Vision To be an admired agri-business. Values Integrity Business orientation Innovation Loyalty Accountability Self motivation Turnover Market Capitalisation Total Assets R13,9 billion R1,9 billion R4,0 billion Number of Staff 2 124 Net Profit R307 million Social Development Contribution R2,5 million What we do Senwes is a leading integrated agri-business, positioned in the grain value chain between the farm gate and the processor. Production input products and capital goods are supplied to primarily the grain producer, after which market access for the crops of clients is created. Our financing and logistics services render financial and agricultural value adding services to the client. Business is mainly conducted in the Free State, Northwest, Gauteng, Southern Cape and Northern Cape, as well as internationally in the SADC-region. The Group has an integrated model which facilitates the delivery of its primary objective, namely to contribute towards food safety on a sustainable basis. As initiator of a new way of thinking and new partnerships, the objective is to be at the forefront of internationalisation and diversification of its business model. Senwes also participates in the international trading of wheat, yellow maize and oilseed through a strategic partnership with the international agri-business and food company, Bunge. Senwes deploys 2 124 members of personnel, mostly in rural areas. Primary activities are focused upon central South Africa, the Southern and Northern Cape, as well as internationally in the SADC-region. 4
Senwes as investment LARGEST SILO CAPACITY IN AFRICA Senwes has a silo capacity of 4,6 million tonnes in the SADC-region from which its clients are serviced. PARTNERSHIPS WITH KEY SUPPLIERS Core partnerships are entered into with suppliers of mechanisation, agricultural input products and financial services in order to be the distribution channel of preference for goods and services within agriculture. EXCELLENT CLIENT RELATIONS Senwes has the necessary human capital, logistics solutions, infrastructure and operating capital required to render excellent service to not only the customer, but also the off-taker of products. SKILLS WITHIN AGRICULTURE Competent and skilled personnel with experience, industry leaders, people with integrity, value systems and a successful performance history form the basis of our human capital and are committed to the financial, social and environmental objectives of the Company. Senwes personnel accept joint and several ownership of the business and are accountable to stakeholders. STRATEGIC FOCUS The Senwes strategy is focused on agriculture and related industries, which form a prominent part of the deployment of its 2020 strategy. Senwes has a silo capacity of 4,6 million tonnes in the SADC-region. Senwes personnel accept ownership of the business and accountability to stakeholders. Senwes Integrated Report 2013 Growing valuable partnerships 5
The results A consistent, sound return on capital Above average dividend yields Strong generator of cash with a balanced gearing ratio A balanced client base supported by extensive market share A visionary agricultural company, strategically geared for growth Geographic footprint With 103 years worth of experience, Senwes Limited has played a definitive role in shaping the agricultural landscape. We operate primarily in central South Africa Northwest, Free State, Gauteng, Northern Cape and Southern Cape provinces with our growing footprint spreading internationally to Malawi, Zambia and Mozambique through international joint ventures. Malawi Zambia Mozambique Senwes and its associates business base Senwes offers 103 years worth of experience in the agri-industry. Senwes has established a presence in 3 African countries. 6
Composition Our team consists of 2 124 permanent employees who contribute to the Group s ability to generate R307 million net profit. The current asset base of Senwes amounts to R4 billion and its market capitalisation stands at R1,9 billion. Senwes is a public company and the shares trade on an over-thecounter (OTC) platform. Senwes is committed to transformation in terms of black economic empowerment and is currently a level 8 contributor. We acknowledge that there is room for improvement and will remain committed in this regard. We believe that sustainable agriculture in South Africa and the rest of Africa can be achieved through partnerships with key role players. This will mitigate risks and unlock opportunities that will deliver sustainable value creation for all stakeholders. Our business model Financial services Univision Senwes Credit Insurance Senwes Village Input supplies and mechanisation Producer Senwes Grainlink Storage and marketing of grain Grainovation Logistics Off-takers of grain Product and service offer Input Supply Financial and Technical Services Market Access Services Retail Stores Production input products Gardening equipment Hardware Outdoor and camping Mechanisation Whole goods Spares and workshops Precision farming Production finance Grain finance Asset finance Agricultural technical services Agronomy Soil science Agricultural economics GIS-services Insurance Crop insurance Life insurance Short-term insurance Broker services Grain storage and handling Grain trading: local and international Logistics Electronic silo certificate trading Cross-border trade We follow an integrated business model in the grain value chain. Partnerships within the grain value chain will unlock integration. Senwes Integrated Report 2013 Growing valuable partnerships 7
