Suidwes Jaarverslag 2019 - Afr en Eng

JAARVERSLAG ANNUAL REPORT

Na 110 Jaar steeds die boer se Landbouvennoot Still the farmer's agricultural partner after 110 years

Inhoudsopgawe Contents 4 5 ----------------------------- ----------------------------- Suidwes Groepstruktuur Meer oor Suidwes Suidwes Group Structure About Suidwes 6 8 ----------------------------- ----------------------------- Voorsittersverslag Besturende Chairperson's Report Direkteursverslag Managing Director's Report 16 17 ----------------------------- ----------------------------- Uitvoerende Komitee Executive Committee Vyf-Jaar Finansiële Oorsig Five Year Financial Review 19 27 ----------------------------- ----------------------------- Finansiële Jaarstate Raad van Direkteure Board of Directors Annual Financial Statements

SUIDWES GROEPSTRUKTUUR SUIDWES GROUP STRUCTURE Kimama 9,92% 89,36% Individuele produ- Investments 53 sente B-aandele/ (Edms) Bpk A-aandele/ Individual producers (Pty) Ltd A Shares B Shares 0,72% Beherend (RF) (Edms) Bpk/ Katleho Holdings (RF) Properties Investment Company (Edms) Bpk/ (Edms) Bpk A-aandele/ (Pty) Ltd (Pty) Ltd (Pty) Ltd A Shares 100% 100% Individuele produ- Beleggings (Edms) Bpk/ Landbou (Edms) Bpk/ sente C-aandele/ Investments (Pty) Ltd Agriculture (Pty)Ltd Individual producers 100% C Shares (100%) Suidwesfin (Edms) Bpk/(Pty) Ltd Bpk/ (60%) Africum AgriPet (Edms) Bpk/(Pty) Ltd (100%) Suidwes-Makelary (Edms) Bpk/(Pty) Ltd Ltd (51%) Supreme Petfood (Edms) Bpk/(Pty) Ltd (100%) Terratek International (Edms) Bpk/(Pty) Ltd (51%) PE-BEE Agri (Protek) (Edms) Bpk/(Pty) Ltd (100%) Africum Mills (Edms) Bpk/(Pty) Ltd 4 (51%) Agrifriend Namibia (Edms) Bpk/(Pty) Ltd (100%) Raddix Group (Edms) Bpk/(Pty) Ltd (51%) Agrifriend Technology (Edms) Bpk/(Pty) Ltd (51%) Agrifriend Commodities (Edms) Bpk/(Pty) Ltd (99.9%) Agrifriend Equipment (Edms) Bpk/(Pty) Ltd (99%) Africum Commodities (Edms) Bpk/(Pty) Ltd (83.75%) Agrinet (Edms) Bpk/(Pty) Ltd (49%) Suidwes IT-Oplossings (Edms) Bpk/ Suidwes IT Solutions (Pty) Ltd (80%) NviroTek Laboratories (Edms) Bpk/(Pty) Ltd (100%) Wynland Laboratorium (49%) Suidwes IT-Oplossings II (Edms) Bpk/ (Edms) Bpk/(Pty) Ltd Suidwes IT Solutions II (Pty) Ltd (85%) Network Embedded Technologies (34.90%) Botselo Mills (Edms) Bpk/(Pty) Ltd (Edms) Bpk/(Pty) Ltd

Meer oor Suidwes About Suidwes Visie Vision By Suidwes skep ons welvaart en waarde vir ons Suidwes creates wealth and value for members, lede, kliënte en personeel deur die toepassing customers and staff by applying and expanding en uitbreiding van ons unieke besigheidsmodel, our unique business model on local, national op plaaslik, nasionale en internasionale vlak. and international level. Missie Mission Suidwes belê in die landbouwaardeketting, verskaf Suidwes invests in the agricultural value toepaslike landbou produksie-insette, dienste en chain, provides and integrates appropriate marktoegang op ’n geïntegreerde wyse en is in agricultural production inputs, services and vennootskap met produsente. Met uitstekende market access, and forms a partnership with kliëntediens en dinamiese, innoverende personeel producers. Excellent customer services and word waarde vir kliënte toegevoeg en ’n opbrengs dynamic, innovative staff add value and thus vir aandeelhouers gewaarborg. guarantee a return for shareholders. Ons Waardes Our Values Lojaliteit: 'n Sterk gevoel van ondersteuning Loyalty: A strong sense of support and en getrouheid aan die gemeenskap. loyalty to the community. Integriteit: Die kwaliteit van eerlikheid en Integrity: A character of honesty and strong sterk morele beginsels. Ons vorm moral principles. Together we form saam 'n eenheid. a unity. Toewyding: Met groot entoesiasme en uit Devotion: Enthusiastically, and for the love liefde vir ons gemeenskap, staan of our community, we faithfully ons u getrou deur dik en dun by. stand by you through fair and foul. Eienaarskap: Ons het die verantwoordelikheid Ownership: We have the responsibility to om hande te vat met ons gemeen- take hands with our community, skap en so saam eienaarskap te thus taking ownership together. neem. 5

VOORSITTERSVERSLAG CHAIRPERSON’S REPORT MNR/MR. JJ VILJOEN Vir Suidwes sal die 2018/2019-finansiële jaar onthou The 2018/2019 financial year will be remembered by word vir sy R267,58m na belasting verlies. Dit sal egter Suidwes as the year with a R267,58m loss after tax. It ook onthou word as ’n regmaak en skoonmaak jaar. will also be remembered as the year for self-reflection, identification of inherent shortcomings and clean-up. Dit is vir geen besigheidsleier lekker om te rapporteer oor verliese nie. Afsonderlik gesien, het die verliese in die It is not a pleasant task for any business leader to report onderskeie afdelings en divisies oorsake wat verduidelik kan on losses. Individually seen, losses in various departments word. Gesamentlik gesien, verteenwoordig die afsonderlike and divisions all have certain causes which can be explained. verliese ’n perfekte storm en is daar onderliggend tendense Collectively seen, the individual losses represent a perfect wat oor tyd ontwikkel het. storm with underlying tendencies that developed over a period of time. Die landboutoestande van die laaste ses jaar het die groot- ste impak gehad. Die eerste drie jaar het ondergemiddelde The agricultural conditions of the past six years had the produksieseisoene opgelewer, opgevolg deur ’n rekord- biggest impact. The first three years yielded below-average droogte en daarna ’n jaar waarin dit laat gereën het, goeie production seasons, followed by a record drought. There- opbrengste verkry is, maar pryse laag was. Die afgelope after the rain came late – produce was good, but prices produksieseisoen het weereens uitdagings gebied met were low. This production season brought forward chal- swakker grade wat gelewer is, omdat daar laat geplant is. lenges again – lower grades were produced because of Die toedrag van sake het veroorsaak dat oorlaatskuld jaar- the late planting of crops. This was the reason that carry- op-jaar toegeneem het, debiteure se balansstate vol ge- over dept increased year after year, debtors’ balance sheets word het en al meer druk ontstaan het. Bykomend hiertoe became full and pressure became more intense. In addition het die waarde van sekuriteit toenemend onder druk gekom to this, the value of security was under strain due to political as gevolg van politieke uitsprake rondom onteiening sonder statements concerning expropriation without compensa- vergoeding en swakker ekonomiese omstandighede. tion, as well as economic conditions worsening. Marges wat deur die Graandivisie gemaak word, is ook toe- Margins of the Grain division were under pressure due to nemend onder druk as gevolg van groter mededinging. Een increased competition. One of the symptoms of this type van die simptome van die mededinging is dat graan al nat- of competition is that, in order to procure the grain, the ter ingeneem is, net om dit te bekom, wat weer sy eie risiko’s competition and Suidwes were prepared to procure grain meegebring het. Die Graandivisie se vaste koste is hoog as with higher moisture levels than usual, which caused gevolg van investerings wat oor tyd gemaak is in bunkers en additional risks. The fixed costs of the Grain division are addisionele depots om graan op strategiese punte te ontvang. high because of investments made in bunkers and additional depots at strategic places. Die investering in Agrifriend het heeltemal ander resultate gelewer as wat aanvanklik verwag is. Die gevolg hiervan Investment in Agrifriend yielded different results than was dat ’n besluit geneem is om heeltemal uit die Noord- expected and as consequence a decision was made to totally en Oos-Kaap te onttrek. withdraw from the Northern and Eastern Cape. Die Handelsdivisie het steeds verliese gemaak wat ’n gevolg is Retail still experienced losses as a result of low turnover, van lae omsette as gevolg van die swakker ekonomie en land- mainly due to a weaker economy and agricultural con- boutoestande, hoë voorraadvlakke, voorsienings op voorraad, ditions, high stock levels, provisions on stock, high fixed hoë vaste kostes as gevolg van verbeterings en lae marges. costs due to improvements made and low margins. Suidwes’ other subsidiaries (Protek, Agrinet, NviroTek and Raddix) performed well overall. This confirms the board`s de- cision to diversify and creates a foundation for further growth. 6

