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AFRICAN DAWN ANNUAL REPORT 2020

Application of principles in King IV™ continued

Strategy, Performance and Reporting

Strategy and performance

Principle 4: The board should appreciate that the company’s core purpose, its risks and opportunities, strategy, business model,
performance and sustainable development are all inseparable elements of the value creation process.
In alignment with the purpose of Afdawn, the board approves the Company’s strategy, value drivers and legitimate expectations of its
stakeholders ensuring the business remains sustainable after considering all risk factors.
The board oversees and monitors the implementation and execution by management of the policies that drive strategy and ensures that the
Company accounts for its performance through transparent reporting and disclosures.
Reporting

Principle 5: The board should ensure that reports issued by the company enable stakeholders to make informed assessments of the
company’s performance, and its short, medium and long-term prospects.

The annual report provides a consolidated view of Afdawns’ financial, social and environmental performance, prospects and strategy in the
context of our operating environment to enable stakeholders to make an informed assessment of the group’s value creation in the short,
medium and long-term.
The board, through its Audit and Risk Committee, ensures that the necessary controls are in place to verify and safeguard the integrity of
reports and other disclosures. Afdawn complies with all required disclosures.
The Audit and Risk Committee oversees the reporting process and reviews the audited financial statements.

Governance Structures and Delegation

Primary role and responsibilities of the board

Principle 6: The board should serve as the focal point and custodian of corporate governance in the company.
The board of Afdawn is committed to the highest standards of corporate governance. Its role and responsibilities and the way it executes its
duties and decision-making are set out in the board charter and terms of reference of its committees.
Through the delegations of authority, the board has set the direction and parameters for the powers which are to be reserved for itself, and
those that are to be delegated to management via the Chief Executive Officer.
Composition of the board

Principle 7: The board should comprise the appropriate balance of knowledge, skills, experience, diversity and independence for it to
discharge its governance role and responsibilities objectively and effectively.

The board aims to ensure that its composition comprises a majority of independent non-executive directors. When considering appointments
or re-election of directors the board gives consideration to the knowledge, skills and resources required for conducting the business as well as
considering its size, diversity and demographics to ensure effectiveness.

The board has set gender and race diversity targets that it will seek to achieve as vacancies occur on the board.

The board is satisfied that there is a balance of skills, experience, independence, diversity and knowledge required to discharge its role and
responsibilities.

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