index | indeks integrated report 2013...• manage margins of all the companies and product groups...

abridged version | verkorte weergawe

BLADSY

hoogtepunte 2

strategie 2 – 7

finansiële oorsig 8 – 12

oorsig van die overberg agri groep en

sy omgewing13 – 18

risiko’s en geleenthede 19 – 20

eienaarskap en aandeleverhandeling 21

volhoubaarheid 22 – 24

korporatiewe bestuur 24 – 29

vooruitsigte 29 – 30

verslag van die onafhanklike ouditeur op die

verkorte gekonsolideerde finansiële state aan die

aandeelhouers van overberg agri beperk

30 – 31

PAGE

highlights 2

strategy 2 – 7

financial overview 8 – 12

overview of the overberg agri group and

its environment13 – 18

risks and opportunities 19 – 20

ownership and share trading 21

sustainability 22 – 24

corporate governance 24 – 29

prospects 29 – 30

report of the independent auditor on the

abridged consolidated financial statements to the

shareholders of overberg agri limited

30 – 31

index | indeks

2409_OA_abridged_annual_report_2013.indd 1 2013/07/15 12:32 PM

integrated report | 2 | geïntegreerde verslag

2013 OVERBERG AGRI INTEGRATED REPORT

HIGHLIGHTS

Financial performance2013 2012

15% Income (R’mil) 1 791 1 558

4% Normalised net profit

before taxation (R’mil)

49.2 47.3

Shareholders’ value2013 2012

38% Net asset value (R’mil) 1 166 847

14% Dividend per share –

(rand)

1.20 1.05

2013 OVERBERG AGRI GEÏNTEGREERDE VERSLAG

HOOGTEPUNTE

Ons bestuur Overberg Agri ter vestiging van ‘n volhoubare besigheid en om welvaart tot voordeel van alle belanghebbendes te skep.

Die strategiese doelwitte fokus op:

• die optimering van marges en die positiewe bydraes van die

onderskeie maatskappye,

• volhoubare groei,

• opbrengs op aandeelshouersbelang,

• die verhoging van aandeelhouerswaarde, en

• goeie korporatiewe bestuur.

Hierdie doelwitte het ten doel om te verseker dat Overberg Agri self

volhoubaar is, ‘n rol speel in die volhoubaarheid van sy kliënte en

ook dat die besighede so bedryf word dat welvaart geskep word vir

Overberg Agri, sy aandeelhouers en belanghebbendes, met inag

neming van die impak van ons aktiwiteite op die omgewing.


STRATEGY


STRATEGIE

We manage Overberg Agri to establish a sustainable business and to create wealth for the benefit of all stakeholders.

The strategic objectives focus on:

• the optimisation of margins and the positive contributions by the

respective companies,

• sustainable growth,

• return on shareholders’ funds,

• increasing shareholders’ value, and

• good corporate governance.

The aim of these objectives is to ensure that Overberg Agri is in

itself sustainable, plays a role in the sustainability of its clients and

that the businesses are managed in such a way that wealth is creat

ed for Overberg Agri, its shareholders and stakeholders, taking into

account the impact of our activities on the environment.

Finansiële prestasie2013 2012

15% Inkomste (R’mil) 1 791 1 558

4% Genormaliseerde netto

wins voor belasting (R’mil)

49.2 47.3

Aandeelhouerswaarde2013 2012

38% Netto batewaarde (R’mil) 1 166 847

14% Dividend per aandeel –

(rand)

1.20 1.05


BACK INDEX FORWARD


Strategic objectives / Strategiese doelwitte

Strategic objectives /

Strategiese doelwitte

High-level objectives /

Hoë-vlak doelwitte

Measurement /

Meting

• Optimise margins and

positive contributions

by all companies

• Manage margins of all the companies and product

groups

• Manage costs

• Improve the effectiveness of the companies

• Budgets

• Gross margin (%)

• Effectiveness and cost

management

• Optimeer marges en

positiewe bydraes

gelewer deur alle

maatskappye

• Bestuur marges van al die maatskappye en

produkgroepe

• Bestuur koste

• Verbeter die effektiwiteit van die maatskappye

• Begrotings

• Bruto marge (%)

• Effektiwiteit en kostebestuur

• Sustainable growth • Growth in turnover, operating profit, headline

earnings and real growth of 3% net profit per annum

by each company

• Generic growth opportunities, acquisitions and

strategic partnerships

• Real growth in turnover (%)

• Real growth in net profit (%)

• Growth in headline earnings (%)

• Positive cash flow from operating

activities

• Volhoubare groei • Groei in omset, bedryfswins, wesensverdienste en

reële groei van 3% netto wins per jaar deur elke

maatskappy

• Generiese groeigeleenthede, verkrygings en

strategiese vennootskappe

• Reële groei in omset (%)

• Reële groei in netto wins (%)

• Groei in wesensverdienste (%)

• Positiewe kontantvloei uit

bedryfsaktiwiteite

• Return on

shareholders’ funds

• Develop and maintain an asset structure that realises

the expected returns

• Return on shareholders’ funds (%)

• Opbrengs op

aandeel houersbelang

• Ontwikkel en onderhou ’n batestruktuur wat die

verwagte opbrengs realiseer

• Opbrengs op aandeelhouers

belang (%)


STRATEGY


STRATEGIE


BACK INDEX FORWARD


Strategic objectives /

Strategiese doelwitte

High-level objectives /

Hoë-vlak doelwitte

Measurement /

Meting

• Increase

shareholders’ value

• Real growth in the operating profit of all the

companies

• Growth in share price

• Growth in net asset value

• Growth in dividend per share

• Verhoog aandeel-

houers waarde

• Reële groei in die bedryfswins van al die

maatskappye

• Groei in aandeelprys

• Groei in netto batewaarde

• Groei in dividend per aandeel

• Corporate

governance

• Maintain an ethical culture

• Comply with identified legislation

• Establish reporting standards

• Compliance with ethical code of

conduct

• Internal and external assessment

• Compliance with identified standards

• Korporatiewe bestuur • Handhaaf ’n etiese kultuur

• Voldoen aan geïdentifiseerde wetgewing

• Vestig verslagdoeningstandaarde

• Nakoming van etiese gedragskode

• Interne en eksterne assessering

• Nakoming van geïdentifiseerde

standaarde

Performance in terms of strategic objectives / Prestasie ten opsigte van strategiese doelwitte

Strategic

objectives /

Strategiese

doelwitte

Performance /

Prestasie

Future contribution /

Toekomstige bydrae

Optimise

margins and

contributions

• All the companies contributed to the positive financial

results of the Group.

• Overberg Agri Bedrywe, Bredasdorp Slagpale and Promeal

performed better than budgeted.

• Bontebok Lime Works and Boltfast performed below

budget due to a general downturn in the economy and

strikes in the mining and transport sector.

• The Group’s gross margins decreased by 0.1% to 18.2%.

This decrease in margin can be ascribed to the tough

economic conditions during the year under review.

• The consolidation of management structures and

administrative functions resulted in significant cost savings

for Overberg Agri Bedrywe and Boltfast.

• Margins will probably remain under

pressure in the short term, but the

companies should achieve their

budgeted net profit.

• Expected improved economic

conditions (albeit slow) should

increase the future contribution per

company.

• Ongoing strikes and labour unrest

can, however, have a negative effect

on the results of Boltfast in particular.

Optimeer

marges en

bydraes

• Al die maatskappye het bygedra tot die positiewe

finansiële resultate van die Groep.

• Overberg Agri Bedrywe, Bredasdorp Slagpale en Promeal

het beter presteer as begroot.

• Bontebok Kalkwerke en Boltfast het onder begroting

presteer weens ‘n algemene afswaai in die ekonomie en

stakings in die mynbou en vervoersektor.

• Die bruto marge van die Groep het met 0.1% tot 18.2%

gedaal. Hierdie daling in marge word toegeskryf aan die

stram ekonomiese toestande wat gedurende die jaar

onder oorsig geheers het.

• Overberg Agri Bedrywe en Boltfast het wesenlike koste

besparings teweeggebring deur die konsolidasie van

bestuur strukture en administratiewe funksies.

• Marges gaan waarskynlik op die kort

termyn onder druk bly, maar die

maatskappye behoort hul begrote

netto wins te behaal.

• Verwagte verbeterde ekonomiese

toestande (alhoewel stadig) behoort

die toekomstige bydrae per

maatskappy te verhoog.

• Voortslepende stakings en

arbeidsonrus kan egter die resultate

van veral Boltfast negatief beïnvloed.


STRATEGY


STRATEGIE


BACK INDEX FORWARD


Strategic

objectives /

Strategiese

doelwitte

Performance /

Prestasie


Toekomstige bydrae

Sustainable

growth

• The Group performed positively due to the diversification

strategy.

• Successful completion of a transaction with Grain Farmers

Group.

• Geographic expansion due to the Grain Farmers Group

transaction.

• Revenue for the Group increased by 14.99% to

R1 791 million. The main contributions in this regard were

made by Overberg Agri Bedrywe, MKB and Bredasdorp

Slagpale.

• The normalised net income before taxation increased with

4% from R47.3 million to R49.2 million. The actual results of

Overberg Agri Bedrywe, Promeal and Bredasdorp Slagpale

exceeded their budgets. Included in the operating profit

of R280 million is negative goodwill of R199 million that

resulted from the Grain Farmers Group transaction.

• The decrease of R9.7 million in headline earnings can be

ascribed to:

» Acquisition costs of R13.3 million with regard to the

acquisition of Grain Farmers Group.

» The dividend income decreased by R2.5 million due to

the smaller shareholding in Pioneer Food Group resulting

from the unbundling transaction in the previous year.

• Focus is still placed on the

identification of growth opportunities

that can effect sustainable growth.

• Greater emphasis is placed on

strategic partnerships.

• The expected growth objectives,

namely turnover, operating profit and

net profit, should be achieved in the

next financial year.

• Cash management has been

centralised and the Group’s cash is

managed on a daily basis.

Volhoubare

groei

• Die Groep het positief presteer danksy die diversifikasie

strategie.

• Suksesvolle afhandeling van ’n transaksie met Graanboere

Groep.

• Geografiese uitbreiding weens die Graanboere Groep

transaksie.

• Omset vir die Groep het met 14.99% toegeneem tot

R1 791 miljoen. Die grootste bydraes in hierdie verband is

gelewer deur Overberg Agri Bedrywe, MKB en Bredasdorp

Slagpale.

• Die genormaliseerde netto inkomste voor belasting het

met 4% vanaf R47.3 miljoen tot R49.2 miljoen gestyg.

Overberg Agri Bedrywe, Promeal en Bredasdorp Slagpale

se werklike resultate het hul begrotings oorskry. By die

bedryfswins van R280 miljoen is R199 miljoen negatiewe

klandisiewaarde ingesluit wat ontstaan het met die

Graanboere Groeptransaksie.

• Die daling van R9.7 miljoen in wesensverdienste kan

toegeskryf word aan:

» Verkrygingskoste van R13.3 miljoen ten opsigte van die

verkryging van Graanboere Groep.

» Die dividendinkomste het met R2.5 miljoen gedaal

weens die kleiner aandeelhouding in Pioneer Voedsel

Groep wat spruit uit die ontbondelingstransaksie in die

vorige finansiële jaar.

• Fokus word steeds geplaas op die

identifisering van groeigeleenthede

wat volhoubare groei kan

bewerkstellig.

