Auditor’s ResponsibilityOur responsibility is to express an opinion on whether the summary consolidatedand separate financial statements are consistent, in all material respects, with theaudited consolidated and separate financial statements based on our procedures,which were conducted in accordance with International Standard on Auditing (ISA)810 (Revised), Engagements to Report on Summary Financial Statements.PricewaterhouseCoopers Inc.Director: Louis RossouwRegistered AuditorBloemfontein31 August 2018 From the Members, For the Members 49 PricewaterhouseCoopers
Consolidated and Separate income statementFor the year ended 30 April 2018 Group CompanyIncome 2018 2017 2018 2017 R’000 R’000Revenue R’000 R’000 3 914 24 660Cost of salesGross Profit 3 035 053 2 704 381Incentive Rebates and Deferred Payment Scheme attributable to RevenueGross Profit before Incentive Rebates and Deferred Payment Scheme 2 874 485 2 546 077 - -Other operating income (2 140 491) (1 981 318) - -Other operating gains - -Investment income 733 994 564 759 - -Operating expenses 7 255 12 927 - -Operating profit 3 886 3 264Finance costs 741 249 577 686 - 100Profit/(Loss) after finance costs 102 516 103 635 28 21 296Profit from equity accounted investments (2 219) (2 687)Profit/(Loss) from continuing operations before Incentive Rebates 3 238 6 137 1 695 21 973and Deferred Payment Scheme, and tax 47 559 35 605 (1 965) (5 511)Net Incentive Rebates and Deferred Payment Scheme (800 386) (686 564) (270) 16 462Gross Incentive Rebates and Deferred Payment Scheme 94 176 36 499 - -Fair value adjustment (67 409) (57 833) (270) 16 462 26 767 (21 334)Profit/(Loss) from continuing operations after Incentive Rebates 11 365and Deferred Payment Scheme before tax 38 132 603Tax (20 731)Profit/(Loss) from continued operationsDiscontinued operations (7 255) (12 927) 2 449 4 456Loss from discontinued operations (9 704) (17 383) - -Profit/(Loss) for the year 2 449 4 456 2 449 4 456Attributable to:Shareholders of the holding company: 30 877 (33 658) 2 179 20 918Profit/(Loss) from continuing operationsProfit/(Loss) from discontinued operations 3 290 12 158 (278) 1 315 34 167 (21 500) 1 901 22 233Non-controlling interestLoss from continuing operations (6 450) (11 576) - - 27 717 (33 076) 1 901 22 233Earnings per share attributable to the shareholdersof the holding company 49 097 (12 573) 1 901 22 233Basic and diluted earnings per share (cent) (6 450) (11 576) - - 42 647 (24 149)Dividends per share 1 901 22 233Interim (cent) (14 930) (8 927)Final (cent) - - 71,51 - 3,19 37,28 - - - - 20,00 20,00 20,00 20,00PAGEFIFTY
CONSOLIDATED AND SEPARATESTATEMENT OF COMPREHENSIVE INCOMEFor the year ended 30 April 2018 Group 2017 Company 2017 R’000 R’000Profit for the year 2018 (33 076) 2018 22 233Other comprehensive income/(loss): R’000 R’000Fair value adjustments on financial assets 27 717 1 901Other comprehensive income net of tax -- 12 640 (44 471)Total comprehensive income/(loss) for the year -- 12 640 (44 471)Attributable to: 27 717 (33 076) 14 541 (22 238)Shareholders of the holding companyNon-controlling interest 42 647 (24 149) 14 541 (22 238) (14 930) (8 927) - - 27 717 (33 076) 14 541 (22 238)I love theansmd egllroowf irnaginthings. Serna Hermande 51 COMPREHENSIVE INCOME
