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

NAMPAK LIMITED - Audited group results and dividend declaration For the year ended 30 September 2015

Release Date: 26/11/2015 14:43
Code(s): NPK     PDF:  
Wrap Text
Audited group results and dividend declaration
For the year ended 30 September 2015

Nampak Limited
(Registration number 1968/008070/06) 
(Incorporated in the Republic of South Africa) 
Share code: NPK ISIN: ZAE 000071676

Audited group results and dividend declaration
For the year ended 30 September 2015

Group revenue from continuing operations up 13%

Group trading profit from continuing operations up 10%, in spite of a 
disappointing Glass performance in the first half

Revenue and trading profit from the rest of Africa up 43%, rest of
Africa now 49% of group trading profit up from 37% in 2014

Group operating profit from continuing operations down 9%, impacted 
by abnormal items of R139 million

Net profit from continuing operations up 2%

Glass fundamentally improved and poised to deliver a strong performance 
in FY16

Basic EPS from continuing operations up 3% 

HEPS from continuing operations down 6% 

Final dividend per share declared at 92.0 cents

Challenging macroeconomic conditions continue in key markets

Comments from the CEO, André de Ruyter
“The 2015 financial year has been a year of mixed fortunes for Nampak.
Our financial year results benefited from the continued growth and strong 
performance of our beverage can businesses, in particular Bevcan Nigeria 
and Bevcan Angola. Macroeconomic challenges in key markets combined with 
the first-half loss made by the Glass division and cost increases 
associated with the ramp-up of recently commissioned projects, 
impacted results. Foreign currency liquidity issues in key African 
countries caused by commodity price fluctuations resulted in forex
losses that also put pressure on performance. Operating challenges at
our Glass facility were substantially resolved by year-end, and the 
higher than anticipated spoilage experienced on converted aluminium 
beverage can lines in Springs was brought under control. The legacy 
of these operational challenges has, however, had a negative impact 
on our earnings.

During the year we significantly streamlined our portfolio with the 
finalisation of the divestiture of Corrugated, Tissue, Flexible, 
Recycling and Sacks divisions. This process was accompanied by a 
strong focus on cost management and operational efficiency improvements 
within the remaining divisions. Large capital projects were successfully 
commissioned, including the first aluminium beverage can line in Rosslyn, 
and a second beverage can line in Angola.

Contribution to trading profit from operations in the rest of Africa 
increased to 49%, up from 37% in 2014 primarily due to the continuing 
ramp-up in production at Bevcan Nigeria as well as another good 
performance from Bevcan Angola. The 49% contribution was bolstered 
by the underperforming South African operations. Proportions are 
expected to re-adjust in 2016 due to improved performance from, in 
particular Glass and Bevcan Springs.

We were able to defend our strong market positions with the successful 
conclusion of long-term sales agreements in our Bevcan, DivFood and Glass 
divisions. Good progress was made in pursuit of our greenfield glass 
furnace growth opportunities in Ethiopia and Nigeria.

We continue to navigate a challenging macroeconomic environment in 
countries where we operate and currency liquidity issues in Angola 
and Nigeria are expected to continue impacting on our ability to 
repatriate earnings from these operations. We will continue to 
utilise measures at our disposal to address exposure to further 
currency depreciation.

Our financial position remains strong, with significant headroom to 
our debt covenants. Management remains focused on delivering improved 
performance and is making significant progress in unlocking operating 
leverage from recent capital investments. Nampak’s key focus areas of 
prudent capital allocation, cost management and operational improvement 
initiatives are expected to benefit the bottom line during the 2016 
financial year.”

Group performance review
Group performance from continuing operations
R million                                        2015    2014  % change
Revenue                                        17 291  15 306        13
Trading profit                                  1 820   1 657        10
Abnormal items                                   (139)    186         —
Operating profit                                1 681   1 843        (9) 
Basic earnings per share (cents per share)      228.3   221.7         3
Headline earnings per share (cents per share)   208.2   221.9        (6) 
Dividend per share (cents per share)            134.0   153.0       (12)

2014 results restated for operations accounted for as held for sale. 

Overall group performance for the year benefited from a solid
performance from the rest of Africa beverage can operations as well as
modest growth from DivFood, Closures and Megapak in South Africa. 
This resulted in a 13% increase in group revenue and 10% increase in 
trading profit. General macroeconomic challenges, the loss made by the 
Glass division, as well as cost increases associated with the ramp-up 
of recently commissioned projects put pressure on trading margins. 
The group recorded a trading margin of 10.5% (2014:10.8%).

The group recorded net abnormal losses from continuing operations of 
R139 million compared to R186 million net abnormal profits reported 
in 2014, resulting in a R325 million adverse effect on operating profit. 
This consisted of impairments of property, plant and equipment of 
R121 million (2014: R37 million) largely attributable to the R85 million 
impairment of the tinplate beverage can lines that were replaced with 
new aluminium can lines. Due to government liquidity restrictions in 
Angola and Nigeria, the group experienced difficulties in timeously 
converting the bank balances (in local currency) of the operations 
into US dollars in order to settle US dollar denominated group 
commitments. This, combined with the weakened Angolan and Nigerian 
currencies, resulted in total foreign exchange losses for the group 
of R141 million (2014: R210 million gain) which was reclassified 
to abnormal items. At year-end, Nampak had cash balances of R700 
million (2014: R266 million) in those two countries. During the 
year more than 50% of ongoing hard currency obligations have been 
met with funds secured from Nigerian and Angolan banks. While these 
conditions are expected to be temporary, management continues to 
address this issue. We cannot guarantee that the situation will 
either improve or deteriorate.

The group operating profit for the year was down 9% and headline earnings 
per share from continuing operations declined by 6.2% to 208.2 cents 
from 221.9 cents in 2014.

Despite marginally increased interest rates in South Africa and the group’s 
net interest-bearing debt at year-end exceeding that of the prior year, net 
finance costs from continuing operations decreased from R309 million in 
2014 to R279 million in 2015. The capitalisation of R71 million interest 
to the third glass furnace in South Africa, as a consequence of the 
revised timing of the capitalisation, and lower borrowings rates achieved 
by Nampak International Ltd contributed to the reduction in net finance costs.

The year was characterised by a weakening in the ZAR exchange rate compared 
to its major trading currencies with a significant portion of this 
deterioration occurring in the last quarter of the financial year. This 
resulted in a foreign currency translation gain, accounted for in equity, 
of R775 million (2014: R382 million gain).

Nampak’s 2015 borrowings increased following peak season inventory builds 
and strong revenues in August and September, which resulted in increased 
trade receivables at year-end. The net debt position was positively impacted 
by cash collected from divestitures but capital expenditure outweighed 
these inflows. Net borrowings increased to R6.6 billion (2014: R5.7 billion) 
with net gearing of 71.8% marginally down from the 72.6% reported in the 
prior year. Working capital remained under control with a net investment 
in working capital during the year of R2.9 billion (2014: R3.0 billion). 
The group remained comfortably within its borrowing covenants.

