stefanutti stocks sustainability report 2016.pdf

yourBridging expectations

SUSTAINABILITYREPORT ’16

We have the pleasure in presenting the group’s sixth annual sustainability report.

The information was compiled by taking into account the Global Reporting Initiative Guidelines as well as material issues, relevant to the group’s South African operations.

Sustainability report

IntroductionThe group continues to make progress towards being regarded as a preferred employer in the construction sector. The key pillars of its success have been centred on the strong focus, among others, on a safe and healthy work environment, respect for human rights, a non-discriminatory environment, protection of human dignity, continued employee development and the right to freedom of association.

As part of the group’s strong continuous improvement culture its job matrix was reviewed and relevant adjustments were made to the jobs that were not properly aligned to the correct occupational levels. This new baseline will not be directly comparable to the previous years.

Staff complementAt the end of the year the group had a total staff complement of 10 476 employees excluding temporary employment service employees (labour broker employees). Of the total headcount, 2 493 employees were employed beyond the borders of South Africa and 7 983 locally. The group also employed 1 167 employees from temporary employment service providers.

The group’s staff numbers fluctuate due to specific project requirements, however, avoidable employee turnover for the year was 11,1% of the total headcount.

All operations

13 81210 476

13 765

RSA operations

10 2957 983

11 421

’16 ’15 ’14

TOTAL HEADCOUNT FOR ALL OPERATIONS VS RSA OPERATIONS

Roads, Pipelines and Mining Services

2 9312 442

2 957

Mechanical and Electrical

567732

1 100

Structures

4 2452 860

4 567

Building

2 5011 902

2 738

Corporate Services

5147

59

’16 ’15 ’14

TOTAL HEADCOUNT PER BUSINESS UNIT

TOTAL STAFF COMPLEMENT

1 167 Temporary employment services employees

2 493 Cross-border employees 7 983 RSA employees

1STEFANUTTI STOCKS SUSTAINABILITY REPORT 2016

Human capital

2 149

Eastern Cape88

289

Free State26

252

Gauteng391

1 819

KwaZulu-Natal140998

Limpopo21

388

Mpumalanga184

Northern Cape29

449

Western Cape56

330

North West24

350

Male Female

2 149

88289

26252

3911 819

140998

21388

184

29449

56330

24350

Male Female

3 481

Eastern Cape93

340

Free State16

167

Gauteng417

2 207

KwaZulu-Natal132

1 282

Limpopo14

365

Mpumalanga287

Northern Cape62

518

Western Cape

North West

115406

23370

Male Female

3 481

93340

16167

4172 207

1321 282

14365

287

62518

2 368

Eastern Cape61

265

Free State20

199

Gauteng509

3 491

KwaZulu-Natal140901

Limpopo74

972

Mpumalanga211

Northern Cape45

319

Western Cape

Other84

1 042

115406

23370

67653

HEADCOUNT BY REGION2016 2015 2014

STEFANUTTI STOCKS SUSTAINABILITY REPORT 20162

Sustainability report Human capital continued

157100

20 – 24 years181

567555

25 – 29 years701

817894

30 – 34 years952

678764

35 – 39 years788

614649

40 – 44 years677

483539

45 – 49 years518

444471

50 – 54 years522

460603

55+ years585

10

18 – 19 years1

’16 ’15 ’14

HEADCOUNT BY AGE GROUP (PERMANENT EMPLOYEES)



TOTAL EMPLOYEE TURNOVER BY TYPE: SOUTH AFRICAN OPERATIONS

2016terminations

2016% of total

turnover2015

terminations

2015% of total

turnover

Avoidable (resignations, dismissals due to misconduct) 890 15,9 1 171 17,3

Unavoidable (death, retirements, dismissals due to operational requirements and ill health) 933 16,7 954 14,1

End of contract 3 770 67,4 4 637 68,6

Total 5 593 6 762

Comparable information for 2014 is not available.

Termination percentages are calculated by using avoidable employee turnover as a percentage of the 2016 headcount.

AVOIDABLE EMPLOYEE TURNOVER: TERMINATIONS BY AGE GROUP

Age group2016

terminations2016

headcount

2016 avoidable employee turnover

% of headcount

18 to 19 4 25 16,0

20 to 24 64 555 11,5

25 to 29 214 1 431 14,9

30 to 34 204 1 678 12,1

35 to 39 159 1 294 12,2

40 to 44 96 1 014 9,5

45 to 49 61 727 8,4

50 to 54 38 615 6,1

55+ 50 644 7,7

Total 890 7 983 11,1

HUMAN CAPITAL BY APPOINTMENT TYPE, EMPLOYMENT TYPE AND GENDER: SOUTH AFRICA OPERATIONS

2016 % 2015 % 2014 %

Permanent employees 4 221 52,87 4 575 44,4 4 925 43,1

— Male 3 718 46,57 4 062 39,4 4 430 38,8

— Female 503 6,30 513 5,0 495 4,3

Contract employees 3 762 47,13 5 720 55,6 6 496 56,9

— Male 3 306 41,42 5 074 49,3 5 780 50,6

— Female 456 5,71 646 6,3 716 6,3

Total employees 7 983 100,00 10 295 100,0 11 421 100,0

Employment type Salaries 2 092 26,21 2 565 24,9 2 696 23,6

Hourly paid 5 891 73,79 7 730 75,1 8 725 76,4

Male 7 024 87,99 9 136 88,7 10 210 89,4

Salaries 1 616 20,24 2 021 19,6 2 141 18,7

Hourly paid 5 408 67,75 7 115 69,1 8 069 70,7

Female 959 12,01 1 159 11,3 1 211 10,6

Salaries 476 5,96 544 5,3 555 4,9

Hourly paid 483 6,05 615 6,0 656 5,7



AVOIDABLE EMPLOYEE TURNOVER: TERMINATIONS BY GENDER

Gender2016

terminations2016

headcount


% of headcount

Male 790 7 024 11,2

Female 100 959 10,4

Total 890 7 983 11,1

AVOIDABLE EMPLOYEE TURNOVER: TERMINATIONS BY REGION

Region2016

terminations2016

headcount


% of headcount

Eastern Cape 31 377 8,2

Free State 21 278 7,5

Gauteng 219 2 210 9,9

KwaZulu-Natal 149 1 138 13,1

Limpopo 49 409 11,9

Mpumalanga 222 2 333 9,5

Northern Cape 63 478 13,2

Western Cape 45 386 11,6

North West 91 374 24,3

Total 890 7 983 11,1

AVOIDABLE EMPLOYEE TURNOVER: TERMINATIONS BY RACIAL GROUP

Race2016

terminations2016

headcount


% of headcount

African 613 6 486 9,4

Coloured 57 254 22,4

Indian 26 148 17,5

White 194 1 095 17,7

Total 890 7 983 11,1

AVOIDABLE EMPLOYEE TURNOVER: TERMINATIONS BY OCCUPATIONAL LEVEL

Occupational level2016

terminations2016

headcount


% of headcount

Top management 1 28 3,6

Senior management 8 105 7,6

Professional 68 457 14,8

Skilled 231 1 576 14,6

Semi-skilled 290 3 269 8,9

Unskilled 292 2 548 11,5

Total 890 7 983 11,1



The new appointment percentages were calculated by using total new appointments as a percentage of the total 2016 headcount.

NEW APPOINTMENT % PER RACIAL GROUP

Race group2016 new

appointments2016

headcount2016 new

appointment %2015 new

appointments2015

headcount2015 new

appointment %

African 3 025 6 486 46,6 4 240 8 470 50,1

Coloured 138 254 54,3 114 258 44,2

Indian 25 148 16,9 41 176 23,3

White 150 1 095 13,7 335 1 391 24,1

Total 3 338 7 983 41,8 4 730 10 295 45,9


NEW APPOINTMENT % PER AGE GROUP

Age group2016 new

appointments2016

headcount2016 new


appointments2015

headcount2015 new

appointment %

18 to 20 28 25 112,0 7 6 116,7

20 to 25 410 555 73,8 626 617 101,5

25 to 30 832 1 431 58,1 1 204 1 847 65,2

30 to 35 749 1 678 44,6 1 077 2 169 49,7

35 to 40 538 1 294 41,6 647 1 668 38,8

40 to 45 332 1 014 32,7 516 1 323 39,0

45 to 50 191 727 26,3 288 947 30,4

50 to 55 136 615 22,1 171 758 22,6

55+ 122 644 18,9 194 960 20,2

Total 3 338 7 983 41,8 4 730 10 295 45,9


NEW APPOINTMENT % PER REGION

Region2016

headcount2016 new

appointment %2015

headcount2015 new

appointment %

Eastern Cape 377 42,4 433 55,0

Free State 278 85,2 183 76,5

Gauteng 2 210 28,3 2 624 33,7

KwaZulu-Natal 1 138 53,2 1 414 8,1

Limpopo 409 55,9 379 31,1

Mpumalanga 2 333 26,1 3 768 13,6

Northern Cape 478 57,7 580 73,8

Western Cape 386 61,6 521 60,7

North West 374 95,4 393 78,6

Total 7 983 41,8 10 295 45,9




NEW APPOINTMENT % PER GENDER

Gender2016 new

appointments2016

headcount2016 new


appointments2015

headcount2015 new

appointment %

Male 2 900 7 024 41,3 4 095 9 136 44,8

Female 438 959 45,7 635 1 159 54,8

Total 3 338 7 983 41,8 4 730 10 295 45,9


NEW APPOINTMENT % PER OCCUPATIONAL LEVEL

Occupational level2016 new

appointments2016

headcount2016 new


appointments2015

headcount2015 new

appointment %

Top management 0 28 0,0 7 105 6,7

Senior management 3 105 2,8 26 213 12,2

Professional 40 457 8,7 146 622 23,5

Skilled 325 1 576 20,6 844 2 879 29,3

Semi-skilled 1 154 3 269 35,3 1 307 3 104 42,1

Unskilled 1 816 2 548 71,3 2 400 3 372 711

Total 3 338 7 983 41,8 4 730 10 295 45,9


Group employee benefits, policies and proceduresThe group is fully committed to protecting its workforce through regulated employment policies and collective agreements reached at various bargaining councils. Protecting employees’ health and wellbeing is key to the group’s success and is achieved through the provision of risk benefits during their working careers as well as pension benefits at retirement. The group also recognises the need for additional death benefits such as funeral cover, children’s educational cover and repatriation benefits for the entire family. Furthermore employees and their immediate families are supported during traumatic life events by means of professional counselling and other support systems that have been put in place. For more information on employee wellness programmes refer to page 8.

The group does not have a defined benefit plan.

