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Summarised audited consolidated financial statements for the year ended 31 December 2013
African Oxygen Limited
A member of The Linde Group
(Incorporated in the Republic of South Africa) Registration number: 1927/000089/061
ISIN: ZAE000067120 JSE code: AFX.
NSX code: AOX
SUMMARISED AUDITED CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2013
- Revenue: R5.8 billion (+5%)
- EBITDA: R880 million (+10%)
- Headline earnings per share: 95.3 cents (+8%)
Performance highlights
On the back of difficult trading conditions in South Africa, which affected all our major market segments, 2013 revenue increased by 5% to R5.825
billion and EBITDA increased 10% to R880 million. Profit for the year was R324 million, an increase of 18% on the profit achieved in 2012.
Headline earnings per share increased by 8% to 95.3 cents (2012: 88.5 cents). Afrox continued with its programme of investing in plant
modernisation, additional capacity creation and efficiency enhancements. For the year under review Afrox invested R507 million (2012: R558
million). The Group ended the year with net borrowings of R649 million (2012: R615 million) and gearing of 14.6% (2012: 15.5%).
Business review
Prolonged uncertainty in the South African economy, coupled to low GDP growth, continued to impact upon demand for products in key sectors.
Market activity remained depressed, and cost pressures continued, as rising labour, fuel and electricity prices, coupled to a falling Rand, had a
negative impact on margins and production. An unsettled labour environment, which was characterised by strikes and violence, resulted in
production in key industries, such as mining and manufacturing, also being impacted negatively.
In anticipation of such conditions, Afrox implemented a new integrated operating model in the first quarter of 2013. This model brought together a
greater accountability for revenue, profit and loss, and cost and asset utilisation, for each business line. This allowed the company to deliver higher
levels of customer service through clearer accountability, improved decision making and faster execution across the business. These measures
also enabled the realisation of an EBITDA margin improvement from 14.3% to 15.1% in 2013.
Working capital at R654 million for 2013 increased from R479 million in 2012, due to the delay in the off-take by certain key customers of stock
specially imported on their behalf. In addition, debtors days increased.
Basic earnings per share followed the improvement in EBITDA and were further favourably influenced by there being no impairments required in
2013, compared to the R31 million impairment processed in 2012. The sale of RECO was concluded in February 2013.
Due in part to a mild winter in South Africa and the reduced demand from key industrial users, Liquefied Petroleum Gas (LPG) volumes were down
3.2%. In line with Afrox's customer commitment, LPG was imported to act as a buffer for anticipated winter shortages and refinery shutdowns.
Price recovery of the additional import costs, and the resulting increased distribution costs, was made difficult by the prevailing trading conditions.
In our Atmospheric gas segment, 2013 was challenging for tonnage plants, which continued to be impacted by the rising cost of electricity and the
reduced demand for product, especially from the steel industry. Production availability of ASU installations remained world class at 98% (2012: 98%).
Through our energy management programme, tonnage power costs were flat against last year, despite an average power increase of 8%.
Prevailing economic conditions resulted in an output fall-off at key large customers and, as a result, demand for atmospheric bulk gases reduced
by 1.6%. Sales of compressed gases declined 0.6%.
Merchant CO2 volumes were in line with those achieved in 2012. During 2013, Afrox became the first gases company in South Africa to receive
the Global Food Safety Initiative rating for the production of CO2, the most widely used gas in the beverage and food sectors.
It is pleasing to report that in the Hard Goods business volumes were up 6.5% despite sluggish demand. Our factories also won the contract to
manufacture the new Linde medical valve with our first deliveries against this contract to commence in late 2014.
Operations in African countries outside South Africa contributed 20% (2012: 21%) of the Group's total gross profit after distribution expenses.
These businesses have been the focus of intense information technology investment, focused financial processes and improved governance
controls. In addition, they have benefited from an injection of experienced management resources, positioning these businesses to benefit from the
opportunities presented by the rapid growth in their local economies. Exciting new plans to capitalise on growth opportunities in the rest of Africa
were approved by the Board in the last quarter of 2013.
