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NAMPAK LIMITED - Audited Group Results and Dividend Declaration for the year ended 30 September 2013

Release Date: 21/11/2013 12:46
Code(s): NPK     PDF:  
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Audited Group Results and Dividend Declaration for the year ended 30 September 2013

Nampak Limited
Registration number 1968/008070/06
Incorporated in the Republic of South Africa
Share code: NPK  
ISIN: ZAE000071676
AUDITED GROUP RESULTS AND DIVIDEND DECLARATION FOR THE YEAR ENDED 30 SEPTEMBER 2013


Highlights
- Trading profit in the rest of Africa up 60%
- Rest of Africa including exports now 36% of group trading profits
- Operating profit from continuing operations up 8%
- HEPS from continuing operations up 8,2%
- Dividend per share up 8%
- Net gearing 22%
- Acquisition of Alucan beverage can operation in Nigeria for US$301 million
- Option to acquire a leading rigid plastic manufacturer in Nigeria
- Second beverage can line to be installed in Angola at a cost of US$100 million


Group performance
Headline earnings per share from continuing operations rose by 8.2% to 217.5 cents from 201.0 cents as a result of 
the improvement in operating profit and a reduction in the effective tax rate.

Operating profit from continuing operations increased by 8% largely as a result of a 60% increase in profits from 
the rest of Africa. Trading profit from the rest of Africa increased to R506 million from R316 million due primarily
to the Angolan beverage can operation. The group trading margin at 10.5% was marginally lower than last year.

Net finance costs increased to R220 million as a result of the receipt at the end of May 2013 of $175 million of 
funds raised in the United States private placement market. These funds were raised for the acquisition of Alucan in 
Nigeria. Net debt to equity decreased to 22% from 23% and net debt increased marginally to R1.6 billion from 
R1.4 billion in September 2012.  

The effective tax rate was 22.1% compared to 27.3% in 2012 and was favourably impacted by government incentives in 
Angola and Zambia, gains from the reconsolidation of the Zimbabwean businesses, the revaluation of the original 
interest in Elopak and lower tax rates in jurisdictions outside South Africa.             

The final dividend has been increased by 10% to 98.0 cents per share making a total of 140.0 cents for the year.

Total capital expenditure amounted to R1.5 billion compared to R1.1 billion in 2012, with R479 million spent on a new 
aluminium beverage can line and the conversion to aluminium of the tinplate beverage can lines at Springs. A further 
R95 million was invested in a new warehouse at the Springs operation and R161 million was spent on the third glass furnace.

Excluding foreign exchange translation differences, working capital increased by R248 million which was lower than last year
and a significant improvement from the level at the half year. Inventories were well-controlled and the increase was mainly 
due to an increase in trade receivables. 

Segmental review (continuing operations)                                                          
                            Revenue         Trading profit*       Margin           
                        2013      2012      2013      2012     2013    2012   
                          Rm        Rm        Rm        Rm        %       %   
South Africa          13 607    12 764     1 139     1 334      8.4    10.5   
Rest of Africa         2 751     2 087       506       316     18.4    15.1   
United Kingdom         1 938     1 679       162       124      8.4     7.4   
Corporate services                           109       (2)                    
Total                 18 296    16 530     1 916     1 772     10.5    10.7   
*Operating profit before abnormal items

South Africa
Trading profit decreased by 15% and the margin declined to 8.4%. This was partly due to lower selling prices agreed in
the metals and glass businesses to secure long-term supply contracts as well as to lower food can and glass bottle
demand. The margins in the paper, flexibles and plastics businesses also came under pressure from weak demand.

Rest of Africa
Trading profit increased by 60% mainly due to increased contributions from Angola which operated at full capacity for
most of the year and Kenya which benefitted from a good pineapple crop. Zambia continued to perform well. Margins in the
rest of Africa increased to 18.4% compared to 15.1% in 2012.

United Kingdom
Trading profit increased by 14% to £11.2 million with costs well-controlled and revenue marginally higher than last
year. The increase in rand terms was 31%.

Corporate Services
The trading profit for the year includes property rental income partly offset by the cost of corporate costs. Trading
profit increased as a result of a saving in property maintenance and a gain on the fair value of financial instruments
compared to a loss in 2012. 

