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i n v e s t i n g i s a n a r t
Copywriting and editing: HWB COMMUNICATIONSDesign and layout: ONE HUNDRED PERCENT - DESIGN & MARKETING
highlights 2012 01 Empowerment Status 02
CHAIRPERSON’S REVIEW 2012 03 Directors & the team 04 Financial Review 05 Directors’ Report 06 Directory of shareholders 08 Our investment partners 10 Ditikeni structure 12 INVESTMENTS REALISED 13 Financial Statements 14 natural resources empowerment fund 16 Rural work / Art in business 17
H i g h l i g h t s o f t h e y e a r t o F e b r u a r y 2 0 1 2
> Dividendincomeincreasedby30%
> Earningroseby177%to713centspershare
> Netassetvalueroseby47%toR21.06pershare,asvalueemergedinmanyofDitikeni’s
investments.ShareholderssubscribedfortheirsharesoriginallyatR1.00pershare.
> ReturnonEquitywas50%fortheyear.
> TheInternalRateofReturnforshareholdersfrom2000to2012was36%perannum.
> Theannualdistributiontoshareholderswas31.6centspershare,anincreaseof6%onthe
previousyear.R7.3millionhasbeendistributedtoshareholderstodate.
> Onenewinvestmentwasmade,a23%interestinConstantCapital(Pty)Ltd,amemberofthe
JohannesburgStockExchange.
> R3millionwasraisedfortheSeriesIIpreferenceshareissue.Togetherwiththefundsadvanced
byDitikeniTrust,theSeriesIIpreferencesharepoolhasatotalofR7.7millionincommitted
funds,ofwhichR710000wasinvestedintheMTNZakheleissue.
ditikeni Annual Report 2012
ditikeni Annual Report 2012
e m p o w e r m e n t s t a t u s
Black ownership 99%
Black women ownership 56%
New entrants 99%Afullypaid-upinvestmentbyDitikeniconfers
thefull20/20pointsundertheownershipcomponentoftheBEECodes.
c h a i r p e r s o n ’ s r e v i e w 2 0 1 2R e s u l t s a n d P r o s p e c t sDitikeni’smaineffort inFY2012wasanattempttoraiseafurtherroundofcapitalbytheissueofpreferenceshares,buttheresponsewasdisappointing.OnlyR3millionwasraised,notcountingthecontributionfromtheDitikeniTrust.ThiswillbealimitationonDitikeni’sabilitytogrowbutwestillhaveopportunitieseveniftheyareconstricted.
Afteryear-end,however,ourjointventurewithMichaelhouseSchool,MDET,hasbeenofferedfurtherfundingofR5milliononveryfavourableterms.ThiswillenableMDETtobuildameaningfulbalancesheet.
Ditikeniwill focusonourtwoprimestrategies: tonurture theendowmentfund(fromwhichdistributionstoshareholdersaremade)andtooptimizeourBEEportfolio.
TheendowmentfundperformedwellinFY2012andgrewby17%.DividendincomewasR986420,ayieldofmorethan6%onhistoricalcost.Theinvestmentstrategyisasimpleone-weseekdividendyield.Overtime,theaimistoachievedividendgrowthinexcessoftherateofinflation,andmorethan5%perannumontheoriginalinvestedcapitalaftertax.Thisincomeflowsthroughtoourshareholders,andwehaveincreasedthedistributioneveryyearsince2007.
Fluctuations in the market value of the endowment fund do not concern us, whetherupordown.Incomingdividendflowshavebeenstrong in thepast yearand that is theimportant thing. Future distributions to shareholders will depend on economicdevelopments,however.
TheBEEportfolioconsistsoftwentyoneseparateholdings.Duringtheyearwesoldone-AVISVanRentalsEasternCape-andboughta23%stakeinastockbroker,ConstantCapital.TheAVISVanRentalsinvestmentwassuccessfulforus.Itwasoriginallyboughtforcash,anditssalerealizedanInternalRateofReturnof44%pa.
Mostof thecompanies in theBEEportfolioareperformingwell,anddividendflow isincreasingfromalargernumberofcompanies,includingalargeandawelcomemaidendividendfromSphereafteryearend.Weexpectmoreofourpartnerstopaydividendsinthecomingyear.