Suidwes se ander filiale (Protek, Agrinet, NviroTek en Raddix) To summarise the loss, it can be said that it is due to het oor die algemeen baie goed gevaar. Dit bevestig die weaker agricultural conditions than in other areas, debtors direksie se besluit om te diversifiseer in hierdie rigtings en who could not meet their financial obligations as a result skep ’n basis vir verdere groei. of these conditions, sub-optimal investments which increased fixed costs and an incentive scheme that was Opgesom is die verlies ’n gevolg van swakker landboutoe- only focused on short-term benefits. Faults in the new stande as in ander gebiede, debiteure wat as ’n gevolg hiervan system also led to client frustration. nie hulle verpligtinge kon nakom nie, suboptimale investerings wat vaste kostes verhoog het en ’n insentiefskema wat Although this loss has a very negative effect on Suidwes, bestuur oor tyd laat fokus het op korttermynvoordele. Stel- the company remains liquid and solvent and action plans selfoute het voorts tot frustrasie by kliënte gelei. to turn the company around have already been put in place. The poor performance resulted in all negative Alhoewel die verlies Suidwes ’n gevoelige slag toedien, is die inherent problems being identified. These problems are maatskappy steeds likied en solvent en is die regte aksies in currently being attended to one by one. The first results plek gesit om die besigheid te draai. Die swak prestasie het of the new financial year already show a positive change. veroorsaak dat al die inherente probleme geïdentifiseer is en dit een vir een reggemaak kan word. Die eerste resultate vir While the abovementioned challenges are addressed, die nuwe finansiële jaar dui reeds op ’n positiewe verandering. Suidwes is still involved and committed to his members and the community. Suidwes’ commitment to good service Terwyl bogenoemde uitdagings aangespreek word, bly delivery is confirmed by the changes that are currently Suidwes se betrokkenheid en verbondenheid tot sy lede made to the structure, systems and staff. It is a lengthy en gemeenskap belangrik. Suidwes se verbintenis tot goeie process, but it is evident in the new culture which is prevail- diens word bevestig deur die veranderinge wat gemaak is ing. The staff are passionate, focused on service delivery aan strukture, stelsels en personeel. Dit is ’n lang proses, and takes ownership of their duties and responsibilities. maar dit is duidelik dat ’n nuwe kultuur besig is om inslag This is the reason that this aspect enjoys a lot of attention. te vind. Personeel se meelewing, diensingesteldheid en die eienaarskap wat hulle neem, verskaf die grondslag Optimal functioning of management and the board of vir ’n suksesvolle besigheid. Daarom word daar juis aan directors, the flow of information and correct and effective hierdie aspek baie aandag geskenk. decision making are currently paramount for the strategic direction and overall control of the company. There were Die optimale funksionering van bestuur en die direksie, quite a few changes made, which is mainly reflected in the vloei van inligting en korrekte en effektiewe besluitneming, new management. is kardinaal vir die strategiese rigting en oorhoofse beheer van die besigheid. Hier is baie veranderinge gemaak wat Discipline, preciseness and control need to be applied in veral gereflekteer word in die hoofsaaklik nuwe bestuur. full for a company to be successful. The addition of an internal audit and risk management department confirms Ten einde suksesvol te wees, moet dissipline, noulettendheid en the board of directors’ and management’s devotion to this. beheer in sy volle konsekwensie toegepas word. Die toevoeging van ’n afdeling vir Interne Oudit en Risikobestuur bevestig die Over and above the services that Suidwes provide, R356m direksie en bestuur se toewyding tot hierdie aspek. worth of Incentive Rebates, share buy-backs and divi- dends to members were disbursed since 2013. Suidwes Bo en behalwe die dienste wat Suidwes lewer, is daar sedert as an agricultural business is important. The board of 2013 R356m se Aansporingskorting, aandele teruggekoop en directors and management took the first few steps to dividende aan lede toegestaan. Suidwes as landboubesigheid turn Suidwes around and are devoted to achieve a goal- is belangrik. Die direksie en bestuur het die eerste paar treë directed and successful future, where Suidwes can pull gegee om Suidwes om te draai en is toegewyd besig om die its weight as the farmer’s partner. Included in the above, volgende treë te gee na ’n doelgerigte en suksesvolle toekoms, are discussions with various agri-businesses in respect of waar Suidwes sy plek sal volstaan as die boer se vennoot. possible amalgamation. Gesprekke met ander landbou besighede oor 'n moontlike amalgamasie is deel hiervan. After a year filled with difficult challenges and changes, I want to thank our staff and members for your support and Na ’n jaar vol moeilike uitdagings en veranderinge wil ek for still believing in our company. A new foundation has ons personeel en lede bedank vir hulle ondersteuning en been established to steer the company into the future. I dat hulle bly glo in ons besigheid. ’n Nuwe basis is geskep am still positive and excited about agriculture, and espe- om die besigheid vorentoe te projekteer. Ek bly positief op- cially about the future of Suidwes. gewonde oor landbou en veral Suidwes se toekoms. JJ Viljoen JJ Viljoen Voorsitter van die Suidwes Beherend Direksie Chairperson of the board of directors Suidwes Holdings 7

BESTURENDE DIREKTEURSVERSLAG MANAGING DIRECTOR'S REPORT DR. HD VAN SCHALKWYK INLEIDING INTRODUCTION Die aanloop tot, asook die onlangse verkiesing van The run-up to, as well as the election of the govern- die regerende party se nuwe leierskorps, het baie ing party’s leadership, caused much turbulence and onstuimighede en verdeeldheid in die Suid-Afrikaanse division in the South African political landscape. The politieke landskap veroorsaak. Gevolglik is die sakevertroue result thereof is that business confidence is being nega- in die land negatief geraak en het dit baie wipplank gery. tively influenced, fluctuating all the time. The uncertainty Die onsekerheid in die plaaslike politieke- en regerings- in the local, political and governmental policies, which beleid, wat grondonteiening sonder vergoeding insluit, includes expropriation without compensation, also causes skep ook baie onsekerheid in die landbou-omgewing. Op many uncertainties in the agricultural environment. On inter- internasionale vlak het sake ook nie so stabiel verloop national level things have not been as stable as the business as wat die sakesektor gehoop het nie. Al hierdie gebeure sector would have hoped for either. All of these events in- het indirek ’n groot invloed op die stabiliteit van die Suid- directly have a major influence on the stability of the South Afrikaanse sake-omgewing, wisselkoerse, kommodi- African business environment, exchange rates, commodity teitspryse en gepaardgaande beleide, wat die daaglikse prices and concomitant policies, which complicate the day bestuur van ondernemings, soos Suidwes, bemoeilik. to day management of enterprises like Suidwes. Suidwes se finansiële prestasie vir die 2018/2019-finan- Suidwes’ financial performance for the 2018/2019 financial siële jaar is teleurstellend. Die Groep het ’n verlies van year is disappointing. For the year ending 30 April 2019 a R288,72m voor belasting, na Aansporingskorting- en loss of R288,72m before tax, after Incentive Rebates and Agterskotskema vir die jaar geëindig 30 April 2019 (2018: Deferred payment Scheme, were realised. The poor perfor- R23,05m wins) gerealiseer. Die swak prestasie is hoofsaaklik mance was mainly generated by provisions made on the veroorsaak deur voorsienings wat op die debiteureboek debtors book, turnover of Agrifriend Equipment not realised, gemaak moes word, omsette wat nie by Agrifriend Equipment and an underperformance in the Grain division. bereik is nie en ’n onderprestasie in die Graandivisie. A summary of the results of the various segments in Suidwes Die resultate van die segmente van die Suidwes Groep Group is as follows: word soos volg opgesom: 2019 2018 2019 2018 Segment R'000 R’000 Segment R’000 R’000 Korporatiewe Koste (100,65) (61,25) Corporative costs (100,65) (61,25) 46,47 (116,70) 46,47 Finansiering en Beleggings (116,70) 54,11 Financing and Investments 54,11 (27,88) Graan (27,88) (20,89) Grain (54,67) (20,89) 4,62 4,62 Handel (54,67) Trade 11,19 23,05 (288,72) 23,05 Tegnologie 11,19 Technology Totaal (288,72) Total 8

GRAAN GRAIN Die Graandivisie het in die 2018/2019-finansiële jaar ’n For the 2018/2019 financial year, the Grain division had verlies voor belasting van R27,88m gerealiseer. Die verlies realised a loss before tax of R27,88m. The loss can largely kan hoofsaaklik toegeskryf word aan relatiewe swak be attributed to the relatively poor income due to strong ontvangstes, as gevolg van sterk mededinging en voor- competition and provisions that had to be made for the sienings wat gemaak moes word vir graan wat kwaliteit loss of quality on grain during storage. The Grain division verloor het in opberging. Daar is die afgelope paar bemark- has been experiencing increased pressure during the past ingseisoene baie druk geplaas op die Graandivisie om few marketing seasons to receive grain with a higher graan met hoër voginhoud te ontvang. Die verandering moisture content. Changes in climatic conditions caused in klimaatstoestande noodsaak dit vir produsente om producers to harvest the crop earlier for them to be able to vinniger graan van die lande af te kry om hulle sodoende prepare their fields for the next planting season. This prac- in staat te stel om landerye betyds gereed te kry vir die tice increases the risk of heat damage. Aeration systems volgende plantseisoen. Hierdie praktyk verhoog die risiko have been installed in almost all silos during the past few vir hittebeskadiging. Daar is die afgelope paar maande by months to accommodate higher moisture content. Apart feitlik alle silo’s deurlugting in van die buise geïnstalleer from these installations various procedures were put into om graan met hoër voginhoud te kan akkommodeer. Buiten place to protect the quality of grain. dit is verskeie prosedures in plek gestel om graan se kwaliteit te beskerm. Competition in the trading of grain, as well as in the storage of grain, is drastically increasing with margins being under Mededinging in die verhandeling van graan, asook in die pressure as a result thereof. Currently the Grain division is opberging van graan, is fel aan die toeneem en gevolglik busy with action plans to not only remain the marketer of kom marges onder druk. Die Graandivisie is tans besig choice in the area, but also the preferred provider for grain met verskeie aksies om steeds die opberger en bemarker storage. Positive feedback on these actions can already van voorkeur in die gebied te wees. Die aksies werp reeds be witnessed. positiewe vrugte af. AFRICUM MILLS AFRICUM MILLS Vir die 2018/2019-finansiële jaar het Africum Mills ’n verlies A loss for the 2018/2019 financial year was realised. The gerealiseer. Die verlies is hoofsaaklik veroorsaak omdat die loss was largely due to the mill that could not optimally func- meule vir ’n lang tyd nie optimaal kon funksioneer nie, tion for a long time because of the process of upgrading. weens opgraderings aan die meule. Upgrading of the mill has now been finalised. The new Alle opgraderings van die meule is nou voltooi. Die nuwe degerminator was installed and the enlargement of the ontkiemer is geïnstalleer en die vergroting van die opberg- storage capacity has also been finalised. After the upgrad- ingskapasiteit is afgehandel. Die meule lewer, na die opgrade- ing has been done, a product of high quality can now be rings, ’n produk van hoë gehalte. Die druk is tans om die deur- delivered. The aim is to increase flow-through. Results for vloei te verhoog. Resultate vir die nuwe jaar is reeds positief. the new year already seem positive. AGRICAPITAL AGRICAPITAL Die afgelope paar jaar se ongunstige klimaatstoestande, The previous years’ adverse climatic conditions, fluctuating wisselvallige kommoditeitspryse, politieke uitsprake en commodity prices, political statements and the uncertainty beleidsonsekerheid, dalende beleggingsvertroue, afname regarding policies, declining confidence in investments, in grondwaardes, trae ekonomiese groei en relatiewe lae declining land value, slow economic growth and relative low winsmarges, het veroorsaak dat landbouprodusente hul- profit margins, caused agricultural producers finding them- self in ’n situasie bevind waar hul skuldlas toeneem, terwyl selves in a situation where their debt burden increased, while dalende grondpryse hul batewaardes erodeer. decreasing land values degraded their asset values. AgriCapital het ’n netto verlies van R70,4m gerealiseer. AgriCapital realised a net loss of R70,4m. This loss Hierdie verlies is hoofsaaklik veroorsaak deur ’n swak- was mainly due to a provision for bad debt in amount of skuldvoorsiening ter waarde van R108,4m, wat ’n gevolg R108,4m, which was caused by a few debtors who could is van die onvermoë van ’n aantal debiteure om hul skuld- not meet their debt obligations, as well as declining security verpligtinge na te kom, sowel as die afname in sekuriteits- values due to decreasing land values. waardes as gevolg van dalende grondpryse. A comprehensive plan is already in place to turn around the ’n Omvattende plan is in werking om AgriCapital se resultate results. The first results of the new year appear positive. om te draai. Die eerste resultate is positief. Die diensvlak- There currently are renegotiations with Land Bank concerning ooreenkoms met Land Bank word ook tans heronderhandel. the service level agreement. HANDEL RETAIL Ongunstige landboutoestande, swak ekonomiese om- Adverse agricultural conditions, poor economic condi- standighede en hoë kostes het gelei tot ’n verlies van tions and high costs led to a loss of R21,7m for Suidwes 9

