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NAMPAK LIMITED - Nampak Interim Report and Dividend Declaration for the six months ended 31 March 2013

Release Date: 28/05/2013 14:51
Code(s): NPK     PDF:  
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Nampak Interim Report and Dividend Declaration for the six months ended 31 March 2013

Nampak Limited
Registration number 1968/008070/06
Incorporated in the Republic of South Africa
Share code: NPK     
ISIN: ZAE000071676
Interim report and dividend declaration for the six months ended 31 March 2013

Highlights
- Trading profit up 6%
- Operating profit up 13%
- HEPS up 3%
- EPS up 19%
- Profits from rest of Africa up 39%
- Including exports, rest of Africa accounted for 28% of group trading profit
- Return on equity 24%

Group performance                                                      
Revenue grew by 7% with South Africa increasing by 4%, the rest of Africa by 19% and the United Kingdom by 13%.
                                                      
Trading profit increased by 6% and the trading margin held steady at 10.1% compared to 10.2% in 2012. Trading profit 
in the rest of Africa increased from R142 million to R197 million with strong performances by Angola and Zambia. 
In South Africa, trading profits were lower due mainly to reduced contributions from the glass, food and the diversified 
can businesses as well as lower profits from the paper and flexible segment. Price reductions were agreed in beverage cans 
and glass to secure long-term supply contracts. In the United Kingdom trading profit was similar to last year in pound terms 
but due to the weaker rand exchange rate it was stronger in rands. 
                                                     
Operating profit increased by 13% and was enhanced by a gain on the revaluation of the acquisition of the Elopak joint 
venture (R23 million) and a gain on the reconsolidation of the Zimbabwean entities (R88 million). The operating entities in 
Zimbabwe were reconsolidated effective 1 October 2012 and contributed R67 million of revenue and R22 million of profit after 
tax during the period under review. 
                                                     
Earnings per share increased by 19%. Headline earnings per share increased by 3% to 108.8 cents as a result of the 
improvement in operating profit.
                                                      
Net debt to equity increased to 32% from 23% in September last year mainly as a result of increased capital expenditure and 
the increase in working capital. Net debt increased to R2.1 billion at the end of March 2013 from R1.4 billion at the end of 
September 2012. This reflects a 13.7 times EBITDA: Interest cover.  
                                                    
The effective tax rate was 20.5% compared to 24.9% in 2012. The gain on the revaluation of the joint venture acquired and the 
gain on the reconsolidation of the Zimbabwe operations, neither of which attracted tax, contributed to the lower effective 
tax rate. 
                                                     
The interim gross dividend has been increased by 4% to 42.0 cents per share. 
                                                     
Total capital expenditure amounted to R631 million compared to R461 million in 2012 with R325 million spent on the new aluminium 
beverage can line at Springs. 
                                                     
Investment in working capital increased by R720 million. The increase in trade receivables was due to the March 2013 month-end 
falling on the Easter long weekend. Trade and other payables declined due to payments to creditors in respect of abnormally high 
levels of stock builds and capital equipment purchases in the previous year.
                                                      
Geographic review                                                      
                        Revenue     Trading profit*     Margin           
                    2013     2012    2013    2012    2013    2012   
                      Rm       Rm      Rm      Rm       %       %                                                
South Africa       7 200    6 915     570     711     7.9    10.3   
Rest of Africa     1 237    1 036     197     142    15.9    13.7   
United Kingdom       942      832      73      63     7.7     7.6   
Other                                 111     (22)                  
Total              9 379    8 783     951     894    10.1    10.2   
*Operating profit before abnormal items

South Africa
Revenue increased by 4%, trading profit declined by 20% and the margin decreased to 7.9% from 10.3%. This was
primarily due to lower selling prices agreed in the metals and glass businesses to secure long-term supply contracts. These
long-term contracts have enabled the group to proceed with major expansions of capacity in beverage cans and glass bottles.

Rest of Africa
Trading profit increased by 39% on continued good results from Angola and the rest of Africa. Kenya benefitted from a
good pineapple crop. Margins in the rest of Africa improved to 15.9% compared to 13.7% in 2012. Including exports, the
trading profit generated in the rest of Africa accounted for 28% of group profits.

United Kingdom
Trading profit was similar to last year at £5.2 million as a result lower volumes following the closure of some plants
by the business largest customer offset by good cost control. In rand terms trading profit increased by 16%.

Other
This segment comprises corporate services as well as property administration. Trading profit increased due to the
inclusion of the profit arising from the revaluation of financial instruments amounting to R9 million (loss in 2012 of
R53 million).
 
