KWV beleggings beperk. jaarverslag KWV investments limited

Transcription

1 KWV beleggings beperk jaarverslag 2005 KWV investments limited Annual report 2005

2 INHOUDSOPGAWE CONTENTS Hooftrekke Finansiële resultate 1 Salient features Financial results Voorsittersverslag 2 Chairman s report Verklaring oor korporatiewe bestuur 3 Corporate governance statement Direkteure se verantwoordelikheid Directors responsibility for vir finansiële verslagdoening 6 financial reporting Verslag van die onafhanklike ouditeure 7 Report of the independent auditors Verklaring deur die maatskappysekretaris 7 Declaration by the company secretary Direkteursverslag 8 Directors report Balansstaat 10 Balance sheet Inkomstestaat 11 Income statement Staat van veranderinge in ekwiteit 12 Statement of changes in equity Kontantvloeistaat 13 Cash flow statement Aantekeninge by die finansiële state 14 Notes to the financial statements Bylaag A Geassosieerde maatskappy 18 Annexure A Associated company Bylaag B Finansiële state van die maatskappy 19 Annexure B Financial statements of the company Kennisgewing aan aandeelhouers 20 Notice to shareholders Administrasie BAB/IBC Administration Volmagvorm Ingesluit/Enclosed Proxy form

3 HOOFTREKKE FINANSIËLE RESULTATE vir die jaar geëindig 30 Junie 2005 SALIENT FEATURES FINANCIAL RESULTS for the year ended 30 June Netto wins toeskryfbaar aan Net profit attributable to ordinary gewone aandeelhouers (R 000) shareholders (R 000) Wesensverdienste (R 000) Headline earnings (R 000) Verdienste per aandeel (sent) Earnings per share (cents) toeskryfbare verdienste 341,7 251,6 attributable earnings wesensverdienste 341,7 254,3 headline earnings Dividend per aandeel (sent) 170, ,812 Dividend per share (cents) tussentyds 77,896 64,262 interim finaal (verklaar na jaareinde) 92,500 69,550 final (declared after year-end) Netto batewaarde per aandeel R20,21 R18,28 Net asset value per share KWV Beleggings/KWV Investments Dividend per aandeel/dividend per share Sent/ Cents Jaar/Year Die hoofbate van die maatskappy The main asset of the company verteenwoordig n 29,9%-aandeelhouding represents a 29,9% shareholding in Distell Groep Beperk. in Distell Group Limited. Distell Hooftrekke van bedryfsresultate: Highlights of operating results: Inkomste (R miljoen) Income (R million) Verdienste per aandeel (sent) 245,8 184,3 Earnings per share (cents) Wesensverdienste per aandeel (sent) 245,8 183,3 Headline earnings per share (cents) Dividenddekking wesensverdienste 2,0 1,9 Dividend cover headline earnings Netto batewaarde per aandeel R14,40 R13,10 Net asset value per share 1

4 VOORSITTERSVERSLAG CHAIRMAN S REPORT FINANSIËLE RESULTATE Die groep se finansiële resultate weerspieël dié van sy geassosieerde maatskappy, Distell Groep Beperk (Distell). Die toeskryfbare verdienste van Distell het met 33,7% toegeneem hoofsaaklik danksy n styging van 19,8% in bedryfswins en ook as gevolg van betekenisvolle dalings in beide netto finansieringskoste en valutaverliese. Die groei in Distell se bedryfswins is hoofsaaklik veroorsaak deur n toename in omset en n voortgesette verbetering in verkoopsmengsel in die plaaslike mark. Die groep is ook bevoordeel deur verhoogde deursette, verdere operasionele doeltreffendhede en gunstige aankoopsinisiatiewe. Die wesensverdienste van Distell het met 34,5% vanaf R358,6 miljoen tot R482,2 miljoen gestyg en wesensverdienste per aandeel met 34,1% vanaf 183,3 sent na 245,8 sent. Die toeskryfbare verdienste van KWV Beleggings het ooreenkomstig met 35,8% toegeneem tot R143,5 miljoen (2004: R105,7 miljoen). Die wesensverdienste per aandeel het met 34,4% toegeneem tot 341,7 sent (2004: 254,3 sent). Die maatskappybeleid is om totale dividende ontvang aan aandeelhouers uit te keer nadat voorsiening gemaak is vir administratiewe uitgawes wat R (2004: R ) beloop het. Die direkteure het n finale dividend van 92,5 sent (2004: 69,55 sent) per gewone aandeel verklaar wat die totale dividend vir die jaar op 170,396 sent (2004: 133,812 sent) per aandeel te staan bring. Dit verteenwoordig n styging van 27,3% teenoor die vorige jaar. Dividende word betaal n week nadat die dividend vanaf Distell ontvang word. FINANCIAL RESULTS The group s financial results reflect those of its associate company, Distell Group Limited (Distell). The attributable income of Distell grew by 33,7%, based largely on an increase of 19,8% in operating profit and also due to a meaningful reduction in both net finance costs and foreign currency losses.the growth in the trading income of Distell was driven largely by increased sales revenue and continued improvement in sales mix in the local market. The group also benefited from improved throughput, further operational efficiencies and favourable procurement initiatives. The headline earnings of Distell increased by 34,5% from R358,6 million to R482,2 million and headline earnings per share by 34,1% from 183,3 cents to 245,8 cents. The attributable earnings of KWV Investments similarly increased by 35,8% to R143,5 million (2004: R105,7 million).the headline earnings per share increased by 34,4% to 341,7 cents (2004: 254,3 cents). The policy of the company is to distribute total dividends received to shareholders after providing for administrative costs which amounted to R (2004: R ). The directors have declared a final dividend of 92,5 cents (2004: 69,55 cents) per ordinary share, bringing the total dividend to 170,396 cents (2004: 133,812 cents) per share for the year. This represents an increase of 27,3% over the previous year. Dividends are paid a week after receipt of the dividend from Distell. VOORUITSIGTE Die direkteure van Distell het vertroue uitgespreek dat die gunstige ekonomiese toestande in Suid-Afrika, met laer inflasie en rentekoerse wat tot n verhoging in besteebare inkomste lei, na verwagting in die nuwe jaar sal voortduur. Die wêreldwye ekonomiese vooruitsigte bly ook positief. Die direkteure van Distell verwag dat die handelsomgewing mededingend sal bly (boonop beïnvloed deur wêreldwye oorproduksie van wyn), wat hoër bemarkingsbesteding deur rolspelers in die bedryf sal veroorsaak. Distell se direkteure is van mening dat die groep toepaslik gestruktureer is, met voortreflike handelsmerke en n gunstige kostegrondslag, om doeltreffend mee te ding en om geleenthede in die plaaslike en buitelandse markte te benut. Die Distell groep verwag vervolgens om groei in verdienste te handhaaf. Hierdie siening behoort dan ook n voortgesette verbetering in die toekomstige resultate van KWV Beleggings Beperk tot gevolg te hê. PROSPECTS The directors of Distell have expressed confidence that the favourable economic conditions in South Africa, with lower inflation and interest rates likely to lead to an increase in disposable income, are expected to endure during the new year. The global economic prospects also remain positive. The directors of Distell expect the trading environment to remain competitive, compounded by global overproduction of wine, which will result in increased marketing investment by industry players. The Distell directors believe that the group is appropriately structured, with reputable brands and a favourable cost basis, to compete effectively and to capture opportunities in the domestic and foreign markets. The Distell group therefore expects to maintain growth in earnings. This view should similarly result in a continued improvement in the future results of KWV Investments Limited. D de Wet Voorsitter D de Wet Chairman 2

