Transcript www.massmart.co.za

Dedicated to Value
Massmart Reviewed Consolidated Results
for the 53 weeks ended 29 December 2013
Presentation to Investors, Analysts and Media
February 2014
Divisional
Performance
Massdiscounters
53
weeks
Sales
R16.7bn
52 weeks
growth
Comp
growth
Inflation
5.7%
1.0%
0.5%
> Game SA. Comp sales still low (-2.1%):
- Sales & margin pressure from trading environment, Electronics & clearance
- Very positive customer response to Fresh & Dry Groceries (+20% comps)
- Profit significantly below prior year (expense growth > sales growth)
> Game Africa. Good performance (total sales +22%, own currency +15%)
- Steady economic environment
- Some US$-denominated expense pressure
- Profit growth below sales growth
> DionWired. Great performance (total sales +20%):
- Product inflation now. Category slowing down from low product innovation
- Profit growth below sales growth
Massdiscounters continued
53 weeks
52 weeks
52 weeks
growth
Sales
R16.7bn
R16.3bn
5.7%
PBIT
R367m
R327m
-46%
2.2%
2.0%
PBIT margin
> Food / Fresh conversions: 17 converted / opened in 2H. Now in 48
stores, with 13 planned for FY14
> New-look Game stores trading well (nine in FY13 and 30 in FY14)
> Mark Huxtable joined as IT Director and Alan van der Bergh to join as
Food Director
> Trading space +7.7% in FY13
> Eight new African stores in FY14-FY15 in Angola, Nigeria, Namibia,
Kenya, Mocambique, Ghana & Zambia
Massdiscounters Strategic Plans
> Broadly, Game SA has three problem areas and our response is:
-
Sales: introduce Food, reduce Electronics’ participation, new categories
(Baby & Clothing), customer value proposition, review store portfolio.
Wait out the tough environment
-
Margin: greater Food participation, greater F&R reliance to reduce slowmoving stock & mark-downs, private label
-
Expenses: leverage RDC investment
> Game Africa:
> More stores. More Food. More property ownership
> DionWired:
> Online. Manage store size & portfolio
Masswarehouse
53
weeks
Sales
R19.7bn
52 weeks
growth
Comp
growth
Inflation
12.0%
4.0%
2.1%
> Very good trading performance in tough environment
> Pleasing comp sales growth in all categories
> New stores in Alberton, Jhb, in April and Amanzimtoti, Durban, in Sept (a
relocation):
> Alberton making significant profit contribution but affecting
Germiston & Crown Mines stores
> Amanzimtoti trading well but initially higher costs
> Food Retail / Fresh offering now in 15 stores. Increases customer visits
& spend per basket
Masswarehouse continued
53 weeks
52 weeks
52 weeks
growth
Sales
R19.7bn
R19.3bn
12.0%
PBIT
R990m
R940m
7.6%
5.0%
4.9%
PBIT margin
> Inventory levels slightly higher due to new stores – will stabilise
> Fruitspot sales +38%. Now have combination of new & original key
management. Playing growing intra-Group role in Gauteng
> Store pre-opening costs R25m (LY R31m)
> Trading space +9.3% in FY13, now 19 stores. Seven new stores (&
two relocations) since Sept ’11. No new stores in FY14
> Group cannibalisation? A new Makro store’s sales in 2nd year are
approx. R800m, of which < R100m comes from Group stores
Masswarehouse Strategic Plans
> Get new stores to trading maturity
> Widen Baby category
> Enhance Food Retail offering
> Commercial customers
> Online: B2B & B2C
> Supply Chain & Inventory optimisation
> Leverage CRM
Massbuild
53
weeks
Sales
R9.6bn
52 weeks
growth
Comp
growth
Inflation
10.3%
8.2%
4.1%
> Another great performance:
> Good comp sales growth in Warehouse & Express
> Profit growth well ahead of sales growth
> Refocused Trade Depot:
> FY13: closed four stores and converted five stores to Express
> Converted to Division’s SAP IT platform
> A core of 15 large stores, regionally dominant, focused on Building
Materials including Roof Trusses. Represent approx. 70% of
original sales
> New store openings: six Builders, eight Express & two Superstores.