Segmental review 
Metals and Glass                                                       
                       Revenue      Trading profit*      Margin            
                    2013     2012    2013    2012    2013     2012   
                      Rm       Rm      Rm      Rm       %        %                                                    
South Africa       3 146    2 865     347     407    11.0     14.2   
Rest of Africa       815      640     104      55    12.8      8.6   
Total              3 961    3 505     451     462    11.4     13.2   
*Operating profit before abnormal items

South Africa
Good demand for beverage cans for beer, ciders, alcoholic fruit beverages and energy drinks continued during the
period. The trading profit and margin of the business were adversely affected by lower average selling prices which were
agreed as part of long-term supply contracts. The conversion of beverage cans from tinplate to aluminium is progressing as
planned with the new aluminium can manufacturing line at Springs being commissioned during May.

Sales of food cans were affected by weak consumer demand as well as increased competition which impacted margins.
Sales of fish cans were substantially higher than last year but fruit and vegetable can sales were lower. The weak consumer
spending also had a marked effect on sales of aerosol, paint and polish cans. The furnace fire at Arcelor Mittal in
February required the urgent importation of more expensive tinplate to maintain supply continuity. 

There was weaker demand for glass bottles, mainly driven by exports of bulk wine and some consumer pack changes in the
beer and soft drink markets where cans and PET bottles experienced growth. Given the weaker than expected demand for
glass bottles, the planned commissioning of the third furnace announced in January has been delayed until the middle of
2014. The contracts that have been concluded with major customers for the majority of the third furnace capacity also
contributed to margin pressure in this period.

Rest of Africa
There was strong demand for beverage cans in Angola and this together with the lifting of the consumption tax in March
last year contributed to a significant improvement in trading profit. 
In Nigeria, weak demand and ongoing political problems in the north of the country resulted in lower volumes. A good
pineapple crop in Kenya contributed to higher sales of food cans.

Paper and Flexibles                                                     
                      Revenue      Trading profit*     Margin           
                   2013     2012    2013    2012    2013    2012   
                     Rm       Rm      Rm      Rm       %       %                                                 
South Africa      2 015    2 052      17      84     0.8     4.1   
Rest of Africa      422      396      93      87    22.0    22.0   
Total             2 437    2 448     110     171     4.5     7.0   
*Operating profit before abnormal items

South Africa
This segment was most affected by the downturn in consumer spending as folding cartons and flexible packaging are used
for many consumer goods. This also impacted on sales of the associated corrugated boxes. 

There was strong demand for corrugated boxes in the agricultural sector but this was more than offset by poor demand
in the commercial sector.

The flexible business was adversely affected by the weak consumer environment. 

The cartons and labels business performed poorly due to costs of integrating the Pinetown operation into the Denver
factory as well as the loss of market share in the Western Cape. Overall volumes were also down on reduced consumer
spending.

The demand for cement sacks was well down on last year exacerbated by increased bulk sales of cement. Export sales to
Angola were lower as a result of competition from Brazilian suppliers and exports of tea sacks to Kenya were lower due
to the imposition of import duties.

Rest of Africa
Due to destocking in the first quarter by the major customer, cigarette carton sales in Nigeria were down on last year
but are anticipated to recover in the second half of the year. Nigeria is also expected to benefit from increased sales
of cigarette cartons in the greater West African region.

The Zambian business continued to perform well assisted by strong export sales of crowns to the DRC and Malawi as well
as good demand for sugar sacks, plastic crates and sorghum beer cartons. Malawi achieved a substantial increase in
trading profit on improved demand from the commercial corrugated sector.
Zimbabwe achieved a satisfactory profit.

Plastics                                                           
                       Revenue     Trading profit*     Margin           
                   2013     2012    2013    2012    2013    2012   
                     Rm       Rm      Rm      Rm       %       %                                                 
South Africa      1 229    1 192     163     168    13.3    14.1   
United Kingdom      942      832      73      63     7.7     7.6   
Total             2 171    2 024     236     231    10.9    11.4   
*Operating profit before abnormal items

South Africa
Revenue increased by 3% and trading profit decreased by 3%.

New legislation in Botswana regulating the distribution of sorghum beer resulted in lower export sales of sorghum beer
cartons. Sales of lower-margin PET pre-forms increased at the expense of PET bottles and contributed to the reduction
in the trading profit. 

There was weak demand for plastic bottles for milk and juice. Elopak was 100% owned effective from 1 November 2012.

Sales of large-drums were lower due to reduced offtake from customers who use these drums for the export of alcohol.
There was moderate demand for beverage crates. Production problems at the Olifantsfontein factory impacted negatively on
the Megapak business. These have been satisfactorily resolved.

