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Nampak - Interim report and dividend declaration for the six months ended 31
March 2005
NAMPAK LIMITED
(Registration number 1968/008070/06)
(Incorporated in the Republic of South Africa)
Share Code: NPK ISIN: ZAE000004933
INTERIM REPORT AND DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 MARCH 2005
Group Income Statement
Unaudited Audited
6 months ended year ended
31 March 30 Sept
2005 2004 Change 2004
Notes Rm Rm % Rm
Revenue 8 016.5 9 155.5 (12.4) 17 494.6
Continuing 8 016.5 8 839.8 (9.3) 17 178.9
operations
Discontinued - 315.7 315.7
operations
Gross profit 3 550.8 4 117.9 7 960.9
Expenses 2 826.4 3 275.5 6 398.8
Profit before 1 724.4 842.4 (14.0) 1 562.1
abnormal items
Net abnormal income 2 95.8 218.4 70.5
Profit from 3 820.2 1 060.8 1 632.6
operations
Continuing 820.2 807.7 1.5 1 592.7
operations
Discontinued - 253.1 39.9
operations
Net finance costs 4 48.3 91.5 149.0
Income from 3.5 5.9 15.6
investments
Profit before tax 775.4 975.2 (20.5) 1 499.2
Income tax 278.8 276.1 521.7
Profit after tax 496.6 699.1 (29.0) 977.5
Minority interest 2.5 8.2 10.4
Net profit for the 494.1 690.9 (28.5) 967.1
period
Number of ordinary 645 126 640 899 641 574
shares in issue
(`000)
Weighted average 638 155 640 733 640 958
number of ordinary
shares on which
headline earnings
and basic earnings
per ordinary share
are based (`000)
Weighted average 642 670 643 871 644 705
number of ordinary
shares on which
diluted headline
earnings and
diluted basic
earnings per
ordinary share are
based (`000)
Headline earnings 70.8 79.8 (11.3) 146.1
per ordinary share
(cents)
Basic earnings per 77.4 107.8 (28.2) 150.9
ordinary share
(cents)
Dividend per 27.0 27.0 83.6
ordinary share
(cents)
Fully diluted 70.3 79.5 (11.6) 145.3
headline earnings
per ordinary share
(cents)
Fully diluted 76.9 107.3 (28.3) 150.0
earnings per
ordinary share
(cents)
Determination of
headline earnings
Net profit for the 494.1 690.9 967.1
period
Less: preference - - (0.1)
dividend
Adjusted for:
Impairment losses 113.3 - 127.9
Goodwill amortised - 34.0 60.5
Net profit on sale
of businesses,
property,
plant & equipment (372.3) (231.4) (230.2)
Pension fund 141.7 - -
curtailment on sale
of business
Tax effects 75.2 18.1 11.3
Headline earnings 452.0 511.6 (11.6) 936.5
for the period
Group Balance Sheet
Unaudited Audited
6 months ended year ended
31 March 30 Sept
2005 2004 2004
Notes Rm Rm Rm
Assets
Non-current assets 5 382.4 5 516.9 5 512.1
Property, plant and 4 145.9 4 466.8 4 228.1
equipment
Goodwill and other 1 075.8 968.8 1 240.4
intangibles
Investments 42.8 81.3 43.6
Long term receivables 117.9 - -
Current assets 4 999.5 5 921.6 5 443.6
Inventories 1 995.5 2 009.2 2 055.9
Trade and other 2 461.4 2 604.5 2 688.2
receivables
Bank balances, deposits 5 542.6 1 307.9 699.5
and cash
Total assets 10 381.9 11 438.5 10 955.7
Equity and liabilities
Capital and reserves 5 311.1 5 284.7 5 399.6
Capital 2 086.3 2 036.6 2 042.4
Treasury shares (152.0) - -
Non-distributable 7 (429.0) (256.8) (249.6)
reserves
Accumulated profits 3 805.8 3 504.9 3 606.8
Minority interest 33.4 29.6 32.8
Non-current liabilities 1 404.1 1 840.1 1 659.1
Interest bearing debt 5 691.4 1 305.5 1 091.5
