Wrap Text
Summarised consolidated financial results for the six months ended 31 March 2018
Nampak Limited
(Incorporated in the Republic of South Africa)
Registration Number: 1968/008070/06
Share Code: NPK
ISIN: ZAE000071676
(“Nampak” or “the Company”)
Summarised consolidated financial results
For the six months ended 31 March 2018
Highlights
* Revenue increased to R8.8?bn up by 2%
* Trading profit increased to R1.2bn up by 7%
* HEPS increased by 10% to 132.0 cents per share
* R1.3bn (USD97.6M) cash extracted from Nigeria, Angola and Zimbabwe
* Operating profit decreased to R1.0bn down by 6%
* Net gearing improved to 39% from 51% — financial position further
enhanced
Nampak’s CEO, André de Ruyter, commented “Our performance from continuing
operations is pleasing in a mixed economic and political environment. All
our beverage can making operations and plastics in the Rest of Africa
achieved pleasing results while the rest of the group delivered a
satisfactory performance under adverse conditions, characterised by
reduced demand, particularly prior to December 2017.
Our focus on strengthening our financial position and prudent capital
allocation has resulted in improved cash generation, reduced gearing and
improved margins. We are intent on ensuring we have a solid foundation
on which to grow our operations. Management and the Board will continue
to operate the business in order to build a sustainable, profitable
business in which shareholder returns are optimised.”
Commentary
Revenue from continuing operations grew by 2% and trading profit rose by
7% as a result of robust demand in the Metals and Plastics Divisions’
performance in the Rest of Africa. Nampak’s headline earnings and headline
earnings per share (“HEPS”) for continuing operations increased 11% and
10% to R849 million (2017: R767 million) and 132.0c (2017: 119.7c)
respectively.
Cash extraction improved significantly as the introduction of the Nigerian
Autonomous Foreign Exchange (“NAFEX”) market in April 2017 enabled further
extraction of USD74 million from Nigeria for the six months to March 2018,
improving the extraction rate to 137% from 80% in the comparative period
and reducing the cash balance by 57% from R955 million to R410 million.
Hedging in Angola also improved to 95% from 77% in March 2017.
The results were impacted by the South African Rand (“Rand”) which
was on average 6% stronger versus the US dollar for the six month period and
13% stronger as at the end of the period compared to 30 September 2017. This
meant the translation of revenue growth in the Rest of Africa was moderated.
Net gearing at 31 March 2018 benefitted from the firmer Rand, however, the
statement of other comprehensive income reported adverse unrealised foreign
exchange differences on translation of foreign operations amounting to
R665 million. Despite net gearing being managed to the lower levels of the
group’s targeted range, cash extraction from Angola and Zimbabwe was less
than satisfactory and remains a key focus area.
Good progress has been made in improving key foundational operating
practices at our Glass Division. Pack-to-Melt ratios have stabilised at
reasonably satisfactory levels, and further improvements are expected as
newly introduced skills and practices gain traction. As required by
International Financial Reporting Standards, rigorous impairment tests
were carried out on the Glass Division. The results of these tests, as
verified by our external auditors, indicate that no impairment is
required, and that sufficient headroom exists.
Following a careful review of the Glass business, challenges in
leveraging economies of skill and scale, and its significant capital
requirements going forward, the Board decided to dispose of the
operation in order to free up cash for other uses, including growth,
debt reduction and enhancing free cash flow. Accordingly, Glass has
been accounted for as a discontinued operation separately in the group
statement of comprehensive income with associated assets and liabilities
being grouped together and separately disclosed on the face of the
statement of financial position. Exploratory discussions have been held
with a number of strategic players in the packaging industry and a
formal disposal process is in its initial stages. We expect to conclude
the transaction by the first half of the 2019 financial year.
Financial performance from continuing operations
R million H1 2018 H1 2017 % change
Revenue 8 845 8 668 +2
Trading profit 1 164 1 085 +7
Net abnormal (losses)/gains (121) 24 (>100)
Operating profit 1 043 1 109 (6)
Net profit for the period 871 896 (3)
Earnings per share (cents) 129.4 127.4 +2
Headline earnings per share (cents) 132.0 119.7 +10
Cash generated from operations 576 524 +10
Revenue and trading margins
Revenue improved by 2% driven by a strong performance in the Metals
Division. Bevcan in South Africa and Nigeria experienced pleasing sales volume
growth and DivFood recovered from low fish can volumes in the comparative
period. Trading margins were also positively impacted as trading profit
rose by 7%. Pleasing volume growth in Bevcan Angola was abated by a much
stronger Rand to the US dollar, which resulted in a modest increase in
revenue. While the Plastics Division revenue was flat, strong growth in
the Rest of Africa mitigated volume losses experienced in South Africa
and Europe and contributed significantly to overall margin improvement.
The rationalisation of the Paper Division also contributed towards
improved trading margins for the group of 13.2% from 12.5% in the prior
period.
Abnormal items and operating profit
Abnormal losses for the period are largely attributable to foreign
exchange losses of R75 million from the devaluation of the Angolan
kwanza. A further R21 million loss was attributable to the cost of
repatriating cash from Nigeria. Net impairments of R26.6 million are
largely attributable to the European business while retrenchment costs
contributed to the 6% reduction of operating profit to R1.0 billion.
Taxation
The effective tax rate for the period improved to 9.0% from 9.7%.
Bevcan Nigeria’s pioneer status expired on 31 December 2017 and the
tax rate going forward is expected to increase gradually once
accumulated tax allowances have been fully utilised in Nigeria. The
2019 tax rate is expected to rise as the tax holiday for Bevcan Angola
comes to an end on 30 April 2019. The tax rate for the full year may be
impacted by relative contributions from Nigeria and Angola, but, as
required by accounting standards, the rate communicated for the half
year is expected to prevail for the full year. The tax rate is lower
than previously communicated to the market due to significantly
improved cash extractions from Nigeria.
Net earnings
Headline earnings, which exclude capital items, grew 11% to R849
million resulting in headline earnings per share for continuing
operations of 132.0c reflecting a 10% improvement from 119.7c. Net
profit for the period declined 3% to R871 million and benefitted
from lower net finance costs and a lower tax rate.