Our level 3 Broad-Based Black Economic Empowerment (B-BBEE) rating continues to have a positive effect on the gaining of sales while solid
progress is being made in respect of our B-BBEE transformation programme and our drive for High Performance Organisation status. However,
retaining a level 3 contributor level under the new codes, which come into effect in 2014, will be a challenge.
The Group's strong focus on workplace and distribution safety delivered a marked improvement in 2013, with a 64% drop in major incidents,
leading to a decrease in vehicle damage/replacement costs and contributing to an improved delivery in full on time level of 93% for the year.
Independently monitored customer satisfaction levels for our National Customer Service Centre (orders and accounts management), stand at
95.2% for 2013.
During the year a syndicated R1.8 billion loan structure was negotiated. The facility is in various tranches of seven, five and three year term loans,
which will be used to fund our capital expenditure programme of R1.5 billion, as well as a R300 million revolving credit facility to meet peak
working capital requirements. The drawn facilities of R1 billion are at fixed interest rates.
In 2013, Afrox invested R507 million (2012: R558 million) in capital expenditure. The transport fleet replacement plan bolstered the fleet by 22
tankers, bringing the total number of available tankers to 106. Capital expenditure also included further investment in cylinders. This expenditure
formed part of the capital plan, announced in 2012, totalling R1.5 billion. In addition to the current year's expenditure, R300 million is being spent
on delivery of a new 150-tons-per-day atmospheric gas separation unit (ASU) in the Eastern Cape, the epicentre of South Africa's motoring
industry. This project is progressing, with all governance permissions and environment impact assessments in place. Production is expected to
commence by early 2015. The state-of-the-art R400 million KwaZulu-Natal (KZN) filling plant, also announced last year, is well into its planning
phase.
Dividend
The Board declared a final cash dividend of 20.0 cents per share (2012: 18.0 cents), which together with the interim cash dividend of 27.0 cents
(2012: 27.0 cents) per share, makes a total of 47.0 cents (2012: 45.0 cents) per share before dividend tax declared out of the after tax profits of the
2013 year and which is covered just over 2.0 times by headline earnings per share.
Board of directors
Jonathan Narayadoo, an executive director, and Louis van Niekerk, lead independent non-executive, retired as directors, effective 23 May 2013.
Morongwe Malebye, an independent non-executive director, and Dynes Woodrow, a non-executive director, resigned effective 22 August 2013.
The Board wishes them all well for the future.
At the Annual General Meeting on 23 May 2013, Dr Khotso Mokhele was appointed as the new lead independent non-executive director and Chris
Wells was appointed as chairman of the Audit Committee. In line with the requirements of King III during the year, we established a Social,
Economic and Transformation (SET) Committee under the able chairmanship of Dr Mokhele.
Outlook
The challenging market conditions in South Africa are considered likely to prevail for the foreseeable future given the low growth environment
reflected in the GDP forecast. However, due to our ongoing capital programme, the focus on developing our business in the rest of Africa and our
recent realignment of our South African business into integrated business lines, we believe that the building blocks for future growth are firmly in
place.
NOTICE OF FINAL DIVIDEND DECLARATION NUMBER 175 AND SALIENT FEATURES
Notice is hereby given that a gross final cash dividend of 20.0 cents per ordinary share, being the final dividend for the year ended 31 December 2013,
has been declared payable to all shareholders of African Oxygen Limited recorded in the register on Thursday, 17 April 2014.
The salient dates for the declaration and payment of the final dividend are as follows:
Last day to trade ordinary shares "cum" dividend Thursday, 10 April 2014
Ordinary shares trade "ex" the dividend Friday, 11 April 2014
Record date Thursday, 17 April 2014
Payment date Tuesday, 22 April 2014
Share certificates may not be dematerialised or rematerialised between Friday, 11 April 2014 and Thursday, 17 April 2014, both days inclusive.
