Wrap Text
EQS - Eqstra Holdings Limited - Unaudited interim results for the six months
ended 31 December 2011
Eqstra Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/011672/06)
Share code: EQS ISIN: ZAE000117123
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2011
Revenue increased 11.2% to R4 022 million
Headline earnings per share increased 18.3% to 36.8 cents
Operating profit increased 12.6% to R455 million
Credit rating upgraded to zaA- from zaBBB+
Profit before taxation increased 45.3% to R263 million
Leasing assets increased 10.2% to R8 406 million
INTRODUCTION
The board of directors is pleased to report that the Eqstra group ("the group")
grew earnings in an environment characterised by continued economic uncertainty
and a challenging climate for industrial relations. Contract Mining and Plant
Rental`s Benga project in Mozambique continued to deliver good results, however,
the division was negatively impacted by industrial action in the domestic market
and an underperforming contract. Construction and Mining Equipment
Distributorships` (CMED) performance was below expectations due to lumpy mining
sector demand and weak demand from the construction industry. Passenger and
Commercial Vehicles delivered another pleasing operating performance underpinned
by annuity contracts, value-added services and the resumption of leasing asset
growth. Industrial Equipment performed well despite a strong yen. United Kingdom
(UK) forklift operations delivered a good performance with increased market
share in a difficult market.
OVERVIEW OF CONTINUING OPERATIONS
'Revenue from continuing operations increased by 11.2% to R4 022 million (H1`11:
R3 616 million), with growth spread across divisions.
'Operating profit increased by 12.6% to R455 million (H1`11: R404 million),
mainly on the back of a good performance by Passenger and Commercial Vehicles.
'Net finance costs increased by 17.2% to R252 million (H1`11: R215 million) as
average debt levels increased during the year due to growth in leasing assets
and increased investment in working capital.
'Profit before taxation from continuing operations increased 45.3% to R263
million (H1`11: R181 million), which includes an impairment reversal of R35
million relating to an insurance claim.
'Basic earnings per share from continuing operations increased 51.9% to 47.1
cents and headline earnings per share from continuing operations increased by
18.3% to 36.8 cents.
'Leasing assets increased by 10.2% to R8 406 million (H2`11: R7 625 million)
mainly due to growth of the Benga equipment fleet in Contract Mining and Plant
Rental, as well as the translation effect of foreign currency denominated assets
due to a weaker rand.
DISCONTINUED OPERATIONS
Eqstra and Caterpillar Global Mining LLC ("CAT") are negotiating a transaction,
whereby the Mining services (Bucyrus) business unit would be sold as a going
concern for a purchase price based on predetermined asset and inventory values
and goodwill. Shareholders are referred to the cautionary announcement as
updated on 12 January 2012.
The New Holland Construction business unit has been classified as a discontinued
operation. Negotiations are ongoing in this regard.
Prior period results of the group and the CMED division have been reclassified
to reflect the effect of discontinued operations.
LONG-TERM DEBT FUNDING
Total interest-bearing liabilities increased by 20.2% to R6 699 million (H2`11:
R5 571 million), mainly due to the planned increase in revenue generating assets
and increased investment in working capital. The increase in inventories is
attributable to an increase in committed orders.
The group complied with all bank debt covenants:
'Interest cover (EBITDA) increased slightly to 5.4 times (H1`11: 5.3 times); and
'Capital adequacy decreased to 23.0% (H2`11: 25.3%).
The board believes that sufficient facilities are in place to meet the group`s
liquidity requirements.
DIVISIONAL REVIEW
CONTRACT MINING AND PLANT RENTAL
For the six months ended Year
ended
31 December 31 December 30 June 30 June
2011 2010 2011 2011
Rm Rm Rm Rm
Revenue 1 840 1 647 1 578 3 225
Operating profit 185 173 149 322
Operating margin 10.1% 10.5% 9.4% 10.0%
Net finance costs (141) (103) (118) (221)
Profit (loss) before 81 70 (19) 51
taxation
Leasing assets 4 511 3 095 3 912 3 912
Revenue increased 11.7%, mainly due to higher volumes on the Benga project.
Operating profit increased by 6.9% and profit before taxation increased by
15.7%, but industrial action during the period reduced both revenue and the
operating margin, as standing costs relating to equipment and staff negatively
impacted results. The terms of the loss making Platmin contract was renegotiated
effective 1 January 2012. The successful conclusion of an insurance claim
relating to equipment damage during the latter part of H2`11 resulted in an
impairment reversal of R35 million. Plant rental performed well in Mozambique
and Namibia, but demand from the domestic construction industry remains weak.
