UNAUDITED GROUP RESULTS · 2 coMMentary COMMENTARY normalised headline earnings per share declined by 14% from 298 cents to 257 cents. revenue reduced by 8% to r5,3 billion from r5,7

UNAUDITED GROUP RESULTSand cash dividend declaration

for the six months ended 31 March 2013

FINANCIAL INFORMATION

1 highlights

2 coMMentary

2 review of operations

4 cBi-electric

6 nashua

8 reutech

8 Prospects

9 directorate and secretariat

9 cash dividend

10 Financial inForMation 10 condensed group income statement

10 condensed group statement of comprehensive income

11 condensed group balance sheet

12 condensed group cash flow statement

13 condensed group statement of changes in equity

14 condensed segmental analysis

15 notes

16 supplementary information

IBC coMPany inForMation

Incorporated in the Republic of South Africa Reg. no.: 1913/004355/06 Share code: RLOISIN code: ZAE000057428 Preference share code: RLZP ISIN code: ZAE00005930(“Reunert”, “the group” or “the company”)

1

UnaUdited GroUP resUlts and cash dividend declaration

Quick facts

headquarters:

Johannesburg, south africa

Founded:

1888

listed on Jse:

1948

sector: industrial goods and services (electronic and electrical equipment)

31 March 2013

revenue:

r5,3 billion

operating profit:

r583 million

Market capitilisation:

r15,4 billion

the group operates mainly in south africa with minor operations in australia, lesotho, Usa and Zimbabwe.

Financial resUlts six months ended

31 March2013

31 March2012

%change

revenue rm 5 272,2 5 748,8 â8operating profit rm 583,0 736,1 â21earnings per share cents 258,1 303,8 â15headline earnings per share cents 258,2 303,7 â15normalised headline earnings per share cents 256,5 298,0 â14net cash resources rm 593,0 263,8 á125dividend per share cents 95,0 95,0 –

The Reunert group manages a diversified portfolio of businesses in the fields of electrical engineering, information and communication technologies and defence and allied technologies.We believe that each of these businesses is capable of meeting the group’s objectives for sustainable growth and earnings. We will seek meaningful growth opportunities that are either compatible with our leading competencies or that are sensible, strategically-aligned extensions of our existing businesses.

otherGroup administrationProperty portfolio

NASHUA

REUTECH

Defence and allied

electronics

Information and Communication Technologies

CBI-ElECTRIC

Electrical engineering

2 coMMentary

COMMENTARYnormalised headline earnings per share declined by 14% from 298 cents to 257 cents. revenue reduced by 8% to r5,3 billion from r5,7 billion. this decrease was predominantly in the cBi-electric and nashua segments.

operating profit was 21% lower at r583 million. this decline was experienced across all segments and is attributable primarily to the prevailing difficult business environment.

Basic earnings reduced by 14% to r421 million. headline earnings per share decreased by 15% to 258 cents compared to 304 cents.

net cash resources at 31 March 2013 amounted to r593 million, reflecting an increase of r329 million over the same date in 2012.

Revenue reconciliation – March 2012 to March 2013

5 900

5 750

5 600

5 450

5 300

5 150

5 000

March 2012(Rm)

Volume LCR Price Other March 2013(Rm)

5 749

(250)

(215)(40) 28

5 272

Rm: Revenue 10 year history

6 000

5 000

4 000

3 000

2 000

1 000

0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

nH1 nH2

3


Gross margin reconciliation – March 2012 to March 2013

1 700

1 650

1 600

1 550

1 500

1 450

1 400

March 2012(Rm)

Volume LCR Price Other March 2013(Rm)

1 680

(75)

(43)(40) (13) 1 509

Rm: Operating profit 10 year history

1 000

800

600

400

200

0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

nH1 nH2

Cents: Normalised HEPS 10 year history

400

350

300

250

200

150

100

0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

nH1 nH2

4 coMMentary

Cashflow for the six months ended 31 March 2013

800

700

600

500

400

300

200

100

0

Opening balance

621593

Cashflow from operating activities

including traditional

working capital

Increase in

Quince asset rental book

Increase in device finance (Nashua Mobile)

Investing activities

Financing activities

Closing balance

99 (90) (12)(47) 22

reunert continues to make use of its surplus cash to fund the asset rental book and at 31 March 2013 r1,37 billion (2012: r1,2 billion) of reunert cash was used by Quince.

revieW oF oPerationscBi-electricUnder the current trading conditions, the revenue from our electrical business of r1,6 billion was reasonable. the delays in external infrastructure project roll-outs have significantly impacted the segment, whilst the strike within the port and transport sector affected production at african cables in october 2012. the instability in the mining sector exacerbated the situation further. exports within our low voltage business increased.

operating profit decreased by 20% to r234 million due to a reduction in revenue, margin pressures and an unfavourable product mix.

