Suidwes Landbou Annual Report 2017

table of contents Suidwes Group Structure 2 Photos of the Executive Committee 3 Photos of the Board of Directors 4 Suidwes Group Structure 6 Suidwes Group Entities 7Suidwes Holdings (RF) Proprietary Limited Five Year Financial Overview 8 Chairperson’s Report 10 Managing Director’s Report 12 Corporate Governance Report 19 Sustainability Report 26 Financial Statements 38 Administrative Information 52

SUIDWES GROUP STRUCTURE Kimama Investments 9.92% 89.36% Individual producers 53 (Pty) Ltd 0.72% B Shares A Shares Holdings RF Katlego Investments (Pty) Ltd Company (Pty) Ltd 100% A Shares Individual producers C Shares Investments (Pty) Ltd 100% Agriculture (Pty) Ltd Botselo Mills Suidwesfin (Pty) Ltd (100%) (Pty) Ltd (34.90%) Suidwes-Brokerage (Pty) Ltd (100%) Africum Commodities (Pty) Ltd (99%) Suidwes IT-Solutions (Pty) Ltd (49%) Terratek International (Pty) Ltd (100%) Agrinet (Pty) Ltd (83.75%) NviroTek Laboratories (Pty) Ltd (80%) Network Embedded Technologies (Pty) Ltd (58%) Raddix Group (Pty) Ltd (33%) Suidwes IT-Solutions II (Pty) Ltd (49%) Africum Mills (Pty) Ltd (100%) PE-BEE Agri (Pty) Ltd (Protek) (51%) Agrifriend Equipment (Pty) Ltd (51%) Agrifriend Namibia (Pty) Ltd (51%) Agrifriend Technology (Pty) Ltd (51%) Agrifriend Commodities (Pty) Ltd (51%)2

EXECUTIVE COMMITTEE Dr. Herman van DerÉK Linde Jannie Schalkwyk Louw Group Chief Legal Officer Group Chief Executive & Group Secretary Chief Executive Officer Officer: B JurisBCom Agricultural Economics LLB Mechanisation &BCom(Hons) Agricultural Economics MBA Agrifriend EquipmentMCom Cum Laude - Agricultural Attorney admitted to the HighEconomics Court of SA BTech (LogisticsPhD - Agricultural Economics and Electrician) Membership ofMembership of professional professional association:associations: Law Society of South Africa• South African Society for Agricultural Extension Patrick• International Food and Nelissen Agribusiness Management Association Chief Executive• International Association of Officer: Retail Agricultural Economists• Agricultural Economic BA LLB Association of South Africa Debbie Bester Group Chief Financial Officer, actingB.ComptB.Compt(Hons)CA (SA)Membership of professionalassociation:SAICA George Jan Grobbelaar Potgieter Chief Executive Officer: Chief Executive Officer: Grain Financing, acting BSc Agric-Agricultural EconomicsB.Compt BSc Agric(Hons) Agricultural EconomicsB.Compt(Hons) MSc Agricultural EconomicsCA (SA) MBAMembership of professionalassociation:SAICA 3

BOARD OF DIRECTORS3 UK5 6 4WORD NOG GENEEM 1 3 4 5 6 Mr. A Botha Mr. JJ le Roux Mr. G Potgieter Mr. GL Malherbe Director:4 Finance 1 Mr. JJ Viljoen Chairperson of the board of directors

BOARD OF DIRECTORS 107 UK 8 9WORD NOG GENEEM 2 7 8 9 10Dr. HD van Schalkwyk Ms. B Mathews Mr. GT Geldenhuys Mr. PF Delport Managing director Chairperson: Audit, Chairperson: Social, Risk and IT Committee Ethics and 2 Remuneration Mr. FE Marx Committee Deputy chairperson of the board of directors 5

SUIDWES GROUP STRUCTURE Fro m the Me mbers, for the Me mbersSUIDWES GROUP True to Suidwes’ motto, “From the members, for the members”, we offer support and expertise to members andclients, through specialised and dedicated departments, operations and staff.Suidwes Investments Proprietary Limited maintains two strategic pillars, namely, Suidwes Agriculture ProprietaryLimited and Africum Limited, through which members and clients are ensured of excellent growth, service and thedelivery of superior products at the best value.Suidwes Agriculture possesses the expertise to know what you as the centre of your business needs, and offers youthe necessary knowledge and support through our specialised and dedicated operations:SUIDWES GRAIN S uidwes R E TA I L Suidwes Grain, with 16 grain silos, four grain The 20 retail branches of Suidwes Retail are distributedbunkers and two silo bag depots, works in a dynamic conveniently and strategically in the Suidwes serviceenvironment on the national grain markets, amongst area and serve a wide variety of agricultural productswhich SAFEX, and offers marketing alternatives, price under one roof, thereby meeting all your needs.management stability and peace of mind regarding thestorage and marketing of your product. AGRICAPITAL AFRICUM COMMODITIES Suidwes Agriculture’s Financing division, AgriCapital, Africum Commodities is involved in trading grain and oil offers agricultural financing for the future. Your seeds in the physical market. financing needs are analysed from 12 offices, and high-quality, personal service provides you with advice on the management of your risks.6

SUIDWES GROUP ENTITIES MSUAIKDEWLAREYS NviroTek Laboratories: A national, SPYROGEOMETRIC Agrifriend Equipment: A variety of CASE,independent laboratory that offers a variety of Krone and Kühne brands, implements and Gill Sans MT Bold spares, supported by excellent after-sales analyses on soil, leaves, animal feed, water, service and expertise, are provided by 10 fertilizer, lime and growth material. Their Suidwes BrokeraCgeM: CoYndKucts price risk service meets international standards. management fo0r it2s0 c1l0i0en0ts by trading workshops and 17 spares centres. instr2u00 me00nts6200 on20 market 80 the JSE. 0 20 20 60 Agrifriend Commodities: Focuses on Agrinet: One of the leaders in irrigation Raddix: Specialises in comprehensiveobtaining and trading grain in the Northern equipment supplies quality brands for financial services, including short-term, and Eastern Cape, and exporting lucerne. example, Nexus, Kaufmann, Power Master, credit life and harvest insurance, financial Speroni and Pascali, via warehouses and national distribution networks in South planning and medical aids. Africa and sub-Saharan Africa.Protek: A young, rapidly growing, dynamic Africum Mills: The mill is located in NWET: The information technology company company in the residential and garden Wolmaransstad and offers exchange milling supplies and maintains data communication market in South Africa, Namibia and Botswana, that focuses on pest control, meal and Super and Special meal for the networks over a wide area and supplies, fertilizer and other specialty products. Maatla brand. installs and maintains computers and software by means of a 24-hour helpline.Agrifriend Technology and Agrifriend Namibia: Supply precision farming and Terratek: Offers scientific observations, analysesenergy-saving products and technology to clients in the Eastern and Northern and recommendations to help you manage your farming enterprise successfully, thereby increasing Cape as well as in Namibia. your profit margin. Terratek provides advice about crops, soil science, animal husbandry, the economics of farming, as well as geographical information systems (GIS). 7

SUIDWES HOLDINGS (RF) PROPRIETARY LIMITED FIVE YEAR FINANCIAL OVERVIEW INCOME STATEMENT 2017 2016 2015 2014 2013 Income R ‘ 000 R ‘ 000 R ‘ 000 R ‘ 000 R ‘ 000 Operating profit 2,708,187 2,607,973 2,849,107 2,887,304 1,895,377 Finance costs 40,301 169,313 138,122 98,708 167,836 Profit after finance costs (57,833) (42,177) (36,906) (38,935) (43,592) Profit/(Loss) from equity accountable investments (17,532) 127,136 101,216 59,773 124,244 Fair value adjustment Loss on sale of assets of disposal group classified as held for sale 603 (5,163) (5,167) 6,250 7,960 Profit/(Loss) from continuing operations - 1,691 (70) - - before tax, Incentive Rebates and Deferred Payment Scheme - - (91) - - Net Incentive Rebates and Deferred Payment Scheme (16,929) 123,664 95,888 66,023 132,204 Gross Incentive Rebates and Deferred Payment Scheme Fair value adjustment (12,927) (16,743) (35,778) (13,931) (34,500) (17,383) (22,532) (49,888) (18,218) (41,791) Profit/(Loss) from continued operations after Incentive Rebates and Deferred Payment Scheme, before tax 4,456 5,789 14,110 4,287 7,291 Tax (29,856) 106,921 60,110 52,092 97,704 Profit/(Loss) from continuing operations 12,158 (22,594) (15,751) (7,863) (13,620) (17,698) 84,327 44,359 44,229 84,084 Discontinued operations Loss from discontinued operations (11,576) (11,032) - - - Profit/(Loss) for the year (29,274) 73,295 44,359 44,229 84,084 Attributable to: (20,347) 67,947 43,043 35,690 45,665 Shareholders of the holding company (8,927) 5,348 1,316 8,539 38,419 Non-controlling interest (29,274) 73,295 44,359 44,229 84,084 STATEMENT OF FINANCIAL POSITION 510,037 547,906 493,418 456,631 318,767 Ordinary shareholders’ interest 43,458 51,028 13,915 2,712 300,761 Non-controlling interest in equity 553,495 598,934 507,333 619,528 Total equity 1,383,402 1,219,539 1,162,960 459,343 1,626,868 Total liabilities 1,936,897 1,818,473 1,670,293 761,753 2,246,396 Total assets 1 221,096 RATIOS 28,58% 32,94% 30,38% 37,60% 27,60% Equity to total assets 42,70% 36,83% 44,05% 23,10% 49,20% Interest-bearing liabilities to total assets 28,72% 30,24% 25,57% 39,30% 23,20% Interest-free liabilities to total assets 100,00% 100,00% 100,00% 100,00% 100,00% Earnings before Incentive Rebates and Deferred Payment 0% 18,3% 20,4% 16,9% 32,0% Scheme on ordinary shareholders’ interest 0% 6,8% 5,7% 5,4% 5,9% Return on assets, before Incentive Rebates and Deferred Payment Scheme (34,11) 112,86 71,48 58,80 65,60 Earnings per share (cents) 0,00 15,00 10,00 10,00 - 20,00 13,00 - - - Dividends per share (cents) - interim 20,00 28,00 0,00 Dividends per share (cents) - final 10,00 10,00 Total dividends per share (cents) 855,19 918,69 516,70 819,22 758,15 Net asset value per share (cents) 0,7 4,5 3,9 3,74 2,5 Interest coverage (number of times) - 4,03 - 7,15 5,88 Dividend coverage (number of times)8