5 VERKLARING OOR KORPORATIEWE BESTUUR CORPORATE GOVERNANCE STATEMENT KODE Die maatskappy is verbind tot die beginsels van goeie korporatiewe bestuur en handhaaf die hoogste standaarde van integriteit en etiek. Die maatskappy aanvaar en ondersteun in beginsel die Kode van Korporatiewe Praktyke en Gedrag soos in die 2002 King-verslag vervat en voldoen aan die beginsels en vereistes daarvan in soverre dit prakties en toepaslik geag word. CODE The company is committed to the principles of good corporate governance and upholds the highest standards of integrity and ethics. The company accepts and supports in principle the Code of Corporate Practices and Conduct as contained in the 2002 King report and complies with the principles and requirements thereof insofar as considered practicable and applicable. RAAD VAN DIREKTEURE Samestelling van direksie Direkteure word verkies op aanbeveling van die huidige direkteure of, indien behoorlik genomineer, deur lede.tans bestaan die direksie uit drie nie-uitvoerende direkteure en een uitvoerende direkteur. Die uitvoerende direkteur is lid van die bestuur van die KWV groep. BOARD OF DIRECTORS Board composition Directors are elected on recommendation of the current directors or, if properly nominated, by members. Currently the board comprises three non-executive and one executive director. The executive director is a member of the management of the KWV group. Die direksie verseker dat die gesamentlike vaardighede en ondervinding van direkteure voldoende is om uitvoering te gee aan die strategieë van die maatskappy. The board is responsible for ensuring that the combined skills and experience of directors are sufficient to execute the strategies of the company. Rol en verantwoordelikhede Die direkteure behou volledige en doeltreffende beheer oor die maatskappy en is verantwoordelik vir die daarstelling van strategieë, beleide en die goedkeuring van finansiële doelwitte. Role and responsibilities The directors retain full and effective control of the company and are responsible for the establishment of strategies, policies and the approval of financial objectives. Die maatskappy word bedryf as n beleggingshouermaatskappy waarvan die enigste bate n belegging in Distell Groep Beperk is en wat gehou word deur Remgro-KWV Beleggings Beperk. Gesien in die lig van die noue omvang van die maatskappy se bedrywighede is die rol van die raad beperk tot die monitering van die maatskappy se beleggingsvertoning en om toe te sien dat prosedures en praktyke in plek is om te verseker dat die maatskappy se bates en reputasie beskerm word. Die direksie aanvaar ook verantwoordelikheid vir die bestuur van betrekkinge met verskeie belanghebbendes. The company operates as an investment holding company which holds as its sole asset an investment in Distell Group Limited which is held through Remgro-KWV Investments Limited. In view of the narrow scope of the company s operations, the role of the board is limited to monitoring the company s investment performance and for ensuring that procedures and practices are in place to protect the company s assets and reputation.the board also assumes responsibility for the management of relationships with various stakeholders. Direkteure het toegang tot die advies en dienste van die maatskappysekretaris en is geregtig om op koste van die maatskappy, indien redelikerwys benodig vir nakoming van hulle korporatiewe verpligtinge, onafhanklike professionele advies in te win. Directors have access to the advice and services of the company secretary and are entitled to seek independent professional advice at the company s expense if reasonably required in the execution of their corporate responsibilities. 3