ManyofourBEEportfoliocompaniesarerisingrapidlyinvalueasprofitsincreaseanddebtispaiddown,sothedisclosedvalueofourBEEholdingshasrisenconsiderablyinthepastyear.Weareasconservativeinstatingvalueastheaccountingrulesallowustobe.Shareholdersshouldrecognizethatincreasesanddecreasesin“fairvalue”areephemeral.Ourboardconcentratesoncashrealizationsanddividendinflows.Thesearereal.
WesaidgoodbyetoNontobekoMoletsaneasalong-servingmemberoftheboard.Wearemostgratefulforhercontribution.
My thanks aredue to all themembersof theboard, and if Imay single themout, themembersoftheExecutiveCommitteeespecially,fortheiralways-dedicatedserviceduringtheyear.
SahraRyklief
Chairperson
Ditikeni board of directors
ditikeni Annual Report 2012
Black ownership 99%
Black women ownership 56%
New entrants 99%Afullypaid-upinvestmentbyDitikeniconfers
thefull20/20pointsundertheownershipcomponentoftheBEECodes.
Greg ErasmusSeniorprojectmanagerinthe
telecomssector
Nomabelu Mvambo-DandalaExecutiveDirectorofthe
DiakoniaCouncilofChurches
Gordon YoungInvestmentAdvisor
Email:gordonyoung@ditikeni.co.za
D i r e c t o r s
T h e Te a m
Sahra Ryklief(Chairperson)
GeneralSecretary,InternationalFederationofWorkers’EducationAssociations
Bandi BikoExecutiveDirector,Social&Early
ChildhoodDevelopment,CityofCapeTown
Duma NkosiSeniorcivilservantandchairmanoftheLocalGovernmentSETA.
Rod BulmanAfounderofTCOE,boardmemberoftheChurchLand
Project,andpublicparticipationspecialist.
Daschendran (Dasi) Moodley
Directorofcompanies
Amber OlaleyeFinancialmanagement
consultant
Kurt MillerInvestmentAdvisor
Email:kurtmiller@ditikeni.co.za
Michael HandsCompanySecretary
Email:michaelhands@ditikeni.co.za
Reuben DengeActingCEO,
JohannesburgMarket
Marcella Naidoo NationalDirector,BlackSashTrust
Allan WentzelConsultingCA,mainlytoNGOs
D i r e c t o r s & T h e t e a m
ditikeni Annual Report 2012
F i n a n c i a l R e v i e w
ditikeni Annual Report 2012
F i v e y e a r f i n a n c i a l r e v i e w
Combinedauditedresultsfortheyearsended29February:
ABRIDGED STATEMENTS OF COMPREHENSIVE INCOME 2012 2011 2010 2009 2008 R R R R RRevenue 28,390,193 11,823,219 8,050,170 4,509,858 34,054,316 Dividend&feeincome 1,571,650 1,204,344 3,658,156 1,991,320 32,461,098Interest 222,918 338,197 1,000,816 1,560,363 1,380,846Fairvalueadjustments& shareofprofitfromassociates 26,595,625 10,280,678 3,391,198 958,175 212,372
Expenditure 7,973,995 4,461,371 2,634,642 3,190,698 4,173,851 Operatingexpenditure 2,530,969 2,035,313 1,586,833 2,193,972 1,274,172Impairments&shareoflosses fromassociates 1,000,000 - 15,845 346,864 2,095,783Financecosts 1,477,263 1,006,900 346,872 426,742 214,539Taxation 2,965,763 1,419,158 685,092 223,120 589,357 Total comprehensive income 20,416,198 7,361,848 5,415,528 1,319,160 29,880,465
ABRIDGEDSTATEMENTSOFFINANCIALPOSITION 2012 2011 2010 2009 2008 R R R R RASSETS Non-currentassets 106,766,197 62,105,546 33,013,795 23,217,795 18,559,840Currentassets 3,551,936 3,182,504 10,346,129 11,865,219 16,102,139Total assets 110,318,133 65,288,050 43,359,924 35,083,014 34,661,979
EQUITY & LIABILITIESEquity 60,258,062 40,744,892 34,234,957 29,623,118 29,021,539Non-currentliabilities 47,935,459 21,715,692 6,286,360 2,914,267 2,443,098Currentliabilities 2,124,612 2,827,466 2,838,607 2,545,629 3,197,342Total equity & liabilities 110,318,133 65,288,050 43,359,924 35,083,014 34,661,979
Ordinarysharesinissue 2,860,267 2,860,267 2,860,267 2,860,267 2,860,267Netassetvaluepershare(cents) 2,106.73 1,424.51 1,196.91 1,035.68 1,014.64Earningsperordinaryshare(cents) 713.79 257.38 189.34 46.12 1,044.67Distributionsperordinaryshare(cents) 31.6 29.8 28.1 25.1 22.4
The audited reports of the independent auditors, Nolands, are available for inspection at Ditikeni’s registered office.