Metals and Glass                                                                                                                        
                      Revenue       Trading profit*      Margin           
                   2013     2012     2013    2012     2013    2012   
                     Rm       Rm       Rm      Rm        %       %   
South Africa      6 456    5 878      677     789     10.5    13.4   
Rest of Africa    1 746    1 216      293     103     16.8     8.5   
Total             8 202    7 094      970     892     11.8    12.6   
*Operating profit before abnormal items

South Africa
There was good demand for beverage cans in all sectors with the exception of carbonated soft drinks. The increased
volumes offset the impact of lower average selling prices agreed as part of long-term supply contracts. The conversion of
beverage cans from tinplate to aluminium progressed well with a new aluminium manufacturing line installed and
commissioned at the Springs factory.

Food can sales in almost every category were down, partly due to weak consumer spending. Fish catches were affected by
inclement weather off the Cape coast whilst fruit pickings were affected by industrial action and poor crop-yields.
There was moderate demand for aerosol and other cans.

The overall market for glass bottles declined and was impacted by increased exports of wine in bulk and the ongoing
shift away from glass to cans and PET bottles. Some beer bottle business was lost to a competitor and this, together with
lower selling prices agreed as part of long-term supply agreements, contributed to a reduction in margin. Long-term
supply contracts signed with major customers supported the decision to install a third furnace, construction of which is on
schedule for commissioning in the final quarter of the 2014 financial year.

Rest of Africa
The beverage can operation in Angola performed exceptionally well with the manufacturing line running at above-design
capacity for most of the year and this, together with the lifting of the consumption tax in March last year contributed
to a significant improvement in trading profit.

The operation in Nigeria which, earlier in the year was negatively impacted by socio-political factors in the north of
the country, improved in the last quarter. There was strong demand for food and diversified cans in Kenya. The
operation in Zimbabwe was consolidated during the year and also contributed to the higher profit and margin.

Paper and Flexibles                                                                                                                      
                       Revenue      Trading profit*       Margin           
                   2013     2012     2013    2012     2013    2012   
                     Rm       Rm       Rm      Rm        %       %   
South Africa      3 117    2 980      104     164      3.3     5.5   
Rest of Africa    1 005      871      213     213     21.2    24.5   
Total             4 122    3 851      317     377      7.7     9.8   
*Operating profit before abnormal items

South Africa
Strong demand for corrugated boxes for agricultural products was more than offset by weak demand from the commercial
sector. Export sales showed good growth.

There was mixed demand in the flexible packaging market with the food-related sector stronger but other sectors
weaker. Volumes were flat in the early part of the year with a strong recovery evident in more recent months.

There was generally lower demand for cement, sugar and milling paper sacks.

Weak consumer demand affected margins in all the businesses in this segment.

An agreement was reached to sell the cartons and labels business subject to a number of conditions precedent,
including approval by the Competition authorities. The business has been reclassified as a discontinued operation.

Rest of Africa
The cartons business in Nigeria which was affected by customer-destocking in the first half, recovered in the second
half with an increased contribution from non-cigarette customers. Zambia continued to perform well with increased sales
of sorghum beer cartons. There was stable demand for self-opening flour bags in Kenya, whilst Malawi had a good year
assisted by increased sales of sorghum beer cartons and corrugated boxes.

Plastics                                                                                                                               
                      Revenue       Trading profit*      Margin           
                   2013     2012     2013    2012     2013    2012   
                     Rm       Rm       Rm      Rm        %       %   
South Africa      2 393    2 278      254     270     10.6    11.9   
United Kingdom    1 938    1 679      162     124      8.4     7.4   
Total             4 331    3 957      416     394      9.6    10.0   
*Operating profit before abnormal items

South Africa
The market for milk and juice was soft and this together with a move from fresh milk to long-life milk packed in
cartons resulted in lower sales of plastic bottles. Sorghum beer carton sales were negatively impacted by a change in
legislation in Botswana. The PET business is now more focused on the supply of lower-margin pre-forms.

Sales of metal wine closures were similar to last year despite market-share gain, with the increased export of wine in
bulk affecting demand. There was growth in demand for closures for plastic beverage bottles which benefited from
further replacement of glass bottles.