% Factory capacity utilisation

100

80

60

40

20

0

March 2009

September2009

March 2010

September2010

March 2011

September2011

March 2012

September2012

March 2013

– Low voltage – Energy cables – Telecom cables

cBi-electric: low voltagecBi-electric: low voltage has delivered a commendable performance in the current market. the local market remains at levels similar to those of the prior year, although there are signs of improved market share.

the business continued to experience strong demand for its products from export markets, mainly as a result of 4G cellular network rollouts in europe.

5


the slowdown in the australian mining sector negatively affected our australian operation resulting in a lower profit than achieved in 2012.

the group’s investment in itMatic, a process control and automation systems’ integrator, has performed to expectation. it has secured a sizeable contract in the solar energy sector for the delivery of inverters and related electrical equipment, which will be launched over the next year.

Low-voltage export sales by region

100%

80%

60%

40%

20%

0%

nNorth America nEurope nAfrica

nAustralia nFar East

FY2009 FY2010 FY2011 FY2012 March2013 nLocal

nExport

nForeign subsidiaries

65%

18%

17%

low voltage Product and segment mix (%) Fy2009 Fy2010 Fy2011 Fy2012 1H2013

residential and commercial 48 46 40 44 44industrial 11 9 8 6 7Mining 12 9 8 8 6automation and control 11 10 11 7 5retail 1 4 4 5 8Utilities 1 6 7 5 6solutions – – 5 5 6cBi offshore subsidiaries 15 16 16 19 17

cBi-electric: african cablesthe period under review has been characterised by extremely challenging market conditions. the delay in certain tender awards affected the energy cables business negatively. this was further exacerbated by the port and transport sector strike action in october 2012, which negatively affected factory output in that month due to delays in the delivery of raw materials.

the power cable industry is experiencing competitive market conditions that have resulted in margin reductions.

Further, the power installation division was underutilised due to delays in certain significant external projects, although maintenance and repair work continued at normal levels.

on a positive note african cables has secured several renewable energy orders. Further, the designation of power cables by the department of trade and industry is expected to enhance market share of local manufacturers’ sales to state owned entities.

6 coMMentary

Sales by market sector

nUtilities

nMining

nIndustry

nGeneral Market

nExports (Africa)

nOther

59%12%

5% 2012 2013

18%

5%

1%

45%

16%

8%

17%

8%6%

cBi-electric: aberdare atc telecom cablethe telecommunications cable operation again experienced a disappointing first six months. in the main this was due to low demand for copper cable from telkom. revenue was flat with strong demand for optical fibre cable supporting turnover. Margins remained under pressure in the fibre market.

telecoms Product mix (%) Fy2009 Fy2010 Fy2011 Fy2012 1H2013

optic fibre 20 26 18 19 37accessories and duct 3 4 4 3 4installations and services 0 1 1 2 3copper telecoms 77 69 77 76 56

nashUarevenues within the nashua segment declined by 9% to r3,3 billion, whilst operating profit decreased by 23% to r311 million.

nashua office automationthe office automation business reflected largely static revenues. the number of units sold in the first half was lower than the prior half year where certain significant tenders boosted revenues and operating profit. Furthermore, rand weakness resulted in lower margins as price increases could not be passed on to customers in a difficult and competitive market.

total document volumes continue to grow, with an annualised growth of 7%, whereas the operation’s machines in the field amount to 94 622 (2012: 92 456) at the end of March.