Trading space +3.7%
Massbuild continued
53 weeks
52 weeks
52 weeks
growth
Sales
R9.6bn
R9.4bn
10.3%
PBIT
R508m
R468m
16.7%
5.3%
5.0%
PBIT margin
> Format innovation: two new Builders Superstores focused on lower-income
customers. Positive sales & profit performance. Four more in FY14
> Africa: Builders Warehouse performing well in Botswana (two) &
Mocambique (two). Closed 10 Kangela satellite stores
> Opened RDC in Midrand, Jhb, in April ‘13. Superb team execution. New net
operating costs of R33m in FY13. Indent opportunity
> R63m of store pre-opening costs & closure costs (LY R9m)
> Lizelle Peterson joined as FD
> Nine new stores in 2014, including in Mocambique (two)
Massbuild Strategic Plans
> New stores roll-out, including Matola in Mocambique (with Game)
> Trade Depot: inventory range, IT platform value extraction,
contractors
> Optimise Superstore offering & grow
> Leverage RDC including W Cape
> Focus on Trade Customers & B2B
> Grow Southern Africa store footprint
Masscash
53
weeks
Sales
R26.3bn
52 weeks
growth
Comp
growth
Inflation
4.5%
3.8%
4.2%
> Tough trading environment:
- Wholesale comp sales +4.1% and Retail +7.8%
- Competition from independently-owned ex-Metro sites
- Unexpectedly low product inflation, but now increasing
> Disorderly market decline but now settling. Trading normalised
> Opened new Wholesale store in Xai Xai, Mocambique
> Opened one Wholesale & five Cambridge. Closed three Wholesale & two
Cambridge stores. Trading space +0.6%
Masscash continued
53 weeks
52 weeks
52 weeks
growth
Sales
R26.3bn
R25.8bn
4.5%
PBIT
R281m
R260m
-3.5%
1.1%
1.0%
PBIT margin
> Despite good cost control, sales & margin pressure caused profits to
decline in Wholesale
> Masscash Retail trading well. New stores trading above expectation.
Strong Cambridge customer brand loyalty & price perception
> New executives in Wholesale: Anton Smith (Shield & Saverite) and
Marlon Reddy (IT)
> FY14: seven new Cambridge stores
Masscash Strategic Plans
> Close smaller or less profitable stores. Closed three Cambridge
stores in Q1 FY14
> New store roll-out
> Improve Supply Chain & Logistics capability in Wholesale
> Focus on Saverite
> Grow Southern Africa store footprint
Store Portfolio
Massdiscounters
Makro
Massbuild
Masscash
Total
December ’12
133
18
85
121
357
Opened
14
2
13
6
35
Closed
-4
-1
-5
-5
-15
Sold
-
-
-1
-
-1
143
19
92
122
376
December ’13
> Massdiscounters: opened 11 and closed four Game stores; opened three
DionWired stores;
> Makro: opened Alberton and Amanzimtoti; closed Rossburgh
> Massbuild: Opened six Warehouse; opened five and closed two Express;
closed three and sold one Trade Depot; opened two Superstores. Five
Trade Depot converted to Express
> Masscash stores: Retail – opened five, closed two. Wholesale – one
opened, three closed
SA Retail Environment
Recent Comparable Sales Growth
Higher Income
Customers
Woolies
Massbuild
Makro
PnP
Masscash
Cashbuild
Lower Income
Customers
Shoprite SA
0
2
4
6
8
% Growth
Sources: company announcements for six months to Dec 13. Cashbuild
comps estimated from Q1 & Q2 updates. PnP sales for six month to Aug 13
10
12
14
16
Category Competitors
Recent Comparable Sales Growth
Makro
PnP
Shoprite SA
Game SA
HiFi & IC
-15
-10
-5
0
% Growth
Sources: company announcements for six months to Dec 13. Hi-Fi &
Incredible Connection show Total sales. PnP sales for six months to Aug 13
5
10
Core Profit Growth
Rm’s
2013
2012
Change
Operating Profit (52 wks)
