| Notes to the financial statements | Note 27 |
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| Company |
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Group |
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| 2017 |
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2016 |
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(R’million) |
2017 |
|
2016 |
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27 |
Group commitments |
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27.1 |
Approved capital expenditure, which will be financed
from the group’s own resources, is as follows: |
|
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| |
|
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Contracted |
476,3 |
|
92,0 |
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| |
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Not contracted |
1 698,1 |
|
1 041,7 |
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| |
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2 174,4 |
|
1 133,7 |
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| 27.2 |
Additional commitments of R434,9 million are expected to be approved in 2018.
The capital commitments noted above include various capital efficiency and expansion projects. |
| 27.3 |
Commitments in respect of operating leases |
| |
Group
(R’million) |
Land and
buildings |
Motor
vehicles |
Property,
plant and
equipment |
Total
commitments |
|
| |
2017 |
|
|
|
|
|
| |
During 2018 |
122,3 |
51,7 |
130,7 |
304,7 |
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| |
During 2019 |
109,9 |
37,9 |
33,8 |
181,6 |
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| |
During 2020 |
97,9 |
26,0 |
1,5 |
125,4 |
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| |
During 2021 |
7,8 |
18,0 |
0,7 |
26,5 |
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During 2022 and thereafter |
– |
11,4 |
0,4 |
11,8 |
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| |
|
337,9 |
145,0 |
167,1 |
650,0 |
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| |
2016 |
|
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| |
During 2017 |
35,1 |
82,2 |
35,9 |
153,2 |
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| |
During 2018 |
19,0 |
66,5 |
3,6 |
89,1 |
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| |
During 2019 |
6,0 |
49,8 |
2,3 |
58,1 |
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During 2020 |
– |
33,4 |
1,7 |
35,1 |
|
| |
During 2021 and thereafter |
– |
26,0 |
1,5 |
27,5 |
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| |
|
60,1 |
257,9 |
45,0 |
363,0 |
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| |
With the exception of the lease described below, operating leases are generally three to six years in duration, without purchase options and in certain instances have escalation clauses of between 7% and 10% or are linked
to the prime rate of interest or Consumer Price Index (CPI). Other contingent rentals are generally not applicable.
One lease, relating to fruit processing equipment, has a contingent rental linked to tons of fruit processed and
escalates based on the American CPI, which amounts to R4,0 million (2016: R5,8 million). |
| 27.4 |
Commitments in respect of finance leases
The group has finance leases for various items of plant and machinery. These leases have terms of renewal with
a purchase option and are linked to the prime interest rate. Renewals are at the option of the specific entity that
holds the lease. Future minimum lease payments under finance leases, together with the present value of the net
minimum lease payments, are as follows:
| Group |
2017 |
|
2016 |
|
| (R’million) |
Minimum
payments |
Present value
of payments |
|
Minimum
payments |
Present value
of payments |
|
| Within one year |
2,5 |
2,0 |
|
2,7 |
2,2 |
|
| After one year but not more than five years |
2,3 |
2,0 |
|
1,0 |
1,0 |
|
| Total minimum lease payments |
4,8 |
4,0 |
|
3,7 |
3,2 |
|
| Less: Amounts representing finance charges |
(0,7) |
– |
|
(0,5) |
– |
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| Total |
4,1 |
4,0 |
|
3,2 |
3,2 |
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Refer to note 26.3 for further details. |
| 27.5 |
Commitments in respect of inventories
In terms of its normal business practice certain group operations have entered into commitments to purchase certain agricultural inputs over their respective seasons. |
| 27.6 |
Commitments in respect of transport
The group maintains long-term contracts, including certain minimum payments, with various transport companies for the distribution of its products. |
| Notes to the financial statements | Note 27 |
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