N a t u r e o f b u s i n e s sDitikeniisaninvestmentholdingcompany.Itmakeslong-terminvestmentsasabroad-basedBEEentitywithaviewtosustainedcapitalgrowth.
S t r u c t u r eDitikeni Investment Company Limited is a public limited company. The Ditikeni Trust is an associated mirror-imageentity,whosebeneficiariesarethesameasDitikeni’sshareholders,andwhosetrusteesarethesameasDitikeni’sdirectors.TheTrustwasestablishedtoensurecompliancewiththeBEECodesinparticularinstancesandtoholdlong-terminvestmentsonbehalfofthebeneficiaries.TheTrustismanagedbytheCompany.Forconvenience,thisreportcoverstheactivitiesoftheTrustaswellastheCompanyonaconsolidatedbasis.
TheTrustobtainedthestatusofaPublicBenefitOrganizationafteryearend.
G o v e r n a n c eDitikeniiscontrolledbyaBoardofDirectorsthatmeetstwiceannually.AnExecutiveCommitteeconsistingof: > BandiBiko > RodBulman > GregErasmus > SahraRyklief > AllanWentzelmeetsmoreoftenasrequired.TheAuditCommittee’smembersareBandiBiko,RodBulman,AmberOlaleye,SahraRyklief(chair),AllanWentzel.Thiscommitteehasdischargedallthosefunctionsdelegatedtoitintermsofsection94oftheCompaniesActNo.71of2008.
AnInvestmentCommitteevetsinvestmentsforthepreferencesharepools.Themembersare: > GodfreyAlbertyn (METAM) (SeriesI) > RodBulman (Ditikeni) (SeriesIandSeriesII)(alternate:GregErasmus) > ChristophKuhn (OldMutual) (SeriesI) > AllanWentzel (Ditikeni) (SeriesIandSeriesII) >DavidPettit(BDET)(SeriesII)
Ascheduleofpowersofresponsibilityforthevariousbodiesandofficebearershasbeenapprovedbytheboard.
R e v i e w o f o p e r a t i o n sThegroupconcludedonenewinvestmentduringtheyearunderreview,a23%interestinConstantCapital(Pty)Ltd,alicensedmemberoftheJohannesburgStockExchange.
ThedisputeconcerningtheinvestmentinTheESOPShop(Pty)LtdwasresolvedbythepaymentofacashamounttoDitikeni.
D i s t r i b u t i o n s > Aspecialdistributionof100centspersharewaspaidinAugust2007. > Ordinarydistributionnumber1of20centspersharewaspaidinJuly2007. > Ordinarydistributionnumber2of22.4centspersharewaspaidinFebruary2008. > Ordinarydistributionnumber3of25,1centspersharewaspaidinFebruary2009. > Ordinarydistributionnumber4of28.1centspersharewaspaidinFebruary2010. > Ordinarydistributionnumber5of29.8centspersharewaspaidinFebruary2011.>Ordinarydistributionnumber6of31.6centspersharewaspaidinFebruary2012.
AtotalofR7.3millionhasbeendistributedtoshareholderstodate.
D i r e c t o r s ’ r e p o r t
ditikeni Annual Report 2012
S h a r e h o l d e r sTherewerenochangestotheshareholderregister.Ditikenicurrentlyhas19shareholders.
All Ditikeni’s shareholders are non-profit organizations working in black communities, making Ditikeni a 100%broad-basedempowermentcompany.
B o a r d o f D i r e c t o r sMsNontobekoMoletsaneretiredfromtheboardduringtheyear.ThecompanyismostgratefultoNontobekoforhervoluntaryservicesovertheyears.Therewerenootherchangestotheboard.
D i r e c t o r s ’ i n t e r e s t i n c o n t r a c t sDirectorsheldnointerestincontractsduringtheyearunderreview.
D i r e c t o r s ’ r e m u n e r a t i o nDirectorsreceiveameetingattendancefeeofR3000permeeting.BoardattendancefeesamountedinalltoR60000.CommitteeattendancefeesamountedtoR97000.
