Senwes Integrated Report 2022 | Page 12

QUARTER 1 :

365-REVIEW

INTRODUCTION OVERVIEW THE BUSINESS STRATEGIC & OPERATING CONTEXT

QUARTER 1 :

1 MAY 2021 – 31 JULY 2021
1 . Senwes established a new company , SS Siloco , to acquire the divestiture assets as required by the Competition Tribunal as part of the Senwes / Suidwes merger conditions .
2 . Roll-out of Protection of Personal Information Act , 2013 ( POPIA ) Compliance Programme .
3 . Restructuring of Agrinet and Hinterland SA ( Prodist ) and merging them into one entity effective from 1 May 2021 , Hinterland SA t / a Agrinet .
4 . KLK upgraded the Upington Build-It store , launched KLK Credit in collaboration with Senwes ' Agri Credit Solutions and opened the Kathu Pet World .
5 . The Industrial Development Corporation ( IDC ) subscribed to 49 % shareholding in Pelelani while Bastion Lime owns the remaining 51 %. The focus of this entity will be to investigate industrial lime opportunities to optimise the utilisation of the lime resources .
6 . JD Implemente ( JDI ) recovered lost market share , especially in its non-traditional area .
7 . Senwes experienced capacity constraints at certain silos as the intake increased by more than expected .
8 . Hinterland entered the Mpumalanga and Eastern Free State areas through integrated geographic expansion with Agri Credit Solutions . Synergies between Agri Credit Solutions and Hinterland led to the first Hinterland relationship managers being appointed in those regions . These relationship managers are shared by Hinterland and Agri Credit Solutions and facilitate credit applications as well as marketing of direct inputs to producers .
9 . Hinterland finalised and implemented cost-saving initiatives to ensure profit improvement .
10 . Falcon designed and released its locally built haymaker ( F60-350V ) to the market .
11 . Falcon designed and released two slashers ( GS 180 and GS 120 ) and one haymaker ( GH 120 ), for and on behalf of Staalmeester , who added these implements to its product offering .
12 . Senwes acquired the remaining 50 % shareholding of the insurance business , SENWK Group , including Certisure and Univision Broker Services ( UBS ), from NWK , effective from 1 May 2021 , which allows for greater strategic integration within the Senwes Group .
13 . In most regions grain on the fields dried off earlier than normal which resulted in early grain deliveries and early settlement of production credit accounts . Agri Credit Solutions ’ total book was therefore , on average , slightly lower than the corresponding period in the 2021 financial year .
14 . Unprecedented high intake of soil samples at NviroTek Laboratories during May 2021 kicked off the soil preparation season which commenced earlier than usual . This , in conjunction with high incidences of Covid-19- related absenteeism , caused capacity constraints at the laboratories .
15 . Agrinet ' s service outlet was revamped , improved and placed under new management .
16 . Senwes Equipment entered into the second phase of the planter project . The project consists of the development of a new planter to replace the John Deere FX planter . During the first quarter , the amendments to the conventional planter were completed .
17 . Senwes Equipment implemented the Construction and Forestry contract with John Deere , and negotiations with sub-dealers in the Northern Cape and Namibia took place .

12 Reimagine Agriculture