Annual Report 2009 Annual Report 2009
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Notes to the annual financial statements
for the year ended 30 September 2009

                             GROUP  
    2009       2008  
    R'000       R'000  
41. Business combinations            
  Effect on movement of:            
  Property, plant and equipment 27 638       25 627  
  Intangible assets 4 877       4 992  
  Inventories 1 078       1 873  
  Trade and other receivables –       4 694  
  Cash and cash equivalents –       2 822  
  Current income tax assets –       119  
  Trade and other payables –       (4 836)  
  Deferred income tax liabilities –       (91)  
    33 593       35 200  
  Refer to note 44 for further detail.
 		            
42. Segment information            
  The primary segmental disclosure is business segments.

Business segments are divided into the following:		            
  Sasko            
  Agri Business            
  Bokomo Foods            
  Ceres Beverages            
  Unallocated

Sasko includes products such as wheaten flour, maize meal, rice, pasta, bread, the foreign African businesses and the business of Bowman Ingredients. Agri Business includes eggs, broilers and animal feeds. Bokomo Foods include breakfast cereals, dried fruits and other fast moving consumer goods and the Heinz Foods SA and Bokomo Foods (UK) businesses. Ceres Beverages include fruit juices, fruit concentrate mixtures and carbonated soft drinks.

The secondary segment comprises mainly South Africa.

Segment assets consist of property, plant and equipment, intangible assets, inventories, biological assets, trade and other receivables and derivative financial instrument assets and exclude cash and cash equivalents, available-for-sale financial assets, loans to joint ventures, investment in associates, deferred and current income tax assets and loans receivable.

Segment liabilities consist of trade and other payables, provisions for other liabilities and charges, share-based payment liabilities and derivative financial instrument liabilities, and exclude borrowings, current income tax liabilities, deferred income tax liabilities and dividends payable.

Segment capital expenditure consists of additions and replacements of property, plant, equipment and intangible assets.

Unallocated amounts include non-qualifying business segments.
 		            
  Primary reporting format – business segments            
  Segment revenue 16 511 218       15 258 654  
    Sasko 8 876 723       8 142 935  
    Agri Business 2 599 399       2 493 338  
    Bokomo Foods 2 625 014       2 539 440  
    Ceres Beverages 2 410 082       2 082 941  
    Unallocated –       –  
  Less: Internal revenue (227 304)       (374 278)  
    Sasko (144 691)       (252 871)  
    Agri Business (24 051)       (51 776)  
    Bokomo Foods (37 573)       (52 732)  
    Ceres Beverages (20 989)       (16 899)  
    Unallocated –       –  
               
  External revenue 16 283 914       14 884 376  
  Segment results (before items of a capital nature) 1 160 006       865 058  
    Sasko 926 270       622 056  
    Agri Business 80 327       3 464  
    Bokomo Foods 195 373       239 375  
    Ceres Beverages 98 623       77 752  
    Unallocated (140 587)       (77 589)  
  Total segment assets 7 401 578       7 666 191  
    Sasko 3 174 153       3 530 048  
    Agri Business 905 514       801 660  
    Bokomo Foods 1 631 638       1 858 814  
    Ceres Beverages 1 295 647       1 319 885  
    Unallocated 394 626       155 784  
  Total segment liabilities 1 713 591       1 636 756  
    Sasko 576 277       502 542  
    Agri Business 317 500       344 654  
    Bokomo Foods 317 846       335 521  
    Ceres Beverages 287 140       324 928  
    Unallocated 214 828       129 111  
  Total segment capital expenditure (excluding business combinations) 465 626       647 768  
    Sasko 88 281       242 164  
    Agri Business 74 797       65 360  
    Bokomo Foods 157 975       143 179  
    Ceres Beverages 128 209       165 752  
    Unallocated 16 364       31 313  
  Total segment depreciation and amortisation 269 086       252 259  
    Sasko 111 017       104 355  
    Agri Business 21 094       19 603  
    Bokomo Foods 54 397       45 937  
    Ceres Beverages 55 034       50 814  
    Unallocated 27 544       31 550  
  Total segment non-cash results (14 670)       2 909  
    Sasko (1 971)       2 321  
    Agri Business (1 711)       579  
    Bokomo Foods (13 123)       (884)  
    Ceres Beverages 289       (470)  
    Unallocated 1 846       1 363  
  Total segment impairment of property, plant, equipment and intangible assets     53 352       22 278  
    Sasko –       –  
    Agri Business –       –  
    Bokomo Foods 53 352       22 026  
    Ceres Beverages –       252  
    Unallocated –       –  
  Secondary reporting format – geographical segments            
  Segment revenue  16 436 787       15 028 383  
    South Africa 15 838 903       14 446 977  
    Foreign countries 597 884       581 406  
  Less: Internal revenue (152 873)       (144 007)  
    South Africa (152 873)       (144 007)  
    Foreign countries –       –  
               
  External revenue 16 283 914       14 884 376  
  Total segment assets 7 401 578       7 666 191  
    South Africa 7 165 922       7 401 340  
    Foreign countries 235 656       264 851  
  Total segment capital expenditure (excluding business combinations)  465 626       647 768  
    South Africa 449 087       636 840  
    Foreign countries 16 539       10 928  
               
43. Events after the balance sheet date            
  A final dividend of 89,0 cents (2008: 66,0 cents) per ordinary share has been declared for the year. This will only be reflected in the statement of changes in equity for 2010. Refer to note 9.

