omnia holdings annual report 2010 omnia holdings annu

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92 OMNIA ANNUAL REPORT 2010 FINANCIAL STATEMENTS continued NOTES TO THE GROUP FINANCIAL STATEMENTS continued for the year ended 31 March 2010 3 INTANGIBLE ASSETS continued A segment-level summary of the goodwill allocation is presented below: Cash-generating units Chemicals segment Protea Speciality Chemicals 42 51 Protea Polymers and African Polymers 40 41 Protea Chemicals – Inland 54 54 Protea Chemicals – Cape 101 112 Protea Chemicals – KZN 20 22 Zetachem 36 42 Petroleum Fine Products 37 – Fertilizer segment 330 322 Omnia Specialities Australia 2 3 332 325 Goodwill represents the above cash-generating units’ ability to generate future cash flows, which is a direct result of various factors, including the quality of the workforce acquired, possible future synergies and customer and supplier relationships. The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by management covering a five-year period. Cash flows beyond the five-year period are extrapolated based on the estimated growth rates stated below. The growth rate does not exceed the long-term average growth rate for the chemicals business in which the CGU operates. Management believes that any reasonable possible change in the key assumptions on which the above CGU’s carrying amounts are based would not cause the carrying amount of any of the CGUs to exceed their recoverable amount. Key assumptions used for value-in-use calculations: Annual revenue growth 16 6 Annual growth in other income 16 8 Gross margin % (1) 14 14 Annual increase in expenses 13 15 Annual increase in fixed costs 7 15 Discount rate (2) 1) Budgeted gross margin 2) Pre-tax discount rate applied to the cash flow projections 9 12 These assumptions have been used for analysis of each CGU within the business segment. Management determined budgeted gross margin based on past performance and its expectations of the market development. The annual growth rates are determined based on the budget for the forthcoming financial year. The discount rates used are pre-tax and reflect specific risks relating to the relevant CGUs. No impairment charge to goodwill was required based on the above value-in-use calculations. Effect of variances in assumptions used The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 1.7.1. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates (refer note 1.1 and note 1.3). If the revised estimated gross margin at 31 March 2010 reduced from 14% to 12%, there would be no impairment of goodwill. If the revised estimated sales growth per annum had been 14% rather than management’s estimate at 31 March 2010 of 16%, there would be no impairment of goodwill. If the revised estimated pre-tax discount rate applied to the discounted cash flows increased from 9% to 12%, there would be no impairment of goodwill. 2010 Rm 2010 % 2009 Rm 2009 %
4 AVAILABLE-FOR-SALE FINANCIAL ASSETS OMNIA ANNUAL REPORT 2010 93 Unlisted shares in local and foreign companies 19 1 The investments are carried at fair value. There were no disposals or impairment provisions on available-for-sale financial assets in 2010. Directors’ valuation of unlisted shares The available-for-sale financial assets are denominated as follows: 19 1 US dollar 18 – Rand 1 1 19 1 5 INVESTMENT IN ASSOCIATES At 1 April 40 – Reclassification from available-for-sale financial assets – 29 Acquisition 50 – Loans advanced 2 – Equity share of profit* 3 5 Dividends received (1) – Exchange differences (10) 6 * Share of profit is after tax. 84 40 R41 million (2009: R nil) goodwill is included in the investment in associates balance. During the year, the Group acquired significant influence in Nalco Africa (Pty) Limited. The Group’s share of the results of ETC Bio-Energy Limited incorporated in Zambia is as follows: Assets 44 54 Liabilities 11 14 Revenues 18 26 Profit 2 5 % interest held The Group’s share of the results of Nalco Africa (Pty) Limited incorporated in South Africa is as follows: 10% 10% Assets 4 – Liabilities 3 – Revenues 19 – Profit 1 – % interest held 49,9% – The Group has a less than 20% ownership in ETC Bio-Energy Limited, but it has been classified as an associate as significant influence is established through board representation. The valuation of this unlisted investment, as approved by the directors amounted to R84 million (2009: R40 million). 2010 Rm 2010 Rm 2009 Rm 2009 Rm
