Report purpose and audience

Tiger Brands’ integrated annual report (IR) is our primary annual report. Written primarily for investors and other providers of financial capital, the report is intended to be of value to any stakeholder who has an interest in our ability to create value over the short, medium and long term. The report reviews Tiger Brands’ business model and strategy, the risks and opportunities in our operating environment, and our operational and governance performance for the financial year ended 30 September 2022.

By providing a frank review of our strategy, governance and performance, the report intends to help report-users to assess whether Tiger Brands is a good long-term investment. The IR should be read in conjunction with our supplementary sustainability report (SR) and our annual financial statements (AFS), all of which are available on our website:

www.tigerbrands.com

Reporting frameworks

Our reporting process has been guided by the principles and requirements contained in the International Financial Reporting Standards (IFRS) (including the July 2022 Exposure Drafts released by the International Sustainability Standards Board), the International Framework, the King Code on Corporate Governance 2016 (King IV^TM*), the JSE Listings Requirements, the South African Companies Act, No 71 of 2008, and the GRI Sustainability Reporting Standards.

* Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.

Combined assurance

Combined assurance refers to the incorporation of all assurance services and activities to optimise our risk and governance oversight function within our risk appetite. All assurance providers co-ordinate efforts and reporting, ensuring alignment of governance and risk activities with the company strategy and improved business performance. The board audit and risk and sustainability committees are responsible for overseeing the effectiveness of combined assurance arrangements within the organisation, directing the effort of the three lines of assurance:

• First line of assurance: All levels of management – covering strategy development and implementation, performance measurement, risk management, and company control, and monitoring of assurance to laws and regulations
• Second line of assurance: Corporate functions and oversight forums (such as the company secretariat compliance function, combined assurance forums, operational audit and risk committees) – all risk and assurance management structures of the company such as risk management, compliance and legal services
• Third line of assurance: Internal audit, external audit and other assurance providers who are independent of the operational activities of the company and provide assurance to the board. This year, Ernst & Young Inc. audited our consolidated annual financial statements, from which extracts have been included in this report. The auditor’s audit report does not necessarily report on all the information included in this integrated report. EmpowerLogic Proprietary Limited provided external verification of our B-BBEE activities. Marsh South Africa conducted risk control audits at our manufacturing sites and warehouses covering health, safety, security, fire protection and readiness.

Materiality

In line with the latest development in corporate disclosure, we have adopted double materiality across our reporting suite:

Financial materiality: Our IR provides disclosure on those issues – including relevant environmental, social and governance (ESG) risks and opportunities – that are likely to influence report users’ assessment of the value, timing and certainty of Tiger Brands’ future cash flows over the short term (less than 12 months), medium term (one to three years) and long term (beyond three years). Our AFS reflect the effects on company value and cash flow that have already taken place at the time of the financial year end, or that are included in future cash flow projections.

Impact materiality: Our SR provides disclosure on our most significant impacts on people, society and the environment. Provision is also made in the SR for financially material ESG risks and opportunities impacting the business.

Our materiality process

To identify the issues for inclusion in our IR and SR we ran an independently facilitated materiality workshop in which senior management representatives from across the company critically considered the following issues:

Our business model – reviewing Tiger Brands’ significant revenue and cost streams and areas for differentiation, and identifying our most important resources and relationships across our value chain, including specific resources and relationships we depend on for capital value retention and growth.

Our impacts and influence on the capitals – reflecting on the most significant impacts of our activities (positive and negative, direct and indirect) on each of the capital stocks, and reviewing where we have the greatest potential to use our business activities to positively influence capital value retention and growth.

Our operating environment – identifying the most important trends in our operating environment (including relevant sustainability-related risks and opportunities) that we anticipate will impact our performance over time, and reflecting on the outcomes of our latest internal risk assessment process.

Our stakeholders’ interests – reviewing the interests of greatest concern to our stakeholders, including the assessments of relevant ESG rating agencies, and assessing how Tiger Brands is balancing these various interests and external assessments

Our strategy – reflecting on the robustness of our current strategy to ensure Tiger Brands’ long-term resilience is informed by the above analysis.

The outcomes of this internal materiality process informed the content and structure of our IR and SR. We prioritised the matters for inclusion in these reports based on their relative importance, applying the principle of double materiality.

Our aim is that all the information in the IR should be reasonably capable of influencing the decision of any report-user wishing to make an informed assessment of Tiger Brands’ ability to create value over time. Our IR is structured in a manner to enable such an assessment, by providing information on:

Our business – outlining our group profile, leadership team, and business model

Our operating context – reflecting on our operating environment, key relationships, and material risks and opportunities

Our strategy – outlining the current and planned activities for each of our six strategic objectives

Our performance – reviewing the financial performance at a group and divisional level

Our governance – summarising the role of our governance and remuneration practices in creating value.

In assessing those issues that materially impact value creation we have looked beyond the conventional financial reporting boundary to provide for the relevant interests of key stakeholders. We have also considered the most significant risks, opportunities and impacts associated with our activities over the short, medium and long term.

Board approval

The Tiger Brands’ board has applied its collective mind to the preparation and presentation of the information in this report. We believe that the report addresses all material matters and that it presents a balanced and fair account of Tiger Brands’ performance, governance practices and operating context for the financial year ended 30 September 2022, as well as an accurate reflection of our strategic commitments. On the advice of the audit committee, the board approved the integrated report and the consolidated annual financial statements on 1 December 2022.

Geraldine J Fraser-Moleketi
Chairman

Noel Doyle
Chief executive officer

Cora Fernandez
Chairman of audit committee