30 000 000 A preferred ordinary shares of R1,00 each
30
30
30
30
6 000 000 B1 ordinary shares of R1,00 each
6
6
6
6
10 500 000 B2 ordinary shares of R1,00 each
11
11
11
11
3 200 000 B3 ordinary shares of R1,00 each
3
3
3
3
10 redeemable preference shares of R1,00 each
200
200
200
200
Issued and fully paid:
105 014 181 (31 March 2010 - 103 677 229) ordinary shares of R1,00 each
105
104
105
104
25 104 976 A preferred ordinary shares of R1,00 each
25
25
25
25
5 422 829 B1 ordinary shares of R1,00 each
6
6
6
6
3 296 657 B2 ordinary shares of R1,00 each
3
3
3
3
1 021 422 B3 ordinary shares of R1,00 each
1
1
1
1
140
139
140
139
Under control of the directors:
- for the purposes of the employee share option schemes 9 932 528 shares (2010: 9 595 431 shares).
- in terms of a shareholders’ resolution 5 240 588 shares (2010: 5 162 349 shares).
Details of the employee share incentive schemes are set out in note 34. Following the unbundling of Hulamin in 2007, the options granted to employees in terms of the original employee share option schemes which had not been exercised at the unbundling date were converted into two components, a Tongaat Hulett Limited component and a Hulamin Limited component, as described in note 34. At 31 March 2011 employees have an option to subscribe for 468 294 shares at an average price of R33,42 per share (2010: 667 500 shares at an average price of R32,85 per share) in respect of the Tongaat Hulett component and the equivalent of approximately 100 000 shares in respect of the Hulamin component (2010: 105 000 shares).
The original share option schemes were replaced in 2005 with a new share incentive scheme comprising the Share Appreciation Right Scheme 2005, the Long Term Incentive Plan 2005 and the Deferred Bonus Plan 2005.
12.
BEE HELD CONSOLIDATION SHARES (Rmillion)
Consolidated
2011
2010
25 104 976 A preferred ordinary shares of R1,00 each
839
839
5 422 829 B1 ordinary shares of R1,00 each
136
136
3 296 657 B2 ordinary shares of R1,00 each
46
46
1 021 422 B3 ordinary shares of R1,00 each
45
45
1 066
1 066
Less amount attributable to A preferred ordinary shareholders
(84)
(59)
Less amortisation of IFRS 2 charge on shares relating
to the employee share ownership plans (refer to notes 3 and 35)
(114)
(72)
868
935
13.
DEFERRED TAX (Rmillion)
Consolidated
Company
2011
2010
2011
2010
Balance at beginning of year
1 272
582
341
469
Currency alignment
(65)
(214)
Consolidation of subsidiaries
(1)
1 038
Accounted for in equity
(1)
6
(1)
6
Current year Income Statement charge/(relief) on:
Earnings before capital profits
161
(16)
108
(134)
Rate change adjustment
(154)
Prior years’ (relief)/charge
(1)
30
(1)
Balance at end of year
1 365
1 272
447
341
Comprising temporary differences relative to :
Property, plant and equipment
1 161
1 220
459
428
Growing crops
545
336
102
72
Defined benefit pension fund asset
82
82
Long term receivable
38
38
Current assets
144
114
31
40
Current liabilities
(89)
(34)
(31)
(25)
Tax losses
(250)
(108)
(95)
(65)
Other
(266)
(256)
(139)
(109)
1 365
1 272
447
341
14.
BORROWINGS (Rmillion)
Consolidated
Company
2011
2010
2011
2010
Long-term
1 345
1 103
977
1 066
Short-term and bank overdraft
2 930
2 077
2 437
1 768
4 275
3 180
3 414
2 834
Long-term borrowings comprise:
Effective
interest
rate (%)
Secured:
SA Rand
Repayable 2020/2021
8,60
367
Repayable 2011/2012
6,25
6
17
Finance leases (refer to note 29)
7,50
2
1
2
1
Foreign
Repayable 2011/2016
21,50
11
17
Finance leases (refer to note 29)
4,30
11
13
397
48
2
1
Unsecured:
SA Rand
3 month
Long-term portion repayable 2011/2015
JIBAR + 1,35
1 065
1 155
1 065
1 155
Foreign
Repayable 2011/2012
nil
3
5
Indefinite
nil
5
1 073
1 160
1 065
1 155
Long-term borrowings
1 470
1 208
1 067
1 156
Less: current portion included in short-term borrowings
125
105
90
90
1 345
1 103
977
1 066
Plant and machinery of Mozambique and Zimbabwe subsidiaries with a book value of R787 million (2010: R311 million) are encumbered as security for the secured long-term borrowings and certain short-term borrowings of R291 million (2010: R232 million).
