Preliminary summarised results
for the year ended 30 June 2020

Glossary of terms

Net asset value per share
  • equity attributable to owners of Imperial divided by total ordinary shares in issue net of shares repurchased (the deferred ordinary shares only participate to the extent of their par value of 0,04 cents).
Net debt
  • is interest-bearing borrowings, less cash resources.
Net debt excluding lease obligations (IFRS 16 lease liability)
  • is interest-bearing borrowings, less lease obligations, and cash resources.
Net capital expenditure
  • is the aggregate of the expansion and replacement capital expenditure net of proceeds on sale.
Net working capital
  • is inventories plus trade, other receivables and contract assets less trade and other payables and provisions.
Operating assets
  • total assets less loans receivable, tax assets and assets of disposal group. 
Operating liabilities
  • total liabilities less interest-bearing borrowings, tax liabilities and put option liabilities. 
Operating profit
  • profit from business operations (gross profit minus operating expenses and depreciation).
Operating margin (%)
  • operating profit as a percentage of revenue. 
Free cash flow
  • calculated by deducting replacement capital expenditure and lease payments from the cash flow from operating activities.
Free cash flow per share
  • calculated by the dividing free cash flow by the weighted average number of shares used in the basic earnings per share calculation.
  • profit from operations before depreciation and recoupments.
Continuing free cash conversion
  • calculated by dividing continuing EBITDA less continuing capital expenditure by continuing EBITDA.
EBITDA used for bank covenants
  • Earnings after non-controlling interest before interest taxes and depreciation
Net debt to EBITDA used for bank covenants
  • net bank debt divided EBITDA used for bank covenants.
Pro forma information
  • pro forma financial information is the result of adjusting information about the group at a specific date or for a particular period.
Pre-tax profit
  • calculated as profit before tax, impairment of goodwill and profit or loss on sale of investment in subsidiaries, associates and joint ventures and other businesses. 
Return on invested capital (ROIC) (%)
  • this is the return divided by invested capital. 
  • return is calculated by reducing the operating profit by a blended tax rate, which is an average of the actual tax rates applicable in the various jurisdictions in which Imperial operates, increased by the share of result of associates and joint ventures.
  • invested capital is a 12-month average of total equity plus interest-bearing borrowings less cash resources.
Weighted average cost of capital (WACC) (%)
  • calculated by multiplying the cost of each capital component by its proportional weight, therefore: WACC = (after tax cost of debt % multiplied by average debt weighting) + (cost of equity multiplied by average equity weighting). The cost of equity is blended recognising the cost of equity in the different jurisdictions in which Imperial operates.
Margin above WACC %
  • is the difference between ROIC and WACC.
Net debt:equity % (excluding lease liability)
  • net debt excluding lease obligations as a percentage of equity.
Net debt:equity % (including lease liability)
  • net debt as a percentage of equity.
Revenue to average net operating assets (times)
  • revenue divided by average net operating assets.
Revenue relating to sale of goods to average inventory (times)
  • revenue relating to sale of goods divided by average inventory.
Operating profit to average net operating assets (%)
  • operating profit divided by average net operating assets.
Return on average ordinary shareholders’ interest (%)
  • net profit attributable to owners of Imperial divided by average shareholders’ equity (calculated by using the opening and closing balances) attributable to Imperial shareholders.
Free cash flow from continuing operations to headline earnings from continuing operations ratio
  • free cash flow from continuing operations divided by headline earnings from continuing operations.
Total taxes and levies paid
  • made up of South African normal tax, secondary tax on companies, foreign tax, rates and taxes, skills development and unemployment insurance fund levies.
Earnings yield (%)
  • the headline earnings per share divided by the closing price of a share.
Price earnings ratio (times)
  • the closing price of a share divided by the headline earnings per share.
Total market capitalisation at closing prices (Rm)
  • total ordinary shares in issue before treasury shares multiplied by the closing price per share.
Asset intensity
  • revenue as a percentage of (PPE + transport fleet + net working capital)