CONSTRUCTION AND MINING EQUIPMENT DISTRIBUTORSHIPS - CONTINUING
OPERATIONS
For the six months ended Year ended
31 December 31 December 30 June 30 June
2011 2010 2011 2011
Rm Rm Rm Rm
Revenue 163 208 299 507
Operating (loss) profit (1) 34 33
Operating margin (0.5%) 11.4% 6.5%
Net finance costs (1) (4) (1) (5)
(Loss) profit before (2) (6) 30 24
taxation
Inventories 386 532 544 544
The continuing operations of the division consist of Terex rigid and articulated
dump trucks and Sleipner excavator transport systems. Although sales were slow
during the period due to continued pressure on the construction sector, order
intake has improved in recent months, with a secured order book at period-end of
R200 million.
PASSENGER AND COMMERCIAL VEHICLES
For the six months ended Year ended
31 December 31 December 30 June 30 June
2011 2010 2011 2011
Rm Rm Rm Rm
Revenue 1 095 967 944 1 911
Operating profit 174 154 162 316
Operating margin 15.9% 15.9% 17.2% 16.5%
Net finance costs (70) (69) (61) (130)
Profit before taxation 104 85 101 186
Leasing assets 2 765 2 524 2 576 2 576
The division delivered a satisfying performance from its annuity contracts with
revenue increasing 13.2% as a result of the growth in logistics revenues, value-
added products and a good contribution from the remarketing of off-lease
vehicles. The operating profit margin was unchanged and profit before taxation
increased by 22.4% as finance costs remained constant. Leasing assets grew by
7.3%.
INDUSTRIAL EQUIPMENT
For the six months ended Year ended
31 December 31 December 30 June 30 June
2011 2010 2011 2011
Rm Rm Rm Rm
Revenue 940 816 791 1 607
Operating profit 87 96 90 186
Operating margin 9.3% 11.8% 11.4% 11.6%
Net finance costs (50) (43) (40) (83)
Profit before 55 46 55 101
taxation
Leasing assets 1 266 1 101 1 201 1 201
Revenue increased by 15.2% and profit before taxation increased 19.6%. The
strength of the yen negatively impacted the domestic operating margin. During
the period 54% of new forklift sales in the SA market and 61% in the UK market
were sold into the leasing fleet. The Heavy lift business unit made a better
than expected contribution and benefitted from a strong aftermarket performance.
UK operations delivered a pleasing result, with market share growing.
DIVIDEND
In line with the group`s dividend policy, the board will consider an annual
dividend declaration at the financial year-end.
ACKNOWLEDGEMENT
The board would like to thank Dr Danie Cronje, who retired from the board as an
independent non-executive director and chairperson of the board on 16 November
2011, for his valued contribution. The board welcomes Mr Nkateko (Peter) Mageza,
who was appointed as an independent non-executive director on1 October 2011 and
as chairperson of the board on 16 November 2011.
OUTLOOK
Eqstra, with its robust balance sheet, leading market positions and strong cash
generation, is well positioned to sustain earnings, despite growth concerns in
the global economy.
