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 gains/(osses).

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 shareholders’ 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
2016   2015   2014   2013   2012  
Statistics
Earnings and dividend data
Weighted number of ordinary shares in issue ‘000   632 667   629 726   627 728   624 921   623 607  
Headline earnings per share cents   107.6   182.1   234.7   205.3   190.4  
Continuing operations cents   107.6   208.2   221.9   141.4   161.6  
Discontinued operations cents   –   (26.1) 12.8   63.9   28.8  
Change over previous year (continuing operations) %   (48) (6) 57   (12) 97  
Earnings per share cents   254.5   165.6   186.3   207.2   193.4  
Continuing operations cents   254.5   228.3   221.7   156.4   165.2  
Discontinued operations cents   –   (62.7) (35.4) 50.8   28.2  
Change over previous year (continuing operations) %   11   3   42   (5) 127  
Dividends/cash distributions declared per share cents   –   134.0   153.0   140.0   129.5   
Change over previous year %   (100) (12) 9    8    20   
Five-year compound annual growth rate %   –   (4) (12) (21) (2)
Dividend/cash distribution cover times   –   1.5    1.5    1.5    1.5   
Financial data
Return on equity
Continuing operations %   17.9    19.1    23.6    19.6    24.7   
Continuing and discontinuing operations %   17.9    12.5    15.4    19.8    21.1   
Return on net assets
Continuing operations %   11.2    10.7    16.7    16.6    18.2   
Continuing and discontinuing operations %   11.2    11.0    14.8    18.4    21.2   
Net asset turn
Continuing operations times   1.1    1.1    1.3    1.8    2.1   
Continuing and discontinuing operations times   1.1    1.2    1.5    1.9    2.2   
Return on invested capital %   9.2    9.0    12.2    16.0    17.4   
Current ratio times   1.5    1.0    1.2   1.7   1.5  
Acid-test ratio times   0.9   0.6   0.7   1.2   0.8  
EBITDA Interest cover times   7.1    9.3    8.3    13.3    15.6   
EBITDA Interest cover – debt covenants times   5.4    9.7    7.3    10.0    13.0   
Effective rate of tax
Continuing operations %   11.9    (4.1) 9.1    25.9    26.9   
Continuing and discontinuing operations %   11.9    (21.5) 4.1    21.4    27.3   
Net debt 4 625.3   6 582.1   5 721.5   1 155.6   1 058.6  
Gross gearing %   79.7    90.8    89.8    80.0    51.3   
Net gearing %   49.0    71.8    72.6    16.1    18.4   
Net debt to EBITDA - debt covenants times   1.7    2.3    2.2    0.6    0.6   
Number ordinary shares in issue* ‘000   639 884   630 057   628 267   625 457   624 272  
Net asset value per ordinary share cents   1 476   1 456   1 255   1 150   919  
Change over previous year %   1    16    9    25    2   
* Net of treasury shares
Employee data
Permanent employees 6 678   6 663   9 269   9 965   10 364  
Temporary employees 1 422   1 328   1 851   1 734   2 005  
Total employees 8 100   7 991   11 120   11 699   12 369  
Employee numbers used for calculations 8 100   7 945   7 543   7 411   7 132  
Revenue per employee R’000   2 363   2 176    2 029    1 834    1 716   
Employment cost per employee R’000   386    353    333    311    295   
Productivity per employee Index   38    25    21    22    20   
Operating results
R million  
Continuing operations
Revenue 19 138.9    17 291.3    15 305.6    13 594.5    12 240.5   
Trading profit 1 905.1    1 839.6    1 867.7    1 688.1    1 497.1   
Profit after tax from continuing operations 1 478.3    1 456.1    1 426.0    957.6    1 014.9   
Discontinued operations