SUIDWES HOLDINGS (RF) PROPRIETARY LIMITED FIVE YEAR FINANCIAL OVERVIEW (CONT.) Net profit/(loss) Total equity Earnings per Net asset value attributable to share per shareshareholders of the holding company2017 - (R20.3 m) 2017 - R553.5 m 2017 - (34.11) cents 2017 - 855.19 cents2016 - R67.9 m 2016 - R598.9 m 2016 - 112.86 cents 2016 - 918.69 cents2015 - R43.0 m 2015 - R507.3 m 2015 - 71.48 cents 2015 - 819.22 cents2014 - R35.7 m 2014 - R459.3 m 2014 - 58.80 cents 2014 - 758.15 cents2013 - R45.7 m 2013 - R619.5 m 2013 - 65.60 cents 2013 - 516.70 centsTotal dividend per Equity to total Earnings before share (cents) assets Incentive Rebates and Deferred Payment Scheme on ordinary shareholders’ interest2017 - 20 cent 2017 - 28.6% 2017 - 0%2016 - 28 cent 2016 - 32.9% 2016 - 18.3%2015 - 10 cent 2015 - 30.4% 2015 - 20.4%2014 - 10 cent 2014 - 37.6% 2014 - 16.9%2013 - 0 cent 2013 - 27.6% 2013 - 32.0% Interest-bearing liabilities Year 2013 Short term 2014 Long term 2015 2016 9 2017 0 200 400 600 800 1000 1200 R million

ChairPERSOn’s Report The 2016/2017 financial year was a year of unpredictable extremes. Producers struggled with the consequences of one of the driest years that the industry has ever experienced. Crops were poor, stock had to be fed and the morale amongst producers was low. Initially, the new production season got off to a slow start. After the first rains, cultivation was subjected to severe wind damage and producers had to do their utmost to limit their Mr. JJ Viljoen losses. Large patches of land had to be replanted after follow-up rains. However, when the heavy rains arrived, nature reacted instantaneously and the world turned into a paradise. As the saying goes, “the garden was in full bloom”. According to the latest crop estimates, we will have record harvests. All we can do is give quiet thanks and acknowledge that we are mere humans. As for Suidwes, these events had the effect that we received only 40% of the usual harvest, using only 30% of the available silo capacity. Grain buyers became concerned that they would not have access to the required grain to operate at capacity, and forward supply contracts were fixed ahead of time. Maize prices fluctuating by about R3,000 per ton over a relatively short period. Suidwes’ management faced massive losses due to grain buyers’ inability to honour supply contract payments and had to make alternative plans to salvage the situation. The challenge facing us in the new year is, given the large harvest coupled with low prices, to make the right production decisions for the next production season. The sustainable production capacity of customers is important to Suidwes. Various strategies and alternatives will be considered in conjunction with individual customers. Another major shift for Suidwes involved the replacement of the New Holland agency with the CASE agency. Placing mechanisation under the Agrifriend umbrella, for both the traditional Suidwes and the Agrifriend areas, presented economies of scale with better service and support for our clients. Another highlight is Suidwes’ acquisition of a 34.9% share in Botselo Mills, which presents a number of new opportunities. Suidwes now plays a major role in the grain value chain. However, on the political and economic fronts, matters are still not proceeding smoothly. The dismissal of the Minister of Finance and his deputy had a ripple effect on the international community and caused two rating agencies to downgrade South Africa to junk status. The exchange rate reacted to these downgrades but strengthened again due to a weaker dollar. Exchange rate prospects are highly variable and will be influenced by a further downgrade, with consequential withdrawal of international investments, the local political situation, international conditions and, in particular, the North American interest rate. There are stronger indications that the rand, even though it is variable, will stabilise at a higher level. It is interesting to note that while many people dismiss the contribution made by agriculture to the gross domestic product, many economists maintain that the big harvest will boost the South African economy. The argument is that the multiplier effects of a big harvest, through indirect links between agriculture and other industries, make a considerable contribution by increasing agriculture’s contribution to the economy to more than 20%, which is indeed significant. The latter confirms that agriculture is important to the economy and that Government should avoid emotional political announcements about land ownership.10

Current statistics indicate that investment in agriculture is low. Uncertainties cause land owners to make only essentialinvestments. This situation weakens the productive foundation of agriculture, which, in turn, has a negative effect onthe competitiveness of agriculture. It is important that all role players in agriculture are involved in discussions andforums where these matters are discussed. Organised agriculture must also consider whether the channels they haveat their disposal for addressing these matters are effective.Although weaker than the previous year, the Suidwes Group performed relatively well, despite circumstances. A lossof R320,000, before incentive rebates and deferred payment scheme and after tax, was realised for the year ended30 April 2017. Everything possible was done to limit the loss and the changes that were made as a result of events thattook place, placed Suidwes on a completely new trajectory. In light of these events, it is thus with pride that Suidwescan honour its agreement with its members, by declaring an incentive rebates of R17,83 million. Suidwes is healthy tothe core and is positioned to shift into a higher gear.A customer commitment survey, that was completed in April 2017, indicated a generally positive attitude towardsSuidwes amongst clients and members. According to the independent consultancy group that conducted the survey,Suidwes’ results compare very well with that of other agricultural businesses and are even better in most cases.Instances of negative comments by individuals correspond with criticism that had been expressed during somemeetings.Suidwes’ members are the owners of the business and it is good that they raise issues that we should attend to. It isalso important that the management and board of directors regularly give feedback to Suidwes’ owners on progressbeing made. To do this, we have created opportunities for discussions on several occasions during the year. Weappreciate the feedback that was given and we will use this feedback to even further improve Suidwes.Suidwes’ management is working hard to implement its strategic plan. I have the utmost confidence in managementto do this and already experience the positive effects of decisions that have been made. Suidwes is heading fornew heights. Members have the opportunity to share in the growth, which are based on our cooperative culture,established over more than a century and that is reflected in our motto - From the members, for the members. Myco-directors and I are excited about the new energy, ideas and plans and, together with management, we look forwardto a bright future.At this early stage, indications are that the next production season will experience normal weather conditions. Pricerisk is one variable that will have to receive consideration when production decisions are made. In the end, we aresubject to the will of our Creator, and nothing is possible but by His will.After a particularly challenging year, it is my pleasure to thank everyone who forms part of Suidwes for the mannerSuidwes has been managed, supported and guided. It attests to an exceptional team. It is a privilege to be a part of it.JJ ViljoenChairPERSON of the board of directors:Suidwes group 11

MANAGING DIRECTOR’S REPORT Due to a particularly dry year, large fluctuations in market prices of DR. HD van Schalkwyk maize, coupled with debtors who experienced a shortage of funds, Suidwes experienced a challenging financial year. The Group realised a loss after tax of R315,000 before incentive rebates and deferred payment scheme for the year ended 30 April 2017 (2016: R106,86 million profit). Incentive rebates and deferred payment to the value of R17,38 million (2016: R22,53 million) were announced for the year ending 30 April 2017. The loss was caused mainly by R94,2 million provisions for bad debt in relation to grain purchasers. The profit (loss) before earnings, after incentive rebates and deferred payment is directly attributable to the following segments of Suidwes Group’s businesses: 2016 2017 R’000 R’000 Segment Corporate Cost (50,334) (55,841) Financing and Investments Grain 81,985 72,192 Retail Technology 48,461 (76,787) Total 4,844 7,598 10,129 10,620 95,085 (42,218) Fro m the Me mbers for the Me mbers12