Sales of plastic closures for carbonated soft drinks improved but sales of higher-value closures such as those used on
sports-drink bottles were lower. Reduced demand from food customers resulted in lower sales of metal twist-off
closures.

United Kingdom
Trading profit was similar to last year at £5.2 million as a result of lower volumes following the closure of some
plants by the business largest customer offset by good cost control. In rand terms trading profit increased by16%. The
Nampak patented Infini lightweight-bottle increased its market penetration.

Tissue                                                         
                   Revenue     Trading profit*     Margin           
                2012    2011    2012    2011    2012    2011   
                  Rm      Rm      Rm      Rm       %       %                                              
South Africa     810     806      43      52     5.3     6.5   


*Operating profit before abnormal items

The toilet tissue market remained highly competitive compounded by very little volume growth. Diaper sales were lower
as a result of competitive pricing. There have been changes in senior management and costs across the business are being
reduced.

Funding
The group has successfully raised US$175 million in the United States Private Placement market. The tenure of the loan
ranges between 7 and 10 years and is fixed at extremely competitive rates. The proceeds will be used to fund the
groups African expansion strategy.

Outlook
The rest of Africa is expected to continue generating good results but the downturn in consumer spending in South
Africa is anticipated to continue. The steady performance from the United Kingdom should continue. Overall, we believe the
group is strategically well positioned for ongoing growth, especially in Africa.

Retirement of CEO
The board of directors of Nampak has agreed to the request of the CEO, Andrew Marshall, to retire in March 2014, by which 
time he will have completed five years as CEO.

The board wishes to thank Mr Marshall for his valuable contribution to the group. During his tenure the groups
expansion into the rest of Africa was accelerated, under-performing businesses were closed or sold and profitability improved
significantly.

In line with Nampaks succession planning policy, internal and external candidates will be considered for the CEO
position and a further announcement on a successor will be made in due course.

Declaration of ordinary dividend number 82
Notice is hereby given that a gross interim ordinary dividend number 82 of 42.0 cents per share (2012: 40.5 cents per
share) has been declared in respect of the six months ended 31 March 2013, payable to shareholders recorded as such in
the register of the company at the close of business on the record date, Friday, 5 July 2013. The last day to trade to
participate in the dividend is Friday, 28 June 2013. Shares will commence trading ex dividend from Monday, 1 July 2013.

The important dates pertaining to this dividend are as follows:
Last day to trade ordinary shares cum dividend            Friday, 28 June 2013
Ordinary shares trade ex dividend                          Monday, 1 July 2013
Record date                                                  Friday, 5 July 2013
Payment date                                                 Monday, 8 July 2013
Ordinary share certificates may not be dematerialised or rematerialised between Monday, 1 July 2013 and Friday, 5 July
2013, both days inclusive.

In accordance with the JSE Listings Requirements, the following additional information is disclosed:
The dividend has been declared from income reserves;
The dividend withholding tax rate is 15%;
The company will utilise the credits in terms of secondary tax on companies (STC). The STC credits utilised as part
of this declaration amount to R495 099, being 0.07098 cents per share;
The net local dividend amount is 35.71065 cents per share for shareholders liable to pay dividends tax and 42.0 cents
per share for shareholders exempt from paying dividends tax;
The issued number of ordinary shares at the declaration date is 697 483 750; and
Nampak Limiteds tax number is 9875081714.

On behalf of the board

TT Mboweni            AB Marshall
Chairman              Chief executive officer            
28 May 2013

Condensed group statement of comprehensive income
for the six months ended 31 March 2013
                                                               Unaudited    Unaudited                   Audited   
                                                                6 months     6 months                      year   
                                                                   ended        ended                     ended   
                                                                31 March     31 March                   30 Sept   
                                                                    2013         2012      Change          2012   
                                                      Notes           Rm           Rm           %            Rm                                                                                                                 
Revenue                                                          9 378.7      8 783.1         6.8      17 639.1   
Operating profit                                          2      1 058.4        934.3        13.3       1 793.7   
Finance costs                                                      121.8         91.6                     217.7   
Finance income                                                      17.1         26.9                      48.5   
Income from investments                                              5.4          5.3                       5.3   
Share of profit of associates                                       20.6          4.5                       8.3   
Profit before tax                                                  979.7        879.4        11.4       1 638.1   
Taxation                                                           200.9        219.2                     446.3   
Profit for the period                                              778.8        660.2        18.0       1 191.8   
Other comprehensive income/(expense) 
for the period, net of tax                                                 
Exchange differences on translation 
of foreign operations                                              237.9       (101.2)                    143.4   
Net actuarial losses from retirement 
benefit obligations                                                    -            -                    (159.8)   
Gains/(losses) on cash flow hedges                                   5.4         (7.8)                     (4.5)   
Other comprehensive income/(expense) 
for the period, net of tax                                         243.3       (109.0)      323.2         (20.9)   
Total comprehensive income for the period                        1 022.1        551.2                   1 170.9   
Profit attributable to:                                                 
Owners of Nampak Limited                                           775.2        669.4        15.8       1 207.1   
Non-controlling interest in subsidiaries                             3.6         (9.2)                    (15.3)   
                                                                   778.8        660.2                   1 191.8   
Total comprehensive income/(expense) 
attributable to:                                                 
Owners of Nampak Limited                                         1 023.0        557.7                   1 187.2   
Non-controlling interest in subsidiaries                            (0.9)        (6.5)                    (16.3)   
                                                                 1 022.1        551.2                   1 170.9   
Basic earnings per share (cents)                                   134.8        113.2        19.1         204.0   
Fully diluted earnings per share (cents)                           128.1        109.1        17.4         197.4   
Headline earnings per ordinary share (cents)                       108.8        106.0         2.6         200.8   
Fully diluted headline earnings per share (cents)                  103.6        102.3         1.3         194.4   
Dividend per share (cents)                                          42.0         40.5         3.7         129.5   