No other events that may have a material effect on the Group occurred after the balance sheet date.
 		            
44. Acquisitions            
  During the course of the year the following businesses were acquired and all assets and liabilities relating to these acquisitions have been accounted for on an acquisition basis.
 		            
44.1 Papillon Foods            
  The assets of this business were acquired on 27 February 2009 and can be summarised as follows:            
  Fair Value            
  Land and buildings 18 132       –  
  Plant and equipment 4 806       –  
  Intellectual property 2 926       –  
  Inventory 578       –  
  Goodwill 1 951       –  
  Purchase consideration – settled in cash 28 393       –  
  Carrying Value            
  As the Group acquired the assets of this business rather than the shares of the legal entity that previously owned such assets, it is impracticable to disclose the carrying amounts in the accounting records of the previous owners prior to the acquisition. In these circumstances the Group does not have access to such carrying values.
 		            
  Contribution since acquisition:            
  Revenue 10 708       –  
  Operating loss before finance cost and income tax (1 379)       –  
  Pro forma contribution assuming the acquisition was at the beginning of the year:            
  Revenue 18 350       –  
  Operating loss before finance cost and income tax (361)       –  
44.2 Ceres Spring Water            
  The assets of this beverages business were acquired on 1 November 2008 and can be summarised as follows:            
  Fair Value            
  Land and buildings 3 000       –  
  Plant and equipment 1 700       –  
  Inventory 500       –  
  Purchase consideration – settled in cash 5 200       –  
  Carrying Value            
  As the Group acquired the assets of this business rather than the shares of the legal entity that previously owned such assets, it is impracticable to disclose the carrying amounts in the accounting records of the previous owners prior to the acquisition. In these circumstances the Group does not have access to such carrying values.
 		            
  Contribution since acquisition:            
  Revenue 6 439       –  
  Operating profit before finance cost and income tax 264       –  
  Pro forma contribution assuming the acquisition was at the beginning of the year:            
  Revenue 7 024       –  
  Operating profit before finance cost and income tax 288       –  
               
                      GROUP  
    Year of Interest rate
at year-end		     2009       2008  
    redemption (%)     R’000       R’000  
45. Borrowings                    
45.1 Secured financing         1 214 981       1 348 199  
45.1.1 Lease agreements         –       12  
  Monthly payments – –     –       12  
  Instalment of Rnil (2008: R6,005).                    
  Property, plant and equipment with a book value of Rnil (2008: R147,750) are encumbered.                    
45.1.2 Syndicated and other         1 214 981       1 348 187  
  Syndicated loans:                    
  Quarterly payments (amortising loans) 2013 8,6–8,8     593 116       705 510  
  Instalments from R6,295,025 to R15,700,323 (2008: R8,175,736 to R20,381,550).
 		                    
  Quarterly payments (bullet loans) 2013 8,8–8,9     603 050       604 793  
  Instalments (interest only) fromR3,305,170 to R6,805,085 (2008: from R5,208,000 to R10,393,500).

Secured by mortgages over immovable property, special notarial bonds over specific items of property, plant and equipment and general notarial bonds over all movable assets of specific Group subsidiaries. Refer to note 24 for further detail.
 		                    
  Other loans:                    
  Monthly payments – –     –       6 802  
  Instalment of Rnil (2008: R210,814).
Secured by mortgages over  land and buildings and a deed of hypothecation over movable assets.
 		                    
  Monthly payments 2010 2,9     257       31 082  
  Various loans with fixed repayment dates.
Secured by a charge over specific freehold assets of the specific subsidiary company.
 		                    
  Semi-annual payments 2013 2,9     18 558       –  
  Instalment of R2,588,803 (2008: Rnil)
Secured by a charge over specific freehold assets of the specific subsidiary company.		                    
                       
45.2 Unsecured financing         37 258       27 739  
  Loans         16 271       16 379  
  Variable interest rates with no fixed terms of repayment.                    
  Loans         11 360       11 360  
  Interest free loans with no fixed terms of repayment.                    
  Quarterly payments (bullet loans) 2019 9,5     9 627       –  
  Instalments (interest only)                    
                       
  Total amount owing         1 252 239       1 375 938  
  Portion of liabilities payable within one year included in current liabilities         (155 679)       (194 627)  
  Secured financing                    
  Lease agreements         –       (12)  
  Syndicated and other         (138 497)       (182 505)  
  Unsecured financing                    
  Loans         (17 182)       (12 110)  
                       
            1 096 560       1 181 311  
  Note:                    
  Book value of machinery and vehicles encumbered in terms of lease agreements as per note 48.         –       1 310  
                       
45.3 Minimum lease payments and hire purchase payments                    
      Capital     Interest cost       Instalment  
      R’000     R’000       R’000  
  2009                    
  Not later than 1 year   –     –       –  
  Later than 1 year and not later than 5 years   –     –       –  
      –     –       –  
  2008                    
  Not later than 1 year   12     4       16  
  Later than 1 year and not later than 5 years   –     –       –  
      12     4       16  
                       