450400350300250200150100500

Million pages: Total Document Volume

2004 2005 2006 2007 2008 2009 2010 2011 2012

– Total – MFP – Printer(LHS) (RHS)

9080706050403020100

432 million

7


nashua communicationsthe businesses of nashua ecn and nashua communications were merged into a single operation with effect from 1 october 2012. the business had a challenging first half due to difficult market conditions. We are confident that the combined business is well-positioned with our converged communication offering.

sales and installations of the voiP solution continue to be robust, although with the decreased interconnect rates, revenue reflects only nominal growth. total minutes sold have increased from 329 million minutes in the six months to 31 March 2012 to 372 million minutes.


nCorporate

nGovernment

nRetail

nFinance houses

nExport sales70%

4%

14%

1%

11%

nashua Mobilenashua Mobile reflected a 12% decrease in revenue. this deterioration was, in part, expected as least cost routing (lcr) revenues continued to decline due to the drop in interconnect rates. the reduction in interconnect rates also resulted in enhanced hybrid packages from the networks, which negatively affected airtime revenue within this business. net connections increased by 57 684. however, these new contracts are generally at lower subscription rates which, together with reductions in the high value lcr business, resulted in a further decline in margin over the comparative period in the prior year.

nashua Mobile is in the process of renegotiating its service provider agreement with vodacom. discount rates have been reduced, which has negatively affected our margins.

six months ended Mar 2012 sept 2012 Mar 2013

subscriber base (closing at period end) 881 672 898 660 956 344number of subscribers signed up (connections) 99 634 114 773 98 841arPU (rand) 378 337 314churn % - total 15 15 9number of retail outlets 150 150 150

PansolutionsPansolutions delivered a consistent performance with last year.

Quince capitalQuince capital provides in-house financial solutions to customers of the nashua group of businesses.

Quince had a sound six months with new discounting exceeding expectations. this was a result of increased support from most of the larger nashua franchises, as well as increased traction within the Pansolutions sales channel. despite the poor economic conditions, Quince has continued to contain its bad debt levels. Both revenue and operating profit increased.

r million Fy2011 1h2012 Fy2012 1H2013

nashua book 1 260 1 310 1 431 1 510Quince asset rental book 76,8 45,5 21,1 7,0average monthly discounting 55,4 59,8 64,5 69,2

8 coMMentary

reUtechthe uneven demand and phasing of contract “roll-outs” that characterises the business is reflected in an increase of 2% in revenue and a decline of 29% in operating profit. the increase in revenue is largely due to the continued demand for mining surveillance radars as well as the additional revenues from the acquisition of the saaB Grintek business, offset by lower sales in Fuchs due to the timing of contract awards.

the decrease in operating profits is largely due to the impact of once-off costs associated with the acquisition of saaB Grintek, which is now complete.


nMining

nDefence

nCommercial

23%

65%

12%

2012 2013 51%49%

Local vs. export sales

nLocal

nExport

ProsPectsWhile reunert will plan for and pursue earnings growth, given the tough trading conditions, it will continue to focus on rigorous cost control, effective cash management and extracting efficiencies from its businesses. Further, we will continue to act with prudence and foresight in the short term.

directorate and secretarialWith effect from 7 december 2012 Mr trevor Munday was appointed as a member of the audit committee.

Mr Pat Gallagher retired from the board on 28 March 2013. the board extends its thanks to him for his service over the years and wishes him and his wife all the best in their retirement.

With effect from 1 april 2013 Ms louisa Mojela was appointed to the board and the audit committee.

With effect from 17 May 2013 Ms yolanda cuba resigned from the board and the audit committee.

Dividends paid (Cents per share)

500

400

300

200

100

073

241

78

241

2004

nInterim nFinal nSpecial

2005 2006 2007 2008

65

188

67

220

77

253

95

275

2009 2010 2011 2012 2013

9563

210

52

170

40

120

200

9


cash dividendnotice is hereby given that a gross interim cash dividend no 174 of 95 cents per ordinary share (2012: 95 cents per share) has been declared by the directors for the six months ended 31 March 2013.

the dividend has been declared from income reserves and no secondary tax on companies’ credits have been used.

a dividend withholding tax of 15% will be applicable to all shareholders who are not exempt from or who do not qualify for a reduced rate of withholding tax. the net dividend payable to shareholders subject to withholding tax at a rate of 15% thus amounts to 80,75 cents per share.

the issued share capital at the declaration date is 200 807 585 ordinary shares and 350 000 5,5% cumulative preference shares.

reunert’s income taxation reference number is 9100/101/71/7P.

in compliance with the requirements of strate, the following dates are applicable:

last date to trade (cum dividend) thursday, 13 June 2013

First date of trading (ex dividend) Friday, 14 June 2013

record date Friday, 21 June 2013

Payment date Monday, 24 June 2013

shareholders may not dematerialise or rematerialise their share certificates between Friday, 14 June 2013 and Friday, 21 June 2013, both days inclusive.

