Forward-looking statement

As Africa’s leading sugar and downstream producer, we remain fully committed and on track to maintain our status as a world-class and highly efficient organisation.

This is evidenced by further progress last year with increased sugar and downstream production as well as increased electrical co-generating for export.

There is an increasing demand for sugar in the emerging markets and in Africa, where growth is expected to be about 3.3% annually over the next 15 years. We are building our business on the strength of the growing African demand by realising prospects to expand our existing operations and by seeking out new opportunities. Most recently we completed a large expansion at our Ubombo mill in Swaziland, commissioned a new ethanol plant in Tanzania, and constructed a custom-designed central warehouse in South Africa. We have undertaken detailed assessments across 16 countries in Africa to establish new prospects. In addition to our investigations, there are a number of project opportunities that are currently being explored or developed.

Additionally, we are focused on advancing our capability to drive down costs, thus enhancing efficiencies, as well as delivering products further up the value chain, such as non-crystal sugar products, and the development of our sales mix which includes speciality sugars, fairtrade sugar and retail packs.

We have also further progressed with our ongoing continuous improvement programme, the objectives of which are to improve working practices, increase plant optimisation and reduce costs and waste. There are currently some 200 initiatives in the programme.

Illovo’s long-term sustainability through an integrated business approach is non-negotiable. As part of our social commitment, we will continue to advance the collaboration we have with local communities in the areas where we operate and thus be welcomed by those communities because of what we do.

In the respect of the environment, we will further reduce our greenhouse gas emissions and improve our water management system, relative to which a group water foot-printing exercise was completed in 2013/14, further details of which are incorporated in the Climate Change Report. We seek to retain our inclusion in the JSE’s SRI Index, and our position as one of the “best performers” in the High Environmental Impact category.

Illovo remains fully committed to providing a safe working environment for all employees. Details of our safety statistics may be found in the Human Capital Report.

Illovo’s overall prospects derive from our practical and responsible response to market conditions and opportunities. We remain well positioned to continue leveraging growth through our strong financial position, resilient cash generation and Strategic Intent.