Permanent salaried employees › Retirement benefits

› Medical aid

› Death and disability cover

› Funeral cover

› Educational benefits

› Repatriation benefits

› Various support systems

› UIF

Permanent hourly paid employees › Retirement benefits

› Death and disability cover

› Funeral cover

› Educational benefits

› Repatriation benefits

› Various support systems

› UIF

Temporary employees › Accidental death and disability cover

› Funeral cover

› UIF



As such, the group actively participates in and engages with the relevant industry associations. The group, through its business units, is a member of the following industry associations:

› South African Forum of Civil Engineering Contractors (SAFCEC)

› Master Builders Association of South Africa (MBA) › Steel and Engineering Industries Federation of South Africa (SEIFSA)

In addition to the normal participation and membership fees, the group provides additional funding to SAFCEC through the financing of specific projects, as well as providing human resources, allowing it to actively influence and enhance the future of the industry.

Unions to which group employees are members are as follows:

› Association of Mineworkers and Construction Union (AMCU)

› Building Construction Allied Workers Union (BCAWU)

› El Shadaai Workers Union of South Africa (ESWUSA)

› National Union of Metal Workers of South Africa (NUMSA)

› National Union of Mineworkers (NUM)

All group hourly paid employees fall under industry bodies or collective agreements. The relevant bargaining councils include:

› Bargaining Council for the Civil Engineering Industry (BCCEI)

› Building Industry Bargaining Council (BIBC)

› Metal and Engineering Industries Bargaining Council (MEIBC)

Employee wellnessThe group has partnered with one of the country’s specialists in the provision of employee health and wellbeing programmes which include services such as:

› Counselling and consultation (face-to-face or telephonic counselling)

› Trauma management services including on-site debriefing

› Appropriate referral and managerial services

› Family care advice and resources

› Legal advice and referral services

› Financial advice and guidance

› Practical assistance and resources

The majority of interventions comprised relationship, legal and financial issues which were supported through face-to-face or telephonic counselling. Group interventions, specifically for traumatic incidents were also arranged in two business units.

While the engagement rate of 3,2% remains lower than the industry average of 15,3%, it is likely to increase as the programme becomes entrenched and word-of-mouth referrals increase the support solicited by employees.

All employees have access to the offerings presented by the service provider albeit through differing processes.

Industry associationsStefanutti Stocks fully supports the fundamental right to freedom of association and collective bargaining as enshrined not only in the South African Bill of Rights but also the International Labour Organization conventions.

The conditions of employment are regulated by the requirements as set out in the relevant legislation which includes the Basic Conditions of Employment Act and the Labour Relations Act, as well as industry or plant-level agreements where applicable.

In the case of salaried employees, there are well-defined Group Policies and Procedures which are reviewed annually or more regularly in the event that there have been legislative changes. The policies and procedures are introduced to all employees during their induction process at the time of employment and are available in both hard and soft copy, the latter via the company’s online electronic portal or through the relevant human resources departments.

Labour practicesFour cases relating to unfair discrimination were registered and the required disciplinary enquiries were held and appropriate sanctions were issued to the parties involved.

Human rightsThe Bill of Rights as enshrined in the Constitution of South Africa forms the basis of the group’s value system and no violations in any form or description are or will be tolerated. Again, there have been no reports of any violations during the year under review. Any violations would be dealt with in terms of the code of conduct and the disciplinary code.

No human rights reviews or assessments have been conducted.



Our approach and policyStefanutti Stocks is committed to the process of broad- based black economic empowerment (B-BBEE) and its implementation within its operations. The broad-based nature of empowerment in South Africa presents an effective solution to addressing historical economic and social inequalities and to this end, the group supports the B-BBEE Act and the Codes of Good Practice for B-BBEE.

Stefanutti Stocks is actively engaged with the Construction Sector Charter Council via industry bodies to align the Construction Sector Charter Codes (Construction Codes) to the Amended Codes of Good Practice gazetted by the DTI on 11 October 2013. The methodology of future verification is uncertain due to the Construction Codes having been repealed. While this does not detract from the objectives of transformation it has made the setting of goals and targets difficult.

Responsibility and accountabilityThe managing director of each business unit is accountable for driving transformation and B-BBEE compliance. Targets are set and agreed upon for each business unit and each element of the B-BBEE scorecard is measured and reported on to ensure compliance. These reports are presented for review and serve as the basis for improvement plans to maximise compliance during the annual verification process.

The Group Transformation Committee has been mandated with the task of ensuring that transformation objectives are communicated and implemented throughout the group.

We achieved a Level 3 Contributor status at financial year-end, compared to the Level 2 status in the previous year. The change in status is due to a reduction in employment equity as a result of the realignment of the group’s job matrix to the correct occupational levels as well as a slight reduction in enterprise development.

Included on page 13 is a summary of the group’s latest B-BBEE scorecard performance.

OwnershipThe group has made a strategic decision to pursue and maintain the targets in line with the Construction Codes of Good Practice. During the 2016 verification process, the group reflected 30,02% black ownership and 6,51% black woman ownership.

Compliance with this element of the scorecard improved to 97,2% (2015: 96,0%).

Management controlThe group is strategically led by a board of directors, the composition of which is in line with good corporate governance and adheres to the recommendations of King III. 50% of the exercisable voting rights are in the hands of black people of whom 30% are black women and 18% of top executive management are black people.

Compliance with this element remained at 61,9%.

Employment equityStefanutti Stocks continuously strives towards an equitable workplace.

The Department of Labour has approved the new employment equity (EE) plans for each business unit in line with the group’s new job matrix. Each business unit managing director (MD) and EE committee are accountable to ensure that the EE plans are achieved. A deviation report has been implemented to record any recruitment process that is not in line with the revised targets and strategy.

The Stefanutti Stocks recruitment and selection process reflects fair and equitable employment practices, irrespective of race, gender, disability or any other potential discriminatory factor. The final selection of new employees is based on an assessment of the candidate’s skills, competencies, potential, merit and experience for a specific role.

The group’s EE profile as at the end of February 2016 is indicated on pages 11 and 12.

As part of the group’s strong continuous improvement culture the group’s job matrix was reviewed and relevant adjustments were made to the jobs that were not properly aligned to the correct occupational levels. The new baseline would not be comparable to the previous years and as such, we have only included the 2016 employment equity tables in this report.

Compliance with this element of the scorecard is 28,6% (2015: 45,3%).

Skills developmentStefanutti Stocks is dedicated to empowering employees and encouraging advancement by providing a system of training and development that is ongoing and structured to purpose. The skills development objective of each business unit is to prepare and empower individuals to participate safely and meaningfully in the workplace. The group believes that skills development is a critical contributor to the success of its EE initiatives.

The group requires business units to ensure that black employees are the primary beneficiaries of many of the programmes offered by Stefanutti Stocks.

Stefanutti Stocks has two SETA-accredited training centres providing registered skills programmes to the business units. The training centres develop and register new skills programmes as required by the business units while updating and optimising existing skills programmes to ensure that they remain relevant.


Transformation

During the 2016 B-BBEE verification period, the group improved its score to 82,3% (2015: 75%) and increased the verifiable training spend to R59 million (2015: R27 million).

Preferential procurementThe Stefanutti Stocks preferential procurement objective is to facilitate access to Stefanutti Stocks’s procurement activities to enable B-BBEE suppliers to participate in the mainstream of the economy. In the implementation of this objective the group encourages current non-compliant B-BBEE suppliers to become B-BBEE compliant and adopt a supportive culture when engaging and/or doing business with black empowered, exempted micro enterprises (EME) or qualifying small enterprises (QSE) suppliers.

The group believes that the role of small, medium and micro enterprises (SMMEs) is crucial to job creation and economic growth in South Africa.

In pursuit of the group’s preferential procurement objectives, it actively seeks new vendors and gives preference to B-BBEE-compliant vendors who are able to guarantee performance, quality and safety standards while delivering competitive prices.

The Stefanutti Stocks group would prefer to transact with companies who are level six contributors or better.

Enterprise development (ED)The strategy for the group is to foster strong working relationships with competent black-owned companies and to develop them in a tangible meaningful way to ensure that these companies become sustainable and increase their capacity to take on larger and more complex projects.

The group requires that a robust ED programme is implemented and managed by the individual business units. The business unit management teams identify and select the number and types of ED beneficiaries that would be most suitable to fit in with their current operations.

Each beneficiary has a contact person within the division or business unit (sponsor) who is responsible for the development of the entity. This person promotes the ED beneficiary within Stefanutti Stocks and identifies potential synergies on tenders and existing projects. The sponsor assists with any corporate issues that helps both the strategic partner as well as ensuring that development is taking place.

During the 2016 B-BBEE verification process, the group’s contribution towards these programmes increased during the year although the overall score dropped slightly to 84,3% (2015 85,0%).

Socio-economic development (SED)Stefanutti Stocks focuses on SED initiatives that address education in the communities surrounding its operations, with an emphasis on initiatives that promote mathematics and science. The SED budget is managed at group level with the business units providing direction on the choice of initiatives that drive the group SED strategy. The four main SED beneficiaries for the 2016 year were the Jirah Academy, the Love Trust , Madibatlou School and Go for Gold. All four of these beneficiaries are focused on education with Jirah Academy and Go for Gold focusing on mathematics- and science-related subjects.

During the 2016 B-BBEE verification process, the group maintained its 100% score towards the SED element on the B-BBEE scorecard.

SOCIO-ECONOMIC DEVELOPMENT CONTRIBUTIONS: 1 MARCH 2015 – 29 FEBRUARY 2016

Name Category R’000

Madibatlou School Education 256

The Love Trust Education 1 500

Jirah Projects Education 608

Edu Acre Conference Education 48

Go4Gold Education 134

Disabled Learnership Education 48

Lethabong Old Age Home Community 100

Singakwenze — 8 Mile Education 10

Inkosi Community Projects Community 18

Total 2 722

REMUNERATION FOR MEN AND WOMEN PER OCCUPATIONAL LEVEL

Occupational level 2016 2015 2014

Senior management 1:0,70 1:0,81 1:0,86

Middle management 1:0,80 1:0,78 1:0,74

EMPLOYEES DEEMED AS PREVIOUSLY DISADVANTAGED INDIVIDUALS (PDIs)

Race group 2016 2015 2014

African 6 486 8 470 9 414

Coloured 254 258 263

Indian 148 176 181

White female * 215 268 298

7 103 9 172 10 156

Total employees 7 983 10 295 11 421

Employees deemed PDIs % 88,9 89,1 88,9

* This table is governed by the Employment Equity Act.