on behalf of the board

Trevor Munday David RawlinsonChairman Chief Executive

sandton

20 May 2013

10 Financial inForMation

Financial informationCondensed group income statement

six months ended 31 March

notes

2013R million

(Unaudited)

2012r million

(Unaudited)%

change

year ended30 september

2012r million(audited)

revenue 5 272,2 5 748,8 (8) 11 662,2

earnings before interest, taxation, depreciation, amortisation, other income and dividends 637,0 792,2 (20) 1 629,7 other income 14,4 11,2 31,0

earnings before interest, taxation, depreciation and amortisation (eBitda) 651,4 803,4 (19) 1 660,7 depreciation and amortisation 68,4 67,3 2 136,1

operating profit 1 583,0 736,1 (21) 1 524,6 net interest and dividend income 2 13,6 22,1 (38) 41,8

Profit before taxation 596,6 758,2 (21) 1 566,4 taxation 171,5 260,0 (34) 483,8

Profit after taxation 425,1 498,2 (15) 1 082,6

Profit attributable to:non-controlling interests 4,6 6,6 (30) 15,9 equity holders of reunert 420,5 491,6 (14) 1 066,7

Basic earnings per share (cents) 3 & 4 258,1 303,8 (15) 658,2 diluted earnings per share (cents) 3 & 4 255,2 301,6 (15) 654,2

headline earnings per share (cents) 3 & 4 258,2 303,7 (15) 658,3 diluted headline earnings per share (cents) 3 & 4 255,2 301,5 (15) 654,3 normalised headline earnings per share (cents) 3 & 4 256,5 298,0 (14) 644,4 normalised diluted headline earnings per share (cents) 3 & 4 253,6 295,9 (14) 640,5 cash dividend per ordinary share declared (cents) 95,0 95,0 – 370,0

Condensed group statement of comprehensive incomesix months ended 31 March

2013R million

(Unaudited)

2012r million

(Unaudited)



Profit after taxation 425,1 498,2 1 082,6 other comprehensive income, net of taxation: Gains/(losses) arising from translating the financial

results of foreign subsidiaries 3,2 (1,4) –*

Total comprehensive income 428,3 496,8 1 082,6

Total comprehensive income attributable to:non-controlling interests 4,6 6,6 15,9 equity holders of reunert 423,7 490,2 1 066,7

* Nil due to rounding.

11


Condensed group balance sheet

notes

31 March2013

R million(Unaudited)

31 March2012

r million(Unaudited)

30 september2012

r million(audited)

Non-current assetsProperty, plant and equipment and intangible assets 685,9 684,2 706,8 Goodwill 6 706,0 661,1 707,0 investments and loans 7 61,9 41,8 64,3 accounts receivable 1 186,7 1 023,2 1 066,5 deferred taxation 28,5 27,6 33,3

Non-current assets 2 669,0 2 437,9 2 577,9

Current assets inventory and contracts in progress 1 045,7 924,1 969,3 accounts receivable, derivative assets and taxation 2 235,8 2 307,7 2 343,9 cash and cash equivalents 818,8 454,5 696,9

Current assets 4 100,3 3 686,3 4 010,1

Total assets 6 769,3 6 124,2 6 588,0

Equity attributable to equity holders of Reunert ordinary 4 449,0 3 983,0 4 441,7 Preference 0,7 0,7 0,7

4 449,7 3 983,7 4 442,4 non-controlling interests 52,5 47,4 56,1

Total equity 4 502,2 4 031,1 4 498,5

Non-current liabilitiesdeferred taxation 122,7 106,3 127,4 long-term borrowings 8 26,7 0,4 25,4

Non-current liabilities 149,4 106,7 152,8

Current liabilitiesaccounts payable, derivative liabilities, provisions and taxation 1 891,7 1 795,7 1 860,1 Bank overdrafts and short-term portion of long-term borrowings (including finance leases) 226,0 190,7 76,6

Current liabilities 2 117,7 1 986,4 1 936,7

Total equity and liabilities 6 769,3 6 124,2 6 588,0

12 FINANCIAL INFORMATION

Condensed group cash flow statementsix months ended 31 March

2013R million

(Unaudited)

