Annual Report - JD Group

21 Years Young
Annual Report 2004

Our vision, philosophy and profile ....................................... 2
Financial performance ......................................................... 4
Corporate objectives and opportunities ............................... 5
Brands and their operational areas ...................................... 6
Directors and management ............................................... 10
2 1 Y E A R S Y O U N G
1 9 8 3 -
2 0 0 4
Group value added statement ........................................... 13
Executive chairman’s report ............................................... 14
Social citizenship ............................................................... 23
Chains .............................................................................. 29
Corporate services.............................................................. 41

In only 21 years, JD has grown from one store to one of the most successful
and profitable retailers in South Africa. As we celebrate our 21st birthday,
the dream of the JD Group is very much alive in all of our hearts. Our
philosophies and values remain true. It’s about satisfying the consumer and
making an acceptable profit by developing our people and being innovative
in all we do; in merchandising and marketing, developing supplier alliances
based on sound business principles, by constantly developing management
and leadership skills, and by never forgetting about the world around us and
our responsibility to the planet and the communities we live in.
1

Our vision is to be World Class in our fields of expertise
PHILOSOPHY
To lead the industry by satisfying our customers’ needs and our
stakeholders’ expectations through the delivery of consistent, acceptable
profit growth, which will be achieved globally by:
■ being innovative in everything we do
■ continuous and consistent development and optimisation of customer
and supplier relationships based on sound levels of service, values,
ethics and business principles
■ the ongoing development of our people
■ the continuous enhancement of management and leadership skills
■ remaining conscious of our social responsibility
2

PROFILE
JD Group, a mass consumer financier, is South Africa’s leading differentiated
furniture retailer operating through eight chains in southern Africa and one
in Poland. It is listed on the JSE Securities Exchange in the Cyclical services:
General Retailers – Hardlines Sector and on the Namibian Stock Exchange –
Retail Sector.
Each chain is positioned in the marketplace in a differentiated way with a
specific focus on a market segment, own brand identity and store layout,
merchandise range and market profile.
All eight South African chains offer a wide range of value for money,
differentiated quality furniture, appliances, home entertainment and
consumer finance products supported by a high level of personal service.
Hi-Fi Corporation and Electric Express qualify as typical category specialists
due to the focused product range they offer.
The JD Group covers the mass market through its eight South African chains
with a mass merchandise focus.
JD Group services the mass market through a total of 952 (2003: 978)
stores, including 36 (2003: 26) stores in Poland, generating annual
revenue of R9,1 billion (2003: R6,0 billion) and an annual cash inflow of
some R8,4 billion (2003: R5,1 billion) from trading activities.
3

Financial performance
Financial performance
Over 21 years, a pioneering spirit has fuelled the Group’s growth,
both organic and by acquisition. Today, JD Group is synonymous
with innovation in retailing and financial services.
31 August 31 August
2004 2003
Revenue Rm 9 056 5 966
Income attributable to shareholders Rm 790 449
Total assets Rm 7 739 7 185
Shareholders’ equity Rm 4 008 3 392
Gearing ratio % – 26,3
Operating margin % 14,0 12,5
Headline earnings per share cents 522,0 340,5
Cash equivalent dividends per share cents 240,0 110,0
Net asset value per share cents 2 330,1 2 033,0
Return on assets managed % 24,1 18,1
Return on average shareholders’ equity % 21,4 16,9
Note: Definitions of the terms above are reflected in the Annual Financial Statements
2004 book.
4
Revenue (R million)
2 205
95
2 479
96
2 726
97
2 896
98
*Proforma 12 months
3 016
99
3 429
00*
Headline earnings per share (cents)
86,1
95
119,1
96
137,7
97
185,7
98
243,0
99
Net asset value per share (cents)
699,0
95
799,1
96
917,2
97
1 085,0
98
1 305,0
99
293,7
00*
1 541,5
00*
3 788
01
353,2
01
1 695,9
01
4 083
02
226,5
02
1 715,1
02
5 966
03
340,5
03
2 033,0
03
9 056
04
522,0
04
2 330,1
04

Corporate objectives and opportunities
Customers
To develop a “customer centric” culture, committed to providing
real value for money and excellence of service, thereby ensuring
customer satisfaction and loyalty.
Profit and growth
To be a desired investment for all investors as a result of above
average performance and consistent growth.
Our people
To be the most sought after employer by providing ongoing
development and training for all our people, thereby creating
a career orientated environment allowing our people to share
in the Group’s success.
Suppliers
To deal transparently with all suppliers on the basis of sound
business principles, thereby ensuring that long lasting alliances
are maintained for our mutual benefit.
Innovation
To be innovative in all our business activities, thereby satisfying our
desire to provide better service.
Social responsibility
To meet our social responsibilities through providing a better life
for the disadvantaged and less fortunate members of the
communities in which we trade.
The environment
To manage the environmental impacts of our activities
by complying with all relevant safety, health and environmental
legislation and by enhancing awareness amongst our employees.
Management and leadership
To develop the leadership potential amongst us, together with the
ongoing enhancement of our managerial skills, thereby ensuring
ongoing success.
5
Global aspirations
The Group owns 100% of the equity in Abra, operating in
Poland. Abra is positioned to grow its store base to 50 within
the next two years.
Solid foundation
The eight southern African chains have collectively traded for
446 years, or an average of 56 years per chain. The longest
established chain, Barnetts, has now traded for 108 years; followed
by Bradlows 101; Morkels 67; Russells 61; Electric Express 46;
Joshua Doore 31; Price ’n Pride 21 and Hi-Fi Corporation 11.
Abra has traded in Poland for 14 years.
Extensive data network
The Group processes some 465 million transactions each year
from 1 110 sites via its satellite based communications network
(V-Sat) and terrestrial lines. The Group administers in excess
of 1,7 million current customer accounts and has approximately
11,6 million paid up customers on its database. The average cash
inflow from customers approximates R28 million per day.
Sales
Annually, the Group distributes over 156 million catalogues to
customers and potential customers and in excess of 7,4 million
club magazines to club members. Our inventory system
facilitated the processing of 2,95 million line items sold
across 164 departments and sub-departments.
Products and services
The Group will continue to pursue opportunities with the
introduction of innovative products and services.

Brands and their operational areas
Furniture retailer serving the mass
market in Poland (equivalent to new
universal LSM 5 to 8)
Specialist appliances and home
entertainment retailer selling for cash
and on terms at discount prices in
dynamically displayed stores to the
middle mass market (equivalent to new
universal LSM 5 to 6)
Offers branded appliances, home
entertainment, computers and quality
furniture on affordable terms
(equivalent to new universal
LSM 4 to 8)
Household merchandise and appliances
retailer selling entry level and middle of
the range products in predominantly
rural areas (equivalent to new universal
LSM 3 to 6)
Retails electronic goods and household
appliances to the mid to upper end of
the consumer market (equivalent to
new universal LSM 6 to 10)
Furniture and appliances retailer serving
the lower end of the middle mass
market in the rural and urban
communities (equivalent to new
universal LSM 4 to 6)
6
Established national retailer selling
quality branded furniture, appliances
and home entertainment products to
the aspirational upper middle mass
market (equivalent to new universal
LSM 4 to 8)
The largest furniture and appliance
discounter in southern Africa selling to
the middle mass market (equivalent to
new universal LSM 4 to 6)
Branded furniture and appliances
retailer serving the middle to upper
mass market in metropolitan and urban
areas (equivalent to new universal
LSM 4 to 7)

Abra
Barnetts
Bradlows
Electric
Express
Hi-Fi
Corporation
Joshua
Doore
Morkels
Price ‘n
Pride
Russells
Other
Total
GAUTENG
KWAZULU-NATAL
WESTERN CAPE
MPUMALANGA
LIMPOPO
EASTERN CAPE
NORTH WEST
35 12 22 10 10 11 6 7 1 114
222 113 99 102 97 83 72 68 23 21 6 1 2 7 36 952
7
FREE STATE
NORTHERN CAPE
BOTSWANA
LESOTHO
NAMIBIA
SWAZILAND
MOZAMBIQUE
POLAND
TOTAL
36 36
14 14 21 25 13 8 4 1 100
27 12 11 9 9 8 7 1 84
8 1 3 1 1 1 1 1 17
36 17 20 16 10 14 11 17 5 146
32 16 14 10 10 9 10 5 3 4 113
20 14 6 10 22 11 15 11 3 6 118
50 27 34 23 11 15 14 16 9 199
16 2 7 25

Lets go back 21 years
when the world lost
one of its finest
musical talents
Stock markets are
crashing around us
and Aids is first
acknowledged as the
chilling threat it is
1984
1983
21 years ago a path was set. A future dreamed.
Destined to be fulfilled.
On the 27th of July 1983, Price ’n Pride opened its first store. The seed of a dream was
planted that would change the face of retailing in South Africa. From humble beginnings,
we had no idea how great the dream was or how great the reality would become.
Personal computers
hit our desks and in 1984
Apple Macintosh introduced the
computer that promises 1984
isn’t going to be like 1984 . . .
1987
After 21 years we have only just begun
1985
8
We believed in people from the start. This is why in a Price ’n Pride
warehouse in 1985, the Freedom School was set up, later to become
the highly respected St Enda’s Community College in Joubert Park.
A spirit of giving that set the scene for our future.
In 1987 Joshua Doore introduces catalogue selling
– an innovative first, bringing value, comfort and
lifestyle to the platteland people.
This sees warehouses, transport and advertising being
optimised, making the bottom line look sexy.
And hats off to our people and their passion because
operating income before interest rises from a mere
R500 thousand to a staggering R9 million.

By 1986 trains can travel
faster than a speeding bullet
George Bush is elected
as the 41st president of the
United States . . .
1988
1986
Three years after our first doors open,
Joshua Doore is acquired and later that
year on the 18th of August the business
is listed on the Johannesburg Stock
Exchange at a share price of R2,75.
The dream begins to grow and we share
our success by forming socially responsible
organisations like the Mitzvah School,
providing tutoring for the underprivileged
Matric students from Alexandra.
In 1988, another acquisition heralds more change and we welcome Bradlows
and Score.
We continue to invest in our prime assets – our people, introducing a minimum
salary of R500 for employees . . . a first in the industry.
Our new acquisition means our debtors book doubles. Our people buy into our
dream, and thanks to their commitment and hard work, bad debts drop by an
astonishing 70%!
9

Executive directors
David Sussman (56) Mias Strauss (52) Jan Bezuidenhout (49)
Gerald Völkel (44) Johan Kok (53)
These five executive directors of the Group and
the four members of the executive management
are members of Sustein Management (Pty) Ltd,
the Group’s management company. Together,
they comprise the executive team which
manages the affairs of the Group.
10
Executive directors
David Sussman (56)
BCom
Executive chairman
Appointed 1 April 1986.
Appointed chairman in February 1989.
31 years’ experience in furniture retail.
Founded the Group in 1983.
Mias Strauss (52)
Chief executive officer
Appointed 1 December 1993.
Responsible for Group operations.
34 years’ experience in furniture retail.
Joined Russells in 1971 and appointed
chief executive of that chain in 1989.
Jan Bezuidenhout (49)
BCom LLB
Director – Corporate services
Appointed 16 March 1994.
Responsible for Group strategic planning,
investor liaison and corporate legal and
statutory services.
13 years’ experience in merchant and
corporate banking and 11 years’ experience
in furniture retail.
Gerald Völkel (44)
BAcc CA(SA)
Group financial director
Appointed 2 April 2001.
Joined the Group in November 1995.
15 years’ experience in auditing and
nine years’ experience in furniture retail.
Johan Kok (53)
Chief operating officer
Appointed 1 March 2004.
Joined the Group in 1984.
Became chief operating officer in 1996.
33 years’ experience in retail.

Executive management
Arie Neven (45) Athol Beeforth (57) Mark Richards (46)
Vivian Horn (53)
Executive management
Arie Neven (45)
Chief executive operating divisions –
Barnetts, Joshua Doore, Morkels and
Price ’n Pride.
24 years’ experience in furniture retail.
Athol Beeforth (57)
BCom CA(SA)
Chief executive operating divisions –
Bradlows, Electric Express,
Hi-Fi Corporation and Russells.
32 years’ experience in furniture retail.
Mark Richards (46)
CA(SA) ACA
Group executive – Corporate support
services
19 years’ experience in auditing and
seven years’ experience in furniture retail.
Vivian Horn (53)
Group executive – Sales
33 years’ experience in furniture retail.
11

Non-executive directors
pic to come
Dr Len Konar (50) Maureen Lock (55) Mervyn King SC (67)
Martin Shaw (66) Ivan S Levy (66)
12
pic to come
Independent non-executive
directors
Dr Len Konar (50)
BCom HDip Acc MAS Cert Tax Law DCom
CA(SA)
Director of companies
Appointed 19 July 1995.
Chairman of the risk management
committee and member of the audit,
nominations and remuneration committees.
Maureen Lock (55)
BCom CA(SA)
Director of companies
Appointed 2 April 2001.
Mervyn King SC (67)
BA LLB (cum laude) HDip in Tax Law
Chairman of the King Committee on
Corporate Governance and director
of companies
Appointed 2 May 1995.
Chairman of the audit committee and
member of the nominations and
remuneration committees.
Martin Shaw (66)
CA(SA)
Consultant and director of companies
Appointed 1 June 2001.
Member of the risk management, audit,
nominations and remuneration committees.
Non-executive director
Ivan S Levy (66)
Dip Law
Attorney and director of companies
Appointed 1 December 1994.
Chairman of the nominations and
remuneration committees and chairman
of the board of trustees of the Group’s
retirement funds.

Group value added statement
13
2004 2003
Rm % Rm* %
Revenue 9 056 5 966
Investment income 24 15
Interest received 62 49
9 142 6 030
Cost of merchandise, services and expenses (6 370) (4 195)
Value added 2 772 100,0 1 835 100,0
Distributed as follows:
Employees
Salaries, commissions and other benefits
Government
Taxation, assessment rates and
1 296 46,8 933 50,8
regional services council levies 179 6,5 47 2,6
Providers of capital 622 22,4 363 19,8
Distribution to shareholders 415 15,0 160 8,7
Finance costs 207 7,4 203 11,1
Reinvestment in the Group 675 24,3 492 26,8
To provide for depreciation 94 3,4 67 3,7
To provide for deferred taxation 206 7,4 136 7,4
Reinvested for expansion 375 13,5 289 15,7
2 772 100,0 1 835 100,0
Statement of money exchanges with government
Assessment rates and taxes 16 13
Company taxes 148 24
Employees’ tax deducted from remuneration paid 164 112
Net value added tax and general sales tax (refunded)/collected 69 (4)
Regional services council levies 15 10
412 155
Value added is the amount of wealth the Group has created by purchasing and selling its merchandise. The statement above shows how this
wealth has been distributed. The calculation takes into account the amounts retained and reinvested in the Group for the replacement of
assets and development of operations.
* Restated

Executive chairman’s report
14
David Sussman: Executive Chairman
“A clearly defined strategy makes the job easier, the direction
is clear and the critical issues are known. It frees management
to maximise the process and anticipate the future.”
Michael Robert

■ Revenue up by 52% to R9,1 billion
■ Operating income up by 69% to R1,3 billion
■ Headline earnings per share up by 53%
to 522,0 cents
■ No gearing
Achieving the goals is then all about effective implementation.
Operating environment
The favourable economic conditions in the local durables retail
market prevailed throughout the financial year. The benefits
flowing from the real growth in consumers’ disposable income has
materially reduced the credit risk profile of the Group and has
further enhanced the cash generated.
Financial overview
The comparative figures for the year to 31 August 2003
(“comparative period” or “2003”) only included the results of
the ex-Profurn Limited (“Profurn”) stores for the five months from
23 April 2003.
Revenue increased by 52% to R9,1 billion (2003: R6,0 billion),
the sale of merchandise increased by 61% to R6,1 billion
(2003: R3,8 billion). The increase in revenue represents like on like
growth of 16% in the historical operations in southern Africa and
17% in the acquired businesses. Sale of merchandise constituted
68% of total revenue (2003: 64%), with the remainder being
finance charges, financial and other services.
Southern African revenue contributed 97% of total revenue
(2003: 95%). Abra grew revenue in Zloty terms by 26%.
Credit sales accounted for 50,4% of total sales (2003: 62,0%),
considerably lower than the corresponding period. This is largely
attributable to the inclusion of Hi-Fi Corporation for the full year
which is a cash business and also to an increase in cash sales in the
other chains.
15
It is most gratifying to note that the Group was able to increase
overall product margin to 32,3% (2003: 31,6%) notwithstanding
the inclusion of Hi-Fi Corporation which operates as a discounter
working on lower margins. Stock markdowns of R49 million
(2003: R38 million) were incurred due primarily to product
deflation. Retail prices of electrical goods declined by 11% due to
the strength of the rand and a decline in US dollar prices. This
impacted on Hi-Fi Corporation as well as the electrical goods
component of our credit chains in southern Africa. Furniture
inflation during the past financial year was 1%.
Finance charges earned increased by 31% over the comparable
period to R1,5 billion. Financial services, which includes all the
Group’s insurance offerings, increased by 44% to R1 095 million.
This combined contribution to revenue is relatively lower due to
the lower credit sales to revenue ratio and the lower interest rate
environment.
Operating expenses grew by 37% to R3,5 billion. The increase in
southern African costs was largely due to the inclusion of Profurn
for the full year.
The R306 million operating loss reflected under corporate in the
segmental analysis includes expenses of R65,3 million relating to
both historic and acquired operations which are of a non-recurring
nature and therefore cannot be allocated to the individual chains
without distorting the ratios.

Executive chairman’s report continued
Operating income grew by 69% to R1,3 billion with the operating
margin improving to 14,0% from 12,5%.
Headline earnings increased to R871 million (2003: R453 million).
Headline earnings per share rose by 53% to 522,0 cents
(2003: 340,5 cents).
Net instalment sale receivables only grew by 1,2% to R4,5 billion.
This negligible increase is due to higher deposits, improved
payment patterns and the write-off of already fully provided for
accounts which have been transferred to Blake & Associates
Holdings (Pty) Ltd (“Blakes”). Total provisions as a percentage of
gross instalment sale receivables stand at 28,9% (2003: 31,9%).
The Group continues to insure its South African instalment sale
receivables.
Bad debts written off in the historical operations increased from
5,9% to 6,9% of gross receivables. In addition, an amount of
R101 million of fully provided for accounts from the historic chains
has been transferred to Blakes thus enabling us to focus our
attention on the front end of the book. This amount is reflected
under corporate in the segmental analysis. This increases the bad
debts written off in the historical book to 9,1%. An amount of
R107 million relating to bad debts written off on instalment sale
receivables arising at the date of acquisition of Profurn is disclosed
in the segmental analysis under corporate. This amount was
provided for at the time of the acquisition. This write off brings the
quality of the instalment sale receivables acquired in line with that
of the historic operations. Receivables’ arrears represented 12,5%
of gross receivables, down from 17,4% at the last year end. It is
significant to note that the rand amount of arrears reduced from
R1,14 billion to R798 million. The average length of the book
declined to 14,3 months.
The Group has now finalised the fair values of the assets and
liabilities acquired on the acquisition of Profurn. The amount
of R329 million initially allocated as a provisional trademark,
has been adjusted to R193 million which now reflects the amended
allocation of the acquisition values. The impact of this restatement
on the amortisation of trademarks is a reduction of R5,7 million in
the current year. The amortisation period remains 10 years from the
effective date of acquisition. The amortisation charge for future
years would therefore approximate R19,3 million per annum.
16
Notwithstanding significant increases in sales, inventories
increased marginally by 6,1% on the previous year.
The Group currently has no gearing (2003: 26%). Cash generated
by trading increased to R1,45 billion (2003: R816 million). This
includes a net amount of R208 million collected on closed books
of the acquired operations. Working capital cash requirements
declined from R108 million to R38 million.
Operational overview
The past year saw significant focus being placed on the
differentiation of our brands in order to capture as much of our
target market as possible and at the same time to minimise
competition between our own brands. Our direction has never been
clearer and the critical issues enjoy top of mind awareness. Our
strategy of maximising the potential of our brands through
satisfying the changing needs of our customers is entrenched at all
levels of our organisation.
The Group now administers in excess of 1,7 million current
customer accounts.
President Dwight Eisenhower once said, ”wars are won in the
planning room, not on the battlefield”. The successes achieved
over the past year are clear indications of the direction of our
strategy. However, we see ourselves at the beginning of this
journey and very real value is still to be unlocked, the benefits of
which will impact on the short, medium and long term.
The spread of our brands and their clearly defined positioning
obviously reduces risk to all investors and stakeholders. This is
illustrated in the arrear profiles of the respective brands. Reduced
risk enables our universal brands to work on lower product margin
without this impacting on profitability.
A total of 19 stores were closed in the BLNS countries. The Group
is in the process of disposing of all 7 stores in Mozambique. These
closures represent the Profurn legacy stores which were
highlighted in the prior year’s segmental analysis as operations to
be integrated, disposed of or discontinued.
BoConcept
In June we sold the master licence for “BoConcept UK”, 3 stores
and the contracts division back to the Danish parent company. In
addition we assigned another 2 leases and put the balance of the

“Wars are won in the planning room,
not on the battlefield.”
business, which was in effect 3 remaining leases, into voluntary
liquidation on 29 October 2004. We remain convinced that
BoConcept is an excellent retail format. The fact that we were not
able to resolve our problems with Club 8 is in no way a reflection
on the integrity and commitment of that company. With the best
will in the world they were unable to fulfil their obligation in terms
of the “Supply Agreement”. Notwithstanding our exiting
BoConcept, we wish Club 8 every success in the future.
Abra
Our Polish operation is now on a sound footing and ready to
grow. The task that lies ahead is the opening of stores and the
development and training of our people. While much has been
achieved on the “people” side, we have a long way to go before
we can say that the Polish team has the skills, confidence and
motivation to maximise the potential of that market.
We intend to use Poland as a springboard into central and Eastern
Europe. However we need a sustainable, profitable business in
Poland before we can consider the next move.
Nedcor Alliance
During November 2004 a joint decision was taken to terminate
the Alliance with effect from 19 November 2004. This termination
will not have any material financial effect on either party. JD Group
has had various approaches from other financial institutions
President Dwight Eisenhower
17

Executive chairman’s report continued
to make use of our credit expertise and the extensive footprint
we enjoy. A further announcement will be made in this regard
in due course.
Blakes
The Group announced on 12 August 2004 that it would acquire
half of Unifer Holdings Limited’s (“Unifer”), (a wholly owned
subsidiary of ABSA Bank Limited) stake in Blakes, a company with
comprehensive debtors management capabilities. Subsequent to
that announcement JD Group and Unifer jointly acquired a further
5% shareholding from a minority shareholder, which brings
our holding to 27,5%. Competition Tribunal approval was only
obtained in October 2004 following which, the purchase
consideration was paid.
Blakes has a significant call centre operation. The 1 000 seat
call centre situated near Durban utilises the latest technology,
inhouse developed software and two predictive dialler platforms.
This provides a scalable platform from which JD Group can
leverage its direct marketing initiatives to its existing and new
customer bases.
Corporate governance
JD Group complies with the Code of Corporate Practices and
Conduct as set out in the King II Report on Corporate Governance
and the JSE Securities Exchange South Africa Listing Requirements.
Triple bottom line
The Group remains committed to support HIV/Aids interventions,
sound labour relations, enhanced skills training and the
development of our people in an environment which allows
employees to develop to their fullest potential. Black economic
empowerment within our South African communities remains an
integral part of the Group’s strategy.
Directorate
Mr JHC Kok was appointed as an executive director with effect
from 1 March 2004.
Prospects
This Group has never been better positioned to take full
advantage of the prevailing consumer confidence and the
buoyant trading conditions that lie ahead. The recently
18
announced commitment by government to infrastructural
development will most certainly extend this trading cycle. The
“peoples’ contract” overwhelmingly endorsed by this country’s
people in the last election enables our government to steam
ahead with the eradication of poverty and the creation of a better
future for all. Furthermore, South Africa’s winning of the bid for
the FIFA Soccer World Cup in 2010 will bring about a “pulling
together” of all our people, the likes of which has never been
experienced before. As we get closer to 2010 we will enjoy more
and more of the international focus. We have every confidence
that we will live up to the high expectations that South Africa as
a country has created.
The consumers’ indebtedness to their disposable income is at a
very acceptable level. The progressive fiscal policies of the
authorities have done much to instil a greater degree of
confidence within South Africa and with the world at large. We as
a country are doing so many things right. If the trading of the first
two months of the new financial year are anything to go by, we
can look forward to an outstanding 2005.
Whilst we expect compliance with the new Consumer Credit Bill
to increase costs, it will most certainly enhance transparency and
do much to protect the end consumer against reckless lending.
The team
An organisation can have all the blue sky thinking but unless it is
supported by impeccable implementation, it amounts to naught.
Mias Strauss, our chief executive officer, supported by our chief
operating officer, Johan Kok and his very able team, enable me to
say with absolute conviction that these results reflect only the
beginning of great things to come. Gerald Völkel, the Group’s
financial director together with his team of people have once
again defied the odds, still having to live with the inadequacies of
the old Profurn IT platform. Jan Bezuidenhout with his corporate
services portfolio has ensured that our net cost of funding remains
substantially below best borrowing rates. His interaction with the
investor community enables existing shareholders and prospective
shareholders to make investment decisions in our Group with the
confidence and knowledge that what they see is real. It is not

possible for me to mention by name all our other handpicked
executives who continue to make such a huge impact on the well
being of this Group.
Our success is underpinned by our commitment to the
development and growth of all members of the JD team. The
efforts placed by management in this regard are clearly illustrated
under the Human Resources and Strategy sections of this report.
Good business sense demands of us that all levels of management
reflect the demographic spread of our country’s population.
Currently in excess of 42% of managerial positions are held by
people falling within the “previously disadvantaged” category. We
go to great lengths to make individuals aware of the opportunities
that exist within the Group.
Social actions
In keeping with our philosophy of assisting the less fortunate it is
with a sense of pride and gratification that the Group was able
to provide financial assistance to more than 40 projects. Our focus
remains with the development of our children, their education and
poverty alleviation. Our most recent project in conjunction with
the Israeli government and Ikamva Labantu encompasses the
provision of Israeli irrigation technology and the training and
development of destitute people as farmers. The initial
results have been quite astounding. Not only has the annual
yield of crops increased by five times, but the farmers are able to
produce enough fresh produce for their own families’ sustenance
and still have surplus crops to sell. This project is now being
adopted by a number of other organisations. It is hoped that
with the success being achieved Ikamva Labantu will receive
further support from other corporates. This is surely one of the
best ways of making a difference and assisting our government in
the fight against poverty.
Thanks
Probably one of the greatest strengths of this Group is our
commitment to building strategic alliances with our suppliers of
goods, funds and services. These alliances are built on the simple
principle of ensuring a “win win” situation for all the parties
concerned. Our success is largely due to the good relationships
that have been built over the past 21 years.
19
We all know that no legislation will bring about inherent honesty.
Our non-executive director Mervyn King defines good governance
as “the way you behave when you are not being watched”. Over
regulation can be stifling and the cost of compliance both in time
and money is becoming more and more of an issue. Of course
there is always a fine balance between “too much” and “too
little”. Incremental costs are ultimately borne by the consumer.
I hope that at the end of the day good business sense will prevail
and that we will be allowed to get on with the job. Our
non-executive board not only provides all stakeholders with the
necessary peace of mind, but also gives our executive team a
tremendous amount of assistance and confidence in determining
the road ahead. I thank them for their input and wise counsel,
which is always so readily available.
I David Sussman
Executive chairman
25 November 2004