Condensed group statement of financial position
as at 31 March 2013
                                                                        Unaudited     Unaudited       Audited   
                                                                         6 months      6 months          year   
                                                                            ended         ended         ended   
                                                                         31 March      31 March       30 Sept   
                                                                             2013          2012          2012   
                                                              Notes            Rm            Rm            Rm                                                                                                                   
ASSETS                                                      
Non-current assets                                                      
Property. plant and equipment and investment property                     7 036.3       6 218.6       6 612.1   
Goodwill and other intangible assets                                        808.5         698.0         715.1   
Other non-current financial assets and associates                           274.7         158.9         153.2   
Deferred tax assets                                                          75.9          24.6          65.5   
                                                                          8 195.4       7 100.1       7 545.9   
Current assets                                                      
Inventories                                                               3 393.9       3 051.7       3 336.3   
Trade receivables and other current assets                                2 819.6       2 600.5       2 557.0   
Tax assets                                                                    2.1           2.2           2.9   
Bank balances, deposits and cash                                  6       2 083.5       1 902.2       1 780.0   
                                                                          8 299.1       7 556.6       7 676.2   
Assets classified as held for sale                                              -             -          27.9   
Total assets                                                             16 494.5      14 656.7      15 250.0   
EQUITY AND LIABILITIES                                                      
Capital and reserves                                                      
Share capital                                                                35.9          35.8          35.9   
Capital reserves                                                           (704.4)       (737.5)       (736.6)   
Other reserves                                                              (77.8)       (446.2)       (349.9)   
Retained earnings                                                         7 544.7       7 024.3       7 321.5   
Shareholders' equity                                                      6 798.4       5 876.4       6 270.9   
Non-controlling interest                                                    (55.4)        (44.7)        (54.5)   
Total equity                                                              6 743.0       5 831.7       6 216.4   
Non-current liabilities                                                      
Loans and borrowings                                                      1 609.3       1 579.6       1 594.9   
Retirement benefit obligation                                             1 637.3       1 363.2       1 618.3   
Other non-current liabilities                                                14.5           8.0          13.7   
Deferred tax liabilities                                                    730.8         494.6         650.1   
                                                                          3 991.9       3 445.4       3 877.0   
Current liabilities                                                      
Trade payables, provisions and other current liabilities                  3 017.6       3 375.6       3 471.7   
Bank overdrafts                                                   6       1 813.5       1 863.2       1 575.7   
Loans and borrowings                                                        806.8          24.4          18.1   
Tax liabilities                                                             121.7         116.4          91.1   
                                                                          5 759.6       5 379.6       5 156.6   
Total equity and liabilities                                             16 494.5      14 656.7      15 250.0   


Condensed group statement of cash flows
for the six months ended 31 March 2013
                                                                            Unaudited     Unaudited       Audited   
                                                                             6 months      6 months          year   
                                                                                ended         ended         ended   
                                                                             31 March      31 March       30 Sept   
                                                                                 2013          2012          2012   
                                                                   Notes           Rm            Rm            Rm   
                                                                                                                    