Financial position
The group’s financial position continues to improve with gearing at
39% from 51% in the comparative period and 45% at year-end in
September 2017. The balance sheet remains strong, with key ratios
firmly under control and adequate facilities available to fund all
of the group’s activities. This is largely attributable to net debt
balances reducing by 27% to R3.8 billion from R5.2 billion resulting
from the higher cash balances in restricted areas and the strengthening
of the Rand against the US dollar.
Cash extraction in the Rest of Africa
The Rand equivalent of cash balances held in the currently cash
restricted areas of Angola and Zimbabwe increased by 25% to R3.6 billion
on the back of strong cash generation in Angola and Zimbabwe and slower
than expected repatriation of foreign currency due to in country US dollar
shortages. In Angola, 95% of cash is hedged and management continues to
monitor the region closely.
Cash balances in Zimbabwe have grown to R816 million from R654 million at
30 September 2017. Following intensive engagements with customers and the
Zimbabwe Central Bank, Nampak expects to be allocated foreign currency on
a monthly basis, as from the second half of the 2018 financial year.
Cash balances and extraction rates in Angola, Zimbabwe and Nigeria are
as follows:
Non-
Restricted restricted
31 March 2018 Angola Zimbabwe Total Nigeria
Cash on hand (Rm) 2 748 816 3 564 410
Hedged cash (Rm) 2 622 —2 2 622 —3
% cash hedged 95 —2 74 —3
Cash extraction rate (%)1 61 6 37 137
Non-
Restricted restricted
30 September 2017 Angola Zimbabwe Total Nigeria
Cash on hand (Rm) 2 188 654 2 842 828
Hedged cash (Rm) 1 954 —2 1 954 —3
% cash hedged 89 —2 69 —3
Cash extraction rate (%)1 47 40 47 93
Non-
Restricted restricted
31 March 2017 Angola Zimbabwe Total Nigeria
Cash on hand (Rm) 1 436 426 1 862 955
Hedged cash (Rm) 1 107 —2 1 107 344
% cash hedged 77 —2 36
Cash extraction rate (%)1 80 80
1 Liquidity ratio of invoices presented for payment in the period.
2 There are currently no appropriate hedges available in Zimbabwe.
3 Cash balances in Nigeria are no longer considered restricted as a
consequence of the liquidity that has been provided by the introduction
of the NAFEX.
Foreign exchange rate movements
Nampak has sizeable operations outside South Africa and, as a result, its
performance is impacted by various foreign currency movements. Currency
movements for key markets are set out in the following table:
Average rates
31 Mar 31 Mar % 30 Sep
2018 2017 change 2017
ZAR/GBP 17.35 16.83 (3) 16.96
ZAR/EUR 15.36 14.54 (6) 14.78
ZAR/USD 12.78 13.57 6 13.38
NGN/USD 359.75 311.69 (15) 321.90
AOA/USD 189.76 171.73 (10) 171.74
Closing rates
31 Mar 30 Sep % 31 Mar
2018 2017 change 2017
ZAR/GBP 16.62 18.17 9 16.83
ZAR/EUR 14.57 15.98 9 14.29
ZAR/USD 11.86 13.56 13 13.41
NGN/USD 360.00 358.99 — 314.29
AOA/USD 218.64 171.75 (27) 171.73
The Angolan kwanza has been devalued through a series of controlled
auctions by the Angolan Central Bank and has devalued by 27% at the
end of March 2018 compared to 30 September 2017. While the strengthening
of the Rand against the US dollar has adversely impacted the translation
of foreign earnings for Rest of Africa territories, the translation of
the group’s dollar denominated borrowings was positively impacted. The
Rand’s weakened position against the Pound benefitted the European region.
While there has been no material devaluation in the closing rate of the
Nigerian naira since the introduction of the NAFEX market in April 2017,
the average rate reflects a 15% devaluation against the US dollar for the
comparative period.
The stronger Rand/US dollar rate used to mark to market other monetary
items led to foreign exchange translation losses of R149 million, most
of which are unrealised.
Capital expenditure
Capital expenditure for the period more than halved to R206 million from
R470 million for the same period in 2017 as a result of more stringent
capital allocation by management. Capital expenditure for the full year
is expected to be similar to, if not below, the 2017 year amount of
R735 million.
Trading performance
Revenue Trading profit
R million H1 2018 H1 2017 H1 2018 H1 2017
Metals 5 849 5 570 925 883
Plastics 2 393 2 400 121 89
Paper 603 698 78 57
Corporate services — — 40 56
Continuing operations 8 845 8 668 1 164 1 085
Discontinued operation:
Glass 720 663 (55) 23
Group total 9 565 9 331 1 109 1 108
Trading margin (%)
R million H1 2018 H1 2017
Metals 15.8 15.9
Plastics 5.1 3.7
Paper 12.9 8.2
Corporate services — —
Continuing operations 13.2 12.5
Discontinued operation:
Glass (7.6) 3.5
Group total 11.6 11.9
Continuing operations
Metals
Revenue for the Metals Division increased by 5% propelled by robust
demand in South Africa and Nigeria. Volume growth was substantially
higher than GDP growth rates in both countries and suggests increasing
can pack shares and improved consumer confidence. Buoyant volume growth
and capacity rationalisation as a result of the closure of the Bevcan
Cape Town line are expected to significantly mitigate any risk of
underutilised capacity in Bevcan SA. Bevcan Angola and DivFood in
South Africa also reported good volume growth compared to the prior
period and contributed to the strong performance of this division.
Bevcan SA is making good progress with the closure of the Cape Town can
line which will save annual operating costs of R50 million and a further
R5 million saving at head office level. DivFood experienced a pleasing
recovery as the fish category performed well, on the back of an improved
fish catch and substitution with imported bulk frozen fish. The vegetable
category continued to do well due to overall improved consumer sentiment
which drove both revenue growth and margin improvement. As a result,
revenue for Metals in South Africa rose by 7%. Excellent safety standards
and efficiency gains as a result of operational excellence initiatives
contributed to improved margins.
