Glossary of financial terms

This report contains a number of terms which are explained below

EBITDA

Operating profit of subsidiaries and joint ventures before special items, depreciation and amortisation.

EBITDA interest cover

EBITDA divided by net debt finance charges (before special financing items).

Gearing

The ratio of net debt to total capital employed.

Group revenue

Total turnover of subsidiaries and proportionate share of joint venture turnover.

Headline earnings

JSE Listings measure, calculated in accordance with Circular 3/2009, ‘Headline Earnings’, as issued by the South African Institute of Chartered Accountants.

Net debt

A measure comprising short-term, medium and long-term borrowings and bank overdrafts less cash and cash equivalents and current financial asset investments.

Net segment assets

Net segment assets are segment assets, consisting of property, plant and equipment, intangible assets, forestry assets, retirement benefit surplus, inventories and operating receivables less segment liabilities consisting of non-interest-bearing current liabilities, restoration and environmental provisions and provisions for post retirement benefits.

Operating margin

Underlying operating profit divided by Group revenue.

Reported profit/(loss) before tax

Reported profit/(loss) before tax but after special items.

Return on capital employed (ROCE)

This is trailing 12 month underlying operating profit, including share of associates’ net income, divided by trailing 12 month average trading capital employed and for segments has been extracted from management reports. Capital employed is adjusted for impairments in the year and spend on the strategic projects which are not yet in production.

Shareholders’ funds

Share capital, share premium, retained earnings and other reserves attributable to equity holders of the parent companies.

Special items

Those non-recurring financial items which the Group believes should be separately disclosed on the face of the combined and consolidated income statement to assist in understanding the underlying financial performance achieved by the Group and businesses.

Total equity

Shareholders’ funds and non-controlling interests in equity.

Trading capital employed

Net segment assets plus investment in associates, deferred tax, and other non-operating assets and liabilities excluding financial investments.

Underlying earnings

Net profit after tax before special items attributable to equity holders of the parent companies.

Underlying operating profit

Operating profit of subsidiaries and joint ventures before special items.

Underlying profit before tax

Reported profit before tax and special items.