                                       GROUP  
Name of subsidiary
(Pty) Ltd (except where indicated otherwise)		 Country of
incorporation		                             Issued share capital
                           of subsidiary		 Percentage
interest		  
        2009 2008 2009 2008  
        R R % %  
        (except where indicated otherwise)      
46. Interest in subsidiaries and interest in and loans to joint ventures        
46.1 Subsidiaries              
46.1.1 Manufacturing              
  Agri Protein Processing @ South Africa – 100 – 100  
  Barvale   South Africa 92 200 92 200 100 100  
  Belso’s Holdings Ltd € United Kingdom GBP 1 GBP 1 100 100  
  Belso’s Properties Ltd € United Kingdom GBP 1 GBP 1 100 100  
  Belso’s (UK) Cereals Ltd € United Kingdom GBP 1 GBP 1 100 100  
  Bokomo Foods (UK) Ltd   United Kingdom GBP 2 500 120 GBP 2 500 120 100 100  
  Bokomo Uganda   Uganda UShs 335 400 500 UShs 20 000 100 100  
  Bokomo Zambia Ltd   Zambia          
  – Ordinary shares     K 1 800 000 K 1 800 000 100 100  
  – Preference shares     K 200 000 K 200 000 100 100  
  Ceres Fruit Juices   South Africa 100 000 100 000 100 100  
  Continental Beverages   South Africa 1 000 1 000 100 100  
  Credin Bakery Supplies @ South Africa – 1 – 100  
  Grain Health Foods (UK) Ltd € United Kingdom GBP 1 GBP 1 100 100  
  Laeveld Neute ‡ South Africa 1 1 100 100  
  Maitland Vinegar Works   South Africa 460 593 460 593 74.8 67.9  
  Pioneer Foods   South Africa 252 252 100 100  
  Retail Brands Interafrica   South Africa 1 000 1 000 100 100  
  S.A.D Vine Fruit @ South Africa – 1 000 – 100  
  Sador Boerdery @ South Africa – 1 – 100  
  Safari Nuts ‡# South Africa 204 204 100 100  
  Sasko Pasta   South Africa 1 000 1 000 100 100  
46.1.2 Properties and letting              
  Saslink Leasing   South Africa 1 1 100 100  
  Sasned € South Africa 2 2 100 100  
46.1.3 Investments              
  Ceres Fruit Juices Investment              
  Holdings € South Africa 200 200 100 100  
  Ceres Investment Company € South Africa 195 000 195 000 100 100  
  Pioneer Foods Holdings Ltd   South Africa 220 220 100 100  
46.1.4 Services              
  Sasguard Insurance              
  Company Ltd   South Africa 30 000 30 000 100 100  
46.1.5 Packaging              
  Craft Box Corrugated @ South Africa – 200 – 100  
                 
                                      GROUP  
Name of joint venture   Country of                           Percentage      
(Pty) Ltd   incorporation                           interest Loans  
        2009 2008 2009 2008  
        % % R’000 R’000  
46.2 Joint ventures              
  Manufacturing              
  Alpen Food Company South Africa   South Africa 50 50 4 142 4 207  
  Bokomo Botswana   Botswana 50 50 – –  
  Bokomo Namibia   Namibia 50 50 8 434 8 433  
  Bowman Ingredients (SA)   South Africa 50 50 (1 804) 2 174  
  Heinz Foods SA   South Africa 50 50 20 999 11 360  
  Lohmann Breeding SA   South Africa 50 50 750 750  
  Sosoy   South Africa 50 50 2 945 2 945  
            35 466 29 869  
  The carrying value of loans to joint ventures approximates their fair value at the balance sheet date and is denominated in the functional currency of the Group. No significant risk concentrations exist outside South Africa.
 

Financial assets that are neither past due nor impaired are considered to be fully performing. The total carrying amount of loans to joint ventures was fully performing at year-end. The credit quality of these fully performing loans is considered to be good based on historical default rates.
 

  
  Notes:  
 
@  Deregistered during 2009.
‡  Dormant at 30 September 2009 and in process of deregistration.
€ Dormant at 30 September 2009
#
  		 Dormant at 30 September 2009 after assets and liabilities were transferred to another Group company during the year in terms of section 45 of the Income Tax Act, Act 58 of 1962 (as amended).
 