Despite pleasing volume growth, revenue growth at Bevcan Angola was
moderated by the strengthening of the Rand against the US dollar. Trading
profit in country was reduced to the extent that ends previously sold by
the entity are now being directly supplied from South Africa, priced in
hard currency and raw material cost pressures emanating from the
devaluation of the kwanza. The conversion of the tin plate line to
aluminium is being held in abeyance in anticipation of foreign currency
allocation from the government. In addition to selling ends directly from
South Africa, management has introduced further interventions to mitigate
the exposure of the group in this country by limiting raw material purchases
to the extent customers and/or the government are able to avail foreign
currency. Should foreign currency not be made available to secure raw
material inputs for customers, production will be constrained, which will
attenuate the build-up of cash in Angola.
Bevcan Nigeria volumes grew significantly, driven largely by the malt
category. The recent introduction of excise duty on alcohol beverages has
not had a discernible impact on volume to date. Additional volumes
improved operational efficiencies and safety records have been maintained.
The diversified canning operations in the Rest of Africa were impacted by
lower sales in Nigeria and Kenya. Kenya was challenged by backward
integration by a major customer and a turnaround is in progress to improve
the profitability of this operation. The feasibility of a food can line
in Lagos, Nigeria is also being investigated to cater for anticipated
growth in the food sector as the economy recovers.
Plastics
This division was impacted by loss of bottle volumes in South Africa and
Europe which was mitigated by growth in closures in South Africa and
excellent performance by Zimbabwean entities. As a result, overall revenue
was flat. Stringent cost management in Europe, capacity filling initiatives
in South Africa and the strong performance in Zimbabwe saw trading profit
grow 36% to R121 million from R89 million.
Revenue for Rigid Plastics in South Africa remained steady despite the
volume lost as a result of a lower allocation of a tender as a key customer
consolidated its manufacturing footprint. This, coupled with lower preform
volumes as a result of backward integration by two customers in 2017, led
to lower efficiencies and hence lower margins for liquid packaging.
Initiatives to increase capacity utilisation and strong water container
demand throughout the country mitigated these losses especially in regions
heavily impacted by the drought. Good growth in closures, following new
customers gained and additional volumes from existing customers, also
filled the gap leading to relatively flat revenue growth in South Africa.
In response to a disappointing performance, a turnaround plan has been
approved which will result in a reduction in headcount of approximately
300 employees. Two low margin businesses have been earmarked for disposal,
three additional plants will be consolidated into two existing facilities,
warehousing coupled with supply chain will be optimised and an investment
into selected new equipment will result in efficiency gains. Once fully
implemented, profitability is expected to improve by R131 million per
annum, with once off costs of R106 million to implement the restructuring
over an 18 month period from June 2018 and capital investment of some
R66 million. The restructuring will result in a more sustainable and
profitable business by FY2020.
Liquid Cartons in South Africa continues to perform well against the
backdrop of a tough trading environment at the lower end of the beverage
sector. Business development interventions to leverage the environmental
advantage of cartons are underway to increase capacity utilisation.
The performance in the Rest of Africa was exceptional and demand in
Zimbabwe was driven by increased market share from new customers and
new products as well as the ability to manage foreign exchange exposure
through stricter credit terms. Margins improved in excess of revenue and
led to better margins for the region and the division overall. Nampak
will continue working closely with customers and banks in order to
continue the supply of packaging products in the market. Strict credit
limits have been imposed on Nampak’s Zimbabwe operations to manage the
risk associated with limited US dollar liquidity in that country.
In spite of Nampak Plastics Europe being impacted by lower volumes,
management’s focus on turning this business around, managing costs and
improving operational efficiencies has begun to yield results and the
operating loss was reduced by 72% to R11 million compared to the prior
period. This further contributed towards improved margins for the
Plastics Division of 5.1% from 3.7% in the comparative period. This
business is expected to return to profitability by the end of the
financial year.
Paper
Revenue contracted for the period as a result of lower carton sales in
Zambia and Malawi following a change of pack strategy by brewers in these
countries. A pleasing recovery in carton sales in Nigeria led to improved
profitability off modestly higher sales. Tobacco case sales in Zimbabwe
were moderately lower in light of limited availability of foreign currency,
but contributed to improved profitability. Ongoing initiatives to service
this region collectively continued and Malawi was restructured to function
as a depot in order to improve profitability of this region going forward.
Discontinued operation
Glass
This division experienced good revenue growth, driven by volume growth.
Performance has, however, been impacted by internal production inefficiencies
and skills issues which are in the process of being addressed. Whilst energy
supply challenges were resolved by stabilising the electricity into the
operation at the beginning of the calendar year, operational challenges
continued, coupled with high depreciation reflective of its capital intensity,
this division was not profitable and made a trading loss of R55 million for the
period. Management has decided to dispose of the Glass operation as it is
difficult to justify further capital allocation to this division to the Board
and shareholders, with its current performance, owing to lower than required
returns on invested capital. Recovery plans are in place, relevant operational
skills have been introduced and there are early signs of improvement with a
better pack-to–melt ratio for the month of April, subsequent to the reporting
period.
Trading performance by region is as follows:
Revenue Trading profit
R million H1 2018 H1 2017 H1 2018 H1 2017
South Africa 5 208 4 953 527 458
Rest of Africa 2 973 2 933 608 610
Europe 664 782 (11) (39)
Corporate services — — 40 56
Continuing operations 8 845 8 668 1 164 1 085
Discontinued operation:
South Africa (Glass) 720 663 (55) 23
Group total 9 565 9 331 1 109 1 108
Trading margin (%)
R million H1 2018 H1 2017
South Africa 10.1 9.2
Rest of Africa 20.5 20.8
Europe (1.7) (5.0)
Corporate services — —
Continuing operations 13.2 12.5
Discontinued operation:
South Africa (Glass) (7.6) 3.5
Group total 11.6 11.9
Outlook
With improving business confidence and higher economic growth forecast
for South Africa, demand for packaging is expected to grow at increased
rates in 2018 and 2019. This, together with improved consumer sentiment,
will boost beverage can market growth and management anticipates that
additional capacity by a new entrant in the beverage can market is likely
to be absorbed in the medium term.
The closure of the Cape Town plant will remove 700 million beverage cans’
capacity in this market. Consequently, cost savings from a reduced
manufacturing footprint and gains from improved operating efficiencies
are also expected to mitigate the impact of a new entrant into the market.
