Senwes Integrated Reports Senwes 2018/2019 Integrated Report (b) | Page 10

OVERVIEW 365-REVIEW QUARTER 1 QUARTER 2 Staalmeester, a diverse equipment business, was successfully acquired on 1 October 2018. Record grain intake with a moisture content of more than the industry acceptable level of 14%. An application was launched to assist Senwes Credit marketers in managing customer interaction. The agri-community celebrated 50 years of Grasland’s existence as a leading provider of agricultural lime and an announcement of a name change to Bastion Lime (“Foundation of growth”) was made. The Business Engineering Department started with wealth services to enrich our farmer clientele ser- vices. A final dividend of 27c per share was paid after ap- QUARTER 3 proval thereof at the annual general meeting held on 22 August 2018. A sucessful second-hand wholegoods online auction was held in September 2018. Senwes launched a headland braai initiative to thank farmers for their continued support during the previous financial year, which reached more than 200 000 people on social media. The 15th Senwes Future Focus Day was held at Nampo Park and was attended by 550 farmers. Nation in Conversation was presented at the first Nampo Cape in Bredasdorp, where five detailed discussions took place. Nampo Cape was attended by 16 425 people. Senwes Graanmakelaars (Pty) Ltd (Graanmakelaars) was formally admitted as a member of the JSE Agricultural Derivatives Market. QUARTER 4 Senwes Seed reflected record results, due to the 100% capacity Tradevantage experienced margin pressure on the milldoor con- 8 tracts, since the availability of grain was restricted due to the late harvest and traders who shortened the market. Senwes Grainlink Silo Operations started with high carry-over stock levels and storage capacity was under pressure. Additional storage capacity of 145 500 tonnes (2,9% of total capacity) was erected at eight silo complexes to accommodate grain producers. The Nation in Conversation TV-series started broadcasting on kykNET and kykNET&Kie. Senwes Equipment undertook a road show in the Eastern Cape, where three new branches, Ugie, Aliwal-North and East London were officially opened for business. A new PDS (Personal Development System) was implemented to improve performance measurement of the group’s human capi- tal. Senwes’ Loyalty Scheme, AgriRewards, allocated R50/tonne for grain deliveries, R5/tonne for grain procurement and 0,75% of interest-bearing transactions for the 2018 financial year. The Graintech project to take in grain at a higher than normal moisture content to accommodate producers in delivering on their grain contracts was implemented for another 15 silos. The project to accelerate grain handling was implemented at Ma- kokskraal silo. Senwes’ CEO, Francois Strydom, was elected as chairman of Agbiz. Farmcities at Ruimsig and Atterbury were closed down in May and June 2018, respectively. Fires destroyed the Hartswater branch and damaged part of the Petrusburg and Bloemfontein silos. These were still under con- struction at year-end. utilisation of their Orkney and Hartswater processing plants. The highest average rainfall over the Senwes area for April, over the past 104 years, was recorded: 188,7mm. The previous record was during the 1942/43 season with 117mm. Hinterland Wholesale took back control of the warehouse manage- The 2018/19 summer season started on a dry note, which meant that the western production area could only plant in January 2019. Senwes Equipment was awarded eight of the top ten po- sitions at the John Deere Technician of the Year awards. Amongst these awards was the third prize for the best John Deere technicians. The Hinterland retail business merged with Prodist, the wholesale business, on 1 December 2018. Senwes and Senwesbel made an offer to KLK shareholders to obtain control of KLK. An interim dividend of 30c per share was paid, after approval thereof at the board meeting held on 5 December 2018. Senwes hosted its annual Christmas party where 584 chil- dren and special needs adults were treated. January 2019 rainfall was only 75% of the normal long-term rainfall but 7,5% more than the January 2018 rainfall. Sen- SENWES INTEGRATED REPORT 2019 wes’ area of operation received 59% of the long-term average summer season rainfall by the end of January. Senwes, through Thobo Trust, launched the Itokiset­ seng Tswelopele vegetable project in Losdoorns in October 2018, in order to create sustainable vegeta- ble gardens to provide adequate and regular supply of vegetables to the community, whilst assisting with enterprise development. Nearly 1,4 hectares of vege- tables have already been planted. Senwes, through Thobo Trust, in partnership with Bastion, launched a vegetable project at Rooi­grond near Buhrmansdrif. T­he WAN-upgrade and roll-out of Unified Communica- tions was initiated, to increase bandwidth by 50 times. Senwes Equipment commenced with the building of a new workshop at Wolmaransstad branch during January 2019. ment on 1 February 2019 and implemented their own warehouse management system. The shareholding in Oos-Transvaal Kalkverskaffers (Pty) Ltd has been restructured to obtain a 30% BEE shareholding in compliance with the Mining Charter III. The social and labour vegetable tunnel project at the Rooi­grond community has been completed and handed over to the commu- nity. The project will allow caretakers of the community to care for disabled members of the community, amongst other bene­ficiaries. The past season produced an estimated maize crop of 12,5 mil- lion tonnes. This created the opportunity to buy stock early in the season at relatively low premiums. Senwes Equipment had a success­ful second-hand stock online auction. Senwes developed an application to enable electronic signing of contracts to be rolled out in the new year, being 2019/20, which includes the electronic signing of commodity contracts. SENWES INTEGRATED REPORT 2019 9