{"id":447,"date":"2014-08-20T14:20:54","date_gmt":"2014-08-20T12:20:54","guid":{"rendered":"http:\/\/www.remgro.com\/ar2015\/reports-to-shareholders\/chief-financial-officers-report\/"},"modified":"2015-10-19T12:49:56","modified_gmt":"2015-10-19T10:49:56","slug":"chief-financial-officers-report","status":"publish","type":"page","link":"https:\/\/www.remgro.com\/ar2015\/index.php\/reports-to-shareholders\/chief-financial-officers-report\/","title":{"rendered":"Chief Financial Officer’s Report"},"content":{"rendered":"
\"p25-v2\"\r\n

Introduction<\/h2>\r\n

Due to Remgro being an investment holding company, traditional measurements of performance, like sales or gross profit, are not meaningful criteria for evaluating the Group\u2019s performance. However, management uses \u201cheadline earnings\u201c, \u201cintrinsic net asset value\u201c and \u201ccash at the centre\u201c to evaluate the performance of the Group on a continuous basis and hence these concepts are used throughout the Integrated Annual Report to provide shareholders with a better understanding of our\u00a0results.<\/p>\r\n

results<\/h2>\r\n

Headline earnings<\/h3>\r\n

Headline earnings for the year to 30 June 2015 amounted to R7 996 million compared to R6 635 million for the year to 30 June 2014, representing an increase of 20.5%, whereas head\u00adline earnings per share increased by 20.3% from 1 292.4 cents to 1 555.0 cents, as presented in the table below<\/p>\r\n\r\n

Commentary on reporting platforms\u2019 performance<\/h3>\r\n

Food, liquor and home care<\/h4>\r\n

The contribution from food, liquor and home care to Remgro\u2019s headline earnings amounted to R1 531 million (2014: R795 million), representing an increase of 92.6%. This increase is mainly the result of a higher contribution from RCL Foods, which contributed R755 million to headline earnings (2014: R239 million headline loss). It should however be noted that the results of RCL Foods for the year under review now includes the results of TSB, while TSB was still reported separately for the first six months in the comparative year. TSB\u2019s headline earnings for the year under review amounted to R281 million (2014: R218 million). During the year under review RCL Foods\u2019 results were positively affected by Rainbow\u2019s new business model whereby reliance on pure commodity lines was reduced, as well as the restructuring of its debt during the previous financial year whereby the Euro bonds were replaced by a rand based debt package which eliminated the unfavourable foreign exchange adjustments. Unilever\u2019s contribution to Remgro\u2019s headline earnings decreased by 4.6% to R331 million (2014: R347 million). This decrease is mainly the result of increased brand and marketing invest\u00ad-ments. Distell\u2019s contribution to headline earnings, which includes the investment in Capevin Holdings, amounted to R445 million (2014: R495 million). This decrease is mainly the result of a favourable remeasurement of R159 million to the contingent consideration payable on the acquisition of Burn Stewart Distillers Limited accounted for in the comparative year. Excluding this remeasurement, Distell\u2019s contribution to Remgro\u2019s headline earnings would have increased by 0.7% from R442 million. It should be noted that Remgro\u2019s effective interest in Distell decreased from 33.4% to 31.0% due to Distell issuing 15.0 million ordinary shares to BEE shareholders during January 2014.<\/p>\r\n<\/div>\r\n<\/br>\r\n\"headline-earnings\"

Banking<\/h4>\r\n

The headline earnings contribution from the banking division amounted to R2 845 million (2014: R2 542 million), representing an increase of 11.9%. Both FirstRand and RMBH reported good headline earnings growth of 13.2% and 11.8% respectively, mainly due to good growth in both net interest income and non-interest revenue from FNB, RMB and WesBank, partly offset by a slight increase in year-on-year credit impairment charges.<\/p>\r\n

