Capital – our enabler and responsibility

Peter Meijer, Group financial director, said: “Sustainable returns and long-term value for stakeholders – these objectives underscore the Bidvest vision. Our objectives are achieved through processes and systems which are driven by, and monitored against, a sound governance structure.”

The six-capitals approach further refines the parameters for well-structured sustainability reporting. It promotes a focus on value creation inside and outside the organisation, and fosters a forward-looking approach.

Financial capital

Financial capital

Economic resources to fund our business

Access to financial capital through equity funding, debt funding and retained earnings is a critical dependency and underpins our ability to grow and create value. We manage our funds employed and dividend policy carefully to ensure a healthy financial position.

FY17 report back: We successfully relaunched our Domestic Medium Term Note Programme and raised R750mn in June in a public auction. Capex investment of R1,9 billion was made. Dividends to the value of R1,7 billion were paid. Some, not all, non-core assets were sold. This remains a strategic priority.

 

    Intellectual capital

Intellectual capital

Competitive advantage gained by our people through their knowledge and intellectual property

Bidding for and securing the right contracts with the right customers on the right terms as well as trading and distributing the right product at the right price, every time, is of critical importance. This translates into high brand reputation and consistent excellence.

FY17 report back: Bidvest scored highly in the RepTrak Pulse 2017 survey (the top scoring B2B group) and won multiple industry awards. The bundled facilities management offering rolled-out in FY15 gained further traction as multi-discipline contracts were secured in the telecommunication and financial services sectors. An increased proportion of commercial products distributed have been sourced directly.

 

    Social and relationship capital

Social and relationship capital

The value we build through engagement, information sharing and working together

The relationships with our stakeholders are dynamic, and underpin our ability to create value. Our close relationships with customers and suppliers ensure that we remain relevant in rapidly evolving environments and generate repeat business on reasonable contractual terms.

FY17 report back: We increased our pool of valued customer and loyal suppliers. With many government departments, State Owned Enterprises and parastatals in flux, the finalising and closing of contracts was challenging.

 

Human capital

Human capital

The knowledge, skills, talents and experience of people that determine our capacity to accomplish goals

Our people are critical to our success and sustainability. Job creation and growing talented individuals into new roles remain core objectives. Graduate and learnership programmes give impetus to staff development.

FY17 report back: Some divisions have made great strides in transforming their executive teams. We know that a diverse leadership team and employee base will foster innovation and stimulate an environment where everyone can thrive. This has been made a priority: 3 900 learners benefited from our programmes; 373 of these individuals were given permanent employment within Bidvest.

 

    Manufactured capital

Manufactured capital

Our infrastructure that generates income

Our investment in assets, and maintenance thereof, enable us to deliver our services and products to the highest standards.

FY17 report back: Freight invested R330mn in additional fuel tanks in Richards Bay to meet growing customer demand. A further R1,2 billion of capex investment in multi-purpose and LPG tanks have been approved and construction has started. R1,6 billion was spent on renewing and upgrading existing facilities, fleets and other enabling assets.

 

    Natural capital

Natural capital

The world’s nature ecosystems and assets

We have a low carbon footprint and we continuously strive to minimise our environmental impact to leave our planet in good working order for future generations.

FY17 report back: Our carbon footprint remains small and no environmental breaches were reported during the year.