The momentum at DivFood is expected to continue for the rest of the year.
Top line growth in Plastics is expected to remain challenging as management
will focus on turning this business around and offset the impact of reduced
volumes by capacity filling for the rest of the year. Cost savings from the
extensive restructuring plan to be implemented over the next 12 – 18 months
should result in improved profitability going forward.
The group’s operations in the Rest of Africa are anticipated to continue
generating cash as demand in Angola, the recovering economy in Nigeria and
limited competition in Zimbabwe will drive demand for packaging products.
Overall performance will, however, be impacted by macroeconomic dynamics.
Unless the kwanza is further devalued and/or initiatives to repatriate
foreign reserves are progressed in Angola, foreign currency shortages are
expected to continue for the rest of 2018. While the improving oil price
will assist in increasing foreign exchange reserves, management will continue
to only operate to the extent customers and the government are able to supply
foreign currency required for raw material inputs. If liquidity in Zimbabwe
does not improve in the second half, performance will be subdued as more
stringent requirements for customers have been put in place to limit exposure
in that country. The restructuring in the other entities in the Rest of Africa
will continue to service this region optimally.
The European business will keep its focus on securing additional volume from
second-tier dairies and optimise its structure. This business is expected to
return to profitability during the 2018 financial year, one year earlier than
previously guided.
Dividend
Despite significantly improved gearing and improved cash extraction from
Nigeria, no dividend was declared for the period as a consequence of significant
cash balances currently held in restricted areas.
On behalf of the board
TT Mboweni AM de Ruyter GR Fullerton
Chairman Chief executive officer Chief financial officer
Bryanston
30 May 2018
Condensed group statement of comprehensive income
Restated Restated
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Mar 31 Mar Change 30 Sep
R million Notes 2018 2017 % 2017
Continuing operations
Revenue 8 845.3 8 668.2 2 17 401.8
Operating profit 3 1 043.5 1 109.1 (6) 1 430.2
Finance costs (270.3) (243.6) (508.8)
Finance income 181.5 128.8 287.4
Share of net profit/(loss)
from associates and joint
ventures 2.3 (2.3) 0.1
Profit before tax 957.0 992.0 (4) 1 208.9
Income tax expense (86.0) (96.2) (304.0)
Profit for the period from
continuing operations 871.0 895.8 (3) 904.9
Discontinued operation
Loss for the period from
discontinued operation 4 (107.1) (42.6) (548.9)
Profit for the period 763.9 853.2 (10) 356.0
Other comprehensive
(expense)/income, net of tax
Items that may be reclassified
subsequently to profit or loss
Exchange differences on
translation of foreign (664.5) (138.8) (122.1)
operations
Gain/(loss) on cash flow
hedges 88.0 (0.7) (14.1)
Items that will not be
reclassified to profit or
loss
Net actuarial gain from
retirement benefit
obligations — — 19.5
Other comprehensive expense
for the period, net of tax (576.5) (139.5) (>100) (116.7)
Total comprehensive income
for the period 187.4 713.7 (74) 239.3
Profit attributable to:
Owners of Nampak Ltd 725.7 773.4 (6) 234.8
Non-controlling interests in
subsidiaries 38.2 79.8 121.2
763.9 853.2 (10) 356.0
Total comprehensive income/
(expense) attributable to:
Owners of Nampak Ltd 205.6 641.6 (68) 120.3
Non-controlling interests in
subsidiaries (18.2) 72.1 119.0
187.4 713.7 (74) 239.3
Continuing operations
Earnings per share (cents) 129.4 127.4 2 122.3
Diluted earnings per share
(cents) 129.0 127.1 2 121.9
Continuing and discontinued
operations
Earnings per share (cents) 112.8 120.8 (7) 36.6
Fully diluted earnings per
share (cents) 112.4 120.4 (7) 36.5
Condensed group statement of financial position
Restated
Unaudited Unaudited Audited
R million Notes 31 Mar 2018 31 Mar 2017 30 Sep 2017
Assets
Non-current assets
Property, plant and
equipment and investment
property 7 650.6 10 471.3 10 151.4
Goodwill and other
intangible assets 3 143.5 3 979.3 3 568.8
Joint ventures, associates
and other investments 22.8 25.3 21.8
Deferred tax assets 25.6 57.3 49.3
Liquid bonds and other loan 6 1 832.0 752.8 1 164.0
receivables*
Current assets
12 674.5 15 286.0 14 955.3
Inventories 3 010.3 3 572.9 3 980.3
Trade receivables and other
current assets?* 2 626.8 3 010.8 3 009.9
Tax assets 19.9 194.6 17.3
Liquid bonds and other loan
receivables — current* 6 882.8 424.8 882.1
Bank balances and deposits* 1 844.2 2 369.5 2 385.0
8 384.0 9 572.6 10 274.6
Assets classified as held
for sale 4 2 589.4 — —
Total assets 23 647.9 24 858.6 25 229.9
Equity and liabilities
Capital and reserves
Share capital 35.5 35.4 35.5
Capital reserves (65.3) (112.3) (116.4)
Other reserves (604.5) (98.0) (84.4)
Retained earnings 10 215.1 10 011.9 9 476.9
Shareholders’ equity 9 580.8 9 837.0 9 311.6
Non-controlling interest 351.3 322.6 369.5
Total equity 9 932.1 10 159.6 9 681.1
Non-current liabilities
Loans and other borrowings 3 225.1 6 080.2 6 007.2
Retirement benefit
obligation 1 465.2 1 602.5 1 558.0
Deferred tax liabilities 283.1 423.1 294.5
Other non-current
liabilities 57.3 53.4 64.8
5 030.7 8 159.2 7 924.5
Current liabilities
Trade payables, provisions
and other current
liabilities 3 334.2 3 797.3 4 766.0
Tax liabilities 33.9 55.6 82.6
Loans and other borrowings —
current 2 138.4 338.3 221.9
Bank overdrafts 3 027.2 2 348.6 2 553.8
8 533.7 6 539.8 7 624.3
Liabilities directly
associated with assets
classified as held for sale 4 151.4 — —
Total equity and liabilities 23 647.9 24 858.6 25 229.9
* During September in the prior year, the US dollar indexed kwanza bonds
(described as “liquid bonds”) were reclassified from cash equivalents to
loan receivables after a reassessment of their nature in terms of IAS7:
Statement of Cash flows. As a result of this reclassification, these
bonds (amounting to R687.3 million being non-current and R419.5 million
being current) were removed from “bank balances and deposits” (previously
described as “bank balances, deposits and cash equivalents”) where they
had been presented in March 2017 and presented together with other non-
current loan receivables (previously described as “non-current assets”)
as “liquid bonds and other loan receivables”. In addition, the current
portion of loan receivables, which was previously presented as part of
“trade receivables and other current assets” has now been separately
presented as “liquid bonds and other loan receivables — current”.