(Loss)/profit from discontinued operations –    (394.8) (222.4) 318.0    175.8   
Profit for the year 1 478.3   1 061.3   1 203.6   1 275.6   1 190.7  
Attributable to: R million  
Equity holders of Nampak Ltd 1 610.4   1 043.2   1 169.4   1 295.0   1 206.0  
Non-controlling interests (132.1) 18.1   34.2   (19.4) (15.3)
1 478.3   1 061.3   1 203.6   1 275.6   1 190.7  
EBITDA 3 074.5   1 989.4   2 378.3   2 563.7   2 453.7  
Continuing operations 3 074.5   2 483.7   2 538.0   2 352.3   2 036.3  
Discontinued operations –   (494.3) (159.7) 211.4   417.4  
EBITDA (adjusted for impairments) 3 434.9   2 188.5   2 809.7   2 680.0   2 473.1  
Continuing operations 3 434.9   2 605.1   2 575.2   2 474.5   2 055.7  
Discontinued operations –   (416.6) 234.5   205.5   417.4  
Statements of financial position
R million  
Total shareholders’ funds 9 444.5    9 172.4    7 883.1    7 190.6    5 739.1   
Retirement benefit obligation 1 855.7    2 008.4    2 173.0    2 193.1    1 618.3   
Deferred tax and other non-current liabilities 267.1    390.8    503.5    811.5    663.8   
Non-current loans and borrowings 6 202.1    4 212.0    4 753.3    3 249.5    1 350.9   
Current liabilities 6 334.4   8 623.9    6 578.2    6 179.2    5 152.0   
Total equity and liabilities 24 103.8   24 407.5    21 891.1    19 623.9    14 524.1   
Property, plant and equipment 10 573.4    11 025.7    9 864.3    7 835.3    6 640.0   
Intangibles 4 043.4    4 118.6    3 419.5    814.5    715.1   
Other non-current financial assets and deferred tax 154.7    222.4    414.0    455.7    (486.8)
Current assets 9 332.3   9 040.8    8 193.3    10 518.4    7 655.8   
Total assets 24 103.8   24 407.5    21 891.1    19 623.9    14 524.1   
Cash flow
R million  
Cash generated from operations 2 825.3   1 726.5   2 740.1   2 484.1   2 262.2  
Cash retained from operating activities 890.4   (1 457.8) 419.5   (103.4) 134.5  
Additions to property, plant, equipment and intangibles (1 443.6) (2 195.2) (2 620.1) (1 447.2) (1 084.2)
Net increase/(decrease) in cash 4 162.5   (1 535.2) (3 653.1) 1 944.9   (659.8)
Share performance
Market price per share
Highest cents   2 820    4 885   4 154   3 780   2 970   
Lowest cents   1 635    2 572   4 001   2 809   1 992   
Year-end cents   1 944    2 580   4 113   3 121   2 860   
Number of ordinary shares in issue ‘000   688 668   702 497   700 708   697 897   696 712  
Market capitalisation R million   13 388   18 124   28 820   21 781   19 926  
Volume of shares traded ‘000   979 569    437 360   388 869   496 327   260 793  
Value of shares traded R million   8 304.2    13 055.2   24 525.0   16 082.8   6 342.8  
Volume of shares traded as a percentage of total issued shares %   142.2   62.3   55.5   71.1   37.4  
Earnings yield %   5.5   7.1   5.7   6.6   6.7  
Dividend/cash distribution yield %   –    5.2    3.7    4.5    4.5   
Price/earnings ratio times   18.1   14.2   17.5   15.2   15.0  
Exchange rates
Rand/UK pound
Average 21.07    18.56    17.54    14.49   12.71  
Closing 17.80    20.97    18.33    16.25   13.39  
Rand/Euro
Average 16.43    13.77    14.36    12.19   10.46  
Closing 15.42    15.50    14.27    13.59   10.68  
Rand/US dollar
Average 14.79    12.02    10.58    9.28   8.06  
Closing 13.72    13.86    11.30    10.05   8.29  
Naira/US dollar
Average 229.60   191.21   161.77   158.75   159.54  
Closing 315.00   199.00   163.70   161.77   157.31  
Kwanza/US dollar
Average 161.57   114.52   100.76   96.33   95.14  
Closing 171.72   140.06   101.21   100.56   95.33