Bidcorp

There were no material acquisitions concluded during the year.

The Group has commitments at June 30 of approved contracted capital expenditure of R568,7 million (2015: R407,2 million) and not contracted for capital expenditure of R939,4 million (2015: R989,6 million). It is anticipated that capital expenditure will be financed out of existing cash resources.

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

Valuation technique

The expected payments (fair value) are determined by considering the possible scenarios of forecast EBITDA’s, the amount to be paid under each scenario and the probability of each scenario. The valuation models consider the present value of expected payment, discounted using a risk-adjusted discount rate.

Significant unobservable inputs

Inter-relationship between significant unobservable inputs and fair value measurement

The estimated fair value would increase (decrease) if:

No material subsequent events have arisen since June 30 2016.

These condensed consolidated financial statements for the year ended June 30 2016 have been reviewed by KPMG Inc., who expressed an unmodified review opinion conclusion. A copy of the auditor’s review report together with a copy of the reviewed condensed consolidated financial statements is available for inspection at the Company’s registered office.

The auditor’s report does not necessarily report on all of the information contained in this announcement. Any reference to future financial information included in this announcement has not been reviewed or reported on by the auditors. Shareholders are 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 review report together with the accompanying financial information from the Company’s registered office.

This summarised report is extracted from the condensed consolidated financial statements but is not itself reviewed. The board of directors take full responsibility for the preparation of this provisional report and confirm that the information has been correctly extracted from the underlying financial statements.

These condensed consolidated financial statements have been prepared under the supervision of CAM Bishop CA(SA) and were approved by the board of directors on August 23 2016.

The following exchange rates were used in the conversion of foreign interests and foreign transactions during the periods:

The pro forma financial information has been compiled for illustrative purposes only and is the responsibility of the board. Due to the nature of this information, it may not fairly present the Group’s financial position, changes in equity and results of operations or cash flows. An unmodified reasonable assurance report has been issued by the Group’s auditors, KPMG, in terms of ISAE 3420 Assurance Engagements to Report on the Compilation of Pro Forma Information in a Prospectus, and is available for inspection at the Company’s registered office. The pro forma information has been compiled in terms of the JSE Listings Requirements and the Revised Guide on Pro Forma Information by SAICA and the accounting policies of the Group as at June 30 2016.

The Group underwent an internal restructuring with effect from April 1 2016 in anticipation of the listing and unbundling of Bidcorp on May 30 2016. The illustrative information, detailed in the income statement, has been prepared on the basis that the internal restructuring had been effective on each of July 1 2015 and July 1 2014 and includes pro forma adjustments on a basis consistent with those of the Pre-listing Statement of Bidcorp, dated April 14 2016.

The average rand exchange rate weakened against sterling, the euro and the Australian dollar, the major currencies in which the Group’s foreign operations trade, namely sterling (18,03 in 2015 to 21,49 in 2016), the Australian dollar (9,56 in 2015 to 10,57 in 2016) and the euro (13,74 in 2015 to 16,11 in 2016). The illustrative information, detailed below, has been prepared on the basis of applying the 2015 average rand exchange rates to the 2016 foreign subsidiary income statements and recalculating the reported revenue and earnings of the Group for the year.