omnia holdings annual report 2010 omnia holdings annu

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