2 002
1 708
17%
-68
+232
-
-
+140
-
Adjusted Operating Profit
1 934
2 080
-7%
Exclude store open / close costs
+117
+70
“Core” Operating Profit
2 051
2 150
Exclude Forex
Exclude Transaction cost in LY
-5%
December 2013
Financial Performance
Brief Overview of 53 weeks to December 2013
Income Statement:
> Total 53 week sales growth of 9.8%
> Total & comparable 52 week sales growth of 7.5% & 3.8%
> Gross margin decreased to 18.5% (PY: 18.6%)
> Comparable expenses of 7.2% > comparable sales growth
> Good results – Makro & Massbuild
> Poor result – Game SA
> Operating profit before interest & forex increased by 7.5%
> 15 December net sales loss of approximately R200 million
Sales
2013
Rm
2012
(53 weeks)
2012
Rm
2011
Total %
Total %
Change
Chg
Comp
Comp
%
(52 weeks)
%
Inflation
%
Inflation %
Massdiscounters
16 740
15 408
8.6
1.0
0.5
Masswarehouse
19 675
17 201
14.4
4.0
2.1
Massbuild
9 584
8 561
11.9
8.2
4.1
Masscash
26 264
24 669
6.5
3.8
4.2
Total
72 263
65 839
9.8
3.8
2.7
> Real comparable volume growth
8%
S.A Sales
> African businesses sales growth:
• South African Rand grew by 16.6%
• African Local Currencies grew by 10.9%
92%
Non - S.A Sales
Sales Inflation
YTD Sales Inflation to December 2013
%
General Merchandise
0.1
Home Improvement
3.7
Food & Liquor
4.1
Total
2.7
Higher inflation will be driven by:
> Weak Rand
> Food inflation
Low inflation in General Merchandise
Gross Profit
2013
(53 weeks)
2012
Gross Profit (Rm)
13 337
12 276
As % of Sales
18.5%
18.6%
> Margins decreased due to a combination of:
-
Increased contribution from Game Africa
-
Improved margin performance in Massbuild
Both of which were offset by
-
Difficult trading conditions in Wholesale Food
-
Greater overall Food contribution at a lower margin
-
General Merchandise margins in Game SA under pressure
Operating Costs (excluding forex)
2013
(53 weeks)
2012
Operating Costs (Rm)
11 501
10 407*
As % of Sales
15.9%
15.8%
* Excludes the R140 million transaction costs
> Operating costs (excl. forex) increased by 10.5% (52 week +9.2%)
> Walmart integration costs - treated as normal operating cost
> Employment costs increased 15.7% (52 week +14.3%)
> Depreciation & occupancy costs up 10.6% & 11.3%, respectively
> Pre-opening and closure costs of R117m (December 2012: R70m)
> Comparable expenses increased by 7.2%
Employment Costs (47% of total costs)
2013
(53 weeks)
2012
Employment Costs (Rm)
5 423
4 686
As % of Sales
7.5%
7.1%
> Total increase of 15.7% (52 week +14.3%)
> Comparable increase of 9.5%
> Re-allocation of integration costs
> Increase in staff (FTEs) of 4.2%
• Result of new stores, HO skills & one new RDC
Occupancy Costs (22% of total costs)
2013
(53 weeks)
2012
Occupancy Costs (Rm)
2 555
2 296
As % of Sales
3.5%
3.5%
>
>
>
>
>
>
Total increase of 11.3% (52 week +10.8%)
Comparable increase of 8.7%
4.8% net new trading space
5.9% net new total space (trading and DC)
High inflation - rates, services & electricity
Costs should reduce as % of sales from 2014
Depreciation (6% of total costs)
2013
(53 weeks)
Depreciation (Rm)
As % of Sales
2012
731
661
1.0%
1.0%
> Increased by 10.6% (52 week +10.6%)
• Growth higher than sales growth but stabilising
• New stores & RDC opened in the period
• Owned Makro properties
Forex Gains & Losses
2013
Rm
(53 weeks)
Massdiscounters
Other
Total Forex Gain/ (Loss)
2012
Rm
82
(241)
(14)
9
68
(232)
> Rand weakness compared to African currency basket