Net long-term retirement 334.1 186.3 161.9
benefit obligation
Net deferred tax 378.6 348.3 405.7
liabilities
Current liabilities 3 633.3 4 284.1 3 864.2
Trade and other payables 2 392.3 2 798.6 2 938.9
Interest bearing debt 5 1 030.5 1 279.8 752.9
Net tax liabilities 210.5 205.7 172.4
Total equity and 10 381.9 11 438.5 10 955.7
liabilities
Total borrowings:total 32% 49% 36%
shareholders" funds
Net borrowings:total 22% 24% 21%
shareholders" funds
Total liabilities: total 94% 115% 109%
average shareholders"
funds
Net worth per ordinary 823 825 842
share (cents) calculated
on number of ordinary
shares in issue of 645
126 357 (2004: 640 898
791)
Tangible net worth per 657 673 648
ordinary share (cents)
calculated on number of
ordinary shares in issue
of 645 126 357 (2004:
640 898 791)
Group Statement of Changes in Equity
Unaudited Audited
6 months year
ended ended
31 March 30 Sept
2005 2004 2004
Notes Rm Rm Rm
Equity at beginning of 5 399.6 4 855.1 4 855.1
period
Change in accounting policy 6 (82.4) - -
Changes in capital 43.9 2.9 8.7
Share capital - share option 0.2 2.9 0.1
scheme
Share premium - share option 43.7 - 9.1
scheme
- consolidation of shares - - (0.5)
held by share purchase trust
Changes in treasury shares
Share buy-back (152.0) - -
Changes in non-distributable 7 (29.0) 38.1 45.3
reserves
Decrease in foreign currency (11.2) (35.3) (41.8)
translation reserve
Hyper-inflation capital (19.1) 73.4 88.7
adjustment
Financial instruments - 1.3 - (1.6)
hedging
Changes in accumulated 131.0 388.6 490.5
profit
Net profit for the period 494.1 690.9 967.1
Ordinary shares - dividends (363.1) (302.3) (476.5)
Preference shares - - - (0.1)
dividends
Equity at end of period 5 311.1 5 284.7 5 399.6
Abridged Group Cash Flow
Unaudited Audited
6 months year
ended ended
31 March 30 Sept
2005 2004 2004
Note Rm Rm Rm
Cash operating profit 1 106.9 1 251.3 2 293.3
Working capital changes (432.2) (192.1) (251.5)
Cash generated from operations 674.7 1 059.2 2 041.8
Net finance costs (48.3) (91.5) (149.0)
Income from investments 3.5 5.9 15.6
Tax paid (278.8) (419.2) (645.1)
Cash available from operations 351.1 554.4 1 263.3
Dividends paid (363.5) (282.3) (477.3)
Net cash (outflow)/inflow from (12.4) 272.1 786.0
operating activities
Expansion capital expenditure (210.5) (384.8) (601.2)
Replacement capital (199.1) (157.2) (394.4)
expenditure
Acquisition of business (87.0) (67.3) (87.6)
Disposal of businesses 424.4 451.5 476.0
Proceeds on the sale of 204.5 24.1 61.7
property, plant and equipment
Net cash outflow from other (51.9) (71.7) (10.8)
investing activities
Net cash inflow before 68.0 66.7 229.7
financing activities
Net interest bearing debt (397.5) (53.9) (286.9)
repaid
Share buy-back (152.0) - -
Capital proceeds on issue of 43.9 2.9 9.2
shares
Net (decrease)/increase in (437.6) 15.7 (48.0)
cash and cash equivalents
Cash and cash equivalents at (28.3) 17.2 17.2
beginning of period
Translation of cash in foreign (2.2) 1.1 2.5
subsidiaries
Cash and cash equivalents at 5 (468.1) 34.0 (28.3)
end of period
Notes
Unaudited Audited
6 months ended year ended
31 March 30 Sept
2005 2004 Change 2004
Rm Rm % Rm
1. Profit before
abnormal items
South Africa 585.6 643.3 (9.0) 1 186.6
