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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


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


Black ownership 99%

Black women ownership 56%

New entrants 99%Afullypaid-upinvestmentbyDitikeniconfers

thefull20/20pointsundertheownershipcomponentoftheBEECodes.

Greg ErasmusSeniorprojectmanagerinthe

telecomssector

Nomabelu Mvambo-DandalaExecutiveDirectorofthe

DiakoniaCouncilofChurches

Gordon YoungInvestmentAdvisor

Email:[email protected]

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


Michael HandsCompanySecretary


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


F i n a n c i a l R e v i e w


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


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.


Association for Rural Advancement (AFRA)-workswithruralpeopleinKwaZulu-Natalhelpingthemaddresstheirlandanddevelopmentissues.Chair:ShirinMotala.Director:StephenHulbert.Tel:(033)3457607/Fax:(033)3455106/Email:[email protected]/Website:www.afra.co.za

Black Sash Trust-TheBlackSashoperatessevenadviceofficeswhichprovidepara-legal,conflictresolution,educationandcounsellingservices.Chair:SibongileMkhabela.Director:MarcellaNaidoo.Tel:(021)6866952/Fax:(021)6866971/Email:[email protected]/Website:www.blacksash.org.za

Cala University Students Association-CalusaoperatesintheChrisHaniDistrictMunicipality,helpingpeoplegainaccesstothelandrestitutionprogramme,andhelpstoresolvelocalgovernmentissues

relatingtoservicedeliveryintheEmalaheniandFakhisizwemunicipalities.Chair:MandlenkosiMqotyana.Director:FaniNcapayi.Tel:(047)8770204/Fax:(047)8770143/Email:[email protected]/Website:www.calusa.org.za

Christian Development Trust-TheCDTmanagesfunds,makesloanstochurches,investsinBEEandsocialinvestmentcompanies,andadvisesChristianorganisationsonfundingandstatutorymatters.Chair:BishopJoSeoka.CEO:LouiseBallot.Tel:(011)4631809/Fax:(011)4631640/Email:[email protected]/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:[email protected]/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:[email protected]/

Website:www.csvr.org.za

Church Land Programme-TheCLPiscommittedtotheimprovementofthelivesofpeopleinvolvedwithlandissuesand/orwithchurch-ownedland,particularlywomenandthepoorest.

Chair:MadalitsoMtine.Director:GrahamPhilpott.Tel:(033)2644380/ Fax:(033)3455368/Email:[email protected]/Website:www.churchland.co.za

Development Action Group-DAGisaleadingnon-profitorganisationworkingthroughoutSouthAfricatofightpovertyandpromoteintegratedurbanenvironments.Chair:ThaboMashologu.CEO:JosetteCole.Tel:(021)4487886/ Fax:(021)4471987/Email:[email protected]/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:[email protected]/Website:www.diakonia.org.za

Labour Research Service-TheLRSprovidesresearch,informationandeducationalsupporttomostofSouthAfrica’slargesttradeunions.Chair:JosephMalusi.Director:SaliemPatel.Tel:(021)4471677/Fax:(021)4479244/Email:[email protected]/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:[email protected]/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


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:[email protected]/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:[email protected]/Website:www.nonceba.org

Social Change Assistance Trust-SCATisagrant-makingbodywhichalsoprovidesorganisationalsupporttoabout60rural,community-baseddevelopmentagencies.Convenor:SueAnderson.Director:AntheaDavids-Thomas.Tel:(021)4182575/Fax:(021)4186850/Email:[email protected]/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:[email protected]/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:[email protected]/Website:www.tcoe.org.za

Umtapo Centre - TheUmtapoCentreanditstrainingarm,UmemeInnovations,runprogrammesincludingpeaceandanti-racismeducation,literacyforself-relianceandprogrammesforyouthwithinternationalyouthorganisations.Chair:ProfessorBenKhoapaDirector:DeenaSoliar.Tel:(031)3093350/Fax:0313098198/Email:[email protected]/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:[email protected]/ 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:[email protected]

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


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


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)


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


f i n a n c i a L s t a t e m e n t s


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


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%


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: [email protected]

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 [email protected].


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: [email protected]

WEBSITE: www.ditikeni.co.za

investing is an art - ditikeniditikeni.co.za/wp-content/uploads/2014/08/ditikeni-ar...which...

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