KEEP MONEY MOVING. CONTENTS Our business at a glance 2 • Our story 3 • Group CEO’s review 12 • Our business environment 16 Our strategic priorities 19 • Key strategic themes 20 • Company scorecard 2019–2020 21 • Overall performance on the company scorecard for 2018–2019 22 Our people – the anchors to the delivery of our strategy 24 • People First - A fresh approach to culture and leadership 27 • Enabling a stable labour climate 31 • Business preparedness for potential strike and protest action 33 • Essential Services application 34 Operations Review - We keep money moving 35 • Operations review 36 • Highlights on the delivery of the ATM and CIT strategies 41 • Highlights on the delivery of the cash-processing strategy 43 Keeping money moving while keeping it safe 45 • Citizens Against Transit Cash Heists (CATCH) 50 • Our Fallen heroes 51 • Business Continuity Management for the Cash Industry 53 Future proofing our technology environment 54 • Establishing Enterprise Architecture Capabilities 57 Our responsibility to society 58 • Playing our part in promoting responsible environmental practices 66 Our presence in Africa 68 Cashlogix 70 SBV SERVICES BUSINESS REVIEW 2019 1 OUR BUSINESS AT A GLANCE KEEP MONEY MOVING. SBV SERVICES BUSINESS REVIEW 2019 OUR STORY We are in the business of keeping physical We are a provider of essential cash services Mirriam, Baker, Johannesburg Charmaine, Fuel Station Manager, Rustenburg cash flowing, adhering to quality standards, to the economy for the secure movement and ensuring that people are safe, managing processing of cash and are uniquely equipped systemic risk and, most importantly, adding with the resources required to transport high- value to the banks we serve. Value to society, risk consignments and to process significantly to over 7 000 employees and to our partners high volumes. To ensure that our operations with a vested interest in the cash-services are flawlessly executed and that the day- sector. With a history spanning more than to-day cash operations of the banks as well three decades, we have ensured that the as the cash requirements for the business Aunty Kathy, Take-Away Shop Owner, Cape Town Allen, Entrepreneur, Johannesburg cash supply chain runs smoothly for the environment are taken care of, we use the greater good of our economy and for all our latest technology to count and process cash in stakeholders. Together, as an organisation, we one of our 33 centres in South Africa, Lesotho work collaboratively with our partners to make and Namibia. Our cash carrying fleet of over the industry safer and to serve the challenging 600 armoured vehicles and our cash-in-transit and continuously changing cash supply chain. teams ensure that cash gets where it needs to be, on time, and with the least possible risk. We are the only company in South Africa that partners with the South African Reserve We are a company that recognises that our key Petrus, Taxi Business Owner, Pietermaritzburg Phungela, Kiosk Owner, Mthatha Bank to collect all new banknotes and coins differentiator, our people, are at the heart of for distribution. We work closely with our our strategy. Our business philosophy is to co- four shareholding banks and customers - create a sustainable company together with THE PEOPLE THAT Absa Group Limited, First National Bank, the our employees and our shareholders, to never POWER THE NATION. Standard Bank of South Africa Limited and stop evolving and to continuously strive to be Nedbank Limited - to service the needs of all industry leading in all aspects of our business. banks in South Africa and the neighbouring We’ve found inspiring stories of businesses across South Africa. Whether big, small, informal or formal, what they all have in common countries. is the cash that powers them. We are proud to be the team that keeps this cash in motion. Keep Money Moving. SBV - Business Review A4.indd 1 2019/10/30 09:33 SBV SERVICES BUSINESS REVIEW 2019 3 SBV FACT SHEET C oc per ear verage T R19 Flee v armoured fleet R11 1 100 per ear Stor Le uy average R20 1 N f N f A employ servic v S frica per 11 000 000 N f employ S N 2 0 Leso 900 entr d-party S centr v Footprint Unlimited per th esotho 33 entres SBV SERVICES BUSINESS REVIEW 2019 4 SBV SERVICES (PTY) LIMITED GROUP STRUCTURE A Na bsa irst tiona F l B a n k 25% 25% Ned Stan b da an r k d B a n k O f S 25% 25% o u t h A f r i c a SBV (PROPRIETARY) LIMITED 100% 100% 80% 80% 100% Carrick Properties SBV Services Security Unlimited SBV Lesotho Cashlogix (Pty) Limited Namibia (Pty) Limited (Pty) Limited (Pty) Limited (Pty) Limited SBV SERVICES BUSINESS REVIEW 2019 5 SBV EXECUTIVE STRUCTURE MARK BARRETT GROUP CEO DAVID LITTLE HAMILTON MELANE DEREK SINGH PIETER STEYN RAVINA REDDY CHIEF COMMERCIAL CHIEF OPERATIONS