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Notes to the consolidated annual financial statements

for the year ended 30 September



1. Business and geographical segments**

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Segmental analysis – continuing operations (%) Geographical analysis – continuing operations (%)
Strong operating performances from equipment southern Africa and automotive in difficult markets Solid performances from our southern African operations
   
    Discontinued operations
    Automotive Cement Coatings Scientific Steel Tube
    Car rental – Scandinavia                        
R million 2009 2008 2007 2009 2008 2007 2009 2008 2007 2009 2008 2007 2009 2008 2007
  Business and geographical segments**                              
  Revenue                              
    Southern Africa           4 016   517 2 347           348
    Europe 1 121 1 174 1 134               193 1 191      
    North America                     16 388      
    Australia and Asia                 957     121      
    1 121 1 174 1 134     4 016   517 3 304   209 1 700     348
  Inter-segment revenue ***                 8            
    1 121 1 174 1 134     4 016   517 3 312   209 1 700     348
  Segment result                              
  Operating (loss)/profit                              
    Southern Africa           1 527   78 383           32
    Europe (135) (10) 81               14 104      
    North America                     (1) (4)      
    Australia and Asia                 (33)     4      
  Operating (loss)/ profit (135) (10) 81     1 527   78 350   13 104     32
  Fair value adjustments on financial instruments (1) (2)       13   (1) (8)            
  Total segment result (136) (12) 81     1 540   77 342   13 104     32
  By geographical region                              
    Southern Africa               77 375           32
    Europe (136) (12) 81     1 540         14 104      
    North America                     (1) (4)      
    Australia and Asia                 (33)     4      
  Total segment result (136) (12) 81     1 540   77 342   13 104     32
  Income from associates and joint ventures           5   5 15           1
  Segment result including associate income (136) (12) 81     1 545   82 357   13 104     33
  Non cash expenses per segment                              
  Depreciation 291 274 231     138   8 53   6 47     5
  Amortisation of intangibles 4   3     3   3 7     3      
  Impairment losses   335 101                        
                                 
** The geographical segments are determined by the location of assets.
*** Inter-segment revenue is priced on an arm’s length basis.

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* The consolidated total excludes discontinued operations for income statement items but includes it for balance sheet items.
** The geographical segments are determined by the location of assets.
^ The Logistics acquisitions made during 2008 in the Middle East and Asia have been included under Europe.
for the year ended 30 September                      
    Discontinued operations
    Automotive Cement Coatings Scientific Steel Tube
    Car rental – Scandinavia            
R million 2009 2008 2007 2009 2008 2007 2009 2008 2007 2009 2008 2007 2009 2008 2007
  Business and geographical segments**                              
  Assets                              
  Property, plant and equipment     54           317            
  Goodwill     301           33            
  Intangible assets     8           81            
  Investment in associates and joint ventures     2           85            
  Long-term finance lease receivables                 1            
  Long-term financial assets                 17            
  Vehicle rental fleet     1 934                        
  Inventories                 362            
  Trade and other receivables     476           441            
  Assets classified as held for sale 2 345 2 682 52                 972      
  Segment assets 2 345 2 682 2 827           1 337     972      
  By geographical region                              
    Southern Africa                 1 337            
    Europe 2 345 2 682 2 827                 879      
    North America                       83      
    Australia and Asia                       10      
  Total segment assets 2 345 2 682 2 827           1 337     972      
  Liabilities                              
  Long-term non-interest bearing including provisions     2           44            
  Trade and other payables including provisions     398           476            
  Liabilities directly associated with assets classified as held for sale# 1 509 1 880                   210      
  Segment liabilities 1 509 1 880 400           520     210      
  By geographical region                              
    Southern Africa                 520            
    Europe 1 509 1 880 400                 196      
    North America                       12      
    Australia and Asia                       2      
  Total segment liabilities 1 509 1 880 400           520     210      
  Capital additions                              
    Southern Africa           671   23 116           6
    Europe 1 437 2 045 1 961               4 15      
    North America                       5      
    Australia and Asia                 12     10      
    1 437 2 045 1 961     671   23 128   4 30     6
                                 
** The geographical segments are determined by the location of assets.
# Includes interest-bearing liabilities in Car rental Scandinavia of R968 million (2008: R1 280 million).
   