2012r million

(Unaudited)



eBitda 651,4 803,4 1 660,7 increase in net working capital (31,7) (360,8) (398,9)other (net) 14,8 7,5 26,2

cash generated from operations 634,5 450,1 1 288,0 net interest and dividend income 13,6 22,1 41,8 taxation paid (194,5) (213,1) (447,2)dividends paid (including to non-controlling interests) (456,1) (422,8) (577,4)

net cash flows from operating activities (2,5) (163,7) 305,2 net cash flows from investing activities (46,8) (151,1) (291,2)

capital expenditure (52,6) (52,2) (106,5)net cash flows from acquisition of businesses – – (76,8)Payment of outstanding purchase consideration for previous year’s acquisitions – (90,9) (91,5)non-current loans granted – – (28,5)other 5,8 (8,0) 12,1

net cash flows from financing activities 21,6 14,0 42,1

shares issued 20,5 14,3 42,5 other 1,1 (0,3) (0,4)

(Decrease)/increase in net cash resources (27,7) (300,8) 56,1 Net cash resources at the beginning of the period 620,7 564,6 564,6

Net cash resources at the end of the period 593,0 263,8 620,7

cash and cash equivalents 818,8 454,5 696,9 Bank overdrafts (225,8) (190,7) (76,2)

Net cash resources at the end of the period 593,0 263,8 620,7

13


Condensed group statement of changes in equitysix months ended 31 March

2013R million

(Unaudited)

2012r million

(Unaudited)



share capital and premium Balance at the beginning of the period 242,8 200,3 200,3 issue of shares 20,5 14,3 42,5

Balance at the end of the period 263,3 214,6 242,8 share-based payment reserve Balance at the beginning of the period 766,9 751,0 751,0 share-based payment expense 11,0 7,9 15,9

Balance at the end of the period 777,9 758,9 766,9 equity transactions with Bee partner and non-controlling shareholder Balance at the beginning of the period (34,9) (35,3) (35,3) transferred to retained income (0,4) – – acquisition of non-controlling interest – 0,4 0,4

Balance at the end of the period (35,3) (34,9) (34,9)Bee shares* (276,1) (276,1) (276,1)treasury shares (1 253,6) (1 253,6) (1 253,6)non-distributable reserves 3,9 3,9 3,9 Foreign currency translation reserves Balance at the beginning of the period (2,8) (2,8) (2,8) other comprehensive income 3,2 (1,4) –

Balance at the end of the period 0,4 (4,2) (2,8)retained earnings Balance at the beginning of the period 4 996,2 4 493,0 4 493,0 Profit after taxation attributable to equity holders of reunert 420,5 491,6 1 066,7 transferred from non-distributable reserves 0,4 – – cash dividends declared and paid (447,9) (409,5) (563,5)

Balance at the end of the period 4 969,2 4 575,1 4 996,2

equity attributable to equity holders of reunert 4 449,7 3 983,7 4 442,4 non-controlling interests Balance at the beginning of the period 56,1 55,2 55,2 share of total comprehensive income 4,6 6,6 15,9 dividends declared and paid (8,2) (13,3) (13,9) acquisition of non-controlling interest – (1,1) (1,1)

Balance at the end of the period 52,5 47,4 56,1

Total equity at end of the period 4 502,2 4 031,1 4 498,5 * These are shares held by Bargenel Investment Limited (Bargenel), a company sold by Reunert to an accredited BEE partner in 2007.

Until the amount owing by the BEE partner is repaid to Reunert, Bargenel is to be consolidated by the group as the significant risks and rewards of ownership of the equity have not passed to the BEE partner.


Condensed segmental analysissix months ended 31 March

2013R million

(Unaudited)%

of total

2012r million

(Unaudited)%

of total%

change



%of total

Revenue*cBi-electric 1 577,8 30 1 738,3 30 (9) 3 634,3 31 nashua 3 308,3 63 3 636,1 63 (9) 7 218,3 62 reutech 380,5 7 372,6 7 2 805,7 7 other 5,6 – 1,8 – 3,9 –

Revenue as reported 5 272,2 100 5 748,8 100 (8) 11 662,2 100 * Inter-segment revenue

is immaterial and has not been separately disclosed.

Operating profit cBi-electric 233,8 40 292,2 40 (20) 592,9 39 nashua 310,5 53 402,5 55 (23) 838,6 55 reutech 49,3 8 69,1 9 (29) 150,5 10 other (10,6) (1) (27,7) (4) 62 (57,4) (4)

Operating profit as reported 583,0 100 736,1 100 (21) 1 524,6 100

31 March2013

R million%

of total

31 March2012

r million%

of total

30 september2012

r million%

of total

Total assets cBi-electric 1 752,9 26 1 581,8 26 1 515,2 23 nashua 4 184,4 62 3 899,1 64 4 101,6 62 reutech 604,9 9 460,2 7 598,2 9 other* 227,1 3 183,1 3 373,0 6

Total assets as reported 6 769,3 100 6 124,2 100 6 588,0 100 * Included in Other are bank balances of Rnil (2012: Rnil; September 2012: R206,4 million) relating to the group’s treasury function.