One of the world’s
worst divisions of
humanity crumbles
1991
Abolition of apartheid laws
1993
We mourn as one of South
Africa’s leaders, Chris Hani,
is tragically assassinated
1989
After 21 years we have only just begun
1989 sees operating margin rise above 10%.
Through the conversion of 53 stores into Score Price ’n Pride, this chain truly
becomes a force to be reckoned with.
Of course, in any business there are good times and challenging times. 1989
also brings challenge in the form of strikes disrupting sales, collections,
customer services and impacting negatively on profits.
But through staying positive, we managed to strengthen our relationships and
understanding with organised labour and finally achieve turnover in excess of
R500 million.
It is now 1991 and another breakthrough comes in the form of the first Central
Distribution Centre of 40 000 square metres being opened in Aeroton. State of the
art scanning equipment and bar coding equipment is introduced in the distribution
centres, equipment designed exclusively for the JD Group.
1991 also sees Bradlows growing to 60 stores with the debtors book exceeding
R600 million.
The Group’s value system has always been one of sharing and in that spirit,
R1 million is invested in the Housing and Educational Trust. This investment
results in a continual improvement in the living standards of our employees.
Times of growth are often followed by times of challenge. By 1991, crime and
corruption rises, unemployment is a harsh reality and confidence is low.
By 1993, 10 years after our humble beginning, the dream of being the
biggest and the best furniture retailer becomes a reality when JD acquires the
Rusfurn Group.
This deal brings with it the brands of Russells and Electric Express and the Group
can now satisfy the aspirations and needs of all South African consumers.
The JD Group now has in excess of 500 stores and over 10 000 employees.
The dream becomes greater than ever before.
Now the vision is “to become a global leader in our fields of expertise.”
20

1990
1992
1994
The first McDonalds
in Moscow tells the
world the Cold War is
really over
The swearing
in of Nelson
Mandela as the
president of the
Republic of
South Africa
21
The JD Group has been built on people helping each other
and so despite hard times the Group’s housing assistance
programme grants loans to over 1 110 employees.
Homes furnished with love, and a commitment from
a company that cares.
By 1994 turnover more than trebles to over
R2 billion and the share price shot from R3,50 to an
awe inspiring R12, a fitting tribute to JD’s people.
The JD Group supports the King Luthuli transformation
centre, an organisation committed to non-violent
transformation and voter education as South Africa
prepares for its first democratic elections.
Training and development remain a vital priority and
lead to the establishment of the JD University.
In 1994, your Uncle in the furniture business turns 21
and Russells celebrates its 50th birthday.

“Small opportunities are often the beginning of great enterprises.”
Denosthenes

Social citizenship
“. . . and our responsibility
to the planet and the communities
we live in.”
Social impacts
Corporate objective
To meet our social responsibilities through providing a better life
for the disadvantaged and less fortunate members of the
communities in which we trade.
Policy
The focus of the JD Group Corporate Social Investment
Programme is on the development of individual and community
self sufficiency through education and training, skills development
and job creation.
Projects are selected on the basis of sound management,
sustainability and the potential to be replicated.
We attempt, in certain instances, to forge partnerships with other
stakeholders to maximise funding.
A percentage of budget is allocated to smaller, once off annual
donations to organisations which are acknowledged as providing
specific services to their community.
Funding is allocated to secular organisations only.
No funding or sponsorship is granted for individual endeavours.
To ensure openness and transparency, no funding or sponsorship
is granted to political parties.
23
Lerato Love Home
Funding and sponsorship
JD Group remains aware of the need to participate in community
projects. In a country like ours, where such enormous disparity
exists between the “haves” and the “have nots”, it is incumbent
on us to participate in activities that would normally be
undertaken by governments in developed countries.
JD Group is also aware that no South African Government, of
whatever political persuasion, has the practical means to provide
the social services equivalent to those enjoyed by developed
nations, nor will it have the means in the foreseeable future. For
this reason, the contributions of the private sector are absolutely
vital to the development and upliftment of the disadvantaged
majority of the South African population.
The Techno-agricultural Innovation for Poverty Alleviation (Tipa)
project is based on the concept of the African Garden Market,
part of the Food Security for Africa initiative presented in 2002 at
the World Summit for Sustainable Development (WSSD) in
Johannesburg by the Israeli Department of Foreign Affairs.
Both Tipa and the African Garden Market make use of the Family
Drip Irrigation System (FDIS). The FDIS, state of the art irrigation
technology, developed in Israel, has been combined with gravity
powered low water pressure, which allows traditional farmers to
enjoy all the advantages of drip irrigation at low cost. Without the
need to introduce any further technology, each FDIS project is able
to cover an area up to 500 m 2 .
JD Group, together with Ikamva Labantu and The Embassy of
Israel in Pretoria, established a Tipa demonstration project in
Cradock in the Eastern Cape. Three local people were selected by
the community to be trained to support the local farmers.
Tipa has established a business orientated co-operative of farmers
who each maintain their independence, while sharing training,
the buying of necessities, security arrangements, and possible
marketing. The co-operative can then establish business initiatives
on its own, or participate as a supplier to existing enterprises.
Following the achievements of Tipa in Cradock, JD Group has
asked the Embassy of Israel and Ikamva Labantu to roll out

Social citizenship continued
additional projects throughout South Africa and to provide the
necessary ongoing technical support.
During the period under review, JD Group contributed some
R1,6 million to the Tipa project.
We continue to support numerous education and other
institutions. The major beneficiaries are listed below.
St Enda’s Community Centre, a highly respected secondary school
in Joubert Park, Johannesburg, was originally established as
Freedom School in one of our warehouses in 1985.
Claremont Child Care, an institution which assists destitute
children, with whom we have a long association.
Little Champs Sports Academy runs two facilities, in Alexandra
and Springs, which provide pre-schoolers with physical, emotional
and social development, embracing teamwork, sharing and
Ubuntu. A third academy is scheduled to open in due course.
The Topsy Foundation, situated in Grootvlei, Heidelberg, Gauteng,
is a private and corporate initiative with its core function being to
provide a multifaceted approach to HIV/Aids in an attempt to
ensure that South Africa does not suffer another “lost
generation”. It is a home which provides sanctuary for Aids
orphans, and runs an “Adopt a Child” programme.
The Mitzvah School, a registered school and examination centre,
provides quality tutoring for students from Alexandra in their final
year of schooling. The school caters for 50 students and has
consistently produced a pass rate exceeding 90%.
Lerato Love Home is a place of refuge in Alexandra for babies,
children and young adults, the majority of whom are victims of
abuse, abandonment, neglect and HIV/Aids. Lerato Love Home
24
will be relocating to a children’s community centre which will
consist of three residential units and an undeveloped vacant lot
neighbouring Alexandra. We acknowledge the significant
contribution made by Bidvest Group to this facility, as well as
various contributions of money, clothing and food made by
JD Group suppliers, and employees.
The goals of Lerato Love Home are to:
■ secure and develop 18 community centres nationwide;
■ encourage residents to become self-sufficient; and
■ provide Aids education and life skills.
The Bird Street Teacher Training Campus of the University of Port
Elizabeth.
Up With Science, a science enrichment programme for senior
secondary school pupils presented by the Centre for Science
Education at the University of Pretoria.
Currently 200 children of employees are receiving financial
assistance from JD Group for their studies.
For the past 10 years corporate head office employees have been
donating blood in conjunction with the South African Blood
Service on a regular basis at JD House.
HIV/Aids report
St Enda’s School
JD Group has for some time recognised the gravity and potential
impact of the evolving HIV/Aids epidemic on its customers,
markets, operations, workforces and employee benefits.
In 1988 the Group undertook a study to estimate the potential
impact of HIV/Aids on its diverse customer base of approximately

one million account holders. Based on these projections, the
Group embarked on a repositioning strategy to minimise the
impact of the epidemic on its current and future markets via a
combination of the following:
■ expansion into other markets such as Poland;
■ discontinuation of certain chains within the Group and
adjustments to other chains;
■ decreased exposure to geographical high risk areas;
■ introduction of additional products such as financial services;
and
■ improved credit risk monitoring and management.
The above repositioning strategies are now bearing fruit. The
Group’s retirement and life and disability insurance schemes were
also restructured to minimise the impact of HIV/Aids.
25
Mitzvah School
Together with the Department of Health, the Group maintains an
HIV/Aids awareness programme at all major workplaces.
There is a disciplined approach to the gathering and analysis of all
relevant data, which allows for regular updates of business models
that monitor both the internal (human resources) and external
(markets, business partners and customers) impacts of the
epidemic. As a result, management are able to make informed
decisions about HIV related business strategies.
In addition, the Group continues to foster non-discriminatory
and empathetic workplace environments that ensure that HIV
positive employees are managed with care and compassion. All
HIV positive employees have access to high quality disease
management programmes, either through their medical scheme
or state facilities, and are encouraged to access these facilities.

South Africa become
champions of the 1995
Rugby World Cup . . .
1997
1999
Mobile phone technology
is so entrenched, South
Africans begin to talk to
each other in ways they’ve
never done before
1995
After 21 years we have only just begun
26
This year is no different. Taking the good
with the bad, the Group understands the
task of tackling the future, adapting to
circumstances, installing anti-hijack devices
and armed guards on delivery vehicles,
while at the same time introducing
innovative concepts like the EVA principle,
empowering store managers to run their
stores as if it were their own business.
As adapting to change becomes the norm,
this time the Giddy’s chain is repositioned as
Electric Express, another success story in the
JD dream.
In 1997 the JD Group adopts the Alexandra police station, a move to develop
management skills as part of Business Against Crime and we take great delight in
establishing a much needed and deeply appreciated park in Mamelodi. A refuge for
the people, happily named the President Mandela Park.
The year of 1997 also sees competency based modular learning introduced. This is a
programme designed to create a learning culture and at the same time 25% of credit
applications are rejected to improve the debtors book, not to mention the introduction
of the owner driver empowerment scheme.
1999 sees innovative
financial services
introduced with
12 successful test sites.
These facilities are to help
customers and to give the
company a new edge.
This positive move is tempered by ongoing security
problems.
369 stores are burgled which is not only disruptive
but costs millions.

1996
1998
2000
Penny Heyns
scoops 3 Olympic
Gold Medals
The share price doubled to over R23 and our market cap to over
R2,5 billion in less than 12 months, whilst gearing drops by 50%.
The world is moving fast. Things are changing by the day, the hour,
the second. We are edging closer to the new millennium and technology
is the new kid on the block. Never afraid of change, embracing new
opportunities, the Group hits the technology frontier as satellite
communication systems are installed and electronic data interchange
provides management information and improved communication
with suppliers.
By 1998 e-mail is all the
rage, dot.coms are happening,
the world-wide-web is it!
27
The company continues to grow, market
cap breaks R4 billion, 70 stores are opened
and we pay R100 million in tax.
The new Millennium dawns and a potential merger between JD
and Ellerine Holdings is prohibited by the Competition Tribunal.
The good relationship with organised labour leads to the
conclusion of a two year wage agreement bringing smiles to
everyone in the company.
2000 becomes another landmark year for JD as the Group’s global
dream is realised by acquiring Abra in Poland. This is a proud
moment and could not have been possible without the ongoing
support of suppliers, investors, JD people and customers, a
winning combination. The Group continues to grow with the share
price reaching an all time high of R50!

JD Brands – a fresh face
21 years young with a fresh face to take the JD Group forward,
we looked at the brands under our banner and decided to refresh them. To prepare us for the years ahead,
to keep up with the times. To stay contemporary without forgetting our heritage. A little face lift that will
keep our brands in tune with the times.
Each of the Group’s nine chains or brands has its own identity,
merchandise range and market profile, concentrating on offering
customers a wide range of value for money quality furniture,
appliances, home entertainment and consumer finance products,
supported by high level of personal service.
Following a comprehensive analysis of each chain’s branding,
competitors and target markets, a differentiation strategy has
28
been approved and implemented, with varying degrees of change
required for the different brand identities. Pilot concept stores in
five chains, to test the new look and feel have been exceptionally
well received by customers. Concept stores for another three
chains will be completed by calendar year end. The new or revised
identities will be incrementally rolled out across stores in each
chain over the next few years.

Abra – practical solutions for your home
Established in 1990 and acquired
in December 2000 Abra operates
36 stores (2003: 26) in major cities and
towns in Poland, targeting the middle
to lower mass market and offering an
extensive range of furniture products.
Mission
To become the preferred leading furniture retailer in Central
Eastern Europe through the supply of consistent quality products
and services to our customers, with the collective involvement and
contribution of all our employees and business partners.
Review
Abra ended the year with 36 stores in 31 cities and towns. The
chain expanded its base by opening 13 new stores. At the same
time the existing base was optimised, resulting in the closure of
three underperforming stores.
The customer survey carried out as part of a brand positioning
and communication strategy confirmed our position in targeting
the middle to lower mass market. A new catalogue was launched
in May, starting the process of building brand awareness across
the country.
The foot traffic counters installed indicated that 200 000 people
had visited our stores and in addition the number of customers
visiting our website showed a healthy growth.
29
Piotr Krzanowski (50)
Chief executive – 14*
Executive management
Kazi Borowicz (43)
MSc
Finance and administration – 14*
Piotr Lisowski (36)
MSc
Marketing and merchandise – 11*
* years experience in furniture
retail
Gross margin has improved consistently over the year and the
average transaction value has also increased. Stock turn has
improved significantly.
Outlook
13 New stores, many of which will be a smaller format, and one
new warehouse are budgeted for in 2005, which will give Abra
apresence throughout Poland.
The new concept of catalogue showrooms will be tested in smaller
towns and the option for franchise operations remains open.
Despite the rapid network growth the head count at head office
did not grow exponentially, however, the move to a new head
office in March 2005 will accommodate an increase in employee
complement as the store base grows.
With the increased critical mass of the store base, Abra is
expected to make a small contribution towards Group profits in
2005 and a greater contribution from 2006 onwards.

Barnetts – service and value you can trust
Established in 1896 and acquired in
2003, this 108 year old business retails
entry level and middle of the range
household merchandise and
appliances on affordable terms,
predominantly in rural areas. Barnetts
has stores in eight provinces of South
Africa and operates 100 stores.
Mission
To establish Barnetts as the leading furniture retailer in its
market segment.
Review
In a year characterised by strategic repositioning, consolidation
and rationalisation, Barnetts recorded an excellent performance.
Top line sales grew by 17,7% like on like and margins improved.
A new range of products was introduced which proved very
successful. Costs were well controlled and the chain recorded a
marked improvement in operating efficiencies. The state of the
debtors book improved considerably, with arrears at record lows
and collections well ahead of sector averages. The decrease in the
closed book size and improved risk profile of the current book
reflect better human resources deployment and improved
collection methods.
Information technology processes were integrated and operating
processes aligned to those of the JD Group. Other key
30
developments included the introduction of an electronic credit
scoring system, improved merchandise planning and procurement
processes, the roll out of people development programmes and a
business improvement initiative. Collectively, these have resulted
in cost efficient business practices.
The new brand identity has already increased awareness amongst
employees and customers. Supported by a policy of exceptional
service and consistently adding value, Barnetts is well positioned
for the future.
Outlook
Toy de Klerk (44)
Chief executive – 24*
Executive management
Piet Trichardt (46)
Operations – 17*
Burnette van Breda (47)
Debtors – 27*
Andreas Hinrichsen (48)
Marketing – 20*
Hennie Spies (53)
Merchandise – 30*
Donny McCulloch (50)
Human resources – 30*
* years experience in furniture
retail
Through enhanced brand building, differentiated products and
services and the development and empowerment of our
employees, Barnetts will become a leading and highly profitable
furniture retailer in its market segment. The focus will remain
on responsible credit granting practices, effective debtors
management and cost efficient collection methods.

Bradlows – you’re the difference
Established in 1903 and acquired
in1988. Bradlows has entrenched
its appeal to the aspirational
homemakers’ market, offering
branded appliances, home
entertainment products and superior
quality furniture on affordable terms.
Mission
To provide quality products and services at competitive prices and
thereby exceeding customer expectations.
Review
Bradlows operates through 84 stores in major centres in South
Africa. This team also manages the 16 Supreme operations in
Botswana and the two Bradlows stores in Swaziland.
Bradlows has further enhanced the consumers unique shopping
experience by introducing merchandise which is more affordable.
As a result sales have grown substantially at improved gross
margins, resulting in a significant growth in bottom line profit.
Research has shown that the Bradlows image of providing the
aspirational customer with exceptional service remains entrenched
and sets it apart from the rest of the mass credit furniture market.
The Bradlows debtors book remains in excellent condition with
reduced arrears and improved instalment collection rates.
31
Outlook
Mike Roberts (49)
Chief executive – 22*
Executive management
Corrie Neven (49)
Operations – 21*
Arthur Flemix (57)
Operations – 38*
Willie van Zyl (41)
Debtors – 20*
Mike Shimmon (39)
Marketing – 8*
Conrad Kleingeld (37)
Merchandise – 11*
Robin van der Merwe (50)
IPM Dip
Human resources – 15*
Andrew Ross (38)
Logistics – 13*
* years experience in furniture
retail
The differentiation process which commenced during the current
year will gain momentum during the new year with the new
branding being introduced in advertising and store identification.
Stores are being modernised in terms of the new strategy and
additional focus is to be placed on customer service in terms of the
Bradlows promise, “you’re the difference”.

Electric Express – we’ve got the power
to beat any price on credit
Established in 1958 and acquired in
1993, Electric Express specialises in
household electrical appliances and
home entertainment products
through 114 stores which offer
professional expertise, exceptional
customer service and the best
discount prices for cash or on
easy terms.
Mission
We will achieve our vision by having highly skilled and motivated
employees who offer extraordinary service to our customers on a
broad range of quality products at the most competitive prices in
exciting, conveniently situated stores.
Review
Electric Express’ unique low cost trading formula, which offers
domestic electrical and entertainment products at discounted
prices on credit, has ensured that they remain the market leaders
in their sphere of operation. The continued strengthening of the
rand resulted in price deflation but a significant increase in unit
sales has ensured growth in sales at improved gross margins.
Debtors management remained excellent with the percentage of
arrear instalments being one of the lowest in the industry.
32
Outlook
Bill Chalmers (53)
Chief executive – 14*
Executive management
Albert Fick (53)
Operations – 4*
Herbie Lindhorst (43)
Debtors – 20*
Greg Smart (34)
Marketing – 9*
Craig Robertson (40)
Merchandise – 16*
Millicent Nortjé (48)
Human resources – 29*
* years experience in furniture
retail
The already differentiated store look has been further enhanced to
provide a look that reflects the exciting Electric Express brand.
Even more aggressive promotional activity and merchandising will
see a continued growth in the return on assets.

Hi-Fi Corporation – the lowest prices,
on every product,
everyday, guaranteed
Founded in 1993 and acquired in
2003, Hi-Fi Corporation is the largest
audio and visual warehouse in the
southern hemisphere, retailing
electronic goods and household
appliances to the mid and upper
end of the consumer market through
15 stores in South Africa and one
each in Namibia and Botswana.
Mission
Lowest prices, on every product, everyday, guaranteed.
Review
Hi-Fi Corporation’s mission has ensured that they maintain their
status as “category specialists” by dominating their product
market. Unit sales for the review period have increased by 72%
although this is offset by price deflation, caused by the reduction
in imported supply prices, due to the strengthening of the rand
against the dollar. Notwithstanding, sales for the year increased by
more than 40% and gross margins remained intact.
Excellent cost controls, together with sales and gross margin
performance, has resulted in increased trading margin and return
on assets.
33
Outlook
Diane Bowran (38)
Chief executive – 12*
Executive management
Matthew van der Walt (32)
Operations – 8*
Ryan Grill (35)
Marketing – 8*
Alec Goodman (49)
Merchandise – 28*
Debra Teles (38)
Human resources – 15*
Martin Barbour (47)
Logistics – 10*
Riekie Susini (41)
Administration – 4*
* years experience in furniture
retail
The return on assets being achieved by Hi-Fi Corporation and its
relatively narrow trading footprint, offers an opportunity for this
chain to be expanded into the market place. An expansion
programme, which will ensure that the store base will increase
significantly over the next three years, is in place. In order to
accommodate this expansion, a programme to review business
processes, systems and people requirements is being embarked
upon. This will ensure a smooth transition into the next life cycle
of the chain and will result in maximised Economic Value Added.

Joshua Doore – your uncle offers a discounted
range on credit
Established in 1973 and acquired in
1986, Joshua Doore is the largest
furniture, appliances and home
entertainment products discounter
in South Africa with 146 stores.
Mission
To offer a wide range of furniture, household appliances,
entertainment products and financial services, geared by a
philosophy that drives an innovative business approach and an
extraordinary level of service to internal and external stakeholders.
Review
Joshua Doore recorded good results for the third consecutive year,
achieving sales growth of 15,3%. This reflects the benefits of its
focus on guaranteeing the lowest prices in selected product
categories and aggressive marketing through its own catalogue
and electronic media.
In a highly competitive sector, margins were protected by
innovative sourcing of value added local and imported products.
The continuous focus on instalment collections, with a
concomitant improvement in cash flows, further improved
returns. Cash flows were also boosted by an increased level of
cash sales during the year.
34
Joshua Doore pays particular attention to employee development
and succession planning, recognising that well trained employees
will deliver premium results. Effective management training is
conducted via development programmes, in which individuals are
developed to their full potential. This ensures a pool of trained
people ready for higher positions, as reflected in Joshua Doore’s
excellent track record of internal promotions.
Outlook
James Gibson (53)
Chief executive – 32*
Executive management
Fanie Venter (40)
Operations – 19*
Johan Delport (55)
Debtors – 35*
Christo Viljoen (45)
Marketing – 25*
Fred de Jager (55)
Merchandise – 33*
Brian Biccard (54)
Human resources – 30*
André Barnard (42)
Logistics – 20*
* years experience in furniture
retail
Given a stable exchange rate and low interest rates, the market
remains buoyant. Joshua Doore will capitalise on this via increased
promotional activity and constantly reviewing its merchandise
range to best satisfy customer demand.
Continued focus on its differentiation strategies and business
performance improvement, supported by expansion of its store
base, will allow Joshua Doore to unlock more value and ensure
continued real growth in the next financial year.

Morkels – your two year guarantee store
Established in 1937 and acquired in
2003, Morkels operates 113 stores in
major cities and towns in South Africa
and Botswana. Morkels appeals to the
aspirational customer, offering branded
appliances, home entertainment,
computers and quality furniture,
on affordable terms.
Mission
We offer a unique company backed two year guarantee on
quality, affordable merchandise provided by dedicated,
professional people at exceptional service levels.
Review
During the year Morkels was successfully restructured to align its
business to the JD Group trading formula. Its product range was
refined to offer its target market affordable, quality merchandise.
Aggressive marketing of this more competitive offering, backed by
the strength of its well known two year guarantee, resulted in
Morkels increasing market share. Top line sales rose by 15,9% like
on like.
The debtors book performed extremely well during the year,
particularly on the collection and management of bad debts,
resulting in a substantial reduction in arrears. An online
automated credit scoring system was introduced late in the
financial year which will further improve the debtors book.
35
Morkels’ integration into the JD Group has been extremely well
controlled, reflecting the strength of their middle management,
the commitment of all employees to manage the transition and to
deliver on shareholder expectations. Service and quality continue
to differentiate the Morkels brand.
Outlook
Jannie Els (55)
Chief executive – 36*
Executive management
Rowland Jonck (44)
Operations – 22*
Charl du Plessis (38)
BJuris
Debtors – 12*
Peter De Backer (39)
Marketing – 19*
Colin Bresler (41)
Merchandise – 5*
Sue Lewis (43)
Human resources – 16*
Pat Kimmince (39)
Logistics – 20*
* years experience in furniture
retail
Morkels will continue to capitalise on the extensive JD Group
infrastructure and selectively expand its geographical footprint
within the boundaries of South Africa. The focus will remain on
improving operational efficiencies, managing expenses and
optimising its excellent supplier relationships in order to provide
discerning customers the quality, affordable products and services
they demand.

