THE BUSINESS
BUSINESS PARTNERS
To be a business partner of choice through driving effective
strategy execution and optimally leveraging critical mass,
value synergies, operational efficiencies and other benefits
to the long-term advantage of the group as a whole.
COST OF INVESTMENTS
R’m
600
500
400
300
200
100
-
2011 2012 2013 2014 2015 2016 2017 2018 2019
Subsidiaries
JVs and Associate **
2020 *
* Cost of investments in subsidiaries increased due to the acquisition of
KLK Landbou, Falcon Agricultural Equipment and Grainovation during the
year under review.
** The cost of JV and associate investments is indicated from a group perspective.
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ISSUES DURING THE YEAR
� Lack of strategic alignment and ineffective strategy execution
at some joint ventures, subsidiaries and associate companies.
� Operational inefficiencies and lack of operational execution
were observed at some of the group's business partners.
� Sub-par financial performance of certain joint venture companies.
� Variable success rate with regards to the unlocking of value
from leveraging critical mass, integration and value synergies.
COMPANY’S RESPONSE TO THESE ISSUES
� Regular financial, operational and strategic evaluation of each
joint venture, subsidiary and/or associate to determine the
applicable actions needed to effect optimal financial performance,
operational efficiency, strategic fit and value-unlocking
to ensure sustainability in the long run.
� To maintain sustainable relationships with business partners
and ensure regular engagement with them, representatives
from Senwes serve on the boards of joint ventures, subsidiaries
and/or associate companies.
SENWES INTEGRATED REPORT 2020
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