Wrap Text
Unaudited interim results for the six months ended 30 June 2012 and cash dividend declaration
Mpact Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 2004/025229/06)
Income tax number: 9003862175
JSE share code: MPT JSE ISIN: ZAE000156501
("Mpact" or "the Group" or "the Company")
Unaudited interim results
for the six months ended 30 June 2012
and cash dividend declaration
Highlights
Revenue of R3.2 billion up 11.7% excluding Paperlink
Underlying operating profit up 8.4% to R222 million excluding Paperlink
Basic underlying earnings per share increased to 63.7 cents
(June 2011: 4.3 cents)
Return on Capital Employed (ROCE) of 14.1%
(June 2011: 13.4%)
Gearing down to 36% (June 2011: 96%)
Interim gross cash dividend declared of 20 cents per share
(June 2011: nil cents per share)
COMPANY PROFILE
Mpact is a significant Southern African packaging Group in paper and plastics packaging products.
The Paper business is integrated across the recycled paper-based corrugated packaging value chain
and comprises three divisions being recycling, paper manufacturing and corrugated. The Plastics
business manufactures rigid plastic packaging such as bottles, containers and preforms for the fast
moving consumer goods markets; styrene trays and plastic jumbo bins. The Group employs approximately
3,700 people in 30 operations in South Africa, Namibia, Mozambique and Zimbabwe. Mpact has a Level 4
B-BBEE rating as certified by independent ratings agency, Empowerdex.
COMMENTARY
The directors of Mpact are pleased to present a solid set of results reflecting a good performance by
the Group in challenging market conditions in the first six months of the financial period to 30 June 2012.
The results for the period reflect a continuation of the Group's strategy of the modernisation and
optimisation of Mpact's existing operations and a focus on developing new business opportunities.
Tough market conditions in the Paper business resulted in the business absorbing part of its
increased operating costs. Mpact's revenue growth was achieved through market share gains, particularly
against imports and improved demand from the agricultural sector.
GROUP PERFORMANCE
Revenue of R3,210 million was 11.7% higher than the comparable prior period excluding Paperlink
(6.8% as reported), due to increased sales volumes and higher average selling prices. The Company sold its
paper merchant business, Paperlink at the end of March 2011. Underlying operating profit of R222 million
was 8.4% higher than the comparable prior period, excluding Paperlink (12.4% as reported). Return on
capital employed for the period improved to 14.1% (June 2011: 13.4%). The increase in underlying earnings
per share from 4.3 cents to 63.7 cents is attributable to improved operating profit and lower financing
costs.
Paper business
Revenue was 10.5% higher than the prior period at R2,387 million. Sales volume increased versus the
comparable prior period due to improved agricultural sector demand and market share gains against
imports of packaging papers attributable to the weaker rand. Underlying operating profit of R231 million
was 5.0% higher than the comparable prior period profit due to higher average selling prices which were
partially offset by increased costs.
Plastics business
Revenue of R823 million was 15.2% higher than the comparable prior period, of which approximately 12.2%
is attributable to volume growth and higher average selling prices and 3% to the PET tray business acquired
in February 2012. Volume growth is attributable mainly to improved sales of bulk bins to the agricultural
market and new business in the PET preforms, bottles and closures sector. Underlying operating profit
of R37 million was 64.9% higher than the comparable prior period profit. Good progress was made
on the modernisation and reorganisation projects undertaken over the past 12 months.
Special items
In the six months ended 30 June 2012, special items amounted to R5.4 million in respect of a settlement
charge relating to the defined benefit pension plan (June 2011: R5.4 million related to listing transaction
costs).
Net finance costs
Net finance costs of R64 million were lower than the comparable prior period by 65.5% as a result of the
debt restructuring which took place on 5 July 2011 prior to listing on the JSE on 11 July 2011.
Tax
The effective tax rate of 31.4% (June 2011: 31.9%), was higher than the normal company income tax rate of
28% mainly due to interest not deductible for tax purposes.
Earnings per share
Basic earnings and headline earnings per ordinary share for the six months ended 30 June 2012 were
61.3 cents and 61.2 cents, respectively, compared to 1.0 cent and 0.8 cent per share, respectively, for the
six months ended 30 June 2011. Underlying earnings per share increased from 4.3 cents to 63.7 cents over
the same period.