• Groter fokus word geplaas op

strategiese vennootskappe.

• Die verwagte groeidoelwitte, naamlik

omset, bedryfswins en netto wins,

behoort wel behaal te word in die

komende finansiële jaar.

• Kontantbestuur is gesentraliseer

en die kontant van die Groep word

daagliks bestuur.


STRATEGY


STRATEGIE


BACK INDEX FORWARD


Strategic

objectives /

Strategiese

doelwitte

Performance /

Prestasie


Toekomstige bydrae

• Return

on share-

holders’

funds

• A threeyear project was implemented to bring the return

on shareholders’ funds of every company in line with the

return targets set by the Board.

• A more intense focus will be placed

on balance sheet management,

which will result in a more effective

utilisation of assets.

• Opbrengs

op aandeel-

houers-

belang

• ’n Driejaarprojek is geïmplementeer om die opbrengs

op aandeelhouersbelang van elke maatskappy in lyn te

bring met die opbrengsdoelwitte soos deur die Direksie

daargestel.

• Daar gaan meer intensief gefokus

word op balansstaatbestuur, wat sal lei

tot ‘n meer doeltreffende aanwending

van bates.

Increase

shareholders’

value

• The removal of the restrictions on the trading of shares of

Overberg Agri resulted in the unlocking of shareholders’

value.

• The share price increased with 52% from R46 per share

after the unbundling of the Pioneer Food shares to

R70 per share.

• The net asset value per share, including treasury shares,

increased with 37% from R100.97 per share to R138.70

per share. This increase can mainly be ascribed to the

acquisition of Grain Farmers Group.

• The dividend per share increased by 14.29% from R1.05 per

share to R1.20 per share.

• The removal of the restrictions

on the trading of shares should

contribute further to the unlocking of

shareholders’ value.

• The dividend policy, which relates to

the performance of the Company,

should contribute further to increased

shareholders’ value.

Verhoog

aandeel-

houers waarde

• Die opheffing van die beperkings op die verhandeling

van Overberg Agri se aandele het tot die ontsluiting van

aandeelhouerswaarde gelei.

• Die aandeelprys het met 52% vanaf R46 per aandeel na die

ontbondeling van die Pioneer Voedselaandele tot R70 per

aandeel gestyg.

• Die netto batewaarde per aandeel, ingesluit tesourie

aandele, het met 37% vanaf R100.97 per aandeel

tot R138.70 per aandeel gestyg. Hierdie styging kan

hoofsaaklik toegeskyf word aan die verkryging van

Graanboere Groep.

• Die dividend per aandeel het met 14.29% vanaf R1.05 per

aandeel tot R1.20 per aandeel gestyg.

• Die opheffing van beperkings op die

verhandeling van aandele behoort

verder by te dra tot die ontsluiting van

aandeelhouerswaarde.

• Die dividendbeleid, wat verband hou

met die prestasie van die Maatskappy,

behoort verder by te dra tot

verhoogde aandeelhouerswaarde.


STRATEGY


STRATEGIE


BACK INDEX FORWARD


Strategic

objectives /

Strategiese

doelwitte

Performance /

Prestasie


Toekomstige bydrae

Corporate

governance

• An ethical culture has been established throughout the

Overberg Agri Group.

• A compliance framework has been formulated and

compliance is managed in accordance with the total

framework and time schedule.

• Every company exceeded or met its objectives in terms of

the recognition levels for Black Economic Empowerment.

• A reporting framework in accordance with identified

standards for integrated reporting has been compiled.

• The responsibilities of the Remuneration and

nominations committee have been broadened to fulfil

the responsibilities of the Social and ethics committee, as

provided for in the Companies Act.

• The amended Black Economic

Empowerment (BEE) codes and

also the AgriBEE codes can have

a negative effect on the ability of

the companies to achieve their BEE

objectives.

• Due to the diverse activities in the

Overberg Agri Group the complexity

of compliance in the Overberg Agri

Group is a challenge.

• The reporting framework will be

improved continuously in order to

comply with the standards.

• The practical execution of the

activities of the Social and ethics

committee remains a challenge.

Korpora tiewe

bestuur

• ’n Etiese kultuur is regdeur die Overberg Agri Groep

gevestig.

• ’n Nakomingsraamwerk is geformuleer en nakoming word

bestuur ooreenkomstig die totale raamwerk en tydskedule.

• Elke maatskappy het hul doelwitte in terme van die

erkenningsvlakke vir Swart Ekonomiese Bemagtiging

oorskry of bereik.

• ’n Rapporteringsraamwerk, ooreenkomstig

geïdentifiseerde standaarde vir geïntegreerde

verslagdoening, is opgestel.

• Die verantwoordelikhede van die Vergoeding

en nominasiekomitee is uitgebrei om die

verantwoordelikhede van die Sosiale en etiesekomitee,

soos vervat in die Maatskappywet, uit te voer.

• Die gewysigde Swart Ekonomiese

Bemagtiging (SEB) kodes en ook

die AgriBEEkodes kan die vermoë

van die maatskappye om hul

SEBdoelwitte te behaal negatief

beïnvloed.

• Weens die diverse bedrywighede

in die Overberg Agri Groep is die

kompleksiteit van nakoming in die

Overberg Agri Groep ’n uitdaging.

• Die rapporteringsraamwerk sal

voordurend verbeter word ten einde

aan standaarde te voldoen.

• Die praktiese uitvoering van die

werksaamhede van die Sosiale en

etiesekomitee bly ’n uitdaging.


STRATEGY


STRATEGIE


BACK INDEX FORWARD


The past year was probably the most favourable agricultural year

ever experienced by the Southern Cape and this in particu lar had a

positive effect on the profit and cash flow of Overberg Agri Bedrywe

and thus also an effect on the results of Overberg Agri.

On 1 December 2012 Overberg Agri Bedrywe obtained an interest

in Grain Farmers Group Limited of Moorreesburg in the amount of

R250 million. The shareholding of Overberg Agri Bedrywe amount

ed to 98.1% on 28 February 2013. This transaction will result in the

agricultural business of the Overberg Agri Group experiencing

significant expansion in the future. The negative goodwill resulting

from the acquisition had a positive effect of R199 million on the net

profit.

Revenue increased by 15% to R1 791 million. Gross profit increased

to R325 million, but the gross profit margin decreased by 0.1% to

18.2%. This decrease in margin can be ascribed to the tough eco

nomic con ditions during the year under review.

The decrease in headline earnings from R42.8 million to R33.1 million

can mainly be ascribed to:

• The decrease in dividend income due to the smaller investment

in Pioneer Foods Group Limited as a result of the unbundling

transaction in the previous year;

• The direct transaction costs of the Grain Farmers Group Limited

transaction amounting to R13,3 million, as well as certain onceoff

costs with the restructuring that took place after the acquisition.

Die afgelope jaar was seker die gunstigste landboujaar wat die

SuidKaap nog beleef het en dit het veral positief ingewerk op die

wins en kontantvloei van Overberg Agri Bedrywe. Dit het ook ‘n

invloed op die resultate van Overberg Agri gehad.

Op 1 Desember 2012 het Overberg Agri Bedrywe ‘n belang in

Graanboere Groep Beperk van Moorreesburg ten bedrae van

R250 miljoen bekom. Overberg Agri Bedrywe se aandeelhouding

het 98.1% beloop op 28 Februarie 2013. Hierdie transaksie sal

tot gevolg hê dat die landboubesigheid van die Overberg Agri

Groep wesenlike uitbreiding in die toekoms gaan ondervind. Die

negatiewe klandisiewaarde wat ontstaan het met die verkryging het

‘n positiewe invloed van R199 miljoen op die netto wins gehad.

Omset het met 15% tot R1 791 miljoen toegeneem. Die bruto wins

het tot R325 miljoen gestyg, maar die bruto wins marge het met

0.1% tot 18.2% gedaal. Hierdie daling in marge word toegeskryf aan

die stram ekonomiese toestande wat geheers het gedurende die

jaar onder oorsig.

Die daling in wesensverdienste van R42.8 miljoen na R33.1 miljoen

kan hoofsaaklik toegeskryf word aan:

• Die daling in dividendinkomste as gevolg van die vermindering

in die belegging in Pioneer Voedsel Groep Beperk weens die

ontbondelingstransaksie in die vorige jaar;

• Die direkte transaksiekoste van die Graanboere Groep Beperk

transaksie wat R13,3 miljoen beloop het, asook sekere eenmalige

rasionalisasiekoste met die herstrukturering wat plaasgevind het

na die verkryging.


FINANCIAL OVERVIEW


FINANSIËLE OORSIG

2009 2010 2011 2012 2013

1 296

1 088

1 451 1 558

1 791

Group Income (R’mil) / Groepinkomste (R’mil)


BACK INDEX FORWARD



FINANCIAL OVERVIEW


FINANSIËLE OORSIG

Group Profit (R’mil) / Groepwins (R’mil)

2009 2010 2011 2012 2013

600

500

400

300

200

100

0

60,8 56,733,7

235,8

581,3

Share Price (Rand) /Aandeelprys (Rand)

2009 2010 2011 2012 2013

100

90

80

70

60

50

40

30

20

10

0

5045

83

100

70

2009 2010 2011 2012 2013

Market Capitalisation vs Equity (R’mil) / Markkapitalisasie vs Ekwiteit (R’mil)

373

733

415

1 084

696

1 338

839 847

587

1 166

■ Market capitalisation / Markkapitalisasie

■ Equity attributable to owners / Ekwiteit toeskryfbaar aan eienaars


BACK INDEX FORWARD


ABRIDGED CONSOLIDATED GROUP / GROEP VERKORTE GEKONSOLIDEERDE

INCOME STATEMENT 2013 2012 2011 INKOMSTESTAAT

FOR THE YEAR ENDED 28 FEBRUARY R’mil R’mil R’mil VIR DIE JAAR GEËINDIG 28 FEBRUARIE

Revenue 1,791 1,558 1,451 Omset

Cost of sales –1,466 –1,273 –1,199 Koste van verkope

Gross profit 325 285 252 Bruto wins

Operating profit 280 751 85 Bedryfswins

Net finance costs –37 –34 –38 Netto finansieringskoste

Profit before taxation 243 717 47 Wins voor belasting

Taxation –7 –136 –13 Belasting

Profit for the year 236 581 34 Wins vir die jaar

ABRIDGED CONSOLIDATED STATEMENT GROUP / GROEP VERKORTE GEKONSOLIDEERDE STAAT

OF FINANCIAL POSITION 2013 2012 2011 VAN FINANSIËLE POSISIE

AS AT 28 FEBRUARY R’mil R’mil R’mil SOOS OP 28 FEBRUARIE

ASSETS BATES

Noncurrent assets 1,472 817 1,311 Niebedryfsbates

Current assets Bedryfsbates

Inventory 282 233 368 Voorraad

Trade and other receivables 414 465 323 Handels en ander debiteure

Cash and cash equivalents 39 23 27 Kontant en kontantekwivalente

Other current assets 31 27 23 Ander bedryfsbates

TOTAL ASSETS 2,238 1,565 2,052 TOTALE BATES

EQUITY AND LIABILITIES EKWITEIT EN AANSPREEKLIKHEDE

Equity 1,195 866 1,356 Ekwiteit

Noncurrent liabilities 323 133 112 Niebedryfslaste

Current liabilities – Borrowings and

instalment sale agreements 719 520 583

Bedryfslaste – Lenings en

afbetalingsverkoopsooreenkomste

Other current liabilities 1 46 1 Ander bedryfslaste

TOTAL EQUITY AND LIABILITIES 2,238 1,565 2,052 TOTALE EKWITEIT EN AANSPREEKLIKHEDE

Number of issued shares (‘000) 8,389 8,389 8,389 Aantal uitgereikte aandele (‘000)

