INTRODUCTION OVERVIEW THE BUSINESS STRATEGIC & OPERATING CONTEXT 6 . OUR BUSINESS ENVIRONMENT
• Lower volatility in the group results over the last 5 financial years .
• We established the group at a new and higher returns level (> R 500m profit after tax ).
• We increased our business units from 184 in 2012 to 292 in 2022 .
• Each business unit could diversify and grow its portfolio while derisking its exposure .
• Brand exposure increased substantially .
• Client base exposure is now more diversified in nature , commodity and geography .
• The group ’ s AgriRewards ( loyalty scheme ) allocations are growing and include more of our group entities – further development of the scheme will continue .
• Digital transformation includes the OneAgri customer platform and the Basislink commodity platform .
• Agri Credit Solutions has driven geographic expansion through the integration with Hinterland , Equipment as well as the Suidwes and KLK acquisitions .
• In the last four years the group ’ s current facility limits were increased from R3,5bn to R6,5bn .
• Cell captive creation of certain asset classes .
• Selling of Senwes Seed in Orkney as a non-core asset ( new financial year event ).
• Increased KLK ’ s share in Carpe Diem to 80 %.
• Agri Credit Solutions expanded into the traditional Suidwes and KLK areas .
• Concluded our first European-based operation through the acquisition of three ( 3 ) German John Deere agencies ( new financial year event ).
• Digital transformation to increase internal efficiencies and offer customers a better solution .
• Our capital allocation project redirects our balance sheet allocation and refocuses us on products and services .
• Group restructuring – reorganise , simplify and extract value from the current portfolio .
• Harvest synergies and improve market share and share of wallet from recent acquisitions through integration and reorganisation .
7 . OUR CONTEXT
The timeline below illustrates the outcomes of our strategy , through indicating the group ’ s results vs diversification and expansion events since 2010 .
Profit after tax ( in R ' m )
2010 - 2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
|
• Grainovation JV with Imperial ( Jan ‘ 10 ).
• Increased share in Grasland ( Bastion ) to 50 % with NWK as JV partner ( Jun ’ 10 ).
• JDI with Tomlinson Family ( Aug ’ 11 ).
• Africa expansion ( Zambia , Mozambique , Kenya and Malawi ).
|
• High hectares , average crop .
• Certisure JV with NWK ( May ’ 12 ).
• Bunge / Senwes JV ; sold 50 % of Africa business to Bunge .
|
• High hectares , slightly above-average crop and yields .
• Hinterland retail JV with AFGRI ( effective 1 Jun ’ 13 ).
• Prodist acquired as part of Hinterland JV ( 37,5 %).
• Tradevantage ( 1 Nov ’ 13 ).
|
• Record previous production season .
• Decision to exit the Bunge / Africa business due to under-performance .
• Molemi Sele with NWK and AFGRI .
|
• Average hectares , drought , severe reduction in yields .
• Meadow contract was awarded to Tradevantage .
|
• Late planting , severe reduction in hectares , consecutive drought .
• JCB agency agreement .
• Acquired Agrico ’ s John Deere agencies in Aliwal North , Ugie and George ( 1 Aug ’ 16 ).
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44 Reimagine Agriculture