Besturende Direkteursverslag vervolg Managing Director's Report continue R21,7m by Suidwes Handel, teenoor ’n verlies van R4,5m Retail, in comparison with the R4,5m loss of the previous in die vorige finansiële jaar. financial year. As deel van die omdraaistrategie om die finansiële resultate As part of the turn-around strategy to improve the finan- van die Handelsdivisie te verbeter en konstante positiewe cial results of the Retail division, and to ensure constant resultate te verseker, word hernude fokus geplaas op die positive results, renewed focus is placed on optimising optimalisering van die Handelstruktuur. Bedryfspunte is the division’s structure. Business outlets were placed onder die vergrootglas geplaas met die doel dat elke punt under the magnifying glass with the aim to analise every afsonderlik ontleed word om unieke sterkpunte te identifiseer oulet individually to identify unique strong points and en daarop te kapitaliseer. Fokus op dissipline, noulettenheid capitalise on it accordingly. en prosedures sal verseker dat swakpunte en foute uit- geskakel word. Standardisation as well as offering a complete product range within the Retail division are currently enjoying high Die standaardisering, asook die aanbied van volledige produk- priority. Systems are being set in place to ensure that reekse binne die Handeldivisie, is tans ’n groot prioriteit. product offerings to clients drastically improve to ensure Sisteme word in plek gestel om te verseker dat die pro- customer satisfaction. Healthy relations with suppliers dukaanbieding aan kliënte drasties verbeter, ten einde and customers are of great importance. The structure was kliëntetevredenheid te verseker. Goeie verhoudings met changed in such a way that it can be optimally reached. verskaffers en kliënte is van kardinale belang. Die struktuur is so verander dat dit op die mees optimale wyse bereik MECHANISATION / AGRIFRIEND EQUIPMENT PROPRIETARY kan word. LIMITED Agrifriend Equipment suffered a loss before tax of MEGANISASIE / AGRIFRIEND EQUIPMENT EIENDOMS R65,13m, in comparison with the loss of R48,52m during BEPERK the previous financial year. The loss can be attributed to Agrifriend Equipment het ’n verlies voor belasting van low sales, which is a direct result of difficult agricultural R65,13m gely, teenoor ’n verlies van R48,52m in die vorige conditions, political statements, low farming profit margins, finansiële jaar. Die verlies kan toegeskryf word aan lae the managing out of obsolete stock and the Northern and verkope wat ’n direkte resultaat is van die moeilike land- Eastern Cape branches not performing as expected. The boutoestande, politieke uitsprake, lae boerdery winsmarges, poor performance necessitated changes to the business uitbestuur van verouderde voorraad en die Noord- en Oos- model and structure. Kaap-takke, wat nie na verwagting presteer het nie. Die swak prestasie het veranderinge aan die besigheidsmodel Mr. Pieter van Zyl was appointed as the new CEO in July en -struktuur genoodsaak. 2018 with the instruction to come up with a comprehensive turn-around strategy and action plan. A new management Mnr Pieter van Zyl is in Julie 2018 aangestel as die nuwe structure was established, obsolete tractors, implements HUB met die opdrag om ’n omvattende omdraaistrategie and spares were successfully and actively managed and en aksieplan uit te rol. ’n Nuwe bestuurstruktuur is gevestig, substantial savings regarding expenses were achieved. verouderde heelgoedere- en onderdelevoorraad is suk- A big challenge was the cultural differences between the sesvol en aktief uitbestuur en aansienlike besparings op old Suidwes Mechanisation and the Agrifriend Equipment uitgawes is behaal. ’n Groot uitdaging was die kultuurver- branches that were consolidated during the previous year. skille tussen die ou Suidwes Meganisasie en Agrifriend Equipment-takke wat in die vorige jaar gekonsolideer is. Being the most loss-making branches (Northern and Eastern Cape branches), it was decided to sell the Kimberley, 10

Besturende Direkteursverslag vervolg Managing Director's Report continue Omdat die Noord- en Oos-Kaap-takke ook die mees nie- Douglas and Prieska branches to Rovic Leers and to close winsgewende takke was, is besluit om die Kimberley, down the Humansdorp and Cradock branches instead. Douglas- en Prieska-takke aan Rovic Leers te verkoop en The Hartswater and Bultfontein branches were closed die takke in Humansdorp en Cradock te sluit. Die Hartswater- down because of no CASE dealerships available. en Bultfontein-takke is gesluit omdat geen CASE-han- delaarskappe hier in plek is nie. The turn-around strategy and savings plan were revised and resumed to a new strategic plan and includes the Die omdraaistrategie en besparingsplan is vervat en hersien growth of sales, as well as the managing out of stock to in ’n nuwe strategiese plan en sluit in die groei van verkope, meet certain goals and further cost savings. The stream- die afbestuur van voorraad tot bepaalde doelwitte en ver- lined, better-positioned Agrifriend’s first focus now is to do dere kostebesparings. Die kleiner, beter geposisioneerde the basic things right and to serve its clients in the best Agrifriend se eerste fokus is nou om die basiese dinge reg cost-effective way possible. The goal is to break even and te doen en om sy kliënte op die mees koste-effektiewe to then systematically build the business wyse te dien. Die doelwit is om gelyk te breek en van daar af stelselmatig die besigheid te bou. AGRINET PROPRIETARY LIMITED The tailing-off in the economy, the uncertainty in the AGRINET EIENDOMS BEPERK agricultural environment and the fluctuating weather Die afplatting in die ekonomie, die onsekerheid in die landbou- conditions caused the performance of Agrinet to be a bit omgewing, asook die wisselende weersomstandighede, het under average, which put a damper on the results of the tot gevolg gehad dat die prestasie van Agrinet effens onder company. Agrinet achieved a growth in turnover in com- die gemiddeld was, wat ’n demper geplaas het op die resul- parison with the previous year, but due to the increase in tate van die maatskappy. Agrinet het ’n groei in omset behaal specific costs, like higher fuel costs, the net profit realised in vergelyking met die vorige jaar, maar as gevolg van die styg- at R20,10m lower than the R28,35m of the previous year. ings in spesifieke kostes, soos verhoogde brandstofkoste, Although the financial results are slightly disappointing, is die netto wins gerealiseer R20,10m laer as die vorige jaar the business is stable and the financial ratios on goal levels. (R28,35m). Alhoewel die finansiële resultate effens teleur- The growth strategy of the previous few years will be con- stellend is, is die besigheid stabiel en die finansiële verhoud- tinued in the following year. ings op doelwitvlakke. Die groeistrategie van die afgelope paar jaar sal in die komende jaar voortgesit word. As part of the value-adding and expanding strategy, the construction of the new warehouse in Belville was com- As deel van die waardetoevoeging- en uitbreidingstrategie, pleted just after year-end. This expansion is an extension is die oprigting van die nuwe pakhuis in Bellville net na jaar- of the footprint that was already established, as well as einde afgehandel. Hierdie uitbreiding is ’n verlenging van the introduction of a world-class warehouse facility. die voetspoor wat reeds in die gebied gevestig is, asook die bekendstelling van ’n wêreldklas pakhuis en fasiliteit. Management still focuses on the optimising of processes and systems to ensure customer satisfaction. Standardi- Bestuur se fokus is steeds op die optimalisering van pro- sation and the offering of complete product ranges are sesse en stelsels ten einde kliënte-tevredenheid te verseker. still a priority. An additional focus area for the coming year Die standaardisering en aanbieding van volledige produk- will be to improve the development of trademarks. Agrinet reekse is steeds ʼn groot prioriteit. ’n Verdere fokusarea vir die still believes that the value-adding strategy is the correct komende jaar is beter handelsmerkontwikkeling. Agrinet is strategy and, going forward, will compliment Agrinet`s steeds van mening dat die waardetoevoegingstrategie die clients, suppliers and shareholders. regte strategie is en in die toekoms nog groot waarde vir Agrinet se kliënte, verskaffers en aandeelhouers sal inhou. NVIROTEK LABORATORIES PROPRIETARY LIMITED The past year will be remembered as an extraordinary NVIROTEK LABORATORIES EIENDOMS BEPERK period for NviroTek. A record turnover was achieved and Die afgelope jaar sal uitstaan as ‘n uitsonderlike periode the remaining 20% of shares in Wynland Laboratories was vir NviroTek. ’n Rekordomset is behaal en die oorbly- obtained. An agreement with the top nematologist in South wende 20% aandele in Wynland Laboratorium is bekom. Africa was reached and NviroTek now offers nematode analysis ’n Ooreenkoms is aangegaan met die top Nematoloog in under the licence of NEMLAB. During September 2018 NviroTek Suid-Afrika en NviroTek bied nou aalwurmontledings aan, Laboratories Hartbeespoort obtained, as facility, international onder lisensie van NEMLAB. Gedurende September 2018 accreditation according to the ISO 17025 standard and verkry NviroTek Laboratories Hartbeespoort, as fasiliteit, Wynland Laboratories retained its accreditation during an internasionale akkreditasie volgens die ISO 17025-stan- interim audit in November 2018. A new building in Wellington daard en Wynland Laboratorium behou hul akkreditasie was obtained for Wynland Laboratories and is currently tydens ’n interim oudit in November 2018. ‘n Nuwe gebou furnished to accommodate the laboratory. is in Wellington vir Wynland Laboratorium bekom en word tans ingerig om die laboratorium te huisves. The company achieved a record profit of R9,70m in com- parison with previous years. It was generated by a higher 11

