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TON - Tongaat Hulett Limited - Audited Results for the year ended 31 March 2011
Tongaat Hulett Limited
Registration No: 1892/000610/06
JSE share code: TON
ISIN: ZAE000096541
Audited Results for the year ended 31 March 2011
- Revenue of R9,681 billion (2010: R8,789 billion)
- Profit from operations of R1,338 billion (2010: R1,500 billion)
- Headline earnings of R806 million (2010: R815 million)
- Annual dividend of 250 cents per share
COMMENTARY
The past year continued to be characterised by counteractive factors. Progress
towards fully utilising Tongaat Hulett`s installed sugar milling capacity of
some 2 million tons per annum was hampered by the severe drought in the 2009/10
growing period in South Africa, coupled with poor growing conditions in
Mozambique in the early part of 2010. The South African sugar production was the
lowest in many decades for Tongaat Hulett. Exchange rates have been less
favourable than in the prior year. Sugar realisations in the past year in the
Mozambique local market and on exports from South Africa were constrained.
Favourable prices were achieved on exports from Mozambique and Zimbabwe into the
European Union and the United States. The 7 800 hectare increase in land under
cane, with its corresponding root planting, as well as better expected future
yields, crop positioning and improved sugar prices led to an increase in the
value recorded for the sugar cane growing crop at the 31 March 2011 year end.
The results of the starch operation improved substantially. The sale of
development land remained depressed in the current economic climate. A defined
benefit pension fund asset has been recognised in accordance with IFRS upon the
splitting of the fund with Hulamin. Tongaat Hulett`s headline earnings were R806
million for the year ended 31 March 2011, compared to the R815 million earned in
the previous comparative 12 months.
Profit from the starch operations increased by 21% to R303 million from R251
million in the prior year. A margin increase was generated by improvements in
manufacturing efficiencies, lower maize costs and higher international starch
prices. This was partially offset by a firmer Rand and lower co-product prices.
Higher international maize prices combined with favourable agricultural
conditions resulted in a third consecutive annual South African maize surplus
and local maize prices which traded close to or below international prices for
most of the year. Starch and glucose volumes in the local market grew by 2,6 %
following moderate growth in the food sectors and a recovery of demand in the
paper making and paper converting sectors.
The Zimbabwe sugar operations increased production by 29% to 333 000 tons from
258 000 tons in the prior year. Initiatives are underway with farmers to
increase the hectares under cane, as well as to improve yields and optimise cane
age on the company estates, in order to grow cane supply. The opportunity exists
for a further 80% growth in sugar production up to the installed milling
capacity of 600 000 tons per annum and a reduction in the unit cost of
production. The extended mill refurbishment programme during the previous off-
season resulted in a late start at Hippo Valley Estates, consequently not all
the cane could be crushed by the end of the season. The quantum of the increase
in the value of growing crops in 2010/11 was lower than that of 2009/10 due to
the re-establishment of the sugar cane crop and a greater price recovery in
2009/10. The profit from the Zimbabwe sugar operations was R454 million (US$ 63
million) compared to R518 million (US$ 66 million) in the prior year.
In Mozambique, sugar production increased by 24% to 166 000 tons, as the
operations progress towards the recently expanded capacity of more than 300 000
tons per annum. Volumes were lower than expected as a result of crop positioning
and weather conditions, which led to lower cane yields per hectare harvested and
18% less sugar extracted from the cane than expected, particularly in the latter
part of the year. Consequently, some sugar cane originally targeted for milling
in the 2010/11 season was carried over and will be milled early in the 2011/12
season. Following the rapid depreciation of the Metical during the year,
domestic market prices lagged regional prices for a large portion of the year
and had a negative impact on operating profit of some R120 million. In addition,
the fixed cost nature of the business resulted in high costs per ton of sugar
produced, with the cane expansion still being in the ramp-up phase. Profit from
operations was R135 million (Metical 628 million) compared to R141 million
(Metical 521 million) in the prior year.
The South African sugar milling, refining and agriculture operations made a loss
of R7 million for the year compared to a profit in the prior year of R136
million. The extreme drought conditions in KwaZulu-Natal in the past season led
to a reduction in the sugar crop and higher costs per ton of sugar produced.
