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E-COMMERCE

INFORMATION TECHNOLOGY (IT)

PROPERTY INVESTMENT PORTFOLIO

E-COMMERCE

E-commerce

Nature of business

To provide our customers with a seamless, omni-channel shopping experience, enabling them to easily view and purchase our products and services online and smoothly transition between online shopping and our brick-and-mortar stores.

Target market	Footprint
The Group’s retail operations and its customers.	The Group's online shopping stores are: CTM South Africa – www.ctm.co.za CTM Kenya – www.ctm.co.ke CTM Tanzania – www.ctm.co.tz Italtile Retail – www.italtile.co.za TopT – www.topt.co.za U-Light – www.u-light.co.za

KPIs		Trends 2022	Trends 2021
Online sales (Rand)
	CTM SA
	CTM Kenya
	CTM Tanzania
	Italtile Retail
	TopT
	U-Light		#
Visitor sessions
	CTM SA
	CTM Kenya
	CTM Tanzania
	Italtile Retail
	TopT
	U-Light		#
^# No full-year comparable data available.

2021/22 priorities	Scorecard
Redesign and implement a new online shopping experience for Italtile Retail.
Implement strategies to enhance own product content.
Drive uptake of augmented reality and use of visualisers.
Enhance digital content and marketing to attract new customers and drive online sales.
Improve data analytics to better understand shopper behaviour and enhance the shopping experience.
Continue to enforce Covid-19 health and safety protocols for employees and customers.

2021/22 major achievements

2022/23 priorities and prospects

3D tile viewer with different lighting conditions launched on CTM SA website, one of the first online stores in the world to launch this technology.
Tile visualiser implemented on CTM Kenya website (previously limited to CTM SA and Italtile Retail).
Optimised the usage of machine learning and artificial intelligence ("AI") to attract new digital customers to our websites.

Launch CTM Botswana online store.
Incorporate additional digital sales channel.
Invest in digital content to ensure our online offerings are the first choice for customers seeking to beautify their homes.
Improve last-mile delivery experience for customers.
Implement customer-centric technology advancements to optimise the shopping experience, including transforming mobile websites to emulate apps and incorporating image and voice search into shopper journeys.

INFORMATION TECHNOLOGY (IT)

Nature of business

The IT department provides the Group with a scalable and secure platform that adheres to industry best practices; this has afforded the business the confidence to innovate in a challenging environment. The division embeds technology at the heart of the business thorough implementing agile and innovative solutions that enable the Group to rapidly respond to ever-changing consumer behaviour.

Technology is a competitive advantage and a means to differentiate in the digital era. The Group’s culture of innovation and agile approach to delivering tangible applications has ensured that our customer experience is tailored and memorable across all of the Group’s retail brands.

Strategic positioning

Target market

The IT business unit exists to provide the organisation with a competitive advantage in the market through sustainable technology solutions. We work collaboratively with the Group's various business units to eliminate complexity and provide certainty in a volatile and changing technology landscape. Our team facilitates innovation by creating awareness of technological advancements to capture new opportunities as they emerge in the business.

The Group's retail, distribution and manufacturing operations and key business units including HR, Marketing, Finance and Supply Chain logistics, as well as the Group's end customers.

KPIs	Scorecard
Continued to improve the security of our infrastructure and applications to sustain a trust relationship with internal and external customers.
Proactive pursuit of emerging technologies to ensure we remain relevant in all customer engagement channels.
Entrench a frictionless customer journey through all transactional channels.

2021/22 priorities	Scorecard
Design and implement Italtile Retail's in-store mobile sales process to enhance the customer experience.
Advance the supply chain logistics integration to generate further insight and visibility of the movement of product from manufacturer to customer.
Ensure adherence to data compliancy regulations and improved resilience of the Group's data architecture and business continuity.
Complete the migration of IT infrastructure to the cloud.
Continue to enforce Covid-19 health and safety protocols.

2021/22 major achievements

2022/23 priorities and prospects

The migration of our entire infrastructure to the cloud was executed seamlessly, with no business disruption for our end users.
We improved the customer experience of stock collections through implementation of a new mobility solution and automation.
Business continuity was ensured through introduction of applications that enable individuals or business units to work productively and efficiently from remote locations.