Healthcare<\/h4>\r\n

Mediclinic\u2019s contribution to Remgro\u2019s headline earnings amounted to R1 734 million (2014: R1 489 million). It should be noted that Mediclinic\u2019s results for the year under review include positive Swiss prior year tax adjustments amounting to R712 million, while the comparative period also included a once-off past service cost credit and Swiss tax adjust-ments totalling R303 million. Excluding these once-off items Mediclinic\u2019s contribution to Remgro\u2019s headline earnings would have increased by 5.9% from R1 354 million. This increase is mainly due to solid performances by all three operating platforms, partly offset by the dilution of Remgro\u2019s effective interest in Mediclinic from 44.3% to 42.1% due to the bookbuild exercise undertaken by Mediclinic in June 2014.<\/p>\r\n\r\n

Salient Features<\/h2>\r\n<\/br>\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n
<\/td>\r\n Year
ended
30 June
2015<\/td>\r\n 		Year
ended
30 June
2014<\/td>\r\n 		%<\/em>
change<\/em><\/td>\r\n <\/tr>\r\n
Headline earnings (R million)<\/td>\r\n 7 996<\/td>\r\n 6 635<\/td>\r\n 20.5<\/em><\/td>\r\n <\/tr>\r\n
\u2013 per share (cents)<\/td>\r\n 1 555.0<\/td>\r\n 1 292.4<\/td>\r\n 20.3<\/em><\/td>\r\n <\/tr>\r\n
Earnings (R million)<\/td>\r\n 8 715<\/td>\r\n 6 917<\/td>\r\n 26.0<\/em><\/td>\r\n <\/tr>\r\n
\u2013 per share (cents)<\/td>\r\n 1 694.9<\/td>\r\n 1 347.3<\/td>\r\n 25.8<\/em><\/td>\r\n <\/tr>\r\n
Dividends per share (cents)<\/td>\r\n  <\/td>\r\n  <\/td>\r\n  <\/td>\r\n <\/tr>\r\n
Ordinary<\/td>\r\n 428.00<\/td>\r\n 389.00<\/td>\r\n 10.0<\/em><\/td>\r\n <\/tr>\r\n
\u0096\u2013 Interim<\/td>\r\n 169.00<\/td>\r\n 156.00<\/td>\r\n 8.3<\/em><\/td>\r\n <\/tr>\r\n
\u2013 Final<\/td>\r\n 259.00<\/td>\r\n 233.00<\/td>\r\n 11.2<\/em><\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n  <\/td>\r\n  <\/td>\r\n <\/tr>\r\n
Intrinsic net asset value per share (Rand)<\/td>\r\n 288.89<\/td>\r\n 245.96<\/td>\r\n 17.5<\/em><\/td>\r\n <\/tr>\r\n<\/table>\r\n
<\/div>\r\n

Contribution to Headline Earnings by Reporting Platform<\/h2>\r\n<\/br>\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n
R million<\/td>\r\n Year
ended
30 June
2015<\/td>\r\n 		%<\/em>
change<\/em><\/td>\r\n 		Year
ended
30 June
2014<\/td>\r\n <\/tr>\r\n
Food, liquor and home care<\/td>\r\n 1 531<\/td>\r\n 92.6<\/em><\/td>\r\n 795<\/td>\r\n <\/tr>\r\n
Banking<\/td>\r\n 2 845<\/td>\r\n 11.9<\/em><\/td>\r\n 2 542<\/td>\r\n <\/tr>\r\n
Healtdcare<\/td>\r\n 1 734<\/td>\r\n 16.5<\/em><\/td>\r\n 1 489<\/td>\r\n <\/tr>\r\n
Insurance<\/td>\r\n 986<\/td>\r\n 13.2<\/em><\/td>\r\n 871<\/td>\r\n <\/tr>\r\n
Industrial<\/td>\r\n 381<\/td>\r\n (45.6)<\/em><\/td>\r\n 700<\/td>\r\n <\/tr>\r\n
Infrastructure<\/td>\r\n 392<\/td>\r\n 136.1<\/em><\/td>\r\n 166<\/td>\r\n <\/tr>\r\n
Media and sport<\/td>\r\n (16)<\/td>\r\n (125.0)<\/em><\/td>\r\n 64<\/td>\r\n <\/tr>\r\n
Otder investments<\/td>\r\n 84<\/td>\r\n 42.4<\/em><\/td>\r\n 59<\/td>\r\n <\/tr>\r\n
Central treasury<\/td>\r\n 111<\/td>\r\n 33.7<\/em><\/td>\r\n 83<\/td>\r\n <\/tr>\r\n
Other net corporate costs<\/td>\r\n (52)<\/td>\r\n 61.2<\/em><\/td>\r\n (134)<\/td>\r\n <\/tr>\r\n
Headline earnings<\/td>\r\n 7 996<\/td>\r\n 20.5<\/em><\/td>\r\n 6 635<\/td>\r\n <\/tr> \r\n<\/table>\r\nRefer to the composition of headline earnings<\/a> for further information.<\/small>\r\n