Besturende Direkteursverslag vervolg Managing Director's Report continue Die maatskappy het ’n rekord wins van R9,70m getoon in turnover of 21%, in comparison with the previous year, as vergeleke met die vorige jare. Dit is gegenereer uit ver- well as savings on expenses, specifically personnel costs. hoogde omset van 21% teenoor die vorige jaar, sowel as Wynland Laboratories exceeded its budget. Although the besparings op veral personeeluitgawes. Wynland Labora- acquisition of additional equity in Wynland Laboratories torium het ook goeie resultate gelewer. Hoewel die and the investment in the new building in Wellington nega- verkryging van addisionele aandele in Wynland Laboratorium tively affected cashflow, the cash position is still better in en die investering in die nuwe gebou in Wellington kon- comparison with April 2018. tantvloei onder druk geplaas het, is die kontantposisie verbeter teenoor April 2018. The coming year will focus on the establishment of organisational infrastructure, which is necessary in order Die fokus vir die komende jaar is om die organisatoriese to support this expanding company. onderbou te vestig wat noodsaaklik is om die groeiende maatskappy te ondersteun. PE-BEE AGRI PROPRIETARY LIMITED (PROTEK) Despite retail sales being under pressure nationwide, PE-BEE AGRI EIENDOMS BEPERK (PROTEK) Protek managed to increase their 2018/2019 turnover Ten spyte van kleinhandelverkope wat landswyd steeds onder with 19% because of a higher market share. The increase druk is, slaag Protek daarin om omset vir die 2018/2019- in market share was established by effective service finansiële jaar met 19% te groei deur ’n groei in markaandeel. delivery to distribution partners, the continuous develop- Die groei in markaandeel is bewerkstelling deur die effektiewe ment of new products, as well as the establishment of dienslewering aan distribusievennote, die deurlopende uitrol new marketing areas. Protek did well by reaching a net van nuwe produkte, asook vestiging van nuwe afsetkanale. profit before tax of R11,87m. Protek het op die rug van die inisiatiewe weer ’n goeie jaar beleef en ’n netto wins voor belasting van R11,87m is behaal. RADDIX GROUP PROPRIETARY LIMITED The company had an exciting as well as busy year amidst RADDIX GROUP EIENDOMS BEPERK challenging economic and climatic conditions. An increased Die maatskappy het ’n opwindende en bedrywige jaar net profit before tax was achieved. ervaar in uitdagende ekonomiese- en klimaatsomstan- dighede. ’n Verhoogde netto wins voor belasting is behaal. This increased net profit before tax was reached despite decreasing commission and fees. Raddix, together with Die verhoogde netto wins voor belasting is behaal ten Suidwes Group, had a cost-saving strategy to keep spyte van ’n daling in kommissie en fooie. Raddix, tesame overheads in line with the 2017/2018 financial year. The met die Suidwes Groep, het ’n kostebesparingstrategie ge- successful implementation hereof resulted in expenses loods om oorhoofse kostes in lyn te hou met die van die decreasing with 14% in comparison with the 2017/2018 2017/2018-finansiële jaar. Die suksesvolle implimentering, financial year. het beteken dat uitgawes gedaal het met 14% teenoor die 2017/2018-finansiële jaar. Suidwes, via Africum, increased its interest in Raddix Group during the 2018/2019 financial year from 50,02% to 100%. Suidwes, via Africum, het in die 2018/2019-finansiële jaar sy belang in Raddix Group vanaf 50,02% na 100% verhoog. The company, together with its holding company, out- faced the challenges in the agricultural sector during the Die maatskappy het saam met sy houermaatskappy die 2018/2019 financial year. It attempted to add more value uitdagings van die landbousektor in die 2018/2019-finan- for clients in terms of innovative products, together with siële jaar trotseer en in die tyd gepoog om meer waarde good service and advice, to therefore render the best value toe te voeg aan kliënte in terme van innoverende produkte, for clients at the most affordable tariff. gepaardgaande met goeie diens en advies, om sodoende die beste waarde, teen die billikste tariewe, vir kliënte te bied. Expected regulatory changes had an effect on the com- pany’s turnover during the last term of the year, which Verwagte regulatoriese veranderinge het ’n effek gehad op places more focus on the expansion of the core business, die maatskappy se omset in die laaste kwartaal van die short-term insurance, especially when it comes to current jaar, wat groter fokus plaas op uitbreiding van die kernbe- Suidwes members and employees. sigheid, korttermynversekering, veral by bestaande Suidwes lede en personeelkorps. Despite an increased net profit in negative agricultural and general economic conditions, as well as regulatory Ten spyte van ’n verhoogde netto wins in swak landbou- en changes, Raddix has to reposition itself to stay relevant. algemene ekonomiese omstandighede, asook regulatoriese During ever-changing conditions and strong competition, veranderinge, moet Raddix homself herposisioneer om rele- innovative thoughts and new strategies will be needed to vant te bly. In voortdurende veranderende omstandighede en ensure the continued growth of the company sterk kompetisie sal innoverende denke en nuwe strategieë nodig wees vir die voortbestaan van die onderneming. 12

Besturende Direkteursverslag vervolg Managing Director's Report continue BOTSELO MILLS BOTSELO MILLS Botselo Mills het gedurende die 2018/2019-finansiële jaar Botselo Mills increased their volumes milled in the met 8,9% gegroei in volumes gemaal, wat ’n voortsetting 2018/2019 financial year with 8,9%, which is a continuation is van die stelselmatige groeitendens van die afgelope of the systematic growth tendency of the past few years. paar jaar. Hierdie groei het plaasgevind te midde van uiters This growth had taken place amidst extremely difficult market moeilike markomstandighede, waarin veranderlikes soos conditions where variables such as weather patterns and uiterste weerpatrone en die volatiele mielieprys, ’n wesenlike the volatile maize price had an essential influence. Despite invloed gehad het. Ten spyte van die groei, is daar ’n lae of this growth, a low profit was achieved, which can be wins behaal, wat te wyte is aan lae marges as gevolg van attributed to low margins due to strong competition. hoë kompetisie in die mark. A new plant, for the production of instant maize flour, ’n Nuwe aanleg, waar waardetoevoeging tot die vervaar- became operative at the end of the financial year. The diging van mieliemeel deur middel van kits-mieliemeel demand for this product is good and positive feedback is geskied, is teen die einde van die finansiële jaar in werking received from buyers. This new development opened new gestel. Die belangstelling in die produk is baie goed en distribution areas, with positive prospects. positiewe terugvoering word vanaf verbruikers ontvang. Hierdie nuwe ontwikkeling het nuwe verspreidingskanale Besides the abovementioned, Botselo Mills made some geopen, met positiewe groeivooruitsigte. changes to its trademark “Super White” with a colourful packaging. With this, Botselo Mills takes the lead in the Benewens die voormelde, het Botselo Millls ook sy han- maize-meal industry in South Africa. The feedback delsmerk “Super White” in ’n nuwe baadjie getooi, met ’n concerning the packaging received from the market is volkleur verpakking. Hiermee is Botselo Mills die voorloper extremely positive. in die mieliemeelbedryf in Suid-Afrika. Die terugvoering uit die mark oor die verpakking is uiters positief. Despite current market conditions that still are difficult, better financial results in the new financial year are expected. Ten spyte van marktoestande wat steeds moeilik is, is daar ’n positiewe verwagting vir beter finansiële resultate TERRATEK in die nuwe finansiële jaar. Terratek is still committed to provide clients and share- holders with superior, independent, agricultural advisory TERRATEK services. An ever-changing agricultural environment Terratek is steeds daartoe verbind om kliënte en aandeel- necessitates all role players, including Suidwes, to conti- houers van hoogstaande onafhanklike landboukundige nuously renew and therefore addresses modern needs of adviesdienste te voorsien. ’n Voortdurende veranderende clients and shareholders. An example hereof is contracts landbou-omgewing noodsaak egter alle rolspelers, insluitende concerning crop monitoring which had been introduced Suidwes, om deurlopend te vernuwe en sodoende die with great success during the past financial year. This hedendaagse behoeftes van kliënte en aandeelhouers product afforded clients and shareholders the opportunity aan te spreek. ’n Spreekwoordelike voorbeeld hiervan is to retain continuous access to affordable agricultural die gewasmoniteringskontrakte wat met groot sukses advisory services. gedurende die afgelope finansiële jaar uitgerol is. Hierdie produk het kliënte en aandeelhouers die geleentheid gebied Good progress has been made in terms of other strategic om op ’n deurlopende basis toegang tot bekostigbare goals as well. On the financial side Terratek positively landboukundige adviesdienste te hê. exceeded their budget. The goal still remains to establish Terratek as a financially independent service department. 13

