a slice of rural south africa

ditikeni Annual Report 2013 - 01

Contents

Copywriting and editing: HWB COMMUNICATIONSDesign and layout: ONE HUNDRED PERCENT - DESIGN & MARKETING

Photographer: WARREN NELSON - DESIGNWORX

highlights 2013 01 Empowerment Status 02

CHAIRPERSON’S REVIEW 2013 03 Directors & the team 04 Financial Review 05 Directors’ Report 06 A slice of rural South Africa IN photos 08

Directory of shareholders 12 Our investment partners 14 Ditikeni structure 16 INVESTMENTS REALISED 17 Financial Statements 18


Highlights of the year to February 2013

Dividendincome UP - 72%

Revenue(excludingfairvalueadjustments) UP - 163%

Operatingcosts DOWN - 10%

Netassetvaluepershare UP - 15%toR24.27

Distributionstobeneficiaries UP - 6%

Distributionspaidtobeneficiaries: totaltodate - R8.3million

Netcashflowfromoperatingactivities - R1.8million(2012:-R1.9million)

EarningsyieldonNAV - 14.6%

TheDitikeniTrusthasachievedtax-freestatusasaPublicBenefitOrganisation

02 - ditikeni Annual Report 2013

Black ownership 95%

Black women ownership 54%

New entrants 95%Afullypaid-upinvestmentbyDitikeniconfersthefull20/20pointsundertheownershipcomponentoftheBEECodes.

Empowerment Status


Chairperson’s Review 2013 A Slice of Rural Life

A century ago, in 1913, the Natives Land Act was passed, excluding any ‘native’ from purchasing, hiring or acquiring in any land outside the scheduled native reserves. The act codified the steady dispossession of indigenous landowners and share croppers, reducing the majority to tenured labourers. Today, 100 years later, their descendants in rural communities in the former reserves are the poorest of the poor in our country.

Several DITIKENI shareholders service the land restitution and livelihood struggles of rural communities. In this annual report, I invite you to share with me my exposure to some of our shareholder projects and meet some of the people and communities our shareholders service. You will search long and hard for more worthy recipients.

As a labour researcher and educator I am well aware of the statistics in our country. However, no amount of theoretical knowledge prepares a city dweller for the bitter lack of resources at the disposal of those struggling to eke a rural livelihood, nor for the amount of time required to perform the basic operational functions of daily existence and work. Yet despite having so little, all of the communities I visited overwhelmed me with the wealth of their spirit and generosity. Every group had a realisable plan for a better future and the necessary resolve to accomplish it. Every host had something to offer us, a glass of cola; a feast of boiled amadumbe and sweet potatoes with tea; a freshly baked cake.

Our shareholders make the attainment of these modest plans possible helping to sustain this magnificent resolve against all odds. My brief visit to their projects renewed my commitment to the rural development practitioners who dedicate their time, resources and energy to support and enhance the capacity of rural communities to improve their conditions. I was impressed by the amount of work that is done with so few resources. Austere offices with minimal conveniences, no company cars at their disposal, despite the vast distances between projects. Not a cent is wasted.

DITIKENI was created to provide an endowment, “something to lean on”, for our shareholders. Donor grants to shareholder organisations are shrinking at an alarming rate, as development funds from the north are reduced in the wake of the economic recession. This is affecting operational resources, staffing and hence the services of our shareholders to the communities they serve. Growth of DITIKENI’s capital can go a long way towards compensating for these disturbing developments. On behalf of the board of Directors, I want to thank our investment partners, current and future, for their role in creating sustainable rural partnerships and a better future for all.

SahraRyklief

Chairperson

Ditikeni board of directors


Greg ErasmusSeniorprojectmanagerinthe

telecomssector

Nomabelu Mvambo-DandalaExecutiveDirectorofthe

DiakoniaCouncilofChurches

D i r e c t o r s

Sahra Ryklief(Chairperson)

GeneralSecretary,InternationalFederationofWorkers’EducationAssociations

Duma NkosiSeniorcivilservantandchairmanoftheLocalGovernmentSETA

Deena BoschSCATTrustee

Rod BulmanAfounderofTCOE,boardmemberoftheChurchLand

Project,andpublicparticipationspecialist

Amber OlaleyeFinancialmanagement

consultant

Gordon YoungInvestmentAdvisor

Email:[email protected]

T h e Te a m

Michael HandsCompanySecretary


Reuben DengeActingCEO,

JohannesburgMarket

Allan WentzelConsultingCA,mainlytoNGOs

Directors & The team


Financial Review

Five year financial review

Combinedauditedresultsfortheyearsended28February:

ABRIDGED STATEMENTS OF COMPREHENSIVE INCOME 2013 2012 2011 2010 2009 R R R R RRevenue 12,463,027 28,390,193 11,823,219 8,050,170 4,509,858Dividend&feeincome 4,135,471 1,571,650 1,204,344 3,658,156 1,991,320Interest 130,673 222,918 338,197 1,000,816 1,560,363Fairvalueadjustments&shareofprofitfromassociates 8,196,883 26,595,625 10,280,678 3,391,198 958,175

Expenditure 2,333,568 7,973,995 4,461,371 2,634,642 3,190,698Operatingexpenditure 2,267,054 2,530,969 2,035,313 1,586,833 2,193,972Impairments&shareoflossesfromassociates - 1,000,000 - 15,845 346,864Financecosts 1,407,671 1,477,263 1,006,900 346,872 426,742Taxation (1,341,157) 2,965,763 1,419,158 685,092 223,120

Totalcomprehensiveincome 10,129,459 20,416,198 7,361,848 5,415,528 1,319,160

ABRIDGED STATEMENTS OF FINANCIAL POSITION 2013 2012 2011 2010 2009 R R R R RASSETS Non-currentassets 106,316,036 106,766,197 62,105,546 33,013,795 23,217,795Currentassets 2,708,990 3,551,936 3,182,504 10,346,129 11,865,219Totalassets 109,025,026 110,318,133 65,288,050 43,359,924 35,083,014

EQUITY&LIABILITIESEquity 69,430,311 60,258,062 40,744,892 34,234,957 29,623,118Non-currentliabilities 38,261,943 47,935,459 21,715,692 6,286,360 2,914,267Currentliabilities 1,332,772 2,124,612 2,827,466 2,838,607 2,545,629Totalequity&liabilities 109,025,026 110,318,133 65,288,050 43,359,924 35,083,014

Ordinarysharesinissue 2,860,267 2,860,267 2,860,267 2,860,267 2,860,267Netassetvaluepershare(cents) 2,427.41 2,106.73 1,424.51 1,196.91 1,035.68Earningsperordinaryshare(cents) 354.14 713.79 257.38 189.34 46.12Distributionsperordinaryshare(cents) 33.5 31.6 29.8 28.1 25.1

The audited reports of the independent auditors, Nolands, are available for inspection at Ditikeni’s registered office.


Nature of businessDitikeniisaninvestmentholdinggroup.Itmakeslong-terminvestmentsasabroad-basedBEEentitywithaviewtosustainedcapitalgrowth.

Results for the yearLeavingasidethefairvalueadjustmentsimposedonusbytheIFRSaccountingstandards,andwhichhavelittleinter-pretativesignificance,Ditikeni’sresultsforFY2013weresatisfactory.Revenueroseby163%,anddividendincome,includingfromassociates,roseby72%-thoughmuchofthiscameintheformofspecialdividendswhichwillnotberepeated.Operatingexpenditurewasreducedby10%.TheoutcomeforshareholderswasanincreaseinNetAssetValuepershareof15%toR24.27-theseshareswereissuedin2000atR1.00. TheInternalRateofReturnforshareholderstodateis31%.Operatingcashflowwaspositive,whereasitwasnegativeinthepreviousyear.

StructureDitikeni Investment Company Limited is a public limited company. The Ditikeni Trust is an associated mirror-imageentity,whosebeneficiariesarethesameasDitikeni’sshareholders,andwhosetrusteesarethesameasDitikeni’sdirectors.TheTrustwasestablishedtoensurecompliancewiththeBEECodesincertainparticularinstancesandtoholdlong-terminvestmentsonbehalfofthebeneficiaries.TheTrustismanagedbytheCompany.Forconvenience,thisreportcoverstheactivitiesoftheTrustaswellastheCompanyonacombinedbasis.

TheTrustisaPublicBenefitOrganisation.

GovernanceDitikeniiscontrolledbyaBoardofDirectorsthatmeetstwiceannually.AnExecutiveCommitteeconsistingof: > BandiBiko(resigned1September2012) > RodBulman > GregErasmus > SahraRyklief > AllanWentzelmeetsmoreoftenasrequired.

The Audit Committee’s members are Rod Bulman, Amber Olaleye, Sahra Ryklief (chair), and Allan Wentzel.Thiscommitteehasdischargedallthosefunctionsdelegatedtoitintermsofsection94oftheCompaniesActNo.71of2008.

AnInvestmentCommitteevetsinvestmentsforthepreferencesharepools.Themembersare: > GodfreyAlbertyn (METAM) (SeriesI) > RodBulman (Ditikeni) (SeriesIandSeriesII)(alternate:GregErasmus) > ChristophKuhn (OldMutual) (SeriesI) > AllanWentzel (Ditikeni) (SeriesIandSeriesII) >DavidPettit(BDET)(SeriesII)

Ascheduleofpowersofresponsibilityforthevariousbodiesandofficebearershasbeenapprovedbytheboard.

