NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2008

1.      These condensed consolidated annual financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), including IAS 34 Interim Financial Reporting. The accounting policies used in the preparation of these consolidated condensed financial statements are consistent with those used in the annual financial statements for the year ended 31 December 2007.
             
      Reviewed   Audited  
  R Million   2008   2007  
2. Revenue          
  Goods sold and services rendered   278,0   178,9  
  Leasing income   1 621,5   1 352,1  
  Management fees   232,3   169,4  
  Finance income   42,2   43,5  
      2 174,0   1 743,9  
  Realised and unrealised exchange differences   630,1   (46,0)  
      2 804,1   1 697,9  
             
3. Discontinued operations
The discontinued operations relate to the mobile asset ownership and management businesses exited by the group in the previous financial year and the sale of the plant and equipment of the tank manufacturing business which was discontinued during 2003.
  (Loss)/Profit attributable to the discontinued operations were as follows:          
  Revenue   20,7   431,0  
  Other operating income   –   1,7  
  Expenses   (30,0)   (269,2)  
  Profit/(Loss) on disposal of discontinued operations and remeasurement of fair value less costs to sell   20,6   (10,4)  
  Profit from operations   11,3   153,1  
  Finance expenses   (8,4)   (102,8)  
  Finance income   1,7   3,9  
  Profit before tax   4,6   54,2  
  Income tax (expense)/credit   (86,0)   78,4  
  (Loss)/Profit for the year   (81,4)   132,6  
  Attributable to:          
  Equity holders of the company   (47,7)   94,1  
  Minority interest   (33,7)   38,5  
      (81,4)   132,6  
             
4. Net finance costs          
  Finance expenses   382,4   295,9  
  Interest expense incurred by:   211,1   260,3  
     Textainer   211,0   260,2  
     Other group companies   0,1   0,1  
     Losses on derivative financial instruments   171,3   35,6  
  Finance income – interest income earned from:   (49,5)   (48,2)  
     Cash and cash equivalents   (49,2)   (46,9)  
     Other   (0,3)   (1,3)  
             
      332,9   247,7  
             
5. Exceptional item          
  Net gain on dilution of interest in subsidiaries   –   197,3  
             
6. Headline earnings          
  Profit attributable to equity holders of the company   662,6   659,9  
  Net gain on dilution of interest in subsidiaries   –   (197,3)  
  Impairment of goodwill   134,5   –  
  Impairment of plant and equipment   4,4   4,0  
  Profit on sale of plant and equipment   (127,1)   (127,7)  
  (Profit)/Loss on disposal of discontinued operations and remeasurement of fair value less costs to sell   (20,6)   10,4  
  Total tax effects of adjustments   91,9   6,6  
  Total minority share of adjustments   (25,8)   42,6  
  Headline earnings   719,9   398,5  
  Weighted average number of shares in issue (million)   187,3   187,2  
  Headline earnings per share (cents)   384,4   212,9  
  Diluted headline earnings per share (cents)   383,7   212,4  
  Adjusted headline earnings          
  Headline earnings (as above)   719,9   398,5  
  Profit on sale of containers   68,2   64,4  
  TrenStar Inc depreciation adjustment   –   (40,3)  
  TrenStar Inc deferred tax adjustment   –   (42,5)  
  Net (gain)/loss on translation of net dollar receivables   (316,2)   20,6  
  Adjusted headline earnings   471,9   400,7  
  Undiluted adjusted headline earnings per share (cents)   251,9   214,0  
  Diluted adjusted headline earnings per share (cents)   251,5   213,6  
             
7. Segmental reporting          
  Revenue          
  Continuing operations          
  Containers – finance (including exchange differences)   672,3   (2,5)  
  Containers – owning, leasing, managing and reselling   2 130,3   1 698,9  
  Other   1,5   1,5  
      2 804,1   1 697,9  
  Segment result          
  Profit from operations          
  Continuing operations          
  Containers – finance   488,7   69,1  
  Containers – owning, leasing, managing and reselling   998,8   903,4  
     Profit before impairment of goodwill   1 133,3   903,4  
     Impairment of goodwill   (134,5)   –  
  Other   (33,0)   (21,4)  
      1 454,5   951,1  
             
8. Current assets          
  Inventories   14,8   25,8  
  Trade and other receivables   849,1   530,8  
  Investments   –   75,8  
  Current tax asset   1,5   –  
  Assets classified as held for sale (Note 10)   138,8   676,4  
  Cash and cash equivalents   1 445,0   757,4  
      2 449,2   2 066,2  
             
9. Current liabilities          
  Trade and other payables   274,1   442,0  
  Current tax liability   164,4   99,5  
  Current portion of interest-bearing borrowings   537,7   437,9  
  Liabilities classified as held for sale (Note 11)   24,1   396,9  
  Short-term borrowings   –   0,1  
      1 000,3   1 376,4  
             
10. Assets classified as held for sale          
  Property, plant and equipment   –   485,7  
  Intangible assets   –   1,0  
  Investments   47,2   26,1  
  Deferred tax asset   –   71,2  
  Restricted cash   1,7   0,9  
  Inventories   –   2,9  
  Trade and other receivables   9,0   37,8  
  Cash and cash equivalents   80,9   50,8  
      138,8   676,4  
             
11. Liabilities classified as held for sale          
  Interest-bearing borrowings   –   307,9  
  Derivative financial instruments   3,8   6,5  
  Deferred income   –   1,5  
  Trade and other payables   9,5   75,3  
  Provisions   10,8   5,7  
      24,1   396,9  
             
12. Restatement of prior year amounts
In November 2007, Textainer acquired an additional interest in its subsidiary Textainer Marine Containers Ltd. A reduction of R23,7 million to the group’s deferred tax liabilities as a result of the acquisition was not accounted for in the prior year. Consequently, deferred tax liabilities and goodwill recognised on the acquisition transaction were each overstated by R23,7 million at 31 December 2007. The comparative amounts at 31 December 2007 have been restated to adjust goodwill and deferred tax liabilities accordingly. There is no effect on the group’s income or retained earnings reported in prior years.
   
  Effect on the year ended 31 December 2007:          
  Decrease in deferred taxation liabilities   23,7   –  
  Decrease in goodwill   23,7   –  

 

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