1 Working Paper 11/2017 Growth and Strategies of Large and Leading
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
Remgro at a Glance
OVERVIEW I II CONTENTS 2 14 Group profi le Remgro's values 4 16 Remgro's unlisted investments Directorate and ownership structure Originally established in the 1940s by 6 20 A strong family legacy Tomorrow matters the late Dr Anton Rupert, Remgro aims to be the trusted investment company 8 23 Investment strategy Doing business ethically of choice that consistently creates 10 24 sustainable stakeholder value. Remgro's approach to capital allocation Consolidated results at year-end 12 26 Remgro’s profi t at holding company level Investment portfolio analysis 1 GROUP PROFILE DIVERSIFIED CONSUMER FINANCIAL PORTFOLIO SOCIAL IMPACT HEALTHCARE INFRASTRUCTURE INDUSTRIAL INVESTMENT MEDIA Our interests PRODUCTS SERVICES INVESTMENTS INVESTMENTS VEHICLES consist mainly of investments (2) in the following industries 44.6% 77.1% 30.6% 54.7% 50.0% 36.3% 32.3% 4.0% 50.0% (3) (1) 31.8% 44.1% 23.3% 24.9% 28.1% 0.1% 100% (3) 100% 22.8% 100% 44.1% 100% Equity accounted investment Subsidiary Investment at fair value through other comprehensive income 30.0% 37.7% 100% Listed entity Number of Remgro nominated director/s; alternates excluded (3) infrastructure fund (1) Voting rights in Distell equal 56.4%. (2) Voting rights in Blue Bulls equal 36.7%. 33% 16.2% (3) Limited Partners in Pembani Remgro, Milestone Capital and Prescient – therefore limited (or no) voting rights. 2 3 REMGRO’S INDUSTRIAL INFRASTRUCTURE Why does UNLISTED PGSI holds an interest in PG Group Remgro invest Holdings, South Africa’s leading infrastructure fund INVESTMENTS integrated fl at glass business. in certain CIVH’s key operating PRIF is a fund Air Products produces oxygen, companies are Dark focused on private nitrogen, argon, hydrogen and carbon sectors? CONSUMER PRODUCTS Fibre Africa and Vumatel, sector investment in dioxide for sale to major industrial which construct and own infrastructure across users. -
Copyright Notice
COPYRIGHT NOTICE Please note: The material contained in this document can be used ONLY forpersonal study/research and therefore can be copied but only forpersonal use. Any form of copying for distribution purposes requires copyright permission from author/university. UNIVERSITY OF NATAL AN EXPLORATORY STUDY TO DETERMINE IF THE VENTURE CAPITAL SCHEMES FRAMEWORK CAN BE INTRODUCED TO SOUTH AFRICA RAJENDRAN GOVENDER University of Natal Graduate School of Business Master of Business Administration Supervisor Pro£ Abhijit Bhattacharya Topic An exploratory study to determine if the Venture Capital Schemes Framework can be introduced to South Africa Student Rajendran Govender Student No. 201 506209 Date 15 September 2003 DECLARAnON "1, Rajendran Govender, hereby declare that: • the work in this report is my own original work, • all sources used or referred to have been documented and recognised, • this report has not been previously submitted in full or partial fulfilment of the requirements for an equivalent, or higher qualification at any other educational institution. " . ... -----------------------------~ ~ . 096662 Rajendran Govender September 2003 • f..:.; ' II ACKNOWLEDGEMENTS I would like to thank my supervisor, Professor Abhijit Bhattacharya for his assistance, time and guidance in completing this dissertation. I would also like to thank Mr. Raj Sewnarain and Mr. Jay Soma of Business Partners Limited (East Fund - Durban), for taking time out oftheir busy schedules and assisting with the discussion / interview component of the research design. ill ABSTRACT The South African government has indicated that the National Small Business Act of 1996 had failed to get the small business sector working successfully as engine for growth. Thus, government policy measures, using an institutional network alone, to create a thriving SME economy, has not succeeded. -