Treasury shares held by subsidiaries (‘000) 130 130 130 Tesourieaandele gehou deur filiale (‘000)

Net asset value per share,

excluding treasury shares (rand) 145 105 164

Netto batewaarde per aandeel,

uitgesluit tesourieaandele (rand)


FINANCIAL OVERVIEW


FINANSIËLE OORSIG


BACK INDEX FORWARD


ABRIDGED CONSOLIDATED GROUP / GROEP VERKORTE GEKONSOLIDEERDE

CASH FLOW STATEMENT 2013 2012 2011 KONTANTVLOEISTAAT

FOR THE YEAR ENDED 28 FEBRUARY R’mil R’mil R’mil VIR DIE JAAR GEËINDIG 28 FEBRUARIE

Cash flows from / (utilised in) operating

activities294 58 136

Kontantvloei uit / (aangewend in)

bedryfsaktiwiteite

Working capital changes 411 –4 95 Bedryfskapitaalveranderinge

Income tax paid –184 –22 –16 Inkomstebelasting betaal

Other 67 84 57 Ander

Cash flows from / (utilised in) investing

activities –206 51 73


beleggingsaktiwiteite

Income tax paid on sale of investments0 74 0

Inkomstebelasting betaal met verkoop van

beleggings

Other –206 125 –73 Ander

Cash flows from / (utilised in) financing

activities–72 –113 –54


finansieringsaktiwiteite

Dividends paid –9 8 –13 Dividende betaal

Other –63 –105 –41 Ander

Net cash increase / (decrease) for the year 16 –4 9 Netto kontanttoename / (afname) vir die jaar

Net cash, cash equivalents and overdrafts at

the beginning of the year23 27 18

Netto kontant, kontantekwivalente en

oortrokke fasiliteite aan die begin van die jaar

Net cash, cash equivalents and overdrafts at

the end of the year39 23 27

Netto kontant, kontantekwivalente en

oortrokke fasiliteite aan die einde van die jaar

STATEMENT OF COMPREHENSIVE INCOME 2013 2012 STAAT VAN OMVATTENDE INKOMSTE

FOR THE YEAR ENDED 28 FEBRUARY R’mil R’mil VIR DIE JAAR GEËINDIG 28 FEBRUARIE

Profit for the year 236 581 Wins vir die jaar

Other comprehensive income: Ander omvattende inkomste:

Fair value adjustment on availableforsale

assets113 –517

Billikewaardeaanpassing op beskikbaarvirverkoop

bates

Taxation related to components of other

comprehensive income–19 –41

Belasting ten opsigte van komponente van ander

omvattende inkomste

Other comprehensive income for the year net

of taxation94 –558

Ander omvattende inkomste vir die jaar netto

van belasting

Total comprehensive income 330 23 Totale omvattende inkomste

Total comprehensive income attributable to: Totale omvattende inkomste toeskryfbaar aan:

Owners of the holding company 327 21 Eienaars van die beheermaatskappy

Noncontrolling interest 3 2 Niebeherende belang

330 23


FINANCIAL OVERVIEW


FINANSIËLE OORSIG


BACK INDEX FORWARD


R’000 2013 2012 2011 2010 2009 R’000

Assets 2 238 339 1 565 018 2 501 957 1 858 119 1 283 978 Bates

Noncurrent assets 1 472 619 817 051 1 311 121 1 042 965 758 760 Niebedryfsbates

Current assets 765 720 747 967 740 836 815 154 525 218 Bedryfsbates

Liabilities 1 042 534 698 652 695 946 757 613 510 624 Laste

Noncurrent liabilities 322 953 133 448 112 773 97 745 128 376 Niebedryfslaste

Current liabilities 719 581 565 204 583 172 659 868 382 248 Bedryfslaste

Equity 1 195 805 866 366 1 356 011 1 100 506 773 354 Ekwiteit

Equity attributable to the owners

of the holding company1 165 504 847 004 1 338 065 1 084 197 773 354

Ekwiteit toeskryfbaar aan die

eienaars van die beheermaatskappy

Equity attributable to

noncontrolling interests30 301 19 362 17 946 16 309 –

Ekwiteit toeskryfbaar aan

niebeherende belange

Total equity 1 195 805 866 366 1 356 011 1 100 506 773 354 Totale ekwiteit

Turnover 1 791 306 1 557 854 1 450 794 1 100 061 1 295 626 Omset

Gross profit 325 264 285 329 252 145 244 270 223 142 Bruto wins

Net profit 235 821 581 344 33 657 56 731 60 847 Netto wins

Headline earnings 33 085 42 836 31 512 54 679 49 870 Wesensverdienste

Capital ratios Kapitaalverhoudings

Equity to assets 53% 55% 66% 59% 60% Ekwiteit tot bates

Solvency ratio 215% 224% 295% 245% 251% Solvensieverhouding

Current ratio 1,06:1 1,32:1 1,27:1 1,24:1 1,37:1 Bedryfskapitaalverhouding

Acid test ratio 0,67:1 0,91:1 0,64:1 0,62:1 0,88:1 Vuurproefverhouding

Gearing ratio 76% 72% 49% 66% 62% Hefboomverhouding

Income ratios Inkomsteverhoudings

Gross profit margin 18% 18% 17% 22% 17% Bruto winsmarge

Net profit margin 13% 37% 2% 5% 5% Netto winsmarge

Effective tax rate 3% 19% 28% 22% 23% Effektiewe belastingkoers

Headline earnings per share

(cent)400,6 518,7 381,6 662,1 594,5

Wesensverdienste per aandeel

(sent)

Market capitalisation (R000) 587 201 838 858 696 252 415 235 373 292 Markkapitalisasie (R000)

The above ratios were calculated as follows:

Equity to assets = equity ÷ assets × 100

Solvency ratio = assets ÷ liabilities × 100

Current ratio = operational assets ÷ operational liabilities × 100

Acid test ratio = operational assets less stock ÷ operational

liabilities × 100

Gearing ratio = liabilities less deferred taxation liabilities ÷

equity × 100

Gross profit margin = gross profit / income

Net profit margin = net profit after taxation / income

Effective tax rate = taxation / net profit before taxation

Headline earnings per share = headline earnings / number of shares

in issue

Market capitalisation = market price per share at yearend

× number of issued shares

Die bogenoemde verhoudings is as volg bereken:

Ekwiteit tot bates = ekwiteit ÷ bates × 100

Solvensieverhouding = bates ÷ laste × 100

Bedryfskapitaalverhouding = bedryfsbates ÷ bedryfslaste × 100

Vuurproefverhouding = bedryfsbates min voorraad ÷

bedryfslaste × 100

Hefboomverhouding = laste min uitgestelde

belastingaanspreeklikhede ÷ ekwiteit × 100

Bruto winsmarge = Bruto wins / inkomste

Netto winsmarge = Netto wins na belasting / inkomste

Effektiewe belastingkoers = belasting / netto wins voor belasting

Wesensverdienste per aandeel = wesensverdienste / aantal

aandele uitgereik

Markkapitalisasie = markprys per aandeel op jaareinde

× aantal aandele uitgereik


FINANCIAL OVERVIEW


FINANSIËLE OORSIG


BACK INDEX FORWARD


The strive towards a sustainable and prosperous company is

embodied in the focused company structure comprising an

agricultural focused company as well as diversified companies.

Company structure:


OVERVIEW OF THE OVERBERG AGRI GROUP AND ITS ENVIRONMENT


OORSIG VAN DIE OVERBERG AGRI GROEP EN SY OMGEWING

Die strewe na ’n volhoubare en welvarende maatskappy word

vergestalt deur die gefokusde maatskappystruktuur wat bestaan

uit ’n landbougefokusde maatskappy asook ’n groepering van

gediversifiseerde maatskappye.

Maatskappy struktuur:

OVERBERG AGRI LIMITED

Overberg Agri Bedrywe (Pty) Ltd

Overberg Agri Beleggings

(Pty) Ltd

Grain Farmers

Group Limited

Moorreesburgse

Koringboere

(Pty) Ltd

Nutroscience

(Pty) Ltd

Boltfast (Pty) LtdBredasdorp

Slagpale (Pty) Ltd

Bontebok Lime

Works (Pty) LtdPromeal (Pty) Ltd

100% 100%

100%100% 74% 100%98,1%

100% 100%100%

100%

Unique Agri Trade

(Pty) Ltd

MKB Versekeringsmakelaars

(Pty) Ltd

Petfood Caterers

(Pty) Ltd


BACK INDEX FORWARD


Companies /

Maatskappye

Description / Beskrywing

Boltfast (Pty) Ltd Boltfast was established in 1983 and acquired by Overberg Agri on 1 November

2007. The Company specialises in the importation, distribution and marketing

of industrial fasteners. The Company has branches throughout the country, situ

ated in Cape Town (Epping and Montague Gardens), Port Elizabeth, Durban,

Johannesburg, Pretoria and Vredenburg, and is increasing its business activities

in Southern Africa. With more than 24 000 different stock items, Boltfast is one

of the biggest suppliers of stainless steel fasteners in South Africa. The main

markets are the mining, construction, manufacturing and marine sectors.

Boltfast (Edms) Bpk Boltfast is in 1983 gestig en is op 1 November 2007 deur Overberg Agri bekom.

Die Maatskappy spesialiseer in die invoer, verspreiding en bemarking van indus

triële hegstukke. Die Maatskappy het landswyd takke wat geleë is in Kaapstad

(Epping en Montague Gardens), Port Elizabeth, Durban, Johannesburg, Pretoria

en Vredenburg en begin toenemend besigheid doen in SuiderAfrika. Met meer

as 24 000 verskillende voorraad items, is Boltfast een van die grootste lewe

ransiers van vlekvryestaalhegtings in SuidAfrika. Die vernaamste markte is die

mynbou, konstruksie, vervaardiging en mariene sektore.

Bontebok Lime Works (Pty) Ltd Bontebok Lime Works in Bredasdorp has been in operation since 1924 and pro

duces high quality lime for various uses. The Company manufactures, markets

and distributes agricultural lime, feed lime, whitewashing lime, building lime,

road building lime, Aquastab and Concrim nationally and internationally. The

main markets are agricultural, road building and water purification.

Bontebok Kalkwerke (Edms) Bpk Bontebok Kalkwerke in Bredasdorp is sedert 1924 in bedryf en produseer hoë

gehalte kalk vir verskeie gebruike. Die onderneming vervaardig, bemark en

versprei landboukalk, voerkalk, afwitkalk, boukalk, padboukalk, watersuiwering

skalk, Aqua stab en Concrim nasionaal en internasionaal. Die vernaamste markte

is landbou, padbou en watersuiwering.

Bredasdorp Slagpale (Pty) Ltd Bredasdorp Slagpale in Bredasdorp offers slaughtering facilities for sheep and

cattle with a capacity of 450 small stock units per day. The Company has differ

entiated itself in terms of the quality of meat products supplied to the retail and

wholesale trade. The trademark, Overberg Vleis, is already wellknown and is

becoming increasingly popular due to the exceptional quality of the meat from

this region.