• GRAIN •During the past year, the Grain Division was once again confronted by less thanaverage grain production, relatively low grain receipts and extensive fluctuation ofgrain prices. Under these conditions, it was not unexpected that the Grain Divisionwas unable to make its normal contribution to the Group’s results. The Division endedthe 2016/2017 financial year with a loss before tax of R76,788 million, comparedto a profit of R48,461 million in the previous financial year. This loss is mainly theconsequence of low grain volumes and bad debt, which arose due to some buyers ofwhite maize being unable to honour their purchase contracts at the agreed prices afterthe price of maize fell sharply in January and February 2017.Suidwes Silo Operations realised a profit of R5,146 million for the 2016/2017 financial year,compared to a profit of R29,274 million in the previous year. The cause was mainly lower grainreceived, which was about half the average grain received in the last ten years.The performance of the Suidwes Grain Marketing department, which comprises Africum Commodities and SuidwesBrokerage, realised a loss of R76,787 million compared to a profit of R48,461 million in the previous financial year.Suidwes Brokerage achieved a profit of R8,537 million. Africum Commodities, in contrast, suffered a considerableloss of R85,172 million due to bad debt write-offs that were the result of unexpected and drastic reductions in themarket price of maize in early 2017 and relatively low trading volumes. Unfavourable climatic conditions also madea contribution to these losses, evidenced by considerable claims in relation to Africum Commodities’ Force Majeureproduct.Africum Mills ended the 2016/2017 financial year with a loss of R2,822 million, compared to a profit of R1,730 millionin the previous financial year. The loss can mainly be ascribed to advance pricing of white maize purchased fromAfricum Commodities and shortage of funds caused by the price drop mentioned above. The meal extraction for Supermeal was, on average, 75.71% of which approximately 77% was rendered as exchange milling meal and 23% was soldcommercially.During the past financial year, the Grain Division’s business was expanded by the addition of Agrifriend Commodities(Pty) Ltd to the Division. Agrifriend Commodities (Pty) Ltd was established to expand market share to the NorthernCape. In the first year of operation the company showed a loss of R2,477 million. However, the prospects and potentialfor the 2017/2018 financial year seem to be positive. The Grain Division’s prospects for the financial year ahead are bright due to expectations of above-average receipts of grain and trading volumes. The Grain Division should thus once again be able to make its usual contribution to the Group’s profitability. However, greater competition in the grain market exerts pressure on margins and the expected above average grain harvest will pose certain challenges in relation to provision of sufficient storage capacity. 13

• A G R I CA P I TAL • AgriCapital realised a profit of R28,2 million, compared to R32,5 million the previous year. Factoring the debtors’ book to Landbank (refer to 2013/2014 financial year) presented AgriCapital with an opportunity to reduce its concentration risk considerably. Financing is offered in seven of the nine provinces, namely North West, Free State, Mpumalanga, Limpopo, Northern Cape, KwaZulu-Natal and Gauteng. The area is served from 12 offices. The Kimberley office was opened during the year. Financing clients all share in Suidwes’ incentive rebates and deferred payment scheme - this has lead to Suidwes’ shareholder base expanding. The debtors’ book amounted to R4,07 billion on 30 April 2017, compared to R3,6 billion in 2016. By year end, approved facilities amounting to R220 million had not realised. Carry-over debt amounts to R188 million, compared to R102 million in 2016. Sufficient provisions for possible bad debt to the value of R27,5 million have been made, compared to R15,6 million in 2016. Total provision for bad debt amounts to 1.6% of the debtors’ book. Products that have been developed over the years have made it possible for AgriCapital to accommodate most of the clients after the difficult conditions of the previous years. The concept of a private banker was introduced during the year. It will be rolled out to all the AgriCapital offices during the 2017/2018 financial year. The purpose of AgriCapital is to serve as the financing partner of the farmer. • R ETA I L • Though the impact of the drought still influenced the turnover of the Division for the first six months of the year, good rain resulted in the backlog being eliminated in the subsequent months. The turnover of the branches in the predominantly livestock areas have not yet recovered completely, particularly because of the scaling down of herds. Because normal purchases for tax purposes were not done in February 2017, the budget for direct sales was not achieved. Though the contract with Gavilon was only finalised in August 2016, 30,195 tons of fertilizer were sold for the year. Good fertilizer prices, which were considerably below market prices, were passed on to clients. New retail stores were opened in Delmas and Bothaville, while upgrading of present stores is receiving continuous attention. The upgrading of Louwna’s store signals Suidwes’ commitment to further consolidate its footprint in rural areas. Delivery of products to remote branches remains a challenge, especially considering the deterioration of the roads. The Retail Division plays a very important role in meeting these challenges and ensuring service to our clients. Although the core business of Retail remains agriculture, we continuously investigate other opportunities to ensure the sustainability of the Division, especially in difficult agricultural years. The expansion of the retail business and client base has already rendered good dividends and new opportunities. Our staff and clients remain our most important assets and we continuously attempt to develop the best talent and create an environment in which staff wishes to perform well and provide our clients with world-class service.14

• M EC H AN I SAT I ON •The Mechanisation Division was affected negatively by the adverse agricultural conditions of the past three years.Producers made minimum purchases of mechanisation equipment, which is reflected in the 16.6% reduction inpurchases.The workshops sales hours were more or less the same as in the previous year. At present, much emphasis is placedon productivity in the workshops and on assisting mechanics to sell their services profitably.Sales of spare parts increased by 4.76% against the previous year, which is typical of a time when producers would rather repair their equipment, than replace them with new units. The turnover of the Division was 7.22% lower than the previous year. The total loss is, however, 5.46% lower compared to 2016. In light of the termination of the New Holland Agency by CNH, Suidwes elected to switch over to the CASE agency and to trade under the Agrifriend Equipment banner (in which Africum Limited has a majority interest). The merger will eliminate costs and ensure that trading will be more purposeful. • AGRIFRIEND EQUIPMENT PROPRIETARY LIMITED • At the start of its term with Africum as shareholder, Agrifriend Equipment was forced to make the important strategic decision to change its mechanisation brand. Changing from the Landini brand to the CASE brand was a strategic decision that is already paying dividends, though it had a negative effect on the financial results of the business in the short term. The total turnover of Agrifriend Equipment increased by 11.9% against the previous year. Sales of mechanisation equipment increased by 6,9%, despite the anticipated reduction in sales of Landini products. The sale of spare parts increased by 29% in the period. Losses in the workshop decreased by 66% - this can be attributed to improved productivity. With the incorporation of Suidwes Agriculture’s mechanisation branches with accompanied benefits, we look forward to a profitable business in the near future. • A G R I NET P R O P R I ETA R Y L I M I TE D • Agrinet operates in an extremely competitive environment, where the opposition is offering more and more imported products. The continuing drought, shrinking consumer spending and confidence, as well as a deteriorating socio-political environment pose many challenges.Nonetheless Agrinet continued building on its solid foundation as a reliable provider of quality products and once againensured a record result for its shareholders. The nett profit before tax increased by 34% compared to the previousyear. An integral part of this achievement is the expansion and establishment of exclusive, quality brands offered tothe market. Asset management was prioritised during the year, with considerable focus on optimising stock levelswithout compromising service delivery to business partners. In this way cash flow, as well as service delivery to clients,improved dramatically. Effective costs management made a considerable contribution to the better nett results. 15

• A G R I NET P R O P R I ETA R Y L I M I TE D CONT I N U E D • Expenditure management includes redefining business processes in order to limit costs, accompanied by improvements in risk management. The company strives to be a solution-driven distribution channel of choice for its product offering in Africa”, while providing an acceptable yield for its shareholders. A total of R10,8 million was paid to customers as part of the loyalty and product-specific rebate scheme. The personnel corps of Agrinet is very important to achieving the company’s vision and achieving its objectives. The dedication and initiatives of employees played an instrumental role, sometimes in difficult conditions, to support the company in achieving the record result of the past financial year. The market once again showed that a sustainable and forceful Agrinet plays an extremely important role in the value chain of the agricultural and industrial markets in which it finds itself. • N V I R OTE K LABO R ATO R I ES P R O P R I ETA R Y L I M I TE D • The company generated a good profit, which is in line with the previous year. This is directly attributable to increased turnover from laboratory analysis, which is the core business of the company. The laboratory posed a growth in volume of 20.5%, of which the greatest contribution was from soil samples. The nett profit percentage for the year amounted to 29.4%. Prices and margins, however, remain under pressure, which makes effective cost management, in an environment where the exchange rate plays a significant role, essential. NviroTek’s client base and product offering expanded rapidly over the previous couple of years and resources had to be improved to remain up to date. Capital was appropriated during the year to replace certain critical equipment and computers. During the last quarter, a focused action was launched to prepare systems for international accreditation, which should be finalised in the financial year ahead. The company is cash positive and thus has the reserves to invest in new opportunities. • P E - BEE A g r i P R O P R I ETA R Y L I M I TE D ( P R OTE K ) • Despite the adverse economic climate, water restrictions that were in force throughout the country for a large part of the year, as well as the present drought conditions in the Western Cape, which had a great effect on sales in the industry, Protek succeeded in growing its turnover by 20% for the year and achieving a nett profit of R10,4 million before tax. The nett profit percentage increase was 37% compared to the previous year. Several innovative products that were introduced, including changes to packaging and package sizes, unique products, the establishment of new sales channels and effective service delivery to distribution partners, contributed to the successful growth of Protek’s market share.16

• R A D D I X G R O U P P R O P R I ETA R Y L I M I TE D •Raddix’s turnover increased by 114% in the 2016/2017 financial year against the corresponding period of the previousfinancial year. The Group’s profit before tax increased by a further 228%.The significant growth of Raddix not only positions the Group for further growth through both market penetration andconsolidation of existing markets, but also for geographical expansion into new markets.At present, Raddix’s core focus is still the agricultural sector, though the core business will, in future, be supplementedby expansion in the commercial market and concentration on services businesses.Raddix expanded its basket of services by appointing financial advisors, which further expands the extent of financialservices.Improved agricultural conditions turned the sentiments of Raddix’s client base more positive, and created opportunitiesfor further market expansion in rural areas. The unique value proposition of Raddix, to protect and expand the role ofquality advice in South Africa, is becoming ever more valuable in light of significant regulatory changes on the legalhorizon.• BOTSELO M I LLS •The Suidwes Group acquired a 34.9% interest in Botselo Mills,which is a dynamic milling and maize processing plant locatedin Delareyville. The transaction fits in perfectly with thelong-term vision of Suidwes to increase its footprint and tobecome more involved in the maize value chain. 17