6 VERKLARING OOR KORPORATIEWE BESTUUR (VERVOLG) CORPORATE GOVERNANCE STATEMENT (CONTINUED) Bywoning van direksievergaderings Die direksie vergader minstens twee keer per jaar, indien nie meer dikwels deur omstandighede vereis nie. Bywoning van vergaderings gedurende die jaar onder oorsig was soos volg: Board meeting attendance The board meets at least twice a year, or more frequently if required by circumstances. Attendance at meetings for the year under review was as follows: Direkteur/Director 18 Aug Feb 2005 D de Wet (Voorsitter/Chairman) WJ Barnard AS du Plessis PBB Hugo Teenwoordig/Present RISIKOBESTUUR EN INTERNE BEHEER Die direksie is uiteindelik verantwoordelik vir die proses van risikobestuur en die stelsels van interne beheer. Bestuur van die KWV groep is verantwoordelik vir die identifisering, evaluering en bestuur van die risiko s. Ten einde bevredigende standaarde en stelsels van interne beheer te handhaaf, steun die maatskappy op die kontroles, delegasie van verantwoordelikhede, rekeningkundige prosedures en skeiding van pligte wat deur die houermaatskappy, KWV Beperk, toegepas word. RISK MANAGEMENT AND INTERNAL CONTROL The board is ultimately accountable for the process of risk management and the systems of internal control. Management of the KWV group is responsible for identifying, evaluating and managing the risks. In order to maintain satisfactory standards and systems of internal control, the company relies on the controls, delegation of responsibilities, accounting procedures and segregation of duties which are applied by the holding company, KWV Limited. Die direkteure is tevrede dat die internebeheer-stelsels wat deur die KWV groep van maatskappye geïmplementeer is en in stand gehou word, voldoende is om beduidende risiko s te identifiseer en tot aanvaarbare vlakke te beperk. Hierdie stelsels is ontwerp om die risiko dat maatskappye in die KWV groep se gestelde doelwitte nie bereik word nie, te bestuur en om redelike, maar nie absolute, gerusstelling daaroor te verskaf. The directors are satisfied that the internal control systems which are implemented and maintained by the KWV group of companies are adequate to identify and mitigate significant risks to acceptable levels. These systems are designed to manage and provide reasonable assurance against, rather than eliminate absolutely, the risk of not achieving the stated objectives of companies within the KWV group. Gegewe die aard van die maatskappy se bedrywighede is die direksie van mening dat die risiko van besigheidsonderbreking so gering is dat dit nie die daarstelling van n besigheidskontinuïteitsplan regverdig nie. Given the nature of the company s operations, the board is of the opinion that the risk of business interruption is so remote that it does not justify the establishment of a business continuity plan. Die direkteure is van mening dat die risikobestuur en internebeheerprosedures van die Distell groep deeglike aandag geniet van die betrokke direksie en die direkteure voel gerus dat die maatskappy se belegging in Distell voldoende beveilig word. The directors are of the opinion that the risk management and internal control procedures of the Distell group receive thorough attention by the relevant board and are satisfied that the company s investment in Distell is adequately safeguarded. DIREKSIEKOMITEES Die direksie van die maatskappy verrig ook die funksie van ouditkomitee van die maatskappy en die finansiële state word aan die houermaatskappy, KWV Beperk, se Oudit-en-Risikobestuurskomitee voorgelê vir kennisname. BOARD COMMITTEES The board also functions as the audit committee of the company and the financial statements are presented to the Audit and Risk Management Committee of the holding company, KWV Limited, for their information. Gegewe die noue fokus en omvang van die maatskappy se bedrywighede en aangesien die maatskappy geen werknemers het nie, bestaan daar geen behoefte vir verdere direksiekomitees nie. Given the narrow focus and extent of the company s operations and since the company has no employees, there is no need for additional board committees. 4

7 VERKLARING OOR KORPORATIEWE BESTUUR CORPORATE GOVERNANCE STATEMENT VERHANDELING VAN SEKURITEITE Ingevolge die groepbeleid van die houermaatskappy word direkteure van die maatskappy asook direkteure en sekere werknemers van die KWV groep verbied om tydens pryssensitiewe tydperke, aandele van die maatskappy te verhandel. TRADING IN SECURITIES In terms of the group policy of the holding company, directors of the company as well as directors and certain employees in the KWV group, are prohibited from trading in securities of the company during price- sensitive periods. MAATSKAPPYSEKRETARIS Ten einde hom in staat te stel om sy pligte behoorlik na te kom is die sekretaris ten volle bemagtig deur die direksie en het hy volledige toegang tot persone en hulpbronne benodig. COMPANY SECRETARY To enable him to properly fulfil his duties, the secretary has been fully empowered by the board and has complete access to people and resources required. Die sekretaris vervul n belangrike ondersteuningsrol vir die direksie van die maatskappy. Hy voorsien ook n sentrale bron van leiding en advies in verband met sake-etiek en gesonde bestuurspraktyk. Relevante inligting insake nuwe regulasies en wetgewing wat op direkteure betrekking het, word ook voorgelê wanneer benodig. The secretary plays an important role in supporting the board of the company. He also provides a central source of guidance and advice on business ethics and good governance. Relevant information on new regulations and legislation relating to directors is tabled when necessary. LOPENDE SAAK Ingevolge Maatskappywetvereistes, maak die direksie sy opinie aangaande lopendesaak-aspekte in die jaarverslag bekend. GOING CONCERN In accordance with Companies Act requirements, the board records its opinion on going concern aspects in the annual report. Die direksie oorweeg minstens een keer per jaar die lopendesaakstatus van die maatskappy en die groep aan die hand van die volgende: Die huidige finansiële posisie van die maatskappy en die groep na aanleiding van die direksie se beskouing van die jaarlikse finansiële state Netto beskikbare fondse en die likiditeit daarvan Die volgende jaar se begroting, gebaseer op die finansiële prestasie van die geassosieerde maatskappy, Distell The board reviews the going concern status of the company and the group at least once per year with reference to the following: The current financial position of the company and the group based on the board s deliberations on the annual financial statements Net available funds and the liquidity thereof The following year s budget, based on the financial performance of the associated company, Distell Die goedkeuring van die finansiële jaarstate deur die direkteure, insluitend die lopendesaak-verklaring, is uiteengesit in die Direkteure se Verantwoordelikheid vir Finansiële Verslagdoening op bladsy 6. The directors approval of the annual financial statements, containing the going concern declaration, is set out in the Directors Responsibility for Financial Reporting on page 6. ETIESE KODE Die maatskappy is verbind tot die Etiese Kode van die houermaatskappy, KWV Beperk, wat daarop ingestel is om die hoogste integriteit-, gedrag- en etiese standaarde te handhaaf in die hantering van al sy belanghebbendes. CODE OF ETHICS The company is committed to the Code of Ethics of the holding company, KWV Limited, which is aimed at ensuring that the highest standards of integrity, behaviour and ethics are maintained in dealing with all its stakeholders. 5