There were good sales of plastic crates for beer and milk customers although margins came under pressure. Sales of
both large and small drums increased especially to alcohol-export customers.

There were higher sales of toothpaste tubes.

United Kingdom
Trading profit increased by 14% to £11.2 million. Sales volumes were slightly lower than last year as a result of the
ongoing transfer of business from a major dairy which is in the process of relocating. Good cost control contributed to
a satisfactory performance. The average exchange rate to the pound was R14.49 compared to R12.71 in 2012.

Tissue                                                                                                                           
                     Revenue      Trading profit*      Margin           
                 2013     2012     2013    2012     2013    2012   
                   Rm       Rm       Rm      Rm        %       %   
South Africa    1 641    1 628      104     111      6.3     6.8   
*Operating profit before abnormal items

Despite growth in demand for 1-ply toilet tissue, the market remained highly competitive and margins came under
pressure. Disposable diaper sales were at a similar level to last year. Operational performance improved with cost savings
being achieved in several areas.

Acquisition of beverage can facility in Nigeria
An agreement has been concluded to acquire Alucan Packaging Limited (“APL”), a beverage can manufacturer in Nigeria
for a consideration of US$301 million. Nampak has also been granted an option to acquire a large rigid plastic
manufacturer in Nigeria.

Second beverage can line in Angola
Bond approval has been granted to install a second beverage can line in Angola at a cost of US$100 million.

Disposal of cartons and labels
In line with the group’s strategy of focusing on specific regions and core products, an agreement was concluded to
sell the South African Cartons and Labels business. The transaction is subject to a number of conditions precedent,
including approval of the Competition authorities and the effective date is expected to be in the first quarter of 2014.

Outlook
Nampak is strategically well-positioned with strong market positions in South Africa and a growing presence on the
African continent. We believe that this will contribute to achieving sustainable earnings growth.

Appointment of CEO
The group announced on 14 October 2013 that André de Ruyter has been appointed an executive director and CEO designate
effective 1 January 2014 and will take over as CEO on 1 April 2014.

Declaration of ordinary dividend number 83
Notice is hereby given that a gross final ordinary dividend number 83 of 98.0 cents per share (2012: 89.0 cents per
share) has been declared in respect of the year ended 30 September 2013, payable to shareholders recorded as such in the
register of the company at the close of business on the record date, Friday 17 January 2014. The last day to trade to
participate in the dividend is Friday 10 January 2014. Shares will commence trading “ex” dividend from Monday 13 January
2014.

The important dates pertaining to this dividend are as follows:
Last day to trade ordinary shares “cum” dividend            Friday 10 January 2014
Ordinary shares trade “ex” dividend                         Monday 13 January 2014
Record date                                                 Friday 17 January 2014
Payment date                                                Monday 20 January 2014

Ordinary share certificates may not be de-materialised or re-materialised between Monday 13 January 2014 and Friday 17
January 2014, 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%;
No secondary tax on companies (“STC”) credits have been utilised;
The net local dividend amount is 83.3 cents per share for shareholders liable to pay dividends tax and 98.0 cents per
share for shareholders exempt from paying dividends tax;
The issued number of ordinary shares at the declaration date is 697 897 394; and
Nampak Limited’s tax number is 9875081714.

On behalf of the board

TT Mboweni                  AB Marshall
Chairman                    Chief executive officer            
21 November 2013


