Transformation

We are an international business, but have never used this status as an excuse for being tardy when it comes to the need for transformation. The board’s social and ethics committee (transformation committee) ensures robust, proactive engagement with the work of empowerment.

Operations redoubled their B-BBEE efforts in 2011, moving the Group from Level 4 status to Level 3. This means customers can claim 110% of their expenditure with us for the purposes of procurement scoring.

Heightened status creates a halo effect for all our businesses. To their credit, individual businesses are determined not to hide behind the ‘halo’. They are all striving to match or better the Group’s overall ranking.

Dinatla

This habit of going further and faster than generally expected is also apparent in the Group’s Dinatla relationship. A R1,6 billion share repurchase agreement finalised in May allowed our empowerment partners to realise value and repay funding arrangements well ahead of settlement date. Since 2003, when the relationship was formed, Dinatla constituents have realised real value of more than R2,0 billion. Once transformed always transformed

This latest transaction has moved the need for the national debate that must take place about ‘once empowered always empowered’ to a more elevated level – ‘once transformed always transformed’. Progress since 2003 makes it plain that Bidvest is committed to ongoing transformation and fully embraces the broad-based empowerment model that delivers benefits to all stakeholders. Ongoing Dinatla participation is assured. Empowerment and transformation are 100% entrenched (or 110% if scorecard arithmetic is used).

Other figures underline the point. In 2011, Bidvest’s training investment reached R253,2 million (up from R252,5 million) while we spent R23,8 billion with empowered suppliers.

Challenges

The importance of paying your own way and honouring your commitments has been spotlighted starkly by the unfolding sovereign debt crisis. The need for prudence – personal, commercial and governmental – is clear.

Bidvest’s largely conservative attitude to debt and the conduct of business stands us in good stead and will continue.

Within South Africa, the issue of corruption and the abuse of tenders for personal enrichment are areas of growing concern. Bidvest applauds government plans to tighten up the tender system and prevent transgressors doing business with official departments for 10 years.

Action is urgently needed. Once corruption takes hold, the grip is hard to shake. Aside from moral questions, the challenges of doing business multiply, costs soar and consumers find themselves paying inflated prices for inferior delivery. Our international standing is also endangered and the task of attracting long-term direct foreign investment becomes that much harder.

Recognition

Bidvest remains committed to best practice in all it does and is content to be measured by objective external observers.

Happily, appraisals remain positive.

Our ability to report in a clear, open fashion is also prized. Bidvest won category honours in the last Investment Analysts Society awards for corporate reporting.

Restructure

Sustained growth demands broad, robust  structures and in 2011 Bidvest responded by expanding its South African operations into 10 focused divisions while re-emphasising its commitment to decentralised operations driven by highly entrepreneurial teams.

Structural change was accompanied by renewed growth of the Bidvest brand as businesses within Bidvest South Africa successfully leveraged the Group connection.

Internationally, growth of brand Bidvest continued; sometimes in the face of mounting uncertainty.

Future

Bidvest is a people-powered business. In all markets, recovery has been less buoyant than expected, yet our people maximised local opportunities to achieve continued growth.

The world remains an uncertain place. European and US debt concerns will persist for some time. In general, Bidvest relies on a single ‘currency’ – our people. In 2012 we will continue to place our trust in the value created by our staff members.

Despite continuing certainties, we believe our people will achieve sustained growth in all geographies.

Cyril Ramaphosa

Non-executive chairman