\r\n

Insurance<\/h4>\r\n

RMI Holdings\u2019 contribution to headline earnings increased by 13.2% to R986 million. RMI Holdings reported an increase of 4.6% in normalised earnings, with Discovery and MMI Holdings achieving good earnings growth of 16.9% and 6.3% respectively, partly offset by a weaker performance by OUTsurance mainly due to an increase in claims resulting from severe storms in Australia.<\/p>\r\n\r\n

Industrial<\/h4>\r\n

Total South Africa\u2019s contribution to Remgro\u2019s headline earnings amounted to R133 million (2014: R233 million). This decrease is mainly the result of substantial unfavourable stock revaluations in the year under review compared to favourable stock revaluations in the comparative year. These revaluations are the result of the volatility in the Brent Crude price and the rand exchange rate. Remgro\u2019s share of the results of KTH amounted to a loss of R108 million (2014: profit of R71 million). During the year under review KTH\u2019s results were negatively impacted by unfavourable fair value adjustments relating to its investment in Exxaro Resources Limited. Air Products\u2019 and Wispeco\u2019s contribution to headline earnings amounted to R222 million and R104 million respectively (2014: R217 million and R107 million), while PGSI contributed R30 million to Remgro\u2019s headline earnings (2014: R72 million).<\/p>\r\n\r\n

Infrastructure<\/h4>\r\n

Grindrod\u2019s contribution to Remgro\u2019s headline earnings amounted to R135 million (2014: R108 million). This increase is mainly the result of the closure of Grindrod\u2019s commodity trading division which produced poor results in the comparative year. It should also be noted that Remgro\u2019s effective interest in Grindrod diluted from 25.0% on 31 December 2013 to 22.6% due to the issue by Grindrod of 64 million shares to a consortium of strategic black investors during June 2014. For the year under review the CIV group contributed R51 million to headline earnings (2014: R58 million). SEACOM reported a headline earnings of R96 million for the year under review (2014: headline loss of R26 million), with Remgro\u2019s share of this earnings amounting to R24 million (2014: loss of R6 million). During May 2015 the Pembani Remgro Infrastructure Fund (PRIF) had its first close, which resulted in Remgro receiving an income distribution of R170 million from FNB, RMB and WesBank, partly offset by a slight increase in year-on-year credit impairment charges.<\/p>\r\n\r\n

<\/div>\r\n\r\n

Dividend Cover<\/h2>\r\n

HEPS: HEADLINE EARNINGS PER SHARE<\/p>\r\n\r\n\"dividend-cover\"\r\n\r\n

<\/div>\r\n

During May 2015 the Pembani Remgro Infrastructure Fund had its first close, which resulted in Remgro receiving an income distribution of R170 million from PRIF (mainly resulting from foreign exchange gains realised in the PRIF structure), which together with interest income and related tax charges, contributed R177 million to Remgro\u2019s headline earnings.<\/p>\r\n\r\n