• I N CONCL U S I ON • The past financial year was one of extremes: from the worst drought to record crops. This change caused major fluctuations on the grain markets, which was the main cause for the Group making an after-tax loss of R315,000 from continued activities, before incentive rebates and deferred payment. If there had not been a write-off of bad debt by the Grain Division, the Group would have posed a profit of R65,628 million before tax and before incentive rebates and deferred payment. This profit would have realised despite Suidwes experiencing one of the most challenging production seasons in its history. This is testimony that Suidwes is healthy to the core. The loss placed the focus on management measures and controls that are necessary to prevent something similar happening again in the future. The systems and structures of Suidwes are important for a well-functioning environment. We are at present attending to all facets of the business in order to ensure that we render the best possible service, reduce risk and create the best value for Suidwes members. On behalf of management, I would like to thank the board of directors and the co-owners of Suidwes for their support and loyalty in a particularly challenging year. Suidwes is positioned to perform well in the new financial year. We are continuously working to identify problems, with the aim of eliminating them and providing our clients with bigger benefits and better service. Suidwes belongs to its members and it is only through cooperation, proper communication and hard work that we can position our business even more as a respected and valued role player. As Suidwes management, we look forward to achieving this goal. Dr. HD van Schalkwyk Suidwes Group Chief Executive Officer Fro m the Me mbers for the Me mbers18

“The land is my lifestyle and my livelihood, but it’s also my legacy.” ~ UNKNOWN 2CORPORATEGOVERNANCE REPORT 19

CORPORATE GOVERNANCE REPORT Suidwes Group remains committed to maintaining and promoting good corporate management practices. In this regard, the Group strives to adhere to the guidelines of the recently accepted King IV Report. • BOA R D OF D I R ECTO R S • C omposi t io n The board of directors of Suidwes Holdings (RF) Proprietary Limited (“Suidwes Holdings”) comprises a majority of non- executive directors who are elected by shareholders on the ward principle and who retire after three years in rotation in accordance with applicable statutory stipulations. The two executive directors, namely the managing and financial directors, are appointed by the non-executive directors. The respective boards of directors of Suidwes Investments Proprietary Limited (“Suidwes Investments”), Suidwes Agriculture Proprietary Limited (“Suidwes Agriculture”) and Africum Limited (“Africum”) comprise of the same directors as Suidwes Holdings. None of the non-executive directors of Suidwes Group has an employment contract with any company in the Group. It is, however, expected of non-executive directors to enter into a directors’ contract with the Company. This contract prescribes aspects relating to their responsibilities under King IV, their obligations regarding the ethical code of conduct, conflict of interest, confidentiality, attendance of meetings, remuneration of directors and performance appraisal. The composition of the mentioned boards of directors, as on 30 April 2017, is indicated in the respective directors’ reports of the companies. No director has been disqualified or declared incompetent to fulfil the position, as stipulated by the Companies Act (2008). I n depe n de n ce The independence of the board of directors in relation to executive management is ensured by the following guidelines: • The chairperson of the board of directors has no executive functions and the roles of chairperson and Managing Director (Chief Operating Officer) are separate. • With the exception of the Managing Director and the Director: Finance (Chief Financial Officer), the board of directors comprises only of non-executive directors who are all independent. The remuneration of non-executive directors is not linked to the Group’s financial performance. • The composition of the Audit, Risk and IT Committee is done in accordance with the stipulations of the Companies Act (2008) and the King IV guidelines. • The chairs and all the members of the committees of the board of directors are non-executive directors. • No individual has unlimited decision-making powers. • All the directors have unrestricted access to the advice and services of the Group Secretary (Group Chief Legal Officer) and to all information, records, documents and property of the Group. The directors are also entitled to seek independent professional advice relating to the operations of the Group.20

R ole a n d f u n c t io nThe board of directors are responsible for oversight, control and strategy of the Group, which includes the following:• Determining and reconsidering the Group’s strategy;• Approving budgets and real capital expenses;• Monitoring operating results against budgets;• Evaluating the financial standing of the Group; and• Evaluating the performance of executive management.Decision-making about all matters of material importance and effective control over the Group, as well as ultimateresponsibility for it, rests with the board of directors.Operational decision-making, exclusive of certain powers, has been delegated to the managing director in accordancewith a formal policy for the Delegation of Decision-making Authority. The Managing Director furthermore delegatescertain operational powers to the executive management. The Delegation of Decision-making Authority is administeredcentrally by the Secretariat and establishes the principle that responsibility goes hand-in-hand with delegated authority.Newly appointed directors are comprehensively informed about the Group’s functioning, activities and achievementsby means of a formal orientation process, in order for them to be capable of functioning optimally as quickly as possible.R em u n erat io nThe directors’ remuneration consist of the following three components:• A fixed annual honorarium that is recommended by the Social, Ethics and Remuneration Committee and approved by the shareholders at the Annual General Meeting. Remuneration is paid quarterly;• Remuneration per kilometre for official trips, based on AA rates; and• A daily allowance for time and expenses related to official business of the Group.Given the drought and challenges that it poses for the Group, the directors and executive management did not acceptincreases in remuneration for the 2017 financial year.M ee t i n gsThe board of directors meet at least four times ayear. Additional meetings are scheduled as the needarises. Directors are at liberty to propose items forinclusion in the agendas of meetings of the boardof directors and frank discussions of all mattersare encouraged. The board of directors’ need forinformation has been clearly defined. Agendas ofmeetings and applicable proposals are providedto the directors in good time beforehand, inorder for them to have sufficient time to preparethemselves thoroughly. 21

Attendance of meetings Attendance of meetings - May 2016 to April 2017 DATE OF MEETING 13/07/2016 15/08/2016* 29/11/2016 2/03/2017 20/04/2017* 26/04/2017 JJ Viljoen (Chairperson) P P P P P P FE Marx (Deputy chairperson) P P P P P P A Botha (Term started 21 September 2016) - - P P P P JHT Delport (Term ended 21 September 2016) P A - - - - PF Delport P P P P P P GT Geldenhuys P P P P P P JJ le Roux P P P P A P GL Malherbe P P P P A A B Mathews P P P P P P G Potgieter (Director: Finance) (Group Chief Financial Officer) P P P P P P HD Van Schalkwyk (Managing Director) P P P P P P (Group Chief Executive Officer) (* - Special meeting of board of directors; P - Present; A - Absent with apology) • CO M M I TTEES OF T H E BOA R D OF D I R ECTO R S • The committees of the board of directors mentioned below were instituted to assist the board of directors to execute its collective responsibility for corporate management and risks. The board of directors acknowledges its ultimate responsibility for the actions of its committees and is satisfied that the committees discharged their responsibilities effectively during the year under review. Minutes of meetings of the committees are circulated to all the directors. Audit, Risk and IT Committee The Committee’s composition was as follows on 30 April 2017: Statutory members Non-statutory members Ms. B Mathews (Chairperson) Mr. G Potgieter Messrs. JJ Viljoen (Director: Finance - ex officio) FE Marx Dr. HD van Schalkwyk A Botha (Managing Director - ex officio) PF Delport GT Geldenhuys The report of the Audit, Risk and IT Committee, in accordance with Section JJ le Roux 94(7) of the Companies Act, Act No. 71 of 2008, for the 2016/2017 financial GL Malherbe year is published on page 40 of this report.22

Social, Ethics and Remuneration CommitteeThe Committee’s composition was as follows on 30 April 2017:Statutory members Non-statutory membersMessrs. PF Delport (Chairperson) Mr. G Potgieter JJ Viljoen (Director: Finance - ex officio) FE Marx Dr. HD van Schalkwyk A Botha (Managing Director - ex officio) GT Geldenhuys JJ le Roux GL MalherbeMs. B MathewsThe main functions and capabilities of the committee are the following:• To research, on policy level, the financial composition and the effect of remuneration of directors and chief executive officers on the total remuneration basket of Suidwes and to present proposals in this regard for consideration to the board of directors;• To reconsider and approve the remuneration of directors and executive management annually and to ensure that the composition of their remuneration is market related, competitive and proactive, and includes an incentive component;• The present guidelines for general annual increments for staff;• To present recommendations to the board of directors about the way to report to shareholders about the remuneration policy and individual remuneration and to ensure that the necessary decisions about remuneration of directors are obtained from shareholders.• Given the necessity in the light of a dynamic business environment, to recruit suitable directors and chief executive officers to conduct research on requirements and criteria and to propose guidelines that will contribute to the best possible candidates being identified for Suidwes’ recruitment actions;• To identify suitable candidates for appointment as independent, non-executive directors, to interview them and to offer recommendations for appointment to the board of directors;• To make recommendations to the board of directors about the composition of the board of directors in general and with regard to particular requirements and expertise;• To assist the chair of the board of directors, to assess the operation of the board of directors and its committees and to evaluate individual directors;• To conduct preliminary interviews with candidates for appointment as Managing Director, Director: Finance and a member of the executive management and to present the board of directors with a shortlist;• To ensure that succession planning with regard to executive directors and chief executive officers takes place;• To consider whether the Group is meeting its social responsibility obligations;• To ensure that the business activities of the Suidwes Group is conducted according to ethical and sustainable principles in accordance with the King IV guidelines and the Group’s ethical code of conduct;• To ensure compliance with the Company’s corporate management requirements and legislation, particularly complying with laws and regulations applicable to the Company and King IV stipulations;• To compile, revise and monitor policies that apply to the Group’s human resources;• To appraise the performance of the executive directors;• To develop incentive schemes and to exercise control over them in order to include performance-related elements in the remuneration system;• To ensure statutory compliance of labour legislation;• To advise the board of directors in relation to black economic empowerment;• To make recommendations to the board of directors about focused training and development of staff, retrenchment programmes and the Group’s appointment policies;• To appraise the annual review of the applicability of the Group’s performance appraisal systems; and• To ensure that succession planning for the Group receives the necessary attention.The Social, Ethics and Remuneration Committee meets at least twice a year. 23

