integrated annual report 2020 - adcorp€¦ · cemas & pet cemas cnsttn & enneen ate f & beeae...

Integrated annual report2020

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Integrated annual report 2020INTRODUCTION

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Approach to reporting

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Further reference in the report Area of compliance with King IV Report on Corporate GovernanceTM*

Reporting scope and boundary

This report provides information relating to the business model, operating context, material issues, risks, opportunities, governance and operational performance of the Adcorp Group for the period 1 March 2019 to 29 February 2020. It covers the South African and the international operations, which are based mainly in Australia.

The aim of Adcorp’s annual integrated report is to provide the Group’s stakeholders with information that has been identified as being of material interest. The report will provide the information needed to make an informed assessment about the Group’s ability to create value over the short, medium and long term. This report is guided by the Integrated Reporting framework and the King IV™ report. The framework sets out six capitals, which businesses may integrate as part of their reporting, being financial, manufactured, human, intellectual, natural, and social and relationship capitals. The Companies Act, the King IV™ principles and the JSE Listings Requirements form an integral part of the corporate governance framework within which the Adcorp Group operates.

Adcorp recognises that integrated reporting is a journey. To this end, the Group is committed to moving towards a more integrated approach to reporting by making incremental improvements on a year-on-year basis. In this integrated annual report, key improvements have been made to the business model, the five capitals applicable to our business and the disclosure on risk and risk mitigation.

To achieve a more integrated reporting approach, value creation is summarised as follows:

Our business modeland how it is

applied tocreate long-term

value

How we are creating value

in 2020

Management of risk,

opportunities and the material issues on which our reporting is based to create

sustainable value

Sustainable development of the business,

which isaddressed in

the Valuecreationsection

Approach to governance,

which is addressed in

the Leadershipand

accountabilitysection

1 42 3

See page 8 See pages 2, and 10 to 15

See pages 16 to 43 See pages 44 to 63

KIV

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Reporting standards and frameworks

Approach to materialityThe aim of this report is to provide information on matters that have a material bearing on Adcorp’s ability to create value. These matters are interest to current and prospective investors and other stakeholders who wish to make an informed assessment of the Group’s ability to deliver value over the short, medium and long term. Material matters were established through external engagement with investors and other stakeholders as well as internal engagement with our South African and Australian employees. The Board and management followed a rigorous process to arrive at the Group’s strategic objectives and identify what is required to achieve these objectives.

AssuranceAs per King IV™, a combined assurance model assists the Board in assessing the effectiveness of the internal control environment and enables the Board to assess the integrity of the information used for reporting and decision making.

Adcorp’s combined assurance framework ensures the integration, coordination and alignment of risk management and assurance processes. Overseen by the Audit and Risk Committee, the framework enables an effective control environment and supports the integrity of information used for decision making by leadership.

A company is able to exercise its judgement with regard to whether the integrated annual report should be assured by an external assurance provider. As a combined assurance model is in place, Adcorp Group did not deem the use of an external assurance provider as necessary for this integrated annual report. This will be assessed in future.

Standards/codes/principles/guidelines Level of application/compliance in our reporting

International Financial Reporting Standards (IFRS) Complied with

International Integrated Reporting Council’s (IIRC) International Reporting Framework

Guided by its principles

King Code on Corporate Governance 2016™ (King IV™) Applied and application reported on https://www.adcorpgroup.com/corporategovernanceregister/

JSE Listings Requirements Complied with

Companies Act 71 of 2008 Complied with

Principles of United Nations Global Compact Applied

Labour Relations Act 66 of 1995 (LRA) Complied with

Broad-Based Black Economic Empowerment (B-BBEE) Amended Codes of Good Practice scorecard

https://www.adcorpgroup.com/empowerdex_adcorpholdinglimited/


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Board approval

The Adcorp Board assumes responsibility for the integrity of this integrated annual report.

The Board has critically assessed and satisfied itself as to the assurance obtained from Adcorp’s combined assurance model, which enables an effective internal control environment that supports the integrity of information used for decision making and reporting by the Board, the Board committees and management.

The Board also considered materiality for the purposes of the integrated annual report and the effect that the presence or absence of an item of information might have on the accuracy or validity of a statement in the integrated annual report, or a decision by stakeholders (see Approach to materiality on page 2 of this report).

The overall objective with this integrated annual report is to provide information that could materially impact Adcorp’s ability to create value in the short, medium and long term. The Board is of the view that, to the best of its knowledge and belief, our integrated reporting addresses matters material to our stakeholders’ decision making and provides a balanced view by explaining how Adcorp expects to create value over time, taking into consideration the

Group’s impact on its stakeholders and the environment in which it operates.

The Board unanimously approved the integrated annual report for FY2020 on 30 July 2020.

GT Serobe (Chairman)P Roux* (Chief Executive Officer)G Dingaan H SinghS Mabaso-Koyana S SitholeC Maswanganyi C Smith*P Mnganga M SpicerS Mufamadi R Van Dijk*M Nkosi* M Lubega*

* Mr P Roux has been appointed as the Chief Executive Officer with effect from 23 April 2020.

Mr C Smith has been appointed as a non-executive director with effect from 10 January 2020.

Ms R van Dijk has been appointed as an independent non-executive director with effect from 6 June 2019.

Mr M Nkosi has been appointed as a non-executive director with effect from 6 June 2019 (previously an alternate director from 19 October 2018).

Mr M Lubega has been appointed as a non-executive director with effect from 1 July 2020.

Forward-looking statementsCertain statements in this report may constitute forward-looking statements relating to the Adcorp Group that are based on the beliefs, assumptions and information currently available to the Board.

These forward-looking statements are, by their nature, subject to significant risks and uncertainties and include, without limitation, statements relating to the Group’s business prospects, future developments, trends and conditions in the industry and geographical markets in which Adcorp operates. The forward-looking statements may also contain strategies, plans, objectives and goals, the ability to control costs, statements relating to operations, margins, overall market trends, risk management and exchange rates.

Any forward-looking statements have not been reviewed or reported on by the Adcorp Group’s external auditors.


integrated annual report 2020 - adcorp€¦ · cemas & pet cemas cnsttn & enneen ate f & beeae...

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