Cash generated from operations before working capital changes                 1 327.4       1 256.0       2 497.1   
Working capital changes                                                        (719.7)       (291.9)       (339.6)   
Cash generated from operations                                                  607.7         964.1       2 157.5   
Net interest paid                                                              (105.6)        (52.1)       (154.2)   
Income from investments                                                           5.4           5.3           5.3   
Tax paid                                                                       (165.0)       (202.1)       (417.2)   
Replacement capital expenditure                                                (495.4)       (342.6)       (778.7)   
Cash (utilised in)/retained from operations                                    (152.9)        372.6         812.7   
Dividends paid                                                                 (527.7)       (180.3)       (421.1)   
Cash distributions paid                                                             -        (257.1)       (257.1)   
Net cash (utilised in)/retained from operating activities                      (680.6)        (64.8)        134.5   
Expansion capital expenditure                                                  (136.0)       (118.8)       (303.7)   
Acquisition of businesses                                              3       (110.4)       (976.3)       (977.5)   
Other investing activities                                                       78.4          12.1          21.5   
Net cash utilised before financing activities                                  (848.6)     (1 147.8)     (1 125.2)   
Net cash generated from financing activities                                    823.3         441.5         465.4   
Net decrease in cash and cash equivalents                                       (25.3)       (706.3)       (659.8)   
Cash and cash equivalents at beginning of period                                204.3         797.9         797.9   
Translation of cash in foreign subsidiaries                                      91.0         (52.6)         66.2   
Net cash and cash equivalents at end of period                         6        270.0          39.0         204.3   


Group statement of changes in equity
for the six months ended 31 March 2013
                                                                          Unaudited     Unaudited       Audited   
                                                                           6 months      6 months          year   
                                                                              ended         ended         ended   
                                                                           31 March      31 March       30 Sept   
                                                                               2013          2012          2012   
                                                                                 Rm            Rm            Rm                                                                                                     
Opening balance                                                             6 216.4       5 694.9       5 694.9   
Net shares issued during the period                                            22.6          15.2          21.8   
Share-based payment expense                                                     9.6           7.8          19.2   
Share grants exercised                                                            -             -         (16.7)   
Share of movement in associate's non-distributable reserve                        -             -          (0.4)   
Transfer from hedging reserve to related assets                                   -             -           1.7   
Gain on available-for-sale financial assets                                       -             -           3.2   
Total comprehensive income for the period                                   1 022.1         551.2       1 170.9   
Dividends paid                                                               (527.7)       (180.3)       (421.1)   
Cash distributions from share premium                                             -        (257.1)       (257.1)   
Closing balance                                                             6 743.0       5 831.7       6 216.4   
Comprising:                                                      
Share capital                                                                  35.9          35.8          35.9   
Capital reserves                                                             (704.4)       (737.5)       (736.6)   
Share premium                                                                  40.2          11.1          17.6   
Treasury shares                                                            (1 104.3)     (1 104.3)     (1 104.3)   
Share-based payments reserve                                                  359.7         355.7         350.1   
Other reserves                                                                (77.8)       (446.2)       (349.9)   
Foreign currency translation reserve                                          510.4          19.7         268.0   
Hyperinflation capital adjustment                                                 -         (24.3)        (24.3)   
Financial instruments hedging reserve                                          11.0           0.6           5.6   
Recognised actuarial losses                                                  (578.1)       (405.4)       (578.1)   
Share of non-distributable reserves in associates                               0.9           1.3           0.9   
Available-for-sale financial assets revaluation reserve                       (22.2)        (38.3)        (22.2)   
Other                                                                           0.2           0.2           0.2   
Retained earnings                                                           7 544.7       7 024.3       7 321.5   
Shareholders' equity                                                        6 798.4       5 876.4       6 270.9   
Non-controlling interest                                                      (55.4)        (44.7)        (54.5)   
Total equity                                                                6 743.0       5 831.7       6 216.4   


Notes
for the six months ended 31 March 2013
                                                                          Unaudited     Unaudited       Audited   
                                                                           6 months     6 months           year   
                                                                              ended        ended          ended   
                                                                           31 March     31 March        30 Sept   
                                                                               2013         2012           2012   
                                                                                 Rm           Rm             Rm   

 1. Basis of preparation and accounting policies                                             
    The condensed interim consolidated financial statements have
    been prepared in accordance with the framework concept, 
    measurement and recognition criteria of IFRS and in accordance 
    with the Listings Requirements of the JSE Limited, International 
    Financial Reporting Standards (IFRS) including the information 
    required by IAS34: Interim Financial Reporting, the AC 500 
    standards as issued by the Accounting Practices Board and the 
    Companies Act No. 71 of 2008 (as amended).                                             
    The accounting policies applied are consistent with those 
    applied for the groups 2012 annual financial statements.     
    The interim financial statements have been prepared under the 
    supervision of MS Bottyan CA(SA).
	
