Notes to the consolidated annual financial statements

for the year ended 30 September

			2008			2007			2006
			Accumulated			Accumulated			Accumulated
			depreciation			depreciation			depreciation
			and	Net		and	Net		and	Net
		Cost	impairments	book value	Cost	impairments	book value	Cost	impairments	book value
		Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm
2.	Property, plant and equipment
	Freehold land and buildings	1 825	266	1 559	1 637	290	1 347	2 085	483	1 602
	Leasehold land and buildings	702	172	530	430	129	301	447	124	323
	Investment property	22	8	14	16	8	8	57	7	50
	Plant, equipment and furniture	1 909	1 310	599	2 273	1 605	668	5 139	3 272	1 867
	Vehicles and aircraft	614	274	340	763	375	388	1 070	776	294
	Capitalised leased plant and equipment, vehicles and furniture	621	105	516	456	69	387	701	202	499
	Decommissioning and quarry rehabilitation							36	17	19
	Rental assets – vehicles	7 489	1 061	6 428	6 761	731	6 030	5 808	459	5 349
	Rental assets – equipment	4 296	1 848	2 448	4 486	2 210	2 276	4 941	2 391	2 550
		17 478	5 044	12 434	16 822	5 417	11 405	20 284	7 731	12 553
	Less: Vehicle rental fleet reflected under current assets
	– continuing operations			1 934			3 902			3 441
	Rental assets and other assets classified as held for sale			280			450			574
	Disposal group assets classified as held for sale
	– Property, plant and equipment			62			206			239
	– Vehicle rental fleet reflected under current assets			2 102
				8 056			6 847			8 299
	Per business segment:
	Continuing operations
	– Equipment			2 590			2 005			1 766
	– Automotive			3 712			2 696			2 254
	– Handling			1 086			1 232			1 365
	– Logistics			366			207			238
	– Corporate and other			302			336			480
	Total continuing operations			8 056			6 476			6 103
	Discontinued operations
	– Car rental – Scandinavia			62			54			78
	– Cement									1 414
	– Coatings						317			362
	– Scientific						206			342
	– Steel tube									239
	Total discontinued operations			62			577			2 435
	Total group			8 118			7 053			8 538
	Amounts classified as held for sale			(62)			(206)			(239)
	Total per balance sheet			8 056			6 847			8 299
	Investment properties:
	Four investment properties (2007: ten and 2006: four) are held of which all are income generating (2007: ten and 2006: four) and none are vacant (2007 and 2006: none).
	Income earned from investment properties			5			7			4
	Direct operating expenses incurred on investment properties			2			3			2
	Fair value of investment properties			80			172			49
	The valuations were done by a chartered surveyor on the existing use value method.
	Other disclosures:
	Net book value of encumbered property, plant and equipment (note 15)			1 058			1 793			2 475
	Historic value of land and residual value of plant and equipment			3 866			2 290			4 241
	Insurable value of property, plant and equipment			12 452			21 498			31 770
	This is based on the cost of replacement of such assets, except for motor vehicles and certain selected assets, which are included at estimated retail value.
	The registers of land and buildings are open for inspection at the registered offices of the companies.