Net debt
Net debt at 30 June 2012 was R1,382 million, an increase of R75 million from 31 December 2011, due
to year-end working capital timing differences. The Company paid its maiden dividend of R65.6 million on
30 April 2012. Net debt is substantially lower in relation to the comparable prior period due to the capital
restructuring prior to listing.
Cash dividend
The Board has declared an interim gross cash dividend of 20 cents per ordinary share payable on
8 October 2012. In terms of the new Dividends Tax effective from 1 April 2012, the dividend has been
declared from income reserves; the dividend withholding tax rate is 15%. Mpact has no STC credits. Net
local dividend amount is 17 cents per share for shareholders liable to pay Dividends Tax and 20 cents per
share for shareholders exempt from paying Dividends Tax. The number of shares in issue at the date of
declaration is 163,575,656.
The salient dates for the dividend are as follows:
Last day to trade to receive a dividend Friday, 28 September 2012
Shares commence trading "ex" dividend Monday, 1 October 2012
Record date Friday, 5 October 2012
Payment date Monday, 8 October 2012
Share certificates may not be dematerialised or rematerialised between Monday, 1 October 2012 and
Friday, 5 October 2012, both days inclusive.
OUTLOOK
Although increased demand from the agricultural sector and the displacement of imported packaging
paper is encouraging, the marginal growth in non-agricultural sectors evident in the first half of the year
remains a concern across all product sectors.
Nevertheless Mpact continues to be well positioned within the sectors it operates and will look for
opportunities to entrench itself as South Africa's leading paper and plastics packaging producer.
Change in directorate
Brett Clark was appointed to the Board on 1 June 2012 and to the position of Chief Financial Officer with
effect from 1 July 2012.
On 30 June 2012 Les Leong retired from the Board and as Chief Financial Officer of Mpact. The Board
wishes to thank Les for his invaluable contribution towards the success of Mpact and particularly the
demerger from Mondi and listing on the JSE in 2011.
AJ Phillips BW Strong
Chairman Chief Executive Officer
4 September 2012
Directors:
Independent Non-Executive:
AJ Phillips (Chairman), NP Dongwana, NB Langa-Royds, TDA Ross, AM Thompson
Executive:
BW Strong (Chief Executive Officer), BDV Clark (Chief Financial Officer)
Company secretary:
MN Sepuru
Registered office:
4th Floor, No. 3 Melrose Boulevard, Melrose Arch, 2196
(Postnet Suite #179, Private Bag X1, Melrose Arch, 2076)
Transfer secretaries:
Link Market Services South Africa (Proprietary) Limited
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, 2001
(PO Box 4844, Johannesburg, 2000, South Africa)
Sponsor:
Rand Merchant Bank (a division of FirstRand Bank Limited)
1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196
(PO Box 786273, Sandton, 2146)
Condensed consolidated statement of financial position
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 June 2012 30 June 2011 31 December 2011
Note Rm Rm Rm
ASSETS
Non-current assets 3,125.0 3,107.2 3,121.5
Goodwill and other intangible assets 1,053.2 1,080.5 1,064.8
Property, plant and equipment 1,956.9 1,921.7 1,935.1
Other non-current financial assets and
investment in associates 104.6 71.0 106.3
Deferred tax assets 10.3 34.0 15.3
Current assets 2,446.3 2,225.8 2,483.7
Inventories 718.4 730.7 729.3
Trade and other receivables 1,436.7 1,270.1 1,332.3
Cash and cash equivalents 291.2 225.0 422.1
Total assets 5,571.3 5,333.0 5,605.2
EQUITY AND LIABILITIES
Capital and reserves
Stated capital 9 2,334.1 244.3 2,334.1
Other reserves 26.3 (83.0) (22.5)
Retained earnings/(accumulated loss) 23.6 (55.6) (10.5)
