To view the PDF file, sign up for a MySharenet subscription.

ILLOVO SUGAR LIMITED - Preliminary Report for the year ended 31 March 2013

Release Date: 27/05/2013 07:05
Code(s): ILV     PDF:  
Wrap Text
Preliminary Report for the year ended 31 March 2013

ILLOVO SUGAR LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1906/000622/06)
Share Code: ILV
ISIN: ZAE000083846
("Illovo" or "the company")

PRELIMINARY REPORT FOR THE YEAR ENDED 31 MARCH 2013

Highlights
-   Sugar production up 14% to 1.746 million tons
-   Operating profit up 41% to R1.9 billion
-   Operating margin up from 14.7% to 17.1%
-   HEPS up 43% to 189.6 cents
-   Total distribution of 95 cents, up by 44%

Quote:

Graham Clark, Managing Director, commented:
"Last year we made progress on many fronts across the business leading to the strong improvement
in our financial performance. We had a record cane crop of 6.475 million tons from our own
operations and sugar production was up 14%, with notable increases in South Africa following the
previous year's drought and in Zambia and Swaziland after the recent factory expansions in those
countries. We also benefitted from favourable domestic and regional pricing during the year. Our
operating profit margin improved significantly from 14.7% to 17.1% despite cost pressures as we
remained focused on operational efficiencies. We continue to invest in the business with the
construction of a customised central warehouse in South Africa to enhance efficiencies yet further
and in an alcohol distillery in Tanzania which is near completion. We expect further positive
momentum across the company in the year ahead."

Enquiries:
Illovo Sugar Limited                                                       031 508 4300
Graham Clark, Managing Director
Mohammed Abdool-Samad, Financial Director
Chris FitzGerald, Group Public Affairs Manager

College Hill                                                               011 447 3030
Nicholas Williams                                                          082 600 2192

Overview
The 2012/13 season has demonstrated the positive benefits from ongoing initiatives around the
group to build our production capacity and enhance operational efficiency. Weather conditions were
generally favourable during the past year and a record cane crop of nearly 6.5 million tons was
produced from our own agricultural operations. Total cane production from independent farmers also
increased, 8.4 million tons having been delivered to our factories during the course of the season.
Recovery from the previous year's drought in South Africa and the benefit of recent factory
expansions around the group, notably in Swaziland and Zambia, as well as improved plant efficiency
and better process recoveries, resulted in the group's sugar production increasing over that of the
previous season by 14% to 1.75 million tons.

Improved sugar availability helped to increase sales volumes by 11% compared to the previous year
and better sales prices were realised in all market segments, yielding an increase of R1.9 billion in
sugar revenue. Despite lower furfural sales, combined revenue from downstream products also
improved year-on-year, resulting in group revenue totalling R11.1 billion, representing an increase of
21%.

Cost control remained effective during the year resulting in the group operating margin increasing
from 14.7% to 17.1% for the period. Group operating profit increased accordingly by 41% to 
R1.9 billion. Although net financing costs increased to R 280 million, reflecting the ongoing cost of
servicing the group's expansion-related debt, interest cover improved compared to the previous year
from 5.5 to 6.8. The effective tax rate for the group increased to 31.6% being negatively impacted by
deferred tax adjustments driven by expansion-related capital allowances not expected to be fully
utilised in Zambia. Headline earnings per share for the year improved by 43% to 189.6 cents and the
return on group net assets increased from 15.9% to 19.7%.

The contributions to operating profit were sugar production 55%, cane growing 40%, downstream
and power generation 5%. Contributions by country were Malawi 47%, Zambia 25%, South Africa
9%, Swaziland 8%, Mozambique 6% and Tanzania 5%.

2012/13 Review
Growing conditions during the past season were generally much improved compared to 2011/12.
Adequate early season rainfall in South Africa supported the significant and ongoing replanting
programme across all cane growing areas and seasonal cane yields were well above the 2011/12
drought-affected results. The total volume of cane supplied to our South African factories increased
by 763 614 tons compared to that of the previous season, as a result of increased cane yields and a
larger area harvested. Elsewhere in the group, an additional 5 233 hectares of land under cane
harvested by ourselves and our growers resulted in group cane supply increasing by a further
480 698 tons compared to the previous season. Cane quality was generally better than the season
before and levels of sucrose content in cane, in particular, were higher in all operations, other than in
Swaziland where wet conditions depressed sucrose production. The latter half of the season was
unseasonably wet in South Africa, which slowed operations and resulted in a premature end to
harvesting and the carrying over of nearly 260 000 tons of cane to be crushed at the commencement
of the 2013/14 season. Approximately 100 000 tons of cane was also carried over in Zambia,
following, the onset of summer rains at the end of last year.

