CA Sales : Integrated Annual Report 31 Dec 2023

Integrated report 2023 for the year ended 31 December

Contents

01 About this report

About this report	1
Our financial and non-financial milestones	3

Introducing
02 CA&S Group	5
Who we are and what we do
The CA&S story	6
Our vision and mission	7
Our footprint	8
Group companies overview	9
Our value creation business model	11
Strategic
03 business context	14
Chairperson's message
Operating environment	16
Stakeholder relationships	17
Risk considerations	22
Material matters	24
04 Strategic overview	29
CEO's message
Group strategy	31

INTEGRATED REPORT 2023

05 Performance review

CFO's message	34
Value added statement	36
Summary of ratios and statistics	37
Country review	38

06 Sustainability review

ESG roadmap	44
Natural capital	45
Human capital	50
Social capital	52

07 Corporate governance

Board of directors	57
Corporate governance review	60
Statement of compliance	62
Committee reports	65
Embedding ESG across our subsidiaries	68
Remuneration report	69
Annual financial
08 statements	76
Shareholder
09 information	166
10 Corporate information	IBC

ABOUT THIS

INTRODUCING

STRATEGIC

STRATEGIC

PERFORMANCE

SUSTAINABILITY

CORPORATE

ANNUAL FINANCIAL

SHAREHOLDER

CORPORATE

REPORT

CA&S GROUP

BUSINESS CONTEXT

OVERVIEW

REVIEW

REVIEW

GOVERNANCE

STATEMENTS

INFORMATION

INFORMATION

About this report

INTRODUCTION

The CA&S Group is a collective of fast- moving consumer goods (FMCG) businesses operating in Africa. The group offers route-to-market solutions for some of the world's most-loved consumer brands. The group collaborates with clients, taking brands beyond borders and navigating the supply chain to reach stores, shelves, baskets and trollies. The group listed on the Botswana Stock Exchange (BSE) in 2017 and has held a dual primary listing on the JSE Limited (JSE), since June 2022.

INTEGRATED REPORT

DOUBLE MATERIALITY

Enterprise value:	Social and environmental value:
the impact of company performance and	the impact of the group's activities
trends in the operating environment on the	and performance on society and the
group's sustainability	environment

Strategy	Operating context	Material risks and	Stakeholder needs
opportunities	and priorities

FINANCIAL REPORTING

OBJECTIVE OF THE REPORT

The aim of the CA&S 2023 Integrated Report (IR) is to offer a comprehensive assessment of our ability to create and preserve value in the short, medium, and long term. The report provides insights into the group's strategic direction, business model, operating environment, significant risks, governance structure, financial performance and sustainability initiatives for the period spanning from 1 January to 31 December 2023.

INTEGRATED THINKING AND MATERIALITY

We acknowledge the intricate interplay of different internal and external factors and recognise their influence on our capacity to generate sustainable value. Integrated thinking therefore serves as the foundation for our cohesive decision-making and the measures we undertake to guarantee sustainable value creation, permeating every aspect of our operations. Aligned with this is our approach to materiality, a concept that lays the foundation for our reporting. The concept of "materiality" serves as the basis for our reporting strategy, which focuses on issues that are important to both the group and our key stakeholders.

REPORTING FRAMEWORKS

In preparing this report, we have adhered to the guidelines set out in the International Sustainability Standards Board's International Framework while also incorporating the principles and practices outlined in the King IV Report on Corporate Governance for South Africa, 2016 (King IV™). Furthermore, our consolidated annual financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS), the South African Companies Act, and the Listings Requirements of the JSE and BSE.

REPORTING SCOPE AND BOUNDARY

As the integrated and sustainability reporting landscape evolves, we remain committed to enhancing our disclosures. This report covers the primary operations of the CA&S Group's subsidiaries and associates located in Africa. The report encompasses both financial and non-financial disclosures. While it caters primarily to investors, it presents pertinent information to other key stakeholders, such as our employees, clients, regulators and society. Financial information is reported in South African Rand, unless otherwise stated.

