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Reunert’s six-pillar strategy guides our strategic choices, resource allocation and performance indicators; responds to the Group’s material matters and operating environment and is integrally linked to the Group’s investment case.

GROUP STRATEGY
group strategy
GROWTH AREAS
  • Investment into Renewable Energy through increasing solar energy asset ownership and sales of large, containerised storage solutions
  • Investment into the ICT Segment to create a leading digital integration solutions provider
  • Increase in international revenues supported by expanding the Group’s footprint through an in-country presence in geographies of strategic value

Group strategy objectives

Our strategic objectives drive business unit plans that support the six-pillar growth strategy, growth areas and investment case. These objectives have different phases of implementation over the short, medium and long term:

High quality assets in diversified segments that grow core profits sustainably
  • Organically growing the core businesses to maintain our strong, defendable market positions
  • Electrical Engineering Segment well positioned to take advantage of the expansion in the transmission grid in South Africa
  • Augmenting traditional revenue streams in Electrical Engineering, ICT and Applied Electronics with new complementary product and service revenues
  • Supported by strategic pillars of customers, innovation and efficiency
Three key strategic growth initiatives of Renewable Energy, Digital Integration, and Internationalisation
  • Delivering against Reunert’s investment case by:
    • Continued investment and expansion into renewable energy offerings
    • Growing the Digital Integrator in the ICT Segment by continually capturing the rapidly expanding South African IT market
    • Increasing international revenues by expanding our physical presences and market share in key geographies where we have a competitive advantage, especially in Defence and the Electrical Engineering Segment
  • Supported by the pillars of customers, diversification, innovation and efficiency
Strong balance sheet and cash flows fund strategic and operational requirements and deliver dividends for shareholders
  • Continuing the release of loan funding currently held in the Rental-based Finance Cluster to redeploy capital into higher-yielding growth opportunities and improve the capital structure
  • Deliver consistent dividend growth for our shareholders
Responsible business practices, ethical action and ESG credentials underpin the investment case
  • Driving a high-performance culture through the Group Values and Code of Ethics
  • Improving ESG disclosure through alignment with relevant reporting frameworks
  • Supported by the people pillar

Strategy highlights

Find additional information on our strategy in these documents:

Reunert investment case

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Material matters influencing value creation

Reunert's selected material matters could substantively affect the Group's ability to create and preserve value in the short, medium and long-term.

In 2023, the material matters remained unchanged. However, some of the levels of impact that each material matter exerted on the Group have changed. Material matters are discussed throughout this report.

Material matters

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Appropriate group oversight

STRATEGY
The Board approves the Group’s strategy, incorporating segmental strategy, and budgets. Reunert’s Exco is mandated to oversee the formulation and implementation of the Group and segmental strategy. The Exco further monitors and addresses significant developments in and outside the Group to the extent that it is likely to impact Reunert’s businesses.
SIGNIFICANT MATTERS
The Board approves significant matters, including major acquisitions and disposals. The Exco evaluates operations, mergers and acquisitions activity, Human Resources, governance matters and other Group-wide issues.
PERFORMANCE
The Group Chief Executive Officer (Group CEO), Group Chief Financial Officer (Group CFO), and Segment CEOs evaluate segment performance using a variety of metrics, including designated key performance indicators. The Board receives and reviews operational performance reports.
DELEGATION OF AUTHORITY FRAMEWORK
The Board of Directors (Board) sets the Delegation of Authority Framework and delegates responsibility to executive management to oversee the effective management of its business units.
OPERATIONAL EXECUTION
The business units within segments execute operational plans based on their unique business unit strategies. Each business unit is responsible for its own sales and marketing, customer programmes, supply chain management, efficiency enhancements, and product and service innovations. Each business unit is also accountable for regulatory compliance and HR management.