Summarised group statement of comprehensive income
                                                                                          Restated   
                                                                                 2013         2012   
                                                                   Notes    R million    R million   
Continuing operations                                      
Revenue                                                                      18 295.6     16 530.3   
Operating profit                                                       2      1 934.9      1 800.0   
Finance costs                                                                  (259.4)      (216.7)  
Finance income                                                                   39.5         48.1   
Income from investments                                                           5.4          5.3   
Share of profit of associates                                                    18.6          8.3   
Profit before tax                                                             1 739.0      1 645.0   
Taxation                                                                        384.0        448.3   
Profit for the year from continuing operations                                1 355.0      1 196.7   
Discontinued operation                                      
Loss for the year from discontinued operation                          3        (87.9)        (4.9)  
Profit for the year                                                           1 267.1      1 191.8   
Other comprehensive income/(expense) for the year, net of tax                                      
Items that will not be reclassified to profit or loss                                      
Net actuarial losses from retirement benefit obligations                       (406.5)      (159.8)  
Items that may be reclassified subsequently to profit or loss                                      
Exchange differences on translation of foreign operations                       653.7        143.4   
Gains/(losses) on cash flow hedges                                                9.6         (4.5)  
Other comprehensive income/(expense) for the year, net of tax                   256.8        (20.9)  
Total comprehensive income for the year                                       1 523.9      1 170.9   
Profit/(loss) attributable to:                                                        
Owners of Nampak Limited                                                      1 286.5      1 207.1   
Non-controlling interest in subsidiaries                                        (19.4)       (15.3)  
                                                                              1 267.1      1 191.8   
Total comprehensive income/(expense) attributable to:                                                        
Owners of Nampak Limited                                                      1 549.5      1 187.2   
Non-controlling interest in subsidiaries                                        (25.6)       (16.3)  
                                                                              1 523.9      1 170.9   
Continuing operations                                                        
Basic earnings per share (cents)                                                231.7        204.8   
Fully diluted earnings per share (cents)                                        217.5        198.2   
Headline earnings per ordinary share (cents)                                    217.5        201.0   
Fully diluted headline earnings per share (cents)                               204.3        194.6   
Continuing and discontinued operations                                                        
Basic earnings per share (cents)                                                216.9        204.0   
Fully diluted earnings per share (cents)                                        203.7        197.4   
Headline earnings per ordinary share (cents)                                    209.3        200.8   
Fully diluted headline earnings per share (cents)                               196.6        194.4   
Dividend per share (cents)                                                      140.0        129.5   


Summarised group statement of financial position
                                                                                 2013         2012   
                                                                   Notes    R million           Rm   
ASSETS                                                                                  
Non-current assets                                                                      
Property, plant and equipment and investment property                         7 346.8      6 612.1   
Goodwill and other intangible assets                                            814.5        715.1   
Other non-current financial assets and associates                               268.1        153.2   
Deferred tax assets                                                              99.8         65.5   
                                                                              8 529.2      7 545.9   
Current assets                                                                          
Inventories                                                                   3 307.8      3 336.3   
Trade receivables and other current assets                                    2 874.4      2 557.0   
Tax assets                                                                        3.6          2.9   
Bank balances. deposits and cash                                       8      4 477.4      1 780.0   
                                                                             10 663.2      7 676.2   
Assets classified as held for sale                                     4        551.6         27.9   
Total assets                                                                 19 744.0     15 250.0   
EQUITY AND LIABILITIES                                                                  
Capital and reserves                                                                    
Share capital                                                                    36.0         35.9   
Capital reserves                                                               (700.3)      (736.6)  
Other reserves                                                                  (70.2)      (349.9)  
Retained earnings                                                             7 806.4      7 321.5   
Shareholders' equity                                                          7 071.9      6 270.9   
Non-controlling interest                                                        (80.1)       (54.5)  
Total equity                                                                  6 991.8      6 216.4   
Non-current liabilities                                                                                     
Loans and borrowings                                                          3 537.7      1 594.9   
Retirement benefit obligation                                                 2 193.1      1 618.3   
Deferred tax liabilities                                                        519.9        650.1   
Other non-current liabilities                                                    51.8         13.7   
                                                                              6 302.5      3 877.0   
Current liabilities                                                                     
Trade payables, provisions and other current liabilities                      3 560.9      3 471.7   
Bank overdrafts                                                        8      1 808.2      1 575.7   
Loans and borrowings                                                            695.9         18.1   
Tax liabilities                                                                 144.0         91.1   
                                                                              6 209.0      5 156.6   
Liabilities directly associated with assets classified                                  
as held for sale                                                       4        240.7            -   
Total equity and liabilities                                                 19 744.0     15 250.0   


