FINANCIAL CAPITAL
As an investment holding company, we consider capital allocation our most important function. Our investment strategy and capital allocation model aim to deliver sustainable long-term growth and fair short-term dividend pay-outs for our shareholders, while simultaneously accelerate enterprise and economic development in South Africa.
During the year, we sought to maximise value-creation by injecting financial capital to strengthen our stake in thriving investments such as Headsets Solutions and Puleng Technologies, where we increased our ownership to 76% and 100% respectively. This additional investment will allow the subsidiary businesses to fund organic expansion and operational requirements, while entrenching AYO’s leadership position in the fields of unified communication and cyber security and reinforcing shareholders’ value.
GOALS
IMPACT ON SDGs
KEY INITIATIVES
OPERATIONAL ACHIEVEMENTS
WAY FORWARD
Considered investment into strategically identified acquisition targets to diversify AYO’s portfolio into emerging technologies to secure medium and long-term sustainable growth.
Money market investment to safeguard financial capital gains in the short-term, while providing sound level of income, high liquidity and low risk in this period of reduced interest earning potential.
Entrepreneurship development expenditure into small and medium enterprises for improved B-BBEE scoring and SDGs advancement.
MANUFACTURED CAPITAL
AYO aims to enable its clients and beneficiaries to maintain and where possible, enhance their manufactured capital assets, particularly technological infrastructure, rather than deplete or degrade them. We seek to continuously innovate our hardware, technologies and business processes to allow customer organisations to meet their growth aspirations by making minimum use of financial capital and natural resources and maximum use of human skills and involvement.
Our leasing-based revenue models provide customers with access to comprehensive technological inventories without an initial capital outlay requirement, thus not compromising their operating cash flows. On the other hand, our recently introduced cloud and online based platforms serve to strengthen our client partnerships, while providing the Group with sustainable annuity income.
As a stellar corporate citizen, AYO invests extensively in technology infrastructure in the educational sector, building classrooms and science labs and providing laptops, tablets and smart boards to schools and organisations across the country. Nurturing and supporting South Africa’s future scientists and business leaders, is our investment in a better tomorrow.
GOALS
IMPACT ON SDGs
KEY INITIATIVES
OPERATIONAL ACHIEVEMENTS
WAY FORWARD
Continued optimisation of leasebased revenue models for enhanced customer service.
Pivoting of existing technology offerings to diversified industries and clients for organic growth, e.g. modifications to sovereign tracking solutions for the logistics industry or publishing technologies for the sport market.
Further development in educational infrastructure as the focus of our CSI investment strategy.
INTELECTUAL CAPITAL
Innovation doesn’t simply drive growth. In the 21st century, innovation has become a prerequisite for businesses to remain relevant, competitive and sustainable. At AYO, we strive to maximise our intellectual capital, proprietary developed technologies and key international digital trends, to empower our clients’ leadership positioning, transform their industries and advance life, business and economics for a better South Africa.
Our deep understanding of and decades-long engagement with the healthcare industry, put us the forefront of the fight against COVID-19 in 2020 and enabled us to play a critical role in this important crusade. Our cyber security know-how and experience empowered numerous client organisations to rapidly adopt digital routes-to-market and ensured business continuity while protecting the integrity of client, user and organisational data.
Building on our culture of continued innovation and focus on sustainability, we are moving beyond purely technological services and solutions into green energy and materials for a prosperous future.
GOALS
IMPACT ON SDGs
KEY INITIATIVES
OPERATIONAL ACHIEVEMENTS
WAY FORWARD
2021 will see further collaboration amongst our operating units to enable cross-industry innovation and services pivoting to drive Group-wide growth. Strategic investments in innovations and technologies that have the potential to transform industries and disrupt the way consumers work, play and live. Concerted focus on environmentally friendly technologies for positive global impact and a healthy planet for future generations.
HUMAN CAPITAL
Our aspiration to be the employer of choice in the South African competitive talent marketplace is driven by a strong commitment to our people. We embrace diversity and acknowledge the positive contribution of a multi-skilled, multi-cultural team on our ability to deliver sustainable business growth and promote the advancement of UN SDGs. We whole-heartedly support the professional as well as personal development of our employees and continuously facilitate formal and informal engagement sessions to entrench an inclusive corporate culture. Our total rewards philosophy incorporates a unique combination of career and growth opportunities, recognition, culture and values, compensation, benefits and work environment to motivate, engage and inspire the best available talent.