Review of operationsThegroupconcludedonenewinvestmentduringtheyearunderreview,onbehalfoftheSeriesIIpreferencesharepool,whichacquired31874sharesinPhuthumaNathi(Pty)Ltd,theblackempowermentvehicleforMultichoiceSouthAfrica.

One-thirdofthestakeinMarshSouthAfricawassoldforcash.Afteryear-end,ourstakeinConstantCapitalreducedto20%,withthetransferof3%tomanagement.

DistributionsA distribution of 33.5 cents per share was made to beneficiaries in February 2013, the sixth consecutive year ofincreasingdistributions.

AtotalofR8.3millionhasbeendistributedtobeneficiariestodate.

ShareholdersTherewerenochangestotheshareholderregister.Ditikenicurrentlyhas19shareholders.

AllDitikeni’sshareholdersarenon-profitorganisationsworkinginblackcommunities,makingDitikenia100%broad-basedempowermentcompany.

Directors’ report

Board of DirectorsMsBandiBikoandMsMarcellaNaidooresignedfromtheboardduringtheyear,andMrDasiMoodleywasremovedasadirector.Thecompanyismostgrateful fortheirserviceovermanyyears.MsDeenaBoschwasappointedasadirectorinFebruary2013.Therewerenootherchangestotheboard.

Directors’ interest in contractsDirectorsheldnointerestincontractsduringtheyearunderreview.

Directors’ remunerationDirectors receive a meeting attendance fee of R3 000 per meeting. Board attendance fees amounted in all toR54000.CommitteeattendancefeesamountedtoR94500.

Major shareholdersThefollowingshareholdersownmorethan5%ofDitikeni’sissuedsharecapital: > TheBlackSashTrust > LabourResearchService > NewWorldFoundation > SocialChangeAssistanceTrust > TrustforCommunityOutreachandEducation

AuditorsNolands.

Registered officeThecompany’sregisteredofficeremains:204PremierCentre,451MainRoad,Observatory,CapeTown,7925.

Social auditsDitikeniappliesethicalcriteriatoitsinvestmentsandgamblingandarmamentsareexcluded.Aprogrammeofsocialauditsofallourexistinginvestmentpartnersisconducted.

Preference sharesTheSeriesIpreferencesharepoolisclosed.PreferencesharedividendsofR1093814werepaidduringtheyearandtherearenoarrears.

TheSeriesIIpreferenceshareschemeclosedon31March2012,andCapitalCommitmentsofR7.7millionwerereceived.ThesumofR2635000wasdrawndownforthefirsttwoinvestments,MTNZakheleandPhuthumaNathi.PreferencesharedividendsofR84186werepaidduringtheyearandtherearenoarrears.

Staff and advisorsCompanysecretarialandaccountingdutiescontinuetobeperformedbyMrMichaelHands.TheInvestmentAdvisorisMrGordonYoung.MrBruceWilliams(KwaZulu-Natal)andMrPeterHall(EasternCape) joinedasAssociateAdvisorsduringtheyear.

ProspectsEconomicconditionsareexpectedtobemoredifficultinthecomingyearortwo.Thisoutlookislikelytoinvolvegreaterpressureoncompaniesandpresagesaweakenvironmentfordeal-making.Whileithasbeenpossibleinthepastsevenyearstoincreaseourannualdistributiontobeneficiariesbyatleasttherateofinflation,theforecastforFY2014islesssatisfactory.Ourabilitytofinancenewtransactionshashoweverbeentransformedbyanewrelationshipwithasignificantprivateequityhousewhichwehopewillstandusingoodsteadinthefuture.

Ditikeni’sdividendincomehasrisensharplyinrecentyears,reducingpressureoncashbalancesandenablingustoavoiduntimelyassetsales.Someofthedividendincome,however,hascomeintheformofspecialdividendswhichwillnotberepeated.MuchdependsonthecontinuedgrowthinregulardividendincomefromourlistedandBEEinvestments.

DitikenicontinuestoseeknewBEEinvestmentsandnumerousopportunitiesarecurrentlybeingpursued.Wearehoweveralsoreadytodisposeofsomeofourmatureinvestmentswhenthetimeandpriceisright.

The main challenge in the coming twelve months is to make arrangements for the redemption of the Series Ipreferenceshares.Discussionswiththeseshareholdershavebeenheldandcontinue.



BLACK SASHThe programmatic work of the Black Sash draws ontheir rich institutional heritage of advocating for socialjustice in South Africa. Their aim is to improve socialprotection, with an emphasis on women and children.They provide rights-based information, educationand training; monitor the efforts for improvements inover 400 community based organisations and provideadvocacy in partnership with them. This on-goingadvocacyisaimedatengagingthecorruptionundermin-ing our public and private sectors and the applicationand reform of competition legislation to ensure moreaccountability of companies implicated in collusion,particularlywithrespecttobasicfoodandservices.