 2. Included in operating profit are:                                             
    Depreciation                                                             355.7         297.7          631.3   
    Amortisation                                                              18.9           6.6           28.4   
    Reconciliation of operating profit and trading profit                                             
    Operating profit                                                       1 058.4         934.3        1 793.7   
    Abnormal (gains)/losses*                                                (107.0)        (40.2)         (21.2)   
     Retrenchment and restructuring costs                                      4.0           3.8           10.9   
     Net impairment losses on investments, property, plant 
     and equipment, goodwill and other intangible assets                       0.7           0.2            9.5   
     Cash flow hedge ineffectiveness                                          (0.1)            -            3.1   
     Net profit on disposal of property                                       (0.8)         (0.2)          (0.2)   
     Net profit on disposal of businesses and other investments                  -             -           (0.5)   
     Gain on revaluation of original interest in joint venture acquired      (23.2)        (44.0)         (44.0)   
     Gain on reconsolidation of Zimbabwe entities                            (87.6)            -              -   
    Trading profit                                                           951.4         894.1        1 772.5   
    * Abnormal (gains)/losses are defined as gains and losses 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 gain/loss on 
      financial instruments, which was previously included in abnormal 
      items, has now been reclassified to trading profit due to the 
      related gain or loss incurred on the procurement of materials 
      being included in trading profit. Comparatives have also been 
      restated.   
	  
 3. Acquisition of the remaining interest in joint venture                                             
    In line with the groups strategy to grow its core businesses, 
    the group acquired with effect from 1 November 2012 the remaining 
    50% interest in Elopak SA (Pty) Ltd (Elopak) which was held by 
    Elopak AS for an amount of R116.2 million paid in cash.                                             
    In the previous year, the group acquired with effect from 
    1 March 2012 the remaining 50% interest in 
    Nampak Wiegand Glass (Pty) Limited (Glass) which was held by 
    Wiegand Glass (SA) (Pty) Limited for an amount of R974.5 million 
    paid in cash. 
	
    Assets acquired and liabilities recognised at the date of acquisition:                                             
    Current assets                                             
    Inventories                                                               13.5          86.6           86.7   
    Trade and other receivables                                               20.8          78.6           78.6   
    Bank and cash                                                              5.8             -              -   
    Non-current assets                                             
    Property, plant and equipment                                             23.2         456.9          491.1   
    Intangibles                                                               43.9           0.2          237.5   
    Loans                                                                      2.3             -              -   
    Currrent liabilities                                             
    Trade and other payables                                                  (7.8)        (67.2)         (67.2)   
    Bank overdraft                                                               -          (3.0)          (3.0)   
    Non-current liabilities                                             
    Loans                                                                        -         (17.8)         (17.8)   
    Retirement benefit obligation                                                -          (6.9)          (6.9)   
    Deferred tax                                                             (16.2)        (30.6)        (101.6)   
                                                                              85.5         496.8          697.4   
    The initial accounting for the acquisition of Glass had only been 
    provisionally determined at the end of March 2012 as the necessary 
    market valuations and other calculations had not been finalised. 
    The assets acquired and liabilities recognised were therefore based 
    on their carrying values as at 1 March 2012, which were provisionally 
    determined as being the best estimates of their fair values. Subsequent 
    to March, an intangible relating to customer relationships was 
    identified. 
	
    Goodwill arising on acquisition                                             
    Consideration paid in cash                                               116.2         973.3          974.5   
    Plus: net gain on revaluation of originally held interest                 23.2          44.0           44.0   
    Less: fair value of identifiable net assets acquired                     (85.5)       (496.8)        (697.4)   
    Goodwill arising on acquisition                                           53.9         520.5          321.1   
    Goodwill arose on the respective acquisitions of the remaining 
    interests in Elopak and Glass as the cost of each combination included 
    a control premium. The consideration paid for each combination also 
    included the expected benefits of revenue growth and future 
    profitability.
	
    Net cash outflow on acquisition                                             
    Consideration paid in cash                                               116.2         973.3          974.5   
    (Deduct)/add: bank and cash balances/bank overdraft acquired              (5.8)          3.0            3.0   
    Net cash outflow on acquisition                                          110.4         976.3          977.5   
    
    Impact of the acquisition on the results of the group (current year)                                             
    Included in the group net revenue and profit after tax for the period 
    is R42.4 million and R4.1 million respectively which is attributable 
    to the remaining interest acquired in Elopak.                                             
    Had Elopak been acquired with effect 1 October 2012, the net revenue 
    of the group would have been R9 387.6 million, while the profit after 
    tax would have been R779.9 million.  
	
