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IMPERIAL HOLDINGS LIMITED - Preliminary summarised audited results for the year ended 30 June 2016

Release Date: 23/08/2016 07:05
Code(s): IPL IPLP     PDF:  
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Preliminary summarised audited results for the year ended 30 June 2016

Imperial Holdings limited
Incorporated in the Republic of South Africa
Registration number: 1946/021048/06
Ordinary share code: IPL ISIN: ZAE000067211
Preference share code: IPLP ISIN: ZAE000088076
(‘Imperial’ or ‘Company’ or ‘Group’)

Preliminary summarised audited results for the year ended 30 June 2016

Imperial Holdings is a JSE listed, South African-based international Group of companies, active in two chosen areas of mobility:

- Logistics: consumer and industrial logistics which make up 40% and 42% of Group* revenue and operating profit respectively, with 71% of the operating
  profit generated internationally; and
- Vehicles: vehicle import, distribution, dealerships, rental, aftermarket parts, and vehicle-related financial services, which make up 60% and 58% of Group*
  revenue and operating profit respectively, with 11% of the operating profit generated internationally.
* Excluding Regent, head Office and eliminations

Imperial employs over 51 000 people who generate annual revenues in excess of R118 billion mainly in Africa and Europe.

Our performance

Group financial highlights
Revenue up 8% to R118,8 billion (42% foreign)
Operating profit up 3% to R6,4 billion (36% foreign)
Foreign revenue increased 23% to R49,7 billion (42% of group* revenue)
Foreign operating profit increased 18% to R2,2 billion (36% of group* operating profit)
EPS and core EPS unchanged at 1581 and 1747 cents per share respectively
HEPS down 3% to 1579 cents per share
Return on equity 15,6%
Full year dividend unchanged at 795 cents per share
Non-vehicle revenue increased 8% to R47,9 billion (40% of group* revenue)
Non-vehicle operating profit remained flat at R2,5 billion (42% of group* operating profit)
Return on invested capital 12,4%
Weighted average cost of capital 10,2%
Cash generated by operations of R9,0 billion
Net working capital increased by 7% to R9,9 billion

* Excluding Regent, head office and eliminations. Motor Related Financial Services now included in Vehicles.

Results overview
- Total revenue and operating profit for the Imperial Group grew 8% to R118,8 billion and 3% to R6,4 billion respectively, supported by the inclusion of the
  Imres and S&B Commercials acquisitions for the full year, and strong performances from the Vehicle Import, Distribution and Dealerships division and the
  Logistics Rest of Africa sub-division.
- Revenue and operating profit from continuing operations, excluding Regent, was up 8% to R115,7 billion and 4% to R5,9 billion respectively.
- The Group's operating margin from continuing operations remained stable at 5,1%.
- Foreign revenue increased 23% to R49,7 billion (42% of Group* revenue) and foreign operating profit increased 18% to R2,2 billion (36% of Group*
  operating profit).
- Non-vehicle revenue increased 8% to R47,9 billion (40% of Group* revenue) and operating profit remained flat at R2,5 billion (42% of Group*
  operating profit).
- A full reconciliation from earnings to headline earnings and core earnings is provided in the Group Financial Performance section.
- Cash flow from operating activities before capital expenditure on rental assets was R4,8 billion from R6,6 billion in the prior year.
- Net working capital from continuing operations increased 7% to R9,9 billion compared to the prior year, despite an 8% increase in turnover and the
  higher increase in the Rand cost of imported vehicles, which increased the carrying value of inventory.
- The net debt to equity ratio (including preference shares as equity) increased from 66% in June 2015 to 73% at year-end (76% at December 2015).

* Excluding Regent, head office and eliminations. Motor Related Financial Services now included in Vehicles.

Environment
In April 2016 the IMF lowered its global growth forecasts for 2016 to 3,2% and 3,5% for 2017. With a footprint in more than 30 countries on 5 continents,
Imperial is affected by global and local economic conditions.

South Africa
The economy has tightened and the trading environment remains challenging in South Africa, where R66 billion or 58% of Group revenue and R3,7 billion
or 64% of Group operating profit was generated in the 12 months to June 2016. National GDP growth forecasts have been lowered to 0,1% in 2016 and
1,0% for 2017.

Specific factors that affected Imperial during the financial year were: a 27% decline in the average R/$ exchange rate; an 8% decline in national new
vehicle sales; a sharp decline in commodity, chemical and fuel volumes; declining consumer confidence and rising interest rates that depressed personal
consumption expenditure and consumer goods volumes.

Rest of Africa
Falling commodity demand, lower oil prices and the consequent impact on currencies and private consumption have reduced the growth rate in the Rest of
Africa, where R13,3 billion or 11% of Group revenue and R853 million or 14% of Group operating profit was generated in 2016. The weakness of the Rand
also assisted results.

Specific factors that affected Imperial during the financial year were: slowing growth rates, and currency volatility and devaluation.

Against this background we provide shareholders with current information on the Group's strategy and performance.

Eurozone and United Kingdom (UK)
A slow economic recovery continued and trading conditions were satisfactory in the Eurozone, where R36,4 billion or 31% of Group revenue and R1,3 billion
or 22% of Group operating profit was generated in 2016.

Specific factors that affected Imperial during the financial year were: low water levels that depressed the profitability of inland shipping in the first half; solid
UK economic growth; and the weakening of the Rand against the Pound and Euro, which assisted Rand denominated results for the UK and Eurozone
businesses.

Delivering on our investment case
Imperial strives to create long term value for stakeholders through strategic clarity, financial discipline, operational excellence and strictly defined capital
allocation principles.

Notwithstanding current environmental challenges, Imperial's investment thesis remains unchanged and steady progress as detailed below is being
registered with each of the following five capital allocation objectives:

1. To release capital and sharpen executive focus, by disposing non-core, strategically misaligned, underperforming or low return on effort assets.
    - Although certain transactions are still subject to regulatory approval, businesses and assets to the value of R5,2 billion have been disposed.
      R2,4 billion cash had been received by year end.
    - Over the next twelve to eighteen months the Group intends disposing of mainly non-strategic properties (sale or sale and leaseback) in a number of
      unrelated transactions in various jurisdictions amounting to R2,6 billion.
2. We will invest capital in South Africa to maintain the quality of assets and market leadership in our logistics and motor vehicle businesses.
    - Various acquisitions have been made, the most notable being the 10% minority in AMH for R750 million, and a further 14% minority in Midas
      for R112,5 million.
    - In addition, R2,6 billion of capital was invested in South Africa in continuing operations.
3. We will invest capital in the Rest of Africa primarily to achieve our 2020 objective for the revenue and profits generated in that region to equal that of
    our South African logistics business, and secondarily to expand our vehicle businesses in the region.
    - Two small companies were acquired for R37 million.
    - Vehicle distribution agreements were concluded in 6 African countries.
    - Capital of R416 million was invested to sustain the high organic growth rate.
4. We will invest the cash generated from operations and divestments to grow our businesses beyond the continent, but with an emphasis on logistics.
    - Logistics acquisitions included Van den Anker in Netherlands, a further 10% investment in Imres (Netherlands-based) in which we now own 80% and
      post year-end we acquired 95% of Palletways for £155,1 million (R3,0 billion).
    - Humberside Tail Lifts was acquired by our UK commercial vehicle business.
    - Capital of R1,1 billion was invested outside of Africa, mainly in logistics in Europe and South America.
5. The development and sustainability of Imperial will be underpinned by investment in human capital and information systems.
    - Group wide investments in human capital development and information systems amounted to R500 million.

Divisional performance

Logistics Africa
                                                         % change                   % change
                                                  HY1      on HY1           HY2       on HY2                               % change
                                                 2016        2015          2016         2015         2016         2015      on 2015

Revenue (Rm)                                   13 714           3        13,405           11       27 119       25 347            7
Operating profit (Rm)                             802                       728           (8)       1 530        1 587           (4)
Operating margin (%)                              5,9                       5,5                       5,6          6,3

Return on Invested Capital (%)                                                                       11,3         13,3*
Weighted average cost of capital (%)                                                                 10,0          8,3*

* restated to new calculation method. See glossary of terms.


In South Africa, challenging trading conditions continued to put pressure on the division's revenue and profitability due to soft volumes particularly in the
manufacturing, commodities, fuel and chemicals sectors. This was partially offset by new contract gains and pleasing performances from Resolve, Imperial
Managed Solutions and Imperial Health Sciences. While revenue was up 7%, operating profit declined 4%.

The industrial logistics businesses servicing the manufacturing, commodities, chemicals, fuel and construction industries continued to experience declining
volumes, which depressed revenue growth and operating profits.

The consumer logistics businesses recorded revenue growth but operating profit was depressed. This was due mainly to a new systems implementation, a
competitive environment and the underperformance of the Cold Logistics business resulting from under-utilisation of its facilities as customers experienced
lower demand.

Despite the challenging market conditions in South Africa, the business will continue to invest in people, capabilities and assets that will help deliver the
required returns for the group's shareholders. With a more asset-light strategy and a renewed focus on customers' needs and relationship development, the
business will add further impetus to its drive to develop customised solutions to better service clients and improve their efficiencies.

The division's operations in the Rest of Africa continued to perform strongly, with revenue and operating profit growing by 19% and 23% respectively,
despite challenging trading conditions that worsened in the second half of the year. Operating profit at R780 million exceeded that of the South African
logistics business for the first time. This performance was supported by volume growth, the contribution of our businesses in the pharmaceuticals sector, and
the inclusion of Imres for the full 12 months. The sub-division continues to expand in sub-Saharan Africa by leveraging its asset-light managed logistics
capabilities and extending its focus from traditional road transport to include cross-border and international logistics services and warehousing operations.
Expansion into new markets and partnerships with new principals during 2016 continued to deliver favourable results. The strategy to be a significant
provider of consumer goods and pharmaceutical products routes-to-market in Southern, East and West Africa is on track with acquisitions performing in line
with or ahead of expectations.

Net capital expenditure of R880 million was incurred (2015: R1,0 billion) in the Logistics Africa division, mainly attributable to the transport fleet and
property investments.


Logistics International
                                                         % change                   % change
                                                  HY1      on HY1           HY2       on HY2                               % change
                                                 2016        2015          2016         2015         2016         2015      on 2015

Revenue (Rm)                                   10 306           7        10 487           11       20 793       19 071            9
Operating profit (Rm)                             397           3           616            8        1 013          958            6
Operating margin (%)                               3,9                      5,9                       4,9          5,0

Return on Invested Capital (%)                                                                        9,8         10,7*
Weighted average cost of capital (%)                                                                  6,7          6,4*

Revenue (Euro million)                            688           2           610          (15)       1 298        1 391           (7)
Operating profit (Euro million)                    27                        36          (16)          63           70          (10)
Operating margin (%)                              3,9                       5,9                       4,9          5,0

* Restated to new calculation method. See glossary of terms.