15


Notes

31 March2013


31 March2012


30 september2012

r million(audited)

1. OPERATING PROFIT operating profit includes:– cost of sales 3 763,0 4 068,8* 8 130,9 – realised profit/(loss) on foreign exchange

and derivative instruments 4,1 (6,5) (0,1)– Unrealised gain on foreign exchange

and derivative instruments 9,9 22,5 14,3 * To improve disclosure certain costs have been reallocated

to cost of sales.

2. NET INTEREST AND DIvIDEND INCOMEinterest income 18,7 26,2 52,0 interest expense (5,1) (4,1) (10,7)dividend income – – 0,5

total 13,6 22,1 41,8

3. NUMBER OF SHARES USED TO CAlCUlATE EARNINGS PER SHAREWeighted average number of shares in issue used to determine basic earnings, headline earnings and normalised headline earnings per share (millions of shares) 162,9 161,8 162,0 adjusted by the dilutive effect of unexercised share options granted (millions of shares) 1,9 1,2 1,0

Weighted average number of shares used to determine diluted basic, diluted headline and diluted normalised headline earnings per share (millions of shares) 164,8 163,0 163,0

4.1 HEADlINE EARNINGSProfit attributable to equity holders of reunert 420,5 491,6 1 066,7 Headline earnings are determined by eliminating the effect of the following items from attributable earnings:

net loss/(gain) on disposal of property, plant and equipment and intangible assets (after tax charge of r0,1 million (2012: rnil)(september 2012: r0,4 million)) 0,1 (0,2) (1,0)Gain on change in shareholding in investment (after tax charge of rnil) – – (0,3)impairment charge recognised for property, plant and equipment (after tax charge of rnil (2012: rnil)(september 2012: r0,5 million)) – – 1,4

headline earnings 420,6 491,4 1 066,8


31 March2013


31 March2012


30 september2012

r million(audited)

4.2 NORMAlISED HEADlINE EARNINGS (UNAUDITED FOR All PERIODS)#

headline earnings (refer to note 4.1) 420,6 491,4 1 066,8 It is the group’s policy to determine normalised headline earnings by eliminating the effect of the following items from attributable headline earnings:net economic interest in profit attributable to all Bee partners (refer to note 5) (2,8) (9,2) (22,2)Bee share of headline and normalised headline earnings adjustments – – (0,3)

normalised headline earnings 417,8 482,2 1 044,3

5. BEE TRANSACTIONS (UNAUDITED FOR All PERIODS)#

It is the group’s policy that where the significant risks and rewards of ownership in respect of their equity interests have not passed to the BEE partners, these are not recognised as non-controlling interests.had the non-controlling interests been recognised, the effect would be the following:– net economic interest in current period profit that

is attributable to all Bee partners 2,8 9,2 22,2 – Balance sheet interest that is economically

attributable to all Bee partners 118,3 94,5 107,7 # The unaudited pro forma financial information above has been prepared for illustrative purposes only to provide information

on how the normalised earnings adjustments might have impacted on the financial results of the group. Because of its nature, the unaudited pro forma financial information may not be a fair reflection of the group’s results of operation, financial position, changes in equity or cash flows, insofar as the economic impact of BEE transactions is concerned.

The underlying information used in the preparation of the unaudited pro forma financial information has been prepared using the relevant group accounting policy. The amounts of the adjustments are consistent with the amounts recorded under International Financial Reporting Standards (IFRS).

The adjustments are expected to continue until such time as risks and rewards of ownership transfer to the BEE partners. The directors of the company are responsible for the compilation, contents and preparation of the unaudited pro forma financial

information. Their responsibility includes determining that the unaudited pro forma financial information has been properly compiled on the basis stated; the basis is consistent with the accounting policy of the group; and the pro forma adjustments are appropriate for the purposes of the unaudited pro forma financial information disclosed in terms of the JSE Limited Listings Requirements.

