30 000 000 A preferred ordinary shares of R1,00 each
30
30
30
30
6 000 000 B1 ordinary shares of R1,00 each
6
6
6
6
10 500 000 B2 ordinary shares of R1,00 each
11
11
11
11
200 000 B3 ordinary shares of R1,00 each
3
3
3
3
10 redeemable preference shares of R1,00 each
200
200
200
200
Issued and fully paid:
103 246 983 (2007 - 103 005 455) ordinary shares of R1,00 each
103
103
103
103
25 104 976 preferred ordinary shares of R1,00 each
25
25
25
25
5 422 829 B1 ordinary shares of R1,00 each
6
6
6
6
3 296 657 B2 ordinary shares of R1,00 each
3
3
3
3
1 021 422 B3 ordinary shares of R1,00 each
1
1
1
1
138
138
138
138
Under control of the directors:
- for the purposes of the employee share option schemes 9 082 047 shares (2007 - 8 824 919 shares).
- in terms of a shareholders' resolution 5 153 918 shares (2007 - 5 330 818 shares).
Details of the employee share incentive schemes are set out in notes 33 and 34. Following the unbundling of Hulamin
in 2007, the options granted to employees in terms of the original employee share option schemes which had not been
exercised at the unbundling date were converted into two components, a Tongaat Hulett Limited component and a Hulamin
Limited component, as described in note 33. At 31 December 2008 employees have an option to subscribe for 1 099 590
shares at an average price of R32,39 per share (2007 - 1 315 150 shares at an average price of R31,98 per share) in respect of
the Tongaat Hulett component and the equivalent of approximately 143 000 shares in respect of the Hulamin component
(2007 - 161 000 shares).
The original share option schemes were replaced in 2005 with a new share incentive scheme comprising the Share
Appreciation Right Scheme 2005, the Long Term Incentive Plan 2005 and the Deferred Bonus Plan 2005.
12.
BEE HELD CONSOLIDATION SHARES (Rmillion)
Consolidated
2008
2007
25 104 976 A preferred ordinary shares of R1,00 each
839
839
5 422 829 B1 ordinary shares of R1,00 each
136
136
3 296 657 B2 ordinary shares of R1,00 each
46
46
1 021 422 B3 ordinary shares of R1,00 each
45
45
1 066
1 066
Less amortisation of IFRS 2 charge on shares relating to the BEE employee share ownership plans (notes 3 and 34)
(43)
(13)
1 023
1 053
13.
DEFERRED TAX (Rmillion)
Consolidated
Company
2008
2007
2008
2007
Balance at beginning of year
673
1 055
487
472
Currency alignment
3
Subsidiaries consolidated
4
Hulamin unbundling
(450)
Accounted for in equity
(6)
1
(6)
Current year income statement (relief)/charge on:
Earnings before exceptional items
(11)
68
(7)
13
Rate change adjustment
(22)
(17)
Prior years' (relief)/charge
(55)
(5)
12
2
Balance at end of year
582
673
469
487
Comprising temporary differences relative to :
Property, plant and equipment
409
395
382
372
Growing crops
102
47
36
28
Export partnership
142
203
142
203
Current assets
78
63
29
2
Current liabilities
(26)
(99)
(25)
(98)
Tax losses
(5)
(12)
(11)
Other
(118)
76
(95)
(9)
582
673
469
487
14.
BORROWINGS (Rmillion)
Consolidated
Company
2008
2007
2008
2007
Long-term
1 212
410
1 155
351
Short-term and bank overdraft
1 373
977
1 166
918
2 585
1 387
2 321
1 269
Long-term borrowings comprise:
Effective interestrate (%)
Secured:
SA Rand
Finance leases (refer to note 28)
13,0
1
1
1
1
Repayable 2009/2016
11,3
35
28
Foreign
Repayable 2009/2012
14,9
35
31
71
60
1
1
Unsecured:
SA Rand
Long-term portion repayable 2010/2014
3 months JIBAR + 1,35%
1 200
350
1 200
350
Foreign
Repayable 2009/2012
nil
9
1 209
350
1 200
350
Long-term borrowings
1 280
410
1 201
351
Less: Current portion included in short-term borrowings
68
46
1 212
410
1 155
351
Plant and machinery in Mozambique subsidiaries with a book value of R287 million (2007 - R248 million) are encumbered
as security for the secured long-term borrowings and certain short-term borrowings of R143 million (2007 - R111 million).