Price ’n Pride – we treat you like our
only customer
Established in 1983 as the founding
chain in the Group and repositioned
to cater for a more aspirational
market. Price ’n Pride operates
118 stores in urban and rural
communities throughout South Africa
and Lesotho, offering excellent
service and affordable products
to its customer base.
Mission
To improve our customers’ lifestyle by providing an affordable
range of quality products and services in a caring, respectful and
honest environment, at exemplary levels of customer service
through competent and proud employee.
Review
The benefits of repositioning the Price ’n Pride brand emerged
strongly during the year, with top line sales growth of 22,7%
and a marked improvement in the debtors book, reflecting
the appeal of the products and service offering in the target
market. Independent market research has verified the accuracy
of this repositioning and its attractiveness to an ever growing
customer base. The focus on business performance improvement,
productive employee levels, performance based rewards and
effective distribution strategies has further improved service levels
and profitability.
36
Over the past three years Price ’n Pride has instilled an
entrepreneurial culture throughout the chain, resulting in
healthy competition between its people for recognition and
acknowledgement of their professionalism by customers.
Outlook
Len Rundle (49)
BTech
Chief executive – 25*
Executive management
Ian McKay (38)
Operations – 16*
Pieter Labuschagne (58)
Debtors – 28*
Neil McLean (48)
Marketing – 31*
Laurie Barnard (46)
Merchandise – 22*
George Annandale (40)
Human resources – 5*
* years experience in furniture
retail
Price ’n Pride is projecting top line sales growth of 20% for 2005,
with further improvements in all indicators on the debtors book.
Continued focus will be placed on the development of the chain’s
people with appropriate recognition for outstanding performance.

Russells – your home lifestyle partner,
quality guaranteed
Established in 1943 and acquired in
1993, Russells operates 199 stores
in major cities and towns in South
Africa. Customers enjoy affordable
terms on quality furniture, branded
appliances and home entertainment
products.
Mission
Differentiate ourselves from our competitors by offering an
innovative range of furniture products, appliances and financial
services through competent employees, thereby exceeding the
expectations of our target market.
Review
Russells, with its large national footprint, continues to be the
largest contributor to the Group’s profit performance. Aggressive,
creative, highly successful marketing and merchandise campaigns
have resulted in turnover growth well ahead of the market. This
has been supported by a strong focus on operational disciplines
and efficiencies, resulting in very positive cash flows and a
consequent excellent return on assets.
Russells pioneered the differentiation drive. Fourteen stores have
been converted to the new look, supported by improved customer
facilities and service. Results from these stores have validated the
acceptance of our new look and feel by the target market.
37
Management development through various programmes has
ensured a steady flow of trained talent to provide for succession.
Outlook
Wietske van der Westhuizen (51)
Chief executive – 25*
Executive management
Philip Kruger (42)
BCom
Operations – 14*
Ronnie Mostert (51)
Operations – 30*
Tokkie Combrink (62)
Debtors – 37*
Wikus Labuschagne (45)
Debtors – 25*
Kobus Minnaar (51)
Marketing – 17*
Pieter Schoeman (48)
Merchandise – 23*
Barry Dell (49)
Human resources – 10*
Rens van Rensburg (54)
Logistics – 22*
* years experience in furniture
retail
Russells is perfectly poised to take further advantage of the
buoyant market and increase its market share even further. The
recently introduced programme for Business Performance
Improvement will ensure that efficiencies continue to add
economic value.

Our world changed on
September the eleventh
forever, and keeps
changing every
day since
2002
2001
After 21 years we have only just begun
Mark Shuttleworth
– first South African
in space
38
Joshua Doore opens the doors of its
150th store.
Interest rates are riding high, while the rand
drops to a shocking low, factors that impact
on consumer confidence and resulting in the
share price dipping to R16.

Score is absorbed into a repositioned Price ‘n Pride transforming a loss of R7 million into
a profit of R44 million. A huge achievement by our people and testimony to their
unwavering support.
In the spirit of sharing good fortune, JD continues to invest in the lives of people in the
communities. The company launches The To Life Trust which supports the Lerato Love
Home in the Alexandra township.
The Group now turns 18.
2003 The Group, never forgetting the importance of people,
launches the Retail Leadership Development Programme,
opens the JD Group learning academy and with the
sponsorship of Price ’n Pride and Joshua Doore sets
up two Little Champs Academies, focusing on
pre-school kids.
39
The JD Group is in a stronger position than ever and
acquires the Profurn Group. The jewels in our crown,
now include Morkels – “your two year guarantee store”,
Hi-Fi Corporation with it’s unique trading formula and
Barnetts – with a rich heritage of more than 100 years.
The Group now consists of 1 000 stores, employs over
16 000 people, drives a fleet of 2 300 vehicles and
purchases goods for resale in excess of R4 billion a year.

Corporate services
The corporate service departments provide the backbone of support to the chains. Each department has a
field of expertise employing people with specialist skills to maximise the service they give to the chains.
21 years young with the expertise to support and take the
JD Group forward.
40

Ensuring that Group credit
management strategies, policies and
procedures are conceptually sound
and observed in all operations.
Review
Good progress was made with the fine tuning and enhancement
of the Group’s credit application and scoring systems, which now
include sophisticated fraud detection models. All credit granting
chains in the Group have been linked, online and in real time, to
the system, which is one of the most efficient and comprehensive
of its kind in the consumer credit industry.
Development of the Group’s new automated debtors collection
system, which will function in conjunction with the about to be
launched PeopleSoft operating system, is well advanced. Roll out
of these systems to the chains will commence, in earnest, in the
first quarter of 2005.
The emphasis on quality customer acquisition, identification and
categorisation of credit risk and fine focus on debtors delinquency,
down to individual account level, has reaped gratifying rewards
and led to significant improvement in the overall quality of the
Group’s debtors books. This emphasis and focus has become and
will continue to be a way of life at JD Group.
41
Credit and administration
Outlook
Dick Behrens (64)
Group executive – Credit and
administration – 45*
Executive management
Herman Bakkes (44)
BCom(Acc) MBA
Debtors – 20*
* years experience in furniture
retail/IT
The quest for better control through automation and the
employment of world class technology and methodology,
together with unwavering management focus, will ensure that
customer service is enhanced, collections maximised and bad
debts minimised, leading to the unlocking of opportunities for the
broadening of the Group’s reach within the consumer credit
market place.

Responsible for the financial
accounting and reporting for
the Group.
Review
The main focus of the period under review was characterised by
the continued integration and alignment of the various Profurn
systems and processes with the existing systems. In addition, the
budgeting and forecasting process was revised, and included the
relevant modelling for the Business Performance Improvement
initiative within the Group’s chains, which will remain one of our
focus areas.
The implementation of the PeopleSoft operating system into a
number of stores required significant preparation and testing and
will be an ongoing process throughout the new year.
Outlook
In addition to the PeopleSoft implementation process, the
department will focus on the re-engineering of the value chain
within finance department and strive to increase the level of
electronic integration between both internal and external systems,
including those of the banks and other stakeholders. Training and
development of employees will continue and include candidates in
various management development programmes.
42
Finance
Leslie van Doesburgh (48)
BCompt
Group executive –
Chain finance – 28*
Ian Thompson (36)
BCom BAcc CA(SA)
Group executive –
Head office finance and
treasury – 13*
Executive management
Johan Breytenbach (39)
BCom
Finance – 16*
Roelof Cornelissen (33)
BCom (Hons) CA(SA)
Finance – 11*
Lucia Hefer (40)
BCom (Hons)
Finance – 19*
Sanette Oberholzer (47)
BCom
Finance – 27*
Susan Olivier (47)
Finance – 30*
Tracey Rood (36)
BCom BAcc
Finance – 14*
Elmien Rossouw (41)
BCom (Hons)
Finance – 8*
Fanie van der Merwe (36)
MCom CA(SA)
Finance – 14*
* years experience in
finance/banking/auditing

Managing the procurement,
maintenance, administration,
insurance and disposal of a
fleet of over 2 600 vehicles.
Review
The role of fleet management is to purchase the most appropriate
commercial and sedan vehicles for the Group’s needs. Careful
selection ensures a cost effective and efficient delivery service.
Fleet management administers these vehicles and provides the
management information systems to run the fleet in the most
productive manner. The department has integrated the fleets from
Profurn and JD, balanced the portfolio and disposed of vehicles
that were surplus, uneconomic or inappropriate to the needs of
the Group. The department has been successful in maintaining
the fleet in a good condition and minimising running costs.
Strong relationships have been forged with major suppliers. The
purchasing power of the Group has ensured highly competitive
vehicle purchase prices, as well as maximised vehicle disposal value.
43
Outlook
Fleet management
Clive Dicks (59)
Fleet management executive – 41*
* years experience in retail/financial
services/consulting/transport
As operating costs for transport continue to increase so the need to
be more productive and manage costs to the finest detail becomes
more important. Management information will be enhanced to
facilitate the close monitoring of costs and productivity.
Fleet management strives towards being a world class customer
service based department in all aspects of its operations.

Responsible for training and
development, employee relations,
remuneration administration and
employee benefits. The department
enhances business performance
by enabling, providing and
implementing best practice people
management solutions.
Review
The focus this year shifted from integrating the Profurn business
into JD towards enhancing and fine tuning the efficiencies and
effectiveness of the human resources business process value chain.
Final consolidation of all retirement funds and medical schemes for
employees has been completed. Employees can now look forward
to more professional services and timeous communication.
Since inception in April 2003, the JD Group Learning Academy has
hosted over 11 000 delegates. This bears testimony to the Group’s
drive towards and commitment to the ongoing training and
development of its people. Two additional leadership
development programmes were introduced at general
management and executive levels. These programmes have the
added credibility and prestige of being accredited and partnered
with the University of South Africa from 2005.
The Group was selected as the pioneer company to partner with
the Wholesale and Retail Sector Education and Training Authority,
in a R1 million learnership project for people with disabilities. The
success of the project culminated in a graduation and certification
ceremony at JD House on 19 November 2004.
44
Lindsay Mentor (44)
IPM Dip CPIR
Group executive – Human
resources – 16*
Executive management
Christine Grobler (37)
BA (Hons) M(Phil) Labour Law
and Employment Relations
Employee relations – 19*
Rénier Krige (37)
BCom SMP
Training and development – 15*
* years experience in human
resources
Annual negotiations for 2004 were concluded after just one
sitting, a clear indication of management’s transparency in sharing
relevant information for the negotiations and organised labour’s
(SACCAWU) appreciation of the information.
An industrial relations training programme for managers and shop
stewards, facilitated jointly by HR managers and full time shop
stewards, was successfully launched in 2004 and has significantly
contributed to fostering sound relationships between labour and
management at chain level.
Outlook
Human resources
The launch of the new HR technology platform in the coming year will
provide the chains and service departments, through their respective
HR practitioners, with a real time analytical capability to more
effectively and efficiently manage the Group’s human resources.
Meeting and exceeding the Group’s employment equity policy and
plan, through the focused continuation of training and development
of our people, remains top of mind for the department.

Comprises a direct audit services
division, a centralised audit
function and a forensic audit division.
The 70 auditors have an appropriate
balance of operational and audit
experience. This division is also
responsible for security operations
in the Group.
Review
Over 1 535 audits were conducted during the year at Group
operations, locally and abroad, reflecting the multi-skilled
expertise of our auditors and entrenching the Group’s internal
audit function at the forefront of its field.
Much focus was applied during the year to enhance appropriate
audit processes for the Group across the various operating systems.
The use of centralised auditing techniques continues to be enhanced
through the effective use of audit interrogation applications.
The forensic audit function managed 3 980 incidents which varied
from minor to more serious incidents. The crime call centre
has produced valuable information and is realising significant
cost savings.
Incorporating safety and security functions into this department,
under the auspices of the new safety and security committee, has
improved cost efficiencies. Various initiatives have been
implemented to add value and reduce costs.
Internal and forensic audit
45
Outlook
Pieter Pienaar (35)
BCom
Internal audit executive – 13*
* years experience in
retail/auditing
Internal and forensic audit provides assistance with the
integration of multiple systems and will develop new audit
programmes for the new PeopleSoft operating system.
Centralised auditing techniques will be further developed,
especially on the back of the central database in PeopleSoft.
An external quality control review will be conducted to ensure the
department is operating effectively and efficiently.

Supports the operational and
management information system
needs of the Group via the
rigorous application of formal
information architecture, software
quality assurance and a process of
continuous improvement in the
information system operation.
Review
Following the integration of the legacy Profurn chains in the previous
year, there were two main thrusts. Firstly the integration of the
Frontier credit scoring engine to the Morkels and Barnetts chains and
secondly the enhancement of management information for these
two chains. This required the stabilisation of the store processing
system and the ability of disparate systems to interact.
In line with our end goal we have implemented the PeopleSoft
operating system, on a pilot basis, in six stores. This has been
running for a number of months and the major teething problems
have been resolved. The integration of PeopleSoft into the new
debtors collection system is nearing completion, with the first pilot
due to be rolled out mid November. Full roll out of the integrated
PeopleSoft system should commence early next year.
Implementation of the PeopleSoft system will require ongoing
improvement in the reliability and manageability of the network.
This remains a key focus going forward.
46
IT and communications
From an IT operations point of view we have commenced with the
implementation of the Microsoft Operations framework which
incorporates ISO standards. This initiative is in line with the
philosophy of continuous improvement.
Outlook
Ian Child (46)
BCom (Hons) BAcc CA(SA)
Group executive – IT and
communications – 19*
Executive management
John Andrews (55)
Information systems – 25*
Joey Kok (55)
Systems development – 12*
Avril Samuels (44)
Systems development – 15*
Leon Steenkamp (45)
Systems operations – 22*
Nico Potgieter (48)
Branch operations – 23*
* years experience in furniture
retail/IT/finance
The roll out of the PeopleSoft system to the historic JD chains should
be completed by the end of calendar year 2005. A centralised
system will require a more robust disaster recovery plan as well as
a highly reliable data centre and network. These areas will be
the main focus for 2005.

Group marketing is tasked to
constantly re-evaluate processes
and proactively develop sales
and marketing opportunities.
Responsible for the Group’s loyalty
clubs, statements, public relations,
customer data analysis and direct
marketing.
Review
Under the banner of Direct, all chains, with the exception of
Hi-Fi Corporation, have been successfully integrated into monthly
marketing programmes. Campaign results have consistently
exceeded expectations and, for the fifth consecutive year, a gold
Loerie award was received from the South African Direct
Marketing Association in recognition of campaign effectiveness.
Successful direct marketing campaigns were extended to various
qualified external bases.
The Club division of corporate marketing has consistently
increased revenue to all the chains, while simultaneously offering
improved value and strengthened loyalty propositions to club
members. A sophisticated data mining and management
programme has been launched to streamline and strengthen
direct targeting and campaign interpretation.
The public relations function has performed at exceptional
standards of professionalism, while all divisions within Group
47
Leoni Field (40)
Marketing executive – 18*
* years experience in retail
marketing have successfully incorporated and implemented the
chain differentiation strategy within their respective activities.
Outlook
Marketing
The Group marketing department will continue to provide
professional marketing support to the chains, simultaneously
adding value and contributing to increased market share.
The department is perfectly positioned to unlock the true value
of the Group’s database, to optimise customer acquisition and
retention through the data management tools and to strive
to provide the chains with world class service in achieving
these objectives.

Co-ordinates the merchandising
functions in the Group, capitalising
on strong relationships with local and
global suppliers to meet changing
customer needs.
Review
The Group continued its drive to optimise merchandising
efficiencies with a resultant positive impact on sales growth. This
achievement was attained despite the prevailing deflationary
environment and without any concomitant margin sacrifice.
Group merchandise department’s ability to timeously develop
and implement appropriate strategies to take advantage of
the increased consumer demand also contributed meaningfully
to growth.
Due to its innovative and enhanced information systems
capabilities, superior consumer market trend analysis skills and
constant global scanning for new product trends and ideas, the
Group was able to successfully maintain its status as industry
leader. Furthermore, the merchandising department’s emphasis on
maintaining a sound and proactive relationship with both local and
global suppliers, ensured ongoing product innovation and efficient
product delivery.
48
Outlook
Merchandise
Fred Ginsberg (57)
Group executive –
Merchandise – 37*
* years experience in retail
Group merchandise will ensure that it continues to underpin the
Group’s highly successful differentiation strategy. However, the
optimisation of unit sales and selling prices in order to maximise
top line sales and gross profit levels, remains the overriding goal
of the division. Group merchandise will also continue its
passionate and unrelenting pursuit of finding new and innovative
ways of doing things.

Responsible for the Group’s property
negotiations, project and shopfitting,
lease administration and related
legal aspects.
Review
The 2004 financial year was extremely exciting in that the Group
embarked upon a differentiation programme across all eight
southern African chains.
The resultant new display formats have absolutely differentiated
our brands from each other and our competitors.
Our renovations programme was delayed during the year as a
result of the differentiation and branding process, but has gained
momentum towards the latter part of the year.
During the year, the department negotiated 320 leases, of which
250 were renewals. The project team successfully managed the
relocation of 17 stores, opened 8 new stores and renovated
91 stores.
A total of 1 367 leases are administered by the now fully
integrated department, which includes the management of the
Group rentroll.
49
Outlook
Property
André Maré (52)
Group executive –
Property services – 30*
Executive management
Etienne du Plessis (54)
Bluris LLB
Property leases and
administration – 29*
Ivan Nefdt (41)
Property management – 16*
Nico Celliers (47)
BSc (Hons) Prod Eng
Property leases and
project management – 19*
* years experience in furniture
retail/property
It is our commitment to renovate twenty percent of our store base
per annum, in line with the new chain differentiation strategies.
R40 million has been earmarked for the new financial year and we
will continue to contribute to Group bottom line by ensuring that
chain refurbishment costs are within budgeted parameters.
The tremendous growth in the property market during the course
of the financial year under review, has resulted in limited available
retail premises. We have strengthened our employee complement
to ensure that we pursue every opportunity to enhance the
Group’s trading footprint.

Responsible for the statutory corporate
secretarial functions of the Group.
Review
The year under review was dominated by the absorption of the
statutory entities of Profurn, the onerous compliance
responsibilities imposed on the department by the enactment of
the Financial Intelligence Centre Act and Financial Advisory and
Intermediary Services Act, as well as management of the transition
process to the new administrators of The JD Group Employee
Share Incentive Scheme.
The number of South African companies administered by the
secretarial department was unchanged at 43. Those companies
incorporated in the BLNS and Mozambique countries are separately
administered by company secretaries in those countries.
Following the reintroduction of the requirement to lodge annual
returns for every South African registered company with the
Registrar of Companies, some 25 dormant subsidiaries have been
earmarked for deregistration in due course and key trade names
will be registered as defensive company names to enhance
administrative efficiencies.
50
Outlook
Secretarial
Melvyn Jaye (59)
CA(SA)
Company secretary – 41*
Executive management
Theva Naidoo (41)
BA BCom (Hons)
Special projects – 19*
* years experience in
auditing/company secretarial
practice/financial services
To continually enhance and streamline the duties performed by
the secretarial department with a view to achieving excellence in
all facets of statutory company administration and to ensure
compliance with the JSE Securities Exchange South Africa Listing
Requirements, with particular reference to the recently introduced
Social Responsibility Index, the King II Report on Corporate
Governance and other legislation.

Influencing and shaping the Group’s
strategic thinking.
Review
The strategy department has been successfully established as a
key contributor to influencing and shaping the corporate mindset
of the Group towards its short, medium and long term growth
strategies.
During the year the department initiated and co-developed the
following major strategic initiatives with the chains:
■ The design, development and planning of the Group’s
differentiation strategy with the focus on implementation for the
next four years, to ensure increased competitiveness in the
external market whilst minimising any potential risk of internal
focus.
■ Design, development and planning of a Business Performance
Improvement (BPI) strategy to unlock value internally.
■ Successful launch of a Retail Leadership and Development
Programme (RLDP) and the conclusion of a Certification
Agreement with the Centre for Business Management of the
University of South Africa as partners in this programme as from
2005. A relationship has been established with the Gordon’s
Institute of Business Science (GIBS) for the leadership
development of Group Executives through their International
Executive Leadership Development Programme (ELDP).
■ Completion of a successful research programme for all chains, to
validate their differentiated positioning and branding.
51
■ Launch and successful implementation of a Supplier Relationship
Optimisation Programme (SROP) to ensure alignment with the
Group’s differentiation strategy and to identify opportunities for
efficiency improvement.
■ Final closure and follow through on the Profurn acquisition.
Outlook
Strategy
The department will ensure the following:
Dr Henk Greeff (45)
BA.Ed (cum laude)
B.Ed (Ed.Management) (cum laude)
M.Ed (Ed.Management) (cum laude)
PhD
Group strategy executive – 9*
* years experience in strategic
management consulting
■ Monitoring and tracking of the implementation of the
differentiation strategy of the Group and the follow through
with the service departments and suppliers.
■ Implementation of the BPI strategy and the realisation of the
envisaged benefits.
■ Enhancement and delivery of the next RLDP and ELDP leadership
development programmes.
■ Continuation of the research programme and enhancement to
include socio-demographic perspectives.
■ Expansion of the SROP to all strategic suppliers, thereby securing
alignment with our differentiation strategies and optimised
mutual efficiencies.

2004
The JD Group comes of age. 21 years young.

A dream made real through the dedication of all our employees, with the
support of those providing us with funding and goods and because we have
consumers who believe and trust in what we offer. Thank you, one and all.

Contact details
JD GROUP LIMITED
JD House
27 Stiemens Street
Braamfontein, 2001
PO Box 4208, Johannesburg, 2000
Telephone +27 11 408 0408
Facsimile +27 11 408 0604
E-mail info@jdg.co.za
Internet website http://www.jdg.co.za
54

Maxx New Media
Concept and design
GRAPHICOR 31289

www.jdg.co.za

A brighter future to come
Annual Financial Statements 2004

Corporate governance...........................................................1
Ten year review ..................................................................10
Directors’ approval of the annual financial statements ........14
Report of the independent auditors ....................................15
Certificate by company secretary ........................................15
Directors’ report .................................................................16
Directors’ remuneration ......................................................18
Definitions and accounting policies......................................24
Group annual financial statements and notes ......................30
2 1 Y E A R S Y O U N G
1 9 8 3 -
2 0 0 4
Segmental analysis .............................................................55
Share incentive trusts and salient features ..........................60
JD Group Limited – company financial statements ..............63
Subsidiaries ........................................................................64
Analysis of shareholders ......................................................66
Notice to shareholders .......................................................67
Directorate and administration ............................................70
Form of proxy ....................................................................71
Shareholders’ diary ............................................................IBC

“the way you behave when you are not being watched”
Mervyn King defines good governance
Introduction
This corporate governance statement sets out the key governance
principles and practices of JD Group. JD Group is a dual listed
company with its primary listing on the JSE Securities Exchange
South Africa (“JSE”) and its secondary listing on the Namibian
Stock Exchange (“NSX”).
The board of directors is committed to, and support, the principles
contained in the Code of Corporate Practices and Conduct as set
out in the second report of the King Commission (“King II”) on
Corporate Governance for South Africa, as well as the Listing
Requirements of the JSE and the NSX.
Statement of compliance
Based on the information set out in this corporate governance
statement, the board believes that throughout the accounting
period under review, the Group has applied the principles of
King II and complied with the provisions set out in the Listing
Requirements of the JSE and the NSX.
Business model
JD Group’s business model consists of eight chains trading within
Africa, the Abra chain trading in Poland, and support services
provided by 11 corporate service departments.
The directors are of the opinion that the business model in place is
balanced and sound and provides a solid platform for continued
growth. The directors are nevertheless aware of the changing
dynamics of the industry and will modify Group strategy and models
from time to time in accordance with changing circumstances.
Strategic business goals
The Group’s corporate objectives and opportunities, set out on
page 5 of book 2, evidence its commitment to good corporate
governance.
Endorsement of King II
JD Group remains fully committed to the principles of effective
corporate governance and application of the highest ethical
standards in the conduct of its business. We endorse the principles
of integrity and accountability advocated by King II. In all dealings
we strive to ensure that the interests of stakeholders are foremost in
our decisions and that they are fully informed of the process.
We have long recognised that good corporate governance is
essentially about leadership and that the need exists to conduct
the business with integrity and in compliance with best
international practices, while taking cognisance of the value
systems of the countries in which we operate.
1
Corporate governance
Code of conduct
The Group is committed to the highest ethical standards of
business conduct and to fully complying with all applicable laws
and regulations.
The directors, employees, employees of outsourced functions as
well as suppliers to JD Group, are all expected to comply with the
principles and act in terms of the code of conduct. The directors
believe that the ethical standards of the Group, as stipulated in the
code of conduct are monitored and are being met. Where there is
non-compliance with the code of conduct, the appropriate
discipline is enforced with consistency as JD Group responds to
offences and prevents re-occurrence.
Chairman and board of directors
Chairman
The executive chairman is David Sussman, founder of the Group.
The board delegates to the chairman responsibility for
ensuring the effectiveness of governance practices. He leads
the board and is responsible for representing the board to
shareholders.
The reason for not appointing a non-executive chairman is that
David is a founder and custodian of the soul of the Group and, in
the opinion of the board, his position as executive chairman does
not compromise the principles of corporate governance.
Board
The Company has a unitary board comprising 10 directors of
whom five are non-executive directors. The board considers
Mervyn King, Len Konar, Maureen Lock and Martin Shaw as
independent non-executive directors as defined by King II and the
Listing Requirements of the JSE.
In compliance with King II and the Listing Requirements of the JSE,
the roles of the chairman and the chief executive officer are separate.
The primary responsibilities of the board include regular review of the
strategic direction of investment decisions and performance against
approved plans, budgets and best practice standards. The board
retains full and effective control of the Group and decisions on
material matters are reserved for the board.
The board meets at least quarterly, and more frequently if
circumstances or decisions require. The attendance register of
meetings is set out below.