Bredasdorp Slagpale (Edms) Bpk Bredasdorp Slagpale te Bredasdorp bied slaggeriewe aan vir skaap en bees met

‘n kapasiteit van 450 kleinveeeenhede per dag. Die Maatskappy het homself

gedifferensieer in terme van die kwaliteit van vleisprodukte wat aan die groot

en kleinhandel voorsien word. Die handelsmerk, Overberg Vleis, is reeds wyd

bekend en vind toenemend byval vanweë die uitsonderlike kwaliteit van vleis

vanuit die streek.

Promeal (Pty) Ltd Promeal manufactures, markets and distributes wet and dry pet food country

wide to all the bigger retailers in South Africa, as well as neighbouring countries.

The plant, situated in Atlantis, is the second biggest manufacturer of wet pet

food in South Africa, with wellknown trademarks like Boss, Top Cat and Petley’s.

Promeal (Edms) Bpk Promeal vervaardig, bemark en versprei nat en droë troeteldierkos landswyd aan

al die groter kleinhandelaars in SuidAfrika, sowel as aangrensende lande. Die

aanleg, geleë te Atlantis, is die tweede grootste vervaardiger van nat troetel dier

kos in SuidAfrika met bekende handelsmerke soos Boss, Top Cat en Petley’s.






BACK INDEX FORWARD


Companies /

Maatskappye

Description / Beskrywing

Overberg Agri Bedrywe (Pty) Ltd Overberg Agri Bedrywe operates mainly in the agricultural environment of the

Overberg and adjacent regions. The Company focuses on the provision of agri

cultural and retail products, grain services, technical support, financing and

shortterm insurance.

During the year under review, Overberg Agri Bedrywe acquired 98.1% of the

shares of Grain Farmers Group Limited, the holding company of the following

operating companies:

• MKB Versekeringsmakelaars (Pty) Ltd, that operates a shortterm insurance

book.

• Moorreesburgse Koringboere (Pty) Ltd, that mainly operates in the agri

cultural environment of Moorreesburg and adjacent regions. The services

offered by the Company are similar to those of Overberg Agri Bedrywe.

• Nutroscience (Pty) Ltd, that manufactures, markets and distributes dry pet

food to retailers, the aquaculture industry and veterinary surgeons in South

Africa.

• Petfood Caterers (Pty) Ltd, that manufactures, markets and distributes dry

pet food to retailers in South Africa.

• Unique Agri Trade (Pty) Ltd, that focuses on the rental of property in

Moorreesburg.

Overberg Agri Bedrywe (Edms) Bpk Overberg Agri Bedrywe doen hoofsaaklik besigheid in die landbouomgewing

van die Overberg en aangrensende streke. Die Maatskappy fokus op die ver

skaffing van landbou en kleinhandelprodukte, graandienste, tegniese bystand,

finansiering en korttermynversekering.

Overberg Agri Bedrywe het die afgelope jaar 98.1% van die aandele van Graan

boere Groep Beperk bekom, wat die houermaatskappy is van die volgende

bedryfsmaatskappye:

• MKB Versekeringsmakelaars (Edms) Bpk, wat ‘n korttermyn

versekeringsboek bedryf.

• Moorreesburgse Koringboere (Edms) Bpk, wat hoofsaaklik besigheid in die

landbouomgewing van Moorreesburg en aangrensende streke doen. Die

dienste wat deur die Maatskappy aangebied word, is soortgelyk aan dié van

Overberg Agri Bedrywe.

• Nutroscience (Edms) Bpk, wat droë troeteldierkos vervaardig, bemark

en versprei aan kleinhandelaars, die akwakultuurbedryf en veeartse in

SuidAfrika.

• Petfood Caterers (Edms) Bpk, wat droë troeteldierkos vervaardig, bemark

en versprei aan kleinhandelaars in SuidAfrika.

• Unique Agri Trade (Edms) Bpk, wat fokus op verhuring van eiendom in

Moorreesburg.






BACK INDEX FORWARD


External environment / Eksterne omgewing

External

environmental

influence /

Eksterne

omgewings-

invloed

Influence and expected changes /

Invloed en verwagte veranderinge

Reaction of the Company to achieve its strategic

objectives /

Reaksie van die Maatskappy om sy strategiese

doelwitte te behaal

Climate • Agricultural activities form a big part of Overberg

Agri’s business and climate change and extreme

climatic phenomena can have a significant effect on

the performance of the Company.

• Overberg Agri focuses on facilitating and making

new technology available in terms of inputs and

production practices to restrict the possible negative

impact of climate change on agriculture.

• The diversification strategy of the Company and

accompanying investments in businesses that can

change the risk profile of the enterprise making the

Company less dependent on agriculture and therefore

the effect that climate change may have on the

Company.

Klimaat • Landbouaktiwiteite vorm ‘n groot deel van Overberg

Agri se besigheid en klimaatsverandering en uiterste

klimaatsverskynsels kan ‘n wesenlike impak op die

prestasie van die Maatskappy hê.

• Overberg Agri fokus op die fasilitering en beskikbaar

stelling van nuwe tegnologie in terme van insette en

produksiepraktyke om die moontlike negatiewe impak

van klimaatsverandering op landbou te beperk.

• Die diversifikasiestrategie van die Maatskappy en

gepaardgaande beleggings in besighede wat die

risikoprofiel van die onderneming kan verander, maak

die Maatskappy minder afhanklik van landbou en dus

die effek wat klimaatsveranderings op die Maatskappy

kan hê.

Market • Dependence on the importation of products and raw

materials means that currency changes and volatility

have a significant effect on the profitability of the

Group.

• Globalisation results in volatility and competition in

the international markets that have a negative effect

on the Group.

• The pressure on the local economy results in a

competitive market environment that places pressure

on margins.

• Potential expansion to the rest of Africa.

• Overberg Agri uses currency hedging and good

management practices.

• Flexibility and adaptability to adapt timeously to

changing market circumstances.

• Margins are actively managed by focusing on

procurement, category and inventory management.

• The diversification strategy enables the Company to

accommodate fluctuating market circumstances.

• Increasing indirect involvement in Africa initiatives.

Mark • Afhanklikheid van die invoer van produkte en

grondstowwe veroorsaak dat verandering in

wisselkoers en volatiliteit ‘n wesenlike invloed op die

winsgewendheid van die Groep het.

• Globalisering veroorsaak dat die Groep negatief

beïnvloed word deur volatiliteit en kompetisie op die

internasionale markte.

• Die druk op die plaaslike ekonomie veroorsaak ‘n

kompeterende markomgewing wat marges onder

druk plaas.

• Potensiële uitbreidings na die res van Afrika.

• Overberg Agri maak gebruik van

wisselkoersverskansing en goeie bestuurspraktyke.

• Buigbaarheid en aanpasbaarheid om tydig aan te pas

by veranderde markomstandighede.

• Marges word aktief bestuur deur te fokus op aankope,

kategorie en voorraadbestuur.

• Die diversifikasiestrategie stel die Maatskappy

in staat om wisselende markomstandighede te

akkommodeer.

• Toenemende indirekte betrokkenheid by Afrika

inisiatiewe.






BACK INDEX FORWARD


External

environmental

influence /

Eksterne

omgewings-

invloed




objectives /


doelwitte te behaal

Resources • The availability and quality of land and water plays an

important role in the sustainability of the Group.

• The supply and cost of electricity and infrastructure

are of crucial importance in the supply of products

and services.

• Dependence on the availability of knowledgable

employees who have the necessary skills and

experience.

• Dependence on available and affordable capital.

• Overberg Agri realises its dependence on natural

resources and strategies are aligned with the

Company’s responsibility towards natural resources.

• Alternative sources of energy supply are investigated.

• Increasing focus is placed on the identification,

training and empowerment of staff.

• Overberg Agri has a strong capital base that supports

growth.

• Alternative sources of financing are continuously

investigated.

Hulpbronne • Die beskikbaarheid en kwaliteit van grond en water

speel ’n belangrike rol in die volhoubaarheid van die

Groep.

• Die voorsiening van en koste verbonde aan

elektrisiteit en infrastruktuur is bepalend in die

verskaffing van produkte en dienste.

• Afhanklikheid van die beskikbaarheid van kundige

personeel wat oor die nodige vaardighede en

ervaring beskik.

• Afhanklikheid van beskikbare en bekostigbare

kapitaal.

• Overberg Agri besef sy afhanklikheid van natuurlike

hulpbronne en strategieë word belyn met die

Maatskappy se verantwoordelikheid teenoor

natuurlike hulpbronne.

• Alternatiewe bronne van energieverskaffing word

ondersoek.

• Toenemende fokus word geplaas op die

identifisering, opleiding en bemagtiging van

personeel.

• Overberg Agri beskik oor ’n sterk kapitaalbasis wat

groei ondersteun.

• Alternatiewe bronne van finansiering word

voortdurend ondersoek.

Regulatory • Extensive and excessive regulation has a restrictive

effect on the Group.

• Compliance holds a cost implication for Overberg

Agri.

• Overberg Agri is committed to comply with legislation

and to be a good corporate citizen.

• Costs relating to compliance are restricted as far

as possible without detracting from the Company’s

responsibility.

Regulatories • Omvangryke en oormatige regulering het ’n

beperkende invloed op die Groep.

• Nakoming hou ’n kosteimplikasie vir Overberg Agri

in.

• Overberg Agri is daartoe verbind om te voldoen aan

wetgewing en om ‘n goeie korporatiewe burger te

wees.

• Koste verbonde aan nakoming word sover moontlik

beperk sonder om afbreuk te doen aan die

Maatskappy se verantwoordelikheid.





External environment (continued) / Eksterne omgewing (vervolg)


BACK INDEX FORWARD


External

environmental

influence /

Eksterne

omgewings-

invloed




objectives /


doelwitte te behaal

Socio-political • A stable South African sociopolitical environment is

characterised by the interaction between population

growth, poverty and inequality, health, training, social

mobility, bureaucracy and corruption. These aspects

have an effect on political decisionmaking, strikes,

labour unrest, the effectiveness of labour and the

performance of the economy.

• Overberg Agri has a material investment in the

agricultural sector and increasing political pressure

on transformation of agricultural land has a significant

effect on the Group.

• Overberg Agri plays a positive role as far as

possible in the environments within which the

Group operates to stabilise the sociopolitical

circumstances by, inter alia, maintaining a stable work

environment, maintaining good labour relationships

and establishing good relationships with local

stakeholders.

Sosio-polities • ’n Stabiele SuidAfrikaanse sosiopolitieke

omgewing word gekenmerk deur die interaksie

tussen populasiegroei, armoede en ongelykheid,

gesondheid, opleiding, sosiale mobiliteit, burokrasie

en korrupsie. Hierdie aspekte het ’n invloed op

politieke besluitneming, stakings, arbeidsonrus,

die effektiwiteit van arbeid en die prestasie van die

ekonomie.

• Overberg Agri het ’n wesenlike belegging in die

landbousektor en toenemende politieke druk op

transformasie van landbougrond het ’n wesenlike

invloed op die Groep.

• Overberg Agri speel sover moontlik ’n positiewe rol

in die omgewings waarbinne die Groep bedryf word

om die sosiopolitieke omstandighede te stabiliseer

deur onder andere ’n stabiele werksomgewing te

handhaaf, goeie arbeidsverhoudinge te handhaaf en

goeie verhoudinge met plaaslike belangegroepe te

vestig.

