SM

Mr Sanjeev V. Manrakhan
CEO

Work in progress!

It has indeed been a very challenging year in all respects. While growth has been present in most of the areas under review, it has also been a year where, through the impulsion of the Chairman and Board of Directors, the management team has been encouraged to review who we are, what we do, how we create value and profits, but, most importantly — where we are and where do we see ourselves in 2018.

On that count, we believe that with the dedication and hardthinking of our Senior Management team and colleague managers as well as external consultants, we have been able to present our Strategic Plan 2015-2018 that is already under implementation, with results expected as early as the FYE 2016.

Performance

For the year under review, the Group achieved significant growth over last year, despite suffering forex losses due to the significant depreciation of the rupee vis-a-vis the dollar, facing challenges in geographical expansion, and encountering an increasingly competitive environment in the smart devices market, amongst others. Gross profit grew by 26% over FY2014 to reach Rs 85 million in FY2015 while group revenue reached Rs 339 million in FY2015, up 31% from last financial year, driven mainly by a robust performance in data centre services — a strategic area which is expected to receive a significant boost from our geographical expansion plans going forward.

Although considerable resources were allocated to the review of operations, strategy and future expansion we have been able to reach most of our objectives. However our targeted 10% PAT as a percentage of revenue under-performed at 5%. The MUR 16Mn shortfall is mainly due to:

• Losses incurred in our ERP/CRM businesses representing 45% of the shortfall

• A number of write-downs in our trading business, representing around 10% of the shortfall

• Currency loss when the US$ appreciated from MUR 30 to 36 in Q1:2015

Momentum is the name of the game and we need to ensure that the strong momentum continues unabated. In this context, regional expansion and investment in emerging technologies become critical as traditional markets come close to saturation levels. In the face of intensifying competition, profit growth will come from better procurement, best practices and strict management of overheads.

Competition

While competition is critical to our growth and efficiency, the intensity of competition varies within different markets as do products and services offerings. However, in view of our geographic expansion from Southern to Northern Africa, we have started reaching out to some of our direct and indirect competitors – specially those with specialised skill sets – to complement our service offerings in different geographies. While we compete in some geographies, we will cooperate in others to the ultimate benefit of the clients and local economies in terms of technology transfer and knowledge sharing.

The Future

Our outlook on the future is contained in the following sections in more details and has been defined based on our strategic orientation which will re-shape the different areas of our organisation. A reminder of these include our five Strategic themes which are as follows:

Strategic Themes:

• Driving Growth through our African Expansion and investment in Emerging Technologies

• Engaging Customers towards becoming an End-to-End Provider, with cost-effective solutions and exceeding customer expectations

• Empowering our People through Competitive Remuneration and Human Capital Development,

• Enhancing Partnerships by increasing level of business and achieving highest level of Certifications with our business partners

• Embedding Best Practices by implementing relevant Quality Assurance frameworks and ensuring active IP Harvesting in all our operations.

Driving Growth

Growth in Revenue, Gross Margin and Net Profit is critical for our success, specially in the ICT industry. Investment in Research & Innovation, Human Capital Development, Implementing Best Practices and Geographic Expansion require substantial financial resources that are partly dependent on retained earnings and profits. Without these critical sources of capital, it would be impossible for us to ensure cost-effectiveness and exceed customer satisfaction, meet business partner requirements and ensure competitive remuneration.

With any slowdown in the company’s growth momentum posing imminent risk of adverse impact on our medium term future, it was important to carefully identify areas of growth. In most of the markets where we operate, margins in the traditional businesses have come under increasing pressure based on intensifying competition, specially from new entrants. At Anglo African, we have been working very hard at prototyping and industrialising emerging technologies as well as looking for opportunities to expand in new countries.

1. Growth in Revenue

Grow Existing Markets

We continue to push growth in traditional technologies in existing markets, despite pressure on margins, in order to develop economies of scale, while at the same time introducing new services that allow our clients to optimise their operations. Providing end-to-end solutions straddling all our core competencies is now a priority across our strategic accounts.

Grow New Markets

We continue to expand in new countries where we identify competitive gaps or strategic windows of opportunity. In the medium term, additional products and services will complement initial offerings in order to achieve our objective of providing end-to-end solutions to clients. We are also approaching multinational companies [MNCs] that are investing in the continent and are looking for single service providers.

Grow Emerging Technologies

Despite the slow adoption rate, we continue to push emerging technology solutions such as web-based / mobile platforms, Cloud services and the Industrial Internet of Things. We believe that with the increasing penetration of Internet and Smartphones, the rate of adoption will pick up.

2. Growth in Gross Margin

Improved Procurement

The procurement process with our business partners has been reviewed whereby we can expect additional savings on the back of early identification of opportunities and avenues for specialisation, as well as regular review of rebates, grants and other marketing funds.

