Firstrand Front Cover/Ifc
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
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. -
For the Six Months Ended 31 December 2020
INTERIM REPORT UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 AND CASH DIVIDEND DECLARATION SALIENT FEATURES Headline earnings per share from continuing operations down by 52.7% Total headline earnings per share down by 67.1% Interim dividend per share 30 cents Intrinsic net asset value per share R161.98 Registration number 1968/006415/06 ISIN ZAE000026480 Share code REM CONTENTS INTRODUCTION 2 GROUP FINANCIAL REVIEW 3 CHANGES TO DIRECTORATE 10 DECLARATION OF CASH DIVIDEND 11 COMPOSITION OF TOTAL HEADLINE EARNINGS 12 COMPOSITION OF INTRINSIC NET ASSET VALUE 13 GROUP FINANCIAL STATEMENTS 14 INFORMATION ON UNLISTED INVESTMENTS 26 DIRECTORATE 30 CORPORATE INFORMATION 30 INTRODUCTION COVID-19 The second wave of Covid-19 in the second half of 2020 hit South Africa harder than expected, bringing with it a new variant with higher infection rates and greater severity of symptoms. This led to the imposition of further lockdown measures in order to slow down the spread of the disease and ease pressure on the healthcare system. All this has had a devastating effect on millions of South Africans with lives and livelihoods being lost, household finances decimated and many going hungry in large parts of the country. The pandemic has lead to the worst unemployment crisis in modern time and consequently, as lives are inevitably linked to livelihoods, a humanitarian disaster. Managing within this crisis continues to be Remgro and its investee companies’ single biggest priority. Remgro’s focus is on the factors within its control, the health and well-being of its people, ensuring that its investments have the most robust financial positions to support business continuity and ensuring that the underlying investee companies that are in a position to offer help to the country, are empowered to do so. -
Results Press Release for the Year Ended 30 June 2019 REMGRO's
Results Press Release for the year ended 30 June 2019 REMGRO’S INVESTMENT PERFORMANCES MIRROR MACROECONOMIC CHALLENGES • Headline earnings per share decreased by 4.2% to 1 449 cents • Headline earnings per share, excluding option remeasurement, decreased by 2.6% to 1 429 cents • Intrinsic net asset value per share decreased by 9.3% from R256.97 at 30 June 2018 to R233.03 at 30 June 2019 • Total dividend per share for the year increased by 6.0% to 564 cents This has been one of Remgro’s more challenging years with the majority of the Group’s investments impacted by fragile economic growth, low business confidence and deteriorating operating environments, especially the investments exposed to the financial health of the consumer and to imports. The banking investments remained resilient through the course of the financial year ended 30 June 2019, contributing 46.2% to Remgro’s headline earnings. For the year to 30 June 2019, headline earnings decreased by 4.4% from R8 573 million to R8 195 million, while headline earnings per share (HEPS) decreased by 4.2% from 1 512.6 cents to 1 448.9 cents. Included in headline earnings for the year under review is a positive fair value adjustment amounting to R112 million (2018: R261 million), relating to the decrease in value of the bondholders’ exchange option of the exchangeable bonds (option remeasurement). Excluding the option remeasurement, headline earnings decreased by 2.8% from R8 312 million to R8 083 million, whereas HEPS decreased by 2.6% from 1 466.5 cents to 1 429.1 cents. -
Investment Reviews