 
Operating margin – continuing operations (%) before BEE transaction charge Headline earnings per share – continuing operations (cents)
Improved margins in automotive Headline earnings per share from continuing operations down 43%
   
  1.1 Segmentation for purpose of gearing and interest cover targets^
    These schedules are provided to assist users to gain a better understanding of how the group segments its balance sheet and income statement in order to set appropriate gearing and interest cover targets. For this purpose three broad segments have been defined namely:
   
  • Trading (manufacturing and dealership businesses)
  • Leasing (long-term leasing solutions including fleet services)
  • Car rental (short-term car hire)
    In view of the nature of the Leasing and Car rental businesses, these operations are more highly geared and in this respect are different from the rest of the group. Short-term equipment rental businesses with a net book value of rental assets amounting to R1 748 million (2008: R2 337 million; 2007: R2 166 million) are included as part of the Trading operations.
     
      Total Group Trading Leasing# Car rental
      2009 2008 2007 2009 2008 2007 2009 2008 2007 2009 2008 2007
      Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
    Consolidated balance sheet                        
    Assets                        
    Property, plant and equipment                        
    Cost 16 366 17 478 16 822 8 684 9 174 9 247 3 042 3 027 2 725 4 640 5 277 4 850
    Accumulated depreciation 4 795 5 044 5 417 3 116 3 279 3 982 930 1 007 920 749 758 515
    Net book value  11 571 12 434 11 405 5 568 5 895 5 265 2 112 2 020 1 805 3 891 4 519 4 335
    Less: Items reflected under current assets as vehicle rental fleet and assets classified as held for sale 3 717 4 378 4 558 142 85 358 32 57 92 3 543 4 236 4 108
    Property, plant and equipment                        
    – net book value 7 854 8 056 6 847 5 426 5 810 4 907 2 080 1 963 1 713 348 283 227
    Goodwill 2 319 2 421 2 046 1 253 1 355 679 282 282 282 784 784 1 085
    Intangible assets 280 205 274 272 200 264 1 2 2 7 3 8
    Finance lease receivables 463 436 619 121 13 9 342 423 610      
    Long-term financial assets, investment in associates and joint ventures 1 010 1 663 1 614 945 1 285 1 315 22 334 295 43 44 4
    Deferred taxation assets 656 488 619 635  435 583 21 48 32   5 4
    Non-current assets 12 582 13 269 12 019 8 652 9 098 7 757 2 748 3 052 2 934 1 182 1 119 1 328
    Current assets 17 513 20 688 18 636 12 548 14 929 13 206 375 371 371 4 590 5 388 5 059
    Finance lease receivables 270 161 150 60 8 21 210 153 129      
    Cash and cash equivalents 1 627 1 238 1 201 1 519 1 097 1 086 14 26 9 94 115 106
    Assets classified as held for sale 2 657 3 156 1 447 172 267 1 124 38 70 105 2 447 2 819 218
    Other current assets 12 959 16 133 15 838 10 797 13 557 10 975 113 122 128 2 049 2 454 4 735
                             
    Total assets 30 095 33 957 30 655 21 200 24 027 20 963 3 123 3 423 3 305 5 772 6 507 6 387
    Equity and liabilities                        
    Interest of all shareholders 12 070 13 033 11 221 10 383 10 811 9 308 358 365 320 1 329 1 857 1 593
    Non-current liabilities 6 486 6 252 6 638 2 351 3 604 2 861 2 320 2 528 2 464 1 815 120 1 313
    Deferred taxation liabilities 249 266 610 24  8 171 134 150 158 91 108 281
    Interest-bearing 5 278 5 022 4 379 1 647 3 163 1 513 1 921 1 859 1 867 1 710   999
    Non-interest-bearing 959 964 1 649 680 433 1 177 265 519 439 14 12 33
    Current liabilities 11 539 14 672 12 796 8 466 9 612 8 794 445 530 521 2 628 4 530 3 481
    Amounts due to bankers and short-term 3 567  4 266 4 687  3 415 2 319 2 040 108  157 201 44 1 790 2 446
    Liabilities directly associated with assets classified as held for sale                        
    – Interest-bearing 968 1 356     76         968 1 280  
    – Non-interest-bearing 541 640 210 1 40 210       540 600  
    Other current liabilities 6 463 8 410 7 899 5 050 7 177 6 544 337 373 320 1 076 860 1 035
                             