Corporate governance continued
2003 2004
Director 16 Nov 5 Dec 10 Mar 17 May 26 Jul 10 Nov
ID Sussman P P P P P P
HC Strauss P P P P P P
JL Bezuidenhout P P P P P P
G Völkel P P P P P P
ME King P P A P P P
D Konar P A P P P P
IS Levy P P P P P P
M Lock *
P A A P A P
MJ Shaw P P P P P P
JHC Kok †
– – P P P P
* Non-resident P = Present
† Appointed 1 March 2004 A = Apologies
Mark Richards, corporate support services executive, attends all
board meetings by invitation.
Meetings are conducted in accordance with formal agendas,
ensuring that all substantive matters are properly addressed.
Standing subcommittees of the JD Group board have been
appointed, details of which are set out in this report, while ad hoc
subcommittees are created as and when necessary.
The chairman sets the agenda for each meeting in consultation
with the chief executive officer and the company secretary. Any
director may request that additional matters be added to the
agenda. Copies of board papers are circulated to the directors in
advance of the meetings.
There is a clear division between the responsibilities of the board
and management.
Mias Strauss, the chief executive officer, takes full responsibility for
all operations.
The non-executive directors take responsibility for ensuring that
the chair encourages proper deliberation of all matters requiring
the board’s attention. The board ensures that there is an
appropriate balance of power and authority on the board so that
no one individual or block of individuals can dominate the board’s
decision making process.
Directors are appointed on the basis of skill, acumen, experience
and level of contribution to and impact on the activities of the
Group. Non-executive directors contribute an unfettered and
independent view on matters considered by the board and enjoy
significant influence in deliberations at meetings. All directors
have the requisite knowledge and experience required to properly
execute their duties, and all participate actively in the proceedings
at board meetings. The non-executive directors have no fixed term
of office, while executive directors have entered into service
contracts with Sustein Management (Pty) Ltd. The service contract
continues until 28 February 2005 whereafter it automatically
2
endures for an indefinite period subject to one year’s notice from
either party.
The board and its committees are supplied with full and timely
information which enables them to discharge their responsibilities.
They have unrestricted access to all Group information. Nonexecutive
directors have access to management and may even
meet separately with management, without the executive
directors being present.
Some of the non-executive directors hold directorships or
executive positions in companies with which JD Group has
commercial relationships. The board has considered all these
relationships and does not consider that any of them compromise
the independence of the directors concerned.
All directors are entitled, at the Group’s expense, to seek
independent professional advice about the affairs of the Group
in relation to the execution of their duties, if such expertise
is required.
One third of the directors are subject, by rotation, to retirement
and re-election at the annual general meeting in terms of the
Company’s articles of association. In addition, all directors are
subject to election by shareholders at the first annual general
meeting after their initial appointment.
The biographical details for each of the directors are set out on
pages 10 to 12 of book 2.
Interests in contracts
During the year ended 31 August 2004, none of the directors had
a significant direct or indirect interest in any contract or
arrangement entered into by the Company or its subsidiaries.
Company secretary
The company secretary is Melvyn Jaye. The appointment and
removal of the company secretary is a matter for the board as a
whole. The company secretary advises the board on the
appropriate procedures for the management of meetings and the
implementation of governance procedures.
The board has unlimited access to the company secretary,
who advises the board and its subcommittees on issues
including compliance with Group policies and procedures,
statutory regulations and King II. He works with the board to
ensure compliance with the Listing Requirements of the JSE and
the NSX.
Board committees
Specific responsibilities have been delegated to board committees,
all of which have defined charters in place.

JD Group Limited board and management committees
A diagrammatic outline of the entities to which delegations have been made are set out below:
Board
Committees
Audit
Remuneration
Nominations
Risk Management
JDG Trading board
Audit committee
The audit committee is a subcommittee of the board and
comprises Mervyn King (chairman), Len Konar and Martin Shaw,
all of whom are independent non-executive directors.
David Sussman, Mias Strauss, Jan Bezuidenhout, Gerald Völkel,
Johan Kok, Mark Richards, Leslie van Doesburgh, Ian Thompson
and Pieter Pienaar attend meetings by invitation. The audit
committee meets formally at least three times per annum to
consider financial reporting issues and to advise the board on a
range of matters, including corporate governance practices,
internal control policies and procedures, and internal and external
audit management.
JD Group Main Board
3
Management
Committees
Exco
RMEC
Tradeco
Servco
Leadership and
Development Council
Chains
Service Departments
Employee
Benefits Funds
The external auditors attend the formal committee meetings and
also have unrestricted access to the chairman of the
audit committee. The audit committee is satisfied that the
independence of the external auditors is not compromised by the
present scale of non-audit related fees paid to them.
Through the audit committee, the board regularly reviews
processes and procedures to ensure the effectiveness of internal
systems of control so that its decision making capability and the
accuracy of its reporting is maintained at a high level at all times.
The committee, furthermore, identifies and monitors the nonfinancial
aspects relevant to the businesses of the Group and

Corporate governance continued
reviews appropriate non-financial information that goes beyond
assessing the financial and quantitative performance factors.
The attendance register of meetings is set out below.
2003 2004
Member 16 Nov 5 Dec 11 Feb 14 May 10 Nov
ME King P P P P P
D Konar P A P P P
MJ Shaw P P P P P
P = Present A = Apologies
Remuneration committee
The remuneration committee is a subcommittee of the board and
comprises four non-executive members, Ivan Levy (chairman),
Mervyn King, Len Konar and Martin Shaw, and David Sussman. Its
main responsibility is to review and approve the remuneration and
employment terms of executive directors and senior Group
executives. Two meetings of the committee are scheduled
annually, with ad hoc meetings convened as and when required.
Nine executives are employed by Sustein Management. In terms of
the management agreement between JD Group, JDG Trading and
Sustein Management, a fee is paid by JDG Trading to Sustein
Management for its services to the Group. These executives are
therefore not remunerated directly by JD Group.
In determining the remuneration of the executives, the
remuneration committee aims to provide the appropriate
packages required to attract, retain and motivate the executives
whilst giving due consideration to remuneration levels, both
within and outside the Group. To meet these objectives, the
committee from time to time takes advice from external
remuneration specialists.
The Group’s primary executive remuneration objective is to reward
the executives so as to ensure that their interests are, as far as
possible, commensurate and aligned with the interests of the
shareholders.
Remuneration for the executives consists of an all inclusive total
cost to company basic salary, a performance related bonus and
share incentives. Full details of the remuneration of the individual
directors and information on share rights are set out on pages
18 to 23 of these annual financial statements.
The basic salaries for the executives are reviewed annually. The
committee compares current rates of pay to those observed in similar
relevant companies within and outside the Group. This information
is then adjusted to reflect both the Group’s performance compared
to similar companies and the individual’s performance.
An annual performance bonus is awarded as an incentive to
executives to achieve predetermined financial and other targets.
4
The Group operates two share incentive schemes for directors and
senior executives. The committee grants rights which relate to the
executive contributions and responsibilities. Rights granted are
subject to time limits. Rights are also granted to non-executive
directors since this aligns the interests of these directors with the
Group’s shareholders.
The remuneration of the non-executive directors is set by the
executive chairman after consultation with the Group’s advisors.
The remuneration of the chairman is set by the committee while
he is not in attendance.
The attendance register of meetings is set out below.
Member
2004
16 February 2 August
IS Levy P P
ME King P P
D Konar P P
MJ Shaw A P
ID Sussman P P
P = Present A = Apologies
Nominations committee
The nominations committee, comprising the same members as
the remuneration committee, is chaired by Ivan Levy.
The nominations committee supports and advises the board in
ensuring that the board comprises individuals who are best able to
discharge the responsibilities of directors, having regard to the law
and the highest standards of governance, by:
assessing the skills required on the board;
from time to time assessing the extent to which the required
skills are represented on the board;
establishing processes for the review of the performance of
individual directors and the board as a whole; and
establishing processes for the identification of suitable
candidates for appointment to the board.
The attendance register of meetings is set out below.
Member
2003
16 November
IS Levy P
ME King P
D Konar P
MJ Shaw P
ID Sussman P
P = Present A = Apologies
Risk management committee
The risk management committee is a stand alone subcommittee
of the board. This committee comprises Len Konar (chairman),
Martin Shaw, Mias Strauss, Gerald Völkel, Mark Richards,
Johan Kok, Ian Child, Lindsay Mentor and Pieter Pienaar. Meetings
are held at least three times per annum.

The purpose of this committee is to address general business risks
applicable to the business units and corporate service departments,
credit risks, exchange rate exposure, insurable losses, interest rate
and liquidity risks as well as legislative and external risks. The
findings of this committee are reported to the audit committee.
A dedicated assets and liabilities management subcommittee,
comprising Jan Bezuidenhout and Gerald Völkel, reports to this
committee.
A risk management executive committee, comprising chain and
corporate service department executives, also reports to this
committee.
The board is confident that the fundamental processes are now in
place to ensure compliance with current and future risk
management requirements.
Risks are identified and monitored through the planning process,
the close involvement of the executive directors in the Group’s
operations and the periodic monitoring of key issues to ensure
that the significant risks faced by the Group are evaluated in terms
of impact and severity rating and appropriately managed.
Risk is not only viewed from a negative perspective. The review
process also identifies areas of opportunity, such as where effective
risk management can be turned to competitive advantage.
The attendance register of meetings is set out below.
2003 2004
Member 11 Nov 11 Feb 14 May 10 Nov
D Konar P P P P
IR Child P P P P
JHC Kok P P P P
LM Mentor A P P P
PJ Pienaar P P P P
MJ Richards P P A P
MJ Shaw P P P P
HC Strauss P P P P
G Völkel A P P P
P = Present A = Apologies
JDG Trading board
JDG Trading (Pty) Ltd is the wholly owned South African trading
company of JD Group.
Composition of board
The board of JDG Trading consists of the five executive
directors of JD Group, namely David Sussman, Mias Strauss,
5
Jan Bezuidenhout, Johan Kok and Gerald Völkel; and four senior
executives, namely Mark Richards, Athol Beeforth, Vivian Horn
and Arie Neven. Meetings are chaired by either David or Mias.
The directors are individually mandated, empowered and held
accountable for implementing the strategies and key policies
determined by the JD Group board; managing and monitoring the
business and affairs of the organisation in accordance with approved
business plans and budgets; prioritising the allocation of capital and
other resources and establishing best management and operating
practices. Structured management succession planning, for purposes
of identifying, developing and advancing of future leaders in the
Group, is an important element in the managing process.
Purpose of the board
The purpose of the board is to serve as a governance mechanism
through the process of semi-annual Group performance reporting.
Frequency of meetings
Meetings are held semi-annually to coincide with the
announcements of results and on an ad hoc basis, as required.
Management committees
Specific responsibilities have been delegated to various
management committees, all of which have defined charters
in place.
Executive committee (EXCO)
Composition of committee
The committee comprises David Sussman (chairman), Mias Strauss,
Jan Bezuidenhout, Gerald Völkel, Johan Kok, Mark Richards,
Athol Beeforth, Arie Neven, Vivian Horn, Fred Ginsberg and
Henk Greeff.
Purpose of committee
The purpose of the committee is to translate Group board
strategic direction into a Group strategic plan and to address
other items considered crucial for business success; to oversee
the strategic planning process in order to secure successful
implementation; and to monitor Group performance in
accordance with the Group strategic plan.
Agendas
The agendas include the monitoring of strategic business goals,
performance review, risk review, succession planning, business
intelligence, and establishing and monitoring Group policies
and procedures.
Frequency of meetings
Meetings are held on a monthly basis.

Corporate governance continued
Risk management executive committee (RMEC)
Composition of committee
The risk management executive committee comprises Mark Richards
(chairman), Dick Behrens, Ian Child, Johan Kok, Lindsay Mentor,
Vivian Horn, Pieter Pienaar, Mias Strauss and Gerald Völkel.
Purpose of committee
The purpose of this committee is to identify and review the risks
presented by the Group’s local and offshore operations and
corporate service departments from the Group’s perspective and
to rate them in terms of probability and impact. It reports to the
Group risk management committee and to the JDG Trading board.
Frequency of meetings
This committee meets on a quarterly basis.
Tradeco
Composition of committee
The committee comprises Johan Kok (chairman), Mark Richards,
Athol Beeforth, Arie Neven, Fred Ginsberg, Vivian Horn, Leslie van
Doesburgh, Dick Behrens, Leoni Field, Lindsay Mentor,
Rénier Krige, Melvyn Jaye and the chain chief executives.
Purpose of committee
The purpose of the committee is to translate, plan and implement
Group strategy as determined by EXCO applicable to the chains;
to monitor and track progress thereon and to ensure compliance
with policies as per predetermined and agreed performance areas.
Agendas
The agendas include deliberations on Group strategic business
goals; operations business goals, business performance
measurements; receivables and inventory management and
performance; people development and satisfaction; performance
of service departments and of suppliers in terms of service
level agreements; research and development trends internally
and externally; operations policies; and progress reviews on
Group projects and other important initiatives which may impact
on operations.
Frequency of meetings
Meetings are held on a monthly basis.
Servco
Composition of committee
The committee comprises Mias Strauss (chairman), Johan Kok,
Mark Richards, Gerald Völkel, Vivian Horn, Leslie van Doesburgh,
Ian Thompson, Ian Child, Lindsay Mentor, Dick Behrens, Pieter
Pienaar, André Maré, Clive Dicks, Leoni Field, Henk Greeff, Melvyn
Jaye and Rénier Krige.
Purpose of committee
The purpose of the committee is to translate, plan and implement
Group strategy as determined by EXCO applicable to service
departments, and to monitor and track progress thereon as per
predetermined and agreed performance milestones.
6
Agendas
The agendas include deliberations on Group strategic business
goals; service department strategic business goals; Group projects
as approved and registered at the Group projects administration
office; people development and satisfaction; performance of
service departments and of suppliers in terms of service level
agreements; research and development trends internally and
externally; progress on other important initiatives not necessarily
registered as Group projects; and risk management.
Frequency of meetings
Meetings are held on a monthly basis.
Leadership and Development Council
This committee comprises Mias Strauss (chairman), Athol Beeforth,
Henk Greeff, Johan Kok, Arie Neven, Mark Richards,
Lindsay Mentor and Rénier Krige. The committee’s charter includes
leadership development, succession management and expediting
the achievement of equity targets.
Chain and corporate service department committees
The chain chief executives, Bill Chalmers, James Gibson, Mike
Roberts, Diane Bowran, Toy de Klerk, Jannie Els, Len Rundle and
Wietske van der Westhuizen, and heads of the corporate service
departments, Dick Behrens, Ian Child, Clive Dicks, Leoni Field,
Fred Ginsberg, André Maré, Lindsay Mentor, Pieter Pienaar, Leslie
van Doesburgh and Ian Thompson act as chairmen of either chain
or corporate service department meetings held on a monthly basis.
The executive management teams of the chains and corporate
service departments, respectively, attend these meetings.
Marketing and merchandise meetings
Chain marketing and merchandise review meetings are chaired by
the marketing executives. The entire executive teams attend these
meetings together with David, Vivian and Fred. Representatives of
the chain advertising agencies also attend. The purpose of these
meetings is to determine all advertising and marketing promotions
for the next two to three months. These meetings are held on a
monthly basis.
Credit meetings
Credit meetings are chaired by Mias. The chain chief executives,
operations executives and debtors executives, together with Dick,
Johan, Athol and Arie, also attend. The purpose of these
meetings is to review all aspects of the performance of the
receivables books and related matters. These meetings are held
on a monthly basis.
Abra board
The management board of Abra in Poland carries out the same
functions as the JDG Trading board.
The supervisory board of Abra includes David Sussman (chairman),
Mias Strauss, Mark Richards, Jan Bezuidenhout and Fred Ginsberg.

Employment benefits funds
Approximately 95% of Group employees are members of a
retirement fund offered by the Group. The retirement funds are
the Alexander Forbes Retirement Fund Pension and Provident –
(JDG Trading (Pty) Ltd (“AFRF”)); The JD Group Defined Benefit
Pension Fund (Defined Benefit Fund); the SA Commercial Catering
and Allied Workers Union National Provident Fund (“SNFP”);
various small funds in Botswana, Lesotho and Swaziland and the
Social Security Fund (“SSF”) in Poland. The Group also participates
in the Profurn Pension Fund and the Profurn Provident Fund, both
of which will be absorbed into the AFRF once regulatory approval
is granted.
The AFRF is an umbrella fund, in which a number of employees
participate, and has a professional board of trustees in place.
Management committees comprising four employer appointed
and four employee elected members monitor and review the AFRF,
monitor investments and assist in the distribution of death
benefits. The employer appointed management committee
members who represent JDG Trading on the AFRF are Ivan Levy,
Jan Bezuidenhout, Lindsay Mentor and Rénier Krige.
The SNPF in an umbrella fund in which a number of employees
participate in terms of a collective bargaining arrangement with
SACCAWU. Old Mutual Employee Benefits Industry Funds Unit are
the administrators of the SNPF.
The Defined Benefit Fund employer trustees are Ivan Levy
(chairman/employer trustee), Jan Bezuidenhout (principal
officer/employer trustee), Lindsay Mentor (employer trustee)
Rénier Krige (employer trustee) and four member elected trustees.
Frequency of meetings
The AFRF and Defined Benefit Fund hold annual formal
management committee meetings with informal meetings as and
when required.
Details of the Group’s retirement funds and impact on the
financial statements are set out in note 23 of the annual financial
statements.
Employment equity and skills development
JD Group strives to create an environment in which all individuals
and teams may develop their full potential for the benefit of
themselves and the Group.
The directors acknowledge that the effective development of
employees is key to the success of the Group. The human resource
policies include a broad framework of corporate values and are
driven by the need to ensure effective utilisation of and
investment in human resources. Merit and competence are the
key criteria for advancement in the Group. Acknowledging the
diversity of cultures in the employee complement, the Group
continually seeks to redress historical imbalances so that all
employees can compete on equal terms. The Group applies
policies that do not discriminate on grounds of race, age,
disability, gender or religion and which provide good opportunities
for previously disadvantaged sections of the community.
7
The Group recognises the rights of employees regarding freedom
of expression and freedom of association and representation. The
Group affirms that employees have the right to choose to
participate in organised labour structures and collective
bargaining. Where possible, employee participation in problem
solving and decision making is encouraged.
Training and career development are important elements of
JD Group’s business philosophy and success. In a challenging
environment, strong leadership is required to guide a successful
business. The Group puts a high priority on developing the next
generation of business leaders and continues to explore new
ways to foster a progressive workplace that attracts and inspires
employees of the required calibre.
The Group actively pursues people development in order to
influence, support and grow operational efficiency and
performance. Training and development of all employees is a nonnegotiable
core principle of the Group.
In April 2003, the JD Group Learning Academy (JDLA) was
established at the previous Morkels head office in Hillfox,
Roodepoort. The JDLA has hosted almost 8 000 delegates since
inception. Although the JDLA is the primary venue for behavioural
skills development, the chains run their own regional training
centres. Technical and retail specific skills development are catered
for at business unit level.
Structured development includes Basic, Retail, Advanced and
Executive Development Programmes. During the period the Group
conducted 9 500 employee development interventions in
compliance with the workplace skills plan administered by the
Wholesale and Retail Education Sector Authority.
Stakeholders’ communication
The board is aware of the importance of balanced and
understandable communication of the Group’s activities to
stakeholders and strives to clearly present any matters material
to a proper appreciation of the Group’s position. The interests
and concerns of stakeholders are addressed by communicating
information as it becomes known.
The directors foster a mutual understanding of objectives shared
between the Group and its institutional shareholders by meeting
with and making presentations to them on a regular basis. The
board welcomes the attendance of private shareholders at the
annual general meetingand other general meetings, which
provides them with the opportunity to address questions. At last
year’s annual general meeting, all resolutions were passed on a
show of hands. The level of proxies lodged on each resolution was
announced at the meetings.
The Group adopts a proactive stance in timely dissemination of
appropriate information to stakeholders through print and
electronic news releases and the statutory publication of the
Group’s financial performance.

Corporate governance continued
Financial control and reporting
The directors are responsible for ensuring that Group companies
maintain adequate records, and for reporting on the financial
position of the Group and the results of the activities with
accuracy and reliability. Financial reporting procedures are applied
in the Group at all levels to meet this responsibility. Financial and
other information is constantly reviewed and remedial action
taken, where necessary.
Improvements to the quality of reported information are continually
effected by means of replacing or upgrading information systems.
The Group’s financial statements are prepared in accordance with
South African Statements of Generally Accepted Accounting
Practice and International Financial Reporting Standards as well as
the consistent use of appropriate accounting policies, unless an
accounting policy requires revision or adoption of new accounting
standards, in which case proper disclosure will be made,
supported by reasonable and prudent judgements and estimates,
in order to properly disclose the Group’s financial status.
Internal control and internal audit
The board has overall responsibility for ensuring that the Group
maintains a system of internal financial control to provide it with
reasonable, but not absolute, assurance regarding the reliability of
the financial information used within the business and for
publication, and to ensure that assets are safeguarded.
The key features of the internal control systems that operated
throughout the year under review are described hereunder.
Control environment
A documented organisational structure with clearly defined lines
of responsibility and delegation of authority from the board to the
chains and corporate service departments is in place. The board
has established policies and procedures, including a levels of
authority document and a code of conduct, to foster a strong
ethical climate.
Financial monitoring systems
The Group operates a comprehensive annual planning and
budgeting process. The annual budget is approved by the board.
The financial reporting system compares results with plans,
budgets and the previous year and is able to identify deviations on
a daily and monthly basis. Reports include regular cash flow
statements, income statements and balance sheets projected for
12 months, which are used in determining future funding needs.
Main control procedures
The directors have adopted a schedule of matters which are
required to be brought to it for decision, thus ensuring that it
maintains full and effective control over appropriate strategic,
financial, organisational and compliance issues. The board has
identified a number of key areas which include treasury, legislative
requirements, information technology, strategic business goals
and other matters which are subject to regular reporting. Financial
controls and procedures are in place, including procedures for
seeking and obtaining approval for major transactions and
8
organisational changes. Organisational controls involving the
segregation of incompatible duties and controls relating to the
security of assets are also covered.
The board regularly reviews the operations and effectiveness of
internal financial control. The board considers that there have
been no weaknesses which have led to any material losses or
contingencies during this financial year.
Internal control
The directors accept responsibility for maintaining appropriate
internal control systems to ensure that the Group’s assets are
safeguarded and managed, and losses arising from fraud or other
illegal acts are minimised. Control systems are monitored and
improved in accordance with generally accepted best practice.
Internal audit
Internal audit is an independent, objective assurance and
consulting function designed to add value to and improve the
Group’s operations. It helps the Group accomplish its objectives
by bringing a systematic, disciplined approach to evaluate and
improve the effectiveness of risk management, control and
compliance processes. It provides:
assurance that the management processes are adequate to
identify and monitor significant risks;
confirmation of the adequacy and effective operation of the
established internal control systems;
credible processes for feedback on risk management and
assurance; and
objective confirmation that the board receives assurance from
management that information is reliable.
The purpose, authority and responsibility of the internal audit
activity are formally defined in an internal audit charter, which is
approved by the board, and which is consistent with the Institute
of Internal Auditors’ definition of internal auditing.
The activities of the internal auditors are co-ordinated by the
Group internal audit executive, with unrestricted access to the
audit committee chairman and its members.
Internal audit co-ordinates with the external auditors to ensure
proper coverage and to minimise duplication of effort. The
external auditors also review reports issued by internal audit.
Audit plans for each chain are tabled annually to take account of
changing business needs. Follow up audits are conducted in areas
where weaknesses are identified.
The internal audit plan, approved by the audit committee, is based
on risk assessments, which are of a continuous nature so as to
identify not only existing and residual risks, but also emerging
risks, as well as issues highlighted by the audit committee and risk
management committee. Internal audits are conducted formally
at each chain workplace and corporate service department on
aregular basis.