GROUP EXECUTIVE CA (SA) EXECUTIVE HR & OFFICER OFFICER RISK, COMPLIANCE GROUP FINANCIAL CORPORATE RELATIONS & INFRASTRUCTURE DIRECTOR SBV SERVICES BUSINESS REVIEW 2019 6 SBV’S FOOTPRINT LIMPOPO NAMIBIA - Burgersfort - Louis Trichardt - Ongwediva - Polokwane - Windhoek MPUMALANGA GAUTENG - Nelspruit - Bedford Centre SMCR - Emalahleni NORTH WEST - Kempton Park - Mall of Africa SMCR - Midrand - Klerksdorp - Ormonde - Mahikeng - Pretoria - Rustenburg - Vaal KWA-ZULU NATAL LESOTHO FREE STATE - Durban NORTHERN CAPE - Maseru - Newcastle - Bloemfontein - Pietermaritzburg - Bethlehem - Port Shepstone - Kimberley - Welkom - Richards Bay - Riverhorse EASTERN CAPE - East London - Mthatha WESTERN CAPE - Port Elizabeth - Cape Town - George SBV SERVICES BUSINESS REVIEW 2019 7 OUR BUSINESS MODEL How we enable seamless cash supply across the value chain. OUR VISION. To lead, inspire and channel the passion of our people to keep money safe and ensure that it never stops moving for our customers, our communities and the broader economies we serve. OUR MISSION. As your trusted bank-owned cash partner, we help key stakeholders to manage systemic risk in the financial system through effective, innovative management practices. The difference we make to our stakeholders lies in the hands of our people. People we value, enable and protect. They drive us to: • Embrace a culture of operational excellence in storing, processing and moving cash. • Work with our customers to build cost-efficient, high-quality and innovative solutions that create value and respond to evolving business needs. • Better the lives of the communities we serve through employee involvement, environmental respect and the advancement of new and renewable technologies. AS PART OF THE SBV FAMILY, YOU DON’T JUST MAKE THE DIFFERENCE. YOU FEEL IT. SBV SERVICES BUSINESS REVIEW 2019 8 OUR BUSINESS MODEL Inputs Business Activities and Outputs FINANCIAL CAPITAL SOUTH AFRICAN RESERVE BANK (SARB) • A professional risk and compliance team works with the authorities to mitigate CIT crime and to apprehend suspects • Four shareholding banks • We distribute bulk cash for the SARB involved in these crimes • Ensure the quality of cash in circulation and the implementation • We make substantial investments in infrastructure, technology HUMAN AND INTELLECTUAL CAPITAL of legislative requirements and vehicles to ensure the safety of our people, and our • Achieve efficiencies in the recycling of cash customers’ assets • More than 7 000 skilled professionals • Facilitate cash and note fitness sorting, hence providing the • We manage and mitigate systemic risks associated with cash • Specialised teams SARB with sustained longevity, quality of cash in circulation and availability • Strategic teams increasing our competitiveness and relevance the reusability of notes • We play a key strategic role in the business continuity • Focus on achieving transformation targets • We are the only service provider in South Africa awarded management for the cash industry custodianship of the SARB’s Notes Held to Order vault. We serve • We maintain high standards in the training of cash professionals MANUFACTURED CAPITAL as an intermediary for the SARB that facilitates the storage, for SBV and the industry packing and distribution of bulk-cash orders from the banks • IT infrastructure and systems • Cash-processing equipment BANKS Outcomes • Footprint - infrastructure of 33 cash centres, support Business A office, IT hub and disaster recovery sites • We provide the infrastructure, equipment, technology, • The effective operation of our business supports the cash supply • Fleet of more than 1 000 vehicles human resources, business intelligence, risk strategy and chain, ensures that we maintain and sustain the integrity of the • Stakeholder relationship management transportation to enable cash availability for the banks SARB and the banks and ultimately drive economic activity • Utilities • Facilitate orders and clearances and pack payroll and float through cash availability orders for the banks’ retail clients • Provider of essential services that enable a healthy financial RELATIONSHIP CAPITAL • Process wholesale cash for the banks, including note sorting ecosystem through the supply of cash and packing • Mitigating and managing systemic risk associated with cash • Employees, clients, industry partners and • Retail cash processing for the banks’ clients availability stakeholders • Optimise the cost of cash for the banks through MIS capability • Business continuity for the cash industry • Strategic relationships with the SARB, the banks, regulatory automated cash-deposit-processing methodology, auto • Create shareholder value authorities, and all stakeholders with a vested interest in the reconciliation