    Total equity and liabilities 30 095 33 957 30 655 21 200 24 027 20 963 3 123 3 423 3 305 5 772 6 507 6 387
    Total Group Trading Leasing# Car rental
    2009 2008 2007 2009 2008 2007 2009 2008 2007 2009 2008 2007
    Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
  Consolidated income statement                        
  Continuing operations                        
  Revenue 42 232 46 830 39 757 39 545 44 220 37 683 1 171 1 024 865 1 516 1 586 1 209
  Operating profit before depreciation and leasing interest paid 4 000 4 637 3 898 2 507 3 250 2 698 831 683 604 662 704 596
  Leasing interest paid included in cost of sales (152) (153) (134)       (152) (153) (134)      
  Depreciation (1 854) (1 833) (1 487) (948) (934) (828) (498) (445) (388) (408) (454) (271)
  Operating profit 1 994 2 651 2 277 1 559 2 316 1 870 181 85 82 254 250 325
  Fair value adjustments on financial instruments (201) (80) 295 (197) (74) 289 (3) 1 (1) (1) (7) 7
  Finance costs (938) (889) (631) (696) (618) (437) (1)     (241) (271) (194)
  Income from investments 149 195 164 121 166 153 2 1 1 26 28 10
  Profit before exceptional items 1 004 1 877 2 105 787 1 790 1 875 179 87 82 38   148
  Exceptional items 22  (17) (74) 22 (15) (73)   (2) (1)      
  Profit before taxation 1 026 1 860 2 031 809 1 775 1 802 179 85 81 38   148
  Taxation (248) (675) (697) (177) (657) (638) (55) (9) (15) (16) (9) (44)
  Profit/(loss) after taxation 778 1 185 1 334 632 1 118 1 164 124 76 66 22 (9) 104
  Income from associates and joint ventures 43 72 53 48 74 56 (5) (2) (3)      
  Net profit/(loss) from continuing operations 821 1 257 1 387 680 1 192 1 220 119 74 63 22 (9) 104
  Discontinued operations                        
  (Loss)/profit from discontinued operations (82) (11) 1 172 58 306 1 144       (140) (317) 28
  Net profit/(loss) 739 1 246 2 559 738 1 498 2 364 119 74 63 (118) (326) 132
  Attributable to:                        
  Minority shareholders  68 14 289 56 5 282 12 9 7      
  Barloworld Limited shareholders 671 1 232 2 270 682 1 493 2 082 107 65 56 (118) (326) 132
    739 1 246 2 559 738 1 498 2 364 119 74 63 (118) (326) 132
  Key financial ratios by segment                        
  Total borrowings to total shareholders’ funds (%)**                        
  Actual 81 82 81 49 51 38 567 552 646 205 165 216
  Target*       30 – 50 600 – 800 200 – 300
  Interest cover (times)**                        
  Actual 1.9 3.1 3.8 2.1 4.4 5.3 2.2 1.6 1.6 1.2 1.0 1.8
  Target   > 3     > 4     > 1     > 1.25  
# The income received on the leasing net assets (finance and rental income) and the interest paid on the borrowings are regarded as operational items and are included in operating profits. Leasing results are stated excluding consolidation adjustments and inter-group eliminations.
*  The group gearing target is dependent on the relative mix of assets between the three segments.
**  Refer to www.barloworld.com for definitions.
^ All years have been reclassified for the treatment of the Car rental Scandinavia as discontinued operations.
                       
      Cost 2009
Accumulated
depreciation
and impairments		 Net
book
value		 Cost 2008
Accumulated depreciation and impairments 		Net
book
value		 Cost 2007
Accumulated
depreciation and impairments 		Net
book
value
      Rm Rm Rm Rm Rm Rm Rm Rm Rm
2. Property, plant and equipment                  
  Freehold land and buildings 2 222 284 1 938 1 825 266 1 559 1 637 290 1 347
  Leasehold land and buildings 702 201 501 702 172 530 430 129 301
  Investment property 22 8 14 22 8 14 16 8 8
  Plant, equipment and furniture 1 948 1 324 624 1 909 1 310 599 2 273 1 605 668
  Vehicles and aircraft 490 231 259 614 274 340 763 375 388
  Capitalised leased plant and equipment, vehicles and furniture 594 110 484 621 105 516 456 69 387
  Rental assets – vehicles 6 868 1 310 5 558 7 489 1 061 6 428 6 761 731 6 030
  Rental assets – equipment 3 520 1 327 2 193 4 296 1 848 2 448 4 486 2 210 2 276
      16 366 4 795 11 571 17 478 5 044 12 434 16 822 5 417 11 405
                       
