Integrated Annual Report

2023

stefanuttistocks.com

About this report

Overview

its stakeholders, the boundary has been extended beyond

financial reporting to include the material interests

About this report

inside front cover

attributable to or associated with key stakeholders.

Company profile

2

Stefanutti Stocks endeavours to achieve a high standard

Strategic report

in all disclosures in this report and to provide meaningful,

Business model

4

accurate, complete, transparent and balanced information

to stakeholders. The board and board committees were

Stakeholder engagement

6

actively involved in the disclosures made in this report.

Material risks

8

Risk management

9

This report was prepared in accordance with the requirements

Chairman's report

16

of the South African Companies Act, No. 71 of 2008, as

Performance review

18

amended (the Companies Act), the Listings Requirements of

Chief Financial Officer's report

22

the JSE Limited (JSE), the principles of the King IV Report on

Corporate Governance™ (King IV) (copyright and trademarks

Five-year financial review

25

are owned by the Institute of Directors in Southern Africa NPC

Value-added statement

26

and all of its rights are reserved) for South Africa 2016, the

Group structure

27

International Integrated Annual Reporting Council's International

Operational reviews

28

Framework, the International Financial Reporting Standards

Governance

(IFRS), Financial Reporting Pronouncements as issued by the

44

Financial Reporting Standards Council, the SAICA Financial

Board of directors

Reporting Guides as issued by the Accounting Practices

Executive Committee

46

Committee, as well as the company's Memorandum of

Corporate governance report

48

Incorporation (MOI).

Social and Ethics Committee report

58

The Stefanutti Stocks Integrated Annual Report contains

Sustainability highlights

60

a summary extract of the annual financial statements. The

Audit, Governance and Risk Committee report

61

2023 financial statements have been prepared under the

Remuneration report

65

supervision of the Chief Financial Officer (CFO), Yolanda

Summary extract of financial statements

du Plessis, and have been audited by Mazars, the group's

external auditors. The integrated annual report, as well as

Consolidated Statement of Profit or Loss

75

the comprehensive annual financial statements, sustainability

and Other Comprehensive Income

report, and investor presentations for the year ended

Consolidated Statement of Financial Position

77

28 February 2023, are available on the company's website.

Consolidated Statement of Changes in Equity

78

The requirement for external sustainability assurance

Consolidated Statement of Cash Flows

79

Notes to the summary of the financial statements

80

is considered annually and is at this stage not deemed

necessary by the relevant board committees. This report

Notice of annual general meeting

contains the most material issues of concern to all the

Notice of annual general meeting

87

company's stakeholders. For additional information visit

Form of proxy

95

the company's website: www.stefanuttistocks.com.

Notes to the form of proxy

96

Materiality

Additional information

99

Materiality is determined taking into account the International

Shareholders' diary

Framework, King IV principles and internal policies.

Abbreviations and definitions

100

The group defines material issues as those matters having the

Corporate information

inside back cover

potential to affect its strategy, business model, sustainability

or one or more of the capitals (as further described on pages

Scope and boundary

4 and 5) over the short, medium, and long term, taking into

account the likelihood and consequence of the matters.

The integrated annual report for 2023 comprises the

Forward-looking statements

operations of Stefanutti Stocks Holdings Limited and

its subsidiaries, joint operations and equity-accounted

The statements made within this integrated annual

investees (the company, the group, or Stefanutti Stocks).

report may contain forward-looking information including

This report is primarily intended to address the information

statements regarding the company's intent, belief or current

requirements of investors (the group's equity shareholders

expectations with respect to Stefanutti Stocks's businesses

and prospective investors). Stefanutti Stocks also presents

and operations, market conditions, results of operations and

information relevant to the way it creates value for

financial condition, capital adequacy, specific provisions

clients, employees and other key stakeholders.

and risk management practices.

The information in this report covers the financial and

Investors/shareholders are cautioned not to place undue

non-financial performance of the company for the year

reliance on these forward-looking statements. Forward-

ended 28 February 2023, and where it is relevant to include

looking statements are based on Stefanutti Stocks's current

information post year-end, this has been incorporated and

expectations and involve risks and uncertainties that could

noted. In assessing the risks, opportunities and outcomes

cause actual results to differ materially from those expressed

that materially impact the group's ability to create value for

or implied in such forward-looking statements.

These statements are based on a number of assumptions that are subject to change. The integrated annual report includes only matters up to the date of this report and the period reported on. Stefanutti Stocks disclaims any duty to update the information herein.

Board responsibility statement

The board of directors acknowledges its responsibility to ensure the integrity of the integrated annual report. The board has accordingly applied its mind, collectively and individually, to the integrated annual report and, in its opinion, the integrated annual report addresses all material issues, and fairly presents the integrated performance of the organisation and its impacts. The integrated annual report has been prepared taking into account the recommendations of King IV. The board authorised the integrated annual report for release on 19 June 2023.