The local net dividend amount is 17.0 cents (2012:15.3 cents) per share for shareholders liable to pay the Dividend Tax and 20.0 cents (2012: 18.0
cents) per share for shareholders exempt from Dividend Tax.
In terms of the Dividend Tax, the following additional information is disclosed:
- the dividend has been declared out of income reserves;
- the local Dividends Tax rate is 15%, subject to double tax agreements;
- Afrox currently has 308 567 602 ordinary shares in issue; and
- Afrox's income tax reference number is 9350042710.
By order of the Board
Cheryl Singh 27 February 2014
Company Secretary Johannesburg
Forward looking statements disclaimer: This annual results review contains statements related to our future business and financial performance
and future events or developments involving Afrox that may constitute forward-looking statements. Such statements are based on current
expectations and certain assumptions of Afrox's management are therefore subject to certain risks and uncertainties. A variety of factors, many of
which are beyond Afrox's control, affect our operations, performance, business strategy and results and could cause the actual results,
performance or achievements of Afrox to be materially different from any future results, performance or achievements that may be expressed or
implied by such forward-looking statements or anticipated on the basis of historical trends.
Summarised consolidated statement of financial position
2013 2012
R'million Note Audited Restated*
ASSETS
Property, plant and equipment 6 3 034 2 854
Retirement benefit assets 552 348
Deferred taxation assets 9 15
Lease receivables 100 108
Other non-current assets 99 133
Non-current assets 3 794 3 458
Inventories 850 685
Trade and other receivables 906 841
Lease receivables 7 6
Derivative financial instruments 6 -
Other current assets 31 26
Taxation receivable 33 30
Cash and cash equivalents 380 297
Current assets 2 213 1 885
Assets held-for-sale 9 - 44
Total assets 6 007 5 387
EQUITY AND LIABILITIES
Equity holders of the parent company 3 202 2 804
Non-controlling interests 37 27
Total equity 3 239 2 831
Long-term borrowings 1 000 132
Deferred taxation liabilities 570 528
Non-current liabilities 1 570 660
Trade, other payables and other financial liabilities 1 141 1 073
Taxation payable 28 38
Derivative financial instruments - 5
Short-term portion of long-term borrowings 3 738
Bank overdrafts 26 42
Current liabilities 1 198 1 896
Total equity and liabilities 6 007 5 387
* Audited, adjusted for the revised IAS 19 Employee Benefits (refer note 5)
Summarised consolidated income statement
2013 2012
R'million Audited Restated*
Revenue 5 825 5 558
Operating expenses (4 945) (4 760)
Earnings before interest, taxation, depreciation, amortisation and impairments (EBITDA) 880 798
Depreciation and amortisation (366) (328)
Impairments - (31)
Earnings before interest and taxation (EBIT) 514 439
Net finance expense (47) (35)
Income from associate 1 4
Profit before taxation 468 408
Taxation (144) (133)
Profit for the year 324 275
Attributable to:
Equity holders of the parent company 309 262
Non-controlling interests 15 13
Profit for the year 324 275
Earnings per share
Basic and diluted earnings per ordinary share - cents 100.1 84.9
Headline earnings per ordinary share - cents 95.3 88.5
* Audited, adjusted for the revised IAS 19 Employee Benefits (refer note 5)
Summarised consolidated statement of comprehensive income
2013 2012
R'million Audited Restated*
Profit for the year 324 275
Other comprehensive income/(loss) after taxation 228 (146)
Items that can subsequently be reclassified to the income statement
Translation differences on foreign operations 29 (18)
Translation differences relating to non-controlling interests 5 (7)
Changes in fair value of cash flow hedges (net of taxation) 1 4
Items that cannot subsequently be reclassified to the income statement
Actuarial gains/(losses) on defined-benefit funds 276 (173)