By order of the board
NP Mageza WS Hill
Chairperson Chief Executive
20 February 2012
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
as at
Unaudited Unaudited Audited
31 December 31 December 30 June
2011 2010 2011
Rm Rm Rm
ASSETS
Non-current assets 9 174 7 331 8 316
Intangible assets and goodwill 24 11 22
Property, plant and equipment 455 397 429
Leasing assets 8 406 6 654 7 625
Deferred tax assets 52 52 56
Finance lease receivables(2) 81 107 51
Investment in associate 63
Other investments, loans and 93 110 133
derivatives(3)
Current assets 2 856 2 194 2 325
Inventories 1 017 977 986
Trade and other receivables 1 239 992 1 084
and derivatives
Finance lease receivables 26 23 39
Taxation in advance 8 34 25
Cash and cash equivalents 154 168 191
Assets classifed as held-for- 412
sale(4)
Total assets 12 030 9 525 10 641
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 1 994 2 060 2 060
Other reserves 116 17 31
Retained income 639 405 578
Equity attributable to owners 2 749 2 482 2 669
of the parent
Non-controlling interests 16 21 19
Total equity 2 765 2 503 2 688
Non-current liabilities 5 782 4 944 5 206
Interest-bearing borrowings 5 106 4 297 4 570
Deferred tax liabilities 676 647 636
Current liabilities 3 483 2 078 2 747
Trade and other payables, 1 861 1 229 1 726
provisions and derivatives
Current tax liabilities 29 24 20
Current portion of interest- 1 593 825 1 001
bearing borrowings(5)
Total liabilities 9 265 7 022 7 953
Total equity and liabilities 12 030 9 525 10 641
CONDENSED GROUP INCOME STATEMENT
Unaudited Audited
For the six months ended Year ended
31 December 31 December 30 June 30 June
2011 2010* 2011* 2011*
Rm Rm Rm Rm
Revenue 4 022 3 616 3 287 6 903
Profit from 1 305 1 154 1 184 2 338
operations before
depreciation and
recoupments
Depreciation and (879) (750) (773) (1 523)
amortisation
Recoupments 29 13 13
Operating profit 455 404 424 828
Foreign exchange 25 (8) (8)
gain (loss)
Net reversal of 35 (50) (50)
impairment
(impairment) of
assets
Profit before net 515 396 374 770
finance costs
Net finance costs (252) (215) (195) (410)
Finance costs (264) (221) (215) (436)
includingfair value
gain(7)
Finance income 12 6 20 26
Profit before 263 181 179 360
taxation
Income tax expense (64) (50) (32) (82)
Profit for the
period from
continuing
operations 199 131 147 278
Discontinued
operations
Profit (loss) from 9 (3) 24 21
discontinued
operations
Profit for the 208 128 171 299
period
* Represented as a
result of certain
operations being
classified as
discontinued
Attributable to:
Owners of the 207 127 173 300
parent
Non-controlling 1 1 (2) (1)
interests
Profit for the 208 128 171 299
period
Cents Cents Cents Cents
Earnings per
share(8)
Ordinary shares -
continuing
operations
'-'Basic 47.1 31.0 35.3 66.3
'-'Diluted 45.7 29.8 33.9 63.7
Ordinary shares -
all operations
'-'Basic 49.3 30.3 41.2 71.5
'-'Diluted 47.8 29.1 39.7 68.8
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
Unaudited Audited
For the six months ended Year ended
31 December 31 December 30 June 30 June
2011 2010 2011 2011
Rm Rm Rm Rm
Profit for the 208 128 171 299
period ended
Other comprehensive 84 (28) 6 (22)
income (loss) for
the period
Net gains (losses) 54 (16) 1 (15)
arising on
translation of
foreign
subsidiaries
Fair value gain 30 (12) 5 (7)
(losses)
Total comprehensive 292 100 177 277
income
for the period
Attributable to:
Owners of the 282 102 155 257
parent
- continuing
operations
Owners of the 9 (3) 24 21
parent
- discontinued
operations
Non-controlling 1 1 (2) (1)
interests
292 100 177 277
CONDENSED GROUP DISCONTINUED OPERATIONS INCOME STATEMENT**
Unaudited Audited
For the six months ended Year ended
31 December 31 December 30 June 30 June
2011 2010 2011 2011
Rm Rm Rm Rm
Revenue 380 365 318 683
Profit from 35 24 55 79
operations
before depreciation
and recoupments
Depreciation, (1) (2) (2) (4)
amortisation and
recoupments
Operating profit 34 22 53 75
Foreign exchange 1 (2) (7) (9)
gain (loss)
Profit before 35 20 46 66
netfinance costs
Net finance costs (16) (17) (21) (38)
Profit before 19 3 25 28
taxation
Income tax expense (10) (6) (1) (7)
Profit (loss) for 9 (3) 24 21
the period
**'The above discontinued operations formed part of the
Construction and Mining Equipment Distributorships segment
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
Share Other Retained Non-
capital and reserves income controlling
premium Rm Rm interests Total
Rm Rm Rm