CONSOLIDATED AND SEPARATESTATEMENT OF FINANCIAL POSITIONAs at 30 April 2018 Group 2017 Company 2017 R’000 R’000ASSETS 2018 2018Non-Current Assets R’000 R’000Property, plant and equipmentInvestment Property 777 408 723 289 537 799 513 518Goodwill 446 954 406 864 19 30Intangible assets - -Investments in subsidiaries 8 941 8 940 - -Investment in associated companies 6 010 3 277 6 3Other financial assets 170 266 100 985Instalment sale financing and loans due 537 774 513 485Trade receivables financed by banks - - - -Deferred tax assets 139 485 138 257 - - 58 951 - -Current Assets 743 - -Inventories 1 992 4 763 - -Trade and other receivables 1 252Loans to group companies -Other financial assets 3 017 -Trade receivables financed by banksCurrent tax asset 1 320 506 1 142 210 5 022 18 144Instalment sale financing and loans due 539 272 575 261 - -Cash and cash equivalents 453 005 310 799 - - 4 681 126Total assets 197 141 103 661 323 6 492 577 213 -EQUITY AND LIABILITIES 5 323 10 508 - -EQUITY 3 004 5 709 - -Equity Attributable to Equity Holders of Parent 122 184 136 059 - -Share capital 18 -Share premium 11 526ReservesRetained income 2 097 914 1 865 499 542 821 531 662Ordinary shareholders` interestNon-controlling interest in equity 596 596 596 596Total Equity 46 681 46 681 47 001 47 001 332 918 320 278LIABILITIES 15 15 35 048 45 075Non-Current Liabilities 464 046 457 784 415 563 412 950Other financial liabilities 511 338 505 076Finance lease liabilities 73 545 43 458 - -Deferred tax 584 883 548 534 415 563 412 950ProvisionsBorrowings from banks to finance trade receivables 392 503 496 977 121 290 114 979 378 875 478 833 20 918 18 533Current Liabilities - -Loans from group companies 7 675 8 855 100 372 96 446Other financial liabilities - 967 - -Finance lease liabilities - -Trade and other payables 5 953 7 107Provisions - 1 215 5 968 3 733Other liabilities 2 603 1 503Borrowings from banks to finance trade receivables 1 120 528 819 988Bank overdraft - - - - - -Total Liabilities 292 695 227 519 19 6 4 875 6 024 - -Total Equity and Liabilities 3 346 2 224 488 110 393 095 - - 18 166 17 238 - - 3 356 6 170 127 258 118 712 661 455 312 665 169 487 542 821 531 662 1 513 031 1 316 965 2 097 914 1 865 499PAGEFIFTY-TWO
SEPARATE STATEMENT OF CHANGES IN EQUITYFor the year ended Share Share Total Revalua- Retained Total Non- Total30 April 2018 capital premium share tion earnings R ‘000 con- Equity capital trolling R ‘000Balance at 1 May 2016 reserve interest R ‘000Profit for the year R ‘000 R ‘000 R ‘000 R ‘000 R ‘000Other comprehensive lossTotal comprehensive loss for the year 596 47 001 47 597 364 749 30 595 442 941 - 442 941Dividends paid - - - - 22 233 22 233 - 22 233Total contributions by and distributions to owners of - - - (44 471) (44 471) - (44 471)the company - - - (44 471) 22 233 (22 238) - (22 238)Balance at 1 May 2017 - - - - (7 753) (7 753) - (7 753)Profit for the yearOther comprehensive income - - - - (7 753) (7 753) - (7 753)Total comprehensive income for the year 596 47 001 47 597 320 278 45 075 412 950 - 412 950Dividends paid - - - - 1 901 1 901 - 1 901Total contributions by and distributions to owners of - 12 640the company - - - 12 640 - 12 640 - 14 541Balance at 30 April 2018 - - - 12 640 1 901 14 541 - (11 928) - - - - (11 928) (11 928) - - - - (11 928) (11 928) - (11 928) 596 47 001 47 597 332 918 35 048 415 563 - 415 563 53 SEPARATE STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFor the year ended Share Share Total Revalua- Retained Total Non- Total30 April 2018 capital premium share tion earnings R ‘000 con- Equity capital trollingBalance at 1 May 2016 restated reserve interest R ‘000Loss for the year R ‘000Total comprehensive loss for the year R ‘000 R ‘000 