On the 1st July 2015 the business was restructured into two divisions focussing its service offerings: Imperial Transport Solutions and Imperial Supply Chain
Solutions. This has improved visibility and clarity for its client base, and together with a centralised sales capability, has already resulted in contract gains,
with opportunities for simplification and cost reduction being exploited.

Logistics International's revenue and operating profit in Euros declined 7% and 10% respectively, due mainly to strategic disposals (largely Neska and
Rijnaarde). However, adjusted for disposals and acquisitions, the division's Euro revenues and operating profit both increased by 4%. Other factors impacting
the results were slow economic growth which suppressed volumes, increased labour costs in certain of the automotive sites we serve and an unusually long
period of low water levels on European waterways in the first half. This was offset by contract gains and a growing contribution from the South American
inland shipping business. The weakening of the Rand against the Euro assisted the Rand-denominated results.

Net capital expenditure of R1,0 billion (2015: R1,2 billion) was incurred on additional capacity for the chemical manufacturing business and two additional
convoys commissioned during the year to meet the growing demand for inland waterway transport on the Rio Parana in South America. This business now
utilises five push boats with 60 barges, some redeployed from Europe, with two additional push boats with 24 barges expected to be commissioned later
this year. The success of this business is evidence of the division's ability to transfer core capabilities to new markets.
Vehicle Import, Distribution and Dealerships


                                                         % change                   % change
                                                  HY1      on HY1           HY2       on HY2                               % change
                                                 2016        2015          2016         2015         2016         2015      on 2015

Revenue (Rm)                                   14 590           2        13 883            6       28 473       27 437            4
Operating profit (Rm)                             532          15           617           24        1 149          960           20
Operating margin (%)                              3,6                       4,4                       4,0          3,5

Return on Invested Capital (%)                                                                        7,2          6,4*
Weighted average cost of capital (%)                                                                 10,0          9,1*

* Restated to new calculation method. See glossary of terms.


Notwithstanding extremely challenging trading conditions and lower vehicle sales volumes during the year, revenue and operating profit increased by 4%
and 20% respectively, resulting in an improved operating margin of 4,0%.
The improved performance was seen in all three of our major exclusive imported brands (Hyundai, Kia and Renault). This was attributable to an expeditious
trade off of volume and margin, with the latter enhanced by assistance from OEM's, price increases and prudent currency hedging strategies.

Although the Rand was weaker against the Euro and more so against the US Dollar, the division achieved increased profitability on Euro-based products in
the first half. Forward cover on the US Dollar and Euro imports currently extends to April 2017.

In South Africa, the division retailed 81 930 (2015: 89 925) new and 38 418 (2015: 36 614) pre-owned vehicles during the year. The division's South African
new vehicle registrations as reported to NAAMSA were 9% lower than the previous year.

Annuity revenue streams generated from after-sales parts and service contributed positively with revenue up 4%. The growing vehicle parc of the imported
brands (over 1 million) is delivering good levels of after-market activity for the dealerships.

The newly established African operations contributed positively.

The Australian operations returned a strong performance off a low base, driven by increased unit sales due to the introduction of new brands and the
establishment of the multi-franchise model.

Net capital expenditure amounted to R1,3 billion (2015: R1,2 billion) as a result of additional vehicles leased to car rental companies and increased
investment in IT infrastructure.


Vehicle Retail, Rental and Aftermarket Parts

                                                        % change                    % change
                                                  HY1     on HY1            HY2       on HY2                               % change
                                                 2016       2015           2016         2015         2016         2015      on 2015

Revenue (Rm)                                   20 790         11         20 255            8       41 045       37 547            9
Operating profit (Rm)                             801                       876            8        1 677        1 677             
Operating margin (%)                              3,9                       4,3                       4,1          4,5

Return on Invested Capital (%)                                                                       14,7         15,2*
Weighted average cost of capital (%)                                                                 11,0          9,6*

* Restated to new calculation method. See glossary of terms.


The division delivered a pleasing result with 9% revenue growth, while maintaining operating profit in challenging trading conditions.

In South Africa, the passenger and commercial vehicle divisions retailed 26 624 (2015: 30 641) new and 32 356 (2015: 31 484) pre-owned vehicles during
the year. The division's pre-owned to new vehicle ratio continues to increase, consistent with the tightening economy and in line with the broader market.

South Africa's passenger, medium commercial, heavy commercial and extra heavy vehicle markets experienced a reduction in new retail unit sales in line
with the market. As a result, both revenue and operating profit in this business declined, exacerbated by the sale of two commercial dealerships to Lereko
Motors, an associate BEE company. After sales parts and services increased operating profit by 4% from both price and volume increases as a result of the
strong new vehicle sales in the past three years.

The United Kingdom commercial vehicle market continued to grow strongly with the truck market up 11% and the light commercial vehicle market up 3%.
Results were supported by this market growth, the inclusion of S&B Commercials for 12 months and the recent acquisition of Humberside Tail Lifts which is
included for 8 months. A weaker Rand enhanced the growth in Rands.

During the year car rental, Auto Pedigree (pre-owned vehicle dealerships) and panel shops were placed under a single management team to facilitate
integration throughout the car rental, accident repair and resale value chain. Car rental increased its revenue and market share, supported by contract gains,
despite a challenging and competitive operating environment. Operating profit was adversely impacted by higher accident costs and lower profit on disposal
of the fleet compared to the prior year. Pre-owned unit sales grew by 4% despite higher interest rates and fragile consumer sentiment. Panel shops
profitability was positively impacted by the disposal of two loss-making outlets and higher car rental repair volumes.

The Aftermarket Parts business performed to expectation through improved revenue and flat operating profit. The Leisure business' performance was
hampered by a fire in the factory early in the financial year, although adequately insured.

Net capital expenditure of R779 million was incurred (2015: R844 million) largely on vehicles for hire and property development.


Financial Services
                                                                  % change              % change                                %
                                                           HY1      on HY1       HY2      on HY2                           change
                                                          2016        2015      2016        2015       2016       2015       2015
Motor Related Financial Services
Revenue (Rm)                                               801          22       833           8      1 634      1 429         14
Operating profit (Rm)                                      336           9       333          (5)       669        620          8
Operating margin (%)                                      42,0                  40,0                   40,9       43,4

Insurance (discontinued operations)
Revenue(Rm)                                              1 565           6     1 546           3      3 111      3 034          3
Operating profit (Rm)                                      274          52       255         (30)       529        564         (6)

Adjusted investment income (Rm)                            120          38        71         (41)       191        208         (8)
Adjusted underwriting result (Rm)                          244          47       258         (18)       502        479          5
Reversal of depreciation from being held for sale
(Rm)                                                         -                    44                     44          -        100
Intergroup eliminations (Rm)                               (90)         23      (118)        110       (208)      (123)        41

Operating margin (%)                                      17,5                  16,5                   17,0       18,6
Underwriting margin (%)                                   15,6                                         16,1       15,8


Despite lower vehicle sales, the Motor Related Financial Services business grew revenue and operating profit by 14% and 8% respectively. Innovative new
products and channels have improved retention and penetration rates. During the year, funds and policies held under service, maintenance, roadside
assistance and warranty plans were maintained. The book growth and returns from the alliances with financial institutions was tempered due to increased
impairment provisions and challenging economic conditions.

Regent is currently held for sale, subject to regulatory approvals. During the year Regent's underwriting result increased by 5% due mainly to the group
administration fees no longer being charged from the date of Regent's reclassification as a discontinued operation. Investment income decreased by 8% due
to a decline in equity markets.

On consolidation, the intergroup eliminations have increased due to the reversal of a higher profit participation in the cell captives by the group and, as no
administration fees were charged, there is no requirement to reverse administration fees in the current year.

The underwriting performance in Regent's short term business continued to benefit from more effective risk management resulting in improved loss ratios
in the heavy commercial vehicle business. New business penetration of motor related value added products remained under pressure due to declining
vehicle sales. Regent Life grew new business volumes. Regional business beyond South Africa remained a meaningful contributor to the division.

We continue to focus on growing the leasing business via Imperial Fleet Management and Ariva (Private leasing alliance) and building synergies within the
retail motor divisions to leverage scale for our customers.

Net capital expenditure of R228 million was incurred in the Motor Related Financial Services division (2015: R649 million), due mainly to vehicles for hire.

Disposals
Our strategy to dispose of non-core, strategically misaligned, underperforming or low return on effort assets gained momentum during the financial year.
The disposals described below, some still subject to regulatory approval, will generate proceeds of approximately R5,2 billion, which will reduce debt until
redeployed in accordance with our strategic and investment criteria. R2,4 billion has been received to date.

Regent
On 29th September 2015 we announced the disposal of Imperial's 100% interest in the Regent Group. Imperial accepted an offer from the Hollard Insurance
Group and Yellowwoods Group (the umbrella holding company of Hollard), to acquire the Regent Group, Regent Botswana and Regent Lesotho for a
purchase consideration of R2,2 billion.

The transaction has been approved by the Botswana competitions authorities. Conclusion of the transaction is now subject to regulatory approval from the
South African and Lesotho authorities.

Neska
The disposal of the 65% interest in Neska to Hafen und Guterverkehr Koln ('HGK'), the Port Authority in Cologne, Germany, for a total consideration of EUR
75 million (R1,3 billion) including loan repayments, was finalised on 11th December 2015.

Neska, a leading player in inland port operations in Europe, was facing growing competition and disintermediation from landlords (port owners). As a result,
Neska's growth prospects under Imperial's ownership were limited.

Goscor group
The disposal of the Group's 67,5% share of the Goscor group to management for a total consideration of R1,03 billion including loan repayments was
finalised on 5th February 2016.

Goscor, a former subsidiary of our Vehicle Import, Distribution and Dealership division, is an importer and distributor of industrial equipment, which we
regard as non-core to Imperial's logistics and vehicles businesses.

Other
During the year, the Vehicle Retail, Rental and Aftermarket Parts division disposed of two panel shop outlets and two commercial dealerships were sold to
Lereko Motors, an associate BEE company. The division also sold 6 dealerships: Honda Zambezi, Lindsay Saker Hyde Park, Rivonia and Krugersdorp, Mitsubishi
Bryanston and Mitsubishi/Hyundai in Kimberley.

Imperial Logistics International sold its 75% stake in ALS, a small shipping company, to the minority founder manager shareholders for EUR6 million (R84
million). The transaction was finalised on 27th January 2016.

In May 2016, the disposal of Imperial's minority stake in MixTelematics for R470 million was announced by MixTelematics, the proceeds from which are due
to be received by 30th August 2016.

Properties
Over the next twelve to eighteen months the Group intends disposing of mainly non-strategic properties (sale or sale and leaseback) in a number of
unrelated transactions in various jurisdictions amounting to R2,6 billion.