Africa 56.7 84.6 (33.0) 142.8
Europe 82.1 114.5 (28.3) 232.7
724.4 842.4 (14.0) 1 562.1
2. Net abnormal
income
Retrenchment costs 19.4 9.4 40.8
Restructuring costs 2.4 17.0 19.8
Impairment losses on
goodwill and
property,
plant and equipment 113.3 - 127.9
Net profit on (369.1) (8.6) (7.6)
disposal of property
Net loss/(profit) on 0.1 (216.6) (216.5)
disposal of
businesses
Pension fund 141.7 - -
curtailment on sale
of business
Net monetary (4.9) 3.6 15.1
adjustment - hyper-
inflation
Financial 1.1 (43.8) (70.9)
instruments fair
value adjustment
FEC costs on plant 0.2 20.6 20.9
and equipment
(95.8) (218.4) (70.5)
3. Profit from
operations
South Africa 583.8 879.6 (33.6) 1 411.0
Africa 61.3 81.0 (24.7) 127.7
Europe 175.1 100.2 74.7 93.9
820.2 1 060.8 (22.7) 1 632.6
4. Net finance costs
Interest paid 94.1 119.7 217.7
Interest received (45.8) (28.2) (68.7)
48.3 91.5 149.0
5. Cash and cash
equivalents
Interest bearing (1 721.9) (2 585.3) (1 844.4)
debt
Less long-term 691.4 1 305.5 1 091.5
liabilities
Less short-term 19.8 5.9 25.1
portion of long-term
liabilities
Less bank balances, 542.6 1 307.9 699.5
deposits and cash
(468.1) 34.0 (28.3)
6. Changes in
accounting policies
The group has
changed its
accounting policies
in respect of
goodwill to comply
with the
requirements of
IFRS3 - Business
Combinations, IAS36
- Impairment Of
Assets and IAS21 -
The Effects Of
Changes In Foreign
Exchange Rates. The
aggregate effect of
the changes in
accounting policies
are as follows:
Balance sheet:
Decrease in Foreign (150.4)
Currency Translation
Reserve
Increase in 68.0
Accumulated profits
Net decrease in (82.4)
reserves
Represented by:
Intangible assets
Goodwill restated in 150.4
functional currency
and translated at
closing rate
Negative goodwill (68.0)
written off
82.4
Income statement:
Impairment of 112.4
goodwill (IFRS3 and
IAS21)
Net decrease in 112.4
earnings
7. Reconciliation of
non-distributable
reserves" movement
Balance as 249.6
previously reported
Change in accounting 150.4
policy - refer note
6
Current year 29.0
movements
Balance at end of 429.0
period
8. Supplementary
information
Depreciation 326.5 346.3 710.0
Amortisation 24.4 36.6 90.9
- goodwill - 34.0 60.5
- other intangibles 24.4 2.6 30.4
Capital expenditure 409.6 542.0 995.6
- expansion 210.5 384.8 601.2
- replacement 199.1 157.2 394.4
Capital commitments 291.1 275.2 564.1
- contracted 134.9 256.7 237.1
- approved not 156.2 18.5 327.0
contracted
Lease commitments 438.4 330.2 512.6
- land and buildings 387.9 270.4 450.1
- other 50.5 59.8 62.5
Contingent 69.5 16.7 62.5
liabilities
Comments
NAMPAK PROFILE
Nampak is the largest and most diversified packaging manufacturer in Africa with
extensive manufacturing operations in South Africa and in a further 11 countries
on the African continent. It produces packaging products from metal, glass,
paper and plastics and is a major manufacturer and marketer of tissue products.
It is one of the leading suppliers of folding cartons to the food and healthcare
sectors in Europe and it is the major supplier of plastic bottles to the dairy
industry in the United Kingdom.
The group is actively engaged in the collection and recycling of all forms of
used packaging.