Technological • Overberg Agri’s ability to adapt timeously and to

remain competitive with regards to technology

and innovation are key to the future success of the

Company.

• Technology and innovation are an integral part of

Overberg Agri’s strategic objectives in order to

ensure that the Company remains relevant in a highly

competitive market.

Tegnologies • Die vermoë van Overberg Agri om tydig aan te pas

en kompeterend te bly wat betref tegnologie en

innovasie is bepalend vir die toekomstige sukses van

die Maatskappy.

• Tegnologie en innovasie is ’n integrale deel van

Overberg Agri se strategiese doelwitte ten einde te

verseker dat die Maatskappy relevant bly in die hoogs

kompeterende mark.





External environment (continued) / Eksterne omgewing (vervolg)


BACK INDEX FORWARD


In terms of King III the Board of Overberg Agri acknowledges its

responsibility for the management of risks and to ensure that risk

assess ment is done on a regular basis and is documented. It is the

Board’s responsibility to identify, assess, analyse and manage the

significant business risks.

External environ-

mental influence /

Eksterne

omgewingsinvloed

Risks that can influence the achievement

of objectives /

Risiko’s wat die behaling van doelwitte

kan beïnvloed

Preventive measures to limit risks and the

Company’s reaction /

Voorkomende maatreëls om risiko’s te beperk en die reaksie

van die Maatskappy daarop

Climate • Too much emphasis and dependence on

agriculture.

• Overberg Agri has a diversification strategy within which

investments are made in businesses that are less dependent

on agriculture and can counteract the cyclical nature of

agriculture.

Klimaat • ‘n Te groot fokus op en afhanklikheid van

landbou.

• Overberg Agri het ’n diversifikasiestrategie waarbinne

beleggings gemaak word in besighede wat minder afhanklik

is van die landbou en die sikliese aard van landbou kan

teenwerk.

Market • Limited economic growth.

• Volitile exchange rates.

• Volitile commodity prices.

• In order to counteract the pressure that poor economic

growth places on the margins of Overberg Agri, much

emphasis is placed on procurement, effectiveness and cost

savings.

• Hedging of exchange rates.

• Study market information and hedge procurement when

possible.

Mark • Beperkte ekonomiese groei.

• Wisselvallige wisselkoerse.

• Wisselvallige kommoditeitpryse.

• Ten einde die druk wat swak ekonomiese groei op die marges

van Overberg Agri het, teen te werk, word baie fokus geplaas

op aankope, effektiwiteit en kostebesparings.

• Verskansing van wisselkoers.

• Bestudeer mark inligting en verskans aankope waar moontlik.

Resources • A lack of availability of trained and

competent employees.

• Access to and high cost of financing.

• A lack of protection of intellectual capital.

• Overberg Agri focuses on the identification, training,

empowerment and retention of staff in order to limit the risk

for the Company.

• Overberg Agri evaluates and investigates financing resources

on a continuous basis in order to ensure that the Company has

access to competitive financing.

Hulpbronne • ’n Gebrek aan die beskikbaarheid van

opgeleide en bekwame personeel.

• Toegang tot en hoë koste van

finansiering.

• ‘n Gebrek aan beskerming van

intellektuele kapitaal.

• Overberg Agri fokus op die identifisering, opleiding,

bemagtiging en behoud van personeel ten einde die risiko vir

die Maatskappy te beperk.

• Overberg Agri evalueer en ondersoek voortdurend

finansieringsbronne ten einde te verseker dat die Maatskappy

toegang het tot kompeterende finansiering.


RISKS AND OPPORTUNITIES


RISIKO’S EN GELEENTHEDE

In terme van King III erken die Direksie van Overberg Agri sy ver

antwoordelikheid vir die bestuur van risiko’s en om te verseker dat

risikoassessering op ’n gereelde basis plaasvind en gedokumen teer

word. Die Direksie is verantwoordelik vir die identifisering, asses

sering, analisering en bestuur van die wesenlike besigheidsrisiko’s.


BACK INDEX FORWARD


External environ-

mental influence /

Eksterne

omgewingsinvloed

Risks that can influence the achievement

of objectives /

Risiko’s wat die behaling van doelwitte

kan beïnvloed

Preventive measures to limit risks and the

Company’s reaction /

Voorkomende maatreëls om risiko’s te beperk en die reaksie

van die Maatskappy daarop

Regulatory • Noncompliance with relevant legislation.

• Contradictory or unrealistic expectations

of shareholders and other stakeholders.

• Gap between the market value and net

asset value of shares.

• A compliance framework has been compiled and statutory

and other compliance is monitored by the Remuneration,

nominations, social and ethics Committee. Relevant legislation

has been prioritised in terms of importance.

• Overberg Agri focuses on sustainability and wealth creation

for all stakeholders and recognises and manages the possible

contradictory and unrealistic expectations of shareholders and

other stakeholders.

• All restrictions on the trading of shares have already been

removed in order to lessen the gap between the net asset

value and market value of the share.

Regulatories • Die nienakoming van relevante

wetgewing.

• Teenstrydige of onrealistiese

verwagtinge van aandeelhouers en ander

belangegroepe.

• Gaping tussen die markwaarde en netto

batewaarde van aandele.

• ’n Nakomingsraamwerk is opgestel en statutêre en ander

nakoming word gemonitor deur die Vergoeding, nominasie,

sosiale en etiesekomitee. Relevante wetgewing is

geprioritiseer in terme van belangrikheid.

• Overberg Agri fokus op volhoubaarheid en welvaartskepping

vir alle belanghebbendes en erken en bestuur die moontlike

teenstrydige en onrealistiese verwagtinge van aandeelhouers

en ander belanghebbendes.

• Alle beperkings op aandeelverhandeling is reeds opgehef ten

einde die gaping tussen die netto batewaarde en markwaarde

van die aandeel te verklein.

Socio-political • Sociopolitical instability. • Overberg Agri endeavours, in the immediate environment

within which the respective companies operate, to play a

stabilising role in the social environment through healthy

labour relationships, sustainability and job opportunities.

• Proactive action through timeous information about political

unrest and action.

Sosio-polities • Sosiopolitieke onstabiliteit. • Overberg Agri poog om in die direkte omgewing waarbinne

die onderskeie maatskappye bedryf word ’n stabiliserende rol

te speel in die sosiale omgewing deur middel van gesonde

arbeidsverhoudinge, volhoubaarheid en werksgeleenthede.

• Proaktiewe optrede deur voortydige kennis van politieke

onrus en optrede.

Technological • The inability of the Company to be

adaptable and to be able to quickly adjust

to change.

• Technology and innovation are an integral part of Overberg

Agri’s strategic objectives in order to ensure that the Company

remains relevant in the highly competitive market.

Tegnologies • Die onvermoë van die Maatskappy

om aanpasbaar te wees en vinnig by

verandering te kan aanpas.

• Tegnologie en innovasie is ’n integrale deel van Overberg

Agri se strategiese doelwitte ten einde te verseker dat die

Maatskappy relevant bly in die hoogs kompeterende mark.


RISKS AND OPPORTUNITIES


RISIKO’S EN GELEENTHEDE


BACK INDEX FORWARD


Overberg Agri is a public company with 751 shareholders.

Entities / Entiteite:

Number / Aantal %

Close corporations / Beslote korporasies 67 8.92

Companies / Maatskappye 69 9.19

Trusts / Trusts 101 13.45

Individuals / Individue 494 65.78

Partnerships / Vennootskappe 3 0.40

Other / Ander 17 2.26

Number of shares / Hoeveelheid aandele:

Shareholders/Aandeelhouers Shares/Aandele

Number / Aantal % Number / Aantal %

Between 1 and 1000 / Tussen 1 en 1000 331 44.07 117 469 1.40

Between 1001 and 10 000 / Tussen 1001 en 10 000 249 33.16 955 453 11.39

Between 10 001 and 50 000 / Tussen 10 001 en 50 000 147 19.57 3 281 459 39.12

Between 50 001 and 80 000 / Tussen 50 001 en 80 000 18 2.40 1 166 568 13.91

Above 80 000 / Bo 80 000 6 0.80 2 867 634 34.18

751 100.00 8 388 583 100.00

Share trading

The Company’s shares are traded through an internal trading mech

anism and are subject to regular internal audit.

Share trading by Directors during the year under review was as

follows:

FGG Joubert: sold 1 200 shares @ R73.00 per share

MJ Roux: bought 342 shares @ R72.10 per share and 1 000 shares at

R70.00 per share

HP Marais: bought 650 shares @ R75.00 per share and 798 shares @

R70.00 per share

AJ Uys: bought 100 shares @ R68.00 per share

Overberg Agri is ‘n openbare maatskappy met 751 aandeel houers.


OWNERSHIP AND SHARE TRADING


EIENAARSKAP EN AANDELEVERHANDELING

Aandeleverhandeling

Die Maatskappy se aandele word verhandel deur ‘n interne verhan

delingsmeganisme en is onderhewig aan gereelde interne oudit.

Aandeleverhandeling deur Direkteure gedurende die jaar onder

oorsig was soos volg:

FGG Joubert: verkoop 1 200 aandele @ R73.00 per aandeel

MJ Roux: koop 342 aandele @ R72.10 per aandeel en 1 000 aandele

teen R70.00 per aandeel

HP Marais: koop 650 aandele @ R75.00 per aandeel en 798 aandele

@ R70.00 per aandeel

AJ Uys: koop 100 aandele @ R68.00 per aandeel


BACK INDEX FORWARD


The philosophy behind the Company’s strategy and structure is to

place emphasis on the sustainability of the Company, its clients,

shareholders and other stakeholders. The diversification strategy of

Overberg Agri and accompanying investments in businesses that

can change the risk profile of the enterprise and make the Company

less dependent on agriculture, is specifically focused on ensuring

sustainability over the long term.

Training

Overberg Agri acknowledges its responsibility with regard to the

rectifi cation of inequality with regards to employment and believes

that this inequality can be rectified mainly through training and

development. Every subsidiary company is evaluated against targets

set in this regard. Focus is placed on the training and appointment

of internal candidates before appointments from outside the

companies are considered. Various learnership positions have been

created for this purpose, whereby employees can be prepared for

promotion through practical exposure and formal training.

Overberg Agri has started with ABET classes in 2005 and continues

with the presentation of ABET classes.

Learnerships are offered in particular at Overberg Agri Bedrywe to

address the critical shortages of technical skills. Three employees

are currently busy with an apprenticeship and one employee com

pleted the apprenticeship successfully during the year under review.

All the companies offer financial support to their staff to obtain a

tertiary qualification. The support consists of a bursary, but if the

employee ceases or fails his / her studies, the bursary is converted

into a loan that is repayable to the Company.

Black Economic Empowerment

Overberg Agri supports the principles of Black Economic Empower

ment and every company has specific targets in terms of this legis

lation and these codes. The performance of the companies against

the targets is as follows:

Business / Besigheid Target i.t.o. BBE Scorecard against 2013 /

Doelwit i.t.v. SEB-telkaart teen 2013

Actual performance i.t.o. BEE Scorecard /

Werklike prestasie i.t.v. SEB-telkaart

Boltfast Level / Vlak 7 Level / Vlak 4

Bontebok Lime Works Level / Vlak 7 Level / Vlak 4

Bredasdorp Slagpale Level / Vlak 7 Level / Vlak 7

Promeal Level / Vlak 7 Level / Vlak 4

Overberg Agri Bedrywe Level / Vlak 7 Level / Vlak 6


SUSTAINABILITY


VOLHOUBAARHEID

Die filosofie agter die Maatskappy se strategie en struktuur is juis

om fokus te plaas op die volhoubaarheid van die Maatskappy, sy

kliënte, aandeelhouers en ander belangegroepe. Die diversifikasie

strategie van Overberg Agri en gepaardgaande beleggings in

besig hede wat die risikoprofiel van die onderneming kan verander

en die Maatskappy minder afhanklik maak van landbou, is juis daar

op gefokus om volhoubaarheid oor die lang termyn te verseker.