Condensed group statement of changes in equity
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Mar 31 Mar 30 Sep
R million 2018 2017 2017
Opening balance 9 681.1 9 444.5 9 444.5
Net shares issued during the
period 5.6 11.7 11.8
Share-based payment expense 9.1 9.1 5.0
Share grants exercised (5.7) (11.7) (11.7)
Treasury shares disposed 54.6 — —
Acquisition of business — (7.7) (7.7)
Total comprehensive income for
the period 187.4 713.7 239.3
Dividends paid — — (0.1)
Closing balance 9 932.1 10 159.6 9 681.1
Comprising:
Share capital 35.5 35.4 35.5
Capital reserves (65.3) (112.3) (116.4)
Share premium 268.0 262.4 262.4
Treasury shares (515.8) (557.9) (557.9)
Share-based payments reserve 182.5 183.2 179.1
Other reserves (604.5) (98.0) (84.4)
Foreign currency translation
reserve 766.9 1 363.8 1 375.0
Financial instruments hedging
reserve 92.7 18.1 4.7
Recognised actuarial losses (1 447.1) (1 466.6) (1 447.1)
Share of non-distributable
reserves in associates and joint
ventures — 3.7 —
Other (17.0) (17.0) (17.0)
Retained earnings 10 215.1 10 011.9 9 476.9
Shareholders' equity 9 580.8 9 837.0 9 311.6
Non-controlling interest 351.3 322.6 369.5
Total equity 9 932.1 10 159.6 9 681.1
Condensed group statement of cash flows
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Mar 31 Mar 30 Sep
R million Notes 2018 2017 2017
Cash generated from operations
before working capital changes 7.1 1 435.4 1 435.5 2 276.0
Working capital changes 7.1 (859.7) (911.5) (326.8)
Cash generated from operations 7.1 575.7 524.0 1 949.2
Net interest paid (221.8) (198.2) (405.8)
Income tax paid (78.2) (75.1) (152.7)
Cash flows from operations 275.7 250.7 1 390.7
Dividends paid — — (0.1)
Net cash generated from
operating activities 275.7 250.7 1 390.6
Capital expenditure (206.0) (469.7) (735.3)
Replacement1 (139.3) (227.8) (377.0)
Expansion (66.7) (241.9) (358.3)
Net proceeds on the disposal of
business — 56.5 57.8
Post-retirement medical aid buy-
out — (562.3) (569.2)
Increase in liquid bonds for
hedging purposes2 (994.4) (489.3) (1 336.5)
Other investing activities 14.6 20.3 12.0
Net cash utilised before
financing activities (910.1) (1 193.8) (1 180.6)
Net cash raised from/(repaid in)
financing activities 118.4 11.7 (238.4)
Net decrease in cash and cash
equivalents 7.2 (791.7) (1 182.1) (1 419.0)
Net (overdraft)/cash and cash
equivalents at beginning of
period (168.8) 1 224.5 1 224.5
Translation of cash in foreign
subsidiaries (222.5) (21.5) 25.7
Net (overdraft)/cash and cash
equivalents at end of period 7.3 (1 183.0) 20.9 (168.8)
1 Following the JSE’s proactive monitoring process, the replacement
capital expenditure cash flow has been reclassified from “cash flow
from operations” to “cash flows from investing activities” and the
comparatives restated. The result of this classification is an increase
in cash generated from operating activities of R227.8 million and a
decrease in cash utilised in investing activities of R227.8 million for
the six months ended 31 March 2017.
2 As indicated on the condensed group statement of financial position,
US dollar indexed Angolan kwanza bonds were reclassified from cash
equivalents to loan receivables after a reassessment of their nature
in terms of IAS7: Statement of Cash flows. As a result of this
reclassification, the movement in these assets is now presented as
investing activities. The March 2017 comparative has been restated.
Notes
1. Basis of preparation
The condensed interim financial statements are prepared in accordance
with the requirements of the JSE Limited Listings Requirements for
interim reports, and the requirements of the Companies Act of South
Africa applicable to condensed financial statements. The Listings
Requirements require interim reports to be prepared in accordance with
and contain the information required by IAS 34 Interim Financial
Reporting, as well as the SAICA Financial Reporting Guides as issued
by the Accounting Practices Committee and the Financial Pronouncements
as issued by the Financial Reporting Standards Council.
The interim financial statements have been prepared under the supervision
of the chief financial officer, GR Fullerton CA(SA).
2. Accounting policies
The accounting policies adopted and methods of computation used are
consistent with those applied for the group’s 2017 annual financial
statements.
New and revised International Financial Reporting Standards in issue
and effective for the current financial year
The group adopted all amendments or improvements to standards or
interpretations that became effective during the current financial
year with no effect on the financial statements of the group. No new
standards were effective for the current financial year and the group
did not elect to adopt any of these standards earlier than their
effective dates.
New and revised International Financial Reporting Standards in issue
but not yet effective for the current financial year
At the date of authorisation of these financial statements, the following
standards, amendments to existing standards and interpretations were in
issue but not yet effective for the current year and have not been early
adopted.
These standards, amendments and interpretations will be effective for
annual periods beginning after the dates listed below:
IFRS 9: Financial Instruments
The standard is effective for years commencing on or after 1 January 2018.
The standard will be adopted by the group for the financial reporting
period commencing 1 October 2018.