STRUCTURAL CHANGES
The Short Run plastic industrial containers business in Europe, which had been
underperforming in a highly competitive market, was sold for GBP24 million
effective 30 October 2004. The Woburn Sands property in the United Kingdom was
sold in January 2005 for GBP40 million of which GBP20 million has been received
with the balance due in equal instalments in January 2006 and 2007.
Effective 1 March 2005 Nampak sold Peters Papers, its paper merchants division,
to Actis, a leading private equity company in emerging markets, for R220
million. The transaction was concluded in partnership with the management of
Peters Papers and Izingwe Capital, a Black Economic Empowerment investment
company.
A share buy-back programme to acquire up to 5% of the issued shares in Nampak
Limited commenced on 2 February 2005. As at 31 March 2005 9.5 million shares
equivalent to 1.48% of Nampak"s shares in issue were acquired at a value of R152
million and at an average price of R15.97 per share.
GROUP FINANCIAL REVIEW
Profit from
Revenue operations
Rm Rm
2005 2004 2005 2004
South Africa 5 779 6 147 584 627
Rest of Africa 422 452 61 81
Europe 1 818 2 443 175 100
Intergroup eliminations (2) (202) - -
Continuing operations 8 017 8 840 820 808
NamITech - 316 - 253
Discontinued operations - 316 - 253
Total 8 017 9 156 820 1 061
Group
Sales revenue from continuing operations including the Short Run plastic
industrial containers business and Peters Papers which were sold, declined by
over 9%. Excluding these businesses the decline was 4%. A fall-off in volumes
occurred, due mainly to reduced direct and indirect exports, as well as
increased imports of packaging and finished products. Low inflation and with the
exception of polymer, little movement in raw material prices resulted in selling
prices remaining flat.
Operating costs were well-managed to a level below 2004.
Profit from continuing operations increased by 2% to R820 million mainly as a
result of profit on the sale of the Woburn Sands and other properties amounting
to R369 million offset by the following abnormal items:
* retrenchment and restructuring costs of R22 million arising mainly from the
closure of the Crown Point, Leeds folding carton factory in the United Kingdom;
* goodwill of R112 million written off in Cartons UK as a result of valuing the
business at fair value (refer accounting policy note 6);
* deferred pension fund liability of R142 million in Short Run plastic
industrial containers business brought to account following the sale of this
business.
Net financing costs reduced by 47% to R48 million as a result of lower interest
rates in South Africa and a further reduction in net borrowings.
The impairment losses which do not qualify as a tax deduction against income,
together with Secondary Tax on Companies (STC) on the higher dividend payout in
2004 resulted in an effective tax rate of 36% compared with 28% in the
comparative period which was lower than normal as the profit on the sale of
NamITech was of a capital nature.
Headline earnings per share decreased by 11% to 70.8 cents per share.
Working capital increased as a result of some pre-price increase buying of raw
materials and a reduction in creditors due to a change in suppliers" terms
offset to some extent by the sale of the businesses. Total capital expenditure
was R410 million of which the majority was in respect of projects approved
during 2004.
South Africa
Packaging volumes from the group"s South African operations declined by 2% with
double-digit growth in rigid plastics offset by lower demand in the metals,
paper and flexible packaging sectors. There was some volume growth from
increased consumer spending in South Africa, however, most of the benefit was
offset by the continued rand strength which resulted in direct and indirect
exports reducing from an estimated 26% of South African packaging sales in 2004
down to 21% in 2005. In addition, there was increased importation of a variety
of finished goods which impacted on local packaging sales.
In the non-packaging segment, Peters Papers was included for five months prior
to its disposal on 1 March 2005. Toilet tissue sales were lower than last year
but substantial growth was achieved in disposable diapers.
With the exception of polymer, there were no significant movements in raw
material prices and together with low inflation resulted in selling prices
remaining flat. Although profit from operations declined, good cost management
and the benefits of restructuring supported the operating margin which remained
virtually unchanged.
Rest of Africa
Trading results from this region were generally satisfactory but profit from
operations was negatively affected by hyper-inflation accounting in Zimbabwe.