Black Sash Regional Manager Evashnee Naidoo andpara-legal Jerome Bele took me to the Trinity of Life

Health Care Project in Appelsbosch, near Tongaat.There I met community leaders Qina Chamane,DumisileMadonaandNomathembaMhluli.Theirplanis to build a hospice and Community Centre in theirvillage. They provide home based health care forpeopleinthevillagelivingwithHIV/Aids,reachingover200homes;amobileclinic service;andassistancewiththeregistrationofbirthsandgrantapplications.

Co-operation from the various government depart-mentswhoshouldprovidesupportandcompensationfortheirteamofcaregivershasbeenerratic. EvashneeandJerome have assisted the community in meeting thevarious government departments through convening astakeholdermeetinginApril.

A slice of Rural South Africa in photos

UMTAPO CENTREI met Pumzile Yaka, Programme co-ordinator andDirector Deena Soliar of the Umtapo Centre at theIchanga turn-off in Fredville, KwaZulu-Natal. Fromthere we drove a short way to the Rietvallei CombinedSchool,toparticipateintheschool’sassembly.ThePeaceClub was receiving a donation of 20 full soccer kitsfor the school’s all-girl soccer team. The kits had beendonatedbyPumatotheUmtapoCentre.

The Umtapo Centre facilitates the formation of PeaceClubs at schools, of which there are over 300 inKwaZulu-Natal, Eastern Cape, Limpopo and WesternCape. Umtapo provides guidance and facilitation forpeereducationtoenablethePeaceClubtodevelopactionplans and dialogue for developing safer schools,devising improvements at the schools and conductingculturaleventstoraisestudentawarenessofsocialissues.

Dumisile Madona is a pastor and mentor to the 15 caregivers in the village she, along with Nomathemba Mhluli, recruited. The Black Sash has assisted them in providing training and opening dialogue with various government departments.

People waiting outside the Trinity of Life Project Office for the mobile clinic. They wait from the morning, as they are not sure when the car will come.

Qina Chamane provides a building on his small piece of land in the village of Applesbosch for use as the office and clinic of the Trinity of Life Health Care Project.

Vaccination time!


THE CHURCH LAND PROGRAMMEThe Church Land Programme (CLP) was initiated inresponse to the land reform process taking place inSouth Africa. It initially focused on the restitution ofchurchownedlandwhilealsochallengingthechurchtoengageinthenationallandquestionandworkforajustand sustainable agrarian transformation. CLP supportsand journeyswith thosewhoare systematicallyexcludedandimpoverishedintheirstrugglesforlandandjustice,working at a local level with groups of poor people inKwaZulu-Natal and connecting them to broadermovementsnationallyandinternationally.

ItravelledwithCLPprogrammemanagerDavidNtsengtoHowick,intheKwaZulu-NatalMidlandstovisitGogo

Zondi. Gogo Zondi is 90 years old. She has recentlyemerged the victorofaprotractedbattle forownershipof the7,5hectaresof landshehas livedonandfarmedfordecades.Lifewashardwhen,asayoungbrideshefirstmoved onto the farm her husband was born on. Theyreceivednowagestoworkonthefarm.Instead,theyweregivenapieceofthefarmtogrowtheirownproduceandwere also allowed to keep livestock. She witnessed theintroductionofpaymentforlabourinthearea,startingwith wages of R2 – R3 per month. She describes howthis led to a reduction of available land for cultivationand grazing by the tenured labourers, and even greaterimpoverishment.

A helper weeds the soil in Gugu Zondi’s fertile garden. Gugu Zondi shows off the pumpkins drying on her roof.

Pumzile Yaka addresses a regional Peace Club workshop.

Attentive listeners – members of the Peace Clubs in the region listen to Umtapo Centre’s Pumzile Yaka. Happiness as assembly breaks the routine of the school day.


SOCIAL CHANGE ASSISTANCE TRUST (SCAT)SCAT’s mission is to partner with rural,community owned agencies, in order to improve thequality of life in these communities. SCAT supportslocal non-profit community based organisations indevelopment and human rights work in ruralcommunities of the Northern, Eastern and WesternCape.

SCAT’s focus is on human rights, gender equity, HIV/Aids and local economic development. The ruralpartner organisations, which SCAT refers to as LocalDevelopment Agencies (LDAs) are managed by elect-ed members of the communities they serve. LDAs planaccordingtospecificneedsintheirruralcommunityandare held stringently accountable to their communitiesthroughtheirconstitutionandannualgeneralmeetings.SCATofferspara-legalandfinancialmanagementtrain-ingtorepresentativesoftheirpartnerorganisationsandalsoprovidessmallgrants,matchingeveryR1-00raisedinthecommunitywithR5-00.