Group sugar production increased by 220 343 tons compared to the previous season, largely driven
by the recovery in South Africa where sugar production rose by 35% year-on-year. In Mozambique,
sugar production fell short of the previous year due to a generally poorer factory performance, while
all other operations recorded increases in sugar production. Credible factory performance was
achieved in all operations other than Mozambique, with highlights being very good mechanical
efficiency in South Africa and Malawi, and the expanded factories in Zambia and Swaziland running
at their new throughput rates. A notable milestone was achieved in Zambia where over 400 000 tons
of sugar was produced for the first time, with final sugar production in Zambia being 403 867 tons.

In excess of 60% of the group's sales volume continues to be sold into domestic markets in the
countries in which the group produces sugar. In 2012/13, this represented 1.07 million tons, sold via
a range of prepacked and bulk industrial and direct consumption sugars in brown and refined sugar
offerings. Sugar sold for direct consumption in Malawi and Zambia is fortified with Vitamin A. Higher
sugar production in South Africa has driven volume growth in the country, while in Zambia improved
economic fundamentals are translating to increased consumer spending power which continues to
drive growth in that market. Low cost imports are negatively impacting market conditions in Tanzania
and South Africa and without effective tariff protection and/or market management, prospects in
these markets remain constrained. Applications to address the level of tariff in South Africa and to
better regulate imports into Tanzania have been lodged with the relevant authorities. In Malawi,
difficult economic conditions and a depreciating local currency have impacted on local market pricing
in that country. Regular price adjustments to match inflation have been implemented throughout the
past year and although local demand has contracted moderately, the market has been fully supplied
and limited tonnages have been released for export by the group.

Meaningful storage and logistics benefits are anticipated in South Africa in the coming year following
the successful completion of a new custom designed central warehouse and distribution facility in
Pietermaritzburg, which will streamline supply to all segments of the South African market at a lower
cost.

Malawi and Zambia continue to supply sugar into large deficit markets in east and central Africa
where these two countries enjoy a geographical advantage over other potential suppliers. Pricing in
these markets was buoyant during 2012/13, reflecting a general shortage in sugar supply and high
inland transport costs. Preferential exports into the European Union and the United States grew
further during the past year. Prices held steady in Euro terms for bulk raw sugar and niche speciality
sugars, including "Fairtrade" sugar, which continued to provide premium prices in these markets.

Group exposure to the world bulk raw sugar market is limited to South Africa from where sugar is
sold via the single desk export marketing function of the South African Sugar Association. Increased
South African sugar production during 2012/13 resulted in a modest increase in world market sugar
exposure, with the Illovo group share amounting to 60 068 tons (2011/12: 23 315 tons), priced at
22.9 US cents per pound. The world sugar market is currently trading lower, below 18 US cents per
pound, on expectations of a growing world sugar surplus.

The rain-affected latter half of the crushing season in South Africa disrupted cane supplies to the
Sezela Mill which supports a downstream plant producing furfural and its derivatives. As a result of
this disruption, 2012/13 furfural production was well below expectation, although diacetyl output was
higher than the previous year. Pricing for furfural products softened during the year as a
consequence of strong Chinese supply to the world market. While our product still commands a
premium for quality, prices were lower than in 2011/12 and are only expected to recover in the
second half of 2013/14 as Chinese inventories run down. The production of potable and denatured
alcohol at our Merebank and Glendale distilleries reached record levels for the season, on the back
of an adequate supply of molasses feedstock which followed the cane crop recovery in South Africa.
Alcohol sales volumes at the start of the new year have generally been as expected and alcohol
pricing has remained firm in the local and export markets.

Construction of the group's new potable alcohol distillery in Tanzania is nearing completion, with
commissioning due in mid-2013. This plant will utilise the entire molasses production of our two
Tanzanian factories and supply high quality potable alcohol into the expanding East African market.
Alcohol production is expected to contribute to the Tanzanian factory's earnings base during 2013/14
and will provide useful diversity to our operations in that country going forward.

Cogeneration of electricity remains a priority across the group, the objective being to become fully
self-sufficient in power for our own requirements and, where attractive, to export electricity into the
national grid. The large commercial cogeneration plant recently commissioned in Swaziland is
operating well and commercial exports to the national grid in Swaziland are presently exceeding
contractual commitments. Limited supply into the national grid has also been achieved in Zambia.