Sugar production reduced to 445 000 tons (prior year: 564 000 tons). Domestic
sales volumes grew by 3,2%. In terms of the South African sugar industry
legislated regulations, 83% of the sales in the 2010/11 season were deemed to be
local and 17% were recognised and valued as exports. The export realisations did
not fully reflect the higher world prices and were limited by the reduction in
production. The average realisation for these raw sugar exports was R3 272 per
ton (prior season: R3 070 per ton), including a world sugar price of 18,5 US
c/lb at an average exchange rate of R7,62/US$.
The downstream sugar value added activities contributed R241 million to profit
(prior year: R200 million). This includes Voermol animal feeds, South African
refined exports, regional marketing, sales, packing and distribution activities.
In Swaziland, the Tambankulu sugar estate produced a raw sugar equivalent of 54
000 tons (prior year: 54 000 tons). The Swaziland sugar industry`s EU export
realisations were lower than last year. The increase recorded in the value of
the sugar cane in 2010/11 was below the increase of 2009/10. Operating profit
reduced to R17 million (prior year: R51 million).
Tongaat Hulett owns 13 654 gross hectares for development in South Africa. Land
and property development activity continues to focus primarily on the areas
north and west of Durban in anticipation of demand in the near term from urban
growth. Good progress is being made, working with all spheres of government, on
adding value for all stakeholders through processes of preparing for the
conversion of agricultural land to optimal land usage and accelerated socio
economic development at the appropriate time. In the present economic conditions
the sale of development land across most sectors remains depressed and few
hectares are being converted to development. Revenue in the past year was
generated mainly from sales in the Cornubia, Umhlanga Ridgeside and Izinga
areas, together with a benefit and associated land sale for the golf course at
Zimbali Lakes, which is currently being constructed by Tongaat Hulett`s joint
venture partner. During this period, 144 developable hectares (209 gross
hectares) were sold. Operating profit from land conversion and development
amounted to R166 million (prior year: R194 million) with a further R23 million
in capital profits (prior year: R52 million) being realised.
The centrally accounted and consolidation items, in profit from operations,
included a gain of R130 million (prior year: R82 million) on the recognition of
an unconditional entitlement to an employer surplus account allocation, which is
funding an employer contribution holiday in the Tongaat Hulett pension fund.
Overall, profit from operations was R1,338 billion compared to the R1,500
billion earned in the previous comparative 12 months.
Tongaat Hulett`s operating profit has increased to R1,606 billion from R1,535
billion in the prior year. It includes an amount of R288 million, relating to
the recognition of an accounting surplus in the South African defined benefit
pension fund, as required by international financial reporting standards (IFRS),
following the formal splitting of the fund between Tongaat Hulett and Hulamin.
Finance costs for the year increased to R472 million from R365 million in the
prior year. The capitalisation of interest on the Mozambique expansion project
ended in the prior year, with the commissioning having been completed.
Cash inflow from operations, before a working capital absorption and tax
payments, was R1,005 billion for the year. The last three years have seen
significant capital expenditure on the Mozambique expansion and cash being
absorbed in the establishment of the expanded cane crops, the replanting of
sugar cane and mill refurbishment in Zimbabwe. Tongaat Hulett`s net debt at the
end of the year was R3,925 billion (prior year: R3,040 billion).
The Board has declared a final dividend of 140 cents per share, which brings the
total annual dividend to 250 cents per share, compared to 275 cents per share in
the fifteen month prior period.
Outlook
The large South African maize harvest in 2010 and the high maize stock levels
from the previous two seasons should maintain local maize prices close to world
prices and contribute to the competitiveness of the starch operation. Higher
international starch prices are countering the impact of the exchange rate.
Tongaat Hulett expects to make further progress in growing sugar production
towards the target of doubling the 2010/11 production, utilising the available
milling capacity, with a simultaneous reduction in unit costs. Production in
Mozambique is expected to increase by more than 50% in the 2011/12 season to
between 250 000 and 270 000 tons of sugar, with an increase in hectares
harvested, higher cane yields and improved sugar extraction from cane
anticipated. Zimbabwe sugar production in the 2011/12 season is expected to
increase to between 360 000 and 380 000 tons of sugar, with better cane age and
yields on a similar number of hectares being harvested. In South Africa, sugar
production is expected to increase in the 2011/12 season, notwithstanding the
variable growing conditions at the beginning of the year, as the cane recovers
from the drought of 2010. The strategy to increase cane supply in South Africa
is focused on increasing Tongaat Hulett`s influence in cane development through
leasing land and collaborating with government to rehabilitate cane supply on
its land and land reform farms that have gone out of cane. Tongaat Hulett
expects to have new sugar cane planted on more than 8 000 hectares in South
Africa in 2011/12, following the additional 9 696 hectares planted over the past
two years.