Summarised group statement of cash flows
                                                                                 2013         2012   
                                                                   Notes           Rm           Rm   
Cash generated from operations before working capital changes                 2 700.5      2 601.8   
Working capital changes                                                        (247.7)      (339.6)  
Cash generated from operations                                                2 452.8      2 262.2   
Net interest paid                                                              (207.4)      (154.2)  
Income from investments                                                           5.4          5.3   
Retirement benefits. contributions and settlements                             (118.3)      (104.7)  
Tax paid                                                                       (432.0)      (417.2)  
Replacement capital expenditure                                              (1 044.5)      (778.7)  
Cash retained from operations                                                   656.0        812.7   
Dividends paid                                                                 (777.4)      (421.1)  
Cash distributions paid                                                             -       (257.1)  
Net cash (utilised in)/retained from operating activities                      (121.4)       134.5   
Expansion capital expenditure                                                  (393.7)      (303.7)  
Acquisition of business                                                5       (110.4)      (977.5)  
Other investing activities                                                       73.0         21.5   
Net cash utilised before financing activities                                  (552.5)    (1 125.2)  
Net cash raised from financing activities                                     2 527.7        465.4   
Net increase/(decrease) in cash and cash equivalents                          1 975.2       (659.8)  
Net cash and cash equivalents at beginning of year                     8        204.3        797.9   
Cash acquired on reconsolidation of Zimbabwe subsidiaries              6          6.0            -   
Translation of cash in foreign subsidiaries                                     483.7         66.2   
Net cash and cash equivalents at end of year                           8      2 669.2        204.3   


Summarised group statement of changes in equity
                                                                                 2013         2012   
                                                                                   Rm           Rm   
Opening balance                                                               6 216.4      5 694.9   
Net shares issued during the year                                                28.1         21.8   
Share-based payment expense                                                      19.4         19.2   
Share grants exercised                                                          (10.9)       (16.7)  
Share of movement in associate's non-distributable reserve                        0.9         (0.4)  
Transfer from hedging reserve to related assets                                 (10.8)         1.7   
Gain on available-for-sale financial assets                                       2.2          3.2   
Total comprehensive income for the year                                       1 523.9      1 170.9   
Dividends paid                                                                 (777.4)      (421.1)  
Cash distributions from share premium                                               -       (257.1)  
Closing balance                                                               6 991.8      6 216.4   
Comprising:                                                               
Share capital                                                                    36.0         35.9   
Capital reserves                                                               (700.3)      (736.6)  
Share premium                                                                    45.6         17.6   
Treasury shares                                                              (1 104.3)    (1 104.3)  
Share-based payments reserve                                                    358.4        350.1   
Other reserves                                                                  (70.2)      (349.9)  
Foreign currency translation reserve                                            927.9        268.0   
Hyperinflation capital adjustment                                                   -        (24.3)  
Financial instruments hedging reserve                                             4.4          5.6   
Recognised actuarial losses                                                    (984.6)      (578.1)  
Share of non-distributable reserves in associates                                 1.9          0.9   
Available-for-sale financial assets revaluation reserve                         (20.0)       (22.2)  
Other                                                                             0.2          0.2   
Retained earnings                                                             7 806.4      7 321.5   
Shareholders' equity                                                          7 071.9      6 270.9   
Non-controlling interest                                                        (80.1)       (54.5)  
Total equity                                                                  6 991.8      6 216.4   


Notes
                                                                                2013         2012   
                                                                                  Rm           Rm   
 1. Basis of preparation                                 
    The summarised consolidated financial statements have been prepared in 
    accordance with the framework concepts, measurement and recognition 
    criteria of the International Financial Reporting Standards (“IFRS”) and 
    the SAICA Financial Reporting Guides as issued by the Accounting 
    Practices Committee and Financial Reporting Pronouncements as issued by 
    the Financial Reporting Standards Council and in accordance with the 
    Listings Requirements of the JSE Limited, IFRS including the information 
    required by IAS 34: Interim Financial Reporting. 
    The accounting policies applied are consistent with those applied for 
    the group’s 2012 annual financial statements.
	
    The summarised preliminary financial statements have been prepared under
    the supervision of the group financial manager MS Bottyan CA(SA).
	 