Prospects
The 2013/14 season is expected to reflect further focus on capacity utilisation and productivity across
the group. In addition, prevailing weather conditions have been good, notably in South Africa. The
result should see a further increase in cane production from our own operations and from our
growers, which should underpin a moderate increase in sugar production for 2013/14.

Declining market fundamentals in the world of sugar, including a continued world sugar surplus and
low ocean freight rates, will likely put negative pressure on pricing in the group's exports markets
during the coming year. Currency exchange rates across the group are generally depreciating
against the US Dollar and Euro, the major currency denominations of group exports, which could
provide some relief through the conversion of export proceeds into reporting currency. Local market
pricing is expected to generally follow inflation except in Tanzania where pricing will be governed by
the level of imports in the year.

Further enhancement of the group's cost base is anticipated in the coming year as continuous
improvement initiatives deliver results in the operations. The group's operating margin will likely
come under pressure during the coming year as global sugar prices ease further, and consequently
cost control will remain vital to maintaining these margins. Finance costs are expected to reduce as
strong group cash flow is applied to the reduction of debt and the group's effective tax rate should
normalise at around 30% as deferred tax adjustments are not expected to recur. Exchange rate
volatility will however continue to be a major influence on the conversion of foreign subsidiary profits
into Rand.

Capital expenditure in the coming year will be modest and focussed on supporting performance
improvement and normal plant and machinery replacements. No major new capital expansion
projects are planned for the year, although ethanol and molasses beneficiation opportunities
continue to present themselves in Zambia and Malawi and will be fully evaluated, along with power
cogeneration options during the 2013/14 season. The group continues to evaluate opportunities for
further footprint expansion in Africa, but careful assessment of the risk will remain crucial to any new
opportunity being progressed.

Overall we are confident of another year of progress across the group.

Capital reduction distribution by way of a reduction of Contributed Tax Capital in lieu of
dividend
Notice is hereby given that a final capital reduction distribution by way of a reduction of Contributed
Tax Capital of 61.0 cents per share has been declared, in lieu of a dividend, on the ordinary shares
of the company in respect of the year ended 31 March 2013. This distribution, together with the
interim capital reduction distribution of 34.0 cents per share which was declared on 14 November
2012, makes a total distribution in respect of the year ended 31 March 2013 of 95.0 cents per share.
The directors have determined that this capital reduction distribution will be paid out of qualifying
contributed tax capital as contemplated in the definition of "contributed tax capital" in section 1 of the
Income Tax Act, 1962. As the distribution will be regarded as a return of capital and may have
potential capital gains tax consequences, Illovo shareholders are advised to consult their tax advisors
regarding the impact of the distribution.

In accordance with the settlement procedures of Strate, the company has determined the following
salient dates for the payment of the capital distribution:

Last day to trade cum the capital distribution                 Friday, 28 June 2013
Shares commence trading ex the capital distribution            Monday, 1 July 2013
Record date                                                    Friday, 5 July 2013
Payment of final capital distribution                          Monday, 8 July 2013

Share certificates may not be dematerialised/rematerialised between Monday, 1 July 2013 and
Friday, 5 July 2013, both days inclusive.

Relative to this capital reduction distribution, the directors have confirmed that the company will
satisfy the solvency and liquidity test immediately after completing such distribution.

On behalf of the Board

D G MacLeod           G J Clark                           Mount Edgecombe
Chairman              Managing Director                   24 May 2013

Directors:

D G MacLeod (Chairman)*, G J Clark (Managing Director) (Australian), M H Abdool-Samad,
M I Carr#*, G B Dalgleish, M J Hankinson*, D Konar*, P A Lister#*, P M Madi*, C W N Molope*,
A R Mpungwe (Tanzanian)*, T S Munday*, R N Pike #*, L W Riddle,

# British          * Non-executive

Registered office:

Illovo Sugar Park,
1 Montgomery Drive, Mount Edgecombe,
KwaZulu-Natal, South Africa

Postal address:

PO Box 194, Durban, 4000

Telephone:+27 31 508 4300
Telefax:  +27 31 508 4535
Website:  www.illovosugar.com

Transfer Secretaries:

Link Market Services South Africa (Proprietary) Limited
Rennie House,
13th Floor, 19 Ameshoff Street
Braamfontein, 2001
PO Box 4844, Johannesburg, 2000

Auditors:

Deloitte & Touche

Sponsor:

J.P. Morgan Equities South Africa Proprietary Limited.