Fraud and illegal acts
JD Group does not engage in or accept or condone the engaging in
of any illegal acts in the conduct of its business. The directors’ policy
is to actively pursue and prosecute the perpetrators of fraudulent or
other illegal activities, should they become aware of any such acts.
Black economic empowerment (“BEE”)
The Group actively participates in initiatives directed at the
empowerment of previously disadvantaged groups in the South
African community.
JD Group is fully cognisant of the Black Economic Empowerment
Act, 2003 and further awaits the regulations augmenting the Act
which are due to be published in the short term. To this end the
Group has actively engaged an external service provider to
interrogate the best of breed strategies in the market place and to
make formal recommendations with regard to the Group’s
approach to BEE.
Insider trading
No employee may deal, directly or indirectly, in JD Group shares on
the basis of unpublished price sensitive information regarding
the business or affairs of the Group. No director or executive
who participates in the JD Group share incentive schemes may
trade in JD Group shares during closed periods as defined in
the JSE Securities Exchange South Africa Listing Requirements.
Going concern
The directors report that, after making enquiries, they have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future. For
this reason, the Group continues to adopt the going concern basis
in preparing the annual financial statements.
Accountability review
Performance measures are reported in accordance with triple
bottom line methodology in economic, environmental and social
categories. Social responsibility initiatives are discussed in detail on
page 23 of book 2.
Economic impacts
Corporate objective
To be a desired investment by all investors as a result of above
average performance and consistent growth.
The cornerstone of our business is to satisfy the consumer in the
pursuit of consistent, acceptable profit growth. We create wealth
for the benefit of all stakeholders. Our international expansion is
intended to continue in Poland. The Abra business is now one of
the largest furniture retailers in Poland. Revenues are increasing
and levels of customer satisfaction remain high. Employee
numbers continue to grow.
JD companies spent R6,4 billion during the year on inventory
purchases and services from suppliers. Our merchandise
executives are focused on securing cost effective sourcing that
guarantees consistent quality and service. Our first concern in
supplier relationships is to meet legal and contractual obligations,
9
acknowledging that for many suppliers, their greatest need is to
be paid on time. Each chain and corporate service department
agrees fair payment terms and strives to meet them.
JD Group places the highest priority on maintaining constructive
relationships with governments at local and national levels and
with regulatory agencies.
Chains and corporate service departments must comply with all
laws and seek constructive engagements with public authorities
where necessary. As part of the accountability process, each chain
and corporate service department is required to report all
incidences of prosecutions or fines, major ongoing disputes and
any formal investigations.
Environmental impacts
Corporate objective
To manage the environmental impacts of our activities by
complying with all relevant safety, health and environmental
legislation and by enhancing awareness amongst our employees.
In relation to the environment, the Group aims at all times to
comply with all relevant legal obligations and regulations
concerning the environment and to adopt an all encompassing
approach to environmental protection measures with the object of
achieving continuous improvements.
The Group strives to keep waste materials to a minimum and to
reduce, recycle and, where necessary, dispose of waste by the
safest and most responsible means available to reduce
environmental impact.
The Group’s entire delivery fleet uses unleaded fuel to reduce the
emission of carbon dioxide. Daily vehicle inspections are
undertaken to ensure that fuel and oil leakages are kept to a
minimum. Where deliveries are outsourced, our service providers
have to comply with strict criteria in terms of minimising fuel and
oil wastage.
The need for minimising water and electricity consumption is
actively encouraged at all workplaces.
The Group’s internal audit department examines compliance with
key features of existing environmental, health and safety
legislation and reviews performance against agreed targets.
The Braamfontein Regeneration Project is a key factor in driving
inner city growth and renewal in Johannesburg. JD Group whose
corporate head office is situated in Braamfontein, together with
other major corporates, has been an integral part of this process,
as evidenced by its investment in purchasing JD House,
refurbishments thereto and the building of a parkade. It is an
active participant in the corporate precinct public environment
upgrade, which will not only benefit some 800 corporate office
employees, business partners, associates and visitors but also the
community at large. JD Group has made a financial contribution
towards the capital costs of the regeneration of Braamfontein and
also contributes towards operating costs.

Ten year review
10
12 months
31 August 31 August †
31 August
2004 2003 2002
Share performance
Total shares in issue 000 172 000 166 830 112 730
Weighted average number of shares in issue 000 166 930 133 196 112 070
Headline earnings per share cents 522,0 340,5 226,5
Cash equivalent dividends per share cents 240,0 110,0 56.0
Dividend cover times 2,0 3,1 3,8
Net asset value per share cents 2 330,1 2 033,0 1 715,1
Profitability, liquidity and gearing
Revenue Rm 9 056 5 966 4 083
Operating income Rm 1 265 747 467
Income before finance costs Rm 1 289 762 478
Income attributable to shareholders Rm 790 449 241
Closing shareholders’ equity Rm 4 008 3 392 1 933
Average shareholders’ equity Rm 3 700 2 663 1 922
Net interest bearing debt Rm (19) 894 1 048
Average total assets less non-interest bearing debt Rm 5 348 4 224 3 557
Total assets Rm 7 739 7 185 4 243
Operating margin % 14,0 12,5 11,4
Income attributable to shareholders on revenue % 8,7 7,5 5,9
Return on closing shareholders’ equity % 19,7 13,2 12,5
Return on average shareholders’ equity % 21,4 16,9 12,5
Return on assets managed % 24,1 18,1 13,4
Interest cover times 8,9 4,9 2,7
Gearing ratio % – 26,3 54,2
Current ratio : 1 3,2 2,6 4,0
Shareholders’ equity to total assets % 51,8 47,2 45,6
Productivity
Number of stores 952 978 695
Revenue per store R000 9 513 6 100 5 875
Number of employees 16 167 15 738 10 064
Revenue per employee R000 560 379 406
Stock exchange performance
Closing share price cents 4 550 3 161 1 675
Number of shares traded 000 137 612 73 828 56 740
Value of shares traded Rm 5 552 1 716 1 466
Volume traded as % of issued shares
Market value per share
% 80,0 44,3 50,3
– high cents 4 690 3 180 4 060
– low cents 2 950 1 440 1 300
All ratios have been calculated using amounts in rand as opposed to Rm.
The comparative figures have not been restated for the change in accounting policy on the adoption of IAS 39 from the 2002 financial year.
† Profurn acquired chains were only included for five months

14 months 12 months
31 August 31 August 30 June 30 June 30 June 30 June 30 June
2001 2000 1999 1998 1997 1996 1995
112 609 111 651 110 350 108 245 106 525 104 476 102 766
111 484 110 322 108 935 106 265 104 336 102 483 101 203
353,2 301,8 243,0 185,7 137,7 119,1 86,1
94,0 78,0 65,0 62,0 51,0 43,0 33,0
2,6 3,9 3,7 3,0 2,7 2,8 2,7
1 695,9 1 531,5 1 305,0 1 085,0 917,2 799,1 699,0
3 788 3 928 3 016 2 896 2 726 2 479 2 205
657 565 407 387 323 296 226
665 572 407 387 323 296 226
275 335 265 199 147 124 90
1 910 1 710 1 439 1 174 977 835 718
1 810 1 575 1 307 1 076 906 777 679
802 709 457 412 393 492 580
3 241 2 509 2 058 1 796 1 642 1 551 1 382
4 529 3 499 2 719 2 485 2 225 2 188 1 996
17,3 14,4 13,5 13,4 11,9 11,9 10,2
7,3 8,5 8,8 6,9 5,4 5,0 4,1
14,4 19,6 18,4 17,0 15,0 14,8 12,5
15,2 21,3 20,3 18,5 16,2 16,0 13,2
20,5 22,8 19,8 21,6 19,7 19,1 16,3
6,6 6,5 5,5 6,1 3,9 3,3 3,1
42,0 41,5 31,7 35,1 40,2 58,9 80,7
4,1 4,8 5,0 4,2 3,8 3,4 3,6
42,2 48,9 53,0 47,3 43,9 38,1 36,0
684 671 678 628 558 547 523
5 538 5 855 4 449 4 612 4 886 4 533 4 216
9 984 9 704 9 613 9 732 9 808 9 669 9 806
379 405 314 298 278 256 225
4 050 4 860 3 690 3 990 2 800 2 350 1 450
53 420 69 142 41 561 31 172 18 251 13 887 9 565
2 107 3 021 1 349 1 202 454 283 134
47,4 61,9 37,7 28,8 17,1 13,3 13,3
4 905 5 500 4 400 5 480 3 025 2 550 1 600
2 990 3 100 1 650 2 800 2 050 1 375 1 125
11

Ten year review continued
12
12 months
31 August 31 August †
31 August
2004 2003 2002
Income statements
Revenue 9 056 5 966 4 083
Cost of sales 4 148 2 613 1 657
Operating income 1 265 747 467
Investment income 24 15 11
Income before finance costs 1 289 762 478
Finance costs – net 145 154 179
Income before exceptional item 1 144 608 299
Exceptional item: loss on discontinuance – – –
Income before taxation 1 144 608 299
Taxation 354 160 60
Income after taxation 790 448 239
Attributable to outside shareholders – 1 2
Income attributable to shareholders 790 449 241
Balance sheets
Assets
Non-current assets 645 1 026 345
Property, plant and equipment 210 210 144
Goodwill – 42 54
Trademark 165 315 –
Investments and loans 110 146 110
Deferred taxation 160 313 37
Current assets 7 094 6 159 3 898
Inventories 784 739 427
Trade and other receivables 4 871 4 860 3 231
Financial assets 34 36 13
Taxation 77 80 5
Bank balances and cash 1 328 444 222
Total assets
Equity and liabilities
Equity and reserves
7 739 7 185 4 243
Share capital and premium 1 903 1 778 782
Treasury shares (88) (39) (22)
Non-distributable reserve 137 127 24
Retained income 1 803 1 415 1 124
Shareholders for dividend 253 111 25
Shareholders’ equity 4 008 3 392 1 933
Outside shareholders’ interest – – 21
Non-current liabilities 1 487 1 412 1 310
Interest bearing long term liabilities 947 831 1 049
Deferred taxation 540 581 261
Current liabilities 2 244 2 381 979
Trade and other payables 1 787 1 801 745
Interest bearing liabilities 362 506 219
Financial liabilities 8 9 11
Taxation 87 64 2
Bank overdrafts – 1 2
Total equity and liabilities 7 739 7 185 4 243
† Profurn acquired chains were only included for five months

14 months 12 months
31 August 31 August 30 June 30 June 30 June 30 June 30 June
2001 2000 1999 1998 1997 1996 1995
3 788 3 928 3 016 2 896 2 726 2 479 2 205
1 530 1 541 1 198 1 170 1 170 1 102 972
657 565 407 387 323 296 226
8 7 – – – – –
665 572 407 387 323 296 226
101 88 74 63 83 89 72
564 484 333 324 240 207 154
167 – – – – – –
397 484 333 324 240 207 154
123 149 68 125 93 83 64
274 335 265 199 147 124 90
1 – – – – – –
275 335 265 199 147 124 90
259 211 105 96 120 151 175
127 109 104 96 98 105 104
6 – – – 22 46 71
– – – – – – –
110 102 1 – – – –
16 – – – – – –
4 270 3 288 2 614 2 389 2 105 2 037 1 821
359 354 341 309 310 280 261
3 255 2 884 2 242 2 035 1 761 1 708 1 520
– – – – – – –
1 9 1 10 – 10 5
655 41 30 35 34 39 35
4 529 3 499 2 719 2 485 2 225 2 188 1 996
781 762 727 666 608 563 530
(22) (22) (2) (3) (4) (4) (4)
4 – – – – – –
1 105 935 686 483 351 258 179
42 35 28 28 22 18 13
1 910 1 710 1 439 1 174 977 835 718
(1) – – – – – –
1 577 1 106 760 736 692 760 767
1 261 750 485 443 420 519 606
316 356 275 293 272 241 161
1 043 683 520 575 556 593 511
722 679 470 508 498 581 502
192 – 2 4 7 12 9
– – – – – – –
125 4 48 63 51 – –
4 – – – – – –
4 529 3 499 2 719 2 485 2 225 2 188 1 996
13

Directors’ approval of the annual financial statements
Responsibility for the annual financial statements
The directors are responsible for the preparation, integrity and
objectivity of annual financial statements that fairly present the
state of affairs of the Group at the end of the financial year, the
income and cash flow for that period and other information
contained in this annual report.
To enable the directors to meet these responsibilities:
the board and management set standards and management
implements systems of internal control, accounting and
information systems aimed at providing reasonable assurance
that assets are safeguarded and the risks of error, fraud or loss
are reduced in a cost effective manner. These controls,
contained in established policies and procedures, include the
proper delegation of responsibilities and authorities within a
clearly defined framework, effective accounting procedures
and adequate segregation of duties;
the Group’s internal audit function, which operates
independently and unhindered and has unrestricted access to
the audit committee, appraises, evaluates and, when
necessary, recommends improvements in the systems of
internal control and accounting practices, based on audit plans
which take cognisance of the relative degrees of risk
of each function or aspect of the business; and
the audit committee, together with the independent and
internal auditors, play an integral role in assessing matters
relating to financial internal control, accounting policies,
reporting and disclosure.
To the best of their knowledge and belief, based on the above, the
directors are satisfied that no material breakdown in the operation
14
of the systems of internal control and procedures has occurred
during the year under review.
The Group consistently adopts appropriate and recognised
accounting policies.
The annual financial statements have been prepared in
accordance with the provisions of the South African Companies
Act and comply with South African Statements of Generally
Accepted Accounting Practice and International Financial
Reporting Standards.
The directors are of the opinion that the business will be a going
concern for the foreseeable future, and accordingly, the annual
financial statements continue to be prepared on a going concern
basis.
It is the responsibility of the independent auditors to express an
opinion on the annual financial statements. Their report to the
members of the Company is set out on page 15.
Approval of the annual financial statements
The directors’ report and the annual financial statements, which
appear on pages 16 to 65, were approved by the board of
directors on 25 November 2004 and are signed by
ID Sussman G Völkel
Executive chairman Financial director

To the members of JD Group Limited
We have audited the annual financial statements and Group
annual financial statements of JD Group Limited set out on
pages 16 to 65 for the year ended 31 August 2004. These annual
financial statements are the responsibility of the Company’s
directors. Our responsibility is to express an opinion on
these annual financial statements based on our audit.
Scope
We conducted our audit in accordance with Statements of South
African Auditing Standards. Those standards require that we plan
and perform the audit to obtain reasonable assurance that the
annual financial statements are free of material misstatement.
An audit includes:
examining, on a test basis, evidence supporting the amounts
and disclosures in the annual financial statements;
assessing the accounting principles used and significant
estimates made by management; and
evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our
opinion.
In terms of Section 268G(d) of the Companies Act, 61 of 1973, as
amended, I certify that, to the best of my knowledge and belief,
the Company has lodged with the Registrar of Companies for the
financial year ended 31 August 2004 all such returns as are
required of a public company in terms of the Companies Act and
that all such returns are true, correct and up to date.
MI Jaye CA(SA)
Company secretary
25 November 2004
15
Audit opinion
In our opinion, the annual financial statements and the Group
annual financial statements fairly present, in all material respects,
the financial position of the Company and the Group at
31 August 2004 and the results of their operations and the cash
flows for the year then ended in accordance with South African
Statements of Generally Accepted Accounting Practice and
International Financial Reporting Standards, and in the manner
required by the Companies Act in South Africa.
Deloitte & Touche
Chartered Accountants (SA)
Registered Accountants and Auditors
Johannesburg
25 November 2004
Report of the independent auditors
Certificate by company secretary

Directors’ report
Your directors have pleasure in submitting their report on the
affairs of the Company and the Group for the year ended
31 August 2004.
Nature of business
The Group carries on the business of furniture and appliance retail
as well as the provision of financial services.
Disposal and closure of BoConcept
In June we sold the master licence for “BoConcept UK”, three
stores and the contracts division back to the Danish parent
company. In addition, we assigned another two leases and put the
balance of the business, which was in effect three remaining
leases, into voluntary liquidation on 29 October 2004. This has
resulted in a loss on disposal and closure of R49,9 million which
has been charged to the income statement.
Closure of Profurn legacy stores
A total of 19 stores were closed in the BLNS countries at a cost of
R34 million. The Group is in the process of disposing of all seven
stores in Mozambique. These principally represent Profurn legacy
stores that were highlighted in the prior year’s segmental analysis
as operations to be integrated, disposed of or discontinued.
Results of operations
The Group’s income statement and segmental analysis sets out the
results of operations.
Corporate governance
During the period under review, the directors have complied with
all aspects of the Code of Corporate Practices and Conduct (“the
Code”) as set out in King II which are applicable to the Group’s
activities.
The Group is totally committed to the principles of transparency,
integrity and accountability as set out in the Code and the directors
are fully cognisant of the need to conduct the Group’s business in
accordance with generally accepted corporate practices, having
due regard for the rights of their employees, suppliers, lenders,
customers, the environment and community at large.
The Group has documented, implemented and tested a disaster
recovery plan and this will be maintained into the future.
16
Independent auditors
The independent auditors, Deloitte & Touche, have been reappointed
during the year. All non-audit services provided by
Deloitte & Touche are tabled and approved by the audit committee.
The non-audit services in the current year primarily related to
taxation consulting services.
Share capital
The Company’s authorised share capital remained unchanged.
The Company’s issued share capital was increased during the year
as follows:
Number Value
of shares R
Ordinary shares of 5 cents each
Balance at 15 September 2003
Issued to The JD Group
Employee Share Incentive
Scheme
166 830 000 8 341 500
– on 8 December 2003 2 170 000 108 500
– on 17 May 2004 3 000 000 150 000
Balance at 15 September 2004 172 000 000 8 600 000
A maximum of ten million of the remaining unissued shares have
been placed under the control of the directors of the Company
until the forthcoming annual general meeting.
Share premium
Additional share premium of R124 million (2003: R994 million)
arose on the issue of 5 170 000 (2003: 54 100 000) shares net of
issue expenses amounting to R404 274 (2003: R202 734).
Share incentive trusts
25 800 000 (2003: 21 936 828) ordinary shares of 5 cents each
have been placed under the control of the directors of the
Company with the power to allot and issue them in accordance
with the terms of The JD Group Employee Share Incentive
Scheme. Refer note 15 and page 60.

Subsidiary companies
Details of the Company’s subsidiaries are set out on page 64.
The Company’s interest in the aggregate profits and losses after
taxation of subsidiaries are as follows:
2004 2003
Rm Rm
Profits 916 496
Losses 246 130
Distribution to shareholders
A final dividend of 150 cents (2003: 68 cents) per share was
proposed and an interim dividend of 90 cents (2003: 42 cents)
per share was declared and paid to shareholders.
Management of business by a company
The Company is managed in terms of an agreement with Sustein
Management (Pty) Ltd, a company owned and controlled directly
and indirectly by the executive directors of the Company and
four directors of JDG Trading (Pty) Ltd.
Directors
JHC Kok was appointed as a director on 1 March 2004.
In terms of the articles of association, IS Levy, M Lock, MJ Shaw
and JHC Kok retire at the forthcoming annual general meeting
and, being eligible, offer themselves for re-election.
17
The aggregate beneficial interest of directors in the issued share
capital and options of the Company is as follows:
Number of shares
2004 2003
Direct 7 081 852 3 930 000
Indirect 757 812 2 439 812
Total 7 839 664 6 369 812
There are no non-beneficial interests.
Mr ID Sussman is the only director who directly and indirectly has
more than a 1% interest in the share capital.
There has been no material change in the interests recorded above
since the year end date.
Significant shareholders
Details of significant shareholders are included on page 66.
Special resolutions
No special resolutions were passed during the year under review.
Subsequent events
Subsequent to the financial year end the Group placed the
balance of the BoConcept business into voluntary liquidation,
terminated the Alliance with Nedcor and acquired a stake in Blake
& Associates Holdings (Pty) Ltd. These three events are addressed
in more detail in note 26.

Directors’ remuneration
This report on remuneration and related matters covers
issues which are the concern of the board as a whole
in addition to those which were dealt with by the
remuneration committee.
Remuneration policy
The remuneration committee has a clearly defined mandate
from the board aimed at:
ensuring that the Group’s chairman, directors and senior
executives are fairly rewarded for their individual
contributions to the Group’s overall performance; and
18
ensuring that the Group’s remuneration strategies and
packages, including the remuneration schemes,
are related to performance, are suitably competitive and
give due regard to the interests of the shareholders and
the financial and commercial health of the Group.
Directors’ service contracts
All executive directors’ normal contracts are subject to
12 calendar months’ notice. Non-executive directors are
not bound by service contracts.
Basic salary
Fees for
services Allowances*
R R R
2004
Executive directors
I D Sussman 2 084 363 302 694
H C Strauss 1 653 899 262 886
J L Bezuidenhout 936 993 203 826
J H C Kok (appointed 1 March 2004) 946 982 181 826
G Völkel 1 007 645 178 826
Non-executive directors
M E King 170 000
D Konar 170 000
I S Levy 170 000
M Lock 67 500
M J Shaw 125 000
2003
Executive directors
I D Sussman 1 976 942 302 866
H C Strauss 1 503 080 263 500
J L Bezuidenhout 768 250 209 221
N W E Thomson (retired 17 February 2003) 215 122 110 034
G Völkel 875 966 199 034
Non-executive directors
M E King 130 000
D Konar 130 000
I S Levy 130 000
M Lock 60 000
M J Shaw 100 000
* Travel, entertainment and subsistence allowances

Retirement Medical Cash Share scheme
contributions contributions package Bonuses Sub-total gains Total
R R R R R R R
491 740 31 620 2 910 417 2 411 025 5 321 442 9 224 334 14 545 776
303 879 54 335 2 274 999 1 607 350 3 882 349 4 097 180 7 979 529
130 491 53 689 1 324 999 848 170 2 173 169 2 038 860 4 212 029
208 054 29 804 1 366 666 848 170 2 214 836 1 719 720 3 934 556
156 551 23 644 1 366 666 848 170 2 214 836 418 740 2 633 576
19
15 806 632
170 000 170 000 170 000
170 000 170 000 170 000
170 000 170 000 170 000
67 500 67 500 67 500
125 000 125 000 125 000
702 500
429 294 26 400 2 735 502 1 241 354 3 976 856 3 976 856
246 595 40 692 2 053 867 784 628 2 838 495 2 838 495
117 044 42 540 1 137 055 427 417 1 564 472 1 564 472
75 256 19 422 419 834 397 474 817 308 817 308
129 270 20 988 1 225 258 2 427 417 3 652 675 3 652 675
12 849 806
130 000 130 000 130 000
130 000 130 000 130 000
130 000 130 000 130 000
60 000 60 000 60 000
100 000 100 000 100 000
550 000

Directors’ remuneration continued
Directors’ share options
The following options and rights in shares in the Company were outstanding in favour of directors of the Company under the
Company’s share option schemes at the year end and 22 November 2004, the date on which the financial results were published.
20
Options
held at Exercise
Offer date year end price
R
2004
Executive directors
IDSussman 24/06/1996 83 852 18,79
04/10/1999 137 956 34,18 a
25/05/2000 1 000 000 29,84
20/02/2003 500 000 16,19
19/05/2004 500 000 35,10
2 221 808
HCStrauss 04/10/1999 100 000 34,18 a
25/05/2000 700 000 29,84
20/02/2003 300 000 16,19
19/05/2004 300 000 35,10
1 400 000
JLBezuidenhout 04/10/1999 100 000 34,18 a
25/05/2000 500 000 29,84
20/02/2003 210 000 16,19
19/05/2004 200 000 35,10
1 010 000
J H C Kok (appointed 1 March 2004) 02/09/1998 8 000 14,03
04/10/1999 8 000 29,07
04/10/1999 100 000 34,18 a
25/05/2000 350 000 29,84
20/02/2003 210 000 16,19
19/05/2004 200 000 35,10
876 000
G Völkel 05/11/1997 30 000 27,63
02/09/1998 24 000 14,03
04/10/1999 20 000 29,07
04/10/1999 70 000 34,18 a
25/05/2000 350 000 29,84
20/02/2003 210 000 16,19
19/05/2004 200 000 35,10
904 000
Non-executive directors
MEKing 02/05/2001 200 000 27,20
D Konar 02/05/2001 200 000 27,20
ISLevy 02/05/2001 200 000 27,20
M Lock 02/05/2001 200 000 27,20
MJShaw 30/07/2001 200 000 29,62
Share options may be exercised in lots of 25% after 2 years from the offer date and 25% every year thereafter.
a = Options granted by The JD Group Limited Share Incentive Trust which are exercisable 20% after 3 years, 20% after 4 years and the remainder after 5 years from the offer date.