> Prior year devaluation of the Malawian Kwacha
EBITDA
2013
Rm
(53 weeks)
2012
Rm
Change
%
Operating profit before forex
2 085
1 940
Depreciation & amortisation
731
661
41
21
2 857
2 622
Impairment of assets
EBITDA before forex
7.5
9.0
Tax Charge
2013
(53 weeks)
Total tax (Rm)
Effective tax rate
2012
555
549
29.3%
34.8%
> Lower tax rate due to:
• Decreased proportion of non-deductible expenditure
• No STC in current year
> Effective tax rate to normalise just below 30%
Stock & Creditors
2013
(53 weeks)
Rm
Days
2012
Rm
Days
Net Stock
10 115
63
9 691
66
Trade Creditors
13 702
75
12 601
75
> Stock increased 4.4%. Stock days down slightly:
• Improvement in all Divisions other than Massdiscounters
• Game SA over-stocked - soft comparable sales
> Trade Creditors days in line with prior year
> Working capital funding continues to be a key focus area
Debtors
2013
2012
(53 weeks)
Gross Trade Debtors
Rm
Days
Rm
Days
1 919
8.6
1 777
8.6
> Trade debtors are well controlled throughout the Group
> Bad debts of 0.04% of sales are closely monitored (2012: 0.09%)
> No significant concentration of debtors
Net Capital Expenditure
2013
Rm
Net investment to maintain operations
2012
Rm
752
629
Investment to expand operations and businesses acquired
1 554
1 035
Total Capital Expenditure
2 306
1 664
> Includes:
• The opening of Makro Alberton & Amanzimtoti
• The opening of the Builders Warehouse RDC
• Acquisition of Makro properties
Capex
Rm
2,500
3.5%
3.0%
Makro properties
2.5%
Businesses acquired
2.0%
Investment to expand
operations
1.5%
Net investment to maintain
operations
2,000
1,500
1,000
Total capex % of sales
1.0%
500
0.5%
-
Total capex % of sales
excluding business and
property acquisitions
0.0%
Dec 2008
Dec 2009
Dec 2010
Dec 2011
Dec 2012
Dec 2013
> Capex amounts to 3.2% of sales (December 2012: 2.6%)
> Capex, excluding business and property acquisitions, amounts to 1.85% of sales
Sales Split between Owned and Leased Assets
Dec 2013
Dec 2012
Owned
Leased
> Sales from owned assets represents 27.3% (December 2012: 12.6%)
Cash flow Statement
2013
Rm
2 984
2012
Rm
2 681
Working capital movements
752
(775)
Cash generated from operations
3 736
1 906
Net interest and tax paid
(987)
(728)
79
0.1
(752)
(629)
2 076
(913)
(1 554)
549
(864)
(1 035)
(391)
(1 350)
Operating cash before working capital movements
Investment income
Net investment to maintain operations
Free cash flow
Dividends paid
Investment to expand operations and businesses acquired
Cash outflow before Financing
Dividends
Dividend per share
2013
(cents)
2012
(cents)
421
421
> Dividend Policy cover = 1.55x
> Final cash dividend declared of 275 cents per share
CEO Review
Business Performance Summary
year in review
>
>
>
>
>
>
Underlying profit performance -7%
Strong performances from Massbuild and Masswarehouse
Tough trading environment for Wholesale
With hindsight, MDD ended better than expected in a weak market
Balance sheet and cashflows strong
Investments in Food Retail and Supply Chain started to realise
value
> Successful store openings across SA and Africa
> Significant market share gains in Food Retail
> Outperformed everyone in Electronics
Environment
Global Trends
specific implications for retail businesses
Massmart Implications
Disparity of growth rates
 Portfolio approach needed
 Cost pressures
Economic headwinds, income disparity &
rising costs
 Customer demand for greater quality and value
 Expectation of convenience and ease of shop