Emerging technologies

Introduction of emerging technologies in our products and services mix, mostly based on Open Source, allows us to reverse the amounts paid to third parties while also allowing us to build our Intellectual Capital.

3. Growth in Net Profit

Strict Monitoring of Overheads

As the company grows, there is a natural inclination to implement or invest in more systems, processes and controls than is absolutely necessary. However, at Anglo African, as a practice, overheads are carefully monitored, and, unless and until tangible benefits from new Systems and Processes can be identified, these are sent back to the drawing board.

Best Practices

As mentioned above, any introduction of systems and processes is carefully managed and monitored to ensure that they do not become counter-productive by hampering flexibility, creativity and speed to market. Once implemented, they provide savings to the company by allowing our people to do things efficiently.

Engaging Customers

Most of our clients being Listed, Blue Chip or Public Sector companies, we have to go through formal procurement processes and, in a majority of cases, the main determinant of our success is our cost effectiveness. Secondly, customer satisfaction in terms of implementation may be critical, but maintenance and support are equally important. Finally, providing end-to-end solutions that allow the client to deal with one supplier is another significant advantage that we offer to our customers.

1. Cost Effectiveness

Maintaining and enhancing our cost leadership status is one of the main factors of our success and we continue to fight hard to ensure that we are always among the lowest bidders, if not actually the lowest. Our cost competitiveness is driven by better procurement processes, Open Source based solutions and strict control of overheads. Secondly, our team of talented experts also ensures that proposed ICT solutions are optimised, right from the design stage.

2. Customer Satisfaction

We strive hard to maintain a high level of satisfaction in our clients by soliciting their feedback through regular Customer Satisfaction Surveys and attending to any issues without delays. In addition, in order to manage complex Service Level Agreements (SLAs), specially from global clients, a 24×7 Network Operations Centre is now in place for our clients, which allows us to identify issues at a nascent stage.

3. End-to-End Solutions

Most of our clients are facing challenges regarding the size and complexity of the information systems, right from the infrastructure, telecom and application layers to the inherent information security requirements. Customers running large networks or multi-country networks have expressed the need to deal with single suppliers with relevant certifications.

Empowering our People

More than ever before, diversity in talent acquisition and development is now firmly embedded in our DNA. Even though Anglo African has been an equal opportunity employer from inception, our focus on diversity is growing as we enter new countries and discover a wealth of new cultures. While basic Human Capital challenges such as competitive remuneration and talent development remain the same across geographies, these different cultures are, in their own unique ways, transforming Anglo African into a truly learning organisation.

1. Human Capital Development

A number of Human Capital Development programmes assisted by eLearning applications [developed in-house] are being implemented to empower our people – across young graduate recruits, mid-management staff and senior management employees – from both a technical and nontechnical perspective. This thrust starts with basic activities such as an onboarding process for new employees and implementation of performance management KPIs, and goes onto deeper development exercises such as oneon-one discussions of the senior management team with board directors, as well as training of our best-in-class talents at leading education institutions and enrolment for certifications from global technology partners.

2. Competitive Remuneration

We have put in place relevant Human Capital Development programmes across the organisation, covering young graduates as well as experienced managers, to ensure that our medium to long term goals are managed by effective leaders, competently supported by the upcoming generation of managers. However, we acknowledge the need to ensure competitiveness in our remuneration package, both to attract fresh young talent as well as to retain our existing human assets.

In this respect, we have commissioned an external HR consultant, Hay Consulting, to accompany us in this journey by bringing their specialised and independent expertise to bear on this exercise. Our remuneration will consist of an optimum combination of Fixed Pay and Short term incentives based on departmental / individual performance, as well as Long term incentives based on the individual’s track record in the organisation.

It is our strong conviction that this diversity in talent, supported by competitive remuneration and human capital development, will become our single biggest source of competitive advantage in the medium term.

Enhancing Partnerships

Without the support of our business partners, it would be impossible to penetrate Enterprise market segments, especially mission critical verticals such as Telecom and Financials Services. With our verticalisation thrust in mind, it is key for Anglo African to strengthen its strategic partnerships with our global technology partners. In this context, the two main areas of enhancement and upskilling are Sales and Certification.

1. Increasing Sales of Business Partners

Our continued growth in existing markets ensures that we remain a preferred partner for global technology firms. In addition, our expansion in new geographies also brings additional revenues for the firms that accompany us in our growth, allowing us to become their strategic partner. New services and technologies are another focus area that our Engineers are working hard on developing together with our business partners, which also ensures knowledge sharing.