                 
  GROUP  
Name of associate Country of Percentage          
(Pty) Ltd incorporation interest Cost of shares Loans  
      2009 2008 2009 2008 2009 2008  
      % % R’000 R’000 R’000 R’000  
47. Investment in associate    
  Farming                
  Bergsig Breeders South Africa 28 28 1 700 1 700 – –  
  Interest in retained profit and reserves       1 229 790      
  Balance beginning of year       790 72      
  Profit for the year       439 718      
                   
          2 929 2 490      
  Directors' valuation of unlisted shares       2 929 2 490      
  The following is the summarised balance sheet of the above-mentioned associated company:                
  Non-current assets       16 841 17 990      
  Current assets       17 123 10 758      
  Total assets       33 964 28 748      
  Non-current liabilities       17 683 18 452      
  Current liabilities       7 651 3 234      
  Total liabilities       25 334 21 686      
  Capital and reserves       8 630 7 062      
  Total equity and liabilities       33 964 28 748      
  The following is the summarised income statement of the associated company (after interest was acquired):                
  Revenue       39 973 36 293      
  Operating profit       4 653 5 709      
  Net profit after income tax       1 568 2 564      
    GROUP  
48. Property, plant, equipment and intangible assets        
  Own assets       Leased Assets  
      Plant   Plant    
    Land and machinery &   machinery &    
    buildings equipment Vehicles equipment Vehicles  
    R’000 R’000 R’000 R’000 R’000  
  30 September 2009            
  Cost            
  At 1 October 2008 1 031 820 2 977 680 460 035 7 112 40  
  Additions 98 207 315 412 23 470 – –  
  Transfers 51 813 (50 437) 768 (6 831) –  
  Business combinations 21 132 6 506 – – –  
  Foreign exchange adjustment (7 609) (14 148) (381) – –  
  Disposals (8 155) (42 981) (16 541) (281) –  
  At 30 September 2009 1 187 208 3 192 032 467 351 – 40  
  Accumulated depreciation            
  At 1 October 2008 198 231 1 157 750 172 178 5 802 40  
  Charge for the year 23 355 194 376 31 602 87 –  
  Transfers 3 5 613 20 (5 636) –  
  Impairments – 8 711 – – –  
  Foreign exchange adjustment (645) (9 948) (159) – –  
  Depreciation on disposals (1 286) (24 245) (7 634) (253) –  
  At 30 September 2009 219 658 1 332 257 196 007 – 40  
               
  Net book value at 30 September 2009 967 550 1 859 775 271 344 – –  
               
  Total – 2009 3 098 669     –    
               
  Total property, plant and equipment – 2009 3 098 669          
  30 September 2008            
  Cost            
  At 1 October 2007 818 787 2 634 421 420 415 7 288 40  
  Additions 129 581 449 511 52 271 – –  
  Transfers 85 029 (86 568) 1 007 – –  
  Business combinations 6 004 22 500 1 106 – –  
  Foreign exchange adjustment 1 879 8 376 419 – –  
  Disposals (9 460) (50 560) (15 183) (176) –  
  At 30 September 2008 1 031 820 2 977 680 460 035 7 112 40  
  Accumulated depreciation            
  At 1 October 2007 178 256 1 006 771 149 375 5 864 40  
  Charge for the year 20 278 181 874 30 735 95 –  
  Transfers 1 475 (2 207) 108 – –  
  Impairments – 2 747 – – –  
  Business combinations 77 3 889 17 – –  
  Foreign exchange adjustment 1 688 4 532 413 – –  
  Depreciation on disposals (3 543) (39 856) (8 470) (157) –  
  At 30 September 2008 198 231 1 157 750 172 178 5 802 40  
               
  Net book value at 30 September 2008 833 589 1 819 930 287 857 1310 –  
               
  Total – 2008 2 941 376     1310    
               
  Total property, plant and equipment – 2008 2 942 686          
               
      GROUP  
  Intangible assets            
          Intellectual Computer  
      Trademarks Goodwill Property Software  
      R’000 R’000 R’000 R’000  
  30 September 2009            
  Cost            
  At 1 October 2008   477 851 287 278 19 859 98 937  
  Additions   – – – 28 537  
  Transfers   – – – 4 687  
  Business combinations   – 1 951 2 926 –  
  Foreign exchange adjustment   (346) (4 252) – (50)  
  Disposals   – – – (93)  
  At 30 September 2009   477 505 284 977 22 785 132 018  
  Accumulated depreciation            
  At 1 October 2008   110 808 17 719 3 614 72 269  
  Charge for the year   2 041 – 2 067 15 558  
  Foreign exchange adjustment   (191) (8) – (49)  
  Impairments   – 44 641 – –  
  Depreciation on disposals   – – – (93)  
  At 30 September 2009   112 658 62 352 5 681 87 685  
               
  Net book value at 30 September 2009   364 847 222 625 17 104 44 333  
               
  Total intangible assets – 2009   648 909        
  30 September 2008            
  Cost            
  At 1 October 2007   477 726 284 928 18 659 82 243  
  Additions   – – – 16 405  
  Transfers   – – – 532  
  Business combinations   – 3 792 1 200 –  
  Foreign exchange adjustment   125 1 358 – 25  
  Disposals   – (2 800) – (268)  
  At 30 September 2008   477 851 287 278 19 859 98 937  
  Accumulated depreciation            
  At 1 October 2007   104 679 4 682 1 768 56 775  
  Charge for the year   2 426 – 1 846 15 005  
  Transfers   – – – 624  
  Impairments   3 694 15 837 – –  
  Foreign exchange adjustment   9 – – 35  
  Depreciation on disposals   – (2 800) – (170)  
  At 30 September 2008   110 808 17 719 3 614 72 269  
               
