791 learnerships*
* of which 68% was awarded
to black employees
R80.7 million
invested in training and development
125 000
training hours
The group uses the services of external agencies to assist with the continuous training, testing and managing
of HIV/Aids-related issues.
Despite the physical nature of most positions in the industrial sector, the group has 106 EMPLOYEES with disabilities.
R7.7 million
contribution to socio-economic development
Revenue per division
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36% Contractual logistics

12% Passenger transport

18% Chemical

17% Integrated timber

9% Automotive components

8% Integrated bedding

Integrated timber
Integrated bedding
Automotive components
Passenger transport
Contractual logistics
1 376
1 497
2 559
3 719
9 060
Employee splits
Blackˆ employees as a percentage, per category, of total workforce:
Top management
Senior management
Middle management
Junior management
ˆ Black includes African, Coloured and Indian






Divisional accreditation˚

USCS, ISO 9001 (all fuel and chemical sites/7 mining sites), ISO 14001 (all fuel and chemical sites/7 mining sites),
OHSAS 18001 (all fuel and chemical sites/7 mining sites), NOSA CNB 253 Integrated System (11 agricultural sites),
Road Traffic Management System (RTMS) (1 agricultural and 1 mining site)

PG Bison ISO 9000, ISO 14000, ISO 18000, SABS

Hosaf ISO 9001:2008, Feltex ISO 9001, ISO 14001, OHSAS 18001, TS 16469, Cisema China Certification, Vitafoam SANS 883:2009 (PU foam), SANS 12911-2 (mattress), SANS 1419:2009 (carpet underlays), DesleeMattex ISO 9001, Jordan ISO 9001:2008, SANS 421:2008,
United Fram ISO 9001:2008, Wayne Plastics ISO 9001:2008, Glodina ISO 9001, ISO 14001, OHSAS 18001

˚ ISO, NOSA, OHSAS and RTMS systems and accreditations are in place in 80% of Unitrans’ specialist logistics operations
and in more than 80% of the group’s manufacturing facilities.

Value added statement
30 June 2016

Turnover 16 232 15 664
Cost of products and services (9 223) (10 141)
Value added 7 009 5 523
OPEX before working capital changes 2 858 2 477
Salaries & wages 3 700 3 173
Turnover (16 232) (15 664)
Inventories (73) 1
VAT payable
Accounts payable 524 (128)
Cost of products and services (9 223) (10 141)
Income from investments 68 55
Salaries & wages 3 700 3 173
Interest paid 357 344
Taxation paid 482 361
Dividends and capital distribution paid 385 308
Re-invested 2 153 1 392
  7 077 5 578
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52% Salaries and wages

5% Interest paid

7% Taxation paid

5% Dividends and capital distribution paid

31% Re-invested

Investing in people is key to the group’s efforts to attract and retain competent staff to achieve its strategic objectives.

Human resources (HR) and industrial relations activities of all group divisions have been structured to promote effective employee relations. Investing in people is key to the group’s efforts to attract and retain competent staff to achieve its strategic objectives.

Operating decisions are made at appropriate levels, with divisional HR committees being responsible for the development of their people.

Management, through divisional HR committees, considers and advises on employee remuneration, medical and retirement benefits, employment equity/equal opportunities, black economic empowerment, succession planning, training and development, industrial relations and performance management.

Training and development

An appropriately skilled workforce is central to the achievement of the strategic goals of the group. Targeted recruitment and remuneration practices, coupled with effective performance and talent management, play an integral part in ensuring access to a competent workforce at all levels. Yet, the need for managerial skills, particularly in the technical and operational disciplines, is ongoing.

Employees are informed of, and have equitable access to, relevant training and development opportunities. Divisional targets for employee development are incorporated into the KPAs of each divisional chief executive officer, who is ultimately responsible for the training and development of their divisional employees.

Managers are encouraged to participate in management development programmes, where available. Trainee programmes are sponsored by the group to assist with meeting future skills requirements. The development needs of high-performing individuals are receiving special attention among all race groups.

To support these programmes, strong partnerships have been formed with relevant educational institutions and Sector Education and Training Authorities (SETAs).

Employee relations


The group’s code of ethics commits it to the highest standards of integrity, behaviour and ethics when dealing with stakeholders. Executive management, directors and staff are expected to observe their ethical and fiduciary obligations to ensure that the group’s businesses are conducted by fair and commercially competitive practices.

The group has established various confidential whistle-blowing facilities, using dedicated hotlines for the reporting of suspected frauds or irregularities

There were no material incidences of non-compliance with the code of ethics or fines or prosecutions during the period under review.

Human rights

KAP has incorporated human rights principles into its practices, which are an integral part of its code of ethics and which support its commitment to acting equitably and honestly in the conduct of its business.