Acquisitions
During the 2016 financial year, various acquisitions were made, the most notable of which are listed below.

AMH
Imperial acquired the 10% minority in the AMH Group for R750 million, which was settled through an issue of Imperial shares and cash.

Midas
Imperial acquired a further 14% in Midas in its Vehicle Retail, Rental and Aftermarket Parts division during the year for R112,5 million.

Other acquisitions
- 100% of Teamcar, Maxifren, Fairdeal by Midas in South Africa
- 100% of Axnosis by Resolve in South Africa
- 70% of Imperilog Botswana
- 100% of Van den Anker by Logistics International (Netherlands)
- 100% of Humberside Tail Lifts by Vehicle Retail, Rental and Aftermarket Parts division (UK Commercial vehicles)
- A further 10% of Imres was acquired by Logistics Africa (now 80% owned)

Post year end acquisitions

Palletways
Imperial Mobility International B.V., a wholly-owned subsidiary of Imperial, acquired 95% of Palletways Group Limited, a leading European operator in the
express small consignment palletised freight market, for R3,0 billion (£155,1 million) which was settled through existing unutilised foreign credit facilities.
The loan portion is hedged in Pound Sterling. The transaction became effective on 5th July 2016.

Sasfin Premier Logistics
Logistics Africa acquired a 70% stake in Sasfin Premier Logistics. The deal was finalised on 6th July 2016.

Remaining 10% in Midas
A further 10% was acquired in Midas post year end. The group now owns 100% of Midas.

Post year end disposals

Disposal of small entities in AMH
The Group disposed of 51% (control) in 10 entities in the AMH Group to a related party for R75 million, subject to regulatory approval. The balance of the
shares in these entities will be sold in the next calendar year.


Group financial performance

Group profit and loss (extracts)

                            Total    Continuing   Discontinued       Total   Continuing   Discontinued       Total      Continuing
R million                    2016          2016           2016        2015         2015           2015    % Change       % Change

Revenue                   118 849       115 738          3 111     110 487      107 453          3 034           8             8
Operating profit            6 422         5 893            529       6 235        5 671            564           3             4
Operating margin (%)          5,4           5,1           17,0         5,6          5,3           18,6

Net finance costs          (1 440)       (1 440)                    (1 194)      (1 194)                        21           21
Income from
associates                    133           133                         32           33             (1)        316          303

Profit before tax           4 437         3 924            513       4 599        4 044            555          (4)          (3)
Tax                        (1 229)       (1 049)          (180)     (1 213)      (1 035)          (178)          1            1

Net profit after tax        3 208         2 875            333       3 386        3 009            377          (5)           (5)
Attributable to
non-controlling
interests                    (159)         (128)           (31)       (332)        (274)           (58)        (52)         (53)

Attributable to
shareholders of
Imperial                    3 049         2 747            302       3 054        2 735            319           -             -

Return on Invested
Capital (%)                  12,4                                     13,1*
Weighted average cost
of capital (%)               10,2                                      9,0*

* Restated to new calculation method. See glossary of terms.


Total revenue increased by 8% to R118,8 billion (6% up excluding acquisitions) and for continuing operations (excluding Regent) by 8% to R115,7 billion.
Total operating profit increased 3% to R6,4 billion (1% up excluding acquisitions) and for continuing operations (excluding Regent) up by 4% to R5,9 billion.
The increase in operating profit was due mainly to solid performances from the Vehicle Import, Distribution and Dealerships division and the Logistics Rest of
Africa sub-division, which was assisted by the inclusion of Imres for a full year. S&B Commercials in the Vehicle Retail, Rental and Aftermarket Parts division
was also included for a full year.

Group operating margin, including discontinued operations, was slightly down at 5,4% (2015: 5,6%).

Net finance costs increased by 21% compared to the prior year on the back of increased debt levels and higher interest rates.

Income from associates and joint ventures for continuing operations increased by R100 million on the prior year. This increase is as a result of a loss of 
R84 million recognised in respect of Ukhamba in the prior year.

The effective tax rate of 27,7% for continuing operations increased from 25,8% in 2015 due mainly to the increase in goodwill impairments which are not
tax deductible.

The Group's net profit attributable to non-controlling shareholders for continuing operations reduced by R146 million due to their share of impairment of
intangibles, reduced minority participation in Associated Motor Holdings and the sale of businesses in which the minorities participated.


Reconciliation from Earnings to Headline and Core Earnings:
R million                                                                                           2016        2015    % change

Net profit attributable to Imperial shareholders (earnings)                                        3 049       3 054           
Profit on disposal of assets                                                                         (98)        (85)
Impairments of goodwill and other assets                                                             526          95
Profit on sale of businesses                                                                        (520)        (17)
Impairment losses on assets of disposal group                                                         90
Other                                                                                                  2          84
Tax and non-controlling interests                                                                     (3)          4

Headline earnings                                                                                  3 046       3 135          (3)
Amortisation of intangibles                                                                          437         415
Foreign exchange gain on intergroup monetary items                                                   (92)       (104)
Re-measurement of contingent consideration, put option liabilities and business
acquisition costs                                                                                    117          69
Tax and non-controlling interests                                                                   (139)       (128)

Core earnings                                                                                      3 369       3 387           


Earnings, Headline Earnings and Core Earnings per Share
                                                                 Group                 Group
                                                                 Total  Continuing     Total  Continuing       Total  Continuing
Cents                                                             2016        2016      2015        2015    % Change    % Change

Basic EPS                                                        1 581       1 425     1 582       1 416                       1
Basic HEPS                                                       1 579       1 423     1 624       1 458          (3)         (2)
Basic Core EPS                                                   1 747       1 589     1 754       1 586                        


Financial position
R million                                                                                           2016        2015    % change

Goodwill and intangible assets                                                                     7 501       7 193           4
Property, plant and equipment                                                                     11 465      10 967           5
Investment in associates and joint ventures                                                          986       1 351         (27)
Transport fleet                                                                                    5 953       5 610           6
Vehicles for hire                                                                                  3 469       3 603          (4)
Investments and loans                                                                                291         357         (18)
Net working capital                                                                                9 936       9 267*          7
Other assets                                                                                       1 867       1 428          31
Assets classified as held for sale                                                                 6 552       4 618          42
Net debt                                                                                         (16 079)    (13 886)*        16
Non-redeemable non-participating preference shares                                                  (441)       (441)           
Other liabilities                                                                                 (8 584)     (8 121)          6
Liabilities directly associated with assets classified as held for sale                           (3 114)     (2 713)         15

Total shareholders' equity                                                                        19 802      19 233           3

Total assets                                                                                      69 830      65 712           6
Total liabilities                                                                                (50 028)    (46 479)          8

* Restated to reclassify interest-bearing supplier liabilities as accounts payable of R607 million.


Goodwill and intangible assets rose by 4% to R7,5 billion as a result of Rand weakness and small acquisitions.

Property plant and equipment increased by R498 million to R11,5 billion due mainly to investments in properties during the year.

Investment in associates and joint ventures decreased by R365 million, as a result of the reclassification of MixTelematics to "assets classified as held for
sale".

The transport fleet increased by 6% or R343 million due mainly to the net investment in trucks and barges of R727 million, currency adjustments of R509
million resulting from a weaker Rand, reduced by depreciation of R778 million.

Vehicles for hire reduced by R134 million impacted by the sale of Goscor and Bobcat's rental assets of R696 million and a reduction in fleet units, offset
partly by price increases in vehicles for hire.

Net working capital increased by only 7% despite a higher increase in the Rand cost of imported vehicles.

Assets held for sale includes Regent and other businesses identified during 2016 as being available for sale.

Total assets increased by 6% to R69,8 billion due mainly to acquisitions, capital expenditure and currency adjustments.

Net debt to equity (including preference shares as equity and including Regent's cash resources) at 73% improved from 76% at December 2015 but was
higher than the 66% at June 2015. The increase in debt is due to a weaker exchange rate for the translation of the foreign debt into Rand, capital
expenditure, working capital requirements and acquisitions. Net debt to equity (including preference shares as debt) is 77% (2015: 70%).

The net debt level is within the target gearing range of 60% to 80%. The net debt to total EBITDA ratio was 1,7 times (2015: 1,5 times).


Shareholders' equity was impacted by the following major items:

Movement in shareholders' equity
R million                                                                                              2016

Net profit attributable to Imperial shareholders                                                      3 049
Net profit attributable to non-controlling interests                                                    159
Increase in the foreign currency translation reserve                                                    623
Shares issued to acquire 10% of AMH                                                                     648
A reduction in the hedge accounting reserve                                                            (317)
Re-measurement of defined benefit obligations                                                          (159)
Dividends paid                                                                                       (1 909)
Shares repurchased, acquired to hedge share appreciation rights & deferred bonus plan obligations      (558)
Purchase of non-controlling interests:
 AMH                                                                                                   (750)
 Imres (including re-measurement of put option)                                                          98
 Midas                                                                                                 (113)
 Other                                                                                                 (150)
Other movements                                                                                         (52)

Total change                                                                                            569


Cash flow
R million                                                                                              2016       2015  % change

Cash generated by operations before movements in working capital                                      8 952      9 049        (1)
Movements in net working capital (excludes currency movements
& net acquisitions)                                                                                    (828)         9*
Interest paid                                                                                        (1 461)    (1 180)
Tax paid                                                                                             (1 910)    (1 301)

Cash flows from operating activities before capital expenditure on rental assets                      4 753      6 577       (28)
Net capital expenditure on rental assets                                                             (1 611)    (1 531)        5

Cash flows from operating activities                                                                  3 142      5 046       (38)
Net proceeds from sale of businesses (net of acquisitions)                                              760       (938)
Net capital expenditure                                                                              (2 527)    (2 988)
Equities, investments and loans                                                                          41     (1 025)
Dividends paid                                                                                       (1 909)    (1 724)
Other                                                                                                (1 164)      (273)

Increase in net debt (excludes currency movements & net acquisitions)                                (1 657)    (1 902)*

Free cash flow                                                                                        2 517      4 573

* Restated for the reclassification of interest-bearing accounts payable to accounts payable.


Cash generated by operations after working capital movements, interest charge and tax payments was R4,8 billion (2015: R6,6 billion).


Net working capital increased due to higher inventory in the Vehicle Import, Distribution and Dealerships division.

The main contributors to the net R760 million proceeds from sale of businesses (net of acquisitions) were the disposal of Neska, Goscor, ALS, two
dealerships and two panel shop outlets.

Inflows from equities, investments and loans amounted to R41 million. The prior year included additional investments in long term deposits and equities.

Dividends amounting to R1,9 billion were paid during the year.

Liquidity
The Group's liquidity position is strong with R9,4 billion in unutilised facilities (excluding asset based finance facilities). Fixed rate debt represents 44% of
total debt and 79% is of a long term nature. The Group's international scale credit rating as determined by Moody's was unchanged at Baa3 with a stable
outlook.