8 DIREKTEURE SE VERANTWOORDELIKHEID VIR FINANSIËLE VERSLAGDOENING DIRECTORS RESPONSIBILITY FOR FINANCIAL REPORTING Ingevolge die vereistes van die Maatskappywet is die direkteure verantwoordelik vir die opstel van finansiële jaarstate wat voldoen aan Suid-Afrikaanse Standpunte van Algemeen Aanvaarde Rekeningkundige Praktyk en n redelike weergawe bied van die stand van sake van die maatskappy en die groep soos aan die einde van die finansiële jaar, en van die netto inkomste en kontantvloei vir die tydperk. Die direkteure is ook verantwoordelik vir die ander inligting in die jaarverslag en vir die akkuraatheid daarvan, sowel as die ooreenstemming daarvan met die finansiële state. In accordance with Companies Act requirements, the directors are responsible for the preparation of annual financial statements which conform with South African Statements of Generally Accepted Accounting Practice and which fairly present the state of affairs of the company and the group as at the end of the financial year, and the net income and cash flows for that period.the directors are also responsible for the other information included in the annual report and for both its accuracy and its consistency with the financial statements. Dit is die verantwoordelikheid van die onafhanklike eksterne ouditeure om verslag te doen oor die redelike aanbieding van die finansiële state. Die direkteure is uiteindelik verantwoordelik vir interne kontroles. Bestuur van die KWV groep stel die direkteure in staat om hul verantwoordelikheid in hierdie verband na te kom. Toepaslike rekeningkundige beleide word op n konsekwente en lopendesaakbasis toegepas. Wat standaarde en stelsels van interne beheer betref, steun die maatskappy op die kontroles, delegasie van verantwoordelikhede, rekeningkundige prosedures en skeiding van pligte wat deur die houermaatskappy, KWV Beperk, toegepas word. Die direkteure is tevrede dat hierdie standaarde en stelsels van interne beheer redelike gerusstelling bied aangaande die integriteit en betroubaarheid van finansiële rekords en die finansiële state. It is the responsibility of the independent external auditors to report on the fair presentation of the financial statements. The directors are ultimately responsible for the internal controls. Management of the KWV group enables the directors to meet their responsibilities in this regard. Appropriate accounting policies are applied on a consistent and going concern basis. With regard to standards and systems of internal control, the company relies on the controls, delegation of responsibilities, accounting procedures and segregation of duties which are applied by the holding company, KWV Limited. The directors are satisfied that these standards and systems of internal control provide reasonable assurance as to the integrity and reliability of financial records and of the financial statements. Gebaseer op die inligting en verduidelikings soos deur bestuur en die interne ouditeure van die KWV groep voorsien, is die direkteure van mening dat die rekeningkundige kontroles voldoende is en dat op die finansiële rekords staat gemaak kan word vir die opstel van die finansiële state en vir die handhawing van aanspreeklikheid vir die maatskappy se bates en laste. Die direkteure is nie bewus van enige gebreke in die werking van interne kontroles, gedurende die jaar en tot op datum van hierdie verslag, wat n wesenlike verlies vir die maatskappy veroorsaak het nie. Die direkteure het n redelike verwagting dat die maatskappy oor voldoende bronne beskik om vir die afsienbare toekoms operasioneel te bly voortbestaan. Daarom aanvaar hulle steeds die lopendesaak-basis vir die opstel van die finansiële state. Based on the information and explanations given by management and the internal auditors of the KWV group, the directors are of the opinion that the accounting controls are adequate and that the financial records may be relied upon for preparing the financial statements and maintaining accountability for the company s assets and liabilities. Nothing has come to the attention of the directors to indicate that any breakdown in the functioning of these controls, resulting in material loss to the company, has occurred during the year and up to the date of this report.the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Die finansiële state wat op bladsy 8 tot 19 aangebied word, is op 23 Augustus 2005 deur die direksie goedgekeur en is namens hulle onderteken deur: The financial statements which appear on pages 8 to 19 were approved by the board of directors on 23 August 2005 and are signed on its behalf by: D de Wet Voorsitter WJ Barnard Hoof Uitvoerende Beampte D de Wet Chairman WJ Barnard Chief Executive Officer 6

9 VERSLAG VAN DIE ONAFHANKLIKE OUDITEURE AAN DIE LEDE VAN REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF Ons het die finansiële jaarstate soos uiteengesit op bladsy 8 tot 19 vir die jaar geëindig 30 Junie 2005 geouditeer. Hierdie finansiële state is die verantwoordelikheid van die maatskappy se direkteure. Ons verantwoordelikheid is om op grond van ons oudit n mening oor hierdie finansiële state uit te spreek. We have audited the annual financial statements set out on pages 8 to 19 for the year ended 30 June 2005.These financial statements are the responsibility of the directors of the company. Our responsibility is to express an opinion on these financial statements based on our audit. OMVANG Ons het ons oudit ooreenkomstig standpunte van Suid-Afrikaanse Ouditstandaarde uitgevoer. Hierdie standaarde vereis dat ons die oudit beplan en uitvoer om redelike gerusstelling te verkry dat daar geen wesenlike wanvoorstelling in die finansiële state is nie. n Oudit behels: n ondersoek, op n toetsgrondslag, van bewyse wat die bedrae en openbaarmakings in die finansiële state steun; n beoordeling van die rekeningkundige beginsels wat gebruik is en beduidende ramings wat deur bestuur van die KWV groep gemaak is; asook n oorweging van die algehele aanbieding van die finansiële state. Ons is van mening dat ons oudit n redelike grondslag vir ons mening bied. SCOPE We conducted our audit in accordance with statements of South African Auditing Standards.These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes: examining, on a test basis, evidence supporting the amounts and disclosures included in the financial statements; assessing the accounting principles used and significant estimates made by management of the KWV group; and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. OUDITMENING Na ons mening verstrek hierdie finansiële state, in alle wesenlike opsigte, n redelike weergawe van die finansiële stand van die maatskappy en groep op 30 Junie 2005, en van die resultate van sy bedrywighede en kontantvloei vir die jaar wat op daardie datum geëindig het, in ooreenstemming met Suid-Afrikaanse Standpunte vir Algemeen Aanvaarde Rekeningkundige Praktyk en op die wyse deur die Maatskappywet van 1973 in Suid-Afrika vereis. AUDIT OPINION In our opinion, the financial statements fairly present, in all material respects, the financial position of the company and group at 30 June 2005 and the results of its operations and cash flows for the year then ended in accordance with Statements of Generally Accepted Accounting Practice in South Africa, and in the manner required by the South African Companies Act, PricewaterhouseCoopers Ingelyf Geregistreerde Rekenmeesters en Ouditeure Geoktrooieerde Rekenmeesters (SA) Posbus 215, Paarl Augustus 2005 PricewaterhouseCoopers Incorporated Registered Accountants and Auditors Chartered Accountants (SA) PO Box 215, Paarl August 2005 VERKLARING DEUR DIE MAATSKAPPYSEKRETARIS Ek,Albertus Wynand Eksteen, maatskappysekretaris van KWV Beleggings Beperk, sertifiseer dat die maatskappy vir die jaar onder oorsig alle verslae wat ingevolge die Maatskappywet, 1973, van n publieke maatskappy vereis word,by die Registrateur van Maatskappye ingedien het en dat sodanige verslae, na die beste van my kennis en wete waar, korrek en bygewerk is. DECLARATION BY THE COMPANY SECRETARY I,Albertus Wynand Eksteen, company secretary of KWV Investments Limited, hereby certify that the company has, for the year under review, lodged with the Registrar of Companies all such returns as are required of a public company in terms of the Companies Act, 1973, and that all such returns are true, correct and up to date. AW Eksteen Maatskappysekretaris AW Eksteen Company Secretary 7