ABRIDGED GROUP INCOME STATEMENT
                                                                        Year ended 31 March
                                                              Change       2013        2012
                                                        Notes       %         Rm          Rm
Revenue                                                           21   11 128.9     9 173.2
Operating profit                                                        1 901.0     1 348.8
Dividend income                                                             2.3         3.5
Net financing costs                                        2      14      279.6       244.6
Profit before non-trading items                                         1 623.7     1 107.7
Share of profit from associates                                             0.7         7.2
Material items                                             3                4.6      (163.7)
Profit before taxation                                                  1 629.0       951.2
Taxation                                                                  513.9       344.8
Profit for the year                                                     1 115.1       606.4
Attributable to:  
Shareholders of Illovo Sugar Limited                              98      876.5       443.1
Non-controlling interest                                                  238.6       163.3
                                                                        1 115.1       606.4
Other comprehensive income
Foreign currency translation differences                                 (231.2)      307.8
Adjustments in respect of cash flow hedges, net of tax                      2.1        (2.7)
Actuarial (losses)/gains on post-retirement
  obligations, net of tax                                                 (32.0)        0.6
Hedge of net investment in foreign subsidiaries                           (50.3)      (87.3)
Total comprehensive income for the year                                   803.7       824.8
Attributable to:
Shareholders of Illovo Sugar Limited                                      638.3       631.6
Non-controlling interest                                                  165.4       193.2
                                                                          803.7       824.8
Headline earnings per share 	                 (cents)   4      43      189.6       132.6
Diluted headline earnings per share 	         (cents)                  189.5       132.5
Basic earnings per share 	                 (cents)                  190.5        96.4
Diluted basic earnings per share 	         (cents)                  190.4        96.3
Distribution per share
  (interim-paid; final-declared) 	         (cents)   5      44       95.0        66.0
   
ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
                                                       As at 31 March
                                                      2013         2012
                                            Note          Rm         Rm
ASSETS
Non-current assets                                   7 938.5    6 900.4
Property, plant and equipment                        6 223.4    5 328.0
Cane roots                                           1 260.0    1 216.3
Intangible assets                                      266.1      218.1
Investments and loans                                  131.6      106.3
Deferred tax asset                                      57.4       31.7
Current assets                                       4 635.3    4 510.5
Inventories and factory overhaul                     1 253.7      881.9
Growing cane                                         1 520.4    1 346.7
Trade and other receivables                          1 370.1      877.8
Financial instruments                                   16.9       14.0
Cash and cash equivalents                              474.2    1 390.1

Total assets                                        12 573.8   11 410.9
EQUITY AND LIABILITIES
Total equity                                         6 974.7    6 465.3
Equity holders' interest                             5 968.5    5 562.6
Non-controlling interest                             1 006.2      902.7
Non-current liabilities                              2 413.0    2 741.7
Long-term borrowings                                 1 166.4    1 545.4
Deferred taxation                                      930.1      854.0
Other liabilities                                      316.5      342.3
Current liabilities                                  3 186.1    2 203.9
Short-term borrowings                                1 174.4      568.4
Trade and other payables                             2 001.4    1 629.1
Financial instruments                                   10.3        6.4

Total equity and liabilities                        12 573.8   11 410.9
OTHER SALIENT FEATURES
Operating margin 	                (%)             17.1       14.7
Interest cover 	                    (times)              6.8        5.5
Effective tax rate 	                (%)             31.6       30.3
Net debt:equity ratio                         6         26.8       11.2
Return on net assets 	                (%)             19.7       15.9
Net asset value per share 	    (cents)          1 514.8    1 405.5
Depreciation                                           259.9      239.5
Capital expenditure                                    971.1      449.8
 Expansion capital                                    640.8      198.0
 Replacement capital                                  291.4      239.2
                                                       932.2      437.2
 Expansion of area under cane                          28.4        0.2
 Product registration costs                            10.5       12.4
Capital commitments                                  1 013.6    1 125.9
 Contracted                                           152.7      168.1
 Approved but not contracted                          860.9      957.8
Lease commitments                                      201.7      284.7
Contingent liabilities                                 119.9      175.0

ABRIDGED GROUP STATEMENT OF CASH FLOWS
                                                          Year ended 31 March
                                                            2013         2012
                                                              Rm          Rm