Enhance our e-commerce platforms to increase sales and improve the customer experience.
Collaborate with our partners to redesign our payments infrastructure to enable adoption of new payment methods
Implement a last-mile delivery solution to give customers visibility of their orders.
Establish a sales channel for B2B commerce for contractors and commercial partners.
Develop a personalised communication channel with customers to enhance communication and loyalty.
Research and evaluate relevant AI technologies that can add value to our business.
Maintain and enhance data security.

PROPERTY INVESTMENT PORTFOLIO

Property investment portfolio

Retail properties	Manufacturing properties	Environmental sustainability
This portfolio affords strategic advantage to the retail brand operations by ensuring stores are easily accessible, well presented and maintained, and contribute to an inspirational shopping experience. The portfolio is continuously evaluated and enhanced to ensure optimal returns.	The Group's manufacturing operations comprise well-maintained state-of-the-art factories which are supplied with high-quality raw materials sourced from productive quarries in close proximity to the plants.	The Group's sustainability agenda is promoted through the use of cost-effective, energy-efficient practices in the construction of new buildings and the renovation of older buildings. Optimal use of natural light, solar technology, new-generation lighting, water-saving taps, rain water harvesting, and environmentally sensitive building materials are prioritised. Our Ceramic Industry factories use the latest technology in their operations and rank among the most energy efficient in the world. The majority of Ceramic Industries' clay requirements are supplied by its own quarries. The quarries have adequate reserves to meet medium to long-term requirements. Raw material quarries are rehabilitated concurrently and once end-of-productive life is reached.
Target market
Italtile Retail, CTM, TopT and U-Light store networks.

Key statistics		2022	2021
Total number of stores		208*	201*
	– Italtile Retail	14*	13*
	– CTM	95*	91*
	– TopT	89*	89*
	– U-Light	7*	7*
	– ELK	3	2
Number of factories (Ceramic Industries)		8	8
Number of quarries (Ceramic Industries)		10	11
Retail property capex incurred (new and refurbishments)		R398 million	R420 million
Portfolio changes
	– Properties acquired	6	8
	– Properties sold	1	2
New stores opened
	Italtile Retail	1	0
	– CTM	4	1
	– TopT	3	11
	– U-Light	2	2
	– ELK	1	2
Stores closed
	– TopT	3	4
	– U-Light	2	0
* Excluding webstores.

2021/22 priorities	Scorecard
Sell unproductive sites to ensure the portfolio remains healthy and retains optimal value (the target was four to six sites).	One sold
Review opportunities to convert leased sites to owned properties for high-performing TopT stores in proven markets (the target was three to five sites). Three properties were acquired, in Benoni and Alberton, Gauteng, and East London, Eastern Cape.
In the context of materially higher land and construction costs, improve returns through optimising store size and input costs. While good progress was made in this regard, substantially higher steel and building prices had a negative impact on costs.
Continue to maintain and refurbish older properties in the portfolio to ensure relevant market value.
Continue to enforce Covid-19 health and safety protocols.

2021/22 major achievements

2022/23 priorities and prospects

Our goal to source and develop suitable new sites in Southern Africa was achieved with the opening of CTM Lusaka, Zambia, and plans have been submitted for a new CTM in Maputo, Mozambique.
Our target to expand the Group’s existing footprint in East Africa into untapped markets was advanced in Kenya, with the opening of CTM Thika, while construction of a CTM store in Nakuru is currently underway.
Returns in the TopT portfolio were improved through keen negotiations on rental expenses, and two TopT stores were relocated.
Our aim to leverage opportunities to incorporate ELK into our current properties was furthered with the opening of ELK Ballito, KZN. Other ELK projects currently underway include Southgate, Bryanston, Westgate and Boksburg in Gauteng.
Italtile Retail Boksburg was relocated to new premises next to CTM Boksburg, which was also refurbished to complement the new-look Italtile.

Continue store roll-out to gain market share and service new markets (10 to 15 new stores).
Sell unproductive sites to ensure the portfolio remains healthy and retains optimal value.
Review opportunities to convert leased sites to owned properties for high-performing TopT stores in proven markets.
In the context of materially higher land and construction costs, improve returns through optimising store size and construction costs.
Continue to maintain and refurbish older properties in the portfolio to ensure relevant market value and support the customer experience.
Drive green initiatives to ensure environmental sustainability and reduce dependency on municipal services. Implement automated monitoring of water and electricity consumption.
Continue to source and develop new suitable sites in Southern and East Africa to facilitate the Group’s expansion programme.
Continue to support the Group`s expansion programme by incorporating ELK offerings into our current properties where appropriate.