| Sustainability indices |
| JSE SRI Index |
The JSE SRI Index identifies the criteria that companies
must meet in order to show that they have integrated triple
bottom line practices across their activities. ABIL has been
included in the Index for the past four consecutive years and
is classified as a low impact organisation as a result of the
nature of the
business operations. |
| |
| Dow Jones Sustainability World Index |
The Dow Jones Sustainability World Index was launched in
1999 to track the financial performance of the leading
sustainability-driven companies worldwide, in an effort to
provide reliable and objective benchmarks for asset
managers to manage sustainability portfolios. ABIL was
included in the index for the first time in 2006, but did not
participate in the evaluations in 2007.
On the JSE SRI Index core criteria requirements, ABIL scored as follows: |
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 |
| |
| Our commitment to growing South Africa |
| Creating economic value for our society |
ABIL uses growth in economic profit as a primary measure
of performance, including the determination of the group's
short-term and long-term incentive pools. Economic profit is
calculated by ABIL in a simplified formula: Headline earnings
– cost of equity. The "growth in economic profit" measure
reflects the efficiency of earnings by combining the growth
in reported earnings, with changes in the equity of the
business. ABIL estimates that its cost of equity for the 2007 financial year was 15% and hence the economic profit for
the year was R1 004 million, a growth of 24% against the
R808 million for 2006.
The group generated R3,3 billion in total value added during
2007, from which major stakeholders benefited in varying
proportions as indicated in the table below. Shareholders
were the main beneficiaries, followed by government
(through taxes) and employees. |
| |
| Value added statement |
| R million |
|
2007 |
2006 |
2005 |
2004 |
2003 |
2002 |
|
| Value added |
|
|
|
|
|
|
|
|
| Total revenue |
|
4 547 |
3 844 |
3 383 |
3 074 |
2 866 |
2 565 |
|
| Charge for bad and doubtful advances |
|
(823) |
(606) |
(488) |
(484) |
(445) |
(553) |
|
| Risk adjusted revenue |
|
3 724 |
3 238 |
2 895 |
2 590 |
2 421 |
2 012 |
|
| Other interest income |
|
170 |
113 |
156 |
118 |
143 |
83 |
|
| Interest expense |
|
(636) |
(465) |
(492) |
(453) |
(464) |
(389) |
|
| Profit on sale of CVF* and other capital items |
|
0 |
37 |
0 |
0 |
0 |
0 |
|
| Share of associate company’s income |
|
0 |
0 |
1 |
1 |
2 |
7 |
|
| Total value added |
|
3 258 |
2 923 |
2 560 |
2 256 |
2 102 |
1 713 |
|
| Value allocated |
|
|
|
|
|
|
|
|
| Employees |
|
525 |
543 |
418 |
382 |
401 |
327 |
|
| Agents for sales commission |
|
76 |
80 |
113 |
123 |
122 |
118 |
|
| Suppliers of various services |
|
445 |
382 |
367 |
372 |
439 |
435 |
|
| Provide ordinary shareholders with cash dividends |
|
1 070 |
897 |
1 107 |
788 |
206 |
123 |
|
| Provide preference shareholders with cash dividends |
|
41 |
36 |
8 |
0 |
0 |
0 |
|
| Government (direct taxes, STC, VAT and RSC) |
|
782 |
716 |
676 |
531 |
389 |
262 |
|
| Retention for growth |
|
319 |
269 |
(129) |
60 |
545 |
439 |
|
| Depreciation |
|
45 |
43 |
53 |
69 |
74 |
58 |
|
| Deferred taxation |
|
10 |
(17) |
(10) |
24 |
10 |
5 |
|
| Outside shareholder interest |
|
0 |
0 |
0 |
(1) |
7 |
9 |
|
Profit for the year
(net of dividends paid) |
|
264 |
243 |
(172) |
(32) |
454 |
367 |
|
| |
|
|
|
|
|
|
|
|
| Total value allocated |
|
3 258 |
2 923 |
2 560 |
2 256 |
2 102 |
1 713 |
|
| *CVF: Commercial Vehicle Finance. |
|
| |
| Creating value through empowerment |
| In August 2002, at the NEDLAC Financial Sector Summit, the
financial sector committed itself to the development of a black
economic empowerment (BEE) charter. The financial sector
developed the Financial Sector Charter, a transformation
charter as contemplated in the Broad Based BEE legislation.
The principal of empowerment underlies a broad range of
initiatives meant to redress the imbalances in: |
| • |
Transformation of the workforce; |
| • |
Skills development; |
| • |
Access to finance and financial education; |
| • |
Equity ownership and control; |
| • |
Procurement and enterprise development; and |
| • |
Corporate social investment |
|
| |
| As a signatory to both the Financial Sector Charter (FSC) and
the Financial Summit Agreement, ABIL has committed itself to
meaningful empowerment of the previously disadvantaged.
ABIL has set about making a difference in each of the
dimensions mentioned above and our progress in this regard
is discussed below. |
| |
| Transformation of the workforce |
| |
| Highlights |
| • |
Black people at senior management level improved
from 17% to 25%. |
| • |
Black people at junior management level increased
from 30% to 67%. |
| • |
FSC target for women exceeded in all levels. |
| • |
R13,3 million spent on skills development
(2006: R12,5 million). |
|
| |
| Lowlights |
| • |
Black people at middle management level decreased from
33% to 28%. |
| • |
Black women representation has deteriorated at senior
and middle management levels. |
|
| |
| ABIL is an equal opportunity employer and through its
various policies and procedures ensures that there is no
discrimination in any form against any person. The group
has developed an employment equity policy, which has after
consultation with all stakeholders been approved and
implemented. |