Opleiding

Overberg Agri erken sy verantwoordelikheid ten opsigte van die reg

stelling van ongelykheid wat betref indiensneming en glo dat hier die

onge lyk heid hoofsaaklik deur middel van opleiding en ontwikkeling

reg gestel sal word. Elke filiaalmaatskappy word geëvalueer teenoor

doel witte in hierdie verband. Fokus word geplaas op die opleiding

en aanstelling van interne kandidate voor aanstellings van eksterne

kandidate deur die maatskappye oorweeg word. Verskeie leerling

poste is vir hier die doel geskep waardeur personeel deur middel

van praktiese blootstelling en formele opleiding gereed gemaak

word vir bevorderingsgeleenthede.

Overberg Agri het reeds in 2005 begin met die aanbied van ABET

klasse en gaan steeds voort hiermee.

Die Maatskappy bied veral by Overberg Agri Bedrywe leerlingskappe

aan om die kritieke tekort aan tegniese vaardighede aan te spreek.

Drie persone is tans besig met ’n vakleerlingskap en een persoon het

gedurende die jaar onder oorsig die vakleerlingskap suksesvol voltooi.

Al die maatskappye bied finansiële ondersteuning aan hul per

soneel ter verkryging van ’n tersiêre kwalifikasie. Die ondersteuning

bestaan uit ’n beurs, maar indien die personeellid sy/haar studies

voortydig staak of nie slaag nie, word die beurs in ’n lening omskep

en is terugbetaalbaar aan die Maatskappy.

Swart Ekonomiese Bemagtiging

Overberg Agri ondersteun die beginsels van Swart Ekonomiese

Bemagtiging en elke maatskappy het spesifieke doelwitte in terme

van hierdie wetgewing en kodes. Die prestasie van die maatskappye

teenoor die doelwitte is as volg:


BACK INDEX FORWARD


Health and Safety

Creating and maintaining a healthy and safe working environment is

a priority and this is managed in accordance with the Occupational

Health and Safety Act. The practical execution of this takes place

in terms of a policy and through a structure of a safety committee

and representatives within each company. Overberg Agri also uses

external experts to evaluate and monitor the performance in terms

of health and safety.

Community involvement

Overberg Agri acknowledges its responsibility towards the wider

community and is actively involved in the support of the communi

ties within which it operates. In the year under review Overberg Agri

was involved in the following community projects:

• Lisedi Educare

Bontebok Lime Works, as part of the Company’s socio economic

contribution, built a preschool care centre in Bredasdorp. The

school was officially opened on 16 January 2013.

• Farm Worker Day

Overberg Agri Bedrywe held the 11th farm worker day during

the year under review. The day was attended by approximately

350 farm workers from the surrounding areas. The day focuses on

aspects such as financial planning, farming practices with various

demonstrations, as well as social aspects like alcohol and drug

abuse.

• Spayathon

In September 2012 Promeal again offered the residents of Atlan

tis an opportunity to have their pets sterilised, washed, dipped

and inoculated free of charge. Promeal annually carries the cost

of this initiative.

• Albert Myburg High School and Swartberg High School

Overberg Agri Bedrywe, Bredasdorp Slagpale and Boltfast, as

part of the companies’ contributions to socioeconomic develop

ment, donated chairs, a lawnmower and paint to the Albert

Myburg High School in Bredasdorp. 25 new computers were also

donated to the Swartberg High School in Caledon and the media

room of the school was fitted with new furniture and equipment.

• Primary agriculture

Overberg Agri Bedrywe is actively involved in the local agricul

tural associations through sponsorships, provision of facilities

and other active participation and by annually making a financial

contribution.

• Schools in the Overberg

Schools in the Overberg can apply annually for an amount from

the Company in support of the administrative obligations of the

relevant school.

Gesondheid en Veiligheid

Die skep en handhawing van ’n gesonde en veilige werksomgewing

is ’n prioriteit en word bestuur in ooreenstemming met die Wet op

Beroepsgesondheid en Veiligheid. Die praktiese uitvoering hiervan

vind plaas aan die hand van ’n beleid en deur middel van ’n struk

tuur van ‘n veiligheidskomitee en verteenwoordigers binne elke

maatskappy. Overberg Agri maak ook gebruik van eksterne deskun

diges om die prestasie in terme van gesondheid en veiligheid te

evalueer en te moniteer.

Gemeenskapsbetrokkenheid

Overberg Agri erken sy verantwoordelikheid wat betref die breër

gemeen skap en is aktief betrokke in die ondersteuning van die

gemeen skappe waarbinne ons besigheid doen. In die jaar onder

oor sig was Overberg Agri betrokke by die volgende gemeenskaps

projekte:

• Lisedi Educare

Bontebok Kalkwerke het as deel van die Maatskappy se

sosioekonomiese bydrae ’n voorskoolse sorgsentrum gebou in

Bredasdorp. Die skool is amptelik geopen op 16 Januarie 2013.

• Plaaspersoneeldag

Overberg Agri Bedrywe het die 11de plaaspersoneeldag ge

durende die jaar onder oorsig aangebied wat deur ongeveer

350 plaaswerkers van die omgewing bygewoon is. Die dag fokus

op aspekte soos finansiële beplanning, boerderypraktyke met

verskeie demonstrasies, asook sosiale aspekte soos drank en

dwelmmisbruik.

• Spayathon

Promeal het gedurende September 2012 weereens ’n geleent

heid gebied aan die inwoners van Atlantis om hul troeteldiere

gratis te steriliseer, te was, te dip en in te ent. Promeal dra jaarliks

die koste hiervan.

• Albert Myburg Hoërskool en Swartberg Hoërskool

Overberg Agri Bedrywe, Bredasdorp Slagpale en Boltfast het,

in terme van die maatskappye se bydraes tot sosioekonomiese

ontwikkeling, stoele, ‘n grassnyer en verf aan die Albert Myburg

Hoërskool te Bredasdorp geskenk. 25 nuwe rekenaars is aan die

Swartberg Hoërskool te Caledon geskenk en die mediakamer

van die skool is toegerus met nuwe meubels en toerusting.

• Primêre landbou

Overberg Agri Bedrywe is aktief betrokke by die plaaslike land

bouverenigings deur borgskappe, verskaffing van fasiliteite en

ander aktiewe deelname en deur jaarliks ’n finansiële bydrae

hiertoe te maak.

• Skole in die Overberg

Die skole in die Overberg kan op aansoek jaarliks ’n bedrag

van die Maatskappy ontvang ter ondersteuning van die admini

stratiewe verpligtinge van die betrokke skool.


SUSTAINABILITY


VOLHOUBAARHEID


BACK INDEX FORWARD


Environmental management

Overberg Agri is very aware of its responsibility towards the

environment and the protection of the environment within which

the business operates. As the Company is actively involved in

agriculture, mining and manufacturing, environmental management

forms an integral part of the Company’s focus and the impact on

the environment is managed in accordance with relevant standards

and legislation.

Omgewingsbestuur

Overberg Agri is deeglik bewus van sy verantwoordelikheid teenoor

die omgewing en die beskerming van die omgewing waarbinne die

onderneming besigheid doen. Aangesien die Maatskappy aktief

betrokke is by landbou, mynbou en vervaardiging, vorm omge

wingsbestuur ‘n integrale deel van die Maatskappy se fokus en

word die impak op die omgewing bestuur in ooreenstemming met

relevante standaarde en wetgewing.


SUSTAINABILITY


VOLHOUBAARHEID


CORPORATE GOVERNANCE


KORPORATIEWE BESTUUR

Corporate governance is primarily the responsibility of the Board.

The Overberg Agri Group Board accepts this responsibility and is

committed to the principles of good corporate governance.

Board and subsidiary Boards

The Board is responsible for providing the strategic direction and

control of the Company while at the same time also ensuring its

sustainability. The Board is also responsible for setting the Company

values and ensuring these values are entrenched in all aspects of

the business.

The Overberg Agri Board accepts its responsibility with regard to

ethical leadership, the governance of risks, stakeholder relation

ships, strategic direction and control, and sustainability in relation

to the entire Overberg Agri Group of companies.

The Board comprises 12 Nonexecutive Directors and three Execu

tive Directors. The Chairperson, Mr D de Kock, and ViceChairper

son, Mr DG de Kock, are Nonexecutive Directors.

In terms of the provisions of the Memorandum of Incorporation, one

third of the Board will rotate from the 2013 Annual General Meet

ing. The Executive Directors and the two Directors appointed by

Thembeka OVB Holdings (Pty) Ltd are not subject to rotation.

Korporatiewe bestuur is primêr die verantwoordelikheid van die

Direksie. Die Overberg Agri Groep Direksie aanvaar hierdie verant

woordelikheid en is verbind tot die beginsels van goeie korporatiewe

bestuur.

Direksie en filiaaldireksies

Die Direksie is verantwoordelik vir die strategiese rigting en beheer

van die Maatskappy, terwyl die volhoubaarheid daarvan terselfder

tyd verseker moet word. Die Direksie is ook verantwoordelik om die

Maatskappy se waardes te stel en te verseker dat hierdie waardes in

alle aspekte van die besigheid vasgelê is.

Die Overberg Agri Direksie aanvaar sy verantwoordelikheid ten op

sigte van etiese leierskap, die bestuur van risiko’s, verhoudinge met

belanghebbers, strategiese rigting en beheer, en volhoubaarheid

ten opsigte van die totale Overberg Agri Groep van maatskappye.

Die Direksie bestaan uit 12 Nieuitvoerende Direkteure en drie Uit

voerende Direkteure. Die Voorsitter, mnr D de Kock, en Ondervoor

sitter, mnr DG de Kock, is Nieuitvoerende Direkteure.

Ingevolge die bepalings van die Akte van Oprigting roteer een

derde van die Direksie vanaf die Algemene Jaarvergadering in 2013.

Die Uit voerende Direkteure en die twee Direkteure wat deur Them

beka OVB Holdings (Edms) Bpk aangewys is, is nie onderhewig aan

rotasie nie.


BACK INDEX FORWARD


Each subsidiary company has its own Board of Directors. These

Boards carry the full responsibility of a Board and act within the

parameters of a formal board charter and corporate governance

approval framework. Directors from the Overberg Agri Group Board

are appointed to the subsidiary Boards but other Directors are also

appointed, with the assistance of the Nominations Committee,

if that Board requires certain additional skills, knowledge or

experience. Two Directors are appointed by the BEE share holders

of Bontebok Lime Works in terms of a shareholders’ agreement.

The following training sessions were presented to Directors during

the year under review:

• The role and responsibilities of the Audit and Risk Committee by

Prof Geoff Everingham

• Chapter 5 of the Companies Act presented by Adv. Van der

Merwe from the IoDSA

• Being a Director Module 1, presented by Adv. Van der Merwe

from the IoDSA

Board Committees

Board committees are established with the specific objective of

assisting and supporting the Board in discharging its responsibilities.

