(4 134) |
|
(278) |
|
(277) |
|
| NAC reclassified to Other Segments |
(1 387) |
|
(57) |
|
(34) |
|
| Total now remaining in Distribution, Retail and Allied Services |
22 797 |
|
2 121 |
|
1 900 |
|
| Autoparts reclassified from Distributorships |
4 134 |
|
278 |
|
277 |
|
| NAC reclassified from Distributorships |
1 387 |
|
57 |
|
34 |
|
| Car Rental and Tourism reclassified in total |
3 801 |
|
380 |
|
247 |
|
| Total now reported in Other Segments |
9 322 |
|
715 |
|
558 |
|
| FINANCIAL SERVICES |
|
|
|
|
|
|
| Now disclosed separately as Insurance |
3 112 |
|
419 |
|
427 |
|
| Now disclosed separately as Other Financial Services |
887 |
|
356 |
|
383 |
|
| Total as originally reported for Financial Services in 2012 |
3 999 |
|
775 |
|
810 |
|
Subsequent events
In terms of the Ukhamba black economic empowerment transaction, 1 122 377 deferred ordinary shares have converted to ordinary shares
with effect from 1 July 2013. These shares will be listed on the Johannesburg Securities Exchange.
Audit opinion
The auditors, Deloitte & Touche, have issued an unmodified audit opinion on the group’s annual financial statements and on these preliminary
summarised financial statements set out from the summarised consolidated statement of profit or loss to the segment profit or loss for the year
ended 30 June 2013. The audit was conducted in accordance with International Standards on Auditing. Copies of their audit reports are available
for inspection at the company’s registered office. The unmodified audit opinion on the group’s annual financial statements is incorporated in
the group’s annual financial statements.
Any reference to future performance included in this announcement has not been reviewed or reported on by the auditors.
|
