Broad-based black economic empowerment (B-BBEE)

No progress has been made with regard to the conclusion of a B-BBEE transaction. This is due to recent turmoil in the financial markets. Such a transaction, incorporating a broadbased business partner and staff will most certainly be pursued when the time is deemed to be propitious. We continue to focus on the other aspects of the B-BBEE scorecard and continuously evaluate procurement across the operations to verify the credentials of our suppliers. Recruiting people from previously disadvantaged backgrounds at a management level is a priority and is supported by our bursary, training and mentorship programmes. While we have made progress in this regard, we fully acknowledge that much is still to be achieved.

Social responsibility

The JD Group’s corporate social investment programme remains focused on the development of individual and community self sufficiency through education, training, skills development and job creation. During the 2009 financial year we invested more than R8 million in our social responsibility programme, which consists of R3,2 million in enterprise development projects and R4,8 million in direct donations. Our main projects include among others, the Technoagricultural Innovation for Poverty Alleviation (Tipa) project. Tipa is based on the concept of the African Garden Market, part of the Food Security for Africa initiative.

For additional details refer to the sustainability report.

Dividend

No interim dividend was paid in order to facilitate the payment of the tax settlement. However, cash flow projections and current trading enabled the board to declare a final dividend of 41 cents per share.

Prospects

While the market has stabilised and there are indications that the global recession is coming to an end, we maintain that the economic recovery will be slow. Notwithstanding the uncertain timing of the local recovery, the fundamentals are in place at JD Group. The Group is well on course with the implementation of its strategy initiated in 2008. These initiatives which have been implemented across the organisation will ensure its future success.

Acknowledgements

The JD Group has most certainly undergone the most momentous change in its 26 year history. It was relatively easy to buy into this strategy if one was integral in its formulation. For many of our employees it required a leap of faith.

I wish to extend my heartfelt thanks to the JD family for their ongoing commitment and loyalty. Their efforts enabled us to follow through and achieve the targets which we set for ourselves during the year despite the market turmoil. The strategy to redefine our business was a daunting task and was only made possible by the resilience and determination displayed by our people.

In particular, I have been delighted by the leadership qualities displayed by our new CEO, Grattan Kirk, and our executive team during these challenging times. I am grateful to all members of the team for their assistance in bringing about the changes that are required in our business.

Our shareholders, providers of finance and our suppliers of goods and services have once again displayed a huge amount of confidence in the management of JD Group. Without your ongoing support this business would not be what it is today. Thank you.

To our non-executive directors, your continued support and commitment during these challenging times are most appreciated.

I David Sussman_Chairman