Integrated Annual Report 2014
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AT A GLANCE THE IMPLATS GROUP GROUP PERFORMANCE
OPERATIONAL REVIEW GOVERNANCE AND REMUNERATION SUMMARY CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION AND ADMINISTRATION OTHER LINKS Report selector
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Summary consolidated annual financial statements
Non-GAAP disclosure

The Group utilises certain non-GAAP performance measures and ratios in managing the business and may provide users of this financial information with additional meaningful comparisons between current results and results in prior operating periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operations or any other measure of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other companies use.

    Unaudited
  (US$m)  2014   2013  

1.  

Revenue per platinum ounce sold  

    
  US$ sales   2 803   3 389  
  US$ toll refining income   (51)  (48) 
    2 752   3 341  
  Sales volumes platinum (refer to operational statistics)  1 197   1 333  
  Dollar sales revenue per platinum ounce sold   2 299   2 505  
  Average rand exchange rate achieved   10.36   8.81  
  Rand sales revenue per platinum ounce sold   23 818   22 069  
    Unaudited
    2014   2013  

2.  

Revenue per PGM ounce sold  

    
  US$ sales   2 803   3 389  
  US$ toll refining income   (51)  (48) 
    2 752   3 341  
  Sales volumes PGM   2 445   2 709  
  Dollar sales revenue per PGM ounce sold   1 126   1 233  
  Average rand exchange rate achieved   10.36   8.81  
  Rand sales revenue per pgm ounce sold   11 665   10 863  
    Unaudited
  (Rm)  2014   2013  

3.  

Cost per platinum ounce refined  

    
  On-mine operations   10 227   12 013  
  Concentrating and smelting operations   2 851   3 044  
  Concentrating operations   1 857   1 978  
  Smelting operations   994   1 066  
  Refining operations   880   941  
  Selling and administration   655   656  
    14 613   16 654  
  Cost per platinum ounce      
  On-mine operations1   14 322   12 514  
  Concentrating operations1   2 600   2 060  
  Smelting operations2   844   674  
  Refining operations2   747   595  
  Other operating expenses1   917   683  
    19 430   16 526  
  1 Mine-to-market platinum ounces   714.1   960.0  
  2 Gross platinum ounces   1 178.0   1 581.5  
    Unaudited
  (Rm)  2014   2013  

4.  

Gross profit margin  

    
  Gross profit   3 242   4 712  
  Gross revenue   29 028   29 844  
  Gross margin profit (%)  11.2   15.8  
    Unaudited
  (Rm)  2014   2013  

5.  

Headline earnings margin  

    
  Headline earnings   523   1 994  
  Gross revenue   29 028   29 844  
  Headline earnings margin (%)  1.8   6.7  

    Unaudited
  (Rm)  2014   2013  

6.  

EBITDA  

    
  Profit before taxation   15   2 460  
  Finance income   (318)  (222) 
  Finance cost   496   446  
  Depreciation and amortisation   2 341   2 314  
  EBITDA (earnings before interest, tax and depreciation)  2 534   4 998  
  Depreciation and amortisation   (2 341)  (2 314) 
  EBIT (earnings before interest and tax)  193   2 684  
  Non-recurring/unusual transactions      
  Adjustment to headline earnings   694   964  
    887   3 648  
      Unaudited
  (Rm)    2014   2013  

7.  

Interest cover  

      
  EBIT   Non-GAAP note 6   887   3 648  
  Bank borrowings     549   344  
  Interest capitalised     (155)  (64) 
  Interest paid on finance leases     146   147  
      540   427  
  Interest cover – times     1.6   8.5  
    Unaudited
  (Rm)  2014   2013  

8.  

Dividend cover  

    
  Headline earnings – cents per share   86   329  
  Dividends – cents per share (interim and proposed)  —   95  
  Dividend cover – times   —   3.5  
 

No dividend was declared for 2014, which is not in line with the stated dividend policy but was based on a need to conserve cash.  

    
    Unaudited
  (Rm)  2014   2013  

9.  

Return on equity  

    
  Headline earnings   523   1 994  
  Shareholders’ equity per statement of financial position – at the beginning of the year   52 037   50 168  
  Return on equity (%)  1.0   4.0  
      Unaudited
  (Rm)    2014   2013  

10.  

