INTEGRATED ANNUAL REPORT 2012

Stakeholder relations

The board has the ultimate accountability for stakeholder strategy and engagement, while the responsibility for satisfactory stakeholder relationships vests with every employee in the group, as we recognise that a good reputation is a competitive advantage.

The nature of the relationships with our stakeholders can affect our reputation and therefore our ability to create value. We approach stakeholders with trust and respect and look to them for that same mutual good faith. A broad range of internal and external stakeholders having a material interest in or who are affected by us, have been identified.

We recognise the importance of identifying issues of a shared interest, but also value the opportunity of engagement, as it provides a unique insight into the expectations of each stakeholder group. We have a deliberate and measured approach to interacting with and responding to stakeholders. The process we adopt takes into account the impact that each stakeholder group may have on our business, while the frequency and form of engagement is aligned to its estimated impact.

Some of the initiatives and methods used in the process of engaging with stakeholders comprise face-to-face formal or informal, individual or group meetings (including the annual general meeting); media and stock exchange announcements; presentations; roadshows; conference calls; the Blue Label website (www.bluelabeltelecoms.co.za); investor days; site and trade visits; perception studies and reputation audits; whistle-blowing facilities and formal grievance mechanisms; financial and sustainability reports; newsletters, circulars and e-mail updates; regular customer, business partner and supplier meetings, formal consultations and audit processes; and management and sales conferences. Dialogue, review and feedback is encouraged wherever possible which in turn is presented to Exco for consideration and/or further action.

Stakeholder group

Nature of engagement

Method of engagement

Dialogue process and outcomes

Employees

Ongoing communication with employees covers matters of an operational nature such as new developments, product launches, health and safety initiatives, internal policies and practices such as the ethics hotline, new products, competitions, business initiatives, charitable initiatives, human resource matters and staff related news and regulatory and compliance matters.

Staff meetings, newsletters, posters, e-mail, staff notices posted on notice boards, in canteen and in lifts, lunch and coffee station discussions, management presentations and briefings of performance.

Innovation in our entrepreneurial environment is nurtured, while motivation and values are reinforced in a safe and rewarding environment. Staff performance is reviewed annually with the intention of measuring performance and reviewing salary. It also provides a forum for staff to make recommendations and/ or requests.

Blue Label also holds an annual conference attended by senior management. The purpose of the conference is to obtain input and feedback from attendees on strategic and common operational matters. Each segment hosts its own management and strategy conference, held at least once a year.

Discussion groups, breakaway sessions, motivational speakers.

Providers of capital, including shareholders, institutional and retail investors and financial analysts

Engagement includes ongoing and/or ad hoc meetings with top management and often involves presentations covering financial performance of the group, overview of strategic direction, and discussion of the investment proposition. Visits to the Demonstration Room at No 75 Grayston Drive and visits to customer’s sites are arranged on request.

Names of individuals from this stakeholder group and their contact details are registered on the Blue Label investor database.

Integrated annual report and annual general meeting.

Press announcements of interim and year end results.

SENS announcements via the JSE.

Face to face meetings, group meetings, conference and video conference calls. Speaker at investor conferences and workshops.

Investor alerts are e-mailed after website registration. See detailed typical annual calendar programme below.

To address this stakeholder group’s request to increase its understanding of the business model, its products and services, management is available to take meetings and conference calls throughout the year, subject to close period dates. Presentations are posted on the company’s website. The company’s Demonstration Room, at which transactions are simulated on various types of terminals, remains popular with visitors, with over 50 guests from this stakeholder group hosted in the review year.

Engagement programme

Typical investor relations and media engagement programme of activities for a calendar year include:

Results announcement for the year ended 31 May released on SENS and posted to website

Dividend declared

Dividend paid

Results presentation to market – Johannesburg and webcast, materials posted to website

Results roadshow to institutional investors and sellside analysts – SA

Results roadshow to institutional investors and sellside analysts – UK and USA

Integrated annual report posted to website and notice of annual general meeting posted to shareholders

Annual general meeting

Interim results announcement for the six months ended 30 November released on SENS and posted to website