Besturende Direkteursverslag vervolg Managing Director's Report continue Goeie vordering is ook gemaak in terme van ander strate- IN CONCLUSION giese doelwitte. Op die finansiële front het Terratek beter Results obtained during the 2018/2019 financial year as begroting afgesluit. Die doelwit bly steeds om Terratek brought forward immense challenges. Since the loss is not te vestig as ’n finansieel selfonderhoudende diensafdeling. due to a single event, but rather structural in nature which manifested over time, a total turn-around strategy, especially TEN SLOTTE in Suidwes’ core business, had to be launched. Die 2018/2019-finansiële jaar se resultate het groot uit- dagings gebring. Omdat die verliese nie te wyte is aan ’n The turn-around strategy involved that a much bigger focus eenmalige gebeurtenis nie, maar struktureel van aard is en be placed on cost effectiveness. oor tyd gemanifesteer het, moes ’n totale omdraaistrategie, veral by Suidwes se kernbesigheid, van stapel gestuur word. This involves the following: • Agrifriend branches in the Northern and Eastern Cape Die omdraaistrategie het behels dat ’n baie groter fokus geplaas is op koste-effektiwiteit. were closed down or sold, because of not making a profit. Dit het behels dat: • Focus was placed on stock to reduce obsolete stock. To • Agrifriend-takke in die Noord- en Oos-Kaap gesluit of achieve this, a most economic procurement programme was developed and implemented. verkoop is, omdat hulle nie wins gemaak het nie. • Under-utilised resources were either scaled down or sold • ’n Groot fokus op voorraad geplaas is om dooievoorraad to increase productivity. uit te bestuur en om voorraadvlakke af te bring. Hiervoor is ’n mees ekonomiese bestelprogram ontwikkel en • An internal audit and risk department was established to geïmplementeer. crack down on faults and malpractice. • Onderbenutte hulpbronne is afgeskaal of verkoop om • A project was launched to bring about cultural change sodoende produktiwiteit te verhoog. amongst Suidwes staff. The training part of the project focuses on attitude towards service, preciseness, • ’n Interne Oudit en Risikobestuur-afdeling is ingestel om discipline and control. The ultimate objective hereof is to foute en wanpraktyk die hok te slaan. change attitude in such a way that clients will positively experience the change. • ’n Projek is geloods om ’n kultuurverandering by Suidwes se personeel mee te bring. Die opleidingsgedeelte van • The management of the debtors book handled on behalf die projek fokus op diensingesteldheid, noulettendheid, of Land Bank is redesigned completely to minimise dissipline en beheer. Die einddoel is om die ingesteld- further losses. heid sodanig te verander dat kliënte dit positief sal ervaar. • Consolidation of departments will reduce costs. • Die bestuur van die debiteureboek, wat namens Land Bank gedoen word, heeltemal herontwerp word om ver- • The bonus system is amended for it to be performance dere verliese tot die minimum te beperk. based. • Konsolidasies van afdelings en eenhede is gedoen om • Discipline is established to minimise mistakes. kostes af te bring. • The new SYSPRO system is fine-tuned so that real-time • Die bonusstelsel so te wysig dat dit prestasie gebaseer financial reporting can be achieved and mistakes limited gedoen word. as far as possible. 14

Besturende Direkteursverslag vervolg Managing Director's Report continue • Dissipline so te vestig dat foute tot die minimum beperk word. • Amendments on executive management level were made to confirm and establish the new direction and culture. • Die nuwe SYSPRO-stelsel verder te verfyn om finansiële rapportering intyds te maak en foute tot die minimum The turn-around strategy brought about an immediate te beperk. saving of more or less R147,16m. This enables Suidwes to make a profit, even in below-average years. • Veranderings op hoofbestuursvlak gemaak is om die nuwe rigting en kultuur te bevestig en uit te rol. Conditions concerning agriculture, economic pressure and political conditions are still causing negative tension. Die omdraaistrategie het ’n onmiddellike besparing van on- This give rise to farmers abandoning farm operations, geveer R147,16m gebring. Dit plaas Suidwes in ’n posisie om which again leads to less buying power in the area. Suidwes selfs in ondergemiddelde jare ’n wins te kan maak. is an extension of the primary agricultural industry and is directly influenced by these conditions. Cost effectiveness Toestande in die landbou, die ekonomiese druk en politieke therefore is of great importance. omstandighede, bly negatiewe druk uitoefen. Dit veroorsaak dat baie boere hulle bedrywighede staak en dat die koop- The loss placed the focus on some inherent problems krag in die gebied afneem. Suidwes is ’n verlengstuk van die within Suidwes. The result is a better business which primêre landboubedryf en word deur hierdie omstandighede is more aimed and focused and able to handle future geraak. Koste-effektiwiteit is daarom baie belangrik. challenges better. Die verlies het die fokus geplaas op Suidwes se inherente Great effort is currently made in the form of new initiatives probleme. Die resultaat is ’n beter besigheid, wat meer to increase our members’ loyalty and to reaffirm Suidwes gerig en gefokus is en wat die uitdagings van die toekoms as the farmer’s partner. This year Suidwes reaches the beter sal kan hanteer. 110-year-old mark. A lot has happened, with some good and bad times. Only businesses that can adjust to changing Daar word hard gewerk aan nuwe inisiatiewe om ons lede conditions are able to reach this mark. It can only happen if se lojaliteit te verhoog en om Suidwes as die boer se ven- the inter-dependency between Suidwes and its members noot te herbevestig. Suidwes is vanjaar 110 jaar oud. Baie is enhanced on. het gebeur, met goeie en slegte tye. Slegs besighede wat hulself kan aanpas by veranderende omstandighede word The staff and management of Suidwes are geared and so oud. Dit kan alleen gebeur as die interafhanklikheid tus- committed to achieve these goals, steering Suidwes to sen Suidwes en sy lede uitgebou word. growth and prosperity. Suidwes se personeel en bestuur is gerat en toegewyd om hierdie doelwitte te behaal en Suidwes te laat groei en gedy. Dr HD van Schalkwyk Dr. HD van Schalkwyk Suidwes Groep Hoof Uitvoerende Beampte Chief Executive Officer Suidwes Group 15

Uitvoerende Komitee Executive Committee Dr. HD van Schalkwyk (Herman) Me/Mrs. D Bester (Debbie) Groep Hoof Groep Hoof Uitvoerende Beampte Finansiële Beampte Group Chief Group Chief Executive Officer Financial Officer Mnr/Mr. D Linde (Derék) Mnr/Mr. N Schulenburg (Nic) Groep Hoof Regsbeampte Hoof Uitvoerende & Groepsekretaris Beampte: Graan Group Chief Legal Officer Chief Executive & Group Secretary Officer: Grain Dr. PC Cloete (Flippie) Mnr/Mr. PJ van Zyl (Pieter) Hoof Uitvoerende Hoof Uitvoerende Beampte: Beampte: AgriCapital Meganisasie/Agrifriend Chief Executive Chief Executive Officer: Officer: AgriCapital Mechanisation/Agrifriend Mnr/Mr. AJ du Toit (Johan) Mnr/Mr. B Krüger (Bertus) Hoof Uitvoerende Beampte: Hoof Uitvoerende Inligtingstegnologie Beampte: Raddix Chief Executive Officer: Chief Executive Information Technology Officer: Raddix 16

Vyf-Jaar Finansiële Oorsig Five Year Financial Review 2019 2018 2017 2016 2015 R '000 R '000 R '000 R '000 R '000 INKOMSTESTAAT 2 941 137 3 035 053 2 704 381 2 607 973 2 849 107 INCOME STATEMENT Inkomste Income Bedryfswins/(Verlies) (205 855) 94 177 36 499 169 313 138 122 Operating Profit/(Loss) Finansieringskoste (84 027) (67 409) (57 833) (42 177) (36 906) Finance costs Wins/(Verlies) na finansieringskoste (289 882) 26 768 (21 334) 127 136 101 216 Profit/(Loss) after finance costs Inkomste/(verlies) uit 748 11 365 603 (5 163) (5 167) Income/(Loss) from equity ekwiteitsverantwoorde beleggings - - - 1 691 (70) accounted investments - - - - (91) Billike waarde aanpassing Fair value adjustment (289 134) 38 133 (20 731) 123 664 95 888 Verlies met verkoop van nie-bedryfsbate Loss on sale of non-current asset held gehou vir verkoop for sale Wins/(Verlies) uit voortgesette bedry- Profit/(Loss) from continuing operations wighede voor belasting, Aansporingskort- before tax, Incentive Rebates ing- en Agterskotskema and Deferred Payment Scheme Netto Aansportingskorting- 415 (7 255) (12 927) (16 743) (35 778) Net Incentive Rebates and Deferred en Agterskotskema Payment Scheme 415 (9 704) (17 383) (22 532) (49 888) Bruto Aansportingskorting- en Agter- Gross Incentive Rebates and Deferred skotskema - 2 449 4 456 5 789 14 110 Payment Scheme Billike waarde aanpassing Fair value adjustment Wins/(Verlies) uit voortgesette (288 719) 30 878 (33 658) 106 921 60 110 Profit/(Loss) from continuing operations bedrywighede na Aansportingskorting- after Incentive Rebates and Deferred en Agterskotskema, voor belasting Payment Scheme, before tax Belasting 21 140 3 290 12 158 (22 594) (15 751) Tax Wins/(Verlies) uit (267 579) 34 168 (21 500) 84 327 44 359 Profit/(Loss) for the year voortgesette bedrywighede from continuing operations Beëindigende bedrywighede - (6 450) (11 576) (11 032) - Verlies uit beëindigende bedrywighede (267 579) 27 718 (33 076) 73 295 44 359 Discontinued operations Loss from discontinued operations Wins/(Verlies) vir die jaar Profit/(Loss) for the year Toeskryfbaar aan: (256 107) 42 648 (24 149) 67 947 43 043 Attributable to: Aandeelhouers van die houermaatskappy (11 472) (14 930) (8 927) 5 348 1 316 Shareholders of the holding company Nie-beherende belang (267 579) 27 718 (33 076) 73 295 44 359 Non-controlling interest STAAT VAN FINANSIËLE POSISIE 244 798 511 339 505 076 547 906 493 418 STATEMENT OF FINANCIAL POSITION Gewone aandeelhouersbelang 48 472 73 545 43 458 51 028 13 915 Ordinary shareholders' interest Nie-beherende belang in ekwiteit Totale ekwiteit 293 270 584 884 548 534 598 934 507 333 Non-controlling interest in equity Totale aanspreeklikhede 1 656 361 1 513 030 1 316 965 1 219 539 1 162 960 Total equity Totale bates 1 949 631 2 097 914 1 865 499 1 818 473 1 670 293 Total liabilities Total assets VERHOUDINGS RATIOS Ekwiteit tot totale bates 15,04% 27,88% 29,40% 32,94% 30,38% Equity to total assets Rentedraende skuld tot totale bates 54,60% 47,51% 47,75% 36,82% 44,05% Interest-bearing liabilities to total assets Rentevrye skuld tot totale bates 30,36% 24,61% 22,85% 30,24% 25,57% 100,00% 100,00% 100,00% 100,00% 100,00% Interest-free liabilities to total assets Verdienste voor Bruto Aansportingskort- - 10,4% - 18,3% 20,4% Earnings before Gross Incentive Rebates ing- en Agterskotskema op gewone and Deferred Payment Scheme on aandeelhouersbelang - 1,8% - 6,8% 5,7% ordinary shareholders` interest (429,42) 71,51 (40,49) 112,86 71,48 Opbrengs op bates, voor Return on assets, before Gross Incentive Aansportingskorting- en Agterskotskema Rebates and Deferred Payment Scheme Verdienste per aandeel (sent) Earnings per share (cent) Dividende per aandeel (sent) - tussentyds - - - 15,00 10,00 Dividends per share (cent) - interim Dividende per aandeel (sent) - finaal - 20,00 20,00 13,00 - Dividends per share (cent) - final Totale Dividende per aandeel (sent) - 20,00 20,00 28,00 Total Dividends per share (cent) 10,00 Netto batewaarde per aandeel (sent) 410,46 857,37 846,87 918,69 Net asset value per share (cent) 819,22 Rentedekking (aantal keer) - 2,0 1,0 4,2 Interest coverage (number of times) 4,2 Dividenddekking (aantal keer) - 3,58 - 4,03 Dividend coverage (number of times) 7,15 17