  Net book value at 30 September 2008   367 043 269 559 16 245 26 668  
               
  Total intangible assets – 2008   679 515        
    GROUP  
    2009 2009 2009 2008 2008 2008  
    ‘000 R’000 R’000 ‘000 R’000 R’000  
    Foreign Rand Fair Foreign Rand Fair  
    Amount Amount Value Amount Amount Value  
49. Financial instruments              
49.1 Derivative instruments earmarked for hedging (cash flow hedges)              
49.1.1 Commodity instruments              
  Futures     (17 379)     (39 070)  
49.1.2 Currency forward contracts              
  Purchases of foreign exchange contracts              
    United States dollar 14 487 107 783 (3 648) 25 544 211 765 10 829  
49.1.3 Interest rate derivatives     (67 233)     (47 251)  
  Swaps     (10 806)     (13 144)  
  Collars     (58 207)     (34 107)  
  Ineffective portion not designated for hedging     815     –  
  Portion of next swap settlement recognised     965     –  
                 
  Hedging reserve     (88 260)     (75 492)  
49.2 Other derivative instruments              
49.2.1 Currency forward contracts              
  Purchases of foreign exchange contracts              
    United States dollar 18 841 145 812 (2 976) 8 165 67 720 (1 922)  
    Euro 2 997 33 901 (634) 277 3 289 (216)  
    Australian dollar 261 1 767 (277) 4 500 30 214 (2 501)  
    Swiss frank – – – 791 5 877 (16)  
  Sales of foreign exchange contracts              
    United States dollar 1 233 9 368 74 10 284 86 459 (1 404)  
    Euro 125 1 392 12 282 3 307 (45)  
49.2.2 Interest rate derivatives              
  Swaps     –     1 263  
  Collars     (3 461)     1 312  
                 
          GROUP  
          Capital Interest Total  
          R’000  R’000 R’000  
50. Maturity analysis of financial liabilities              
  30 September 2009              
  Not later than 1 year              
    Borrowings excluding bank overdrafts and call loans 155 679 101 025 256 704  
    Trade and other payables 1 279 174 – 1 279 174  
    Cash flow hedges earmarked for hedging 46 231 – 46 231  
    Other derivative financial instruments 7 376 – 7 376  
    Dividends payable 147 – 147  
    1 488 607 101 025 1 589 632  
  Between 1 and 2 years        
    Borrowings excluding bank overdrafts and call loans 148 236 91 314 239 550  
    Cash flow hedges earmarked for hedging 22 461 – 22 461  
    170 697 91 314 262 011  
  Between 2 and 5 years        
    Borrowings excluding bank overdrafts and call loans 948 324 146 896 1 095 220  
    Cash flow hedges earmarked for hedging 3 969 – 3 969  
    952 293 146 896 1 099 189  
  Total        
    Borrowings excluding bank overdrafts and call loans 1 252 239 339 235 1 591 474  
    Trade and other payables 1 279 174 – 1 279 174  
    Cash flow hedges earmarked for hedging 72 661 – 72 661  
    Other derivative financial instruments 7 376 – 7 376  
    Dividends payable 147 – 147  
    2 611 597 339 235 2 950 832  
                 
 
Note: Financial liabilities do not include provisions, accruals for 13th cheque, deferred revenue, leave and VAT amounts payable.
 
                 
  30 September 2008        
  Not later than 1 year        
    Borrowings excluding bank overdrafts and call loans 194 627 166 009 360 636  
    Borrowings – call loans 289 000 36 270 325 270  
    Trade and other payables 1 285 616 – 1 285 616  
    Cash flow hedges earmarked for hedging 9 858 – 9 858  
    Other derivative financial instruments 6 416 – 6 416  
    Dividends payable 223 – 223  
    1 785 740 202 279 1 988 019  
  Between 1 and 2 years        
    Borrowings excluding bank overdrafts and call loans 143 629 154 365 297 994  
    Cash flow hedges earmarked for hedging 19 261 – 19 261  
    162 890 154 365 317 255  
  Between 2 and 5 years        
    Borrowings excluding bank overdrafts and call loans 1 037 682 353 883 1 391 565  
    Cash flow hedges earmarked for hedging 18 133 – 18 133  
    1 055 815 353 883 1 409 698  
  Total        
    Borrowings excluding bank overdrafts and call loans 1 375 938 674 257 2 050 195  
    Borrowings – call loans 289 000 36 270 325 270  
    Trade and other payables 1 285 616 – 1 285 616  
    Cash flow hedges earmarked for hedging 47 252 – 47 252  
    Other derivative financial instruments 6 416 – 6 416  
    Dividends payable 223 – 223  
    3 004 445 710 527 3 714 972  
                 
 
Note: Financial liabilities do not include provisions, accruals for 13th cheque, deferred revenue, leave and VAT amounts payable.
 
