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EQSTRA HOLDINGS LIMITED - Unaudited Interim Results for the Six Months Ended 31 December 2012

Release Date: 07/03/2013 09:45
Code(s): EQS     PDF:  
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Unaudited Interim Results 
for the Six Months Ended 31 December 2012

Eqstra Holdings Limited
1998/011672/06
Share code: EQS 
ISIN: ZAE000117123

UNAUDITED INTERIM RESULTS 
FOR THE SIX MONTHS ENDED 31 DECEMBER 2012

Revenue increased
7.0% to R4 302 million

Diluted headline earnings
per share increased
31.1% to 46.8 cents

Operating profit increased
17.1% to R533 million
                         
Profit before taxation excluding 
once-off impairments increased
15.8% to R264 million
                    
Cash generated by operations 
before working capital
changes increased
10.8% to R1 493 million

Revenue generating
assets increased
2.9% to R9 146 million

Introduction
Eqstra Holdings Limited ("the group") produced satisfactory results with an improvement in diluted
headline earnings per share in a challenging environment, entrenching the sustainability of the group.
- Revenue increased by 7.0% to R4 302 million (H1'12: R4 022 million) due to increased production
  volumes recorded by Contract Mining and Plant Rental, growth in leasing revenues in Fleet
  Management and Logistics and increased new unit sales in Industrial Equipment.

- Profit before taxation increased by 15.8% excluding the impact of impairments. Profit before
  taxation including impairments decreased by 6.8% to R245 million (H1'12: R263 million) mainly
  due to a weaker performance from Fleet Management and Logistics.

- Revenue-generating assets (leasing assets and finance lease receivables) increased by R262 million
  or 2.9% to R9 146 million (H2'12: R8 884 million) with good leasing asset growth recorded in Fleet
  Management and Logistics and Industrial Equipment. The leasing asset fleet of Contract Mining
  and Plant Rental has decreased marginally as expansionary capital expenditure was curtailed.

- Net finance costs increased by 5.6% to R266 million (H1'12: R252 million) as average debt levels
  increased during the period due to leasing asset growth.

- Working capital increased by R185 million on lower trade payables as a result of lower equipment
  purchases in Contract Mining and Plant Rental and lower inventory purchases in Construction and
  Mining Equipment.

- Net asset value increased by 7.7% to 745.1 cents per share (H2'12: 691.9 cents per share) and
  Return on Equity decreased to 12.3%.

- Diluted headline earnings increased by 31.1% to 46.8 cents per share, benefitting from an
  improved operating performance and the group's share buy-back programme.

Long-term debt funding
Total interest-bearing borrowings net of cash and cash equivalents increased by 8.2% to R7 082 million
(H2'12: R6 543 million). This is in line with the planned increase in revenue-generating assets linked to
long-term contracts.

The group complied with all bank debt covenants and achieved an interest cover (EBITDA) ratio of
5.4 times (H1'12: 5.4 times) and a capital adequacy ratio of 24.4% (H1'12: 23.0%).

The board is satisfied that the group has sufficient facilities in place to meet anticipated liquidity
requirements and that medium-term refinancing objectives have been achieved.

Divisional review
Industrial Equipment
                                                For the six months ended                    Year ended
                            31 December 2012        31 December 2011       30 June 2012   30 June 2012
Rm                                        Rm                      Rm                 Rm             Rm
Revenue                                1 088                     940              1 038          1 978
Operating profit                         117                      87                117            204
Net finance costs                       (52)                    (50)               (38)           (88)
Profit before taxation                    60                      55                 75            130
PBT margin                              5.5%                    5.9%               7.2%           6.6%
Revenue generating assets              1 669                   1 266              1 523          1 523

The division reported a commendable business performance with the South African forklift market share
increasing for the period despite the negative effects of foreign exchange movements. The increased sale of
equipment into the leasing fleet produced a positive shift towards annuity income business. The Heavy Lift
business unit (Konecranes port equipment and Terex mobile cranes) continued its good performance with a solid
order book for the second half. Impact Handling (UK) delivered a positive performance notwithstanding
manufacturer delivery constraints due to a factory relocation from Europe to China. Acquisitions made in the prior
period (600SA and Air Supreme) were successfully integrated and are profitable. The division's diversification
strategy is aimed at reducing dependence on the forklift business, which now accounts for 71% of divisional
revenue (H1'12: 81%). The growth in revenue-generating assets bodes well for future earnings growth.