Cash flows from operating and investing activities
Cash operating profit                                    1 567.9     1 348.4
Working capital requirements                              (506.4)     (291.6)
Cash generated from operations                           1 061.5     1 056.8
Replacement capital expenditure                           (291.4)     (239.2)
Financing costs, taxation and distributions               (931.4)     (820.4)
Deferred income                                                       110.0
Net investment in future operations                       (679.7)     (210.6)
Other movements                                             23.4       (58.9)
Net cash outflows before financing activities             (817.6)     (162.3)
Borrowings (repaid)/raised                                 (30.1)      815.2
Other financing activities                                   3.1         1.9
Net (decrease)/increase in cash and cash equivalents      (844.6)      654.8
Cash and cash equivalent at the beginning of the year    1 390.1       717.8
Exchange rate translation                                  (71.3)       17.5
Cash and cash equivalent at the end of the year            474.2     1 390.1

ABRIDGED STATEMENT OF CHANGES IN EQUITY
                                                                            Year ended 31 March
                                                                               2013        2012
                                                                                 Rm          Rm
Share capital and share premium
Balance at the beginning of the year                                        2 489.8     2 791.5
Issue of share capital                                                          3.1         1.9
Transfer to distribution reserve                                             (437.5)     (303.6)
Balance at the end of the year                                              2 055.4     2 489.8
Share-based payments reserve
Balance at the beginning and end of the year                                   13.1        13.1
Non-distributable reserves 
Balance at the beginning of the year                                          155.8       154.0
Realised profit on disposal of property                                                    4.2
Transfer of realised profit on disposal of property to retained earnings      (82.0)          
Transfer of foreign currency translation reserve                              211.7      (190.3)
Release of non-controlling shareholders transactions                          (31.2)          
Total comprehensive income
 Foreign currency translation                                               (167.4)      278.2
 Cash flow hedges                                                             (0.3)       (2.4)
 Hedge of net investment in foreign subsidiaries                             (44.3)      (87.9)
Balance at the end of the year                                                 42.3       155.8
Retained earnings
Balance at the beginning of the year                                        2 706.1     2 076.3
Realised profit on disposal of property                                                   (4.2)
Transfer of realised profit on disposal of property from
  non-distributable reserves                                                   82.0           
Transfer of foreign currency translation reserve                             (211.7)      190.3
Release of non-controlling shareholders transactions                           31.2           
Gain on redemption of preference shares                                       118.9           
Total comprehensive income:
 Profit for the year                                                         876.5       443.1
 Actuarial losses on post-retirement obligations                             (12.9)       (6.7)
 Movement in defined benefit pension plans                                   (13.3)        7.3
Balance at the end of the year                                              3 576.8     2 706.1
Distribution reserve
Balance at the beginning of the year                                          197.8       156.3
Transfer from share premium                                                   437.5       303.6
Distributions paid                                                           (354.4)     (262.1)
Balance at the end of the year                                               280.9        197.8
Equity holders' interest                                                    5 968.5     5 562.6
Non-controlling interest
Balance at the beginning of the year                                          902.7       784.1
Distributions paid                                                           (103.6)     (108.2)
Change in shareholding                                                         41.7        33.6
Total comprehensive income:
 Foreign currency translation                                                (63.8)       29.6
 Hedge of net investment in foreign subsidiary                                (6.0)        0.6
 Cash flow hedges                                                              2.4        (0.3)
 Movement in defined benefit pension plans                                    (5.8)          
 Profit for the year                                                         238.6       163.3
Balance at the end of the year                                              1 006.2       902.7
Total equity                                                                6 974.7     6 465.3

SEGMENTAL ANALYSIS
                                              Year ended            Year ended
                                            31 March 2013        31 March 2012
                                              Rm        %        Rm            %
BUSINESS SEGMENTS
Revenue
Sugar production                         7 610.8       68   6 310.1           69
Cane growing                             2 565.5       23   1 995.9           22
Downstream and co-generation               952.6        9     867.2            9
                                        11 128.9            9 173.2
Operating profit
Sugar production                         1 039.2       55     803.4           59
Cane growing                               762.7       40     398.7           30
Downstream and co-generation                99.1        5     146.7           11
                                         1 901.0            1 348.8
Total assets
Sugar production                         6 191.7       51   5 237.3           53
Cane growing                             4 636.0       39   3 984.0           40
Downstream and co-generation             1 197.6       10     753.8            7
                                        12 025.3            9 975.1
 
Note: Total assets excludes cash and cash equivalents and financial instruments.