Two committees have been established, i.e. the Audit and Risk

Committee and the Remuneration, nominations, social and ethics

Committee. Ad hoc committees are also appointed from time to

time to facilitate focus on certain matters. The Chairpersons of the

committees inform the Group Board after each meeting of their

activities and make recommendations to the Group and subsidiary

Boards. These committees also perform their functions on behalf of

the subsidiary companies.

Elke filiaalmaatskappy het sy eie Direksie. Hierdie Direksies dra

die volle verantwoordelikheid van ‘n Direksie en tree op binne

die raamwerk van ‘n formele direksiehandves en korporatiewe

bestuurgoedkeuringsraamwerk. Direkteure van die Overberg Agri

Groepdireksie word op die Direksies van filiaalmaatskappye aange

stel, maar ander Direkteure word ook aangestel met die hulp van

die Nominasiekomitee indien daardie Direksie sekere bykomende

vaardighede, kennis of ervaring benodig. Twee Direkteure word

deur die SEBaandeelhouers van Bontebok Kalkwerke aangestel

ingevolge ‘n aandeelhouersooreenkoms.

Die volgende opleidingsessies is gedurende die jaar onder oorsig

aan Direkteure aangebied:

• Die rol en verantwoordelikhede van die Ouditenrisikokomitee

deur prof Geoff Everingham

• Hoofstuk 5 van die Maatskappywet aangebied deur adv. Van der

Merwe van die IoDSA

• Om ‘n Direkteur te wees Module 1, aangebied deur adv. Van der

Merwe van die IoDSA

Direksiekomitees

Direksiekomitees word aangestel met die spesifieke doel om die

Direksie behulpsaam te wees en by te staan met die uitvoering

van hul verantwoordelikhede. Daar is tans twee staande komitees,

naamlik die Ouditenrisikokomitee en die Vergoeding, nominasie,

sosiale en etiesekomitee. Ad hoc komitees word van tyd tot tyd

gevestig om fokus op spesifieke aangeleenthede te bewerkstellig.

Die Voorsitter van die komitees rapporteer na afloop van elke

vergadering aan die Groepdireksie ten opsigte van hulle werksaam

hede en maak aanbevelings aan die Groepdireksie en filiaaldireksies.

Hierdie komitees vervul ook hul werksaamhede namens al die

filiaalmaatskappye.






BACK INDEX FORWARD


Attendance:

Group Board Audit

and Risk

Committee

Remuneration, nomination,

social and ethics Committee

No of scheduled meetings: 4

& no of unscheduled

meetings: 5

No of

scheduled

meetings: 3

No of scheduled meetings: 3

& no of unscheduled

meetings: 1

Director Indepen-

dent

Scheduled

meetings

Unscheduled

meetings

Only

scheduled

meetings

Scheduled

meetings

Unscheduled

meetings

D de Kock Chairperson of the

Board

x 4 out of 4 5 out of 5 3 out of 3 1 out of 1

DG de Kock ViceChairperson of

the Board, Chairperson

of the Audit and Risk

Committee and also

the Remuneration,

nomination, social and

ethics Committee

x 4 out of 4 5 out of 5 3 out of 3 3 out of 3 1 out of 1

RR Blom Nonexecutive Director x 4 out of 4 5 out of 5 3 out of 3

S Cassiem Nonexecutive Director 4 out of 4 3 out of 5

LE Coetzer Executive Director x 4 out of 4 4 out of 5

ZL Combi Nonexecutive Director 2 out of 4 3 out of 5

DC Human Nonexecutive Director x 4 out of 4 4 out of 5

FGG Joubert Executive Director x 4 out of 4 4 out of 5

HP Marais Nonexecutive Director x 4 out of 4 3 out of 5 3 out of 3 3 out of 3 1 out of 1

MJ Roux Nonexecutive Director x 3 out of 4 3 out of 5 3 out of 3

HG Schönfeldt Nonexecutive Director x 4 out of 4 4 out of 5

AJ Uys Managing Director x 4 out of 4 4 out of 5

J vd M Rossouw Nonexecutive Director x 4 out of 4 4 out of 5

JG v Deventer Nonexecutive Director x 4 out of 4 5 out of 5

JP Viljoen Nonexecutive Director x 3 out of 4 5 out of 5




BACK INDEX FORWARD


Bywoning:

Groepdireksie Oudit-en

risiko-

komitee

Vergoeding-, nominasie-,

sosiale- en etiesekomitee

Aantal geskeduleerde

vergaderings: 4 &

aantal ongeskeduleerde

vergaderings: 5

Aantal

geskedu-

leerde

vergade-

rings: 3

Aantal geskeduleerde

vergaderings: 3 &

aantal ongeskeduleerde

vergaderings: 1

Direkteur Onaf-

hanklik

Geskedu-

leerde ver-

gaderings

Onge skedu-

leerde ver-

gaderings

Slegs

geskedu-

leerde ver-

gaderings

Geskedu-

leerde ver-

gaderings

Onge skedu-

leerde ver-

gaderings

D de Kock Voorsitter van die Direksie x 4 uit 4 5 uit 5 3 uit 3 1 uit 1

DG de Kock Ondervoorsitter van

die Direksie, Voorsitter

van die Ouditen

risikokomitee en ook die

Vergoeding, nominasie,

sosiale en etiesekomitee

x 4 uit 4 5 uit 5 3 uit 3 3 uit 3 1 uit 1

RR Blom Nieuitvoerende Direkteur x 4 uit 4 5 uit 5 3 uit 3

S Cassiem Nieuitvoerende Direkteur 4 uit 4 3 uit 5

LE Coetzer Uitvoerende Direkteur x 4 uit 4 4 uit 5

ZL Combi Nieuitvoerende Direkteur 2 uit 4 3 uit 5

DC Human Nieuitvoerende Direkteur x 4 uit 4 4 uit 5

FGG Joubert Uitvoerende Direkteur x 4 uit 4 4 uit 5

HP Marais Nieuitvoerende Direkteur x 4 uit 4 3 uit 5 3 uit 3 3 uit 3 1 uit 1

MJ Roux Nieuitvoerende Direkteur x 3 uit 4 3 uit 5 3 uit 3

HG Schönfeldt Nieuitvoerende Direkteur x 4 uit 4 4 uit 5

AJ Uys Besturende Direkteur x 4 uit 4 4 uit 5

J vd M Rossouw Nieuitvoerende Direkteur x 4 uit 4 4 uit 5

JG v Deventer Nieuitvoerende Direkteur x 4 uit 4 5 uit 5

JP Viljoen Nieuitvoerende Direkteur x 3 uit 4 5 uit 5




BACK INDEX FORWARD


Ethical values of the Group

Every Director and employee of the Overberg Agri Group is required

to comply with high moral, ethical and professional standards at all

times. The Overberg Agri Code of Ethics requires of everyone to

uphold the following values:

Integrity – to be honest, sincere, consistent, fair, faithful and trans

parent;

Accountability – to commit oneself to what has been undertaken, to

accept responsibility for your decisions and actions and to account

for it;

Responsibility – to acknowledge your duty towards the Company

and to act accordingly and to contribute actively to the good image

of the Company, its success and sustainability;

Respect – to recognise every person’s dignity and to treat all people

with respect, irrespective of their culture, language preference, race,

gender or opinion.

Directors declare their interest at the beginning of every Board

meeting. During the period under review none of the Directors had

a significant interest in any contract or transaction entered into by

the Company or any of its subsidiaries.

A closed period for the trading in the Company’s shares by Directors

and senior managers applies based on the principles of additional

knowledge about the Company’s performance that may influence

the value and/or price of the shares. Closed periods apply from the

date of the financial yearend until the Company has published its

results on the Company’s website.

Overberg Agri has, as required by section 159(7) of the Companies

Act, introduced a whistleblower confidential line that is available

at all times and is administered by Deloitte. During the year under

review no reports of misbehaviour or criminal activity have been re

ported to the hotline.

Evaluation process

Since 2007 the Overberg Agri Group Board has been subject to an

annual evaluation process. The Boards of the subsidiary companies

have also been evaluated annually since 2009 and the individual

Directors since 2011. The evaluation process is questionnairebased

and aims to determine the effectiveness of the Board in terms of

policy and strategy, organisational performance, risk management,

Board efficiency, ethics and statutory and legal requirements. Based

on the results of the evaluation, training sessions are arranged.





Etiese waardes van die Groep

Daar word van elke Direkteur en werknemer van Overberg Agri

Groep vereis om te alle tye aan hoë morele, etiese en professionele

standaarde te voldoen. Overberg Agri se Etiese Gedragskode

vereis van almal om die volgende waardes te onderskryf:

Integriteit – om eerlik, opreg, konsekwent, billik, getrou en deur

sigtig te wees;

Rekenskap – om jouself te verbind tot dit wat onderneem word, om

verantwoordelikheid te aanvaar vir besluite en optrede en om ver

antwoording daarvoor te doen;

Verantwoordelikheid – die erkenning van jou plig teenoor die

Maatskappy en om daarvolgens te handel en om aktief by te dra tot

die goeie beeld van die Maatskappy, asook die volhoubaarheid en

sukses van die Maatskappy;

Respek – die erkenning van elke mens se waardigheid en onder

neming om alle mense met respek te behandel ongeag hul kultuur,

taalvoorkeur, ras, geslag en opinies.

Direkteure verklaar hul belange aan die begin van elke Direksie

vergade ring. Geeneen van die Direkteure het tydens die tydperk

onder oorsig ‘n wesenlike belang in enige kontrak of transaksie wat

deur die Maatskappy of enige van sy filiale aangegaan is, gehad nie.

‘n Geslote periode vir aandeleverhandeling deur Direkteure en senior

bestuur is van toepassing gebaseer op die beginsels van meerdere

kennis oor die Maatskappy se prestasie wat die waarde en/of die prys

van die aandele mag beïnvloed. Geslote periodes is van toepassing

vanaf die datum van die finansiële jaareinde totdat die Maatskappy

sy resultate op die Maatskappy se webtuiste gepubliseer het.

Overberg Agri het, soos vereis deur Artikel 159(7) van die Maatskap

pywet, ‘n vertroulike fluitjieblaserblitslyn ingestel wat te alle tye

beskikbaar is en deur Deloitte geadministreer word. Geen verslae

van wangedrag of kriminele aktiwiteit is gedurende die jaar onder

oorsig deur die blitslyn gerapporteer nie.

Evaluasieproses

Die Overberg Agri Groepdireksie word sedert 2007 jaarliks onder

werp aan ‘n evalueringsproses. Die Direksies van die filiaalmaatskap

pye word ook sedert 2009 jaarliks geëvalueer en die individuele

Direkteure sedert 2011. Die evaluasieproses bestaan uit ‘n vraelys

en het ten doel om die doeltreffendheid van die Direksie in terme

van beleid en strategie, organisatoriese prestasie, risikobestuur,

doeltreffendheid van die Direksie, etiek en statutêre en wetlike

vereistes te bepaal. Gebaseer op die uitkoms van die evaluasie,

word opleidingsessies gereël.


BACK INDEX FORWARD


Remuneration policy

The Group remuneration policy is based on fairness, reasonableness

and affordability. Where practical, the principles of total cost of

employ ment are applied that allow some degree of flexibility in the

structuring of the individual’s remuneration package. All permanent

employees within the Overberg Agri Group belong to a retirement

fund.