Sustainability report Transformation continued

The group is only reporting the current year’s EE profile as job titles were reclassified in different occupational levels during the year and are not comparable to the information presented for February 2015.

SENIOR MANAGEMENT

African female Coloured female Indian female White female African male Coloured male Indian male White male Foreign female Foreign male

’16

1014512

8506

TOP MANAGEMENT


’16

0000400

2310

PROFESSIONAL


’16

646

27562223

2961

16

SKILLED


’16

968

1286

76711355

3972

40



UNSKILLED


’16

351610

2 11534

4140

23

SEMI-SKILLED


’16

202321795

2 757332634

172

PERMANENT


’16

2343835

1922 731

10087

7214

79

CONTRACT


’16

422122

202 973

10323

1280

79



Company Name

Registration Number

VAT Number

Address

BBBEE Status Level Level 3

Level Qualification %

30.02% Black Ownership; 6.51% Black Women Ownership 1 100 Points 135%

Yes 2 85 but < 100 125%

110% 3 75 but < 85 110%

Issue Date 29/10/2015 4 65 but < 75 100%

Expiry Date 28/10/2016 5 55 but < 65 80%

Certificate Number ELC5870GENBBCON 6 45 but < 55 60%

Version Final 7 40 but < 45 50%

Applicable Scorecard Construction - Generic Contractor 8 30 but < 40 10%

Applicable BBBEE Codes Construction Sector Codes Gazetted on 5 June 2009 0%

EmpowerLogic (Pty) Ltd

Reg. No. : 1995/000523/07

BBBEE Verification Agency

Per E Ackroyd CA(SA)

Member - Verification Committee

SANAS Accredited

BVA018

cnr Zuurfontein Ave and Oranje River Drive

Kempton Park

BEE Status

Enquiries

Tel:

EO: 24.3 points; MC: 6.19 points; EE: 2.86 points; SD: 12.34

points; PP: 19.69 points; ED: 12.65 points; SED: 5 pointsElement Points Obtained

Black Ownership

Value Adding Vendor

BEE Procurement Recognition

BEE Procurement

Recognition Levels

Fax:

086 505 7284

[email protected]

www.empowerlogic.co.za

This certificate is the result of an independent and impartial verification of the BBBEE status of the measured entity measured against the Codes of

Good Practice on Broad Based Black Economic Empowerment. the objective of our verification is to verify the validity and accuracy of the BBBEE

status represented by the measured entity. EmpowerLogic is not responsible for ensuring completeness of information provided to support the BBBEE

status. This certificate must be validated at www.bbbeescorecards.co.za/search/new before reliance is placed thereon. EmpowerLogic does not take

responsibility for certificates that have not been validated.

Stefanutti Stocks (Pty) Ltd

Level 3 Contributor

086 111 4003

Non-Compliant <30

1619

Broad Based Black Economic Empowerment Verification Certificate

A Consolidated Verification Certificate Issued to

Stefanutti Stocks (Pty) Ltd

Measured Entity (Full List of Entities Listed on Page 2 of Certificate)

2003/022221/07

4570254245

Protec Park



The Love Trust — a journey of hope with Stefanutti Stocks

Initiative overviewThe Love Trust is a non-profit organisation that believes in a values-driven, world-class education as the key to a stronger South Africa. The trust has partnered with communities to build innovative models, with the aim of delivering education to vulnerable communities and has developed interventions to leverage a change in education.

The journey begins with early childhood development (ECD) where the Love Trust provides accredited training in ECD to 455 teachers and principals of 14 ECD centres across the country. The second leg of the journey involves supporting 23 identified ECD centres, where it partners with principals to improve on the standard of education they can provide.

The Love Trust’s journey continues, to the establishment of schools and currently includes two primary schools — the Tembisa-based Nokuphila School and the Hillbrow Independent. These two primary schools afford vulnerable children from the surrounding communities access to the very best in education.

The schools also provide nutritious meals, safe and reliable transport and a variety of extra-curricular activities and after-care facilities.

The schools are overseen by Christ Church Preparatory School and College, which is an established and reputable independent school in nearby Midrand.

The Nokuphila School — meaning ‘Place of Life’ — was opened in Tembisa in January 2010, initially to 45 preschoolers from the township of Tembisa. By January 2016, as many as 300 children had joined the school, ranging from Grade 000 to Grade 5.

In response to the great need in the areas of Tembisa and Ivory Park, the Love Trust raised funds to procure additional land and is currently building a third school, the new Nokuphila School, in Tembisa. The R50 million school will be funded entirely by contributions from a number of corporates and other benefactors. The Love Trust raises additional funds by combining their efforts with those of corporates as B-BBEE partners — resulting in three B-BBEE transactions to date, which are financed by RMB Corvest.

The new Nokuphila School forms part of Love Trust’s vision of growing the existing school to cater for learners from preschool through to Grade 12. The school will accommodate up to 640 children who will be educated by 70 teachers in 40 classrooms.

The sod-turning event took place on the 31 May 2015 and current plans will see the school open in the second half of 2016.

Stefanutti Stocks’s involvementOur support of the Love Trust dates back to May 2015, through the provision of services including site clearance, bulk earthworks, roadworks, storm water, sewerage and water pipeline installations to the new Nokhuphila School site.

We have also contributed plant and personnel to this worthy cause, which has saved the trust R1,5 million.

The first phase of R15 million has been funded entirely by contributions from a number of corporates and other benefactors. The remaining portion still needs to be funded.

Nokuphila school children developing fine motor skills.


Transformation case studies

Dedicated Stefanutti Stocks team. Foundation forming and positioning.

Nokuphila school site works and setting out.

Team motivation. Still smiling after a hard day’s work. Proposed look for the new Nokuphila school.



Axsys Projects — growing confidence and capabilities

Enterprise overviewFounded in October 2011, construction company Axsys Projects is part of the Structures Strategic Partner Initiative, which is the business unit’s enterprise development programme.

Axsys is wholly black women owned, has a Level 1 B-BBEE rating and is currently registered with the Construction Industry Development Board (CIDB) as a Grade 6 contractor.

Currently employing 56 people, the company has grown its service offering and capabilities since its inception and is striving for a CIDB Grade 9 by 2017.

Axsys Projects has a vision — to become a prominent South African black-owned construction company. The company’s financial performance in recent years supports their vision — the company recorded turnover of R34 million in 2014, followed by R104 million in 2015 and R184 million in 2016.

During 2015, Axsys Projects worked on four construction contracts across the country, including two joint operations with our Structures Business Unit, namely: the Maydon Wharf project for Transnet in a joint operation with the Marine Division and the Zuikerbosch Sedimentation Plant in a joint operation with the Civils Division. The Maydon Wharf contract commenced in 2014 with Axsys Projects as a 26% joint operation partner — thereby stepping out of the role of subcontractor and contributing its own resources to the project.

Other than its work with Stefanutti Stocks, Axsys Projects was engaged in two additional projects during 2015 — completing a R31 million roads project in Postmasburg and progressing with a R120 million housing project for the Department of Human Settlements in the Eastern Cape, which commenced in July 2015.

In early 2016, Axsys Projects was awarded an additional project — the construction of the Elandsfontein Phosphate Mine Office Building and Wellness Centre.

While Axsys Projects focuses on South African projects valued around R40 million, its Chief Financial Officer, Mahen Naidu believes his company’s willingness to undertake larger projects stems from a growing confidence and industry insight, gained within Structures’ ED programme.

Stefanutti Stocks’s involvement

Through our ED programme, our goal is to ensure that Axsys Projects becomes self sufficient and sustainable. In addition to financial support such as loans or construction guarantees and skills development, the group gives Axsys Projects access to knowledge and experience.

Structures facilitated finance, which enabled Axsys Projects to acquire its own equipment and vehicles, improving its capacity and contribution to the joint operation partnership and helped Axsys Projects assume the main contractor role on projects. Its has benefited from skills transfer, through mentorship and our industry training programmes, such as the Site Leadership Development Programme for management and the Solid Foundations skills training for site-based construction workers.

We also assist Axsys Projects through our system implementation and risk assessments capabilities, as well as by assigning key personnel to assist on Axsys building projects.

Standing on the fender shatter — Berth 14.



We add value through our guidance in planning and costing projects and help in building a procurement database and in providing their employees with the relevant training.

The Axsys Projects brand also benefits from our help in developing their corporate identity, company profile and generating marketing material. Being one of our joint operation partners has given Axsys Projects the opportunity to gain broad industry knowledge and expertise.

Labourer scabbling the top of the fender pour in preparation for the cope capping beam.

Preparing the cope capping beam. Axsys Projects team.

Gas axing of the existing sheet pile wall and the removal of the old existing cope.



The Limpopo Department of Public Works, Roads and Infrastructure public-private partnershipOn 25 February 2016 a construction skills development programme that formed part of a training partnership between the Limpopo Department of Public Works, Roads and Infrastructure (LDPWRI) and Stefanutti Stocks, was celebrated at a gala event held at the Meropa Casino and Entertainment World in Polokwane.

The partnership was developed to enhance the pool of construction skills within the province, with the specific objective of improving the volumes and standards of professionals, skilled workers and medium-sized construction enterprises within the built environment.

The partnership consisted of three levels of engagement or programmes, including:

› internships for graduates and undergraduates to obtain practical workplace experience;

› workplace experience for bricklaying apprenticeships;

› and a Contractor Development Programme

Internships for graduates and undergraduates to obtain practical workplace experienceIn 2014, 12 employees from the LDPWRI were seconded to Stefanutti Stocks sites to gain up to 12 months’ practical experience and complete their qualifications. Those who attended, held or were studying towards a N6 National Diploma in infrastructure vocations such as electrical, civil and building, or a BSc in mechanical engineering.

Seven of the 12 interns began their practical training at the Kusile Power Station Project in May 2014 with Civils, as well as our Roads and Earthworks Divisions. One intern, the mechanical engineer was unfortunately not in a position to complete his practical training due to contractual complications

with his employer and four others undertook their internships at SASOL in Secunda. The bulk of the interns completed their internships in April 2015.

We employed two of the interns as noted below, while the others returned to the LDPWRI with valuable industry exposure and a new set of practical skills. Tshimangadzo (Tshimangi) Kutama, is a 26-year-old female from Limpopo Province. In 2012, she completed the theoretical requirements of the N6 National Diploma in Civil Engineering at the Tshwane South College. Soon after, she was placed in the LDPWRI Student Internship Programme for a one-year practical training contract. Tshimangi started her internship at the Kusile Power Station in May 2014 and was employed full-time as a project site engineer by Roads and Earthworks in April 2015. Mologadi (Shadi) Mannya, is another 26-year-old female from Limpopo Province. She was a LDPWRI bursar and completed the theoretical requirements of her National Diploma in Building Science at the University of Johannesburg (UJ) in 2013. She is currently studying a Bachelor of Technology in Quantity Surveying at the Tshwane University of Technology. She began her internship in May 2014 at the Kusile Power Station and was permanently employed by our Roads and Earthworks Division in April 2015 as a Junior Quantity Surveyor.