2. Obtaining Relevant Certifications

Certifications are another critical area where partnerships with global technology firms can be enhanced. In the competitive IT landscape today, certain global certifications are a pre-requisite to be able to participate in RFQs and also ensure maintenance and support after winning the contracts. In addition, higher levels of partnership allow both Anglo African and its business partners to propose new products and services to existing clients.

Embedding Best Practices

Best practices are important to comply with Quality of Service parameters specified in our Service Level Agreements, both from a client’s as well as a partner’s perspective. Moreover, some of the verticals that we operate in require their suppliers to comply with QA frameworks. Secondly, best practices also help in cost optimisation by allowing us to avoid reputational and financial risks.

1. Systems and Processes

In additional to basic Quality Assurance (QA) frameworks such as ISO9001, the group has also embarked on adherence with ISO27001 standards that are gaining increasing relevance today, given the risks inherent in the IT Security space. Moreover, the King III code now recommends that IT Governance form part of reporting requirements. In addition, our specific delivery companies are also working on their relevant QA frameworks such as ITIL and CMM.

2. IP Harvesting

Doing business in different countries comes with a number of local challenges that are pertinent to that specific country, whether they are complex cultural dynamics in terms of language, timelines and regulations, or have a bearing on financial management, which in turn has a significant impact on the use and implementation of technology.

We have therefore already started the process of centrally harvesting the different processes discovered or implemented in each country. In the medium term, this IP harvesting shall place us in the position to harmonise the operations of the group in the way that we deliver services to our clients.

strategicmanagementphoto

Management Team

Our people are our greatest assets and endow us with a competitive edge. Without them, we would not be here today and going forward, they have an even more important and challenging role to play. Challenging and exciting times await us as we welcome new cultures in our midst from Southern Africa to Northern Africa further promoting diversity within our group, which is an enormous source of pride for us.

As a responsible organisation, we also go out of our way to recruit fresh graduates, both for the purpose of preparing our next generation of Engineers and Managers, and also as a way for us to give back to the community by providing much needed jobs and training which we believe is the best means of pulling families out of poverty, specially in the geographies where we operate.

Human Capital Development programmes are being integrated throughout the organisation in order to ensure that our team of experienced talents continues to push the limits further and exceed customer expectations while at the same time empowering our young graduate recruits to unleash their creative energy.

Board of Directors

While it is customary to thank the Chairman and Board of Directors in the CEO’s conclusion, in our case, it goes far beyond mere adherence to customs. The Chairman and Board of Directors have really pushed us to the limit of our thought process in transforming our organisation. The management team and our colleagues are now confidently looking at the future of making our Africa Expansion and Emerging Technologies a reality while keeping an eye on our vision. On behalf of all my colleagues, I would like to thank them for this invaluable support!

sanjeev

Sanjeev Vinod Manrakhan
Chief Executive Officer
11 September 2015

Our Performance

Strategy Strategic Theme KPIs 2015 Status 2016 Relevant Capital Relevant Stakeholders Short To Medium Term Focus
Driving Growth International Business Development To expand African operations from 6 to 8 offices 6 ontarget 8 Financial All Ensuring a strong footprint in Southern and Northern Africa
To increase revenue from Africa from 17% to 30% of Group’s Revenue 17% ontarget 30% Financial All Increasing Group’s revenue from Africa to 50% and beyond
Emerging technologies To add at least one new services in each of the traditional core competencies 1 ontarget 5 Intellectual Employees Keeping a competitive edge on traditional technologies by offering new services
To increase Group’s revenue from 10% to 20% 10% ontarget 20% Intellectual Employees Increasing Group’s revenue from Emerging Technologies to 50% and beyond
Engaging Customers Customer Satisfaction To increase Group’s customers satisfaction 91% to 92% 91% workinprogress 92% Social &
Relationship
Customers Achieving the highest levels of customer satisfaction in the markets that we operate
Cost Effectiveness To ensure that Conversion Rate Optimisation reaches 75% N/A behindtarget 75% Social &
Relationship
Customers Decrease the % of RFQ lost based on price
Empowering our People Remuneration With the assistance of Hay Consulting, work towards reaching upper quartile range N/A workinprogress Upper Quartile Human Employees Ensuring that our remuneration to our people remains amongst the best in the industry
Development To ensure all relevant technical and non technical training is provided to reach at least 85% of certifications requirements of Vendors N/A workinprogress 85% Human Employees Ensuring that our engineers have all the relevant sales, pre-sales, implementation and support certifications
Enhancing Partnerships Purchases Increase the purchases contracted to our Business Partners by 10% 30% 10% Human Partners/Employees Becoming a preferred partner to the Business Partners by revenue
Certifications Levels To reach the highest level of certification with at least 4 of our Top 10 Business Partners 2 4 Human Partners/Employees Becoming a preferred partner to the Business Partners by reaching and maintaining highest level of certifications vs competition in the markets that we operate in
Embedding Best Practices Systems and Processes Ensure implementation of at least 2 QA frameworks, CMM3 and ISO 27001 1 2 Intellectual/Human Employees/Partners Implementing relevant QA frameworks to ensure global best practices
IP Harvesting IP Harvesting in Head office and all our subsidiaries 2 4 Intellectual/Human Employees To ensure IP Harvesting across all operations such that lessons learnt in each market are properly harvested and used in all markets

