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THE BUSINESS
FINANCIAL CAPITAL
I
t is the pool of available funds which can be used in the achievement of the strategy
of Senwes, thereby creating value for all stakeholders and unlocking such value at a
suitable time. It includes debt, equity and cash generated by business units as well
as investments. It is important for Senwes to invest funds allocated by shareholders
and financiers at the most optimal investment rates, in order to ensure share growth
and dividend yield for shareholders, as well as interest and the required capital re-
demption for financiers. Capital is allocated to each focus area in a balanced manner
in order to ensure the most optimal outcome.
KEY INPUTS
2018 2017
Capital expenditure to advance strategic projects R’m 140,6 116,4
Additional funding from financiers R’m 411,7 434,5
Opening shareholders’ equity R’bn 2,0 1,9
Loan facility R’bn 3,5 3,5
Unutilised loan facility R’bn 1,3 1,4
Market capitalisation R’bn 2,0 1,9
Share buy-back R’m 44,1 -
OUTCOMES
2018 2017
Earnings before interest and tax (EBIT) R’m 654,6 432,9
Cash generated by business units R’m 286,4 164,5
Normalised headline earnings c/share 195,5 108,4
Dividends for the year c/share Interest paid R’m Interest cover Times Growth in net asset value c/share Own capital ratio % 54,0 45,0
222,8 204,4
3,1 2,3
137,4 63,4
35,9 37,9
Natural interest rate hedging:
Interest-earning assets R’bn 4,0 3,7
Interest-bearing liabilities R’bn 3,0 2,6
ACTIONS TO IMPROVE OUTCOMES
Strategic objectives (p 46 for the Senwes strategy);
Mitigation of risks (p 82 for Senwes' risk mitigation);
Cost savings programmes;
Focused cash flow management;
Focused balance sheet management and improved working capital;
Sensitivity analysis in respect of solvency and liquidity levels in order to
determine debt tolerance;
Efficiency programmes.
OVERVIEW | THE BUSINESS | STRATEGIC AND OPERATING CONTEXT | CORPORATE GOVERNANCE | FINANCIAL REVIEW