Balance at 2 060 22 278 20 2 380
30 June 2010
Total (28) 127 1 100
comprehensive
(loss) income
for the
period
Profit for 127 1 128
the period
Other (28) (28)
comprehensive
loss
Share-based 8 8
payment
expense
Revaluation 15 15
of Lereko
call option
Balance at 2 060 17 405 21 2 503
31 December
2010
Total 6 173 (2) 177
comprehensive
income
for the
period
Profit for 173 (2) 171
the period
Other 6 6
comprehensive
income
Share-based 13 13
payment
expense
Revaluation 2 2
of Lerekocall
option
Other (7) (7)
movements
Balance at 2 060 31 578 19 2 688
30 June 2011
Total 84 207 1 292
comprehensive
income
for the
period
Profit for 207 1 208
the period
Other 84 84
comprehensive
income
Share-based (12) (12)
payment
income
Revaluation 4 4
of Lereko
call option
Repurchase of (66) (66)
"A" deferred
ordinary
shares
Dividends (118) (118)
paid
Other 9 (28) (4) (23)
movements
Balance at 1 994 116 639 16 2 765
31 December
2011
CONDENSED GROUP STATEMENT OF CASH FLOWS
Unaudited Audited
For the six months ended Year
ended
31 December 31 December 30 June 30 June
2011 2010 2011 2011
Rm Rm Rm Rm
Cash flows from
operating activities
Cash generated by 1 348 1 207 1 180 2 387
operations before
working capital
movements
Working capital (471) 239 583 822
movements
Cash generated by 877 1 446 1 763 3 209
operations
Finance income 12 6 20 26
Interest expense (287) (240) (241) (481)
Income tax (paid) (3) 10 (50) (40)
received
Net cash flows from 599 1 222 1 492 2 714
operating activities
Cash flows from
investing activities
Acquisition of
business (53) (3) (3)
Gross capital (1 802) (972) (2 104) (3 076)
expenditure
Proceeds on disposal 416 78 214 292
of assets
Decrease (increase) 7 (84) (84)
in financelease
receivables
Acquisition of (63)
investment in
associate
Decrease (increase) 54 (87) 83 (4)
in other investments
and loans
Net cash flows from (1 441) (984) (1 891) (2 875)
investing activities
Cash flows from
financing activities
Purchase of non- (6)
controlling interest
Share buy-back (66)
Dividends paid (118)
Increase (decrease) 991 (332) 421 89
in interest-bearing
borrowings
Net cash flows from 801 (332) 421 89
financing activities
Net (decrease) (41) (94) 22 (72)
increase in cash and
cash equivalents
Foreign exchange
effects on cash and
cash equivalents held
in foreign currency 4 (5) 1 (4)
Cash and cash 191 267 168 267
equivalents at
beginning of period
Cash and cash 154 168 191 191
equivalents at end of
period
Cashflows from
discontinued
operations
Cash flows from (99) 57 128 185
operating activities
Cash flows from (1) (2) (3)
investing activities
Cash flows from 99 (56) (126) (182)
financing activities
Net increase in cash
and cash equivalents
from discontinued
operations
NOTES
(1) Basis of preparation
The unaudited condensed consolidated interim financial
statements for the six months ended 31 December 2011 have been
prepared using accounting policies compliant with International
Financial Reporting Standards (IFRS), IAS.34 Interim Financial
Reporting, the AC 500 standards as issued by the Accounting
Practices Board or its successor, the JSE Limited`s Listing
Requirements and the South African Companies Act. The accounting
policies and their application are consistent, in all material
respects, with those detailed in Eqstra`s 2011 annual report,
except for the adoption on 1 July 2011 of those new,revised and
amended standards and interpretations listed in Eqstra`s 2011
annual report.
The adoption of the new and amended statements of generally
accepted accounting practice, interpretations of statements of
generally accepted accounting practice has not had an effect on
the group`s interim financial results.
(2) Finance lease receivables
In the prior period, finance lease receivables were disclosed as
part of trade and other receivables.
(3) Other investments, loans and derivatives
as at 31 December 31 December 30 June
2011 2010 2011
Rm Rm Rm
-'Listed, at market value 11 56 61
-'Unlisted, at fair value or 47 42 44
directors` valuation
-'Loans receivable 10 12 10
-'Derivative financial asset 25 18
93 110 133
(4) Assets classifed as held-for-
sale
-'Property, plant and equipment 4
and intangibles
-'Inventories 408
412
(5) Current portion of interest-bearing borrowings
The current portion of interest-bearing borrowings includes R980
million (H2`11: R652 million) commercial paper that is supported
by a R1 000 million standby liquidity facility that has an 13-
month rolling notice period.