Fleet Management and Logistics
                                                For the six months ended                    Year ended
                            31 December 2012        31 December 2011       30 June 2012    30 June 2012
Rm                                        Rm                      Rm                 Rm              Rm
Revenue                                1 124                   1 095              1 066           2 161
Operating profit                         174                     174                183             357
Net finance costs                       (81)                    (70)               (67)           (137)
Profit before taxation                    92                     104                115             219
PBT margin                              8.2%                    9.5%              10.8%           10.1%
Revenue generating assets              2 971                   2 765              2 804           2 804

The division reported weaker results mainly as a result of non-recurring items. Revenue increased by 2.6%
on growth in the leasing fleet and additional corporate leasing customers were secured that provide further
scope for fleet growth and value-added products. Profit before taxation decreased by 11.5% due to the
reduced scope of the renewed Clover contract, the subsequent closure of the tanker manufacturing unit and
lower interest rates. End-of-lease vehicle remarketing also registered lower sales margins in a flat used vehicle
market. Revenue-generating assets grew by 6.0% with the initial negative impact of growing the leasing fleet
also impacting earnings growth. The non-asset based City of Johannesburg contract has been concluded
and will contribute in H2'13. The commodity logistics turnaround has been successful and the business unit
is now profitable, with further rationalisation required by either selling or discontinuing value destroying
logistics activities.

Contract Mining and Plant Rental
                                                For the six months ended                   Year ended
                            31 December 2012         31 December 2011     30 June 2012   30 June 2012
Rm                                        Rm                       Rm               Rm             Rm
Revenue                                2 022                    1 840            1 867          3 707
Operating profit                         246                      185              137            322
Net finance costs                      (138)                    (141)            (136)          (277)
Profit before taxation                    90                       81               28            109
PBT margin                              4.5%                     4.4%             1.5%           2.9%
Revenue generating assets              4 450                    4 511            4 517          4 517

The turnaround strategy in South Africa gained traction and the continued good performance of the
Benga project in Mozambique resulted in operating profit increasing a significant 33.0%.

Revenue improved in line with increased volumes and decreased mine site specific industrial action
compared to the prior year comparative period. Plant rental revenue in South Africa grew marginally in a
depressed construction sector, with increased activity in Mozambique and Namibia.

Operating margin improved to 12.2% (H1'12: 10.2%). Curtailment of losses on the Pilanesburg Platinum
Mine contract and no direct industrial action hampering operations in a period where the mining industry
was ravaged by volatile industrial action, contributed to this improved performance. The loss making
Nkomati Nickel contract remains challenging but management changes, site reorganisation and pending
renegotiated contract terms are expected to curb further losses.

Profit before taxation increased by 11.1%. However, taking into account the R35 million net impairment
reversal in the prior year comparative period and the current period impairment of R18 million for sub-
standard tyres purchased, the division's sustainable profit before taxation performance showed a strong
R62 million improvement.

Construction and Mining Equipment
                                                    For the six months ended                  Year ended
                                31 December 2012      31 December 2011       30 June 2012   30 June 2012
Rm                                            Rm                    Rm                 Rm             Rm
Revenue                                      150                   163                 89            452
Operating (loss) profit                     (10)                                       5              5
Net finance costs                              5                   (1)                  4              3
(Loss) profit before taxation                (3)                   (2)                  3              1
PBT margin                                (2.0%)                (1.2%)               1.0%           0.2%
Inventories                                  237                   386                269            269

Tough operating conditions as a result of the commodity market slowdown resulted in a marked
slowdown in demand for mining equipment. The construction and mining equipment market is presently
overstocked and highly price competitive, whilst the division is well positioned in terms of its low stock
levels of new equipment. Consolidation, right-sizing and restructuring of the division was undertaken
following the discontinuation of the New Holland Construction distributorship, the sale of Eqstra Mining
Services (Bucyrus), as well as the move to new premises. Service and parts revenues improved
significantly as the division rebuilds its presence in the onsite mining services market.