The effective tax rate for continuing operations was negative 4.1%, 
compared to 9.1% in 2014, as the company continued to benefit from 
government grants for capital-related projects in Bevcan (in South Africa, 
Nigeria and Angola) and Glass. The group also benefited from lower tax rates 
in other tax jurisdictions outside South Africa. Prior year adjustments 
include a credit relating to a portion of the section 12I allowance not 
accounted for in 2014, but claimed in the tax return. It also includes a 
credit relating to a Black Employee Empowerment share scheme expense. 
The tax rate is expected to return to previously guided levels in 2016.

The weaker ZAR/USD exchange rate positively impacted the results of foreign 
operations on consolidation, with earnings being translated at a higher 
ZAR/USD exchange rate. The average ZAR/USD exchange rate for the year 
was R12.02 compared to R10.58 for the same period in the prior year, while 
the average ZAR/GBP exchange rate was R18.56 compared to the prior year 
of R17.54.

Segmental performance review
Segmental report (continuing operations)
                                                Trading    Trading 
                                   Revenue      profit*   margin (%)
R million                        2015   2014  2015  2014  2015  2014
Metals                          9 933  8 429 1 254 1 050  12.6  12.5
Plastics                        5 011  4 849   376   325   7.5   6.7
Paper                           1 470  1 044   184   204  12.5  19.5
Glass#                            877    984   (76)  (48) (8.7) (4.9) 
Corporate Services                  —      —    82   126     —     — 
Total (continuing
operations)                    17 291 15 306 1 820 1 657  10.5  10.8

2014 results restated for operations accounted for as held for sale.
* Operating profit adjusted for abnormal items.
# Revised 3rd Furnace commissioning time to July 2015 in accordance 
with International Financial Reporting Standards (IFRS) — R27 million 
operating losses and R71 million finance costs capitalised. R251 million 
revenue achieved to the revised commissioning date deducted.

Metals
“volume growth continues, spoilage improving”
This cluster includes all beverage, food and general packaging can divisions 
in South Africa and the rest of Africa. Revenue was up 18% mainly due to 
continuing beverage can volume growth. Trading profit increased by 19% despite 
the challenging macroeconomic conditions in key markets, relatively high 
spoilage at Bevcan Springs in South Africa, increased costs associated with 
the construction and commissioning of new lines and the disappointing 
performance of the Nigerian general metal packaging business. The cluster’s 
margin for the year was 12.6% slightly ahead of the margin achieved in 2014. 
Contractual US dollar selling prices in Nigeria and Angola protected revenue 
against the impacts of local currency devaluation. Exposure to currency 
devaluation was limited to working capital valuation as well as foreign 
exchange losses resulting from long delays in paying suppliers due to the 
limited availability of foreign currency.

Higher spoilage was recorded during the year at the three aluminium lines 
in Springs. The lines were commissioned between July 2013 and August 2014 
and the new technology combined with higher speed lines highlighted skills 
shortages and some operational deficiencies within the factory. Interventions 
implemented to address the issues resulted in improved operational efficiencies 
and spoilage for all three lines by year-end. Spoilage at the beverage can 
lines commissioned during 2015 in Angola and Rosslyn in South Africa was much 
improved and the remaining steel lines within the portfolio continue to 
operate at good operational efficiencies.

In South Africa, Bevcan revenue for 2015 was ahead of the 2014 financial 
year due to increased sales volumes in the local and export markets. Double 
digit demand growth continued, supported by the continued increase in the 
440ml can market for both alcoholic and non-alcoholic beverages. Trading 
profit for 2015 was lower than the prior year following a challenging 
start to the financial year, when traditional inventory building activities 
for the peak season were compromised by a metal industry strike late in 
the 2014 financial year. As a result cans were imported to keep the 
market adequately supplied, with negative implications for costs and margins. 
Additional depreciation on capital expenditure, incremental employee costs 
for new lines, costs related to the commissioning and ramp-up of new production
lines and price decreases passed on to customers in line with previously agreed 
and new contracts impacted results. Energy cost savings due to improved energy 
efficiency of the aluminium production lines contributed positively to 
performance. During the year new long-term sales agreements were signed or 
renewed with major customers largely securing volumes for the next 
three to five years.

Bevcan is currently the only supplier of beverage cans in South Africa, with 
capacity to produce more than five billion cans a year. Volume growth is 
expected to remain strong, and opportunities to benefit from further 
customer consolidation exist in the medium term. Major capital investments 
in recent years were motivated by customer preference for aluminium cans, 
technological advances, efforts to reduce costs and to ultimately put 
Nampak Bevcan in a strong position to defend its market position and 
compete in the years ahead.

Bevcan Angola sales volumes continued to grow as a direct result of filled 
product import substitution and also growth in the local beverage market. 
The newly commissioned second production line, which has the capacity 
to produce up to 1.2 billion aluminium cans a year, contributed to volumes. 
Drawing on lessons learned at Bevcan Springs, the new line recorded very 
satisfactory spoilage levels from start-up. The steel line also continued 
to operate well above design specifications. Trading profit before foreign 
exchange losses was higher than 2014 levels, but like other Angolan 
enterprises, Nampak continued to experience challenges in sourcing 
foreign currency. Bevcan Angola is the only local producer of cans, 
and has an estimated 60% market share. This is expected to increase as 
the availability of additional capacity from the recently installed 
second line and the benefits of local supply attract new customers. 
The local beverage can market is also expected to benefit from investments 
by customers in additional can filling line capacity, driven by growth 
in demand for locally produced 
products.

Bevcan Nigeria, acquired in 2014, completed its first full year with Nampak. 
Sales volumes increased in line with expectation, supported by growth from 
existing and new customers. Operating profit was well up on last year 
although the business, like other Nigerian enterprises, continued to 
experience challenges sourcing foreign currency. The factory’s current 
nameplate capacity is approximately one billion cans, equalling roughly 
one-third of the Nigerian beverage can production capacity and has the 
footprint to expand to over two billion cans with a relatively low 
investment. During the year new sales contracts were signed with large 
multinational companies and these new volumes contributed positively to 
profit. Although current market growth is slower than anticipated, due 
to economic and political uncertainty in Nigeria, the terms of existing 
customer agreements specify higher allocations in the years ahead, which 
should impact positively on volumes. Nigeria is experiencing increasing 
investments in brewing capacity and beer growth rates are expected to be 
above GDP growth in the medium to long term, which in turn is expected 
to drive increased demand for cans.