Options Sale/ Sale/
exercised Date Exercise Exercise market market
during year exercised price cost price value Gain
R R R R R
156 148 18 – 20/02/2004 18,79 2 934 021 41 86 6 536 355 3 602 334
200 000 18 – 20/02/2004 14,03 2 806 000 42,14 8 428 000 5 622 000
356 148 5 740 021 14 964 355 9 224 334
50 000 17 – 18/02/2004 18,79 939 500 42,14 2 107 000 1 167 500
104 000 17 – 18/02/2004 14,03 1 459 120 42,20 4 388 800 2 929 680
154 000 2 398 620 6 495 800 4 097 180
30 000 12/02/2004 18,79 563 700 42,00 1 260 000 696 300
48 000 12/02/2004 14,03 673 440 42,00 2 016 000 1 342 560
78 000 1 237 140 3 276 000 2 038 860
22 000 16/02/2004 18,79 413 380 42,20 928 400 515 020
10 000 16/02/2004 27,63 276 300 42,20 422 000 145 700
32 000 16/02/2004 14,03 448 960 42,20 1 350 400 901 440
12 000 16/02/2004 29,07 348 840 42,20 506 400 157 560
76 000 1 487 480 3 207 200 1 719 720
12 000 02/08/2004 18,79 225 480 45,00 540 000 314 520
6 000 02/08/2004 27,63 165 780 45,00 270 000 104 220
18 000 391 260 810 000 418 740
21

Directors’ remuneration continued
Options
held at Exercise
Offer date year end price
R
2003
Executive directors
IDSussman 24/06/1996 240 000 18,79
02/09/1998 200 000 14,03
04/10/1999 137 956 34,18 a
25/05/2000 1 000 000 29,84
20/02/2003 500 000 16,19
HCStrauss 24/06/1996
2 077 956
50 000 18,79
02/09/1998 104 000 14,03
04/10/1999 100 000 34,18 a
25/05/2000 700 000 29,84
20/02/2003 300 000 16,19
JLBezuidenhout 24/06/1996
1 254 000
30 000 18,79
02/09/1998 48 000 14,03
04/10/1999 100 000 34,18 a
25/05/2000 500 000 29,84
20/02/2003 210 000 16,19
N W E Thomson (retired 17 February 2003) 24/06/1996
888 000
30 000 18,79
02/09/1998 36 000 14,03
04/10/1999 40 000 34,18 a
25/05/2000 200 000 29,84
G Völkel 24/06/1996
306 000
12 000 18,79
20/08/1997 6 000 27,63
05/11/1997 30 000 27,63
02/09/1998 24 000 14,03
04/10/1999 20 000 29,07
04/10/1999 70 000 34,18 a
25/05/2000 350 000 29,84
20/02/2003 210 000 16,19
722 000
Non-executive directors
MEKing 02/05/2001 200 000 27,20
D Konar 02/05/2001 200 000 27,20
ISLevy 02/05/2001 200 000 27,20
M Lock 02/05/2001 200 000 27,20
MJShaw 30/07/2001 200 000 29,62
Share options may be exercised in lots of 25% after 2 years from the offer date and 25% every year thereafter.
a = Options granted by The JD Group Limited Share Incentive Trust which are exercisable 20% after 3 years, 20% after 4 years and the remainder after 5 years from the offer date.
Directors’ direct and indirect interest in shares of the Company
at the year end and 22 November 2004, the date on which the financial results were published.
2004 2003
IDSussman 200 000 200 000
HCStrauss 100 000 100 000
JLBezuidenhout 100 000 100 000
G Völkel 23 000 23 000
MEKing 2 428 2 428
ISLevy 2 428 2 428
22
427 856 427 856

Options Sale/ Sale/
exercised Date Exercise Exercise market market
during year exercised price cost price value Gain
R R R R R
23

Definitions
Revenue
Revenue comprises net invoiced value of merchandise sold
excluding value added tax, net finance charges earned and
income generated from financial and other services.
Cost of sales
Cost of sales comprises costs of purchase and other costs incurred
in bringing the inventories to their present location and condition.
Operating margin
Operating income divided by revenue.
Interest cover
Operating and investment income divided by net finance costs.
Earnings per share
Income after taxation divided by weighted average number of
shares in issue, excluding treasury shares.
Headline earnings per share
Income after taxation adjusted for exceptional losses on
discontinuance, surpluses or losses on disposal of property, plant
and equipment and goodwill amortised divided by weighted
average number of shares in issue, excluding treasury shares.
Diluted earnings and headline earnings per share
As for earnings and headline earnings per share after including
the dilutive impact of share options in respect of unissued shares
granted to employees in the weighted average number of shares
in issue.
24
Dividend cover
Earnings per share divided by cash equivalent dividends per share.
Return on closing shareholders’ equity
Income after taxation divided by shareholders’ equity at year end.
Return on average shareholders’ equity
Income after taxation divided by average shareholders’ equity.
Return on assets managed
Operating and investment income divided by average total assets
(excluding deferred taxation) less average non-interest bearing debt.
Net asset value per share
Shareholders’ funds divided by number of shares in issue.
Gearing ratio
Interest bearing debt less cash resources divided by shareholders’
equity.
Current ratio
Current assets divided by current liabilities.

Basis of accounting
The annual financial statements are prepared on the historical cost
basis, except for certain financial instruments carried at fair value,
and are in accordance with South African Statements of Generally
Accepted Accounting Practice and International Financial Reporting
Standards, and incorporate the following principal accounting
policies, which are consistent in all material respects with those of the
previous year, except for that relating to the consolidation of share
incentive trusts which is explained in detail later in these policies.
The annual financial statements are presented in South African
rand since this is the currency in which the majority of the Group’s
transactions are denominated.
Consistent with prior financial reporting periods the trading cycle
ends on the 15th of each following month. The financial year ends
on 15 September.
Basis of consolidation
The Group financial statements incorporate the financial
statements of the Company and its subsidiaries. Subsidiaries are
those entities over whose financial and operating policies the
Group has the power to exercise control, so as to obtain benefits
from their activities.
On acquisition, the assets and liabilities of the subsidiaries are
measured at fair value. The results of subsidiaries are included
from the effective dates of acquisition and up to the effective
dates of disposal. All intercompany transactions and balances are
eliminated on consolidation.
The accounting policies and year ends of all consolidated
subsidiaries are consistent throughout the Group. The
consolidation of Abra SA for the year ended 31 August 2004 is
based on audited results and for BoConcept unaudited
management account information was used.
The assets and liabilities of foreign subsidiaries are translated into
rand at rates of exchange ruling at the year end. The results of
their operations are translated at an appropriate weighted average
rate of exchange for the year.
Subsidiaries acquired with the intention of disposal in the
foreseable future are not consolidated.
Goodwill
Goodwill arising on consolidation represents the excess of the cost
of acquisition over the Group’s interest in the fair value of the
25
Accounting policies
identifiable assets and liabilities of a subsidiary, associate or jointly
controlled entity at the date of acquisition. Goodwill is capitalised
and amortised on a straight line basis over its estimated useful life,
not exceeding 20 years, and is assessed for impairment. Goodwill
arising on acquisitions by foreign entities is treated as assets and
liabilities of the foreign entity and translated into rand at rates of
exchange ruling at the reporting date.
Intangibles
Intangibles are stated at cost if acquired separately or at fair value
at the date of acquisition in a business combination. The fair value
is limited to the extent of positive goodwill existing after the
allocation of the purchase consideration to the net tangible assets.
Intangibles are amortised on a straight line basis over their
estimated useful lives.
Taxation
The charge for taxation is based on the results for the year as
adjusted for items which are non-assessable or disallowed.
Deferred taxation is accounted for using the balance sheet liability
method in respect of temporary differences. Temporary differences
arise from differences between the carrying amount of assets
and liabilities in the financial statements and the corresponding
taxation basis used in the computation of assessable taxable profit.
In general, deferred taxation liabilities are recognised for all taxable
temporary differences and deferred taxation assets are recognised
to the extent that it is probable that taxable profit will be available
against which deductible temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition of
other assets and liabilities which affects neither the taxable profit
nor the accounting profit at the time of the transaction.
Deferred taxation liabilities are recognised for taxable temporary
differences associated with investments in subsidiaries and
associates, and interests in joint ventures, except where the Group
is able to control the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the
foreseeable future.
Deferred taxation is calculated at the taxation rates that are
expected to apply to the period when the asset is realised or the
liability is settled. Deferred taxation is charged or credited in the
income statement, except when it relates to items credited or
charged directly to equity, in which case the deferred taxation is
also dealt with in equity.

Accounting policies continued
Provisions
Provisions are recognised when the Group has a present,
constructive or legal obligation as a result of a past event and it is
probable that it will result in an outflow of economic benefits that
can be reasonably estimated.
An onerous contract is a contract under which the unavoidable
costs of meeting the obligation exceeds the economic benefit
expected to be received under it. When a contract becomes
onerous, the present obligation under a contract is recognised and
measured as a provision.
If the effect is material, provisions are determined by discounting
the expected future cash flows that reflect current market
assessments of the time value of money and, where appropriate,
the risks specific to the liability.
Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash
equivalents comprise cash on hand and deposits held on call with
banks and investment banks, net of bank overdrafts. In the
balance sheet, bank overdrafts are included in current liabilities.
Treasury shares
Shares purchased by wholly owned Group companies in their
holding company and by the employee share trusts are classified
as treasury shares, held at cost and presented in equity.
Dividends received on treasury shares are eliminated on
consolidation.
Treasury shares are taken into account in the calculation of
earnings per share.
Discontinued operations
A discontinued operation is a significant distinguishable component
of the Group’s business that is abandoned or terminated pursuant
to a single formal plan, and which represents a separate major line
of business or a geographical area of operation.
The profit or loss on sale or abandonment of a discontinued
operation is determined from the formalised discontinuance date.
Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets (i.e. assets that
necessarily take a substantial period of time to get ready for their
intended use or sale) are capitalised as part of the cost of those
26
assets. The capitalisation rate applied is the weighted average of
the net borrowing costs applicable to the net borrowings of the
Company. Capitalisation of such borrowing costs ceases when the
assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying assets
is deducted from borrowing costs capitalised.
All other borrowing costs are expensed in the period in which they
are incurred.
Exceptional items
All items of income and expense are taken into account in arriving
at income before taxation. Where items of income and expense
are of such size, nature or incidence that their disclosure is relevant
to explain the performance of the Group or Company, they are
separately disclosed and appropriate explanations are provided.
Research and development costs
Research costs are recognised as an expense in the period in which
they are incurred.
Expenditure on development is charged to income in the year in
which it is incurred except where a clearly defined project is
undertaken and it is reasonably anticipated that development
costs will be recovered through future commercial activity. Such
development costs are capitalised as an intangible asset and
amortised on a straight line basis over the life of the project from
the date of commencement of commercial operation.
Property, plant and equipment
Property, plant and equipment is stated at cost and is depreciated
on the straight line basis over the estimated useful lives of the
assets concerned. Rates of depreciation vary between 10% and
33,3% per annum and are disclosed in note 9.
Surplus or loss arising on disposal of assets is determined as the
difference between the sale proceeds and carrying value of the
asset and is recognised in the income statement.
Leased assets
Lease agreements which transfer substantially all the risks and
rewards associated with ownership of an asset to the lessee are
regarded as finance leases. Assets subject to finance lease
agreements are capitalised at the lower of the present value of
the minimum lease payment and their cash cost equivalent and
the corresponding liability to the lessor is raised. Lease payments

are allocated using the effective interest rate method to determine
the lease finance cost, which is charged against operating income
and the capital repayment, which in turn reduces the liability to
the lessor. These assets are depreciated on the same basis as the
property, plant and equipment owned by the Group over the
period of the lease.
Other leases, which merely confer the right to the use of an asset,
are treated as operating leases, with lease payments charged
against operating income systematically over the period of the lease.
Inventories
Inventories comprise merchandise for resale and are valued at
the lower of cost and net realisable value. Cost is determined on
the weighted average cost basis. Adequate provision is made for
obsolete and slow moving inventories.
Financial instruments
Financial assets and financial liabilities are recognised on the
Group’s balance sheet when the Group has become a party to the
contractual provisions of the instrument. All financial instruments
are recorded at cost, including transaction costs, at initial
recognition date. Subsequent to initial recognition these
instruments are measured as set out below.
Investments
Investments in securities are recognised on a trade date basis and
are initially measured at cost including transaction costs.
At subsequent reporting dates, where the Group has the intention
and ability to hold the investment to maturity, the investment is
measured at amortised cost less any provision for impairment.
Trade receivables
Trade receivables are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable amounts
based on estimated future cash flows discounted at the effective
rate implicit to each contract. Bad debts are written off during the
year in which they are identified.
Trade payables
Trade payables are recorded at their nominal value. An adjustment
is made to the carrying value to take into account the imputed
interest relating to the extended terms received from suppliers,
where the terms are beyond the normal credit terms in the
industry. A corresponding adjustment is made to cost of sales and
finance costs.
27
Derivative financial instruments
The Group uses derivative financial instruments to manage its risk
associated with foreign currency and interest rate fluctuations
relating to certain firm commitments and forecasted transactions.
Such derivatives are initially recorded at cost, if any, and are
remeasured to fair value at subsequent reporting dates.
Changes in the fair value of derivative financial instruments are
recognised in the income statement as they arise.
Derivatives embedded in other financial instruments or nonderivative
host contracts are treated as separate derivatives when
their risks and characteristics are not closely related to those of
host contracts and the host contracts are not carried at fair value
with unrealised gains or losses reported in the income statement.
De-recognition
Financial assets (or a portion thereof) are de-recognised when the
Group realises the rights to the benefits specified in the contract,
the rights expire or the Group surrenders or otherwise loses
control of the contractual rights that comprise the financial asset.
On de-recognition, the difference between the carrying amount of
the financial asset and proceeds receivable and any prior
adjustment to reflect fair value that had been reported in equity
are included in the income statement.
Financial liabilities (or a portion thereof) are de-recognised when the
obligation specified in the contract is discharged, cancelled or
expires. On de-recognition, the difference between the carrying
amount of the financial liability, including related unamortised costs,
and the amount paid for it are included in the income statement.
Fair value methods and assumptions
The fair value of financial instruments traded in an organised
financial market are measured at the applicable quoted prices,
adjusted for any transaction costs necessary to realise the assets or
settle the liabilities.
The fair value of financial instruments not traded in an organised
financial market, is determined using a variety of methods and
assumptions that are based on market conditions and risks
existing at reporting dates, including independent appraisals and
discounted cash flow methods.
The carrying amounts of financial assets and liabilities with a
maturity of less than one year are assumed to approximate their
fair values due to the short term trading cycle of these items.

Accounting policies continued
Offsetting financial assets and liabilities
Financial assets and liabilities are set off where the Group has a
legal and enforceable right to set off and there is an intention to
settle the liability and realise the asset simultaneously, or to settle
on a net basis.
Interest bearing debt
Interest bearing debt, including finance lease obligations, is
recognised at amortised cost, namely original debt less principal
payments and amortisations. The accounting policy for finance
lease obligations is dealt with under leased assets set out above.
Impairment
At each reporting date, the Group reviews the carrying amounts
of its tangible and intangible assets to determine whether there is
any indication that those assets have suffered an impairment loss.
If any such indication exists, the recoverable amount of the asset
is estimated in order to determine the extent of the impairment
loss, if any. Where it is not possible to estimate the recoverable
amount of an individual asset, the Group estimates the
recoverable amount of the cash generating unit to which the
asset belongs.
If the recoverable amount of an asset or cash generating unit is
estimated to be less than its carrying amount, the carrying amount
of the asset or cash generating unit is reduced to its recoverable
amount. Impairment losses are recognised as an expense
immediately.
Where an impairment loss subsequently reverses, the carrying
amount of the asset or cash generating unit is increased to the
revised estimate of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying amount that would
have been determined had no impairment loss been recognised
for the asset or cash generating unit in prior years. A reversal of an
impairment loss is recognised as income immediately.
Revenue recognition
Instalment sales
Profits on sales under instalment sale transactions are included in
revenue at date of delivery. Finance charges, calculated on the
effective interest rate method, are taken to revenue over the
period of the agreements as instalments become due.
This method approximates the net present value of anticipated
future cash flows.
28
Sale of goods
Revenue from sale of goods is recognised when substantially all
the risks and rewards of ownership have been transferred to the
buyer and the enterprise does not retain continuing managerial
control of the goods to a degree usually associated with
ownership, when the amount of revenue and costs incurred or to
be incurred in respect of the sale transactions can be measured
reliably, and when the collectability of the consideration in respect
of the sale is reasonably assured.
Interest
Interest revenue is recognised on a time proportion basis by
reference to the principal outstanding and at the interest rate
applicable.
Dividend income
Dividend income from investments is recognised when the right to
receive payment has been established.
Foreign currency transactions
Transactions in foreign currencies are accounted for at the rate of
exchange ruling on the date of the transaction. Foreign assets and
liabilities are converted into South African currency at the
approximate rates of exchange ruling at the reporting date while
the results of foreign operations are translated at an average
exchange rate for the period. Gains or losses on conversion of
foreign currencies are accounted for in the period in which they
arise and are included in operating income, except where they
arise on translation of the Group’s foreign entities, when they are
credited or charged directly to reserves.
Retirement benefits
Payments to defined contribution retirement benefit plans are
charged as an expense as they fall due.
For defined benefit plans the cost of providing the benefit is
determined using the projected unit credit method. The scheme
is actuarially valued for financial reporting purposes at each
reporting date. Past service costs are recognised immediately to
the extent that the benefits are already vested, and otherwise are
amortised on a straight line basis over the average remaining
working lives of members.
The amount recognised in the balance sheet represents the
present value of defined benefit obligations as adjusted for

unrecognised actuarial gains and losses, past service costs, and as
reduced by the fair value of plan assets. Any asset resulting from
the calculation is limited to the unrecognised actuarial losses and
past service costs, plus the present value of available refunds and
reductions in future contributions to the plan.
Equity compensation benefits
The Company grants share options to certain directors and
employees under share incentive schemes. The costs incurred in
administering the schemes are expensed as incurred. No
compensation cost is recognised in these annual financial
statements for options or shares granted to employees from the
share incentive schemes.
Contingencies and commitments
Transactions are classified as contingencies where the Group’s
obligation depends on uncertain future events.
Items are classified as commitments where the Group commits
itself to future transactions or if the items will result in the
acquisition of assets.
Dividends
Dividends declared to equity holders are included in the statement
of changes in equity in the year in which they are declared.
Taxation costs incurred on dividends are dealt with in income in
the year in which they are declared.
Segmental reporting
Segment accounting policies are consistent with those adopted
for the preparation of the financial statements of the consolidated
Group. The primary basis for reporting segment information is
chains and the secondary basis is by significant geographical
region, which is based on the location of assets. The basis is
consistent with internal reporting for management purposes as
well as the source and nature of business risks and returns.
Restatement of comparative figures
Based on a recent ruling by the GAAP monitoring panel, the
share incentive trusts have been consolidated. Comparatives
have been restated retrospectively. Refer to note 1 for the effect
on the income statement, balance sheet, cash flow statement
and statement of changes in equity.
29

Group income statement
30
Restated
2004 2003
for the year ended 31 August Note Rm Rm
Revenue 2 9 056 5 966
Cost of sales 4 148 2 613
Operating expenses before the following: 3 456 2 522
Depreciation
Amortisation
94 67
– goodwill 2 5
– trademark 14 14
Loss on disposal and closure of BoConcept 50 –
Loss on closure of Profurn legacy stores 34 –
Surplus on disposal of property, plant and equipment (7) (2)
Operating income 3 1 265 747
Investment income 24 15
Interest received 4 62 49
Interest paid 4 (207) (203)
Income before taxation 5 1 144 608
Taxation 6 354 160
Income after taxation 790 448
Attributable to outside shareholders – 1
Income attributable to shareholders 790 449
Reconciliation of headline earnings:
Income attributable to shareholders 790 449
Goodwill amortised 2 5
Loss on disposal and closure of BoConcept 50 –
Loss on closure of Profurn legacy stores 34 –
Surplus on disposal of property, plant and equipment (7) (2)
Taxation thereon 2 1
Headline earnings 871 453
Number of shares in issue (000) 172 000 166 830
Treasury shares in issue (000) 3 288 1 419
Number of shares held outside the Group (000) 168 712 165 411
Weighted average number of shares in issue (000)
– basic 166 930 133 196
– diluted 172 493 134 771
Headline earnings per share (cents)
– basic 7 522,0 340,5
– diluted 7 505,2 336,5
Earnings per share (cents)
– basic 7 473,3 337,3
– diluted 7 458,1 333,4
Cash equivalent dividends per share (cents) 8 240,0 110,0

31
Group balance sheet
Restated
2004 2003
at 31 August Note Rm Rm
Assets
Non-current assets 645 1 026
Property, plant and equipment 9 210 210
Goodwill 10 – 42
Trademark 11 165 315
Investments and loans 12 110 146
Deferred taxation 13 160 313
Current assets 7 094 6 159
Inventories 784 739
Trade and other receivables 14 4 871 4 860
Financial assets 22 34 36
Taxation 77 80
Bank balances and cash 1 328 444
Total assets 7 739 7 185
Equity and liabilities
Equity and reserves
Share capital and premium 15 1 903 1 778
Treasury shares 16 (88) (39)
Non-distributable reserves 17 137 127
Retained income 1 803 1 415
Shareholders for dividend 253 111
Shareholders’ equity 4 008 3 392
Non-current liabilities 1 487 1 412
Interest bearing long term liabilities 18 947 831
Deferred taxation 13 540 581
Current liabilities 2 244 2 381
Trade and other payables 19 1 787 1 801
Interest bearing liabilities 18 362 506
Financial liabilities 22 8 9
Taxation 87 64
Bank overdrafts – 1
Total equity and liabilities 7 739 7 185

Group cash flow statement
32
Restated
2004 2003
for the year ended 31 August Note Rm Rm
Cash flows from operating activities 908 385
Cash generated by trading a 1 453 816
Increase in working capital b (38) (108)
Cash generated by operations 1 415 708
Investment income 24 15
Finance costs – net c (144) (163)
Taxation paid d (123) (103)
Cash available from operating activities 1 172 457
Dividends paid e (264) (72)
Cash flows from investing activities (72) (111)
Acquisition of Profurn f – (26)
Acquisition of outside shareholders in BoConcept – (20)
Proceeds on disposal of BoConcept g 24 –
Investment and loan receipts 13 16
Proceeds on disposal of property, plant and equipment 24 18
Additions to property, plant and equipment (133) (99)
Cash flows from financing activities 49 8
Proceeds on issue of shares (odd lot offer) – (1)
Proceeds on disposal of treasury shares by share incentive trusts 77 3
Long term bank borrowings raised 347 240
Long term bank borrowings repaid (482) (181)
Finance lease liabilities raised 200 –
Finance lease liabilities repaid (93) (53)
Net increase in cash and cash equivalents 885 282
Cash and cash equivalents at beginning of year 443 161
Cash and cash equivalents at end of year h 1 328 443

33
Notes to the Group cash flow statement
Restated
2004 2003
for the year ended 31 August Rm Rm
a Cash generated by trading
Operating income 1 265 747
Non-cash items
Depreciation 94 67
Surplus on disposal of property, plant and equipment (7) (2)
Amortisation
– goodwill 2 5
– trademark 14 14
Loss on disposal and closure of BoConcept 50 –
Loss on closure of Profurn legacy stores 34 –
Revaluation of financial liabilities 1 (15)
1 453 816
b Increase in working capital
Increase in inventories (45) (41)
Decrease in trade and other receivables 24 (120)
Decrease in trade and other payables (23) 53
Unrealised foreign currency translation 6 –
(38) (108)
c Finance costs - net
Interest paid (note 4) (207) (203)
Interest received (note 4) 62 49
Fair value adjustments on financial assets and liabilities 1 (9)
(144) (163)
d Taxation paid
Amount receivable/(payable) at beginning of year 16 (63)
At acquisition adjustment (1) –
Per income statement (note 6) (148) (24)
Amount payable/(receivable) at end of year 10 (16)
(123) (103)
e Dividends paid
Amount payable at beginning of year (111) (25)
Declared (406) (158)
Amount payable at end of year 253 111
(264) (72)
f Acquisition of Profurn
Property, plant and equipment 64
Deferred taxation 206
Inventories 271
Trade and other receivables 1 509
Taxation (66)
Interest bearing liabilities (63)
Trade and other payables (1 003)
Investments and loans 52
Treasury shares 13
Trademark 329
Deferred taxation on trademark (99)
1 213
Outside shareholders –
Bank overdraft acquired (59)
1 154
Paid for by the issue of shares 1 128
Cash paid 26
g Proceeds on disposal of BoConcept
Property, plant and equipment 23
Inventories 3
Trade and other receivables 6
Goodwill impairment 42
74
Loss on disposal and closure of BoConcept (50)
Proceeds 24
h Cash and cash equivalents
Bank balances and cash 1 328 444
Bank overdrafts – (1)
1 328 443
Bank balances and cash include a margin deposit on interest rate swaps amounting to R21 million (2003: R6 million).