GEOGRAPHICAL SEGMENTS
Revenue
Malawi                                   1 829.8       16   1 686.8          18
Zambia                                   2 519.8       23   2 208.3          24
South Africa                             4 229.5       38   3 129.2          34
Swaziland                                1 314.9       12     989.1          11
Mozambique                                 536.4        5     457.7           5
Tanzania                                   698.5        6     702.1           8
                                        11 128.9            9 173.2
Operating profit
Malawi                                     899.3       47     530.9           39
Zambia                                     478.8       25     445.8           33
South Africa                               164.3        9      89.2            7
Swaziland                                  155.8        8      78.4            6
Mozambique                                 109.1        6      59.9            4
Tanzania                                    93.7        5     144.6           11
                                         1 901.0            1 348.8

NOTES TO THE FINANCIAL STATEMENTS

1. Basis of preparation
  These abridged consolidated financial statements have been prepared under the
  supervision of Mr M H Abdool-Samad CA(SA), the group Financial Director.

  The abridged financial statements are prepared in accordance with the requirements
  of the JSE Limited Listings Requirements for abridged reports and the requirements of the
  Companies Act applicable to summary financial statements. The Listings Requirements are
  for the abridged financial statements to be prepared in accordance with the conceptual
  framework and the measurement and recognition requirements of International Financial
  Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the
  Accounting Practices Committee, and also, as a minimum, to contain the information
  required by IAS 34 Interim Financial Reporting. The accounting policies applied in the
  preparation of the consolidated financial statements from which the summary consolidated
  financial statements were derived are in terms of International Financial Reporting
  Standards and are consistent with the accounting policies applied in the preparation of the
  previous consolidated annual financial statements except for the adoption of the revised
  IFRS 7 Financial Instruments Disclosures and IAS 12 Income Taxes. The adoption of these
  revised standards has had no impact on the financial statements.

                                                                       Year ended 31 March
                                                                         2013          2012
                                                                           Rm           Rm
2.   Net financing costs
     Interest paid                                                      324.8        274.4
     Less: capitalised                                                  (21.7)           
                                                                        303.1        274.4
     Interest received                                                  (36.2)       (20.7)
     Foreign exchange losses/(gains)                                     12.7         (9.1)
                                                                        279.6        244.6
3.   Material items
     Profit on disposal of property                                       1.5          9.8
     Impairment of investment in Mali project                                      (173.5)
     Profit on disposal of previously impaired assets                     3.1            
     Material profit/(loss) before taxation                               4.6       (163.7)
     Taxation                                                                        (0.3)
     Non-controlling interest                                                        (2.1)
     Material profit/(loss) attributable to shareholders of
     Illovo Sugar Limited                                                 4.6       (166.1)

                                                                       Year ended 31 March
                                                                         2013         2012
                                                                           Rm           Rm
4.    Determination of headline earnings
      Profit attributable to shareholders                               876.5        443.1
      Adjusted for:
       Profit on disposal of property                                   (1.5)        (9.8)
       Loss on disposal of plant and equipment                                       1.7
       Impairment of investment in Mali project                                    173.5
       Profit on disposal of previously impaired assets                 (3.1)           
      Total tax effect of adjustments                                                (0.2)
      Total non-controlling interest effect of adjustments                0.6          1.5
      Headline earnings                                                 872.5        609.8
      Number of shares in issue 	                    (millions)  460.4        460.0
      Weighted average number of shares on which
        headline earnings per share are based 	            (millions)  460.2        459.9
      Headline earnings per share 	                       (cents)  189.6        132.6

5.    Distribution per share
      The distribution per share of 95.0 cents (2012: 66.0 cents) includes an interim capital
      distribution of 34.0 cents paid out of share premium and a final capital distribution of
      61.0 cents declared out of share premium.

6.    Net debt: equity ratio
      The net debt:equity ratio is calculated as interest-bearing liabilities, net of cash and cash
      equivalents, divided by total equity.

     Audit Opinion
     The audit report of the independent auditor on the abridged consolidated financial
     statements, which were derived from the audited consolidated financial statements, on
     which an unmodified opinion was expressed, is available for inspection at the company's
     registered office together with the summary consolidated financial statements identified in
     the auditor's report. We have not audited future financial performance and expectations
     expressed by management included in the commentary in the accompanying financial
     statements and accordingly do not express an opinion thereon. The auditor's report does
     not necessarily cover all of the information contained in this report. Shareholders are
     therefore advised that in order to obtain a full understanding of the nature of the auditor's
     work they should obtain a copy of that report together with the accompanying financial
     information from the registered office of the company.


Date: 27/05/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story