Notes to the annual financial statements

FOR THE YEAR ENDED 31 MARCH 2010

Note 2 »

1.	earnings
			2010		2009
		Gross R million	Net R million	Gross R million	Net R million
	Headline  earnings reconciliation
	Continuing operations
	Net profit for the year attributable to equity holders		3 060		2 827
	Plus/(minus):
	– Net impairment of investments	149	149	442	442
	– Impairment of property, plant and equipment	4	3	–	–
	– Impairment of intangible assets	26	20	–	–
	– Profit/(loss) on sale of investments	9	17	(24)	(21)
	– Net (surplus)/loss on disposal of property, plant and equipment	(4)	(1)	3	2
	– Non-headline earnings items included in equity accounted
	earnings of associated companies and joint ventures	123	107	(117)	(82)
	Headline earnings from continuing operations		3 355		3 168
	Discontinued operations
	Net profit for the year attributable to equity holders		–		42 503
	Plus/(minus):
	– Profit on the distribution of investments	–	–	(40 805)	(40 805)
	– Non-headline earnings items included in equity
	accounted earnings of associated companies	–	–	(223)	(206)
	Headline earnings from discontinued operations		–		1 492
	Total headline earnings from continuing and discontinued		3 355		4 660
				2010 Cents	2009 Cents
	Earnings  per  share
	Headline earnings per share
	– Basic			690.1	987.7
	Continuing operations			690.1	671.5
	Discontinued operations			–	316.2
	– Diluted			676.4	954.8
	Continuing operations			676.4	659.2
	Discontinued operations			–	295.6
	Earnings per share
	– Basic			629.4	9 607.9
	Continuing operations			629.4	599.2
	Discontinued operations			–	9 008.7
	– Diluted			616.3	9 570.4
	Continuing operations			616.3	584.6
	Discontinued operations			–	8 985.8

Earnings per share
In determining earnings per share and headline earnings per share the weighted number of shares in issue, being 486 152 822 (2009: 471 798 001), was taken into account after deduction of treasury shares as well as shares held in The Remgro Share Trust and certain associated companies.

Diluted earnings per share
In determining diluted earnings per share and diluted headline earnings per share the weighted number of shares in issue was adjusted for the deemed dilutive effect of the offers accepted by participants in the Remgro Share Scheme and the Remgro Equity Settled Share Appreciation Right Scheme, but not yet delivered.

The delivery of scheme shares to participants will be regarded as an issue of shares. As the market value (fair value) of the shares at date of delivery will differ from the offer value, the number of shares represented by the difference will be regarded as an issue of ordinary shares for no consideration. These imputed shares total 533 594 (2009: 115 156) and have been added to the weighted number of shares to determine the dilutive effect.

Some subsidiary and associated companies have similar management incentive schemes as well as other instruments that can dilute these companies’ earnings in the future. To calculate Remgro’s diluted earnings per share from continuing operations, R63 million (2009: R57 million) and R61 million (2009: R68 million) were offset against headline earnings and earnings respectively to account for the potential diluted effect. For the comparative year R97 million and R98 million were offset against headline earnings and earnings respectively, to account for the potential diluted effect on earnings from discontinued operations.