omnia holdings annual report 2010 omnia holdings annu

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20 OMNIA ANNUAL REPORT 2010 GROUP MANAGING DIRECTOR’S REPORT continued
the best agronomic advice in all aspects of effective crop production will continue to be a major competitive differentiator. Running the business for long-term success Omnia believes that it has an obligation to the society from which it derives its success to be an exemplary corporate citizen. The Group activates this belief by applying sustainable practices across its operations, adopting sound employment policies and by running the business for long-term success. In so doing, the Group contributes positively to building a brighter future for all South Africans. In line with our positioning as a “knowledge leader” in our areas of focus, we invest significantly in training and development opportunities for our employees, particularly those discriminated against in the past. Besides the strategic importance of maintaining a learning culture within the Group, this investment represents a tangible contribution to building the skills base required to position South Africa as the economic powerhouse of Africa. More broadly, the Group plays a part in improving the conditions and economic prospects in the communities in which it operates through focused initiatives designed to support activities that are aligned to its areas of operational focus. Further details are contained within the sustainability report on pages 34 to 64. The Group’s commitment to managing its environmental impacts finds expression in the adoption of environment friendly production practices and cleaner technologies, as well as the steady reduction of the company’s carbon footprint. The sustainability report provides a comprehensive overview of the Group’s governance and management practices, impacts and contributions in the economic, social and environmental spheres. Prospects for growth During the year under review, the Omnia Group entered the first year of a new five-year planning cycle. Although the unprecedented events of 2009 have proved challenging to the business, we are confident we will reach our operational and financial targets over the five-year cycle. This confidence stems from the Group’s strong strategic positioning in sectors vital to future development. A factor that must be considered, however, is the continuing strength of the rand. Should this continue, it would impact on the translation of the results of our international operations, export markets and sales volumes, and ultimately the overall performance of the Group. On the positive side, the indications are that market conditions will continue to improve going forward. The 14-month period of negative growth in manufacturing output ended in July 2009. The positive statistics since then augur well for the Chemicals division, although rand strength will be a constraint and could limit the benefit of the upturn in manufacturing. The signing of several key agreements by the Mining division will provide the impetus for an improved performance going OMNIA ANNUAL REPORT 2010 21 forward. The increasing demand for platinum, copper, iron ore and coal should bolster this outlook. The improved agricultural environment, with the growing focus on biofuels, should continue to buoy the fertilizer industry. The division’s strong position in Africa is an avenue for future growth and increased sales. In addition, the financial structuring of the nitric acid complex will preserve Omnia’s strong balance sheet, which will be used to finance suitable growth opportunities while safeguarding the Group from further volatility in world financial markets. We will continue to assess acquisitions prudently and make careful investments to strengthen our strategic position. Appreciation During the year under review, Omnia regrettably lost the services of Edu Cloete, joint managing director of the Chemicals division. A highly respected leader and colleague, Edu took early retirement bringing to an end his substantial contribution to the company over many years. Edu’s dedication to Omnia is highly appreciated and we wish him well in his retirement. My thanks to my colleagues on the Board who make their support and wisdom available at all times, and to my management team whose dedication and skill helped steer the Group through stormy seas into calmer waters. I salute the persistence and positive attitude of all our people. I extend special thanks to Delwin Eggers who announced his retirement with effect from 31 August 2010. His contribution to the executive team has been invaluable. To our customers, who have remained loyal to Omnia through one of the most challenging periods in its history, we extend our highest appreciation. We look forward to building on our valued partnerships during the year ahead. RB Humphris Group managing director