Final dividend
A final cash dividend of 425 cents per ordinary share (2015: 445 cents per share) has been declared, bringing F 2016 dividends to 795 cents per ordinary
share, unchanged from the prior year.

Board and organisation changes
As announced on 25 August 2015, Mr Suresh Kana, recent past Chief Executive Officer of PwC, was appointed as independent non-executive director of
Imperial Holdings Limited from 1st September 2015 and as Chairman of the board from 3rd November 2015.

Mr. Moses Kgosana, a highly regarded member of the accounting profession, who established and later merged his own firm with KPMG where in recent
years he served as Chief Executive and Senior Partner, was appointed as an independent non-executive director and chairperson of the Audit Committee
from 1st September 2015.

On 3rd November 2015, Mr Roddy Sparks, who has served as a director since August 2006, was appointed Lead Independent Director.
As announced on 3rd June 2016, the following are the major organisation changes and the resulting appointments that affect the executive directorate.

- Effective 1st July 2016 Imperial's entire logistics interests (i.e. Imperial Logistics South Africa, Imperial Logistics Rest of Africa and Imperial Logistics
  International) are managed as one division. Mr Marius Swanepoel, an executive director of Imperial, was appointed Chief Executive Officer of the new
  Logistics division from the same date.
- Effective 1st July 2016 Imperial's entire vehicle interests (i.e. Vehicle Import Distribution and Dealerships; Vehicle Retail Rental and Aftermarket Parts; and
  Motor related Financial Services) will be managed as one division. From 1st July 2016 until 31st December 2016, Imperial's Group Chief Executive Officer,
  Mr Mark Lamberti will be Executive Chairman of the division, leading and prioritising the necessary integration initiatives. On 1st January 2017, Mr Osman
  Arbee, currently Imperial's Group Chief Financial Officer, will be appointed Chief Executive Officer of the newly created Vehicles division.
- Starting from 1st January 2017, Mr Arbee will facilitate an orderly transition which will result in Mr Mohammed Akoojee, currently Chief Executive Officer
  of Imperial Logistics Rest of Africa, being appointed Imperial Holdings Group Chief Financial Officer on 1st April 2017.

From F 2017, the newly created Logistics and Vehicles divisions will be reported on as single entities with due regard to the disclosures and transparency
necessary to facilitate understanding and insight for shareholders.

The Logistics division will report segmentally on three sub-divisions, namely:
- Logistics South Africa;
- Logistics Rest of Africa; and
- Logistics International

The Vehicles division will report segmentally on two sub-divisions, namely:
- Import, Retail, Car Rental and Aftermarket Parts; and
- Motor Related Financial Services

Prospects
Imperial's performance for the financial year 2016 has been pleasing and reflects sound management of controllable factors under challenging
circumstances.

There is no reason to anticipate an improvement in the trading conditions facing Imperial in the short term. We expect volume growth throughout our
logistics operations to be subdued, and national new vehicle sales in South Africa to continue to decline in response to declining private consumption
expenditure, rising interest rates and tightening credit. In addition, the volatility of the Rand and the currencies in the countries in which we operate, and
the Group's hedging policy to cover forward, will affect both our competitiveness and profitability.

These uncontrollable factors make forecasting challenging but the expected sub-divisional segmental performance is as follows:

Logistics:
South Africa: Growth of revenues and operating profit
Rest of Africa: Growth of revenues and a decline in operating profit
International: Growth of revenues and operating profit, substantially from the Palletways acquisition

Vehicles:
Import, Retail, Car Rental and Aftermarket Parts: Flat revenue and a decline in operating profit.
Motor Related Financial Services: Flat revenue and operating profit
Therefore, our current outlook for Imperial Holdings' financial year to June 2017, including the impact of recent disposals, acquisitions and restructuring,
indicates single digit revenue growth and a moderate decline in operating profit for continuing operations.
We will continue to execute on our espoused strategies.

MARK J. LAMBERTI - Chief Executive Officer
OSMAN S. ARBEE - Chief Financial Officer

The forecast financial information herein has not been reviewed or reported on by Imperial's auditors.

Declaration of final preference and ordinary dividends
for the year ended 30 June 2016

Preference shareholders
Notice is hereby given that a gross final preference dividend of 425.77911 cents per preference share has been declared by the Board of Imperial, payable
to holders of non-redeemable, non-participating preference shares. The dividend will be paid out of reserves.

The preference dividend will be subject to a local dividend tax rate of 15%. The net preference dividend, to those shareholders who are not exempt from
paying dividend tax, is therefore 361.91224 cents per share.

Ordinary shareholders
Notice is hereby given that a gross final ordinary dividend in the amount of 425.00000 cents per ordinary share has been declared by the Board of Imperial,
payable to holders of ordinary shares. The dividend will be paid out of reserves.

The ordinary dividend will be subject to a local dividend tax rate of 15%. The net ordinary dividend, to those shareholders who are not exempt from paying
dividend tax, is therefore 361.25000 cents per share.

The company has determined the following salient dates for the payment of the preference dividend and ordinary dividend:
                                                                                                                                   2016

Last day for preference shares and ordinary shares respectively to trade cum-preference                           Tuesday, 20 September
dividend and cum ordinary dividend
Preference and ordinary shares commence trading ex-preference dividend and ex-ordinary                          Wednesday, 21 September
dividend respectively
Record date                                                                                                        Friday, 23 September
Payment date                                                                                                       Monday, 26 September


Share certificates may not be dematerialised/rematerialised between Wednesday, 21 September 2016 and Friday, 23 September 2016, both days inclusive.
On Monday, 26 September 2016, amounts due in respect of the preference dividend and the ordinary dividend will be electronically transferred to the bank
accounts of certificated shareholders that utilise this facility. In respect of those who do not, cheques dated 26 September 2016 will be posted on or about
that date. Shareholders who have dematerialised their shares will also have their accounts, held at their CSDP or Broker, credited on Monday, 26 September
2016.

On behalf of the board
RA Venter
Group Company Secretary
22 August 2016

Auditor's report

These summarised consolidated financial statements for the year ended 30 June 2016 have been audited by Deloitte & Touche, who expressed an
unmodified opinion thereon. The auditor also expressed an unmodified opinion on the financial statements from which these summarised consolidated statements
were derived.

A copy of the auditor's report on the summarised consolidated financial statements and of the auditor's report on the consolidated financial statements are
available for inspection at the company's registered office, together with the financial statement identified in the respective auditor's reports.
The auditor's report does not necessarily report on all of the information contained in these financial results. Shareholders are therefore advised that in order
to obtain a full understanding of the nature of the auditor's engagement, they should obtain a copy of the auditor's report together with the accompanying
financial information from the company's registered office.

Presenting continuing and discontinued operations

The results of the Insurance businesses, which is in the process of being disposed, are presented in the summarised consolidated statement of profit or loss
as discontinued operations. The assets and related liabilities of the Insurance business have been reclassified to 'Assets of discontinued operations' and
'Liabilities of discontinued operations' respectively on the summarised consolidated statement of financial position. The assets and related liabilities of the
disposal group have been reclassified to 'Assets of other disposal groups' and 'Liabilities of other disposal groups' respectively on the summarised
consolidated statement of financial position. These assets include various businesses in the Logistics Africa, Vehicle Import Distribution and Dealership
division and the Vehicle Retail Rental and Aftermarket Parts division and a listed associate. The businesses will be recovered through disposal rather than
through continuing use.

The following shows the combined result of the continuing and discontinued operations after eliminating inter-group transactions.

The results of the businesses to be disposed are included in continuing operations.

                                                      TOTAL     CONTINUING DISCONTINUED         TOTAL    CONTINUING DISCONTINUED
                                                 OPERATIONS     OPERATIONS   OPERATIONS    OPERATIONS    OPERATIONS   OPERATIONS
                                           %           2016           2016         2016          2015          2015         2015
                                      change             Rm             Rm           Rm            Rm            Rm           Rm
Revenue                                    8        118 849        115 738        3 111       110 487       107 453        3 034
Net operating expenses                             (109 868)      (107 286)      (2 582)     (101 732)      (99 290)      (2 442)

Profit from operations before
depreciation and recoupments                          8 981          8 452          529         8 755         8 163          592
Depreciation, amortisation,
impairments and recoupments                          (2 559)        (2 559)                    (2 520)       (2 492)         (28)

Operating profit                           3          6 422          5 893          529         6 235         5 671          564
Recoupments from sale of
properties, net of impairments                           28             28                         29            29
Amortisation of intangible assets
arising on business combinations                       (437)          (437)                      (415)         (415)
Impairment of intangible assets
arising on business combinations                       (151)          (151)
Other non-operating items                              (118)          (102)         (16)          (88)          (80)          (8)

Profit before net finance costs                       5 744          5 231          513          5 761        5 205          556
Net finance costs                         21         (1 440)        (1 440)                     (1 194)      (1 194)

Profit before share of result of
associates and joint ventures                         4 304          3 791          513          4 567        4 011          556
Share of result of associates and
joint ventures                                          133            133                          32           33           (1)

Profit before tax                         (4)         4 437          3 924          513          4 599        4 044          555
Income tax expense                                   (1 229)        (1 049)        (180)        (1 213)      (1 035)        (178)

Net profit for the year                   (5)         3 208          2 875          333          3 386        3 009          377

Net profit attributable to:
Owners of Imperial                                    3 049          2 747          302          3 054        2 735          319
Non-controlling interests                (52)           159            128           31            332          274           58
                                                      3 208          2 875          333          3 386        3 009          377


Earnings per share (cents)
- Basic                                               1 581          1 425          156          1 582        1 416          166
- Diluted                                 (2)         1 540          1 388          152          1 568        1 406          162

Headline earnings per share (cents)
- Basic                                   (3)         1 579          1 423          156          1 624        1 458          166
- Diluted                                 (4)         1 538          1 386          152          1 609        1 446          163

Core earnings per share (cents)
- Basic                                               1 747          1 589          158          1 754        1 586          168
- Diluted                                 (2)         1 702          1 548          154          1 736        1 571          165



Discontinued operations

The major classes of assets and liabilities classified at 30 June 2016 as held for sale were as follows:
                                                                                                          2016       2015
                                                                                                            Rm         Rm

Assets
Goodwill and intangible assets                                                                             204        122
Investment in associates and joint ventures                                                                 40         17
Property, plant and equipment                                                                              164        146
Income tax assets                                                                                           24         20
Investments and other financial assets                                                                   3 197      3 250
Trade and other receivables                                                                                217        218
Cash resources                                                                                           1 237        845

Assets of discontinued operations                                                                        5 083      4 618

