FUTURE PROSPECTS
Given the environment in which we operate and the current agricultural conditions, we are
subject to several variable factors beyond management’s control. We anticipate that the current
Covid-19 crisis may have the following financial impact on the 2021 financial year results:
Risk Factor
Impact
%
HEPS
cents/share
Certainty
%
Increased outloading of grain due to higher consumption and exports 21% (0,18) 80%
Decline in carry-out grain closing inventory 18% (0,15) 65%
Decline in the equipment market size 13% (0,11) 20%
Interest rates negatively impacted on net interest-earning assets 13% (0,11) 90%
Decline in retail activities (Hinterland and KLK) 9% (0,07) 80%
Decline in fuel activities (Hinterland and KLK) 7% (0,06) 75%
Below average hectares planted 7% (0,06) 10%
Delay in commencement of the grain delivery season 4% (0,03) 100%
Decline in wholesale activities (Hinterland) 4% (0,03) 65%
Unexpected movements in rand/dollar exchange rate 4% (0,03) 50%
Fortunately, there are very high prospects for the coming grain harvesting season that will
possibly counteract the impact of Covid-19, as mentioned above. These prospects include,
amongst others:
� A good summer grain harvest;
� An increase in client profitability which will possibly result in a higher level of spending on
equipment and capital goods;
� An increase in clients’ ability to repay their outstanding production and long-term debt;
� A high level of business confidence in the coming planting season;
� The restructuring and reorganisation of the group are currently in process; and
� The implementation of the possible merger with Suidwes.
ACKNOWLEDGEMENTS
The Chairman and Chief Executive Officer acknowledged all stakeholders in their reports and
I can merely confirm what they said.
All honour and glory to our Lord!
CF Kruger
Chief Financial Officer
2 July 2020
Klerksdorp
80 ROOTED IN AGRICULTURE