The greenfields folding cartons plant in Nigeria commenced production in record
time.
Europe
Trading conditions in Europe remained highly competitive with demand far weaker
in the United Kingdom. Volumes on the Continent were also lower but not to the
same extent. In the Healthcare sector volumes were higher than last year
following good market growth and the inclusion of Diehl for a full six months.
Sales of plastic milk bottles increased as a result of market share gains.
Excluding the Short Run plastic industrial containers business, which was sold
effective 30 October 2004, sales revenue in pounds was 2% ahead of last year.
Trading profits, particularly in the United Kingdom, declined and a decision has
been taken to further rationalise production capacity by closing the folding
cartons factories at Crown Point in Leeds and at Leicester.
Profits were augmented by the sale of the Woburn Sands property in the United
Kingdom offset by the impairment of goodwill in respect of Cartons UK and the
curtailment cost of the employee defined benefit fund relating to the sale of
the Short Run plastic industrial containers business.
SEGMENTAL REVIEW
Metals & Glass
Revenue Profit from Margin
operations
Rm Rm %
2005 2004 2005 2004 2005 2004
Africa 2 310 2 485 346 325 15.0 13.1
Africa
Aerosols, paint cans and beverage container closures enjoyed good growth in line
with consumer spending. The Glass business achieved a turnaround with an
improvement in manufacturing efficiencies. The new slimline beverage can which
was introduced in October 2004 has been well received by consumers and demand
continues to improve.
In total, beverage can sales in South Africa declined as the trend towards
packing beverages in glass and plastic continued. Both direct and indirect
exports were lower as a result of rand strength and reduced offtake from
customers in Angola. Food can volumes were adversely affected by lower pilchard
catches but some of the lost sales are expected to be recouped in the second
half. Cans for meat, powdered milk and vegetables enjoyed good growth.
Deteriorating economic conditions in Zimbabwe reduced demand for metal packaging
containers in that country whilst a weaker economy and protracted industrial
action in Nigeria resulted in some lost sales. Other operations in the rest of
Africa performed better than expected.
Paper
Revenue Profit from Margin
operations
Rm Rm %
2005 2004 2005 2004 2005 2004
Africa 2 514 2 768 119 232 4.7 8.4
Europe 1 309 1 406 (85) 50 (6.5) 3.6
Total 3 823 4 174 34 282 0.9 6.7
Africa
Despite an improved market share in the agricultural sector, sales of corrugated
packaging were substantially lower than last year primarily in the commercial,
sheetboard and export sectors and together with selling price pressure resulted
in profits being negatively affected. Sales of paper sacks were lower due to
lost exports partly offset by strong demand for cement sacks.
Demand for folding cartons from the fishing and confectionery sectors was
generally lower as a result of the impact of the stronger rand which reduced
exports and encouraged imports.
Sales of disposable diapers were significantly ahead of last year. Sales of
toilet tissue were lower and selling prices remained under pressure. As part of
a cost reduction programme the tissue converting factory at Mobeni in Durban was
closed.
Operations in Zimbabwe performed well despite the weak economic conditions and
shortage of foreign exchange. Results from Malawi showed a significant
improvement on last year.
Europe
Highly competitive trading conditions in the United Kingdom together with some
customers relocating to the Continent resulted in further pressure on selling
prices and profitability. The older Crown Point factory in Leeds and the factory
in Leicester are being closed in order to rationalise production and reduce
costs. Redundancy and restructuring costs of R15 million were incurred in the
period under review. Goodwill of R112 million was written off in Cartons UK as a
result of valuing the business at fair value.
Although trading conditions on the Continent were also weaker, the operating
margin in Cartons Europe was maintained.
In the Healthcare sector sales were higher as a result of improved volumes and
the contribution from the Diehl group which was acquired in March 2004, but
increased market competitiveness saw a reduction in profitability.
