NON-EXECUTIVE CHAIRPERSON’S REPORT

 

As the non-executive chairperson of the Board of AEEI, I am delighted to present my 2021 financial year-end report. Amidst the current COVID–19 pandemic’s impact on the global economy and uncertainty, AEEI adjusted its business strategy and business model to meet the challenges. AEEI has coped well in adapting to the “new normal” to quickly meet the changes faced by the businesses and the wider Group.

“Difficulties mastered are opportunities won.” – Winston Churchill

AEEI displayed exceptional resilience in the face of the many challenges, due mainly to the COVID–19 pandemic that disrupted all aspects of our lives and fundamentally forced people and businesses to adapt to a new way of being. Almost everyone and every business has been affected by the COVID -19 pandemic by way of people’s livelihoods and sustainability of businesses due mainly to the enforced “lockdown” situation globally.

Despite the current adverse conditions, it is inspiring to see the unwavering strength of people and businesses to survive.

In South Africa, the basis of the economic recovery plan was linked to the country’s vaccine roll-out initiative. This was disrupted by the civil unrest in the Gauteng and KwaZulu Natal provinces during July. It has also highlighted our responsibility to play an even more active role in fully addressing social inequality and injustices within our Group and our communities.

Unfortunately, no one can offer a fool-proof guarantee of when the pandemic will end. Now, as we enter a period of complexity, uncertainty, and new opportunities – the “Never Normal” – I am hopeful that we can now positively look forward to a phase of recovery while the future remains unstable and unpredictable.

AEEI is focused on and remains determined to realise its transformation goal of inspiring inclusive growth for all our people. AEEI continues to transform and redefine an ecosystem across the Group for further advancing dignity, healing, freedom, and equality for all.

I am optimistically confident that the Group will make steady progress based on the recovery plan already in execution, and we reap the benefits for all our employees, shareholders and stakeholders in the year ahead.

 

NEVER NORMAL

 

The culture at AEEI is an all-inclusive one, and more than ever this year, we relied on our employees’ efforts, dedication, commitment, and teamwork to reach our goals.

I am proud and grateful to acknowledge that our employees stepped up and embraced new technology (virtual meetings), which have brought about greater efficiency and has allowed for more accessible communication with each other.

While businesses will never be the same again, as a Board, we are fully committed to remaining flexible and committed to meeting our objectives. This includes creating value for our shareholders while safeguarding and ensuring the business sustainability of AEEI for the livelihoods of our employees and our stakeholders.

 

COVID–19 AND OUR EMPLOYEES

 

At the start of the pandemic, we acted swiftly and put measures in place to secure the well-being of our employees and their families. We introduced and implemented the requirements of Section 8(1) of the Occupational Health and Safety Act by providing Personal Protection Equipment, hand sanitisers, masks, sanitised offices for our workforce and initiated social distancing measures. There has also been a rotation of teams working in the office, with all employees having the option to work from home during lockdown levels 1-3.

Some of our subsidiaries were deemed “Essential Services” and have navigated their way around the pandemic as best as possible.

While we made every effort to protect our employees and their families, sadly a few of our employees succumbed to the virus. Unfortunately, this has had an enormous impact on those left behind, and we continue to express our sincere and deepest condolences to their families and friends. Refer to https://onlinereport2021.aeei.co.za/introduction/about-our-integrated-report/ for the detailed report.

 

RESTRUCTURING FOR BUSINESS SUSTAINABILITY

 

The effect of the pandemic, together with operating in a volatile global economic climate and a challenging socio-political arena, impacted some of our business units. Although we applied a host of scenario planning options to our business model, several of which were implemented. This unfortunately led to restructuring some business units, with some employees taking a salary reduction, others were deployed elsewhere within the Group and retrenchment was considered a last resort.

 

KEY BOARD FOCUS AREAS FOR THE 2021 FINANCIAL YEAR

 

AEEI’s resilience during uncertain times is testimony to its value system and work ethic since its listing on the JSE in 1999. Reflecting on our key focus areas, I wish to highlight the following:

• Premier Fishing and Brands Ltd obtained a level 1 B-BBEE rating for two of its subsidiaries, being both Premier Fishing (Pty) Ltd and Marine Growers (Pty) Ltd.

• Remote work, online education and social distancing created a demand for products and services delivered by the technology companies in our Group.

• AfriNat’s VibacSan range of products was accredited with the SABS international standards and the new SANAS 1853:2020 standards.

 

GOVERNANCE AND TRANSFORMATION AT AEEI

 

Throughout the year, we maintained the highest levels of corporate governance. The Groups adherence to market conduct principles was also closely monitored. More details on our corporate governance is available on https://aeei.co.za/investorrelations/intergrated-reports-and-online-suite-of-reports/.

The Board is particularly proud of the work that has gone into transforming and diversifying our leadership teams. As a result, AEEI has one of the most transformed Board of directors in the investment sector, and this will stand us in good stead as we drive the business to stability and increased growth.

 

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

 

Sustainability, social responsibility, and ethics are at the forefront of our business. AEEI and its listed entities have a longstanding commitment to carry out its business responsibly, striving to influence positively and affect meaningful change, recognising that its actions today enable the reality of tomorrow. The group’s policies and practices are updated regularly to remain compliant with the relevant laws, rules, regulations, codes, and standards, including but not limited to the JSE Listings Requirements and the King IV™ principles.

 

APPRECIATION

 

In closing, I would like to express my gratitude to my fellow Board members for their guidance, input, and valuable contributions. Thank you also to our shareholders and stakeholders for your continued support. It would be remiss of me not to honour our valuable employees – we are very grateful and appreciative of your support and dedication under challenging conditions. On behalf of the Board, I thank you for your valuable contributions.

 

CONCLUSION

 

When the pandemic recedes, executives cannot expect office life to be as it was. But they can create a “new work world” that will keep employees happy and productive. So I look forward to chairing AEEI’s next phase of its growth and prosperity.

“The strength of the team is each individual member

The strength of each member is the team.” – PHIL Jackson