10 DIREKTEURSVERSLAG vir die jaar geëindig 30 Junie 2005 DIRECTORS REPORT for the year ended 30 June 2005 AARD VAN BESIGHEID Die maatskappy is n beleggingsmaatskappy wat 50% van die uitgereikte aandelekapitaal in Remgro-KWV Beleggings Beperk besit. Laasgenoemde maatskappy besit 59,8% (2004: 59,8%) van die uitgereikte aandelekapitaal van Distell Groep Beperk, welke maatskappy sy fondse hoofsaaklik belê in die vervaardiging, verspreiding en bemarking van wyn, spiritualieë en alkoholiese vrugtedranke. NATURE OF BUSINESS The company is an investment company which holds 50% of the issued share capital of Remgro-KWV Investments Limited.The latter company holds 59,8% (2004: 59,8%) of the issued share capital of Distell Group Limited, which invests its funds mainly in the manufacture, distribution and marketing of wine, spirits and alcoholic fruit beverages. HOUERMAATSKAPPY Die houermaatskappy van KWV Beleggings Beperk is KWV Beperk. KWV Beperk hou 55,6% (2004: 55,6%) van die uitgereikte aandelekapitaal van die maatskappy. HOLDING COMPANY The holding company of KWV Investments Limited is KWV Limited. KWV Limited holds 55,6% (2004: 55,6%) of the issued share capital in the company. BEDRYFSRESULTATE Die belangrikste bate van die maatskappy is n belegging in Distell Groep Beperk, wat deur die geassosieerde maatskappy Remgro- KWV Beleggings Beperk gehou word. Die ekwiteitsmetode van verantwoording word gevolglik toegepas tydens die opstel van die gekonsolideerde finansiële state. OPERATING RESULTS The main asset of the company is an investment in Distell Group Limited which is held through the associate company, Remgro- KWV Investments Limited, and the equity method of accounting is therefore applied during the preparation of the consolidated financial statements. Die netto wins toeskryfbaar aan gewone aandeelhouers bedra R (2004: R ) nadat inkomste vanaf die geassosieerde van R (2004: R ) in ag geneem is. The net income attributable to ordinary shareholders amounts to R (2004: R ) after having taken into account income from the associate of R (2004: R ). DIVIDENDE Die volgende dividende is reeds betaal of verklaar: Op 21 Februarie 2005 is n tussentydse dividend van 77,896 sent (2004: 64,262 sent) per aandeel betaal. DIVIDENDS The following dividends were paid or declared: On 21 February 2005 an interim dividend of 77,896 cents (2004: 64,262 cents) per share was paid. n Finale dividend van 92,50 sent (2004: 69,55 sent) per aandeel is op 23 Augustus 2005 verklaar en betaalbaar op 19 September A final dividend of 92,50 cents (2004: 69,55 cents) per share was declared on 23 August 2005 and is payable on 19 September AANDELEKAPITAAL Daar was geen verandering in die maatskappy se gemagtigde en uitgereikte aandelekapitaal gedurende die jaar nie. SHARE CAPITAL There has been no change in the authorised and issued share capital of the company during the year. 8

11 DIREKTEURSVERSLAG vir die jaar geëindig 30 Junie 2005 DIRECTORS REPORT for the year ended 30 June 2005 ONTLEDING VAN AANDEELHOUDING op 30 Junie 2005 Die nie-publieke aandeelhouer is die houermaatskappy, KWV Beperk. ANALYSIS OF SHAREHOLDING at 30 June 2005 The non-public shareholder is the holding company, KWV Limited. Aantal/ Aantal aandele/ Persentasie/ Number Number of shares Percentage Publieke aandeelhouers ,4 Public shareholders Nie-publieke aandeelhouers ,6 Non-public shareholders ,0 DIREKTEURE Die name van die direkteure word op die binneagterblad aangedui. DIRECTORS The names of the directors appear on the inside back cover. BELANGE VAN DIREKTEURE Die direkteure van die maatskappy het op 30 Junie 2005 asook op die datum van hierdie verslag geen van die uitgereikte aandele besit nie. DIRECTORS INTEREST At 30 June 2005 and at the date of this report the directors of the company held none of the issued shares of the company. Die huidige direkteure is deur KWV Beperk genomineer en is lede van sy direksie en bestuur. Hulle ontvang geen addisionele vergoeding in hul hoedanigheid as direkteure van KWV Beleggings Beperk nie. The current directors were nominated by KWV Limited and are members of its board and management. They receive no additional remuneration in their capacity as directors of KWV Investments Limited. SEKRETARIS Mnr AW Eksteen is die sekretaris van die maatskappy. SECRETARY Mr AW Eksteen is the secretary of the company. Sy pos- en besigheidsadres is: La Concorde Posbus 528 (Hoofstraat 57) Suider-Paarl, 7624 His postal and business address is: La Concorde PO Box 528 (57 Main Street) Suider-Paarl, 7624 OUDITEURE PricewaterhouseCoopers Ingelyf word heraangestel as ouditeure ingevolge artikel 270(2) van die Maatskappywet van AUDITORS PricewaterhouseCoopers Incorporated will continue in office in accordance with section 270(2) of the Companies Act,