Vyf-Jaar Finansiële Oorsig Five Year Financial Review NETTO WINS/(VERLIES) TOESKRYFBAAR TOTALE DIVIDEND PER AANDEEL (SENT) AAN DIE AANDEELHOUERS VAN DIE TOTAL DIVIDEND PER SHARE (CENT) HOUERMAATSKAPPY 30.00 2019 0 NET PROFIT/LOSS ATTRIBUTABLE TO 25.00 2018 20 SHAREHOLDERS OF THE HOLDING COMPANY 20.00 2017 20 15.00 2016 28 100.0 2019 (R256.1m) Sent/cent 10.00 2015 10 50.0 2018 R42.6m 5.00 Miljoen/million (R) 0.0 2017 (R24.1m) 0.00 -50.0 2016 R67.9m -100.0 2015 R43.0m -150.0 -200.0 EKWITEIT TOT TOTALE BATES -250.0 EQUITY TO TOTAL ASSETS -300.0 35.0% Miljoen/million (R) TOTALE EKWITEIT 2019 R293.3m 30.0%Persentasie/percentage (%) 2019 15.0% TOTAL EQUITY 2018 R584.9m 25.0% 2018 27.9% 2017 R548.5m 20.0% 2017 29.5% 700.0 2016 R598.9m 15.0% 2016 32.9% 600.0 2015 R507.3m 10.0% 2015 30.4% 500.0 5.0% 400.0 0.0% 300.0 200.0 100.0 0.0 VERDIENSTE PER AANDEEL (SENT) VERDIENSTE VOOR AANSPORINGSKORTING EN EARNINGS PER SHARE (CENT) -AGTERSKOT OP GEWONE AANDEELHOUERSBELANG 200.00 EARNINGS BEFORE CROSS INCENTIVE REBATES 100.00 AND DEFERRED PAYMENT SCHEME ON ORDINARY SHAREHOLDERS' INTEREST - Sent/cent (100.00) 2019 (429.42) Persentasie/percentage (%) 25.0% 2019 0% (200.00) 2018 71.51 20.0% 2018 10.40% (300.00) 2017 (40.49) 15.0% 2017 0% (400.00) 2016 112.86 10.0% 2016 18.3% (500.00) 2015 71.48 5.0% 2015 20.4% 0.0% NETTO BATEWAARDE PER AANDEEL (SENT) RENTEDRAENDE LENINGS NET ASSET VALUE PER SHARE (CENT) INTEREST-BEARING LIABILITIES Sent/cent 1 000.00 2019 410.46 Miljoen/million (R) 2015 Korttermyn 900.00 2018 857.37 2016 Langtermyn 800.00 2017 846.87 2017 700.00 2016 918.69 2018 Short Term 600.00 2015 819.22 2019 Long Term 500.00 400.00 0 500 1000 1500 300.00 200.00 100.00 0.00 18

Gekonsolideerde en Consolidated and Separate Afsonderlike Inkomstestaat Income Statement Vir die jaar geëinding 30 April 2019 GROEP/GROUP MAATSKAPPY/COMPANY For the year ended 30 April 2019 Verkope 2019 2018 2019 2018 Revenue Koste van verkope R '000 R '000 R '000 R '000 Cost of sales Bruto Wins 2 877 450 2 874 485 3 660 3 622 Gross Profit Aansporingskorting- en Agterskotskema (2 213 544) (2 174 753) Incentive Rebates and Deferred Payment toeskryfbaar aan Verkope 663 906 699 732 - - Scheme attributable to Revenue Bruto wins voor Aansporingskorting- 3 660 3 622 Gross profit before Incentive Rebates en Agterskotskema and Deferred Payment Scheme Ander bedryfsinkomste - 7 255 -- Other operating income Ander bedryfswins/(verlies) Other operating gains Beleggingsinkomste 663 906 706 987 3 660 3 622 Investment income Bedryfsuitgawes Operating expenses Bedryfswins/(Verlies) 40 200 102 517 1 700 330 Operating Profit/(Loss) (2 551) 3 238 (120) - Net Incentive Rebates and Netto Aansporingskorting- en Agterskotskema 23 487 Deferred Payment Scheme (930 897) 47 559 86 28 Gross Incentive Rebates and (205 855) (766 124) (2 737) (2 284) Deferred Payment Scheme Fair value adjustment 415 94 177 2 589 1 696 Profit from equity accounted investments Finance expenses (7 255) - 2 449 Profit/(Loss) from continuing operations before Incentive Rebates Bruto Aansporingskorting- en Agterskotskema 415 (9 704) - - and Deferred Payment Scheme - 2 449 Billike waarde aanpassing - 2 449 Tax Wins uit ekwiteitsverantwoorde beleggings 748 11 365 - - Profit/(Loss) from continuing operations Finansieringskoste (84 027) (67 409) (2 451) Wins/(Verlies) uit voortgesette bedrywighede (1 965) Discontinued operations na Aansporingskorting- en Agterskotskema (288 719) 30 878 Loss from discontinued operations voor belasting 138 2 180 Belasting 21 140 3 290 Profit/(Loss) for the year Wins/(Verlies) uit voorgesette bedrywighede (267 579) 34 168 (144) (278) Beëindigende bedrywighede (6) 1 902 Attributable to: Verlies uit beëindigende bedrywighede - (6 450) Shareholders of holding company: Wins/(Verlies) vir die jaar (267 579) 27 718 -- Profit/(Loss) from continuing operations (6) 1 902 Loss from discontinued operations Toeskryfbaar aan: (256 107) 49 098 (6) 1 902 Non-controlling interest: Aandeelhouers van die houermaatskappy: - (6 450) -- Profit/(Loss) from continuing operations Wins/(Verlies) uit voortgesette bedrywighede 42 648 Verlies uit beëindigende bedrywighede (256 107) (6) 1 902 Earnings per share attributable to the (14 930) shareholders of the holding company Nie-beherende belang: (11 472) -- Wins/(Verlies) uit voortgesette bedrywighede Basic and diluted earnings per share (cent) Verdienste per aandeel toeskryfbaar aan (429,42) 71,51 (0,01) 3,19 Dividends per share aandeelhouers van die Houermaatskappy Interim (cent) - - Final (cent) Basiese en verwaterde - 20,00 verdienste per aandeel (sent) Dividende per aandeel -- Tussentyds (sent) - 20,00 Finaal (sent) 19

Gekonsolideerde en Consolidated and Afsonderlike Staat van Separate Statement of Omvattende Inkomste Comprehensive Income Vir die jaar geëinding 30 April 2019 GROEP/GROUP MAATSKAPPY/COMPANY For the year ended 30 April 2019 Wins/(Verlies) vir die jaar 2019 2018 2019 2018 Profit/(Loss) for the year Ander omvattende inkomste R '000 R '000 R '000 R '000 Other comprehensive income Billike waarde aanpassing op finansiële bates Fair value adjustment on financial assets Inkomstebelasting met betrekking tot (267 579) 27 718 (6) 1902 Income tax relating to fair value adjustment billike waarde aanpassing Ander omvattende inkomste/ - - (253 381) 12 640 Other comprehensive (verlies) netto na belasting - - 56 757 - income/(loss) net of tax Totale omvattende inkomste/ - - Total comprehensive income/ (verlies) vir die jaar (267 579) 27 718 (196 630) 12 640 (196 630) 14 542 (loss) for the year Toeskryfbaar aan: Aandeelhouers van die houermaatskappy (256 107) 42 648 (196 630) 14 542 Attributable to: Nie-beherende belang (11 472) (14 930) - - Shareholders of the holding company (267 579) 27 718 (196 630) 14 542 Non-controlling interest 20

Gekonsolideerde en Consolidated and Afsonderlike Staat van Separate Statement Finansiële Posisie of Financial Position Vir die jaar geëinding 30 April 2019 GROEP/GROUP MAATSKAPPY/COMPANY For the year ended 30 April 2019 Nie-bedryfsbates 2019 2018 2019 2018 Non-current assets Eiendom, aanleg en toerusting R '000 R '000 R '000 R '000 Property, plant and equipment Beleggingseiendom Ontasbare bates 545 978 446 954 5 19 Investment Property Belegging in filiale 9 861 8 941 - - Intangible assets Belegging in geassosieerde maatskappye 6 6 Ander finansiële bates 101 397 176 276 288 393 Investment in subsidiaries Afbetalingsverkoopsfinansiering en lenings - - - 537 774 Investment in associates Uitgestelde belastingbates - - Other financial asset 141 088 139 485 - - Bedryfsbates 797 743 - - Instalment sale financing and loans due Voorraad 288 404 - Deferred tax asset Lopende lenings aan groepsentiteite 1 322 1 992 Handels- en ander bedrae ontvangbaar 32 701 3 017 - 537 799 Current assets Ander finansiële bates 833 144 777 408 1 545 Inventories Afbetalingsverkoopsfinansiering en lenings - Huidige belastingbate 663 286 539 272 126 323 Loans to group companies Handelsdebiteure deur banke gefinansier - - - 4 681 Trade and other receivables Kontant en kontantekwivalente - 327 828 453 005 - - Other financial asset Totale Bates 11 995 197 141 - - Instalment sale finance and loans 5 057 - Ekwiteit en Aanspreeklikheid 2 976 3 004 53 - Current tax asset - 5 323 1 724 18 Trade receivables financed by banks Ekwiteit 290 128 5 022 105 345 577 542 821 Cash and cash equivalents Aandelekapitaal 1 116 487 122 184 Reserwes 1 949 631 1 320 506 Total Assets Behoue Inkomste 2 097 914 Gewone aandeelhouersbelang Equity and Liabilities Nie-beherende belang in ekwiteit 46 052 47 277 47 597 47 597 15 15 136 294 332 918 Equity Aanspreeklikhede Nie-bedryfslaste 198 731 464 047 23 118 35 052 Share capital Ander finansiële laste 244 798 511 339 207 009 415 567 Reserves Finansiële bruikhuurverpligting Uitgestelde belastinglas 48 472 73 545 - - Retained earnings Voorsienings 293 270 584 884 207 009 415 567 Ordinary shareholders' interest Non-controlling interest in equity Bedryfslaste 88 199 378 875 22 519 20 918 Lopende lenings vanaf groepsentiteite 5 576 7 675 - - Liabilities Ander finansiële laste - - Non-Current Liabilities Finansiële bruikhuurverpligting 3 102 5 953 43 761 100 372 Other financial liabilities Handels- en ander bedrae betaalbaar - - Financial leasing obligation Voorsienings 96 877 392 503 Ander laste 66 280 121 290 Deferred tax liability Lenings vanaf banke om handelsdebiteure - - Provisions te finansier 856 664 292 695 - 2 603 Bankoortrekking - - Current liabilities 4 440 4 875 - - Loans from group companies Totale Aanspreeklikhede 375 659 488 109 708 Totale Ekwiteit en Aanspreeklikhede - 15 Other financial liabilities 14 828 18 166 3 365 - Finance lease liabilities 3 544 3 356 Trade and other payables - 3 346 - 661 Provisions 12 766 - Other liabilities 304 349 312 665 16 839 Borrowings from banks to 1 559 484 1 120 527 83 119 - finance trade receivables 1 656 361 1 513 030 290 128 5 964 Bank overdraft 1 949 631 2 097 914 127 254 542 821 Total Liabilities Total Equity and Liabilities 21