Media and Sport<\/h4>\r\n

Media and sport interests primarily consist of the interests in Sabido and various sport interests, including interests in the rugby franchises of Premier Team Holdings (Saracens), the Blue Bulls and Western Province Rugby, as well as the Stellenbosch Academy of Sport. Sabido\u2019s contri\u00adbution to Remgro\u2019s headline earnings amounted to R69 million (2014: R131 million). This decrease is mainly due to significant new business development costs incurred over the last two years (R245 million compared to R125 million in the comparative year). The sport interests\u2019 contribution to headline earnings amounted to a loss of R65 million (2014: R71 million loss).<\/p>\r\n\r\n

Other investments<\/h4>\r\n

The contribution from other investments to headline earnings amounted to R84 million (2014: R59 million), of which Business Partners\u2019 contribution was R47 million (2014: R33 million).<\/p>\r\n\r\n

Central treasury and other net corporate costs<\/h4>\r\n

The contribution from the central treasury division amounted to R111 million (2014: R83 million). This increase is mainly the result of higher average cash balances, as well as higher interest rates than in the comparative year. Other net corporate costs amounted to R52 million (2014: R134 million). This decrease is mainly the result of a net after-tax facilitation and underwriting fee of R99 million received from Mediclinic on the Spire transaction and resultant rights issue, partly offset by transaction and funding costs of R38 million also relating to the Spire transaction, which will be recovered from Mediclinic in the next financial year.<\/p>\r\n\r\n

Total Earnings<\/h3>\r\n

Total earnings increased by 26.0% to R8 715 million (2014: R6 917 million). This increase is mainly the result of the headline earnings growth and a profit of R955 million realised on the dilution of Remgro\u2019s interest in Mediclinic during the bookbuild in June 2014, partly offset by the loss of R223 million realised on the sale of the investment in Lashou.<\/p>\r\n\r\n

CASH AT THE CENTRE AND FOREIGN EXCHANGE RATES<\/h2>\r\n

On 30 June 2015 Remgro\u2019s cash at the centre amounted to R4 019 million (2014: R3 264 million), of which 36% was invested offshore (2014: 32%). The cash is held in different currencies of which approximately 65% was held in SA rand and 35% in USA dollar.<\/p>\r\n

Remgro\u2019s offshore cash is held in USA dollar. During the year $30 million was transferred from local cash to the offshore cash structure at a SA rand\/USD exchange rate of R12.05. Foreign exchange profits amounting to R120 million (2014: R100 million) were accounted for during the year under review, mainly as a result of the weakening of the SA rand against the USA dollar from R10.63 = $1.00 at 30 June 2014, to R12.14 = $1.00 at 30 June 2015. For accounting purposes these exchange movements are accounted for directly in equity.<\/p>\r\n

As at 30 June 2015 the majority of Remgro\u2019s remaining offshore cash was already committed towards the expansion of existing offshore investments.<\/p>\r\n\r\n

SPIRE TRANSACTION AND EXTERNAL FUNDING<\/h2>\r\n

As part of the Spire acquisition, Remgro obtained a bridge funding facility of R7.5 billion from Rand Merchant Bank in order to partly fund the transaction. The term of the facility is six months and the full amount of the facility was drawn on 13 July 2015 when payment for the Spire investment had to be effected. The bridge facility bears interest at 3 month Jibar plus a 90 basis points margin.<\/p>\r\n

On 26 August 2015, Remgro repaid R4.0 billion of the bridge facility after Mediclinic successfully completed its rights issue and acquired Remgro\u2019s interest in Spire for an amount of R8.6 billion, which is equal to the purchase price, transaction and funding costs. Alternatives are currently being investigated in order to either repay the bridge facility or replace it with a more permanent funding structure.<\/p>\r\n

DIVIDENDS<\/h2>\r\n

The final dividend per share was determined at 259 cents (2014: 233 cents). Total ordinary dividends per share in respect of the year to 30 June 2015 therefore amounted to 428 cents (2014: 389 cents).<\/p>\r\n