In South Africa, revenue at DivFood was higher than the prior year mainly 
due to volume growth in specific product categories, mostly food packaging. 
The division’s performance benefited from a good export fruit season and 
growth in vegetable cans supported by the weak rand that made imported 
canned products less attractive. Meat cans performed well. Diversified 
packaging was negatively impacted by challenging macroeconomic dynamics. 
DivFood performed according to expectation recording operational improvements 
in key productivity measures. The division is on target to deliver improved 
performance in 2016 when the implemented business and operations improvement 
initiatives, including business consolidation and replacement of ageing 
equipment with energy efficient and technologically advanced machinery, 
start contributing to performance. Solid market positions, sound customer 
relationships, together with a strong management team committed to the 
implementation of the business improvement programme put the division 
in a strong position to defend its position and capitalise on opportunities. 
During the year long-term agreements were signed with two major customers, 
securing long-term fruit and culinary volumes.

The performance of the general metal packaging businesses in the rest of
Africa was influenced by weaker demand, a weaker agricultural harvest
and foreign exchange volatility.

Nigeria’s revenue was lower than the prior year due to generally lower 
consumer demand. National elections, the low oil price and political 
instability all had an influence. Some growth, however, was seen in 
the paint and brake fluid packaging sectors. Trading profit for the 
year was lower than the prior year in line with the decreased volumes 
and was also impacted by foreign exchange losses which were experienced 
in the first half of the year.

The agricultural sector is a key market for Kenya’s metals business and 
poor rains and harvests during the year negatively impacted results. 
Volumes in general consumer packaging were muted but there was good 
growth in metal crowns. The demand for metal packaging is expected to 
recover in the short term, provided the agricultural harvests improve.

In Tanzania revenue and trading profit were behind 2014 due to lower 
metal crown demand resulting from a general downturn in the beverage 
market. Trading profit was also impacted by foreign exchange losses.

In Zimbabwe demand for bottle crowns was muted and sales volumes were flat.

Plastics
“challenging environment, benefitting from initiatives and new 
opportunities”

Plastics, a cluster that includes all the South African, rest of Africa 
and United Kingdom plastics divisions, produced an improved performance 
driven mainly by site consolidation and cost management initiatives and 
feedstock benefits resulting from lower oil prices. Revenue for the 
cluster was up 3%, while trading profit was up 16%.

Liquid Packaging revenue for the year was behind the prior year due 
to a decline in sales volumes driven by lower PET pre-form volumes 
as most customers opt for self-manufacture. Additionally, some 
contractual volume were lost. This was offset by increased volumes 
in Pure-Pak milk and juice cartons as well as in HDPE bottles for 
the oil business. Trading profit for the year to date was marginally 
higher than the prior year as cost management initiatives, including 
site consolidation and closure, reduced overhead costs. The drums 
business performed much better than the prior year due to selling 
price increases and higher IBC volumes. The trading loss posted in 2014 
for this business was reversed supported by savings in overhead costs 
achieved through cost control measures implemented during the year.

Revenue for the Closures business was up on the prior year driven by 
increased volumes from the growth in the metal closures for the wine 
and food industries combined with growth in bottled water and 
carbonated soft drinks (CSD) closures. The loss of the sports 
drink closure business to imports impacted margins. Trading profit was 
lower due to lower margins achieved from the current sales mix combined 
with foreign exchange losses resulting from the weakening of the rand.
In the 2016 financial year we expect rationalisation to a new product mix, 
investment to support growth in both water and CSD volumes and the 
launch of a new generation sports drink closure to deliver improved
results. Tubes supplies the toothpaste sector and had a challenging 
year as sales to a major customer were reduced and replaced with filled 
product imports. Though the plant remains adequately loaded, capacity 
is available to support growth of existing customers in the rest of 
Africa. During the year Crates underwent a turnaround aimed at improving 
efficiencies through new equipment and moulds and a reduction in waste. 
Savings resulting from the turnaround combined with improved demand 
contributed positively to performance.

In the year ahead, the South African plastics business will continue 
to focus on operational excellence, improving production efficiencies 
and driving unit cost down to improve margins. The contribution from 
the oil business, combined with delivery on the operational improvement 
initiatives, is also expected to contribute to improved performance in
2016.

In Zimbabwe CMB performed well driven by growth in fruit juice and
Mahewu bottle sales. Megapak’s performance was lower than the prior year
due to lower sales to a key customer as demand was impacted by general 
lower consumer spending. The businesses are profitable and generate 
acceptable margins. Megapak Zimbabwe was fully consolidated from 
1 December 2014. The business was previously equity-accounted as 
an associate.

Revenue for Plastics UK was behind the prior year as a result of 
lower sales volumes and selling prices due to customer consolidation 
and changing operating models driven by sluggish milk consumption 
growth. Recently signed long-term sales contracts with new customers 
replace some of the volume shortfall and will contribute to performance 
in 2016. A reduction in overhead costs, resulting from the implementation 
of cost management measures, contributed positively to trading profit. 
The business remains a cash generator and rand hedge for the group. 
The average rand/pound rate for the year was R18.56 from R17.54 a 
year earlier. In an effort to improve performance, the business is 
evaluating several options aimed at capturing opportunities outside 
the milk industry to replace lost volume.

Paper
“margins holding up, recovering from the first half low”
This cluster includes all paper businesses in the rest of Africa. Revenue 
for 2015 was up 41% compared to 2014, benefiting from the consolidation 
of the Hunyani divisions (previously associates) in Zimbabwe and the 
full acquisition of Bullpak (previously a JV) in Kenya. Trading profit,
however, was down 10% impacted by weaker demand, high inflation and 
currency depreciation in some markets.

Nigeria Cartons revenue and trading profit were behind the prior 
year due to weaker first half cigarette carton sales. These have 
recovered in the second half of the year as customers increased stock 
on the back of stable market demand. Good growth is still being 
experienced in the demand for general fast moving consumer goods 
(FMCG) packaging. This trend is expected to continue in the short 
term as restrictions on imported products encourage local sourcing 
of packaged goods. Currency losses were experienced in the first 
half of the year, but recent currency stability and mitigating 
interventions limited the impact in the second half of the 
financial year.

In Zambia, sorghum beer carton sales volumes for 2015 were down 
on 2014 due to a short period of poor demand in the year. Sales 
recovered well in the final quarter of the financial year and 
this trend is expected to continue as output from a major 
customer’s operation increases.

Kenya Bullpak, acquired with effect from 1 September 2014, 
had a good year with a steady improvement in profitability, 
albeit in a market where demand for self-opening bags in 
the milling industry was flat.

Malawi had a disappointing performance due to general poor 
demand for conical cartons and tobacco cases. Margins were also 
impacted by general in-country inflationary pressure and currency 
devaluation.

In Zimbabwe, Hunyani divisions performed well, driven by improved 
market share in the tobacco market and the implementation of cost 
containment initiatives during the year. The divisions were only 
fully consolidated from 1 October 2014 and overall consumer demand 
in the country remains muted.