 2. Included in operating profit are:                                 
    Depreciation                                                               711.4        600.3   
    Amortisation                                                                38.0         27.1   
    Reconciliation of operating profit and trading profit                                 
    Operating profit                                                         1 934.9      1 800.0   
    Abnormal (gains)/losses*                                                   (19.4)       (28.1)  
    Net impairment losses on plant, equipment and goodwill                      61.4          4.7   
    Retrenchment and restructuring costs                                        31.2          8.8   
    Net loss/(profit) on disposal of investments                                 0.1         (0.5)  
    Cash flow hedge ineffectiveness                                             (0.4)         3.1   
    Net profit on disposal of property                                          (0.7)        (0.2)  
    Gain on revaluation of original interest in joint venture acquired         (23.2)       (44.0)  
    Gain on reconsolidation of Zimbabwe entities                               (87.8)           -                                                    
    Trading profit                                                           1 915.5      1 771.9   
    * Abnormal (gains)/losses are defined as (gains)/losses which do not 
    arise from normal trading activities or are of such size, nature or 
    incidence that their disclosure is relevant to explain the performance
    for the period.                                 
                                                         
 3. Discontinued operation                                 
    During May 2013, the directors of the group approved of a plan to dispose
    of the Cartons and Labels business. On 13 September 2013, the group 
    entered into a sale agreement to this effect and expects to complete the
    sale by March 2014. The disposal is consistent with the group’s strategy 
    of exiting its non-core and underperforming businesses.                                 
    The results of the discontinued operation included in the statement of 
    comprehensive income are set out below: 
    Results of the discontinued operation for the year                                 
    Revenue                                                                  1 080.7      1 130.7   
    Expenses                                                                (1 202.7)    (1 137.6)  
    Loss before tax                                                           (122.0)        (6.9)  
    Attributable income tax benefit                                             34.1          2.0   
    Loss for the year from discontinued operation                              (87.9)        (4.9)  
    Cash flows from the discontinued operation                                 
    Net cash flows from operating activities                                    (7.0)       (22.3)  
    Net cash flows from investing activities                                     2.9          0.4   
    Net cash flows                                                              (4.1)       (21.9)  
    The Cartons and Labels business has been classified and accounted for at 
    30 September as a disposal group held for sale (see note 4).  
	 
 4. Assets held for sale                                 
    Assets which are expected to be sold in the next 12 months are classified 
    as held for sale and are presented separately in the statement of financial 
    position.                                 
    As described in note 3, the group has entered into a sale agreement to 
    dispose of the Cartons and Labels business with the disposal expected to be 
    completed by March 2014. The disposal group has been disclosed as a 
    discontinued operation during the current year and was previously included 
    in the South Africa Paper and Flexibles segment for segmental reporting 
    purposes. Impairment losses of R55.0 million (R50.4 million on 
    reclassification as held for sale) have been recognised for the year in 
    respect of the disposal group.                                 
    In the prior year, a property in South Africa was classified as held for sale
    as it was surplus to the group’s requirements. This asset was sold during 
    December 2012. The property was included in the Other segment for 
    segmental reporting purposes.                                 
    Assets classified as held for sale                                 
    Assets relating to the discontinued operation                              551.6            -   
    Carrying value of property classified as held for sale                         -         27.9   
                                                                               551.6         27.9   
    Liabilities associated with assets held for sale                                 
    Liabilities relating to the discontinued operation                         240.7            -   
                                                         