(6) Net asset value per share attributable to owners of the parent
Cents Cents Cents Cents
641.2 580.3 624.0 624.0
(7) Finance costs including fair value gains
Rm Rm Rm Rm
Interest expense 271 223 220 443
Fair value gain on (7) (2) (5) (7)
borrowings and
interest swaps
264 221 215 436
(8) Earnings per share - continuing operations
Unaudited Audited
For the six months ended Year
ended
31 December 31 December 30 June 30 June
2011 2010 2011 2011
Cents Cents Cents Cents
Ordinary shares(9)
-'Basic 47.1 31.0 35.3 66.3
-'Diluted 45.7 29.8 33.9 63.7
Headline
earningsper
share(9)
-'Basic 36.8 31.1 41.6 72.7
-'Diluted 35.7 29.9 39.9 69.8
Reconciliation
Basic earnings per 47.1 31.0 35.3 66.3
share
Profit on sale of (6.5) (0.5) (0.5)
property, plant and
equipment
Loss (profit) on
sale of leasing
assets 0.4 0.1 (2.7) (2.6)
Net (reversal of (8.3) 11.9 11.9
impairment)
impairment of
leasing assets
Taxation effect 4.1 (2.4) (2.4)
Headline earnings 36.8 31.1 41.6 72.7
per share
(9) Weighted average
number of shares
in issue for
the period
Number of ordinaryshares
(million)
-'in issue 428.7 427.7 427.7 427.7
-'opening shares 419.4 413.2 413.2 413.2
-'transfer to (8.3) (8.3) (8.3)
treasury shares
-'conversion of "A" 0.7
deferred ordinary
shares
-'conversion of "B" 14.5 14.5 14.5
deferred ordinary
shares
Adjusted weighted 420.1 419.4 419.4 419.4
average number of
shares
-'dilutionary 12.9 16.8 16.8 16.8
shares
Adjusted diluted 433.0 436.2 436.2 436.2
weighted average
number of shares
as at 31 December 31 December 30 June
2011 2010 2011
Rm Rm Rm
(10) Capital commitments
1 950 2 698 3 058
-'Contracted 685 1 537 1 042
-'Authorised by directors but 1 265 1 161 2 016
not contracted
Contingent liabilities 5 5 5
SEGMENT INFORMATION - CONDENSED STATEMENT OF FINANCIAL POSITION
As at
Group Contract Miningand
Plant Rental#
Unaudited Audited Unaudited Audited
31 30 June 31 December 30 June
December 2011 2011 2011
2011 Rm Rm Rm
Rm
BUSINESS SEGMENTATION
ASSETS
Intangible assets and 24 22
goodwill
Property, plant and 455 429 130 205
equipment
Leasing assets 8 406 7 625 4 511 3 912
Finance lease 107 90
receivables
Investment in associate 63
Other investments, 93 133 22 72
loans and derivatives
Inventories 1 017 986 76 61
Trade and other 1 239 1 084 584 514
receivables and
derivatives
Assets classifed as 412
held-for-sale
Operating assets and 11 816 10 369 5 323 4 764
derivatives
Deferred tax assets 52 56
Taxation in advance 8 25
Cash and cash 154 191
equivalents
Total assets 12 030 10 641
LIABILITIES
Trade and other 1 861 1 726 648 777
payables, provisions
and derivatives
Interest-bearing 6 699 5 571 3 342 2 710
borrowings
Operating liabilities 8 560 7 297 3 990 3 487
Deferred tax 676 636
liabilities
Current tax liabilities 29 20
Total liabilities 9 265 7 953
GEOGRAPHIC SEGMENTATION
Operating assets and 11 816 10 369 5 323 4 764
derivatives
- South Africa 9 684 8 958 4 002 4 032
- Rest of World 2 132 1 411 1 321 732
Trade and other 1 861 1 726 648 777
payables and provisions
and derivatives
- South Africa 1 281 1 267 201 502
- Rest of World 580 459 447 275
Interest-bearing 6 699 5 571 3 342 2 710
borrowings
- South Africa 5 676 5 001 2 712 2 423
- Rest of World 1 023 570 630 287
Net capital expenditure 1 386 2 784 724 1 539
- South Africa 876 1 963 290 881
- Rest of World 510 821 434 658
Construction and Passenger and
Mining Equipment Commercial Vehicles
Distributorships#
Unaudited Audited Unaudited Audited
31 30 June 31 December 30 June
December 2011 2011 2011
2011 Rm Rm Rm
Rm
BUSINESS SEGMENTATION
ASSETS
Intangible assets and 2 23 19
goodwill
Property, plant and 11 15 62 52
equipment
Leasing assets 2 765 2 576