Share buy-back
During the period 9.3 million ordinary shares to the value of R62.6 million were repurchased and
subsequently cancelled.

Dividend
No interim dividend has been declared in line with the group's dividend policy.

Outlook
The performance of the group's operations is expected to remain resilient while the general economic
environment remains under pressure. All divisions should benefit from secure long-term contracts and
good prospects for increased client penetration from contract renewals, value-added product sales and
additions to the group's product range.

By order of the board

NP Mageza					WS Hill
Chairperson					Chief Executive Officer

6 March 2013

CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
as at

                                                         Unaudited      Unaudited   Audited
                                                       31 December    31 December   30 June
                                                              2012           2011      2012
                                                                Rm             Rm        Rm
ASSETS
Non-current assets                                           9 843          9 174     9 553
Intangible assets                                               66             24        51
Property, plant and equipment                                  522            455       500
Leasing assets                                               9 041          8 406     8 755
Deferred tax assets                                             29             52        30
Finance lease receivables                                       40             81        59
Investment in associate company                                               63         
Other investments, loans and derivatives(2)                    145             93       158
Current assets                                               2 515          2 856     3 036
Inventories                                                    949          1 017       811
Trade and other receivables and derivatives                  1 284          1 239     1 533
Finance lease receivables                                       65             26        70
Taxation in advance                                             18              8        12
Cash and cash equivalents                                      199            154       610
Assets classified as held-for-sale(3)                                        412         

Total assets                                                12 358         12 030    12 589
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium                                    1 866          1 994     1 929
Other reserves                                                 135            116       106
Retained income                                                997            639       931
Equity attributable to owners of the parent                  2 998          2 749     2 966
Non-controlling interests                                       16             16        14
Total equity                                                 3 014          2 765     2 980
Non-current liabilities                                      6 706          5 782     6 498
Interest-bearing borrowings                                  5 968          5 106     5 801
Deferred tax liabilities                                       738            676       697
Current liabilities                                          2 638          3 483     3 111
Trade and other payables, provisions and derivatives         1 310          1 861     1 747
Current tax liabilities                                         15             29        12
Current portion of interest-bearing borrowings(4)            1 313          1 593     1 352

Total equity and liabilities                                12 358         12 030    12 589

CONDENSED GROUP INCOME STATEMENT
                                                                   Unaudited                   Audited
                                                            For the six months ended        Year ended
                                                        31 December        31 December         30 June
                                                               2012               2011            2012
                                                                 Rm                 Rm              Rm
Continuing operations
Revenue                                                       4 302              4 022           8 143
Profit from operations before depreciation and
recoupments                                                   1 431              1 305           2 596
Depreciation and amortisation                                 (907)              (879)         (1 744)
Recoupments                                                       9                 29              41
Operating profit                                                533                455             893
Foreign exchange (losses)/gains                                 (3)                25              46
Net (impairment)/reversal of impairment of
leasing assets                                                  (19)                35              30
Profit before net finance costs                                  511               515             969
Net finance costs                                              (266)             (252)           (481)
Finance costs including fair value gain(6)                     (281)             (264)           (507)
Finance income                                                    15                12              26

Profit before taxation                                           245               263             488
Income tax expense                                              (60)              (64)           (111)
Profit for the period from continuing operations                 185               199             377

Discontinued operations
(Loss)/Profit from discontinued operations, including
profit on sale of discontinued operation                         (2)                 9             111
Profit for the period                                            183               208             488
Attributable to:
Owners of the parent                                             181               207             486
  Profit for the period from continuing operations              183               198             375
  (Loss)/Profit for the period from discontinuing
   operations                                                    (2)                 9             111
Non-controlling interests                                          2                 1               2
Profit for the period                                            183               208             488
                                                               Cents             Cents           Cents
Earnings per share from continuing operations
  Basic earnings per share                                     45.1              47.1            89.4
  Diluted earnings per share                                   45.1              45.7            88.0

CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
                                                                 Unaudited                  Audited
                                                         For the six months ended         Year ended
                                                      31 December       31 December          30 June
                                                             2012              2011             2012
                                                               Rm                Rm               Rm
Profit for the period                                         183               208              488
Total other comprehensive income for the period	
(net of taxation)                                              28                84               77
Exchange differences on translation
of foreign subsidiaries                                        15                54               27
Net fair-value gain on cash flow hedges
and other fair-value reserves                                  13                30               50

Total comprehensive income for the period 	
(net of taxation)                                             211               292              565
Attributable to:
Owners of the parent                                          209               291              563
  Profit for the period from continuing operations           211               282              452
  (Loss)/Profit for the period from discontinued
   operations                                                 (2)                 9              111
Non-controlling interests                                       2                 1                2
                                                              211               292              565

CONDENSED GROUP DISCONTINUED OPERATIONS
INCOME STATEMENT
                                                                              Unaudited                     Audited
                                                                      For the six months ended           Year ended
                                                                      31 December         31 December       30 June
                                                                             2012                2011          2012
                                                                               Rm                  Rm            Rm
Revenue                                                                        22                 380         1 120
Profit from operations before depreciation 	
and recoupments                                                                 1                  35            85
Depreciation, amortisation and recoupments                                                       (1)           (8)
Operating profit                                                                1                  34            77
Foreign exchange gains/(losses)                                                                    1          (19)
Profit before net finance costs                                                 1                  35            58
Net finance costs                                                              (3)               (16)          (48)
(Loss)/Profit before taxation                                                  (2)                 19            10
Income tax expense                                                                              (10)          (36)
(Loss)/Profit for the period                                                   (2)                  9          (26)

*  The above discontinuing operations form part of the Construction and Mining Equipment segment
The profit from discontinued operations, including profit
on sale of discontinued operation comprises:
Loss/(Profit) from discontinued operations (refer above)                       (2)                  9          (26)
Profit on disposal of discontinued operation
(net of taxation)                                                                                             137
                                                                               (2)                  9           111
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY

                                         Share                                 Non-
                                   capital and      Other   Retained    controlling
                                       premium   reserves     income      interests    Total
                                            Rm         Rm         Rm             Rm       Rm
Balance at 1 July 2011                   2 060         31        578             19    2 688
Total comprehensive
income for the period                                 84        207              1      292
Profit for the period                                          207              1      208
Other comprehensive income for
the period (net of taxation)                          84                               84
Net share-based payment reversal                    (12)                             (12)
Revaluation of Lereko call option                      4                                4
Dividends paid                                               (105)                  (105)
Other movements                           (66)          9       (41)            (4)    (102)
Balance at 31 December 2011              1 994        116        639             16    2 765
Total comprehensive income
for the period                                       (7)        279              1      273
Profit for the period                                          279              1      280
Other comprehensive loss for
the period (net of taxation)                          (7)                              (7)
Net share-based payment reversal                      (9)                              (9)
Revaluation of Lereko call option                     (2)                              (2)
Dividends paid                                                               (3)       (3)
Other movements                           (65)          8         13                    (44)
Balance at 30 June 2012                  1 929        106        931             14    2 980
Total comprehensive income
for the period                                        28        181              2      211
Profit for the period                                          181              2      183
Other comprehensive income for
the period net of taxation                            28                               28
Net share-based payment expense                        9                                9
Revaluation of Lereko call option                    (5)                               (5)
Dividends paid                                               (115)                   (115)
Other movements                           (63)        (3)                              (66)
Balance at 31 December 2012              1 866        135        997             16    3 014