REPORTS TO SHAREHOLDERS INVESTMENT REVIEWS CIV HOLDINGS REMGRO LIMITED / INTEGRATED ANNUAL REPORT 2015 INVESTMENT REVIEWS / REPORTS TO SHAREHOLDERS INVESTING IN INDUSTRIES THAT HAVE A SOLID TRACK RECORD REPORTS TO SHAREHOLDERS / INVESTMENT REVIEWS FOOD, LIQUOR 30 June 30 June 2015 2014 AND HOME CONTRIBUTION TO HEADLINE EARNINGS R million R million CARE Unilever South Africa 331 347 Distell 445 495 RCL Foods 755 (239) TSB* – 192 1 531 795 * Acquired by RCL Foods during January 2014. 25.8% effective interest MAJOR GEOGRAPHIC PRESENCE AFRICA: South Africa, Zimbabwe, Mozambique, Kenya, Nigeria, Zambia Profile Unilever South Africa manufactures and markets an extensive range of food and home and personal care products, while enjoying market leadership in most of its major categories. Well-known brands include Robertsons, Rama, Flora, Lipton, Joko, Sunlight, Omo, Surf, Vaseline and Lux. CORPORATE INFORMATION FINANCIAL HIGHLIGHTS SUSTAINABILITY MEASURES Equity valuation at 30 June 2015 Unilever South Africa is a private CSI/Training spend R33 739 million company and its detailed financial R7.4 million information is not disclosed due to Unlisted Number of employees restrictions on disclosure as agreed 3 401 Chief Executive Officer amongst its shareholders. P Cowan BBBEE status Level 6 Remgro nominated directors J J Durand, J J du Toit Environmental aspect Scope 1 and 2 emissions of Website 146 365 tonnes CO e www.unilever.co.za 2 UNILEVER SOUTH AFRICA HOLDINGS PROPRIETARY Unilever South Africa’s restructuring costs for the twelve months LIMITED (UNILEVER SOUTH AFRICA) under review amounted to R288 million (2014: R225 million) Unilever South Africa has a 31 December year-end, but its driven by investments for the Boksburg Liquid factory and the results for the twelve months to 30 June 2015 have been equity construction of the Ice Cream Factory in order to drive cost accounted in Remgro’s results for the year under review. -
Integrated Report
RMI INTEGRATED REPORT REPORT RMI INTEGRATED 2020 2020 INTEGRATED REPORT ABOUT THIS INTEGRATED REPORT RMI’S ENDURING to create and sustain value for its forecasts but do not represent VALUE CREATION stakeholders, are discussed. an earnings forecast. All forward- Management is not aware of the looking statements are based This integrated report of Rand unavailability of any reliable solely on the views and Merchant Investment Holdings information or any legal considerations of the directors. Limited (RMI) for the year ended prohibitions to disclosing any Those statements have not been 30 June 2020 was prepared for material information. reviewed and reported on by the all its stakeholders. external auditor. This report focuses on reporting The report contains comprehensive material aspects under the control information about RMI’s financial of RMI which can significantly RESPONSIBILITY performance, stakeholders, impact capital resources, financial The board is ultimately responsible governance, material issues, risks performance or could lead to for this report. and opportunities and how these significant reputational damage or influence RMI’s strategy. We show negatively impact RMI’s position The company secretary and how we create value and how we as a responsible corporate citizen. financial manager, Schalk Human will ensure that our value creation MCom (Acc) CA(SA), prepared this is enduring. The group is proud of report; the chief executive officer its heritage, steeped in strong ASSURANCE and financial director, Herman ethics. We therefore also outline Assurance was received from Bosman LLM CFA, supervised how our value creation is RMI’s external auditor, the preparation; and management underpinned by sound and PricewaterhouseCoopers Inc. -
Rmb Holdings Annual Repor T 09 Annual Report 2009
9952 RMBH cov 09 repro:proof 1 2009/10/21 6:38 PM Page a Contact details RMBH OUTsurance 4th Floor, 4 Merchant Place 1241 Embankment Street, Corner Fredman Drive & Rivonia Road, Sandton Zwartkop Ext 7, Centurion PO Box 786273, Sandton, 2146 PO Box 8443, Centurion, 0046 Telephone (011) 282 1010 Telephone (012) 673 3098 Telefax (011) 282 8088 Telefax (012) 673 4598 www.rmbh.co.za www.outsurance.co.za Contact: Anthony Maher Contact: Willem Roos FirstRand RMB Structured Insurance 4th Floor, 4 Merchant Place 4th Floor, 2 Merchant Place ANNUAL REPORT 2009 Corner Fredman Drive & Rivonia Road, Sandton Corner Fredman Drive and Rivonia Road, Sandton PO Box 786273, Sandton, 2146 PO Box 652659, Benmore, 2010 Telephone (011) 