MESSAGE FROM OUR CEO & EXECUTIVECHAIRMAN, GRAHAM POWER

• MESSAGE FROM GRAHAM POWER• COBUS SNYMAN• ONE ON ALBERT - WOODSTOCK

• GAUTENG NEW OFFICE• IRIS PARK DEVELOPMENT• RHODES FOOD GROUP

• SOCIAL COVENANT• SUPERVISOR VIVIAN RASHUIN THIS ISSUE

APRIL | 2018

POWERLINES

It gives me great joy to be able to thank our staff, management, clients, suppliers, members of professional teams, and other valued stakeholders and industry friends for the support, co-operation, inspiration and reaffirmations of loyalty shown to me and to our Group during the past 35 years.

I am grateful to God for blessing us so copiously and for placing us in a position from where we can make a lasting and meaningful change in the lives of so many people, whether through jobs, training, the possibility of owning a first home, using decent roads, and benefitting from infrastructure improvements generally in South Africa and across our borders.

It feels like only yesterday that my wife Lauren and I were running around trying to get our fledgling civil contracting company off the ground at Elandskloof Farm. That was in 1983. We had a second-hand bakkie, three casual labourers, a couple of small paving jobs, and a good measure of faith and determination.

Purpose; To improve the quality of life in Africa

Today our Group’s purpose; To improve the quality of life in Africa through infrastructure development and our vision; To be recognised and respected as the first choice supplier of civil, building and property development services as we lay the foundation for growing successful business partnerships in realising our 100-year dream remains clear.

Taking the long view

Our “100-year dream” is a commitment that our leadership made in 2001 to the longevity of our Group. This solemn pledge to perpetuate everything that Power stands for is an actual long-term business objective and an undertaking to ensure that our Group and its culture and ethics will continue to thrive way beyond the 35-year milestone that we are celebrating this year.

Things are looking up

Our industry has come through one of the most difficult phases I have ever experienced, and like most companies in our field, we have had to do some restructuring. Still, Iam positive about the future: the new presidency, next year being an election year with large-scale job creation and training as likely outcomes, the upsurge in the renewable energy industry now that Government is no longer chained to nuclear (we have seven new wind-farm contracts lined up), and opportunities opening up in neighbouring countries like Namibia and Zimbabwe, that we are cautiously exploring.

We’re looking great

I believe that Africa’s time is now. God has a plan for this continent, and we as a Group are part of that plan. We’re over the wobbles. By God’s grace we will continue to see our young people developing their skills, careers and future. It heartens me to meet the many young African men and women that we are upskilling and constantly training - especially the ladies out there on site as engineers, quantity surveyors and in other technical roles. Even though our staff profile looks different now than it did three decades ago, our “familiegees” – family spirit – is as alive as ever.

Seeing the positive

In this year of drought in the Cape, I’d like to share with you a positive thought. My mentor and guide, the late Noel Shackleton, instilled it in me about 40 years ago: “For every up there’s a down. For every down there’s an up. There has never been a drought that has not been broken.”

This ties in aptly with the guidance of Jeremiah 17, verse 7 and 8: “But blessed is the one who trusts in the Lord, whose confidence is in Him. They will be like a tree planted by the water that sends out its roots by the stream… It has no worries in a year of drought and never fails to bear fruit.”

May our next 35 years be as fruitful as the first.

The decision to join Power was an easy one for Cobus. The thought of moving back to a bigger construction company was attractive, but what clinched the deal was the quality of the people he met at Power.

Cobus also took an immediate liking to the company culture at Power. “At many medium to large companies there is little left of a culture as such. Power still has a family feel and there’s a sense of old-school construction values, something I can relate to. So I felt at home right away.”

The position offered to Cobus at Power was also appealing. “I love construction. At my previous company, I was the CEO. That position removed me a bit from the nitty-gritty job on the ground. I missed that. I really enjoy being part of grappling with the problems and coming up with solutions on site.”

Cobus admits his role is a demanding one in an industry that is challenged by the economy. “My role is to be the bridge between leadership and our opera-tions out there. It is to ensure efficiency and effectiveness by getting a better grip on our day-to-day activities. This, in turn, will allow management to be more hands-on with the core business of the group, which is construction.”

“My role is also strategic: to implement high-level strategy into operations on site, and to effect the proper management of people and plant. In our industry, with its rigid margins and a strained economy, there is not a lot of room for manoeuvre or error. There’s a need for discipline, and part of my job is to infuse discipline into our operations.