M a j o r s h a r e h o l d e r sThefollowingshareholdersownmorethan5%ofDitikeni’sissuedsharecapital: > TheBlackSashTrust > LabourResearchService > NewWorldFoundation > SocialChangeAssistanceTrust > TrustforCommunityOutreachandEducation
A u d i t o r sNolands.
R e g i s t e r e d o f f i c eThecompany’sregisteredofficeremains:204PremierCentre,451MainRoad,Observatory,CapeTown,7925.
S o c i a l a u d i t sDitikeniappliesethicalcriteriatoitsinvestmentsandgamblingandarmamentsareexcluded.Aprogrammeofsocialauditsofallourexistinginvestmentpartnersisconducted.
P r e f e r e n c e s h a r e sTheSeriesIpreferencesharepoolisclosed.PreferencesharedividendsofR1,136,456werepaidduringtheyearandtherearenoarrears.
AnInterimLoanofR710000inrespectoftheSeriesIIpreferenceshareswasdrawndownduringtheyearforthepurposeofacquiringtheMTNZakheleinvestment.Subsequenttoyearend,theInterimLoanswereconvertedtoSeriesIIpreferenceshares,andinterestwaspaidinfull.TheSeriesIIClosingDatewas31March2012.
S t a f f a n d a d v i s o r sCompanysecretarialandaccountingdutiescontinuetobeperformedbyMrMichaelHands.TheInvestmentAdvisorsareMrGordonYoungandMrKurtMiller.
ditikeni Annual Report 2012
Association for Rural Advancement (AFRA)-workswithruralpeopleinKwaZulu-Natalhelpingthemaddresstheirlandanddevelopmentissues.Chair:ShirinMotala.Director:StephenHulbert.Tel:(033)3457607/Fax:(033)3455106/Email:afra@afra.co.za/Website:www.afra.co.za
Black Sash Trust-TheBlackSashoperatessevenadviceofficeswhichprovidepara-legal,conflictresolution,educationandcounsellingservices.Chair:SibongileMkhabela.Director:MarcellaNaidoo.Tel:(021)6866952/Fax:(021)6866971/Email:mnaidoo@blacksash.org.za/Website:www.blacksash.org.za
Cala University Students Association-CalusaoperatesintheChrisHaniDistrictMunicipality,helpingpeoplegainaccesstothelandrestitutionprogramme,andhelpstoresolvelocalgovernmentissues
relatingtoservicedeliveryintheEmalaheniandFakhisizwemunicipalities.Chair:MandlenkosiMqotyana.Director:FaniNcapayi.Tel:(047)8770204/Fax:(047)8770143/Email:fncapayi@gmail.com/Website:www.calusa.org.za
Christian Development Trust-TheCDTmanagesfunds,makesloanstochurches,investsinBEEandsocialinvestmentcompanies,andadvisesChristianorganisationsonfundingandstatutorymatters.Chair:BishopJoSeoka.CEO:LouiseBallot.Tel:(011)4631809/Fax:(011)4631640/Email:allan@cdtrust.co.za/Website:www.cdtrust.co.za
Centre for Early Childhood Development Trust-WorkinginanumberofAfricancountries,thisinternationallyacclaimedcentreprovidestraining,supportandadviceonearlychildhooddevelopment,andconductsresearchespeciallyrelatedtotheAfricancontext.Chair:EleanorKuhn.Director:EricAtmore.Tel:(021)6832420/Fax:(021)6835838/Email:cecd@iafrica.com/Website:www.cecd.org.za
Centre for the Study of Violence & Reconciliation-Thecentreworksforreconciliationthroughviolence-preventioninitiatives,empowermentofvictims,institutionaltransformation,
andtheredressingofinjustice.Chair:TetoRadipole.Director:DelphineSerumaga.Tel:(011)4035650/Fax:(011)3396785/Email:info@csvr.org.za/
Website:www.csvr.org.za
Church Land Programme-TheCLPiscommittedtotheimprovementofthelivesofpeopleinvolvedwithlandissuesand/orwithchurch-ownedland,particularlywomenandthepoorest.