282 8052 Telephone (011) 685 7600 Telefax (011) 282 8088 Telefax (011) 784 9858 www.firstrand.co.za Contact: Gustavo Arroyo Contact: Adrian Arnott RMB HOLDINGS ANNUAL REPORT Discovery 155 West Street, Sandton PO Box 786722, Sandton, 2146 Telephone (011) 529 2888 Telefax (011) 529 2958 www.discovery.co.za Contact: Thys Botha www.rmbh.co.za 09 www.rmbh.co.za 9952 RMBH cov 09 repro:proof 1 2009/10/21 6:38 PM Page b Contents 02 Our track record 04 Our structure 06 Executive review 10 Group overview 17 Normalised earnings 18 Historical review 19 Corporate governance report 24 Sustainability report 26 Directorate 31 Annual financial statements 115 Notice of annual general meeting 119 Shareholders’ information 121 Form of proxy 9952 RMBH AR 09 front:Layout 1 2009/10/21 6:56 PM Page 01 ANNUAL REPORT 2009 01 Key outcomes Normalised earnings Dividend Intrinsic value 207,9 cents or R2,5 billion 99 cents or R1,2 billion 2 509 cents or R30,3 billion – down 30% – down 30% – up 7% Where we are RMBH has emerged from the most challenging year in its existence with the robust and established businesses that we have nurtured over the last decade intact. -
Investment Reviews
REPORTS TO SHAREHOLDERS INVESTMENT REVIEWS CIV HOLDINGS INVESTMENT REVIEWS / REPORTS TO SHAREHOLDERS INVESTING IN INDUSTRIES THAT HAVE A SOLID TRACK RECORD REPORTS TO SHAREHOLDERS / INVESTMENT REVIEWS FOOD, LIQUOR 30 June 30 June 2016 2015 AND HOME CONTRIBUTION TO HEADLINE EARNINGS R million R million CARE Unilever 461 331 Distell 499 445 RCL Foods 658 755 1 618 1 531 25.8% MAJOR GEOGRAPHIC PRESENCE effective interest AFRICA: South Africa, Lesotho, Swaziland, Botswana, Namibia PROFILE Unilever manufactures and markets an extensive range of food and home and personal care products, while enjoying market leadership in most of its major categories. Well-known brands include Robertsons, Rama, Flora, Lipton, Joko, Sunlight, Omo, Surf, Vaseline and Lux. CORPORATE INFORMATION FINANCIAL HIGHLIGHTS SUSTAINABILITY MEASURES Equity valuation at 30 June 2016 Unilever is a private company and CSI/Training spend R41 358 million its detailed financial information is R14.64 million not disclosed due to restrictions Number of employees Unlisted on disclosure as agreed among its 3 313 shareholders. Chief Executive Officer BBBEE status P Cowan Non-compliant Remgro nominated directors Environmental aspect W E Bührmann, J J du Toit Scope 1 and 2 emissions of 147 000 tonnes CO e Website 2 www.unilever.co.za UNILEVER SOUTH AFRICA HOLDINGS PROPRIETARY Unilever’s restructuring costs for the 12 months under review LIMITED (UNILEVER) amounted to R83 million (2015: R288 million) driven by Unilever has a 31 December year-end, but its results for the investments for the Food Solutions factory resulting in 12 months to 30 June 2016 have been equity accounted in streamlining of operations and improved efficiencies. -
2016 Firstrand Corporate Governance Report
for the year ended 30 June 2016 corporate governance CORPORATE GOVERNANCE contents CORPORATE GOVERNANCE 01 Corporate governance 07 Board of directors 20 Directors’ affairs and governance committee 24 Remuneration committee 42 Audit committee 46 Risk, capital management and compliance committee 48 Transformation monitoring committee 52 Social and ethics committee 58 Information and technology risk and governance committee 60 FirstRand Foundation 67 Independent assurance report 2016 FIRSTRAND CORPORATE GOVERNANCE REPORT CORPORATE GOVERNANCE FirstRand’s board of directors implements the highest standards of corporate governance at all operations. The board understands and values long-term and ethical client relationships, and has well-established governance processes for ensuring a balance between achieving business growth and meeting expectations of customers, regulators and society as a whole. OBJECTIVE Governance structures and processes are formally reviewed annually and continuously adapted to accommodate internal developments and reflect national and international best practice. The board considers corporate governance