Our integrated report for the year ended 30 June 2021 provides a holistic review of our strategy to deepen and leverage our unique competitive advantages, particularly how our 'One Imperial' and 'Gateway to Africa' aspirations will unlock further value for our providers of financial capital and create sustainable value for all our stakeholders. As such, our report assesses how we intend to create or preserve enterprise value over time in relation to those factors most material to our shareholders, debt providers and the broader investment community.
Scope and boundary
The Imperial Logistics Limited (Imperial or the group) integrated report covers our governance, strategy, risk and opportunity management systems, and reviews our strategic, financial, operational and sustainability performance and prospects. It assesses all material factors and therefore incorporates the risks, opportunities and outcomes associated with stakeholders outside our financial reporting boundary. These relationships affect our ability to generate sustainable revenue and targeted returns for our shareholders in the short, medium and long term.
This report discusses our dependence on and transformation of the six capitals of the International Integrated Reporting Framework
|Make contact: Feedback, questions or requests from stakeholders can be directed to: Esha Mansingh, Executive Vice President (EVP): corporate affairs & investor relations at Esha.Mansingh@imperiallogistics.com or Melissa Arjoonan Vice President: marketing & communications at Melissa.Arjoonan@imperiallogistics.com.|
Reporting frameworks and assurance
Our internal and external reporting processes comply with the
Companies Act, King IV and the Listings Requirements of the
JSE (share code: IPL). In line with King IV recommendations,
we believe that our integrated reporting adheres to the
requirements of the Value Reporting Foundation’s1
Financial information is extracted from the audited consolidated annual financial statements for the year ended 30 June 2021, which is prepared on an IFRS basis, unless otherwise specified. Our external assurance providers, Deloitte & Touche, have issued an unmodified audit opinion on the annual financial statements, available in full online. Selected non-financial information included in this report and in the supplementary reports available online has been assured by Deloitte & Touche, and their independent limited assurance report.
Pro forma information
To provide a more meaningful assessment of the group's performance for the year, pro forma information and non-IFRS measures have been included in this report for the year ended 30 June 2021. The directors of Imperial are responsible for compiling the pro forma financial information on the basis applicable of the criteria as detailed in paragraphs 8.15 to 8.34 of the JSE Listings Requirements and the South African Institute of Chartered Accountants Guide (SAICA) on Pro forma financial information, revised and issued in September 2014 (applicable criteria). The pro forma information does not constitute financial statements fairly presented in accordance with IFRS. The pro forma financial information has been prepared for illustrative purposes only and because of its nature may not fairly present the group's financial position, results of operations and cash flows. The group's external auditor, Deloitte & Touche, has issued an unmodified reporting accountants' report on the pro forma information on 7 September 2021. A copy of their report is available for inspection at the group's registered office.
Our material issues are those factors most likely to influence the decisions of our stakeholders in relation to the capital inputs they provide and the outcomes they expect to derive in return. This year, we revised our materiality determination process to address gaps identified during the 2020 materiality process, and our reading of the <IR> Framework (2021), particularly with reference to the audience boundary of providers of financial capital and therefore its emphasis on enterprise value over time, as well as on processes related to ensuring the integrity of the integrated report. The material issues presented in this report are the result of a more formalised and robust approach, and more closely incorporate the trends in our operating context and the expectations of key stakeholders. The process followed to determine and approve our material issues.
Report preparation and presentation
The integrity of the group's reporting, across the suite of reports is primarily supported by our combined assurance model, which underpins the assurance provided by management (first line of defence), relevant functions (second line) and independent audits (third line) given to the board on the veracity, accuracy and completeness of the group's internal and external reporting and related systems of control. Further assurance of the assertions (specifically those that are forward looking) contained in the integrated report is provided by the following process controls in the preparation and approval of the integrated report.
- The EVP: corporate affairs and investor relations, a
member of the group executive committee, leads an expert
reporting project team, with support from specialist external reporting partners, and ensures a mature and effective
report preparation process is followed and continually
improved based on detailed debriefing, and internal and
external feedback on process, content and
Framework application in the prior year. She is closely involved in the planning and preparation of the report.
- Oversight and guidance of the process, particularly in reporting approach and content planning, is provided by executives and senior managers of the finance, risk, sustainability and company secretarial functions.
- The reporting project team has unfettered access to the group chairman and non-executive board members, the group executive and business leadership who provide input during preparation, and review and approve their relevant sections before they are submitted to the full board for review.
- The materiality determination process is foundational to the preparation of the integrated report.
- Information included in the report is drawn from interviews with leadership, members of the board and internal and external sources of trusted information that the group replies on for decision-making purposes.
- The project team review all content during the drafting process and the group executive committee oversees the process and controls applied in the information gathering and drafting process.
- The preparation of the integrated and ESG reports occurs in parallel and is aligned to ensure that information and data included in either report that is drawn from the other, is consistent.
- The material issues are reviewed, finalised and approved by the board. Board members are given the opportunity to review and comment on the drafts before final approval and sign-off of the report, on the recommendation of the relevant committees.
Board responsibility and approval statement
The board of Imperial Logistics Limited is ultimately responsible for the integrity of the 2021 integrated report and related ESG disclosures. The group audit and risk committee, and executive management, are mandated by the board to oversee the preparation and presentation of the integrated report and the group social, ethics and sustainability committee, and executive management, for the preparation and presentation of the ESG content. The committees fulfilled their respective mandates and recommended the reports to the board for approval.
In the board's opinion, the integrated report addresses all material issues and matters that may impact the group's ability to create value over the short, medium and long term, and provides a balanced and appropriate assessment of the group's governance, strategy, risks and opportunities, and its related systems, performance and prospects. The board believes that the integrated report has been materially prepared in accordance with the guidelines of the International <IR> Framework.
On behalf of the board
Group chief executive officer
27 September 2021