{"id":2986,"date":"2022-06-19T10:15:11","date_gmt":"2022-06-19T08:15:11","guid":{"rendered":"https:\/\/famousbrands.co.za\/iar2023\/investment-committee-report\/"},"modified":"2023-06-21T14:05:43","modified_gmt":"2023-06-21T12:05:43","slug":"investment-committee-report","status":"publish","type":"page","link":"https:\/\/famousbrands.co.za\/iar2023\/governance-and-remuneration\/investment-committee-report\/","title":{"rendered":"Investment Committee report<\/span>"},"content":{"rendered":"
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\u201cAs the Investment Committee, we interrogate all investments\r\n against the overall business strategy. We also consider the\u00a0difficult operating environment, including\r\n present and emerging risks, to\u00a0make prudent investment choices.\u201d <\/h2>\r\n
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Mandate<\/h2>\r\n

The purpose of the Investment Committee is to assist the\u00a0Board in discharging its oversight responsibilities\r\n regarding the Company\u2019s investment strategy and policy. The\u00a0Committee assists the Board in considering\r\n investment opportunities, approving acquisitions, disposals and capex, and reviewing the performance of\r\n previous investments.<\/p>\r\n <\/div>\r\n <\/div>\r\n

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Attendance and composition <\/h2>\r\n\r\n \r\n \r\n \r\n \r\n
Members<\/td>\r\n Invitees<\/td>\r\n Relevant skills profile of members<\/td>\r\n <\/tr>\r\n <\/thead>\r\n
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Chairman<\/h4>\r\n
    \r\n
  • F Petersen-Cook (2\/2)<\/li>\r\n <\/ul>\r\n

    Members<\/h4>\r\n
      \r\n
    • NJ Adami (2\/2)<\/li>\r\n
    • SL Botha (2\/2)<\/li>\r\n
    • CH Boulle (2\/2)<\/li>\r\n <\/ul>\r\n <\/td>\r\n

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    \r\n
  • CEO<\/li>\r\n
  • Group Financial Director <\/li>\r\n
  • Chairman of the Board<\/li>\r\n
  • N Halamandaris <\/li>\r\n
  • Group Risk Executive <\/li>\r\n
  • Company Secretary<\/li>\r\n <\/ul>\r\n <\/td>\r\n
Committee members are highly skilled in actuarial science, business strategy and finance.<\/td>\r\n <\/tr>\r\n <\/tbody>\r\n<\/table>\r\n\r\n

South Africa faces serious socio-economic challenges with low growth,\u00a0high unemployment and an increasingly under-pressure consumer. This environment means that we must look critically at the growth potential of our primary market, assess our current investment and seek opportunities outside our borders. We must grow our brand footprint in the AME region and investing in on-the-ground resources to support this footprint. <\/p>\r\n

As a Committee, we provide oversight on the Group\u2019s technology investments. In 2023, we tasked management with charting all the Group\u2019s technology touchpoints. This includes where technology currently plays a critical role in the business or could potentially play such a role and how we can improve our technology enablement. Our aim with technology is to improve our service delivery to our franchise partners and consumers. <\/p>\r\n\r\n

Read more about our consumer-facing technology<\/a>.

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Not all our investments are consumer-facing. For example, we have invested in implementing a best-in-class warehousing management system and automating processes in our Logistics division. This has unlocked significant operational efficiencies compared to manual warehousing management or alternative systems. In\u00a0the new KwaZulu-Natal Distribution Centre, we realised a step change in productivity from implementing the system. While premium systems can be\u00a0expensive, they are important to unleashing value and ultimately reducing overhead costs. <\/p>\r\n\r\n\r\n

Evaluating investments in\u00a0technology demands asking management the right questions. <\/p>\r\n

This\u00a0includes interrogating whether the investment matches the business need and seeking expert independent technical\r\n opinions. <\/p>\r\n

From a business strategy perspective, we must find ways to ensure the business is more resilient. This includes\r\n investing to make the business more energy resilient. The escalation of load shedding has meant that investments\r\n in own generation are no longer optional. These include investments in more efficient and powerful generators to\r\n continue operating effectively. Famous Brands has begun installing solar plants on some operational sites.\r\n Increased load shedding expected electricity rate hikes and tax incentives have strengthened the business case\r\n for solar. <\/p>\r\n\r\n

Focus areas for 2023<\/h2>\r\n

The Committee reviewed and approved the annual workplan and Committee Charter. The Committee evaluated key\r\n investment projects, including:\r\n