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Glodina is part of the diversified industrial division of KAP Industrial, a JSE Limited listed group.

Listed on the JSE Limited, KAP is an industrial group, predominantly located in and focused on business operating in emerging African markets. KAP delivers services and manufactured products to a wide customer base through two main operating divisions.

Diversified Industrial consisting of:

  • An integrated timber division with timber plantations, saw mills and production facilities related to timber products.
  • A chemical division producing resin and PET.
  • An automotive division that manufactures components for the automotive industry.
  • The manufacturing of bedding components and towelling.

Diversified Logistics consisting of:

  • A supply chain solutions division that designs, implements and manages supply chain and logistics services.
  • A passenger transport division providing personnel, tourist and commuter transport services.
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GROUP HIGHLIGHTS: 30 JUNE 2014

Revenue (Rm)

Diversified Logistics
graph1
Integrated Timber
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Manufacturing
graph3

Revenue Split

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Operating Profit Split
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Key

Operating Profit (Rm)

Diversified Logistics
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Integrated Timber
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Manufacturing
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* Restatement as a result of adoption of new and revised accounting standards and to reflect discontinued operations.

HEPS UP

by 21%

R1.9bn

CASH GENERATED FROM OPERATIONS

DIVIDEND PER SHARE UP
by 50%
FROM 8 CENTS TO 12 CENTS
R1.0bn
MAIDEN BOND PROGRAMME LAUNCHED
GROUP AND MANAGEMENT STRUCTURE

A decentralised structure supports the retention and development of expertise. Each division has in-depth industry and market experience that enhances its ability to grow sustainable earnings.

GOVERNANCE AND COMPLIANCE

Management teams are supported by human resources, risk, health and safety, corporate social investment and information technology committees that ensure legal and best practice compliance across all operations.

STRATEGIC INTENT FORMULATION

The board of directors are ultimately responsible for all stakeholders ensuring the sustainability of the group and the longterm creation of sustainable value.

STRATEGIC
DEVELOPMENT

The executive team has full autonomy to employ the appropriate people and
process to implement group strategy in a way that best aligns with their businesses.

STRATEGIC IMPLEMENTATION

Divisional management and employees are empowered to enhance and sustain the entrepreneurial culture of the group.

Group-Structure
SUPPORTING AND LEVERAGING GROUP STRATEGY

The group is focused on delivering on its strategy of being a market leader in the industries it serves in a growing African market. This strategy is supported and realised through five strategic drivers. These are not only used to direct and measure strategic implementation, but also contribute to the group’s competitive advantage.

STRATEGIC DRIVERS
GLODINA
Market-share

MARKET SHARE LEADERSHIP

KAP businesses are market leaders in specific industry sectors, or have the potential to reach such levels in the short to medium term.

Glodina is a leading industry supplier and continues to enhance its current position.

High-barriers

HIGH BARRIERS TO ENTRY

The group’s significant degree of experience, scale and specialisation provide a competitive advantage in highly regulated industries. Volatility in fuel prices, pressure on natural resources, greater emphasis on sustainability, more stringent health and safety requirements, and the group’s ability and experience to manage these, all contribute to higher barriers to entry.

On-going and significant investment in technology and obtaining and retaining a skilled employee base.

Industry-diverse

INDUSTRY DIVERSIFICATION

The group is diversified across various industries, market sectors and in its product and/or service mix. Within the group’s portfolio, certain cyclical industries are balanced by less cyclical businesses. This diversity facilitates the group to manage concentration risk while protecting and stabilising margins.

Glodina’s product ranges are supplied to a wide range of wholesale customers and prominent retailers.

Invest-infrastructure
INVESTMENT IN INFRASTRUCTURE AND TECHNOLOGY

The group is diversified across various industries, market sectors and in its product and/or service mix. Within the group’s portfolio, certain cyclical industries are balanced by less cyclical businesses. This diversity facilitates the group to manage concentration risk while protecting and stabilising margins.

Glodina’s product ranges are supplied to a wide range of wholesale customers and prominent retailers.

Leverage-african-base
LEVERAGING OUR AFRICAN BASE

In line with economic growth expectations, operations are positioned toward emerging markets, with a specific focus towards southern Africa and sub-Saharan African countries. The group can leverage its industry knowledge and expertise of African markets to provide a competitive advantage.

Collaboration provides opportunity to grow with retailers’ expansion into Africa.

SUSTAINABILITY

The group’s strategic objectives and drivers include the management of material issues of environmental aspects. The group’s operations are dependent on access to:

STRATEGIC AREAS OF FOCUS
GLODINA
Scarce-raw-materials
LEVERAGING OUR AFRICAN BASE

Raw materials are scarce, and in certain instances subject to commodity and import price fluctuations. Owning and effective management of raw materials in manufacturing processes ensures that the supply thereof is secured.

Fuel
FUEL

High-cost and fluctuations in fuel prices necessitate the management of fuel consumption and cost-drive efficiencies to ensure profitability and competitiveness in the market.

Energy
ENERGY

High energy usage and cost in manufacturing industries influence cost of products and require the optimisation of energy usage and evaluation of alternative energy sources to ensure profitability and competitiveness in the market.

Waste
WASTE

Waste production and cost of waste in up and downstream processes impacts profitability. Reducing waste and using recycled materials increases efficiencies and margins on manufactured products.

Water-Land
WATER AND LAND

Some manufacturing processes are dependent on water usage which is in scarce supply. The group aims to reduce and manage water usage and protect natural resources and areas of biodiversity.

Glodina, together with relevant stakeholders at a business, social and environmental level seek to ensure that the company advances in its efforts to progress beyond compliance with relevant environmental regulations and social dictates.