Notes (continued)

17


31 March2013


31 March2012


30 september2012

r million(audited)

6. GOODwIllcarrying value at the beginning of the period 707,0 654,9 654,9 acquisition of businesses – – 44,0 adjustment to goodwill on finalisation of acquisitions made in the prior period (1,0) 6,2 8,1

carrying value at the end of the period 706,0 661,1 707,0

7. INvESTMENTS AND lOANSloans – at cost 60,2 40,2 62,6 other unlisted investments – at cost 1,7 1,6 1,7

carrying value at the end of the period 61,9 41,8 64,3

8. lONG-TERM BORROwINGStotal long-term borrowings (including finance leases) 26,9 0,4 25,8 less: short-term portion (including finance leases) (0,2) – (0,4)

26,7 0,4 25,4

9. BASIS OF PREPARATIONthese condensed consolidated financial statements have been prepared in accordance with the framework concepts and the recognition and measurement criteria of iFrs and its interpretations adopted by the international accounting standards Board (iasB) in issue and effective for the group at 30 september 2013 and the ac500 standards issued by the accounting Practices Board. this condensed consolidated information has been prepared using the information as required by ias 34 – interim Financial reporting, and complies with the listings requirements of the Jse and the requirements of the companies act, no. 71 of 2008 of south africa. this report was compiled under the supervision of Mc Krog ca (sa) (chief Financial officer).

the group’s accounting policies, as per the audited annual financial statements for the year ended 30 september 2012, have been consistently applied. these accounting policies comply with iFrs.

10. UNCONSOlIDATED SUBSIDIARythe financial results of cafca limited, a subsidiary incorporated in Zimbabwe, have not been consolidated as the group does not have management control. the amounts involved are not material to the group’s results.

at 31 March 2013 cafca’s retained earnings amounted to Us$9,3 million.

11. RElATED PARTy TRANSACTIONSthe group entered into various transactions with related parties, which occurred in the ordinary course of business and under terms that are no more favourable than those arranged with independent third parties.

12. EvENTS AFTER BAlANCE SHEET DATEno events have occurred after the balance sheet date that require additional disclosure or adjustment to the results presented.


Supplementary information

r million (unless otherwise stated)

31 March2013

(Unaudited)

31 March2012

(Unaudited)

30 september2012

(audited)

net worth per share (cents) 2 728 2 459 2 732 current ratio (:1) 1,9 1,9 2,1 net number of ordinary shares in issue (million) 163,1 162,0 162,6

number of ordinary shares in issue (million) 200,8 199,7 200,3 less: Bee shares (million) (18,5) (18,5) (18,5)less: treasury shares (million) (19,2) (19,2) (19,2)

capital expenditure 52,6 52,2 106,5

– expansion 25,0 39,3 79,9 – replacement 27,6 12,9 26,6

capital commitments in respect of property, plant and equipment 89,6 28,7 78,3

– contracted 81,0 14,2 16,5 – authorised not yet contracted 8,6 14,5 61,8

commitments in respect of operating leases 82,9 175,0 99,2

directors ts Munday (chairman)* ndB orleyn**sd Jagoe* sG Pretorius* Mc Krog (chief Financial officer) dJ rawlinson (chief executive)lM Mojela* dr Jc van der horst*tJ Motsohi* r van rooyen** Independent non-executive ** Non-executive

reGistered oFFicelincoln Wood office Park Po Box 7843916 – 10 Woodlands drive sandton Woodmead 2146sandtontelephone +27 11 517 9000

transFer secretariescomputershare investor services (Pty) limited, 70 Marshall street, Johannesburg, 2001Po Box 61051, Marshalltown, 2107

sPonsorrand Merchant Bank (a division of Firstrand Bank limited)

secretaries’ certiFicationin terms of section 88(2)(a) of the companies act, 71 of 2008, we certify that, to the best of our knowledge and belief, the company has lodged with the companies and intellectual Property commission for the financial period ended 31 March 2013 all such returns and notices as are required of a public company in terms of the aforesaid act and that all such returns and notices appear to be true, correct and up to date.

Karen louwFor Reunert Management Services Proprietary limitedGroup company secretaries

enQUiriescarina de Klerk +27 11 517 9000 or e-mail [email protected] more information log on to the reunert website at www.reunert.com

21 May 2013

www.reunert.co.za

Documents

UNAUDITED GROUP RESULTS · 2 coMMentary COMMENTARY normalised headline earnings per share declined by 14% from 298 cents to 257 cents. revenue reduced by 8% to r5,3 billion from r5,7