About our report
Nampak strives to provide comprehensive and valuable information to its shareholders.
Our integrated report provides a balanced assessment of our financial, economic, social, governance and environmental issues. It provides information on our operating context, strategy, business model, operational and financial performance, risks and opportunities and corporate governance.
We report on the resources upon which we rely (also referred to as the six capitals), the stakeholders with whom we engage and the material issues that have the potential to affect the delivery of strategy and the group's ability to create value.
In addition to the integrated report, we publish audited annual financial statements, as well as comprehensive sustainability and remuneration reports. All are available on our website www.nampak.com.
SCOPE AND BOUNDARY
This report covers the period from 1 October 2017 to 30 September 2018 and includes all Nampak's businesses and associates in all the territories in which it operates, except where specifically noted. Significant events, if any, after year-end and before the approval date of this report, are also included.
We report on our operations by packaging substrate – being metals, plastic, paper and glass – and by geographical region, being South Africa, Rest of Africa, the United Kingdom and Republic of Ireland.
This report also includes details relating to risks, opportunities and outcomes attributable to or associated with other entities and stakeholders beyond Nampak that may have a material effect on the ability of Nampak to create value.
All significant items are reported on a comparable basis and the contents are presented on continuing operations.
SIGNIFICANT CHANGES DURING THE REPORTING PERIOD
The board decided to dispose of the Glass business because its financial returns have failed to meet required levels due to inadequate skills, high capital expenditure and high fixed costs. For financial reporting purposes, Glass has been treated as an asset held for sale. The board also decided to sell the Plastic crates and drums business. Subsequent to year-end, Mr Tito Mboweni was appointed South Africa's Minister of Finance and resigned from the board.
Reporting in our integrated report is based on a materiality assessment and includes only those items that have or may have a significant impact on our ability to deliver on our strategy, create stakeholder value and contribute to future sustainability of the group. The determination of materiality is informed by key stakeholder material matters and these are dealt with fully in our Material issues.
INTERNAL CONTROL AND ASSURANCE
Nampak assesses risks based on material risks that will impede the performance against the six capitals. Our evolving current combined assurance model is representative of Nampak's approach to significant risks and material matters are being managed between six lines of defence.
We work continuously to refine the coordination, integration and alignment of assurance activities. The aim is to ensure that Nampak adopts a robust combined assurance framework to provide the board with a holistic view of risks and controls and whether the mitigations are effective.
The board, supported by the audit committee, ensures an effective control environment which supports the integrity of our information. Our systems of internal control are designed to provide reasonable assurance against material misstatement. We have assessed our controls to be adequate and effective through the confirmation of management and reports from the internal and external auditors.
The financial information in this report was prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS). The summarised annual consolidated financial statements were derived from the annual consolidated financial statements and are consistent in all material respects. Copies of the independent auditor's report are available for inspection at the company's registered office.
In providing other information, we took guidance from:
- JSE Listings Requirements
- The Companies Act No 71 of 2008 (Companies Act)
- The King IV Report on Corporate Governance for South Africa 2016 (King IV™*)
- The IIRC's International <IR> Framework
- The FTSE/JSE Responsible Investment Index Series
- GRI G4 guidelines and CDP standard
APPROVAL BY THE BOARD
Nampak's board of directors acknowledges its responsibility for ensuring the integrity of the integrated report and has applied its collective mind in the preparation and presentation of this report. In our opinion, the 2018 integrated report addresses all material matters, fairly represents Nampak's performance and is presented in accordance with the framework of the IIRC and King IV™.
|André de Ruyter
Chief executive officer
26 November 2018