Equity attributable to equity holders of Mpact 2,384.0 105.7 2,301.1
Non-controlling interests in subsidiaries 84.2 77.4 110.9
Total equity 2,468.2 183.1 2,412.0
Non-current liabilities 1,292.8 3,919.6 1,308.2
Long-term borrowings 10 1,124.9 3,777.9 1,151.2
Retirement benefit obligations 60.5 69.2 58.9
Deferred taxation liabilities 88.3 12.4 61.1
Other non-current liabilities 19.1 60.1 37.0
Current liabilities 1,810.3 1,230.3 1,885.0
Short-term borrowings 10 548.3 142.8 577.9
Trade and other payables and provisions 1,252.3 1,075.1 1,298.0
Current tax liabilities 9.7 12.4 9.1
Total equity and liabilities 5,571.3 5,333.0 5,605.2
Condensed consolidated statement of comprehensive income
(Unaudited)
Six months ended 30 June 2012
Rm
Before Special After
special items special
Note items (note 6) items
Revenue 4 3,209.8 3,209.8
Cost of sales (1,944.8) (1,944.8)
Gross margin 1,265.0 1,265.0
Administration and other operating
expenditure (1,042.7) (5.4) (1,048.1)
Operating profit 5 222.3 (5.4) 216.9
Profit on disposal of investments
Share of associates' profit 2.2 2.2
Total profit from operations and associates 224.5 (5.4) 219.1
Net finance costs (63.7) (63.7)
Finance costs 7 (71.5) (71.5)
Investment income 7.8 7.8
Profit/(loss) before tax 160.8 (5.4) 155.4
Tax (charge)/credit (50.3) 1.5 (48.8)
Profit/(loss) for the period from
continuing operations 110.5 (3.9) 106.6
Other comprehensive income/(loss),
net of taxation 0.3
Effect of cash flow hedges
Actuarial (losses)/gains and surplus
restrictions on post-retirement
benefit schemes
Exchange differences on translation
of foreign operations 0.3
Cash flow hedge reserve recycled
through profit and loss
Taxation on other comprehensive income
Total comprehensive income 106.9
Profit attributable to:
Equity holders of Mpact 100.6
Non-controlling interests in subsidiaries 6.0
Profit for the period 106.6
Comprehensive income attributable to:
Equity holders of Mpact 100.9
Non-controlling interests in subsidiaries 6.0
Total comprehensive income 106.9
Earnings per share (EPS) attributable
to equity holders of Mpact 8
Basic EPS (cents) 61.3
Diluted EPS (cents) 61.3
(Unaudited) (Audited)
Six months ended 30 June 2011 Year ended 31 December 2011
Rm Rm
Before Special After Before Special After
special items special special items special
items (note 6) items items (note 6) items
3,006.3 3,006.3 6,281.0 6,281.0
(1,829.9) (1,829.9) (3,775.5) (3,775.5)
1,176.4 1,176.4 2,505.5 2,505.5
(978.7) (5.4) (984.1) (1,989.0) (53.1) (2,042.1)
197.7 (5.4) 192.3 516.5 (53.1) 463.4
0.3 0.3
1.6 1.6 2.3 2.3
199.3 (5.4) 193.9 518.8 (52.8) 466.0
(184.8) (184.8) (256.3) (34.3) (290.6)
(200.7) (200.7) (284.7) (34.3) (319.0)
15.9 15.9 28.4 28.4
14.5 (5.4) 9.1 262.5 (87.1) 175.4
(2.9) (2.9) (76.1) 8.4 (67.7)
11.6 (5.4) 6.2 186.4 (78.7) 107.7
(1.3) 41.6
3.7 4.1
(5.8) 28.4
0.2 1.6
23.1
0.6 (15.6)
4.9 149.3
1.7 90.1
4.5 17.6
6.2 107.7
0.4 131.4
4.5 17.9
4.9 149.3
1.0 54.9
1.0 54.9
Condensed consolidated statement of changes in equity
Share-based Cash flow
Stated payments hedge
capital reserves reserves
Rm Rm Rm
Balance 1 January 2011 (audited) 244.3 12.1 (19.6)
Total comprehensive income 2.7
Issue of shares under employee share scheme (0.6)
Share scheme charges for the period 3.8
Dividends paid to non-controlling shareholders
Reclassification (0.4)
Contribution paid to Mondi share incentive scheme (6.4)
Balance at 30 June 2011 (unaudited) 244.3 8.5 (16.9)
Total comprehensive income 16.9
Issue of shares 2,089.8
Demerger arrangements (15.5)
Share scheme charges for the period 8.5
Dividends paid to non-controlling shareholders
Reclassification 0.3
Change in foreign subsidiary functional currency
Increase in shareholding of subsidiary
