INTRODUCTION OVERVIEW THE BUSINESS STRATEGIC & OPERATING CONTEXT REFLECTING ON THE PROGRESS TO DATE ( CONTINUE )
• Senwes Equipment commenced the roll-out of a rental and integrated harvest solution model .
• During the 2021 reporting period Grainovation decided to sell its fleet and change the business model to a brokerage model . In the current reporting period Grainovation further optimised its business model through placing more focus on the inter-group transport requirements of Grainlink rather than a combination of inter-group and external transport . Grainovation ’ s reporting function has been moved to be part of the Grain Market Intelligence & Solution Design division effective from October 2021 .
• The group ’ s significant expansion during the past few years triggered an extensive review of its operational structure and operating segments . The implementation of the envisioned changes in this regard will continue well into the new financial year .
• Numerous corporate support and shared services divisions have been redesigned / restructured and optimised to ensure that they are geared for future challenges .
• During the current financial year , management reorganised the business to be more specialised . The group ’ s operations were reorganised into four main segments with different specialised clusters within each . More information about each segment and cluster can be found in the business overview on page 26 and the report by the CFO on page 80 . The segments and clusters are summarised as follows :
» Financial Services , including the credit and insurance clusters .
» Input Supply including the mechanisation , retail and wholesale clusters .
» Market Access including the grain cluster .
» Processing , Conditioning and Markets , including a manufacturing , meat as well as milling and pet food cluster .
• The group launched a capital allocation project which aims to optimise the group ’ s balance sheet allocation toward increased capacity and optimal returns on capital allocated across the group .
• The group changed its inter group funding structure , and now provides inter-company loans from Senwes to the group ’ s companies through a separate entity .
• The group ’ s Information technology ( IT ) operations were moved into separate companies during the financial year .
UNLOCKING VALUE SYNERGIES Unlocking value synergies focuses primarily on reaping the benefits of shared corporate functions and operational efficiencies across the group .
OBJECTIVES
• Identify the untapped benefits of shared corporate functions and operational efficiencies , by means of co-ordination between business units , joint ventures , corporate support divisions and shared services across the group .
• Unlock the benefits of shared corporate functions and operational efficiencies to the benefit of the Senwes Group .
TOP-OF-MIND RISKS
• Urbanisation , scarcity and retention of skills risk .
• Transition and customer risk .
• Information technology – systems and cyber risk .
• Unique competitor risk .
• Diversification and agricultural industry risk .
For more detail on top-of-mind risks , see p . 87 .
LOOKING AHEAD
There is significant benefit in unlocking value synergies and therefore it makes sense to maintain the constant drive to achieve this . The focus is to ensure that the synergies of shared corporate functions and operational efficiencies are tapped into and utilised fully across the Senwes Group .
54 Reimagine Agriculture