IFRS 9 provides guidance on the classification, measurement and
recognition of financial assets and financial liabilities and replaces
IAS 39. The standard establishes three measurement categories for financial
assets: amortised cost, fair value through other comprehensive income and fair
value through profit and loss. Classification of financial assets into these
categories is dependent on the entity’s business model and the characteristics
of the contractual cash flows of the specific financial asset. There were no
significant changes to the classification guidance for financial liabilities.
IFRS 9 introduces a new expected credit loss impairment model that replaces
the incurred loss impairment model used in IAS 39.
The group will have to design impairment models incorporating new principles
such as twelve months expected credit loss, life time expected credit loss,
forward-looking information and time value of money in order to comply with
expected credit loss impairments under IFRS 9. The group has performed a
preliminary assessment, the results thereof indicate no material adjustment
is required.
The group is still to make a decision on the transition method applied.
IFRS 15: Revenue From Contracts With Customers
The standard is effective for years commencing on or after 1 January 2018.
The standard will be adopted by the group for the financial reporting period
commencing 1 October 2018.
IFRS 15 requires an entity to recognise revenue in such a manner as to depict
the transfer of the goods or services to customers, at an amount representing
the consideration to which the entity expects to be entitled in exchange for
those goods or services. The standard has a 5-step process to be applied to
all contracts with customers. The standard provides guidance for identifying
the contract with the customer, identification of the deliverables
(performance obligations), determination of the transaction price (including
the treatment of variability in the transaction price and significant financing
components), how to allocate the transaction price and when to recognise revenue.
The group has assessed its significant contracts with customers in line with
the new standard and notes that the treatment of contracts with variable pricing
will be altered under IFRS 15, however no material impacts are otherwise expected
with respect to revenue measurement and timing.
The group is still to make a decision on the transition method to be applied.
IFRS 16: Leases
The standard is effective for years commencing on or after 1 January 2019. The
standard will be adopted by the group for the financial reporting period commencing
1 October 2019.
IFRS 16 requires a lessee to recognise a right of use asset and lease obligations
for all leases except for short term leases, or leases of low value assets which
may be treated similarly to operating leases under the current standard IAS 17
if the exceptions are applied. A lessee measures its lease obligation at the present
value of future lease payments, and recognises a right of use asset initially
measured at the same amount as the lease obligation including costs directly related
to entering into the lease. Right of use assets are subsequently treated in a
similar way to other assets such as property, plant and equipment or intangible
assets dependent on the nature of the underlying item.
The group has assessed a majority of its significant lease agreements, in particular
those relating to property rentals, and the preliminary assessment indicates that
material adjustments to non-current assets, non- current liabilities and EBIDTA
are to be expected as a result of the new standard. The current estimate of the
impact of adopting IFRS 16 on the March 2018 reported numbers is as follows:
* increase in net assets: R429 million
* increase in EBITDA: R101 million
* decrease in profit for the period: R17 million
Management continues to assess the implications of the remaining individually
insignificant lease agreements in which the group is the lessee which may cause the
final impact to differ from the estimates provided above.
The group is still to make a decision on the transition method to be applied or the
application of exceptions related to short term and low value asset leases.
Restatement of comparatives
The comparatives to the condensed statement of comprehensive income (March 2017 and
September 2017), have been restated for the impact of the Nampak Glass Division
being recognised as a discontinued operation during the current period. Refer
note 4.
The main impact of these restatements is as follows:
Unaudited Audited
6 months Year
ended ended
R million 31 Mar 2017 30 Sep 2017
Revenue — decrease (663.1) (1 419.9)
Operating profit — (decrease)/increase (23.2) 469.2
Finance income — increase 82.7 169.7
Profit before tax — increase 59.5 638.9
Income tax expense — increase (16.9) (90.0)
Profit for the period from continuing
operations — increase 42.6 548.9
Loss for the period from discontinued
operation — increase (42.6) (548.9)
Profit for the period — —
Earnings per share — continuing operations
Earnings per share (cents) — increase 6.6 85.7
Fully diluted earnings per share (cents) —
increase 6.7 85.4
The March 2017 comparatives to the condensed statement of financial
position and statement of cashflows, have also been restated for the
impact of the reclassification of the US dollar indexed kwanza bonds from
cash equivalents to loan receivables, while the March 2017 comparatives to
the statement of cashflows has also been restated for the impact of the
Johannesburg Stock Exchange (“JSE”) proactive monitoring process through
which replacement capital expenditure has been reclassified to investing
activities. The impact of these changes is set out in detail on the
statement of financial position and the statement of cash flows
respectively.
3. Included in operating profit for continuing operations are:
Restated Restated
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
R million 31 Mar 2018 31 Mar 2017 30 Sep 2017
Depreciation 284.1 314.7 587.8
Amortisation 10.8 8.3 18.4
Net translation loss recognised on 245.0 17.6 273.6
financial instruments
Net loss arising from Angolan and
Nigerian exchange rate movements 96.5 4.5 160.0
Net loss arising from normal
operating activities 148.5 13.1 113.6
Reconciliation of operating profit
to trading profit
Operating profit 1 043.5 1 109.1 1 430.2
Net abnormal losses/(gains)* 120.7 (24.0) 491.3
Retrenchment and restructuring
costs 8.3 20.2 73.1
Net impairment losses on plant,
equipment, intangible assets,
investments and shareholder loans 26.6 10.2 232.5
Onerous contract and related
losses — — 81.8
Net profit on disposal of
businesses and investments — (30.1) (25.4)
Gain on acquisition of business — (27.0) (27.0)
Net profit on disposal of other
property (11.3) (1.8) (3.0)
Net loss arising from Angolan and
Nigerian exchange rate movements 96.5 4.5 160.0
Other 0.6 — (0.7)
Trading profit 1 164.2 1 085.1 1 921.5
* Abnormal losses/(gains) are defined as losses/(gains) which do not arise
from normal trading activities or are of such a size, nature or incidence
that their disclosure is relevant to explain the performance for the period.