CONDENSED GROUP STATEMENT OF CASH FLOWS
                                                                  Unaudited                      Audited
                                                          For the six months ended            Year ended
                                                       31 December        31 December            30 June
                                                              2012               2011               2012
                                                                Rm                 Rm                 Rm
Cash flows from operating activities
Cash generated by operations before working capital
movements                                                    1 493              1 348              2 668
Working capital movements                                    (185)              (471)              (250)
Cash generated by operations                                 1 308                877              2 418
Finance income                                                  15                 12                 27
Finance cost                                                 (293)              (287)              (565)
Taxation paid                                                 (24)                (3)               (59)
Net cash flows from operating activities                     1 006                599              1 821
Cash flows from investing activities
Disposal of businesses                                                                             424
Acquisition of businesses                                     (32)               (53)               (53)
Net capital expenditure                                    (1 288)            (1 386)            (2 904)
Movement in finance lease receivables                           39                  7               (39)
Movement in other investments and loans                          3                (9)                (3)
Net cash flows from investing activities                   (1 278)            (1 441)            (2 575)
Cash flows from financing activities
Repurchase of non-controlling interest                                           (6)                (6)
Transactions with shareholders                               (178)              (184)              (239)
Increase in interest-bearing borrowings                         41                991              1 417
Net cash flows from financing activities                     (137)                801              1 172
Net/(Decrease) increase in cash and cash equivalents         (409)               (41)                418
Effect of exchange rate translation on 	
cash and cash equivalents                                      (2)                  4                  1
Cash and cash equivalents at beginning of period               610                191                191
Cash and cash equivalents at end of period                     199                154                610

Segment information  condensed statement of financial position
As at
                                                                   Contract Mining	           Construction and Mining      Fleet Management and                                       Corporate office and
                                             Group                 and Plant Rental                     Equipment                     Logistics           Industrial Equipment                eliminations
                                   31 December      30 June   31 December          30 June  31 December        30 June   31 December       30 June   31 December       30 June   31 December            30 June
                                          2012         2012          2012             2012         2012           2012          2012          2012          2012          2012          2012               2012
                                            Rm           Rm            Rm               Rm           Rm             Rm            Rm            Rm            Rm            Rm            Rm                 Rm
                                     Unaudited      Audited     Unaudited          Audited    Unaudited        Audited     Unaudited     Unaudited     Unaudited       Audited     Unaudited            Audited
BUSINESS SEGMENTATION
ASSETS
Intangible assets                           66           51            19               14                                      45            34                                       2                  3
Property, plant and equipment              522          500           157              152            5              4            75            62           158           142           127                140
Leasing assets                           9 041        8 755         4 450            4 517           52             38         2 960         2 795         1 669         1 523           (90)              (118)
Finance lease receivables                  105          129                                        94            120            11             9                                                         
Other investments and loans                104          124             2               12                                       5             7                                      97                105
Inventories                                949          811            80               97          237            269            76            53           556           392                               
Trade and other receivables and
derivatives                              1 325        1 567           582              767           94            265           253           179           322           305            74                 51
Operating assets and derivatives        12 112       11 937         5 290            5 559          482            696         3 425         3 139         2 705         2 362           210                181
Deferred tax assets                         29           30
Taxation in advance                         18           12
Cash and cash equivalents                  199          610
Total assets                            12 358       12 589
LIABILITIES
Trade and other payables
and derivatives                          1 310        1 747           422               611          84            286           308           317           405           406            91                127
Interest-bearing borrowings              7 281        7 153         3 366             3 436         291            284         2 065         1 809         1 600         1 326           (41)               298
Operating liabilities                    8 591        8 900         3 788             4 047         375            570         2 373         2 126         2 005         1 732            50                425
Deferred tax liabilities                   738          697
Current tax liabilities                     15           12
Total liabilities                        9 344        9 609
GEOGRAPHIC SEGMENTATION
Operating assets                        12 112       11 937         5 290             5 559         482            696         3 425         3 139         2 705         2 362           210                181
 South Africa                           9 906        9 673         3 976             4 134         469            668         3 192         2 900         2 059         1 790           210                181
 Rest of World                          2 206        2 264         1 314             1 425          13             28           233           239           646           572                               
Trade and other payables 	
and derivatives                          1 310        1 747           422               611          84            286           308           317           405           406            91                127
 South Africa                           1 114        1 498           332               491          83            278           267           265           341           337            91                127
 Rest of World                            196          249            90               120           1              8            41            52            64            69                               
Interest-bearing borrowings              7 281        7 153         3 366             3 436         291            284         2 065         1 809         1 600         1 326           (41)               298
 South Africa                           5 899        5 891         2 593             2 669         291            283         1 943         1 726         1 113           915           (41)               298
 Rest of World                          1 382        1 262           773               767                         1           122            83           487           411                               
Net capital expenditure                  1 288        2 904           307             1 159          23             (4)          645         1 027           313           703                              19
 South Africa                           1 097        2 085           234               682          23             (4)          607           969           233           419                              19
 Rest of World                            191          819            73               477                                     38            58            80           284                               