The group supports the 10 principles of the UN Global Compact, as described by the Companies Act, which places legal responsibility on companies to take cognisance of all aspects of human rights. Initial steps to review and report on human rights principles have been put in place during the year and a full review of all divisions is expected by the end of the next reporting period.

Labour practices, trade unions and employee participation

All divisions have disciplinary policies, grievance codes and procedures in place, which are communicated appropriately. Instances of misconduct are addressed by implementing the provisions of disciplinary codes, which allow for corrective behaviour as a first step towards resolving transgressions. The codes have been drawn up in order to apply discipline in a fair and consistent manner, in line with the relevant labour legislation. If employees feel that they have been treated unjustly, they can exercise their rights in terms of the particular division’s internal appeal procedure and the relevant legislation.

Circumstances and legislation vary from country to country, which calls for some flexibility in the group’s relationship philosophy. All employees are managed according to the procedures stipulated in the labour laws of each operating country.

Many of the group’s employees form part of organised labour groups or unions.
A large portion (more than 40% on average) of the workforce is unionised. Where required, we have concluded recognition agreements with majority representative unions within the divisional business units.

During the reporting period there was labour action in the logistics division and this had a negative effect on the performance of both USCS and Unitrans Passenger. The automotive component division also experienced an industry strike, which has been resolved.

Health and safety

A key objective for the group is the creation and maintenance of an injury-free and safe workplace. Health and safety are managed through committees by divisional, and regional health and safety managers, risk managers and occupational health and safety representatives. External consultants and administrators are appointed when specialised expertise is required or when audits are conducted.

Regular hazard identification and risk assessments, internal audits, safety training, management reviews and third-party audits are undertaken.

All new operational employees receive health and safety induction training, with regular and ongoing reviews and training. In the logistics businesses, where operational risks could have a direct public impact, annual medical assessment of our drivers are compulsory, and regular training includes driver training, the conveyance of dangerous goods by road, safe work procedures, defensive driving training and fatigue management.

Training also includes first aid, firefighting and general safety awareness.

Integrated computerised safety, health, environmental and quality (SHEQ) management systems are in place, and assist greatly in the compilation of accurate and timeous SHEQ reports.

In-depth investigations are conducted into all incidents, and mitigation procedures are continuously reviewed.

We strive to go beyond mere compliance with relevant legislation. Accordingly, most of the divisions have been certified with international and national standards. Regular supplier and standard audits are carried out at these certified sites to ensure the retention of certifications. None of the group’s divisions failed certification compliance audits during the year.


HIV/Aids is addressed in divisional policies, and divisions have holistic and comprehensive management programmes in place to promote awareness, prevention, treatment and support. Policies cover aspects of confidentiality, non-discrimination and commitment to implement programmes that will be relevant and of value to that division and its employees.

Confidentiality of an individual’s HIV/Aids status is particularly important in an environment where factors such as social stigma, lack of awareness and low socio-economic environments act as barriers to testing. Data regarding HIV/Aids infection is not made available. As an example, drivers can do voluntary assessments at rest stops along all South African main road routes.

To ensure confidentiality and privacy, as well as the most appropriate medical and clinical expertise when treating HIV-positive and Aids patients, the group makes use of external service providers for certain aspects of workplace programmes. The number of employees who participate in voluntary testing is encouraging. To manage personal risk, employees are encouraged to ascertain their status through voluntary counselling and testing.

Broad-based black economic
empowerment (B-BBEE)

The group observes and proactively aligns day-to-day business practices in South Africa with the broad-based black economic empowerment (B-BBEE) codes. Commitment to the principles of B-BBEE, to make it real and tangible for the group and its employees, is a key priority.

In accordance with its strategic transformation objectives, Steinhoff International Holdings Limited, KAP’s majority shareholder, has recognised the importance of affording its South African employees an opportunity to participate in the success of its businesses.

Approximately 12 300 KAP Industrial employees participate at various levels in a Steinhoff International share ownership scheme, and collectively hold more than
40 million Steinhoff shares with the associated funding.

Products and services

We are committed to providing our customers with responsible and sustainable solutions when choosing our products and services. Customer needs are mainly focused on efficiency, cost saving and the implementation of sustainable long-term solutions.

The availability of raw materials is an aspect that receives great attention and we use resources responsibly, providing customers with quality, sustainable and value products and services.

In our supply chain solutions and passenger divisions, great care is taken to ensure that all safety requirements regarding public transportation and road safety are adhered to and are supported by divisional policies and procedures.

Community relations and CSI

Throughout the group, divisions are involved in social projects that are aligned with their strategies. Support is usually given to organisations within close proximity to the operations, to make a difference in such communities.

Socio-economic development

The most outstanding example of this is Ugie – a small town nestled in the mountains of the northern part of the Eastern Cape. The investment and subsequent progress of the PG Bison particleboard manufacturing plant and the Eastern Cape Forest (ECF) cluster in Ugie have substantially benefited, directly and indirectly, Ugie and its surrounding communities.

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