Chair:MadalitsoMtine.Director:GrahamPhilpott.Tel:(033)2644380/ Fax:(033)3455368/Email:graham@churchland.co.za/Website:www.churchland.co.za
Development Action Group-DAGisaleadingnon-profitorganisationworkingthroughoutSouthAfricatofightpovertyandpromoteintegratedurbanenvironments.Chair:ThaboMashologu.CEO:JosetteCole.Tel:(021)4487886/ Fax:(021)4471987/Email:dag@dag.org.za/Website:www.dag.org.za
Diakonia Council of Churches-Theorganisationmobilisesandassistsmemberchurchesfocusingoneconomic,environmentalandsocialjusticeissuesincludinghumanrights,advocacyandHIV/AIDS.Chair:RevIanBooth.Director:NomabeluMvambo-Dandala.Tel:(031)3103500/Fax:(031)3103502/Email:the.director@diakonia.org.za/Website:www.diakonia.org.za
Labour Research Service-TheLRSprovidesresearch,informationandeducationalsupporttomostofSouthAfrica’slargesttradeunions.Chair:JosephMalusi.Director:SaliemPatel.Tel:(021)4471677/Fax:(021)4479244/Email:gabriel@lrs.org.za/Website:www.lrs.org.za
National Institute for Crime Prevention & Reintegration of Offenders NICRO-ASection21company,NICROrunsprogrammessuchasprisonart,victimsupport,economicopportunitycreation,andoffenderreintegrationandhasmovedbeyondtraditionalwelfareapproachestodevelopingcommunity-basedinitiativesandstrategicpartnerships.Chair:JudgeNathanErasmus.Director: SorayaSolomon.Tel:(021)4620017/Fax:(021)4622447/ Email:soraya@nicro.co.za/Website:www.nicro.org.za
D i r e c t o r y o f s h a r e h o l d e r s
ditikeni Annual Report 2012
New World Foundation-Workingforthepast30yearsfromwithinLavenderHill,CapeTown,toeffectchangeinthelivesofthesurroundingcommunity,theNWFpartnerswithothersocialactorstopresentorganisationalskillstraininganddevelop-mentprogrammestobreakthecycleofpoverty,unemployment,violence,abuseandapathy.Chair:Rev.S.Christians.Director:J.deWaal.Tel:(021)7011150/Fax:(021)7019592/Email:nwfdev@mweb.co.za/Website:www.newworldfoundation.org.za
The Nonceba Family Counselling Centre-Nonceba’saimistoreducedrasticallythelevelofchildsexualabuseinKhayelitshaandprovidesupporttothosewhohavebeenabused,bywayofvictimsupportthroughcounselling,andpreventionofabusethrougheducation. Project Leader:NocaweMantayi.Chairperson and Managing Director:HazelBlack.Tel and Fax:(021)3640135/Email:admin@nonceba.org/Website:www.nonceba.org
Social Change Assistance Trust-SCATisagrant-makingbodywhichalsoprovidesorganisationalsupporttoabout60rural,community-baseddevelopmentagencies.Convenor:SueAnderson.Director:AntheaDavids-Thomas.Tel:(021)4182575/Fax:(021)4186850/Email:info@scat.org.za/Website:www.scat.org.za
South African Council of Churches-TheSACCisthenationalbodyofthechurchinSouthAfricaandfocusesonfivekeyareas:emergencyrelief,ensuringjustice,health,povertyeradication,andreconciliationandhealing,incloseassociationwithnineprovincialcouncils.President:TheRightReverendDrJohannesThomasSeokeGeneral Secretary:ReverendMautjiPalaki.Tel:(011)2417800/Fax:(011)4921448/Email:ema@sacc.org.za/Website:www.sacc.org.za
Trust for Community Outreach and Education - TheTCOEconcentratesonruraldevelopment,especiallysmallholdersandsmallfarmersgrapplingwithlandissues.TheTCOEiscentrallyinvolvedinengaginglocalgovernmentforlandaccesstocommonageandappropriateagriculturalsupport.Chair:ProfessorLungiNtsebeza.Director:MerciaAndrews.Tel:(021)6853033/Fax:(021)6853085/Email:mercia@tcoe.org.za/Website:www.tcoe.org.za
Umtapo Centre - TheUmtapoCentreanditstrainingarm,UmemeInnovations,runprogrammesincludingpeaceandanti-racismeducation,literacyforself-relianceandprogrammesforyouthwithinternationalyouthorganisations.Chair:ProfessorBenKhoapaDirector:DeenaSoliar.Tel:(031)3093350/Fax:0313098198/Email:info@umtapocentre.org.za/Website:www.umtapocentre.org.za