Workplace experience for brick laying apprenticesOn 17 August 2015 the Apprenticeship Development Programme that forms part of the skills development partnership with LDPWRI was launched at the site office of the Stefanutti Stocks Basil Read joint operation at Kusile Power Station.

The five apprentices at the Kusile Power Station will undergo on-site, practical training for the duration of their placement as well as theoretical training at the M2 Engineering Academy, which is a CETA-accredited training provider.

The on-site training for apprentices consists of a number of different modules, which must be completed and recorded in a logbook prepared by M2 Engineering, to track the candidates progress and to provide an easy reference on the modules for which they have been found competent.

The programme’s modules cover a wide range of building-specific topics, such as interpreting basic drawings, safety, mixes and mixing of mortar, building of arches, manholes and staircases. Apprentices can progress through the modules in any sequence, as long as the logbook reflects that

Bricklaying apprentice Alusani Nenlakong with mentor July Sitshebang.



all modules have been covered, understood and completed to the satisfaction of the mentor.

The four mentors involved in the Apprenticeship Development Programme, are building foremen at the Kusile Power Station. The mentors offer the apprentices an opportunity to benefit from their combined fifty years of experience.

The programme aims to reach completion during October 2016. The five nominated participants are required to have taken and passed the artisan trade test by this time and in doing so, will be awarded with a Construction Education and Training Authority (CETA) accredited qualification in bricklaying.

Contractor Development ProgrammeThis programme is uniquely designed to develop Limpopo-based, black-owned enterprises and help them gain experience, expertise and skills in tendering, pricing, site administration and operations, in order to acquire a higher CIDB grading. The contractors were all drawn from the province of Limpopo and had to comply with statutory requirements of being a legal entity, as well as other conditions such as company size and black ownership. The programme was directed at CIDB grade 6 and 7s within the disciplines of Civil Engineering and General Building.

To ensure that a proper grounding was provided to the contractors, a lecture programme was developed, covering the most critical of skills and knowledge that an entrepreneur requires in order to firstly be compliant with regards to construction regulations and secondly, to allow the business to grow and develop. The lectures took place in blocks on a monthly basis over two days and included a lecture (theoretical session) and a report back session on assignments which each contractor had to complete. To ensure and maintain a high standard specific criteria were applied in determining a pass mark. Each assignment completed by the contractor, coupled with the owners’ attendance, provided an overall score and on conclusion, nine of the ten contractors completed the programme above the required pass mark.

Interactive lectures were presented by subject matter experts which provided the contractors with the opportunity to network and increase their professional contacts. A mentor from Stefanutti

Stocks’s senior management was also assigned to each contractor for the duration of the programme, assisting them to come to grips with the theory of each module, while providing guidance in implementing some of the learning points.

This programme not only complied with the CIDB’s standards and the Construction Charters requirements for enterprise development, but included additional aspects to provide each of the companies owners with deeper insights into the characteristics required for a successful contractor.

The programme was independently reviewed by the CIDB and given a score of 93%, placing it as one of the best in South Africa.

The 10 participating contractors (of which seven are majority black-woman owned) that successfully completed the programme, include Khazamula Civil and Construction, Makasana Construction CC, Malumash Enterprises CC, Mashrik Social Development, Mmagongwana General Construction, Nakiseni Business Enterprise, Nare Molebowe General Enterprises, PA Letsaola Construction Enterprises, Xiluvelweni Trading Enterprise and Zookie Construction and Projects. Each of these companies was awarded a certificate of achievement by Mr AJD Ndou, the MEC of Limpopo Public Works, Roads and Infrastructure.

Mr AJD Ndou attended the Contractor Development Programme closing ceremony by saying “We celebrate this partnership, which showed and set an example for other private institutions, to come forth and work with government with a common purpose of developing our communities. We appreciate the financial, time and technical expertise injected by Stefanutti Stocks into this partnership. The success of this programme is a testament to the commitment by the executive management of the company.”

Kick off meeting with bricklaying apprentices, mentors and Stefanutti Stocks representatives.



Stefanutti Stocks acknowledges that a talented and diverse workforce is key to the long-term sustainability of the business. The success of the operations is dependent on attracting, developing and retaining a capable and motivated workforce. The group focuses on employee development as an important employee retention strategy as well as improving the knowledge, skills and experience of its employees to achieve the group’s strategic objectives.

The group invested over R22 million (2015: R30 million) during a period of challenging trading conditions to ensure meaningful development of its employees. This sum excludes the salaries of employees while on training.

The group’s skills development goals for 2017 are as follows:

› Continuous review and development of existing programmes.

› Setting new targets and goals in line with the revised B-BBEE scorecard.

› Collaboration between business units to increase value and participation of existing programmes.

› Development and implementation of an e-learning platform.

› Reinforcement of the necessity of professional registration.

› Registration of in-house programmes for continued professional development.

› Development of in-house programmes for new occupational qualifications.

› Development of a group-wide mentorship programme.

Training centresThe group operates two training centres that are SETA accredited. One is accredited with the Mining Qualifications Authority and the other training centre with the Construction Education and Training Authority.

Training programmes

BursariesThe Stefanutti Stocks’s bursary scheme provides financial assistance to students and employees enabling them to pursue further development at a recognised educational institution.

The group offers bursaries in the following fields of study:

› BSc Building, Civil Engineering and Quantity Surveying

› BTech Building, Civil Engineering and Quantity Surveying

› National Diploma Building, Civil Engineering and Quantity Surveying

› National Diploma Human Resources

During the financial year the group spent over R3,5 million on the bursary scheme benefiting 108 students and employees, 56% of whom were black.

Graduate AcademyDue to challenging trading conditions the graduate programme was temporally suspended for the 2016 financial year.

LearnershipsStefanutti Stocks offers learnership opportunities in the following fields:

NQF 2 National Certificate in Construction

NQF 3 National Certificate in Safety

NQF 4 National Certificate in Supervision of Civil Engineering Processes

NQF 5 National Diploma in Management of Civil Engineering Processes

NQF 5 National Diploma in Health and Safety Management

Stefanutti Stocks spent R2,6 million on learnership programmes benefiting 105 employees, 17 of whom were female and 73 were black.

TRAINING SPEND (%)

15 Health and safety 1 Ethics (incl. anti-competitive

behaviour) * 1 Diversity and cultural awareness *

programmes 16 Bursaries 11 Learnerships 6 Artisans 37 Skills programmes 1 Foreman development programmes * 1 SLDP * 11 Other

* Rounded up to 1%.


Skills development and training

Solid FoundationsSolid Foundations is an in-house skills programme designed as an introductory programme for hourly paid employees in the construction sector. It is registered as a skills programme with the SETA and includes the following four unit standards:

› Personal protective equipment

› Environmental awareness

› Hand tools

› Safety awareness

The Solid Foundations learning programme has celebrated its fourth year since inception and 1 672 individuals have been trained since 2012. 293 permanently hourly paid employees have attended the programme and 82 employees attended the programme in 2016.

Site Leadership Development Programme (SLDP)The SLDP is an in-house programme designed to meet the needs of new graduates and help fast track them in the construction business. The programme consists of 25 modules that employees attend over three years. The SLDP is registered for Continuous Professional Development points and consists of the following subjects:

Year 1

Human resources; Quality; Safety; Concrete; Management; Site administration; Project execution.

Year 2

Human Resources; Health; IT; Formwork design; Plant management; Communication; Presentation skills; Quantity surveying.

Year 3

Project start up and close off; Leadership; Marketing; Environmental; Training; Planning; Tendering; Quantity surveying.

The SLDP has celebrated its seventh year since inception and has seen 510 delegates trained, with 267 training interventions and 3 720 individual attendances.

At the beginning of 2016, 70 employees graduated from the programme, of whom three are female and 26 are black. Currently, 54 employees are enrolled on the programme, of whom 9 are female and 32 are black.

Operator trainingTo date the RPM Training Centre has trained more than 500 plant operators utilising simulators. More than 50 construction plant operators have been trained in Swaziland and more than 30 operators have been trained in Lesotho using the simulators. Feedback from employees has been positive with a noted improvement in employees’ skills.

ApprenticeshipsThe RPM Business Unit has a total of 22 apprentices of whom six are new apprentices enrolled on fixed term employment agreements.

› Three of the new apprentices commenced phase 1 training towards qualifying as earthmoving equipment mechanics. They completed their theoretical requirements and have commenced with their workplace experience in the Stefanutti Stocks workshop.

› One of the new apprentices joined as a phase 3 entrant and is currently working at the Stefanutti Stocks workshop.

› Two of the new apprentices were enrolled as auto electrical apprentices and have been sent to an external training provider, as Stefanutti Stocks does not provide such in-house training.

The M&E Business Unit currently has 13 apprentices working towards qualification in the following fields:

› Electrical

› Instrumentation

› Diesel mechanic

› Welding

Of the 35 apprentices within the group, three are female and 27 are black. Stefanutti Stocks spent R1,3 million on apprenticeships in the year under review.

Total training expenditure and numbers

THE TOTAL NUMBER OF EMPLOYEES WHO RECEIVED TRAINING: BY GENDER AND RACE

MALE FEMALE TOTAL

Total Black Disabled Total Black Disabled

Total no. of employees 3 639 3 057 10 415 332 1 4 054

Training expenditure (R) 18 450 262 13 648 685 24 020 4 152 018 3 544 460 324 22 602 280

No. of interventions 5 109 3 983 9 569 412 1 5 678

No. of training days 24 354 17 683 9 11 861 7 879 1 36 215

THE TOTAL NUMBER OF EMPLOYEES WHO RECEIVED TRAINING: BY EMPLOYMENT TYPE

STAFF HOURLY PAID TOTAL

Salary employees

Permanent employees

Limited duration contract

employees

Total no. of employees 1 441 1 181 1 432 4 054

Training expenditure (R) 10 938 428 6 215 400 5 448 452 22 602 280

No. of interventions 2 169 1 961 1 548 5 678

No. of training days 24 846 5 023 6 346 36 215


Skills development and training continued

Delmas community training provides employment to localsA training partnership was entered into with Universal Coal’s Kangala Colliery in Delmas and RPM’s Mining Services Division committing to the training of 100 local community members. The purpose of the training was to issue those who qualified with certificates of competency for articulated dump trucks (ADT) or excavators.