Plastics
Revenue Profit from Margin
operations
Rm Rm %
2005 2004 2005 2004 2005 2004
Africa 1 377 1 346 141 137 10.2 10.2
Europe 509 923 243* 42 47.7 4.6
Total 1 886 2 269 384 179 20.4 7.9
* Includes profit on sale of property
Africa
Strong volume growth of crates and bottles was enjoyed in the rigid plastics
sector, fuelled by good demand for carbonated soft drinks and fruit juice, where
plastics continues to grow market share against other packaging. Sales of
plastic tubes were lower as a result of imports of filled toothpaste tubes.
In 2003 when the rand was weaker, export markets for flexible packaging
accounted for 20% of divisional revenue. The strengthening of the rand has
significantly decreased the viability of these exports. This was compounded by
the imposition of punitive import duties in Nigeria resulting in sales to this
large market virtually ceasing. This has led to a reduction of over 40% in
exports for the period under review and direct exports now account for only 10%
of divisional turnover.
Imports of finished products and empty packaging, have reduced the growth of the
flexible packaging market served by Nampak.
Major restructuring has been undertaken to mitigate the lost sales and the
benefits from the consolidation of the two flexible packaging factories in
KwaZulu-Natal are beginning to be realised.
Both sales and profitability of PET bottles and plastic bags in Zimbabwe were
better than last year as spending on food and drink held up reasonably well
despite the general economic conditions in the country.
Europe
The Short Run plastic industrial containers business was disposed of effective
30 October 2004.
Sales volumes of milk and juice bottles were higher following the acquisition of
two new strategically important dairy in-plant operations. Profitability was,
however, affected by a lag in recovering continually rising polymer prices.
Group services
Profit from
Revenue operations
Rm Rm
2005 2004 2005 2004
Africa - - 39 13
Europe - 114 17 9
Intergroup eliminations (2) (202)
Total (2) (88) 56 22
Group services comprise corporate functions, procurement, treasury and property
rentals. Costs were reduced in Europe following the rationalisation of offices
and in South Africa as a result of goodwill no longer amortised following the
adoption of accounting standard IFRS3.
ACCOUNTING POLICIES
The group prepares its annual financial statements in accordance with South
African Statements of Generally Accepted Accounting Practice. The principal
accounting policies have been applied consistently with the previous year except
for the changes set out below.
IFRS3 Business Combinations was adopted by the group in the previous financial
year. In terms of this standard, with effect from 1 October 2004, the accounting
for previously recognised goodwill has changed. All accumulated amortisation has
been set off against the cost of goodwill and the revised carrying amount is no
longer amortised.
In conjunction with IAS36 Impairment of Assets, the methodology adopted to test
the carrying amount of goodwill for impairment has also changed. Previously the
group tested goodwill for impairment on a total acquisition basis. The standard
now requires that goodwill be allocated and tested for impairment on a cash
generating unit basis. Applying this basis, the goodwill allocated to the
Cartons UK business has been fully impaired by R112 million and negative
goodwill of R68 million has been taken directly to retained income.
The group elected to early adopt IAS21 The Effects of Changes in Foreign
Exchange Rates as this standard has a direct impact on the accounting treatment
for goodwill following the adoption of IFRS3 Business Combinations.
Goodwill previously denominated in rand that relates to acquisitions whose
functional currency are not rand denominated has been restated to these
respective functional currencies and translated at the closing rate. The impact
on the balance sheet has been a reduction in the carrying amount of goodwill of
R150 million and a similar reduction in the foreign currency translation reserve
in equity.
BLACK ECONOMIC EMPOWERMENT
Satisfactory progress is being made towards the completion of the group"s Black
Economic Empowerment structure.
PROSPECTS
Trading conditions for the remainder of the year are expected to be similar to
the first half. In these circumstances, earnings improvement is unlikely to be
achieved through sales revenue growth and consequently the group has intensified
its cost restructuring programme. The restructuring at Cartons UK will continue
as planned and, the South African operations have commenced a number of
additional cost reduction and rationalisation projects, the cost of which will
impact on earnings in the second half. In addition, the significant
deteriorisation in value of the Zimbabwe dollar is expected to have a negative
effect on the translated contributions from these operations for the full year.