12 BALANSSTAAT op 30 Junie 2005 (Groep) BALANCE SHEET at 30 June 2005 (Group) Aantekeninge Notes R 000 R 000 BATES ASSETS Nie-bedryfsbates Non-current assets Belegging in geassosieerde Investment in associate Bedryfsbates Current assets Kontant en kontantekwivalente Cash and cash equivalents Belasting ontvangbaar 3 Taxation receivable Totale bates Total assets EKWITEIT EN VERPLIGTINGE EQUITY AND LIABILITIES Kapitaal en reserwes Capital and reserves Aandelekapitaal Share capital Reserwes Reserves Gewone aandeelhouersbelang Ordinary shareholders funds Bedryfslaste Current liabilities Krediteure Payables Belasting betaalbaar 20 Taxation payable Totale ekwiteit en verpligtinge Total equity and liabilities 10

13 INKOMSTESTAAT vir die jaar geëindig 30 Junie 2005 (Groep) INCOME STATEMENT for the year ended 30 June 2005 (Group) Aantekeninge Notes R 000 R 000 Inkomste vanaf geassosieerde Income from associate dividende ontvang dividends received belang in behoue verdienste share of retained earnings Verwatering van belang in geassosieerde (1 697) Dilution of investment in associate Rente ontvang Interest received Administratiewe uitgawes (713) (696) Administrative expenses Wins voor belasting Profit before taxation Belasting 6 (32) (6) 6 Taxation Netto wins toeskryfbaar aan gewone Net profit attributable to ordinary aandeelhouers shareholders Gewone aandele (duisende) Ordinary shares (thousands) uitgereik issued gebruik in berekening van used in calculation of earnings verdienste per aandeel per share Sent/Cents Sent/Cents Verdienste per aandeel Earnings per share toeskryfbare verdienste 341,7 251,6 attributable earnings wesensverdienste 7 341,7 254,3 7 headline earnings Dividend per aandeel 170, ,812 Dividend per share tussentyds 77,896 64,262 interim finaal (verklaar na jaareinde) 92,500 69,550 final (declared after year-end) 11

14 STAAT VAN VERANDERINGE IN EKWITEIT vir die jaar geëindig 30 Junie 2005 (Groep) STATEMENT OF CHANGES IN EQUITY for the year ended 30 June 2005 (Group) R 000 R 000 Aandelekapitaal aan begin en einde Share capital at beginning and van die jaar end of the year Behoue verdienste Retained earnings Saldo aan begin van die jaar (301) (205) Balance at beginning of the year Netto wins toeskryfbaar aan Net profit attributable to ordinary gewone aandeelhouers shareholders Netto oordrag na ekwiteitsreserwe (81 346) (58 833) Net transfer to equity reserve Dividende (61 927) (46 940) Dividends Saldo aan einde van die jaar (79) (301) Balance at end of the year Ekwiteitsreserwe Equity reserve Saldo aan begin van die jaar Balance at beginning of the year Toevoegings vir die jaar: Additions for the year: netto oordrag vanaf behoue verdienste net transfer from retained earnings bewegings in ekwiteit van geassosieerde (675) 616 movements in equity of associate Saldo aan einde van die jaar Balance at end of the year Reserwes aan einde van die jaar Reserves at end of the year Ekwiteit aan einde van die jaar Equity at end of the year 12

15 KONTANTVLOEISTAAT vir die jaar geëindig 30 Junie 2005 (Groep en Maatskappy) CASH FLOW STATEMENT for the year ended 30 June 2005 (Group and Company) R 000 R 000 Kontantvloei uit bedryfsaktiwiteite Cash flow from operating activities Administratiewe uitgawes (713) (696) Administrative expenses Toename in krediteure 9 92 Increase in payables Kontant deur bedrywighede benut (704) (604) Cash utilised in operations Dividende ontvang Dividends received Dividende betaal (61 927) (46 940) Dividends paid Rente ontvang Interest received Belasting betaal (9) (9) Taxation paid Netto toename/(afname) in kontant en Net increase/(decrease) in cash and kontantekwivalente 254 (7) cash equivalents Kontant en kontantekwivalente aan Cash and cash equivalents at begin van die jaar 9 16 beginning of the year Kontant en kontantekwivalente aan Cash and cash equivalents at end einde van die jaar of the year 13

