Value added is a measure of the wealth the group has been able to create. The following statement shows how this wealth has been distributed.
2021 | 2020* | |||
(R’million) | (%) | (R’million) | (%) | |
Revenue | 30 953,9 | 100,0 | 29 796,1 | 100,0 |
---|---|---|---|---|
Less: Net cost of products and services | 23 714,6 | 76,6 | 22 145,6 | 74,3 |
Value added | 7 239,3 | 23,4 | 7 650,5 | 25,7 |
Add: Income from investments and associates | 366,5 | 1,2 | 382,0 | 1,3 |
Add: Foreign exchange (losses)/gains | (8,7) | – | 40,1 | 0,1 |
Wealth created | 7 597,1 | 24,6 | 8 072,6 | 27,1 |
Applied to: | ||||
Employees | ||||
– Salaries, wages and other benefits | 3 989,2 | 52,5 | 4 117,6 | 51,0 |
Providers of capital | 1 760,1 | 23,2 | 900,6 | 11,2 |
– Interest on financing facilities | 57,0 | 0,7 | 110,8 | 1,4 |
– Dividends and capital distributions to non-controlling interests and preference shareholders | 19,5 | 0,3 | 50,0 | 0,6 |
– Dividends to ordinary shareholders | 1 683,6 | 22,2 | 739,8 | 9,2 |
Government | ||||
Taxation (refer note 1) | 972,2 | 12,8 | 1 073,7 | 13,3 |
Retained in the group | 875,6 | 11,5 | 1 980,7 | 24,5 |
7 597,1 | 100,0 | 8 072,6 | 100,0 |
The payments to government exclude taxation deducted from employees’ remuneration of R754,2 million (2020: R449,1 million), net VAT receivable of R152,2 million (2020 receivable: R9,2 million), excise duty on revenue and UIF payments.
(R’million) | 2021 | % | 2020 | % | 2019 | % | 2018 | % | 2017 | % |
Trend of value added | ||||||||||
Employees | 3 989,2 | 52 | 4 117,6 | 51 | 4 043,0 | 48 | 3 857,5 | 45 | 3 733,7 | 39 |
Providers of capital | 1 760,1 | 23 | 900,6 | 11 | 5 681,7 | 67 | 1 932,7 | 23 | 2 066,6 | 22 |
Government | 972,2 | 13 | 1 073,7 | 13 | 1 157,7 | 14 | 1 033,9 | 12 | 1 257,8 | 13 |
Retained in the group | 875,6 | 12 | 1 980,7 | 25 | (2 426,1) | (29) | 1 821,2 | 20 | 2 444,2 | 26 |
7 597,1 | 100 | 8 072,6 | 100 | 8 456,3 | 100 | 8 645,3 | 100 | 9 502,3 | 100 |
* Restated as required in line with the presentation requirements of IAS 1 as part of continuous improvements in terms of IFRS. (Refer note 21.2).