Wrap Text
Pro Forma Financial Information for the Twelve Months Ended 31 March 2016
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE Code: PPC
ISIN: ZAE000170049
ZSE Code: PPC
("PPC" or the "Company")
Pro forma financial information for the twelve months ended 31 March 2016
In 2015 PPC announced a change in its financial year end to 31 March to further align and facilitate accounting and
reporting across the legal entities of the Group. As a result of the change in financial year end, the first year end reporting
period using the new financial year end was for the six month period to 31 March 2016. As the Group had previously
published results for the six month period ended 31 March 2015, a comparison of the performance of the Group was
possible.
In June 2017, PPC will release its results for the year ended 31 March 2017. These results will reflect the consolidated
statement of comprehensive income and consolidated statement of cash flows for a twelve month period. The comparable
reporting period will be for the six month period ended 31 March 2016. This limits an effective comparison of the
performance of the Group to the previous period. The Company therefore deems it appropriate to prepare pro forma
financial results for a twelve month period ended 31 March 2016, which will be used to assess the performance of the
Group.
This pro forma financial information for the twelve months to 31 March 2016 (new base) will also be used by the Company
to determine, in accordance with the Listing Requirements of the JSE Limited, whether the financial results will differ by
more than 20% from the previously reported period, being the new base, at the appropriate time as required.
The pro forma financial information illustrate the computation of PPC's consolidated statement of comprehensive income
and consolidated statement of cash flows for the twelve months ended 31 March 2016 only. The consolidated statement of
financial position remains unchanged from that previously reported and as a result is not included in this pro forma financial
information. Because of its nature, the pro forma financial information may not be a fair reflection of PPC's results of
operations or cash flows.
The pro forma consolidated statement of comprehensive income and consolidated statement of cash flows are presented in
a manner consistent in all respects with International Financial Reporting Standards (IFRS), the Revised SAICA Guide on
Pro Forma Financial Information and the basis on which the historical financial information has been prepared in terms of
accounting policies of the Company.
The PPC Board is responsible for the compilation, contents, accuracy and presentation of the summarised pro forma
financial and for the financial information from which it has been prepared.
The independent reporting accountants, Deloitte & Touche, have issued an unmodified assurance opinion on the
compilation of the pro forma financial information. The engagement was performed in accordance with the International
Standard on Assurance Engagements (ISAE) 3420. Their responsibility was to express an opinion about whether the pro
forma financial information has been complied, in all material respects, by the directors on the basis specified in the JSE
Listing Requirements. A copy of the independent reporting accountant's assurance report is available for inspection at the
Company's registered office.
The pro forma financial information also includes the impact on earnings and headline earnings per share following the
Company's rights offer, successfully closed on 16 September 2016, which resulted in the issuance of 1 billion new PPC
Ordinary Shares and the raising of R4 billion in gross proceeds. Following such a rights issue, the comparable weighted
average number of shares issued, and consequently the comparable reported earnings and headline earnings per share,
are required to be restated by IAS 33 (Earnings per Share). Further details of this restatement are included in the pro forma
financial information, within the Earnings and Headline earnings per share section.
This document, together with the previously published results announcements, are available for inspection at the
Company's registered office, being 148 Katherine Street, Sandton, 2146, during office hours or can be found on the
Company’s website www.ppc.co.za.
Sandton
9 March 2017
Sponsor:
Merrill Lynch South Africa (Pty) Limited
PRO-FORMA CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Column A B C D
Twelve months Six months Twelve months
Six months ended ended ended ended
31 March 30 Sept 31 March 31 March
2015 2015 2016 2016
Unaudited Audited Audited Pro forma
Rm Rm Rm Rm
Note 1 2 3 4
Revenue 4,541 9,227 4,501 9,187
Cost of sales 3,206 6,437 3,261 6,492
Gross profit 1,335 2,790 1,240 2,695
Administration and other operating expenditure 554 1,130 489 1,065
Operating profit before item listed below: 781 1,660 751 1,630
Empowerment transactions IFRS 2 charges 25 43 18 36
Operating profit 756 1,617 733 1,594
5
Fair value adjustments on financial instruments (1) 22 (20) 3
Finance costs 5 276 518 330 572
Investment income 11 28 12 29
Profit before equity accounted earnings and exceptional items 490 1,149 395 1,054
Loss from equity accounted investments (3) (16) - (13)
Impairments (44) (81) (5) (42)
Other exceptional adjustments and profit on disposal of non-core assets 1 - 117 116
Profit before taxation 444 1,052 507 1,115
Taxation 163 391 156 384
Profit for the period 281 661 351 731
Attributable to:
Shareholders of PPC Ltd 274 698 369 793
Non-controlling interests 7 (37) (18) (62)
Other comprehensive income, net of taxation 246 775 177
Items that will be reclassified to profit or loss 6 - 775 177 952
Cash flow hedges - 38 10 48
Taxation on cash flow hedges - (11) (3) (14)
Reclassification of profit on sale of available-for-sale financial asset to profit and loss - - (82) (82)
Taxation impact on reclassification of profit on sale of available-for-sale financial asset to profit and loss - - 15 15
Revaluation of available-for-sale financial asset - (7) - (7)
Taxation impact on the revaluation of available-for-sale financial asset - 3 - 3
Translation of foreign operations 7 246 752 237 743
Total comprehensive income 527 1,436 528 1,437
Attributable to:
Shareholders of PPC Ltd 483 1,340 520 1,377
Non-controlling interests 44 96 8 60
Earnings per share (cents) 8
Basic 52 133 70 151
Diluted 51 131 69 149
Notes:
1. Column A has been obtained from PPC's unaudited results for the six months ended 31 March 2015, published on JSE Limited Stock Exchange News Service (SENS) on 18 May
2015. All items are without adjustment except for the disclosure on "translation of foreign operations", and resulting impact on "total comprehensive income" and "attributable to", which
were restated and presented as such with corresponding explanation within the six months to 31 March 2016 SENS announcement, published on SENS on 13 June 2016.