to be a priority and endeavours to go beyond compliance, where appropriate. FirstRand’s overarching corporate governance objective is to ensure that an adequate and effective process of corporate governance, which is consistent with the nature, complexity and risk inherent in the group’s on- and off-balance sheet activities and that responds to changes in the group’s environment and conditions, is established and maintained. The above-mentioned objective includes ensuring compliance by the group with all relevant legislation, including but not limited to, the Banks Act, 1990 (Act No. 94 of 1990 – the Act) and the Regulations relating to Banks (the Regulations), compliance with the King Code of Governance Principles for South Africa 2009 (King Code) and any other best practice guidelines deemed appropriate to the effective functioning of the FirstRand group. -
Chief Financial Officer's Report
CHIEF FINANCIAL OFFICER’S REPORT Remgro’s ordinary dividend per share increased by 6.0%. NEVILLE WILLIAMS CHIEF FINANCIAL OFFICER INTRODUCTION South Africa Holdings Proprietary Limited (Unilever) due to its Due to Remgro being an investment holding company, disposal. The decrease is partly offset by the inclusion of Siqalo traditional measurements of performance, such as sales or Foods Proprietary Limited (Siqalo Foods) and a higher contribution gross profit, are not meaningful criteria for evaluating the from the banking platform, as well as higher interest income. Group’s performance. However, management uses “headline earnings“, “intrinsic net asset value“ and “cash at the centre“ COMMENTARY ON REPORTING PLATFORMS’ to evaluate the performance of the Group on a continuous PERFORMANCE basis and hence these concepts are used throughout the BANKING Integrated Annual Report to provide shareholders with a better The headline earnings contribution from the banking platform understanding of our results. amounted to R3 737 million (2018: R3 525 million), representing RESULTS an increase of 6.0%. FirstRand Limited (FirstRand) and RMB Holdings Limited (RMH) reported headline earnings growth of HEADLINE EARNINGS 5.2% and 6.1% respectively. RMH reported higher growth due For the year to 30 June 2019, headline earnings decreased by 4.4% to higher earnings from RMH Property. from R8 573 million to R8 195 million, while headline earnings per On a normalised basis, which excludes certain non-operational share (HEPS) decreased by 4.2% from 1 512.6 cents to 1 448.9 cents. and accounting anomalies, and is a better reflection of Included in headline earnings for the year under review is underlying performance, FirstRand and RMH reported a positive fair value adjustment amounting to R112 million earnings growth of 5.6% and 6.6% respectively. -
Interim Results Press Release for the Six Months Ended 31 December 20191
Interim Results Press Release for the six months ended 31 December 20191 REMGRO’S PORTFOLIO REMAINS RESILIENT Headline earnings per share, excluding option remeasurement, increased by 2.4% to 750.7 cents Headline earnings per share decreased by 0.2% to 750.9 cents Intrinsic net asset value per share increased by 3.4% from R233.03 at 30 June 2019 to R240.93 at 31 December 2019 Interim dividend per share for the period sustained at 215 cents Notwithstanding various macro-economic challenges, Remgro’s portfolio remains resilient. Remgro’s results have been driven largely by improved performances within the Banking, Healthcare and Consumer Goods platforms. For the period under review, headline earnings decreased by 0.4% from R4 259 million to R4 242 million, while headline earnings per share (HEPS) decreased by 0.2% from 752.1 cents to 750.9 cents. Included in headline earnings for the period under review is a positive fair value adjustment amounting to R1 million (2018: R106 million), relating to the decrease in value of the bondholders’ exchange option of the exchangeable bonds (option remeasurement). Excluding the option remeasurement, headline earnings increased by 2.1% from R4 153 million to R4 241 million, whereas HEPS increased by 2.4% from 733.4 cents to 750.7 cents. The increase in headline earnings, excluding option remeasurement, is mainly due to higher earnings from Mediclinic International plc (Mediclinic), Siqalo Foods Proprietary Limited (Siqalo Foods), the banking platform and Total South Africa Proprietary Limited (Total). The increase is partly offset by lower contributions from Community Investment Ventures Holdings Proprietary Limited (CIVH), Rand Merchant Investment Holdings Limited (RMI) and Grindrod Limited (Grindrod), as well as lower interest income. -
