Five-year financial review

DEFINITIONS

Treasury shares

Treasury shares represent shares in Nampak Ltd held by group subsidiary companies and trusts.

Weighted average number of shares

Weighted average number of shares in issue is calculated as the number of shares in issue at the beginning of the year (net of treasury shares), increased by shares issued during the year, weighted on a time basis for the period during which they have participated in the profit of the group.

Dividends declared/cash distributions per ordinary share

Interim dividend/cash distribution paid per ordinary share plus the final dividend/cash distribution declared in respect of the current year’s profits.

Trading profit

Operating profit adjusted for abnormal gains/(losses).

Abnormal gains/(losses)

Gains/(losses) which do not arise from normal trading activities or are of such size, nature or incidence that their disclosure is relevant to explain performance for the period.

Net assets

Total assets, excluding tax, deferred tax, bank balances, deposits and cash equivalents and non-current receivables, less trade and other payables, provisions and other non-current liabilities.

EBITDA

Operating profit before depreciation and amortisation.

EBITDA (debt covenants)

Operating profit before depreciation, amortisation and abnormal items.

Net debt

Loans, borrowings and overdrafts, less bank balances, deposits and cash equivalents and
non-current receivables (including current portion).

Net debt (debt covenants)

Loans, borrowings and overdrafts, less bank balances, deposits and cash equivalents.

Net finance costs (debt covenants)

Net finance costs before interest capitalised.

Employee numbers used for calculations

Total number of employees adjusted for discontinued operations.

Market capitalisation

Number of ordinary shares in issue multiplied by the year-end market price per share.

Return on equity

  Net profit attributable to ordinary shareholders  
  Average ordinary shareholder’s equity  

Return on net assets

  Trading profit plus investment income and share of profit in associates and joint ventures  
  Average net assets  
 

Net asset turn

  Revenue  
  Average net assets  

Return on invested capital

  Trading profit less notional taxation adjustment  
  Average net debt plus average total equity  

Current ratio

  Current assets including assets classified as held for sale  
  Current liabilities including liabilities classified as held for sale  

Acid-test ratio

  Current assets before inventories, including assets classified as held for sale  
  Current liabilities including liabilities classified as held for sale  

Net debt to EBITDA (debt covenants)

  Net debt (debt covenants)  
  EBITDA (debt covenants)  

EBITDA interest cover

  EBITDA  
  Net finance costs  

EBITDA interest cover (debt covenants)

  EBITDA (debt covenants)  
  Net finance costs (debt covenants)  

Gross gearing

  Loans, borrowings and overdrafts  
  Total equity  

Net gearing

  Net debt  
  Total equity  

Productivity per employee

  EBITDA  
  Employee numbers used for calculations  

Employment cost per employee

  Employee benefit expense  
  Employee numbers used for calculations  

Earnings yield

  Headline earnings per share  
  Year-end market price per share  

Dividends/cash distributions yield

  Dividends/cash distributions per ordinary share  
  Year-end market price per share  

