Annual Report for the year ended 30 June 2009 Notes to the Group annual financial statements close window     | | |   Non-current assets     Notes   2009 R’million   Restated 2008 R’million   Property, plant and equipment 1   2 373,5   1 685,7   Goodwill 2   398,4   603,0   Intangible assets 3   4 103,6   3 705,7   Investments in associates 4   22,5   25,8   Other non-current financial receivables 6   5,2   4,7   Deferred tax assets 7   17,8   1,0         6 921,0   6 025,9     1. PROPERTY, PLANT AND EQUIPMENT 2009 Land and  buildings  R’million  Plant and  equipment  R’million  Computer  equipment  R’million  Office  equipment  and furniture  R’million  Capital  work-in-  progress  R’million  Total  R’million    OWNED Net carrying value Cost 630,6  1 033,6  52,4  73,1  991,6  2 781,3    Accumulated depreciation (59,7) (329,6) (38,0) (36,5) —  (463,8)   Net book value at the end of the year 570,9  704,0  14,4  36,6  991,6  2 317,5    Movement in property, plant and equipment Net book value at the beginning of the year 313,0  458,2  12,2  28,0  862,3  1 673,7    Acquisition of subsidiaries 34,1  61,8  0,6  3,8  188,9  289,2    Disposal of joint venture (21,2) (38,2) (0,4) (1,6) (1,1) (62,5)   Reclassification between categories 257,9  288,4  2,0  9,2  (597,5) (40,0)   Reclassification to intangible assets —  —  —  —  (3,2) (3,2)   Additions – expansion 26,2  29,7  6,8  8,3  452,8  523,8    Additions – replacement 0,8  17,9  2,3  1,1  74,9  97,0    Additions – borrowing costs capitalised —  —  —  —  93,6  93,6*   Disposals (2,5) (10,6) (0,1) (0,2) —  (13,4)   Depreciation (16,2) (81,4) (8,3) (8,9) —  (114,8)   Effects of exchange rate changes (21,2) (21,8) (0,7) (3,1) (79,1) (125,9)   Net book value at the end of the year 570,9  704,0  14,4  36,6  991,6  2 317,5    LEASED Net carrying value Cost 16,5  54,2  7,9  —  —  78,6    Accumulated depreciation (3,2) (15,5) (3,9) —  —  (22,6)   Net book value at the end of the year 13,3  38,7  4,0  —  —  56,0    Movement in property, plant and equipment Net book value at the beginning of the year 8,2  —  3,8  —  —  12,0    Acquisition of subsidiary 2,7  —  —  —  —  2,7    Reclassification between categories —  40,0  —  —  —  40,0    Additions – expansion 5,9  1,8  1,1  —  —  8,8    Additions – replacement —  —  2,0  —  —  2,0    Depreciation (1,5) —  (2,9) —  —  (4,4)   Effects of exchange rate changes (2,0) (3,1) —  —  —  (5,1)   Net book value at the end of the year 13,3  38,7  4,0  —  —  56,0    TOTAL OWNED AND LEASED 584,2  742,7  18,4  36,6  991,6  2 373,5      * Borrowing costs capitalised represent financing costs arising on the construction of qualifying assets. The average effective interest rate for the year was 10,1% (2008: 12,0%).   2008 Land and  buildings  R’million  Plant and  equipment  R’million  Computer  equipment  R’million  Office  equipment  and furniture  R’million  Capital  work-in-  progress  R’million  Total  R’million    OWNED Net carrying value Cost 356,3  726,9  42,7  56,4  862,3  2 044,6    Accumulated depreciation (43,3) (268,7) (30,5) (28,4) —  (370,9)   Net book value at the end of the year 313,0  458,2  12,2  28,0  862,3  1 673,7    Movement in property, plant and equipment Net book value at the beginning of the year 195,3  352,1  12,8  13,4  277,3  850,9    Acquisition of subsidiary 82,4  42,3  0,1  11,0  3,3  139,1    Disposal of 51% of Co-pharma Ltd (4,6) —  —  (0,3) —  (4,9)   Acquisition of joint ventures 24,4  24,5  0,5  3,4  276,4  329,2    Reclassification between categories 15,0  68,4  2,3  1,8  (89,0) (1,5)   Reclassification to intangible assets —  —  —  —  (13,1) (13,1)   Additions – expansion 2,3  4,6  0,7  0,7  288,9  297,2    Additions – replacement 0,1  15,9  5,4  1,5  59,0  81,9    Additions – borrowing costs capitalised —  —  —  —  47,0  47,0*   Disposals —  (1,6) (1,3) —  (1,0) (3,9)   Depreciation (5,7) (53,0) (8,4) (4,5) —  (71,6)   Effects of exchange rate changes 3,8  5,0  0,1  1,0  13,5  23,4    Net book value at the end of the year 313,0  458,2  12,2  28,0  862,3  1 673,7    LEASED Net carrying value Cost 9,9  —  9,5  —  —  19,4    Accumulated depreciation (1,7) —  (5,7) —  —  (7,4)   Net book value at the end of the year 8,2  —  3,8  —  —  12,0    Movement in property, plant and equipment Net book value at the beginning of the year 0,4  —  3,7  —  —  4,1    Acquisition of subsidiary 3,5  —  —  —  —  3,5    Acquisition of joint ventures 2,6  —  —  —  —  2,6    Reclassification between categories 1,5  —  —  —  —  1,5    Additions – expansion 0,1  —  2,7  —  —  2,8    Additions – replacement 0,1  —  —  —  —  0,1    Depreciation (0,4) —  (2,6) —  —  (3,0)   Effects of exchange rate changes 0,4  —  —  —  —  0,4    Net book value at the end of the year 8,2  —  3,8  —  —  12,0    TOTAL OWNED AND LEASED 321,2  458,2  16,0  28,0  862,3  1 685,7      * Borrowing costs capitalised represent financing costs arising on the construction of qualifying assets. The average effective interest rate for the year was 12,5% (2008: 11,3%).   A register of land and buildings is maintained as per paragraph 22(3) of Schedule 4 of the Companies Act. This register is available for inspection by members at the Company’s registered office. The directors are of the opinion that the open market valuation of land and buildings is at least equal to the net book value thereof.             2009 R’million   Restated 2008 R’million   Carrying amount of assets committed as security for debt (refer to note 17) 87,5 104,7   Expenses capitalised to capital work-in-progress (including capitalised borrowing costs) 97,6 53,2   Depreciation as a percentage of revenue 1,4% 1,5%   The breakdown of the land and buildings amounts shown above is as follows Land 28,9 27,6   Buildings 555,3   293,6     584,2   321,2   Capital commitments Capital commitments, excluding potential capitalised borrowing costs, include all projects for which specific Board approval has been obtained up to the reporting date. Projects still under investigation for which specific Board approval have not yet been obtained are excluded from the following Authorised and contracted for 87,3 62,6   Authorised but not yet contracted for 226,9 457,5   Funding   Capital expenditure will be financed from funds generated out of normal business operations, existing borrowing facilities and specific project finance facilities.

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