2010 FIFA World Cup™ effects

Despite job and debt worries, South Africans were determined to be perfect hosts for the 2010 FIFA World Cup™. Unfortunately, initial estimates of the number of foreign visitors were not realised, largely as a result of international belttightening in the immediate aftermath of recession. Those who made the trip were bowled over by the reception, the facilities, infrastructure and the natural beauty of our wonderful country.

South Africa's international image was greatly improved and it was highly satisfying to see Africa and the entire world celebrating with us. African pride and self-belief soared.

Challenges

Here in South Africa, the challenge is to maintain the team spirit and draw continued benefit from restored morale. This may not always be easy.

Labour relations in South Africa's public sector have deteriorated. Transport workers engaged in a long and costly strike. Threatened strikes at Eskom were averted by a settlement well above inflation. Pay negotiations with public sector workers became increasingly acrimonious as our year drew to a close. Ultimately, strikes affected schools, hospitals and other services.

The 2010 FIFA World Cup™ created a sense that a new dawn was breaking. It is imperative we work together and capitalise on this positive mood and can-do attitude.

Sustainable development

Two years ago, we defined sustainable development at Bidvest as a fresh way of thinking that inspires and enables a new generation of entrepreneurs to create business value that integrates evolving financial, social and environmental needs and expectations.

Change continues. Influential bodies like the King III committee encourage long-term thinking as short-term actions have long-term impact. Yesterday's profligate lending still has profound consequences for business today. Humankind currently exploits the resources of 1,3 planets with little thought for replenishment.

We have to interrogate how we do business and exploit relationships and resources, not only to turn a profit today, but to store goodwill and natural bounty for generations to follow. We must look after the general environment the way we look after the environment in our own homes, with care.

When such a philosophy harnesses Bidvest's people-power, opportunities materialise and projects are launched to strengthen our competitive position. Our people internalise issues, make them their own and drive them until targets are achieved.

Bidvest people have now reached the stage where they are taking personal control of sustainability initiatives. This was recently confirmed by our employee sustainability engagement survey.

Research showed that our people are eager to embed sustainable business practices into their activities. They want to be involved and want to make a difference.

This is just what the board wanted to hear. Our businesses have been collating sustainability data for several years while building awareness of the need to cultivate diversity, nurture customers, practise ethical behaviour, reduce, reuse and recycle resources.

Our people in the UK and Europe work in jurisdictions where environmental impacts are rigorously regulated. They don't merely comply, they lead. Their experience is now being shared to avoid duplication while fast-tracking smart solutions.

I am happy to report progress was maintained in a year of huge recessionary pressure. Our people are proud to belong to a company committed to sustainable business practice. It's part of being Proudly Bidvest.

On a mission

There's no such thing as Mission Control at Bidvest. Our teams are encouraged to reach for the stars in their own way.

The Group attitude is summed up by an old advertising industry watchword – if you reach for the stars, you might not quite get one, but you won't end up with a handful of mud, either.

That philosophy has come into play as never before. Some businesses achieved record profits, some came close. Others were thwarted by adverse conditions. But sustained effort shone through wherever you looked.

External measurement

Performance is closely monitored by all our businesses. We set great store by internal benchmarking, but we are just as keen to learn what external parties think of us.

Numerous and varied awards, appraisals and accolades were granted to Bidvest and our chief executive. Bidvest was ranked 37th of the world's top companies, the JSE reaffirmed our status as a founding constituent of the JSE Socially Responsible Investment Index, we received reporting and transformation awards and our chief executive was named one of South Africa's top 25 business leaders. Details of these awards and others are provided on the facing page.

Future

Economic recovery may or may not gather traction in the year ahead. It appears prudent to expect patchy performance across Bidvest geographies. Diversification will enable us to capture the upside where it occurs while using local initiative to minimise impacts in markets that achieve no or low growth.

Bidvest's 2010 rebound moves us marginally above the peaks of two years ago. Our teams are highly motivated and poised for further gains. Investment has been maintained in people and infrastructure. I have every confidence Bidvest will secure real growth in the year ahead.

Cyril Ramaphosa
Non-executive chairman