E X E C UT I V E M A N A G E M E NT The Managing Director fulfils the role of Chief Executive Officer. The executive management is responsible for the day-to-day management of the business of the Suidwes Group. The members of the executive management attend meetings of the board of directors and committees. I NT E R N A L A U D I T The function of internal audit of the Suidwes Group is executed internally by independent staff. The internal audit function is executed independently in accordance with a particular mandate of the Audit, Risk and IT Committee. The internal auditors report to the Audit, Risk and IT Committee and have direct and unrestricted access to the chair of the committee. They enjoy the full support and cooperation of both the board of directors and management of all divisions of the Group. The main duty and goal of the internal auditors are to assist the Group to identify operational risks, to conduct an independent evaluation of compliance with Group policy, risk control measures, internal control systems, procedures and accounting practices and, where necessary, to make recommendations for its improvement. The internal auditors have unrestricted access to the external auditors and all the reports issued by the internal auditors are circulated to the external auditors for comment and action, where required. R I S K M A N A G E M E NT Identifying, evaluating and managing material risks facing the Group are an ongoing process. The board of directors accepts full responsibility for the total process of risk management in the Group and are assisted by the Audit, Risk and IT Committee, the external auditors and the internal auditors, and by management reporting about the design, implementation and monitoring of Risk Management processes. The effectiveness of the internal control systems is checked regularly. The goal of the risk management process is ensuring that the Group’s assets and investments are safe, that management’s goals and sustainability are supported by the risk management process under all operating conditions and that Suidwes act in a responsible manner in relation to its interest groups. The Group follows a comprehensive Risk Management Policy and Implementation Plan, approved by the Group Chief Legal Officer who fulfils the role of Risk Manager in the Suidwes Group. The realisation of certain risks related to future trading of grain within the Grain Division, accompanied by financial loss, renewed the focus on control mechanisms included in the Risk Management Policy and Implementation Plan. The board of directors approved that a thorough investigation be conducted by PwC, who will make recommendations about financial and process control measures necessary to avoid a repeat of the risk. COMPLIANCE A dedicated Compliance Officer was appointed during the year. This official reports to the Group Chief Legal Officer. The Compliance Officer is responsible for management and compliance within Suidwes relating to compliance at corporate level. However, the divisional managers are responsible for compliance at divisional level. No transgressions of any laws or regulatory prescriptions were announced for Suidwes Group during the year. ETHICS CODE Suidwes remains committed to maintaining the highest standards of integrity and ethical principles in its interaction with all interested parties. Professional behaviour, integrity and an uncompromising attitude, which requires business ethics of the highest standard, form the core of the existing code of ethics. The directors, who are the guardians of integrity within Suidwes, ensure that ethical performance is monitored and reported and declared to the Social, Ethics and Remuneration Committee. Several platforms have been created for reporting fraud and unacceptable behaviour in Suidwes, including a toll-free reporting number, which offers an opportunity for anonymous reporting of unethical behaviour and which ensures protection of a whistle-blowers’ identity.24

Management is satisfied that adequate grievance and disciplinary procedures exist to ensure the applicationand promotion of the code of ethics. Should employees participate in questionable ethical behaviour, Suidwes’view is clearly that it will, without exception, act relentlessly against the employees involved. Employees whoare found guilty during a disciplinary process are usually dismissed and if dishonesty is involved in the case, acomplaint is made to the South African Police Service.During interaction with customers, suppliers and/or intermediaries, employees may not receive money, favoursand/or gifts of value. A formal policy that regulates the giving and receiving of gifts has been approved and willserve as a guide to staff in their interaction with interested parties.Employees may not become involved with other interests if this involvement will, in any way, stand in the wayof proper execution of their duties or Suidwes business.I N F O R M AT I O N T E C H N O LO G Y M A N A G E M E NTSuidwes uses information technology to optimise its business processes and execute them more effectively.During the past decade, Suidwes has used a computer network that can function independently of any thirdparties. This computer network now enables Suidwes to communicate effectively via VoIP (“Voice over InternetProtocol” or Voice over Network) and make calls between the Central Office, Vryburg, Christiana, Bothaville,Makwassie and Bultfontein. By using the new VoIP for internal calls and not using Telkom’s network, savingsare realised.The network, with its availability of 99.5%, enables Suidwes to utilise its operational points optimally. Furthereffectiveness and savings are made possible by a central printing system, which facilitates the management ofprinting.The traditional computer system has, however, over time, become outdated and no longer keeps up with themost modern technological developments and effectiveness. Therefore, two years ago the board of directorsapproved the replacement of the existing AS400 and JAVA systems by a modern ERP system. SAGE X3 waschosen as the most suitable system and a project was launched to implement SAGE. However, the implementingagent referred by SAGE to deal with the implementation experienced problems completing the developments thatwere necessary to optimise Suidwes’ business processes and this lead to the cancellation of the implementation.Now, the SYSPRO software system has been identified and it has already been implemented successfully inseveral agricultural enterprises. It is expected that the system will be operational by March 2018.Furthermore, Suidwes has developed an app for its members and clients in order for them to use their cellphonesor tablets to gain access to important information such as grain supplies and account particulars.It is a priority for Suidwes to ensure that the information that is stored on the computer systems and networksare safeguarded by the latest technology. Much time and effort is invested to ensure that information does notincrease risk due to viruses or cyber-crime events.GROUP SECRETARIATThe Group Chief Legal Officer fulfils the role of Group Secretary and complies with requirements prescribed bySection 86 of the Companies Act (2008). The Group Secretary manages the legal and other support functions ofthe Group, provides guidance and advice to the directors with regard to their authority, duties and responsibilitiesand ensures that the board of directors and the Group comply with all relevant legislation, as well as withstipulations of individual statutes.The Group Secretary is responsible for maintaining and administering proper minutes of all meetings ofshareholders, boards of directors and committees of the board of directors in accordance with the stipulationsof the Companies Act, including meetings of the executive management.CLOSED PERIOD FOR SHARE TRANSACTIONSThe Company maintains a closed period before the publication of annual and interim results in accordance with apolicy that is prescribed by the board of directors. During a closed period, no director, official or staff member ofthe Group may enter into any transaction that relates to shares of Suidwes Holdings. The board of directors hasenforced a policy about insider trading to ensure that transactions involving shares in the Group by directors,officials and staff take place in a transparent manner. 25

“Choose a job you love and you’ll never work a day in your life.” ~ CONFUCIUS 3 SUSTAINABILITY REPORT26

SUSTAINABILITY REPORTSOC I AL R ES P ONS I B I L I T YS po n sorships a n d do n at io n sCommunity involvement in the form of sponsorships and donations are an important part of planning for every year.An amount of R876,515 was spent in communities on the following institutions and special projects:• Educational institutions (schools);• Community projects;• Farmers’ days for farm owners, farm managers, emerging farmers and farm workers;• Ladies’ mornings and gardening days;• Drought-aid projects and related donations;• Young farmers’ days for the youth; and• Community festivals.A great need has been identified in the communities in which Suidwes operates.This need has been caused by declininggovernment aid to schools. Suidwes took the initiative to organise a School Principals’ Day. The event was attended byschool principals involving no less than 31 schools in the area served by Suidwes. We are already in the third year ofthe five-year sponsorship of schools, which involves a Suidwes Agriculture sponsorship of sportswear and equipment,as well as contributing financially to schools in the area served by Suidwes.During 2016/2017 we gave sports-related sponsorships to Suidwes’ Gardening Days held in Tosca, Bloemhof,seven rugby clubs, one netball club, one cycling club, 14 Wolmaransstad, Schweizer-Reneke and Leeudoring-primary schools, four secondary schools and six combined stad were attended by approximately 300 ladies whoschools (19 teams). In total, 89 teams (rugby, netball, were introduced to information about the latest painthockey, tennis, cycling and soccer) benefited from Suidwes techniques for garden pots, pest-control products forsponsorships. garden plants and the value of solar power lighting in and around the home. 27

Jannie Moolman was the guest artist at the Suidwes Farmers’ days, information days and Ladies’ Mornings that were held in Christiana, Vryburg demonstration days are regularly presented and Wolmaransstad. The ladies were also entertained for producers and shareholders within the area by a fashion show and local motivational speakers. served by Suidwes. A New Holland demonstration day was presented in Bothaville. Suidwes’ popular Young Farmers’ Day was presented successfully for the fourth consecutive year in Wolmaransstad, Vryburg, Bultfontein and Schweizer-Reneke. This event focused on learners between the ages of 10 and 18 years, and every year on average 500 learners are exposed to a variety of activities, such as sheep shearing, livestock race identification, vermin control, grain classification and mechanisation. The Suidwes Young Farmers’ Days are presented free of charge in cooperation with farmers’ associations and suppliers. C omm u n icat io n Employee and client commitment are the direct results of effective and timely communication. The following communication platforms are used by Suidwes: • Bimonthly management meetings between top management and divisional heads; • Monthly divisional meetings; • Quarterly personnel meetings; • Regular sessions about medical and retirement funds; • Quarterly personnel functions involving social events; • Annual personnel functions for all personnel and families; • Printed media, for example, Ons Eie and Esprit de Corps; • Electronic media such as email, internet and electronic newsletters; • Social media such as Facebook and Instagram. Suidwes regularly communicates with various interest groups via printed media. Management concentrates on information that addresses current trends in agriculture and that can help producers improve their farming practices. Newsworthy occurences in the Group are regularly supplied to local and national printed media, in an effort to convey same to stakeholders.28