The objective of the training initiative was to empower 100 candidates with qualifications in order to create opportunities for them to become more employable. While not a requirement of the partnership, there was the potential to employ successful candidates at the mine, which the training partners hoped to achieve.

Advertisements for the operator training were placed through the Victor Khanya Municipality, receiving over 1 000 respondents.

To qualify for pre-selection, respondents were tested on English NQF Level 1, which is the Grade 9 equivalent. 100 candidates were then selected for either ADT or excavator training.

The training took place on a rotational basis and every two weeks an additional six successful candidates underwent the mandatory Kangala Mine medical testing, before reporting to our Kangala-based training facility.

Candidates entered into a learning agreement and after Dover/Vienna testing, they attended an on-site induction, after which a week of theoretical instruction commenced. On completing the theory aspect, candidates received practical training on the machines for a further week. Successful candidates were issued with their certificates of competency. At the end of February 2016, a total of 92 candidates successfully completed their training from the initial 100 participants with women comprising 25% of the overall candidates.

Sphiwe Thokozani Mtshweni was motivated by a desire for formal training in order to progress his career and immediately responded to the advertisement for operator training at Kangala Mine. The emphasis on safety awareness and accident prevention during his training prepared him for the working environment on a busy mining site. Sphiwe described the day he received his certificate of competency as a milestone that changed his outlook on life. He feels he has taken a definite step forward and has set himself a long-term goal to train as a mechanic to support operators on site.

We are pleased that through our Mining Services Division, Kangala Mine has been able to employ 42 operators out of the 100 candidates who received training.

Included are 25-year-old Sphiwe Thokozani Mtshweni and 31-year-old Shuba Priscilla Sibanyoni, who both work as ADT operators.

Shuba Priscilla Sibanyoni was unable to finish her post-school education due to financial constraints, followed by marriage and motherhood. She was delighted to proceed through the selection process and was proud, after completing the training, to begin her first real job. While she describes working in a male dominated environment as challenging, she believes the opportunity has unlocked a new level of ambition within her. She sees herself building a career in the industry and has set her sights on working in the safety department in the future.

Shuba Priscilla Sibanyoni — articulated dump truck operator.

Sphiwe Thokozani Mtshweni — articulated dump truck operator.


Skills development and training case studies

Jirah Academy — aspiring to excellence

Initiative overviewBased in KwaZulu-Natal, the Jirah Academy was originally founded as a bridging programme, aimed at rebuilding the foundations of engineering mathematics and science.

After the overwhelming success of the 2014 Bridging Programme, Jirah launched its pilot N1 and N2 Engineering Studies in early 2015.

Following that, the academy’s first graduates completed their N3 Engineering Studies, as planned in November 2015.

Jirah currently operates as a community-based satellite campus, in partnership with public and

private Technical Vocational Education and Training colleges that are registered with the Department of Higher Education and Training and quality assured by Umalusi — the Council for Quality Assurance in General and Further Education and Training.

Jirah’s vision includes partnering with universities beyond South Africa, sourcing financing grants and helping graduates find career opportunities such as apprenticeships within the Durban area.

In addition to its engineering studies, the academy takes a holistic approach to youth development and fosters good work habits, timekeeping skills, self-management and being committed to a value system. Its ultimate goal is to build a reputation for providing quality education that produces quality artisans, who are fully prepared for the workplace. With a renowned reputation, the Jirah Academy will attract more candidates and provide the industry with skilled artisans.

Stefanutti Stocks’s involvement

In 2014, Transnet awarded the Maydon Wharf upgrade project to a joint operation between our Marine Division and Axsys Projects. Following the award, the joint operation committed a total of R1,35 million over a period of two years to Jirah’s original Bridging Programme — including the mainstream N1 and N2 Engineering Studies.

In light of the personal growth and academic achievements of the Jirah Academy’s 50 learners, the group will continue its association and relationship with the academy. In September 2015, our Civils KZN Division contributed a further R250 000 towards the November 2015 completion of the N3 in Engineering Studies.

In addition to our financial support, we promote the initiative and assist with sourcing funds to keep the doors of the academy open. Stefanutti Stocks and other corporates in the region could also offer apprenticeship opportunities to Jirah Academy graduates in the future.

Mr Leonard assisting learners Dayle Gordon (centre) and Brenne van Rooyen (right).

Keaton Juan with study group behind. Mr Tonyara (front right) assisting study group.



Electrical apprenticeship — Rofhiwa MapilaThe M&E Business Unit embarked on a drive to appoint a number of apprentices — spanning a variety of trades, as part of its skills development initiatives, during the latter part of 2015.

In total, seven candidates were identified and selected from a pool of almost 4 000 applications.

The successful candidates were placed on apprenticeships in the electrical, instrumentation and welding trades, through an accredited and reputable service provider.

At the training institution’s annual prize giving and award ceremony, there was one learner who distinguished himself above the others, Rofhiwa Mapila, a 26-year-old electrical apprentice, currently completing his Phase 1 site experience.

Rofhiwa impressed us at his interview, he was well spoken and had a modest demeanour.

His academic track record, psychometric assessment results and his motivation as to why he wanted to pursue a career in the electrical trade, made him successful in being awarded a full apprenticeship.

The benefits of the apprenticeship include: tuition fees, a toolbox, accommodation and meals, as well as a monthly stipend for the duration of the three-year programme.

The training facility held their first annual learner award ceremony on 8 December 2015, to recognise and reward their top learners. Rofhiwa was nominated for the Learner of the Year award 2015 in the Electrical Phase 1 category. When selecting learners for awards, the criteria used included: class attendance and participation, interaction with peers and lecturers, term marks based on assignments, practicals and exams, as well as a review of the learner and their overall attitude.

M&E recognises Rofhiwa’s outstanding accomplishment. He represents the quality of an individual we as a company and business unit strive to uplift and develop. We will continue to support all of our apprentices in completing their studies and we encourage them to follow the example of Rofhiwa Mapila, whose exceptional level of work is an inspiration.

Rofhiwa Mapila — electrical apprentice.



OverviewThe group’s occupational health and safety (OHS) strategy is driven with the welfare of its employees and the communities within which it operates, in mind. Accordingly, the group’s operations have moved beyond conservative compliance and now embraces a framework that encourages ownership and empowering its people to make good decisions. The empowerment framework consists of three components: authority, responsibility and accountability and is applied across all levels of employment within the group.

During the year under review:

› The OHS system documentation was aligned with recent legislative changes to ensure operations remain in line with statutory requirements.

› Further improvements were made to the S4 data capturing and reporting system including a comprehensive visible felt leadership (VFL) data capturing screen that enables better statistical analysis which can be accessed via smart phones for real-time data upload or download.

› Significant improvement was evident in terms of OHS management as lower frequency rates and the severity of incidents were experienced and recorded.

› The lost-time injury frequency rate (LTIFR) reduced from 0,20 for the prior year to 0,10 in 2016. This improvement reflects the lowest LTIFR recorded since 2013. The group’s benchmark remains at 0,10, however, the long-term strategy is being able to achieve zero harm.

› The group’s recordable case rate (RCR) for the year under review was measured at 0,59, which is below the targeted 0,70 for 2016. RCR comprises medical treatment cases (MTC), restricted work cases (RWC), lost-time injuries (LTIs) as well as environmental reportable cases. A reduced target of 0,40 has been set for the next financial year.

› The number of LTIs recorded during the year under review reduced from 26,0 in 2015 to 12,7. This includes joint operations portions.

› The injury statistics split of 95% male, 5% female recorded are in line with gender employment statistics.

› An internal industrial theatre, “Mr. Zee”, has been established to increase awareness and buy-in to the concept that each employee should take ownership of OHS in the workplace.

Lost-time injury

13

Restricted work case

13

Medical treatment case

69

First aid case

108

ALL INJURIES

RCR Group

Str

uctu

res

0,99

M&

E

0,22

Bui

ldin

g

0,4

RP

M

0,78

0,59

RCR Group

Str

uctu

res

0,99

M&

E

0,22

Bui

ldin

g

0,4

RP

M

0,78

0,59

RCR PER BUSINESS UNIT


Safety and health

RPM StructuresM&E Building Group

Mar ’15 Apr ’15 May ’15 Jun ’15 Jul ’15 Aug ’15 Sep ’15 Oct ’15 Nov ’15 Dec ’15 Jan ’16 Feb ’16

0,23

0,30

0,15

0,08

0,00

LTIFR PER BUSINESS UNIT

Mar ’15

Apr ’15

May ’15

Jun ’15

Jul ’15

Aug ’15

Sep ’15

Oct ’15

Nov ’15

Dec ’15

Jan ’16

Feb ’16

11

011

31

2,7

11

0,7

0 0 2 12 00

Structures BuildingRPM M&E

11

1

2

2

LTIs PER BUSINESS UNIT


Sustainability report Safety and health continued

OHS managementTo support the group’s journey towards zero harm the OHS Forum established a new framework of strategies for the next three years, with particular focus on sustainable operational interventions. The framework has been endorsed by the Executive Committee (EXCO) for implementation and has changed the way OHS is managed on a broader basis to allow critical components to be driven by work groups. The strategy consists of sustainable improvement, through leadership in systems management and execution. A major focus is the dissemination and distribution of lessons learnt within the group.

ImplementationImplementing the group’s safety strategy remains a line management function, with OHS practitioners fulfilling advisory and support functions.

› Each project nominates and appoints health and safety representatives in accordance with legislative requirements.

› These health and safety representatives represent employees on project OHS committees.

› A safety officer assists site management to implement and control OHS management systems and OHS performance is measured daily.

› Divisional OHS managers analyse the data and provide monthly reports to be discussed at the divisional management meetings.

› OHS initiatives, based on trend analysis from injury and incident statistics and OHS leading indicators, are implemented on a monthly basis.

› Leading indicators include planned task observations (PTOs), workplace inspections (WPIs), near hits and VFL.

› Each project conducts monthly contractor/ supplier compliance audits and a final close-out report, which is reported as part of the OHS committee agenda.

› Divisions audit their projects on the basis of an audit schedule to ensure management systems are complied with.

› The business unit functions as a support resource and ensures annual external audits are conducted to ensure the business unit remains OHSAS 18001 certified.

All management systems are reviewed annually to ensure they remain in line with industry best practice and any necessary changes, motivated by incidents, are incorporated.

The ability to easily and quickly access current and reliable data helps to identify issues and enables the development of OHS campaigns that target and eliminate specific elements of concern within projects or operations.