The dividend is covered 3.6 times by headline earnings against 3.3 times the previous year.<\/p>\r\n

stc AND DIVIDEND TAX<\/h2>\r\n

With effect from 1 April 2012, STC was replaced with a dividend tax. In terms of the new legislation, companies were allowed to apply their available STC credits against future dividends declared for a period of three years from the effective date of dividend tax. As at 30 June 2014 Remgro\u2019s available STC credits amounted to R1 824 million of which R1 204 million was utilised for the final dividend of 233 cents per share declared on 17 September 2014, while the balance of the available STC credits were utilised for the 2015 interim dividend of 169 cents per share declared on 28 February 2015.<\/p>\r\n

All future dividends, including Remgro\u2019s final dividend for the 2015 financial year of 259 cents per share, will be subject to dividend withholding tax.<\/p>\r\n\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n
 <\/td>\r\n Currency
value million<\/td>\r\n 		30 June
2015
Exchange rate<\/td>\r\n 		R million<\/td>\r\n 30 June
2014
R million<\/td>\r\n <\/tr>\r\n
USA dollar<\/td> \r\n 115.9<\/td>\r\n 12.1431<\/td>\r\n 1 407<\/td>\r\n 976<\/td>\r\n <\/tr>\r\n
Euro<\/td>\r\n –<\/td>\r\n 13.5242<\/td>\r\n –<\/td>\r\n 56<\/td>\r\n <\/tr>\r\n
Swiss franc<\/td>\r\n 0.3<\/td>\r\n 12.9895<\/td>\r\n 4<\/td>\r\n 2<\/td>\r\n <\/tr>\r\n
SA rand<\/td>\r\n  <\/td>\r\n  <\/td>\r\n 2 608<\/td>\r\n 2 230<\/td>\r\n <\/tr>\r\n
 <\/td>\r\n  <\/td>\r\n  <\/td>\r\n 4 019<\/td>\r\n 3 264<\/td>\r\n <\/tr>\r\n<\/table>\r\n<\/br>\r\n

Cash Movement at the Holding Company (Cash at the Centre) (R Million)<\/p>\r\n\"cash-movement\"\r\n<\/br>\r\n\r\n \r\n \r\n \r\n \r\n \r\n
Closing exchange rates<\/strong><\/td>\r\n 30 June
2015<\/td>\r\n 		30 June
2014<\/td>\r\n 		Movement
%<\/em><\/td>\r\n <\/tr>\r\n
USD\/ZAR<\/td>\r\n 12.1431<\/td>\r\n 10.6294<\/td>\r\n (14.2)<\/td>\r\n <\/tr>\r\n
EUR\/ZAR<\/td>\r\n 13.5242<\/td>\r\n 14.5531<\/td>\r\n 7.1<\/td>\r\n <\/tr>\r\n
GBP\/ZAR<\/td>\r\n 19.0563<\/td>\r\n 18.1738<\/td>\r\n (4.9)<\/td>\r\n <\/tr>\r\n
CHF\/ZAR<\/td>\r\n 12.9895<\/td>\r\n 11.9733<\/td>\r\n (8.5)<\/td>\r\n <\/tr>\r\n<\/table>\r\n<\/br>\r\n\r\n \r\n \r\n \r\n \r\n \r\n
Average exchange rates<\/strong><\/td>\r\n Year
Ended
30 June
2015<\/td>\r\n 		Year
Ended
30 June
2014<\/td>\r\n 		Movement
%<\/em><\/td>\r\n <\/tr>\r\n
USD\/ZAR<\/td>\r\n 11.4436<\/td>\r\n 10.3746<\/td>\r\n (10.3)<\/td>\r\n <\/tr>\r\n
EUR\/ZAR<\/td>\r\n 13.7119<\/td>\r\n 14.0811<\/td>\r\n 2.6<\/td>\r\n <\/tr>\r\n
GBP\/ZAR<\/td>\r\n 17.9959<\/td>\r\n 16.8901<\/td>\r\n (6.5)<\/td>\r\n <\/tr>\r\n
CHF\/ZAR<\/td>\r\n 12.1326<\/td>\r\n 11.4847<\/td>\r\n (5.6)<\/td>\r\n <\/tr>\r\n<\/table>\r\n\r\n\r\n

zar vs foreign currencies remgro holds<\/h4>\r\n\"zar-vs-foreign-currencies-remgro-holds\"\r\n\r\n

