Annual financial statements

Notes to the cash flow statements

for the year ended 30 September 2018

Company     Group
2018  Reclass#
2017 		 (R'million) Notes  2018  Reclass*
2017 		   
A  Cash operating profit 
Operating profit before abnormal items and impairment 
2 014,1  2 010,7  – Continuing operations  3 238,8  4 524,0    
– Discontinued operations  11,0  14,0    
(Costs)/proceeds included in abnormal items  (99,6) 114,1    
Add back:          
Depreciation  593,1  562,4    
Share-based payment expenses  81,9  110,3    
Provision for post-retirement medical aid  22,0  46,9    
Amortisation  9,8  11,4    
Loss on disposal of plant, equipment and vehicles  0,4  5,0    
(241,5) (56,4) Dividends received from associate companies and subsidiaries 
11,0  4,5  Other non-cash items 
1 783,6  1 958,8  Cash operating profit  3 857,4  5 388,1    
B  Working capital changes 
(Increase)/decrease in inventories  (444,0) 911,6    
10,5  11,6  Decrease/(increase) in trade and other receivables  347,7  (355,9)   
(4,9) 7,0  (Decrease)/increase in trade and other payables  (476,9) 189,7    
5,6  18,6  Working capital changes  (573,2) 745,4    
C  Taxation paid 
(17,0) 10,7  Amounts (payable)/receivable at beginning of the year, net  (66,4) (73,5)   
Income statement charge 
(43,9) (68,6) – Continuing operations  8  (837,0) (1 234,4)   
– Discontinued operations  33  (3,9) (6,7)   
26,6  (4,2) Deferred tax  17  41,0  74,2    
Exchange rate difference and other
non-cash items 		 (1,0) (21,9)   
(0,2) 17,0  Amounts payable/(receivable) at end of the year, net  86,7  66,4    
(34,5) (45,1) Total taxation paid  (780,6) (1 195,9)   
D  Dividends paid 
(2 050,0) (2 030,3) Per statement of changes in equity  (1 829,3) (1 808,6)   
Dividends paid to outside shareholders  (25,2) (25,5)   
(2 050,0) (2 030,3) Total dividends paid  (1 854,5) (1 834,1)   
E   Purchase of property, plant and equipment 
Replacement  (496,3) (457,1)   
Expansion  (223,3) (461,9)   
Total purchase of property, plant and equipment  (719,6) (919,0)   
F  Cash and cash equivalents at beginning of the year 
346,4  282,1  Cash resources  1 221,4  737,0    
Short-term borrowings regarded as cash and cash equivalents  25.4  (735,1) (1 612,0)   
346,4  282,1  Total cash and cash equivalents at beginning of the year  486,3  (875,0)   
G  Cash and cash equivalents at end of the year 
304,7  346,4  Cash resources  1 581,1  1 221,4    
Short-term borrowings regarded as cash and cash equivalents  25.4  (911,9) (735,1)   
304,7  346,4  Total cash and cash equivalents at end of the year  669,2  486,3    
* As part of the annual assessment of all disclosure and presentation, the JSE Report on Proactive Monitoring of Financial Statements issued in February 2018 was reviewed. As a consequence, the group has restated its cash flow treatment relating to equity-settled share option schemes as financing activities. The presentation of comparative figures has therefore been adjusted to conform to the presentation of the current period. The cash flow related to equity-settled share schemes (September 2017: R77,8 million) has been reclassified out of operating activities and proceeds from BMT shares exercised (September 2017: R24,0 million) has been reclassified from investing activities.
# As part of the annual assessment of all disclosure and presentation, the company has restated its income statement to reflect investment income as revenue. This change better presents the operations of the company. The presentation of the comparative figures has therefore been adjusted to conform to this presentation of the current period and as such the cash flow is reclassified accordingly. This is for the company only.