STRATEGIC INTENT |
KEY PERFOR-
MANCE
AREA |
2013/14 KPIS INCLUDE: |
GROUP GOALS |
SPECIFIC OBJECTIVES AND AMBITIONS INCLUDE: |
- Be the leading sugar and downstream products operation in Africa, an increasing global supplier and world-class organisation
- Be the lowest-cost producer in every country in which it operates and among the lowest-cost producers in the world
|
Operational performance |
5% increase in group sugar production
Record production from current installed capacity
Operating margin declined
2.9% to 14.3% |
- Enhance shareholder wealth by optimising long-term returns and growth of the business, as a world-class organisation
- Profitably expand the group’s sugar and cane production
- Evaluate opportunities to invest further in downstream operations, and consider footprint expansion as attractive opportunities arise
|
- Reach production level of
two million tons of sugar by 2017
- Improve overall time efficiency and yields via speed-profiling and lost opportunity analysis
- Establish a Sugar Centre of Excellence and Training Academy
- Extend downstream contribution to the group, possibly via new ethanol and furfural operations
Sugar production (million tons)
|
- Optimise the return on every stick of cane by adding value to its core commodity products: fibre, sugar and molasses. It will focus on its core business and develop material niche operations which add value
- Increase profits in real terms on a sustainable basis and maximise the return on capital employed through cost leadership, the use of innovative technology and the participation of its employees
|
Cost reduction and
revenue growth |
Headline earnings growth of 4.3% to 194.0 cents per share
22% increase in downstream revenue |
- Achieve a competitive rate of return on shareholders’ funds and increase profits on an ongoing basis in real terms
- Maintain a distribution/dividend cover of at least two times
- Manage investments and working capital to achieve efficient usage of funds employed
- Undertake research and development to maximise value added from core products
|
- Embed a culture of continuous improvement across the business, to lead to improved working practices, increased plant optimisation and enhanced operating profit
- Bring operations at recently commissioned distillery at Kilombero to steady state
- Gearing not to exceed 40%, and interest cover to be maintained above five times
|
- Provide a safe working environment for all employees, contractors and stakeholders
|
Safety, health and
environment |
All operations accredited with a minimum Four-star NOSA rating in 2013/14. Both agricultural operations and distilleries in SA received Occupational Health and Safety Management System OHSAS 18000:2007 accreditation |
- Provide a safe working environment for all employees, contractors and stakeholders
|
- Drive to further decrease workplace injuries by focusing on behavioural performance and entrenching further rigid health and safety standards
- Continuous improvement and increased prominence of group safety, environmental and quality performance
|
- Be the market leader, meeting and proactively anticipating customer needs
|
Product quality
and service |
Successful completion of the Pietermaritzburg sugar distribution centre, leading to improved customer service and food grade handling standards |
- Be proactive in identifying the needs of customers
- Consistently deliver quality products and services to customers
|
- Optimise distribution networks to minimise cost to serve
- Move further along value chain, via improved packing capability and sales mix
- Continuous product delivery within specification and on time
|
- Be a moral performance focused organisation that people are proud to work for, where they are challenged to “go the extra mile”, feel they can make a difference and know that good performance is recognised
|
Human resource development |
Employee development spend |
- Promote the ongoing development of all employees so that they reach their maximum level of competence and participate fully to achieve the group’s objectives
- Offer equal opportunity to all employees
|
- Develop desired leadership behaviours through the values-driven leadership initiative
- Continuously improve human resource productivity metrics, including number of employees per thousand tons of sugar produced
- Integrated talent management programme including succession planning at operational and management level
- Provide support and training to encourage development of local employees at all operations
|
- Be welcomed in the communities in which it operates because of what it does, how well it does it and be accepted as a progressive company by all communities; aligning strategies to meet changing circumstances in the various countries in which the group operates
- Be cognisant of the rural locations of the group’s operations and the impact that it has on job creation and poverty alleviation in such areas
|
Sustainability and governance |
90% of energy requirements from renewable resources using own installed capacity
Social benefits to employees and our neighbouring communities amounted to
R268 million
(2013: R197 million) |
- Be socially responsible, and maintain and develop appropriate ethical, environmental and risk management standards as an integral part of the business
- Ensure the company is managed in an efficient, accountable, responsible, transparent and moral manner
- Take cognisance of all stakeholders’ interests in the group’s business
- Maximise usage of bagasse and biomass to generate electricity
|
- Objective to ensure reliable cost-efficient energy supply to our operations and strive for 100% renewable energy use
- Implement Sustainability Policy and Framework
- Compliance with all JSE and King III requirements
|