Segment information  condensed income statement
For the six months ended (unaudited)
                                                                     Contract Mining	            Construction and Mining       Fleet Management and                                      Corporate office and
                                               Group                  and Plant Rental                  Equipment                      Logistics              Industrial Equipment               eliminations
                                     31 December    31 December 31 December        31 December   31 December    31 December   31 December    31 December  31 December       31 December  31 December       31 December
                                            2012           2011        2012               2011          2012           2011          2012           2011         2012              2011         2012              2011
                                              Rm             Rm          Rm                 Rm            Rm             Rm            Rm             Rm           Rm                Rm           Rm                Rm
BUSINESS SEGMENTATION
Revenue
 Sales of goods                             873            765                                         84            132           210            218          579               415                             
 Rendering of services and other          3 429          3 257        2 022             1 840            48             25           846            864          509               525            4                 3
                                           4 302          4 022        2 022             1 840           132            157         1 056          1 082        1 088               940            4                 3
Inter-segment revenue                                                                                 18              6            68             13                                       (86)              (19)
                                           4 302          4 022        2 022             1 840           150            163         1 124          1 095        1 088               940          (82)              (16)
Net operating expenses                    (2 871)        (2 717)      (1 373)           (1 252)         (150)          (162)         (638)          (610)        (797)             (699)          87                 6
Depreciation and amortisation               (907)          (879)        (408)             (408)          (10)            (1)         (319)          (319)        (174)             (156)           4                 5
Recoupments                                    9             29            5                 5                                        7              8                             2           (3)               14
Operating profit (loss)                      533            455          246               185           (10)                        174            174          117                87            6                 9
Foreign exchange (losses) gains               (3)            25                             2             2             (1)                                     (5)               18                             6
Net (impairment) reversal of
impairment of leasing assets                 (19)            35          (18)               35                                       (1)                                                                       
Profit (loss) before net finance
costs                                        511            515          228               222            (8)            (1)          173            174          112               105            6                15
Net finance (costs) income                  (266)          (252)        (138)             (141)            5             (1)          (81)           (70)         (52)              (50)                           10
Profit (loss) before taxation                245            263           90                81            (3)            (2)           92            104           60                55            6                25
Income tax expense                           (60)           (64)         (16)              (12)           (2)                        (26)           (32)         (15)              (13)          (1)               (7)
Profit (loss) before taxation 	
from continuing operations                   185            199           74                69            (5)            (2)           66             72           45                42            5                18
(Loss) profit from discontinued
operations                                    (2)             9                                         (2)             9                                                                                     
Profit (loss) for the period                 183            208           74                69            (7)             7            66             72           45                42            5                18
GEOGRAPHIC SEGMENTATION
Revenue                                    4 302          4 022        2 022             1 840           150            163         1 124          1 095        1 088               940          (82)              (16)
 South Africa                             3 594          3 331        1 635             1 528           143            163         1 033          1 011          865               754          (82)              (16)
 Rest of World                              708            691          387               312             7                          91             84          223               186                             
Operating profit (loss)                      533            455          246               185           (10)                        174            174          117                87            6                 9
 South Africa                               414            377          180               134           (11)                        156            157          103                77            6                 9
 Rest of World                              119             78           66                51             1                          18             17           14                10                             
Net finance costs (income)                   266            252          138               141            (5)             1            81             70           52                50                           (10)
 South Africa                               232            226          113               121            (6)             1            80             69           45                45                           (10)
 Rest of World                               34             26           25                20             1                           1              1            7                 5                             

CONDENSED GROUP STATEMENT OF DISCONTINUED
CASH FLOWS
                                                      Unaudited                     Audited
                                              For the six months ended           Year ended
                                             31 December         31 December        30 June
                                                    2012                2011           2012
                                                     Rm                   Rm             Rm
Net cash flows from operating activities             (2)                 (99)           (43)
Net cash flows from investing activities                                              425
Net cash flows from financing activities              2                   99           (382)
Net change in cash and cash equivalents                                                 

NOTES

(1)  Basis of preparation
     The unaudited condensed consolidated interim financial statements for the six months ended
     31 December 2012 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 Listings 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 2012 annual report, except for the adoption on 1 July 2012 of
     those new, revised and amended standards and interpretations in Eqstra's 2012 annual report.
     The adoption of the new and amended statements of generally accepted accounting practice,
     interpretations of statements of generally accepted accounting practice, and improvements
     project amendments has not had an effect on the group's interim financial results.

