16
Supplemental information
(this information has not been audited or reviewed)
General definitions
Average
– averages are calculated as the sum of the opening and closing balances for the relevant
period divided by two
Black Economic Empowerment
– as envisaged in the Black Economic Empowerment (BEE) legislation
in South Africa
Black Economic Empowerment charge
– represents the IFRS 2 non-cash charge associated with the
BEE transaction implemented in fiscal 2010
Fellings
– the amount charged against the income statement representing the standing value of the
plantations harvested
NBSK
– Northern Bleached Softwood Kraft pulp. One of the main varieties of market pulp, produced
from coniferous trees (ie spruce, pine) in Scandinavia, Canada and northern USA. The price of NBSK is
a benchmark widely used in the pulp and paper industry for comparative purposes
SG&A
– selling, general and administrative expenses
Non-GAAP measures
The group believes that it is useful to report certain non-GAAP measures for the following reasons:
–
these measures are used by the group for internal performance analysis;
–
the presentation by the group’s reported business segments of these measures facilitates
comparability with other companies in our industry, although the group’s measures may not be
comparable with similarly titled profit measurements reported by other companies; and
–
it is useful in connection with discussion with the investment analyst community and debt rating
agencies
These non-GAAP measures should not be considered in isolation or construed as a substitute for GAAP
measures in accordance with IFRS
Capital employed
– shareholders’ equity plus net debt
EBITDA excluding special items
– earnings before interest (net finance costs), taxation, depreciation,
amortisation and special items
Headline earnings
– as defined in circular 3/2012 issued by the South African Institute of Chartered
Accountants, separates from earnings all separately identifiable re-measurements. It is not necessarily a
measure of sustainable earnings. It is a Listings Requirement of the JSE Limited to disclose headline
earnings per share
Net assets
– total assets less total liabilities
Net asset value per share
– net assets divided by the number of shares in issue at balance sheet date
Net debt
– current and non-current interest-bearing borrowings, and bank overdraft (net of cash, cash
equivalents and short-term deposits)
Net debt to total capitalisation
– net debt divided by capital employed
Net operating assets
– total assets (excluding deferred taxation and cash) less current liabilities
(excluding interest-bearing borrowings and overdraft). Net operating assets equate to segment assets
ROCE
– annualised return on average capital employed. Operating profit excluding special items divided
by average capital employed
ROE
– annualised return on average equity. Profit for the period divided by average shareholders’ equity
RONOA
– return on average net operating assets. Operating profit excluding special items divided by
average segment assets
Special items
– special items cover those items which management believe are material by nature or
amount to the operating results and require separate disclosure. Such items would generally include
profit or loss on disposal of property, investments and businesses, asset impairments, restructuring
charges, non-recurring integration costs related to acquisitions, financial impacts of natural disasters,
non-cash gains or losses on the price fair value adjustment of plantations and alternative fuel tax credits
receivable in cash
The above financial measures are presented to assist our shareholders and the investment community in interpreting our financial
results. These financial measures are regularly used and compared between companies in our industry.