Restructuring of the Rembrandt Group Circular to Shareholders and Notices of Annual General Meetings 30 August 2000
Rembrandt Group Limited Rembrandt Controlling Investments Limited Technical Investment Corporation Limited Technical and Industrial Investments Limited Restructuring of the Rembrandt Group Circular to shareholders and notices of annual general meetings 30 August 2000 Attorneys Joint sponsoring brokers Deutsche Bank Securities Deutsche Bank Securities (SA) (Pty) Ltd Hofmeyr Herbstein & Gihwala Inc. (Registration number 1995/011798/07) Reporting accountants PricewaterhouseCoopers Inc. Chartered Accountants (SA) Registered Accountants and Auditors (Registration no 1998/012055/21) Indien u ’n Afrikaanse vertaling van hierdie dokument wil hê, skakel asseblief 0800 996 164 If you have any questions regarding the restructuring of the Rembrandt Group, call the Information Agents on 0800 996 164 (or + 44 20 7335 7278 if you are phoning from outside South Africa) are acting as Information Agents to answer your questions about the restructuring. Corporate information Directors of Rembrandt Group Limited (Registration number 1948/031037/06) Johann Rupert (Chairman) P J Erasmus* E de la H Hertzog (Co-Deputy Chairman) D M Falck M H Visser (Co-Deputy Chairman and Managing Director) J Malherbe P E Beyers E Molobi* W E Bührmann J A Preller G D de Jager* P G Steyn* J W Dreyer T van Wyk * non-executive Directors of Rembrandt Controlling Investments Limited (Registration number 1952/000002/06) Johann Rupert (Chairman) D M Falck E de la H Hertzog (Co-Deputy Chairman) J Malherbe M H Visser (Co-Deputy Chairman and Managing Director) E Molobi* P E Beyers J A -
Integrated Annual Report 2019 2019 INTEGRATED ANNUAL REPORT Website At
Remgro Limited | Integrated Annual Report 2019 2019 INTEGRATED ANNUAL REPORT CREATING SHAREHOLDER VALUE SINCE 1948 Originally established in the 1940s by the late Dr Anton Rupert, Remgro’s investment portfolio has evolved substantially and currently includes more than 30 investee companies. MORE INFORMATION This Integrated Annual Report is published as part of a set of reports in respect of the financial year ended 30 June 2019, all of which are available on the Company’s website at www.remgro.com. INVESTOR TOOLS Cross-reference to relevant sections within this report Download from our website: www.remgro.com View more information on our website: www.remgro.com CONTENTS www.remgro.com | Remgro Limited | Integrated Annual Report 2019 1 OVERVIEW 1OF BUSINESS 4 REMGRO’S APPROACH TO REPORTING 7 SALIENT FEATURES 8 GROUP PROFILE REPORTS TO 10 COMPANY HISTORY SHAREHOLDERS 12 OUR BUSINESS MODEL 2 24 CHAIRMAN’S REPORT 14 UNDERSTANDING THE BUSINESS OF AN INVESTMENT HOLDING COMPANY 25 CHIEF EXECUTIVE OFFICER’S REPORT 16 KEY OBJECTIVES AND 32 CHIEF FINANCIAL OFFICER’S REPORT PRINCIPAL INTEGRATED RISKS 40 INVESTMENT REVIEWS 18 DIRECTORATE AND MEMBERS OF COMMITTEES 20 EXECUTIVE MANAGEMENT STRUCTURE 21 SHAREHOLDERS’ DIARY AND COMPANY INFORMATION FINANCIAL 4 REPORT 118 AUDIT AND RISK COMMITTEE REPORT GOVERNANCE AND 121 REPORT OF THE BOARD OF DIRECTORS SUSTAINABILITY 126 REPORT OF THE INDEPENDENT AUDITOR 3 127 SUMMARY FINANCIAL STATEMENTS 66 CORPORATE GOVERNANCE REPORT 79 RISK AND OPPORTUNITIES MANAGEMENT REPORT 86 REMUNERATION REPORT 104 SOCIAL AND ETHICS COMMITTEE REPORT 106 ABRIDGED SUSTAINABLE DEVELOPMENT REPORT ADDITIONAL 5 INFORMATION 146 FIVE-YEAR REVIEW AND SHARE STATISTICS 148 SHAREHOLDERS’ INFORMATION 151 NOTICE TO SHAREHOLDERS ATTACHED FORM OF PROXY Remgro invests in businesses that can deliver superior earnings, cash flow generation and dividends over the long term. -