Liabilities
Insurance and investment contracts                                                                       1 384      1 361
Income tax liabilities                                                                                     214        197
Trade, other payables and provisions                                                                     1 140      1 155

Liabilities of discontinued operations                                                                   2 738      2 713

Investments and other financial assets consists of:
Listed investments at fair value (level 1)                                                               2 481      2 288
Fixed and negotiable deposits at fair value (level 2)                                                      589        733
Reinsurance debtors at amortised cost                                                                      127        229

Total investments and other financial assets                                                             3 197      3 250


The cash flows from discontinued operations were as follows:
Cash flows from operating activities                                                                       390        391
Cash flows from investing activities                                                                       (30)    (1 103)
Cash flows from financing activities                                                                        (1)       (31)


Summarised consolidated statement of profit or loss
For the year ended 30 June 2016
                                                                                                 %        2016       2015
                                                                                    NOTES   change          Rm         Rm

CONTINUING OPERATIONS
Revenue                                                                                          8     115 738    107 453
Net operating expenses                                                                                (107 286)   (99 290)

Profit from operations before depreciation and recoupments                                               8 452      8 163
Depreciation, amortisation, impairments and recoupments                                                 (2 559)    (2 492)

Operating profit                                                                                 4       5 893      5 671
Recoupments from sale of properties, net of impairments                                                     28         29
Amortisation of intangible assets arising on business combinations                                        (437)      (415)
Impairment of intangible assets arising on business combinations                                          (151)
Other non-operating items                                                               6                 (102)       (80)

Profit before net finance costs                                                                          5 231      5 205
Net finance costs                                                                       7       21      (1 440)    (1 194)

Profit before share of result of associates and joint ventures                                           3 791      4 011
Share of result of associates and joint ventures                                                           133         33

Profit before tax                                                                               (3)      3 924      4 044
Income tax expense                                                                                      (1 049)    (1 035)

Profit from continuing operations                                                               (4)      2 875      3 009

DISCONTINUED OPERATIONS
Profit from discontinued operations                                                                        333        377

Net profit for the year                                                                         (5)      3 208      3 386

Net profit attributable to:
Owners of Imperial                                                                                       3 049      3 054

- Continuing operations                                                                                  2 747      2 735
- Discontinued operations                                                                                  302        319

Non-controlling interests                                                                                  159        332

- Continuing operations                                                                                    128        274
- Discontinued operations                                                                                   31         58

Earnings per share (cents)
Continuing operations
- Basic                                                                                          1       1 425      1 416
- Diluted                                                                                       (1)      1 388      1 406
Discontinued operations
- Basic                                                                                         (6)        156        166
- Diluted                                                                                       (6)        152        162
Total operations
- Basic                                                                                                  1 581      1 582
- Diluted                                                                                       (2)      1 540      1 568


Summarised consolidated statement of comprehensive income
For the year ended 30 June 2016
                                                                                                          2016       2015
                                                                                                            Rm         Rm

Net profit for the year                                                                                  3 208      3 386
Other comprehensive income (loss)                                                                          147       (268)

Items that may be reclassified subsequently to profit or loss                                              306       (172)

Exchange gains (losses) arising on translation of foreign operations                                       607       (312)
Share of associates' and joint ventures movement in foreign currency translation reserve                    16          8
Movement in valuation reserve                                                                                         (87)
Reclassification of loss on disposal of available-for-sale investments                                                 43
Movement in hedge accounting reserve                                                                      (374)       175
Income tax relating to items that may be reclassified to profit or loss                                     57          1

Items that will not be reclassified to profit or loss                                                     (159)       (96)

Remeasurement of defined benefit obligations                                                              (228)      (137)
Income tax on remeasurement of defined benefit obligations                                                  69         41

Total comprehensive income for the year                                                                  3 355      3 118

Total comprehensive income attributable to:
Owners of Imperial                                                                                       3 190      2 762
Non-controlling interests                                                                                  165        356

                                                                                                         3 355      3 118

Earnings per share information
For the year ended 30 June 2016
                                                                                                 %        2016       2015
                                                                                            change          Rm         Rm

Headline earnings reconciliation
Earnings - basic                                                                                         3 049      3 054
Saving of finance costs by associate on potential sale of Imperial shares                                              44

Earnings - diluted                                                                                       3 049      3 098
Recoupment for disposal of property, plant and equipment (IAS 16)                                          (97)       (85)
Recoupment for disposal of intangible assets (IAS 38)                                                       (1)
Impairment of property, plant and equipment (IAS 36)                                                        12         28
Impairment of intangible assets (IAS 36)                                                                   167
Impairment of goodwill (IAS 36)                                                                            258         67
Impairment (profit on disposal) of investments in associates and joint ventures (IAS 28)                    89         (2)
Profit on disposal of subsidiaries and businesses (IFRS 10)                                               (520)       (15)
Impairment losses on assets of disposal groups                                                              90
Reclassification of loss on disposal of available-for-sale investment (IAS 39)                                         43
Remeasurements included in share of result of associates and joint ventures                                  2         41
Tax effects of remeasurements                                                                               60         13
Non-controlling interests share of remeasurements                                                          (63)        (9)

Headline earnings - diluted                                                                              3 046      3 179
Saving of finance costs by associate on potential sale of Imperial shares                                             (44)

Headline earnings - basic                                                                       (3)      3 046      3 135

Headline earnings per share (cents)
Continuing operations
- Basic                                                                                         (2)      1 423      1 458
- Diluted                                                                                       (4)      1 386      1 446
Discontinued operations
- Basic                                                                                         (6)        156        166
- Diluted                                                                                       (7)        152        163
Total operations
- Basic                                                                                         (3)      1 579      1 624
- Diluted                                                                                       (4)      1 538      1 609

Core earnings reconciliation
Headline earnings - basic                                                                       (3)      3 046      3 135
Saving of finance costs by associate on potential sale of Imperial shares                                              44

Headline earnings - diluted                                                                     (4)      3 046      3 179
Amortisation of intangible assets arising on business combinations                                         437        415
Foreign exchange gain on inter-group monetary item                                                         (92)      (104)
Business acquisition costs                                                                                  63         16
Remeasurement of contingent consideration and put option liabilities                                        50         47
Change in economic assumptions on insurance funds                                                            4          6
Tax effects of core earnings adjustments                                                                   (98)       (85)
Non-controlling interests share of core earnings adjustments                                               (41)       (43)

Core earnings - diluted                                                                         (2)      3 369      3 431
Saving of finance costs by associate on potential sale of Imperial shares                                             (44)

Core earnings - basic                                                                           (1)      3 369      3 387


                                                                                                          2016       2015
                                                                                                           Rm         Rm

Core earnings per share (cents)
Continuing operations
- Basic                                                                                                  1 589      1 586
- Diluted                                                                                       (1)      1 548      1 571
Discontinued operations
- Basic                                                                                         (6)        158        168
- Diluted                                                                                       (7)        154        165
Total operations
- Basic                                                                                                  1 747      1 754
- Diluted                                                                                       (2)      1 702      1 736

ADDITIONAL INFORMATION
Net asset value per share (cents)                                                                6      10 287      9 696
Dividend per ordinary share (cents)                                                                        795        795
Number of ordinary shares in issue (million)
- total shares                                                                                           208,1      202,8
- net of shares repurchased                                                                              196,6      194,6
- weighted average for basic                                                                             192,9      193,1
- weighted average for diluted                                                                           198,0      197,6
Number of other shares (million)
- Deferred ordinary shares to convert into ordinary shares                                                 7,5        8,3


Summarised consolidated statement of financial position
At 30 june 2016
                                                                                                          2016       2015*      2014*
                                                                                     NOTE                   Rm         Rm         Rm

ASSETS
Goodwill and intangible assets                                                          8                7 501      7 193      6 766
Investment in associates and joint ventures                                                                986      1 351      1 418
Property, plant and equipment                                                                           11 465     10 967     10 469
Transport fleet                                                                                          5 953      5 610      5 322
Deferred tax assets                                                                                      1 376      1 097      1 101
Investments and loans                                                                                      291        357      2 468
Other financial assets                                                                                       8         36        267
Vehicles for hire                                                                                        3 469      3 603      2 945
Inventories                                                                                             16 717     15 465     13 132
Tax in advance                                                                                             483        295        148
Trade and other receivables                                                                             12 712     12 849     11 882
Cash resources                                                                                           2 317      2 271      3 103
Assets of discontinued operations                                                                        5 083      4 618
Assets of disposal group**                                                                               1 469

Total assets                                                                                            69 830     65 712     59 021

EQUITY AND LIABILITIES
Capital and reserves
Share capital and share premium                                                                          1 030        382        382
Shares repurchased                                                                                      (1 226)      (668)      (220)
Other reserves                                                                                           1 003      1 089      1 149
Retained earnings                                                                                       19 418     18 065     16 229

Attributable to owners of Imperial                                                                      20 225     18 868     17 540
Put arrangement over non-controlling interests                                                          (1 307)    (1 473)    (1 000)
Non-controlling interests                                                                                  884      1 838      1 569

Total equity                                                                                            19 802     19 233     18 109

Liabilities
Non-redeemable, non-participating preference shares                                                        441        441        441
Retirement benefit obligations                                                                           1 531      1 157      1 083
Interest-bearing borrowings                                                                             18 396     16 157     14 340
Maintenance and warranty contracts                                                                       3 156      3 191      4 310
Deferred tax liabilities                                                                                   881      1 193      1 355
Other financial liabilities                                                                              2 335      2 019      1 711
Trade, other payables and provisions                                                                    19 493     19 047     17 185
Current tax liabilities                                                                                    681        561        487
Liabilities of discontinued operations                                                                   2 738      2 713
Liabilities of disposal group**                                                                            376

Total liabilities                                                                                       50 028     46 479     40 912

Total equity and liabilities                                                                            69 830     65 712     59 021

*  Restated for the application of the change in accounting policy (see note 2.1).
** Assets and liabilities relating to other disposal groups. The results of the other disposal groups are included in the results of
   continuing operations.