Conference call by management to update market on specific activities/operations

Participation at investor conferences

Site visits

Top management engages investors, analysts, media

Close period

Stakeholder group	Nature of engagement	Method of engagement	Dialogue process and outcomes
Journalists, reporters, editors and other members of the media	Announcements of activities and events in the group, including the release of financial information twice a year, are communicated timeously to the financial media, trade press and other interested media registered on the Blue Label media database. Briefings to media are held at the interim and full year results, followed by Q&A. One-on-one interviews are conducted on radio, TV and with print journalists and editors.	News releases are distributed to media and news services.	To raise this stakeholder group’s interest and awareness of our business, products and services, a number of media site and trade visits, including the Demonstration Room, were held during the year.
Customers	The group’s customer base comprises corporate clients, chainstores, large independent retail clients, wholesale/cash-andcarry stores, mom & pop stores and petroleum forecourts. Engagement involves sharing information on new products, market trends, business queries, device installations, marketing, Blu Approved branding, maintenance and support and other growth opportunities. Senior management liaises regularly with their counterparts at customers and suppliers, and in so doing, have built long-term relationships furthering growth opportunities.	A dedicated, national helpdesk operating daily. from 07:00 to 21:00 with a team of customer relationship and technical support consultants. Face-to-face formal and informal meetings, and formal consultation. The company has a CRM system, with dedicated CRCs, to enhance its customer engagement.	Price and value for money drive this stakeholder group. FAQs by customers usually involve technical matters or account queries, so it’s essential that these are expeditiously resolved to impart a greater sense of value to the customer. A call out is logged for technical matters and a technician will visit the site within 24 to 48 hours. Account queries needing escalation are dealt with by a CRC who will visit the merchant. The Contact Centre sends regular updates to the merchant base through sms and e-mail communication. CRCs and Regional Managers maintain good relationships through a set call cycle to ensure open communication and updates on new product offerings. Support is also provided for point of sale material, branding, minor repairs and maintenance and a key focus is given to up-sell and cross-sell opportunities within the group’s listed products.
Business partners and suppliers	The relationships with business partners such as Vodacom, MTN, Cell C, Telkom, Eskom, municipalities, utilities and parastatals, and service providers, among others, are managed in terms of distributor and/or dealer agreements. Relationship managers are appointed to each partner to provide a single and dedicated point of contact. Suppliers are subjected to a formal procurement process, when issues such as quality of product, creditworthiness and B-BBEE status are confirmed prior to their appointment. Suppliers of services are, if appropriate, initially engaged through a tender process and where successful, agreements are concluded. The majority of the group’s goods and services are procured from locally based suppliers.	Distributor and/or dealer agreements. Face-to-face formal and informal meetings. Site visits are held on request.	We recognise that we need to work cooperatively with this stakeholder group to ensure quality and value for money products and services. Matters raised pertain mostly to technical and operational issues, which are resolved timeously to ensure smooth service delivery.
Communities and educational institutions	In deepening our understanding of the interests of the community in which we operate, while enhancing trust and relationships, the TPC Community Channel specialises in the development and empowerment of broad-based communities through the deployment of mobile technology and products. The community channel aims not only to distribute the group’s products more widely but also to create job opportunities for the members of the communities and to share a portion of the revenues earned with these communities. Senior executives, like the group company secretary and the head of investor and media relations, also engage with the business community on a regular basis. Senior executives, like the group company secretary and the head of investor and media relations, also engage with the business community on a regular basis. Senior executives, including the joint CEO’s, are involved in collaborative projects with the Gordon Institute of Business Science (GIBS) and the Milpark Business School’s MBA programmes. The joint chief executive officers are regularly recognised for their contributions to the community, as detailed in each person’s biography on pages 22 and 23.	Face-to-face formal and informal meetings and forums. Training and workshops. Outreach programmes as requested. Presentation at conferences, participation in panel and round-table discussions. Address public conferences, round-table sessions on governance and sustainability. Frequent engagement with lecturers and students in formal and informal settings. Case studies assist the company and the community in better understanding achievements and failures.	In support of contributing responsibly to broader societal issues, the communities in which the TPC Community Channel operates, are concerned about the upliftment of their community, the enhancement of skills and the delivery of services in their, mostly rural, areas. This concern is directly addressed by the Community Channel, as it focuses on providing services to these communities as well as creating job opportunities and economic upliftment. This provides extra-mural stimulus for staff and enables them to extend their networks. This enables the group to gain quick access to talented individuals, while gaining direct line of sight into academia, where it may be able to offer and receive learnings. This year Blue Label was profiled in the book New Markets, New Mindsets, by Tashmia Ishmail and Nicola Kleyn.
Government, regulatory bodies and the public sector	The group regularly engages government (at national and local level), parastatals and other public organisations through various tender processes. From a compliance perspective, the completion and rendition of statutory returns are undertaken diligently. Blue Label is not a member of any industry association and/ or national/international advocacy organisation in which the company has positions in governance bodies, participates in projects or committees or provides substantive funding.	Formal personal meetings, written communications, and tender processes.	Our good reputation is our licence to operate and we therefore have to uphold our stature with all stakeholders. During the year under review no prosecutions or fines were brought against the group for the contravention or non-compliance of any laws or regulations.