How we define value

 

For Nampak, value means "sustainable profitability". This refers not only to growing Nampak's earnings, but also to securing the group's sustainability more broadly, by creating value for all our stakeholders – customers, employees, authorities, investors, suppliers or society at large – in the short, medium and long term. For us, the short term means within the next 12 months; the medium term means the next two to three years; and the long term means more than three years out. By defining what value means to us, we align the company to a common purpose: we all understand what is required of us.

 

INCREASING TOTAL GROSS MARGINS

2019 PROOF POINTS

  • Grew volumes at Bevcan in Nigeria and Plastics and Liquid Cartons in South Africa
  • Secured three-year contract at Crates
  • Continued our lightweighting initiatives, with associated raw material cost benefits
  • Improved energy usage across the business
  • Secured improved payment terms from suppliers

ENSURING PRUDENT CAPITAL ALLOCATION

2019 PROOF POINTS

  • Reached agreement to sell Glass business
  • Reached agreement to sell Nigeria Cartons business
  • Resolved to account for Nampak Plastics Europe as an asset held for sale
  • Limited capital expenditure to R735 million (versus R2.2 billion five years ago)
  • Resolved not to resume dividend payment for now
  • Negotiated a revolving credit facility which reduced our cost of borrowing and secured adequate borrowing facilities

FOCUSING ON ESG SUSTAINABILITY

2019 PROOF POINTS

  • Led ethically and effectively; promoted stakeholder inclusivity
  • Rejuvenated the board; remained a responsible corporate citizen
  • Promoted use of recyclable materials: introduced aluminium can and paper carton packaging for water
  • Committed funds to the YES4Youth programme; improved our B-BBEE contributor status to level 2
  • Worked with customers to expand the market for rPET bottles

REDUCING CASH FIXED COSTS

2019 PROOF POINTS

  • Limited cash fixed cost increases to below the rate of inflation
  • Reduced employee numbers in Angola by 108, Tanzania by 75, Kenya by 52, Malawi by seven
  • Reduced Plastics permanent employee numbers by 46 and temporary staff by 81
  • Identified opportunities to further reduce employee numbers