 5. Business combinations                                 
    In line with the group's strategy to grow its core businesses, the group
    acquired with effect from 1 November 2012 the remaining 50% interest in
    Elopak (Pty) Ltd ("Elopak") from Elopak AS for an amount of 
    R116.2 million paid in cash.                                 
    During the prior year, the group acquired with effect from 1 March 2012,
    the remaining 50% interest in Nampak Wiegand Glass (Pty) Ltd which 
    was held by Wiegand Glas (SA) (Pty) Ltd 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         86.7   
    Trade and other receivables                                                 20.8         78.6   
    Cash                                                                         5.8            -   
    Non-current assets                                 
    Property, plant and equipment                                               23.2        491.1   
    Intangibles                                                                 43.9        237.5   
    Non-current receivables                                                      2.3            -   
    Current liabilities                                 
    Trade and other payables                                                    (7.8)       (67.2)   
    Bank overdraft                                                                 -         (3.0)   
    Non-current liabilities                                 
    Loans                                                                          -        (17.8)   
    Retirement benefit obligation                                                  -         (6.9)   
    Deferred tax                                                               (16.2)      (101.6)   
                                                                                85.5        697.4   
    Goodwill arising on acquisition                                 
    Consideration transferred                                                  116.2        974.5   
    Gain on revaluation of original interest                                    23.2         44.0   
    Fair value of identifiable net assets acquired                             (85.5)      (697.4)  
    Goodwill recognised                                                         53.9        321.1   
    Goodwill arose on the acquisitions as the cost of the combinations included 
    a control premium. The consideration paid also included the expected 
    benefits of revenue growth and future profitability. These benefits are not
    recognised separately from goodwill because they do not meet the recognition
    criteria for identifiable intangible assets.                                 
    The goodwill recognised is not deductible for tax purposes.	 
    Cash flow impact of the acquisitions                                 
    Consideration paid in cash                                                 116.2        974.5   
    (Cash)/bank overdraft acquired                                              (5.8)         3.0   
    Net outflow on acquisition                                                 110.4        977.5   
    Impact of the acquisition on the results of the group                                 
    Included in the group net revenue and profit after tax for the period is 
    R104.5 million and R11.8 million respectively which is attributable to the 
    remaining interest acquired in Elopak.                                 
    Had Elopak been acquired with effect from 1 October 2012, the net revenue of 
    the group from continuing operations would have been R18 304.5 million, while
    the profit after tax would have been R1 356.1 million.                                 
                                                         
 6. 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"). In addition, the holding company of Megapak
    Zim, Megaplastics Ltd ("Megaplast"), being a wholly owned subsidiary, was 
    also reconsolidated effective 1 October 2012.                                 
    The entities had previously been deconsolidated in 2007 due to Nampak 
    Limited 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 and liabilities of the subsidiaries recognised at the date of their                                  
    reconsolidation:                                 
    Current assets                                 
    Inventories                                                                 29.6            -   
    Trade and other receivables                                                 21.8            -   
    Bank and cash                                                                6.0            -   
    Non-current assets                                                       
    Property, plant and equipment                                               39.1            -   
    Current liabilities                                                     
    Trade and other payables                                                   (69.9)           -   
    Non-current liabilities                                                  
    Loans                                                                      (11.1)           -   
    Deferred tax                                                                (2.5)           -   
                                                                                13.0            -   
    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 R126.1 million attributable to the 
    subsidiaries, while profit after tax for the group includes R1.4 million
    attributable to the subsidiaries, as well as R20.7 million attributable 
    to the associates, Megapak Zim and Hunyani.                                 
                                                                                                             
 7. Determination of headline earnings                                 
    Continuing operations                                 
    Profit attributable to equity holders of the company for the year        1 374.4      1 212.0   
    Less: preference dividend                                                   (0.1)        (0.1)   
    Basic earnings                                                           1 374.3      1 211.9   
    Adjusted for:                                                          
    Net impairment losses on plant, equipment and goodwill                      61.4          4.7   
    Net loss/(profit) on disposal of investments                                 0.1         (0.5)   
    Net (profit)/loss on disposal of property, plant, equipment and        
    intangible assets                                                          (24.7)        26.1   
    Gain on revaluation of original interest in joint venture acquired         (23.2)       (44.0)   
    Gain on reconsolidation of Zimbabwe entities                               (87.8)           -   
    Tax effects and non-controlling interest                                   (10.4)        (8.6)   
    Headline earnings for the year                                           1 289.7      1 189.7   
    Continuing and discontinued operations                                   
    Profit attributable to equity holders of the company for the year        1 286.5      1 207.1   
    Less: preference dividend                                                   (0.1)        (0.1)   
    Basic earnings                                                           1 286.4      1 207.0   
    Adjusted for:                                 
    Net impairment losses on plant, equipment and goodwill                   116.4            9.5   
    Net loss/(profit) on disposal of investments                               0.1           (0.5)   
    Net (profit)/loss on disposal of property, plant, equipment and 
    intangible assets                                                        (25.2)          26.5   
    Gain on revaluation of original interest in joint venture acquired       (23.2)         (44.0)   
    Gain on reconsolidation of Zimbabwe entities                             (87.8)             -   
    Tax effects and non-controlling interest                                 (25.7)         (10.1)   
    Headline earnings for the year                                         1 241.0        1 188.4   

