View
0
Download
0
Embed Size (px)
Mustek Integrated Annual Report 2011
www.mustek.co.za unlocking potential
M U
S T
E K
IN T
E G
R A
T E
D A
N N
U A
L R
E P
O R
T 2
0 1
1
www.mustek.co.za
CONTENT
Mission stateMent IFC
Caution on forward looking stateMents IFC
sCope and boundary of the report IFC
group profile 1
Mustek’s integrated annual report
for the 2011 finanCial year 2
board responsibility stateMent 2
Corporate Vision 3
finanCial highlights 3
siX-year finanCial reView 4 – 5
Material issues 6
group struCture 7
Core Values 8
ChairMan’s and Chief eXeCutiVe
offiCer’s reView 8 – 14
awards and reCognition 15
operational reView 15 – 16
Value added 17
sustainability 18 – 31
huMan Capital 18
enVironMental sustainability 25
soCial iMpaCts 31
Culture, ethiCs and Values 31
Corporate goVernanCe report 32 – 39
reMuneration report 40 – 41
risk ManageMent 42 – 43
board of direCtors 44
annual finanCial stateMents 45 – 137
notiCe of annual general Meeting 138 – 142
forM of proXy 143
Corporate inforMation IBC
MISSION STATEMENT
Mustek assembles, markets and distributes iCt (information Communication technology) products and services. Mustek provides competitive, value-added services to our customers and creates wealth for shareholders. Mustek meets its objectives through strong relationships in the international iCt market, and by continually nurturing the entrepreneurial spirit of our people and business associates.
CAuTION ON fOrwArd lOOkINg STATEMENTS
Certain forward-looking statements are made regarding Mustek’s operations, economic performance or financial condition. these include statements concerning the economic and technological outlook for the iCt industry. although Mustek regards these forward-looking statements as being reasonable from its available information, no assurance can be given that such expectations will prove to be correct. outcomes may differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic conditions, results from business and operating initiatives, regulatory changes, exchange rate fluctuations, technological advances or disruptions, and actualised risks. Mustek is not obliged to update publicly or release any revisions of these forward-looking statements to reflect events or circumstances after the dates of the annual financial statements, or to note unanticipated events. all subsequent written or oral forward-looking statements attributable to Mustek or any other person acting on its behalf are qualified by this cautionary statement.
SCOpE ANd bOuNdAry Of ThE rEpOrT
this report covers Mustek’s operations in south africa, elsewhere in africa and in australia for the financial year of 1 July 2010 to 30 June 2011. where reporting value and insights can be added by including post-30 June 2011 events and information, this has been done and recorded as having occurred subsequent to the reporting period.
this integrated annual report and annual financial statements are prepared in accordance with international financial reporting standards (ifrs), the Companies act (act 71 of 2008), as amended, the Jse limited listings requirements, and the king report on governance for south africa 2009 (king iii).
this integrated annual report covers the entire group and all its subsidiaries.
grOup prOfIlE
Mustek, from its corporate headquarters in Midrand, south africa, oversees the activities of its business units operating in its chosen markets in africa and australia. the group invests heavily in its core resource – competent people – by pursuing a comprehensive programme of training and people development. the tenets of the group’s philosophy embrace transparency of operation, imaginative application of technology and accountability to all stakeholders. Mustek’s ongoing success is attributable to a clear and forward-looking strategic vision, responsible management, technically adept workforce, high quality products and superior service levels. the group aims to continue sustainably growing headline earnings and creating long-term shareholder value by remaining focused on its business model. this model provides cost-efficient, world-class distribution, after-sales support and added value services for quality iCt brands that include Mustek’s own well-established Mecer brand.
increasing market share
Mustek Integrated Annual Report 2011 1
2 Mustek Integrated Annual Report 2011
Mustek’s integrated annuaL report
for the 2011 financiaL year
This integrated annual report constitutes a major step along
Mustek’s road to the full integration of the Group’s
management reporting systems with the spirit and principles
of the King Code of Governance Principles for South Africa
2009 (King III). Mustek has reported to the extent that its
internal management systems and reporting policies enable
at this stage, and will develop its reporting processes in the
areas on which the Group is not yet in a position to report in
terms of King III.
The Integrated Reporting Committee of South Africa defines
an integrated report as “a report that incorporates, in clear
language, material information from these and other sources
to enable stakeholders to evaluate the organisation’s
performance and to make an informed assessment about
its ability to create and sustain value. An integrated annual
report should provide stakeholders with a concise overview of
an organisation, integrating and connecting important
information about strategy, risks and opportunities and
relating them to social, environmental, economic and financial
issues”.
This form of annual reporting integrates economic,
environmental, social and governance issues into a single
concise report that also emphasises company risks and
strategies.
Mustek’s engagement of King III and its process of producing
all-inclusive integrated reports will influence the Group’s
business thinking, consequent management decisions and
systems of information gathering. This 2011 report meets the
integrated reporting scope to the fullest extent that Mustek
can provide at this time. Future reports will build upon this
foundation.
Board responsiBiLity stateMent
The Mustek Board of Directors (the Board) acknowledges its
responsibility to ensure the integrity of its integrated annual
report for the 2011 financial year. The Board has accordingly
applied its mind to the integrated annual report and in its
opinion this integrated annual report addresses all material
issues, and presents fairly the integrated performance of the
organisation and its impacts. This integrated annual report
has been prepared in accordance with the recommendations
of principle 9.1 of the King III Code, to the extent that current
Mustek management policies and processes allow. The
Board has authorised the integrated report to be presented
as part of the 2011 annual report.
Mustek Integrated Annual Report 2011 3
corporate Vision
Mustek will achieve its corporate objectives through:
Leadership in its chosen markets.
Increasing market share while maintaining margins.
Maintaining its leadership position by introducing
technology advances to the marketplace ahead of other
suppliers.
Superior procurement, manufacturing and distribution
capabilities, ensuring that high-quality, competitively priced
products and services are delivered to customers.
Equity in the workplace through focused empowerment
initiatives.
Growth and value through targeted initiatives with larger,
high-value customers.
RevenueRevenue R3,5 billion billion (2010: R3,4 billion)(2010: R3,4 billion)
EBITDAEBITDA R179 million million (2010: R155 million)(2010: R155 million)
Headline earnings per share Headline earnings per share up 55% toup 55% to
89 cents (2010: 58 cents) cents (2010: 58 cents) Dividend per shareDividend per share up 42% toup 42% to
17 cents (2010: 12 cents) cents (2010: 12 cents) Distribution, administrative Distribution, administrative and other operating expenses upand other operating expenses up
1,7%% Net finance costs downNet finance costs down
44 % % Margin expansion; operating marginMargin expansion; operating margin
5,1% (2010: 4,5%)% (2010: 4,5%)
financiaL highLights
Six-year Financial Review
4 Mustek Integrated Annual Report 2011
2011 R000
2010 R000
2009 R000
2008 R000
2007 R000
2006 R000
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Revenue 3 506 373 3 409 515 3 481 903 3 420 798 3 354 661 3 200 206 Cost of sales (2 990 485) (2 923 883) (2 916 547) (2 853 007) (2 803 598) (2 692 283)
Gross profit 515 888 485 632 565 356 567 791 551 063 5
