Dear Stakeholder,

In keeping with our principles of openness, transparency and accountability, I am pleased to report on the events and the climate of the past period, ranging from September 2018 until August 2019. The period coincides with me completing a year as Chairman of AYO Technology Solutions Limited.

The past year has been a challenging one for the AYO Group, and South Africa as a whole. This was a period characterised by murmurings of a hurricane on approach, gathering momentum as it was advancing, landing, as it were, at the beginning of the year. Globally, the economic climate was already showing signs of slowing down in the developed economies, more so in developing countries. The economic climate has worsened since then. AYO, as the largest black and most transformed IT company, standing tall, was sure to catch the wind that was blowing with ever-increasing speed and strength.

Just before the storm, the Group reported positive results, with expectations of even greater heights to be attained, had things remained the same. However, this was not to be, as the Public Investment Corporation ( PIC) Inquiry started like a whirlwind, with a media-hype, targeting AYO for an investment of R4.3 billion made by the PIC, in the previous period.  There is no need, at this stage to go into the merits and de-merits of this saga, as at the time of this report, the jury is not yet out on this matter. All that can be stated is that it had a major negative impact on the Company, much as it was not itself the subject-matter of investigation, but the investor.

1. The increased scrutiny on the affairs of the Public Investment Corporation (PIC), and the significant media attention that accompanied this, saw AYO in an unprecedented position. By some unusual web of thinking the investee (AYO) ended up in the dock, having to answer for the conduct of its investor’s internal matters. Nevertheless, we saw this as an opportunity to clarify several misconceptions that are writ large in much of the public reporting of AYO and its business strategy.

Had it not been for the solid foundations that were laid by the management team and staff, and key pillars of the business, we would have floundered, even more to the point of falling by the wayside.

During this period, AYO put several pillars in place to build the resilience of the business:

• A go-to-market strategy;
• Engagement protocols and delegation of authority;
• Gap analysis for business development;
• Understanding resource capabilities within the Group, including skills development and training plans;
• Certifications and partnerships;
• Consolidated products and services matrix.

All these gave the AYO Board levers to exercise its governance responsibilities, during the eye of the storm.

Credit is due to the Executive Management which itself was largely new, as some critical role-players at this level had exited, adding to the woes the company was facing. The Board was swiftly taken through a process of understanding the various components of the business, such as AYO Digital, AYO Infrastructure, AYO Software, AYO Consulting Services, AYO Security Services, and AYO Managed Services.

2. The new CEO of AYO, Howard Plaatjes, quickly learned the ropes and stabilised the organisation internally. A significant amount of his time and effort was taken up in fending off the unwarranted and vitriolic attacks that were aimed at the Group.. Howard has a strong personality, a great mind, and a stable temperament. Rudyard Kipling must have had his kind in mind, when he said: “If you can keep your head when all about you are losing theirs and blaming it on you …”
   
   AYO has solid foundations and deep roots that enabled us to resist the headwinds and tailwinds.
   

We have the flexibility and resilience of a palm tree, or the reed, which bends when strong winds blow and rises again after the storm.

Such is the resilience of AYO Technology Solutions Limited.

As Non-Executive Chairman, I have put in more time to attend to the issues that the Company had to deal with and continue to do so presently. I want to thank our staff for their loyalty and commitment. Commitment and loyalty are fundamental values, which are often tested during tough times. Those who possess these values will keep standing and will not be blown away.

3. Picking up the debris.

Every storm leaves debris in its wake. This is exactly what AYO had to face after the storm: picking up the debris and clearing the decks for the work that lies ahead. It became challenging to conclude deals during this period, with many potential partners turning their backs, intimidated by the fury of the moment.

Going forward – Now is the time.

Precisely because AYO has a compelling strategy to take it to higher and higher levels. During the period that lies ahead, now is the time for all-hands-on-deck. The worst is indeed behind us. From the first person you see at AYO’s reception desk to the executives and the Board, there is such a sense of purpose and determination to take the company to the highest levels. We have come to realise that greatness and genius require us to take a stand, to say this what we believe, succeed or fail, we will see this through. Genius demands unswerving commitment and a knowledge of who we are. We can’t stand for something – honestly and effectively – without who we are: we are victors. If we could hold on until now, it may not be all over, and maybe with more work to come, but we believe the worst is behind us. Nothing is going to hold us back from the glory of success, service to our people, and giving a human face to the of the 4th Industrial Revolution (4IR) and Artificial Intelligence (AI).

The time is now!

4. It remains for me to thank members of our Board of Directors, the men and women, who in their diversity, bring a wealth of experiences and expertise to the AYO Group. Their dedication and commitment to good governance has challenged me in no small way. There is no doubt in all our minds that if AYO were left alone to do what its mandated to do in its founding documents, given its more than twenty years now, providing jobs to more than a thousand two hundred employees, it has the capacity to double these numbers, in a country that desperately needs jobs, even as some are shed others will come into being.

This Board is more than capable of steering this ship, not only to calmer waters but to great seas too.

With you in the lead and our dedicated and talented staff, partners and subsidiaries, we can only take our ambition of serving our stakeholders to higher levels of success, higher levels of profitability and excellence in what we have set out to do.