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SIX CAPITALS

Financial	Intellectual	Manufactured	Natural
capital	capital	capital	capital
Social	Human
capital	capital
OUR SERVICE OFFERING
Warehousing	Retail execution	Retail support
and distribution	and advisory	services
	services
Technology and	Training
data solutions

INTEGRATED REPORT 2023

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ABOUT THIS	INTRODUCING	STRATEGIC	STRATEGIC	PERFORMANCE	SUSTAINABILITY	CORPORATE	ANNUAL FINANCIAL	SHAREHOLDER	CORPORATE
REPORT	CA&S GROUP	BUSINESS CONTEXT	OVERVIEW	REVIEW	REVIEW	GOVERNANCE	STATEMENTS	INFORMATION	INFORMATION

About this report continued

COMBINED ASSURANCE

We aim to provide our stakeholders with disclosures that are not only meaningful but also accurate, comprehensive, transparent and balanced. The process of determining and approving these disclosures involves the active participation of the board, its committees and the executive team. Deloitte & Touche independently assured our 2023 annual financial statements.

FORWARD-LOOKING STATEMENTS

This report includes forward-looking statements pertaining to the group's operating environment, outlook, and operations. These statements are subject to risks and uncertainties, and various factors could lead to significantly different outcomes than initially anticipated. The forward-looking statements in this report have not been audited by our external auditors.

RESPONSIBILITY AND APPROVAL

The board recognises its responsibility for upholding the integrity of this report. Following extensive discussions with the executive team, the board is satisfied that this report encompasses all material issues pertinent to the group's capacity to sustain and create value. The report also presents a fair and comprehensive account of the integrated performance of the group. The board formally approved this report on 30 April 2024.

Nature of information

Auditing of our annual financial statements

Material sustainability information

Financial, operating, compliance and risk management controls

Assurance providers

External auditors: Deloitte & Touche

Internally approved by the board as recommended

by the Social and Ethics Committee

Internal control functions, overseen by the

Audit and Risk Committee

INTEGRATED REPORT 2023

Johan Holtzhausen	Duncan Lewis	Frans Reichert	Badal Patel	Blackie Marole
Independent non-executive	Chief executive officer	Chief financial officer	Independent	Independent
Chairperson			non-executive	non-executive

Bridgitte Mathews	Elias Masilela	Frans Britz	Leon Cronje	Shiellah Moakofi
Independent	Lead Independent	Independent	Independent	Independent
non-executive	non-executive	non-executive	non-executive	non-executive

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ABOUT THIS	INTRODUCING	STRATEGIC	STRATEGIC	PERFORMANCE	SUSTAINABILITY	CORPORATE	ANNUAL FINANCIAL	SHAREHOLDER	CORPORATE
REPORT	CA&S GROUP	BUSINESS CONTEXT	OVERVIEW	REVIEW	REVIEW	GOVERNANCE	STATEMENTS	INFORMATION	INFORMATION

Our financial and non-financial milestones

OPERATING PROFIT	REVENUE
(Rm)	(Rm)

	40.7%		19.4%
	INCREASE		INCREASE
'23	747	'23	11 322
'22	531	'22	9 485
'21	401	'21	8 028

EMPLOYEES

R1.539 billion

paid in wages and salaries

(2022: R1.336 billion)

15 268

employment opportunities

in Southern Africa

(2022: 13 506)

HEADLINE EARNINGS

PER SHARE (cents)

25.3%

INCREASE

'23 97.97

'22 78.21

'21 59.61

CLIENTS, CUSTOMERS AND CONSUMERS

Route-to-market solutions

delivered in more than

19 840

outlets and stores

(2022: 11 600)

1 500

consumer goods brands

represented

EARNINGS PER SHARE	DIVIDEND DECLARED
(cents)	PER SHARE (cents)

	59.5%		27.4%
	INCREASE		INCREASE
'23	125.22	'23	19.56
'22	78.53	'22	15.35
'21	58.05	'21	11.77

COMMUNITY

R5.4 million

CSI spent in 2023

(2022: R4.3 million)

51

charitable organisations/

initiatives supported

(2022: 42)

PAGE 50

PAGE 11

INTEGRATED REPORT 2023

PAGE 52

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ABOUT THIS	INTRODUCING	STRATEGIC	STRATEGIC	PERFORMANCE	SUSTAINABILITY	CORPORATE	ANNUAL FINANCIAL	SHAREHOLDER	CORPORATE
REPORT	CA&S GROUP	BUSINESS CONTEXT	OVERVIEW	REVIEW	REVIEW	GOVERNANCE	STATEMENTS	INFORMATION	INFORMATION

Introducing CA&S Group

Who we are and what we do	5
The CA&S story	6
Our vision and mission	7
Our footprint	8
Group companies overview	9
Our value creation business
model	11

INTEGRATED REPORT 2023

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ABOUT THIS	INTRODUCING	STRATEGIC	STRATEGIC	PERFORMANCE	SUSTAINABILITY	CORPORATE	ANNUAL FINANCIAL	SHAREHOLDER	CORPORATE
REPORT	CA&S GROUP	BUSINESS CONTEXT	OVERVIEW	REVIEW	REVIEW	GOVERNANCE	STATEMENTS	INFORMATION	INFORMATION

Who we are and what we do

The CA&S Group is a collective of fully integrated FMCG businesses operating in Africa. We provide route-to-market solutions for some of the world's most-loved consumer brands.