4. Discontinued operation
On 16 February 2018, the Nampak Ltd board (“board”) took a decision to
dispose of the Nampak Glass Division (“Nampak Glass”). The group met the
criteria of IFRS 5: Non-current Assets Held for Sale and Discontinued
Operations as at 31 March 2018 and therefore classified the asset as held
for sale and as a discontinued operation as at that date. The asset consists
of three furnaces, nine associated production lines, net working capital and
the property at which the operation is located. To ensure the long term
profitability of Nampak Glass and to address the operational skills gap,
the board resolved to approach packaging industry players to invite proposals
for the sale of this business. Exploratory discussions have been held with
a number of strategic players with a formal corporate finance disposal process
currently in progress. It is expected that this disposal will be concluded by
no later than the first half of the 2019 financial year. Nampak Glass is the
only operation in the Glass operating segment.
Restated Restated
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
R million 31 Mar 2018 31 Mar 2017 30 Sep 2017
Results of the discontinued
operation
Revenue 720.2 663.1 1 419.9
Operating expenses other than
depreciation, amortisation
and impairment expenses (651.0) (527.9) (1 235.6)
EBITDA* 69.2 135.2 184.3
Depreciation and amortisation (124.8) (112.0) (218.2)
Impairment of plant, goodwill
and intangible assets (7.0) — (435.3)
Net finance costs (86.1) (82.7) (169.7)
Loss before tax (148.7) (59.5) (638.9)
Attributable income tax
benefit 41.6 16.9 90.0
Loss for the period from
discontinued operations (107.1) (42.6) (548.9)
Cashflows of the discontinued
operation
Net cashflows from operating
activities 70.7 (9.8) 98.1
Net cashflows from investing
activities (44.4) (85.1) (177.6)
Net cashflows 26.3 (94.9) (79.5)
The major classes of assets
and liabilities of the
discontinued operation at the
end of the period are as follows:
Property, plant and equipment 1 749.1 — —
Intangible assets 4.9 — —
Inventories 587.2 — —
Trade receivables and other
current assets 248.2 — —
Assets classified as held for
sale 2 589.4 — —
Trade payables and other
current liabilities 151.4 — —
Liabilities directly
associated with assets
classified as held for sale 151.4 — —
Net operating assets 2 438.0 — —
* EBITDA is calculated before net impairments.
5. Determination of headline earnings and headline earnings per share
Restated Restated
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
R million 31 Mar 2018 31 Mar 2017 30 Sep 2017
Continuing operations
Profit attributable to equity
holders of the company for 832.8 816.0 783.7
the period
Less: preference dividend — — (0.1)
Basic earnings 832.8 816.0 783.6
Adjusted for:
Net impairment losses on plant,
equipment, intangible
assets and investments 26.6 10.2 232.5
Net profit on disposal of
businesses and investments — (30.1) (25.4)
Gain on acquisition of
business — (27.0) (27.0)
Net profit on disposal of
other property, plant, equipment
and intangible
assets (9.9) (2.5) (9.1)
Tax effects and non-
controlling interests (0.6) 0.2 (17.4)
Headline earnings for the
period 848.9 766.8 937.2
Headline earnings per
ordinary share (cents) 132.0 119.7 146.3
Diluted headline earnings per
share (cents) 131.5 119.4 145.8
Restated Restated
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
R million 31 Mar 2018 31 Mar 2017 30 Sep 2017
Continuing and discontinued
operations
Profit attributable to equity
holders of the company for
the period 725.7 773.4 234.8
Less: preference dividend — — (0.1)
Basic earnings 725.7 773.4 234.7
Adjusted for:
Net impairment losses on plant,
equipment, intangible
assets and investments 33.6 10.2 667.8
Net profit on disposal of
businesses and investments — (30.1) (25.4)
Gain on acquisition of
business — (27.0) (27.0)
Net profit on disposal of
other property, plant, equipment
and intangible
assets (9.9) (2.5) (7.4)
Tax effects and non-
controlling interests (2.6) 0.2 (49.9)
Headline earnings for the
period 746.8 724.2 792.8
Headline earnings per
ordinary share (cents) 116.1 113.1 123.8
Fully diluted headline
earnings per share (cents) 115.7 112.8 123.4
6. Liquid bonds and other loan receivables
Restated Restated
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
R million 31 Mar 2018 31 Mar 2017 30 Sep 2017
Liquid bonds1 2 621.9 1 106.8 1 954.0
Equipment sales receivables2 54.4 49.4 68.7
Other loan receivables 38.5 21.4 23.4
Total liquid bonds and other loan
receivables 2 714.8 1 177.6 2 046.1
Less: Amounts receivable within
one year reflected as current 882.8 424.8 882.1
Liquid bonds 871.3 419.5 867.0
Equipment sales receivables 6.9 — 10.7
Other loan receivables 4.6 5.3 4.4
Non-current liquid bonds and other
loan receivables 1 832.0 752.8 1 164.0
1 Liquid bonds relate to US dollar indexed Angolan kwanza bonds. As at
31 March 2018 the Angolan kwanza equivalent of USD221.2 million
(March 2017: USD82.5 million; September 2017: USD144.1 million) had
been hedged through these bonds in order to protect the group against
further Angolan kwanza devaluation. Interest rates earned are between
5.0% to 7.8%.
2 Equipment sales receivables are repayable from 2018 to 2025. Interest
rates earned are between 5.8% to 14.0%.