SAVCA KPMG Private Equity Survey 2004
SAVCA Southern African Venture Capital and KPMG AND SAVCA Private Equity and Venture Capital Survey – 2003 KPMG CORPORATE FINANCE The GIBS & SAVCA Foundation Programme for Venture Capital and Private Equity. Consider it your first major investment. The Gordon Institute of Business Science, together with the Southern African Venture Capital and Private Equity Association, have partnered to create The Foundation Programme, a three day course from 1-3 June 2004. This programme will provide a strategic overview of the Venture Capital and Private Equity industry and processes, as well as a working knowledge of key analytical tools used by practitioners and insights into practical challenges and strategic opportunities in the industry. The 3-year partnership between GIBS and SAVCA will include the hosting of: G An annual 3-day Foundation Programme G An annual 1-day Advanced Programme G A number of GIBS Forum events highlighting topical industry issues which have an impact on practitioners. For more information on these programmes visit www.gibs.co.za/savca or to reserve your seat contact Maritsa Botha on 011 771 4317, or email at [email protected]. But don’t wait too long. An investment this profitable doesn’t come around every day SAVCA sponsors KPMG and SAVCA Private Equity and Venture Capital Survey – 2003 KPMG and SAVCA 1 Contents Highlights 3 Glossary 4 Foreword 5 Sources Of Information 6 Introduction to Private Equity 7 Funds Under Management 9 Fund Raising Activity 13 Investment Activity 16 Exits 21 Performance 23 Black Economic Empowerment -
K P M G a N D S a V C a Private Equity and Venture Capital Survey – 2002
KPMG AND SAVCA Private Equity and Venture Capital Survey – 2002 KPMG CORPORATE FINANCE SAVCA – WBS Foundation Programme for Practitioners In Venture Capital and Private Equity VCPE 7-9 May 2003 University of the Witwatersrand 2 St David’s Place, PARKTOWN, Johannesburg 2193 Programme Booking and Administration: Anne Badcock Tel: (011) 717-3573 Fax (011) 643-2336 e-mail: [email protected] WBS Website: www.wits.ac.za/wbs KPMG and SAVCA Private Equity and Venture Capital Survey – 2002 Highlights I South Africa’s private equity industry boasts R40,6 billion in funds under management I R8,7 billion in undrawn commitments available for future investments I Investment spending by private equity firms up 63% from 2001 to R3,9 billion in 2002 I Fourth consecutive year of decreased fund raising with R800 million in new commitments raised during 2002 Private Equity and Venture Capital Survey – 2002 3 Contents Glossary 4 Foreword 5 Sources of information 6 Introduction to private equity 7 Funds under management and commitments 9 Investments 17 Exits 21 Performance 22 Black Economic Empowerment 24 References and footnotes 26 Glossary IRR – Internal Rate of Return. BEE – Black Economic Empowerment. BVCA – British Venture Capital Association. EVCA – European Private Equity & Venture Capital Association. Follow on investments – Investments into companies where first round funding has already been made. Gross IRR – IRR before the deduction of management fees and carried interest. Gross realised IRR – Gross IRR on the total realised portfolio of investments. Draw down – A draw down or capital call occurs when third party investors (called limited partners in the US) provide cash to a private equity fund for investment into a portfolio company. -
IOB Evaluations
