Letter from our Chairman

A LETTER FROM OUR CHAIRMANROBERT BERMUDEZ

Dear Valued Stakeholders,

Financial Year 2022 (FY 2022) has been a tumultuous one for our world. Just as most societies began emerging from restrictions to contain the spread of the coronavirus, and the global economy was returning to pre-pandemic operations, a chain of factors came together to create uncertainty and hardships in many countries around the world. Many governments in developed economies undertook stimulus spending to support citizens during the pandemic. These stimuli were effective in invigorating business and consumer demand however, supply chain delays and disruptions also arose during the pandemic and the combined effect led to increasing inflation in many developed economies. This then prompted the US Federal Reserve to initiate a process of increasing interest rates which has been followed by many other central banks globally. Russia’s invasion of Ukraine further exacerbated the challenges by precipitating a humanitarian crisis in Europe, cutting off a major supply of grain to the world and provoking sanctions against Russian oil and gas exports that have pushed energy costs even higher. The resultant uncertainty, cost of living increases and weakening of many developing country currencies are hurting businesses and consumers around the world.

Our People, Our Evolving Culture

The true test of the quality of a business is not in its performance during times of prosperity but in its endurance when faced with challenging circumstances. Massy, in its 99 years, has weathered many storms and from our inception, our people – resilient, creative, and strong – have been the central drivers of our success. It is the people of Massy, with hearts that are fearless and open, that will continue to move us forward on our journey. As we come to the close of our 99th year, we are even more committed to embodying love, care, passion, and compassion as we serve our people, our customers, our communities, our environment and our world. The people of Massy want to feel they belong to something bigger than themselves, and we believe that we are on that road. We are evolving and becoming more authentic in who we are as human beings, and this helps us to transcend the challenges and differences of opinion that necessarily arise among diverse thinkers. Being better able to embrace our diversity creates trust, agility and confidence, and we see our people and our evolving culture of empowerment and cognitive diversity as key to the unprecedented results that we have seen at Massy during some of the most tumultuous times in recent history.

Massy’s 2022 Performance

As I write my last Chairman’s Letter for the Annual Report, I reflect on my 25 years of service on the Massy Holdings Board of Directors with great satisfaction. I have seen the Group go through many challenging times and emerge stronger. As Massy approaches its 100-year anniversary, the Group has never been stronger. The focus on three main Portfolios in which Massy has deep historical experience and expertise and the devolution of greater autonomy to, with stronger governance of, the Portfolios has unleashed unprecedented growth that can be seen in the Company’s results. Leaders and employees throughout the Group are encouraged to “Run it like it’s your own”. With an emerging culture that encourages participation and changes to reward systems to share abundance more broadly throughout the organisation when the Group and its Portfolios do well, more and more, our employees are acting like owners.

Despite ongoing global challenges in 2022, the major territories in which the Group operates experienced economic growth. A resurgent tourism sector supported recovery in Barbados, while Trinidad and Tobago benefited from higher energy commodity prices. Surging oil production and an expanding energy sector has seen Guyana become one of the world’s fastest growing economies. Colombia has also recorded continued growth on the back of strong commodity prices and increases in private consumption. Overall, I am pleased to report that Portfolio and Lines of Business leaders were able to navigate global supply chain challenges and inflationary pressures to record Business Unit Profit Before Tax of $1,183 million (before associates) for 2022, reflecting growth of 30 percent over 2021. Dampened by the disappointing performance of the USD investment Portfolio with the proceeds of the Group’s recent divestments, Group Profit After Tax (PAT) grew by 4.4 percent for 2022, moving from $822 million in 2021 to $858 million.

Share Split and Cross-Listing on the Jamaica Stock Exchange (JSE)

The Share Split and the decision to cross-list the Company’s shares on the JSE was based on a number of strategic aims including; diversifying and increasing the investor base of the Company in preparation for future capital sourcing, increasing the liquidity and trading activity of the Company’s shares, enhancing the Company’s image and appeal to international investors, and allowing greater share price discovery through increased liquidity and trading activity of the Company’s shares based on the vibrancy of the JSE. To date, we have seen some of this materialise and look forward to seeing these strategic aims being further met while the Company’s performance continues to be consistent and strong.

Board Changes

During the past year there were some changes to the Massy Holdings Board; Mr. Anton Gopaulsingh retired as an Independent, Non-Executive Director on January 21, 2022. Anton worked to streamline and strengthen the governance of the Portfolio Audit and Risk Committees and made key contributions to further elevate Enterprise Risk Management across the Group. Ms. Maxine Williams also retired as an Independent, Non-Executive Director on February 9, 2022. Maxine made great contributions in the area of governance and led the Group’s evolution of its thinking around diversity, equity and inclusion. On behalf of the Board, I wish to thank them both for their service to Massy which will continue to redound for many years to come. I would also like to take this opportunity to welcome our two new Board Members; Mr. Peter Jeewan, who was appointed as an Independent, Non-Executive Director on January 21, 2022, and Mr. Marc-Kwesi Farrell, who was appointed as an Independent, Non-Executive Director on February 10, 2022. Both Directors bring strong global, entrepreneurial experience, as well as strong people leadership competencies – a combination of skill sets, experience and values that fit the strategic direction of Massy. We look forward to their contributions and on behalf of the Board, I extend a warm welcome to them.

On May 5, 2022, Mr. Robert Riley was elected as Deputy Chairman and Chairman Designate of the Massy Holdings Ltd. Board. Robert has a wide depth and breadth of experience globally as an executive and as a director; and the Board agreed that he was the most suitable successor to the Chairman as the Group seeks to grow globally. On behalf of the Board, I wish to thank him for agreeing to serve in this capacity.

A Platform for the Next Century

Our purpose and our global vision unite the Massy Group and support our aspirations and commitments as we enter our next 100 years. Our purpose and global vision also guide the discussions we have as a Board and our active role in supporting the work of the Executive team. We are very proud of Massy’s evolution into a more agile, less hierarchical and more empowered organisation and culture. We continue to strive to become more centred in ‘heart’, more digital and more innovative in our quest for a global, sustainable and fulfilling future.