 4. Reconsolidation of the Zimbabwe entities                                             
    The group reconsolidated the Zimbabwe operating entities effective 
    1 October 2012. These entities consist of 
    CarnaudMetalbox Zimbabwe Ltd (CMB), a wholly owned subsidiary, 
    and two associates, Megapak Zimbabwe (Pvt) Ltd (49% interest) 
    (Megapak Zim) and Hunyani Holdings Ltd (38.91% interest) 
    (Hunyani). The entities had previously been deconsolidated 
    in 2007 due to Nampak Ltd having lost control over these entities. 
    The circumstances that led to this loss of control were the threat 
    of indigenisation and pricing legislation, restrictions on the 
    repatriation of funds from these entities to their holding 
    companies (outside Zimbabwe) and the hyperinflationary environment 
    in which these entities were operating. It is believed that these 
    circumstances no longer exist or their impact has been reduced 
    significantly such that reconsolidating these entities reflects a 
    more accurate position of the performance of the group. On 
    reconsolidation, the equity of CMB was valued at US$0.5 million, 
    while the equity of the associates, Megapak Zim and Hunyani, were 
    valued at US$9.5 million and US$10.3 million respectively.
	
    Assets acquired and liabilities recognised for CMB at the date of 
    its reconsolidation:                                             
    Current assets                                             
    Inventories                                                               29.6             -              -   
    Trade and other receivables                                               21.8             -              -   
    Bank and cash                                                              6.0             -              -   
    Non-current assets                                             
    Property, plant and equipment                                             38.9             -              -   
    Currrent liabilities                                             
    Trade and other payables                                                 (69.9)             -             -   
    Non-current liabilities                                             
    Loans                                                                    (11.1)             -             -   
    Deferred tax                                                              (2.5)             -             -   
                                                                              12.8              -             -   
                                             
    The initial accounting for the reconsolidation of CMB has only been 
    provisionally determined at the end of March 2013 as the necessary 
    market valuations and other calculations have not been finalised. 
    The assets acquired and liabilities recognised are therefore based on 
    their carrying values as at 1 October 2012, which were provisionally 
    determined as being the best estimates of their fair value.                                             
    The gain on the reconsolidation of the Zimbabwe interests includes a 
    gain of R8.6 million attributable to the fair value of the original 
    interest in CMB being less than the carrying value of its net 
    identifiable assets.  
	
    Impact of the reconsolidation on the results of the group 
    (current year)                                             
    Net revenue for the group includes R66.9 million attributable to CMB, 
    while profit after tax for the group includes R0.5 million attributable 
    to CMB, as well as R21.0 million attributable to the associates, 
    Megapak Zim and Hunyani.
	
 5. Determination of headline earnings                                             
    Profit attributable to equity holders of the company for the period      775.2          669.4       1 207.1   
    Less: preference dividend                                                    -              -          (0.1)   
    Basic earnings                                                           775.2          669.4       1 207.0   
    Adjusted for :                                             
    Net impairment losses on investments, property, plant and equipment, 
    goodwill and other intangible assets                                       0.7            0.2           9.5   
    Net profit on disposal of businesses and other investments                   -              -          (0.5)   
    Net (profit)/loss on disposal of property, plant and equipment and 
    intangible assets                                                        (26.9)           2.3          26.5   
    Gain on revaluation of original interest in joint venture acquired       (23.2)         (44.0)        (44.0)   
    Gain on reconsolidation of Zimbabwe entities                             (87.6)             -             -   
    Tax effects and non-controlling interest                                   7.2           (0.7)        (10.1)   
    Headline earnings for the period                                         645.4          627.2       1 188.4   
                                                                                                                                                                                                                                                                                     
 6. Cash and cash equivalents                                             
    Bank balances, deposits and cash                                       2 083.5        1 902.2       1 780.0   
    Bank overdrafts                                                       (1 813.5)      (1 863.2)     (1 575.7)   
                                                                             270.0           39.0         204.3   
 
 7. Supplementary information                                             
    Capital expenditure                                                      631.4          461.4       1 084.2   
    - expansion                                                              136.0          118.8         303.7   
    - replacement                                                            495.0         342.1         778.7   
    - intangibles                                                              0.4           0.5           1.8   
    Capital commitments                                                    2 338.3       1 380.2       1 093.7   
    - contracted                                                             766.5         376.9         406.3   
    - approved not contracted                                              1 571.8       1 003.3         687.4   
    Lease commitments                                                        257.7         139.6         184.1   
    - land and buildings                                                     139.4          90.4         136.1   
    - other                                                                  118.3          49.2          48.0   
    Contingent liabilities                                                     5.6          63.7          48.8   
    - customer claims and guarantees                                           5.6           8.4          12.6   
    - tax contingent liabilities                                                 -          55.3          36.2   
                                                                                      
