Notes to the consolidated annual financial statements

for the year ended 30 September

		2008	2007	2006
		Rm	Rm	Rm
21.	Operating profit
	Operating profit is arrived at as follows:
	Revenue	46 830	39 757	32 452
	Less: Net expenses	44 179	37 480	30 645

	Cost of sales	36 074	30 588	24 937
	Distribution costs	2 080	1 705	1 315
	Administrative costs	4 349	4 208	3 463
	Other operating costs	1 923	1 268	1 143
	Other operating income	(247)	(289)	(213)

	Operating profit	2 651	2 277	1 807
	Per business segment:
	Continuing operations
	– Equipment	2 057	1 530	952
	– Automotive	540	633	546
	– Handling	172	187	172
	– Logistics	135	95	65
	– Corporate and other	(253)	(168)	72
	Total continuing operations	2 651	2 277	1 807
	Discontinued operations
	– Car rental – Scandinavia	(10)	81	69
	– Cement		1 527	1 903
	– Coatings	78	350	274
	– Scientific	13	104	80
	– Steel tube		32	95
	Total discontinued operations	81	2 094	2 421
	Total group	2 732	4 371	4 228
	Expenses include the following:
	Interest paid by leasing operations included in cost of sales:	292	231	239
	External	153	134	184
	Group (note 23)	139	97	55
	Depreciation	2 121	1 961	1 930
	Continuing operations	1 833	1 487	1 451
	Discontinued operations	288	474	479
	Amortisation of intangibles	57	70	65
	Continuing operations	52	54	49
	Discontinued operations	5	16	16
	Amounts removed from equity in respect of effective cash flow hedges	10
	Operating lease charges	618	558	475
	Operating lease charges* – continuing operations	551	395	318
	Land and buildings	329	234	224
	Plant, vehicles and equipment	222	161	94
	Operating lease charges – discontinued operations	67	163	157
	Land and buildings	66	139	133
	Plant, vehicles and equipment	1	24	24

	Research and development costs	57	36	43
	Administration, management and technical fees paid	149	175	164
	Auditors’ remuneration:	63	65	70
	Audit fees	52	52	57
	Fees for other services^#	11	12	12
	Expenses		1	1
	Directors’ emoluments paid by holding company and subsidiaries (note 36):
	Total directors’ emoluments**	63	95	59
	Executive directors	54	85	53
	Salaries	17	22	21
	Bonuses	14	23	21
	Retirement and medical contributions	3	7	4
	Share options/ share appreciation rights awarded	(3)	11	3
	Car allowances	2	2	2
	Other benefits	21	20	2
	Non-executive directors	9	10	6
	Fees	6	6	4
	Fees for services to subsidiaries and other services	3	4	2

	Staff costs (excluding directors’ emoluments)	6 785	7 157	6 669
	Continuing operations	6 380	5 126	4 474
	Discontinued operations	405	2 031	2 195
	Profit on disposal of rental assets, car hire and fleet rental vehicles	(141)	(37)	(110)
	Continuing operations	(116)	(41)	(96)
	Discontinued operations	(25)	4	(14)
	(Profit)/loss on disposal of other plant and equipment	(3)	(5)	2
	Loss/(profit) on disposal of intangible assets	2	(2)	2
	Corporate office redundancies and closure costs		92
	Amounts recognised in respect of retirement benefit plans (note 17):
	Defined contribution funds	307	381	353
	Defined benefit funds	(3)	39	(95)

	*	There is no contingent rent included in operating lease charges for 2008 (2007: R23 million; 2006: Nil).
	#	In addition to this, fees of R3 million (2007: R11 million, 2006: Nil) have been incurred relating to the unbundling of the Cement segment and Coatings segment.
	**	Excludes the amount for share options exercised/ceded included in directors’ remuneration per note 36.

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