IOB Evaluation | no. 324 IOB Evaluation | no. The economic and social infrastructure of many least developed countries is severely inadequate or even non-existent. One reason for this is the difficulty in obtaining long-term capital for IOB Evaluation investment in infrastructure. That is why the Dutch Minister for Development Cooperation established the Least Developed Countries (LDC) Infrastructure Fund in 2002. The Fund, which is managed by the Netherlands Development Finance Company (FMO), aims to stimulate private investment in infrastructure in LDCs. This report presents the results of an evaluation of the Fund’s first five years. Investing in infrastructure Policy and Operations Evaluation Department | IOB Evaluations | no. 324 | July 2009 | Policy and Operations Evaluation Department | IOB Evaluations | no. 324 | July 2009 Policy and Operations Evaluation Department | IOB Evaluations | no. 324 | July 2009 | Policy and Operations Evaluation Department | IOB Evaluations | no. 324 | July 2009 | EvaluationEvidence of the fromLDC Infrastructure developing Fund countries Investing in infrastructure Published by: Ministry of Foreign Affairs of the Netherlands P.O.Box 20061 | 2500 eb The Hague | The Netherlands www.minbuza.nl © Ministry of Foreign Affairs of the Netherlands | July 2009 | OSDR/6642/E AbuDhabiAbujaAccraAddisAbebaAlgiersAlmatyAmmanAnkaraAntwerpenAsmaraAstanaAtheneBagdadBamakoBangkokBarcelonaBeiroetBelgradoBerlijnBernBoedapestBoekarestBogotáBrasiliaBratislavaBrusselBuenosAiresBujumburaCairoCanberraCaracasChicagoColomboCotonouDakarDamascusDarEsSalaamDenHaagDhakaDohaDublinDüsseldorfFrankfurt/MainGenèveGuangzhouGuatemalaHamburgHanoiHarareHavanna -
1 Working Paper 11/2017 GROWTH and STRATEGIES of LARGE, LEAD FIRMS
Working Paper 11/2017 GROWTH AND STRATEGIES OF LARGE, LEAD FIRMS - REMGRO LIMITED COMPANY ASSESSMENT Pamela Mondliwa, Nicholas Nhundu, Anthea Paelo, Mmamoletji Thosago and Thando Vilakazi Centre for Competition, Regulation and Economic Development, University of Johannesburg [email protected]; [email protected]; [email protected]; [email protected]; [email protected] Abstract The orientation and investment strategies of large firms are at the heart of how countries develop and industrialize. In South Africa, big businesses are now highly internationalised and the investments of lead firms can shape patterns of industrial development and subsequently its ability to embark on an inclusive, labour-absorptive growth trajectory. For industrial policy to be effective there is a critical need to understand the investment trends, strategies and decision-making of large firms, as the policy levers designed to influence the firms’ decisions are unlikely to be effective in the absence of such an understanding. This study focuses on analysing the behaviour and strategies of Remgro Limited over the period 2010 – 2015 as a case study for developing a system for tracking the behaviour of large, lead and dynamic firms across the economy, and abroad. The company is chosen as a large conglomerate group (controlled by the Rupert family) with substantial long-term investments held across several sectors in the South African economy, and abroad. The study uses publically available information from annual reports and announcements to assess whether investments made are largely local or abroad, in which sectors investments are focused and possible reasons why, the interaction of the company with government policies including BBBEE, and how influence exerted over investee companies, including through strategic board members and profit retention, can affect investment outcomes. -
Investment Reviews Investing in Sectors That Have a Solid Track Record