Summarised consolidated statement of cash flows
For the year ended 30 June 2016
                                                                                                 %        2016       2015*
                                                                                     NOTE   change          Rm         Rm

Cash flows from operating activities
Cash generated by operations before movements in net working capital                                     8 952      9 049
Movements in net working capital                                                                          (828)         9

Cash generated by operations before interest and taxes paid                                    (10)      8 124      9 058
Net finance costs paid                                                                                  (1 461)    (1 180)
Tax paid                                                                                                (1 910)    (1 301)

Cash generated by operations before capital expenditure on rental assets                                 4 753      6 577
Expansion capital expenditure - rental assets                                                             (772)      (772)
Net replacement capital expenditure - rental assets                                                       (839)      (759)

- Expenditure                                                                                           (3 539)    (2 496)
- Proceeds                                                                                               2 700      1 737

Cash generated by operations after capital expenditure on rental assets                        (38)      3 142      5 046

Cash flows from investing activities
Net disposals (acquisitions) of subsidiaries and businesses                                                760       (938)
Expansion capital expenditure - excluding rental assets                                                 (1 130)    (1 743)
Net replacement capital expenditure - excluding rental assets                                           (1 397)    (1 245)
Net movement in associates and joint ventures                                                               71        178
Net movement in investments, loans and other financial instruments                                         (30)    (1 203)

                                                                                                        (1 726)    (4 951)

Cash flows from financing activities
Hedge cost premium paid                                                                                   (193)      (128)
Ordinary shares repurchased                                                                               (558)       (56)
Dividends paid                                                                                          (1 909)    (1 724)
Change in non-controlling interests#                                                                      (439)       (90)
Capital raised from non-controlling interests                                                               26          1
Net increase in other interest-bearing borrowings                                                        2 193        831

                                                                                                          (880)    (1 166)

Net increase (decrease) in cash and cash equivalents                                                       536     (1 071)
Effects of exchange rate changes on cash resources in foreign currencies                                   145          7
Cash and cash equivalents at beginning of year                                                              38      1 102

Cash and cash equivalents at end of year                                                9                  719         38

* Restated for the application of the change in accounting policy (see note 2.1).
# The 4 559 221 ordinary shares issued to acquire the remaining interest in Associated Motor Holdings (Pty) Limited and
  Boundlesstrade 154 (Pty) Limited was treated as non-cash flow.


Summarised consolidated statement of changes in equity
For the year ended 30 June 2016
                                                                                                                                                                         PUT
                                                                                                                                                                 ARRANGEMENT
                                                                                                         SHARE                                                          OVER
                                                                                                       CAPITAL     SHARES                          ATTRIBUTABLE         NON-          NON-
                                                                                                     AND SHARE        RE-       OTHER    RETAINED     TO OWNERS  CONTROLLING   CONTROLLING      TOTAL
                                                                                                       PREMIUM  PURCHASED    RESERVES    EARNINGS   OF IMPERIAL    INTERESTS     INTERESTS     EQUITY
                                                                                                            Rm         Rm          Rm          Rm            Rm           Rm            Rm         Rm

At 30 June 2014                                                                                            382       (220)      1 149      16 229        17 540       (1 000)        1 569     18 109
Total comprehensive income for the year                                                                                          (199)      2 961         2 762                        356      3 118

Net attributable profit for the year                                                                                                        3 054         3 054                        332      3 386
Other comprehensive income                                                                                                       (199)        (93)         (292)                        24       (268)

Movement in statutory reserves                                                                                                     39         (39)
Share-based cost charged to profit or loss                                                                                        126                       126                          4        130
Share-based equity reserve transferred to retained earnings on vesting                                                              7          (7)
Share-based equity reserve hedge cost refund                                                                                        7                         7                         (3)         4
Ordinary dividend paid                                                                                                                     (1 471)       (1 471)                               (1 471)
Repurchase of 320 000 ordinary shares from the open market at an average price
of R172,68 per share plus transaction cost                                                                            (56)                                  (56)                                  (56)
Cancellation of 5 864 944 ordinary shares held by Lereko Mobility                                                     665                    (665)
Reallocation of prior year surplus on shares cancelled                                                             (1 057)                  1 057
Initial recognition of put option written over non-controlling interest                                                                                                 (473)                    (473)
Share of changes in net assets of associates and joint ventures                                                                    (5)                       (5)                                   (5)
Realisation on disposal of subsidiaries                                                                                            12                        12                                    12
Non-controlling interests acquired, net of disposals and shares issued                                                                                                                 208        208
Net decrease in non-controlling interests through buy-outs                                                                        (47)                      (47)                       (43)       (90)
Non-controlling interests share of dividends                                                                                                                                          (253)      (253)

At 30 June 2015                                                                                            382       (668)      1 089      18 065        18 868       (1 473)        1 838     19 233
Total comprehensive income for the year                                                                                           300       2 890         3 190                        165      3 355

Net attributable profit for the year                                                                                                        3 049         3 049                        159      3 208
Other comprehensive income                                                                                                        300        (159)          141                          6        147

Movement in statutory reserves                                                                                                     20         (20)
Share-based cost charged to profit or loss                                                                                        144                       144                          4        148
Share-based equity reserve transferred to retained earnings on vesting                                                            (55)         55
Share-based equity reserve hedge cost                                                                                            (183)                     (183)                                 (183)
Ordinary dividend paid                                                                                                                     (1 572)       (1 572)                               (1 572)
Repurchase of 3 387 507 shares from the open market at an average price of R164.78 per share,
plus transaction cost                                                                                                (558)                                 (558)                                 (558)
Share of changes in net assets of associates and joint ventures                                                                    (5)                       (5)                                   (5)
Realisation on disposal of subsidiaries                                                                                            59                        59                                    59
Non-controlling interests disposed, net of acquisitions and shares issued                                                                                                              (71)       (71)
Net decrease in non-controlling interests through buy-outs*                                                648                   (366)                      282          166          (715)      (267)
Non-controlling interest share of dividends                                                                                                                                           (337)      (337)

At 30 June 2016                                                                                          1 030     (1 226)      1 003      19 418        20 225       (1 307)          884     19 802

* Includes the issue of 4 559 221 ordinary shares at an average market price of R142 per share to the non-controlling shareholder of Associated Motor Holdings (Pty) Limited and Boundlesstrade 154
  (Pty) Limited as consideration for its 10% shareholding.


Notes to the summarised consolidated financial statements
For the year ended 30 June 2016

1.    Basis of preparation
      The summarised consolidated financial statements have been prepared in accordance with the framework concepts and the
      recognition and measurement criteria of International Financial Reporting Standards (IFRS) and its Interpretations adopted by the
      International Accounting Standards Board (IASB) in issue and effective for the Group at 30 June 2016 and the SAICA Financial
      Reporting Guides as issued by the Accounting Practices Committee and financial reporting pronouncements as issued by the
      Financial Reporting Standards Council. The preliminary results are presented in accordance with IAS 34 - Interim Financial Reporting
      and comply with the Listings Requirements of the Johannesburg Stock Exchange Limited and the Companies Act of South Africa,
      2008. These summarised consolidated financial statements are an extract of the full audited consolidated annual financial
      statements.

      These summarised consolidated financial statements and the full audited consolidated annual financial statements have been
      prepared under the supervision of R Mumford, CA (SA) and were approved by the board of directors on 22 August 2016.

2.    Accounting policies
      The accounting policies adopted and methods of computation used in the preparation of the summarised consolidated financial
      statements are in accordance with IFRS and are consistent with those of the audited consolidated annual financial statements for
      the year ended 30 June 2015, except for the change detailed below.

2.1   Change in accounting policy
      Floorplans
      During the year the Group reclassified its interest-bearing trade payables, due to vehicle suppliers, from interest-bearing
      borrowings to trade and other payables. As the interest-bearing amounts are a short-term credit line received from vehicle
      suppliers to acquire vehicles as inventory it is considered more appropriate to show them as trade payables.

      The impact of the change in policy on the comparative amounts was as follows:

                                                                                                                2014              2015
      STATEMENT OF FINANCIAL POSITION                                                         Note                Rm                Rm

      Decrease in interest-bearing borrowings                                                                   (204)             (607)
      Increase in trade, other payables and provisions                                                           204               607

      Total liabilities


      Statement of cash flows

      Cash flows from operating activities
      Increase in cash generated by operations before movements in working capital
      Decrease in movements in net working capital                                                                                  59

      Increase in cash generated by operations before interest and taxes paid                                                       59

      Cash from operating activities                                                                                                 59

      Cash flows from financing activities
      Net increase in other interest-bearing borrowings                                                                            344

      Cash flow from financing activities                                                                                           344

      Net increase in cash and cash equivalents                                                                                    403
      Increase in cash and cash equivalents at beginning of year                                                                   204

      Increase in cash and cash equivalents at end of year                                       9                                 607

2.2   Restatement of the segmental information
      The 2015 segmental information for the Vehicle retail, rental and after market parts division has been restated as follows:

                                                                                        OPERATING       NET WORKING               NET
                                                                                      LIABILITIES           CAPITAL              DEBT
                                                                                               Rm                Rm                Rm
     Previously stated                                                                      5 263             2 707             3 089
     Restated for floorplans                                                                  607              (607)             (607)
     As restated                                                                            5 870             2 100             2 482


3.   New and revised International Financial Reporting Standards in issue but not yet effective
     IFRS 16 Leases introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases
     with a term longer than 12 months. A lessee is required to recognise a right-of-use asset representing its right to use the
     underlying leased asset and a lease liability representing its obligation to make lease payments. Depreciation is recognised on
     the right-of-use asset and interest on the lease liability. In terms of lessor accounting IFRS 16 substantially carries forward the
     requirements in IAS 17 Leases and accordingly a lessor continues to account for its leases as operating leases or finance leases.
     Issued in January 2016 this standard becomes effective for annual reporting periods beginning on or after 1 January 2019.

     Other standards that will become applicable to the group in future reporting periods includes IFRS 9 Financial Instruments
     (effective 1 January 2018) and IFRS 15 Revenue from Contracts with Customers (effective 1 January 2018). The details of these
     standards is outlined in the 30 June 2016 audited consolidated annual financial statements.

