About this report

Ratio definitions

The table below lists commonly used ratio definitions in this report.

Average capital employed

Equity (including non-controlling interests) + financial debt + liabilities from finance leases – cash and cash equivalents and receivables from finance leases


Gross profit after distribution expenses


Earnings before interest and tax

Lost-time injury rate (LTIR)

LTIR is a measure of the rate at which employees are unable to work due to injuries, using a base of 1 000 000 hours

Earnings per share (EPS)

Net income after tax for the period attributable to Afrox shareholders/number of shares in issue excluding treasury shares


EBIT before non-recurring items adjusted for amortisation of intangible assets and depreciation of tangible assets

Headline earnings per share (HEPS)

Net income after tax for the period before non-trading items, attributable to Afrox shareholders/number of shares in issue excluding treasury shares.

Return on capital employed (ROCE)

EBIT/average capital employed

This report is intended for providers of financial capital and other key stakeholders, including employees, government, industry regulators, and current and prospective customers. In this report, ‘Afrox’, ‘Company’, ‘the Group’, ‘us’, ‘our’ and ‘we’ refer to African Oxygen Limited and/or its management.

Reporting approach

Basis for reporting

Our integrated report is based on material matters that substantively influence Afrox’s ability to create value:

  • Economic strain and persistent lower demand
  • ­Government policy and regulation
  • ­Safety and security
  • ­Legal compliance and sound corporate governance
  • ­Emerging Africa growth
  • ­Supply chain reliability, efficiency and cost base
  • ­Attracting, developing and retaining talent
  • ­Transformation including Broad-Based Black Economic Empowerment (BBBEE) and employment equity
  • Refer to material matters for detailed information.

Frameworks and guidelines

The information provided in this integrated report is based on local and international requirements and frameworks. These include the:

  • International Integrated Reporting Council’s (IIRC) Integrated Reporting <IR> Framework (<IR> Framework);
  • King IV Report on Corporate Governance for South Africa 2016 (King IV);
  • International Financial Reporting Standards (IFRS);
  • Companies Act of South Africa, 71 of 2008, as amended (Companies Act); and
  • Listings requirements of the JSE Limited (JSE Listings Requirements).

Afrox enhanced the integrated report by including improved sustainability disclosure. This was done by including selected disclosures referenced from the GRI 102: General Disclosures standard and other sustainability frameworks.

This integrated report presents the holistic performance of African Oxygen Limited for the financial year ended 31 December 2017.

Reporting suite

This integrated report is our primary form of communication, describing our value creation, strategy, performance and future prospects. The summarised audited financial statements included are derived from the audited consolidated financial statements for the year ended 31 December 2017.

The following reports and supplementary documents to our integrated report are available at:

Reports and supplementary documents Purpose and basis of preparation Assurance over content
Audited Group Annual Financial Statements for the year ended 31 December 2017 Full financial statements in accordance with IFRS and Companies Act requirements.
  • Internal controls
  • Internal audit
  • Management and governance oversight
  • External audit opinion
King IV disclosure guide Afrox discloses its compliance and application of the King IV principles.
  • Internal controls
  • Management and governance oversight
Supplementary reports These reports provide additional information regarding:
  • Safety, health, environment and quality (SHEQ)
  • A SHEQ award certification table – a list of various certifications and accreditations, and the Afrox sites to which they relate
  • Leadership and committee terms of reference – a list of the qualifications held by our Board and executive management, and the terms of reference for each Board committee
  • GRI 102 standard: A core disclosure guide
  • Internal controls
  • Management and governance oversight
  • External assurance providers (SHEQ award certification table only)

Scope and boundary

This report is published annually and provides information on the performance of Afrox and its consolidated entities. Included in the report are Afrox’s subsidiaries and operations in South Africa and Emerging Africa. Details of our subsidiaries and associate can be found in notes 34 and 36 to the Audited Group Annual Financial Statements. Where relevant stakeholders influence our business substantially, Afrox reports on the real and potential impacts of these stakeholders on our value chain. Since the Company’s last integrated report for the year ending 31 December 2016, there have been no restatements to comparatives unless otherwise stated in the relevant section.


Afrox uses a combined assurance model with three lines of defence to ensure the integrity and validity of the information included in the integrated report. This includes line management and managerial controls, functional areas, and independent, objective internal and external assurance providers. Refer to our combined assurance model.

Afrox does not obtain external assurance on sustainability data; rather assurance is obtained through management and governance oversight.

The summarised audited consolidated financial statements contained in this report are a summary of the audited and consolidated financial statements for the year ended 31 December 2017, on which KPMG Inc. has expressed an unmodified audit opinion.

Board responsibility

Ultimate responsibility for overseeing the integrity and completeness of this integrated report belongs to the Afrox Board and its sub-committees. The Board applied its collective mind to the preparation and presentation of this report. The Board considered the accuracy and completeness of the material matters determined by executive management and deems these to be satisfactory according to the IIRC <IR> Framework.

The Board believes the report provides information that meets the information needs of material stakeholders. The Board has evaluated the reporting frameworks used and the reliability of all data and information presented, and is satisfied that the information contained in this integrated report is correct and adheres to the chosen frameworks.

The Board approved the 2017 integrated report on 3 April 2018.

Bernd Eulitz


Schalk Venter

Managing Director

Matthias Vogt

Group Financial Director

Forward-looking statements

Opinions expressed in this report are, by nature, subject to known and unknown risks and uncertainties. Changing information or circumstances may cause the actual results, plans and objectives of Afrox to differ materially from those expressed or implied in any forward-looking statements. Undue reliance should not be placed on such opinions, forecasts or data.

No representation is made on the completeness or correctness of opinions, forecasts or data in this report. Neither Afrox nor any of its affiliates, advisors or representatives accepts any responsibility for any loss arising from the use of any opinions expressed, forecast or data in this report. Forward-looking statements apply only as of the date on which they are made and Afrox does not undertake any obligation to publicly update or revise any of its opinions or forward-looking statements, whether to reflect new data or future events or circumstances.

The financial information on which the forward-looking statements are based has not been audited or reported on by Afrox’s independent external auditors.


We welcome your feedback to aid us in improving our reporting. Please send your queries and comments to corporate communications at investor.relations@afrox.linde.com.