The group’s strategy provides the divisional businesses with guiding principles and direction to enable them to formulate and implement their business plans, in order to achieve challenging performance objectives.
THE GROUP'S STRATEGIC OBJECTIVES
profitable-growth
Profitable revenue
growth

The group aims to grow revenue in a responsible and sustainable manner through mutually beneficial long-term partnerships with strategic customers. Revenue growth will be achieved through expansion of existing operations, products and services, growth in market share and entry into new markets.

solid-returns
Solid returns
on capital employed

Long-term contracts, owning strategic industrial properties and key raw materials, and a continued focus on driving efficiencies sustain the long-term cost structures of the group and support sustainable and improved returns on capital employed.

cashe-generation
Strong cash
generation

Operational strategies are directed towards cash generation and growth is focused towards investment in businesses with consistent strong cash flows.

The group’s performance objectives are realised through five strategic drivers
STRATEGIC DRIVERS
MATERIAL ISSUES
market-leadership
Market leadership

KAP’s businesses are either market leaders or have the ability to be, through market share growth in their specific industry sectors.

Opportunities exist to grow market share and to enter new markets.

high-barriers
High barriers
to entry

The group’s significant experience, scale and specialisation provide a competitive advantage in highly regulated industries. Access to key raw materials, licences to operate, specialist skills and expertise, and benefits derived from economy of scale, contribute to higher barriers to entry.

Regulated industries have high barriers to entry, presenting opportunities for the group to leverage off this competitive advantage.

diversification
Industry
diversification

The group is diversified across various industries, market sectors and its product and/or service mix. This diversity enables the group to manage concentration risk and provides a level of protection to stabilise margins.

Economic and business cyclicality is mitigated through diversification.

adding-value
Adding value
through specialistion

The group is focused on adding value to its customers through the provision of value-added products and services, thereby mitigating some degree of risk against the volume and price pressures inherent in the commodity markets.

Providing specialist services requires significant and continued investment in technology.

african-base
Leveraging
African base

Operations are positioned towards servicing customers in emerging markets, with a specific focus on sub-Saharan African countries. The group leverages its industry knowledge and expertise of African markets to provide a competitive advantage.

Infrastructure development and consumer growth in Africa present an opportunity for business development and growth.

RESULTS OF IMPLEMENTATION
Revenue from continuing operations increased by
R16.2bn
Operating profit from continuing operations increased by 19% to
R2.0bn
Headline earnings per share from continuing operations increased by
18%
Cash generated from operations increased by
44%
Dividend per share increased by
20%
R4.1bn
Safripol acquisition after 30 June 2016°
Revenue (RM)
CAGR* 6%
Operating profit (RM)
CAGR* 15%
HEPS (cents)
CAGR* 19%
° Subject to regulatory approvals * Compound annual growth
ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE FORM BASIS OF SUSTAINABILITY
sustainability
Sustainability

The group regularly reviews and adapts its policies and processes to reinforce its ability to be economically viable, socially responsible and environmentally sound, while still remaining competitive.

soacial-awareness
Social awareness

The group supports the development of the consumer in African countries by contributing to economic growth through its active involvement in infrastructural services and general business in these countries. The group also supports the communities in which it operates through various community development and employment programmes.

transformation
Transformation

The group observes and proactively aligns day-to-day business practices in South Africa with the broad-based black economic empowerment (B-BBEE) codes. Commitment to the principles of B-BBEE, to make it real and tangible for the group and its employees, is a key priority.

skills
Skills and talent
management

Multifunctional skills and experience are required for specialised and diverse employment in each business. Access to skills, actively managing talent and employee retention enhance the group’s ability to provide value and quality products and services at competitive prices.

water
Water and land

Manufacturing processes are dependent on water, which is in scarce supply. The group aims to reduce and manage water usage and protect natural resources and areas of biodiversity

raw-materials
Scarce raw
materials

Raw materials are often scarce and in certain instances subject to commodity and import price fluctuations. Ownership and effective management of raw materials in manufacturing processes secure the long-term supply and pricing thereof.

fuel
Fuel

Significant fuel usage and fluctuations in fuel prices necessitate the management of fuel consumption and cost efficiencies to ensure profitability and competitiveness in the market. Investment in new technology reduces fuel consumption and emissions.

energy
Energy

Energy usage in manufacturing industries influence cost of products and requires optimisation and the evaluation of alternative energy sources to ensure profitability and competitiveness in the market.

waste
Waste

Waste production and cost of waste management in upstream and downstream processes impact profitability. Reducing waste and using recycled materials increases efficiencies and margins on manufactured products.

The group remains focused on managing its long-term sustainability for the benefit of its stakeholders.
Shareholders, investors, financial institutions

…expect the group to achieve sustainable and profitable long-term growth through ethical and responsible business practices.

Customers, suppliers and service providers

…expect the group’s businesses to continuously improve the quality of products and services at a reasonable price, and to deliver on customers’ expectations, in turn promoting supplier relationships.

Governments, regulators, industry bodies, advisory councils and trade unions

…expect the group to operate in accordance with all relevant legislative and regulatory requirements.

Employees and communities

…expect the group to establish transparent, robust and trusted communication and long-term sustainability of the business.

RESULTS OF IMPLEMENTATION

18 995
employees

ISO, NOSA, OHSAS and RTMS systems and accreditations are in place in 80% of Unitrans’ specialist logistics operations and in more than 80% of the group’s manufacturing facilities.

R80.7 million
invested in training

Ongoing
B-BBEE
commitment

42 215 ha of
forested land

CSI projects are focused towards HIV/Aids, education and enterprise development

91.6% black
employees

8.4% white
employees

8% reduction in
total CO2e emissions compared to
previous year

110 000 tonnes of wood fibre residue recycled into energy

Vehicle and chemical waste recycled with certified waste removal agencies

48 684 ha of protected biodiversity land areas

Latest Euro 5
coaches

R10 million estimated cost saving from new thermal energy plant

0% waste to landfill target set at certain manufacturing facilities

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