  Less: Vehicle rental fleet reflected under current assets                  
    – continuing operations     1 692     1 934     3 902
    Rental assets and other assets classified as held for sale     277     280     450
    Disposal group assets classified as held for sale                  
    – Property, plant and equipment     51     62     206
    – Vehicle rental fleet reflected under current assets     1 697     2 102      
          7 854     8 056     6 847
  Per business segment:                  
  Continuing operations                  
  – Equipment     2 178     2 590     2 005
  – Automotive     4 058     3 712     2 696
  – Handling     879     1 086     1 232
  – Logistics     314     366     207
  – Corporate     425     302     336
  Total continuing operations     7 854     8 056     6 476
  Discontinued operations                  
  – Car rental – Scandinavia     51     62     54
  – Coatings                 317
  – Scientific                 206
  Total discontinued operations     51     62     577
  Total group     7 905     8 118     7 053
  Amounts classified as held for sale     (51)     (62)     (206)
  Total per balance sheet     7 854     8 056     6 847
  Investment properties:                  
  Five investment properties (2008: four and 2007: ten) are held of which all are income generating (2008: four and 2007: ten) and none are vacant (2008 and 2007: none).              
  Income earned from investment properties     2     5     7
  Direct operating expenses incurred on investment properties           2     3
  Fair value of investment properties     56     80     172
  The valuations were done by a chartered surveyor on the existing use value method. by            
  Other disclosures:                  
  Net book value of encumbered property, plant and equipment (note 15) 749     1 058     1 793
  Historic value of land and residual value of plant and equipment     3 739     3 866     2 290
  Insurable value of property, plant and equipment     14 332     12 452     21 498
  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.
  Movement of property, plant and equipment Freehold
and lease-
hold land
and buildings
Rm		 Investment
property
Rm		 Plant,
equipment
and furniture
Rm		 Vehicles and
aircraft
Rm
Capitalised
leased
assets
Rm		 Decommissioning
and
quarry
rehabilitation
Rm		 Rental
assets-
vehicles*
Rm		 Rental
assets-
equipment*
Rm		 Total
Rm
  2009                  
  Net balance at 1 October 2008 2 089 14 599 340 516   6 428 2 448 12 434
  Subsidiaries disposed     (3)           (3)
  Other additions 507   309 77 17   4 641 1 025 6 576
  Impairment of assets             (2)   (2)
  Translation differences (net)# (26)   (34) (6) (4)   (121) (135) (326)
    2 570 14 871 411 529   10 946 3 338 18 679
  Other disposals (46)   (31) (92) (8)   (4 265) (521) (4 963)
  Depreciation (85)   (216) (60) (37)   (1 123) (624) (2 145)
  Net balance at 30 September 2009 2 439 14 624 259 484   5 558 2 193 11 571
  Less: Vehicle rental fleet assets reflected under current assets            
1 692		   1 692
    Rental assets and other assets classified as held for sale             134 143 277
    Disposal group assets classified as held for sale 33   18       1 697   1 748
  Balance reflected as property, plant and equipment 2 406 14 606 259 484   2 035 2 050 7 854
  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
                     
                  2009 2008 2007
                  Rm Rm Rm
  #Translation difference:      
  The translation differences are made up as follows:      
  Cost (624) 1 114 (170)
  Accumulated depreciation 298 (454) 103
                  (326) 660 (67)
  *Rental asset disclosures:      
  Future minimum lease receivables under non-cancellable operating leases:      
  Within one year 41 47 122
  Two to five years 117 128 274
  More than five years 55 21 8
                  213 196 404
  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 10.9% (2008: 19.4% and 2007: 18.3%) of the fleet value carries a guaranteed buyback from the manufacturer and 72.1% (2008: 100% and 2007: 70%) in Scandinavia.
  • Long-term vehicle fleet in southern Africa leased to customers for periods in excess of 12 months with an average lease term of 39 months (2008: 43 months, 2007: 38 months) and an average residual value of 46% (2008: 45% and 2007: 46%).
  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.
   
    2009 2008 2007
    Rm Rm Rm
3. Goodwill      
  Cost      
  At 1 October 3 151 2 381 3 496
  Additions   684 41
  Subsidiaries disposed (4) (32) (479)
  Unbundling of Cement     (382)
  Unbundling of Coatings   (33)  
  Amounts classified as held for sale     (260)
  Translation differences (106) 151 (35)
  At 30 September 3 041 3 151 2 381
  Accumulated impairment losses      
  At 1 October 730 335 491
  Subsidiaries acquired   9  
  Subsidiaries disposed (2) (8) (327)
  Impairment   337 169
  Translation differences (6) 57 2
  At 30 September 722 730 335
  Carrying amount      
  At 30 September 2 319 2 421 2 046
  Per business segment:      
  Continuing operations      
  – Equipment 207 239 220
  – Automotive 1 310 1 310 1 186
  Handling 157 187 179
  – Logistics 645 685 127
  Total continuing operations 2 319 2 421 1 712
  Discontinued operations      
  – Car rental – Scandinavia     301
  – Coatings     33
  – Scientific     260
  Total discontinued operations     594
  Total group 2 319 2 421 2 306
  Amounts classified as held for sale     (260)
  Total per balance sheet 2 319 2 421 2 046
  The impairments relate to the following:      
  Avis and Budget Scandinavia   333 101
  Truck Center (Freightliner)     60
  Ditch Witch     8
  Other   4  
      337 169
  Goodwill is allocated to groups of cash-generating units based on group business segments (refer note 1). The group has not recognised any significant intangible assets with indefinite useful lives.
   
