A MESSAGE FROM LEADERSHIP

2016 has been a challenging year for the Altron group. Revenue decreased 4% to R26 592 million with EBITDA declining 73% to R376 million as the impact of a weak macroeconomic environment and instable demand particularly impacted on our manufacturing operations.

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Dr Bill Venter, Non-executive Chairman | RE Venter, Chief Executive

COMPANY
STRUCTURE

In 2016 the group concluded its three-year process of streamlining its organisational structure by integrating Altech and Bytes, forming a new division: Altron TMT.

In doing so it has reduced redundant processes and costs by pooling scarce and specialist resources. The introduction of Altron group services, a central body that manages facilities, procurement, marketing and communications, information technology and human capital, further helps to redirect management resources for more strategic purposes.

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Our
Performance

Financial
sustainability

MATERIAL ISSUES
The group continues to identify two core material issues related to financial sustainability, namely profitable growth and capital cost and efficiency. In the 2016 financial year, however, we added a third material issue, “rationalising and refocusing the business”. It is clear that by resolving this issue we can more successfully drive the former two issues. It is our belief that refocusing the business will enable a marked improvement in capital and cost efficiency and enable the group to invest for profitable growth. We view this third material issue to be temporary in nature and likely to fall away once the strategic repositioning of the group has been completed.

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Human
capital

MATERIAL ISSUES
Altron’s human capital comprises our people – the workforce that brings our strategy to life. We have identified three material focus areas related to human capital:

  • Transformation: Building a diverse workforce that reflects the diversity of our clients, our partners and society
  • Human resources: Manage our workforce in a manner that inspires high performance and captures employee loyalty
  • Company culture: As we undergo the rapid transition towards a leaner, more focused operating company, it is imperative that we create a “one company” culture that reflects Altron’s values and encourages innovation and collaboration
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Products and
services

MATERIAL ISSUES
Altron aims to deliver innovative products and services to its customers by offering end-to-end solutions that draw on the collective strength of our businesses. Doing so gives us a unique understanding of the market and is an important source of competitive advantage. However, maintaining this advantage requires that we stay at the forefront of technology, anticipating disruptive trends and opportunities, and adapting to our ever-shifting operating environment.

We aim to achieve this through investment in the two most material issues: innovation and research and development (R&D), and our product and service offerings.

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External
relationships

MATERIAL ISSUES
In our rapidly evolving markets, relationships with key external stakeholders help us to gain access to opportunities, mitigate risk and provide the products, services and solutions our customers require. Maintaining relations with investors, clients and customers, government and parastatals, strategic partners and suppliers are therefore essential. Limiting the environmental impact of our operations is also important in retaining our reputation as a good corporate citizen.

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