R ‘000 R ‘000 R ‘000Shares obtained and cancelled 596 46 680 47 276 15 499 457 546 748 51 028 597 776Dividends paid --- - (24 149) (24 149) (8 927) (33 076)Changes in ownership interest - control not lost --- - (24 149) (24 149) (8 927) (33 076)Business combinationsTotal contributions by and distributions to owners of -11 - -1 -1the company - - - - (7 735) (7 735) (5 284) (13 019)Balance at 1 May 2017 - - - - (9 789) (9 789) 9 789 -Profit for the yearTotal comprehensive profit for the year - - - - - - (3 148) (3 148)Dividends paid - 1 1 - (17 524) (17 523) 1 357 (16 166)Changes in ownership interest - control not lostBusiness combinations 596 46 681 47 277 15 457 784 505 076 43 458 548 534Total contributions by and distributions to owners ofthe company --- - 42 647 42 647 (14 930) 27 717 --- - 42 647 42 647 (14 930) 27 717Balance at 30 April 2018 --- - (11 902) (11 902) (5 998) (17 900) --- - (24 483) (24 483) 23 115 (1 368) --- --- 27 900 27 900 --- - (36 385) (36 385) 45 017 8 632 596 46 681 47 277 15 464 046 511 338 73 545 584 883PAGEFIFTY-FOUR
CONSOLIDATED AND SEPARATE CASH FLOW STATEMENTFor the year ended 30 April 2018 Group 2017 Company 2017 R’000 R’000Net cash from/(used in) operations 2018 2018Cash generated from/(used in) operations R’000 R’000Interest incomeDividends received 35 058 (42 587) (4 801) 22 778Interest paid 58 583 (3 266) (2 864) 6 993Tax paid 47 555 34 396 28Cash flows from investing activities 1 209 28 21 268Purchase of property, plant and equipment 4 (57 833) -Sale of property, plant and equipment (67 409) (17 093) (5 511)Purchase of intangible assets (3 675) (1 965) -Prepayment on land (112 097) (149 981) -Business combinations (66 869) (62 164) (19 369)Decrease in instalment sale financing and loans due 1 229 (737) -(Increase)/Decrease in other financial assets 9 364 (1 306) (1) -Decrease in trade receivables financed by banks (1 933) - -(Increase)/Decrease in investments (including subsidiaries and equity accounted investments) (25 968) (490) (5) (3)Decrease in loans to group companies (7 262) 1 284 - -(Decrease)/Increase in loans from group companies 44 378 - -Cash flows from financing activities 5 476 769 - -(Decrease)/Increase in other financial liabilities (34 562) (131 312) - -(Decrease)/Increase in other liabilities - - -Decrease in finance lease liabilities 888 (2 369)Decrease in loans from banks to finance trade receivables 8 769 230 955 (8 000) (10 000)Dividends paid 247 776 6 169 - - (217) 1 100Total cash movement for the year - (2 803) (9 366)Cash and cash equivalents at the beginning of the year (80 014) (782) (5 972) 3 821Cash and cash equivalents at the end of the year (54 480) (13 019) 4 834 10 374 (2 814) 1 122 1 200 (3 811) - (1 009) - - (17 900) - (11 928) (7 753) (157 053) 38 387 (11 510) 7 230 (33 428) (71 815) 11 526 4 294 (33 428) 16 11 524 (190 481) 55CONSOLIDATED AND SEPaRATE CASH FLOW STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS 1. Basis of preparation The accounting policies applied in the preparation of the financial statements from which these summarised financial statements were derived are in terms of International Financial Reporting Standards (IFRS) and are consistent with those accounting policies applied in the preparation of the previous annual financial statements. The auditor expressed an unmodified opinion on the annual financial statements from which these summarised financial statements were derived. A copy of the annual financial statements are available for inspection at the Company’s registered office. These summarised financial statements does not necessarily report on all of the information contained in the full set financial statements. Shareholders are advised that, in order to obtain a full understanding of the financial results, they should obtain a copy of the annual financial statements at the Company’s registered office. 