Glass
“Glass has recovered”
Glass had a difficult start to the 2015 financial year, characterised 
by disappointing operational performance due to the late commissioning 
of the third glass furnace which coincided with the seasonal peak period. 
Following a number of interventions, the issues were fundamentally 
resolved during the year. The new furnace has been stabilised,
production ramped up during the year and the division had a 
significantly improved second half of the financial year.

Initially, the third glass furnace did not meet the investment 
and operational expectations on which management’s investment 
decision were predicated. Operating losses of R27 million and finance 
costs of R71 million relating to the third furnace incurred to July 2015 
were capitalised to the cost of the furnace due to the revised timing of 
the commissioning of the furnace in accordance with International Financial 
Reporting Standards (IFRS). Revenue for the year achieved up to the revised 
commissioning date amounts to R251 million and has been excluded 
from the total revenue achieved by the segment for the year.

Glass revenue increased by 15% year-on-year before taking into account the 
reduction in revenue attributed to the additional testing phase. The 
capitalisation of the project in terms of International Financial Reporting 
Standards was completed on 31 July 2015.

The second half is typically a period of subdued demand with stock building 
for the peak and as a result the division was not able to fully recover 
financially. The operation returned to profitability in the latter months of 
the financial year and the improved performance is expected to continue going 
forward. The uninterrupted power supply, a first in South Africa, was 
invaluable in mitigating the problems experienced nationwide with disruption 
in the supply of electricity.

Corporate Services
Group corporate services includes group property rentals of owned properties, 
research and development services, treasury services and other corporate 
activity costs. The trading profit decrease relates to declined rentals 
due to the effect of the divestitures, and the externally charged technical 
fees related to entities previously equity accounted are now eliminated 
following consolidation.

Geographical update (continuing operations)
                                                  Trading   Trading
                                   Revenue        profit*  margin (%) 
R million                        2015    2014   2015  2014 2015  2014
South Africa                   10 599   9 798    736   768  6.9   7.8
Rest of Africa                  4 724   3 294    884   617 18.7  18.7
United Kingdom                  1 968   2 214    118   146  6.0   6.6
Corporate Services                  —       —     82   126    —     — 
Total                          17 291  15 306  1 820 1 657 10.5  10.8
* Operating profit adjusted for abnormal items.

2014 results restated for operations accounted for as held for sale. 

South Africa
During the year, South Africa, like most emerging markets, experienced
adverse economic conditions. Manufacturing production declined and both
business and consumer confidence were impacted negatively by an 
unfavourable exchange rate and load shedding which offset the benefits 
of lower oil prices. The impact of load shedding on Nampak operations, 
however, was not significant and the recent stability in electricity
supply is encouraging. Despite the challenging environment, revenue from
South African businesses increased by 8% as a result of volume growth
and a keen focus on Stock Key Units (SKU) rationalisation. Trading 
profit was down 4% reflecting the impact of operational difficulties 
experienced during the first half. As a result Nampak’s home business 
contribution to trading profit reduced to 40% in 2015 from 46% in 2014.

Rest of Africa
During 2015, Nampak recorded sales of R4.7 billion in the rest of 
Africa up from R3.3 billion in 2014, and recorded operating profit of 
R884 million. The 2015 financial year results were, however impacted 
by significant currency depreciation against the US dollar, mainly 
due to the impact of the sharp decline in commodity prices, including 
the oil price. Key market GDP growth rate estimates were revised 
downwards and inflation increased. Severe liquidity constraints were 
experienced in Angola and Nigeria. Despite these trends, the rest of 
Africa increased revenue by 43% and trading profit by 43% due mainly 
to continued strong performances from Bevcan Nigeria, Bevcan Angola 
and the inclusion of Zimbabwean entities previously accounted for as 
associates.

In light of the external macroeconomic and related currency 
challenges faced by Nampak in the region, management is focused on 
delivering improved performance by implementing mitigating initiatives 
to navigate through this temporary period. The current challenges 
do not change the overall investment rationale in key markets 
where consumption of, in particular, packaged beer and carbonated 
soft drinks, is driven by sustainable trends. The rest of Africa 
now contributes 49% to trading profit, up from 37% in 2014.

United Kingdom
The UK economy continues to show slow GDP growth while the plastics 
packaging market faces pricing and industry pressures from a low 
inflation UK economy. Trading profit decreased by 25% to £6.3 million. 
In Rand terms the trading profit decreased by 19% while the average
rand/pound rate was R18.56 from R17.54 a year earlier. The 
division’s contribution to group trading profit for the period was 6%.

Update on key projects
During 2015 the group made project management and execution one of the 
key focus areas for all divisions. As a result a new stage-gate project 
management and execution model was implemented throughout the group to 
improve project evaluation and management. This is expected to assist 
Nampak in effectively managing its pipeline of projects and ensuring
that investments are made prudently and only in projects that will yield
superior returns.

Total capital expenditure for the year amounted to R2.2 billion compared 
to R2.6 billion in 2014. R920 million was spent on the installation of 
aluminium can lines at Bevcan Springs and Rosslyn sites, while R494 million 
was spent on the completion and commissioning of Bevcan Angola’s second 
beverage can line and a new warehouse.

Aluminium conversion on track, Rosslyn line commissioned
In South Africa, the Bevcan recapitalisation programme is nearing 
completion. The latest technology equipment, combined with recently 
renewed long-term sales contracts with large customers, cements Bevcan’s 
leading market position.

In July 2015, a new one billion aluminium beverage can line was commissioned 
in Rosslyn, making use of the key learnings from the Springs plant. The new 
line started up with acceptable levels of spoilage and is ramping up in line
with expectations. The installation of a second aluminium line at this facility 
has begun and is expected to be commissioned in the second half of the 2016 
financial year. The conversion of the Cape Town plant from steel to aluminium 
has been delayed, given improved competitiveness in tinplate prices as well 
as capacity considerations.

Angola second aluminium beverage can line
The construction of the second line which uses aluminium as a substrate was 
completed and the line was commissioned in May 2015. The line is ramping 
up utilisation and is anticipated to reach close to full capacity in the 
short term. The existing tinplate line will be kept operational due to 
high market demand and will only be considered for conversion to aluminium 
in the medium term.

Bevcan Springs’ new beverage can ends facility
The expansion of the existing beverage can ends manufacturing facility 
in Springs to produce a further four billion ends is progressing well. 
Production is expected to start in the second half of 2016 and will enable 
full supply to the growing demand in South Africa, Angola and Nigeria, 
which is driven by the growth in beverage can demand and Nampak capacity 
expansions.

Rest of Africa glass projects
Significant progress was made in evaluating glass projects in Ethiopia, 
Angola and Nigeria. The feasibility study in Nigeria is in progress and 
the due diligence in Ethiopia is in the final stages of completion.