Page 1 and 2: OMNIA HOLDINGS ANNUAL REPORT 2010
Page 3 and 4: OMNIA’S MILESTONES 1976 1974 1972
Page 5 and 6: FINANCIAL HIGHLIGHTS Audited 31 Mar
Page 7 and 8: OUR VISION CREATING CUSTOMER WEALTH
Page 9 and 10: OMNIA ANNUAL REPORT 2010 5 The diff
Page 11 and 12: Participants were required to inves
Page 13 and 14: Statistical information 31 March 20
Page 15 and 16: The world today faces the compoundi
Page 17 and 18: OMNIA ANNUAL REPORT 2010 13 Omnia
Page 19 and 20: Rod Humphris (53) Executive directo
Page 21 and 22: OMNIA ANNUAL REPORT 2010 17 Notwith
Page 23: (2009: 1 107,4 cents), and headline
Page 27 and 28: OMNIA ANNUAL REPORT 2010 23 The sou
Page 29 and 30: Within the Chemicals Division produ
Page 31 and 32: Overview of Chemicals Protea Chemic
Page 33 and 34: MINING DIVISION - REVIEW OPERATIONA
Page 35 and 36: of ore. The risks normally associat
Page 37 and 38: Financial performance As expected,
Page 39 and 40: About this report This sustainabili
Page 41 and 42: highly productive lands are also mo
Page 43 and 44: - Vaal Triangle Priority Area Air M
Page 45 and 46: Challenges and opportunities Our re
Page 47 and 48: Corporate governance This corporate
Page 49 and 50: Board committees While the Board re
Page 51 and 52: The Group has made great strides in
Page 53 and 54: concern assumption at the interim r
Page 55 and 56: implemented to introduce a technolo
Page 57 and 58: There has been a marked improvement
Page 59 and 60: Social performance Recognising our
Page 61 and 62: for new students of a Certificate i
Page 63 and 64: To entrench these commitments throu
Page 65 and 66: At Omnia Fertilizer, all incidents
Page 67 and 68: Water Use Licence Application (IWUL
Page 69 and 70: FINANCIAL STATEMENTS A responsible
Page 71 and 72: REPORT OF THE AUDIT COMMITTEE for t
Page 73 and 74: DIRECTORS’ REPORT The directors a
Page 75 and 76:
DIRECTORS’ SHAREHOLDING as at 31
Page 77 and 78:
GROUP INCOME STATEMENT for the year
Page 79 and 80:
GROUP STATEMENT OF CHANGES IN EQUIT
Page 81 and 82:
NOTES TO THE GROUP FINANCIAL STATEM
Page 83 and 84:
IAS 39, only certain, rather than a
Page 85 and 86:
1.5 Cost of sales When inventories
Page 87 and 88:
are presented in the income stateme
Page 89 and 90:
fair value of plan assets, together
Page 91 and 92:
1.22 Financial risk management 1.22
Page 93 and 94:
2 PROPERTY, PLANT AND EQUIPMENT Fre
Page 95 and 96:
2 PROPERTY, PLANT AND EQUIPMENT con
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4 AVAILABLE-FOR-SALE FINANCIAL ASSE
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8 STATED CAPITAL continued Number o
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13 INTEREST-BEARING BORROWINGS OMNI
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15 PROVISIONS OMNIA ANNUAL REPORT 2
Page 105 and 106:
19 FINANCE EXPENSES OMNIA ANNUAL RE
Page 107 and 108:
21 EARNINGS PER SHARE AND DIVIDENDS
Page 109 and 110:
28 ACQUISITION OF BUSINESS OMNIA AN
Page 111 and 112:
29 FINANCIAL RISK MANAGEMENT contin
Page 113 and 114:
29 FINANCIAL RISK MANAGEMENT contin
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30 RELATED PARTY TRANSACTIONS conti
Page 117 and 118:
32 RETIREMENT BENEFIT INFORMATION c
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OMNIA ANNUAL REPORT 2010 115 33 CON
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36 SHARE INCENTIVE SCHEME continued
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36 SHARE INCENTIVE SCHEME continued
Page 125 and 126:
Country of incorporation Issued cap
Page 127 and 128:
COMPANY INCOME STATEMENT for the ye
Page 129 and 130:
COMPANY CASH FLOW STATEMENT for the
Page 131 and 132:
SUMMARY OF SHAREHOLDER SPREAD at 31
Page 133 and 134:
NOTICE TO SHAREHOLDERS for the year
Page 135 and 136:
FORM OF PROXY For use at the annual
Page 137 and 138:
ADMINISTRATION GROUP COMPANY SECRET
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