SCAT executive director Anthea Davids-Thomas andprogramme manager Seth Tladi took us to the NewHope/Ithemba Elitsha Advice Office in Gansbaai andGenadendal. Gansbaai is famous amongst tourists as asharkdivingdestination,butverylittleoftheprofitsmadefromtourismreachthecommunity.Lackofemploymentremains the major challenge in the area, with theIthemba Elitsha Advice Office providing essentialsupport.The Genadendal Advice Office provides a basefor approximately 50 hard working Home BasedCarers. Some of the carers are licensed anti-retroviral drug administrators. These administratorsprovide a life-saving service to some of the peoplelivingwithHIVwhoareunable to leave theirhouses toaccess medication. The office also deals with paralegalissues and offers basic services e.g. making phonecalls,writing a letter, applying for grants, accessing labourrights,helpindealingwiththepoliceandotherissues.

A slice of Rural South Africa in photos (continued)

DIAKONIA WOMEN’S SELF-HELP GROUPSDIAKONIA is an inter-church agency working withchurches and church organisations in the pursuit ofamorejustsociety.Theydothisbyimprovingthequalityof life for the poor, as well as advocating for changesinattitudesandstructureswhichperpetuateinjustice.

DIAKONIA advocates that churches have a uniquecontribution to make to the struggle against povertyand injustice. They aim to facilitate, enable and equipchurches to become places of life and creativity, wherepeople are empowered by their faith to overcome thedespairanddeatharoundthem.

DIAKONIAfieldworkersCyrilandThembitookmetoUmzinyathihighonthehillsabovetheInandaDam,to

visit the Siyathukathukha; Maphepheni and BambananiWomen’s self-help groups. These self-help groups havesuccessfully enabled women members to build theirownhomesoverthepast7years.Thegroupshavebuiltover 20 houses in the area. Thembi assists the womeninthesegroupstoplan,keeprecordsandmanagetheirfinances,andtoaccesstrainingforbrick-making,build-ingandthatchingskills.

ThewomenoftheUmzinyathiself-helpgroupmeeteveryMondaytomakebricks.Theycarrythewaterupfromthedam,approximately2kmdownhill.Theymakeapproxi-mately100bricksinamonth.Ittakes300brickstomakearondavel.Theactualconstructiontakes2months,butthe timing is dependent upon the ability to purchasewindows,doorsandroofingmaterials.

It requires careful handling when lifting the mould to leave an intact brick behind.A productive work-day for the group reaches its end. However, household and child-care chores still lie ahead.


TRUST FOR COMMUNITY OUTREACH AND EDUCATION (TCOE)The TCOE creates strategic partnerships and allianceswithorganisationsworkingonlandandagrarianreformissues.TCOEstimulatesthebuildingof localorganisa-tionsinruralandperi-urbancommunities,anddevelopslocalleadershipoftheseassociationstostrengthentheirattemptstoaccesslandandproductiveassetstoimprovetheirlivelihoods.

Mawubuye is one of TCOE’s member organisations.Mawubuye field worker Reinette Heunis met us in

Suurbraak.SheworkswithCommunityGardenSchemesin Suurbraak, Buffelsjacht Rivier, Swellendam andBarrydalecommunities,whouseseedlingsgrownintheMawubuye nursery in Barrydale. Reinette providesco-ordination, education and advice on small scalegardening to the Community Garden Schemes. Suur-braak,BuffelsjachtRivier,SwellendamandBarrydalearewellknowntouristtownsoftheCape.Yetineverytown,afairdistancefromthepicturesquetowncentre,youfinda township. In the township, work is scarce. Water forcultivationisscarceaswell,withmostgardenershavingtousetapwater,whichisveryexpensive.

Gansbaai field worker Juan Lewis was a manager at the I&J canning Factory in Gansbaai before taking up full-time community work.

The Genadendal Advice Office with Margaret, David and community nurse Linda, who co-ordinates the home based carers to people living with HIV/Aids in Genadendal.

A satisfied client of the Genadendal Advice Office, who received para-legal advice for a work-related dispute.

“I got all these seeds from 10 plants in 2011. Only 3 were seeded, and I dried the seeds and planted a whole field,” says Cornelius Steward.

Reinette Heunis, with seedboxes. “ A fine crop.” The garden of Cornelius Steward.