Accordingly the percentage decline in headline earnings per share for the full
year is expected to be greater than that in the first half.
The group is confident of achieving an improved financial performance in 2006.
Declaration of Interim Ordinary Dividend No. 73
Notice is hereby given that an interim ordinary dividend No. 73 of 27.0 cents
per share (2004: 27.0 cents) has been declared in respect of the six months
ended 31 March 2005, payable to shareholders recorded as such in the register at
the close of business on the record date, Friday 8 July 2005. The last day to
trade to participate in the dividend is Friday 1 July 2005. Shares will commence
trading "ex" dividend from Monday 4 July 2005.
The important dates pertaining to this dividend are as follows:
Last day to trade ordinary shares "cum" Friday 1 July 2005
dividend
Ordinary shares trade "ex" dividend Monday 4 July 2005
Record date Friday 8 July 2005
Payment date Monday 11 July 2005
Ordinary share certificates may not be dematerialised or rematerialised between
Monday 4 July 2005 and Friday 8 July 2005, both days inclusive.
On behalf of the board
T Evans GE Bortolan
Chairman Chief Executive Officer 26 May 2005
Non-executive directors:
T Evans (Chairman), PL Campbell*, BP Connellan*, DA Hawton*, MM Katz*, KM
Mokoape*, ML Ndlovu*, MH Visser*, RA Williams*
*Independent
Executive directors:
GE Bortolan (Chief Executive Officer), RP Becker, N Cumming, AS Lang (British),
AM Marthinusen
Secretary: NP O"Brien
Registered office: Share registrars:
Nampak Centre, 114 Dennis Road Computershare Investor
Atholl Gardens, Sandton 2196 Services 2004 (Pty) Limited
South Africa 70 Marshall Street
(PO Box 784324, Sandton 2146 Johannesburg 2001, South Africa
South Africa) (PO Box 61051, Marshalltown 2107
Telephone: +27 11 719 6300 South Africa)
Telephone: +27 11 370 5000
Sponsor:
UBS South Africa (Pty) Limited
www.nampak.com
Supplementary Information
Adjusted segmental Profit from Abnormal Items AC 133 Fair
information operations as value
reported adjustments
2005 2004 2005 2004 2005 2004
Rm Rm Rm Rm Rm Rm
Metals & Glass
Africa 346 325 (1) 4 (3) (23)
Paper
Africa 119 232 9 8 5 (13)
Europe (85) 50 128 21 - -
Plastics
Africa 141 137 (7) (5) (1) (5)
Europe 243 42 (221) (5) - -
NamITech - 253 - (213) - (2)
Group services
Africa 39 13 (5) (5) - -
Europe 17 9 - - - (1)
Total 820 1 061 (97) (195) 1 (44)
Operating Margins
FEC costs profit before before
Adjusted segmental on plant and abnormal abnormal
information equipment items items
2005 2004 2005 2004 2005 2004
Rm Rm Rm Rm % %
Metals & Glass
Africa - 20 342 326 14.8 13.1
Paper
Africa - - 133 227 5.3 8.2
Europe - - 43 71 3.3 5.0
Plastics
Africa - 1 133 128 9.7 9.5
Europe - - 22 37 4.3 4.0
NamITech - - - 38 - 12.0
Group services
Africa - - 34 8
Europe - - 17 8
Total - 21 724 843 9.0 9.2
Basis of calculation
Abnormal items are defined as items of income and expenditure, which do not
arise from normal trading activities or are of such a size, nature or incidence
that their disclosure is relevant to explain the performance for the period.
The fair value adjustments under AC 133 are all calculated using the "mark-to-
market" methodology.
Forward exchange contract costs on fixed assets are calculated as the difference
between the spot rate on the date risks and rewards of ownership on the
underlying transaction pass and the forward rate per the financial instrument.
Date: 26/05/2005 12:31:56 PM Supplied by www.sharenet.co.za
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