CA Sales : &S Group Integrated Annual Report 31 Dec 2022

Collaboration. Activation. Sales.

INTEGRATED REPORT 2022

for the year ended 31 December

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

Contents

Taking Brands Beyond Borders

About this		Our strategic		Performance		Annual financial
report		business context		review		statements
About this report	1 Overview of our macro- and micro-environment		How did we do		Our financial information
Our financial and non-financial milestones	2	Chairman's message	11	CFO's message	30	Report of the audit and risk committee	66
		Operating environment	13	Value added statement	32	Statement of responsibility by the
		Stakeholder relationships	14	Summary of ratios and statistics	33	board of directors	68
		Risk considerations	17	Country review	34	Statement on internal financial controls	69
		Material matters	20	Sustainability review	39	Certificate by company secretary	69
						Report of the board of directors	70
						Independent auditor's report	73
						Annual financial statements	78
						Notes to the financial statements	83

Introducing		Strategic		Corporate		Shareholder
CA&S Group		overview		governance		information
What we do and where we do it		What we do and how we do it		Our principles and practices		Ancillary details for our stakeholders
Who we are and what we do	3	CEO's message	24	Our board of directors	51	Analysis of shareholders	144
The CA&S story	4	Group strategy	26	Corporate governance review	53	Shareholders' diary	144
Our vision and mission	5	ESG roadmap	28	Statement of compliance	55	Notice of annual general meeting	145
Our footprint	6			Committee reports	56	Form of proxy	153
Group companies overview	7			Remuneration report	59	Corporate information	IBC
Our value creation business model	9

INTEGRATED REPORT 2022

ABOUT THIS	INTRODUCING	OUR STRATEGIC	STRATEGIC	PERFORMANCE	CORPORATE	ANNUAL FINANCIAL	SHAREHOLDER
REPORT	CA&S GROUP	BUSINESS CONTEXT	OVERVIEW	REVIEW		GOVERNANCE	STATEMENTS	INFORMATION
About this report
Report objective					Reporting scope and boundary
This Integrated Report (IR) provides our stakeholders with insight into our ability to create value over	As the concepts and practices of both integrated and sustainability reporting develop,
the short-, medium- and long-term. It outlines the group's strategy and business model, operating		CA&S will continue to improve disclosures and application as deemed appropriate.
environment, material risks and governance, as well as our financial performance for the year		This report covers the primary activities of the CA&S Group's subsidiaries and
1 January to 31 December 2022.
			associates operating in the Southern African region, including both financial and
Reporting frameworks					non-financial outcomes. While the report is primarily written for investors, we also
The report has been prepared in line with the International Sustainability Standards Board's		present information relevant to the way we create value for other key stakeholders,
	including our staff, clients, regulators and society.
International Framework. It takes into consideration the principles and practices contained in the
South African King Code of Governance Principles 2016 (King IV™)*. The consolidated annual financial	The information in the integrated report is informed by materiality, with a focus on
statements have been prepared in accordance with International Financial Reporting Standards		issues that are important to both CA&S and our key stakeholders.

("IFRS") and the South African Companies Act, as well as the Listings Requirements of the Botswana Stock Exchange ("BSE") and the JSE Limited ("JSE").

* Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all its rights are reserved.

Disclosure and assurance

CA&S aims for all disclosures included in this IR to provide meaningful, accurate, complete, transparent and balanced information to stakeholders. The board of directors (the board), its committees and management were involved in determining and approving disclosures made in this IR.

The financial information included in this IR was prepared in accordance with IFRS, with PricewaterhouseCoopers Inc. independently assuring the annual financial statements.

Forward-looking statements

This report may contain forward-looking statements about the group's operating environment, outlook and operations, which are affected by risks and uncertainty. Certain factors could influence the ultimate outcomes to be significantly different from our view. Forward-looking statements have not been audited by our external auditors.

NAVIGATION ICONS

SIX CAPITALS	Financial	Manufactured	Social and
			relationship
Human	Intellectual		Natural

OURSERVICE OFFERING

Warehousing	Retail execution and	Retail support	Technology	Training
and distribution	advisory services	services	and data

Responsibility and approval

The board acknowledges its responsibility to ensure the integrity of this IR. In its opinion, and after discussions with management, the report addresses all the issues that are material to the group's ability to create value and fairly presents the integrated performance of the CA&S Group. The board has applied its collective mind to the preparation and presentation of this report and believes that it has been prepared in accordance with the Framework. The board of directors of CA&S Group approved this report on 28 April 2023.