                 
        GROUP  
          Assets at      
          fair value      
          through      
        Loans and profit Available-    
        receivables and loss for-sale Total  
        R’000 R’000 R’000 R’000  
51. Financial instruments by category              
  30 September 2009              
  Assets as per balance sheet              
  Loans to joint ventures     35 466 – – 35 466  
  Available-for-sale financial assets     – – 31 728 31 728  
  Derivative financial instruments     – 114 – 114  
  Trade and other receivables (refer to note 1 below) 1 523 877 – – 1 523 877  
  Cash and cash equivalents     597 529 – – 597 529  
  Total     2 156 872 114 31 728 2 188 714  
                 
        Liabilities
at fair
value
through
profit and
loss
R’000		 Derivatives
used
for hedging
R’000		 Other
financial
liabilities
R’000		 Total
R’000		  
  Liabilities as per balance sheet              
  Borrowings     – – 1 257 652 1 257 652  
  Derivative financial instruments     7 376 72 661 – 80 037  
  Trade and other payables (refer to note 2 below) – – 1 279 174 1 279 174  
Dividends payable     – – 147 147
  Total     7 376 72 661 2 536 973 2 617 010  
                 
 
Note 1: Financial assets do not include prepaid expenses and VAT amounts receivable.
Note 2: Financial liabilities do not include provisions, deferred revenue, accruals for 13th cheque, leave and VAT amounts payable.
 
                 
      GROUP  
      Loans and
receivables
R’000		 Assets at
fair value
through
profit
and loss
R’000 		Derivatives
used
for
hedging
R’000		 Available-
for-sale
R’000		 Total
R’000		  
  30 September 2008              
  Assets as per balance sheet              
  Loans to joint ventures   29 869 – – – 29 869  
  Available-for-sale financial assets   – – – 29 190 29 190  
  Derivative financial instruments   – 2 888 10 829 – 13 717  
  Trade and other receivables  (refer to note 1 below) 1 661 520 – – – 1 661 520  
  Cash and cash equivalents   225 731 – – – 225 731  
  Total   1 917 120 2 888 10 829 29 190 1 960 027  
                 
        Liabilities
at fair
value
through
profit and
loss
R’000		 Derivatives
used
for
hedging
R’000		 Other
financial
liabilities
R’000		 Total
R’000		  
  Liabilities as per balance sheet              
  Borrowings     – – 1 680 649 1 680 649  
  Derivative financial instruments     6 417 47 251 – 53 668  
  Trade and other payables  (refer to note 2 below) – – 1 285 616 1 285 616  
  Dividends payable     – – 223 223  
  Total     6 417 47 251 2 966 488 3 020 156  
                 
 
Note 1: Financial assets do not include prepaid expenses and VAT amounts receivable.
Note 2: Financial liabilities do not include provisions, deferred revenue, accruals for 13th cheque, leave and VAT amounts payable.
 
    GROUP  
    Basic
salary
R’000		 Travel
allow-ances
R’000		 Perfor-mance
bonuses
R’000		 Fringe
benefits
R’000		 Retirement
fund
contribu-tions
R’000		 Directors’
fees
R’000		 Consulting
and
legal fees
R’000		 Gains on
exercise
of share
options
R’000		 Total
R’000		  
52. Directors’ remuneration                    
  30 September 2009                    
  Executives  
  WA Hanekom 3 953 89 3 242 – 278 – – – 7 562  
  LR Cronjé 1 751 152 1 622 – 222 – – 611 4 358  
  MT Swanepoel 1 717 186 1 598 182 222 – – – 3 905  
  TA Carstens 1 795 160 1 708 – 322 – – 7 621 11 606  
  Total executives 9 216 587 8 170 182 1 044 – – 8 232 27 431  
  Non-executives                    
  HE Blanckenberg – 10 – – – 312 – – 322  
  JA Louw – 3 – – – 180 – – 183  
  WA Agenbach – 10 – – – 135 – – 145  
   AW Bester – 4 – – – 135 – – 139  
  GD Eksteen – 4 – – – 135 – – 139  
  JN Hamman (*) – 5 – – – 53 – – 58  
  AE Jacobs – 3 – – – 127 – – 130  
  NS Mjoli-Mncube – 66 – – – 135 – – 201  
  JF Mouton (**) – – – – – 37 – – 37  
  AH Sangqu – 40 – – – 180 – – 220  
   AC Singleton – 46 – – – 135 – – 181  
  Dr FA Sonn – 2 – – – 135 – – 137  
  Dr MI Surve – 2 – – – 135 – – 137  
  JH van Niekerk – 4 – – – 135 – – 139  
  Total non-executives – 199 – – – 1 969 – – 2 168  
                       
  Total directors 9 216 786 8 170 182 1 044 1 969 – 8 232 29 599  
                       
 
* Resigned 20 February 2009.
** Appointed 20 May 2009.
 
