Short-term incentives ʹˌʥʦ ˚ro˨ˣʢfinancial ˚oals In this section, we outline the actual STI outcomes for each nancial performance measure relative to the target set at the beginning of the nancial year. At the request of shareholders, we have provided the absolute values for targets and the actual outcomes for the year under review: On-target outcome (%) FY23 targets FY23 Actuals % of target achieved FY23 outcome (%) 25 R57.4bn R59.1bn 103 30.0 25 R8.80 R8.28 95 23.7 25 R5.5bn R2.9bn 52 0.0 6.3 286k 294.4k 103 7.0 6.3 1 125k 1 410k 125 7.5 6.3 336k 214k 64 0.0 6.3 435k 458k 105 7.5 100 75.7 On-target Vesting (%) FY23 targets FY23 Actual % of target achieved FY23 vesting (%) 18.75 R4.30 R8.28 193 25.0 37.5 R8.2bn R14.1bn 172 50.0 18.75 32% 42.4% 133 25.0 75 100 (2) Free cash ow was above the stretch target primarily due to the better than stretch target earnings growth. Signi cant savings were achieved over the three-year period through the acceleration of the group’s cost optimisation programme at the onset of COVID-19 and consistently in the years that followed. Over the three-year period, the group achieved R3.9bn in cost savings, well above the budgeted R2.8bn savings over the same period. Capital expenditure was managed below target levels throughout the three-year period and a focus on working capital management delivered better than target outcomes. (3) ROCE was 42.4% at 31 March 2023 due to the higher earnings performance and an ef cient use of the asset base in the group, assisted in part by the declaration of a stable ZAR2.5bn dividend during FY22 and FY23. Overview Introduction Understanding Phuthuma Nathi Understanding MultiChoice SA MultiChoice SA performance Financial review Corporate governance review Shareholder information Phuthuma Nathi Investments (RF) Limited Integrated annual report 2023 119
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