Risk management modules support the group’s risk-based approach to managing OHS and an external legal advisor provides and updates legal registers to ensure risk assessments address all potential hazards from the outset.

Proactive managementMonitoring and measuring near hits assists management to be proactive in preventing injuries from occurring. Trends analysis informs the development of initiatives and actions that are implemented for specific employment levels.

As unsafe acts are related to behaviour, initiatives focus on changing the risk judgment process of employees. Unsafe conditions initiatives target management levels and specifically focus on creating a safe working environment for employees.

Month-to-month proactive management interventions include field inspections by supervisors; daily safe task instructions; daily safety officer inspections; Stop-Look-Assess-Manage (SLAM); monthly compliance and operational audits; subcontractor control and adjudication audits; safety meetings; toolbox talks; site safety observations (SSO) and VFL.

VFL is a documented guide that facilitates interaction in the work environment — connecting directors, management, supervisors and other employees. It helps to assess and verify important operational activities, as well as health and environmental system standards and processes. They record and document VFL findings, critical observations, commendations and recommendations for review and close-out.

The group CEO measures top management commitment across all business unit and divisional directors, as well as senior management VFL interventions, on a monthly basis. The VFL procedure stipulates the types of interventions required by specific position profiles, both for site-based management and head office staff. Observations are captured in S4 and monthly trends and close-out action reports are discussed at EXCO meetings.

A visible and diligent management presence in their operations impacts on their safety performance and in developing the safety culture. Since its inception, VFL has changed negative perceptions around project safety, with management now being seen as actively participating in and leading safety on site.

The VFL programme was established to improve both project and plant yard operations. Three VFL formats target specific levels of management and supervision, as well as various key operational activities and legal and company system requirements.

The Management VFL format is an audit guide for head office management and directors who interact with project employees and conduct site inspections on both health and safety systems and operational safety compliance. The criteria are aimed at a high level and covers safety management systems, operational task areas, emergency preparedness, supervision, workforce and incident management.

The Field Safety VFL format is an audit guide for site management and safety officers and addresses Management VFL categories in more detail. This provides an easy reference to site management necessary for operational compliance. Appointed site managers can monitor project safety more easily by regularly conducting their project VFL.

The Plant Yard VFL format is aligned with the Management VFL format — it is a high level interface with the same categories, but addresses different key activities and processes. Plant Yard VFL is conducted by appointed plant yard managers, and company management and directors conducting site management VFL. Appointed managers and directors have valuable input to offer, improving service delivery at plant yards and compliance with required operational standards.

The graph on page 29 hows the number of observations conducted as per the group’s procedural requirements. Excluded from this graph are all observations conducted on site, as part of client requirements.

All logged observations are placed on action registers and are closed out once preventative controls have been implemented. The close-out actions are closely monitored by the observer to ensure that his/her recommended actions have been implemented.

The benefits of our VFL include good housekeeping, a motivated and compliant workforce, a robust safety, health and environmental system, well-maintained plant and equipment, good safety performance against indicators, proactive supervision and management and satisfied clients.

External providers are used to ensure accredited OHS training is delivered according to legislative requirements. The table on page 30 reflects expenditure on training for the year under review.

Health exposureConstruction activities inherently expose employees to hazards and these exposures have been comprehensively identified through internal and external risk management processes. The knowledge of these health hazards has resulted in surveillance procedures and has identified potential symptoms and wellness programmes that eliminate or reduce the effects of exposure, which are overseen by occupational health service providers.

65 Unsafe acts 35 Unsafe conditions

TOTAL NEAR HITS (%)

65 Unsafe acts 35 Unsafe conditions



NEAR HIT LEADING INDICATORS

Not following procedures

3 115

Use of tools or equipment

488

Use of protective methods

1 022

Inattention/lack of awareness

521

Protective systems

382

Tools, equipment and vehicles

613

Work exposures to physical hazards

948

Workplace environment/layout

851

Repetitive strain, hearing loss as well as hand-harm vibrations are the group’s leading health exposure elements. During OHS medical surveillance programmes, employees involved in these activities are monitored for any symptoms. Actions are taken to minimise the current status of the employees’ health and to prevent further deterioration. Annexure 3 of the Construction Regulations 2014 guides the identification of all health hazard exposures and all employees are surveyed according to the specific requirements per position profile.

Tuberculosis (TB) remains a concern in some construction activities and the group runs awareness campaigns each year on World TB Day on 24 March.

We also participate in campaigns from the International Labour Organization on the annual World Safety Day celebrated on 28 April.

HIV-affected families and employees are assisted by an external service provider who monitors an external support line for all. The group encourages voluntary HIV testing and some employees use this opportunity for testing during their annual OHS surveillance medicals administrated through our service provider. Refer to the table on page 30. Building and M&E have not made use of this service in their respective business units which may be incorporated in future. The group expects the volume of voluntary testing to grow in the coming year as this service is relatively new.

OHS achievementsThe reduction in incident statistics indicated a well-managed OHS framework. External parties have commended the group for extraordinary OHS performances. Below are some achievements as noted in the industry.

RPM Business Unit › RPM achieved an objective of zero LTIs for the past year at 53 sites.

M&E Business Unit › A letter of commendation was received from MDM Engineering on the Rasimone BRPM Upgrade Project for commendable SHE performance.

› Exxaro awarded a certificate of achievement to the GG10 Project team for 180 LTI-free days.

› A certificate for outstanding performance was awarded by Sasol Technology for the GOX East project in Secunda.

› Recognition was given to project employees by Technip for SHE performance on the C3 Expansion Project in Secunda.

Structures Business Unit

› Various projects have achieved their objective of zero LTIs for the past year.

› Black Rock Expansion Project — Certificate of Excellence — 300 LTI-free days

› Liqhobong Mining Development — 200 000 construction man hours without an LTI

› Amec Foster Wheeler — LP Compression Project 600 hours without a recordable case

› Lower Tugela BWSS Project 1 000 000 man hours worked without an LTI

› Reconstruction of the revetment project (East London) — 300 000 LTI-free hours

› Civil works for upgrade of firefighting system project (Cape Town) — 250 000 LTI-free hours

› Reconstruction of Maydon Wharf berth 1 – 4, 13 and 14 Project (Durban) — 750 000 LTI-free hours

Building Business Unit

This business unit participated in the Master Builders Association’s annual regional and national OHS competitions and achieved the following results:

› Regional health and safety competition achievements

» Eastgate: First place for projects between R300 million — R500 million

» Kusile Power Station: First place for projects of R650 million and above

» Mr. Price: First place for projects between R150 million — R300 million

» Small Plant and Yard Category (Western Cape): First place

» Bluff Phase 2: Second place for projects between R25 million — R75 million

» Project Sunrise: Third place for projects between R150 million — R300 million

» Nhlanhla Mpofu (Gauteng Division) received the Safety Officer of the Year Award in the MBA North region.

» Dallas Pakkiri (KZN Division) was commended for his contribution to the industry as a Safety Manager with the SAIOSH Person of the Year for 2014/15 award.

› National health and safety competition achievements

» Kusile Power Station: First place for projects of R650 million and above (this is the third consecutive year the project has won this category which is an exceptional accomplishment).

» Eastgate: Fourth place for projects between R300 million — R500 million

» Mr. Price: Fourth place for projects between R150 million — R300 million

› 5-star Grading

» All projects have been awarded 5-stars by the Master Builders Association for meeting the set measurement criteria.



55

Mar ’15199

57

Apr ’15197

58

May ’15251

101

Jun ’15168

141

Jul ’15359

104

Aug ’15326

106

Sept ’15498

58

Oct ’15389

60

Nov ’15298

18

Dec ’15179

37

Jan ’16354

67

Feb ’16466

VFL SSO

VFL AND SSO INSPECTIONS PER MONTH



STATUS OF CONSTRUCTION HEALTH AND SAFETY OFFICERS REGISTERED WITH SACPCMP

Business Unit

No. of construction health and safety

officers (CHSO) RegisteredRegistered as

a candidateCHSOs applied for registration

CHSOs that have

not appliedApplications

pending

RPM 62 8 1 61 1 52

M&E 36 7 — 36 — 29

Structures 43 26 — 43 — 17

Building 45 9 — 43 2 34

Group total 186 50 1 183 3 132

VOLUNTARY HIV TESTING

HIV voluntary testing

RPM 142

Structures 52

Corporate Services 25

Total 219

HEALTH AND SAFETY TRAINING (INC. SAFETY OFFICERS, SAFETY AWARENESS, PPE)

MALE FEMALE TOTAL

Total Black Disabled Total Black Disabled

Total no. of employees 1 511 1 263 5 120 84 — 1 631

Training expenditure (R) 2 691 078 1 963 403 17 048 402 020 292 734 — 3 093 098

No. of courses 1 422 1 129 5 164 133 — 1 586

No. of training days 2 932 2 314 9 374 243 — 3 306



Our approach and policyStefanutti Stocks’s environmental strategy is driven from the top down, with the EXCO taking the lead on the legislative compliance of the group and its suppliers. The environmental framework and policy is reviewed on an annual basis and published on the group’s portal and website, where it is easily accessible. To entrench an environmental consciousness into the corporate culture, environmental issues are reported on at the group’s monthly EXCO meetings.

In order to reduce the impact of Stefanutti Stocks’s operations on the environment, an environmental framework has been developed based on the six pillars of biodiversity, carbon emissions, energy, materials, waste and water.

The group has developed data capturing and reporting modules within its mega-data hosting system, known as S4. The majority of the 2016 reporting period was spent on planning, developing and implementing a standardised method of data capturing for all criteria based on the six pillars.

The 2017 period has been earmarked for the generation of a baseline for each pillar and once the baseline has been established, the objectives and targets for reduction and improvement will be set by the EXCO. A Group Environmental Forum has been established to ensure that the physical implementation of these methodologies meet the objectives.

Management systems and risk approachThe group has made progress in that 11 of the 14 divisions are ISO 14001 certified. Their environmental management systems are maintained, monitored and evaluated by accredited external institutions. Projects and project-based activities have been designed in accordance with ISO 14064-2 guidelines on greenhouse gas (GHG) reduction or removal. These requirements are also considered during risk evaluations and the compilation of environmental aspect and impact registers for each unique operation. The legal register is aligned to ensure each aspect is measured and adhered to in terms of legal compliance.

In order to prevent or reduce recurring incidents proactive reporting on the following leading environmental indicators take place: pollution/contamination; unauthorised activities; waste management not to standard; irresponsible use of resources; environmental damage; animal sighting or rescue and environmental near hits.