(2) Other investments, loans and derivatives
                                                          31 December      31 December            30 June
                                                                 2012             2011               2012
                                                                   Rm               Rm                 Rm
                                                            Unaudited        Unaudited            Audited
      Listed, at market value                                     63               11                 66
      Unlisted, at fair value or directors' valuation             37               47                 42
      Loans receivable                                             4               10                 16
      Derivative financial asset                                  41               25                 34
                                                                  145               93                158

(3) Assets classified as held-for-sale
      Property, plant and equipment and intangibles                                4                  
      Inventories                                                                408                  
                                                                                  412                  

(4) Current portion of interest-bearing borrowings
     The current portion of interest-bearing borrowings includes R750 million (June 2012: R529 million)
     commercial paper that is supported by a R1 000 million standby liquidity facility that has an 13-month
     rolling notice period.

(5) Capital commitments
                                                                1 131            1 950              2 402
      Contracted                                                 464              685                489
      Authorised by directors but not contracted                 667            1 265              1 913
     Contingent liabilities                                                         5                  

     The expenditure is substantially for the acquisition and replacement of leasing assets. Expenditure
     will be financed from cash generated from operations and existing banking facilities.

(6) Finance costs including fair-value gains
    Finance expense                                               291              271                516
    Fair-value gain on borrowings and interest swaps
    (unrealised)                                                  (10)              (7)                (9)
                                                                  281              264                507

(7) Net asset value per share attributable to owners of the parent
                                                                Cents            Cents              Cents
                                                                745.6            641.2              691.9

(8) Headline earnings per share  continuing operations
     Basic headline earnings per share                          46.8             36.8               77.2
     Diluted headline earnings per share                        46.8             35.7               76.0
    Reconciliation of earnings per share 
    Basic earnings per share                                     45.1             47.1               89.4
    Profit on sale of property, plant and equipment
    and leasing assets                                           (2.3)            (6.1)              (9.8)
    Net impairments (reversal of impairment)
    of leasing assets                                             4.7             (8.3)              (7.2)
    Taxation effect                                              (0.7)             4.1                4.8
    Headline earnings per share                                  46.8             36.8               77.2

(9) Weighted average number of shares in issue for the period
                                                              Million          Million            Million
    Number of ordinary shares
     in issue                                                 419. 4           428. 7             428. 7
    Weighted average number of ordinary shares in
    issue duing the period                                      406.0           420. 1             419. 6
     opening shares (net of treasury shares)                  411. 4           419. 4             419. 4
     conversion of A deferred ordinary shares                                  0.7                0.8
     purchase of treasury shares                                                                  (0.6)
     share buy back                                             (5.4)                                 
     dilutionary effect of deferred ordinary shares                             12.9                6.5
    Diluted weighted average number
    of ordinary shares                                          406.0            433.0              426.1

NAME AND REGISTRATION NUMBER
Eqstra Holdings Limited
1998/011672/06
Share code: EQS 
ISIN: ZAE000117123

REGISTERED OFFICE AND BUSINESS ADDRESS
61 Maple Street, Pomona, Kempton Park, 1619
PO Box 1050, Bedfordview, 2008

NON-EXECUTIVE DIRECTORS 	
NP Mageza*(Chairperson), MJ Croucamp*, S Dakile-Hlongwane, GG Gelink*#,
VJ Mokoena*, SD Mthembi-Mahanyele*, AJ Phillips*, TDA Ross*
(#Appointed 13 November 2012) (*Independent)

EXECUTIVE DIRECTORS
E Clarke, WS Hill (CEO), JL Serfontein (CFO)(1) CA(SA) (1)(Preparer of financial results)

COMPANY SECRETARY 	
L Möller

TRANSFER SECRETARIES 	
Computershare Investor Services (Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107

7 March 2013

SPONSOR
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
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