The group collaborates with clients, delivering brands across borders and navigating the supply chain to reach stores, shelves, baskets and trollies. We ensure availability for and visibility to African shoppers, including promoting the brands.

Working closely with clients, we address trade obstacles, enhance shelf presence and safeguard market shares.

OUR SERVICE SOLUTIONS

The CA&S Group operates in several southern and East African countries. Our service solutions include selling and distributing fast-moving consumer goods as well as services such as retail execution and advisory, retail support, training and technology and data solutions.

We provide specialist services in five key areas:

01 WAREHOUSING AND DISTRIBUTION

The group possesses an unmatched distribution network in the region, with our operations working closely together to extend the reach of brands across borders. Our effective storage solutions, coupled with the efficiency of our distribution network, ensure a reliable and consistent delivery process for our clients, with the assurance that their products are securely stored and readily available for distribution.

02 RETAIL EXECUTION AND ADVISORY SERVICES

We collaborate with leading brand owners to enhance their brand growth, expanding market share and volume from formalised trade to the informal market. Our focus includes increasing on-shelf visibility, optimising brand positioning, and implementing effective category flows to ensure sufficient and readily available stock, especially during fluctuating demand.

CA&S actively contributes to maintaining retailer systems, influencing sales where possible, and leveraging deep local channel knowledge with established and respectful retailer relationships at all levels.

The CA&S team, comprising industry experts with extensive experience in retail and manufacturing, assists clients in developing comprehensive route-to-market strategies to unlock brand and business potential. Our services extend to key account management, category plans, data analytics, specialist retail recruitment, and support for regional and global expansion.

03 RETAIL SUPPORT SERVICES

The CA&S Group offers retail support by running shopper marketing campaigns and brand activation at the point of purchase. Our sales-oriented staff members engage acutely with clients' brands to effectively educate and promote their benefits and advantages.

Additionally, our point-of-sale (POS) specialist teams execute POS strategies, ranging from constructing cardboard bins and ad hoc displays to creating permanent, customised stands in steel, glass or wood.

04 TECHNOLOGY AND DATA SOLUTIONS

With over 20 years of expertise in the sales force automation space, CA&S offers purpose-built, adaptable, and end-to-endcloud-based FMCG value chain software solutions and platforms to leading brands across 16 countries. Our mobile solutions encompass everything from sales and invoice generation to stock management, consumer loyalty and rewards and integrated mobile payments.

05 TRAINING

We specialise in training, empowering and motivating work forces to improve productivity. Practical tailored modules include retail execution and a selection of business, IT, wellness and personal development topics.

INTEGRATED REPORT 2023

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ABOUT THIS	INTRODUCING	STRATEGIC	STRATEGIC	PERFORMANCE	SUSTAINABILITY	CORPORATE	ANNUAL FINANCIAL	SHAREHOLDER	CORPORATE
REPORT	CA&S GROUP	BUSINESS CONTEXT	OVERVIEW	REVIEW	REVIEW	GOVERNANCE	STATEMENTS	INFORMATION	INFORMATION

Revenue from services (%)

WAREHOUSING		RETAIL EXECUTION AND	OTHER SERVICES
AND DISTRIBUTION		ADVISORY SERVICES
'23	85	'23	13	'23	2
'22	84	'22	14	'22	2

The CA&S story

The CA&S Group was founded in 2012 with the acquisition of CA Sales and Distribution in Botswana, a company with a 40-year history at the time of purchase.

Our vision was to establish a group capable of offering multinational brand owners similar or complementary route-to-market solutions across borders, facilitating the distribution of their products to more shoppers in different countries. This vision led to subsequent acquisitions of founder-run businesses across African markets, known for their deep in-country roots, longstanding trading relationships and proven track record of delivering value-adding solutions to clients.