Pricing of raw sugar into the European Union is reflective of demand exceeding
supply. Regional sugar prices at the start of the new season are above those of
last year, in line with current global sugar dynamics.
Considerable growth in profit from operations is expected in the year ahead.
Tongaat Hulett`s financial results remain sensitive to movements in the Rand, US
dollar, Euro and Mozambique Metical. These impact on the revenue streams, costs
incurred and the conversion of profits into Rands.
Agricultural land conversion and development activity is currently focused on
development, partnership and bulk sale opportunities in the north and west of
Durban, including industrial and business park land adjacent to the new
international airport and at Cornubia. Industrial land in Durban/eThekwini
remains in short supply. Tongaat Hulett has 13 654 gross hectares available for
conversion to development over time in South Africa.
Renewable energy, both electricity generation and ethanol production from sugar
cane, provides substantial future opportunities.
For and on behalf of the Board
J B Magwaza Peter Staude
Chairman Chief Executive Officer
Amanzimnyama
Tongaat, KwaZulu-Natal
26 May 2011
DIVIDEND DECLARATION
Notice is hereby given that the Board has declared a final dividend (number 167)
of 140 cents per share for the year ended 31 March 2011 to shareholders recorded
in the register at the close of business on Friday 15 July 2011.
The salient dates of the declaration and payment of this final dividend are as
follows:
Last date to trade ordinary shares
"CUM" dividend Friday 8 July 2011
Ordinary shares trade "EX" dividend Monday 11 July 2011
Record date Friday 15 July 2011
Payment date Thursday 21 July 2011
Share certificates may not be dematerialised or re-materialised, nor may
transfers between registers take place between Monday 11 July 2011 and Friday 15
July 2011, both days inclusive.
The dividend is declared in the currency of the Republic of South Africa.
Dividends paid by the United Kingdom transfer secretaries will be paid in
British currency at the rate of exchange ruling at the close of business on
Friday 8 July 2011.
For and on behalf of the Board
M A C Mahlari
Company Secretary
Amanzimnyama
Tongaat, KwaZulu-Natal
26 May 2011
INCOME STATEMENT
Condensed consolidated Audited Pro forma Audited
12 months to 12 months to 15 months to
31 March 31 March 31 March
Rmillion 2011 2010 2010
Revenue 9 681 8 789 11 136
Profit from operations 1 338 1 500 1 691
Bulk sales/capital profit
on land 23 52 52
Capital profit on other items 4 13 13
BEE IFRS 2 charge and
transaction costs (46) (26) (35)
Defined benefit pension fund
asset recognition 288
Valuation adjustments (1) (4) (3)
Zimbabwe consolidation
take-on gain 1 969
Operating profit 1 606 1 535 3 687
Share of associate company`s
(loss) / profit (2) 1
Net financing costs (note 1) (472) (365) (452)
Profit before tax 1 132 1 170 3 236
Tax (note 2) (261) (158) (208)
Net profit for the year 871 1 012 3 028
Profit attributable to:
Shareholders of Tongaat Hulett 833 885 2 898
Minority (non-controlling)
interest 38 127 130
871 1 012 3 028
Headline earnings attributable
to Tongaat Hulett
shareholders (note 3) 806 815 858
Earnings per share (cents)
Net profit per share
Basic 786,0 856,2 2 791,6
Diluted 764,3 839,1 2 736,0
Headline earnings per share
Basic 760,5 788,5 826,5
Diluted 739,6 772,7 810,0
Dividend per share (cents) 250,0 275,0 275,0
Currency conversion
Rand/US dollar closing 6,80 7,39 7,39
Rand/US dollar average 7,19 7,81 8,23
Rand/Metical average 0,21 0,27 0,29
Rand/Euro average 9,49 11,03 11,40
SEGMENTAL ANALYSIS
Condensed consolidated Audited Pro forma Audited
12 months to 12 months to 15 months to