     The group is in the process of assessing the impact of these standards on its consolidated financial statements.
4.   New headline earnings circular
     Circular 2/2015 Headline Earnings which was issued by the South African Institute of Chartered Accountant (SAICA) in October
     2015 replaces Circular 2/2013 Headline Earnings. The revisions contained in the new circular relate primarily to IFRS 9 Financial
     Instruments and has had no impact on the way the Group computes headline earnings.
                                                                                                                2016              2015
5.   Foreign exchange rates
     The following major rates of exchange were used in the translation of the Group's foreign
     operations:
     SA Rand : Euro
     - closing                                                                                                 16,31             13,55
     - average                                                                                                 16,10             13,73
     SA Rand : US Dollar
     - closing                                                                                                 14,70             12,15
     - average                                                                                                 14,51             11,44

6.   Other non-operating items
     Remeasurement of financial instruments not held-for-trading                                                (122)              (15)

     Foreign exchange (loss) gain on foreign currency monetary items                                             (72)               75
     Charge for remeasurement of put option liabilities                                                          (64)              (49)
     Gains on remeasurement of contingent consideration liabilities                                               14                 2
     Reclassification of loss on disposal of available-for-sale investments                                                        (43)

     Capital items                                                                                                20               (65)

     Impairment of goodwill                                                                                     (258)              (66)
     (Impairment) profit on disposal of investments in associates and joint ventures                             (89)                2
     Profit on disposal of subsidiaries and businesses                                                           520                15
     Impairment losses on assets of disposal group                                                               (90)                -
     Business acquisition costs                                                                                  (63)              (16)
                                                                                                                (102)              (80)
7.   Net finance costs
     Net interest paid                                                                                        (1 462)           (1 180)
     Fair value gain (loss) on interest-rate swap instruments                                                     22               (14)

                                                                                                              (1 440)           (1 194)

8.   Goodwill and intangible assets
     Goodwill
     Cost                                                                                                      6 286             5 944
     Accumulated impairments                                                                                    (862)             (926)

                                                                                                               5 424             5 018

     Carrying value at beginning of year                                                                       5 018             4 737
     Net (disposal) acquisition of subsidiaries and businesses                                                  (130)              463
     Impairment charge                                                                                          (258)              (67)
     Reclassified to assets held for sale                                                                        (28)              (13)
     Currency adjustment                                                                                         822              (102)

     Carrying value at end of year                                                                             5 424             5 018
     Intangible assets                                                                                         2 077             2 175

     Goodwill and intangible assets                                                                            7 501             7 193

9.   Cash and cash equivalents#
     Cash resources                                                                                            2 317             2 271
     Cash resources included in assets of discontinued operations and of disposal groups                       1 356               845
     Short-term loans and overdrafts (Included in interest-bearing borrowings)                                (2 954)           (3 078)

                                                                                                                 719                38

     # Restated for the change in accounting policy (see note 2.1).


10.    Fair value of financial instruments
10.1   Fair values of financial assets and liabilities carried at amortised cost
       The following table sets out instances where the carrying amount of financial liabilities, as recognised on the statement of
       financial position, differ from their fair values.
                                                                                                            CARRYING
                                                                                                               VALUE        FAIR VALUE*
       30 JUNE 2016                                                                                               Rm                Rm

       Listed corporate bonds (included in interest-bearing borrowings)                                        5 348             5 278
       Listed non-redeemable, non-participating preference shares                                                441               345

       * Level 1 of the fair value hierarchy.

       The fair values of the remainder of the Group's financial assets and financial liabilities approximate their carrying values.

10.2   Fair value hierarchy
       The Group's financial instruments carried at fair value are classified in three categories defined as follows:
       Level 1 financial instruments are those that are valued using unadjusted quoted prices in active markets for identical financial
       instruments.

       Level 2 financial instruments are those valued using techniques based primarily on observable market data. Instruments in this
       category are valued using quoted prices for similar instruments or identical instruments in markets which are not considered to
       be active; or valuation techniques where all the inputs that have a significant effect on the valuation are directly or indirectly
       based on observable market data.

       Level 3 financial instruments are those valued using techniques that incorporate information other than observable market data.
       Instruments in this category have been valued using a valuation technique where at least one input, which could have a
       significant effect on the instrument's valuation, is not based on observable market data.

       The following table presents the valuation categories used in determining the fair values of financial instruments carried at fair
       value. For financial assets of discontinued operations refer above.

                                                                                               TOTAL         LEVEL 2           LEVEL 3
       30 JUNE 2016                                                                               Rm              Rm                Rm

       Financial assets carried at fair value
       Interest-rate swap instruments (Included in Other financial assets)                         8               8
       Foreign exchange contracts and other derivative instruments
       (Included in Trade and other receivables)                                                  44              44

       Financial liabilities carried at fair value
       Put option liabilities (Included in Other financial liabilities)                        1 875                             1 875
       Contingent consideration liabilities (Included in Other financial liabilities)             19                                19
       Swap instruments (Included in Other financial liabilities)                                267             267
       Foreign exchange contracts (Included in Trade, other payables and provisions)             479             479


       Transfers between hierarchy levels
       The Group recognises transfers between levels of the fair value hierarchy as at the end of the reporting period during which the
       change has occurred. There were no transfers between the fair value hierarchies during the year.

10.3   Movements in level 3 financial instruments measured at fair value
       The following table shows a reconciliation of the opening and closing carrying values of level 3 financial liabilities carried at fair
       value.
                                                                                                          CONTINGENT
                                                                                          PUT OPTION   CONSIDERATION
                                                                                         LIABILITIES     LIABILITIES             TOTAL
       FINANCIAL LIABILITIES                                                                      Rm              Rm                Rm

       Carrying value at beginning of year                                                     1 640              31             1 671
       Derecognition direct in equity                                                           (166)                             (166)
       Arising on acquisition of subsidiaries and businesses                                                      21                21
       Fair valued through profit or loss                                                         64             (14)               50
       Settlements                                                                                               (23)              (23)
       Currency adjustments                                                                      337               4               341

       Carrying value at the end of the year                                                   1 875              19             1 894
       Level 3 sensitivity information
       The fair values of the level 3 financial liabilities of R1 894 million were estimated by applying an income approach valuation
       method including a present value discount technique. The fair value measurement is based on significant inputs that are not
       observable in the market. Key assumptions used in the valuations include the assumed probability of achieving profit targets and
       the discount rates applied. The assumed profitabilities were based on historical performances but adjusted for expected growth.

       The following table shows how the fair value of the level 3 financial liabilities as at 30 June 2016 would change if the significant
       assumptions were to be replaced by a reasonable possible alternative.

                                                                                             CARRYING     INCREASE IN      DECREASE IN
       FINANCIAL                              VALUATION            KEY                          VALUE     LIABILITIES      LIABILITIES
       INSTRUMENTS                            TECHNIQUE            ASSUMPTION                      Rm              Rm               Rm

       Put option liabilities                 Income approach      Earnings growth              1 875              13             (129)
       Contingent consideration liabilities   Income approach      Assumed profits                 19                               (4)


                                                                                                                 2016             2015
                                                                                                                   Rm               Rm

11.   Contingencies and commitments
      Capital commitments                                                                                       1 309            2 289
      Contingent liabilities                                                                                      798              405

12.   Acquisitions and disposals during the year

      Disposals
      The Group disposed of its 65% interest in Neska, a subsidiary of Imperial Logistics International BV.

      Acquisitions
      For acquisitions during the reporting period please refer to business combinations.
13.   Events after the reporting period

      Acquisition of Palletways Group Limited
      The Group acquired a 95% interest in Palletways Group Limited in July 2016 for R3,0 billion (£155,1 million). Palletways provides
      an express delivery solution for small consignments of palletised freight through more than 400 depots and 14 hubs across
      Europe. As the initial accounting for the business combination was not complete at the time that the financial statements were
      authorised for issue no further disclosures are made.

      Dividend declaration
      Shareholders are advised that a preference and an ordinary dividend has been declared by the board of Imperial on 22 August
      2016. For more details please refer to the dividend declaration.


Business combinations during the year
A number of businesses were acquired during the year to complement existing businesses. These businesses are individually and collectively immaterial in
terms of size and value. The fair value of assets acquired and liabilities assumed at the acqusition date were as follows.



                                                               Individually
                                                                 immaterial
R million                                                      acquisitions                                               

Assets
Intangible assets                                                       113
Property, plant and equipment                                            52
Transport fleet                                                          14
Investments, loans and associates and joint ventures                     46
Inventories                                                              67
Trade and other receivables                                             160
Cash resources                                                           89

                                                                        541

Liabilities
Net income tax liabilities                                               31
Interest-bearing borrowings                                              46
Trade, other payables and provisions                                    164

                                                                        241

Acquirees' carrying amount at acquisition                               300
Non-controlling interests                                               (27)

Net assets acquired                                                     273
Purchase consideration transferred                                      352

Cash paid                                                               331
Contingent consideration                                                 21

Excess of purchase price over net assets acquired                        79



Details of contingent consideration
The contingent consideration requires the Group to pay the vendors an additional amount of R21 million over three years if the entities' net profit after
tax exceeds certain profit targets.

Acquisition costs
Acquisition costs for business acquisitions concluded during the year amounted to R9 million and have been recognised as an expense in profit or loss in the
'Other non-operating items' line.

Impact of the acquisitions on the results of the group
From the dates of acquisition the businesses acquired during the year contributed revenue of R1 071 million, operating profit of R22 million. Had all the
acquisitions been consolidated from 1 July 2015, they would have contributed revenue of R1 588 million, operating profit of R3 million. The Group's
continuing revenue for the year would have been R116 255 million, operating profit would have been R5 874 million.

Other details
Trade and other receivables had gross contractual amounts of R167 million of which R7 million was doubtful. Non-controlling interests have been calculated
based on their proportionate share in the acquiree's net assets. None of the resulting goodwill is deductible for tax purposes.



Segmental information
                                                 GROUP                                                                            VEHICLE IMPORT,      VEHICLE RETAIL,      MOTOR-RELATED
Segment profit or loss -                       CONTINUING            LOGISTICS            LOGISTICS            TOTAL            DISTRIBUTION AND        RENTAL AND       FINANCIAL SERVICES       TOTAL            HEAD-OFFICE AND
Continuing operations                          OPERATIONS             AFRICA            INTERNATIONAL        LOGISTICS             DEALERSHIPS      AFTER MARKET PARTS     AND PRODUCTS          VEHICLES            ELIMINATIONS

R million                                    2016       2015      2016      2015        2016     2015      2016      2015        2016      2015       2016      2015      2016       2015     2016     2015        2016      2015

Revenue                                   115 738    107 453    27 119    25 347      20 793   19 071    47 912    44 418      28 473    27 437     41 045    37 547     1 634     1 429    71 152   66 413      (3 326)   (3 378)

- South Africa                             66 010     67 101    15 266    15 372                         15 266    15 372      22 975    23 898     29 461    29 780     1 634     1 429    54 070   55 107      (3 326)   (3 378)
- Rest of Africa                           13 288     10 481    11 853     9 974                         11 853     9 974       1 306       388        129       119                         1 435      507
- International                            36 440     29 871                   1      20 793   19 071    20 793    19 072       4 192     3 151     11 455     7 648                        15 647   10 799

Operating profit                            5 893      5 671     1 530     1 587       1 013      958     2 543     2 545       1 149       960      1 677     1 677       669       620     3 495    3 257        (145)     (131)

- South Africa                              3 724      3 828       750       952                            750       952       1 033       885      1 403     1 491       669       620     3 105    2 996        (131)     (120)
- Rest of Africa                              853        668       780       632                            780       632          37         4         36        32                            73       36
- International                             1 316      1 175                   3       1 013      958     1 013       961          79        71        238       154                           317      225         (14)      (11)

Depreciation, amortisation,
impairments and recoupments                 3 119      2 878       902       924         777      739     1 679     1 663         696       546        721       662       150       117     1 567    1 325        (127)     (110)

- South Africa                              1 924      1 754       604       636                            604       636         670       531        626       579       150       117     1 446    1 227        (126)     (109)
- Rest of Africa                              326        305       298       288                            298       288           8         3         21        14                            29       17          (1)
- International                               869        819                             777      739       777       739          18        12         74        69                            92       81                    (1)