Western Cape Association for Persons with Disabilities-TheWCAPDandits21branchesprovidetherapeuticandcounsellingsocialworkservices,groupandcommunityworkandconsumerforumsfortheadvancementofpersonswithphysicaldisabilities.Chair:ThysBlom.Director:JohanJoubert.Tel:(021)5552881/Fax:(021)5552888/Email:director@apd-wc.org.za/ Website:www.apd-wc.org.za
Workers’ Education Project - TheWEPprovidestrainingcoursessuchastrade-unioneducation,labourrelations,financialmanagement,casehandling,paralegalandfundraisingskills,businessskills,writingandpresentationskills,andotherlabourrelatedtopics.Chair:ReubenDenge.Director: ReverendKaiserThibediTel:(011)9433671/Fax:(011)9433671/Email:kaizer@breakeven59.co.za
ditikeni Annual Report 2012ditikeni Annual Report 2012
o u r i n v e s t m e n t p a r t n e r s
BISHOPSDITIKENIEMPOWERMENTTRUSTThisisa50:50jointventurewithDiocesanCollege,CapeTown.www.bishops.org.za
CONSTANTCAPITALDitikeniowns23%ofConstantCapital(Pty)Ltd.ItisamemberoftheJohannesburgStockExchangeandspecializesincross-bordertradetoandfromSouthAfricaandintoAfricanmarkets.www.constantcap.com
BRIMSTONEThislistedcompanyhasawarded50000sharestoDitikeni.www.brimstone.co.za
CHEVRONDitikeniownsapreferenceshareinterestinChevronSAequivalentto1%oftheequity.ChevronproducesanddistributespetroleumproductsundertheCaltexbrand.www.caltex.com
CARECROSSGROUPDitikeniacquired1.8%ofthismanagedhealthcareandpharmaceuticalsgroup,forcash.www.carecross.co.za
ADVANCECALLAdvanceCallisaPretoria-basedcallcentrebusiness,specialisingasacommunicationshublinkingmultiplesiteswithmultipleservicesuppliers.Ditikeniowns30%.www.advancecall.co.za
AFRICANPIONEERLIMITEDDitikeniowns3.8%ofAfricanPioneerInvestments,thePortElizabeth-basedempowermentcompany.www.africanpioneer.co.za
BUSINESSCONNEXIONDitikeniisaparticipantintheBEEstructureofthelistedBusinessConnexionGroup.Thestakeisfullyfunded.Ditikeniowns0.45%ofBCG.www.bcx.co.za
EQUILLOREEquilloreisaleadingprivatedisputeresolutioncompany.Ditikenihas2.5%.www.equillore.co.za
HWBCOMMUNICATIONSHWBisaCapeTown-basedpublicrelationsandcommunicationsagencyandis22%ownedbyDitikeni.www.hwb.co.za
ditikeni Annual Report 2012
VODACOMYEBOYETHUDitikeniwasallocated31800sharesintheVodacomempowermentscheme,plusafurther2550sharesindirectly.www.vodacom.co.za
SPHEREHOLDINGSDitikeniowns4.26%ofthissuccessfulprivateequitycompany.www.sphereholdings.co.za
MTNZakheleDirectlyandindirectlyDitikenisubscribedfor50750sharesinthispublicoffer,forcash.www.mtnzakhele.co.za
NREFDitikeniisabeneficiary(26.74%)ofthismininginvestmentvehicle,whichhasconcludedthreetransactionstodate.www.nref.co.za
OCSAOccupationalCareSouthAfricaprovidesoutsourcedmedicalandnursingservicestocompaniesfortheiremployees.Ditikeniowns26%.www.ocsa.co.za
MARSHDitikeniowns2%oftheSouthAfricansubsidiaryofinsurancebrokersMarsh.www.marsh-africa.com
MAITLANDDitikeniowns10%ofMaitlandFundServices,whichprovidesoutsourcedadministrationservicestoassetmanagers.www.maitlandgroup.com
JANDJGROUPDitikeniowns3%oftheJandJGroup,aleadingempowermentgroup.www.jandjgroup.co.za
THEKELLYGROUPDitikeniowns5%ofKelly,alistedstaffingsolutionsgroup.www.kellygroup.co.za
MICHAELHOUSEDITIKENIEMPOWERMENTTRUSTThisisa50:50jointventurewithMichaelhouseschoolinKwaZuluNatal.www.michaelhouse.org
OVATIONSDitikeniowns10%ofOvations,whichprovidesITconsultingservicestothefinancialsector.www.ovationsgroup.com
ditikeni Annual Report 2012
The Association for Rural Advancement (AFRA)The Black Sash Trust
Cala University Students Association (Calusa)CDT Foundation Inc.