As part of Stefanutti Stocks’s environmental management, each subcontractor bidding for a tender is issued with the group’s environmental specifications as a condition of compliance, in order to ensure its environmental efforts are aligned, should the contractor be appointed.

The group tracks any fines or summons received from statutory bodies as part of its lagging indicators. It also tracks any significant spills that occur during its construction operations and it is pleased to report zero fines or significant spills for the year ended February 2016.

Stefanutti Stocks environmental framework pillars

BiodiversityThe International Union for Conservation of Natures’ (IUCN) list of red species and endangered habitats within the group’s areas of operation has been referenced and applied. Furthermore, no operations that may have adverse effects on any of the referenced habitats have been flagged.

All biodiversity activity is managed under the respective clients’ environmental impact assessments, records of decision and environmental management plans. Monthly compliance audits are conducted by both internal and external stakeholders, to verify compliance.

In future the IUCN list will be referred to clients for specific evaluation during the tender stage.

Carbon emissionsIn response to the recent changes in legislation, specifically to the proposed Carbon Tax Notice, the group has undertaken to implement initiatives that will minimise the group’s carbon footprint. It has adopted the financial control approach for reporting and all systems have been aligned to gather the required data. The group also intends to report on Scope 1 and Scope 2 carbon emission data going forward.


Environmental management

EnergyEnergy usage is recorded for the following non-renewable sources: diesel, petrol, oil, liquid petroleum gas and electricity. The figures are captured in litres or kilowatts respectively and the usage data is converted to joule and reported as a final figure in gigajoules.

MaterialThe focus is on using recycled material during the construction process and materials with low hazardous impact on both people and the environment. To reduce the carbon footprint, the process of sourcing local materials is encouraged.

WasteWaste is recorded as either hazardous or general waste. General waste is further broken down into domestic and construction waste.

Recycling is a major focus within the group and it applies the principles of avoid, reduce, recycle and reuse. Its objective is to divert 75% of every project’s waste from landfill disposal.

Effluent water is not recorded as part of hazardous waste, however, all aspects of its transportation, handling and disposal are closely monitored.

WaterWater is a scarce resource and therefore, water management is closely monitored with particular regard to the potential negative impact construction operations may have on surrounding communities. The 2014 Corporate Water Disclosure Guidelines have been incorporated into Stefanutti Stocks’s operations to enable the group to produce a water disclosure report in the future.

Water usage is reported in kilolitres and monitored in terms of ground, surface and municipal usage. Where possible, metered readings are taken, but under normal operating circumstances, tally sheets are used to collect data.

Water is recycled and reused wherever possible, but this occurs specifically in mining operations, where clients, for whom work is being undertaken, must obtain and maintain water use licences.

The group has classified risk areas where water shortages exist and introduced various awareness campaigns to ensure its workforce is educated on responsible water management.

Environmental trainingTraining includes internal and external training regarding environmental matters. An extensive internal environmental induction process is undertaken at the beginning of each calendar year to ensure that all employees are focused on environmental issues. Continuous water and biodiversity campaigns are launched to ensure greater awareness of these critical material matters. The group also supports the world day of water conservation, arbour and biodiversity annually.

Internal training that creates environmental awareness of current environmental trends within the organisation, is conducted at all levels. These trends are identified through the data management system and are also used as a basis for all training initiatives.

As part of the group’s intent to ensure accurate reporting on its carbon footprint employees have been identified and sent on carbon footprint training. Fifteen employees representing all businesses attended a three-day training session.


Sustainability report Environmental management continued

Bata facilityIn June 2016, our Building Business Unit’s KZN Division completed the construction of an industrial distribution warehouse. The project comprised demolition of the existing structure, as well as the construction of a new building and refurbishment elements.

Before the construction phase of the new distribution warehouse could proceed, much of the existing facility had to be demolished. Throughout the project, it was crucial to minimise the disruption to trading tenants who were located in adjacent structures. These challenging conditions called for sensitivity and finesse in the technical execution of our work.

The phased demolition works of the existing structure included the building’s pre-stressed concrete roofing, its major support beams, two three-storey air stations that ran throughout the site’s footprint, existing surface beds, external hardstands and the demolition of two outbuildings.

Following the demolition phase, it was necessary to backfill the complex network of tunnels that ran below the existing 16 700m2 surface-bed area. The backfill work required a total volume of 9 600m3 and resulted in increased time pressure on the project’s programme. In the backfill phase, we used 8 925m3 of processed material, which was sourced from the demolished concrete roof structure and surface beds — crushed and processed into G5 grade material.

Before proceeding with casting the column base foundations, which were necessary for the building’s structural steel to be erected, the timeous screening of approved material to backfill the tunnels had to take place.

Some tunnels incorporated live services and had to be de-commissioned as late as possible to accommodate the needs of existing tenants and this further delayed the casting of various concrete support elements under tight programme constraints. Before we could proceed with the structural steel erection, we had to counteract the delays and escalate the operations. To do this, we increased our resources and implemented precast columns in certain locations of Phase 1.

The project’s new build elements included a technical structural steel erection, a structural concrete framework for docking and loading bays, the casting of a new 16 700m2 surface bed as well as 12 200m2 of new concrete external hardstands.

Work on the project also included refurbishing the existing structures to facilitate new ablutions and change rooms, as well as a canteen and offices.

SummaryFormer plant auxiliaries’ mass of metal was removed from the site for reuse elsewhere, but was not weighed. Items consisted of steel tanks, steel piping, lightweight section galvanised roof trusses, steel window frames, transformers, high-tension copper cables and a diesel generator. Where possible, lighting units were reused and recycled; we also safely disposed of 3,3 tons’ worth of asbestos sheeting and the rebar that was separated from concrete crushing operations was sent to recyclers for reuse.

It is estimated that 98% of the old structure was recycled and reused. The combined calculated tonnage of the crushed concrete roof, supporting structures and hardstand was 8 925m3.

An aerial view of the existing building before demolition.


Environmental case studies

4. Old rebar recovered from crushing operations to be recycled.

5. A view showing construction work during the simultaneous demolition and crushing operations.

6. Former plant auxiliaries and light weight roof trusses dismantled and stored for reuse and recycling.

1. July 2015: An aerial perspective of the existing facility, demolished to make way for the new structure.

2. A ground view of the building during demolition and removal of the roof.

3. A view of G5 used to fill and compact the tunnels.

7. Bata under construction during February 2016.

8. May 2016: The new Bata Warehouse interior.

9. May 2016: The new Bata Warehouse entrance.



Green BuildingsStefanutti Stocks are proud to be associated with green building projects in our capacity as a principle contractor. Below are two examples of our involvement in green building projects.

Hotel VerdeWith its 10 502m2 gross lettable area, Hotel Verde is a four star hotel, located close to Cape Town International Airport. Operating since 2013, the hotel is unique in that it offers sustainability, luxury and convenience in a single package. The hotel has 145 rooms and seven conference venues, 3 057m2 in parking and by focusing on sustainability, it maintains its status as Africa’s greenest hotel.

From the inception of the project, the owners, as well as the project team, planned to build and deliver a new and pioneering hotel. The hotel’s design is focused on sustainability and energy efficiency and has changed the way other – new and existing hotels – can be built and operated. The hotel was designed from the ground up, to be as ecologically-friendly as possible and this concept is driven through the hotel on a daily basis, through operational aspects such as waste management, the procurement chain and staff training.

The hotel was awarded 82 points by the Green Building Council of South Africa (GBCSA), earning six green stars in June 2015 in the Existing Building Performance Pilot.

Points were allocated to the building according to: management, indoor environmental quality, energy, transport, water, materials, land use and ecology, emissions and innovation.

The sustainable building features include vertical axis wind turbines, PV panels on the north-facing roof and facade, as well as energy-generating gym equipment. Additional energy is saved by the hotel’s elevators, which have regenerative braking systems and the hotel runs an intelligent building management system.

The hotel also boasts an energy efficient heating, ventilation and air conditioning system, which uses geothermal ground loops coupled with heat pumps for central heating/cooling and domestic hot water.

Energy Star certified energy and water efficient equipment keeps utility wastage to a minimum, while specialised water metering improves monitoring and leak detection. Motion-controlled lighting ensures that energy is not wasted on empty rooms and main power isolation switches can control every bedroom, office and meeting room.

The hotel takes energy efficiency further, with demand-controlled ventilation to bedrooms and saves water with its grey water recycling plant and by harvesting rainwater and subsoil drainage water. Another feature is the hotel’s small urban farming setup, which utilises a symbiotic aquaponics system. The hotel also puts its material waste to further use through recycling as well as its Bokashi composting area.

As a result of the sustainable building features, all accommodation and conferencing at Hotel Verde is 100% carbon neutral and the building is approximately 70% more efficient than regular Cape Town hotels, generating 10% of total consumption as renewable energy.

Hotel Verde front view.

Hotel Verde rear view.



Atholl Towers

Atholl Towers is an office building that comprises seven floors, including the ground floor. The building’s total commercial area is 8 835m2 of lettable, A-grade office space that rises above five basement levels and large open parking, which spans 14 202m2.

The building’s design features the following attributes to enhance indoor environmental quality:

› a frameless glass;

› full height facade with silicone based, self-cleaning finishes;

› low maintenance tile and aluminium cladding; and

› insulated spandrel panels.

The contemporary building also features a linear layering of horizontal and vertical structural elements.

Its composition is derived through a layered orthogonal articulation from a series of rhythmic interactions of solid and void, which enhances the shape of the deep and narrow building site.

Boasting an energy-efficient envelope through specialised, highly efficient glazing and insulation, Atholl Towers incorporates optimised air conditioning, lighting and a central heat recovery system, motion sensor light fittings and hot water generated from waste heat from the air conditioning system. Additional sustainable features include water saving fixtures, rain water harvesting, a waste recycling facility, paints and adhesives low in volatile organic compounds, recycled and locally sourced materials. Also installed are Otis GeN2 Regen drive elevators to capture energy that usually goes to waste and turn it into usable electricity.

The Atholl Towers building project was awarded 60 points which recognises South African Excellence by the Green Building Council of South Africa (GBCSA), earning five green stars in July 2015 for Office Design v1. Points were allocated to the building for: management, indoor environmental quality, energy, transport, water, materials, land use and ecology, and emissions.

The sustainable building features include energy efficient heating, ventilation and air conditioning system – comprising a low energy, air-cooled direct expansion variable refrigerant volume system with inverter heat recovery. Efficient power consumption in Atholl Towers is controlled, never exceeding 45W/m2 and provides fresh air at a rate of 12,5 litres per second per person.