Active portfolio management
In March 2015 Nampak gave an update on a series of transactions, which 
included the completion of the sale of the Corrugated and Tissue divisions 
to Ethos Private Equity, for R1.53 billion; an agreement on the sale of 
Nampak Recycling, also to Ethos Private Equity, for R76.3 million and
an agreement to sell Nampak Flexible to Amcor Flexibles South Africa 
Proprietary Limited (Amcor) for a maximum target price of R300 million. 
These divisions are accounted for as discontinued in financial statements.

All transactions were subject to a number of conditions precedent, 
including approval by the Competition Commission. Subsequent to the 
fulfilment of all conditions precedent the Corrugated and Tissue 
transaction became effective on 1 April 2015, while the sale of Nampak 
Flexible to Amcor and the sale of Nampak Recycling to Ethos Private 
Equity became effective on 30 June 2015.

Nampak also concluded the sale of the Nampak Sacks division to Sacks 
Packaging on 29 September 2015. In line with Nampak’s strategy of 
fostering economic empowerment of previously disadvantaged South Africans, 
Sacks was sold to a black entrepreneur with the support of the 
Industrial Development Corporation of South Africa (IDC).

Outlook
External macroeconomic headwinds in key markets are expected to 
prevail in the year ahead. Management is focused on ensuring this risk 
is adequately managed by utilising measures at its disposal, where possible, 
to address exposure to further currency depreciation, but cannot rule out 
foreign exchange losses during the 2016 financial year.

We expect continued volume growth in beverage cans, gains from improved 
performance of the Glass and Bevcan Springs operations and efficiency gains 
from business improvement initiatives at DivFood to contribute to 
earnings in the medium term. The rest of Africa is an important market 
for Nampak and the group’s operations in this region are expected to 
continue generating growth in revenue and profit supported by expected 
growth in demand for beverages.

A key driver for Nampak’s major decisions related to divestitures and 
capital re-investment has been to improve competitiveness and to ensure 
sustainable profitability putting the businesses in the best possible 
position to defend markets and leverage opportunities. In markets where 
Nampak operates, capital investments, strong customer relationships, 
recently signed long-term customer contracts, and a well-established 
footprint with in-depth knowledge of local market dynamics sustain its 
competitive advantage.

Capital expenditure for 2016 is expected to be between R1.2 billion and
R1.5 billion, excluding any greenfield projects.

The current lower tax rate is not expected to be sustained going forward.

The dividend cover for the year has been maintained at 1.55 times 
in line with the prior year resulting in a final dividend of 92.0 cents
bringing the total dividend for the year to 134.0 cents.

Nampak is strategically well-positioned in South Africa and has a good 
foundation in the rest of Africa to take advantage of existing and future 
opportunities.

Declaration of Ordinary Dividend Number 87
Notice is hereby given that a gross final ordinary dividend number 87 
of 92.0 cents per share (2014: 107.0 cents per share) has been declared 
in respect of the financial year ended 30 September 2015, payable to 
shareholders recorded as such in the register of the company at the close 
of business on the record date, Friday 15 January 2016. The last day to 
trade to participate in the dividend is Friday 8 January 2016. Shares 
will commence trading ex dividend from Monday 11 January 2016.

The important dates pertaining to this dividend are as follows:
Last day to trade ordinary shares cum dividend Friday, 8 January 2016
Ordinary shares trade ex dividend              Monday, 11 January 2016
Record date                                      Friday, 15 January 2016
Payment date                                     Monday, 18 January 2016

Ordinary share certificates may not be de-materialised or re- materialised 
between Monday 11 January 2016 and Friday 15 January 2016, both days inclusive.

In accordance with the JSE Listings Requirements, the following additional 
information is disclosed for purposes of Dividends Tax:

The dividend has been declared from income reserves; The dividend 
withholding tax rate is 15%;
The net local dividend amount is 78.2 cents per share for shareholders 
liable to pay the Dividends Tax and 92.0 cents per share for shareholders 
exempt from paying the Dividends Tax;
The issued number of ordinary shares at the declaration date is 
702 496 655; and
Nampak Limited’s tax number is 9875081714.

On behalf of the board
T T Mboweni                          AM de Ruyter
Chairman                             Chief executive officer

26 November 2015

Summarised consolidated statement of comprehensive income 
for the year ended 30 September
                                                               Restated
R million                                      Notes     2015      2014
Continuing operations
Revenue                                              17 291.3  15 305.6
Operating profit                                   3  1 681.4   1 842.8
Finance costs                                          (316.6)   (353.1) 
Finance income                                           37.6      44.6
Income from investments                                     —       0.1
Share of (loss)/profit of joint ventures 
and associates                                           (3.8)     33.5
Profit before tax                                     1 398.6   1 567.9
Tax benefit/(expense)                                    57.5    (141.9)
Profit for the year from continuing
operations                                            1 456.1   1 426.0
Discontinued operations
Loss for the year from discontinued
operations                                         5   (394.8)   (222.4) 
Profit for the year                                   1 061.3   1 203.6
Other comprehensive (expense)/income, net 
of tax
Items that will not be reclassified to profit 
or loss
Net actuarial (loss)/gain from retirement
benefit obligations                                      (9.6)     10.2
Items that may be reclassified subsequently 
to profit or loss
Exchange differences on translation of
foreign operations                                      774.6     381.9
Gains on cash flow hedges                                56.8       1.1
Other comprehensive income for the year, net
of tax                                                  821.8     393.2
Total comprehensive income for the year               1 883.1   1 596.8
Profit attributable to:
Owners of Nampak Ltd                                  1 043.2   1 169.4
Non-controlling interest in subsidiaries                 18.1      34.2
                                                      1 061.3   1 203.6
Total comprehensive income attributable to:
Owners of Nampak Ltd                                  1 794.0   1 567.7
Non-controlling interest in subsidiaries                 89.1      29.1
                                                      1 883.1   1 596.8
Continuing operations
Basic earnings per share (cents)                        228.3     221.7
Fully diluted basic earnings per share
(cents)                                                 225.6     214.2
Headline earnings per ordinary share (cents)            208.2     221.9
Fully diluted headline earnings per share
(cents)                                                 205.7     214.3
Continuing and discontinued operations
Basic earnings per share (cents)                        165.6     186.3
Fully diluted basic earnings per share
(cents)                                                 163.7     179.9
Headline earnings per ordinary share (cents)            182.1     234.7
Fully diluted headline earnings per share
(cents)                                                 179.9     226.7
Dividend per share (cents)                              134.0     153.0