Group statement of changes in equity
Non- Sharedistri-
holders
Share Share Treasury butable Retained for
capital premium shares reserves income dividend Total
Rm Rm Rm Rm Rm Rm Rm
Balance at 31 August 2002
– as previously reported 6 776 – 24 1 112 25 1 943
Consolidation of share incentive trusts* (22) 12 (10)
Balance at 31 August 2002
– restated 6 776 (22) 24 1 124 25 1 933
Income attributable to shareholders 449 449
Distributable to shareholders (160) 160 –
Distributable to share incentive trusts* 2 (2) –
Paid to shareholders – 13 January 2003 (25) (25)
– 22 April 2003 (47) (47)
Shares issued to share incentive trusts* (7) (7)
Proceeds on disposal of treasury shares
by share incentive trusts* 3 3
Issue of share capital in respect of the
acquisition of Profurn 2 986 988
Revaluation of shares issued pursuant to
the acquisition of Profurn 139 139
Odd lot offer purchases (2) (2)
Odd lot offer sales 2 2
Translation of foreign entities (36) (36)
Issue of share capital – 8 8
Treasury shares acquired (13) (13)
Balance at 31 August 2003
– restated 8 1 770 (39) 127 1 415 111 3 392
– as previously reported 8 1 770 (13) 127 1 401 113 3 406
Consolidation of share incentive trusts* (26) 14 (2) (14)
At acquisition adjustment (5) (5)
Income attributable to shareholders 790 790
Distributable to shareholders (415) 415 –
Distributable to share incentive trusts 8 (8) –
Distributable to treasury shares 1 (1) –
Paid to shareholders – 22 December 2003 (115) (115)
Paid to share incentive trusts
– 22 December 2003 2 2
Paid to shareholders – 14 June 2004 (155) (155)
Paid to share incentive trusts
– 14 June 2004 4 4
Proceeds on disposal of treasury shares 8 8
Profit on disposal of treasury shares
transferred to retained income (4) 4 –
Shares issued to share incentive trusts 1 124 (125) –
Proceeds on disposal of treasury shares
by share incentive trusts 77 77
Translation of foreign entities 10 10
Balance at 31 August 2004 9 1 894 (88) 137 1 803 253 4 008
* Restated comparative
34

35
Notes to the Group annual financial statements
1. Changes in comparative figures
1.1 A recent ruling given by the GAAP Monitoring Panel has provided more clarity regarding the consolidation of share incentive trusts.
In light of this, the Group has consolidated the JD Group Employee Share Incentive Scheme and the JD Group Limited Share Incentive
Trust in the current reporting period. Intercompany loan accounts have been eliminated and Group shares held by the trusts have been
shown as treasury shares. Comparative figures have been restated.
In addition to the changes evident from the statement of changes in equity, the following amounts have been restated:
Income statement
There was no impact on the income statement as a result of the consolidation of the share trusts.
Earnings per share
Basic and diluted earnings per share were adjusted by the inclusion of the additional treasury shares held by the Group as a result of
the consolidation of the share incentive trusts.
31 August
2003
Rm
As previously reported
Weighted average number of shares in issue (000)
– basic 133 837
– diluted 135 413
Headline earnings per share (cents)
– basic 338,8
– diluted 334,9
Earnings per share (cents)
– basic 335,7
– diluted 331,8
Restated
Weighted average number of shares in issue (000)
– basic 133 196
– diluted 134 771
Headline earnings per share (cents)
– basic 340,5
– diluted 336,5
Earnings per share (cents)
– basic 337,3
– diluted 333,4
Balance sheet
Share incentive trusts – loans receivable
As previously reported 12
Share incentive trust loan accounts eliminated on consolidation (12)
Restated balance –
Trade and other payables
As previously reported 1 799
Amounts payable to share incentive trust participants 2
Restated balance 1 801
Cash flow statement
Increase in working capital
As previously reported (110)
Increase in amounts payable to share incentive trust participants 2
Restated balance (108)

Notes to the Group annual financial statements continued
1. Changes in comparative figures continued
1.2 The recent release of the improvements to International Financial Reporting Standards has clarified that the International Accounting
Standard Board only requires inventory (cost of sales) and trade payables (finance costs) to be adjusted for the benefit obtained from
extended credit terms, where the terms are beyond the normal credit terms in the industry. The Group has therefore reversed the prior
year provision regarding the imputed interest cost. The impact is as follows:
Cost Finance Operating
of sales costs – net income
R m R m R m
Year ended 31 August 2003
As previously reported 2 557 210 803
Adjustment 56 (56) (56)
Restated 2 613 154 747
1.3 The opening balance for property, plant and equipment in the year ended 31 August 2003 has been restated to reflect cost and
accumulated depreciation on vehicles and forklift trucks on a gross basis. This adjustment is reflected in note 9.
1.4 The following reclassification has been made between financial assets and liabilities: Financial Financial
assets liabilities
R m R m
Year ended 31 August 2003
As previously reported 27 –
Adjustment 9 9
Restated 36 9
2004 2003
2. Revenue Rm Rm
Sale of merchandise 6 131 3 819
Finance charges earned 1 454 1 113
Financial services 1 095 761
Other services 376 273
36
9 056 5 966
3. Reconciliation of revenue to operating income
Revenue 9 056 5 966
Cost of sales 4 148 2 613
Other direct operating expenses 661 464
Administration and IT 550 363
Marketing 333 242
Occupancy 489 382
Employees 1 296 933
Transport and travel 223 183
Management fee 25 20
Amortisation – goodwill 2 5
– trademark 14 14
Loss on disposal and closure of BoConcept 50 –
Operating income 1 265 747

37
2004 2003
Rm Rm
4. Finance costs – net
Interest paid
Finance costs 202 181
Fair value losses on financial instruments 5 22
207 203
Interest received
Finance income (58) (21)
Fair value gains on financial instruments (4) (28)
(62) (49)
Finance costs – net 145 154
5. Income before taxation
is stated after taking account of the following items:
Auditors’ remuneration
Audit fees – current 4,7 2,5
– prior 2,9 1,0
Other services 2,4 3,3
Expenses 0,1 0,1
10,1 6,9
Depreciation of property, plant and equipment
Owned 89,7 65,1
Leased 3,9 2,0
93,6 67,1
Directors’ remuneration (see disclosure on page 18)
Services as directors 0,7 0,6
Other services (included in the management fees below) 15,8 12,8
16,5 13,4
Fair value losses/(gains) on embedded derivatives 1,1 (13,1)
Foreign exchange losses 19,0 0,2
Foreign exchange losses on translation of foreign operations
Goodwill
19,3 –
Amortisation 2,0 5,4
Loss on disposal and closure of BoConcept (including impairment of goowill)
Management fees
49,9 –
Sustein Management (Pty) Ltd (includes directors’ remuneration – other services)
Operating leases
24,8 19,8
Business premises 377,1 298,2
Office equipment 21,3 9,6
398,4 307,8
Retirement benefit costs
Defined contribution funds 60,8 41,3
Defined benefit funds 6,9 6,3
67,7 47,6
Surplus on disposal of property, plant and equipment
Owned (7,0) (1,9)
Trademark amortisation 13,6 13,7

Notes to the Group annual financial statements continued
38
2004 2003
Rm Rm
6. Taxation
South African taxation
Normal – current 142,1 20,0
– prior 0,8 (3,1)
Deferred – current 178,3 143,6
– prior (0,9) –
Secondary taxation on companies (deferred) 29,2 5,5
349,5 166,0
Foreign taxation
Normal – current 4,6 –
– prior 0,9 1,3
Deferred – current (2,2) (9,8)
– prior 1,1 –
– rate adjustment – 2,5
Withholding and other – 0,1
4,4 (5,9)
Total taxation 353,9 160,1
Dealt with as follows
Current taxation 148,4 23,8
Deferred taxation 205,5 136,3
Total taxation 353,9 160,1
Reconciliation of taxation charge
Domestic standard normal rate of taxation (%) 30,0 30,0
Taxation at standard rate 343,2 182,4
Adjusted for
Foreign tax rate differential 1,6 2,2
Expenditure disallowed 32,1 3,3
Exempt income (92,3) (58,2)
Prior years 1,9 (3,1)
Deferred tax asset not raised 38,2 25,4
Secondary taxation on companies (included in deferred taxation) 29,2 5,5
Withholding taxes – 0,1
Rate adjustment – 2,5
Taxation charged to income 353,9 160,1
Effective rate of taxation (%) 30,9 26,3
Estimated tax losses available for set off against future taxable income
Tax losses available 419,8 331,5
Deferred tax assets not raised 243,3 98,2
Deferred tax assets raised 176,5 233,3
Tax effect at country rate of tax (note 13) 50,8 54,6
Deferred tax assets relating to tax losses of R243,3 million (2003: R98,2 million) have not been raised in accordance with Group policy
because the probability of utilising these losses in the foreseeable future is considered to be remote.

39
2004 2003
7. Earnings per share and headline earnings per share
The calculation of earnings per share is based on income attributable
to shareholders of R million 790 449
Basic
Weighted average number of shares in issue during the year of (000) 166 930 133 196
Cents Cents
Earnings per share 473,3 337,3
Surplus on disposal of property, plant and equipment (4,2) (1,4)
Goodwill amortised 1,2 4,2
Loss on disposal and closure of BoConcept 29,9 –
Loss on closure of Profurn legacy stores 20,5 –
Taxation effect thereon 1,3 0,4
Headline earnings per share 522,0 340,5
Diluted
Dilutive effect of bonus element in share options (000) 5 563 1 575
Diluted weighted average number of shares in issue during the year of (000) 172 493 134 771
Cents Cents
Earnings per share 458,1 333,4
Surplus on disposal of property, plant and equipment (4,1) (1,4)
Goodwill amortised 1,2 4,1
Loss on disposal and closure of BoConcept 28,9
Loss on closure of Profurn legacy stores 19,8
Taxation effect thereon 1,3 0,4
Headline earnings per share 505,2 336,5
The above are calculated based on rand amounts.
Rm Rm
8. Distribution to shareholders
Final dividend prior year
– declared 68 cents on 166 830 000 shares (2002: 22 cents on 112 730 000 shares) (113) (24)
– paid 68 cents on 169 000 000 shares (2002: 22 cents on 112 730 000 shares)
Interim dividend
115 24
– declared and paid 90 cents on 172 000 000 shares (2003: 42 cents on 112 730 000 shares)
Final dividend
155 47
– declared 150 cents on 172 000 000 shares (2003: 68 cents on 166 830 000 shares) 258 113
Total distribution to shareholders 415 160

Notes to the Group annual financial statements continued
40
Property
Leasehold
improvements
Rm Rm
9. Property, plant and equipment
2004
Owned
At beginning of year – as previously reported
Cost 38 95
Accumulated depreciation
Restatement (note 1.3)
Cost
Accumulated depreciation
(5) (46)
Restated
Cost 38 95
Accumulated depreciation (5) (46)
Net book value
Movement for the year
33 49
Additions/transfers 14 32
Depreciation (4) (23)
Disposals – cost – (25)
– accumulated depreciation – 6
Foreign exchange rate conversion – –
At end of year
Cost 52 102
Accumulated depreciation (9) (63)
Net book value 43 39
Leased
At beginning of year
Cost – –
Accumulated depreciation – –
Net book value
Movement for the year
– –
Depreciation – –
Disposals – cost – –
– accumulated depreciation – –
At end of year
Cost – –
Accumulated depreciation – –
Net book value – –
Total net book value 43 39
Depreciation rates (%) 10 25
Directors’ valuation of property
A register of property is available for inspection by members at the registered office of the Company.
There was no change in the nature of property, plant or equipment or in the policy regarding their use.
Certain leased assets are pledged as security for finance lease liabilities – note 18.

Vehicles and Computer Office equipment,
forklift trucks equipment furniture and fittings 2004
Rm Rm Rm Rm
155 40 77 405
(84) (19) (49) (203)
61 61
(61) (61)
216 40 77 466
(145) (19) (49) (264)
71 21 28 202
57 27 3 133
(42) (14) (7) (90)
(45) (20) (10) (100)
40 13 5 64
– – (1) (1)
228 47 69 498
(147) (20) (51) (290)
81 27 18 208
24 1 7 32
(17) (1) (6) (24)
7 – 1 8
(4) – – (4)
(14) (1) (3) (18)
12 1 3 16
10 – 4 14
(9) – (3) (12)
1 – 1 2
82 27 19 210
25 – 33 25 10 – 25
41
73

Notes to the Group annual financial statements continued
42
Property
Leasehold
improvements
Rm Rm
9. Property, plant and equipment continued
2003
Owned
At beginning of year – as previously reported
Cost 29 70
Accumulated depreciation (3) (31)
Restatement (note 1)
Cost
Accumulated depreciation
Restated
Cost 29 70
Accumulated depreciation (3) (31)
Net book value 26 39
Movement for the year
Acquired – cost 5 16
– accumulated depreciation – (3)
Additions/transfers 8 24
Depreciation (3) (15)
Disposals – cost (4) (6)
– accumulated depreciation 1 3
Foreign exchange rate conversion – (9)
At end of year – as previously reported
Cost 38 95
Accumulated depreciation (5) (46)
Restatement
Cost
Accumulated depreciation
Restated
Cost 38 95
Accumulated depreciation (5) (46)
Net book value 33 49
Leased
At beginning of year
Cost – –
Accumulated depreciation – –
Net book value – –
Movement for the year
Acquired – cost – –
– accumulated depreciation – –
Depreciation – –
Disposals – cost – –
– accumulated depreciation – –
At end of year
Cost – –
Accumulated depreciation – –
Net book value – –
Total net book value 33 49
Depreciation rates (%) 10 25
Directors’ valuation of property

Vehicles and Computer Office equipment,
forklift trucks equipment furniture and fittings 2003
Rm Rm Rm Rm
91 27 49 266
(44) (16) (29) (123)
61 61
(61) (61)
152 27 49 327
(105) (16) (29) (184)
47 11 20 143
50 20 22 113
(38) (6) (12) (59)
52 6 9 99
(30) (8) (9) (65)
(38) (11) (1) (60)
28 11 1 44
– (2) (2) (13)
155 40 77 405
(84) (19) (49) (203)
61 61
(61) (61)
216 40 77 466
(145) (19) (49) (264)
71 21 28 202
2 – 8 10
(2) – (7) (9)
– – 1 1
25 1 – 26
(15) (1) – (16)
(2) – – (2)
(3) – (1) (4)
2 – 1 3
24 1 7 32
(17) (1) (6) (24)
7 – 1 8
78 21 29 210
25 – 33 25 10 – 25
43
63

Notes to the Group annual financial statements continued
44
2004 2003
Rm Rm
10. Goodwill
Cost
Opening balance 202 209
Acquisition of BoConcept – 8
Translation adjustment 2 (15)
Removal of BoConcept goodwill (52) –
152 202
Accumulated amortisation
Opening balance 160 155
Amortisation 2 5
Impairment due to closure of BoConcept 42 –
Removal of BoConcept accumulated amortisation (52) –
152 160
Net book value – 42
11. Trademark
Cost
Profurn trademark acquired – provisional 329 329
Adjustment to Profurn fair values at acquisition (136) –
Final cost 193 329
Accumulated amortisation
Opening balance 14 –
Amortisation 14 14
28 14
Net book value 165 315
The excess of the purchase consideration made over the fair value of the net assets
acquired from Profurn was recognised as a provisional trademark in the prior year.
The fair values of these assets and liabilities have been finalised as follows: Revised Provisional
Property, plant and equipment 64 64
Deferred taxation 216 206
Inventories 274 271
Trade and other receivables 1 561 1 509
Taxation (67) (66)
Interest bearing liabilities (63) (63)
Trade and other payables (954) (1 003)
Investments and loans 29 52
Treasury shares 18 13
Bank overdraft (59) (59)
Trademark 193 329
Deferred taxation on trademark (58) (99)
Net book value 1 154 1 154
The trademark decreased by R136 million with the associated deferred tax liability decreasing by R41 million. The impact of this
restatement on the amortisation is a reduction of R5,7 million in the current year. The amortisation period remains 10 years from the
effective date of acquisition. The amortisation charge for future years would therefore approximate R19,3 million per annum.

45
2004 2003
Rm Rm
12. Investments and loans
Unlisted
Shares at cost, which approximates fair value 110 110
Investment in non-consolidated subsidiaries – 36
Shares at cost 1 4
Loans from consolidated subsidiaries 156 174
157 178
Impairment (157) (142)
The impairment has been calculated based on the directors’
estimation of cash to be received on the respective loans.
110 146
Abridged aggregated balance sheet of non-consolidated subsidiaries
Equity 1 4
Distributable reserve (234) 63
Opening balance (2003: at acquisition) 63 171
Movement* (297) (108)
Non-distributable reserve 97 (99)
Opening balance (2003: at acquisition) (99) (113)
Movement* 196 14
(136) (32)
Fixed assets – 18
Net current assets 18 118
Bank balances and cash 2 33
Bank overdrafts – (27)
Loans from consolidated subsidiaries (156) (174)
(136) (32)
Reconciliation of estimated recoverable portion of loans
Net asset value (136) (32)
Loans from consolidated subsidiaries 156 174
20 142
Amount considered not recoverable (20) (106)
Amount considered recoverable – 36
* Includes the effect of the liquidation of African subsidiaries

Notes to the Group annual financial statements continued
46
2004 2003
Rm Rm
13. Deferred taxation
Amount provided at beginning of year 268 224
At acquisition adjustment of Profurn (51) (107)
Deferred tax on STC credit from dividends received (43) –
Debited to income (note 6) 206 136
Foreign translation adjustments – 15
Amount provided at end of year 380 268
The deferred taxation provision comprises the following temporary differences:
Instalment sale receivables’ allowances 372 210
Provisions disallowed (81) (104)
Trademark (45) (55)
Trademark (2003: provisional) 50 95
Assets unrealised 6 7
Payments in advance 12 18
Other 131 152
Tax losses (51) (55)
STC credits (14) –
380 268
Deferred taxation is disclosed as:
Asset (160) (313)
Liability 540 581
380 268
14. Trade and other receivables
Instalment sale receivables (1)
6 394 6 592
Less: Provisions (1 850) (2 100)
Unearned finance charges (917) (965)
Bad debts (482) (697)
Other (2)
(451) (438)
Net instalment sale receivables 4 544 4 492
Other receivables 327 368
Total accounts receivable 4 871 4 860
Provisions as a percentage of instalment sale receivables (%) 28,9 31,9
In accordance with industry norms, amounts due from instalment sale receivables after one year are included in current assets.
The credit terms of instalment sale receivables range from 6 to 24 months.
(1) Classified as originated loans and receivables and carried at amortised cost.
(2) Other provisions consist of provisions for extended guarantees, unearned club, insurance and collection fees.
Bank borrowings are secured by a negative pledge of instalment sale receivables (note 18).

47
2004 2003
Rm Rm
15. Share capital and premium
Share capital
Authorised
250 000 000 (2003: 250 000 000) ordinary shares of 5 cents each 13 13
Issued
172 000 000 (2003: 166 830 000) ordinary shares of 5 cents each 9 8
Share premium
Balance at beginning of year 1 770 776
Additions during year net of share issue expenses:
On 53 700 000 shares issued at a premium of 1 837 cents
for the acquisition of Profurn – 986
On 75 407 ordinary shares bought back in terms
of the odd lot offer at a premium of 2 796 cents – (2)
On 53 200 ordinary shares issued in terms of the
odd lot offer at a premium of 2 796 cents – 2
On 5 170 000 (2003: 422 207) ordinary shares issued at premiums
of 1 398 to 2 979 (2003: 1 398 to 1 874) cents in terms
of options exercised by employees participating in
The JD Group Employee Share Incentive Scheme 124 8
Balance at end of year 1 894 1 770
Total share capital and premium 1 903 1 778
No unissued shares are under the control of the directors to be issued in terms of
The JD Group Limited Share Incentive Trust.
14 022 632 (2003: 14 266 800) shares are under option to employees of the
Group in terms of The JD Group Employee Share Incentive Scheme at prices varying
between R14,03 and R36,90 per share. (page 60)
11 777 368 (2003: 7 670 028) shares are under the control of the directors to
be granted in terms of The JD Group Employee Share Incentive Scheme. (page 60)
A maximum of ten million of the remaining unissued shares are under the control of the
directors until the forthcoming annual general meeting.
16. Treasury shares
JD Group Limited ordinary shares of 5 cents each held by group companies and employee
share incentive trusts at cost.
Protea Furnishers S.A. (Pty) Ltd
421 941 (2003: 621 941) ordinary shares 9 13
The JD Group Employee Share Incentive Scheme
2 292 087 (2003: 158 894) ordinary shares 59 4
The JD Group Limited Share Incentive Trust
574 309 (2003: 638 309) ordinary shares 20 22
88 39

Notes to the Group annual financial statements continued
48
2004 2003
Rm Rm
17. Non-distributable reserves
Made up as follows:
Foreign currency translation reserve (2) (12)
Revaluation of shares issued pursuant to the acquisition of Profurn 139 139
137 127
18. Interest bearing liabilities
Bank borrowings 717 889
Finance lease liabilities 592 448
1 309 1 337
Payable within one year reflected under
current liabilities (362) (506)
These have been classified as liabilities held to maturity and are carried at amortised cost.
Bank borrowings are secured by a negative pledge of trade receivables of R6 394 million (2003: R6 592 million).
The interest rates per annum are:
2004:
– on R150 million: variable rate linked to prime, fixed at 2,98% for the period to 30 September 2004;
– on R40 million: variable rate linked to jibar, fixed at 9,42% for the period to 30 September 2004;
– on R217 million: variable rate linked to jibar, fixed at 3,21% for the period to 1 October 2004;
The above are repayable in bi-annual instalments of capital and interest of approximately R144 million each.
– on R174 million: fixed at 10,69% for the period to 24 November 2008;
– on R130 million: variable rate linked to jibar, fixed at 9,15% for the period to 24 November 2004;
The above are repayable in quarterly instalments of capital and interest of approximately R25 million each.
– on R6 million: variable rate linked to prime, currently at 14,25%, repayable in equal monthly instalments,
to be fully repaid by no later than 15 December 2004.
2003:
– on R233 million: variable rate linked to prime, fixed at 9,06% for the period to 1 March 2004;
– on R60 million: variable rate linked to jibar, fixed at 12,62% for the period to 1 December 2003;
– on R319 million: variable rate linked to jibar, fixed at 8,75% for the period to 1 October 2003;
The above were repayable in bi-annual instalments of capital and interest of approximately R144 million each.
947 831
– on R240 million: variable rate linked to prime, currently at 11,60%, repayable by no later than 15 September 2004; and
– on R37 million: variable rate linked to prime, currently at 15,25%, repayable in equal monthly instalments,
to be fully repaid by no later than 15 December 2004.
Finance lease liabilities are secured by certain intellectual property and fixed assets. Finance lease liabilities bear
interest at effective rates of 13,81% to 15,64% (2003: 15,64%) per annum and are repayable in bi-annual instalments of
capital and interest of approximately R81 million (2003: R61 million) each.

18. Interest bearing liabilities continued
Interest bearing liabilities are repayable in the following financial years:
49
2004 2003
Rm Rm
Bank borrowings
2004 457
2005 291 245
2006 250 187
2007 74 –
2008 81 –
2009 21 –
717 889
Finance lease liabilities
2004 49
2005 71 58
2006 83 65
2007 95 75
2008 112 88
2009 141 113
2010 31 –
2011 36 –
2012 23 –
592 448
In terms of the articles of association of the Company and all its subsidiaries, borrowing powers are unlimited.
19. Trade and other payables
The directors consider the carrying amount of trade and other payables
to approximate their fair values. The credit period of trade payables
ranges between 30 and 90 days.
The following provisions are included in trade and other payables:
Utilised during Utilised during Balance at
Raised at 31 August 31 August 31 August
acquisition Revised 2003 2004 2004
Raised on the acquisition of Profurn: Rm Rm Rm Rm Rm
Retrenchment costs 39 4 (19) (10) 14
Closing of facilities 38 (8) (26) – 4
Lease closure costs 167 (33) (30) (43) 61
244 (37) (75) (53) 79
Utilised during Balance at
Raised on 31 August 31 August
closure 2004 2004
Raised on the closure of Profurn legacy stores: Rm Rm Rm
Retrenchment costs 1 (1) –
Lease closure costs 8 – 8
9 (1) 8
2004 2003
Other provisions: Rm Rm
Leave pay 43 45
Annual bonus 39 39
82 84

Notes to the Group annual financial statements continued
50
2004 2003
Rm Rm
20. Commitments
Capital expenditure
Authorised and contracted 14 11
Authorised but not yet contracted 109 90
123 101
This expenditure will be financed from internal
sources and existing borrowing facilities.
Operating lease commitments (predominantly premises)
Due within one year 367 422
Due thereafter 782 1 119
21. Foreign assets
Total assets subject to exchange control of a foreign country amount to R52 million (2003: R84 million).
1 149 1 541
22. Financial risk management
Senior executives meet on a regular basis to analyse interest rate exposures and evaluate treasury management strategies against revised
economic forecasts. Compliance with Group policies and exposure limits are reviewed at quarterly meetings of the board. The directors
believe, to the best of their knowledge, that there are no undisclosed financial risks.
22.1 Interest rate management
As part of the process of managing the Group’s fixed and floating rate borrowings mix, the interest rate characteristics of new
borrowings and the refinancing of existing borrowings are positioned according to expected movements in interest rates.
In order to hedge specific exposures in the interest rate repricing profile of existing borrowings and anticipated peak additional
borrowings, the Company and its subsidiaries make use of interest rate derivatives, only as approved in terms of Group policy limits.
At 31 August 2004, the Group had entered into derivative instruments exchanging variable for fixed interest rates. The value of
borrowings hedged by interest rate derivatives and the fair values of these contracts as recorded, were as follows:
Notional Fair
amount Commencement Maturity value
Rm date date Rm
217 1 September 2004 1 October 2004 27,5
233 30 May 2003 31 May 2005 (5,9)
115 1 July 2003 1 July 2005 (1,6)
58 10 September 2003 1 July 2005 (0,2)
19,8

22. Financial risk management continued
22.2 Foreign currency management
Certain foreign currency transactions are covered by forward exchange contracts from the time such transactions are entered into until
settlement date. The writing of option contracts is prohibited. The amounts represent the net rand equivalents of commitments to
purchase foreign currencies and all of these commitments mature within three months of the year end.
Foreign Rand Market Fair
currency equivalent value value
000 R000 R000 R000
Covered forward commitments
US dollars 11 976 76 243 79 536 3 293
Uncovered forward commitments
US dollars – – – –
The fair values of the forward exchange contracts of R3,3 million are included in financial liabilities.
22.3 Embedded derivatives
Abra SA has entered into US dollar and Euro based property leases. A fair value asset of R3,6 million has been recognised for the
2004 financial year (2003: R4,7 million asset) resulting in a charge of R1,1 million to the income statement (2003: R13,1 million gain).
22.4 Credit risk management
Potential concentrations of credit risk consist principally of trade receivables and short term cash investments.
The Group only deposits short term cash surpluses with three major banks of high quality credit standing. Trade receivables comprise
a large, widespread customer base. The granting of credit is controlled by the application of behavioural scoring models, and the
assumptions therein are reviewed and updated on an ongoing basis. At 31 August 2004, the Group did not consider that any significant
concentration of credit risk existed which had not been adequately provided for.
22.5 Liquidity risk
The Group has limited risk of illiquidity as shown by its substantial banking facilities and reserve borrowing capacity.
2004 2003
Banking facilities Rm Rm
Total banking and loan facilities 1 578 1 960
Bank borrowings (note 18) 717 889
Unutilised banking facilities 861 1 071
In addition, the Group has cash on hand at year end of R1 328 million (2003: R443 million).
51

Notes to the Group annual financial statements continued
23. Employee benefit plans
23.1 Retirement benefits
The Group has made provision for pension and provident schemes covering substantially all employees. All eligible employees are
members of either a defined benefit or a defined contribution scheme administered by Alexander Forbes Financial Services, Old Mutual
Employee Benefits Industry Funds Unit or the Social Security Fund in Poland.
One defined benefit scheme and 12 defined contribution schemes are in operation. The assets of these schemes are held in
administered trust funds separated from the Group’s assets. Scheme assets primarily consist of listed shares, property trust units
and fixed income securities. The schemes are governed by the South African Pension Funds Act of 1956 or the Polish Social Securities
System Act of 1998.
The defined benefit fund is valued actuarially at intervals of not more than three years using the projected unit credit method. The
scheme was valued for financial reporting purposes at year end. The date of the next statutory actuarial valuation is 31 December 2004.
In arriving at their conclusion, the actuaries took into account the following reasonable long term estimates:
52
2004 2003
% %
Inflation 5,0 7,0
Increase in salaries 6,5 8,5
Increase in pensions 2,8 4,7
Return on investment 10,0 12,0
Discount rate 10,0 12,0
The actuarially determined fair value of the assets of the defined benefit scheme was R91 million (2003: R83 million) which corresponds
with the market value at that date. This is sufficient to cover the benefits that had accrued to members, allowing for expected future
increases in earnings, amounting to R67 million (2003: R64 million).
2004 2003
Rm Rm
Cost recognised 6,9 6,3
Current service cost 3,6 4,0
Interest cost 6,7 7,8
Expected return on plan assets (8,6) (8,5)
Asset utilised 5,2 3,0
As the Group has not conducted the surplus apportionment process as required by the Pension Funds Amendment Act, 2001,
ownership of the surplus, if any, cannot be determined. As a result, the surplus in the fund has not been recognised as an asset.
Any deficit as determined by the actuaries is funded either immediately or through increased contributions to ensure the ongoing
soundness of the scheme.
23.2 Disability fund
The Group has a commitment to the Group Disability Fund of R6,3 million for estimated current and future benefits in respect of
108 members which is fully provided for.