Return on capital employed (normalised) 

      
  Headline earnings     523   1 994  
  Finance cost     496   446  
      1 019   2 440  
  Capital employed   Non-GAAP note 12   73 635   73 757  
  Return on net capital (%)    1.4   3.3  
    Unaudited
  (Rm)  2014   2013  

11.  

Return on assets  

    
  Headline earnings   523   1 994  
  Total assets   79 867   80 302  
  Return on assets (%)  0.7   2.5  
    Unaudited
  (Rm)  2014   2013  

12.  

Capital employed  

    
  Total assets per statement of financial position   79 867   80 302  
  Current liabilities per statement of financial position   (6 232)  (6 515) 
    73 635   73 787  
    Unaudited
  (Rm)  2014   2013  

13.  

Total capital  

    
  Total equity   54 917   54 616  
  Total borrowings   7 787   7 479  
    62 704   62 095  
    Unaudited
  (Rm)  2014   2013  

14.  

Debt net of cash  

    
  Long-term borrowings   (7 169)  (7 259) 
  Short-term borrowings   (618   (220) 
  Total borrowings   (7 787)  (7 479) 
  Cash and cash equivalents   4 305   4 113  
  Debt net of cash   (3 482)  (3 366) 
      Unaudited
  (Rm)    2014   2013  

15.  

Gearing ratio  

      
  Total borrowings     7 787   7 479  
  Total capital   Non-GAAP note 13   62 704   62 095  
  Total gearing (%)    12.4   12.0  
    Unaudited
  (Rm)  2014   2013  

16.  

Debt to equity  

    
  Total borrowings   7 787   7 479  
  Shareholders’ equity per statement of financial position at the end of the year   54 917   54 616  
  Total debt to ordinary shareholders’ equity (%)  14.2   13.7  
  Net debt to equity %   6.3   6.2  
      Unaudited
  (Rm)    2014   2013  

17.  

Debt to EBITDA  

      
  Total borrowings     7 787   7 479  
  EBITDA   Non-GAAP note 6   2 534   4 998  
  Total debt to earnings before interest and tax cover     31 months   15 months  
    Unaudited
  (Rm)  2014   2013  

18.  

Current ratio  

    
  Current assets   15 175   17 312  
  Current liabilities   6 232   6 515  
  Current assets to current liabilities   2.4:1   2.7:1  
    Unaudited
  (Rm)  2014   2013  

19.  

Acid ratio  

    
  Current assets   15 175   17 312  
  Inventories   (7 212)  (8 456) 
    7 963   8 856  
  Current liabilities   6 232   6 515  
  Current assets excluding inventories to current liabilities   1.3:1   1.4:1  
    Unaudited
  (Rm)  2014   2013  

20.  

Current liquidity  

    
  Current assets   15 175   17 312  
  Current liabilities   (6 232)  (6 515) 
  Net current assets   8 943   10 797  
  Inventory   (7 212)  (8 456) 
    1 731   2 341  
    Unaudited
  (Rm)  2014   2013  

21.  

Free cash flow  

    
  Net cash inflow from operating activities per cash flow   4 096   5 582  
  Total capital expenditure   (4 500)  (6 219) 
    (404)  (637) 
    Unaudited
  (Rm)  2014   2013  

22.  

Net asset value – cents per share  

    
  Net asset value per statement of financial position   52 367   52 037  
  Number of shares (million) issued outside the group   607.1   606.9  
  Net asset value – cents per share   8 626   8 574  
    Unaudited
  (Rm)  2014   2013  

23.  

Market capitalisation  

    
  Number of ordinary shares in issue at year end (millions)  632.2   632.2  
  Closing share price as quoted on the JSE (Rand)  106.88   93.00  
  Market capitalisation   67 570   58 795  
      Unaudited
  (Rm)    2014   2013  

24.  

Enterprise value  

      
  Market capitalisation   Non-GAAP note 23   67 570   58 795  
  Debt net of cash   Non-GAAP note 14   (3 482)  (3 366) 
      64 088   55 429  
      Unaudited
  (Rm)    2014   2013  

25.  

Return on enterprise value  

      
  Enterprise value   Non-GAAP note 24   64 088   55 429  
  EBIT   Non-GAAP note 6   887   3 648  
  Total return on enterprise value (%)    1.4   6.6