Strategic Objectives – Read in conjunction with the 2018 IR

Strategic Objectives – Read in conjunction with the 2018 IR

MAINTAIN AND GROW PROFITABILITY AND OPERATING PERFORMANCE

ENSURE SUSTAINABLE GROWTH WHILE ENHANCING COMPETITIVENESS

EMBED ADVANCED PERFORMANCE IN AREAS OF SAFETY, HEALTH, ENVIRONMENT AND QUALITY

BUILD A PERFORMANCE CULTURE

MAINTAIN AND GROW PROFITABILITY AND OPERATING PERFORMANCE

Remain profitable and continue to deliver efficiencies by focusing on ROCE, EBITDA and free cash flow.

  • We continuously review our customers and suppliers for the right products to reach their destinations timeously. Customer service is a key element in protecting Afrox’s sustainability.
  • We pursue growth opportunities in consumer-led markets such as gas for fast-food retailers or soft drink carbonation. Our product range includes recent additions which extend the shelf life of packaged goods.
  • We launched a mobile pricing tool for sales representatives to get minimum price approval within minutes. This has contributed to our substantially improved pricing and price strategy.
  • We were awarded the state healthcare tender in all nine provinces and are rolling out the Linde Integrated Valve (LIV®) (refer to page 77).
  • We are growing our e-commerce channel (refer to page 27) and introduced customer e-grievance systems.

ENSURE SUSTAINABLE GROWTH WHILE ENHANCING COMPETITIVENESS

Enhance operational effectiveness to maintain competitive edge. Focus on consumer-led growth opportunities (food and beverage, hospitality and healthcare) and maintain stable supply of LPG in all markets.

  • We invest in maintenance and infrastructure upgrades to improve Afrox’s existing facilities, and we optimise our plants for multiple purposes.
  • We secured LPG supply through strategic import agreements. The impact of the volatile Rand necessitated a Rand-based price ex-tank.
  • We reached Level 3 BBBEE status under the new BBBEE Codes of Good Practice (BBBEE Codes), from Level 8 in 2016.
  • As an agile organisation, we continuously develop, improve and optimise our size, composition, supplier agreements and hierarchy.
  • We reached a record 93.83% (2017: 91.33%) ‘delivery in full, on time’ for the year.

EMBED ADVANCED PERFORMANCE IN AREAS OF SAFETY, HEALTH, ENVIRONMENT AND QUALITY

Further advance our safety culture to the point where it is fully integrated into every aspect of the way we do business and is reflected in reduced major incidents reported (MIRs). Maintain and improve quality while mitigating our environmental impacts.

  • Afrox applies a best practice approach to safety, personalised in its SHEQ Golden Rules of Safety (refer to page 62). We will transition these to The Linde Group’s Life Saving Rules in March 2019.
  • Our leaders drive a safety culture, but each employee remains responsible for acting safely and supporting their peers.
  • We are a total solutions provider to some customers. We provide training for both customers and end-users in, among others, product safety where necessary.
  • We use telematics technology and internal data to improve the safety of our employees, contractors and assets.

BUILD A PERFORMANCE CULTURE

Develop our leaders and empower our employees in a way that promotes behaviour that results in excellent performance, adding customer value and providing business profitability.

  • We annually evaluate and provide training to our Board members in areas relevant to their duties. Our strong corporate governance base sets the tone for ethical and sustainable business operation.
  • We finance studies for 170 BBBEE learners and have 35 apprentices who act as a pipeline to supplement our experienced employees. Refer to page 74 for a case study on how we develop employees.
  • We spend R44 million on training for employees to enhance their performance and further align them with our SWIFT behaviours.
  • The Company is committed to transparent communication with stakeholders through a range of channels.
  • We develop our suppliers, and through them, increase our reach into informal settlements.

Remain profitable and continue to deliver efficiencies by focusing on ROCE, EBITDA and free cash flow.

  • We continuously review our customers and suppliers for the right products to reach their destinations timeously. Customer service is a key element in protecting Afrox’s sustainability.
  • We pursue growth opportunities in consumer-led markets such as gas for fast-food retailers or soft drink carbonation. Our product range includes recent additions which extend the shelf life of packaged goods.
  • We launched a mobile pricing tool for sales representatives to get minimum price approval within minutes. This has contributed to our substantially improved pricing and price strategy.
  • We were awarded the state healthcare tender in all nine provinces and are rolling out the Linde Integrated Valve (LIV®) (refer to page 77).
  • We are growing our e-commerce channel (refer to page 27) and introduced customer e-grievance systems.

Enhance operational effectiveness to maintain competitive edge. Focus on consumer-led growth opportunities (food and beverage, hospitality and healthcare) and maintain stable supply of LPG in all markets.

  • We invest in maintenance and infrastructure upgrades to improve Afrox’s existing facilities, and we optimise our plants for multiple purposes.
  • We secured LPG supply through strategic import agreements. The impact of the volatile Rand necessitated a Rand-based price ex-tank.
  • We reached Level 3 BBBEE status under the new BBBEE Codes of Good Practice (BBBEE Codes), from Level 8 in 2016.
  • As an agile organisation, we continuously develop, improve and optimise our size, composition, supplier agreements and hierarchy.
  • We reached a record 93.83% (2017: 91.33%) ‘delivery in full, on time’ for the year.

Further advance our safety culture to the point where it is fully integrated into every aspect of the way we do business and is reflected in reduced major incidents reported (MIRs). Maintain and improve quality while mitigating our environmental impacts.

  • Afrox applies a best practice approach to safety, personalised in its SHEQ Golden Rules of Safety (refer to page 62). We will transition these to The Linde Group’s Life Saving Rules in March 2019.
  • Our leaders drive a safety culture, but each employee remains responsible for acting safely and supporting their peers.
  • We are a total solutions provider to some customers. We provide training for both customers and end-users in, among others, product safety where necessary.
  • We use telematics technology and internal data to improve the safety of our employees, contractors and assets.

Develop our leaders and empower our employees in a way that promotes behaviour that results in excellent performance, adding customer value and providing business profitability.

  • We annually evaluate and provide training to our Board members in areas relevant to their duties. Our strong corporate governance base sets the tone for ethical and sustainable business operation.
  • We finance studies for 170 BBBEE learners and have 35 apprentices who act as a pipeline to supplement our experienced employees. Refer to page 74 for a case study on how we develop employees.
  • We spend R44 million on training for employees to enhance their performance and further align them with our SWIFT behaviours.
  • The Company is committed to transparent communication with stakeholders through a range of channels.
  • We develop our suppliers, and through them, increase our reach into informal settlements.