  During the current year, all significant recoverable amounts were based on value in use (except as noted below for the Car rental Scandinavia business). A discounted cash flow valuation model is applied using five year strategic plans as approved by management. The financial plans are the quantification of strategies derived from the use of a common strategic planning process followed across the group. The process ensures that all significant risks and sensitivities are appropriately considered and factored into strategic plans. Key assumptions are based on industry specific performance levels as well as economic indicators approved by the executive. These assumptions are generally consistent with external sources of information.
   
  Cash flows for the terminal value beyond the explicit forecast period of five years is estimated by using economic returns (CFROI)®, asset base, growth rate and fade principles. Growth rates are aligned to the long-term sustainable level of growth in the economic region in which cash-generating units operate.
   
  Discount rates applied to cash flow projections are based on a country or region specific real cost of capital, dependent upon the location of cash-generating segment operations. The cost of capital is adjusted for size and leverage and other known risks. The after tax, real cost of capital rates applied as at September are as follows:
   
  2009 2008 2007
  Country % % %
         
  United States 6.0 6.0 5.8
  Spain 6.4 6.4 5.6
  United Kingdom 6.7 6.7 6.2
  Norway 6.4 6.4 5.6
  Sweden 6.4 6.4 5.6
  Denmark 6.4 6.4 5.6
  Australia 5.9 5.9 5.2
  South Africa 7.4 7.4 6.9
         
  The 2008 impairment was calculated by comparing the carrying value of the Avis and Budget Scandinavia cash-generating unit to its estimated recoverable amount. The estimated recoverable amount was determined on the fair value less costs to sell of the business based on the expected disposal price. The business has been classified as held for sale (refer note 12).
   