AssociationforRuralAdvancement(AFRA)-workswithruralpeopleinKwaZulu-Natalhelpingthemaddresstheirlandanddevelopmentissues.Chair:ShirinMotala.ActingDirector:MikeCowling.Tel:(033)3457607/Fax:(033)3455106/Email:[email protected]/Website:www.afra.co.za

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

CalaUniversityStudentsAssociation-CalusaoperatesintheChrisHaniDistrictMunicipality,helpingpeoplegainaccesstothelandrestitutionprogramme,andhelpstoresolvelocalgovernmentissuesrelatingtoservicedeliveryintheEmalaheniandFakhisizwemunicipalities.Chair:MandlenkosiMqotyana.Director:FaniNcapayi.Tel:(047)8770204/Fax:(047)8770143/Email:[email protected]/Website:www.calusa.org.za

CDTFoundation-TheCDTFoundationmanagesfunds,makesloanstochurches,investsinBEEandsocialinvestmentcompanies,andadviseschristianorganisationsonfundingandstatutorymatters.Chair:BishopJoSeoka.CEO:LouiseBallot.Tel:(011)4631809/Fax:(011)4631640/Email:[email protected]/Website:www.cdtrust.co.za

CentreforEarlyChildhoodDevelopmentTrust-WorkinginanumberofAfricancountries,thisinternationallyacclaimedcentreprovidestraining,supportandadviceonearlychildhooddevelopment,andconductsresearchespeciallyrelatedtotheAfricancontext.Chair:RaymondSchuller.Director:Prof.EricAtmore.Tel:(021)6832420/Fax:(021)6835838/Email:[email protected]/Website:www.cecd.org.za

CentrefortheStudyofViolence&Reconciliation-Thecentreworksforreconciliationthroughviolence-preventioninitiatives,empowermentofvictims,institutionaltransformation,andtheredressingofinjustice.Chair:TefoRaditapole.Director:DelphineSerumaga.Tel:(011)4035650/Fax:(011)3396785/Email:[email protected]/Website:www.csvr.org.za

ChurchLandProgramme-TheCLPiscommittedtotheimprovementofthelivesofpeopleinvolvedwithlandissuesand/orwithchurch-ownedland,particularlywomenandthepoorest.Chair:MadalitsoMtine.Director:GrahamPhilpott.Tel:(033)2644380/Fax:(033)3455368/Email:[email protected]/Website:www.churchland.org.za

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

DiakoniaCouncilofChurches-Theorganisationmobilisesandassistsmemberchurchesfocusingoneconomic,environmentalandsocialjusticeissuesincludinghumanrights,advocacyandHIV/AIDS.Chair:RevIanBooth.Director:NomabeluMvambo-Dandala.Tel:(031)3103500/Fax:(031)3103502/Email:[email protected]/Website:www.diakonia.org.za

LabourResearchService-TheLRSprovidesresearch,informationandeducationalsupporttomostofSouthAfrica’slargesttradeunions.Chair:NadeemaSyms.Director:TrentonElsley.Tel:(021)4471677/Fax:(021)4479244/Email:[email protected]/Website:www.lrs.org.za

NationalInstituteforCrimePrevention&ReintegrationofOffendersNICRO-ASection21company,NICROrunsprogrammessuchasprisonart,victimsupport,economicopportunitycreation,andoffenderreintegrationandhasmovedbeyondtraditionalwelfareapproachestodevelopingcommunity-basedinitiativesandstrategicpartnerships.Chair:JudgeNathanErasmus.Director:SorayaSolomon.Tel:(021)4620017/Fax:(021)4622447/Email:[email protected]/Website:www.nicro.org.za

NewWorldFoundation-Workingforthepast30yearsfromwithinLavenderHill,CapeTown,toeffectchangeinthelivesofthesurroundingcommunity,theNWFpartnerswithothersocialactorstopresentorganisationalskillstraininganddevelopmentprogrammestobreakthecycleofpoverty,unemployment,violence,abuseandapathy.Chair:Rev.S.Christians.Director:J.deWaal.Tel:(021)7011150/Fax:(021)7019592/Email:[email protected]/Website:www.newworldfoundation.org.za

Directory of shareholders

TheNoncebaFamilyCounsellingCentre-Nonceba’saimistodrasticallyreducethelevelofchildsexualabuseinKhayelitshaandprovidesupporttothosewhohavebeenabused,bywayofvictimsupportthroughcounselling,andpreventionofabusethrougheducation.ProjectLeader:NocaweMankayi.ChairpersonandManagingDirector:

HazelBlack.TelandFax:(021)3640135/Email:[email protected]/Website:www.nonceba.org

SocialChangeAssistanceTrust-SCATisagrant-makingbodywhichalsoprovidesorganisationalsupporttoabout60rural,community-baseddevelopmentagencies.Convenor:SueAnderson.Director:Anthea

Davids-Thomas.Tel:(021)4182575/Fax:(021)4186850/Email:[email protected]/Website:www.scat.org.za

SouthAfricanCouncilofChurches-TheSACCisthenationalbodyofthechurchinSouthAfricaandfocusesonfivekeyareas:emergencyrelief,ensuringjustice,health,povertyeradication,andreconciliationandhealing,incloseassociationwithnineprovincialcouncils.President:TheRightReverendDrJohannesThomasSeokaGeneralSecretary:ReverendMautjiPataki.Tel:(011)2417800/Fax:(011)4921448/Email:[email protected]/Website:www.sacc.org.za