16 AANTEKENINGE BY DIE FINANSIËLE STATE vir die jaar geëindig 30 Junie 2005 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June REKENINGKUNDIGE BELEID Die finansiële jaarstate word opgestel volgens die historiese kostegrondslag, ooreenkomstig Suid-Afrikaanse Standpunte van Algemeen Aanvaarde Rekeningkundige Praktyk, die vereistes van die Suid-Afrikaanse Maatskappywet, 1973, soos aangepas, en die Noteringsvereistes van die JSE Beperk. Hierdie finansiële state inkorporeer die volgende rekeningkundige beleid wat, behalwe soos aangedui in aantekening 2, ooreenstem met dié van die vorige finansiële jaar. 1. ACCOUNTING POLICIES The annual financial statements are prepared on the historical cost basis, in accordance with South African Statements of Generally Accepted Accounting Practice, the requirements of the South African Companies Act, 1973, as amended, and the Listings Requirements of the JSE Limited. These financial statements incorporate the following accounting policies which are, except as stated in note 2, consistent with those of the previous financial year. KWV Beleggings sal Internasionale Finansiële Rapportering Standaarde (IFRS) vanaf 1 Julie 2005 implementeer en in die finansiële state vir die jaar geëindig 30 Junie 2006 sal die vergelykende syfers vir 2005 sodanig herstateer word. In die bekendmaking van die tussentydse resultate vir die ses maande geëindig 31 Desember 2005, wat aangebied sal word volgens IFRS, sal die effek van hierdie nuwe rekeningkundige standaarde volledig openbaar word. With effect from 1 July 2005 KWV Investments will implement International Financial Reporting Standards (IFRS) and in the financial statements for the year ending 30 June 2006 the comparative figures for 2005 will be restated accordingly. In the announcement of the interim results for the six months ending 31 December 2005, which will be presented in terms of IFRS, the effects of these new accounting standards will be fully disclosed. 1.1 Geassosieerdes Geassosieerdes is daardie beleggings waarin die maatskappy n langtermynbelang het, en waaroor hy die vermoë het om as aandeelhouer n beduidende invloed uit te oefen, maar waarvan hy nie in beheer is nie. Beleggings in geassosieerdes word verantwoord volgens die ekwiteitsmetode. Hiervolgens word die maatskappy se deel van geassosieerdes se na-verkrygingsresultate in die inkomstestaat erken en die belang in naverkrygingsbewegings in reserwes word in reserwes erken. Die kumulatiewe belang in na-verkrygingsbewegings word aangepas teen die koste van die belegging. 1.1 Associates Associates are those investments in which the company has a long-term interest, and over which it has the ability to exercise significant influence as shareholder, but which it does not control. Investments in associates are accounted for by the equity method of accounting. Under this method the company s share of the post-acquisition income is recognised in the income statement and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the cost of the investment. 1.2 Kontant en kontantekwivalente Kontant en kontantekwivalente bestaan uit saldo s by banke en word gedra teen kosprys. 1.2 Cash and cash equivalents Cash and cash equivalents consist of balances at banks and are carried at cost. 1.3 Inkomste-erkenning Rente ontvang word op n proporsionele tydsbasis erken en dividende word erken wanneer die reg om betaling te ontvang vasgestel is. 1.3 Revenue recognition Interest income is recognised on a time proportion basis and dividends are recognised when the right to receive payment is established. 1.4 Belasting Sekondêre belasting op maatskappye (SBM) word voorsien ten opsigte van dividendbetalings, netto van dividende ontvang, en word erken as n belastinguitgawe in die inkomstestaat. n Uitgesteldebelasting-bate word erken vir onbenutte SBMkrediete in die mate dat dit waarskynlik is dat dividende verklaar sal word waarteen die SBM-krediete benut kan word. 1.4 Taxation Secondary tax on companies (STC) are provided in respect of dividend payments, net of dividends received, and recognised as a tax expense in the income statement. A deferred tax asset is recognised for unutilised STC credits to the extent that it is probable that dividends will be declared against which the STC credits can be utilised. 1.5 Dividende Dividende word aangeteken in die periode waarin dit deur die direksie goedgekeur word. 1.5 Dividends Dividends are recorded in the period in which they are approved by the board. 14

17 AANTEKENINGE BY DIE FINANSIËLE STATE vir die jaar geëindig 30 Junie 2005 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June R 000 R VERANDERINGE IN REKENINGKUNDIGE BELEID Met ingang van 1 Julie 2004 het KWV Beleggings RE 140 (IFRS 3): Besigheidsamevoegings, RE 128 (IAS 36):Waardedaling van bates, RE 129 (IAS 38): Ontasbare bates en RE 501: Verantwoording van sekondêre belasting op maatskappye (SBM) aanvaar. Hierdie nuwe beleide het nie n wesenlike impak op die finansiële resultate van die groep gehad nie. Gevolglik is vergelykende syfers nie hersaamgestel nie. 2. CHANGES IN ACCOUNTING POLICIES With effect from 1 July 2004 the group adopted the following accounting statements: AC 140 (IFRS 3): Business combinations, AC 128 (IAS 36): Impairment of assets,ac 129 (IAS 38): Intangible assets and AC 501: Accounting for secondary tax on companies (STC). These new policies had no material impact on the financial results of the group. Therefore comparative figures have not been restated. 3. BELEGGING IN GEASSOSIEERDE 3. INVESTMENT IN ASSOCIATE Teen kosprys At cost Belegging in Remgro-KWV Beleggings Investment in Remgro-KWV Investments Beperk Limited Bestaande uit 50 gewone aandele Comprising 50 ordinary shares of van R1 elk en n onversekerde, R1 each and an unsecured, rentevrye lening met geen spesifieke interest-free loan with no terugbetalingsvoorwaardes nie specific terms of repayment Belang in na-verkrygingsreserwes Interest in post-acquisition reserves Verwatering van belang as gevolg van Dilution of interest in associate addisionele aandele uitgereik deur as a result of the issue of geassosieerde (1 697) additional shares Die belegging verteenwoordig effektief The investment ultimately represents n aandeelhouding van 29,9% (2004: 29,9%) a shareholding of 29,9% (2004: 29,9%) in Distell Groep Beperk. Gebaseer op die in Distell Group Limited. Based on the sluitingspryse soos op 30 Junie 2005 share price ruling on the JSE Limited at waarteen die maatskappy se aandele the close of business on 30 June 2005, the verhandel is op die JSE Beperk, beloop value of the investment amounted to die waarde van die belegging AANDELEKAPITAAL 4. SHARE CAPITAL Gemagtig Authorised gewone aandele van R1 elk ordinary shares of R1 each Uitgereik Issued gewone aandele van R1 elk ordinary shares of R1 each Ingevolge n aandeelhouersbesluit is die In terms of a shareholders resolution onuitgereikte gewone aandele tot the unissued ordinary shares die volgende algemene jaarvergadering onder is under the control of the directors until die beheer van die direkteure geplaas. the forthcoming annual general meeting. 15

