STRATEGIC AND OPERATING CONTEXT
HOW ARE WE GETTING THERE?
STRATEGIC FOCUS AREAS
GROUP STRATEGY
1 2
Diversification,
horizontal
integration and
consolidation Internal
integration of
the customer
3
Reorganisation of
business models
4 5 6
Unlocking value
synergies Increased
investment in
efficiencies in the
value chain Externalisation
Strategic focus area
WHERE ARE WE GOING?
1
STRATEGIC FOCUS AND OBJECTIVES
It is Senwes’ strategic objective to be an integrated agri-business and a significant role player in the food value chain. The strategy is
therefore focused on growth and diversification through consolidation and integration within the agricultural and food value chain.
The strategy aims to create sustainable value for all stakeholders and to become a preferred investment partner, employer, supplier
and distribution channel, as well as a good corporate citizen.
STRATEGIC EVOLUTION
Senwes’ strategy evolution highlights how the different aspects of the business can be seen at this point in time, but also
indicates how each of these aspects are projected to transform in the future.
Where are we?
Where are we going?
Integrated input solution and rural services
linked to agri-advice.
Agricultural retail business.
Senwes Credit: Integrated solution in agri-market.
Local agri-focused insurance solution.
Improved products with a national footprint for
customers and business-to-business solutions.
Integrated and stand-alone credit.
Fully integrated national financial services company.
Grain trading business, mostly deployed in the
traditional area of operation.
Storage solution, mostly deployed to service the
producer/customer.
Equipment solutions for our customer base.
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National soft commodity trading business.
Storage solutions, integrated with logistics and
finance, to deliver an end-to-end service.
Equipment solutions to a bigger market share
nationally, as well as to new markets.
SENWES INTEGRATED REPORT 2019
DIVERSIFICATION, HORIZONTAL INTEGRATION
AND CONSOLIDATION
Optimisation and improvement of current products and ser
vices, operational efficiencies, corporate and other support
services, as well as operational restructuring.
Objectives
Diversification and/or expansion by means of anyone or a combi-
nation of the following:
– products and services;
– operational activities;
– resources/commodities,
– client base;
– infrastructure;
– market segment;
Geographic diversification and/or expansion within the borders of
South Africa;
Diversification and/or consolidation by means of mergers and/or
acquisitions, as well as generic local expansion.
Top of mind risks
Weather and climate risk;
Market size and market share risk;
Credit, liquidity and market risk;
Urbanisation, scarcity and retention of skills;
Transition and customer risk;
Diversification and agricultural industry risk; and
Unique competitor risk.
For more detail on top of mind risks, see p. 53
Looking ahead
Further upscaling through consolidation and new market expan-
sion, will bring about critical mass as well as synergies which will
position the business for growth and long-term sustainability;
Growing Senwes’ geographic footprint;
Expansion and/or optimisation of current product and service of-
fering;
Continued market share drive;
De-risking into other commodities; and
Continued capital investment in the optimisation and/or upgrading
of current infrastructure.
Reflecting on progress to date
• ESC (Electronic Silo Certificates) was established with
AFGRI as partner to create an efficient and secure
electronic silo certificate management system.
• Certisure was established with NWK as partner to
consolidate the financial services group in order to
create a more sustainable platform for expansion into
other markets.
• JD Implemente was established with the Tomlinson
family as partner and resulted in the expansion of the
John Deere agency to the Eastern and Western Cape.
• Hinterland, with AFGRI as partner, led to the esta
blishment of an agricultural retail leader.
• Bastion Lime, established with NWK as partner, aided
in expanding capacity in the lime industry and the ac-
quisition of a larger share in this business.
• Expansion into new geographic areas by Senwes
Credit.
• Agrico acquisition – as part of Agrico effectively dissol
ving its John Deere agency, Senwes Equipment ac-
quired two of its branches (Aliwal-North and Ugie). JD
Implemente simultaneously acquired Agrico George.
• Senwes Equipment expanded into the Eastern Cape
by means of setting up a new branch in East London.
• Senwes Equipment became an official distributor of
the JCB product range.
• Market Access achieved success with its greenfields
procurement project in the adjacent areas. In terms of
this project, tonnes are procured from regions outside
Senwes’ traditional service area by means of a logis-
tics solution offered to the customer.
• Structured finance was added to Senwes Credit’s
product offering. Structured finance will focus on the
clients’ holistic business needs (entire business fo-
cus).
• Effective from 1 October 2018, Senwes expanded its
agricultural equipment product range with the acqui-
sition of the majority stake (75%) in Staalmeester.
• Senwes and Senwesbel jointly acquired a 57,44%
shareholding in KLK Landbou from its shareholders
after year-end, obtaining control of KLK Landbou.
SENWES INTEGRATED REPORT 2019
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