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Long-term provisions (Tables)

12 Months Ended

Jun. 30, 2022

Long-term provisions

Schedule of changes in long-term provisions


					Share-
			Environ-		based
			mental		payments		Other		Total
for the year ended 30 June			Rm		Rm		Rm		Rm
Balance at beginning of year			16 196		29		1 136		17 361
Capitalised to property, plant and equipment			20		—		—		20
Reduction in rehabilitation provision capitalised¹			(484)		—		—		(484)
Transfer to disposal groups held for sale²			(938)		—		(30)		(968)
Per the income statement			925		(27)		(255)		643
additional provisions and changes to existing provisions			971		(9)		52		1 014
reversal of unutilised amounts			—		(18)		(252)		(270)
effect of change in discount rate			(46)		—		(55)		(101)
Notional interest			721		—		5		726
Utilised during year (cash flow)			(216)		(2)		(92)		(310)
Foreign exchange differences recognised in income statement			138		—		32		170
Translation of foreign operations			845		—		12		857
Balance at end of year			17 207		—		808		18 015

1

Decrease in rehabilitation provision capitalised in 2022 relates to a reassessment of the provision based on discount rates and cost estimates.

2

Relates to long-term provisions of the European wax business disposed of during the year, refer note 10.

Schedule of expected timing of future cash flows for provisions


				2022		2021
for the year ended 30 June		Note		Rm		Rm
Expected timing of future cash flows
Within one year				1 465		1 197
One to five years				5 429		5 287
More than five years				11 121		10 877
				18 015		17 361
Short-term portion		33		(1 465)		(1 197)
Long-term provisions				16 550		16 164
Estimated undiscounted obligation*				105 792		92 109

*

Increase relates mainly to a reassessment of cost estimates and volumes used in the environmental provisions.

Summary of risk-free rates used to discount the estimated cash flows related to provisions


		2022		2021
for the year ended 30 June		%		%
South Africa		6,6 to 10,1		4,2 to 10,3
Europe		0,6 to 2,4		0,0 to 0,5
United States of America		2,2 to 3,3		0,2 to 1,8

Schedule of effect on provisions from changes in the discount rate


		2022			2021
for the year ended 30 June		Rm			Rm
A 1% point change in the discount rate would have the following effect on the long-term provisions recognised
Increase in the discount rate			(4 405)		(4 352)
amount capitalised to property, plant and equipment			(1 237)		(1 250)
income recognised in income statement			(3 168)		(3 102)
Decrease in the discount rate			5 474		5 266
amount capitalised to property, plant and equipment			1 646		1 787
expense recognised in income statement			3 828		3 479