Page 14 - SABN AR 2021

1 500 1 200 900 600 300 0
300 250 200 150 100
50 0
15 10
05
-5 -10 -15
Volume
Revenue (R millions)
1 291
1 226 892
Revenue
716
862
806
827 584
895 586 628
1 023
1 069
1 223
1 009
1 116
2014 2015 2016 2017 2018 2019 2020 2021
EBITDA
R millions
206
238
256
189
Chief Financial Officer’s review
14
Financial position
Capital expenditure is at R86 million against a budget of R356 million. Significant planned capital expenditure for the 2020/21 financial year has been rolled over into the 2021/22 financial year due to challenges and delays presented by the COVID-19 pandemic. Included in capital expenditure are investments relating to the improvement in banknote production quality, comprising offline quality sheet inspection systems, and ICT-related infrastructure and upgrades to improve network segmentation and cybersecurity.
Cash on hand increased from R598 million to R716 million in 2020/21. The higher cash balance is attributable to the delays in planned capital expenditure for the reporting period due to the impact of COVID-19. No repayment of the shareholder’s loan or dividend declarations were made.
South African Bank Note Company (RF) Proprietary Limited
The SABN reports a net profit after tax of R60 million for the 2020/21 financial year compared to a net profit after tax of R106 million in the 2019/20 financial year. This is attributable to a decrease in sales volume of 27%, offset by an increase in selling prices of 12%.
The COVID-19 pandemic affected trading conditions that persisted throughout the financial year under review. The SABN experienced several stoppages in its banknote manufacturing operations and delivered 892 million banknotes to the SARB in the 2020/21 financial year compared to 1.226 billion banknotes in the previous financial year. A total of 974 million banknotes were manufactured in the year under review in comparison to a budget of 1 billion banknotes.
Key financial information, which illustrates the trends of the SABN from 2014 to date, is summarised below.
The SABN reports an EBITDA of R153 million for the 2020/21 financial year compared to R189 million in the 2019/20 financial year. This is a decrease of 19% from the previous year and can be attributed to a reduction in banknote sales volume, offset by savings in administrative and operating-related costs. The average banknote waste rate decreased to 5.8% compared to 9.4% for the previous financial year.
The return on net assets (RONA) for the 2020/21 financial year is 4.1%.
32
2014 2015 2016 2017 2018 2019 2020 2021
155
159
153
RONA
Percentage
3.3
5.4
7.1
4.1
(10.6)
9.29
11.0
2014 2015 2016 2017 2018 2019 2020 2021
(0.4)
Annual Report 2021