Deferred taxation relating to actuarial (gains)/losses (83) 48
Total comprehensive income for the year 552 129
Total comprehensive income attributable to:
Equity holders of the parent company 532 123
Non-controlling interests 20 6
552 129
* Audited, adjusted for the revised IAS 19 Employee Benefits (refer note 5)
Summarised consolidated statement of changes in equity
Incentive
scheme
shares
Share and
capital share FCTR Non-
and based and Actuarial con-
share payment hedging gains/ Retained trolling Total
R'million premium reserves reserves (losses) earnings interests equity
Balance at 1 January 2012, as previously reported 552 - (53) 287 2 041 38 2 865
Impact of revised IAS 19 (refer note 5) - - - 12 (12) - -
Restated balance at 1 January 2012 552 - (53) 299 2 029 38 2 865
Profit for the year* - - - - 262 13 275
Other comprehensive loss, net of taxation* - - (14) (125) - (7) (146)
Shares purchased on behalf of employees - (14) - - - - (14)
Share based payments, net of taxation - 22 - - - - 22
Dividends paid - - - - (154) (17) (171)
Restated balance at 31 December 2012 552 8 (67) 174 2 137 27 2 831
Profit for the year - - - - 309 15 324
Other comprehensive income, net of taxation - - 30 193 - 5 228
Shares purchased on behalf of employees - (16) - - - - (16)
Share based payments, net of taxation - 21 - - - - 21
Dividends paid - - - - (139) (10) (149)
Balance at 31 December 2013 552 13 (37) 367 2 307 37 3 239
* Audited, adjusted for the revised IAS 19 Employee Benefits (refer note 5)
Summarised consolidated statement of cash flows
2013 2012
R'million Note Audited Restated*
Earnings before interest and taxation (EBIT) 514 439
Adjustments for:
Depreciation, amortisation and impairments 366 359
Other 153 103
Operating cash flows before working capital adjustments 1 033 901
Working capital adjustments (200) 35
Cash generated from operations 833 936
Vested shares purchased on behalf of employees (3) -
Net finance expense and taxation paid (278) (150)
Cash available from operating activities 552 786
Dividends paid to owners of the parent (139) (154)
Dividends paid to non-controlling interests (10) (17)
Net cash inflow from operating activities 403 615
Additions to property, plant and equipment and intangibles (505) (558)
Proceeds from disposal of the RECO business 9 36 -
Proceeds from disposal of business operation - 22
Other investing activities 48 36
Net cash outflow from investing activities (421) (500)
Borrowings raised 1 216 427
Borrowings repaid (1 083) (505)
Incentive scheme shares purchased on behalf of employees (16) (14)
Net cash inflow/(outflow) from financing activities 117 (92)
Net increase in cash and cash equivalents 99 23
Cash and cash equivalents at the beginning of the year 255 232
Cash and cash equivalents at the end of the year 354 255
* Audited, adjusted for the revised IAS 19 Employee Benefits (refer note 5)
Segmental report
Atmospheric gases Air gases separated into its main components
LPG Liquefied Petroleum Gas
Hard Goods Electrodes and welding equipment
Rest of Africa
2013 2012
R'million Audited Audited
Revenue 5 825 5 558
Atmospheric Gases 1 745 1 817
LPG 2 132 2 018
Hard Goods 993 874
Rest of Africa 955 849
Gross profit after distribution expenses (GPADE) 1 580 1 510
Atmospheric Gases 610 568
LPG 311 362
Hard Goods 337 266
Rest of Africa 322 314
Reconciliation of GPADE to EBIT
GPADE for business segments 1 580 1 510
Other operating expenses (1 066) (1 040)
Impairments - (31)
Earnings before interest and taxation (EBIT) 514 439
Business segment performance is measured based on gross profit after distribution expenses (GPADE).
Inter-segment pricing is determined on an arm's length basis. Finance expenses and taxes are not allocated
to these segments as they are managed on a Group basis. Other operating expenses include the following:
marketing and selling expenses, corporate and support functions and other non-trading income and
expenses. These costs are not included in GPADE and managed by support function.