Net finance costs                           1 440      1 194       533       407         207      180       740       587         495       494        346       313        (5)                836      807        (136)     (200)

- South Africa                                913        825       314       281                            314       281         469       473        279       271        (5)                743      744        (144)     (200)
- Rest of Africa                              244        135       219       126                            219       126          17         3          8         6                            25        9
- International                               283        234                             207      180       207       180           9        18         59        36                            68       54           8

Pre-tax profits*                            3 841      4 093       777     1 037         585      647     1 362     1 684         433       458      1 317     1 388       712       647     2 462    2 493          17       (84)

- South Africa                              2 663      2 893       424       661                            424       661         357       399      1 123     1 260       712       647     2 192    2 306          47       (74)
- Rest of Africa                              389        404       353       373                            353       373           9         5         27        26                            36       31
- International                               789        796                   3         585      647       585       650          67        54        167       102                           234      156         (30)      (10)

Additional segment information -
Continuing operations

Analysis of revenue by type

- Sale of goods                            70 228     63 966    10 065     8 216                         10 065     8 216      24 750    23 441     35 413    32 308                        60 163   55 749                     1
- Rendering of services                    45 510     43 487    16 947    17 008      20 793   19 070    37 740    36 078       2 099     2 295      5 035     4 515       613       594     7 747    7 404          23         5

                                          115 738    107 453    27 012    25 224      20 793   19 070    47 805    44 294      26 849    25 736     40 448    36 823       613       594    67 910   63 153          23         6
Inter-group revenue                                                107       123                    1       107       124       1 624     1 701        597       724     1 021       835     3 242    3 260      (3 349)   (3 384)

                                          115 738    107 453    27 119    25 347      20 793   19 071    47 912    44 418      28 473    27 437     41 045    37 547     1 634     1 429    71 152   66 413      (3 326)   (3 378)

Analysis of depreciation, amortisation,
impairment and recoupments                  3 119      2 878       902       924         777      739     1 679     1 663         696       546        721       662       150       117     1 567    1 325        (127)     (110)

- Depreciation and amortisation             2 601      2 520       717       731         619      575     1 336     1 306         581       553        653       659       144       117     1 378    1 329        (113)     (115)
- Recoupments and impairments                 (70)       (57)      (35)      (20)        (35)     (16)      (70)      (36)                   (7)        (1)      (19)        6                   5      (26)         (5)        5
- Amortisation and impairment of
  intangible assets arising on
  business combinations                       588        415       220       213         193      180       413       393         115                   69        22                           184       22          (9)

Share of result of associates and joint
ventures included in pre-tax profits          133         33        33        34          25       25        58        59         (19)       (3)        46        33        47        27        74       57           1       (83)

* Defined in the glossary of terms.

                                                                                                                                     VEHICLE IMPORT,
                                                                                                                                      DISTRIBUTION       VEHICLE RETAIL,     MOTOR-RELATED
                                                                    LOGISTICS              LOGISTICS                TOTAL                 AND           RENTAL AND AFTER   FINANCIAL SERVICES         TOTAL            HEAD-OFFICE AND
Segment financial position                     GROUP                 AFRICA             INTERNATIONAL             LOGISTICS           DEALERSHIPS         MARKET PARTS       AND PRODUCTS            VEHICLES            ELIMINATIONS        INSURANCE

R million                                  2016        2015^      2016          2015     2016       2015        2016       2015        2016      2015     2016      2015^    2016       2015       2016      2015        2016      2015     2016~    2015~

Assets
Intangible assets                         7 501       7 193      3 526       3 110      3 004      2 863       6 530      5 973         175       505      755       695                  (6)       930     1 194          41        26
Property plant and equipment             11 465      10 967      2 518       2 096      2 245      2 244       4 763      4 340       3 477     3 346    3 236     3 313       10          9      6 723     6 668         (21)      (41)
Transport fleet                           5 953       5 610      2 715       3 212      3 278      2 438       5 993      5 650                                                                                           (40)      (40)
Vehicles for hire                         3 469       3 603                                                                           1 534     1 757    1 723     1 669    1 071        988      4 328     4 414        (859)     (811)
Investment in associates and joint
ventures                                    687       1 199        342         300        167        139         509        439         (39)      (19)     154       100       55        600        170       681           8        79
Inventories                              16 717      15 465      1 498       1 448        314        211       1 812      1 659       8 288     7 659    6 361     5 822      436        480     15 085    13 961        (180)     (155)
Trade and other receivables              12 712      12 849      4 994       5 136      3 618      3 350       8 612      8 486       1 601     2 164    2 019     2 103      929        469      4 549     4 736        (449)     (373)
Other financial assets                        8          36          5           8          5          5          10         13           4        26       27                 85         85        116       111        (118)      (88)
Cash resources                               13          22                                                                                                                    13         22         13        22

Operating assets                         58 525      56 944     15 598      15 310     12 631     11 250      28 229     26 560      15 040    15 438   14 275    13 702    2 599      2 647     31 914    31 787      (1 618)   (1 403)

- South Africa                           32 248      34 312      9 039       9 034                             9 039      9 034      12 401    13 973   10 207    10 113    2 599      2 647     25 207    26 733      (1 998)   (1 455)
- Rest of Africa                          7 329       6 557      6 559       6 275                             6 559      6 275         652       201      118        81                            770       282
- International                          18 948      16 075                      1     12 631     11 250      12 631     11 251       1 987     1 264    3 950     3 508                          5 937     4 772         380        52

Liabilities
Retirement benefit obligations            1 531       1 157                             1 531      1 157       1 531      1 157
Maintenance and warranty contracts        3 156       3 191                                                                             102        17                       3 040      3 083      3 142     3 100          14        91
Trade and other payables and
provisions                               19 493      19 047      5 591       5 401      3 372      3 145       8 963      8 546       4 770     5 529    6 346     5 825      896        384     12 012    11 738      (1 482)   (1 237)
Other financial liabilities                 460         379        119         111          1          2         120        113          67        48       42        45       10          1        119        94         221       172

Operating liabilities                    24 640      23 774      5 710       5 512      4 904      4 304      10 614      9 816       4 939     5 594    6 388     5 870    3 946      3 468     15 273    14 932      (1 247)     (974)

 - South Africa                          13 949      14 794      3 609       3 682                             3 609      3 682       4 160     5 358    3 565     3 338    3 946      3 468     11 671    12 164      (1 331)   (1 052)
 - Rest of Africa                         2 539       1 896      2 101       1 824                             2 101      1 824         425        62       13        10                            438        72
 - International                          8 152       7 084                      6      4 904      4 304       4 904      4 310         354       174    2 810     2 522                          3 164     2 696          84        78

Net working capital*                      9 936       9 267        901       1 183        560        416       1 461      1 599       5 119     4 294    2 034     2 100      469        565      7 622     6 959         853       709

- South Africa                            7 345       7 253        235         336                               235        336       4 178     3 834    1 701     1 924      469        565      6 348     6 323         762       594
- Rest of Africa                            838         924        666         852                               666        852         147        62       24        11                            171        73           1        (1)
- International                           1 753       1 090                     (5)       560        416         560        411         794       398      309       165                          1 103       563          90       116

Net debt*                                16 520      14 327      5 249       4 872      3 955      4 150       9 204      9 022       5 822     4 661    2 000     2 482   (1 668)    (1 738)     6 154     5 405       1 162      (100)

- South Africa                            9 915       8 204      2 610       2 669                             2 610      2 669       5 244     4 185    1 686     2 199   (1 668)    (1 738)     5 262     4 646       2 043       889
- Rest of Africa                          2 821       2 454      2 639       2 209                             2 639      2 209         118       194       64        51                            182       245
- International                           3 784       3 669                     (6)     3 955      4 150       3 955      4 144         460       282      250       232                            710       514        (881)     (989)

Net capital expenditure                   4 138       4 519        880       1 046      1 027      1 173       1 907      2 219       1 288     1 199      779       844      228        649      2 295     2 692        (162)     (500)      98      108

- South Africa                            2 624       2 856        534         711                               534        711       1 228     1 182      701       710      228        649      2 157     2 541        (163)     (501)      96      105
- Rest of Africa                            416         369        346         335                               346        335          27         8       41        23                             68        31                              2        3
- International                           1 098       1 294                             1 027      1 173       1 027      1 173          33         9       37       111                             70       120           1         1

^ Restated as described in note 2.1 and 2.2.
* Defined in the glossary of terms
~ The assets and liabilities of the Insurance business are shown as held-for-sale at 30 June 2016 and at 30 June 2015



Glossary of terms

Net asset value per share                  - equity attributable to owners of Imperial divided by total ordinary shares in issue net of
                                             shares repurchased (the deferred ordinary shares only participate to the extent of their par
                                             value of 0,04 cents).

Net debt (segment report)                  - the aggregate of interest-bearing borrowings, non-redeemable, non-participating preference
                                             shares less cash resources.

Operating margin (%)                       - operating profit divided by revenue.

Pre-tax profits                            - calculated as profit before tax, impairment of goodwill, profit or loss on sale of
                                             investment in subsidiaries, associates and joint ventures and other businesses,
                                             and impairment losses on assets of disposal groups.

Return on invested capital (%)             - this is the return divided by the invested capital.
                                           - the return is calculated by reducing the operating profit by a blended tax rate, which is an
                                             average of the actual tax rates applicable in the various jurisdictions in which we operate,
                                             increased by the income from associates.
                                           - the invested capital is a 12 month average of shareholders equity plus non-controlling
                                             interests (ignoring the put option debit) plus preference shares plus net interest bearing debt
                                             (long term and short term less long term loans receivable less non financial services cash resources).
                                           - this is different to the prior year which has been restated to the new basis.

Weighted average cost of capital (WACC)    - calculated by multiplying the cost of each capital component by its proportional weight,
(%)                                          therefore: WACC = (after tax cost of debt % multiplied by average debt weighting) + (cost of
                                             equity multiplied by average equity weighting).



Corporate information

Directors
SP Kana# (Chairman), A Tugendhaft## (Deputy Chairman), MJ Lamberti (Chief Executive), OS Arbee (Chief Financial Officer), MP de Canha, P Cooper#, 
G Dempster#, T Dingaan#, RM Kgosana#, P Langeni#, P Michaux, MV Moosa##, RJA Sparks#, M Swanepoel, Y Waja#
# Independent non-executive ## Non-executive

Company Secretary
RA Venter

Group Investor Relations Manager
E Mansingh

Business address and registered office
Imperial Place, Jeppe Quondam, 79 Boeing Road East, Bedfordview, 2007

Share transfer secretaries
Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg, 2001

Sponsor
Merrill Lynch SA (Pty) Limited, The Place, 1 Sandton Drive, Sandton, 2196

The results announcement is available on the Imperial website: www.imperial.co.za

Date: 23/08/2016 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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