Increase in non-controlling interest in a subsidiary
Balance at 31 December 2011 (audited) 2,334.1 1.8
Dividends paid
Total comprehensive income
Decrease in non-controlling interest and put option exercised
Share scheme charges for the period 2.7
Dividends paid to non-controlling shareholders
Balance at 30 June 2012 (unaudited) 2,334.1 4.5
Post- Retained Total
retirement earnings/ attributable to Non-
benefits Other (accumulated equity holders controlling Total
reserves reserves^ loss) of Mpact interests equity
Rm Rm Rm Rm Rm Rm
(3.3) (67.3) (58.3) 107.9 73.2 181.1
(4.2) 0.2 1.7 0.4 4.5 4.9
0.6
3.8 3.8
(0.3) (0.3)
0.4
(6.4) (6.4)
(7.5) (67.1) (55.6) 105.7 77.4 183.1
24.6 1.1 88.4 131.0 13.4 144.4
2,089.8 2,089.8
(15.9) (31.4) (31.4)
8.5 8.5
(1.2) (1.2)
(0.3)
24.6 (25.9) (1.3) (1.3)
(1.2) (1.2) (2.4) (3.6)
23.7 23.7
17.1 (41.4) (10.5) 2,301.1 110.9 2,412.0
(65.6) (65.6) (65.6)
0.3 100.6 100.9 6.0 106.9
45.8 (0.9) 44.9 (29.7) 15.2
2.7 2.7
(3.0) (3.0)
17.1 4.7 23.6 2,384.0 84.2 2,468.2
^ Other reserves consist of the option to equity holder reserves, revaluation reserves and foreign currency translation reserves.
Condensed consolidated statement of cash flows
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2012 2011 2011
Rm Rm Rm
Operating cash flows before movements in working capital 386.8 342.4 765.0
Net (increase)/decrease in working capital (161.8) (109.4) 48.1
Cash generated from operations 225.0 233.0 813.1
Taxation paid (16.0) (5.5) (23.6)
Dividends received from associates 1.4 - -
Net cash inflows from operating activities 210.4 227.5 789.5
Investment in property, plant and equipment (165.7) (167.0) (337.4)
Other investing activities (1.2) 90.5 82.2
Net cash outflows from investing activities (166.9) (76.5) (255.2)
Issue of shares - 2,089.8
Net (repayment of)/proceeds from borrowings (34.8) 184.9 (2,021.8)
Interest paid (43.1) (189.5) (269.8)
Dividends paid to external shareholders (65.6) - -
Other financing activities (25.4) (17.2) (21.4)
Net cash outflows from financing activities (168.9) (21.8) (223.2)
Net (decrease)/increase in cash and cash equivalents (125.4) 129.2 311.1
Cash and cash equivalents at beginning of the period^ 406.9 95.8 95.8
Cash and cash equivalents at end of the period^ 281.5 225.0 406.9
^ Cash and cash equivalents net of overdrafts.
Notes
1. Basis of preparation
The condensed financial information has been prepared in accordance with the framework concepts and the
measurement and recognition requirements of International Financial Reporting Standards ("IFRS") of the International
Accounting Standards Board, the AC 500 standards as issued by the Accounting Practices Board, and is in compliance
with IAS 34: Interim Financial Reporting, and the requirements of the Companies Act of South Africa. The report has
been prepared using accounting policies that comply with IFRS which are consistent with those applied in the financial
statements for the year ended 31 December 2011. The preparation of the Group's consolidated results for the half-year
ended 30 June 2012 was supervised by the Chief Financial Officer, BDV Clark, CA(SA). These results are unaudited.
2. Accounting policies
The accounting policies and methods of computation used are consistent with those applied in the preparation of
the annual financial statements for the year ended 31 December 2011, except for the change in internal cost
allocations referred to in note 4 below.
The following revised accounting standard, which had no significant impact on the Group, was adopted in the current
period:
IAS 12: Income Taxes.
3. Seasonality
Seasonal effects in the Group's markets have historically resulted in higher turnover and operating profits for the
second half, when compared to the first half.