COLLABORATION							SALES
Collaboration is how our shared					When we do collaboration, activation
experience, expertise and knowledge					and the Power of "&" correctly, improved
in our territories and our fields make a		ACTIVATION	THE POWER OF "&"	sales are the result. Sharing the success
meaningful impact for our clients and						of our clients' brands and growing
their brands.	We take a brand's true potential and	We believe in the exponential power	together exponentially through every in-
		store and on-shelf opportunity, creates
		put it into action. We execute and	of mutualistic partnerships to unlock
		true brand affinity for our shoppers.
		operationalise, order, store, deliver,	potential for our clients, our people
		and activate channels, opening market	and their communities, as well as our
		access and brand success.	business and shareholders.
INTEGRATED REPORT 2023					6

ABOUT THIS	INTRODUCING	STRATEGIC	STRATEGIC	PERFORMANCE	SUSTAINABILITY	CORPORATE	ANNUAL FINANCIAL	SHAREHOLDER	CORPORATE
REPORT	CA&S GROUP	BUSINESS CONTEXT	OVERVIEW	REVIEW	REVIEW	GOVERNANCE	STATEMENTS	INFORMATION	INFORMATION

Our vision	Our mission
To be the most effective group at seamlessly executing	To leverage the potency of our collective reach, scale,
and driving clients' brand strategies on the ground, for	market insights and experience to ensure we repeatedly
the best possible sales return on their investment.	deliver against our clients' expectations, building real
	partnerships in the process.

Our guiding values

Distinguished delivery

We consistently strive to exceed expectations by creating and delivering remarkable customer experiences through a performance-based culture built on accountability and collaboration.

We rely on each other

Being able to rely on each other through every opportunity makes us stronger together. It helps us deliver consistently high service levels and value-added results that build complete client confidence.

A multi-focal approach

Our multi-focal approach and broad understanding of our markets help us develop unique and relevant insights needed to identify and act on opportunities today that will build longer-term sustainability.

Entrepreneurial hearts

We're able to respond and act on opportunities by adapting and engaging ourselves with speed, energy, tenacity and agility.

INTEGRATED REPORT 2023

People partnerships

We create and sustain meaningful relationships through collaboration, transparency, mutual respect, and a passionate focus on client partnerships and our people.

Pathfinders in solution seeking

Our entrepreneurial vision and passion for innovation help to drive us further every day, constantly seeking improvement and the advancement of our people and businesses.

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ABOUT THIS	INTRODUCING	STRATEGIC	STRATEGIC	PERFORMANCE	SUSTAINABILITY	CORPORATE	ANNUAL FINANCIAL	SHAREHOLDER	CORPORATE
REPORT	CA&S GROUP	BUSINESS CONTEXT	OVERVIEW	REVIEW	REVIEW	GOVERNANCE	STATEMENTS	INFORMATION	INFORMATION

Our footprint

We maintain a dual primary listing on both the

Botswana Stock Exchange and the JSE Limited.

WHAT DIFFERENTIATES US

• Operations in eight African countries and services in several more.
• Broad trade coverage, from bottom-end and convenience to formal and corporate stores.
• Deep local market knowledge and understanding.
• Shared experience between our businesses, across geographies and specialised focus areas.
• Long-standingrelationships with major multi-national manufacturers.
• Our customer relationships, combined with regional connectivity and shared collective expertise, grants the CA&S Group a powerful and unmatched competitive advantage in the region.

REVENUE CONTRIBUTION PER COUNTRY (%)

50%		19%			15%
(2022:54%)		(2022: 15%)			(2022: 15%)
BOTSWANA	NAMIBIA		ESWATINI
CA Sales & Distribution	SMC Brands		Logico
Smithshine Enterprises	Wutow		SMC Brands
Kalahari Training Institute	MACmobile		MACmobile
PEO Promotions	Visible Worx		Visible Worx
SMC Brands	T&C Group
MACmobile
Visible Worx

INTEGRATED REPORT 2023

		KENYA
		MACmobile
		ZAMBIA
		Smithshine Distributors
	2%	Promexs
	MACmobile
		Visible Worx
	(2022: 1%)
		ZIMBABWE
		MACmobile
		Visible Worx
		LESOTHO
14%		SMC Brands
	Whitakers
		MACmobile
(2022: 15%)

SOUTH AFRICA

The PnS Group

Effective Sales &

Merchandising

MACmobile

Visible Worx

MarketMax

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