INTRINSIC net asset VALUE<\/h2>\r\n

Remgro\u2019s intrinsic net asset value per share at 30 June 2015was R288.89 compared to R245.96 on 30 June 2014. Refer to the Chief Executive Officer\u2019s Report<\/a> for a detailed discussion regarding Remgro\u2019s intrinsic net asset value and its relative performance with certain selected JSE indices.<\/p>\r\n\r\n

ACCOUNTING POLICIES<\/h2>\r\n

The annual financial statements have been prepared in accordance with International Financial Reporting Standards. The accounting policies have been consistently applied to both years presented, with the exception of the implementation of IFRIC 21: Levies and the amendments to IAS 19: Employee Benefits, IAS 32: Financial Instruments \u2013 Presentation, IAS 36: Impairment of Assets and IAS 39: Financial Instruments \u2013 Novation of derivatives and continuation of hedge accounting. The adoption of these interpretations and amendments had no impact on the results of either the current or prior year.<\/p>\r\n\r\n

RISK MANAGEMENT<\/h2>\r\n

The Company has implemented a comprehensive Risk Manage\u00adment Policy that is based on the principles of the international COSO (Committee of Sponsoring Organisations of the Tread\u00adway Commission) Enterprise Risk Management \u2013 Integrated Framework and complies with the recommendations of King\u00a0III. A comprehensive risk management structure has also been implemented to ensure the effective and efficient management of risk within the Group.<\/p>\r\n

Remgro\u2019s risk management process is summarised in the Risk Management Report here<\/a>, as well as in the comprehensive annual financial statements on page\u00a067<\/a>.<\/p>\r\n