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 2012 30 June 2011 31 December 2011
Rm Rm Rm
4. Group segment analysis
Revenue
Paper 2,394.4 2,169.4 4,591.2
Plastics 823.0 714.5 1,577.0
Corporate and other business(1) 131.8 131.8
3,217.4 3,015.7 6,300.0
Less: Inter-segment revenue (7.6) (9.4) (19.0)
Total revenue 3,209.8 3,006.3 6,281.0
Operating profit(2)
Paper 230.8 244.6 560.3
Plastics 37.1 29.5 113.9
Corporate and other business(1) (45.6) (76.4) (157.7)
Segment total 222.3 197.7 516.5
Special items (note 6) (5.4) (5.4) (87.1)
Share of associates profit 2.2 1.6 2.3
Net finance cost (excluding special financing) (63.7) (184.8) (256.3)
Profit before tax 155.4 9.1 175.4
Assets
Paper 2,797.7 2,712.7 2,743.6
Plastics 1,168.1 1,078.1 1,120.9
Corporate and other business(3) 1,605.5 1,542.2 1,740.7
Total assets 5,571.3 5,333.0 5,605.2
1 includes Paperlink, the paper merchant business sold at the end of March 2011.
2 in the current period the internal cost re-allocation basis between the Paper and Plastics businesses and the Corporate
office was changed to provide a more meaningful representation of each segment's performance. Had this change
been effected in the prior year, the operating profit for the Paper business would have been R219.8 million for the period
ended 30 June 2011 (31 December 2011: R510.7 million), and operating profit for the Plastics business would have been
R22.5 million for the period ended 30 June 2011 (31 December 2011: R100.0 million). Corporate cost for the same period
would have decreased as a result of the re-allocation.
3 includes goodwill and other intangible assets.
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 2012 30 June 2011 31 December 2011
Rm Rm Rm
5. Operating profit
Included in operating profit are:
Amortisation of intangible assets 11.6 12.0 24.1
Depreciation 151.5 145.9 299.3
6. Special items
Listing transaction costs 5.4 46.3
Special finance costs 34.3
Demerger arrangements 6.8
Profit on disposal of part investment in associate (0.3)
Defined benefit pension plan settlement charge 5.4
5.4 5.4 87.1
7. Finance costs
Bank and other borrowings 68.8 191.1 266.0
Defined benefit arrangements 2.7 9.6 18.7
Special finance costs 34.3
71.5 200.7 319.0
8. Earnings per share Cents Cents Cents
Earnings per share (EPS)
Basic EPS 61.3 1.0 54.9
Diluted EPS 61.3 1.0 54.9
Underlying earnings per share(1)
Basic underlying EPS 63.7 4.3 102.9
Diluted underlying EPS 63.6 4.3 102.8
Headline earnings per share(2)
Basic headline EPS 61.2 0.8 54.3
Diluted headline EPS 61.1 0.8 54.2
1 Underlying EPS excludes the impact of special items.
2 The presentation of headline EPS is mandated under the JSE Listings Requirements. Headline earnings has been
calculated in accordance with Circular 3/2009, 'Headline Earnings', as issued by The South African Institute of Chartered
Accountants.
The calculation of headline earnings, based on basic earnings is as follows:
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 2012 30 June 2011 31 December 2011
Rm Rm Rm
Profit for the period attributable to
equity holders of Mpact 100.6 1.7 90.1
Special items (see note 6) 5.4 5.4 87.1
Related tax (1.5) (8.4)
Underlying earnings for the period 104.5 7.1 168.8
Special items to be included in headline earnings (5.4) (5.4) (87.4)
(Profit) on disposal of tangible and intangible assets (0.4) (0.5) (1.1)
Related tax 1.7 0.1 8.7
Headline earnings for the period 100.4 1.3 89.0
Number of Number of Number of
shares shares shares
Basic number of shares outstanding(1) 164,046,476 164,046,476 164,046,476
Effect of dilutive potential ordinary shares 173,484 173,484
Diluted number of ordinary shares outstanding(2) 164,219,960 164,046,476 164,219,960
1 As at 30 June 2011 and 31 December 2011 the number of shares used in the calculation of earnings per share was
164,046,476 ordinary shares, which represented the aggregate number of shares listed on 11 July 2011.
2 Diluted EPS is calculated by adjusting the weighted average number of ordinary shares in issue, on the assumption of
conversion of all potentially dilutive ordinary shares.