The purpose behind Remgro’s investments is to ensure superior returns to shareholders by way of sustainable dividend and capital growth. INVESTMENT INVESTMENT REVIEWS INVESTING IN SECTORS THAT HAVE A SOLID TRACK RECORD BANKING HEALTHCARE CONSUMER PRODUCTS INSURANCE INDUSTRIAL INFRASTRUCTURE MEDIA AND SPORT OTHER INVESTMENTS 42 REPORTS TO SHAREHOLDERS | Investment reviews BANKING 29% CONTRIBUTION TO 30 June 2019 30 June 2018 HEADLINE EARNINGS R million R million BANKING 2019 RMH 2 644 2 486 FirstRand 1 093 1 039 71% 3 737 3 525 RMH FirstRand PROFILE RMH is the biggest shareholder in FirstRand Limited (FirstRand), South Africa’s 28.2% largest banking group, with a 34% stake. RMH is the founding shareholder of EFFECTIVE FirstRand and views this as its core asset. On a selective basis, RMH invests in INTEREST other banking and property businesses. CORPORATE INFORMATION FINANCIAL HIGHLIGHTS SUSTAINABILITY MEASURES Market cap at 30 June 2019 Year ended Refer to FirstRand as RMH is an R119 148 million 30 June 2019 investment holding company. R million % Listed on the JSE Limited Chief Executive Officer Headline earnings 9 390 6 H L Bosman Normalised Remgro nominated directors earnings 9 394 7 J J Durand, F Knoetze (alternate) Dividends Website declared per rmh-online.co.za share (cents) 376 7 RMB HOLDINGS LIMITED (RMH) RMH’s main asset is a fully diluted interest of 34% in FirstRand, and its performance is therefore primarily related to that of FirstRand. The RMH strategy also includes investments in the property sector with a long-term capital growth focus. RMH’s contribution to Remgro’s headline earnings for the year under review increased to R2 644 million (2018: R2 486 million) due to the good operational performance of FirstRand. -
Directorate and Members of Committees
OVERVIEW OF BUSINESS DIRECTORATE AND MEMBERS OF COMMITTEES NON-EXECUTIVE DIRECTORS J P RUPERT (66) E DE LA H HERTZOG (66) J MALHERBE (60) APPOINTED: 18 August 2000 APPOINTED: 18 August 2000 APPOINTED: 11 October 2006 CHAIRMAN DEPUTY CHAIRMAN DEPUTY CHAIRMAN Directorships: Mr Rupert is the Chairman Directorships: Non-executive Directorships: Compagnie of Compagnie Financière Richemont SA Chairman of Mediclinic International Financière Richemont SA and Reinet and the Chairman of Reinet Investments plc. He obtained a Master of Medicine Investments Manager SA. He qualified Manager SA, the management company degree, a Fellowship of the Faculty of as a Chartered Accountant and of Reinet Investments S.C.A. He studied Anaesthesiologists and a PhD worked with a predecessor firm of economics and company law at the (honoris causa). He is a past Chairman PricewaterhouseCoopers before joining Stellenbosch University and has had an of the Council of Stellenbosch University Rand Merchant Bank Limited in 1985. extensive career in international business, and has served as non-executive He joined the Rembrandt Group banking and finance. After working for Deputy Chairman of Remgro since in 1990 and was appointed as Chase Manhattan Bank and Lazard June 2005. non-executive Co-Deputy Chairman Frères in New York he founded Rand of Remgro in November 2014. Merchant Bank Limited in 1979. In 1985 he joined the Rembrandt Group. He holds honorary doctorates in Law, Economics and Commerce, is the Chancellor of the Stellenbosch University and Chairman of the Peace Parks Foundation. INDEPENDENT NON-EXECUTIVE DIRECTORS S E N DE BRUYN SEBOTSA (44) G T FERREIRA (68) P K HARRIS (66) N P MAGEZA (61) APPOINTED: 16 March 2015 APPOINTED: 4 November 2009 APPOINTED: 28 November 2001 APPOINTED: 4 November 2009 Directorships: Co-founder of Identity LEAD INDEPENDENT DIRECTOR Directorships: Non-executive Director Directorships: Previously the Chief Capital Partners Proprietary Limited in of FirstRand Limited, FirstRand Bank Operations Officer of the Absa Group. -