Selected notes to the summarised consolidated financial statements
1 General information
African Oxygen Limited ("Afrox" or the "company") is a South African registered company. The summarised consolidated financial statements
of the company comprise the company and its subsidiaries (together referred to as the "Group") and the Group's interest in an associate.
2 Statement of compliance
The summarised consolidated financial statements have been prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS), the presentation and disclosure requirements of International Accounting Standard 34:
Interim Financial Reporting applied to year-end reporting, the Listings Requirements of the JSE Limited, the South African Institute of
Chartered Accountants Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Reporting Pronouncements as
issued by the Financial Reporting Standards Council and the requirements of the South African Companies Act, 2008.
This report was compiled under the supervision of Mr Nick Thomson CA (SA), Financial Director.
3 Basis of preparation
The summarised consolidated financial statements do not include all the information and disclosures required for the full set of audited
consolidated financial statements. The summarised consolidated financial statements should be read in conjunction with the full set of the
audited consolidated financial statements. The full set of the audited consolidated financial statements for the Group as at and for the year
ended 31 December 2013 have been prepared on the going-concern basis and are available for inspection at the company's registered office
and on the Afrox website at www.afrox.com.
The accounting policies applied in the presentation of the summarised consolidated financial statements are consistent with those applied for
the year ended 31 December 2012, except for new standards that became effective 1 January 2013, refer note 5.
The summarised consolidated financial statements are prepared on the historical cost basis except for the following items which are measured
using an alternative basis at each reporting date:
- Derivative financial instruments measured at fair value through profit or loss
- Retirement benefit assets measured at the fair value of the planned assets less the present value of the defined benefit obligation
Except for the changes explained in Note 5, the accounting policies have been applied consistently to all periods presented in these
summarised consolidated financial statements.
4 Changes in accounting policies
The Group has adopted the following new standards and amendments to standards, including any consequential amendments to other
standards, with a date of initial application of 1 January 2013:
- IFRS 10 Consolidated Financial Statements;
- IFRS 11 Joint Arrangements;
- IFRS 12 Disclosure of Interests in Other Entities;
- IFRS 13 Fair Value Measurement;
- IAS 1 Presentation of Financial Statements: Presentation of items of other comprehensive income (amendment);
- IAS 1 Presentation of Financial Statements: Presentation of a third statement of financial position and related notes (amendment);
- IAS 19 Employee Benefits (revised);
- IAS 27 Separate Financial Statements (revised); and
- IAS 28 Investments in Associates and Joint Ventures (revised).
Except for the adoption of the revised IAS 19 (refer note 5), the adoption of the new standards listed above did not have a significant impact
on the Group's audited consolidated financial statements.
5 Restatement of comparative figures
The revised IAS 19 Employee Benefits disallows the use of the corridor method and the recognition of actuarial gains or losses in profit or
loss. The revised standard did not have an impact on the Group's summarised consolidated financial statements as the Group's accounting
policy was already in line with the revised IAS 19 in this respect. The revised IAS 19 further requires that the return on plan assets recognised
in profit or loss is calculated based on the rate used to discount the defined benefit obligation. The adoption of this revision had the following
impact on the Group's summarised consolidated financial statements:
Previously
R'million reported Adjustment Restated
Summarised consolidated income statement
for the year ended 31 December 2012
Net finance expense (24) (11) (35)
Taxation (136) 3 (133)
Net profit for the year 283 (8) 275
Summarised consolidated statement of comprehensive income
for the year ended 31 December 2012
Net profit for the year 283 (8) 275
Actuarial losses on defined-benefit funds (184) 11 (173)
Deferred taxation relating to actuarial losses 51 (3) 48
Total comprehensive income for the year 129 - 129
Summarised consolidated income statement
for the year ended 31 December 2011
Net finance expense (46) (17) (63)
Taxation (100) 5 (95)
Net profit for the year 195 (12) 183
Summarised consolidated statement of comprehensive income
for the year ended 31 December 2011
Net profit for the year 195 (12) 183
Actuarial gain on defined-benefit funds 13 17 30
Deferred taxation relating to actuarial losses (3) (5) (8)
Total comprehensive income for the year 243 - 243
Basic and diluted earnings per share for 31 December 2012 were restated from 87.5 to 84.9 and from 59.2 cents to 55.3
cents for 31 December 2011. Had the return on plan assets not been calculated under the revised IAS 19, there would not
have been a significant effect on the reported amounts in the current year. The summarised consolidated statement of
financial position was not impacted by the revision as the revision had no impact on the Group's assets or liabilities; and
had a net impact of nil on total equity (refer summarised consolidated statement of changes in equity). The cumulative
restatement for the year ended 31 December 2012 amounted to R20 million after taxation.
