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Annexure C – associates and joint ventures

 
 
Edu-Loan (Proprietary)
Limited
Safika Holdings
(Proprietary) Limited
South African Home Loans
(Proprietary) Limited
Ownership structure Associate Associate Associate
Nature of business Student loans Investment holding company Finance
Year end December February February
Date to which equity accounted 31 December 2010 31 December 2010 31 December 2010
 
2010
 2009  
2010
 2009  
2010
 2009
Effective holding (%)
29
Rm
 29
Rm
  
20
Rm
 20
Rm		  
44
Rm
 44
Rm
Carrying value
41
 35  
411
 374  
352
 277
Balance sheet1
                
Non-current assets
14
 11  
3 703
 4 291  
170
 130
Current assets
338
 315  
602
 286  
1 123
 977
Non-current liabilities
(36)
 (55)  
(1 083)
 (2 297)  
(122)
 (125)
Current liabilities
(190)
 (164)  
(421)
 (385)  
(211)
 (191)
Loans to/(from) entity2
154
 51        
(461)
 (378)
Attributable income before impairment
8
 11  
51
 91  
56
 37
 
 
Troika Dialog Group
Limited3
RCS Investment Holdings
(Proprietary) Limited
Dairy Belle
(Proprietary) Limited
Ownership structure Associate Associate Associate
Nature of business Investment banking Finance Dairy products
Year end September March September
Date to which equity accounted 30 September 2010 31 December 2010 31 December 2010
 
2010
 2009  
2010
 2009  
2010
 2009
Effective holding (%)
36
Rm
 36
Rm		  
45
Rm
 45
Rm		  
50
Rm
 50
Rm
Carrying value
2 467
 2 369  
623
 570  
30
 38
Balance sheet1
                
Non-current assets
2 803
 4 818  
96
 89  
492
 414
Current assets
35 002
 30 228  
2 732
 2 750  
587
 434
Non-current liabilities
(420)
 (258)  
(1 634)
 (1 633)  
(580)
 (435)
Current liabilities
(31 661)
 (28 795)  
(283)
 (312)  
(350)
 (277)
Loans to entity2
332
 184  
92
 630  
224
 346
Attributable income before impairment
370
    
82
 74  
(9)
 (12)
1 Represents the summarised financial information of the associates and joint ventures.
2 These loans are provided on an arm’s-length basis.
3 The group’s strategic investment in Troika Dialog Group Limited was completed in September 2009 and the investment was recognised as an interest in an associate company. Due to Troika’s September year end, the group recognises earnings from this associate a quarter in arrears, therefore no earnings were recognised for the fourth quarter of 2009, while R370 million of earnings were recognised for the year ended 31 December 2010. Included in the R370 million of earnings recognised was R113 million relating to the Standard Bank Group share of operating profit and R257 million relating to the post acquisition recovery of underlying asset values. Refer to commentary on Corporate & Investment Banking relating to the group’s investment in Troika Dialog. 
 
 
Credit Suisse Standard
Securities (Proprietary)
Limited1
Integrated
Processing Solutions
(Proprietary) Limited
The Cullinan Hotel
(Proprietary) Limited
Ownership structure Joint venture Joint venture Joint venture
Nature of business Stockbroker Financial Services Leisure
Year end February December March
Date to which equity accounted 31 December 2010 31 December 2010 31 December 2010
 
2010
 2009  
2010
 2009  
2010
 2009
Effective holding (%)
50
Rm
 50
Rm		  
50
Rm
 50
Rm		  
50
Rm
 50
Rm
Carrying value
129
 135  
41
 34  
387
 353
Balance sheet2
                
Non-current assets
35
 29  
29
 20  
741
 694
Current assets
567
 726  
86
 81  
90
 68
Non-current liabilities                
Current liabilities
(391)
 (532)  
(39)
 (32)  
(58)
 (56)
Loans to entity3
 
 
64
 64
Attributable income before impairment
(6)
 25  
6
 10  
44
 48
 
 
Other associates
  
Other joint ventures
Total associates
and joint ventures
Ownership structure Associates   Joint ventures
Nature of business Various   Various
Year end Various   Various
Date to which equity accounted 31 December 2010   31 December 2010
 
2010
 2009  
2010
 2009  
2010
 2009
Effective holding (%)
Various
Rm
 Various
Rm		  
Various
Rm
 Various
Rm		  
Various
Rm
 Various
Rm
Carrying value
191
 291  
47
 74  
4 719
 4 550
Balance sheet2
                
Non-current assets
4 962
 1 339  
16
 36  
13 061
 11 871
Current assets
2 702
 4 067  
61
 142  
43 890
 40 074
Non-current liabilities
(2 729)
 (1 566)  
(6)
    
(6 610)
 (6 369)
Current liabilities
(3 179)
 (3 282)  
(42)
 (73)  
(36 825)
 (34 099)
Loans (from)/to entity3
(144)
 394  
44
 31  
305
 1 322
Attributable income before impairment
36
 93  
15
 7  
653
 384
1 The group purchased the remaining 50% shareholding held by Credit Suisse in Credit Suisse Standard Securities (Proprietary) Limited in January 2011. The name of the entity has been subsequently changed to SBG Securities (Proprietary) Limited. Refer to Annexure B and below.
2 Represents the summarised financial information of the associates and joint ventures.
3 These loans are provided on an arm’s-length basis.
 

Acquisition of SBG Securities
 
Fair value
Rm
Net asset
value
Rm
2011
Net assets
215
215
Less: Fair value of deemed disposal of associate
(108)
Cash outflow on acquisition
107
  
 

Private equity/venture capital associates and joint ventures1
 
2010
Rm
 2009
Rm
Cost
382
 409
Carrying value
641
 658
Statement of financial position2
    
Non-current assets
5 204
 5 600
Current assets
1 633
 1 623
Non-current liabilities
(2 385)
 (3 754)
Current liabilities
(1 104)
 (1 082)
Loans (from)/to entity3
(37)
 432
Income statement
    
Attributable income before impairment
43
 128
Impairments included in non-interest revenue
(43)
Fair value
651
 818
All investments in associates and joint ventures, other than those recognised at fair value through profit or loss in accordance with IAS 39, made by a private equity organisation are ring-fenced for headline earnings purposes. On the disposal of these associates and joint ventures held by the private equity division of the group, profit or loss on the disposal will be included in headline earnings in terms of Circular 3/2009 Headline Earnings, issued by the South African Institute of Chartered Accountants at the request of the JSE Limited. 
1 Included in total associates and joint ventures in Annexure C.
2 Represents the summarised financial information of the associates and joint ventures.
3 These loans are provided on an arm’s-length basis.