SENS ANNOUNCEMENT
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NAMPAK LIMITED
Registration number 1968/008070/06
Incorporated in the Republic of South Africa
Share Code: NPK ISIN: ZAE000322095
Share Code: NPP1 ISIN: ZAE000004966
Share Code: NPKP ISIN: ZAE000004958
LEI: 3789003820EC27C76729
(“Nampak” or “the group” or “the company”)


AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

COMMENTARY

2023 was a year of much-needed intervention at Nampak. We embarked on implementing a
comprehensive turnaround plan, inclusive of board and management changes; a business model
review; a capital and debt restructuring programme; rights offer and the adoption of a new strategy
focused on our core Metals business. The extensive transformation agenda has been well executed
to date notwithstanding macro-economic headwinds and other vagaries in most geographies.
Increased competition was particularly evident in the short term attempting to capitalize on the
temporary hiatus that the company has been experiencing. We have remained resolute in ensuring
that Nampak remains a critical contributor to the extensive value chain within which we participate.
Significant milestones have been reached and the momentum of renewal gains traction.

For the year ending 30 September 2023, the group reported a 2% decline in revenue to R16.6 billion.
Despite a decline in revenue the group increased trading profit by 2%. Operating profit before net
impairments was significantly impacted by forex losses. Net interest costs increased significantly as
a consequence of rising interest rates and costs associated with the refinancing of the group’s
funding package.

Despite these challenges, we recorded sustainable cash generation of R1.6 billion aided by a
working capital improvement of R905 million, in part due to a step change in working capital
disciplines.
Overview
The group’s revenue declined by 2% with volume reductions primarily in Bevcan Nigeria, DivFood
and Bevcan SA. A 5% decrease in Metals revenue was partially offset by increases of 2% and 28%
for Plastic and Paper respectively. Bevcan South Africa performed strongly improving its trading
profit by 28% and DivFood returned to profitability with an improvement of R77 million in its trading
profit.

Forex losses of R1.2 billion were incurred in the year with R1.0 billion attributable to Nigeria.
The Nigerian losses were caused by a consistently weakening Naira in a forex market that was
increasingly dysfunctional as foreign exchange became more scarce and dealings in the secondary
currency market were commonplace at punitive rates. In June 2023 the Naira was floated and
although healthy for the economy in the longer term, this resulted in a further significant weakening
of the currency in both the official and secondary market. Due to the significant lack of liquidity in the
Nigerian currency market, there are no formal hedging opportunities and our treasury function is
reliant upon the allocation of US dollar liquidity by the Central Bank of Nigeria.

The large majority of raw material for our Nigerian Bevcan business is imported and denominated in
US dollars. From the date raw materials are procured, until the date foreign suppliers are settled,
the group is exposed to foreign currency risks and this can straddle financial reporting periods. The
US dollar cost of inputs based on secondary market rates at invoice date is passed on to customers,
but the cost of subsequent adverse currency movements on the group’s exposure to foreign
creditors typically exceeds the cost originally charged to customers. The increased cost to customers
has an observed negative impact on local volume demand and this has to be considered when
attempting to recover currency losses.

In Nigeria, the naira devalued by 44% during the year from NGN437.74/US dollar to NGN776.79/US
dollar. Cash transfers of R1.3 billion (2022: R1.7 billion) were made for raw material costs.

In Angola, the kwanza devalued by 47% from AOA443.55/US dollar to AOA842.04/US dollar. The
majority of this devaluation occurred in the 47 days following 6 May 2023. Cash transfers of R621
million (2022: R717 million) were for the majority of the year largely unrestricted and US dollar
availability was good although there were signs of a tightening in dollar availability.

Operating net profit before impairment losses of R276 million reflects a decline of 76% compared to
R1.2 billion in the prior year with forex losses being the major contributor to this decline in profitability.

Impairment losses of R2.8 billion recognised for the year adversely impacted profitability and
reduced the group’s shareholder equity base by 61% to R1.6 billion from R4.7 billion.