6 Property, plant and equipment
2013 2012
R'million Audited Audited
Opening carrying value 2 854 2 657
Additions, net of transfers from assets under construction 507 546
Transfer to assets held-for-sale - (15)
Impairments - (16)
Disposals (7) (14)
Depreciation (332) (296)
Translation differences 12 (8)
Closing carrying value 3 034 2 854
Total future capital commitments at 31 December 2013 amounted to R451 million (2012: R877 million).
7 Fair value classification and measurement
Accounting classification and fair values
The classification of each class of financial assets and liabilities, and their fair values are:
Liabilities at Total
Held-for- Loans and amortised carrying
R'million trading receivables cost amount Fair value
31 December 2013
Financial assets measured at fair value
Derivative financial instruments 6 - - 6 6
Financial assets not measured at fair value
Trade and other receivables - 885 - 885 885
Cash and cash equivalents - 380 - 380 380
Lease receivables - 107 - 107 107
Total financial assets 6 1 372 - 1 378 1 378
Financial liabilities not measured at fair value
Borrowings - - 1 003 1 003 968
Trade and other payables - - 947 947 947
Bank overdrafts - - 26 26 26
Total financial liabilities - - 1 976 1 976 1 941
31 December 2012
Financial assets not measured at fair value
Trade and other receivables - 824 - 824 824
Cash and cash equivalents - 297 - 297 297
Lease receivables - 114 - 114 114
Total financial assets - 1 235 - 1 235 1 235
Financial liabilities measured at fair value
Derivative financial instruments 5 - - 5 5
Financial liabilities not measured at fair value
Borrowings - - 870 870 870
Trade and other payables - - 900 900 900
Bank overdrafts - - 42 42 42
Total financial liabilities 5 - 1 812 1 817 1 817
Reconciliation to the summarised consolidated statement of financial position:
R'million 2013 2012
Trade and other receivables 906 841
Prepayments (20) (15)
Deposits (1) (2)
885 824
Trade, other payables and other financial liabilities 1 141 1 073
Employee benefits including leave pay, bonuses and other costs (107) (104)
Deferred rentals (52) (42)
Value added taxation (35) (27)
947 900
Fair value hierarchy
The table below categorises fair value measurements for financial instruments into the fair value hierarchy based on
the inputs used. The different levels are defined as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at
the measurement date.
Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly or indirectly.
Level 3: unobservable inputs for the asset or liability.
Level 1 Level 2 Level 3 Total
31 December 2013 Rm Rm Rm Rm
Financial assets measured at fair value
Derivative financial instruments - 6 - 6
31 December 2012
Financial liabilities measured at fair value
Derivative financial instruments - (5) - (5)
Transfers
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during
which the transfer has occurred. There were no transfers between level 1, 2 or 3 of the fair value hierarchy during the
year ended 31 December 2013 and 31 December 2012.
