2. | HEADLINE EARNINGS RECONCILIATION |
R million | 30 June 2016 |
30 June 2015 |
|
---|---|---|---|
Net profit for the year attributable to equity holders (earnings) | 5 386 | 8 715 | |
Plus/(minus): | |||
– Net impairment of equity accounted investments(1) | 1 862 | 99 | |
– Impairment of other investments | – | 79 | |
– Net impairment of property, plant and equipment | 37 | 94 | |
– Impairment of intangible assets(1) | 644 | – | |
– Impairment of assets held for sale | 7 | 16 | |
– Profit on sale and dilution of equity accounted investments(2) | (2 349) | (984) | |
– (Profit)/loss on sale of other investments | (153) | 288 | |
– Recycling of foreign currency translation reserves | 51 | – | |
– Net surplus on disposal of property, plant and equipment | (7) | (5) | |
– Loss on disposal of biological agricultural assets | 9 | – | |
– Non-headline earnings items included in equity accounted earnings of equity accounted investments | 633 | (231) | |
– Net surplus on disposal of property, plant and equipment | (27) | (111) | |
– Profit on the sale of investments | (216) | (271) | |
– Net impairment of investments, assets and goodwill | 809 | 213 | |
– Other non-recurring and capital items | 67 | (62) | |
– Taxation effect of adjustments | (87) | (50) | |
– Non-controlling interest | (146) | (25) | |
Headline earnings | 5 887 | 7 996 | |
Once-off costs | 788 | – | |
Option remeasurement | 730 | – | |
Headline earnings, excluding once-off costs and option remeasurement(3) | 7 405 | 7 996 |
3. | EARNINGS AND DIVIDENDS |
Cents | 30 June 2016 |
30 June 2015 |
|
---|---|---|---|
Headline earnings per share | |||
– Basic | 1 143.9 | 1 555.0 | |
– Diluted | 1 139.2 | 1 541.8 | |
Headline earnings per share, excluding once-off costs and option remeasurement |
|||
– Basic | 1 438.9 | 1 555.0 | |
– Diluted | 1 434.1 | 1 541.8 | |
Earnings per share | |||
– Basic | 1 046.6 | 1 694.9 | |
– Diluted | 1 042.5 | 1 680.9 | |
Dividends per share | |||
Ordinary | 460.00 | 428.00 | |
– Interim | 185.00 | 169.00 | |
– Final | 275.00 | 259.00 | |
4. | INVESTMENTS | ||
(Refer Annexures A and B) | |||
R million | |||
Equity accounted investments | |||
Associated companies | 73 418 | 52 869 | |
Joint ventures | 5 147 | 4 962 | |
78 565 | 57 831 | ||
EQUITY ACCOUNTED INVESTMENT RECONCILIATION | |||
Carrying value at the beginning of the year | 57 831 | 52 169 | |
Share of net attributable profit | 6 250 | 7 228 | |
Dividends received | (3 900) | (3 077) | |
Investment in Mediclinic | 18 246 | – | |
Dilutionary effects | 1 886 | 772 | |
Exchange rate differences | (1 274) | 93 | |
Grindrod impairment | (1 861) | – | |
Other movements | 1 387 | 646 | |
Carrying value at the end of the year | 78 565 | 57 831 | |
5. | ASSETS and liabilities HELD FOR SALE | ||
During the current financial year Remgro sold its 29.9% shareholding in Spire to Mediclinic, subsequent to Mediclinic’s successful rights issue.Total assets and liabilities are | – | (175) | |
Investment | – | 8 275 | |
Trade and other creditors | – | (8 276) | |
Derivative instruments | – | (174) | |
Various other assets and liabilities classified as held for sale | 29 | 242 | |
Assets | 29 | 259 | |
Liabilities | – | (17) | |
29 | 67 | ||
6. | LONG-TERM LOANS | ||
20 000 Class A 7.7% cumulative redeemable preference shares | 3 512 | – | |
10 000 Class B 8.3% cumulative redeemable preference shares | 4 382 | – | |
Exchangeable bonds with an effective interest rate of 4.5% | 6 380 | – | |
Various other loans | 3 672 | 3 687 | |
17 946 | 3 687 | ||
Short-term portion of long-term loans | (147) | (140) | |
17 799 | 3 547 | ||
7. | Additions to and replacement of property, plant and equipment | 1 273 | 853 |
8. | Capital and investment commitments | 1 999 | 5 847 |
Mediclinic rights issue | – | 4 135 | |
Various other commitments | 1 999 | 1 712 | |
(Including amounts authorised but not yet contracted for) | |||
9. | Guarantees and contingent liabilities | 241 | 316 |
10. | Dividends received from equity accounted investments set off against investments | 3 900 | 3 077 |
11. | Dividends received from AssociateClassified as asset Held for sale | 149 | – |
12. | EQUITY ACCOUNTED INVESTMENTS | ||
Share of after-tax profit of equity accounted investments | |||
Profit before taking into account impairments, non-recurring and capital items | 8 875 | 8 332 | |
Net impairment of investments, assets and goodwill | (809) | (213) | |
Profit on the sale of investments | 216 | 271 | |
Other non-recurring and capital items | (67) | 62 | |
Profit before tax and non-controlling interest | 8 215 | 8 452 | |
Taxation | (1 709) | (1 129) | |
Non-controlling interest | (256) | (95) | |
6 250 | 7 228 |
13. | Fair value remeasurements
The following methods and assumptions are used to determine the fair value of each class of financial instruments:
Financial instruments measured at fair value are disclosed by level of the following fair value hierarchy: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – Inputs (other than quoted prices included within level 1) that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable inputs). The following table illustrates the fair values of financial assets and liabilities that are measured at fair value, by hierarchy level: |
R million | Level 1 | Level 2 | Level 3 | Total | |
---|---|---|---|---|---|
30 June 2016 | |||||
Assets | |||||
Available-for-sale | 1 260 | – | 2 148 | 3 408 | |
Derivative instruments | – | 8 | – | 8 | |
Investment in money market funds | 1 050 | – | – | 1 050 | |
2 310 | 8 | 2 148 | 4 466 | ||
Liabilities | |||||
Non-current derivative instruments | – | 1 197 | – | 1 197 | |
Current derivative instruments | – | 63 | 54 | 117 | |
– | 1 260 | 54 | 1 314 | ||
30 June 2015 | |||||
Assets | |||||
Available-for-sale | 902 | – | 1 591 | 2 493 | |
Derivative instruments | – | 10 | – | 10 | |
Investment in money market funds | 986 | – | – | 986 | |
1 888 | 10 | 1 591 | 3 489 | ||
Liabilities | |||||
Current derivative instruments | – | 190 | – | 190 |
The following tables illustrate the reconciliation of the carrying value of level 3 assets and liabilities from the beginning to the end of the year: |
R million | 30 June 2016 |
30 June 2015 |
|
---|---|---|---|
Assets: Available-for-sale | |||
Balances at the beginning of the year | 1 591 | 1 762 | |
Additions | 174 | 375 | |
Disposals | (53) | (484) | |
Exchange rate adjustments | 236 | 148 | |
Fair value adjustments through comprehensive income | 200 | (210) | |
Balances at the end of the year | 2 148 | 1 591 |
R million | 30 June 2016 |
30 June 2015 |
|
---|---|---|---|
Liabilities: Derivative instruments | |||
Balances at the beginning of the year | – | – | |
Additions | 54 | – | |
Balances at the end of the year | 54 | – |