 8. Share statistics                                             
    Ordinary shares in issue (000)                                         697 484       696 260       696 712   
    Ordinary shares in issue - net of treasury shares (000)                593 187       591 962       592 415   
    Weighted average number of ordinary shares on which 
    headline earnings and basic earnings per share are based (000)         593 001       591 646       591 750   
    Weighted average number of ordinary shares on which 
    diluted headline earnings and diluted basic earnings 
    per share are based (000)                                              630 324       622 472       622 488   
                                                                                                                                                                                                                                                                                     
 9. Additional disclosures                                             
    EBITDA*                                                                1 433.7       1 238.8       2 462.9   
    Net gearing                                                                32%           27%           23%   
    Net debt: EBITDA*                                                    0.7 times     0.6 times     0.6 times   
    Interest cover **                                                    9.3 times    14.0 times    10.6 times   
    EBITDA: Interest cover*                                             13.9 times    19.1 times    14.6 times   
    Total liabilities: equity                                                 145%          151%          145%   
    Return on equity                                                           24%           24%           20%   
    Return on net assets                                                       19%           21%           20%   
    Average net working capital: net revenue                                   15%           12%           13%   
    Net worth per ordinary share (cents)***                                  1 137           985         1 049   
    Tangible net worth per ordinary share (cents)***                         1 000           867           929   
    * EBITDA is calculated before net impairments                                             
    ** Comparative ratios have been restated due to the fair 
	value gain/loss on financial instruments, which was previously 
	included in abnormal items, having now been reclassified to 
	trading profit, as disclosed in note 2                                             
    *** Calculated on ordinary shares in issue - net of 
	treasury shares    
	
10. Translation reserve movement                                             
    Due to the weakening of the rand, a translation gain of 
    R237.9 million (2012: R101.2 million loss) was recognised for 
    the period. The closing exchange rate at 31 March was 
    £1: 14.05 (2012: £1: 12.23). 
	
11. Related party transactions                                             
    Group companies, in the ordinary course of business, entered 
    into various purchase and sale transactions with associates, 
    joint ventures and other related parties. The effect of these 
    transactions is included in the financial performance and results 
    of the group.                                             
  
Company profile
Nampak is Africas largest packaging manufacturer with operations in Angola, Botswana, Ethiopia, Kenya, Malawi,
Mozambique, Namibia, Nigeria, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.
 
Nampak is the largest supplier of plastic bottles to the dairy industry in the United Kingdom. 

Collection and recycling of all types of used packaging is of the utmost importance and is a core strategic activity.

The groups world-class research and development facility based in Cape Town provides technical expertise and support
to Nampaks businesses as well as to its customers. 

Nampak has a level 3 BBBEE rating as certified by independent ratings agency, Empowerdex.

The corporate office is based in Sandton, South Africa.

Administration

Independent non-executive directors:
TT Mboweni (Chairman), RC Andersen, RJ Khoza, PM Madi, VN Magwentshu, DC Moephuli, CWN Molope, RV Smither,  
PM Surgey.

Executive directors:
AB Marshall (Chief executive officer), G Griffiths (Chief financial officer), FV Tshiqi 
(Group human resources director).

Secretary:
NP OBrien.

Registered office:
Nampak Centre, 114 Dennis Road, Atholl Gardens, Sandton, 2196, South Africa
(PO Box 784324 Sandton 2146 South Africa)
Telephone +27 11 719 6300

Share registrar:
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001, South Africa
(PO Box 61051, Marshalltown, 2107, South Africa)
Telephone +27 11 370 5000

Sponsor:
UBS South Africa (Pty) Limited

Website: www.nampak.com

Disclaimer
We may make statements that are not historical facts and relate to analyses and other information based on forecasts
of future results and estimates of amounts not yet determinable. These are forward-looking statements as defined in the
U.S. Private Securities Litigation Reform Act of 1995. Words such as believe,anticipate, expect, intend, seek,
will, plan, could, may,endeavour and project and similar expressions are intended to identify such
forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking
statements involve inherent risks and uncertainties, both general and specific, and there are risks that predictions,
forecasts, projections and other forward-looking statements will not be achieved.

If one or more of these risks materialise, or should underlying assumptions prove incorrect, actual results may be
very different from those anticipated. The factors that could cause our actual results to differ materially from the plans,
objectives, expectations, estimates and intentions in such forward-looking statements are discussed in each years
annual report. Forward-looking statements apply only as of the date on which they are made, and we do not undertake other
than in terms of the Listings Requirements of the JSE Limited, to update or revise any statement, whether as a result of
new information, future events or otherwise. All profit forecasts published in this report are unaudited. Investors are
cautioned not to place undue reliance on any forward-looking statements contained herein.
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