Zanele Matlala

Russell Crawford

Chairman of the board

Chief Executive Officer

19 June 2023

CEO and CFO responsibility statement on internal financial controls

After due, careful and proper consideration, the directors, whose names are stated below, hereby confirm that:

  • The annual financial statements, an extract of which is set out on pages 75 to 86 and which are available on the website, fairly present in all material respects the financial position, financial performance and cash flows of the issuer in terms of IFRS;
  • To the best of our knowledge and belief, no facts have been omitted or untrue statements made that would make the annual financial statements false or misleading;
  • Internal financial controls have been put in place to ensure that material information relating to the issuer and its consolidated subsidiaries have been provided to effectively prepare the financial statements of the issuer;
  • The internal financial controls are adequate and effective and can be relied upon in compiling the annual financial statements, having fulfilled our role and function as executive directors with primary responsibility for implementation and execution of controls;
  • Where we are not satisfied, we have disclosed to the Audit, Governance and Risk Committee and the auditors any deficiencies in design and operational effectiveness of the internal financial controls and have taken steps to remedy the deficiencies; and
  • We are not aware of any fraud involving directors.

Preparation of financial statements

The financial statements, available on the group's website www.stefanuttistocks.com as well as the extract from the financial statements contained in this integrated annual report, have been prepared under the supervision of the CFO, Yolanda du Plessis, CA(SA). The extract of financial statements has been audited in compliance with the applicable requirements of the Companies Act No. 71 of 2008 as amended.

Yolanda du Plessis

Chief Financial Officer

19 June 2023

Compliance with Companies Act and MOI

Stefanutti Stocks Holdings Limited is in compliance with the provisions of the Companies Act, or relevant laws of establishment, specifically relating to its incorporation and is operating in conformity with its MOI.

Certificate by the Company Secretary

In terms of section 88(2)(e) of the Companies Act No. 71 of 2008 as amended, I certify that, to the best of my knowledge and belief, Stefanutti Stocks Holdings Limited has, in respect of the financial year ended 28 February 2023, lodged with the Companies and Intellectual Property Commission all returns and notices required of a public company in terms of the Companies Act and that all such returns and notices are true, correct and up to date.

William Somerville

Company Secretary

19 June 2023

Independent auditor's report

The unmodified independent auditor's report, which includes an emphasis of matter, can be found on page 11 of the consolidated annual financial statements on the company's website www.stefanuttistocks.com.

S Vorster is the individual audit partner responsible for the audit.

Russell Crawford

Yolanda du Plessis

Chief Executive Officer

Chief Financial Officer

19 June 2023

Stefanutti Stocks  Integrated Annual Report 2023

1

Company profile

The group offers highly diversified services across a wide spectrum of engineering and construction disciplines.

Stefanutti Stocks is one of South Africa's leading engineering and construction groups and is listed on the JSE Main Board in the "Construction and Materials - Construction" sector.

Vision

If you can dream it, we can construct it.

Mission

Excellence in execution

CIDB contractor

Category 9

B-BBEE contributor

Level 1

South African employees

2 707

Group workforce

6 405

Values

Candour

Frank and respectful discussions with the objective of finding positive outcomes.

Accountability

Taking personal responsibility for one's actions and the resultant outcomes.

People relations

The value, which results in people treating one another fairly and with respect, and always being mindful of the human dignity of others.

Professionalism

The application of a competent, disciplined and meticulous approach to all aspects of business, resulting in performance of high quality and reliability.

Excellence

A passionate mindset that puts quality at the forefront of all business activity.

Dynamic

Embracing openness and flexibility of mind and an energetic, proactive solution-driven attitude.

2

Stefanutti Stocks  Integrated Annual Report 2023

Operational footprint

  Inland

  Coastal

  Western Cape   Africa

The group operates throughout South Africa and sub-Saharan Africa with multi-disciplinary expertise including concrete structures, specialist concrete repairs, piling, geotechnical services, roads and earthworks, renewable energy, bulk pipelines, materials handling, tailings management, all forms of building works, mechanical, electrical and piping.

Stefanutti Stocks is registered with the Construction Industry Development Board (CIDB) as a Category 9 Contractor, with no restrictions on the size of projects for which the group can tender. The group is ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified.

The group's operational footprint on the African continent spans South Africa and sub-Saharan Africa, including Botswana, Eswatini, Malawi, Mauritius, Namibia, Zambia and Zimbabwe in both the private and public sectors.

Regional operations in Africa

Shaded countries on the map indicate the group's operational footprint

Clients include governments, state-owned companies, local authorities, large industrial entities, mining corporations, financial institutions and property developers.

The group's workforce is 6 405 including 2 707 South African employees, with its head office based in Kempton Park, Gauteng.

The group has a values-driven culture which underpins sustainable partnerships with all stakeholders.

The above is achieved by setting and meeting measurable key objectives to support sustainable earnings growth and, at the same time, maintaining a sound financial position while implementing key non-financial objectives to support Stefanutti Stocks's strategy.

Stefanutti Stocks  Integrated Annual Report 2023

3

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Disclaimer

Stefanutti Stocks Holdings Limited published this content on 28 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 June 2023 11:55:04 UTC.