Summarised consolidated statement of financial position 
at 30 September

R million                                       Notes     2015     2014
Assets
Non-current assets
Property, plant and equipment and investment
property                                              11 025.7  9 864.3
Goodwill and other intangible assets                   4 118.6  3 419.5
Joint ventures, associates and other
investments                                               44.1    213.3
Deferred tax assets                                      145.3    135.7
Other non-current assets                                  33.0     65.0
                                                      15 366.7 13 697.8
Current assets
Inventories                                            3 890.6  3 518.4
Trade receivables and other current assets             3 404.4  3 538.9
Tax assets                                                12.0      8.5
Bank balances, deposits and cash                    7  1 587.4  1 127.5
                                                       8 894.4  8 193.3
Assets classified as held for sale                       146.4        — 
Total assets                                          24 407.5 21 891.1
Equity and liabilities
Capital and reserves
Share capital                                             36.1     36.1
Capital reserves                                        (405.0)  (402.3) 
Other reserves                                         1 061.7    315.2
Retained earnings                                      8 109.6  7 985.1
Shareholders’ equity                                   8 802.4  7 934.1
Non-controlling interest                                 370.0    (51.0) 
Total equity                                           9 172.4  7 883.1
Non-current liabilities
Loans and borrowings                                   4 212.0  4 753.3
Retirement benefit obligation                          2 008.4  2 173.0
Deferred tax liabilities                                 329.2    444.9
Other non-current liabilities                             61.6     58.6
                                                       6 611.2  7 429.8
Current liabilities
Trade payables, provisions and other current
liabilities                                            4 418.6  4 054.9
Bank overdrafts                                     7  3 672.3  1 808.5
Loans and borrowings                                     446.8    519.5
Tax liabilities                                           86.2    195.3
                                                       8 623.9  6 578.2
Total equity and liabilities                          24 407.5 21 891.1

Summarised consolidated statement of cash flows 
for the year ended 30 September

R million                                     Notes      2015      2014
Operating profit before working capital
changes                                               2 395.1   2 929.2
Working capital changes                                (668.6)   (189.1) 
Cash generated from operations                        1 726.5   2 740.1
Net interest paid                                      (376.4)   (361.9) 
Income from investments                                   7.4       7.2
Retirement benefits, contributions and
settlements                                            (364.9)   (132.7) 
Tax paid                                               (151.6)    (95.3) 
Replacement capital expenditure                      (1 352.6)   (833.5) 
Cash (utilised in)/retained from operations            (511.6)  1 323.9
Dividends paid                                         (946.2)   (904.4) 
Net cash (utilised in)/retained from
operating activities                                 (1 457.8)    419.5
Expansion capital expenditure                          (771.0) (1 771.7)
Acquisition of businesses                          4        —  (3 491.1) 
Proceeds on the disposal of business               5  1 982.7     308.3
Other investing activities                              124.7     (15.4) 
Net cash utilised before financing
activities                                             (121.4) (4 550.4)
Net cash (repaid in)/raised from financing
activities                                           (1 413.8)    897.3
Net decrease in cash and cash equivalents            (1 535.2) (3 653.1) 
(Net overdraft)/cash and cash equivalents at
beginning of year                                  7   (681.0)  2 613.2
Cash acquired on reconsolidation of Zimbabwe
subsidiary                                               44.1         — 
Translation of cash in foreign subsidiaries              87.2     358.9
Net overdraft at end of year                       7 (2 084.9)   (681.0)


Summarised consolidated statement of changes in equity 
for the year ended 30 September

R million                                                   2015    2014
Opening balance                                          7 883.1 7 190.6
Net shares issued during the year                           74.9   101.5
Share-based payment expense                                 (2.6)   17.0
Share grants exercised                                     (75.0)  (97.1) 
Share of movement in associate's and joint ventures'
non-distributable reserve                                    0.6     1.3
Non-controlling interest realised on disposal of
subsidiary                                                   2.6       — 
Transfer from hedging reserve to related assets             (4.9)   (4.3) 
Increase in non-controlling interest on consolidation
of Zimbabwe associates                                     356.8       —
Reclassification of available-for-sale financial asset         —   (18.3) 
Total comprehensive income for the year                  1 883.1 1 596.8
Dividends paid                                            (946.2) (904.4) 
Closing balance                                          9 172.4 7 883.1
Comprising:
Share capital                                               36.1    36.1
Capital reserves                                          (405.0) (402.3) 
Share premium                                              221.9   147.0
Treasury shares                                           (827.6) (827.6) 
Share-based payments reserve                               200.7   278.3
Other reserves                                           1 061.7   315.2
Foreign currency translation reserve                     2 017.8 1 314.2
Financial instruments hedging reserve                       53.1     1.2
Recognised actuarial losses                               (975.6) (966.0) 
Share of non-distributable reserves in associates and
joint ventures                                               4.5     3.9
Available-for-sale financial assets revaluation reserve    (38.3)  (38.3) 
Other                                                        0.2     0.2
Retained earnings                                        8 109.6 7 985.1
Shareholders' equity                                     8 802.4 7 934.1
Non-controlling interest                                   370.0   (51.0)
Total equity                                             9 172.4 7 883.1

Notes
1. Basis of preparation
The summarised consolidated financial statements are prepared in accordance 
with the requirements of the JSE Limited Listings Requirements for 
preliminary reports, and the requirements of the Companies Act of South 
Africa applicable to summarised financial statements. The Listings 
Requirements require preliminary reports to be prepared in accordance 
with the framework concepts and the measurement and recognition 
requirements of International Financial Reporting Standards (IFRS), 
the SAICA Financial Reporting Guides as issued by the Accounting 
Practices Committee and the Financial Pronouncements as issued by the 
Financial Reporting Standards Council, and to also, as a minimum, 
contain the information required by IAS 34, Interim Financial Reporting.

The summarised preliminary financial statements have been prepared under 
the supervision of the chief financial officer, G Fullerton CA (SA).

2. Accounting policies and restated comparatives
The accounting policies applied in the preparation of the consolidated 
financial statements for 2015, from which the summarised financial 
statements were derived, are in terms of IFRS and are consistent with 
the accounting policies applied in the preparation of the previous year’s 
consolidated financial statements other than where the group has 
adopted new or revised accounting standards.

The group has adopted all the new, revised or amended accounting 
pronouncements as issued by the IASB which became effective to the 
group on 1 October 2014.

The comparative information for the statement of comprehensive 
income has been restated for the impact of the additional discontinued 
operations recognised during the year ended September 2015 (see note 5 
below), whereby the results of these operations have been presented 
separately.