Our Delivery Companies

Data Centre Services

Jumbraj

Jumbraj Khulputeea

General Manager

Our Data Center Services team can help design, supply and implement strategies that meet existing and future demands, virtualizes and optimizes servers, transforms storage capabilities, and addresses “green IT” issues. In addition, being the only ICT company to work with most major vendors in the Data Centre space, our methodologies, tools and an objective / independent mindset help clients choose the right vendors and sourcing options leading to improved performance and higher RoI (thanks to our team of experts certified across a wide spectrum of technologies).

Products and Services

Our IT Infrastructure services provides end to end solutions [including but not limited to design, supply and implementation] within the technology layer with a complete range of platforms from most leading vendors from Servers, with competencies on all major OS platforms such as Intel, Linux, UNIX (AIX, UX, Solaris), Blade; Storage; Database; Virtualisation; Collaborative; Redundancy (BackUp, Clustering and Disaster recovery).

Emerging Technologies

In line with the worldwide trend within the ICT Industry, we have embarked on a transformation process internally to offer alternative solutions in the form of Public, Private and Hybrid Cloud with our strategic partners, in addition to new products in the Database and Other security projects. Finally, we have introduced our 24×7 monitoring centre that will allow us to support clients system remotely.

Network Solutions

Navin

Navin Mautbar

General Manager

Our comprehensive expertise and experience sees Datacom Infrastructure as a platform of most business functions and communications. Our Datacom solutions enable information to flow smoothly and quickly between employees, customers, partners and machines alike. Our flexible methodology and end-to-end approach is tailored to our customer’s needs for full productivity and efficiency.

Products and Services

In our efforts to offer state-of-the-art solutions, we have partnered with leading global vendors that are offering best of breed technology, as acknowledged by industry analysts such as Forrester, Gartner, and more.

Networking Solutions; Wired and Wireless Enterprise Grade Networks

Structured Cabling, Converged Network, Routing & Switching (LAN & WAN), WiFi (WLAN, Hotspot Gateway, HSIA), Network Management System, Load Balancing & WAN Optimisation; Network Security (Firewall & UTM)

Unified Communication (IP Telephony, Presence, Conferencing, Instant Messaging, Web Collaboration, Contact Centre IVR, Unified Messaging, Mobility, Telepresence)

Emerging Technologies

In order to simplify and streamline our clients work load, we are introducing transformational technologies such as IP Centrex, Telemetry and Network Management Systems.

Application & Software

JV

Jessen Valaythen

General Manager

In this ever increasingly competitive landscape, organisations need to dramatically improve their ability to analyse, organise and integrate a wide range of key activities, ranging from Financial, Human Capital, Supply Chain and Asset Management activities in order to match industry best practices, and increase margin efficiency.

Products and Services

In the application and software space, we implement and support ERP Systems [Financials, HR, Supply Chain, Enterprise Asset]; CRM; Business Intelligence; Web Platforms Mobile Applications and IT Security.

Emerging Technologies

Big Data

With the number of softwares available on the market today, both paid and open source, our aim is to identify the ideal application or a combination of applications, which will help our customers in optimizing visiblity on their DATA.

Digital

Digital is a fast moving world, competition is fierce and we need to remain ahead of the lot. Research in new trends, new concepts in the UX/UI environment, and creativity is our main aim.

Devices

DC

Deborah Cathan

Manager

We are an authorised distributor of Smart devices representing multiple brands. We work with major retailers & telecom operators, as well as provide comprehensive expertise in design, supply, implementation, configuration, commissioning and provision of after-sales services of Professional Display Solutions and Signage complete solutions for enterprises.

Products and Services

Our range of products & services encompasses Smartphones & Tablets, Wearables, IoT [Internet of Things/Connected Objects], accessories, as well as Professional Displays from Hotel TVs, Touch Screens to complete Signage solutions along associated hardware and software.

Emerging Technologies

IOT

Our reseach is oriented towards remote controlling devices and sensors, and sending critical alerts to a central location or mobile device based on defined rules.

RFID

Our aim is to come up with a solution to automate manual processes in the field of Inventory Management and Asset Tracking.

RASPBERRY PI

The capability of this device being almost limitless, it gives us the possibility to test application interfacing with the outside world: Motion Detector, Temperature Monitoring, Remote control, Media Player, etc.