Beyond our own staff, we believe education is the ultimate solution to alleviate poverty, reduce inequality and promote economic growth. We strive to demonstrate, rather than articulate, our commitment to our country’s youth and thus, make generous investments in the educational development of tomorrow’s leaders.
GOALS
IMPACT ON SDGs
KEY INITIATIVES
OPERATIONAL ACHIEVEMENTS
WAY FORWARD
In 2021 and beyond, AYO will continue to invest time, support and resources in the development of our staff to uphold our highly engaged and motivated team and simultaneously address the business’ succession planning objectives.
A medium-term plan has been developed for SETA accreditation of AYO Academy to adequately address our business needs as well as the wide skills scarcity gap in South Africa.
Our social impact investments will continue to focus on education as an enabler for our marginalised youth into economic inclusivity, diminution of inequality and a conduit to decent work opportunities and economic growth.
ENVIRONMENTAL CAPITAL
Acting responsibly towards our environment and the communities we operate in is embedded in our core values. Our philosophy of minimising environmental impact and promoting resource efficiency guides our investment decisions. Maintaining sustainable operations and continually improving our processes help us minimise our environmental footprint.
We are cognisant of the fact that increased use of technology brings about an increase in energy demand. Global electricity consumption has more than doubled in the last decade in order to power billions of devices, data centres and technology infrastructure. Future developments, such as digital coin mining and electric vehicle penetration, are expected to put further pressure on energy demand and exacerbate the need for clean energy.
As an industry leader and responsible corporate citizen, AYO embraces this opportunity to contribute to a greener economy and create inclusive economic prospects for all groups of society while minimising the harmful environmental effects.
GOALS
IMPACT ON SDGs
KEY INITIATIVES
OPERATIONAL ACHIEVEMENTS
WAY FORWARD
Given the increasing importance and need for environmentally sound technologies, AYO will actively pursue investments in technology-based businesses positioned to combat climate change and deliver sustainable energy, farming and industrial solutions.
We will further develop and pivot our capabilities in tracking technologies to address the needs of the logistics industry and wild-life conservation in a cost-effective and environmentally friendly manner.
We will continue to lead by example by empowering our staff, partners and investee businesses to reduce their consumption of electricity, paper and water and together contribute to a healthier, more sustainable planet for future generations.
SOCIAL AND RELATIONSHIP CAPITAL
Sustainable business is built on a foundation of long-term relationships with customers, suppliers, partners, regulators and industry peers. We recognise the importance of a stellar corporate image and positive peer engagements on our ability to create stakeholder value, and have placed renewed emphasis on brand positioning activities during the reporting period.
The African philosophy of Ubuntu, “we are who we are through each other”, is central to our own core principles and we relentlessly strive to uplift and support the communities we operate in. Traditionally, our outreach projects have focused on education and improving access to employment opportunities to underprivileged and vulnerable groups in our society. However, the COVID-19 pandemic in 2020 exacerbated the plight of our beneficiaries, bringing to the forefront pressing concerns for even the most basic of human needs – the need for food and essential healthcare.
AYO quickly stepped up to the plate and boosted its comprehensive social responsibility programmes by implementing additional interventions delivering food, essential personal protective equipment and consumables and tools to assist our vulnerable communities in this challenging period.
GOALS
IMPACT ON SDGs
KEY INITIATIVES
OPERATIONAL ACHIEVEMENTS
WAY FORWARD
AYO will continue to focus on nurturing its peer relationships in 2021 and beyond as we acknowledge and value the powerful impact of positive brand image on our operations. Becoming an admired and respected industry leader is a long-term strategic focus for the business as it will enable future value-creation. Thus, we will invest considerable energy and effort into building our most valuable asset – our brand.
The upliftment and education of the South African community is, and has always been, at the core of our business. Our strategic CSI initiatives have empowered thousands of marginalised beneficiaries over the years and will continue to do so in future. Our focus going forward in this respect, is to raise awareness of the social investment projects we drive so they can become even more accessible to potential beneficiaries and serve as an example and motivation to our industry peers.