Group structure and operational overview Senwes Financial Services Visit senwes.co/ir13e-8 for contact details and addresses of Senwes business units. read more Structure Senwes Credit (O) Production credit, monthly accounts and special accounts managed from head office Off-takers and milldoor finance managed from head office Senwes Asset Finance (O) Mortgage bonds and hire purchases managed in conjunction with an asset finance partner Agricultural and technical services (O) 7 offices rendering agricultural and technical advice Univision Group (JV) (50%) Short and long-term insurance, credit life insurance, crop insurance, corporate insurance and broker services Legend: (O) = Operational division, (S) Subsidiary, (A) Associate or (JV) Joint Venture Our business and brands Financing of agricultural input products. Financing of fixed and movable assets for farming purposes. Financing of marketed grain by means of a variety of products. Rendering of agricultural and technical services. Supplying of various tailor-made insurance products to producers, clients and the general public. Rendering of broker and administrative services. Contribution to normal operating profit 16,9% Our positioning Financing link between the agricultural producer and the other operational activities of Senwes. Financing link between the grain off-taker and Senwes Grainlink. Advise the producer on production practices and total input planning. Our strategic objectives The availability of effective and purpose-made financing products to enable the producer and the grain off-taker to manage their businesses in an optimal manner to the advantage of all stakeholders. To render value added insurance products and services to the core activities of Senwes and to support the business at various levels. Geographic presence Univision Senwes Credit HQ Senwes Credit expanded its product range and the asset finance contract was renegotiated. The Univision Group's service area expanded after the formation of the joint venture with NWK. 8
Senwes Village Structure Retail outlets (O) 29 retail outlets Animal health, irrigation, DIY, fencing and steel, animal feed, gardening, weapons and ammunition, outdoors 5 fuel stations 5 convenience stores Input supply (O) Direct products Seed, fertiliser, fuel, pesticides Grasland Ondernemings (Pty) Ltd (JV) (50%) Agricultural lime mine in the Northwest province Oos-Transvaal Kalkverskaffers (Pty) Ltd (S) (99%) Contribution to normal operating profit 40,7% Our positioning Deployment of infrastructure, marketing structures and product ranges in order to service the client in respect of production input and mechanisation requirements. Our strategic objective To fulfil the role of supplier of preference to the agricultural producer in respect of all his input requirements and mechanisation, with excellence. Mechanisation (O) John Deere Agency Whole goods from 23 outlets Spare parts from 28 outlets 14 mechanisation workshops Precision farming JD Implements (Pty) Ltd (JV) (50%) 50% partnership in a John Deere Agency in the Southern Cape - from 5 outlets Brands Geographic presence serve Our business Provision of input products to the agricultural producer. Provision of mechanisation and maintenance services to the agricultural producer, relating to agricultural equipment. Provision of a variety of hardware and convenience products to the general public. Legend: (O) = Operational division, (S) Subsidiary, (A) Associate or (JV) Joint Venture Integrated branches Retail branches only JDI The sustainability of the business unit will increase due to the Afgri transaction. Senwes Village increased its market share in respect of mechanisation as well as retail during 2012/13 Senwes Integrated Report 2013 Growing valuable partnerships 9
Group structure and operational overview (continued) Senwes Grainlink Structure Silo Operations (O) 68 grain silo complexes 3 throughput structures Silo Certs (Pty) Ltd (A) (42.5%) Grain Silo Industry (Pty) Ltd (A) (26%) Grain procurement (O) 22 grain procurement offices Logistics: Grainovation (Pty) Ltd (JV) (50%) Owner of 25 fleet applications Broker services Grain trading (O) 2 trading offices 3 brokers Senwes Graanmakelaars (Pty) Ltd (S) (100%) Bunge Senwes (Pty) Ltd (JV) (50%) Senwes Mauritius Ltd (S) (100%) Bunge Senwes International Ltd (JV) (50%) (the holding company of): Senwes Grainlink Zambia Ltd (100%) Senwes Grainlink de Mocambique LDA (75%) Senwes Grainlink East Africa Ltd (Kenya) (100%) Senwes Ltd (Malawi) (100%) Legend: (O) = Operational division, (S) Subsidiary, (A) Associate or (JV) Joint Venture Contribution to normal operating profit 42,4% Our positioning Logistics, handling, storage, procurement, hedging and marketing positioned between the farm gate and the grain off-taker. Our strategic objective An integrated solution for the producer and grain offtaker to enhance market access and pricing solutions. Geographic presence Zambia Mozambique Malawi Our business and brands Creation of market access for the grain producer. Procurement and trading of grain. Handling and storage of grain. Logistical services for the procurement and distribution of grain. International marketing. International trading office Marketing and trading offices Handling and storage Senwes Grainlink expanded its abilities in international trade via its partner Bunge Senwes. The Africa businesses were sold to Bunge Senwes. 10