TrustforCommunityOutreachandEducation-TheTCOEconcentratesonruraldevelopment,especiallysmallholdersandsmallfarmersgrapplingwithlandissues.TheTCOEiscentrallyinvolvedinengaginglocalgovernmentforlandaccesstocommonageandappropriateagriculturalsupport.Chair:ProfessorLungiNtsebeza.Director:MerciaAndrews.Tel:(021)6853033/Fax:(021)6853085/Email:[email protected]/Website:www.tcoe.org.za

UmtapoCentre-TheUmtapoCentreanditstrainingarm,UmemeInnovations,runprogrammesincludingpeaceandanti-racismeducation,literacyforself-relianceandprogrammesforyouthwithinternationalyouthorganisations.Chair:ProfessorBenKhoapaDirector:DeenaSoliar.Tel:(031)3093350/Fax:(031)3098198/Email:[email protected]/Website:www.umtapocentre.org.za

WesternCapeAssociationforPersonswithDisabilities-TheWCAPDandits21branchesprovidetherapeuticandcounsellingsocialworkservices,

groupandcommunityworkandconsumerforumsfortheadvancementofpersonswithphysicaldisabilities.Chair:ThysBlom.Director:JohanJoubert.

Tel:(021)5552881/Fax:(021)5552888/Email:[email protected]/Website:www.wcapd.org.za

Workers’EducationProject-TheWEPprovidestrainingcoursessuchastrade-unioneducation,labourrelations,financialmanagement,casehandling,paralegalandfundraising

skills,businessskills,writingandpresentationskills,andotherlabourrelatedtopics.Chair:ReubenDenge.Director:ReverendKaiserThibediTel:(011)9433671/Fax:(011)9433671/




Our investment partners

ADVANCECALLAdvanceCallisaPretoria-basedcallcentrebusiness,specialisingasacommunicationshublinkingmultiplesiteswithmultipleservicesuppliers.Ditikeniowns30%.www.advancecall.co.za

BRIMSTONEThislistedcompanyhasawarded50000sharestoDitikeni.www.brimstone.co.za

EQUILLOREEquilloreisaleadingprivatedisputeresolutioncompany.Ditikenihas2.5%.www.equillore.co.za

BUSINESSCONNEXIONDitikeniisaparticipantintheBEEstructureofthelistedBusinessConnexionGroup.Thestakeisfullyfunded.Ditikeniowns0.45%ofBCG.www.bcx.co.za

CARECROSSGROUPDitikeniacquired1.8%ofthismanagedhealthcareandpharmaceuticalsgroup,forcash.www.carecross.co.za

CONSTANTCAPITALDitikeniowns20%ofConstantCapital(Pty)Ltd.ItisamemberoftheJohannesburgStockExchangeandspecializesincross-bordertradetoandfromSouthAfricaandintoAfricanmarkets.www.constantcap.com

AFRICANPIONEERLIMITEDDitikeniowns3.8%ofAfricanPioneerInvestments,thePortElizabeth-basedempowermentcompany.www.africanpioneer.co.za

BISHOPSDITIKENIEMPOWERMENTTRUSTThisisa50:50jointventurewithDiocesanCollege,CapeTown.www.bishops.org.za

CHEVRONDitikeniownsapreferenceshareinterestinChevronSAequivalentto1%oftheequity.ChevronproducesanddistributespetroleumproductsundertheCaltexbrand.www.caltex.com

HWBCOMMUNICATIONSHWBisaCapeTown-basedpublicrelationsandcommunicationsagencyandis22%ownedbyDitikeni.www.hwb.co.za

JANDJGROUPDitikeniowns3%oftheJandJGroup,aleadingempowermentgroup.www.jandjgroup.co.za


VODACOMYEBOYETHUDitikeniwasallocated31800sharesintheVodacomempowermentscheme,plusafurther2550sharesindirectly.www.vodacom.co.za

SPHEREHOLDINGSDitikeniowns4.26%ofthissuccessfulprivateequitycompany.www.sphereholdings.co.za

MULTICHOICEPHUTHUMANATHIDitikeniholds31874PhuthumaNathishares,MultiChoice’sBEEvehiclewww.phuthumanathi.co.za

NREFDitikeniisabeneficiary(26.74%)ofthismininginvestmentvehicle,whichhasconcludedthreetransactionstodate.www.nref.co.za

OCSAOccupationalCareSouthAfricaprovidesoutsourcedmedicalandnursingservicestocompaniesfortheiremployees.Ditikeniowns26%.www.ocsa.co.za

MICHAELHOUSEDITIKENIEMPOWERMENTTRUSTThisisa50:50jointventurewithMichaelhouseschoolinKwaZulu-Natal.www.michaelhouse.org

MARSHDitikeniowns1,2%oftheSouthAfricansubsidiaryofinsurancebrokersMarsh.www.marsh-africa.com