      2009     2008     2007  
      Patents     Patents,     Patents,  
      trademarks     trademarks     trademarks  
      and Total   and Total   and Total
    Capitalised development intangible Capitalised development intangible Capitalised development intangible
    software costs assests software costs assets software costs assets
    Rm Rm Rm  Rm Rm Rm Rm Rm Rm
4. Intangible assets                  
  Cost                  
  At 1 October 403 135 538  369 175 544 517 183 700
  Subsidiaries acquired       1 19 20      
  Other additions 127 14 141   36 15 51 45 17 62
  Subsidiaries disposed (3)   (3)   (78) (78) (71) (2) (73)
  Other disposals (7) (1) (8) (4) (3) (7) (66) (7) (73)
  Unbundling of Cement             (8) (32) (40)
  Amounts classified as held for sale        (25)   (25) (25) (6) (31)
  Other reclassification 13 5 18 4 6 10 (18) 34 16
  Impairment   (4) (4)            
  Translation differences (23) (4) (27)   22 1 23 (5) (12) (17)
  At 30 September 510 145 655  403 135 538 369 175 544
  Accumulated amortisation and impairment                  
  At 1 October 293 40 333  240 30 270 341 36 377
  Charge for the year (note 21) 53 12 65   45 12 57 60 10 70
  Subsidiaries disposed       3   3 (66) (1) (67)
  Other disposals (6)   (6) (4)   (4) (48) (8) (56)
  Unbundling of Cement             (2) (23) (25)
  Amounts classified as held for sale        (14)   (14) (19) (6) (25)
  Other reclassification 1 4 5 8 (1) 7 (16) 27 11
  Impairment         (1) (1) (6) (1) (7)
  Translation differences (20) (2) (22)   15   15 (4) (4) (8)
  At 30 September 321 54 375  293 40 333 240 30 270
  Carrying amount                  
  At 30 September 189 91 280  110 95 205 129 145 274
  Per business segment:                  
  Continuing operations                  
  – Equipment     59     68     3
  – Automotive     21     19     17
  – Handling     84     17     89
  – Logistics     80     76     52
  – Corporate     36     25     24
  Total continuing operations     280     205     185
  Discontinued operations                  
  – Car rental – Scandinavia     7     11     8
  – Coatings                 81
  – Scientific                 6
  Total discontinued operations     7     11     95
  Total group     287     216     280
  Amounts classified as held for sale     (7)     (11)     (6)
  Total per balance sheet     280     205     274
    2009 2008 2007 2009 2008 2007
    Rm Rm Rm Rm Rm Rm
5. Investment in associates and joint ventures*            
      (Loss)/income     Investment  
  Associates (21) 8 21 201 195 409
  Joint ventures 64 64 32 530 900 519
    43 72 53 731 1 095 928
  Per business segment:            
  Continuing operations            
  – Equipment 51 62 36 680 822 523
  – Automotive (11) 6 17 (1) 234 304
  – Handling 4 3   28 26  
  – Logistics       2 2  
  – Corporate (1) 1   22 11 13
  Total continuing operations 43 72 53 731 1 095 840
  Discontinued operations            
  – Car rental – Scandinavia           2
  – Cement     5      
  – Coatings   5 15     86
  – Steel tube     1      
  Total discontinued operations   5 21     88
  Total group 43 77 74 731 1 095 928
  Amounts classified as held for sale   (5) (21)      
  Total per income statement/balance sheet 43 72 53 731 1 095 928
      Associates     Joint ventures  
  Cost of investment 203 147 136 230 230 179
  Share of associates and joint ventures’ reserves 1 39 76 214 174 107
  Beginning of year 39 76 83 174 107 64
  Normal and exceptional (loss)/profit for the year (21) 13 27 64 64 47
  Dividends received     (25)   (6) (14)
  Unbundling of Coatings   (63)        
  Unbundling of Cement      (8)      
  Reclassifications   (6)     (9)  
  Disposals and other reserve movements (15) 19 8 (30) 18 10
  Impairments during the year     (9)      
  Other reallocation and movements (2)     6    
  Amounts classified as held for sale (8)          
  Carrying value excluding amounts owing 196 186 212 444 404 286
  Loans and advances to associates and joint ventures** 5 9 197 86 496 233
  Carrying value including amounts            
  owing 201 195 409 530 900 519
  Carrying value by category            
  Unlisted associates and joint ventures            
  – shares at carrying value 196 186 212 444 404 286
    196 186 212 444 404 286
  Valuation of shares            
  Directors’ valuation of unlisted associate companies and joint ventures 196 461 307 554 711 696
    196 461 307 554 711 696
  Aggregate of group associate            
  companies and joint ventures’            
  net assets, revenue and profit            
  Property, plant and equipment and            
  other non-current assets 281 244 245 178 159 172
  Current assets 61 73 126 837 1 255 844
  Long-term liabilities 141   25 141 719 154
  Current liabilities 31 18 103 422 258 476
  Revenue 213 241 377 744 2 633 1 698
  (Loss)/profit after taxation (21) 6 18 64 63 47
  Cash flow from operations (18) (34) (12) (114) (279) (118)
               
* Refer to note 39 and 40 for a detailed list of associate and joint venture companies.
In the current year 50% of the investment in Subaru was sold and it has been classified as a joint venture.
** In 2007 associate loans amounting to R99 million were impaired relating to the investment in Finaltair. The impairment was based on deteriorating prospects in the market that Finaltair operates.
         
    2009 2008 2007
    Rm Rm Rm
6. Finance lease receivables      
  Amounts receivable under finance leases:      
  Gross investment 850 711 912
  Less: Unearned finance income (117) (114) (143)
  Present value of minimum lease payments receivable 733 597 769
  Receivable as follows:      
  Present value      
  Within one year (note 10) 270 161 150
  Non-current portion 463 436 619
  In the second to fifth year inclusive 456 419 563
  After five years 7 17 56
         
    733 597 769
         
  Per business segment (non-current portion):      
  Continuing operations      
  – Equipment 102    
  – Automotive 103 85 66
  – Handling 258 339 544
  – Corporate   12 8
  Total continuing operations 463 436 618
  Discontinued operations      
  – Coatings     1
  Total discontinued operations     1
  Total group 463 436 619
  Minimum lease payments      
  Within one year 342 223 204
  In the second to fifth year inclusive 500 322 644
  After five years 8 166 64
    850 711 912
  Less: Unearned finance income (117) (114) (143)
    733 597 769
  Fair value of finance lease receivables 733 597 769
  Allowance for uncollectible finance lease receivables      
  At 1 October 37 45 18
  Additional allowance charged to profit or loss     31
  Allowance reversed to profit or loss (19) (11) (1)
  Translation (6) 3 (3)
  At 30 September 12 37 45
  Unguaranteed residual values of assets leased under finance leases 242 225 241
         