P R I NT E D media 1 3 2 41 The newsletter, Uit Herman se Kantoor, is used by Dr. Herman van Schalkwyk to regularly communicate with staff about personnel and company matters.2 Dr. Van Schalkwyk, also uses the newsletter, Uit Herman se Kantoor, to regularly communicate about matters relating to the company and agriculture with Suidwes’ 3,900 shareholders.3 Esprit de Corps is a monthly personnel magazine that is jam-packed with contributions by management and staff. The magazine is very popular among members of staff, as it contains information that is fresh, new and relevant.4 Ons Eie is a magazine that appears every second month and is distributed to all Suidwes shareholders. It mainly focuses on agricultural matters, but also serves as a display window of the company.I n t er n al a n d e x t er n al clie n t sat isfac t io nThe annual Personnel Recognition Event is a highlight on the personnel calendar. The event took place at UurpanSafari Lodge and Conference Centre near Schweizer-Reneke and was attended by 320 guests.Suidwes Agriculture Personnel Recognition Event - November 2016 29

The Suidwes Top Client function was held for the second consecutive year in a row during an elegant evening at Sun City. The 100 guests were entertained by Jakkie Louw and Kevin Leo. Personnel meetings are presented in several towns in the area served by Suidwes every year. During these events, Dr. Herman van Schalkwyk and the rest of the Suidwes management team interacts with members of staff and discuss matters relevant to them and the business. The Suidwes Vision and Mission initiative was shared with Suidwes’ shareholders, producers and clients at 18 town meetings. During these events, the chairperson of the board of directors, Mr. Hansie Viljoen, and the Managing Director, Dr. Herman van Schalkwyk, discussed the company’s strategic direction and goals.30

Every year Suidwes Agriculture is involved in the Grain SA’s Nampo Harvest A fully equipped Arms andDay outside Bothaville. Suidwes Agriculture’s exhibition’s stand once again Ammunition Dealership forms anattracted many visitors and successful networks with existing and new integral part of the retails stores in Bothaville and Delmas and attractsclients were formed. many customers.Suidwes Agriculture’s Drought-Aid Project brought great relief to many farmers in the traditional Suidwes Agricultureservice area. Maize residue was processed in and transported from Douglas in the Northern Cape and distributedamongst producers.New Suidwes retail branches: During 2016/2017, several of SuidwesAgriculture’s retail branches were upgraded and improved. Two new brancheswere also opened in Delmas in Mpumalanga and in Bothaville in the Free State.Delmas Branch Opening: Attended by 240 guests; both the RetailBranch and the Arms and Ammunition Dealership already enjoyloyal support.Louwna Branch Opening: Mr. Thean Geldenhuys (Suidwes director)and Mr. Lourens Kriel (Branch Manager) officially open theupgraded Louwna Retail Branch.Bothaville Branch Opening: The Group Chief Executive Officer,Dr. Herman van Schalkwyk, was the speaker at the officialopening of Suidwes Agriculture’s new Bothaville BusinessComplex. 31

Contribution to Black Economic Empowerment The following community donations were made: • Welcome Day Care, Wolmaransstad - R34,264 • Rekgonne Hospice, Schweizer-Reneke - R25,000 • Touch a Life, Schweizer-Reneke - R20,000 • Kgakala Drop In Centre, Leeudoringstad - R25,000 • Bible Kiosk, Bothaville - R20,000 • Chairs for Sekgweng Intermediate School, Bultfontein - R5,736 Welcome Day Care - Wolmaransstad Rekgonne Hospice - Schweizer-Reneke Touch a Life - Schweizer-Reneke Kgakala Drop In Centre - Leeudoringstad S k ills de v elopme n t a n d appre n t iceships The apprenticeship programme offers individuals the opportunity to develop their skills in the workplace. At the end of the programme apprentices receive a qualification, which enables them to fill positions that become vacant and to maintain a high-performance culture. With the cooperation of experienced and expert mentors, assessors and moderators, the apprenticeship programme was developed in order for apprentices with sufficient knowledge to complete the work successfully. In 2016 ten permanent Grain apprentices and 11 Retail apprentices enrolled for the programme. The assessment rendered excellent results. Each of the apprentices testified about the value they had gained from these apprenticeships. In April 2017 nine Retail apprentices enrolled. AgriSETA provided funds, which helps to provide these “unemployed” candidates with qualifications. The apprenticeship programmes are of immeasurable value, not only to the apprentices, but also to mentors and assessors, who also refresh their skills. These programmes help to ensure that there are, in future, skilled candidates for the various fields.32

Apprenticeships 2016/2017 Grain 2016 (Completed March 2017) Black Male Black Female White Male White Female TotalRetail 2016 (Completed February 2017) Retail 2017 10 0 0 0 10Maintenance Workshops 7 2 2 11Total 3 3 3 0 9 1 0 2 0 3 3 0 3 0 6 24 3 10 2 39 Suidwes Apprentices and Assessors: Grain 2016 Suidwes Apprentices and Assessors: Retail 2016M ai n t e n a n ce appre n t icesThree of the apprentices are still in the process to complete the final phases of theirtraining as electrician, millwright and boilermaker respectively. One apprentice hadalready qualified as a millwright in March 2017 and has accepted a permanentposition at Suidwes. This apprentice is doing practical training at Adcorp TechnicalTraining (PMI) in Welkom. The practical expertise that the apprentices gain is ofconsiderable value to the workplace, because this knowledge is applied daily inevery work situation. Maintenance apprentice in PMI workshopD iesel mecha n ic appre n t icesDuring 2016 six diesel apprentices qualified and took up permanent positions atSuidwes. Since then, one has resigned and one apprentice, who had qualified inApril 2017, was not employed permanently.In April 2017 six diesel apprentices enrolled with Suidwes. The young men areall keen to be equipped with the necessary knowledge, skills and qualifications.The apprentices have been allocated to the following workshops: two atWolmaransstad, two at Bothaville, one at Schweizer-Reneke and one atHoopstad.The apprentices do their practical training at Agri-Tech Training - IQWEnterprises, under the guidance of Mr. Willie Nel.AgriSETA provided funds for training the apprentices. Diesel apprentices with Mr. Willie Nel 33

S t u dy loa n sFacilities for study loans are available to permanent employees and their immediate families (wife, husband,children). The amount of the loan may not exceed 60% of an employee’s salary. Study loans White recipients Black recipients 13 8 5B u rsaries / C areer D e v elopme n tSuidwes strives to establish expertise within the organisation to fill positions that become vacant. Suidwesmeets AgriSETA’s requirements and qualifies to receive funds from the SETA every year. In addition tospecific claims, Suidwes qualifies for discretionary grants that AgriSETA awards for additional training andfor employment of apprentices.In-house training is provided in several fields and addresses the needs of every employee. This empowersemployees, who can then be proactive in meeting clients’ needs.Psychometric tests are administered before decisions are made about who can attend formal training.Formal training at tertiary institutions is presented on various levels and involves management, skills andspecialist training. This training involves Fundamental, Middle and Advanced Management Programmes.The certification ceremony of the class of 2016 took place on 29 May 2017 at the North-West University inPotchefstroom. Formal Training White Black Formal Training White Black (Completed 2016) Graduates Graduates (Completed 2017) Graduates GraduatesAMP 3 2 MBP 17 4MMP FFP 1 3 AMP 7 1BCom Total 7 9 BCom 1 - 1 - Total 25 5 12 14 Prospective students writing psychometric tests34

MBP Students 2017 AMP Students 2017I n - ho u se t rai n i n g Black Black White White Total Male Female Male Female Forklift-driver training Front-end loader training 20 - 1 5 26 Scaffolding Working on heights 7 - 1 - 8First-aid training Product training 16 - 22 - 38Submitting claims (Retail) Grading 12 - 10 - 22Client service Values and behaviour 71 3 19 8 101Computer training (SAGE and People included) Personnel introduction 27 4 51 42 124Making an impact Technical skills (Workshop) 7 7 - 26 40N2 (Maths and Science) (apprentices) Graduates 36 12 8 - 56Emerging farmers Total 21 - 3 2 26I 8 11 20 21 60 5 1 123 169 298 19 1 18 15 53 9 1 23 10 43 9 - 28 - 37 - - 6 - 6 1 - 1 1 3 8 9 - - 17 276 49 334 299 958 35

With the aid and funding of AgriSETA a skills programme will be presented for 40 employees, under the guidance of Batho Pele. Employees who complete the programme each receive a certificate that they can use as proof of a formal qualification.The relationship between Suidwes and Batho Pele has existed for the past three years. AgriSETA also provided fundsfor the training of 20 emerging farmers.Suidwes strives to attract highly skilled and performing employees and to develop and retain them. Suidwes alsoendeavours to have a work environment that contributes to motivating people to improve and extend their qualificationsso that they can reach and utilise their full potential.E mergi n g farmersWith the funds provided by AgriSETA, in June 2016, Suidwes contracted with Batho Pele Agri Development Instituteto train emerging farmers via a Certificate in Mixed Farming (NQF2). This was the first time that training was done inBloemhof by any training provider. From the start, the emerging farmers on the course were extremely excited aboutit.The programme consists of the following accredited modules:Module1: Farm business management, involving general management relating to the farm and how farmers shouldModule 2: position themselves administratively to achieve success. Financial management and human resources.Module 3: Infrastructure and human resources development: Students learn about the upkeep of their farmingModule 4: infrastructure and how to treat workers. Legislation applicable to agriculture, such as the Basic Conditions of Service Act and labour legislation. The effective management of water. Grain production: The importance of plant production, choice of cultivars and preparing the soil, the growth cycle and processes of grain and plant manipulation. Livestock: Animal diseases and health, injection systems, reproduction and dealing with all livestock.Of the 19 students who started the programme, 15 were declared competent. The others received certificates for themodules they attended.The criteria for merit awards were as follows: The criteria for the award of Top Achiever were as follows:• At least 80% attendance of the programme; • At least 80% attendance of the programme;• Declared competent and portfolios of proof • Declared competent and portfolios of proof submitted; submitted; • Recommended by fellow students and facilitators of• Nominated by Batho Pele facilitators; and• Evidence of personal growth and good Batho Pele; and • The student showed dedication and leadership progress. throughout the programme. 2016 Emerging farmers Mr. Thys Neethling with Mr. Ernest Beck of Batho Pele and the three top achievers: TP Stallenberg (Best leadership), MS Magale (Best progress),36 BL Monyane (Top achiever)

