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Operations - Risks

Micro & Macro-economic Risks

Ratings agency downgrades and currency devaluations have a bearing on the cost of our imported
computers and licences.

Slow growth with regards to wage growth versus company growth can result in lower staff retention.
Shortage of local supplies is a challenge and imported goods are less profitable.

Business Environment Risks

Changes to local legislation bring about risks. This is as they may increase the cost of compliance.
‘Downstream e-Waste Vendors’ (DWV) performance can present a business risk. This is due to the risk that
DWV’s can deliver inferior products or services. This can create reputational risks, so we use our internal
Contractor Control Procedure (SHEQ-PRC-015) to manage the risk. This is due to DWV’s not being able to
provide auditable services and their lack of accreditation.

Reputational Risks can be an impediment to the brand perception of the company. Data loss is an example
of what could lead to reputational damage, Xperien has thus far not been exposed to any data breaches.

Business Continuity During COVID

Disruptions to the supply chain: We anticipated major delays for local corporate supplies and imports. The
cost of imports rose by 50%, delays of imported stock were unpredictable ranging from 2-4 weeks longer
for deliveries.

Our company was fortunate to be granted an essential service licence within 4 weeks of Level 5 National
Lockdown. One of the legacies of the pandemic is that the cost of computers rose by 40%, this helped cover
the increase cost of imports.

Our COVID-19 Response Committee developed a standard operating procedure (SOP). As soon as the first
COVID case hit SA we had a disaster recovery meeting. Our response committee proposed to ramp up
production and build up reserves to help with the inevitable slow down and lock down of business
operations.

Health Risks

With regards to personal health and lifestyle education, our inaugural “Staff Wellness Day” was aimed to
educate staff on nutrition, exercise and offer them an opportunity to get flu vaccinations. It was
unfortunately interrupted by the COVID 19 pandemic.
We are currently in the process of establishing a gymnasium on our premises to encourage healthy living
through exercising.
In terms of industrial hygiene, we have contracted Pinnacle Hygiene for our ablutions and hygiene
management. We also have contracted Molly Maid for the cleaning of our workspace. Managing COVID 19
has brought greater caution in the way staff conduct themselves within the workplace. During the reporting
period we experienced only 2 infections, with full recoveries in both cases.

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