The remuneration levels of employees and Directors are reviewed

annually within the guidelines of the results of the National Deloitte

Consulting remuneration surveys and the principles of fairness

towards the Company and the particular individual concerned. The

Company strives to maintain the remuneration of employees on at

least the 10th or 25th percentile of the salary scale of each position

as reflected in the annual survey, or from the 50th percentile where

a high measure of expertise is required or where there is a shortage

of suitable employees.

The remuneration of Nonexecutive Directors, for their services as

Directors, is determined with reference to the results of the National

Deloitte Consulting survey for Nonexecutive Directors and the size

of the Group. Nonexecutive Directors receive a fixed monthly fee

determined in accordance with the average fixed fee applicable to

Nonexecutive Directors as reflected in the annual survey and, in

addition thereto, are reimbursed for official travel expenses, but

they do not participate in the Group pension fund, medical aid or

other similar remuneration scheme.





Vergoedingsbeleid

Die Groep se vergoedingsbeleid is gebaseer op regverdigheid,

billik heid en bekostigbaarheid. Waar prakties, word die begin sels

van totale koste van indiensneming toegepas, wat ‘n mate van

buigsaamheid in die strukturering van die individu se vergoedings

pakket toelaat. Alle permanente personeellede binne die Overberg

Agri Groep behoort aan ‘n aftreefonds.

Die vergoedingskale van personeel en Direkteure word jaarliks her

sien binne die riglyne van die resultate van die Nasionale Deloitte

Consultingvergoedingsopnames en die beginsels van billikheid

teenoor die Maatskappy en die bepaalde individue betrokke. Die

Maatskappy poog om die vergoeding van personeel op ten minste

die 10de of 25ste persentiel van die salarisskaal van elke pos, soos

gerapporteer in die jaarlikse opname, te handhaaf en waar ‘n hoë

mate van kundigheid vereis word of waar daar ‘n tekort aan geskikte

personeel bestaan, vanaf die 50ste persentiel.

Die vergoeding van Nieuitvoerende Direkteure vir hul dienste

as Direkteure word bepaal met verwysing na die resultate van

die Nasionale Deloitte Consultingopname vir Nieuitvoerende

Direkteure en die grootte van die Groep. Nieuitvoerende

Direkteure ontvang ‘n vaste maandelikse fooi wat bepaal word in

ooreen stemming met die gemiddelde vaste fooi van toepassing

op Nieuitvoerende Direkteure soos gerapporteer in die jaarlikse

opname en word addisioneel vergoed vir amptelike reisuitgawes,

maar hulle neem nie deel aan die Groep se pensioenfonds, mediese

fonds of enige ander soortgelyke vergoedingskema nie.


PROSPECTS


VOORUITSIGTE

Agricultural conditions in the Southern and Western Cape are

favourable and the prospects for the agricultural subsidiaries are

positive. The favourable agricultural conditions should also have a

positive impact on Bontebok Lime Works and Bredasdorp Slagpale.

The prospects for the global economy are more promising, given

the somewhat increased financial stability within the Euro zone and

improved economic data in China and the USA. We expect the

recovery of the local economy to be slow, however, which may place

further pressure on the real growth targets and margins. The intense

competition in the market can place pressure on the margins of

Boltfast, Promeal and the retail trade in general. In the midst of

Landboutoestande in die Suid en WesKaap is gunstig en die

vooruitsigte vir die landboufiliale is positief. Die gunstige land

bouomstandighede behoort ook ’n positiewe impak op Bontebok

Kalkwerke en Bredasdorp Slagpale te hê.

Die vooruitsigte vir die wêreldwye ekonomie lyk meer belowend,

gegewe die ietwat verhoogde finansiële stabiliteit in die Euro

gebied en verbeterde ekonomiese data in China en die VSA. Ons

verwag egter ’n stadige herstel van die plaaslike ekonomie, wat

verder druk kan plaas op die reële groeidoelwitte en marges. Die

intense kompetisie in die mark kan marges onder druk plaas wat

betref Boltfast, Promeal en die algemene kleinhandel. Te midde van


BACK INDEX FORWARD


the current economic realities the Board is, however, positive that

Overberg Agri will achieve its objectives in the coming year.

D de Kock AJ Uys

Chairperson Managing Director

The abridged consolidated financial statements, which comprise

the abridged consolidated statement of financial position as at

28 February 2013, and the abridged consolidated income statement

and cash flows for the year then ended, and related notes, as set

out on pages 10 –11, are derived from the audited consolidated

financial statements of Overberg Agri Limited for the year ended

28 February 2013. We expressed an unmodified audit opinion on

those con solidated financial statements in our report dated 14

June 2013. Our audit report on the audited consolidated financial

statements contains an Other Matter paragraph (refer below).

The abridged consolidated financial statements do not contain all

the disclosures required by International Financial Reporting Stand

ards and the requirements of the Companies Act of South Africa

as applicable to annual financial statements. Reading the abridged

consolidated financial statements, therefore, is not a substitute for

reading the audited consolidated financial statements of Overberg

Agri Limited.

die huidige ekonomiese realiteite is die Direksie egter positief dat

Overberg Agri die komende jaar sy doelwitte sal behaal.

D de Kock AJ Uys

Voorsitter Besturende Direkteur

Die verkorte gekonsolideerde finansiële state, wat bestaan uit

die verkorte gekonsolideerde staat van finansiële posisie soos op

28 Februarie 2013, die verkorte gekonsolideerde inkomstestaat en

kontant vloeie vir die jaar wat op daardie datum geëindig het, en

verwante aanteke ninge, soos uiteengesit op bladsye 10 –11, is opge

stel vanuit die geouditeerde gekonsolideerde finansiële state van

Over berg Agri Beperk vir die jaar geëindig 28 Februarie 2013. Ons

het ‘n ongewysigde ouditmening uitgespreek op hierdie gekon

solideerde finansiële state in ons verslag gedateer 14 Junie 2013.

Ons oudit verslag in die geouditeerde gekonsolideerde finansiële

state bevat `n Ander Aangeleentheid paragraaf (verwys onder).

Die verkorte gekonsolideerde finansiële state bevat nie alle

openbaar making soos vereis deur Internasionale Finansiële Rap

porteringstandaarde en die vereistes van die Maatskappywet van

SuidAfrika soos toepaslik op finansiële state nie. Die lees van die

verkorte gekonsolideerde finansiële state kan gevolglik nie as plaas

vervanger vir die lees van die geouditeerde gekonsolideerde finan

siële state van Overberg Agri Beperk gesien word nie.


PROSPECTS


VOORUITSIGTE


REPORT OF THE INDEPENDENT AUDITOR ON THE ABRIDGED CONSOLIDATED FNANCIAL STATEMENTS TO THE SHAREHOLDERS OF OVERBERG AGRI LIMTED


VERSLAG VAN DIE ONAFHANKLIKE OUDITEUR OP DIE VERKORTE

GEKONSOLIDEERDE FINANSIËLE STATE AAN DIE AANDEELHOUERS

VAN OVERBERG AGRI BEPERK


BACK INDEX FORWARD


Directors’ Responsibility for the Abridged Consolidated Financial Statements

The Company’s Directors are responsible for the preparation of an

abridged version of the audited consolidated financial statements

in accordance with the basis of preparation as described in the

notes and the requirements of the Companies Act of South Africa

as applicable to summary financial statements.

Auditor’s Responsibility

Our responsibility is to express an opinion on the abridged consol

idated financial statements based on our procedures, which were

conducted in accordance with Inter national Standard on Auditing

(ISA) 810, “Engagements to Report on Summary Financial State

ments.”

Opinion

In our opinion, the abridged consolidated financial statements

derived from the audited consolidated financial statements of

Overberg Agri Limited for the year ended 28 February 2013 are

consistent, in all material respects, with those consolidated financial

statements, in accordance with the basis of preparation as described

in the notes and the requirements of the Companies Act of South

Africa as applicable to summary financial statements.

The Other Matter paragraph in our audit report dated 14 June

2013 states that as part of our audit of the consolidated financial

state ments for the year ended 28 February 2013, we have read the

Directors’ Report, the Audit Committee’s Report and the Company

Secretary’s Certificate for the purpose of identifying whether there

are material inconsistencies between these reports and the audited

consolidated financial statements. These reports are the responsi

bility of the respective preparers. The Other Matter paragraph states

that, based on reading these reports, we have not identified material

inconsistencies between these reports and the audited con soli

dated financial statements. The paragraph furthermore states that

we have not audited these reports and accordingly do not express

an opinion on these reports. The Other Matter paragraph does not

have an effect on the abridged consolidated financial statements or

our opinion thereon.

PricewaterhouseCoopers Inc.

Director: JM Calitz

Registered Auditor

Cape Town

Date: 14 June 2013

Direkteure se Verantwoordelikheid vir die Verkorte Gekonsolideerde Finansiële State

Die Maatskappy se Direkteure is verantwoordelik vir die opstel van

die verkorte weergawe van die geouditeerde gekonsolideerde

finansiële state ooreenkomstig die basis van opstelling soos beskryf

in die aantekeninge en die vereistes van die Maatskappy wet van

SuidAfrika soos toepaslik op verkorte finansiële state.

Ouditeur se Verantwoordelikheid

Dit is ons verantwoordelikheid om ’n mening oor hierdie verkorte

gekonsolideerde finansiële state uit te spreek gebaseer op ons

prosedures, wat ooreenkomstig ‘Inter national Standard on Auditing

(ISA) 810’, “Engagements to Report on Summary Financial State

ments”, uitgevoer is.

Mening

Na ons mening is die verkorte gekonsolideerde finansiële state, soos

opgestel vanuit die geouditeerde gekonsolideerde finansiële state

van Overberg Agri Beperk vir die jaar geëindig 28 Februarie 2013,

in alle wesenlike opsigte, in ooreenstemming met daardie gekon

solideerde finansiële state, ooreenkomstig die basis van opstelling

soos beskryf in die aantekeninge en die vereistes van die Maatskappy

wet van SuidAfrika soos toepaslik op verkorte finansiële state.

Die Ander Aangeleentheid paragraaf in ons ouditverslag gedateer

14 Junie 2013, beskryf dat as deel van ons oudit van die gekon

solideerde finansiële state vir die jaar geëindig 28 Februarie 2013 het

ons die Direkteursverslag, die Verslag van die Ouditkomitee en die

Sertifikaat van die Maatskappysekretaris deurgelees om te bepaal

of daar wesenlike teenstrydighede tussen hierdie verslae en die

geoudit eerde gekonsolideerde finansiële state is. Hierdie verslae

is die verant woordelik heid van die onderskeie opstellers daarvan.

Gebaseer op die deurlees van hierdie verslae het ons nie wesenlike

teenstrydighede tussen hierdie verslae en die geouditeerde gekon

solideerde finansiële state geïdentifiseer nie. Ons het hierdie verslae

egter nie geoudit nie en spreek dienooreenkomstig nie ’n mening

oor hierdie verslae uit nie.

PricewaterhouseCoopers Ing.

Direkteur: JM Calitz

Geregistreerde Ouditeur

Kaapstad

Datum: 14 Junie 2013


REPORT OF THE INDEPENDENT AUDITOR


VERSLAG VAN DIE ONAFHANKLIKE OUDITEUR


BACK INDEX

index | indeks integrated report 2013...• manage margins of all the companies and product groups...

Documents