18 AANTEKENINGE BY DIE FINANSIËLE STATE (VERVOLG) vir die jaar geëindig 30 Junie 2005 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the year ended 30 June R 000 R WINS VOOR BELASTING 5. PROFIT BEFORE TAXATION Wins voor belasting word getoon Profit before taxation is stated nadat die volgende in aanmerking after taking into account the geneem is: following: Ouditeursvergoeding Auditors remuneration Bestuurs- en administratiewe gelde Managerial and administrative fees 6. BELASTING 6. TAXATION Suid-Afrikaanse normale belasting 32 6 South African normal taxation Rekonsiliasie van belastingkoers % % Reconciliation of rate of taxation Standaardkoers vir maatskappye 29,00 30,00 Standard rate for companies Aangesuiwer vir: Adjusted for: Vrygestelde inkomste (12,69) (13,49) Exempt income Ekwiteitsinkomste (16,44) (16,70) Equity income Nie-aftrekbare uitgawes 0,15 0,20 Disallowed expenditure Netto vermindering (28,98) (29,99) Net reduction Effektiewe koers 0,02 0,01 Effective rate Die toepaslike koers is deur Suid-Afrikaanse Inkomstebelastingwetgewing vasgestel. The applicable rate is determined by South African Income Tax legislation. Sekondêre belasting op maatskappye (SBM) R 000 R 000 Secondary taxation on companies (STC) Geen voorsiening is gemaak vir SBM nie. No provision was made for STC. SBM-krediete beskikbaar vir aanwending teen STC credits available for utilisation against toekomstige dividende betaal future dividend payments Die geskiedenis toon dat KWV Beleggings se SBM-krediete oor tyd toeneem en dat dividende ontvang dividende betaal oorskry. Geen uitgesteldebelasting-bate word dus geskep nie. History shows that KWV Investment s STC credits increase over time as dividends received exceed dividends paid. No deferred tax asset is therefore created. 7. WESENSVERDIENSTE 7. HEADLINE EARNINGS Netto wins toeskryfbaar aan gewone Net profit attributable to aandeelhouers ordinary shareholders Aangepas vir: Adjusted for: Na-belaste belang in geassosieerde se After-tax share in associate s profit on wins met verkoop van vaste bates en disposal of fixed assets and goodwill amortisasie van klandisiewaarde (1) (587) amortisation Verwatering van belang in geassosieerde Dilution of interest in associate Wesensverdienste Headline earnings 16

19 AANTEKENINGE BY DIE FINANSIËLE STATE vir die jaar geëindig 30 Junie 2005 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June FINANSIËLE INSTRUMENTE Finansiële instrumente op die balansstaat getoon sluit beleggings, banksaldo s en krediteure in. 8.1 Kredietrisiko Kredietrisiko is beperk tot kontant wat by finansiële instellings gehou word. Hierdie risiko word beperk deur die hoë kredietwaardigheid van die finansiële instellings. 8.2 Rentekoersrisiko Die maatskappy is blootgestel aan korttermyn-rentekoersrisiko ten opsigte van die opbrengs op kontant gehou. 8.3 Redelike waardes Die drawaarde van finansiële instrumente, met die uitsluiting van beleggings, stem ooreen met hul redelike waardes. Die redelike waarde van beleggings word in aantekening 3 geopenbaar. 8. FINANCIAL INSTRUMENTS Financial instruments on the balance sheet include investments, bank balances and payables. 8.1 Credit risk Credit risk relates to bank balances held with financial institutions. This risk is limited by the high credit rating of the financial institutions. 8.2 Interest rate risk The company is exposed to short-term interest rate risk in respect of the return on its cash. 8.3 Fair value The carrying value of financial instruments, excluding investments, approximates their fair value. The fair value of investments is disclosed in note R 000 R VERWANTEPARTY-TRANSAKSIES 9. RELATED PARTY TRANSACTIONS Die volgende transaksies is aangegaan met n medefiliaal, KWV Suid-Afrika (Eiendoms) Beperk. Administratiewe fooie betaal Administrative fees paid Rente ontvang 100 Interest received The following transactions were entered into with a fellow subsidiary, KWV South Africa (Proprietary) Limited. Rente is hoofsaaklik verdien op die dividende ontvang vanaf Distell wat vir n week, teen geldmarkkoerse, belê is totdat KWV Beleggings se dividende uitbetaal is. Interest was mainly earned on the dividends received from Distell which were invested for a week, at money market rates, until KWV Investments dividends were paid. 17

20 BYLAAG A GEASSOSIEERDE MAATSKAPPY ANNEXURE A ASSOCIATED COMPANY Distell R 000 R 000 OPSOMMING VAN BATES EN VERPLIGTINGE SUMMARY OF ASSETS AND LIABILITIES op 30 Junie 2005 at 30 June 2005 Eiendom, aanleg en toerusting Property, plant and equipment Biologiese bates Biological assets Beleggings en lenings Investments and loans Beleggings in geassosieerdes Investments in associates Klandisiewaarde Goodwill Uitgestelde belasting Deferred taxation Bedryfsbates Current assets Totale bates Total assets Gewone aandeelhouersbelang Ordinary shareholders funds Minderheidsbelang Minority interest Langtermynverpligtinge Long-term liabilities Uitgestelde belasting Deferred taxation Na-aftrede mediese verpligting Post-retirement medical liability Bedryfslaste Current liabilities Totale ekwiteit en verpligtinge Total equity and liabilities RESULTATE VAN BEDRYWIGHEDE RESULTS OF OPERATIONS vir die jaar geëindig 30 Junie 2005 for the year ended 30 June 2005 Inkomste Income Wins voor belasting Profit before taxation Belasting ( ) ( ) Taxation Minderheidsbelang (394) (390) Minority interest Netto wins toeskryfbaar aan gewone aandeelhouers Net profit attributable to ordinary shareholders Sent/Cents Sent/Cents Verdienste per aandeel 245,8 184,3 Earnings per share Wesensverdienste per aandeel 245,8 183,3 Headline earnings per share Dividend per aandeel 123,0 97,00 Dividend per share tussentyds 56,0 46,0 interim finaal (verklaar na jaareinde) 67,0 51,0 final (declared after year-end) 18