Price/earnings ratio

  Year-end market price per share  
  Headline earnings per share  



      2017   2016 2015 2014 2013  
STATISTICS                
Earnings and dividend data                  
Weighted number of ordinary shares in issue '000     640 496     632 667  629 726  627 728  624 921    
Headline earnings per share  cents     123.8     107.6  182.1  234.7  205.3    
   Continuing operations  cents     123.8     107.6  208.2  221.9  141.4    
   Discontinued operations  cents        (26.1) 12.8  63.9    
   Change over previous year (continuing operations)    15     (48) (6) 57  (12)   
Earnings per share  cents     36.6     254.5  165.6  186.3  207.2    
   Continuing operations  cents     36.6     254.5  228.3  221.7  156.4    
   Discontinued operations  cents        (62.7) (35.4) 50.8    
   Change over previous year (continuing operations)    (86)    11  42  (5)   
Dividends declared/cash distributions per share  cents        134.0  153.0  140.0    
   Change over previous year        (100) (12)   
   Five-year compound annual growth rate        -   (4) (12) (21)   
Dividend cover/cash distribution  times        1.5  1.5  1.5    
FINANCIAL DATA                            
Return on equity                            
   Continuing operations     2.5     17.9  19.1  23.6  19.6    
   Continuing and discontinued operations     2.5     17.9  12.5  15.4  19.8    
Return on net assets                            
Continuing operations     12.3     11.2  10.7  16.7  16.6    
Continuing and discontinued operations     12.3     11.2  11.0  14.8  18.4    
Net asset turn                            
   Continuing operations  times     1.2     1.1  1.1  1.3  1.8    
   Continuing and discontinued operations  times     1.2     1.1  1.2  1.5  1.9    
Return on invested capital     10.1     9.2  9.0  12.2  16.0    
Current ratio  times     1.3     1.4  1.0  1.2  1.7    
Current ratio (including non-current portion of liquid bonds) times     1.5     1.5  1.0  1.2  1.7    
Acid test ratio  times     0.8     0.8  0.6  0.7  1.2    
Acid test ratio (including non-current portion of current liquid bonds) times     1.0     0.9  0.6  0.7  1.2    
EBITDA interest cover  times     6.3     7.1  9.3  8.3  13.3    
EBITDA interest cover – debt covenants  times     7.2     5.4  9.7  7.3  10.0    
Effective rate of tax                            
   Continuing operations     37.5     11.9  (4.1) 9.1  25.9    
   Continuing and discontinued operations     37.5     11.9  (21.5) 4.1  21.4    
Net debt        4 351.8     4 625.3  6 582.1  5 721.5  1 155.6    
Gross gearing     90.7     79.7  90.8  89.8  80.0    
Net gearing     45.0     49.0  71.8  72.6  16.1    
Net debt to EBITDA – debt covenants  times     1.6     1.7  2.3  2.2  0.6    
Net debt to EBITDA – debt covenants (excluding liquid bonds) times     2.3     1.9  2.3  2.2  0.6    
Number of ordinary shares in issue*  '000     640 620     639 884  630 057  628 267  625 457    
Net asset value per ordinary share  cents     1 454     1 438  1 456  1 255  1 150    
Change over previous year        (1) 16  25    
* Net of treasury shares.                            
EMPLOYEE DATA                            
Permanent employees        6 420     6 678  6 663  9 269  9 965    
Temporary employees        1 706     1 422  1 328  1 851  1 734    
Total employees        8 126     8 100  7 991  11 120  11 699    
Employee numbers used for calculations        8 126     8 100  7 945  7 543  7 411    
Revenue per employee  R'000     2 316     2 363  2 176  2 029  1 834    
Employment cost per employee  R'000     380     386  353  333  311    
Productivity per employee  index     23     38  25  21  22    
OPERATING RESULTS  R million                         
Continuing operations                            
Revenue        18 821.7     19 138.9  17 291.3  15 305.6  13 594.5    
Trading profit        1 966.8     1 905.1  1 839.6  1 867.7  1 688.1    
Profit after tax from continuing operations        356.0     1 478.3  1 456.1  1 426.0  957.6    
Discontinued operations                            
(Loss)/profit from discontinued operations           (394.8) (222.4) 318.0    