8 Earnings and headline earnings per share
Group earnings per share are calculated on earnings of R309 million (2012: R262 million) and a weighted average
number of ordinary shares of 308 567 602 (2012: 308 567 602) in issue during the period. Headline earnings per
share are calculated on headline earnings of R294 million (2012: 273 million) and a weighted average number of
ordinary shares of 308 567 602 (2012: 308 567 602) in issue during the period.
Reconciliation between earnings and headline earnings
2013 2012
R'million Audited Restated*
Profit for the year 309 262
Adjusted for the after-taxation effects of:
Profit on disposal of subsidiary - (11)
Profit on disposal of property, plant and equipment (15) -
Impairment of property, plant and equipment - 22
Headline earnings 294 273
Basic and diluted earnings per share - cents 100.1 84.9
Headline earnings per share - cents 95.3 88.5
* Audited, adjusted for the revised IAS 19 Employee Benefits (refer note 5)
9 Assets held-for-sale
A decision to dispose of one of the Group's businesses (RECO) was taken in May 2012, as the nature of the business
operations was not aligned to the Group's principal lines of business. The disposal was completed in February 2013.
No profit or loss was made on the transaction as the value of the assets of the business at February 2013 increased
by R5 million to R49 million as a result of the trading that occurred between 31 December 2012 and 28 February
2013. Proceeds of R36 million were received during the 2013 financial year. The remaining tranche of R13 million is
expected to be received in the first half of the 2014 financial year.
2013 2012
R'million Audited Audited
Property, plant and equipment - 15
Inventories - 52
Impairment of property, plant and equipment - (15)
Inventory held-for-sale written off - (8)
Total net assets held-for-sale - 44
10 Related party transactions
The Group entered into various sale and purchase transactions with related parties, in the ordinary course of business,
on an arm's length basis. The nature of related-party transactions is consistent with those reported previously.
11 Litigation and claims
There is no outstanding litigation of a material nature against the Group. During the year, an appropriate commercial
solution was negotiated regarding the major material claim of R207 million highlighted in the 2012 annual report, which
resulted in an extended supply contract being entered into. There was no impact on the current year results as a
consequence of this new agreement.
As previously disclosed the company continues to pursue its rights in terms of a disputed supply contract with a major
steel producer.
12 Subsequent events
The directors are not aware of any material matter or circumstance arising since the end of the year and up to the date
of this report, not otherwise dealt with in this report. The Group declared a gross final cash dividend of 20 cents per
share on 27 February 2014.
The directors are also pleased to announce that the company has signed a supply contract with Columbus Stainless
Steel (Pty) Ltd on the 25th February 2014 extending the existing contract by a further five years. The tenure of this
contract is now for seven years.
13 Audit opinion
The independent auditors, KPMG Inc, have issued their opinion on the Group's annual financial statements for the year
ended 31 December 2013. A copy of their unqualified audit report is available for inspection at the company's
registered office. These summarised financial statements have been derived from the Group audited financial
statements.
The auditor's report does not necessarily report on all of the information contained in this announcement. Shareholders
are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement they should
obtain a copy of the auditor's report together with the accompanying financial information from the issuer's registered
office.
Corporate information
African Oxygen Limited Registered office
(Incorporated in the Republic of South Africa) Afrox House, 23 Webber Street, Selby
Registration number: 1927/000089/06 Johannesburg 2001
ISIN: ZAE000067120 JSE code: AFX. PO Box 5404, Johannesburg 2000
NSX code: AOX Telephone +27 (11) 490 0400
Transfer secretaries: Computershare Investor Services (Pty) Limited
Sponsor in South Africa: One Capital
Sponsor in Namibia: Namibia Equity Brokers (Pty) Limited
Directors: RJN Gearing*, MS Huggon* (Chairman), BD Kimber (Managing Director), DM Lawrence, SN Maseko, KDK Mokhele, M von Plotho**,
NA Thomson*, CF Wells* *British **German
Company Secretary: C Singh
Auditors: KPMG Inc
www.afrox.com
www.afrox.co.za
Date: 27/02/2014 02:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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