31 March 31 March 31 March
Rmillion 2011 2010 2010
REVENUE
Starch operations 2 357 2 243 2 778
Land Conversion and
Developments 207 260 274
Sugar
Zimbabwe operations 1 646 1 325 1 636
Swaziland operations 126 133 134
Mozambique operations 715 447 463
SA agriculture, milling and
refining 2 991 3 148 4 285
Downstream value added
activities 1 639 1 233 1 566
Consolidated total 9 681 8 789 11 136
PROFIT FROM OPERATIONS
Starch operations 303 251 301
Land Conversion and Developments 166 194 187
Sugar
Zimbabwe operations 454 518 576
Swaziland operations 17 51 63
Mozambique operations 135 141 192
SA agriculture, milling
and refining (7) 136 158
Downstream value added
activities 241 200 226
Centrally accounted and
consolidation items 29 9 (12)
Consolidated total 1 338 1 500 1 691
STATEMENT OF FINANCIAL POSITION
Condensed consolidated Audited Audited
31 March 31 March
Rmillion 2011 2010
ASSETS
Non-current assets
Property, plant and equipment 7 665 7 710
Growing crops 2 608 2 041
Defined benefit pension fund asset 294
Long-term receivable 135
Goodwill 230 240
Intangible assets 32 9
Investments 7 10
10 971 10 010
Current assets 3 520 3 358
Inventories 1 365 1 373
Trade and other receivables 1 457 1 580
Major plant overhaul costs 331 256
Derivative instruments 11 9
Tax 6
Cash and cash equivalents 350 140
TOTAL ASSETS 14 491 13 368
EQUITY AND LIABILITIES
Capital and reserves
Share capital 140 139
Share premium 1 524 1 519
BEE held consolidation shares (868) (935)
Retained income 5 305 4 691
Other reserves (1 301) (841)
Shareholders` interest 4 800 4 573
Minority interest in subsidiaries 840 870
Equity 5 640 5 443
Non-current liabilities 3 981 3 708
Deferred tax 1 365 1 272
Long-term borrowings 1 345 1 103
Non-recourse equity-settled BEE borrowings 761 787
Provisions 510 546
Current liabilities 4 870 4 217
Trade and other payables (note 4) 1 938 2 131
Short-term borrowings 2 930 2 077
Derivative instruments 2 3
Tax 6
TOTAL EQUITY AND LIABILITIES 14 491 13 368
Number of shares (000)
- in issue 105 014 103 677
- weighted average (basic) 105 986 103 811
- weighted average (diluted) 108 984 105 922
STATEMENT OF CASH FLOWS
Condensed consolidated Audited Audited
12 months to 15 months to
31 March 31 March
Rmillion 2011 2010
Operating profit 1 606 3 687
Profit on disposal of property, plant
and equipment (35) (87)
Depreciation 344 521
Defined benefit pension fund asset recognition (288)
Growing crops and other non-cash items (622) (729)
Zimbabwe consolidation take-on gain (1 969)
Tax payments (111) (257)
Change in working capital (212) 789
Cash flow from operations 682 1 955
Net financing costs (472) (452)
Cash flow from operating activities 210 1 503
Expenditure on property, plant and equipment:
New (396) (1 416)
Replacement (323) (280)
Major plant overhaul costs (87) (291)
Expenditure on intangible assets (26) (7)
Capital expenditure on growing crops (43) (76)
Proceeds on disposal of property, plant
and equipment 41 110
Investments (5) 8
Net cash flow before dividends and
financing activities (629) (449)
Dividends paid (198) (283)
Net cash flow before financing activities (827) (732)
Borrowings raised 1 103 652
Non-recourse equity-settled BEE borrowings (26) (4)
Shares issued 6 14
Settlement of share-based payment awards (27) (22)
Net increase/(decrease) in cash and
cash equivalents 229 (92)
Balance at beginning of year 140 229
Foreign exchange adjustment (18) (61)
Exchange rate translation loss (1) (5)
Subsidiaries consolidated 69
Cash and cash equivalents at end of year 350 140
STATEMENT OF CHANGES IN EQUITY
Condensed consolidated Audited Audited
12 months to 15 months to
31 March 31 March
Rmillion 2011 2010
Balance at beginning of year 4 573 3 059