2. Column B has been obtained without adjustment from PPC's audited results for the twelve months ended 30 September 2015, published on SENS on 17 November 2015.
3. Column C has been obtained without adjustment from PPC's audited results for the six months ended 31 March 2016, published on SENS on 13 June 2016.
4. Column D has been derived by subtracting the results included in Column A from those included in Column B and then adding Column C.
5. For columns A and B, finance costs have been split to reflect fair value adjustments on financial instruments separately from finance costs in order to improve understanding of the
results. In prior reporting, the split was included in the underlying finance cost note. Column C reflected this line as "foreign exchange loss/(gain) on foreign currency monetary items".
This reclassification will be recurring.
6. In the unaudited results for the six months ended 31 March 2015, published on SENS on 18 May 2015, this description was 'Items that will be reclassified to profit or loss upon
derecognition'. For all the other financial period ends presented, the line description used is consistent with that above.
7. Regarding the Column A disclosure, an adjustment was effected so as to include the portion owing to "non-controlling interests". This was previously shown directly in the consolidated
statement of changes in equity. This adjustment was presented within the comparative figures to PPC's audited results for the six months ended 31 March 2016, published on SENS on
13 June 2016, together with the updated "total comprehensive income attributable to" disclosure.
8. Shown before the impact of the September 2016 rights issue. Additional information on earnings and headline earnings per share is included in the Earnings and Headline Per share
section in this pro forma financial information.
EARNINGS AND HEADLINE EARNINGS PER SHARE
Column A B C D
Twelve months Six months Twelve months
Six months ended ended ended ended
31 March 30 Sept 31 March 31 March
2015 2015 2016 2016
Unaudited Audited Audited Pro forma
Note 1 2 3 4
Earnings and headline earnings per share (cents)
Before the impact of the rights issue
Earnings per share
Basic 52 133 70 151
Diluted 51 131 69 149
Basic (normalised) 5 61 148 56 143
Diluted (normalised) 5 60 147 55 142
Headline earnings per share
Basic 60 145 53 138
Diluted 59 143 52 136
Basic (normalised) 5 61 149 56 144
Diluted (normalised) 5 60 147 55 142
6
After the impact of the rights issue
Earnings per share
Basic 40 103 54 117
Diluted 39 101 53 115
Basic (normalised) 5 47 114 43 111
Diluted (normalised) 5 46 113 42 109
Headline earnings per share
Basic 46 112 41 107
Diluted 46 110 41 105
Basic (normalised) 5 47 114 43 110
Diluted (normalised) 5 46 113 42 109
Reconciliation of earnings and headline earnings per share (before impact of the rights issue)
R'millions
Profit for the period attributable to shareholders of PPC 274 698 369 793
Adjusted for: -
Other exceptional adjustments and impairments 7 42 79 (110) (74)
Taxation on other exceptional adjustments and impairments - (16) 21 5
Headline earnings 316 761 280 724
Cents
Earnings per share 52 133 70 151
Adjusted for:
Other exceptional adjustments and impairments 7 8 15 (21) (14)
Taxation on other exceptional adjustments and impairments - (3) 4 1
Headline earnings per share 60 145 53 138
Weighted average number of shares ('000)
Before the impact of the rights issue
Weighted average number of shares used for:
Earnings and headline earnings per share 527,189 526,022 526,076 524,909
Dilutive earnings and headline earnings per share 532,236 532,236 534,037 534,037
Cash earnings per share 527,189 526,022 527,877 526,710
6
After the impact of the rights issue
Weighted average number of shares used for:
Earnings and headline earnings per share 681,525 680,016 680,086 678,577
Dilutive earnings and headline earnings per share 688,049 688,049 690,377 690,377
Cash earnings per share 681,525 680,016 680,086 678,577
Notes:
1. Column A has been obtained without adjustment from PPC's unaudited results for the six months ended 31 March 2015, published on SENS on 18 May 2015.