This does not mean playing policeman. It means that each one of us should realise our own responsibility to keep productivity as our primary objective.”

When asked about his immediate goals, he is carefully enthusiastic: “I am cautious about change for the sake thereof. That being said, our industry’s business landscape is changing. To ensure that our 100-year dream is realised, we need to adapt, streamline, and position ourselves as a well-balanced SA construction company in this new landscape.”

For now, Cobus intends to spend as much time on sites as is possible to get to know our people. In time, however, his focus will shift slightly back to the more administrative and office work that forms part of his responsibilities.

Cobus is happily married to Chantell with whom he has two daughters, Inge & Carla, and their “laatlam” son, Cobus jnr. “We’re a close family, so we love spending quality time together. At least once a year we do some sort of tour with the entire family and some close friends.” On the weekends Cobus enjoys a round of golf, some mountain biking or a run.

COBUS SNYMAN

MEET POWER GROUP’S NEWCHIEF OPERATIONS OFFICER

The next time you open a tin of Rhodes canned fruit or squeeze a packet of Squish baby food, give a thought to where it comes from…

At a state-of-the art food processing facility in a picturesque valley near Franschhoek, Power Building has been hard at work since April 2016 on a series of projects. What started off as the refurbishment of an old warehouse for the new Rhodes baby foods factory and the construction of a ring road and civil works, has since expanded to include other upgrades and new construction work – a total of three additional contracts. The growth in scope bears testimony to Power Building’s capabilities and reflects the on-going confidence of the client in Power’s ability to deliver the goods.

When the massive Rhodes Foods development is done and dusted, Power Building will be able to count the following activities among their achievements in an already impressive portfolio:

RHODES FOOD GROUPPOWER BUILDING MAKES A MEAL OFIT AT RHODES FOOD FACTORY

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Started April 2016Construction of a ring road and civils

Started April 2017Construction of the new product development centre and laboratories facility. Started May 2017Refurbishment of the Old Cannery building for the new pulp factory and warehouse, tank farm, bean store, concrete water retaining structures, cold room and service areas.

Started May 2017 Construction of the ready-meals plant facility, Phase 1. In planning Phase 2 – Extension to the ready-meals facility

Power’s people on site The series of projects kicked off in 2016 under the leadership of Lance Warren, Barry Peters and Clarence Geyser. Werner Hugo has since joined the team as Senior Site Agent to manage the projects and to ensure synergy between the three different contracts. Roger Phillips has replaced Clarence Geyser as the Senior QS and Clyde Johnstone joined the team as a Site Manager over the various projects.

Putting all our skills to the test Werner Hugo feels that the success of the different types of projects illustrates the diversity of work that Power Building is capable of undertaking: “We were really able to show our diverse skills here - from high-specification laboratories and new product development buildings, to warehousing and complex industrial installations. The Old Cannery project shows our turnkey ability in the industrial building environment. This meant a ‘one stop shop’ for the client, as all the design work was done by Power Construction and we also appoint-ed the professional teams.”

Treading lightly, taking care Werner says things have gone super smoothly, but “Health and Safety is a challenge on site because this is an operational food processing plant. We are working between the buildings and the whole facility is in full production. Precision planning was required for work that involved any activities that could impact on the client. To date, as a team together with the client, we have managed to progress without interruption to any of the production activities. Protection of existing services is also a priority as some of the live steam lines run through the areas that we are currently working in.”

Scheduled completion date is August 2018.

From witnessing his supervisor fleeing an angry wild beast of the African plains, to working on the site of some of the world’s most high-tech wind turbines, Vivian Rashu has lived through a lot of interesting experiences during his 25 years at Power.

It all started in October 1992 when the new kid on the block turned up for his first on-site job: at the new Goodwood Post Office. Many other projects followed, but the one he remembers as the best site to work on was Grassridge in the Eastern Cape. This is where Power Construction did the civils for the Grassridge Wind Farm in Nelson Mandela Bay. Here, Vivian says, he “learned a lot because it was a brand new experience”.

Learning is an important part of Vivian’s work life; one of the things he enjoys most about working at Power is the learning opportunities that the company offers.