Short-term borrowings comprise call loans and bank overdrafts with various South African financial institutions at interest rates linked to the prime overdraft rate as well as short-term borrowings in Mozambique equivalent to R315 million (2010: R226 million) and in Zimbabwe equivalent to R196 million (2010: R62 million).
Summary of future loan repayments by financial year:
Year
2012/13
2013/14
2014/15
2015/16
2016/17
Thereafter
Rmillion
135
129
834
39
37
171
In terms of the company’s articles of association the borrowing powers of Tongaat Hulett are limited to R8 460 million.
The non-recourse equity-settled BEE borrowings comprise:
Effective
interest
rate (%)
4 122 000 Class A redeemable preference shares
8,486 nacs
229
287
4 122 000 Class B redeemable preference shares
10,873 nacs
515
482
Accrued dividends
18
18
762
787
Less: BEE cash resources
(1)
761
787
These borrowings relate to Tongaat Hulett’s black economic empowerment partners, yoMoba SPV (Pty) Limited and
TH Infrastructure SPV (Pty) Limited, which have been fully consolidated in terms of IFRS. yoMoba SPV (Pty) Limited owns
11 157 767 A preferred ordinary shares and TH Infrastructure SPV (Pty) Limited owns 13 947 209 A preferred ordinary shares in Tongaat Hulett.
The preference shares are redeemable by no later than 30 June 2014 and have a fixed coupon payable semi-annually on
2 January and 1 July each year. The total debt due will be settled by the SPV’s utilising preferred ordinary dividends received from Tongaat Hulett and by the shares that they hold in Tongaat Hulett and will have no further impact on the cash flows of Tongaat Hulett. These SPV’s will continue to be consolidated while Tongaat Hulett carries a residual risk in these entities.
16.
PROVISIONS (Rmillion)
Consolidated
Company
2011
2010
2011
2010
Post-retirement medical aid obligations
323
304
254
236
Retirement gratuity obligations
97
145
68
61
Other
90
97
510
546
322
Further details on provisions are set out in note 32.
17.
TRADE AND OTHER PAYABLES (Rmillion)
Consolidated
Company
2011
2010
2011
2010
Accounts payable
1 765
1 750
933
1 033
Maize obligation - interest bearing
173
381
173
1 938
2 131
1 106
381
The directors consider that the carrying amount of trade and other payables approximates their fair value.
18.
OPERATING PROFIT (Rmillion)
Consolidated
Company
12 months to
15 months to
12 months to
15 months to
31 March
31 March
31 March
31 March
2011
2010
2011
2010
Revenue
9 681
11 136
6 250
8 155
Cost of sales
(7 791)
(9 629)
(5 394)
(6 986)
Administration and overhead expenses
(1 249)
(947)
(485)
(533)
Marketing and selling expenses
(235)
(332)
(162)
(189)
Other income (including growing crops fair value change )*
932
1 463
411
341
Profit from operations
1 338
1 691
620
788
Bulk sales / capital profit on land (refer to note 19)
23
52
5
47
Capital profit on other items (refer to note 19)
4
13
2
13
BEE IFRS 2 charge and transaction costs
(46)
(35)
(43)
(33)
Valuation adjustments:
Defined benefit pension fund asset recognition
288
288
Zimbabwe consolidation take-on gain
1 969
Other
(1)
(3)
Operating profit after corporate transactions
1 606
3 687
872
815
Disclosable items included in operating profit:
Dividends received from subsidiaries
105
137
Profit on disposal of plant and equipment
1
6
1
2
Amortisation of intangible assets
4
3
3
3
Depreciation charged:
Buildings
43
115
6
7
Plant and equipment
207
265
126
196
Vehicles and other
94
141
19
27
Growing crops : change in fair value *
662
1 288
109
128
Management fees paid to subsidiaries
1
1
Management fees paid to third parties
4
4
Technical fees paid
10
11
10
11
Operating lease charges (property, plant and vehicles)
25
27
19
23
Share-based payments:
IFRS 2 charge on share options, SARS, LTIP and DBP
42
39
30
26
BEE IFRS 2 charge
42
29
39
27
Auditors’ remuneration:
Fees
10
12
5
6
Other services
2
2
1
1
Net (losses)/gains on:
Fair value hedges, losses on the hedged item
(5)
(15)
(5)
(15)
Fair value hedges, gains on the hedging instrument
5
15
5
15
Valuation adjustments on financial instruments and other items:
Translation of foreign currency:
- foreign cash holdings
(1)
(5)
- other
(3)
(44)
Other financial instruments
(7)
5
(2)
2
*
This represents the change in fair value from opening balance sheet date to closing balance sheet date. The agricultural costs actually incurred in generating this increase in fair value are charged to cost of sales.