Profit for the year        356.0     1 478.3  1 061.3  1 203.6  1 275.6    
Attributable to:  R million                         
Equity holders of Nampak Ltd        234.8     1 610.4  1 043.2  1 169.4  1 295.0    
Non-controlling interests        121.2     (132.1) 18.1  34.2  (19.4)   
         356.0     1 478.3  1 061.3  1 203.6  1 275.6    
EBITDA        1 792.4     3 074.5  1 989.4  2 378.3  2 563.7    
   Continuing operations        1 792.4     3 074.5  2 483.7  2 538.0  2 352.3    
   Discontinued operations           (494.3) (159.7) 211.4    
EBITDA (adjusted for impairments)       2 460.2     3 434.9  2 188.5  2 809.7  2 680.0    
   Continuing operations        2 460.2     3 434.9  2 605.1  2 575.2  2 474.5    
   Discontinued operations           (416.6) 234.5  205.5    
STATEMENTS OF FINANCIAL POSITION  R million                         
Total shareholders' funds        9 681.1     9 444.5  9 172.4  7 883.1  7 190.6    
Retirement benefit obligation        1 558.0     1 855.7  2 008.4  2 173.0  2 193.1    
Deferred tax and other non-current liabilities        359.3     267.1  390.8  503.5  811.5    
Non-current loans and borrowings        6 007.2     6 202.1  4 212.0  4 753.3  3 249.5    
Current liabilities        7 624.3     6 334.4  8 623.9  6 578.2  6 179.2    
Total equity and liabilities        25 229.9     24 103.8  24 407.5  21 891.1  19 623.9    
Property, plant and equipment        10 151.4     10 573.4  11 025.7  9 864.3  7 835.3    
Intangible assets        3 568.8     4 043.4  4 118.6  3 419.5  814.5    
Other non-current financial assets and deferred tax        1 235.1     772.2  222.4  414.0  455.7    
Current assets        10 274.6     8 714.8  9 040.8  8 193.3  10 518.4    
Total assets        25 229.9     24 103.8  24 407.5  21 891.1  19 623.9    
CASH FLOW  R million                         
Cash generated from operations before working capital changes        2 395.1     2 264.0  2 395.1  2 929.2  2 687.1    
Cash generated from operations        2 068.3     2 825.3  1 726.5  2 740.1  2 484.1    
Cash generated from/(utilised in) operating activities        1 390.6     1 366.1  (1 457.8) 419.5  (103.4)   
Additions to property, plant, equipment and intangibles        (735.3)    (1 443.6) (2 195.2) (2 620.1) (1 447.2)   
Net (decrease)/increase in cash        (1 419.0)    3 545.0  (1 535.2) (3 653.1) 1 944.9    
SHARE PERFORMANCE                            
Market price per share                            
   Highest  cents     2 361     2 820  4 885  4 154  3 780    
   Lowest  cents     1 551     1 635  2 572  4 001  2 809    
   Year-end  cents     1 760     1 944  2 580  4 113  3 121    
Number of ordinary shares in issue  '000     689 404     688 668  702 497  700 708  697 897    
Market capitalisation  R million     12 134     13 388  18 124  28 820  21 781    
Volume of shares traded  '000     539 937     523 826  437 360  388 869  496 327    
Value of shares traded  R million     9 814.4     9 520.0  13 055.2  24 525.0  16 082.8    
Volume of shares traded as a percentage of total issued shares     78.3     76.1  62.3  55.5  71.1    
Earnings yield     7.0     5.5  7.1  5.7  6.6    
Dividend/cash distribution yield        5.2  3.7  4.5    
Price/earnings ratio  times     14.2     18.1  14.2  17.5  15.2    
EXCHANGE RATES                            
Rand/UK pound                            
   Average        16.96     21.07  18.56  17.54  14.49    
   Closing        18.17     17.80  20.97  18.33  16.25    
Rand/euro                            
   Average        14.78     16.43  13.77  14.36  12.19    
   Closing        15.98     15.42  15.50  14.27  13.59    
Rand/US dollar                            
   Average        13.38     14.79  12.02  10.58  9.28    
   Closing        13.56     13.72  13.86  11.30  10.05    
Naira/US dollar                            
   Average        321.90     229.60  191.21  161.77  158.75    
   Closing        358.99     315.00  199.00  163.70  161.77    
Kwanza/US dollar                            
   Average        171.74     161.57  114.52  100.76  96.33    
   Closing        171.75     171.72  140.06  101.21  100.56