  The interest rate charged in the United Kingdom and United States on the leases is fixed at inception for the duration of the lease term which is typically between four and five years. The weighted average interest rate on lease receivables for the year ended 30 September 2009 was 8% per annum (2008: 9%; 2007: 7.7%).
7. Long-term financial assets      
  Listed investments at fair value 100 160 332
  Unlisted investments at fair value 46 47  28
  Bills and leases discounted with recourse and repurchase obligations 20 110 104
  Pension fund assets (note 17)     6
  Other receivables 66 175 119
  Other derivatives 19 47 53
  Other non-current loans and deposits 8 4 5
  Barloworld Share Purchase Scheme** 20 25 39
    279 568 686
  Per category:      
  Financial assets at fair value through profit or loss      
  – Designated as such at initial recognition 100 160 332
  – Held for trading items 15 36 41
  Available-for-sale financial assets 46 47 28
  Loans and receivables 59 313 267
  Derivative assets designated as effective hedging instruments 4 12 12
  Other assets 55   6
    279 568 686
  Per business segment:      
  Continuing operations      
  – Equipment 23 17 14
  – Automotive 41 43 7
  – Handling 84 162 116
  – Logistics 7 16 3
  – Corporate 124 330 529
  Total continuing operations 279 568 669
  Discontinued operations      
  – Coatings     17
  Total discontinued operations     17
  Total per balance sheet 279 568 686
  Available-for-sale investments (note 38)      
  Listed investments opening balance     10
  Impairment of investments~     (10)
  Fair value of listed investments     0
  Unlisted investments      
  Opening balance 47 28 37
  Additions and other movements   20 24
  Impairment of investments@ (1) (2)  
  Unbundling of Cement     (27)
  Fair value adjustment in current year   1 (6)
  Fair value of unlisted investments 46 47 28
  Total fair value of available-for-sale investments 46 47 28
  Other listed investments      
  PPC shares^ 100 160 332
  Valuation of shares:      
  Market value – listed investments 100 160 32
  Directors’ valuation of unlisted investments 46 47 28
  Total fair value 146 207 360
 
** Barloworld Share Purchase Scheme
  Included are loans to executive directors for the purchase of shares amounting to R5.2 million (2008: R7.7 million; 2007: R8.6 million). The loans are secured by pledge of the shares and are repayable within 10 years of granting of the option or within nine months of death or immediately on ceasing to be an employee, except in the case of retirement. Interest rates vary in accordance with the terms and provisions of the trust deed and range from 8% to 12% (2008: 8.85% to 12%; 2007: 4.39% to 10%).
   
~  In 2007 these listed investments were impaired. Previously the investments were retained at pound sterling carrying value due to uncertainty in determining appropriate Zimbabwean dollar exchange rate to arrive at a realistic market value. Refer to note 38 for details of these listed investments.
   
@ The impairment relates to the write off of an investment held in Norway by the Car rental Scandinavia business unit.
   
^ PPC shares
  The investment is held by Barloworld for the commitment to deliver PPC shares to the option holders following the unbundling of PPC. Refer to note 34.4 for details.
   