EN V I R ON M ENTAL AN D OCC U PAT I ONAL SAFET YE NV I R O N M E NTA L P O L I C Y A N D O B J E C T I V E SSuidwes Agriculture emphasises the identification and management of environmental risks and has implemented controlmeasures to ensure that the Group’s activities are environmentally friendly. It involves the following objectives:• Active reduction of the negative impact our business activities have on the environment; and• Contributing to initiatives that will help conserve nature and natural resources.Systems, policies and rules are developed to minimise any negative environmental impact by the company’s activities.They are implemented at all sites and checked by regular internal and external audits.The company’s most important environmental issues are:• Water management • Energy management • Management of waste • Regulatory compliance.OCCUPATIONAL SAFETY AND HEALTHSuidwes Agriculture supports the vision of providing a 10 10safe and healthy environment for visitors and employees,providing the necessary training and material to inform 87employees about the potential risks they face and to make 6them aware of the dangers in the area where they workand the environment. 4Training actions with visual materials are launched to 2make workers in high-risk areas (where accidents oftenoccur) more aware of the dangers in their environment. 00 00Training in occupational safety takes place on levelsfrom apprenticeships to aspiring managers. Self-audits, Limbs Eyes Head/ Internal Occu-inspections by safety representatives and corporate torso/ pationalinspections are done continuously to meet Suidwes’ back illnessstandards. Policies and procedures are regularly revisedand must be applied by every employee. Every employee isresponsible for his/her own safety, and for that of colleagues.Various inspections were conducted in the reporting period at Suidwes’ operational sites by the Department ofLabour. No substantial deviations were found by any of the investigations. Good relationships are maintained with theDepartment and the goal is to achieve clean inspection reports.The following sites were visited by the Department of Labour:• Silos: Vryburg, Christiana, Wolmaransstad, Leeudoringstad and Hoopstad.• Retail branches: Bothaville, Vryburg, Wolmaransstad, Leeudoringstad, Makwassie, Bloemhof, Stella and Christiana.Comparison of accidents over the past three yearsCalendar year 2014/2015 2015/2016 2016/2017Days lost due to injuries on duty Total number of incidents 41 33 56Reportable incidents 18 13 17 1 1 3The reason for the increase reported for 2016/2017 is the inclusion of Agrifriend staff. Most accidents occurred at thesilos, during handling of grain at the delivery points.The following types of accidents must be reported to the Department:• Death due to a work incident, which must be reported immediately to the Department of Labour, as well as the 37 Manager: Occupational Safety.• Injuries that cause a person to be unfit for work for longer than 14 days.• An incident that leads to the loss of a limb or part of a limb, or in which case a person loses consciousness, or is likely to die, or will be permanently unfit to work. It must be reported immediately, by telephone and fax.

“It’s not what you take whenyou leave this world behind you. It’s what you leave behind you when you go.” ~ randy travis Fro m the Me mbers 4 for the Me mbers FINANCIAL38 STATEMENTS

Declaration of the Audit, Risk and IT Committee 40 Independent Auditor’s Report 42 Consolidated and Separate Income Statements 44Consolidated and Separate Statement of Comprehensive Income 45 Consolidated and Separate Statement of Financial Position 46 Consolidated Statement of Changes in Equity 47 Separate Statement of Changes in Equity 48 Consolidated and Separate Statements of Cash Flows 49 Notes to the Financial Statements 50 39

SUIDWES HOLDINGS (RF) PROPRIETARY LIMITED DECLARATION OF THE AUDIT, RISK AND IT COMMITTEE In accordance with the stipulations of the Companies Act, No. 71 of 2008, as amended (“the Companies Act”), for this year the Audit, Risk and IT Committee (“the Committee”) of Suidwes Holdings (RF) Proprietary Limited comprised at least three independent non-executive directors. The Committee acts in accordance with a formal mandate under the authority of the board of directors. The most important roles and functions of the Committee are: • To assist the board of directors to meet their obligations in relation to the safeguarding of assets; • To satisfy the board of directors that sufficient financial and management controls exist in the Group, and that all actual corporate risks have been identified and are receiving the necessary attention; • To establish and execute effective systems of internal control; • To ensure that internal, financial and operational controls are enforced; • To investigate the integrated reporting and financial information that is provided by the Company; • To ensure that an effective risk management system exists, that does not only identify risks, but also addresses them; • To ensure that information technology risks and controls, as well as information security and confidentiality, are addressed adequately; • To consider business sustainability; and • To assess the Company’s compliance with laws and regulations. In the execution of its mandate the Committee is, according to its exclusive discretion, entitled to obtain independent advice about any matter. In accordance with its mandate the chair of the Committee is an independent non-executive director. The composition of the Committee, as on 30 April 2017 is given on Page 22. In accordance with the requirements of the Companies Act the Company is obliged to nominate independent external auditors for appointment as auditors of the Group every year. The Committee determines the conditions of appointment and remuneration of the auditors, and has to preapprove all instructions or work not related to auditing that are given to the auditors.40

The Committee discusses the following matters with the board of directors and advises the board about it:• The separate and consolidated annual financial statements, reporting, disclosure and accounting policy.• Transactions that are entered into beyond the normal course of business.• Internal audit mandate, as well as internal audit planning and reports.• External audit planning and reports for both the interim and final audit, as well as the independence of the external auditors.• Compliance with legal requirements, the Code of Corporate Practice and the Ethical Code of Conduct of the Group.• Communication with executive management and auditors.• The effectiveness of management information and internal control systems.Suidwes makes use of the services of Whistle Blowers for anonymous reporting of cases of unethical behaviour, fraud,contravention of legislation and other irregularities. In addition to the services of Whistle Blowers, Suidwes also hasan independent toll-free telephone line, for anonymous reporting of the behaviour mentioned above. The Committeereceives a comprehensive record of all calls made to this facility, with a report of the action that was taken in response.The Committee meets at least twice a year in order to execute its activities. In addition to the people mentioned in thefirst paragraph above, the Committee’s meetings are attended by the external auditors, internal auditors and membersof senior management (on invitation, from time to time).I n depe n de n ce of t he a u di torsIn accordance with Section 94(7)(a) of the CompaniesAct, we hereby declare that the external auditors,PricewaterhouseCoopers Incorporated, are independentof the Company and its subsidiaries.Ms. B MathewsChair of the Audit, Risk and IT Committee26 July 2017 41

42

43

Consolidated and Separate income SUIDWES HOLDINGS (RF) PROPRIETARY LIMITED statementS For the year ended 30 April 2017 Group 2016 Company 2016 Income 2017 R’000 2017 R’000 R’000 R’000 4,920 2,708,187 2,607,973 24,660 Revenue 2,549,879 2,438,226 - - (1 981,318) (1,839,372) - - Cost of sales - - Gross profit 568,561 598,854 - - Incentive Rebates and Deferred Payment Scheme attributable to Revenue 12,927 16,743 - - Gross profit before Incentive Rebates and Deferred Payment Scheme 3,264 4,912 Other operating income 581,488 615,597 100 - Other operating gains 103,638 99,832 21,296 9,795 Investment income 17,641 (2,687) (3,428) Operating expenses 6,137 35,531 21,973 11,279 Operating profit 35,606 (5,511) (1,803) Finance costs (686,568) (599,288) 16,462 9,476 Profit/(Loss) after finance costs 40,301 169,313 - - Fair value adjustment (57,833) (42,177) - - Profit/(Loss) from equity accounted investments (17,532) 127,136 16,462 9,476 Profit/(Loss) from continuing operations before tax, Incentive Rebates and Deferred Payment Scheme - 1,691 4,456 5,789 Nett Incentive Rebates and Deferred Payment Scheme 603 (5,163) - - Gross Incentive Rebates and Deferred Payment Scheme (16,929) 123,664 Fair value adjustment 4,456 5,789 (12,927) (16,743) (17,383) (22,532) 20,918 15,265 4,456 5,789 1,315 (2,326) 22,233 12,939 Profit/(Loss) from continuing operations after Incentive (29,856) 106,921 Rebates and Deferred Payment Scheme, before tax - - Tax 12,158 (22,594) 22,233 12,939 Profit/(Loss) from continued operations (17,698) 84,327 Discontinued operations Loss from discontinued operations (11,576) (11,032) Profit/(Loss) for the year (29,274) 73,295 Attributable to: (8,771) 78,979 22,233 12,939 Shareholders of the holding company: (11,576) (11,032) Profit/(Loss) from continuing operations - - Profit/(Loss) from discontinued operations (8,927) 5,348 22,233 12,939 Non-controlling interest: (29,274) 73,295 Profit/(Loss) from continuing operations 112,86 Earnings per share attributable to (34,11) 37,28 21,49 shareholders of the holding company 15,00 Basic and diluted earnings per share (cents) - 13,00 - 15,00 Dividends per share 20,00 20,00 13,00 Interim (cents) Final (cents)44