Sustainable Development Report 1
2019 SUSTAINABLE DEVELOPMENT REPORT 1 www.remgro.com SUSTAINABLE DEVELOPMENT REPORT SUSTAINABILITY HIGHLIGHTS SUCCESSFUL PARTICIPATION IN THE FTSE/JSE RESPONSIBLE INVESTMENT INDEX “Our true power CONTINUED does not lie in our PARTICIPATION IN THE CARBON sameness, but in DISCLOSURE our rich diversity: PROJECT (CDP) diversity of fauna and flora; people CONTINUED MEMBERSHIP OF THE and cultures.” ETHICS INSTITUTE – Dr Anton Rupert OF SOUTH AFRICA OBTAINING OUR LEVEL 7 CONTRIBUTOR STATUS IN TERMS OF THE BBBEE SCORECARD www.remgro.com | Remgro Limited | Sustainable Development Report 2019 2 INTRODUCTION provides a better understanding of Remgro’s efforts on the Remgro’s value system incorporates the guidelines for doing social and environmental front in order to achieve its key business successfully drawn up by its founder, Dr Rupert, nearly objectives of maximising value creation over the short, medium 60 years ago. These guidelines include the following: and long term; while doing business ethically. Refer to the sustainability highlights on the previous page for Remgro’s • – because it lasts the longest Honesty external recognition and achievements during the reporting • Correctness – because it creates trust with friends period in this regard. and opponents • Courtesy – which means dignity without pride and EXTERNAL ASSURANCE friendliness without subservience We acknowledge the increasing requirements from investors • Service – in every respect to your client, your fellow human and regulatory and other guidelines, such as the King IV Report being, your country on Corporate Governance for South Africa (2016) (King IV) and the integrated reporting guidelines, for the external assurance • Mutual support – so that you push others up the ladder of of selected non-financial information. -
REMGRO* IS an INVESTMENT HOLDING COMPANY * Or the Company
OVERVIEW OF BUSINESS GROUP PROFILE OUR BUSINESS Originally established in the 1940s by the late Dr Anton Rupert as a tobacco manufacturer, Remgro’s investment portfolio has evolved substantially and currently includes more than 30 investee companies. The Company is listed on the Johannesburg Securities Exchange (JSE) operated by the JSE Limited in South Africa under the “Industrials – Diversified Industrials” sector, with the share code “REM”. REMGRO* IS AN INVESTMENT HOLDING COMPANY * or the Company Our interests consist FOOD, LIQUOR AND HOME CARE Page 34 mainly of investments BANKING Page 37 in the following industries: HEALTHCARE Page 39 INSURANCE Page 41 INDUSTRIAL Page 42 INFRASTRUCTURE Page 47 MEDIA AND SPORT Page 51 4 WWW.REMGRO.COM OVERVIEW OF BUSINESS GROUP STRUCTURE AT 30 JUNE 2016 REMGRO LIMITED (PRINCIPAL INVESTMENTS – EQUITY INTEREST HELD) FOOD, LIQUOR AND HOME CARE 25.8% Unilever 30.9% Distell 77.3% RCL Foods BANKING 28.2% RMBH 3.9% FirstRand HEALTHCARE 44.6% Mediclinic INSURANCE 30.3% RMI Holdings INDUSTRIAL 50.0% Air Products 34.9% Kagiso Tiso Holdings 24.9% Total 37.7% PGSI 100% Wispeco INFRASTRUCTURE 23.1% Grindrod 50.9% CIV group 30.0% SEACOM MEDIA AND SPORT 32.3% eMedia 50.0% Premier Team Holdings (Saracens) 50.0% Blue Bulls 24.9% Western Province Rugby 100% Stellenbosch Academy of Sport OTHER INVESTMENTS 42.8% Business Partners TREASURY AND MANAGEMENT SERVICES 100% Millennia Jersey – Jersey 100% Remgro Finance Corporation 100% Remgro Healthcare Holdings 100% Remgro International – Jersey 100% Remgro Jersey GBP – Jersey 100% Remgro Management Services Percentages represent the effective interests held. Annexures A and B in the Financial Report provide further information of subsidiary companies and investments.