Emerging middle class & continuous
rise of women’s purchasing influence
 Demand for total shopping solutions
 eCommerce/technology changing customer
shopping behavior and experience
eCom/Technology and transparency
Gov’t Intervention, stakeholder influence
and role of institutions
 Customer seeking products they can trust

Competition responding aggressively

Growing consumer expectations for doing
good business
Economic Conditions
challenges facing the SA consumer
Increasing Unemployment *
Rand Depreciation **
GDP Growth Rate *
Access to Credit
Sources:
* Stats SA
** INET BRIDGE
Impact of the Economy
changing the way consumers spend
10%
Real Household Expenditure Growth *
2004
2013
Consumer Confidence Index **
10%

Real household expenditure
is under pressure and
trending downward

Consumer confidence index
hit a 10-year low; seeing a
correlation between
confidence and GM sales
30
20
10
Durable Goods
0
Semi-Durable Goods
Sep-13
Dec-12
Jun-11
Mar-12
Sep-10
Dec-09
Jun-08
Mar-09
Sep-07
Dec-06
Jun-05
Mar-06
Sep-04
Dec-03
Jun-02
Mar-03
Sep-01
Dec-00
Jun-99
Mar-00
-20
Sep-98
-10
Sources:
* SARB
** BER & FNB
1/21/14
Impact of the Economy
changing where consumers spend their money
Source:
Stats SA
Massmart Shoppers
different shopping patterns by income groups
>
Massmart has offerings across all income levels
>
The highest and lowest income consumers contribute equally to Group sales:
- The top 1% of households by income (Category A) accounts for 17% of retail
expenditure
- Equivalent to that spent by the bottom 78% of households by income
(Category E)
>
Higher-income consumers are less impacted by the economic conditions
>
Lower-income consumers are under extreme constraints; focused on basics and
flipping sources of credit
>
Expenditure by middle-income consumers on public and controlled price goods is
crowding out spending on discretionary goods
Economics Impacting Key Categories
retail conditions
12.1%
Massmart has traditionally been strong in
serving the wholesale food customers and
is a market leader in general merchandise.
Both of these categories are impacted:
General
Merchandise
Wholesale
Food
General
Merchandise
37.0%
Home Improvement
Food - Wholesale
34.4%
Food - Retail
16.5%
• Changes in mix cause over -stocks and therefore
margin pressure
• Demand for hi-tech and multi-media categories is
decreasing
• Industry declining
• Independents changing the way of operating
• Suppliers changing distribution strategies
General Merchandise in the Marketplace
Massmart sales performance relative to the market
Massmart GM retail outperforms GM specialists
STATSSa: Retailers in household furniture,appliances and equipment
Massmart GM (excl. cell and Home Improvement)
> Although the GM category is under pressure, Massmart sales are ahead of
the market
> Massmart GM outperforming more specialised GM retailers
Sources:
Massmart
Stats SA
Wholesale Food in the Marketplace
Massmart performance relative to the market
> Independents picked up the better ex-Metro stores; mostly inland
> Distribution patterns have changed as a result
> Suppliers have invested in new channels
> Export markets have grown
> Massmart has gained market share in Liquor and lost a bit in Dry
Grocery
> Massmart has held market shares overall
Strategic
Priorities
Strategic Priorities
Protect and Grow
Our Core
Businesses
• General
Merchandise
• Wholesale Food
Diversify Our Sales
Mix
• Fresh / Retail
• Home
Improvement