7. Condensed group statement of cash flows analysis
7.1 Reconciliation of profit before tax to cash generated from operations
(continuing and discontinued operations)
Restated Restated
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Mar 31 Mar 30 Sep
R million 2018 2017 2017
Profit before tax 808.3 932.5 570.0
Continuing operations 957.0 992.0 1 208.9
Discontinued operation (148.7) (59.5) (638.9)
Adjustment for:
Depreciation and amortisation 419.7 435.0 831.4
Net profit on disposal of businesses, (9.9) (32.6) (32.8)
property, plant, equipment and
intangible assets
Financial instruments fair value
adjustment 39.7 (37.8) (62.7)
Net defined benefit plan expense 33.6 6.5 50.5
Impairment losses 35.6 10.2 672.6
Reversal of impairment losses (2.0) — (4.8)
Share of (profit)/loss in associates
and joint ventures (2.3) 2.3 (0.1)
Share based payment expense 12.6 12.6 6.9
Net finance costs 174.9 197.5 391.1
Gain on acquisition of business — (27.0) (27.0)
Retirement benefits, contributions and
settlements (74.8) (63.7) (119.1)
Cash generated from operations before
working capital changes 1 435.4 1 435.5 2 276.0
Decrease/(increase) in inventories 206.6 (222.6) (621.4)
(Increase)/decrease in trade
receivables and other current assets (78.4) 93.7 167.7
(Decrease)/increase in trade payables
and other current liabilities (987.9) (782.6) 126.9
Cash generated from operations 575.7 524.0 1 949.2
7.2 Movement in cash and cash equivalents
Restated Restated
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Mar 31 Mar 30 Sep
R million 2018 2017 2017
Net decrease in cash and cash
equivalents per statement of cash
flows (791.7) (1 182.1) (1 419.0)
Add back non-operational items:
Increase in liquid bonds for
hedging purposes 994.4 489.3 1 336.5
Post-retirement medical aid buy-
out — 562.3 569.2
Net increase/(decrease) in cash
and cash equivalents adjusted 202.7 (130.5) 486.7
7.3 Net (overdraft)/cash and cash equivalents
Restated Restated
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Mar 31 Mar 30 Sep
R million 2018 2017 2017
Bank balances and deposits 1 844.2 2 369.5 2 385.0
Bank overdrafts (3 027.2) (2 348.6) (2 553.8)
Total (1 183.0) 20.9 (168.8)
8. Carrying amount of financial instruments
The carrying amounts of financial instruments as presented on the statement
of financial position are measured as follows:
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Mar 31 Mar 30 Sep
R million 2018 2017 2017
At fair value — level 2
Financial assets
Derivative financial assets1 84.8 14.1 19.1
Financial liabilities
Derivative financial liabilities1 19.3 22.6 22.6
At amortised cost
Financial assets 7 168.7 6 369.8 7 266.6
Non-current liquid bonds and other
loan receivables 1 832.0 752.8 1 164.0
Trade receivables and other current
assets2 2 609.7 2 822.7 2 835.5
Current liquid bonds and other loan
receivables 882.8 424.8 882.1
Bank balances and deposits 1 844.2 2 369.5 2 385.0
Financial liabilities 11 654.8 12 368.7 13 166.7
Non-current loans and other
borrowings 3 225.1 6 080.2 6 007.2
Trade payables and other current
liabilities3 3 264.1 3 601.6 4 383.8
Current loans and other borrowings 2 138.4 338.3 221.9
Bank overdrafts 3 027.2 2 348.6 2 553.8
1 Derivative financial assets and liabilities consist of forward exchange
contracts and commodity futures. Their fair values are determined using
the contract exchange rate at their measurement date, with the resulting
value discounted back to the present value.
2 Excludes derivative financial assets (disclosed separately) and
prepayments. Includes trade receivables presented as part of assets
classified as held for sale.
3 Excludes derivative financial liabilities (disclosed separately) and
provisions. Includes trade payables presented as part of liabilities
directly associated with assets classified as held for sale.
9. Capital expenditure, commitments and contingent liabilities
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Mar 31 Mar 30 Sep
R million 2018 2017 2017
Capital expenditure 206.0 469.7 735.3
Expansion 66.7 241.9 358.3
Replacement 139.3 227.8 377.0
Capital commitments 318.9 250.2 589.9
Contracted 83.2 171.3 256.4
Approved not contracted 235.7 78.9 333.5
Lease commitments (including sale
and leaseback transaction) 3 212.4 3 545.1 3 585.5
Land and buildings 3 179.9 3 515.4 3 542.6
Other 32.5 29.7 42.9
Contingent liabilities — customer
claims and guarantees 5.0 6.0 6.8
10. Share statistics
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Mar 31 Mar 30 Sep
R million 2018 2017 2017
Ordinary shares in issue (000) 689 767 689 404 689 404
Ordinary shares in issue — net of
treasury shares (000) 644 671 640 620 640 620
Weighted average number of ordinary
shares on which basic earnings and
headline earnings per share are
based (000) 643 367 640 496 640 496
Weighted average number of ordinary
shares on which diluted basic earnings
and diluted headline
earnings per share are based (000) 645 501 642 164 642 630
11. Key ratios and exchange rates
11.1 Key ratios
Restated Restated
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Mar 31 Mar 30 Sep
R million 2018 2017 2017
EBITDA1 — continuing operations R million 1 365.0 1 442.3 2 268.9
Net gearing (including liquid
bonds) % 39 51 45
Current ratio times 1.3 1.5 1.3
Current ratio (including non-
current portion of liquid
bonds2) times 1.5 1.6 1.5
Acid test ratio times 0.9 0.9 0.8
Acid test ratio (including non-
current portion of liquid
bonds2?) times 1.1 1.0 1.0
Net debt: EBITDA — debt
covenants times 2.3 2.1 2.3
Net debt: EBITDA — debt times 1.4 1.7 1.6
covenants (including liquid bonds)
EBITDA: Interest cover (debt
covenants) times 7.6 7.8 7.2
Return on equity — continuing
operations % 17.2 16.7 8.5
Return on net assets —
continuing operations % 17.1 14.0 14.4
Net worth per ordinary share3 cents 1 486 1 536 1 454
Tangible net worth per ordinary
share3 cents 999 914 896
1 EBITDA is calculated before net impairments.
2 Calculated as the non-current portion of liquid bonds that can be converted
back into cash within three months.
3 Calculated on ordinary shares in issue, net of treasury shares.
11.2 Exchange rates
Key currency conversion rates used for the periods concerned were as
follows:
Restated Restated
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Mar 2018 31 Mar 2017 30 Sep 2017
Rand/UK pound
Average 17.35 16.83 16.96
Closing 16.62 16.83 18.17
Rand/Euro
Average 15.36 14.54 14.78
Closing 14.57 14.29 15.98
Rand/US dollar
Average 12.78 13.57 13.38
Closing 11.86 13.41 13.56
Naira/US dollar
Average 359.75 311.69 321.90
Closing 360.00 314.29 358.99
Kwanza/US dollar
Average 189.76 171.73 171.74
Closing 218.64 171.73 171.75
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. Events after the reporting date
As part of the group’s ongoing review of its portfolio, a restructuring
of the South African Plastics Division is being considered. The full
financial effects and timing of this restructure are not yet known and
will be determined in due course.
Date: 30/05/2018 03:00:00 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
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