Energy efficient T5 fluorescent lighting and LED lighting is installed throughout and controlled via light sensors.

The building’s domestic hot water system utilises heat recovery from the variable refrigerant volume system to heat water in hydrobox units located on the roof. A reduction in potable water consumption is achieved through the building’s water efficient sanitary fittings and rain harvesting and the treated water is used for flushing toilets and irrigation.

The above mentioned case studies were extracted from the Green Building Council South Africa website: www.gbcsa.org.za

Atholl Towers — Katherine Street entrance.

Atholl Towers — Main Entrance.



RPM and M&E’s printer cartridge waste recycling initiatives

Annually, about 300 million used and empty printer cartridges are disposed of in landfills globally. Instead of being recycled, tons of plastic and metals from the cartridges are buried in the ground.

It is estimated that an average printer cartridge could take about 450 years to decompose once buried in a landfill, which is an incredibly long time. Furthermore, waste of this kind has a physical reaction when introduced to the environment and can become corrosive. Cartridges contain ink and toner, which can release volatile organic compounds into the environment, polluting soil and water and harming ecosystems and biodiversity.

Because printer cartridge waste is classified as hazardous in South Africa, it must be disposed of at landfill sites with low hazardous ratings, as a minimum, to prevent causing harm to the environment. While proper disposal has been legislated, there are more environmentally considerate methods to consider when handling this waste. In line with RPM’s waste management objectives, we endeavour to reuse and recycle various waste streams generated by our operations and support functions.

RPM

In our eWaste recycling initiative, RPM partners with Green Office in a cartridge recycling scheme, which aims to reduce the environmental impact from printer cartridge waste.

Green Office is the leading collector and recycler of printer cartridge waste in South Africa.

Responsible waste disposal also saves energy, reduces the depletion of precious natural resources and prevents needless pollution from improper disposal.

Green Office not only offers a highly green service, they support the employment and development of disabled persons through their sister company GreenABLE, which employs disabled persons who are upskilled to dismantle, clean and sort the used and empty printer cartridges. We are proud of our role in helping to provide a stable income to the initiative’s beneficiaries, while adding value through social upliftment.

M&EM&E has also embarked on a printer cartridge recycling initiative, partnering with Mzansi Office Recycling and Consumables. Aiming to reduce, reuse and recycle, the South African company specialises in collecting used and empty inkjet and toner cartridges from businesses, schools, charities and individuals across the country – offering a complete solution to the challenge of commercial waste generation.

Our recycling fundraising programme offers companies a simple way to contribute to development projects in South Africa. Mzansi Office Recycling and Consumables affiliates include: Childline, World Wildlife Fund SA and many others. During the past year the company collected 635 large and 167 small cartridges from M&E’s Barbara Road offices, with the proceeds being donated to the Oasis Haven.

Green Office cartridge recycling bin.



Quality objectivesThe group aims to be a preferred construction partner with a track record of industry excellence and to maximise shareholder value by building a sustainable business through:

› Improving the operational efficiency on all projects through professional management.

› Committing to the delivery of a quality product by way of a quality management system (QMS).

› Assisting subcontractors and suppliers in improving their performance, the quality of their products and services delivered.

Challenges, progress and achievements

ChallengesThe introduction of the new ISO 9001:2015 standard will pose new but exciting challenges to the business with regards to adapting the current systems to cater for these changes which include:

› Certification to the 2015 version

› Risk-based thinking

› Leadership driven approach

A comparison of the different Plan-Do-Check-Act cycles is presented on page 39.

ProgressIn an effort to address the above mentioned challenges, the first introductory session to familiarise business units with the changes in the ISO 9001 standard and implementation requirements for compliance was held. Further sessions will be scheduled in the coming year to ensure a seamless transition to the new standard.

A Quality Forum has recently been established within the group as part of the group’s commitment to continual improvement. The forum is headed by an EXCO member and its purpose is to share the standardisation of systems, good practice and lessons learnt.

AchievementsThe group’s portal has been widely used as a document and record management tool. All business units and their respective divisions have had unlimited access to the full suite of South African National Standards, available on the portal for the last three years.

Notable achievements by business units and divisions are as follows:

Roads, Pipelines and Mining Services Business Unit

› The Botswana operation was awarded the PMR Africa Award 2015 – Golden arrow award for Botswana country survey – Leaders and achievers

Mechanical and Electrical Business Unit

› Electrical and Instrumentation was awarded the certificate of achievement by Sasol on the Restore Gaseous Oxygen Compressor at Oxygen East Plant Project

Structures Business Unit

Stefanutti Stocks Civils › 2015 The Concrete Society of Southern Africa Inland branch Chairman’s Award – Shondoni Precast Coal Bunker

› The Concrete Society of Southern Africa NPC – Bronze Company Member of Society for the year 2015

› 2015 SAFCEC Recognition Award for Outstanding Contribution by Member Company

Stefanutti Geotechnical › Letter of Recommendation – BADAT Kazerne Transit Development Project

› Letter of Recommendation – AECOM Repair works of a sinkhole adjacent to Jean Avenue and the N14 National Highway, Centurion Project

› Letter of Recommendation – BOMBELA Gautrain Rapid Rail Link Project

Building Business Unit

Stefanutti Stocks Housing was awarded the Govan Mbeki Award 2015 by the Human Settlements Department in the Free State.

› Diamond award from PMR Africa for excellence.

Over and above the achievements mentioned, all divisions within the group have maintained their ISO 9001 certification. Some operations that operate beyond South African borders are planning to achieve certification in the near future.


Quality management

Continual improvement of the QMS

Customers and other interested parties

Requirements


SatisfactionMeasurement, analysis and improvement

Resourcemanagement

Managementresponsibility

Productrealisation

Support,Operation

QMS

Plan

Act Check

Do

Improvement

Leadership Performanceevaluation

Planning

Product OutputInput

Organisation and its context

Customer requirements

Results ofthe QMS

Customersatisfaction

Products andservicesNeeds and expectations

of interested parties

Continual improvement of the QMS


Requirements


SatisfactionMeasurement, analysis and improvement

Resourcemanagement

Managementresponsibility

Productrealisation

Support,Operation

QMS

Plan

Act Check

Do

Improvement

Leadership Performanceevaluation

Planning

Product OutputInput

Organisation and its context

Customer requirements

Results ofthe QMS

Customersatisfaction

Products andservicesNeeds and expectations

of interested parties

2008 Plan-Do-Check-Act cycle

2015 Plan-Do-Check-Act cycle


Sustainability report Quality management continued

2016%

2016R’000

2015%

Restated2015

R’000

CONTRACT REVENUE 9 669 473 10 567 643

Less: Costs of materials, services and subcontractors (5 888 599) (7 048 773)

Value added by operations 98,6 3 780 874 97,9 3 518 870

Investment income 0,9 34 049 1,2 41 544

Share of equity-accounted investees 0,5 19 040 0,9 32 720

Total value add 100,0 3 833 963 100,0 3 593 134

Distributed as follows:

CORPORATE SOCIAL INVESTMENT

Donations and other community investments 0,1 2 722 0,1 1 733

EMPLOYEES

Short-term and post-employment benefit costs 85,8 3 292 470 85,3 3 065 321

Share-based payment and forfeitable share plan costs 0,1 2 029 0,1 5 056

PROVIDERS OF FINANCE

Interest and finance charges 1,5 60 422 1,2 41 664

Operating lease rentals 0,6 22 536 0,6 22 441

GOVERNMENT

Taxation 3,1 120 114 2,9 102 678

TOTAL VALUE DISTRIBUTED 91,3 3 500 293 90,2 3 238 893

REINVESTED IN THE GROUP 8,7 333 670 9,8 354 241

Reserves available to ordinary shareholders 4,8 182 317 5,5 200 812

Depreciation 3,9 151 353 4,3 153 429

100,0 3 833 963 100,0 3 593 134

VALUE ADDED RATIOS

Number of employees 10 476 13 812

Contract revenue per employee (rand) 923 765

Value created per employee (rand) 366 260

The group did not receive any financial assistance from government during the year.

BASED ON TOTAL OPERATIONS


Value added statement

Company Information Stefanutti Stocks Holdings Limited Share code: SSK ISIN: ZAE000123766 JSE Sector: Construction Year end: 28 February

Registration Number 1996/003767/06

Country of Incorporation South Africa

Registered Office No. 9 Palala Street, Protec Park, Cnr Zuurfontein Avenue and Oranjerivier Drive, Kempton Park, 1619

Postal Address PO Box 12394, Aston Manor, 1630

Telephone Number +27 11 571 4300

Facsimile +27 11 976 3487

Directors As at 14 July 2016 KR Eborall # (Chairman); NJM Canca #; ZJ Matlala #; T Eboka #; LB Sithole #; HJ Craig #; ME Mkwanazi #; JWLM Fizelle # (alternate to LB Sithole); DG Quinn; W Meyburgh (CEO); AV Cocciante (CFO)

# Independent Non-executive Directors

Company Secretary WR Somerville 20 Lurgan Road, Parkview, 2193 Telephone number: +27 11 326 0975

Auditors Mazars Mazars House, 54 Glenhove Road, Melrose Estate, 2196 PO Box 6697, Johannesburg, 2000 Telephone number: +27 11 547 4000

Attorneys Webber Wentzel 90 Rivonia Road, Sandton, Johannesburg, 2196 PO Box 61771, Marshalltown, 2107 Telephone number: +27 11 530 5000

Transfer Secretaries Computershare Investor Services (Pty) Ltd Ground Floor, 70 Marshall Street, Johannesburg, 2001 PO Box 61051, Marshalltown, 2107 Telephone number: +27 11 370 5000

Sponsor Bridge Capital Advisors (Pty) Ltd 2nd Floor, 27 Fricker Road, Illovo Boulevard, Illovo, 2196 PO Box 651010, Benmore, 2010 Telephone number: +27 11 268 6231

Bankers Nedbank Limited The Standard Bank of South Africa Limited Absa Bank Limited Bidvest Bank Limited First National Bank, a division of FirstRand

Bank Limited Nedbank Swaziland Standard Chartered Bank Banco Internacional de Mozambique Standard Bank Mozambique Moza Banco Banco Unico United Bank for Africa Banco Commercial & Investimentas Emirates NBD HSBC

First Gulf Bank

Website www.stefanuttistocks.com

sigil design bureau 41STEFANUTTI STOCKS SUSTAINABILITY REPORT 2016

Corporate information

www.sigil.co.za

yourBridging expectations

INTEGRATED REPORT ’16

WWW.STEFANUTTISTOCKS.COM

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stefanutti stocks sustainability report 2016.pdf

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