Value Creation Model

Our value creation strategy and business model are aligned to the vision of the Bafokeng people and our role as a responsible corporate citizen.

Our shareholder and our investors are among the primary stakeholders groups who influence the development of our strategy and business model.

Our Investment Approach

The responsibilities inherent in the stewardship of the Nation’s wealth inform everything that we do. Our investment philosophy is based on long-term steady growth. We aim to deliver consistent dividends and a sustainable yield from assets that offer strong capital growth. We apply set criteria to our investment decisions and seek to invest in businesses with established track records, dedicated management and competitive sustainable yield from assets that offer strong capital growth. We apply set criteria to our investment decisions and seek to invest in businesses with established track records, dedicated management and competitive advantage. We are firmly focused on good governance and sustainability for ourselves and our investee companies. Our robust approach to governance reflects traditional Bafokeng beliefs and practices that span centuries.

We exist to fund the development needs of the Bafokeng people, our investment portfolio is not only selected based on the social impact we might deliver. Equally, we have positioned ourselves as a robust commercial entity that seeks to be competitive through a diversified portfolio.

Our Investment philosophy is based on four pillars:

• Growing and protecting the wealth of RBN – We invest in assets that have potential capital growth and steady cash flows
• A diversified portfolio as risk mitigation – We invest in diverse sectors and geographies
• Driving value – We take significant equity stakes, which allow us to be influential in our investee companies
• Realising value – We maximise our returns by exploring optimum exit strategies

Our Strategic Outlook

Our investment strategy is aimed at preserving and adding value to the RBN assets to ensure capital returns and maximised dividend flow. We achieve this through the acquisition of significant equity stakes in high-quality companies in a diverse range of sectors. Diversification of our portfolio over the past few years, and going forward, is critical to our sustainability and achieving our mandate.

In assessing investment risks, we consider all aspects including economic, social and governance (ESG) factors guided by RBH’s Policy for Sustainable Responsible Investment and Portfolio Management. We monitor financial and non-financial risks through active ownership, which includes board representation. A number of investment objectives, beliefs and principles are in place to guide our approach to investment. Among these, that the base currency of the portfolio shall be South African Rand (ZAR). As such, the portfolio aims to deliver a return in excess of South African inflation, consistent with reasonable expectations from a diversified portfolio of risk assets. Our extensive balance sheet gives us the necessary scale to invest in leading businesses with established track records.