THE BUSINESS
CREATING VALUE
FOR STAKEHOLDERS
HOW SENWES CREATES VALUE
FOR ITS KEY STAKEHOLDER GROUPS
SHAREHOLDERS AND INVESTORS
BUILDING QUALITY STAKEHOLDER RELATIONSHIPS
To generate sound returns for our shareholders,
through sustainable capital growth and dividends.
Senwes’ approach to stakeholder relationship management consists of serving the various needs
of all stakeholder groups, while prioritising actions and leveraging resources in such a manner as
to ensure a long-term positive impact on the organisation.
The company's shares traded below net as-
set value.
Share trading liquidity was very low.
Shareholders are the principal providers of equity and therefore the owners of
the company. In many instances the shareholders are also clients of the Senwes
group.
Clients
and Customers The relationship with clients and customers is the main reason for the company’s
existence, since clients and customers buy the company’s products and services.
These relationships are also the main source of revenue.
Employees
Business Partners
Skills development and engagement of employees determine Senwes’ ability to
deliver on its commitments, brand promise and overall strategy.
Senwes establishes relationships with various parties by means of joint ventures,
subsidiaries and associates, to expand the group’s geographical footprint and to
bring about critical mass and value synergies to aid in positioning the business for
future growth and long-term sustainability.
To maintain a sound relationship with our local,
provincial and national regulators.
Company’s response to these issues
WHY IS THE RELATIONSHIP IMPORTANT TO SENWES?
Shareholders
and Investors
To be a responsible corporate citizen that is legally
compliant, manages legal risks and maintains ef
fective and efficient company administration pro
cesses, which enable Senwes to operate within the
legislative parameters and to report to regulators
on a continuous basis.
Issues during the year
THE NATURE OF OUR RELATIONSHIP
STAKEHOLDER
GOVERNMENT AND REGULATORS
Issues during the year
Senwes managed to maintain its dividend
payout, despite the drought of the past few
years.
Senwes provided shareholders with a high-
level, transparent and trusted platform for
trading shares.
The fact that shareholders use the shares
in the Senwes group as security at Senwes
Credit, also contributes to the low liquidity.
Company’s response to these issues
Senwes actively participates in discussions
by lending guidance and input to government
structures.
Senwes, through its relationship with the Agri-
cultural Business Chamber, participated in
the amendment of section 25 of the Consti-
tution.
Senwes has monitoring and reporting struc-
tures in place which provides combined as-
surance.
Senwes appointed a dedicated liaison officer
to resolve relevant issues with state-owned
entities.
Implementation of solar panels and the sup-
ply of water in selected rural areas.
Value Creation and Value Unlocking for Shareholders by
Capital and Dividends (cents/share)
Base year = 2009
cents
1 800
1 600
1 400
1 200
1 000
800
600
400
200
-
140
180
175
470
296 344 394 439 484 538 598
350 490 525 600 500 490 550 550
550 550 550 550 550 550 550
2013 2014 2015 2016 2017 2018 2019
235
550 550 550
2010 2011 2012
Cumulative dividend
Capital growth (from base price)
Closing share price (base year)
Suppliers
Relationships with suppliers affect the Senwes group’s ability to cost-effectively
provide products and services, and have a direct impact on Senwes’ compe
titiveness.
Political uncertainty in the agricultural sector.
Land expropriation without compensation.
Extremely challenging regulatory environment.
Deterioration of state-owned entities.
Deterioration of infrastructure and amenities
such as water, electricity and roads.
Tax paid
R’m
140
120
Government
and Regulators
These relationships ensure that the company conducts business which complies
with prevailing legislation, that Senwes reports to regulators and thus mitigates
risks, thereby ensuring the sustainability of the Senwes group.
100
80
60
40
20
Community
28
This relationship promotes the long-term sustainability of the group’s operating
environment and strengthens the socio-economic context of the areas in which
the group conducts business.
SENWES INTEGRATED REPORT 2019
-
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
SENWES INTEGRATED REPORT 2019
29