                       
  30 September 2008                    
  Executives                    
  WA Hanekom 3 372 89 – 335 433 – – – 4 229  
  LR Cronjé 1 565 152 – – 199 – – – 1 916  
  MT Swanepoel 1 532 186 – – 199 – – 3 127 5 044  
  TA Carstens 1 637 160 – – 242 – – – 2 039  
  Total executives 8 106 587 – 335 1 073 – – 3 127 13 228  
  Non-executives                    
  HE Blanckenberg – 19 – – – 260 – – 279  
  JA Louw – 22 – – – 160 – – 182  
  WA Agenbach – 13 – – – 121 – – 134  
  AW Bester – 5 – – – 73 – – 78  
  GD Eksteen – 17 – – – 121 – – 138  
  JN Hamman (*) – 17 – – – 146 – – 163  
  AE Jacobs – – – – – 14 – – 14  
  NS Mjoli-Mncube – 37 – – – 121 – – 158  
  AH Sangqu – 42 – – – 135 – – 177  
  AC Singleton – 35 – – – 121 – – 156  
  Dr FA Sonn – 2 – – – 121 – – 123  
  Dr MI Surve – 6 – – – 121 – – 127  
  CJ Truter (**) – 4 – – – 48 – – 52  
  JH van Niekerk – 12 – – – 121 – – 133  
  Total non-executives – 231 – – – 1 683 – – 1 914  
                       
  Total directors 8 106 818 – 335 1 073 1 683 – 3 127 15 142  
                       
 
* Resigned 20 February 2009.
** Resigned 22 February 2008.
 
    GROUP  
      Number of shares   % of issued  
          ordinary share  
    Direct Indirect Total capital  
53. Directors’ interest in shares          
  The direct and indirect interests of the directors in the issued share capital of the Company are reflected in the table below:          
  30 September 2009          
  WA Hanekom 524 999 441 890 966 889 0.48  
  LR Cronjé 375 000 55 000 430 000 0.21  
  MT Swanepoel 360 000 – 360 000 0.18  
  TA Carstens 380 665 – 380 665 0.19  
  HE Blanckenberg 170 748 249 895 420 643 0.21  
  JA Louw – 66 170 66 170 0.03  
  WA Agenbach 38 057 – 38 057 0.02  
  AW Bester – – – –  
  GD Eksteen – 573 927 573 927 0.28  
  AE Jacobs – – – –  
  NS Mjoli-Mncube – – – –  
  JF Mouton (**) – – – –  
  AH Sangqu – – – –  
  AC Singleton – – – –  
  Dr FA Sonn – 31 700 31 700 0.02  
  Dr MI Surve – – – –  
  JH van Niekerk – – – –  
    1 849 469 1 418 582 3 268 051 1.62  
  30 September 2008          
  WA Hanekom 599 530 467 423 1 066 953 0.53  
  LR Cronjé 375 000 55 000 430 000 0.21  
  MT Swanepoel 360 000 – 360 000 0.18  
  TA Carstens 123 668 – 123 668 0.06  
  HE Blanckenberg 170 748 249 895 420 643 0.21  
  JA Louw – 60 000 60 000 0.03  
  WA Agenbach 22 057 – 22 057 0.01  
  AW Bester – – – –  
  GD Eksteen – 573 927 573 927 0.29  
  JN Hamman (*) – 330 848 330 848 0.16  
  AE Jacobs – – – –  
  NS Mjoli-Mncube – – – –  
  AH Sangqu – – – –  
  AC Singleton – – – –  
  Dr FA Sonn – 31 700 31 700 0.02  
  Dr MI Surve – – – –  
  JH van Niekerk – – – –  
    1 651 003 1 768 793 3 419 796 1.70  
             
 
* Resigned 20 February 2009.
** Appointed 20 May 2009.
 