Finance lease 107 90
receivables
Investment in associate
Other investments, 2 3
loans and derivatives
Inventories 386 544 55 44
Trade and other 232 232 208 139
receivables and
derivatives
Assets classifed as 412
held-for-sale
Operating assets and 1 148 883 3 115 2 833
derivatives
Deferred tax assets
Taxation in advance
Cash and cash
equivalents
Total assets
LIABILITIES
Trade and other 398 246 315 285
payables, provisions
and derivatives
Interest-bearing 646 578 1 707 1 379
borrowings
Operating liabilities 1 044 824 2 022 1 664
Deferred tax
liabilities
Current tax liabilities
Total liabilities
GEOGRAPHIC SEGMENTATION
Operating assets and 1 148 883 3 115 2 833
derivatives
- South Africa 1 087 809 2 851 2 606
- Rest of World 61 74 264 227
Trade and other 398 246 315 285
payables and provisions
and derivatives
- South Africa 356 182 267 229
- Rest of World 42 64 48 56
Interest-bearing 646 578 1 707 1 379
borrowings
- South Africa 646 574 1 686 1 359
- Rest of World 4 21 20
Net capital expenditure 1 (2) 476 838
- South Africa 1 (2) 455 764
- Rest of World 21 74
Industrial Equipment# Corporate office and
eliminations
Unaudited Audited Unaudited Audited
31 30 June 31 December 30 June
December 2011 2011 2011
2011 Rm Rm Rm
Rm
BUSINESS SEGMENTATION
ASSETS
Intangible assets and 1 1
goodwill
Property, plant and 135 126 117 31
equipment
Leasing assets 1 266 1 201 (136) (64)
Finance lease
receivables
Investment in associate 63
Other investments, 69 58
loans and derivatives
Inventories 500 337
Trade and other 280 228 (65) (29)
receivables and
derivatives
Assets classifed as
held-for-sale
Operating assets and 2 181 1 892 49 (3)
derivatives
Deferred tax assets
Taxation in advance
Cash and cash
equivalents
Total assets
LIABILITIES
Trade and other 443 343 57 75
payables, provisions
and derivatives
Interest-bearing 1 230 1 058 (226) (154)
borrowings
Operating liabilities 1 673 1 401 (169) (79)
Deferred tax
liabilities
Current tax liabilities
Total liabilities
GEOGRAPHIC SEGMENTATION
Operating assets and 2 181 1 892 49 (3)
derivatives
- South Africa 1 695 1 514 49 (3)
- Rest of World 486 378
Trade and other 443 343 57 75
payables and provisions
and derivatives
- South Africa 400 279 57 75
- Rest of World 43 64
Interest-bearing 1 230 1 058 (226) (154)
borrowings
- South Africa 858 799 (226) (154)
- Rest of World 372 259
Net capital expenditure 185 402 7
- South Africa 130 313 7
- Rest of World 55 89
#'Prior periods reclassified to reflect changes in reporting
structures
SEGMENT INFORMATION - CONDENSED INCOME STATEMENT
For the six months ended (unaudited)
Group Contract Miningand
Plant Rental##
31 31 December 31 December 31
December 2010 2011 December
2011 Rm Rm 2010
Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods 765 735
- Rendering of 3 246 2 878 1 840 1 647
services
- Other 11 3
4 022 3 616 1 840 1 647
Inter-segment revenue
4 022 3 616 1 840 1 647
Operating expenses (2 717) (2 462) (1 252) (1 158)
Depreciation and (879) (750) (408) (312)
amortisation
Recoupments (loss) on 29 5 (4)
sale of assets
Operating profit (loss) 455 404 185 173
Foreign exchange gains 10 (3) 2
(losses)
Fair value gains 15 (5)
(losses) on foreign
exchange derivatives
Net reversal of 35 35
impairment of assets
Profit (loss) before 515 396 222 173
net finance costs
Net finance (costs) (252) (215) (141) (103)
income
Profit (loss) before 263 181 81 70
taxation
Income tax (expense) (64) (50) (12) (17)
income
Profit (loss) for the 199 131 69 53
period from continuing
operations
Discontinued operations
Profit (loss) from 9 (3)
discontinued operations
Profit for the period 208 128 69 53
GEOGRAPHIC