Centre for Early Childhood Development TrustCentre for the Study of Violence & Reconciliation
Church Land ProgrammeDevelopment Action Group
Diakonia Council of ChurchesLabour Research ServiceNew World Foundation
NicroThe Nonceba Centre Trust
SA Council of ChurchesSocial Change Assistance Trust
Trust for Community Outreach and EducationUmtapo Trust
Workers’ Education ProjectWestern Cape Association for Physically Disabled
Advance Call Brimstone
Business Connexion Group carecross Group
Chevron Constant capital
Equillore Kelly Group
MTn zakhele Natural Resources Empowerment Fund
OCSA Sphere
Vodacom Yebo Yethu
African Pioneer Bishops Ditikeni Empowerment Trust
HWB Communications J and J Group
Maitland Fund Services Marsh
Michaelhouse Ditikeni Empowerment Trust
Ovations Technologies
D i t i k e n i S t r u c t u r e
Shareholders 100%
Ditikeni Investment Company Limited(Public Company)
Beneficiaries 100%
Ditikeni Trust(Registered Trust)
ditikeni Annual Report 2012
Ntismbintle Mining Sable Platinum
I N V E S T M E N t S R E A L I S E D
2011
2007
2006
ditikeni Annual Report 2012
f i n a n c i a L s t a t e m e n t s
ditikeni Annual Report 2012
C o m b i n e d S t a t e m e n t s o f C o m p r e h e n s i v e I n c o m efor the year ended 29 February 2012 2012 2011 R RRevenue 1,571,650 1,204,344 Less operating expenses (2,530,969) (2,035,313) Operating loss (959,319) (830,969) Fairvalueadjustments 1,704,096 1,026,717Impairments (1,000,000) -Interestreceived 222,918 338,197Interestpaid (205,224) (74,964)Realisedgainondisposalofinvestment 1,670,961 (16,486)Preferencedividendpaid (1,272,039) (931,936)Incomefromequityaccountedinvestments 14,652,805 4,502,711 Net profit before taxation 14,814,198 4,013,270 Taxation (2,965,763) (575,854) Profit for the year 11,848,435 3,437,416 Othercomprehensiveincome,netoftax 8,567,763 3,924,432 Total comprehensive income for the year 20,416,198 7,361,848
C o m b i n e d S t a t e m e n t s o f F i n a n c i a l P o s i t i o n29 February 2012 2012 2011 R RASSETSNon-current assets 106,766,197 62,105,546 Investmentsinassociatecompanies&trusts 27,691,812 15,417,614Investments 78,561,648 46,192,088Furnitureandfittings 3,089 4,679Deferredtax 499,748 481,265Loansreceivable 9,900 9,900
Current Assets 3,551,936 3,182,504 Otherreceivables 31,116 33,136Cash 3,520,820 3,149,368 Total assets 110,318,133 65,288,050
EQUITY AND LIABILITIESCapital and reserves 60,258,062 40,744,894 Sharecapital 2,960 2,960Revaluationreserve 12,492,195 3,924,432Sharepremium 2,767,674 2,767,674Accumulatedprofit 44,995,233 34,049,828
Non-current liabilities 47,935,459 24,125,148 Interestbearingliabilities 38,009,671 20,131,777Non-interestbearingloans 1,600,000 1,600,000Deferredtax 8,325,788 2,393,371
Current liabilities 2,124,612 418,008 Accountspayable 527,103 404,556Loanspayable 1,548,204 -Non-interestbearingloans 13,452 13,452Taxpayable 35,853 - Total equity and liabilities 110,318,133 65,288,050
ditikeni Annual Report 2012
C o m b i n e d S t a t e m e n t o f C h a n g e s i n E q u i t yfor the year ended 29 February 2012
Issued Revaluation Accumulated
Capital reserve profit Total
R R R R
Balance at 28 February 2010 2,770,634 - 31,464,323 34,234,957
Totalcomprehensiveincome - 3,924,432 3,437,416 7,361,848
Distributiontobeneficiaries - - (851,911) (851,911)
Balance at 28 February 2011 2,770,634 3,924,432 34,049,828 40,744,894
Totalcomprehensiveincome - 8,567,763 11,848,435 20,416,198
Distributiontobeneficiaries - - (903,028) (903,028)
Balance at 29 February 2012 2,770,634 12,492,195 44,995,235 60,258,064
C o m b i n e d S t a t e m e n t s o f C a s h F l o w sfor the year ended 29 February 2012 2012 2011 R RCash flows from operating activities