             GROUP  
  Directors Number of
options
initially
allocated		 Date
awarded		 Strike
price
(cents)		 Exercisable
up to
date		 Number of
options
exercised		 Number of
options
redeemed		 Number of
options
not
redemed		  
54. Directors’ share options and share appreciation rights          
54.1 Directors’ share options              
  Detail of directors' share options are shown below:                
  30 September 2009                
  WA Hanekom 722 500 2004/05/27 865 2014/05/27 722 500 60 000 662 500  
    73 550 2004/12/24 1 405 2014/12/24 – – 73 550  
    78 545 2006/01/25 2 186 2016/01/25 – – 78 545  
    47 740 2007/02/12 3 142 2017/02/12 – – 47 740  
    68 122 2008/05/26 2 500 2014/05/27 – – 68 122  
  LR Cronjé 367 900 2004/05/27 865 2014/05/27 367 900 122 000 245 900  
    43 950 2004/12/24 1 405 2014/12/24 – – 43 950  
    32 716 2006/01/25 2 186 2016/01/25 – – 32 716  
    21 006 2007/02/12 3 142 2017/02/12 – – 21 006  
    28 369 2008/05/26 2 500 2014/05/27 – – 28 369  
  MT Swanepoel 374 500 2004/05/27 865 2014/05/27 374 500 225 000 149 500  
    44 600 2004/12/24 1 405 2014/12/24 – – 44 600  
    29 686 2006/01/25 2 186 2016/01/25 – – 29 686  
    21 006 2007/02/12 3 142 2017/02/12 – – 21 006  
    15 372 2008/05/26 2 500 2014/05/27 – – 15 372  
  TA Carstens 374 500 2004/05/27 865 2014/05/27 374 500 374 500 –  
    66 300 2004/12/24 1 405 2014/12/24 – – 66 300  
    30 492 2006/01/25 2 186 2016/01/25 – – 30 492  
    22 677 2007/02/12 3 142 2017/02/12 – – 22 677  
    38 508 2008/05/26 2 500 2014/05/27 – – 38 508  
  30 September 2008                
  WA Hanekom 722 500 2004/05/27 865 2014/05/27 722 500 60 000 662 500  
    73 550 2004/12/24 1 405 2014/12/24 – – 73 550  
    78 545 2006/01/25 2 186 2016/01/25 – – 78 545  
    47 740 2007/02/12 3 142 2017/02/12 – – 47 740  
    68 122 2008/05/26 2 500 2014/05/27 – – 68 122  
  LR Cronjé 367 900 2004/05/27 865 2014/05/27 367 900 92 000 275 900  
    43 950 2004/12/24 1 405 2014/12/24 – – 43 950  
    32 716 2006/01/25 2 186 2016/01/25 – – 32 716  
    21 006 2007/02/12 3 142 2017/02/12 – – 21 006  
    28 369 2008/05/26 2 500 2014/05/27 – – 28 369  
  MT Swanepoel 374 500 2004/05/27 865 2014/05/27 374 500 225 000 149 500  
    44 600 2004/12/24 1 405 2014/12/24 – – 44 600  
    29 686 2006/01/25 2 186 2016/01/25 – – 29 686  
    21 006 2007/02/12 3 142 2017/02/12 – – 21 006  
    15 372 2008/05/26 2 500 2014/05/27 – – 15 372  
  TA Carstens 374 500 2004/05/27 865 2014/05/27 374 500 – 374 500  
    66 300 2004/12/24 1 405 2014/12/24 – – 66 300  
    30 492 2006/01/25 2 186 2016/01/25 – – 30 492  
    22 677 2007/02/12 3 142 2017/02/12 – – 22 677  
    38 508 2008/05/26 2 500 2014/05/27 – – 38 508  
             GROUP  
  Directors Number of
SARs
initially
allocated		 Date
awarded		 Strike
price
(cents)		 Exercisable
up to
date		 Number of
SARs
exercised		 Number of
SARs
redeemed		 Number of
SARs
not
redemed		  
54.2 Directors’ share appreciation rights (SARs)            
  Detail of directors' share appreciation rights are shown below:                
  30 September 2009                
  WA Hanekom 61 931 2008/06/09 2 548 2018/06/09 – – 61 931  
    52 264 2009/02/27 2 420 2019/02/27 – – 52 264  
  LR Cronjé 30 024 2008/06/09 2 548 2018/06/09 – – 30 024  
    25 785 2009/02/27 2 420 2019/02/27 – – 25 785  
  MT Swanepoel 30 024 2008/06/09 2 548 2018/06/09 – – 30 024  
    25 785 2009/02/27 2 420 2019/02/27 – – 25 785  
  TA Carstens 31 790 2008/06/09 2 548 2018/06/09 – – 31 790  
    27 595 2009/02/27 2 420 2019/02/27 – – 27 595  
  30 September 2008                
  WA Hanekom 61 931 2008/06/09 2 548 2018/06/09 – – 61 931  
  LR Cronjé 30 024 2008/06/09 2 548 2018/06/09 – – 30 024  
  MT Swanepoel 30 024 2008/06/09 2 548 2018/06/09 – – 30 024  
  TA Carstens 31 790 2008/06/09 2 548 2018/06/09 – – 31 790  
                   
           GROUP  
55. Shareholder information          
  Shareholder spread          
    Number of % of Number of % of total  
  Category shareholders shareholders shares shares  
  Ordinary shares          
  Individuals 4 200 81.5 30 338 218 15.1  
  Nominees and trusts 595 11.5 14 118 363 7.0  
  Investment companies and corporate bodies 363 7.0 149 969 212 74.5  
  Staff share scheme 1 – 6 758 105 3.4  
    5 159 100.0 201 183 898 100.0  
  Non-public/public shareholders
 Pursuant to the JSE Listings Requirements and to the best knowledge of the directors, after reasonable enquiry, the spread of shareholders at 30 September 2009, is as follows:
 		          
    Number of % of Number of % of total  
  Analysis of shareholding shareholders shareholders shares shares  
  Ordinary shares          
  Public shareholding 5 146 99.8 95 470 617 47.5  
  Non-public shareholding          
  Directors (including subsidiary directors) 9 0.2 3 268 051 1.6  
  Pioneer Foods Share Incentive Trust 1 – 6 758 105 3.4  
  Pioneer Foods (Pty) Ltd 1 – 17 982 056 8.9  
  Agri Voedsel Beleggings (Pty) Ltd 1 – 55 627 707 27.6  
  Moorreesburgse Koringboere (Pty) Ltd 1 – 22 077 362 11.0  
    5 159 100.0 201 183 898 100.0  
             
  Distribution of ordinary shareholders          
  Number of shares Number
of ordinary
shareholders		 % Number of
ordinary
shares		 % of total
shares		  
  1–1 000 shares 2 351 45.6 811 061 0.4  
  1 001–10 000 shares 1 949 37.8 6 824 684 3.4  
  10 001–50 000 shares 576 11.2 12 889 874 6.4  
  50 001–100 000 shares 116 2.3 8 174 599 4.1  
  100 001–500 000 shares 139 2.7 27 253 162 13.5  
  500 001 shares and over 28 0.4 145 230 518 72.2  
    5 159 100.0 201 183 898 100.0