2. Column B has been obtained without adjustment from PPC's audited results for the twelve months ended 30 September 2015, published on SENS on 17 November 2015.
3. Column C has been obtained without adjustment from PPC's audited results for the six months ended 31 March 2016, published on SENS on 13 June 2016.
4. Column D has been derived by subtracting the results included in Column A from those included in Column B and then adding Column C.
5. Normalised earnings per share adjusts the reported earnings for the effects of empowerment transaction IFRS 2 charges, restructuring costs, impairments and other exceptional
adjustments net of taxation and prior year taxation adjustments. For Column A, as the unaudited results for the six months ended 31 March 2015 did not present diluted (normalised)
HEPS, this number was extracted from the comparative figures to PPC's audited results for the six months ended 31 March 2016, published on SENS on 13 June 2016.
6. During September 2016, PPC concluded an oversubscribed rights issue. The weighted average number of shares used for calculating earnings and headline earnings per share,
dilutive earnings and headline earnings per share and cash earnings per share for the prior reporting periods were adjusted by a factor of 1.3 in accordance with guidance provided in
IAS 33 Earnings per Share. The weighted average number of shares and earnings and headline earnings per share after the impact of the rights issue for the periods ended 30
September 2015 and 31 March 2016 have been extracted from the reviewed condensed consolidated financial statements for the six months ended 30 September 2016, released on
SENS on 16 November 2016. The same factor has been applied to these comparatives for the period ended 31 March 2015. When PPC reports its results for the year ended 31 March
2017, the earnings and headline earnings per share after the impact of the rights issue will be used as the comparative earnings and headline earnings per share.
7. In the SENS announcement for the period ended 31 March 2015, impairments where shown separately as 'impairment of goodwill' and 'impairment of property, plant and equipment'.
For purposes of comparability, these have been aggregated into a single line item for these pro forma financial statements.
PRO-FORMA CONSOLIDATED STATEMENT OF CASH FLOWS
Column A B C D
Twelve months Twelve months
Six months ended Six months ended
ended ended
31 March 30 Sept 31 March 31 March
2015 2015 2016 2016
Unaudited Audited Audited Pro forma
Rm Rm Rm Rm
Note 1 2 3 4
Cash flow from operating activities
Operating cash flows before movements in working capital 1,171 2,416 1,137 2,382
Working capital movements (31) 300 (324) 7
Cash generated from operations 1,140 2,716 813 2,389
Finance costs paid (252) (408) (292) (448)
Investment income received 11 28 8 25
Taxation paid (252) (489) (195) (432)
Cash available from operations 647 1,847 334 1,534
Dividends paid (423) (559) (185) (321)
Net cash inflow from operating activities 224 1,288 149 1,213
Acquisition of additional shares in equity accounted investment - - (75) (75)
Acquisition of additional shares in subsidiary - (108) - (108)
Proceeds on sale of equity accounted investment and available-for-sale financial
- - 153 153
asset
Investments in property, plant and equipment and intangible assets (1,008) (2,892) (1,188) (3,072)
Movement in other non-current assets - - (181) (181)
Other investing movements 9 5 8 4
Net cash outflow from investing activities (999) (2,995) (1,283) (3,279)
Net borrowings raised before note/bond repayment 632 1,796 1,499 2,662
Purchase of shares in terms of the FSP share incentive scheme - (24) - (24)
Repayment of note/bond - - (650) (650)
Net cash inflow from financing activities 632 1,772 849 1,988
-
Net movement in cash and cash equivalents (143) 65 (285) (77)
Cash and cash equivalents at beginning of the period 563 563 718 464
Exchange rate movements on opening cash and cash equivalents 44 90 27 73
Cash and cash equivalents at end of the period 464 718 460 460
5
Cash earnings per share (cents) 123 351 63 291
Cash conversion ratio 6 1.0 1.1 0.7 1.0
Notes:
1. Column A has been obtained without adjustment from PPC's unaudited results for the six months ended 31 March 2015, published on SENS on 18 May 2015.
2. Column B has been obtained without adjustment from PPC's audited results for the twelve months ended 30 September 2015, published on SENS on 17 November 2015.
3. Column C has been obtained without adjustment from PPC's audited results for the six months ended 31 March 2016, published on SENS on 13 June 2016.
4. Column D has been derived by subtracting the results included in Column A from those included in Column B and then adding Column C.
5. Cash earnings per share is calculated using cash available from operations dividend by the total weighted average number of shares in issue for the period. Shown before
the impact of the September 2016 rights issue. Additional information on earnings and headline earnings per share is included in the section Earnings and Headline Per share
in this document.
6. Cash conversion ratio is calculated using cash generated from operations divided by EBITDA.
Date: 09/03/2017 02:45:00 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.
Sharenet Sites 