Short-term borrowings comprise call loans and bank overdrafts with various South African financial institutions at interest
rates linked to the prime overdraft rate as well as short-term borrowings in Mozambique equivalent to R143 million
(2007 - R111 million).
Summary of future loan repayments by financial year:
Year
2010
2011
2012
2013
2014
Rmillion
113
113
101
90
795
In terms of the company's articles of association the borrowing powers of Tongaat Hulett are limited to R5 billion.
The non-recourse equity-settled BEE borrowings comprise:
Effective interest rate (%)
4 122 000 Class A redeemable preference shares
8,486 nacs
365
412
4 122 000 Class B redeemable preference shares
10,873 nacs
438
413
Accrued dividends
40
40
843
865
Less: BEE cash resources
51
53
792
812
These borrowings relate to Tongaat Hulett's black economic
empowerment partners, yoMoba SPV (Pty) Limited and TH Infrastructure SPV
(Pty) Limited, which have been fully consolidated in terms of IFRS.
yoMoba SPV (Pty) Limited owns 11 157 767 A preferred ordinary shares and
TH Infrastructure SPV (Pty) Limited owns 13 947 209 A preferred ordinary
shares in Tongaat Hulett.
The preference shares are redeemable by no later than 30
June 2014 and have a fixed coupon payable semi-annually on 2 January and
1 July each year. The total debt due will be settled by the SPV's
utilising preferred ordinary dividends received from Tongaat Hulett and
by the shares that they hold in Tongaat Hulett and will have no further
impact on the cash flows of Tongaat Hulett. These SPV's will continue to
be consolidated while Tongaat Hulett carries a residual risk in these
entities.
16.
PROVISIONS (Rmillion)
Consolidated
Company
2008
2007
2008
2007
Post-retirement medical aid obligations (note 31)
223
209
223
209
Retirement gratuity obligations (note 31)
55
51
55
51
Other
1
1
1
1
279
261
279
261
17.
TRADE AND OTHER PAYABLES (Rmillion)
Consolidated
Company
2008
2007
2008
2007
Accounts payable
1 476
1 331
584
473
Maize obligation - interest bearing
373
163
373
163
1 849
1 494
957
636
The directors consider that the carrying amount of trade and other payables approximates their fair value.
18.
OPERATING PROFIT (Rmillion)
Consolidated
Company
2008
2007
2008
2007
Revenue
7106
6 395
5 694
4 762
Cost of sales
(5 578)
(5 072)
(4 680)
(4 063)
Administration expenses
(459)
(589)
(400)
(419)
Marketing and selling expenses
(179)
(159)
(151)
(122)
Other income
242
263
364
357
Profit from Tongaat Hulett operations
1 132
838
827
515
Capital profit from land (refer to note 19)
22
48
6
1
Capital profit on insurance claim (refer to note 19)
49
49
BEE IFRS 2 charge and transaction costs
(33)
(383)
(31)
(379)
Valuation adjustments
2
(1)
(7)
Fair value adjustment of investment in Hulamin
3 348
3 348
Operating profit after corporate transactions
1 172
3 850
844
3 485
Disclosable items included in operating profit:
Dividends received from subsidiaries:
Triangle Sugar
35
53
35
53
Other subsidiaries
294
247
Loss on disposal of plant and equipment
3
2
1
Amortisation of intangible assets
2
1
Depreciation charged:
Buildings
11
9
6
5
Plant and equipment
186
182
169
171
Vehicles and other
47
31
16
16
Growing crops fair valuation
153
44
29
11
Management fees paid to subsidiaries
1
1
Management fees paid to third parties
4
4
Technical fees paid
11
16
11
16
Operating lease charges (property, plant and vehicles)
16
11
14
9
Share-based payments:
IFRS 2 charge on share options, SARS, LTIP and DBP
27
42
18
39
BEE IFRS 2 charge
30
333
28
332
Auditors' remuneration:
Fees
6
5
4
3
Other services
2
1
1
1
Net (losses)/gains on:
Fair value hedges, losses on the hedging instrument
(4)
(17)
(4)
(17)
Fair value hedges, gains on the hedged item
4
17
4
17
Loans and receivables designated at fair value through profit or loss
(6)
Valuation adjustments on financial instruments and other items:
