Extracts of summarised financial information

Group profit or loss (extract)

for the year ended 30 June 2022	2022 Rm	2021 Rm	% change
Revenue	91 978	87 205	5
Operating profit before capital items and net foreign exchange gains/(losses)¹	5 029	3 838	31
Impairment of property, plant and equipment, net of profit/(losses) on sale	(91)	(7)	>100
Other costs	(104)	(45)	>100
Net foreign exchange gains/(losses)	135	(383)	>100
Net finance costs	(496)	(543)	(9)
Profit before tax	4 473	2 860	56
Income tax expense	(1 135)	(718)	58
Profit for the year	3 338	2 142	56
Attributable to non-controlling interests	(48)	(44)	9
Attributable to shareholders of Motus Holdings	3 290	2 098	57
Operating profit (%)	5,5	4,4
Effective taxation rate (%)	25,6	25,5

¹ The prior period has been adjusted for the re-presentation to include share of results from associates and joint ventures.

Revenue improved by 5% mainly due to improved performance in the Import and Distribution segment, the South African retail business, Car Rental, and the Aftermarket Parts and Mobility Solutions business segments. The increase was offset by a decreased revenue contribution from the international retail businesses. The increase in Group revenue was supported by an increase in the sale of new vehicles, parts (including acquisitions) and rendering of services, offset by reduced sales of pre-owned vehicles.

Operating profit before capital items and net foreign exchange gains/(losses) improved by 31% with all business segments improving operating profit contribution.

The increased operating profit is mainly as a result of the recovery of the automotive and car rental sectors which positively impacted gross income, coupled with increased margins achieved due to inventory shortages. The operations also benefitted from increased volumes supported by an improvement in after-sales, acquisitions in the Retail and Rental and Aftermarket Parts segments and the return to profitability of Bank JVs in the Mobility Solutions segment.

Net foreign exchange gains of R135 million were recognised. Foreign currency exchange gains or losses comprise of translation differences arising from foreign currency denominated balances such as trade receivables, trade payables, CFC accounts and interest-bearing debt, changes in the fair value of derivative instruments and ineffectiveness from hedging relationships. The weakening of the Rand against the major currencies during the year, resulted in a significant unrealised foreign currency gain being accounted for.

Net finance costs decreased by 9% mainly due to lower average working capital for the year and improved profitability which resulted in lower debt requirements. The decrease was further supported by reduced IFRS 16 finance costs. The above reductions were partially offset by decreased fair value adjustment gains recognised as a result of the unwinding of the interest rate swap.

Effective tax rate is 25,6%. The current tax rate was lower than 28% mainly due to deferred tax assets being recognised or utilised, and additional dividend income. This was partially offset by the change in the South African tax rate on deferred tax asset balances and additional impairments raised on assets.

Summarised reconciliation of earnings to headline earnings

for the year ended 30 June 2022	2022 Rm	2021 Rm	% change
Earnings	3 290	2 098	57
Impairment of goodwill and other assets	305	106	>100
Profit on sale of businesses and other	(43)	(9)	>100
Profit on disposal of assets	(47)	(63)	(25)
Adjustments included in results of associates and joint ventures	(1)	–	100
Taxation and non-controlling interests	–	13	>100
Headline earnings	3 504	2 145	63
Weighted average number of ordinary shares (million)	173	182	(5)
Earnings and headline earnings per share
Basic EPS (cents)	1 902	1 153	65
Basic headline EPS (cents)	2 025	1 179	72

The Group repurchased 12 939 021 shares during the year at an average price of R104,41 per share, which resulted in lower weighted average number of shares, of which 1 307 000 shares were acquired as treasury shares for the share incentive schemes.

Financial position

as at 30 June 2022	2022 Rm	2021 Rm	% change
Goodwill and intangible assets	1 959	1 546	27
Investments in associates and joint ventures	269	289	(7)
Property, plant and equipment	7 331	7 024	4
Right-of-use assets	2 046	2 132	(4)
Investments and other financial assets	320	414	(23)
Vehicles for hire	3 677	2 426	52
Net working capital¹	7 166	5 165	39
Tax assets	1 392	1 474	(6)
Assets classified as held-for-sale	657	649	1
Contract liabilities (service and maintenance plans)	(3 021)	(2 828)	7
Lease liabilities	(2 347)	(2 449)	(4)
Core interest-bearing debt	(4 169)	(2 528)	65
Floorplans from financial institutions	(867)	(873)	(1)
Other liabilities	(368)	(275)	34
Total equity	14 045	12 166	15
Total assets	42 940	38 457	12
Total liabilities	(28 895)	(26 291)	10

¹	Net working capital includes floorplans from suppliers amounting to R4 988 million (2021: R4 479 million).

Factors impacting the financial position at June 2022 compared to June 2021

Goodwill and intangible assets

Increased mainly due to acquisitions and currency adjustments, offset by the impairment of goodwill which is in line with the Group policy related to insignificant goodwill and annual impairment assessment. The Group examines each individual business which carries goodwill, and routinely impairs all individual amounts lower than R15 million.

Intangible assets increased mainly due to acquisitions which resulted in the recognition of Customer Lists and Trademarks for FAI (UK), partly offset by amortisation and currency adjustments.

Property, plant and equipment

Increased mainly due to additions, acquisitions and currency adjustments, offset by depreciation, impairments and disposal of properties.

Right-of-use assets

Decreased mainly due to depreciation and derecognition of leases, offset by new leases entered into or existing leases extended, and acquisitions.

Vehicles for hire

Increased mainly due to increased demand from car rental companies. Import and Distribution vehicles for hire increased mainly due to increased vehicles delivered to car rental companies on buy-back. Retail and Rental increased due to up-fleets as a result of increased leisure, corporate and government travel.

Net working capital increased by R2,0 billion (39%)

Inventory increased as a result of improved supply of certain vehicle models and derivatives, change in mix of vehicles, price increases and acquisitions. The 30 June 2021 position was low due to inventory supply constraints;
The net current derivative moved from a liability at June 2021 to an asset at June 2022 due to the weakening of the ZAR against major currencies;
Trade receivables increased mainly due to improved sales across the segments and acquisitions;
Floorplan payables increased due to increased inventory being placed on floorplans (being a cheaper source of funding); and
Creditors increased mainly due to increased trading activity and acquisitions.

Tax assets

Decreased mainly due to reduced deferred tax assets as a result of the 1% rate change for the South African entities and the utilisation of assessed losses raised in the prior year due to improved profitability, offset by deferred tax assets raised in the current year.

Assets classified as held-for-sale

Assets held-for-sale relate to the non-strategic properties identified for sale, mainly retail properties in South Africa, Australia and the UK.

Contract liabilities

Contract liabilities consists mainly of service and maintenance plans. The increase was due to higher prepaid contract sales and partly from conservative revenue recognition until a post COVID-19 pattern of travelling is established.

Lease liabilities

Decreased mainly due to lease payments and derecognition of leases. The decrease was offset by new leases entered into or existing leases extended, finance costs and acquisitions.

Core debt (excluding floorplan and IFRS 16 debt)

Increased primarily due to the higher working capital and vehicles for hire levels, dividend payments (final in September 2021 and interim in March 2022), share repurchases, business and associate acquisitions, capital expenditure and tax payments. This was offset by profits generated for the 12-month period.

Floorplans from financial institutions

Floorplan debt decreased mainly due to reduced floorplans in the UK and Australia which decreased mainly due to inventory shortages as a result of supply constraints. Offset by up-fleets with car rental in Mobility Solutions, partially funded through bank floorplans, and increased floorplan debt with financial institutions with South African dealers.

Equity

Equity was enhanced mainly by retained income of R3 338 million, favourable hedging reserve adjustments amounting to R666 million (foreign currency movements against the ZAR impacted forward cover since the 30 June 2021 position) and favourable currency translation reserve adjustments as a result of the weakening of the ZAR amounting to R128 million, offset mainly by the repurchase and cancellation of shares amounting to R1 217 million, the purchase of shares for the share scheme hedges resulting in treasury shares amounting to R134 million, and dividend payments to shareholders in September 2021 amounting to R468 million and March 2022 amounting to R460 million.

Cash flow movements

for the year ended 30 June 2022	2022 Rm	2021 Rm
Cash generated by operations before movements in net working capital	6 909	5 335
Movements in net working capital	(620)	1 778
Cash generated by operations before interest, taxation paid and capital expenditure on vehicles for hire	6 289	7 113
Finance costs paid	(574)	(716)
Finance income received	13	59
Dividend income received	297	142
Taxation paid	(1 190)	(694)
Free cash flow generated from operations	4 835	5 904
Net replacement capital (expenditure)/proceeds - vehicles for hire	(2 102)	151
Cash generated by operations	2 733	6 055
Net cash outflow on the acquisition and disposal of businesses	(633)	(199)
Net capital expenditure (excluding vehicles for hire)	(764)	(325)
Net movement in investments and investments in associates and joint ventures	(27)	(10)
Advances of other financial assets	(39)	(34)
Cash received on finance lease receivables	–	44
Cash generated from operating and investing activities	1 270	5 531
Repurchase of own shares	(1 351)	(485)
Acquisition of non-controlling interests	(40)	(288)
Dividends paid	(964)	(312)
Other	(15)	4
(Increase)/decrease in debt	(1 100)	4 450

The free cash flow was primarily generated by strong operating profits, further supported by decreased finance costs and increased income from profit sharing arrangements. This was offset by increased taxation paid as a result of increased profitability and increased investment in working capital.

Net working capital movements resulted in an outflow of R620 million after adjusting for non-cash movements relating primarily to the acquisition of businesses, net derivative assets and currency adjustments. The year-on-year increased cash investment in working capital amounts to R2,4 billion with the main contributor being the increased investment attached to inventory which was low at June 2021 due to supply constraints.

Cash outflow on vehicles for hire of R2,1 billion was due to increased car rental activity.

Cash outflow on capital expenditure, net replacement and expansion, amounted to R764 million.

Net cash outflow on acquisition of businesses amounted to R633 million and relates mainly to the acquisition of FAI in the UK in the Aftermarket Parts business segment and passenger dealerships in South Africa.

A final dividend of 255 cents per ordinary share was declared and paid on 27 September 2021, amounting to R468 million. An interim dividend of 275 cents per ordinary share was declared and paid on 14 March 2022, amounting to R460 million.

Advances of debt amounted to R1,1 billion in the statement of cash flows, with debt increasing by R1,5 billion in the statement of financial position, primarily due to non‑cash movements related to new leases entered into, acquisition of businesses and currency adjustments on debt, reduced by leases derecognised and terminated.

Summarised segment financial position

	Group		Import and Distribution		Retail and Rental
as at 30 June 2022	2022 Rm	2021 Rm	2022 Rm	2021 Rm	2022 Rm	2021 Rm
Financial position
Assets
Goodwill and intangible assets	1 959	1 546	3	–	1 074	1 074
Carrying value of associates and joint ventures (excluding loans to associates)	194	200	37	25	29	52
Property, plant and equipment	7 201	6 872	607	462	6 088	5 951
Investment properties	130	152	130	138	–	14
Right-of-use assets	2 046	2 132	19	128	1 720	1 778
Investments and other financial instruments	320	374	4	4	–	–
Vehicles for hire	3 677	2 426	1 072	787	2 591	1 581
Net investment in lease receivables	–	40	–	40	–	–
Inventories	18 966	16 528	3 648	3 383	12 389	10 941
Trade and other receivables²	5 330	4 246	2 468	1 989	3 090	2 721
Operating assets	39 823	34 516	7 988	6 956	26 981	24 085
– South Africa	26 689	23 025	7 988	6 956	15 436	13 104
– International⁴	13 134	11 491	–	–	11 545	10 981
Liabilities
Contract liabilities	3 021	2 828	–	–	86	136
Lease liabilities	2 347	2 449	23	192	1 988	2 006
Provisions	983	1 000	268	219	291	199
Trade and other payables²	16 147	14 609	4 579	4 260	11 811	10 550
Other financial liabilities	62	56	–	–	47	28
Operating liabilities	22 560	20 942	4 870	4 671	14 223	12 919
– South Africa	13 970	13 343	4 870	4 671	6 156	5 546
– International⁴	8 590	7 599	–	–	8 067	7 373
Net working capital	7 166	5 165	1 269	893	3 377	2 913
– South Africa	5 831	4 114	1 269	893	2 609	2 043
– International⁴	1 335	1 051	–	–	768	870
Net debt	5 036	3 401	903	1 075	3 181	3 953
– South Africa	4 706	2 516	903	1 075	2 488	2 871
– International⁴	330	885	–	–	693	1 082
Net capital expenditure	(2 866)	(174)	(651)	580	(2 086)	(638)
– South Africa	(2 719)	(129)	(651)	580	(1 942)	(535)
– International⁴	(147)	(45)	–	–	(144)	(103)
Non-current assets (including equity investment in associates, excluding investment, deferred tax and other financial instruments)	11 560	10 902	796	753	8 911	8 842
– South Africa	6 825	6 659	796	753	4 759	4 710
– International⁴	4 735	4 243	–	–	4 152	4 132
– United Kingdom	3 180	2 675	–	–	2 705	2 675
– Other regions (Australia and South East Asia)³	1 555	1 568	–	–	1 447	1 457

	Mobility Solutions¹		Aftermarket Parts		Head Office and Eliminations
as at 30 June 2022	2022 Rm	2021 Rm	2022 Rm	2021 Rm	2022 Rm	2021 Rm
Financial position
Assets
Goodwill and intangible assets	19	21	859	470	4	8
Carrying value of associates and joint ventures (excluding loans to associates)	4	12	120	107	4	4
Property, plant and equipment	136	125	322	284	48	50
Investment properties	–	–	–	–	–	–
Right-of-use assets	1	1	306	225	–	–
Investments and other financial instruments	315	366	5	5	(4)	(1)
Vehicles for hire	1 143	883	–	–	(1 129)	(825)
Net investment in lease receivables	–	–	–	–	–	–
Inventories	349	341	2 630	1 899	(50)	(36)
Trade and other receivables²	441	255	940	725	(1 609)	(1 444)
Operating assets	2 408	2 004	5 182	3 715	(2 736)	(2 244)
– South Africa	2 408	2 004	3 598	3 205	(2 741)	(2 244)
– International⁴	–	–	1 584	510	5	–
Liabilities
Contract liabilities	2 935	2 692	–	–	–	–
Lease liabilities	1	1	335	250	–	–
Provisions	236	285	4	3	184	294
Trade and other payables²	706	597	1 524	1 190	(2 473)	(1 988)
Other financial liabilities	–	–	11	21	4	7
Operating liabilities	3 878	3 575	1 874	1 464	(2 285)	(1 687)
– South Africa	3 878	3 575	1 355	1 238	(2 289)	(1 687)
– International⁴	–	–	519	226	4	–
Net working capital	(152)	(286)	2 042	1 431	630	214
– South Africa	(152)	(286)	1 475	1 250	630	214
– International⁴	–	–	567	181	–	–
Net debt	(3 958)	(3 597)	1 587	755	3 323	1 215
– South Africa	(4 022)	(3 597)	1 203	714	4 134	1 453
– International⁴	64	–	384	41	(811)	(238)
Net capital expenditure	(434)	635	(101)	(73)	406	(678)
– South Africa	(434)	635	(98)	(83)	406	(726)
– International⁴	–	–	(3)	10	–	48
Non-current assets (including equity investment in associates, excluding investment, deferred tax and other financial instruments)	160	159	1 607	1 086	86	62
– South Africa	160	159	1 024	975	86	62
– International⁴	–	–	583	111	–	–
– United Kingdom	–	–	475	–	–	–
– Other regions (Australia and South East Asia)³	–	–	108	111	–	–

¹	Formerly known as Financial Services.
²	Includes amounts pertaining to derivative financial instruments.
³	Retail and Rental operates in Australia and Aftermarket Parts operates in South East Asia.
⁴	International operations now includes the holding company for the foreign subsidiaries. The comparative amounts have been amended to align with that of the current year.

Summarised segment profit or loss

	Group		Import and Distribution		Retail and Rental
for the year ended 30 June 2022	2022 Rm	2021 Rm	2022 Rm	2021 Rm	2022 Rm	2021 Rm
Profit or loss
Total revenue	91 978	87 205	23 883	19 683	74 209	70 962
– South Africa	61 493	56 091	23 883	19 683	44 583	40 124
– International⁴	31 381	31 680	–	–	29 626	30 838
– United Kingdom	23 188	23 854	–	–	22 693	23 854
– Other regions (Australia and South East Asia)¹	8 193	7 826	–	–	6 933	6 984
– Eliminations between geographic regions	(896)	(566)	–	–	–	–
Earnings before interest, taxation, depreciation and amortisation	6 785	5 302	1 798	1 133	3 455	2 864
– South Africa	5 410	4 138	1 798	1 133	2 294	1 748
– International⁴	1 398	1 175	–	–	1 161	1 161
– Eliminations between geographic regions³	(23)	(11)	–	–	–	–
Depreciation, amortisation and impairments net of recoupments	(1 886)	(1 526)	(296)	(226)	(1 344)	(1 118)
– South Africa	(1 467)	(1 127)	(296)	(226)	(969)	(729)
– International⁴	(419)	(399)	–	–	(375)	(389)
Operating profit before capital items and net foreign exchange gains/(losses)²	5 029	3 838	1 508	922	2 206	1 761
– South Africa	4 074	3 097	1 508	922	1 420	1 058
– International⁴	978	752	–	–	786	703
– Eliminations between geographic regions³	(23)	(11)	–	–	–	–
Finance costs	(561)	(666)	(195)	(139)	(525)	(681)
– South Africa	(430)	(486)	(195)	(139)	(386)	(487)
– International⁴	(131)	(180)	–	–	(139)	(194)
Finance income	65	123	76	50	21	18
– South Africa	64	123	76	50	14	18
– International⁴	1	–	–	–	7	–
Other capital costs	(104)	(33)	–	–	(65)	(26)
– South Africa	(41)	(22)	–	–	(65)	(15)
– International⁴	(63)	(11)	–	–	–	(11)
Profit/(loss) before tax	4 473	2 860	1 507	458	1 540	1 065
– South Africa	3 681	2 295	1 507	458	885	542
– International⁴	815	576	–	–	655	523
– Eliminations between geographic regions³	(23)	(11)	–	–	–	–
Income tax expense	(1 135)	(718)	(300)	(122)	(452)	(296)

	Mobility Solutions		Aftermarket Parts		Head Office and Eliminations
for the year ended 30 June 2022	2022 Rm	2021 Rm	2022 Rm	2021 Rm	2022 Rm	2021 Rm
Profit or loss
Total revenue	2 107	2 019	8 163	7 295	(16 384)	(12 754)
– South Africa	2 107	2 019	7 304	7 019	(16 384)	(12 754)
– International⁴	–	–	1 755	842	–	–
– United Kingdom	–	–	495	–	–	–
– Other regions (Australia and South East Asia)¹	–	–	1 260	842	–	–
– Eliminations between geographic regions	–	–	(896)	(566)	–	–
Earnings before interest, taxation, depreciation and amortisation	1 165	1 022	802	685	(435)	(402)
– South Africa	1 165	1 022	580	637	(427)	(402)
– International⁴	–	–	245	59	(8)	–
– Eliminations between geographic regions³	–	–	(23)	(11)	–	–
Depreciation, amortisation and impairments net of recoupments	(164)	(118)	(176)	(139)	94	75
– South Africa	(164)	(118)	(132)	(122)	94	68
– International⁴	–	–	(44)	(17)	–	7
Operating profit before capital items and net foreign exchange gains/(losses)²	1 004	912	644	578	(333)	(335)
– South Africa	1 004	912	466	538	(324)	(333)
– International⁴	–	–	201	51	(9)	(2)
– Eliminations between geographic regions³	–	–	(23)	(11)	–	–
Finance costs	(60)	(67)	(108)	(95)	327	316
– South Africa	(60)	(67)	(97)	(92)	308	299
– International⁴	–	–	(11)	(3)	19	17
Finance income	–	–	3	1	(35)	54
– South Africa	–	–	2	1	(28)	54
– International⁴	–	–	1	–	(7)	–
Other capital costs	(39)	10	–	(17)	–	–
– South Africa	24	10	–	(17)	–	–
– International⁴	(63)	–	–	–	–	–
Profit/(loss) before tax	904	855	543	449	(21)	33
– South Africa	967	855	371	414	(49)	26
– International⁴	(63)	–	195	46	28	7
– Eliminations between geographic regions³	–	–	(23)	(11)	–	–
Income tax expense	(218)	(198)	(134)	(94)	(31)	(8)

¹	Retail and Rental operates in Australia and Aftermarket Parts operates in South East Asia.
²	The prior period has been adjusted for the re-presentation to include share of results from associates and joint ventures.
³	The unrealised profit adjustment between regions has been disclosed separately to enhance disclosure.
⁴	International operations now includes the holding company for the foreign subsidiaries. The comparative amounts have been amended to align with that of the current year.

Summarised segment profit or loss (continued)

	Group		Import and Distribution		Retail and Rental
for the year ended 30 June 2022	2022 Rm	2021 Rm	2022 Rm	2021 Rm	2022 Rm	2021 Rm
Additional information
Revenue by nature
Sale of goods	82 339	78 435	23 809	19 559	66 158	63 832
New motor vehicle sales	43 746	40 167	20 576	15 282	36 378	34 045
Pre-owned vehicle sales	21 353	22 266	1 018	2 294	21 220	21 615
Parts and other goods sales	17 240	16 002	2 215	1 983	8 560	8 172
Rendering of services	9 639	8 770	74	124	8 051	7 130
Vehicle workshops, maintenance, service and warranty	5 617	5 555	49	61	4 316	4 249
Motor vehicle rental	2 123	1 339	–	–	1 928	1 128
Fees on vehicles, parts and services sold	1 899	1 876	25	63	1 807	1 753

Total revenue	91 978	87 205	23 883	19 683	74 209	70 962
Inter-group revenue	–	–	(15 482)	(11 964)	(452)	(440)
Total external revenue	91 978	87 205	8 401	7 719	73 757	70 522
Depreciation, amortisation and impairments net of recoupments	(1 886)	(1 526)	(296)	(226)	(1 344)	(1 118)
Depreciation and amortisation	(1 795)	(1 513)	(302)	(222)	(1 252)	(1 108)
(Losses)/profits on disposals and impairments	(91)	(1)	6	(4)	(92)	(10)
Amortisation of intangible asset arising on business combinations	–	(12)	–	–	–	–

(Costs)/income included in profit before tax
Total employee costs	(7 307)	(6 606)	(452)	(410)	(5 155)	(4 719)
Operating lease charges	(237)	(95)	(11)	(15)	(200)	(74)
Net foreign exchange gains/(losses)	135	(383)	113	(370)	(3)	3
Share of results from associates and joint ventures	39	43	12	10	3	4
Operating margin (%)	5,5	4,4	6,3	4,7	3,0	2,5

	Mobility Solutions		Aftermarket Parts		Head Office and Eliminations
for the year ended 30 June 2022	2022 Rm	2021 Rm	2022 Rm	2021 Rm	2022 Rm	2021 Rm
Additional information
Revenue by nature
Sale of goods	–	–	8 081	7 225	(15 709)	(12 181)
New motor vehicle sales	–	–	–	–	(13 208)	(9 160)
Pre-owned vehicle sales	–	–	–	–	(885)	(1 643)
Parts and other goods sales	–	–	8 081	7 225	(1 616)	(1 378)
Rendering of services	2 107	2 019	82	70	(675)	(573)
Vehicle workshops, maintenance, service and warranty	1 490	1 481	–	–	(238)	(236)
Motor vehicle rental	443	373	–	–	(248)	(162)
Fees on vehicles, parts and services sold	174	165	82	70	(189)	(175)

Total revenue	2 107	2 019	8 163	7 295	(16 384)	(12 754)
Inter-group revenue	(424)	(326)	(33)	(24)	16 391	12 754
Total external revenue	1 683	1 693	8 130	7 271	7	–
Depreciation, amortisation and impairments net of recoupments	(164)	(118)	(176)	(139)	94	75
Depreciation and amortisation	(163)	(118)	(178)	(130)	100	65
(Losses)/profits on disposals and impairments	(1)	–	2	3	(6)	10
Amortisation of intangible asset arising on business combinations	–	–	–	(12)	–	–

(Costs)/income included in profit before tax
Total employee costs	(540)	(490)	(957)	(885)	(203)	(102)
Operating lease charges	(2)	(2)	(54)	(28)	30	24
Net foreign exchange gains/(losses)	–	–	2	(7)	23	(9)
Share of results from associates and joint ventures	2	8	21	19	1	2
Operating margin (%)			7,9	7,9

Integrated report