Annual report for the year ended 30 September 2007
Helping care for the health of humankind

Financial Statements

Directors’ approval
Certificate by the company secretary
Report of the independent auditors
Directors’ report
Directors’ remuneration report
Balance sheets
Income statements
Cash flow statements
Statement of changes in shareholders’ equity
Notes to the annual financial statements
Company balance sheet
Company income statement
Company cash flow statement
Notes to the company annual financial statements
Annexure A
Annexure B
Annexure C

Group cash flow statement

for the year ended 30 September 2007

		2007	2006
	Notes	Rm	Rm
Cash flows from operating activities
Cash received from customers		18 869	11 433
Cash paid to suppliers and employees		(14 895)	(9 304)
Cash generated from operations	A	3 974	2 129
Interest paid		(2 355)	(838)
Continuing operations		(2 348)
Discontinued operation		(7)
Taxation paid		(286)	(234)
Continuing operations	B	(269)
Discontinued operation		(17)
Preference dividends paid		(30)	(12)
Reductions of capital paid		(347)	(391)
Net cash from operating activities		956	654
Continuing operations		882
Discontinued operation		74

Cash flows from investing activities
Purchase of property, plant and equipment		(1 389)	(1 014)
Proceeds on disposal of property, plant and equipment		40	50
Settlement of post-retirement benefit obligation		(151)
Additions to intangible assets		(103)	(111)
(Increase)/decrease in investments and loans		(52)	171
Disposal of businesses	C	1
Proceeds from disposal of investments			9
Interest received		158	151
Dividends received		1	1
Acquisition of businesses	D	(169)	(16 393)
Share buybacks			(682)
Net cash from investing activities		(1 664)	(17 818)
Continuing operations		(1 632)
Discontinued operation		(32)

Cash flows from financing activities
Proceeds from issue of ordinary shares		669	1 678
Proceeds from issue of preference shares			644
Repurchase of shares			(134)
Long-term liabilities raised		262	25 021
Short-term liabilities repaid		(317)	(7 936)
Net cash from financing activities		614	19 273
Continuing operations		617
Discontinued operation		(3)

Translation effects on cash and cash equivalents of foreign entities		39	(1 393)
Net (decrease)/increase in cash and cash equivalents		(55)	716
Cash and cash equivalents at beginning of year		1 009	293
Cash in disposal group held for sale		(54)
Cash and cash equivalents at end of year	E	900	1 009

Notes to the group cash flow statement

		2007	2006
		Rm	Rm
A.	Cash generated from operations
	Operating profit	3 117	1 681
	Continuing operations	2 990	1 578
	Discontinued operation	127	103
	Adjustments for:
	Depreciation	1 017	528
	Continuing operations	1 007	517
	Discontinued operation	10	11
	Amortisation of intangible assets	37	25
	Profit on disposal of property, plant and equipment	(1)	(7)
	Profit on disposal of subsidiaries	(1)	(111)
	Profit on disposal of investments		(9)
	Fair value adjustments on investments		(16)
	(Reversal of impairment)/impairment of property, plant and equipment	(11)	15
	Impairment of investments and loans	25	21
	Impairment of goodwill	24	2
	Impairment of intangible assets	40
	Share-based payment expense	27	78
	Net foreign exchange (profits)/losses	(31)	15
	Increase in post-retirement benefit obligation	10	58
	Decrease in deferred lease liability	(1)	(95)
	Other non-cash flow items		(6)
	Cash generated from operations before working capital changes	4 252	2 179
	Increase in accounts receivable	(212)	(186)
	Increase in inventories	(27)	(25)
	(Decrease)/increase in accounts payable	(39)	163
	Movement in short-term financial liabilities		(2)
		3 974	2 129
B.	Taxation paid
	Amounts payable at beginning of year	138	9
	Charge per the income statement (excluding deferred taxation)	552	346*
	Acquisition of subsidiaries		17
	Translation of foreign entities	(11)
	Amounts payable at end of year	(410)	(138)
		269	234

*Including discontinued operation

		2007	2006
		Rm	Rm
C.	Disposal of businesses
	Accounts payable		1

	Intangible assets		(1)
	Minority interest	1
	Total consideration	1
	Comprising:
	Cancare (Proprietary) Limited	1
	Prometheus Healthcare (Proprietary) Limited
		1
D.	Acquisition of businesses
	Property, plant and equipment	4	19 143
	Intangible assets		111
	Investments		(535)
	Treasury shares		4 221
	Inventories		217
	Accounts receivable		937
	Cash and cash equivalents		691
	Long and short-term debt		(8 445)
	Financial liability – Derivative financial instruments		(1 113)
	Post-retirement benefit obligations		(167)
	Deferred taxation		(4 906)
	Accounts payable		(924)
	Provisions		(1 106)
	Taxation payable		(17)
	Fair value of assets acquired	4	8 107
	Minority interest	152	(3 480)
		156	4 627
	Goodwill	13	13 277
	Negative goodwill		(820)
	Purchase consideration	169	17 084
	Cash and cash equivalents in acquiree		(691)
	Cash outflow on acquisition	169	16 393
	Comprising:
	General Healthcare Group Limited	153	14 265
	Health Management Technologies (Proprietary) Limited	8
	Rosewood Clinic	2
	South Manchester Imaging Plc		49
	Prime Cure Holdings (Proprietary) Limited		125
	Netpartner Investments Limited	6	1 952
	SAA Netcare Travel Clinics (Proprietary) Limited		2
	Total consideration	169	16 393
E.	Cash and cash equivalents and bank overdrafts
	Cash on hand and balances with banks	1 415	1 463
	Short-term money market borrowings and bank overdrafts	(461)	(454)

	Less:
	Cash in disposal group held for sale	(54)
		900	1 009