Chapter 19: Annexures (unaudited)

Annexure 2: Definitions

The following definitions are to be used in a group context:

Attributable cash flow per ordinary share	Cash flow from operating activities after adjusting for participation of NCIs therein, divided by the weighted average number of ordinary shares in issue during the year.

Attributable earnings	Earnings attributable to owners of the parent (Exxaro) which is determined by deducting earnings attributable to non-controlling shareholders from total earnings of the group.
Capital employed	Total equity plus net debt minus both non-current financial assets and other non-current assets.
Current ratio	Total current assets divided by total current liabilities.
Dividend cover: Adjusted Group Earnings	Adjusted Group Earnings divided by dividends paid (excluding the pass through of the SIOC dividend).
Dividend yield	Dividends per ordinary share divided by closing share price per ordinary share.
Earnings per ordinary share:	Attributable earnings basis Attributable earnings divided by the weighted average number of ordinary shares in issue (net of treasury shares) during the year.
	Headline earnings basis Headline earnings divided by the weighted average number of ordinary shares in issue (net of treasury shares) during the year.
EBIT	Net operating profit before interest, tax, impairment charges or impairment reversals and net losses or gains on the disposal of assets and investments (including translation differences recycled to profit or loss).
EBITDA	Net operating profit before interest, tax, depreciation, amortisation, impairment charges or impairment reversals and net losses or gains on the disposal of assets and investments (including translation differences recycled to profit or loss).
Effective interest rate	The rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability.
Financial cost cover: EBIT cover	EBIT divided by net financing costs.
Financial cost cover: EBITDA cover	EBITDA divided by net financing costs.
Good leavers	A participant whose employment with employer companies is terminated due to: (i) the Participant’s: • retrenchment • retirement • death • serious disability or incapacitation • promotion out of the relevant qualifying category; or (ii) the employer company ceasing to form part of the employer companies, provided that any transfer of employment by a participant to another employer company shall not be deemed to constitute any terminations of employment by a participant with the employer companies.
Headline earnings	Earnings attributable to owners of the parent (Exxaro) adjusted for gains or losses on items of a capital nature, recognising the tax and NCIs impact on these adjustments.
Headline earnings yield	Headline earnings per ordinary share divided by the closing share price on the JSE.
Interest-bearing debt	Sum of interest-bearing borrowings and lease liabilities. The calculations include the respective items classified as non-current liabilities held-for-sale.
Invested capital	Total equity, interest-bearing debt, non-current provisions and net deferred tax less cash and cash equivalents.
Materiality	Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that primary users of general purpose financial statements make, on the basis of those financial statements, which provide financial information about the reporting entity.
	Materiality is determined on a case-by-case basis depending on the facts and circumstances pertaining to the item, transaction, adjustment, information or event (matter) taking into account both qualitative and quantitative factors.
Net assets	Total assets less total liabilities less NCIs which equates to equity of owners of the parent (Exxaro).
Net debt or cash	Net debt or cash is calculated as the sum of interest-bearing borrowings, lease liabilities and overdraft less cash and cash equivalents. The calculations include the respective items classified as non-current assets and liabilities held-for-sale.
Net debt to equity ratio	Net debt or cash as a percentage of total equity.
Net operating profit	Net operating profit or loss equals revenue less operating expenses, major once-off expense items and impairment charges of non-current operating assets, plus impairment reversals of non-current operating assets and major non-recurring income items. Major non-recurring items which relate to significant corporate activities are presented separately on the statement of comprehensive income between operating profit or loss and net operating profit or loss.
Non-core items	Gains and losses adjusted in the calculation of headline earnings.
Number of years to repay interest-bearing debt	Interest-bearing debt divided by cash flow from operating activities.
Operating margin	Net operating profit as a percentage of revenue.
Operating profit	Operating profit or loss equals revenue less operating expenses before impairment charges or impairment reversals of non-current operating assets and major non-recurring items.
Operating segments	An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses; and whose operating results are reviewed regularly by the entity’s chief operating decision maker to make decisions about resources allocated to the segment and assess its performance; and for which discrete financial information is available.
Return on capital employed	Net operating profit plus income from non-equity-accounted investments plus income from equity-accounted investments, as a percentage of average capital employed.
Return on invested capital	Net operating profit plus income from non-equity-accounted investments plus income from equity-accounted investments, as a percentage of the average invested capital.
Return on net assets	Net operating profit plus income from non-equity-accounted investments plus income from equity-accounted investments, as a percentage of the average net assets.
Return on ordinary shareholders’ equity:	Attributable earnings Attributable earnings as a percentage of average equity attributable to owners of the parent (Exxaro).
	Headline earnings Headline earnings as a percentage of average equity attributable to owners of the parent (Exxaro).
Revenue per employee	Revenue divided by the average number of employees during the year.
Total asset turnover	Revenue divided by average total assets.
WANOS calculation	The number of shares in issue at the beginning of the year, increased by shares issued during the year, decreased by share repurchases during the year and treasury shares, weighted on a time basis for the period in which they have participated in the earnings of the group. In the case of shares issued pursuant to a share capitalisation award in lieu of dividends, the participation of such shares is deemed to be from the date of issue.