THEKELLYGROUPDitikeniowns5%ofKelly,alistedstaffingsolutionsgroup.www.kellygroup.co.za

MAITLANDDitikeniowns10%ofMaitlandFundServices,whichprovidesoutsourcedadministrationservicestoassetmanagers.www.maitlandgroup.com

MTNZakheleDirectlyandindirectlyDitikenisubscribedfor50750sharesinthispublicoffer,forcash.www.mtnzakhele.co.za

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 MultiChoice Phuthuma Nathi 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

Ditikeni Structure

Shareholders 100%

Ditikeni Investment Company Limited(Public Company)

Beneficiaries 100%

Ditikeni Trust(Registered Trust)

Ntismbintle Mining Sable Platinum JV Gemsbok Platinum


Investments REALISED

2011

2007

2006

Financial StatementsCombined Statements of Financial Position28February2013 2013 2012 R RASSETSNon-currentassets 106,316,036 106,766,197Investmentsinassociatecompanies&trusts 26,771,271 27,691,812Investments 79,059,540 78,561,648Property,plantandequipment 25,846 3,089Deferredtax 449,479 499,748Loansreceivable 9,900 9,900

Currentassets 2,708,990 3,551,936Otherreceivables 281,038 31,116Cash 2,427,952 3,520,820

Totalassets 109,025,026 110,318,133

EQUITYANDLIABILITIESCapitalandreserves 69,430,311 60,258,062IssuedCapital 2,960 2,960Revaluationreserve 20,103,320 12,492,195SharePremium 2,767,674 2,767,674Accumulatedprofit 46,556,357 44,995,233

Non-currentliabilities 38,261,943 47,935,459Interestbearingliabilities 31,279,994 38,009,671Non-interestbearingloans 1,600,000 1,600,000Deferredtax 5,381,949 8,325,788

Currentliabilities 1,332,772 2,124,612Accountspayable 683,623 527,103Loanspayable - 1,548,204Non-interestbearingloans 614,341 13,452Taxpayable 34,808 35,853

Totalequityandliabilities 109,025,026 110,318,133

Combined Statements of Comprehensive Incomefortheyearended28February2013 2013 2012 R RRevenue 4,135,471 1,571,650

Lessoperatingexpenses (2,267,054) (2,530,969)

Operatingprofit(loss) 1,868,417 (959,319)

Financeincome 130,673 222,918Fairvalueadjustments 528,840 1,704,096Impairments - (1,000,000)Financecosts (1,407,671) (1,477,263)Realisedgainondisposalofinvestment 20,510 1,670,961Incomefromequityaccountedinvestments 36,407 14,652,805

Netprofitbeforetaxation 1,177,176 14,814,198

Taxation 1,341,157 (2,965,763)

Profitfortheyear 2,518,333 11,848,435

Othercomprehensiveincome,netoftaxation 7,611,126 8,567,763

Totalcomprehensiveincomefortheyear 10,129,459 20,416,198


Combined Statement of Changes in Equityfortheyearended28February2013

Issued Revaluation Accumulated

capital reserve profit Total

R R R R

Balanceat1March2011 2,770,634 3,924,432 34,049,826 40,744,892

Totalcomprehensiveincome - 8,567,763 11,848,435 20,416,198

Distributiontobeneficiaries - - (903,028) (903,028)

Balanceat29February2012 2,770,634 12,492,195 44,995,233 60,258,062

Totalcomprehensiveincome - 7,611,125 2,518,333 10,129,458

Distributiontobeneficiaries - - (957,210) (957,210)

Balanceat28February2013 2,770,634 20,103,320 46,556,356 69,430,310

Combined Statements of Cash Flowsfortheyearended28February2013 2013 2012 R RCashflowsfromoperatingactivities

Cashutilisedinoperations (2,205,128) (2,790,387)Dividendsreceived 6,250,131 3,630,772Distributionstobeneficiaries (957,210) (903,028)Interestincome 130,673 222,918Financecosts (1,407,671) (1,477,263)Taxationpaid (1,045) (649,242) Net cash inflow from operating activities 1,809,750 (1,966,230) Cashflowsfrominvestingactivities Purchaseofinvestments (2,897,725) (1,722,427)Proceedsondisposalofinvestments 120,450 4,109,828Acquisitionofproperty,plantandequipment (29,180) - Net cash outflow from investing activities (2,806,455) 2,387,401 Cashflowsfromfinancingactivities Netloanmovements (1,122,863) (49,719)Proceedsfromissueofpreferenceshares 1,026,600 - Net cash inflow from financing activities (96,263) (49,719) Netchangeincashandcashequivalents (1,092,968) 371,452 Cashandcashequivalentsatbeginningoftheyear 3,520,820 3,149,368 Cashandcashequivalentsatendofyear 2,427,852 3,520,820


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

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