ABOUT US

Jasco has been a leading player in high technology businesses since 1976. Jasco listed on The JSE Limited (JSE) on 2 October 1987. During that year a total of 211 companies were also listed. Today, 20 years later, Jasco is one of only 24 remaining listed companies. The group celebrates its 20th year as a listed company.

Jasco's business model ensures a diversified portfolio of three divisions operating in the growth sectors of Telecommunications, Domestic Products and Security. Jasco's portfolio of businesses distribute, assemble and/or design and manufacture electronic and electrical products and solutions. In addition, as a further means of diversification, the group balances its income stream between local and international currencies.

Telecommunications
The Telecommunications division focuses on the provision of solutions, products and services to access networks of both fixed line and wireless telecommunications operators through a combination of designed and manufctured in-house products and strategic products sourced from leading overseas technology players.

In the wireless arena Jasco offers the full complement of products to erect a wireless base station through our Webb Industries division. These products include large steel constructed towers (designed and manufactured by our WebbLeBLANC division), cables, antennas, connectors and other ancillary products. Webb Industries also owns and manages a network of hi-sites for rental in Gauteng. We have recently acquired the business of RapidCloud Technologies increasing our wireless solutions through the Redline agency.

In the fixed line arena, Jasco offers, inter alia; the 3M range of telecommunications products such as splitter boxes, connectors and joint closures, through our Tasslelane division. These products are supplemented by our Telesciences division, which offers specialised software solutions to the large telecommunications operators. This involves equipment for testing telecommunication networks and allowing for interaction between various platforms.

Tasslelane Services supplements our product range by allowing the group to offer an installation and maintenance service in addition to the supply of products and solutions.

Domestic Products
The Domestic Products division trades under the names Special Cables and T-Components. This business has three focus areas: domestic appliances, automotive and leisure.

In the domestic appliances division it manufactures components for large domestic appliances, such as fridges and stoves. In the automotive division we assemble niche electrical components and harnesses for locally manufactured vehicles. In the leisure division we manufacture our own environmentally friendly saltwater pool chlorinator, Just-Chlor© , and other complementary pool products. These products are distributed into the local and export markets.

T-Components specialises in steel pressing and electrical plug manufacturing. These products are used as components in various domestic appliances and automotive products.

Security
The Security division consists of two independent businesses namely Multivid and Scafell.

The Multivid business unit is a systems integrator and focuses on the design and implementation of custom-made security services and the subsequent maintenance and service of these systems. Multivid also has an exclusive agency agreement for Southern Africa with a world leading German security product supplier.

The second business unit Scafell, acts as a security and related product house. Scafell not only researches and develops new products, but also manufactures and assembles its own products. This range of manufactured products is further enhanced by a number of leading products from international companies where Jasco acts as agents.

OWNERSHIP

Introduction

Jasco is a black owned company, with [59%] of its shares held by black shareholders. The group´s BEE partners are Community Investment Holdings Pty) Ltd (CIH) and AfroCentric Investment Corporation Ltd (AfroCentric). AfroCentric holds 34.9% and CIH 24.2%.

CIH is the holding company of a number of subsidiaries operating in the technology (power and energy and telecommunications), logistics and healthcare sectors and currently generates turnover in excess of R4 billion per annum. It is headed by experienced South African business people, Dr Anna Mokgokong and Joe Madungandaba.

AfroCentric is a JSE-listed black-controlled diverse investment holding company, led by successful South African businessmen Michael (Motty) Sacks, Meyer Kahn, and Brian Joffe, The group´s directors also include Brigalia Bam, Nomhle Canca, Mandla Gantsho, and Prof Derrick Schwartz.

CIH transaction

The transaction with CIH was concluded during March 2003. The transaction resulted in Jasco becoming the first black majority controlled company listed under the Electronic & Electrical Equipment sector on the JSE Securities Exchange. Jasco´s BEE status was also independently confirmed by the Empowerdex Rating agency. Jasco was also rated the second most empowered listed industrial stock on the JSE by the Financial Mail in 2005.

In terms of the transaction, Jasco acquired Tasslelane Investments (Pty) Ltd (Tasslelane) from CIH for R31 million. Tasslelane has the exclusive rights for 3M telecommunications products in South Africa and significant contracts with Telkom SA Ltd.

The purchase consideration was settled through the issue of both ordinary and fully-paid redeemable preference shares. CIH obtained a 30% shareholding in Jasco through the ordinary shares, which combined with the preference shares, gave CIH 51% voting control.

During 2004, CIH acquired a further interest in Jasco on the open market, increasing their combined ordinary shareholding to 34.9% and aggregate voting control to 54.4%.

The preference shares were redeemed after 29 February 2008, with 57% conversion, bringing CIH´s current stake in Jasco to 45%.

AfroCentric transaction

During 2008, AfroCentric acquired 34.9% of Jasco through a transaction done in three steps:

• Jasco acquired CIH´s 51% ordinary shares and 51% preference shares in South African cable group, M-TEC
• AfroCentric acquired 34.9% in Jasco from CIH
• AfroCentric subscribed for preference shares in Jasco to fund the transaction

M-TEC is a pioneer in the manufacturing of non-ferrous products in South Africa with annual net turnover of over R1 billion and net assets of almost R240 million. The group manufactures and supplies power cable, fibre optic cable, aluminium overhead conductors, bare copper wire, strip products and non-ferrous products. The other major shareholder is Taihan Electric Cable Company (Taihan), a Korean fibre optic cable manufacturer and one of the world's leading power and telecommunications cable manufacturers.

AfroCentric's strategy is to create shareholder value through investments in enterprises which, in the first instance, could materially benefit from its principal BEE status and the entrepreneurial and intellectual capital residing in the company and, secondly, through investment in sectoral enterprises that present prospective opportunities to outperform the markets. AfroCentric has granted Jasco a pre-emptive right to all opportunities in its current field of operations, opening valuable opportunities to the group.

BROADER BEE ELEMENTS

Jasco fully endorses the recommendations of the Broad-Based Black Economic Empowerment Act, No 53 of 2003 (BBBEE). The areas addressed by the legislation is that BBBEE does not only relate to ownership, but also includes management transformation, skills development, preferential procurement, enterprise development and CSI to ensure true, broad-based empowerment. Having addressed the key component of black ownership and control through the CIH and AfroCentric transactions, the group has heightened its focus on the other empowerment areas.

Jasco was rated by Empowerdex and evaluated in 2009 as a satisfactory broad based BEE contributor (Level Three Contributor), receiving a AA rating.

Jasco will be a significant player in the African Technology Industry:

• In public networks, Jasco will be a niche provider of solutions, products and services to access the network
• In private networks, Jasco will be a solutions integrator and supplier of electronic security systems
• In the electrical and electronic industries Jasco will be a niche component manufacturer

• Honesty, credibility and reliability
• Increasing shareholder value
• Commitment to customer satisfaction
• Recognition/reward for creativity, innovation and good performance
• Good citizenship (including people development and empowerment)