He has learned a bit about human behaviour too. Once on a site, the supervisor came across a warthog and bravely (or stupidly) chased it into its burrow. Suddenly, the grunting warthog turned around and started chasing the supervisor. “They had to take him home afterwards, and he had a runny tummy for a week, from shock!” says Vivian, breaking into a laugh.

Vivian Rashu has three sons: one in Grade 12, one about to start studying, and an older son.

WE CONGRATULATE VIVIAN ON HIS25 YEARS OF SERVICE, AND WISH

HIM WELL FOR THE FUTURE.

Massive clouds of dust, brought about by the drought and churned up by strong southeasterly winds, have not hampered production at Iris Park, where Power Construction is performing bulk earthworks. Iris Park is a mixed-use development in Blue Downs close to Power’s head office near Cape Town.

Site Agent Hugo Pretorius says that out of consideration for the neighbours at Conifers and Gaylee residential areas, they’ve made a plan to dampen the effect of the dust by starting earlier daily. Work begins at 6 am, so as to get the maximum amount of work done every day before the wind picks up in the afternoon.

The project kicked off In October last year, and is scheduled for completion towards the end of May 2018. Bush clearing and the construction of platforms form the major part of the bulk earthworks on the 42-hectare site. (The size of about 42 rugby fields.)

According to Steven Levey acting as project manager for the client (Old Mutual), Curro has expressed interest in establishing a school at Iris Park, but this has not been finalised yet. The development will likely feature a church, shopping centre and housing for approximately 1050 families.

Power Construction’s involvement with the bulk earthworks phase has created 29 permanent jobs and 11 temporary work opportunites.. Petrie Smit is the Contract Manager. The Site Foreman is Shaun Harmse.

IRIS PARKDUST A NUISANCE, BUT IT WON’T GET POWER DOWN

SMILING THROUGH A QUARTER OF ACENTURY OF SERVICE: SUPERVISOR VIVIAN RASHU

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Power Developments is pioneering a new concept in affordable inner city housing in South Africa: micro apartments.

Tiny, stylish, and designed to meet the taste and budget of young professionals, micro apartments tick all the boxes for on-trend first-time buyers.

“One on Albert” in Woodstock is Cape Town’s first block of “luxury” micro apartments. It is a joint development by Power Developments, Dogon Group Properties, AJ Developers, and Gardner Property Solutions.

When completed – towards the end of 2019 – One on Albert will offer 133 residential units over seven floors. The development will also feature a retail component: shops, restaurants and services such as a laundromat on street level. It is situated just over 1 km from the city centre.

All entry-level units of 21 m2 have been sold off-plan. They went for R800k each, transfer duty included. Other units are selling rapidly.

Nick Ferreira represents Power Developments as a Director on the Development Company. Since 2017, he has been taking care of overall development management and looking after Power’s interests in the project.

He is clearly pleased with the success of the development: “The uptake in the market has been fantastic! A number of the well-known Cape Town inner city developers are scrambling to catch up. We have blazed a new trail and, thanks to the success we’ve achieved with the sales, we are already looking at further development opportunities to ensure a pipeline of work in this market sector.”

Nick explained that the development relieves a pressing need in the market. It also fits Power’s business model perfectly. “Demand for affordable property close to the city is a hot topic. Developers and the authorities are scratching around to find solutions. Power Developments has over the last number of years focussed on the affordable market, so it’s only natural and logical for us to target this inner city market. It falls within our business model.”

A construction company has not yet been appointed. “We are pricing the work internally, and so are our partners,” Nick said. “We will review the pricing together

and, depending on the outcome of this, we will either do the work as a joint venture with our partners, or alternatively go out to tender. The target

commencement of construction is mid-2018.”

ONE ON ALBERTBIG SUCCESS FOR TINY CITY HOMES

Light, bright, modern and spacious. That’s Power North’s new offices in Eco Park, Centurion.

The Leadership Team says they moved to the new building because the growing team needed more space.

“At our old offices, things became so cramped that some staff members had to make use of prefab offices parked on the premis-es. Now we have ample room for everyone, with enough space available for future expansion. The interior has also been done out to be fit for purpose.”

Everyone on the team seems to be happy with the new work environment.

The new offices in Eco Park is about 8 km from Power North’s previous home in Rooihuiskraal. It is conveniently close to the N1 and a Gautrain bus stop.