The main impact of these restatements on the comparative information 
is as follows:

R million
Revenue — decrease                                              (4 664.9) 
Operating profit — increase                                        228.3
Profit for the year from continuing operations — increase          190.3
Basic earnings per share (continuing operations) — increase
(cents)                                                             30.3
Headline earnings per share (continuing operations) —
decrease (cents)                                                   (15.2)

3. Included in operating profit are:

R million                                                   2015    2014
Depreciation                                               758.7   658.6
Amortisation                                                43.6    36.6
Reconciliation of operating profit and trading profit
Operating profit                                         1 681.4 1 842.8
Net abnormal loss/(gain)*                                  139.1  (185.6) 
Retrenchment and restructuring costs                        77.3    14.0
Net impairment losses on property, plant and equipment     121.4    37.3
Cash flow hedge ineffectiveness                                —    (0.1) 
Net profit on disposal of property                        (102.5)  (23.7) 
Loss/(gain) on financial instruments                       141.4  (210.5) 
Gain on revaluation and consolidation of Zimbabwe
associates                                                (124.2)      —
Gain on revaluation of original interest in joint
venture acquired                                               —    (9.4) 
Business acquisition-related costs                          25.7     6.8
Trading profit                                           1 820.5 1 657.2
* Abnormal losses/(gains) are defined as losses/(gains) 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 year.

4. Business combinations
4.1 Nampak Zimbabwe Ltd
The group consolidated Hunyani Holdings Ltd (Hunyani) and Megapak Zimbabwe 
(Pvt) Ltd (Megapak) with effect from 1 December 2014. These entities, 
situated in Zimbabwe, were previously recognised as associates and equity 
accounted as such. The revaluation of the group’s original interest in 
Hunyani and Megapak resulted in gains of R14.2 million and R9.3 million 
respectively.

As part of this process, the group restructured its subsidiary, 
CarnaudMetalbox Zimbabwe Ltd, and Megapak under Hunyani, and Hunyani 
was renamed Nampak Zimbabwe Ltd. The transaction also involved the group 
increasing its effective interest in the Nampak Zimbabwe Ltd group 
to 51.43%.

R million                                                     2015  2014
Assets acquired and liabilities recognised at 
the date of acquisition
Current assets
Inventories                                                  169.7     — 
Trade and other receivables                                  192.3     — 
Cash                                                          44.1     — 
Non-current assets
Property, plant and equipment                                414.1     — 
Intangible assets                                             63.3     — 
Investments                                                    7.6     — 
Current liabilities
Trade and other payables                                    (142.8)    — 
Tax liabilities                                               (2.9)    — 
Loans                                                        (26.8)    — 
Non-current liabilities
Loans                                                         (0.7)    —
Deferred tax                                                 (75.5)    — 
Fair value of identifiable net assets acquired               642.4     — 
Gain arising on consolidation
Fair value of previously held interests                      184.9     — 
Plus: non-controlling interests recognised                   356.8     — 
Less: fair value of identifiable net assets acquired        (642.4)    — 
Gain arising on consolidation                               (100.7)    —

Impact of the consolidation on the results of the group (current year) 
Included in the group net revenue and profit after tax from continuing 
operations for the year is R801.8 million and R37.7 million, respectively, 
which are attributable to the consolidation of Hunyani and Megapak.

Had Hunyani and Megapak been consolidated with effect 1 October 2014, the 
net revenue from continuing operations would have been R17 469.2 million, 
while the profit after tax from continuing operations would have been 
R1 461.6 million.

4.2 Alucan Investments Ltd
In the previous year, the group acquired with effect from 1 March 2014 
the entire equity of Alucan Investments Limited (AIL) for an amount of 
R3 508.0 million paid in cash. The sole investment of this group was 
Nampak Bevcan Ltd (formerly Alucan Packaging Ltd), a beverage can 
manufacturing operation in Nigeria.

R million                                                2015      2014
Assets acquired and liabilities recognised at the 
date of acquisition
Current assets
Inventories                                                 —     130.6
Trade and other receivables                                 —     108.4
Cash                                                        —      43.2
Non-current assets
Property, plant and equipment                               —     807.6
Deferred tax                                                —      29.5
Current liabilities
Trade and other payables                                    —     (88.2) 
Fair value of identifiable net assets acquired              —   1 031.1
Goodwill arising on acquisition
Consideration transferred                                   —   3 508.0
Less: fair value of identifiable net assets acquired        —  (1 031.1) 
Goodwill arising on acquisition                             —   2 476.9
Cash flow impact of the acquisitions
Consideration paid in cash                                  —   3 508.0
Cash balances acquired                                      —     (43.2) 
Net cash outflow on acquisition                             —   3 464.8

4.3 Bullpak Ltd
In the previous year, the group acquired with effect from 1 September
2014 the remaining 51% interest in Bullpak Ltd from Unga Ltd for an
amount of R42.0 million paid in cash. The revaluation of the group’s 
original interest in Bullpak resulted in a gain of R9.4 million.

R million                                                   2015    2014
Assets acquired and liabilities recognised at the 
date of acquisition
Current assets
Inventories                                                    —    14.2
Trade and other receivables                                    —    25.8
Cash                                                           —    15.7
Non-current assets
Property, plant and equipment                                  —     6.9
Retirement benefit asset                                       —     0.3
Current liabilities
Trade and other payables                                       —   (19.2) 
Non-current liabilities
Deferred tax                                                   —    (1.3) 
Fair value of identifiable net assets acquired                 —    42.4
Goodwill arising on acquisition
Consideration transferred                                      —    42.0
Plus: fair value of previously held interest                   —    30.2
Less: fair value of identifiable net assets acquired           —   (42.4) 
Goodwill arising on acquisition                                —    29.8
Cash flow impact of the acquisitions
Consideration paid in cash                                     —    42.0
Cash balances acquired                                         —   (15.7) 
Net cash outflow on acquisition                                —    26.3

5. Disposal of operations
During October 2014, the directors of the group approved of a plan to 
dispose of the Nampak Corrugated, Nampak Sacks, Nampak Tissue and 
Sancella S.A. (Pty) Ltd businesses. On 20 November 2014, the group 
entered into a sale agreement for the disposal of the Nampak Corrugated 
and Nampak Tissue businesses and completed the transaction on 1 April
2015, the effective date of the disposal of these businesses.

In addition, the directors of the group approved of a plan to dispose 
of the Nampak Recycling and Nampak Flexibles businesses during March 2015, 
and entered into sale agreements for the disposal of these businesses on
11 March 2015 and 25 March 2015 respectively. The transactions were both 
completed on 1 July, the effective date of these transactions.

Agreements of sale for the Sancella S.A. (Pty) Ltd and Nampak Sacks 
businesses were entered into on 21 July 2015 and 21 September 2015 
respectively. The transaction for the Nampak Sacks business was 
completed on 29 September 2015, while it is expected that the 
transaction for the Sancella S.A (Pty) Ltd business will be completed 
during the first quarter of the 2016 financial year.

During the previous year, the Nampak Cartons and Labels business was 
disposed with an effective date of 1 August 2014.

The above disposals are consistent with the group’s strategy of exiting 
its non-core and underperforming businesses.

The results of the discontinued operations included in the statement of 
comprehensive income are set out below.

