Value added statement

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
(R’million) 2021 2020
Note 1    
Income taxation (excluding deferred tax) 765,2 769,0
Skills Development Levy 30,0 25,4
Rates and taxes paid to local authorities 40,2 32,1
Customs duties, import surcharges and excise taxes 136,8 247,2
Gross contribution to government 972,2 1 073,7

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).