NEW OFFICES FORTHE NORTH DIVISIONA BRIGHT NEW HOME FOR POWER NORTH

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SOCIALCOVENANT

We, the members of the Power Construction Group Leaders Gathering on 19th and 20th January 2018, pledge that, when we are together, we shall

treat one another with Respect, Honesty, Encouragement, Kindness, Friendship, Forgiveness, Dignity, Patience, Mercy, Trust, Empathy, Forthrightness, Tact, Love, Value, Grace, Truth, Integrity and Confidentiality;

be Non-judgmental, Accountable, Approachable, Flexible, Courteous, Reliable, Committed, Productive, Ethical, Open, Slow to Anger, Supportive, Transparent, Clear, Fair, Truthful, and Respectful of one another’s Time;

listen to one another, and not gossip. If we discuss something concerning another member who is not present, we shall tell that other member about the conversation within 48 hours.

Should one of our members transgress by not following the behaviours we agreed on, we shall attempt to resolve the issue by taking the following steps:

Assess the situation and approach the person with good intent and a desire to understand them. Go in Love and Kindness (“I care more about you than what you think of me.”) Go in Humility (“I may be wrong.”) Go with Pre-forgiveness already worked out internally. Go 100% with the facts.

Should the situation not be resolved, approach the person again, in the presence of two or three others to witness the words spoken.

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If still unresolved, mutually agree to bring the issue to the Team.

If no resolution can be achieved, some form of separation will be necessary.

(Our intent is to resolve every issue by Step 1, with no further action required.)

We recognise that we are imperfect. Should one of us falter and fail to honour this agreement, he or she will initiate the 6-step Apology:

Acknowledge the offence. (“I did it.”)

Admit wrongdoing. (“I was wrong.”)

Apologise. (“I’m sorry.”)

Ask for forgiveness. (“Will you forgive me?”) Wait for the answer.

Be held accountable. Tell the person or group: “I give you permission to hold me accountable from now on.”

Ask “Is there anything else?”

We, the undersigned members, are committed to abide by, and be held accountable to, the above behaviours. We believe these behaviours are worthy and characteristic of a culture and environment that will best foster our personal and professional development and success.

Signed: 20th January 2018

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AT THE SENIOR MANAGMENT SESSION HELD ON 19/20 JANUARY 2018 THIS YEAR,THE FOLLOWING SOCIAL COVENANT WAS SIGNED:

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2017 Merit Award WinnersCongratulations to the merit award winners in the Group for 2017.

The most coveted awards in the Group were awarded to Werner Hugo (Power Building) and Anastachia Pieterse (Plant Division). These prestigious awards, in honour of the late Vaughn Forrester-Jones and Leon Meyer, are presented in December each year to employees who render an outstanding service, not only inside the company, but also to our clients.

Forrester-Jones awardWerner Hugo: Power Building

Werner is a site agent for Power Building and has been with the company since 1 July 2004 Earlier this year, the Rhodes Foods project was selected for an independent audit by NOSA on behalf of Total SA. This was done as part of their supplier approval process. The audit, in line with ISO18001, was successfully completed and as a result of this, Power was placed on Total SA’s vendor list as an approved contractor. Werner is the site agent on this contract. Werner displays and lives the values of the company in his daily dealings whether with colleagues or clients alike.

Leon Meyer AwardAnastachia Pieterse: Plant Division

Anastachia works in the Plant Division and is based at the head office in Cape Town. She has been with the company for 14 Years. Anastachia’s job requires her to interact with most of the divisions in the Group. She operates far beyond her own sphere of responsibilities and goes about this in her quiet way. Anastachia is respectful and professional in her daily dealings with everyone she interacts with. She is hardworking and always gives her very best.

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TOOTING OUROWN HORN

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It is a tradition nearly as old as the Power Group itself. And every bit as respected too. Paul Thiart introduced the ceremonial horn, way back in 1988. (He joined Power in 1983 as a Site Agent.) The custom has its origin among the farmers of the West Coast. These hardy “manne” would distil their own witblits, and gulp down this potent spirit from the dried-out horn of a bull, or even a springbuck.

Paul recalls the first time, taking the horn along on a hunting trip with some colleagues. Or was it perhaps to a rugby match at Newlands? Anyway, the ritual caught on, and to this day the “horinkie” is hauled out and topped up during special events after work, and definitely when an important match is being played at New-lands. (Could this be where the expression “To grab the Bulls by the horn” comes from?)

