THE BUSINESS
VALUE-CREATING BUSINESS MODEL
PERFORMANCE
Net profit after tax (R'm)
2019
283
EXTERNAL ENVIRONMENT
9,0%
Return on opening equity (%)
2018 2019
311 13,0
GOVERNANCE
FINANCIAL
The pool of available funds Senwes
uses to achieve its strategy.
M
AN
CE
SIN
U
B
FUTU
RE O
UT
LO
ITIES AND
ACTIV
OU
TP
ESS
2019
295
OK
2019
FIN
Employees are Senwes’ key
stakeholders.
For more detail see p. 14
2019
5 751
2019
2019
2019
1,6
2019
RISKS
8 Diversification and agricultural industry 1 Diversification, horizontal integration
and consolidation
9 Unique competitor risk 2 Internal integration of the customer
3 Reorganisation of business models
4 Unlocking value synergies
5 Increased investment in efficiencies
in the value chain
6 Externalisation
risk
4 Credit, liquidity and market risk 11
5 Commodity price risk 12
6 Urbanisation, scarcity and retention of 13
1,3
5,6%
2018
6 094
19,8%
2018
9,1
0,4%
128,6%
24,1%
R829 m ......................................
Community
24% ............................................
Regulation and compliance risk
Systems risk
Theft and fraud risk
Environment, health and safety risk
For more detail see p. 53
SENWES INTEGRATED REPORT 2019
For more detail see p. 41
Business Partners
The cost of investments amounted to:
R383 m ......................................
2018
Community spending increased from the
prior year:
Suppliers
249
2018
0,7
The group’s payments to its suppliers
amounted to:
R1 550 m ...................................
Government and
Regulators
The group’s tax expense for the year:
2018
29
R115 m .....................................
For more detail see p. 6
STRATEGIC FOCUS AREAS
10
Employees
The group’s salaries (including JVs) during
the year:
Loyalty scheme expense (R’m)
22
3 Market size and market share risk
4,7% ...........................................
141
Total corporate social social investment
spending (R’m)
IAL
TER
tion and currency risk
Clients and Customers
2018
0%
The group increased its financing book with:
2018
Total training costs (R’m)
248
TOP MATERIAL RISKS
2 Political uncertainty – land expropria-
R99 m ........................................
Head office water consumption (kl)
For more detail see p. 20
1 Weather and climate risk
327
Average cost per employee
(including JVs) (R’000)
MA
Senwes strives to be a responsible and
accountable corporate citizen, taking into
account its stakeholders, the environment
and the community.
1,3
7,3
ST
R
SOCIAL AND
RELATIONSHIP
48,9%
2019
SENWES
GROUP
T A
HUMAN
9,8%
The group paid dividends to the amount of:
2018
Head office electricity consumption (GWh)
P
TO
The group’s investment in the right
skills and systems.
VICES
SER
L
IA
INTELLECTUAL
210
The land, water and energy Senwes
uses to generate income.
Shareholders and
Investors
New investment in property, plant and
equipment (R’m)
UT
S
NATURAL
11,0
STAKEHOLDERS
Normalised headline earnings (R’m)
MARK
E
The property, plant and equipment
Senwes uses to deliver its services
and products.
2018
5,5%
KEY HIGHLIGHTS
PE
MANUFACTURING
14
5,5
15,7
OUTCOMES
OUR CAPITALS
7 Transition and customer risk
2019
2018
2,7%
For more detail see p. 6
INPUTS
skills
Total shareholders return (%)
For more detail see p. 28
FUTURE OUTLOOK
Business
The recently acquired Staalmeester
will ensure a wider product offering.
The 2020 season is at risk due to late
plan
ting and a lower hectare value
than expected. Focus will therefore
be placed on cost saving, improved
margins and discerning application of
operating capital.
For more detail see p. 12
Economic
Strategy
We will continue to focus the role we play within the food
value chain. The input supply, market access and financial
services channels will still form the core aspects of our
strate
gy where we strategically consider three key princi-
ples: does this create value, capacity or enhance the cultu
ral fit? A conservative financial approach will be maintained,
whilst enabling consistent investment in our extensive asset
base, diversification through differentiated commodities and
exceptional technical services which will sustain the business
through volatile business cycles.
For more detail see p. 36
SENWES INTEGRATED REPORT 2019
Prospects for the future remain challenging in
the macro agricultural environment. Should com-
modity prices remain low, further pressure will be
placed on the spending ability of customers. High
carry-over stock levels at the beginning of the
new season will bring opportunities and momen-
tum, but the farmer’s profitability remains under
pressure, due to increased debt levels, drought
impacting the area planted and yields with the re-
sultant effect of limited production output growth.
For more detail see p. 46
15