<\/div>\r\n\"sig-1\"\r\n

Leon Crouse<\/p>\r\n

Chief Financial Officer<\/p>\r\n

Stellenbosch<\/p>\r\n

17 September 2015<\/p>\r\n\r\n<\/a>\r\n

COMPOSITION OF HEADLINE EARNINGS<\/h2>\r\n\r\n
<\/div>\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n
R million<\/td>\r\n Year
ended
30 June
2015<\/td>\r\n 		%
change<\/em><\/td>\r\n 		Year
ended
30 June
2014<\/td>\r\n <\/tr>\r\n
Food, liquor and home care<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Unilever Soutd Africa<\/td>\r\n 331<\/td>\r\n (4.6)<\/em><\/td>\r\n 347<\/td>\r\n <\/tr>\r\n
Distell(1)<\/td>\r\n 445<\/td>\r\n (10.1)<\/em><\/td>\r\n 495<\/td>\r\n <\/tr>\r\n
RCL Foods(2)<\/td>\r\n 755<\/td>\r\n 415.9<\/em><\/td>\r\n (239)<\/td>\r\n <\/tr>\r\n
TSB(2)<\/td>\r\n \u0096<\/td>\r\n (100.0)<\/em><\/td>\r\n 192<\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Banking<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
RMBH<\/td>\r\n 2 005<\/td>\r\n 11.8<\/em><\/td>\r\n 1 793<\/td>\r\n <\/tr>\r\n
FirstRand<\/td>\r\n 840<\/td>\r\n 12.1<\/em><\/td>\r\n 749<\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Healthcare<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Mediclinic<\/td>\r\n 1 734<\/td>\r\n 16.5<\/em><\/td>\r\n 1 489<\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Insurance<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
RMI Holdings<\/td>\r\n 986<\/td>\r\n 13.2<\/em><\/td>\r\n 871<\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Industrial<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Air Products Soutd Africa<\/td>\r\n 222<\/td>\r\n 2.3<\/em><\/td>\r\n 217<\/td>\r\n <\/tr>\r\n
Ktd<\/td>\r\n (108)<\/td>\r\n (252.1)<\/em><\/td>\r\n 71<\/td>\r\n <\/tr>\r\n
Total Soutd Africa<\/td>\r\n 133<\/td>\r\n (42.9)<\/em><\/td>\r\n 233<\/td>\r\n <\/tr>\r\n
PGSI<\/td>\r\n 30<\/td>\r\n (58.3)<\/em><\/td>\r\n 72<\/td>\r\n <\/tr>\r\n
Wispeco<\/td>\r\n 104<\/td>\r\n (2.8)<\/em><\/td>\r\n 107<\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Infrastructure<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Grindrod<\/td>\r\n 135<\/td>\r\n 25.0<\/em><\/td>\r\n 108<\/td>\r\n <\/tr>\r\n
CIV group<\/td>\r\n 51<\/td>\r\n (12.1)<\/em><\/td>\r\n 58<\/td>\r\n <\/tr>\r\n
SEACOM<\/td>\r\n 24<\/td>\r\n 500.0<\/em><\/td>\r\n (6)<\/td>\r\n <\/tr>\r\n
Other infrastructure interests<\/td>\r\n 182<\/td>\r\n 2 933.3<\/em><\/td>\r\n 6<\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Media and sport<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Sabido<\/td>\r\n 69<\/td>\r\n (47.3)<\/em><\/td>\r\n 131<\/td>\r\n <\/tr>\r\n
Other media and sport interests<\/td>\r\n (85)<\/td>\r\n (26.9)<\/em><\/td>\r\n (67)<\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Other investments<\/td>\r\n 84<\/td>\r\n 42.4<\/em><\/td>\r\n 59<\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Central treasury<\/td>\r\n 111<\/td>\r\n 33.7<\/em><\/td>\r\n 83<\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Other net corporate costs<\/td>\r\n (52)<\/td>\r\n 61.2<\/em><\/td>\r\n (134)<\/td>\r\n <\/tr>\r\n
Headline earnings<\/td>\r\n 7 996<\/td>\r\n 20.5<\/em><\/td>\r\n 6 635<\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Weighted number of shares (million)<\/td>\r\n 514.2<\/td>\r\n 0.2<\/em><\/td>\r\n 513.4<\/td>\r\n <\/tr>\r\n
<\/td>\r\n <\/td>\r\n <\/td>\r\n <\/td>\r\n <\/tr>\r\n
Headline earnings per share (cents)<\/td>\r\n 1 555.0<\/td>\r\n 20.3<\/em><\/td>\r\n 1 292.4<\/td>\r\n <\/tr>\r\n<\/table><\/div><\/div>","protected":false},"excerpt":{"rendered":"

Introduction Due to Remgro being an investment holding company, traditional measurements of performance, like sales or gross profit, are not meaningful criteria for evaluating the Group\u2019s performance. However, management uses \u201cheadline earnings\u201c, \u201cintrinsic net asset value\u201c and \u201ccash at the centre\u201c to evaluate the performance of the Group on a continuous basis and hence these… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":9,"menu_order":69,"comment_status":"closed","ping_status":"closed","template":"page-full-width.php","meta":{"footnotes":""},"yoast_head":"\nChief Financial Officer's Report - Remgro Limited<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.remgro.com\/ar2015\/index.php\/reports-to-shareholders\/chief-financial-officers-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chief Financial Officer's Report - Remgro Limited\" \/>\n<meta property=\"og:description\" content=\"Introduction Due to Remgro being an investment holding company, traditional measurements of performance, like sales or gross profit, are not meaningful criteria for evaluating the Group\u2019s performance. 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