2. Segment analysis Management has determined the operation segments based on the reports reviewed by the executive committee that are used to make strategic decisions. The committee considers the business from a product and service perspective. The executive committee assesses the performance of the operating segments based on a measure of earnings before tax and non-controlling interest. Certain overhead costs are not allocated to segments, as these costs are managed on a central basis. The amounts provided to the executive committee with respect to total assets measured in a manner consistent with that of the financial statements. These assets are allocated based on the operations of the segments. Investment in shares, classified as available-for-sale financial assets, are considered to be part of the Financing and Investing segment. The amounts provided to the executive committee with respect to total liabilities are measured in a manner consistent with that of the financial statements. These liabilities are allocated based on the operation of the segment. An analysis of the revenue of each segment is as follows: GRAIN Income received from the handling and storage of agricultural products and the total revenue of grain sold including commission earned on grain marketing as well as grain derivatives. TRADING Sales at the retail outlets, direct sales of farming inputs and general commercial merchandise, agricultural machinery and equipment, parts and repair services. Wholesale sales by Agrinet (Pty) Ltd and PE-BEE Agri (Pty) Ltd. FINANCING AND INVESTMENTS Credit extension to farmers and grain-off takers in the form of production credit, long term loans and instalment sale financing. This income also includes commission received on premiums received from insurance broker service to the short-term, long-term and crop insurance market as well income on investing activities.PAGEFIFTY-SIX
NOTES TO THE FINANCIAL STATEMENTSTechnologyAgri-services, Information Technology, Laboratory and Network services.CorporateHead Office services, Human Resources, Secretarial services, Corporate Marketing, Internal Audit and directors.The value of intersegmental sales is immaterial in relation to total sales and is therefore not disclosed separately. Ananalysis of geographical segments is not provided as the geographical distribution, as defined in terms of IFRS, is notmaterial.For the year ended Grain Retail Financing Technology Corporate Consolida- Total30 April 2018 and tion R’000 R’000 R’000 R’000 R’000Total Segment income 301 204 2 722 169 Investments 70 766 149 205 R’000 3 135 820Finance costs (16 545) R’000 (13 725) (289 456)Depreciation and impairment (5 148) (45 416) (667) (1 262) (73 102)Amortisation (13 600) 181 932 (2 641) 63 813 (22 938)Share of result in equity investments - (60 562) - 23 (4 383)Profit/(Loss) before tax and non-controlling - (548) (7) -interest, after Incentive Rebates and - (310) 81 (3 271) 11 365Deferred Payment Scheme 54 112 (557) -Profit/(Loss) after tax, non-controlling 11 284 23 052interest and Incentive Rebates and Deferred 47 171Payment