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OMNIA HOLDINGS ANNUAL REPORT 2010
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OMNIA’S MILESTONES 1976 1974 1972
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FINANCIAL HIGHLIGHTS Audited 31 Mar
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OUR VISION CREATING CUSTOMER WEALTH
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OMNIA ANNUAL REPORT 2010 5 The diff
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Participants were required to inves
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Statistical information 31 March 20
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The world today faces the compoundi
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OMNIA ANNUAL REPORT 2010 13 Omnia
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Rod Humphris (53) Executive directo
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OMNIA ANNUAL REPORT 2010 17 Notwith
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(2009: 1 107,4 cents), and headline
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the best agronomic advice in all as
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OMNIA ANNUAL REPORT 2010 23 The sou
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Within the Chemicals Division produ
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Overview of Chemicals Protea Chemic
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MINING DIVISION - REVIEW OPERATIONA
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of ore. The risks normally associat
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Financial performance As expected,
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About this report This sustainabili
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highly productive lands are also mo
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- Vaal Triangle Priority Area Air M
Page 45 and 46: Challenges and opportunities Our re
Page 47 and 48: Corporate governance This corporate
Page 49 and 50: Board committees While the Board re
Page 51 and 52: The Group has made great strides in
Page 53 and 54: concern assumption at the interim r
Page 55 and 56: implemented to introduce a technolo
Page 57 and 58: There has been a marked improvement
Page 59 and 60: Social performance Recognising our
Page 61 and 62: for new students of a Certificate i
Page 63 and 64: To entrench these commitments throu
Page 65 and 66: At Omnia Fertilizer, all incidents
Page 67 and 68: Water Use Licence Application (IWUL
Page 69 and 70: FINANCIAL STATEMENTS A responsible
Page 71 and 72: REPORT OF THE AUDIT COMMITTEE for t
Page 73 and 74: DIRECTORS’ REPORT The directors a
Page 75 and 76: DIRECTORS’ SHAREHOLDING as at 31
Page 77 and 78: GROUP INCOME STATEMENT for the year
Page 79 and 80: GROUP STATEMENT OF CHANGES IN EQUIT
Page 81 and 82: NOTES TO THE GROUP FINANCIAL STATEM
Page 83 and 84: IAS 39, only certain, rather than a
Page 85 and 86: 1.5 Cost of sales When inventories
Page 87 and 88: are presented in the income stateme
Page 89 and 90: fair value of plan assets, together
Page 91 and 92: 1.22 Financial risk management 1.22
Page 93 and 94: 2 PROPERTY, PLANT AND EQUIPMENT Fre
Page 95: 2 PROPERTY, PLANT AND EQUIPMENT con
Page 99 and 100: 8 STATED CAPITAL continued Number o
Page 101 and 102: 13 INTEREST-BEARING BORROWINGS OMNI
Page 103 and 104: 15 PROVISIONS OMNIA ANNUAL REPORT 2
Page 105 and 106: 19 FINANCE EXPENSES OMNIA ANNUAL RE
Page 107 and 108: 21 EARNINGS PER SHARE AND DIVIDENDS
Page 109 and 110: 28 ACQUISITION OF BUSINESS OMNIA AN
Page 111 and 112: 29 FINANCIAL RISK MANAGEMENT contin
Page 113 and 114: 29 FINANCIAL RISK MANAGEMENT contin
Page 115 and 116: 30 RELATED PARTY TRANSACTIONS conti
Page 117 and 118: 32 RETIREMENT BENEFIT INFORMATION c
Page 119 and 120: OMNIA ANNUAL REPORT 2010 115 33 CON
Page 121 and 122: 36 SHARE INCENTIVE SCHEME continued
Page 123 and 124: 36 SHARE INCENTIVE SCHEME continued
Page 125 and 126: Country of incorporation Issued cap
Page 127 and 128: COMPANY INCOME STATEMENT for the ye
Page 129 and 130: COMPANY CASH FLOW STATEMENT for the
Page 131 and 132: SUMMARY OF SHAREHOLDER SPREAD at 31
Page 133 and 134: NOTICE TO SHAREHOLDERS for the year
Page 135 and 136: FORM OF PROXY For use at the annual
Page 137 and 138: ADMINISTRATION GROUP COMPANY SECRET
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