Cashutilisedinoperations (2,790,387) (1,949,312)Dividendsreceived 3,630,772 1,999,113Distributionstobeneficiaries (903,028) (851,911)Interestreceived 222,918 338,197Interestpaid (205,224) (74,964)Preferencedividendpaid (1,272,039) (931,936)Taxationpaid (649,242) 44,472
Net cash inflow from operating activities (1,966,230) (1,426,341)
Cash flows from investing activities
Acquisitionofinvestments (1,722,427) (21,294,405)Proceedsondisposalofinvestments 4,109,828 1,051,714Proceedsfromanassociateloanrepayment - 956,478
Net cash inflow from operating activities 2,387,401 (19,286,213)
Cash flows from financing activitiesIncreaseinnoninterestbearingloans - 13,452Increase(decrease)ininterestbearingloans (49,719) 74,400Proceedsfromissueofpreferenceshares - 13,602,700
Net cash inflow from financing activities (49,719) 13,690,552
Netchangeincashandcashequivalents 371,452 (7,022,002)
Cashandcashequivalentsatbeginningoftheyear 3,149,368 10,171,370
Cash and cash equivalents at end of year 3,520,820 3,149,368
N A T U R A L R E S O U R C E S
E M P O W E R M E N T F U N D
DitikeniexecutestransactionsintheminingsectorthroughtheNREF.Ditikeniowns26%oftheNREF,andhasthemanagementcontract.Visitwww.nref.co.za.
The NREF holds two significant investments:
NtismbintleownsashareinBHPBilliton’sNorthernCapemanganeseoperation,andinTshipiMining,anewmanganesemineunderconstruction,alsointheKalaharifield.Visitwww.tshipi.co.za.
ThisjointventureispartofthelargerSablePlatinumgroup,whichownsplatinumprospectingrightsintheWesternLimb.Visitwww.sableplatinum.co.za
4.8%
10%
ditikeni Annual Report 2012
R u r a l W o r k
The theme of this annual report is “Rural Work”. The original art works represented here - charcoal on board - were drawn by the artist Nkoali Nawa, who was especially commissioned by Ditikeni. The framed originals are on permanent display at Ditikeni’s offices.
Nkoali Nawa was born in the Free State goldfields area and became a gold miner. He completed blasting training in 1991, and was a union shop steward, but turned to art and later obtained a diploma and degree in fine art from Technikon Free State. He has exhibited in Johannesburg, Cape Town and Welkom. He has completed commissions for the Mineworker Development Agency, the National Union of Mineworkers, the Labour Research Service, and most recently Community House, in Salt River, Cape Town.
Nkoali Nawa may be reached at: nawane@ananzi.co.za
A r t i n b u s i n e s s
Ditikeni has initiated a new scheme by which companies can commission an original work of art for their annual reports.
HWB Communications, a Ditikeni investment partner, manages the scheme. A list of artists and images of their work has been sourced from a Spier arts initiative and can be obtained from HWB. Companies and organizations may either commission a new work or buy an existing work. The package includes the design and layout work of the annual report, and a public launch if required. The image will be designed into the annual report, and the original will be supplied, framed, for display in your boardroom. Companies get an original and unique feature for their annual report, as well as a picture for their boardroom, while supporting a local artist.
E-mail your enquiries to Wayne Lowe at wayne@hwb.co.za.
ditikeni Annual Report 2012
D I T I K E N I I N V E S T M E N T C O M P A N Y L I M I T E D
REGISTRATION NUMBER: 1999/008292/06
THE DITIKENI TRUST: REGISTRATION NUMBER IT / 2431 / 2004
REGISTERED ADDRESS: 204 Premier Centre
451 Main Road
Observatory
7925
POSTAL ADDRESS: PO Box 13511
Mowbray
7705
TELEPHONE: 021 447 9277
FAcsIMILE: 021 448 8067
E-MAIL: info@ditikeni.co.za
WEBSITE: www.ditikeni.co.za
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