INTRODUCTION OVERVIEW THE BUSINESS STRATEGIC & OPERATING CONTEXT 9 . OUR DREAM
• The group ’ s desire to serve our clients and to grow the group ’ s portfolio are interlinked .
• Our dream is to further de-risk each business unit by means of product composition , control of cost , stock management , market share , allocation of capital and client base segregation .
• The important drivers of our dream , are : » Grain storage volumes . » John Deere footprint and support . » Bulk commodity house of brands .
» Credit allocations toward financing our turnover .
» Integration of our business units .
» Build on the success of the Basislink platform and OneAgri platform to a fully developed digital platform .
» Consolidation and on-boarding of our German John Deere agencies and to further expand the footprint in Eastern Germany .
» Consider future mergers and acquisitions in the above region .
» Enhance and optimise the current business portfolio .
» Build an even broader leadership structure , more diverse in culture , age , gender and profile which accepts ownership and long-term tenure to secure succession and growth .
» Build and enhance the group ’ s equity reserves , capacity and means to sustain and support its growth plan and trajectory .
» Consider and consolidate the group ’ s shareholding structure to unlock further growth opportunities , future consolidation and diversify its dividend stream .
This dream should enable and facilitate the following :
• Our customer base will always be at the centre of our existence .
• Staff must be able to build careers and attain a decent standard of living .
• Development of the communities we operate in through job creation , investments and social enhancement .
• Business partners , input providers and our support structures should be able to grow and establish their businesses through their relationship with the group .
• Our governance structures must guide and underpin our dream .
• As a consequence of all the above , shareholders should receive a fair and equitable return – not only in financial terms !
10 . OUTLOOK AND CLOSING REMARKS The year ahead looks favourable with good soil moisture levels , good commodity prices and the basis of two years of very favourable financial results for our customers . The warning signs of rising inflation , interest rates and input costs can and should not be ignored – tougher times lie ahead and debt levels should now be addressed very seriously .
The South African infrastructure , high levels of criminality , state capture and endemic non-accountability of leaders , low employment levels and the collapsing of state-owned enterprises ( SOEs ) are in no way sustainable . Capital has choice and the youth are mobile . If we grasp the opportunity and radically transform our country , there is no better place to be !
I would like to thank each Board member , Exco member and employee for his / her dedication and personal ownership .
May the grace of God remain with us all . Thank you .
Francois Strydom Senwes Group CEO 6 July 2022 Klerksdorp
46 Reimagine Agriculture