	Freehold		,
	and
	leasehold		Plant
	land		equipment	Vehicles	Capitalised	Decommissioning	Rental	Rental
	and	Investment	and	and	leased	and quarry	assets-	assets
	buildings	property	furniture	aircraft	assets	rehabilitation	vehicles	equipment	Total
Movement of property, plant and equipment	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm
2008
Net balance at 1 October 2007	1 648	8	668	388	387		6 030	2 276	11 405
Subsidiaries acquired	192	3	26	17	152				390
Subsidiaries disposed	(114)		(92)	(11)					(217)
Other additions	494		326	186	31		5 536	1 772	8 345
Impairment of assets				(3)					(3)
Translation differences (net)	96		44	8	12		202	298	660
	2 316	11	972	585	582		11 768	4 346	20 580
Other disposals	(28)	3	(12)	(133)	(32)		(4 244)	(1 247)	(5 693)
Depreciation	(64)		(205)	(71)	(34)		(1 096)	(651)	(2 121)
Unbundling of Coatings	(135)		(156)	(41)					(332)
Net balance at 30 September 2008	2 089	14	599	340	516		6 428	2 448	12 434
Less: Vehicle rental fleet assets reflected under current assets							1 934		1 934
Rental assets and other assets classified as held for sale							198	82	280
Disposal group assets classified as held for sale	38		23	1			2 102		2 164
Balance reflected as property, plant and equipment	2 051	14	576	339	516		2 194	2 366	8 056
2007
Net balance at 1 October 2006	1 925	50	1 867	294	499	19	5 349	2 550	12 553
Subsidiaries disposed	(238)		(171)	(6)	(2)				(417)
Other additions	344		962	405	93		4 729	1 020	7 553
Impairment of assets				(37)	(4)		(4)		(45)
Translation differences (net)	(1)	(1)	(38)	(5)	(9)		48	(61)	(67)
	2 030	49	2 620	651	577	19	10 122	3 509	19 577
Other disposals	(112)	(40)	(671)	(57)	10		(3 284)	(643)	(4 797)
Depreciation	(64)	(1)	(346)	(106)	(46)		(808)	(590)	(1 961)
Unbundling of Cement	(206)		(935)	(100)	(154)	(19)			(1 414)
Net balance at 30 September 2007	1 648	8	668	388	387		6 030	2 276	11 405
Less: Vehicle rental fleet assets reflected under current assets							3 902		3 902
Rental assets and other assets classified as held for sale				56			260	134	450
Disposal group assets classified as held for sale	108		88	10					206
Balance reflected as property, plant and equipment	1 540	8	580	322	387		1 868	2 142	6 847
2006
Net balance at 1 October 2005	1 495	45	1 542	577	436	11	3 784	2 401	10 291
Subsidiaries acquired	5		11	9	1		580		606
Other additions	334		586	132	144	8	4 076	813	6 093
Impairment of assets			(1)				1	(26)	(26)
Translation differences (net)	221	10	98	10	12		279	469	1 099
	2 055	55	2 236	728	593	19	8 720	3 657	18 063
Other disposals	(63)	(4)	(13)	(327)	(44)		(2 616)	(513)	(3 580)
Depreciation	(67)	(1)	(356)	(107)	(50)		(755)	(594)	(1 930)
Net balance at 30 September 2006	1 925	50	1 867	294	499	19	5 349	2 550	12 553
Less: Vehicle rental fleet assets reflected under current assets							3 441		3 441
Rental assets and other assets classified as held for sale	10		76				312	176	574
Disposal group assets classified as held for sale	94		140	5					239
Balance reflected as property, plant and equipment	1 821	50	1 651	289	499	19	1 596	2 374	8 299

	2008	2007	2006
	Rm	Rm	Rm
Translation difference:
The translation differences are made up as follows:
Cost	1 114	(170)	1 986
Accumulated depreciation	(454)	103	(887)
	660	(67)	1 099
Rental asset disclosures:
Future minimum lease receivables under non-cancellable operating leases:
Within one year	47	122	49
Two to five years	128	274	334
More than five years	21	8
	196	404	383

	Equipment rental assets include materials handling equipment rented to customers in South Africa, the United Kingdom and the United States and capital equipment in southern Africa and Europe.

	Vehicle rental assets include the following:
	–	Short-term motor vehicle fleet in southern Africa and Scandinavia for rent to customers for periods varying between 1 to 30 days. In South Africa 19.4% (2007: 18.3% and 2006: 17%) of the fleet value carries a guaranteed buyback from the manufacturer and 99% (2007: 70% and 2006: 100%) in Norway and Sweden.
	–	Long-term vehicle fleet in southern Africa leased to customers for periods in excess of 12 months with an average lease term of 43 months (2007: 38 months, 2006: 36 months) and an average residual value of 45% (2007: 46% and 2006: 40%).

	The 2007 impairment mainly arose on the decision to dispose of an aircraft, the recoverable amount of which has been determined on a fair value less costs to sell (US dollar based) basis. The impairment arose due to the strengthening of the rand at the balance sheet date.

	Impairment of rental assets arose from adjustments to market value when the assets were reclassified as held for sale. Refer note 1 for a segmental analysis of impairment losses.

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