22 Afsonderlike Staat van Separate Statement Verandering in Ekwiteit of Changes in Equity Aandele- Aandele- Totale Reserwes Behoue Totaal Nie- Totale Ekwiteit kapitaal premie aandele- Inkomste Total beherende Total Equity kapitaal Reserves Vir die jaar geëinding 30 April 2019 Share capital Share premium Total share Retained R '000 belang For the year ended 30 April 2019 capital R '000 earnings Saldo soos op 1 Mei 2017 Non-controling Wins vir die jaar R '000 320 278 R '000 interest Ander omvattende inkomste - Totale omvattende inkomste vir die jaar R '000 R '000 45 078 R '000 R '000 Dividende betaal 12 640 1 902 Saldo soos op 1 Mei 2018 596 47 001 47 597 12 640 - 412 953 - 412 953 Balance at 1 May 2017 Verlies vir die jaar --- 1 902 1 902 Ander omvattende verlies --- - - 1 902 Profit for the year Totale omvattende inkomste vir die jaar --- 332 918 (11 928) 12 640 Dividende betaal --- 35 052 14 542 - 12 640 Other comprehensive income Saldo soos op 30 April 2019 - (6) (11 928) 596 47 001 47 597 (196 624) - 415 567 - 14 542 Total comprehensive income for the year --- (196 624) (6) --- (6) - (11 928) Dividends paid --- - (11 928) (196 624) --- 136 294 23 118 (196 630) - 415 567 Balance at 1 May 2018 as restated 596 47 001 47 597 (11 928) - (6) Loss for the year 207 009 - (196 624) Other comprehensive loss - (196 630) Total comprehensive income for the year - (11 928) Dividends paid - 207 009 Balance at 30 April 2019

Gekonsolideerde Staat van Consolidated Statement Verandering in Ekwiteit of Changes in Equity Aandele- Aandele- Totale Reserwes Behoue Totaal Nie- Totale Ekwiteit kapitaal premie aandele- Inkomste beherende kapitaal Reserves Retained Total Total Equity Vir die jaar geëinding 30 April 2019 Share capital Share premium R '000 earnings R '000 belang R '000 For the year ended 30 April 2019 R '000 R '000 Total share capital 15 R '000 Non-controling interest R '000 - 457 784 42 648 R '000 - 42 648 23 Saldo soos op 1 Mei 2017 596 46 681 47 277 - 505 076 43 458 548 534 Balance at 1 May 2017 Wins/(Verlies) vir die jaar - (11 902) 42 648 (14 930) 27 718 Profit/(Loss) for the year Totale omvattende inkomste/ --- 15 (24 483) 42 648 (14 930) 27 718 (verlies)vir die jaar - Total comprehensive Dividende betaal --- 15 - (11 902) (5 998) (17 900) income/(loss) for the year Verandering in eienaarskap - beheer nie --- (36 385) (24 483) 23 115 (1 368) verloor --- - 27 900 27 900 Dividends paid Besigheidsamevoeging 596 46 681 47 277 - 464 047 - 45 017 8 632 Changes in ownership interest Totale bedraes en uitkerings aan --- - (36 385) aandeelhouers van maatskappy 596 46 681 47 277 - (4 344) 73 545 584 884 - control not lost Saldo soos op 1 Mei 2018 - 459 703 511 339 Business combinations voorheen gerapporteer --- - - (4 344) Total contributions by and distributions Afname weens veranderinge aan rekening- --- 15 (256 107) (4 344) 73 545 580 540 to shareholders of the company kundige beleid soos vereis deur IFRS (7) (1 218) (1 225) (256 107) 506 995 Saldo soos op 1 Mei 2018 hersaamgestel --- (11 472) Balance at 1 May 2018 previously reported --- - (256 107) (11 472) Wins/(Verlies) vir die jaar (7) (1 218) (1 225) (11 776) (256 107) Decrease due to changes in Totale omvattende inkomste/ 589 45 463 46 052 - accounting policy required by IFRS (verlies) vir die jaar 6 911 (1 225) (2 950) Balance at 1 May 2018 as restated Aandele verkry (11 776) (10 651) Dividende betaal (4 865) (267 579) Profit/(Loss) for the year Verandering in eienaarskap 198 731 6 911 (13 601) (267 579) Total comprehensive income/ - beheer nie verloor 48 472 Totale bydraes en uitkerings aan die (6 090) (1 225) (loss) for the year aandeelhouers van maatskappy 244 798 (14 726) Shares obtained Saldo soos op 30 April 2019 Dividends paid (3 740) Change in ownership - control not lost (19 691) 293 270 Total contributions by and distributions to shareholders of the company Balance at 30 April 2019

Gekonsolideerde Consolidated and en Afsonderlike Separate Cash Kontantvloeistaat Flow Statement Vir die jaar geëinding 30 April 2019 GROEP/GROUP MAATSKAPPY/COMPANY For the year ended 30 April 2019 Kontantvloei verkry uit/(aangewend in) 2019 2018 2019 2018 Net cash from/(used in) operations bedryfsaktiwiteite R '000 R '000 R '000 R '000 Kontantvloei verkry uit/(aangewend in) Cash flow generated from/ bedryfsaktiwiteite (274 348) 58 583 7 763 (2 862) (used in) operations Rente ontvang 86 28 Interest income Dividende ontvang 23 482 47 555 - - Dividends received Finansieringskoste 5 4 Finance costs Belasting betaal (2 451) (1 965) Tax paid (84 027) (67 409) - - Kontantvloei aangewend (5 144) (3 675) Cash Flow from investing activities in beleggingsaktiwiteite 35 058 5 398 (4 799) Aankope van eiendom, aanleg en toerusting (340 032) Purchase of property, plant and equipment Opbrengs met verkoop van 4 (1) Sale of property, eiendom, aanleg en toerusting (108 561) (66 869) - - Aankope van ontasbare bates 6 959 9 364 - plant and equipment Vooruitbetaling op grond (913) - (5) Purchase of intangible assets (Toename)/Afname in afbetalingsverkoops- - (1 933) - - finansiering en lenings (25 968) - - Prepayment on land Besigheidsamevoeging (1 383) - (Increase)/Decrease in instalment - 5 476 (4 000) (Toename)/Afname in beleggings (ingesluit (7 262) (8 000) sale financing and loans due filiale en ekwiteitsverantwoorde beleggings) (3 740) - Business combinations (1 368) - (Toename)/Afname in beleggins in (855) (1 222) (Increase)/Decrease in investments geassosieërde maatskappye 10 137 6 169 (including subsidiaries and equity (Toename)/Afname in - - accounted investments) lenings aan groepsentiteite - - (Increase)/Decrease in (Toename)/Afname van 185 092 - investments in Associates ander finansiële bates (34 562) (5 218) - (Increase)/Decrease in Afname in handelsdebiteure 577 (1 837) loans to group companies deur banke gefinansier 77 176 888 (112 097) (Increase)/Decrease in other financial assets Kontantvloei verkry uit/(aangewend in) finansieringsaktiwiteite 273 291 (54 480) 1 601 4 834 Decrease in trade receivables 188 (2 814) 19 1 122 financed by banks Toename/(Afname) in ander finansiële laste - - 1 100 (2 603) Cash Flow from/(used in) Toename/(Afname) in ander laste (661) (1 009) - financing activities Toename/(Afname) in lenings (2 534) (3 811) - - vanaf groepsentiteite (1 225) - - Increase/(Decrease) in Afname in lenings vanaf banke om handels- (2 950) - - - other financial liabilities debiteure te finansier (11 776) (5 998) - (11 928) Increase/(Decrease) in other liabilities Afname in finansiële bruikhuurverpligting 254 333 (11 902) (11 928) (4 872) Increase/(Decrease) in Aandele terugkoop (8 523) (80 014) (12 911) (11 508) loans from group entities Dividende betaal (nie-beherende belang) (157 053) (12 731) Decrease in loans from banks Dividende betaal (190 481) 11 526 to finance trade receivables (33 428) 18 Decrease in financial lease liabilities Netto beweging in kontant (199 004) 18 en kontantekwivalente vir die jaar (190 481) (12 713) Shares buy-back Kontant en kontantekwivalente Dividends paid (non-controlling interest) - begin van die jaar Kontant en kontantekwivalente Dividends paid - einde van die jaar Total cash movement for the year Cash and cash equivalents - beginning of the year Cash and cash equivalents - end of year 24