Total comprehensive income for the year 358 1 689
Retained earnings 833 2 898
Movement in hedge reserve (3) 17
Foreign currency translation (472) (1 226)
Dividends paid (191) (264)
Share capital issued - ordinary 6 14
BEE held consolidation shares 42 29
Share-based payment charge 42 39
Settlement of share-based payment awards (27) (22)
Reallocation (3) 29
Shareholders` interest 4 800 4 573
Minority interest in subsidiaries 840 870
Balance at beginning of year 870 276
Total comprehensive income for the year (29) (106)
Retained earnings 38 130
Foreign currency translation (67) (236)
Dividends paid to minorities (7) (19)
Change of interest in subsidiary (7)
Loan account movement 2
Reallocation 3 (29)
Consolidation of subsidiaries 1 755
Equity 5 640 5 443
STATEMENT OF OTHER COMPREHENSIVE INCOME
Condensed consolidated Audited Audited
12 months to 15 months to
31 March 31 March
Rmillion 2011 2010
Profit for the year 871 3 028
Other comprehensive income (542) (1 445)
Movement in non-distributable reserves:
Foreign currency translation (539) (1 462)
Hedge reserve (4) 23
Tax on movement in hedge reserve 1 (6)
Total comprehensive income for the year 329 1 583
Total comprehensive income attributable to:
Shareholders of Tongaat Hulett 358 1 689
Minority (non-controlling) interest (29) (106)
329 1 583
NOTES
Condensed consolidated Audited Audited
12 months to 15 months to
31 March 31 March
Rmillion 2011 2010
1. Net financing costs
Interest paid (491) (577)
Interest capitalized 7 88
Interest received 12 37
(472) (452)
2. Tax
Normal (72) (309)
Deferred (160) (14)
Rate change adjustment (deferred) 154
Secondary tax on companies (29) (39)
(261) (208)
3. Headline earnings
Profit attributable to shareholders 833 2 898
Less Zimbabwe consolidation take-on gain (1 969)
Less after tax effect of:
Capital profit on disposal of land (23) (52)
Capital profit on other items (4) (11)
Fixed assets and other disposals (8)
806 858
4. Trade and other payables
Included in trade and other payables is the maize obligation
(interest bearing) of R173 million (2010: R381 million).
5. Capital expenditure commitments
Contracted 134 234
Approved 51 118
185 352
6. Operating lease commitments 42 31
7. Guarantees and contingent liabilities 35 148
8. Basis of preparation
The audited results for the year ended 31 March 2011, from
which these condensed consolidated financial statements were
derived, have been presented in accordance with International
Accounting Standard 34 Interim Financial Reporting, the AC 500
standards as issued by the Accounting Practices Board and the
JSE Limited Listings Requirements. The accounting policies are
consistent with those used for the audited 2010 annual
financial statements which fully comply with International
Financial Reporting Standards.
9. Audited results
The consolidated financial statements for the year ended
31 March 2011 have been audited by Deloitte & Touche. Their
unmodified audit opinion is available for inspection at the
registered office of the company.
10. Pro forma income statement and segmental analysis for the
12 months ended 31 March 2010
The pro forma income statement and segmental results for the
prior period are presented for comparative purposes and
comprise the audited results for the 15 months to 31 March
2010 minus the unaudited results for the 3 months to 31 March
2009. The pro forma detail and the requisite reporting
accountants` report form part of this announcement and will be
included in the Annual Report.
CORPORATE INFORMATION
Directorate: J B Magwaza (Chairman), P H Staude (Chief Executive Officer)*, B G
Dunlop*, F Jakoet, J John, R P Kupara, A A Maleiane+, T N Mgoduso, M Mia, N
Mjoli-Mncube, M H Munro*, C B Sibisi, R H J Stevens.
