Bell Equipment : Integrated Report 2021 Full glossy in PDF format

STRONG RELIABLE MACHINES STRONG RELIABLE SUPPORT

2021

BELL EQUIPMENT LIMITED INTEGRATED ANNUAL REPORT

Contents

Introducing the integrated annual report ..................... ifc

OVERVIEW

What we do .......................................................................... 2

Our value creation process ................................................ 2

Our growth path .................................................................. 4

Where we are ....................................................................... 6

Our business model and products ..................................... 9

Strategic overview and risk management ..................... 18

Global corporate structure ............................................... 26

Board of directors ............................................................... 28

Group executive committee ............................................ 30

PERFORMANCE REVIEW

Joint report by the chairman and chief executive ....... 32

Finance director's report .................................................. 36

Corporate governance report ........................................ 39

Social, ethics and transformation committee report .... 48

Remuneration committee report .................................... 51

Stakeholder relations report incorporating

sustainability elements ...................................................... 65

SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS

Summarised consolidated statement of

financial position ................................................................ 84

Summarised consolidated statement of profit or loss .... 85

Summarised consolidated statement of

profit or loss and other comprehensive income ............ 86

Summarised consolidated statement of cash flows ...... 87

Summarised consolidated statement of

changes in equity .............................................................. 88

Notes to the summarised consolidated results ............... 89

SHAREHOLDER INFORMATION

Shareholder analysis ........................................................ 104

Shareholder diary ............................................................ 105

Glossary ............................................................................. 106

Notice of annual general meeting ................................ 108 Form of proxy ......................................................... attached Electronic participation and verification application form ................................................... attached Corporate information .................................................... ibc

Introducing the integrated annual report

This integrated annual report, which is the group's primary reporting medium, covers the financial year 1 January 2021 to 31 December 2021. Against the background of managing the ongoing impact of COVID-19 on the group's business, Bell Equipment's 2021 integrated report aims to demonstrate in a balanced way how the group has continued to create value for shareholders during these uncertain times while meeting its responsibilities towards its other stakeholders.

The report should be read in conjunction with the full audited consolidated financial statements. The full audited consolidated financial statements, which are available on request from the company secretary at the group's registered office and online, provide a comprehensive insight into the financial position of the group for the year under review.

The financial information in this report follows IFRS and is examined by independent auditors in conformity with International Standards on Auditing. The following main codes and standards were considered in providing information in the report:

• • the Companies Act

• • the JSE Listings Requirements

• • King IV

• • The IIRC's International Framework

The scope of this report includes all of Bell Equipment's subsidiaries and operating regions. Bell Equipment continues to embed management, sustainability and governance related reporting systems and processes in the operations. The six capitals, namely human, intellectual, social and relationship, manufactured, environmental and financial, are reported on and the content focuses on the material issues that have occurred during the financial reporting period and in certain instances up to the date of finalisation of this report.

Bell applies the principle of materiality in determining the disclosures of the integrated annual report. The process of identifying and prioritising the material matters for inclusion in this report involved reviewing:

• • its strategy

• • risks and risk management process

• • stakeholders and

• • the six capitals.

Bell determines its material matters through the following process:

The process of identifying potential material matters is a group wide responsibility requiring input from all business units and operations, and taking into account input from stakeholders.

Issues are prioritised according to operational and strategic impact on the sustainability of the business.

GEC assumes responsibility for approval of the material matters before endorsement by the relevant committees and finally the board.

The material matters are applied to inform on Bell Equipment's long term business strategies and targets as well as short to medium term business plans.

This is undertaken through the execution of the group's strategy.

Areas of potential impact that are assessed include both external and internal matters, both positive and negative, that substantively affect the group's ablity to deliver on its strategy

In order to achieve the group's strategic objectives and manage its risks, these material issues are continuously monitored by Bell Equipment and its board, as the governing body.

Assurance in relation to its financial statements continues to be provided by the independent external auditor, Deloitte & Touche. Bell Equipment applies the combined assurance model which seeks to optimise the assurance obtained from management and internal and external assurance providers. The integrated annual report has been reviewed by the board but has not been independently assured. The sustainability information in the report has been approved by both the board's social, ethics and transformation committee and the risk and sustainability committee. Accredited service providers have determined selected non financial performance metrics, including market share statistics and the group's BBBEE rating.

Management has verified the processes for measuring all other non financial information.

The group continues to maintain internal accounting and administrative control systems and procedures designed to provide assurance that assets are safeguarded and that transactions are executed and recorded in accordance with the group's policies and procedures. Sound corporate governance practices and an ethical culture form the foundation for sustainable value creation for shareholders and other stakeholders. Good governance supports value creation through improved reporting to shareholders, greater transparency and disclosure.

Forward looking information focuses on the strategic objectives, operating plans and prospects for the 2022 financial year as well as the group's medium term financial targets. Investors are cautioned not to place undue reliance on any forward looking statements contained herein, as they have not been reviewed or reported on by the group's external auditors.

Whereas the group has made every effort to accurately and reasonably ensure the accuracy and completeness of the information contained within this integrated annual report, any forward looking statements speak only as at the date that they are made; the actual results may vary materially from those expressed or implied; and the group undertakes no obligation to publicly update or alter these or to release revisions after the date of publication of this integrated annual report.

Board approval

The board is responsible for ensuring the integrity of the integrated annual report. The directors have collectively assessed the content and confirm the report addresses all material issues, the integrated performance and the group's strategy.

The audit committee has oversight responsibility for integrated reporting and recommended the report for approval by the directors.

The 2021 integrated annual report was unanimously approved by the board on 24 March 2022.

GW Bell

Non executive chairman

24 March 2022

L Goosen Chief executive

We welcome stakeholders' feedback on our reporting, which can be sent [e-mail].

OVERVIEW

What we do

Together the Bell Equipment group of companies manufacture, distribute, export, and support a wide range of heavy equipment on a global scale to the mining, construction, quarrying, agriculture, forestry, and waste handling industries.

Our corporate culture

Strong family values of integrity, honesty, accountability, and respect have been ingrained in Bell Equipment since Irvine Bell founded the company in 1954 as a small engineering and agricultural equipment repair service in northern KwaZulu-Natal. He was joined in the business by his wife Eunice, brother Rob and brother in law Malcolm Campbell. Today the family ethos continues with employees and customers globally valued as part of the extended Bell family, creating a unique and healthy working environment.

Our value creation process

Bell believes in the philosophy that if its customers succeed so will the group and it creates value by striving to give customers the best ownership experience.

Strategies and daily operations are focused on building long term relationships that will, in turn, generate continuous machinery and aftermarket sales.

This is achieved by listening to our customers' needs, developing relevant equipment and aftermarket solutions, manufacturingAs a South African company that is listed on the JSE and employs locally, Bell Equipment is an integral part of the communities in which it operates and takes its responsibilities as a corporate citizen seriously. The group purchases from local suppliers wherever possible and invests in meaningful outreach opportunities with a particular focus on education, training, and development both internally and externally.

quality products and, above all, ensuring that stakeholders throughout our value creation process receive meaningful support to sustain our business.

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