Aantekeninge tot die Notes to the Financial Finansiële State Statements 1. Basis van voorbereiding 1. Basis of preparation Die rekeningkundige beleid, wat toegepas is met die opstel van die The accounting policies applied in the preparation of the financial finansiële state, waarvan hierdie opgesomde finansiële state afgelei statements, from which these summarised financial statements is, is ingevolge ‘International Financial Reporting Standards’ en is in were derived, are in terms of International Financial Reporting Stan- ooreenstemming met die rekeningkundige beleid wat toegepas is in dards (IFRS) and are consistent with those accounting policies die voorbereiding van die vorige finansiële jaarstate. applied in the preparation of the previous annual financial statements. Die ouditeur het `n ongewysigde mening uitgespreek oor die finan- The auditor expressed an unmodified opinion on the annual financial siële jaarstate waarvan hierdie opgesomde finansiële state afgelei statements from which these summarised financial statements were is. `n Kopie van die finansiële jaarstate is beskikbaar by die maat- derived. A copy of the annual financial statements are available for skappy se geregistreerde kantoor. inspection at the company’s registered office. Hierdie opgesomde finansiële state openbaar nie noodwendig al die These summarised financial statements does not necessarily report inligting soos in die volledige finansiële state nie. Ten einde `n volle- on all of the information contained in the full set financial statements. dige begrip van die finansiële resultate te verkry, word aandeelhouers Shareholders are advised that, in order to obtain a full understanding aangeraai om `n afskrif van die finansiële jaarstate by die maatskappy of the financial results, obtain a copy of the annual financial state- se geregistreerde kantoor te bekom. ments at the company`s registered office. 2. Segmentontleding 2. Segment analysis Die bedryfsegmente is gebaseer op verslae en inligting nagegaan Management has determined the operation segments based on the deur die uitvoerende bestuur wat verantwoordelik is vir die strate- reports reviewed by the executive committee that are used to make giese besluitneming. Die bestuur beoordeel die besigheid vanuit `n strategic decisions. The committee considers the business from a produk en dienste oogpunt. product and service perspective. Die uitvoerende bestuur beoordeel die prestasie van die bedryfseg- The executive committee assesses the performance of the operating mente gebaseer op die wins voor belasting. Sekere bokoste word segments based on a measure of earnings before tax and non-con- nie geallokeer na die segmente nie, aangesien hierdie koste op `n trolling interest. Certain overhead costs are not allocated to seg- sentrale basis plaasvind. ments, as these costs are managed on a central basis. Die bedrae wat voorsien word aan die uitvoerende bestuur ten The amounts provided to the executive committee with respect opsigte van bates, word gemeet in ooreenstemming met finansiële to total assets measured in a manner consistent with that of the state. Bates word geallokeer na segmente op grond van die verskil- financial statements. These assets are allocated based on the lende bedrywighede. operations of the segments. Beleggings in aandele, geklassifiseer as finansiële bates beskikbaar Investment in shares, classified as available-for-sale financial assets, vir verkoop, word geag as deel van die Finansiering- en Beleg- are considered to be part of the Financing and Investing segment. gingsegment te wees. The amounts provided to the executive committee with respect to Die bedrae wat voorsien word aan die uitvoerende bestuur ten total liabilities are measured in a manner consistent with that of opsigte van laste word gemeet in ooreenstemming met finansiële the financial statements. These liabilities are allocated based on the state. Laste word geallokeer na die segmente op grond van die ver- operation of the segment. skillende bedrywighede. An analysis of the revenue of each segment is as follows: `n Ontleding van die inkomste van elke segment is as volg: Grain Graan Income received from the handling and storage of agricultural Vergoeding ontvang vir die hantering en opberging van `n land- products and the total revenue of grain sold including commission bouproduk teen die totale inkomste van graan verkoop, sowel as earned on grain marketing as well as grain derivatives. kommissie verdien met graanbemarking. Trading Handel Sales at the retail outlets, direct sales of farming inputs and general Verkope by handelswinkels, direkte verkope, boerdery-insette en commercial merchandise, agricultural machinery and equipment, meganisasiegoedere, onderdele en groot handelverkope deur Agrinet parts and repair services, as well as wholesale sales by Agrinet (Pty) Eiendoms Beperk en PE-BEE Agri Eiendoms Beperk. Ltd and PE-BEE Agri (Pty) Ltd. Finansiering en Beleggings Financing and Investments Toestaan van krediet aan landbouprodusente en graankopers. Credit extension to farmers and grain-off takers in the form of Hierdie inkomste sluit ook in kommissie ontvang vanaf die verse- production credit, long term loans and instalment sale financing. This keringsmakelaarsdiens aan die korttermyn-, langtermyn-, en oes income also includes commission received on premiums received versekeringsmark, asook inkomste uit beleggings. from insurance broker service to the short-term, long-term and crop insurance market as well income on investing activities. Tegnologie Landboukundige dienste, Inligtingsdienste, Laboratoriumdienste en Technology Netwerkdienste. Agri-services, Information Technology, Laboratory and Network services. Korporatief Hoofkantoordienste, Menslike Hulpbronne, Sekretariaat, Korporatiewe Corporate Bemarking, Interne Oudit en Direkteure. Head Office services, Human Resources, Secretarial services, Corpo- rate Marketing, Internal Audit and directors. Die omvang van intersegmentverkope is onbeduidend met betrekking tot totale verkope en word derhalwe nie apart getoon nie. `n Ontle- The value of intersegmental sales is immaterial in relation to total sales ding van die geografiese segmente word nie verskaf nie, aangesien and is therefore not disclosed separately. An analysis of geographical die geografiese verspreiding (soos gedefinieer in terme van IFRS) segments is not provided as the geographical distribution, as defined nie wesenlik is nie. in terms of IFRS, is not material. 25

Aantekeninge tot die Notes to the Finansiële State Financial Statements Vir die jaar geëinding 30 April 2019 Graan Handel Finansiering en Tegnologie Korporatief Konsolidasie Totaal For the year ended 30 April 2019 Retail Beleggings Technology Corporate Consolidation Total Totale segmentinkomste Grain Finansieringskoste R '000 Financing and R '000 R '000 R '000 R '000 Waardevermindering en waardedaling R '000 Investments Amortisasie Wins uit Ekwiteitsverantwoorde beleggings 223 062 R '000 Wins/(Verlies) voor belasting en nie-be- (38 757) 26 herende belang, na Aansporingskorting- en 2 589 394 257 424 85 889 139 989 (354 621) 2 941 137 Total segment income Agterskotskema (5 766) (33 587) (120 515) (2 811) (11 730) 123 373 (84 027) Totale bates - (14 262) (3 787) - (25 821) Finance costs Totale laste - (862) (535) (1 471) (16 816) (76 511) Kapitaaluitgawes - (58 459) (374) - - 748 Depreciation and impairment (27 883) (65) - (54 674) 813 - (288 719) Amortisation 590 446 11 187 (100 652) (550 970) 755 954 (116 697) (1 585 682) 1 949 631 Share of result in equity investments (458 859) 81 313 1 912 835 413 791 (1 656 361) Profit / (Loss) before tax and non-con- 11 865 194 765 (31 425) (796 891) (3) trolling interest, after Incentive rebates and 95 692 (232 007) 135 442 10 292 2 249 Deferred Payment Scheme 15 347 Total assets Total liabilities Capital expenditure Vir die jaar geëinding 30 April 2018 Graan Handel Finansiering en Tegnologie Korporatief Konsolidasie Totaal For the year ended 30 April 2018 Retail Beleggings Technology Corporate Consolidation Total Totale segmentinkomste Grain Finansieringskoste R '000 Financing and R '000 R '000 R '000 R '000 Waardevermindering en waardedaling R '000 Investments Amortisasie Wins uit Ekwiteitsverantwoorde beleggings 301 204 R '000 Wins/(Verlies) voor belasting en nie-be- (16 545) herende belang, na Aansporingskorting- en 2 722 169 181 932 70 766 149 205 (289 456) 3 135 820 Total segment income Agterskotskema (5 148) (45 416) (60 562) (667) (13 725) 63 813 (73 102) Totale bates - (13 600) 23 (22 938) Finance costs Totale laste - (548) (310) (2 641) (1 262) (3 271) (4 383) Kapitaaluitgawes - (557) (7) - - 11 365 Depreciation and impairment 54 112 11 284 81 - (20 896) - 23 052 Amortisation 436 924 46 467 4 621 (61 252) (347 038) 975 546 (1 674 897) 2 097 914 Share of result in equity investments (701 508) 177 472 75 354 2 107 515 462 847 (1 513 030) Profit / (Loss) before tax and non-con- 17 499 (159 318) (32 897) (735 116) - trolling interest, after Incentive rebates and 51 356 94 755 2 160 16 923 6 817 Deferred Payment Scheme Total assets Total liabilities Capital expenditure

Raad van Direkteure Mnr/Mr. JJ Viljoen (Hansie) Board of Directors Voorsitter (Wyk 1: Hoofkantoor) Chairperson (Ward 1: Headquarters) Mnr/Mr. FE Marx (Frans) Mnr/Mr. PF Delport (Piet) Ondervoorsitter (Wyk 2: Wyk 3: Wolmaransstad/Makwassie) Schweizer-Reneke/Migdol. Vice Chairperson (Ward 2: Voorsitter: Sosiaal-, Etiese- Wolmaransstad/Makwassie) en Vergoedingskomitee Mnr/Mr. PA Roux (Petrus) Ward 3: Schweizer-Reneke/Migdol. Wyk 4: Chairperson: Social, Ethics Bloemhof/Hoopstad and Remuneration Committee Ward 4: Bloemhof/Hoopstad Mnr/Mr. GT Geldenhuys (Thean) Wyk 5: Vryburg/Reivilo Ward 5: Vryburg/Reivilo Mnr/Mr. GL Malherbe (Gert) Mnr/Mr. A Botha (Anton) Wyk 6: Wyk 7: Christiana/Hertzogville Wesselsbron/Bultfontein Ward 6: Voorsitter: Oudit-, Risiko- en Christiana/Hertzogville IT-komitee Ward 7: Wesselsbron/Bultfontein Chairperson: Audit, Risk and IT Committee Dr. HD van Schalkwyk (Herman) Me/Mrs. D Bester (Debbie) Groep Hoof Groep Hoof Uitvoerende Beampte Finansiële Beampte Group Chief Group Chief Executive Officer Financial Officer 27

Verslae beskikbaar op / Reports available on www.suidwes.co.za Volhoubaarheidsverslag / Sustainability Report Korporatiewe Bestuursverslag / Corporate Governance Report Verklaring van Oudit-, Risiko- en IT-komitee / Declaration of the Audit, Risk and IT Committee Onafhanklike Ouditeursverslag / Independant Auditor`s Report Uit die lede, From the members, Vir die lede For the members @suidwescompany @SuidwesLandbou Suidwes @suidweslandbou www.suidwes.co.za Geregistreerde adres: Registered address: Voortrekkerstraat, Voortrekker Street, Leeudoringstad, Leeudoringstad, 2640 2640 Posbus 5, PO Box 5, Leeudoringstad, Leeudoringstad, 2640, 2640, Suid-Afrika South Africa Tel: 018 581 1000 Tel: 018 581 1000