15206 1.RMI IAR 2016 Front 1-61 REPRO 5).Indd
ANNUAL INTEGRATED REPORT 2016 SCOPE AND BOUNDARIES OF THIS REPORT SCOPE AND BOUNDARIES OF THIS REPORT ESTABLISHING MATERIALITY We are pleased to present our sixth annual integrated report, We define material issues as those which have the potential to which covers the year ended 30 June 2016. This report is mainly substantially impact our ability to create and sustain value for our aimed at providers of financial capital, being both our current and stakeholders. potential shareholders. In addition, we aim to inform all stakeholders The process we adopted to determine the issues material to our of our ability to create value over time. business and our stakeholders is aligned with our organisational Rand Merchant Investment Holdings Limited (RMI) is a listed decision-making processes and strategies. By applying the investment holding company with various investments in principle of materiality, we determined which issues could influence subsidiaries and associates. RMI consolidates entities where it the decisions, actions and performance of the group. exercises control over the financial and operating policies We describe our most material issues as our key priorities (subsidiaries) and equity accounts entities where it exercises and refer to pages 8 to 19 of this report, in which we significant influence (associates). describe the circumstances in which we operate, the key resources and relationships on which we depend, This report contains comprehensive information on our financial the key risks and opportunities we face and how our key performance, stakeholders, governance, material issues, risks and priorities can affect our ability to create and sustain opportunities and how these influence our strategic objectives. -
Rmb Holdings Annual Repor T 2007 2007 Annual Report
CONTACT DETAILS 2007 ANNUAL REPORT RMBH 4th Floor, 4 Merchant Place Corner Fredman Drive & Rivonia Road, Sandton PO Box 786273, Sandton 2146 Telephone (011) 282 1010 Telefax (011) 282 8088 (www.rmbh.co.za) Contact: Adrian Arnott/Anthony Maher FirstRand 4th Floor, 4 Merchant Place Corner Fredman Drive & Rivonia Road Sandton RMB HOLDINGS ANNUAL REPORT 2007 PO Box 786273, Sandton 2146 Telephone (011) 282 8052 Telefax (011) 282 8088 (www.firstrand.co.za) Contact: Adrian Arnott Glenrand M.I.B 288 Kent Avenue, Ferndale, Randburg PO Box 2544, Randburg 2125 Telephone (011) 329 1111 Telefax (011) 329 1333 (www.glenrandmib.co.za) Contact: Ms E Price OUTsurance 1241 Embankment Street, Zwartkop Ext 7, Centurion PO Box 8443, Centurion 0046 Telephone (012) 673 3098 Telefax (012) 673 4598 (www.outsurance.co.za) Contact: Willem Roos RMB Structured Insurance 4th Floor, 2 Merchant Place Corner Fredman Drive and Rivonia Road, Sandton PO Box 652659 Benmore 2010 Telephone (011) 685 7600 Telefax (011) 784 9858 Contact: Gustavo Arroyo www.rmbh.co.za KEY HIGHLIGHTS NORMALISED EARNINGS +33% to 335,4c or R3,98 billion DIVIDEND +25% to 141,5c or R1,68 billion INTRINSIC VALUE +34% to 3 486c or R41,41 billion CONTENTS 02 OUR STRUCTURE 04 EXECUTIVE REVIEW 10 GROUP OVERVIEW 18 NORMALISED EARNINGS 20 HISTORICAL REVIEW 22 CORPORATE GOVERNANCE 26 DIRECTORATE 31 ANNUAL FINANCIAL STATEMENTS 106 NOTICE OF ANNUAL GENERAL MEETING 110 SHAREHOLDERS’ INFORMATION 113 PROXY After 20 years of exceptional investment, we are poised to activate the future. Gymnast, poised to defy gravity on the rings with fine judgement and perfect balance, and the grace of real strength.