 8. Cash and cash equivalents                                 
    Bank balances, deposits and cash                                       4 477.4        1 780.0   
    Bank overdrafts                                                       (1 808.2)      (1 575.7)   
                                                                           2 669.2          204.3                                                                                    
 9. Supplementary information                                 
    Capital expenditure                                                    1 471.1        1 084.2   
    - expansion                                                              393.7          303.7   
    - replacement                                                          1 044.5          778.7   
    - intangibles                                                             32.9            1.8   
    Capital commitments                                                    2 386.1        1 093.7   
    - contracted                                                           1 113.3          406.3   
    - approved not contracted                                              1 272.8          687.4   
    Lease commitments                                                        312.1          184.1   
    - land and buildings                                                     244.9          136.1   
    - other                                                                   67.2           48.0   
    Contingent liabilities                                                    10.1           48.8   
    - tax contingent liabilities                                               3.2           36.2   
    - customer claims and guarantees                                           6.9           12.6   
                                                              
10. Share statistics                                 
    Ordinary shares in issue (000)                                         697 897        696 712   
    Ordinary shares in issue - net of treasury shares (000)                593 600        592 415   
    Weighted average number of ordinary shares on which basic earnings 
    and headline earnings per share are based (000)                        593 064        591 750   
    Weighted average number of ordinary shares on which diluted basic
    earnings and diluted headline earnings per share are based (000)       639 500        622 488   

11. Additional disclosures                                 
    Net gearing                                                                22%            23%   
    EBITDA*                                                                2 700,2        2 462,9   
    Net debt: EBITDA*                                                    0,6 times      0.7 times   
    Interest cover                                                         9 times       11 times   
    EBITDA: Interest cover*                                               12 times       15 times   
    Return on equity - continuing operations                                   22%            22%   
    Return on net assets - continuing operations                               19%            21%   
    Net worth per ordinary share (cents)**                                   1 178          1 049   
    Tangible net worth per ordinary share (cents)**                          1 041            929   
    Net asset value                                                        6 991.8        6 216.4   
     *EBITDA is calculated before net impairments                                 
    **Calculated on ordinary shares in issue - net of treasury shares                                 
                                                              
12. Translation reserve movement                                 
    Due to the weakening of the rand towards the end of the financial 
    year, a translation gain of R653.7 million (2012: R143.4 million gain)
    was recognised for the year. The closing exchange rate at 
    30 September was £1: R16.25 (2012: £1: R13.39).
	 
13. 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.   
	 
14. Independent auditors’ opinion                                 
    The auditors, Deloitte & Touche, have issued their opinion on the group’s
    financial statements for the year ended 30 September 2013. The audit was 
    conducted in accordance with International Standards on Auditing. They 
    have issued an unmodified audit opinion. A copy of the auditors’ report 
    together with a copy of the audited financial statements are available for 
    inspection at the company’s registered office.
    These summarised financial statements have been derived from the group’s 
    financial statements and are consistent in all material respects with the 
    group’s financial statements. A copy of their audit report is available for 
    inspection at the company’s registered office. These summarised financial 
    statements have been audited by the company’s auditors who have issued an 
    unmodified opinion. The auditors’ report does not necessarily report on all the 
    information contained in this announcement. Any reference to future financial 
    information included in this announcement, has not been reviewed or reported on 
    by the company’s auditors. Shareholders are advised, that in order to obtain a 
    full understanding of the nature of the auditors’ engagement they should obtain a 
    copy of that report together with the accompanying financial information from the 
    company’s registered office.  
	 
15. Subsequent events                                 
    An agreement has been concluded to acquire Alucan Packaging Limited (“APL”), a 
    beverage can manufacturer in Nigeria for a consideration of US$301 million. 
    Nampak has also been granted an option to acquire a large rigid plastic 
    manufacturer in Nigeria.                                 

Administration

Independent non-executive directors:
TT Mboweni (Chairman), RC Andersen, E Ikazoboh, RJ Khoza, PM Madi, VN Magwentshu, I Mkhari, 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 O’Brien.

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) Ltd
70 Marshall Street, Johannesburg, 2001, South Africa
(PO Box 61051, Marshalltown, 2107, South Africa)
Telephone +27 11 370 5000

Sponsor:
UBS South Africa (Pty) Ltd

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 year’s
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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