CONSOLIDATED AND SEPARATE STATEMENTSSUIDWES HOLDINGS (RF) PROPRIETARY LIMITED OF COMPREHENSIVE INCOMEFor the year ending 30 April 2017 Group 2016 Company 2016 2017 R’000 2017 R’000Profit for the year R’000 73,295 R’000Other comprehensive income (29,274)Fair value adjustments on financial assets - 22,233 12,939Other comprehensive income net of tax - - - (40,622) 26,477Total comprehensive (loss)/income for the year 73,295 (18,389) 39,416 (29,274)Shareholders of the holding company 67,947 (18,389) 39,416Non-controlling interest (20,347) 5,348 (8,927) 73,295 (18,389) 39,416 (29,274) - - (18,389) 39,416“Being a farmer means shaking hands with nature.” ~ TAMA 45

CONSOLIDATED AND SEPARATE STATEMENTS SUIDWES HOLDINGS (RF) PROPRIETARY LIMITED OF FINANCIAL POSITION As at 30 April 2017 Group Company 2016 ASSETS 2017 R’000 2017 2016 Non-currant Assets R’000 Property, plant and equipment R’000 R’000 Investment property Goodwill 759,265 555,380 521,697 562,687 Intangible assets 395,762 358,444 30 42 Investments in subsidiaries - - Investments in associated companies 8,940 8,940 - - Other financial assets 3,277 - 1 - Instalment sale financing and loans 91,634 Trade receivebles financed by banks 92,073 518,445 560,794 Deferred tax assets - - - - 138,257 - - Current Assets 58,951 6,342 - - Inventories 50,217 - - Trade and other receivables 4,763 6,519 Loans to group companies 1,252 1,898 3,221 1,851 Other financial assets 56,429 30,947 Trade receivables financed by banks 18,140 12,626 Deferred tax assets 980,681 1 263,093 - - Instalment sale financing and loans 458,096 571,597 Cash and cash equivalents 268,934 339,890 122 8,012 - 6,492 320 Non-current assets held for sale and assets of disposal groups - 156,773 - Total Assets 103,661 336 - - 7,254 - - EQUITY AND LIABILITIES 213 5,237 - - EQUITY 9,184 182,006 - Capital and reserves attributable to Equity Holders of Parent 5,709 11,526 4,294 Share capital 134,884 - Share premium 1,818,473 - - Reserves 196,951 539,837 575,313 Retained earnings 1 936,897 Ordinary shareholders’ interest Non-controlling interest in equity 596 596 596 596 Total Equity 46,681 46,681 47,001 47,001 324,127 364,749 LIABILITIES 15 15 45,075 30,595 Non-current Liabilities 462,745 500,614 416,799 442,941 Other financial liabilities 510,037 547,906 Financial lease liabilities 43,458 51,028 - - Deferred tax 553,495 598,934 416,799 442,941 Provisions Loans from banks to finance trade receivables 164,431 366,367 119,311 126,484 80,833 272,515 18,533 12,715 Current Liabilities 7,855 - - Loans from group companies 67,421 9,356 100,778 112,451 Other financial liabilities 7,107 64,432 - 1,318 Financial lease liabilities 1,215 18,228 - - Trade and other payables 1,836 Provisions 1,113,036 3,727 5,888 Other liabilities - 853,172 1,503 4,697 Loans from banks to finance trade receivables 2,368 Bank overdraft 564,020 - - 5,023 129,680 - - Liabilities directly associated with held for sale assets 4,337 - 167 or disposal groups 350,734 - - Total Liabilities 17,238 426,748 2,224 1,024 6,170 29,215 - - Total Equity and Liabilities 6,387 - - 455 169,396 616 - - 253,821 123,038 132,372 105,935 1,383,402 - 539,837 575,313 1,219,539 1,936,897 1,818,47346

SEPARATE STATEMENT OF CHANGES INSUIDWES HOLDINGS (RF) PROPRIETARY LIMITED EQUITYFor the year ended Share Share Total Revalua- Retained Total Non- Total30 April 2017 capital premium share tion earnings controlling Equity capitalBalance as at 1 May 2015 reserve interestComprehensive income R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 R ‘000Profit for the year 602 50,329 50,931 338,272 26,691 415,894 - 415,894Other comprehensive incomeFair value adjustments on financial assets - - - - 12,939 12,939 - 12,939 - - - - 12,939 12,939 12,939Transactions with shareholdersDividends paid - - - 26,477 - 26,477 - 26,477Buyback of shares - 26,477 - - - 26,477 - 26,477Total contributions byand distributions to shareholders (6) (3,328) (3,334) - (9,035) (12,369) - (12,369) - -- - (9,035) (9,035) - (9,035)Balance as at 1 May 2016 - - (3,334) - (3,334) (6) (3,328) (3,334)Comprehensive incomeProfit for the year (6) (3,328) (3,334) - (9,035) (12,369) - (12,369)Other comprehensive income 596 47,001 47,597 364,749 30,595 442,941 - 442,941Fair value adjustments on financial assets - - - - 22,234 22,234 - 22,234Transactions with shareholders - - - - 22,234 22,234 - 22,234Dividends paid - - - (40,622) - (40,622) - (40,622)Total contributions by - (40,622)and distributions to shareholders - - - (40,622) - (40,622) - (7,754)Balance as at 30 April 2017 - - - - (7,754) (7,754) - (7,754) - - - - (7,754) (7,754) - - - - (7,754) (7,754) - (7,754) 596 47,001 47,597 324,127 45,075 416,799 - 416,799Fro m the Me mbers for the Me mbers 47

CONSOLIDATED STATEMENT OF CHANGES SUIDWES HOLDINGS (RF) PROPRIETARY LIMITED IN EQUITY For the year ended Share Share Total Revalua- Retained Total Non- Total 30 April 2017 capital premium share tion earnings controlling Equity capital Balance as at 1 May 2015 reserve interest Comprehensive income R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 Profit for the year 602 50,327 50,929 15 442,474 493,418 13,915 507,333 Transactions with shareholders Dividends paid - - - - 67,947 67,947 5,348 73,295 Buyback of shares Changes in ownership - control lost -- - - 67,947 67,947 5,348 73,295 Business combination (6) (3,646) (3,652) - (9,807) (13,459) 31,765 18,306 Total contributions by --- (2,909) (11,892) and distributions to shareholders - (8,983) (8,983) (3,652) (6) (3,646) (3,652) - Balance as at 1 May 2016 - - (3,652) 305 (519) --- 34,369 34,369 Comprehensive income (824) (824) Profit for the year --- Transactions with shareholders Dividends paid (6) (3,646) (3,652) - (9,807) (13,459) 31,765 18,306 Changes in ownership – control not lost Business combination 596 46,681 47,277 15 500,614 547,906 51,028 598,934 Total contributions by --- - (20,347) (20,347) (8,927) (29,274) and distributions to shareholders --- - (20,347) (20,347) (8,927) (29,274) Balance as at 30 April 2017 --- - (17,522) (17,522) 1,357 (16,165) --- - (7,733) (7,733) (5,284) (13,017) --- - (9,789) (9,789) --- --- 9,789 - (3,148) (3,148) --- - (17,522) (17,522) 1,357 (16,165) 596 46,681 47,277 15 462,745 510,037 43,458 553,49548

CONSOLIDATED AND SEPARATE CASHSUIDWES HOLDINGS (RF) PROPRIETARY LIMITED FLOW STATEMENTSFor the year ended 30 April 2017 Group 2016 Company 2016 2017 R’000 2017 R’000Cash flow generated from/(utilised for) operating activities R’000 R’000Cash flow generated from operationsInterest received (1,290) (29,351) 22,777 17,452Dividends received 126,506 (4,106) 6,992 9,460Interest paid 35,606 35,531 28 682Cash flow from non-operational asset retained for sale 4 21,268 9,113Tax paid 1,209 (42,177) (57,833) - (5,511) (1,803)Cash flow utilised in investment activities (91,016) (18,603) - -Purchase of property, plant and equipment (15,762) - -Assets aquired and reclassified to disposal groupsProceeds on sale of property, plant and equipment (130,361) (86,877) (19,366) (25,807)Purchase of intangible assets (62,896) (46,869) - -Business combination 21,543 - -Movement in investments (including subsidiaries and associates) 1,229 - -Proceeds on sale of investments (1,214) 1,233 - 10(Increase)/Decrease in other financial assets (490) (587) - -Decrease in trade debtors financed by banks (131,312) 1,324 -Increase in loans to group companies - 20,912 (10,000)Increase/(Decrease) in loans from group companies 44,379 14,543 - (30,000) 769 (81,036) - -Cash flow generated from/(utilised in) financing activities - 1,234 - -Buyback of shares (2,369) - -Increase/(Decrease) in other financial liabilities -Increase/(Decrease) in other liabilities 2,369 (9,366) (308)Decrease in instalment sale financing 4,491Increase/(Decrease) in financial lease liabilitiesDecrease in loans from banks to finance trade receivables 168,954 (321,712) 3,821 (5,409)Movements in loans aqquired through business combinations - - - (3,334)Dividends paid 186,305 (324,688) 10,374 6,960Total cash movement for the year (217) - 1,200 -Cash and cash equivalents at the beginning of the year 1,284 -Cash and cash equivalents at end of the year 12,570 - - (4,804) 5,032 - - (782) (1,396) - - 187 (1,340) - (11,890) (7,753) (9,035) (13,019) 37,303 (437,940) 7,232 (13,764) (71,815) 366,125 4,294 18,058 (34,512) (71,815) 11,526 4,294 49