SEGMENTATION-
CONTINUING OPERATIONS
Revenue 4 022 3 616 1 840 1 647
- South Africa 3 331 3 315 1 528 1 607
- Rest of World 691 301 312 40
Operating profit (loss) 455 404 185 173
- South Africa 377 375 134 170
- Rest of World 78 29 51 3
Net finance costs 252 215 141 103
(income)
- South Africa 226 206 121 103
- Rest of World 26 9 20
Construction and Passenger and
Mining Equipment Commercial Vehicles
Distributorships##
31 31 December 31 December 31
December 2010 2011 December
2011 Rm Rm 2010
Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods 132 167 218 164
- Rendering of 25 31 856 788
services
- Other 8
157 198 1 082 952
Inter-segment revenue 6 10 13 15
163 208 1 095 967
Operating expenses (162) (208) (610) (517)
Depreciation and (1) (1) (319) (300)
amortisation
Recoupments (loss) on 8 4
sale of assets
Operating profit (loss) (1) 174 154
Foreign exchange gain (2)
(loss)
Fair value gain (loss) (1) 1
on foreign exchange
derivatives
Net reversal of
impairment of assets
Profit (loss) before (1) (2) 174 154
net finance costs
Net finance (costs) (1) (4) (70) (69)
income
Profit (loss) before (2) (6) 104 85
taxation
Income tax (expense) 3 (32) (24)
income
Profit (loss) for the (2) (3) 72 61
period from continuing
operations
Discontinued operations
Profit (loss) from 9 (3)
discontinued operations
Profit for the period 7 (6) 72 61
GEOGRAPHIC
SEGMENTATION-
CONTINUING OPERATIONS
Revenue 163 208 1 095 967
- South Africa 163 208 1 011 893
- Rest of World 84 74
Operating profit (loss) (1) 174 154
- South Africa (1) 157 145
- Rest of World 17 9
Net finance costs 1 4 70 69
(income)
- South Africa 1 4 69 66
- Rest of World 1 3
Industrial Equipment## Corporate office and
eliminations
31 31 December 31 December 31
December 2010 2011 December
2011 Rm Rm 2010
Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods 415 404
- Rendering of 525 412
services
- Other 3 3
940 816 3 3
Inter-segment revenue (19) (25)
940 816 (16) (22)
Operating expenses (699) (579) 6
Depreciation and (156) (141) 5 4
amortisation
Recoupments (loss) on 2 14
sale of assets
Operating profit (loss) 87 96 9 (18)
Foreign exchange gain 9 (1) (1)
(loss)
Fair value gain (loss) 9 (6) 7
on foreign exchange
derivatives
Net reversal of
impairment of assets
Profit (loss) before 105 89 15 (18)
net finance costs
Net finance (costs) (50) (43) 10 4
income
Profit (loss) before 55 46 25 (14)
taxation
Income tax (expense) (13) (14) (7) 2
income
Profit (loss) for the 42 32 18 (12)
period from continuing
operations
Discontinued operations
Profit (loss) from
discontinued operations
Profit for the period 42 32 18 (12)
GEOGRAPHIC
SEGMENTATION-
CONTINUING OPERATIONS
Revenue 940 816 (16) (22)
- South Africa 645 678 (16) (22)
- Rest of World 295 138
Operating profit (loss) 87 96 9 (18)
- South Africa 77 89 9 (18)
- Rest of World 10 7
Net finance costs 50 43 (10) (4)
(income)
- South Africa 45 37 (10) (4)
- Rest of World 5 6
Registered office and business address 61 Maple Street, Pomona, Kempton Park,
1619PO Box 1050, Bedfordview, 2008
Non-executive directors NP Mageza*(Chairperson), MJ Croucamp*, S Dakile-
Hlongwane, VJ Mokoena*, SD Mthembi-Mahanyele*, AJ Phillips*, TDA Ross*
(*Independent)
Executive DIRECTORS E Clarke, WS Hill (CEO), JL Serfontein (CFO)1 CA(SA)
(1Preparer of financial results)
Company secretary L Moller
Transfer secretaries Computershare Investor Services (Proprietary) Limited 70
Marshall Street, Johannesburg, 2001 PO Box 61051, Marshalltown, 2107
www.eqstra.co.za
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 21/02/2012 07:30:01 Supplied by www.sharenet.co.za
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