• Private Brands
• Clothing
Expand Our Reach
• Africa
• eCommerce
• New Stores
Built on a Foundation of Trust
Strategic Priorities
protect and grow in core markets
Repositioning of General Merchandise
Consolidating Ranges
Shrinking Store Sizes
Wider Ranges Online
Widening Ranges
Higher Quality Choices
New Categories (Baby)
Refocus Range on Middle-income
OPP Ownership
Re-allocate Space
Store Location Optimisation
Brand
Brand Consolidation
New Low-Income Consumer
Complete Contractor Solutions
Maximize Returns in Wholesale Food
Reducing 3rd Party Distribution
Growing Commercial Business
Exporting Opportunities
B2B eCommerce Expansion
Drive Comp
Wholesale Trading
Sales
Store portfolio review
Grow in Africa Optimise Store Portfolio
Supplier JBP process
Deepening Customer Value
Supplier Partnerships
Strategic Priorities
Protect and Grow
Our Core
Businesses
• General
Merchandise
• Wholesale Food
Diversify Our Sales
Mix
• Fresh / Retail
• Home
Improvement
• Private Brands
• Clothing
Expand Our Reach
• Africa
• eCommerce
• New Stores
Built on a Foundation of Trust
Strategic Priorities
diversify our sales mix
Grow in Fresh
Retail across all
income levels:
Makro
Game
Cambridge Food
Clothing:
Trialing George in
Makro and Game
with Baby and
Essentials to test
future apparel
categories
Win in the Home
Improvement
Category with
Builders:
New Superstore
EDLP model
Wholesale Trading
Store portfolio review
Grow in Africa
Supplier JBP process
Drive Comp
Sales
Increase
Private Label
participation
across the Group
and Divisions to
deliver trusted
items at a great
value
Strategic Priorities
Protect and Grow
Our Core
Businesses
• General
Merchandise
• Wholesale Food
Diversify Our Sales
Mix
• Fresh / Retail
• Home
Improvement
• Private Brands
• Clothing
Expand Our Reach
• Africa
• eCommerce
• New Stores
Built on a Foundation of Trust
Strategic Priorities
expand our reach
Grow Outside of SA
Dedicated African team and
Forum established
City (Power Center) and Country
Strategies in place
Small format opened in Nigeria
– ValuMart
7 stores scheduled to open in
2014
Servicing Customer 2.0
Global Leverage of Walmart.com
Drive Comp
Wholesale Trading
Skills Acquisition Sales
Store portfolio review
Makro site launch
Grow New
in Africa
SuppliereCommerce
JBP process Forum across
Functions and Brands
B2B eCommerce through
Builders and Makro
Strategic Priorities
expand our reach with new stores
Massmart Store Pipeline 2014 - 2016
Number of
Stores
New Area
(square metres)
Compound Annual
Growth %
Massdiscounters
33
124,703
8.1%
Masswarehouse
1
17,500
2.9%
Masscash
27
83,850
6.6%
Massbuild
28
87,496
Wholesale
Trading
Store portfolio review
313,549
Grow in Africa
Supplier JBP process
Drive
Comp
6.7%
Sales
Total Group
Group Growth Figures
Area Growth
% Growth
No of Stores
89
2014
6.6%
2015
2016
85,050
122,500
105,999
6.15%
8.22%
6.49%
26
32
31
Building Trust
a framework to operate by
After government, business is
the least trusted institution
globally
Products and Services
Innovation
Workplace
Massmart has embarked on a
conscious journey to become
sub-Saharan Africa’s most
trusted retailer
Governance
Citizenship
Leadership
We have adopted a trust
framework that comprises 8
trust focus areas
Organisation Effectiveness
Performance
Building Trust
Our strategic plans are built to deliver a trust-worthy brand. Listed below
are a few additional ways we build trust within our organisation:
Leadership
• Massmart Corporate University