* Executive directors Zimbabwean +Mozambican
Company Secretary: M A C Mahlari
Registered office: Amanzimnyama Hill Road, Tongaat, KwaZulu-Natal
P O Box 3, Tongaat 4400 Telephone: +27 32 439 4019, Facsimile: +27 32 945 3333
Transfer secretaries: Computershare Investor Services (Pty) Limited Telephone:
+27 11 370 7700
Sponsor: Investec Bank Limited Telephone: +27 11 286 7000
www.tongaat.co.za
e-mail: info@tongaat.co.za
PRO FORMA INCOME STATEMENT AND SEGMENTAL RESULTS
for the 12 months ended 31 March 2010 (ANNEXURE 1)
(1) (2) (3)
(1)-(2)
Unadjusted Actual Pro forma
Audited 3 months 12 months
15 months to 1 January to
31 March 2009 to 31 March
2010 31 March 2010
Rmillion 2009
Revenue 11 136 2 347 8 789
Profit from operations 1 691 191 1 500
Capital profit on land 52 52
Capital profit on insurance claim 13 13
BEE IFRS 2 charge and transaction
costs (35) (9) (26)
Zimbabwe consolidation take-on
gain 1 969 1 969
Valuation adjustments (3) 1 (4)
Operating profit 3 687 2 152 1 535
Share of associate company`s
profit 1 1
Net financing costs (452) (87) (365)
Profit before tax 3 236 2 066 1 170
Tax (208) (50) (158)
Net profit for the period 3 028 2 016 1 012
Profit attributable to:
Shareholders of Tongaat Hulett 2 898 2 013 885
Minority (non-controlling)
interest 130 3 127
3 028 2 016 1 012
Headline earnings attributable to
Tongaat Hulett shareholders 858 43 815
Earnings per share (cents)
Net profit per share
Basic 2 791,6 1 952,4 856,2
Diluted 2 736,0 1 912,4 839,1
Headline earnings per share
Basic 826,5 41,7 788,5
Diluted 810,0 40,9 772,7
Dividend per share (cents) 275,0 - 275,0
SEGMENTAL ANALYSIS
(1) (2) (3)
(1)-(2)
Unadjusted Actual Pro forma
Audited 3 months 12 months
15 months to 1 January to
31 March 2009 to 31 March
2010 31 March 2010
Rmillion 2009
REVENUE
Starch operations 2 778 535 2 243
Land Conversion and Developments 274 14 260
Sugar
Zimbabwe operations 1 636 311 1 325
Swaziland operations 134 1 133
Mozambique operations 463 16 447
SA agriculture, milling
and refining 4 285 1 137 3 148
Downstream value added
activities 1 566 333 1 233
Consolidated total 11 136 2 347 8 789
PROFIT FROM OPERATIONS
Starch operations 301 50 251
Land Conversion and Developments 187 (7) 194
Sugar
Zimbabwe operations 576 58 518
Swaziland operations 63 12 51
Mozambique operations 192 51 141
SA agriculture, milling and
refining 158 22 136
Downstream value added
activities 226 26 200
Centrally accounted and
consolidation items (12) (21) 9
Consolidated total 1 691 191 1 500
NOTES
(1) Unadjusted audited results for the 15 months ended
31 March 2010.
(2) Unaudited results for the 3 months from 1 January 2009 to
31 March 2009 based on complete management account information
for the 3 months ended 31 March 2009 prepared in terms of
IFRS.
(3) Pro forma results for the 12 months to 31 March 2010, being
column 1 minus column 2, which represents the unaudited pro
forma comparative income statement for the 12 months to
31 March 2010.
(4) This pro forma income statement is the responsibility of
the Tongaat Hulett directors, who are satisfied with its
quality, and has been prepared for comparative purposes only
arising from the change in the company`s previous financial
year end. As per the JSE Limited Listings Requirements, para
8.18 : this information is prepared for illustrative purposes
and because of its nature, it may not fairly present the
financial results of the company for the pro forma reporting
period.
(5) The reporting accountant`s report from Deloite & Touche on the
pro forma financial information is set out in the annual
financial statements and forms part of the SENS announcement
of results.