R million                                                 2015      2014
Results of the discontinued operations for the year
Revenue                                                3 385.7   5 694.8
Expenses                                              (3 560.7) (5 974.4) 
Loss before tax                                         (175.0)   (279.6) 
Attributable income tax benefit                            8.1      73.5 
                                                        (166.9)   (206.1)
Loss on disposal of operations                          (350.2)    (33.7) 
Attributable income tax benefit                          122.3      17.4 
                                                        (227.9)    (16.3)
Loss for the year from discontinued operations          (394.8)   (222.4) 
Proceeds on disposal of the discontinued operations
The fair values of assets and liabilities 
disposed of were as follows:
Current assets
Inventory                                                756.5     243.1
Trade and other receivables                              958.9     215.2
Non-current assets
Property, plant and equipment                          1 275.8     159.4
Other intangible assets                                   12.0         — 
Investments                                                9.0         — 
Loans and receivables                                     25.8         — 
Current liabilities
Trade and other payables                                (699.8)   (216.1) 
Non-current liabilities
Post-retirement benefit liability                            —     (35.3) 
Deferred income                                           (6.9)        — 
Net assets disposed                                    2 331.3     366.3
Non-controlling interest released                          2.6         — 
Goodwill disposed                                         34.0         — 
Loss on disposal of businesses                          (350.2)    (33.7) 
Total disposal consideration                           2 017.7     332.6
Less: deferred sales proceeds                            (35.0)    (24.3) 
Net inflow on disposal                                 1 982.7     308.3

6. Determination of headline earnings
R million                                                  2015     2014
Continuing operations
Profit attributable to equity holders of the company
for the year                                            1 438.0  1 391.8
Less: preference dividend                                  (0.1)    (0.1) 
Basic earnings                                          1 437.9  1 391.7
Adjusted for:
Net impairment losses on property, plant and equipment    121.4     37.3
Gain on revaluation of original interest in business
acquired                                                      —     (9.4) 
Gain on revaluation and consolidation of Zimbabwe
associates                                               (124.2)       —
Net profit on disposal of property, plant, equipment
and intangible assets                                    (102.8)   (20.2) 
Tax effects and non-controlling interests                 (21.2)    (6.8) 
Headline earnings for the year                          1 311.1  1 392.6
Continuing and discontinued operations
Profit attributable to equity holders of the company
for the year                                            1 043.2  1 169.4
Less: preference dividend                                  (0.1)    (0.1) 
Basic earnings                                          1 043.1  1 169.3
Adjusted for:
Net impairment losses on property, plant, equipment
and intangible assets                                     121.4    431.5
Net loss on disposal of businesses                        350.2     33.7
Gain on revaluation of original interest in business
acquired                                                      —     (9.4) 
Gain on revaluation and consolidation of Zimbabwe
associates                                               (124.2)       —
Net profit on disposal of property, plant, equipment
and intangible assets                                     (99.2)   (18.1) 
Tax effects and non-controlling interests                (144.4)  (134.0) 
Headline earnings for the year                          1 146.9  1 473.0

7. Net overdraft
R million                                                 2015      2014
Bank balances, deposits and cash                       1 587.4   1 127.5
Bank overdrafts                                       (3 672.3) (1 808.5) 
                                                      (2 084.9)   (681.0)
8. Supplementary Information
R million                                                 2015      2014
Capital expenditure                                    2 195.2   2 620.1
— expansion                                              771.0   1 771.7
— replacement                                          1 352.6     833.5
— intangibles                                             71.6      14.9
Capital commitments                                    1 500.1   2 017.9
— contracted                                             727.2     623.2
— approved not contracted                                772.9   1 394.7
Lease commitments                                        175.6     274.9
— land and buildings                                     150.6     206.2
— other                                                   25.0      68.7
Contingent liabilities                                    64.2      38.6
— customer claims and guarantees                          14.8      38.6
— tax contingent liabilities                              49.4         —

9. Share statistics
R million                                                   2015    2014
Ordinary shares in issue (000)                           702 497 700 708
Ordinary shares in issue — net of treasury shares (000)  630 057 628 267
Weighted average number of ordinary shares on which 
basic earnings and headline earnings per share are
based (000)                                              629 726 627 728
Weighted average number of ordinary shares on which 
diluted basic earnings and diluted headline earnings
per share are based (000)                                637 369 649 808

10. Additional disclosures
R million                                                  2015     2014
Net gearing (%)                                              72       73
EBITDA*                                                 2 605.1  2 575.2
Net debt: EBITDA (times)*                                   2.3      2.2
Interest cover (times)                                      5.5      5.5
EBITDA*: Interest cover (times)                             9.3      8.3
Return on equity — continuing operations (%)                 19       24
Return on equity — continuing and discontinued
operations (%)                                               12       15
Return on net assets — continuing operations (%)             11       15
Return on net assets — continuing and discontinued
operations (%)                                               11       13
Net worth per ordinary share (cents)**                    1 456    1 255
Tangible net worth per ordinary share (cents)**             802      710
* EBITDA is calculated before net impairments.
** Calculated on ordinary shares in issue — net of treasury shares.

11. Translation reserve movement
Due to the weakening of the rand towards the end of the financial year, a 
translation gain of R774.6 million (2014: R381.9 million gain) was 
recognised for the year. The key closing exchange rates at 30 September 
were $1:R13.86 (2014: $1:R11.30) and £1:R20.97 (2014: £1:R18.33).

12. 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.

13. Independent auditor’s opinion
The auditors, Deloitte & Touche, have issued their opinion on the 
consolidated financial statements for the year ended 30 September 2015. 
The audit was conducted in accordance with International Standards on 
Auditing. They have issued an unmodified audit opinion. These summarised 
financial statements have been derived from the consolidated financial 
statements and are consistent in all material respects with the 
consolidated financial statements. Copies of their audit reports are 
available for inspection at the company’s registered office. Any 
reference to future financial performance included in this announcement, 
has not been reviewed or reported on by the company’s auditors. 

The auditor's report does not necessarily report on all of the information 
contained in this announcement/financial results. 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 that report 
together with the accompanying financial information from the issuer's 
registered office.

Administration
Independent non-executive directors
TT Mboweni (Chairman), RC Andersen, E Ikazoboh, NV Lila, PM Madi, IN Mkhari, 
RJ Khoza, CWN Molope, DC Moephuli, PM Surgey.

Executive directors
AM de Ruyter (Chief executive officer), GR Fullerton (Chief financial officer), 
FV Tshiqi (Group human resources director).

Secretary
NP O’Brien

Registered office
Nampak House, Hampton Office Park, 20 Georgian Crescent East , Bryanston, 
Sandton, 2191, South Africa
(PO Box 69983, Bryanston, 2021, 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 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.
Date: 26/11/2015 02:43:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story