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Stakeholder engagement
Defining value as 'sustainable profitability', refers to growing our profits and securing the Group's sustainability in a broader sense, by creating value for all stakeholders in the short, medium and long term.

We rely on seven key stakeholder groups to create value. Here we disclose the key issues of each and our response in addressing these. We also provide an assessment of our relationships, as indicated below:
- STRONG RELATIONSHIPS
- DEVELOPING RELATIONSHIPS
- WEAK RELATIONSHIPS
1. Shareholders
Key issues raised
- Value realisation
- Sustainable returns
- Governance
- Risk management
- Remuneration policy
- Executive directors' remuneration
- Share-based payment schemes
Our response
- Implemented numerous initiatives to improve operational efficiencies, cut costs, enhance profitability
- Investor roadshows and 1:1 meetings with analysts
- Consulted extensively with shareholders on governance matters, remuneration and share-based payment schemes
Key outcomes
- EBITDA US$86.8 million
- 6.6 US cents UEPS
- 23.8 million shares repurchased
- Strong balance sheet
- Stringent focus on application of good governance principles
- Risk management focus in ARCCs
- Revised remuneration policy
- Reduction in basic salaries of CEO (20%) and CFO (10%)
- Revised share-based payment schemes
2. Financial institutions and debt funders
Key issues raised
- Financial health
- Liquidity
- Ratios
- Cash generation
- Risk management
- Growth prospects
- Compliance
- Covenant adherence
Our response
- Implemented cost reduction programme
- Renewal of debt facilities in Westcon EMEA
- Deleveraging to strengthen balance sheet
Key outcomes
- Westcon central cost reduction
- US$32 million interest paid to debt providers
- Improved interest cover
- Improved operating cash flows
- Four strategic acquisitions made in FY19
- Improved ROIC
3. Employees
Key issues raised
- Ongoing training and personal development
- Non-discriminatory work environment
- Opportunities to obtain multiple vendor accreditations
- Nature, variety and breadth of work
- Performance management
- Incentives and rewards
Our response
- Decentralised engagement programmes - operation specific
- Education, training and development programmes - operation specific
- Employee performance assessments
- Group and regional tracking of employee turnover rate and drivers
- Refreshed share incentive schemes
Key outcomes
- US$648 million in staff salaries and benefits
- US$1.5 million cash paid for share-based payments
- Commitment to diversity and inclusion
- Ongoing employee development
- Long-term and short-term employee incentives
4. Customers
Key issues raised
- Effectiveness of processing and transacting systems
- Value for money and quality of service
- Premium (best-in-class) vendors
- Vendor profile (broad offering)
- High degree of technical competence
- Diverse product and service offering across Group
- Innovation and early adaptation to emerging trends
Our response
- Fixed process errors resulting from transition to ERP at Westcon International
- Implemented digital enablement technology tools to improve customer experience and speed to market
- Customer engagement programmes to ensure customer needs and expectations are met
- Strong partnership approach to deliver best results
- Customer satisfaction surveys
- Vendor incubation accelerates access to emerging technologies
Key outcomes
- Positive feedback from satisfaction surveys
- Strong vendor offerings
- Improving services and product mix
5. Vendors
Key issues raised
- Alignment with vendor "approach to market" messaging
- Meeting vendor financial targets
- Accreditations (training)
- Quality of training programmes
- Maintaining technical edge in light of ongoing market evolution
- Scope for alignment and scale of operations
- Geographic reach
- Financial health
- Innovation and early adaptation to emerging trends
Our response
- Differentiated global relationship management strengthens partnerships
- Active participation at global vendor conferences
- Partner enablement programmes drive global expansion, channel development and scale
- Global services capabilities extend partner reach
- Vendor incubation provides competitive advantage
- Vendor satisfaction surveys
- Vendor audits and assessments
- Contract renewals
Key outcomes
- Positive feedback from satisfaction surveys
6. Governments and regulators
Key issues raised
- Investment
- Employment
- Taxation
- Governance
- Compliance
- Impact on energy usage (IT centres)
- Import and customs controls
- Diversity
- Empowerment and transformation
- Data privacy
Our response
- Maintain sound governance policies and processes
- Regulatory returns/submissions made on time
- Complied with JSE Listings Requirements
- Tax compliance policy (UK)
- BBBEE certification for SA operations and improved BBBEE ownership credentials
- Board policy on diversity
- Adhere to strict data protection policies and processes
Key outcomes
- Westcon SA BBBEE status - Level 1
- Logicalis SA BBBEE status - Level 4
- US$39 million directly distributed to governments
7. Foundation beneficiaries
Key issues raised
- Development of education (specifically
mathematics, science, English and IT) in
previously disadvantaged communities - Charitable and compassionate aid
Our response
- Partnerships with various organisations committed to improving education in under-resourced schools for learners and teachers
- Partnerships with non-profit organisations that provide ICT skills for unemployed youth
- Partnerships with organisations that provide
secondary school level intervention programmes focused on improving results in mathematics, science and English
Key outcomes
- Donated over R7 million
- Provided approximately 6 000 individuals with access to computer technology
- Provided ICT skills training to over 4 500 individuals
- School level intervention programmes in mathematics and science benefited over 3 000 learners
- Integrated Report 2019