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 2012 30 June 2011 31 December 2011
Rm Rm Rm
9. Stated capital
Ordinary
Balance at beginning of the period
(1 January 2011: 159,950 shares of R0.001 each)
(1 January 2012: 164,046,476 shares of no par value) 2,334.1
Conversion to shares of no par value 244.3 244.3
Issue of share capital of no par value 2,089.8
Balance at end of period
(30 June 2012 and 31 December 2011: 164,046,476
shares with no par value) 2,334.1 2,334.1
(30 June 2011: 23,192,750 shares of no par value) 244.3
Share premium
Balance at beginning of the period 244.3 244.3
Conversion to shares of no par value (244.3) (244.3)
Total issued stated capital 2,334.1 244.3 2,334.1
10. Borrowings
Bank borrowings 1,100.0 1,014.7 1,100.0
Shareholder loans 9.8 2,740.8 32.0
Finance lease liability 15.1 22.4 19.2
Long-term borrowings 1,124.9 3,777.9 1,151.2
Short-term borrowings and short-term portion
of long-term borrowings 548.3 142.8 577.9
Total borrowings 1,673.2 3,920.7 1,729.1
The Company's borrowing powers are not restricted. In the current year Mpact restructured its funding facilities by
sub-dividing its current banking facility into smaller facilities. There have been no changes to the overall terms of the
banking facilities.
11. Businesses combination
On 1 February 2012 the Group acquired a PET tray business as a going concern for R8 million.
12. Retirement benefit
In November 2011 the trustees of the defined benefit pension plan in South Africa, with agreement from the
participating pensioners and employees, resolved to wind up the fund subject to regulatory approval, which was
obtained in January 2012. Mpact Limited will receive a cash reimbursement of the pension surplus. An amount of
R21.3 million relating to the surplus is reflected under non-current assets and a settlement charge of R5.4 million is
recognised as a special item in the statement of comprehensive income.
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2012 2011 2011
Rm Rm Rm
13. Capital commitments
Contracted capital commitments 102.5 63.1 51.5
Approved capital commitments 66.5 79.7 20.9
Capital commitments 169.0 142.8 72.4
These commitments will be met from existing cash resources and borrowing facilities available to the Group.
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2012 2011 2011
Rm Rm Rm
14. Contingent liabilities 26.5 13.0 8.6
15. Net asset value per share
Asset value per share is disclosed in accordance with
the JSE Listings Requirements. Net asset value per
share is defined as net assets divided by the number
of ordinary shares in issue as at the period-end.
Net asset value per share (cents) 1,504.6 111.6 1,470.3
16. Related parties
Transactions between the Company and its respective subsidiaries, which are related parties, have been eliminated on
consolidation.
The Group and its subsidiaries, in the ordinary course of business, enter into various sales, purchases and service
transactions with associates and others in which the Group has a material interest. These transactions are under terms
that are no less favourable than those arranged with third parties. These transactions in total are not significant.
There have been no significant changes to the related parties in this interim reporting period.
17. Post-balance sheet events
The following post-balance sheet events occurred, that have no impact on the Group's reported financial position
as at 30 June 2012:
On 13 July 2012 Mpact completed the repurchase of 470,820 shares from its shareholders as a result of an odd-lot
offer and specific offer.
In July 2012 Mpact entered into a four-year interest rate swap to hedge R400 million of its floating rate debt at a fixed
rate of 7.58%.
Disclaimer
This document including, without limitation, those statements concerning the demand
outlook, expansion projects and its capital resources and expenditure, may be considered to
be forward-looking statements. By their nature, forward-looking statements involve risk and
uncertainty and although Mpact believes that the expectations reflected in such forward-
looking statements are reasonable, no assurance can be given that such expectations
will prove to have been correct. Accordingly, results could differ materially from those
set out in the forward-looking statements as a result of, among other factors, changes in
economic and market conditions, success of business and operating initiatives, changes in
the regulatory environment and other government action and business and operational
risk management. While Mpact has taken reasonable care to ensure the accuracy of the
information presented, Mpact accepts no responsibility for any consequential, indirect,
special or incidental damages, whether foreseeable or unforeseeable, based on claims
arising out of misrepresentation or negligence arising in connection with a forward-looking
statement. This document is not intended to contain any profit forecasts or profit estimates.
Mpact Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 2004/025229/06)
Income tax number: 9003862175
JSE share code: MPT JSE ISIN: ZAE000156501
("Mpact" or "the Group" or "the Company")
www.mpact.co.za
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