INDEPENDENT REPORTING ACCOUNTANTS` ASSURANCE REPORT
20 May 2011
The Directors
Tongaat Hulett Limited
P O Box 3
TONGAAT
4400
Dear Sirs
Independent Reporting Accountants` Assurance Report on the Pro Forma Financial
Information of Tongaat Hulett Limited
We have performed our limited assurance engagement in respect of the unaudited
12 month period ended 31 March 2010 comparative pro forma income statement and
segmental result information which is to be included in Tongaat Hulett Limited`s
SENS announcement of results and as an annexure to the company`s 31 March 2011
annual financial statements. The pro forma financial information as set out in
the enclosed Annexure 1 has been prepared in accordance with the requirements of
the JSE Limited ("JSE") Listings Requirements, for illustrative purposes only,
to provide certain comparative financial information as a consequence of the
change in Tongaat Hulett Limited`s prior year reporting period from December, to
a 15 month period ended 31 March 2010.
Directors` responsibility
The directors are responsible for the compilation, contents and presentation of
the pro forma financial information to be contained in the company`s SENS
announcement of results and annual financial statements and the financial
information from which it has been prepared. Their responsibility includes
determining that: the pro forma financial information has been properly compiled
on the basis stated; the basis is consistent with the accounting policies of
Tongaat Hulett Limited; and the pro forma adjustments are appropriate for the
purposes of the pro forma financial information disclosed in terms of the JSE
Listings Requirements.
Reporting accountants` responsibility
Our responsibility is to express our limited assurance conclusion on the
comparative pro forma financial information included in the SENS announcement of
results and as an annexure to the company`s
31 March 2011 annual financial statements. We conducted our assurance engagement
in accordance with the International Standard on Assurance Engagements
applicable to Assurance Engagements Other Than Audits or Reviews of Historical
Financial Information and the Guide on Pro Forma Financial Information issued by
SAICA.
This standard requires us to obtain sufficient appropriate evidence on which to
base our conclusion.
We do not accept any responsibility for any reports previously given by us on
any financial information used in the compilation of the pro forma financial
information beyond that owed to those to whom those reports were addressed by us
at the dates of their issue.
Sources of information and work performed
Our procedures consisted primarily of comparing the unadjusted financial
information with the source documents, considering the pro forma adjustments in
light of the accounting policies of Tongaat Hulett Limited, considering the
evidence supporting the pro forma adjustments and discussing the adjusted pro
forma financial information with the directors of the company.
In arriving at our conclusion, we have relied upon financial information
prepared by the directors of Tongaat Hulett Limited and other information from
various public, financial and industry sources.
While our work performed has involved an analysis of the historical published
audited financial information and other information provided to us, our
assurance engagement does not constitute an audit or review of any of the
underlying financial information conducted in accordance with International
Standards on Auditing or International Standards on Review Engagements and
accordingly, we do not express an audit or review opinion.
In a limited assurance engagement, the evidence-gathering procedures are more
limited than for a reasonable assurance engagement and therefore less assurance
is obtained than in a reasonable assurance engagement. We believe our evidence
obtained is sufficient and appropriate to provide a basis for our conclusion.
Conclusion
Based on our examination of the evidence obtained, nothing has come to our
attention, which causes us to believe that, in terms of the section 8.17 and
8.30 of the JSE Listings Requirements:
- the pro forma financial information has not been properly
compiled on the basis stated,
- such basis is inconsistent with the accounting policies of the
issuer, and
- the adjustments are not appropriate for the purposes of the
pro forma financial information as disclosed.
Consent
We consent to the inclusion of this report, which will form part of the SENS
announcement of results, to be issued on or about
30 May 2011, and as an Annexure to the company`s 31 March 2011 annual financial
statements, in the form and context in which it will appear.
Deloitte & Touche
Registered Auditors
Per JAR Welch
Partner
Deloitte Place
2 Pencarrow Crescent
La Lucia Ridge Office Estate
Durban
South Africa
National Executive: GG Gelink Chief Executive AE Swiegers Chief Operating
Officer GM Pinnock Audit DL Kennedy Risk Advisory NB Kader Tax and Legal
Services L Geeringh Consulting L Bam Corporate Finance JK Mazzacco Human
Resources CR Beukman Finance TJ Brown Clients NT Mtoba Chairman of the Board MJ
Comber Deputy Chairman of the Board.
Regional Leader: GC Brazier
A full list of partners and directors is available on request.
Date: 30/05/2011 07:05:21 Supplied by www.sharenet.co.za
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