Scheme (20 896) 46 467 4 621 (61 252) -Total assets 436 924Total liabilities (347 038) 5 964 45 878 2 551 (58 917) - 42 647Capital expenditure 17 499 975 546 177 472 75 354 2 107 515 (1 674 897) 2 097 914 (701 508) (159 318) (32 897) (735 116) 462 846 (1 513 031) - 51 356 2 160 16 923 6 817 94 755For the year ended Grain Retail Financing Technology Corporate Consolida- Total30 April 2017 and tion R’000 R’000 R’000 R’000 R’000Total Segment income 262 854 2 589 525 Investments 61 922 121 971 R’000 2 887 821Finance costs (36 288) R’000 (311 262)Depreciation and impairment (3 354) (39 717) (278) 9 488 (57 967)Amortisation (12 503) 162 811 (1 529) (1 258) 51 640 (18 784)Share of result in equity investments - (42 812) - (1 653)Profit/(Loss) before tax and non-controlling - (179) (7) -interest, after Incentive Rebates and - (140) 70 - (1 462) 603Deferred Payment Scheme (80 589) (5) -Profit/(Loss) after tax, non-controlling 533 (46 020)interest and Incentive Rebates and Deferred (47 015)Payment Scheme 7 598 72 192 10 620 (55 841) -Total assets 372 581Total liabilities (318 447) 2 247 71 870 6 153 (57 404) - (24 149)Capital expenditure 11 915 1 007 545 149 537 41 662 1 906 998 (1 612 826) 1 865 497 (809 531) (107 595) (8 330) (562 561) 489 501 (1 316 963) (10) 16 048 351 4 193 31 597 64 094 57 NOTES TO THE FINANCIAL STATEMENTS
ADMINISTRATIVE REGISTEReD ADDRESS AND POSTAL ADDRESS INFORMATION Voortrekker Road • Leeudoringstad • 2640 PO Box 5 • Leeudoringstad • 2640 WEBSITE http://www.suidwes.co.za GROUP SECRETARY D Linde PO Box 5 • Leeudoringstad • 2640 Tel: (018) 581 1000 Fax: (018) 581 1585 Email: [email protected] TRANSFER SECRETARY Group Secretary – see particulars above TRADING OFFICE Care of Group Secretary PO Box 5 • Leeudoringstad • 2640 Enquiries: Mrs. Adèle Holtzhausen Tel: 018 581 1191 Email: [email protected] AUDITORS PricewaterhouseCoopers Incorporated Second Avenue 61 • Westdene • Bloemfontein • 9301 PO Box 818 • Bloemfontein • 9300 BANKERS Land and Agricultural Development Bank of South Africa First National Bank, a division of First Rand Bank Limited ABSA Bank Limited, member of the Barclays Group Nedbank, a division of Nedcor Bank Limited Standard Bank of South Africa Limited REGISTRATION NUMBERS OF COMPANIES Suidwes Holdings (RF) (Pty) Ltd (1998/007242/07) Suidwes Investments (Pty) Ltd (1998/007601/07) Suidwes Agriculture (Pty) Ltd (1990/006879/07) Africum Limited (2011/102794/06) Suidwesfin (Pty) Ltd (1998/007714/07) Suidwes Brokerage (Pty) Ltd (1993/000083/07) Africum Commodities (Pty) Ltd (1994/000592/07) Terratek International (Pty) Ltd (1997/000060/07) Suidwes IT-Solutions (Pty) Ltd (1996/018157/07) Suidwes IT-Solutions II (Pty) Ltd (2014/051978/07) NviroTek Laboratories (Pty) Ltd (2007/029712/07) Agrinet (Pty) Ltd (1999/001922/07) Network Embedded Technologies (Pty) Ltd (2009/014440/07) Raddix Group (Pty) Ltd (2012/115113/07) PE-BEE Agri (Pty) Ltd (2005/036308/07) Africum Mills (Pty) Ltd (1994/001751/07) Agrifriend Equipment (Pty) Ltd (2012/195690/07) Agrifriend Namibia (Pty) Ltd (2013/0274) Agrifriend Technology (Pty) Ltd (2013/090793/07) Agrifriend Commodities (Pty) Ltd (2015/043713/07) Botselo Mills (Pty) Ltd (2007/025513/07) Wynland Laboratorium (Pty) Ltd (2013/054796/07) TOLL-Free NUMBER 0800511475 WHISTLE BLOWERS 0800203115 Saamgestel deur Advalue - 082 375 4087PAGEFIFTY-EIGHT
NOTES 59 ADMINISTRATIVE INFORMATION
To those who work in hectares, not hours, We Thank You!
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