INTEGRATED REPORT 2022

Johan Holtzhausen	Duncan Lewis	Frans Reichert	Badal Patel	Blackie Marole
Independent non-	Chief Executive	Chief Financial	Independent	Independent
executive Chairman	Officer	Officer	non-executive	non-executive
Bridgitte Mathews	Elias Masilela	Frans Britz	Leon Cronje	Shiellah Moakofi
Independent	Independent	Independent	Independent	Independent
non-executive	non-executive	non-executive	non-executive	non-executive
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ABOUT THIS	INTRODUCING	OUR STRATEGIC	STRATEGIC	PERFORMANCE	CORPORATE	ANNUAL FINANCIAL	SHAREHOLDER
REPORT	CA&S GROUP	BUSINESS CONTEXT	OVERVIEW	REVIEW	GOVERNANCE	STATEMENTS	INFORMATION

Our financial and non-financialmilestones

18.2%

Revenue increase in 2022

REVENUE

R9.485 billion

(2021: R8.028 billion)

EMPLOYEES

R1.336 billion

paid in wages

and salaries

13 506

employment opportunities

in Southern Africa

OPERATING		HEADLINE	HEADLINE EARNINGS
PROFIT		EARNINGS	PER SHARE (HEPS)
R531 million	R363 million	78.21 cents
(2021: R401 million)	(2021: R272 million)	(2021: 59.61 cents)
STORES SERVICED		CSI SPEND
Products		R4.3 million
delivered to more than
5 400 outlets		spent in 2022

Retail execution	42 charitable
services in more than
6 200 outlets	organisations/
initiatives

DIVIDEND DECLARED

FOR THE YEAR

15.35 cents

(2021: 11.77 cents)

INFRASTRUCTURE

103 588m2

warehousing available

We have

269 trucks

in our fleet

INTEGRATED REPORT 2022

2

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

Who we are and what we do

The CA&S Group is the holding entity of a collective of fast-moving consumer goods (FMCG) service businesses that help ensure millions of households can access essential products they need to experience better quality lives.

Our clients depend on us for continuous on-shelf availability. The group offers a reliable route-to-market service to brand owners of consumer goods. The group also offers aligned services, ensuring that our clients' brands are fully maximised in their various markets. Our offering includes warehousing, various models of distribution, sales, in-store execution, shopper marketing and training, as well as selected debtor services, category consultation and key account assistance.

The group partners with clients to take brands beyond borders, ensuring they are available, visible and promoted to shoppers across the continent. We operate in multiple Southern African countries, with specialist services in five key areas:

Warehousing and distribution

Retail execution and advisory services

Retail support services

Technology and data solutions

Training

The group has an unparalleled distribution network in the region, with our companies closely collaborating to take brands beyond borders.

We have excellent storage solutions, and our distribution network enables us to consistently deliver for our clients, giving them surety that their products are safely stored, maintained and readily available for distribution.

We partner with clients to grow their brands by increasing their market share and volume from the formalised trade right through to the informal market via our cash van operation.

We build on-shelf visibility, optimising brand positioning. CA&S implements category flows and ensures that sufficient stock is on hand and readily available, especially when there is fluctuating demand. We assist in the maintenance of retailer systems and influence sales where we are able to. We have deep local channel knowledge and established, respectful retailer relationships at all levels.

The CA&S team of industry experts and practitioners contains extensive experience across multiple functions spanning retail and manufacturing.

We help clients to develop end-to-endroute-to-market strategies to unlock brand and business potential. We assist with key account management and category plans. Services include data analytics, specialist retail recruitment services, as well as regional and global expansion support.

The group runs shopper marketing campaigns and activates brands across Southern Africa.

Recruited, trained and mentored sales-oriented staff are immersed in clients' brands to ensure that they can educate and promote their benefits and advantages.

Technically skilled point of sale (POS) specialist teams implement POS strategies, building everything from cardboard bins and ad hoc displays to permanent customised stands in steel, glass or wood.

CA&S provides purpose-built, adaptable, end-to-end, cloud based FMCG value chain software solutions and platforms. We have more than 15 years' experience in the sales force automation space, trusted by some of the largest names in the world to deal with the regions deemed most difficult to manage and succeed in.

Our mobile automation solutions encompass everything from sales and invoice generation to stock management, settlements and debtor management, B2B, consumer loyalty and rewards, and integrated mobile payments.

Services include image recognition technology and data management and mining for actionable business insights.

The CA&S solution has assisted large FMCG players and food and beverage distributors to optimise their route to market, implement loyalty and rewards initiatives, and gain visibility within their value chains.

Our clients benefit from well-equipped and motivated work teams. We prepare our employees through capability training that includes accredited customised workplace and online courses.

REVENUE STREAMS (%)

2022

14 2

84

2021

13 2

85

Warehousing and distribution

Retail execution

Other services

INTEGRATED REPORT 2022

3