The procedure is simple, but performing it remains a breath-taking challenge even for the toughest amongst us: fill the horn with witblits, take a swig, gulp it down and quickly draw your breath in as deeply as you can. Now stand on one leg and try whistling a tune. Not so easy! When that white lightning strikes, you may as well be whistling in the wind. It’s breath-taking indeed!

“When the well’s dry, we know the worth of water” – Benjamin Franklin

“Day Zero”, the new buzzword in Cape Town. The fact that the city’s “taps might run dry” has alerted us to the reality: South Africa is a water scarce country. It’s a horrible situation for each one of us. But the optimist in me believes there is a positive side to the crisis. The effect of the ongoing drought has been a very necessary wake-up call for us all. It has made us aware that water is not an infinite resource to be abused. It has certainly shown us how we had been wasting water. It has forced us to rethink our relationship with a resource on which our very existence depends.

Just like us, our economy cannot survive without good quality water. Water cannot be created. We have to rely on rain (storage/dams), ground water (wells/boreholes /natural springs), treatment of effluent and desalination. It is therefore crucial that we use what we have sparingly and as best we can.

Making every drop count

At Head Office, we’ve embarked on various initiatives to reduce our water use. In June 2017 we discovered and fixed a major water leak. Since then we have started a campaign to keep staff informed of water use by regularly sending updates and putting up posters. We have managed to reduce our water use from an average of 24 000 litres per day in 2015 (before the drought) to approximately 5 000 litres per day in 2018. This is a 79% reduction since the drought conditions manifested in the Western Cape! We now use about 25 litres per person per day. Our Plant Department has done great work and is no longer using potable water for washing plant and machinery. This is one of the main reasons for the reduction in water use.

Performing in the “new-normal”

On a project level, our sites have had to cope with a difficult balancing act: they need to make use of alternative water sources such as treated effluent, while also having to meet strict standards. In most cases, treated effluent does not meet the standards required, for example in concrete works. Obtaining the permits and licences for using surface and groundwater sources is difficult and time consuming. Registering a water use (General Authorisation) takes a minimum of 30 days (and even up to 60 days) while a Water Use Licence Application is legislated to take 300 days. From a contractor’s point of view, the cost and timeframes involved can be detrimental to delivering contracts on time and within budget. Our sites have however done a great job at innovating to keep contracts running in these very difficult circumstances.

The situation we find ourselves in might well be the “new-normal” and will require a big effort from the construction industry and our clients. We are making a point of learning from the circumstances. Our learning enables us to plan ahead to ensure sustainable solutions to this “new-normal”.

So, despite the constraints – and perhaps even because of them – we’ll keep on being innovative and effective in delivering projects to the highest standards. This way, we’ll make sure we uphold our values of quality and professionalism.

WATER CRISISWE’RE DOING GREAT, THANK YOU!

We are very excited about the new Unashamedly Ethical (UE) mobile app, available free on both Apple and Android platforms. This app enables consumers to source and contact trustworthy and ethical service providers easily and quickly from their mobile devices. Do not hesitate – simply type in “Unashamedly Ethical” in your app store’s search function and download this amazing tool today!

Now in 120 nations

In November 2017 US author Dr. Richard Blackaby was hosted at a business lunch held in collaboration with Christian Businessmen’s Connection (CBMC), Christian Sports Business Ministry (CSBM) and Radio Tygerberg. Following on the success of this event a similar business gathering, addressed by businessman Pete Ochs, was held on February 14 at the Barnyard, Willlowbridge.

In an exciting initiative to strengthen the UE business network, an opportunity is given monthly to a UE business signatory to host other UE signatories at their premises to introduce their businesses, the people that drive it and their products and services.

Please follow us on Facebook to keep up to date with our activities. And, if you have not already done so, log onto www.unashamedlyethical.com today and commit yourself to ethics, values and clean living!

UNASHAMEDLY ETHICAL NEWS

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LOOKING BACK TO THE PAST

We would love to hear from you, so if you have any comments, stories, ideas or interesting news to share, please contact Antoinette at aherselman@powergrp.co.zaor call 021 907 1300. Like us on Facebook #PowerGroupOfCompanies and share your posts and photos with the Marteting department. Like, share and interact.

T. +27 21 907 1300 | F. +27 21 905 2284 | E. general@powergrp.co.za | www.powergrp.co.zaContact details