• 50 New Graduates
• CEO’s Women’s Council
Citizenship
• An amount of R50m is committed for 2014
• Lethabo Milling company - hopes to launch a private label maize
meal
• Annual Report has been Delivered to the Commission
Governance
• Compliance policies and monitoring in place across all businesses
Organisational Effectives
• Leveraging the ASDA model of We Operate 4 Less to drive
efficiencies
Prospects
Massmart’s 2014 Prospects
> For the 8 weeks to 23 February 2014, total sales increased by 9.5%
and comparable sales increased by 7.7%
> A much stronger start to the financial year than we anticipated
> Whilst too early to be confident about this new trend, the strong start
suggests a better overall performance this year than last
> Whilst we remain cautious about the economy, we are much more
positive about the business as we reap the rewards from the
operational focus of last year
Conclusion
Conclusion
>
>
>
>
>
>
>
>
Good 2013 performance given the economic conditions
Excited about the beginning of 2014 sales
Transaction, integration and supply chain investments are completed
Over the initial growing pains of entering the food retail business
Strong growth plan
Strong operational disciplines in place to deliver results
Cautious about the economy
Confident about the company
Thank You
& Questions
Additional Financial
Data
Reviewed Results for 53 Weeks Ending December 2013
Dec 2013
Rm
Revenue
Sales
Cost of sales
Gross profit
Other income
Depreciation and amortisation
Impairment of assets
Employment costs
Occupancy costs
Foreign exchange profit / (loss)
Walmart transaction, integration and related costs
Other operating costs
Operating profit
Net finance costs
Profit before taxation
Taxation
Profit for the period
72 513
72 263
(58 926)
13 337
250
(731)
(42)
(5 424)
(2 555)
68
(2 750)
2 153
(255)
1 898
(555)
1 343
Dec 2012
Rm
66 051
65 840
(53 563)
12 277
211
(661)
(22)
(4 687)
(2 297)
(232)
(349)
(2 533)
1 707
(127)
1 580
(550)
1 030
Tax Rate Reconciliation
Dec 2013
Dec 2012
%
%
Standard tax rate
28.0
28.0
Non-taxable income and disallowed expenses
(2.0)
(2.1)
Allowances on lease premiums and improvements
(0.3)
(0.5)
Assessed loss not utilised
1.4
1.5
Withholding tax
0.1
(0.7)
-
3.5
2.1
5.1
29.3
34.8
STC
Other – including foreign tax adjustments and
transaction related costs
Group tax rate
Headline Earnings Reconciliation
Dec 2013
Rm
Dec 2012
Rm
Attributable earnings
1 283.0
972.3
Impairment of assets
41.6
21.6
Loss on disposal of fixed assets
11.9
16.4
1.8
16.5
-
8.3
(3.8)
(8.1)
1 334.5
1 027.0
Loss on disposal of business
Fair value adjustment on assets
classified as held for sale
Tax effects on adjustments
Headline earnings
Capex Per Category
Dec 2013
Rm
Investment to expand operations and businesses acquired
Dec 2012
Rm
(1 307)
(1 069)
(807)
(100)
(35)
(40)
(428)
(492)
Computer hardware
(33)
(20)
Computer software
(2)
(24)
Other
(2)
(9)
-
(384)
(752)
(629)
Land and buildings/leasehold improvements
(35)
(56)
Vehicles
(39)
(29)
(517)
(321)
Computer hardware
(70)
(90)
Computer software
(96)
(136)
5
3
Land and buildings/leasehold improvements
Vehicles
Fixtures, fittings, plant and equipment
Businesses acquired
Net investment to maintain operations
Fixtures, fittings, plant and equipment
Other
Number of Shares
‘000
At December 2012
Shares issued
216 910
199
At December 2013
217 109
Weighted-average at December 2013
216 935
Diluted weighted average at December 2013
219 268