    2009 2008 2007
    Rm Rm Rm
8. Deferred taxation      
  Movement of deferred taxation      
  Balance at beginning of year      
  – deferred taxation assets 488  619 750
  – deferred taxation liabilities (266)  (610) (870)
  Net asset/(liability) at beginning of the year 222 9 (120)
  Recognised in income statement this year 114 53 (45)
  – Continuing operations 114 51 (54)
  – Rate change adjustment   2 9
  Recognised in income statement this year      
  – Discontinued operations 39 (28) 5
  Arising on acquisition and disposal of subsidiaries (10) (16) (23)
  Translation differences (63) 33 (20)
  Accounted for directly in equity 113 4 27
  Unbundling of Cement     158
  Unbundling of Coatings   (21)  
  Reclassified as held for sale (36) 154  
  Other movements 28 34 27
  Net asset at end of the year 407 222 9
  – Deferred taxation assets 656 488 619
  – Deferred taxation liabilities (249)  (266) (610)
  Analysis of deferred taxation by type of      
  temporary difference      
  Deferred taxation assets      
  Capital allowances (115) (81) 39
  Provisions and payables 182 220 196
  Prepayments and other receivables 45 39 19
  Effect of tax losses 346 133 103
  Retirement benefit obligations 199 178 256
  Other temporary differences (1) (1) 6
    656 488 619
  Deferred taxation liabilities      
  Capital allowances (323) (345) (516)
  Provisions and payables 70 86 105
  Prepayments and other receivables 60 50 (191)
  Effect of tax losses 45 54 56
  Retirement benefit obligations (4) (4) (7)
  Other temporary differences (97) (107) (57)
    (249) (266) (610)
  Amount of deferred taxation income/(expense) recognised in the income statement      
  Capital allowances (13) 53 54
  Provisions and payables (46) 29 (62)
  Prepayments and other receivables 16   (2)
  Effect of tax losses 226 100 (48)
  Retirement benefit obligations (42) (75) (50)
  Other temporary differences (27) (54) 63
    114 53 (45)
9. Inventories      
  Raw materials and components     116
  Work in progress 295 291 321
  Finished goods 3 318 3 939 2 740
  Merchandise 3 054 3 219 2 647
  Consumable stores 21 26 17
  Other inventories 49 20 28
  Total inventories 6 737 7 495 5 869
  Per business segment:      
  Continuing operations      
  – Equipment 4 296 4 955 3 184
  – Automotive 1 695 1 870 1 711
  – Handling 738 769 602
  – Logistics 5 7 5
  – Corporate 3 11 5
  Total continuing operations 6 737 7 612 5 507
  Discontinued operations      
  – Coatings     362
  – Scientific     231
  Total discontinued operations     593
  Total group 6 737 7 612 6 100
  Amounts classified as held for sale   (117) (231)
  Total per balance sheet 6 737 7 495 5 869
  The value of inventories has been determined on the following bases:      
  First-in first-out and specific identification 6 381 7 081 5 394
  Weighted average 356 414 475
    6 737 7 495 5 869
  Inventory pledged as security for liabilities 109 170 29
  The secured liabilities are included under trade and other payables (note 18).      
  Amount of write down of inventory to net realisable value and losses of inventory 22 13 5
  Amount of reversals of inventory previously written down 7 5 1
  Amounts removed during the year from cash flow hedge reserve and included in the initial cost of inventory (55) (2) 2
10. Trade and other receivables      
  Trade receivables 4 172 5 883 5 107
  Less: Allowance for doubtful receivables (350) (314) (248)
  Finance lease receivables (note 6) 270 161 150
  Fair value of derivatives 21 138 38
  Other receivables and prepayments 634 986 1 138
    4 747 6 854 6 185
  Per category:      
  Financial assets at fair value through profit or loss      
  – Designated as such at initial recognition 21    
  – Held for trading items    41 21
  Loans and receivables 4 456 6 555 5 997
  Derivative assets designated as effective hedging instruments   97 17
  Finance lease receivables 270 161 150
    4 747 6 854 6 185
  Per business segment:      
  Continuing operations      
  – Equipment 2 430 3 817 2 932
  – Automotive 987 1 229 836
  – Handling 629 887 916
  – Logistics 813 1 065 617
  – Corporate (including inter-group elimination) (112) (94) (33)
  Total continuing operations 4 747 6 904 5 268
  Discontinued operations      
  – Car rental – Scandinavia 445 471 476
  – Scientific     260
  – Coatings     441
  Total discontinued operations 445 471 1 177
  Total group 5 192 7 375 6 445
  Amounts classified as held for sale (445) (521) (260)
  Total per balance sheet 4 747 6 854 6 185
  Allowance for doubtful receivables      
  At 1 October 314 248 222
  Additional allowance charged to profit or loss 111 70 72
  Allowance reversed to profit or loss (43) (7) (17)
  Allowance utilised (19)   (17)
  Acquisition of subsidiaries   16 1
  Disposal of subsidiaries   (4) (8)
  Translation (13) (9) (5)
  At 30 September 350 314 248
  Receivables are reviewed for impairment on an individual basis and factors considered include the nature and credit quality of counter parties as well as disputes regarding price, delivery, quality and authorisation of work done.
         
  Age analysis of carrying value of items past due but not impaired per class      
  Industry      
  Less than 30 days 283 485 375
  Between 31 – 60 days 160 361 235
  Between 60 – 90 days 56 140 148
  Greater than 90 days 101 158 159
    600 1 144 917
  Government      
  Less than 30 days 8 13 14
  Between 31 – 60 days 2 12 26
  Between 60 – 90 days 3 11 8
  Greater than 90 days 13 4 19
    26 40 67
  Consumers      
  Less than 30 days 9 13 38
  Between 31 – 60 days 1 37 24
  Between 60 – 90 days 2 15 15
  Greater than 90 days 1 7 36
    13 72 113
  Carrying value of financial assets pledged as collateral for liabilities or contingent liabilities 84 78 121
  The financial assets pledged consist of the accounts receivable in the Logistics Middle East division given as security for interest-bearing borrowings (note 15).