Net finance costs increased by 109% to R1.2 billion from R586 million inclusive of once off
refinancing advisory costs of R335 million. Rising interest rates coupled with an on average higher
investment in working capital and the extension of maturity dates on existing funding led to a
significant increase in interest cost.
A loss of R4.0 billion attributable to owners of Nampak Limited was incurred compared to a loss of
R147 million in the comparative period and results in a loss per share of 117 295.5 cents compared
to a loss of 4 879.5 cents per share (cps) in the prior year. Headline loss of R1.6 billion is reported
compared to R229 million headline earnings in the prior year, resulting in a headline loss of 46 811.7
cps compared to headline earnings of 7 589.2 cps.

Group financial performance

 R million                                                         FY23          FY22      % change
 Revenue                                                          16 634        16 937           (2)
 Trading profit                                                    1 638         1 611             2
 Devaluation losses from Angolan and Nigerian
 exchange rate movements                                          (1 235)         (546)        (>100)
 Capital and other items                                            (127)            87        (>100)
 Operating profit before net impairments                              276         1 152          (76)
 Operating (loss)/profit                                          (2 566)           640        (>100)
 Cash generated from operations before working capital
 changes                                                              740         1 504          (51)
 Cash generated from operations                                     1 645           845            95
 Loss for the year                                                (3 952)           (26)       (>100)
 Headline (loss)/earnings                                         (1 610)           229        (>100)
 Headline (loss)/earnings per share (cents)                    (46 811.7)       7 589.2        (>100)
 Dividends per share (cents)                                            -              -
 Current ratio                                                        1.8            1.4

The board has decided not to declare an ordinary dividend for 2023 (2022: Nil).

Debt refinancing

The group’s capital and financing structure was strengthened through the successful rights issue of
R1.0 billion raising R960 million (net of transaction costs) and the restructuring and refinancing of
the group banking facilities. This has significantly improved the group position from a going concern
perspective. As a result, the group’s current and acid test ratios were 1.8 times and 1.0 times
respectively as at 30 September 2023 reflecting improvements over the prior year ratios of 1.4 times
and 0.9 times respectively.

The group's independent auditor, Deloitte & Touche (Deloitte), conducted an audit of the
consolidated annual financial statements for the group for the year ended 30 September 2023.
Deloitte have issued an unmodified audit opinion in terms of the International Standards on Auditing,
with a paragraph on material uncertainty relating to going concern. The Deloitte opinion is not
modified in respect of this matter.
Going Concern

The directors have, based on the information available to them, considered the financial plans and
forecasts, available funding facilities, the actions taken by the group, cost reduction and optimisation
plans, the management of working capital and capital expenditure, as well as the refinancing of the
group and capital raised through the successful rights offer. Notwithstanding the material uncertainty
relating to going concern with reference to the group’s ability to execute the asset disposal plan and
raise R2.7 billion in the next 18 months, based on these assessments, the directors are of the opinion
that the going concern assumption is appropriate in the preparation of the consolidated and separate
financial statements.

Looking ahead, the macro-economic environment will remain tough with sustained low growth and
hard currency constraints in key markets. We will continue to strengthen our value proposition and
competitor status, build cultural grit and focus on our strategic transformation agenda. In 2023, we
overcame challenges that some thought were insurmountable. We still have much work to do in the
year ahead. Our sincere thanks to all our stakeholders for their ongoing support.

This short form announcement is the responsibility of the directors and is only a summary of the
information in the full announcement.

The full audited consolidated annual financial statements including the audit opinion, of the external
auditor, Deloitte, and the basis for its unmodified opinion is available on the JSE website at
https://senspdf.jse.co.za/documents/2023/JSE/isse/NPK/FY2023.pdf and on Nampak’s website
http://www.nampak.com/Investors/Financial-Information under the 2023 financial year.

Any investment decisions made by investors and/or shareholders should be based on consideration
of the audited consolidated annual financial statements. The short form announcement has not been
audited.

Copies of the audited consolidated annual financial statements may also be requested from the
Group Company Secretary, Omeshnee Pillay on omeshnee.pillay@nampak.com, alternatively
collected from the company’s registered office, at no charge, during office hours.

Annual results presentation webcast
Nampak management will hold a webcast on Monday, 4 December 2023 at 10h00 Central Africa
Time (UTC+2) to present the annual results, provide a business update and address questions from
the investment community.

Webcast details are available on Nampak’s website http://www.nampak.com/Investors. The annual
results presentation and announcements will be uploaded on the website on the same morning.

Bryanston

4 December 2023

Sponsor: PSG Capital