24. JD Group/Nedcor alliance
The JD Group/Nedcor Alliance (JDNA) was formed 38 months ago. The JDNA is governed by a supervisory board on which JD Group is
represented by I D Sussman, H C Strauss and J L Bezuidenhout and is further made up of Nedcor executives.
The lending business, which is an Alliance between Nedcor Limited and Capital One Services, Inc. (CNA), carries the loan book.
The gross value of the loan book at 31 August 2004 amounts to R242 million (2003: R250 million). JD Group is at risk to the value of
25% of this loan book. Profits or losses in the lending business are paid by CNA to JDNA by way of a fee. In addition, an originating
fee is paid by CNA to JDNA for the new business it generates.
The JDNA has a year end of 31 December, which is in line with Nedcor Limited’s year end. This information is unaudited.
53
2004 2003
Rm Rm
Abridged income statement
Fees received from CNA 29,7 22,5
Other income 2,5 1,2
Administration overheads (28,1) (32,4)
Finance costs (4,1) (5,5)
Net loss for the period – (14,2)
JD share of net loss (50%) – (7,1)
Abridged balance sheet
Assets
Non-current assets
Property, plant and equipment
Current assets
4,7 6,5
Accounts receivable 0,6 1,1
Intercompany 10,6 7,4
Total assets 15,9 15,0
Equity and liabilities
Equity and reserves
Shareholders’ equity
Current liabilities
5,3 6,1
Deposits 10,6 8,9
Total equity and liabilities 15,9 15,0
The Alliance has been terminated by mutual consent between the parties with effect from 19 November 2004 as detailed in note 26.

Notes to the Group annual financial statements continued
25. Related parties
Sustein Management (Pty) Ltd
All dealings with Sustein Management have been dealt with elsewhere
in this report and the directors’ remuneration included on pages 18 to 23.
54
2004 2003
Rm Rm
Non-consolidated subsidiaries
The Group’s dealings with its non-consolidated subsidiaries:
Loans
Finserve Mauritius Limited 49 71
Prosure Insurance Limited (25) (29)
Supreme Furnishers (Zambia) Limited 4 4
Supreme Furnishers (Namibia) (Pty) Ltd 128 128
156 174
Interest received
Finserve Mauritius Limited (6) (6)
Supreme Furnishers (Namibia) (Pty) Ltd (10) (7)
Interest of directors in contracts
All the Group’s corporate legal matters are performed by a company in which a
non-executive director has a controlling interest.
26. Subsequent events
BoConcept
In June of this year we sold the master licence for BoConcept UK, three stores and the contracts division back to the Danish parent
company. In addition we assigned another two leases and put the balance of the business, which was in effect three remaining leases,
into voluntary liquidation on 29 October 2004.
Nedcor Alliance
During November 2004 a joint decision was taken to terminate the Alliance with effect from 19 November 2004. This termination will
not have any material financial effect on either party.
Blake & Associates Holdings (Pty) Ltd (“Blakes”)
The Group announced on 12 August 2004 that it would acquire half of Unifer Holdings Limited’s (“Unifer”) (a wholly owned subsidiary
of ABSA Bank Limited) stake in Blakes. Subsequent to that announcement, JD Group and Unifer jointly acquired a further 5%
shareholding from a minority shareholder, which brings our holding to 27,5%.

55
Segmental analysis – geographical
South
Neighbouring
Africa countries Europe Group
2004
Revenue Rm 8 231 519 306 9 056
Operating income Rm 1 412 (51) (96) 1 265
Depreciation Rm 81 7 6 94
Total assets Rm 7 292 373 74 7 739
Total current liabilities Rm 2 122 64 58 2 244
Capital expenditure Rm 126 2 5 133
Operating margin % 17,2 (9,8) (31,4) 14,0
Total sale of merchandise Rm 5 482 350 299 6 131
Share of Group sale of merchandise % 89,4 5,7 4,9 100,0
Credit sales Rm 2 922 167 – 3 089
Percentage of total % 53,3 47,8 – 50,4
Cash sales Rm 2 560 183 299 3 042
Percentage of total % 46,7 52,2 100,0 49,6
Number of stores 879 37 36 952
Revenue per store R000 9 364 14 027 8 500 9 513
Number of employees 14 771 948 448 16 167
Revenue per employee R000 557 547 683 560
Instalment sale receivables – gross Rm 6 063 331 6 394
2003
Revenue Rm 5 342 314 310 5 966
Operating income Rm 791 (1) (43) 747
Depreciation Rm 57 2 8 67
Total assets Rm 6 516 497 172 7 185
Total current liabilities Rm 2 222 91 68 2 381
Capital expenditure Rm 72 2 25 99
Operating margin % 14,8 (0,3) (13,9) 12,5
Total sale of merchandise Rm 3 323 194 302 3 819
Share of Group sale of merchandise % 87,0 5,1 7,9 100,0
Credit sales Rm 2 255 112 2 367
Percentage of total % 67,9 57,7 62,0
Cash sales Rm 1 068 82 302 1 452
Percentage of total % 32,1 42,3 100,0 38,0
Number of stores 872 72 34 978
Revenue per store R000 6 126 4 361 9 118
Number of employees 14 096 1 150 492 15 738
Revenue per employee R000 379 273 630
Instalment sale receivables – gross Rm 6 021 571 6 592

Segmental analysis – chains
Southern Africa
Russells Joshua Doore Bradlows Price ’n Pride
2004 2003 2004 2003 2004 2003 2004 2003
Revenue Rm 1 877 1 572 1 353 1 174 702 647 788 642
Operating income Rm 469 313 274 197 123 76 153 84
Depreciation Rm 2 2 2 2 1 1 1 1
Total assets Rm 1 379 1 352 977 968 517 513 699 660
Total current liabilities Rm 257 233 198 184 116 96 87 81
Capital expenditure Rm 2 1 2 2 1 1 1 2
Operating margin % 25,0 19,9 20,3 16,8 17,5 11,7 19,4 13,1
Total sale of merchandise Rm 1 099 912 788 689 454 415 405 331
Share of Group sale of merchandise % 17,9 23,9 12,9 18,0 7,4 10,9 6,6 8,7
Credit sales Rm 841 760 576 533 342 324 372 308
Percentage of total % 76,5 83,3 73,1 77,4 75,3 78,1 91,9 93,1
Cash sales Rm 258 152 212 156 112 91 33 23
Percentage of total % 23,5 16,7 26,9 22,6 24,7 21,9 8,1 6,9
Deposit rate on credit sales % 14,2 12,0 17,2 14,4 18,8 18,5 13,8 13,5
Number of stores 199 198 146 149 84 88 118 117
Revenue per store R000 9 432 7 939 9 267 7 879 8 357 7 352 6 678 5 487
Retail square meterage 141 860 139 002 115 712 116 655 63 131 65 121 71 472 69 726
Revenue per square metre Rand 13 231 11 309 11 693 10 064 11 120 9 935 11 025 9 207
Number of employees 3 109 3 016 2 471 2 430 1 399 1 447 1 947 1 912
Revenue per employee R000 604 521 548 483 502 447 405 336
Instalment sale receivables – gross Rm 1 730 1 684 1 176 1 175 570 574 905 838
Bad debts written off
Bad debts written off as a
Rm 113 95 79 64 23 33 98 67
percentage of gross receivables % 6,5 5,6 6,7 5,4 4,0 5,7 10,8 8,0
Receivables’ arrears
Receivables’ arrears as a
Rm 227 282 116 152 51 63 149 189
percentage of gross receivables % 13,1 16,7 9,9 12,9 8,9 11,0 16,5 22,6
Collection rate % 7,0 6,5 7,1 6,7 8,0 7,5 5,9 5,5
Average length of the book Months 14,3 15,3 14,1 14,9 12,5 13,4 16,9 18,3
* The trading results of 19 stores that were closed in the BLNS countries are included in this analysis up until the date of closure but the number of stores, number of employees
and retail square meterage are not shown at the year end. Accordingly, the calculations for revenue per store, per employee and per square metre are overstated. Also included
in “other” are the 7 stores in Mozambique which the Group is in the process of disposing of. The balance of the stores will be integrated in due course.
† These chains were only consolidated for a 5 month period in 2003, therefore certain calculations have not been presented as it is considered that they would not be meaningful.
‡ Businesses disposed of and closed therefore certain calculations have not been presented.
º Operations to be integrated, disposed of and/or discontinued.
56

Electric Express Morkels Barnetts
Southern Africa
Hi-Fi Corp Other Sub-total
2004 2003 2004 2003 †
2004 2003 †
57
2004 2003 †
2004* 2003 † º 2004 2003
415 363 926 333 655 221 1 798 569 236 135 8 750 5 656
74 55 184 63 136 41 271 73 (19) 25 1 665 927
– 1 2 2 1 2 3 1 6 5 18 17
281 265 675 723 547 500 201 176 241 262 5 517 5 419
63 61 130 120 89 57 158 150 25 54 1 123 1 036
1 1 2 – 1 – 6 1 1 1 17 9
17,8 15,2 19,9 18,9 20,8 18,6 15,1 12,8 (8,1) 18,5 19,0 16,4
248 222 559 194 346 114 1 798 569 135 71 5 832 3 517
4,1 5,8 9,1 5,0 5,6 3,0 29,3 14,9 2,2 1,9 95,1 92,1
164 150 400 145 299 98 95 49 3 089 2 367
66,1 67,6 71,6 74,7 86,4 86,0 70,4 69,0 53,0 67,3
84 72 159 49 47 16 1 798 569 40 22 2 743 1 150
33,9 32,4 28,4 25,3 13,6 14,0 100,0 100,0 29,6 31,0 47,0 32,7
18,1 17,5 13,1 14,4 12,6 12,9 24,3 26,2 15,7
114 114 113 119 100 100 17 15 25 44 916 944
3 640 3 184 8 195 6 550 105 765 9 440 9 552
16 554 16 814 82 602 86 259 55 706 56 085 28 606 25 950 17 427 34 313 593 070 609 925
25 069 21 589 11 210 11 758 62 854 13 542 14 754
736 696 1 716 1 709 1 725 1 727 1 438 1 065 706 735 15 247 14 737
564 522 540 380 1 250 334 574
343 314 771 952 674 696 2 4 223 355 6 394 6 592
13 10 48 24 47 28 33 22 454 343
3,8 3,2 6,2 7,0 14,8 7,1
20 22 84 162 83 168 68 106 798 1 144
5,8 7,0 10,9 17,0 12,3 24,1 30,5 29,9 12,5 17,4
7,4 7,4 7,7 6,4 6,8 6,4 6,8 7,0
13,5 13,5 13,0 15,6 14,7 15,6 14,7 14,3

Segmental analysis – chains continued
58
Abra
Europe
BoConcept Sub-total
2004 2003 2004 ‡ 2003 2004 2003
Revenue Rm 210 209 96 101 306 310
Operating income Rm (17) (8) (77) (35) (94) (43)
Depreciation Rm 2 2 4 6 6 8
Total assets Rm 62 74 – 98 62 172
Total current liabilities Rm 46 37 – 31 46 68
Capital expenditure Rm 4 4 1 21 5 25
Operating margin % (8,1) (3,8) (80,2) (34,7) (30,7) (13,9)
Total sale of merchandise Rm 206 205 93 97 299 302
Share of Group sale of merchandise % 3,4 5,4 1,5 2,5 4,9 7,9
Credit sales Rm
Percentage of total %
Cash sales Rm 206 205 93 97 299 302
Percentage of total % 100,0 100,0 100,0 100,0 100,0 100,0
Deposit rate on credit sales %
Number of stores 36 26 8 36 34
Revenue per store R000 5 833 8 038 12 625 8 500 9 118
Retail square meterage 31 405 26 684 7 012 31 405 33 696
Revenue per square metre Rand 6 687 7 832 14 404 9 744 9 200
Number of employees 448 394 98 448 492
Revenue per employee R000 469 530 1 031 683 630
Instalment sale receivables – gross Rm
Bad debts written off
Bad debts written off as a percentage
Rm 3 3
of gross receivables %
Receivables’ arrears
Receivables’ arrears as a percentage of
Rm
gross receivables %
Collection rate %
Average length of the book Months
* The trading results of 19 stores that were closed in the BLNS countries are included in this analysis up until the date of closure but the number of stores, number of employees
and retail square meterage are not shown at the year end. Accordingly, the calculations for revenue per store, per employee and per square metre are overstated. Also included
in “other” are the 7 stores in Mozambique which the Group is in the process of disposing of. The balance of the stores will be integrated in due course.
† These chains were only consolidated for a 5 month period in 2003, therefore certain calculations have not been presented as it is considered that they would not be meaningful.
‡ Businesses disposed of and closed therefore certain calculations have not been presented.
º Operations to be integrated, disposed of and/or discontinued.

Corporate Group
2004 2003 2004 2003
9 056 5 966
(306) (137) 1 265 747
70 42 94 67
2 160 1 594 7 739 7 185
1 075 1 277 2 244 2 381
111 65 133 99
14,0 12,5
6 131 3 819
100,0 100,0
3 089 2 367
50,4 62,0
3 042 1 452
49,6 38,0
15,7
952
9 513
978
624 475
14 502
643 621
472 509 16 167
560
15 738
6 394 6 592
208 665 343
10,4
798 1 144
12,5 17,4
7,0
14,3
59

Share incentive trusts
60
2004 2003
The JD Group Employee Share Incentive Scheme Number of shares
Shares available
At beginning of year 7 670 028 1 947 409
Additional shares made available to the directors in terms of the scheme 7 123 590 8 972 719
Options granted (3 115 000) (3 360 000)
Options forfeited 98 750 109 900
At end of year 11 777 368 7 670 028
Share options granted
At beginning of year 14 266 800 11 280 480
Options granted 3 115 000 3 360 000
Options forfeited (98 750) (109 900)
Options exercised (3 260 418) (263 780)
At end of year 14 022 632 14 266 800
Number of participants 170 195
Shares available for utilisation
At beginning of year 158 894 200
At acquisition adjustment (acquired from Profurn share trust) 223 611 –
Issued to the trust 5 170 000 422 474
Options exercised (3 260 418) (263 780)
At end of year 2 292 087 158 894
Rm Rm
Amount owing by employees to the Trust – –
Loan by the Company to the Trust 60 2
Fair value of shares 104 5
2004 2003
The JD Group Limited Share Incentive Trust Number of shares
Shares available for utilisation
At beginning of year 638 309 638 309
Issued 353 353
Held under options granted 637 956 637 956
Options exercised (64 000) –
At end of year 574 309 638 309
Issued 353 353
Held under options granted 573 956 637 956
Number of participants 8 9
Rm Rm
Amount owing by employees to the Trust – –
Loan by the Company to the Trust 6 10
Fair value of shares 26 20

Salient features of The JD Group Employee Share Incentive Scheme trust deed
1. Purpose
The JD Group Employee Share Incentive Scheme which was approved by the directors on 29 March 1996, amended by special resolution
on 31 January 2001 and amended again on 11 August 2003, is intended as an incentive to current and future employees (including
executive and non-executive directors) of JD Group to render services to the Company by giving them the opportunity to acquire
ordinary shares enabling them to share in the wealth of the Company.
2. Option price
The price per share payable by a participant upon the exercise of share options in terms of this scheme, shall be an amount equal to
90% of the closing price at which shares of the Company are traded at the close of business on the JSE on the trading day immediately
preceding the date upon which the board will have resolved to grant, or direct the trustees to grant, the relevant option.
Each share option shall confer the right on the holder thereof to subscribe for or purchase one share at the option price.
3. Exercise of share options
Share options may not be exercised, until after a period, calculated from the date of acceptance of the offer as follows:
3.1 more than two years shall have elapsed, in which event not more than 25%;
3.2 more than three years shall have elapsed, in which event not more than 50%, cumulatively;
3.3 more than four years shall have elapsed, in which event not more than 75%, cumulatively; and
3.4 more than five years shall have elapsed, in which event all of the relevant share options may be exercised, but within seven years,
provided that the board may, subject to the lapsing of a share option, permit exercise dates contemplated above to be anticipated
or postponed to such other date/s and to the extent determined by the board.
4. Share options granted
Price
Number of
shares at
Date of grant (cents) 31 August 2004
24 June 1996 1 879 173 532
28 August 1996 1 785 1 000
20 August 1997 2 763 61 000
5 November 1997 2 763 30 000
2 February 1998 2 932 12 000
2 September 1998 1 403 92 600
1 June 1999 2 809 50 000
4 October 1999 2 907 355 900
25 May 2000 2 984 2 950 000
22 November 2000 2 848 1 205 000
2 May 2001 2 720 800 000
30 July 2001 2 962 200 000
30 May 2002 1 428 1 646 600
20 February 2003 1 619 1 880 000
25 July 2003 2 342 180 000
10 September 2003 2 803 1 270 000
25 February 2004 3 690 775 000
19 May 2004 3 510 2 340 000
61
14 022 632

Salient features of The JD Group Employee Share Incentive Scheme trust deed continued
5. The JD Group Limited Share Incentive Trust
JD Group currently has two share incentive schemes in operation, namely the scheme referred to in paragraphs 1 to 4 above and
Jodtrust.
No further shares will be made available to Jodtrust.
The following share options have been granted in respect of issued shares:
Price
Number of
shares at
Date of grant (cents) 31 August 2004
4 October 1999 3 418 573 956
These options become exercisable as follows:
On or after 5 October 2002 107 591
On or after 5 October 2003 107 591
On or after 5 October 2004 358 774
62
573 956
The JD Group Employee Share Incentive Scheme has effectively replaced Jodtrust and accordingly the salient features of the latter have
not been disclosed.
6. Dividends and voting rights
Dividends in respect of shares held in terms of the credit sale scheme are payable to the trust and are credited to the participant’s loan
account until such time as the shares have been paid for in full by the participant, whereafter the dividends accrue and are paid to the
participant.
Voting rights in respect of shares held in terms of the credit sale scheme vest with the trustees, until such time as the shares have been
paid for in full by the participant.
7. Principal terms of loans
7.1 Loans between the company and the trust:
Loans bear interest at rates agreed to between the trustees and the Company from time to time.
7.2 Loans between the trust and participants:
Loans bear interest at rates determined to by the trustees from time to time.

63
JD Group Limited – company financial statements
The Company operates as an investment holding company only. All trading and banking is conducted through its wholly owned subsidiaries.
Consequently, no cash flow statement is presented. The statement of changes in equity has not been prepared as the movement is evident
from the Company income statement and Group statement of changes in equity.
2004 2003
Note Rm Rm
Income statement
Dividend received from JDG Trading (Pty) Ltd 524 265
Interest received 1 –
Revaluation of investment 1 149 89
Net income before taxation 674 354
Taxation – secondary taxation on companies (deferred) 29 6
Net profit after taxation 645 348
Retained income brought forward 249 61
894 409
Distribution to shareholders 415 160
Retained income carried forward 479 249
2004 2003
Note Rm Rm
Balance sheet
Assets
Investment in JDG Trading (Pty) Ltd
– shares at cost 55 55
– forward subscription of shares 1 819 718
Loan to JDG Trading (Pty) Ltd 2 1 242 1 048
Interest in subsidiary company – JDG Trading (Pty) Ltd 2 116 1 821
Investment – unlisted 3 446 –
Deferred taxation – STC credit 14 –
Share incentive trusts 66 12
Bank balances 36 307
2 678 2 140
Equity and liabilities
Share capital and premium 1 903 1 778
Retained income 479 249
Shareholders for dividend 258 113
Shareholders’ equity 2 640 2 140
Other net liabilities 38 –
2 678 2 140
Notes
1. Investments with a guaranteed maturity valuation are written up over the life of the investment to the guaranteed value. This forward
subscription will be settled by the issue of shares in JDG Trading (Pty) Ltd to the value of R1 036 million on 29 June 2006.
2 The loan to JDG Trading (Pty) Ltd is interest free with no fixed date of repayment.
3. The directors’ valuation represents the fair value as stated.

Subsidiaries
Direct subsidiary
JDG Trading (Pty) Ltd *
64
Percentage interest held
Country of 2004 2003
Notes incorporation % %
South Africa 100 100
Indirect subsidiaries
Courts Megastore (Pty) Ltd *
South Africa 100 100
JD Group Asset Financing (Pty) Ltd †
South Africa 100 100
JD Group International (Pty) Ltd ‡
South Africa 100 100
Profurn Limited ‡
South Africa 100 100
Protea Furnishers S.A. (Pty) Ltd *
South Africa 100 100
Supreme Furnishers (Pty) Ltd ‡
South Africa 100 100
JD Group Europe BV ø
The Netherlands 100 100
Abra SA *
Poland 100 100
Cookshore One Limited 4 United Kingdom 100 100
Cookshore Two Limited 5 United Kingdom 100 100
Cookshore Three Limited 6 United Kingdom 100 100
Aazad Electrical Construction (Pty) Ltd *
Botswana 100 100
Barnetts (Botswana) (Pty) Ltd *
Botswana 100 100
Hi Fi and Electric Warehouse (Pty) Ltd *
Botswana 100 100
JD Group (Botswana) (Pty) Ltd *
Botswana 100 100
JD Group (Lesotho) (Pty) Ltd *
Lesotho 100 100
Supreme Furnishers (Lesotho) (Pty) Ltd *
Lesotho 100 100
Profurn (Moçambique) Limitada *
Mozambique 100 100
JD Group (Namibia) (Pty) Ltd *
Namibia 100 100
Protea Furnishers (Namibia) (Pty) Ltd *
Namibia 100 100
Barnetts (Swaziland) (Pty) Ltd *
Swaziland 100 100
JD Group (Swaziland) (Pty) Ltd *
Swaziland 100 100
Non-consolidated subsidiaries
Supreme Furnishers (Ghana) Limited 7 Ghana 100
Global Regency International Limited 7 Hong Kong 100
Supreme Furnishers Cote D’Ivoire SARL 7 Ivory Coast 100
Supreme Furnishers (Kenya) Limited 7 Kenya 100
Supreme Furnishers Limited 8 Malawi 100
Finserve Mauritius Limited Mauritius 100 100
Prosure Insurance Limited Mauritius 100 100
Supreme Furnishers (Namibia) (Pty) Ltd Namibia 100 100
Secureco 3 (Pty) Ltd Namibia 100
Supreme Furnishers (T) Limited 7 Tanzania 100
Supreme Furnishers (U) Limited 7 Uganda 100
Supreme Furnishers (Zambia) Limited 7 Zambia 100
Notes
1. All the above are unlisted companies.
2. Activities of subsidiaries
* Retailers of household furniture, appliances and home entertainment products
† Asset financing company
‡ Investment holding company
ø European investment holding company
3. A list of dormant and name protection companies is available for inspection by members at the registered office of the Company.
4. Previously BoConcept UK Limited – placed in voluntary liquidation, 29 October 2004.
5. Previously BoConcept Bournemouth Limited.
6. Previously BoConcept Tottenham Court Road Limited.
7. Company being deregistered/liquidated.
8. Company sold.

Issued share capital Shares
Direct interest of holding company
Indebtedness
2004 2003 2004 2003 2004 2003
Currency* Currency* Rm Rm Rm Rm
600 000 600 000 55 55 1 242 1 048
1 000 1 000
200 200
11 11
1828 065 436 •
1828 065 436 •
30 000 30 000
224 224
18 151 #
18 151 #
43 061 850 22 489 320
7 339 954 7 339 954
2 2
250 000 250 000
100 100
10 10
100 100
100 100
100 100
1 000 1 000
842 500 000 842 500 000
100 100
1 1
200 200
2 2
1
9 998
5 100
1
1
1 1
100 000 100 000
1 1
1 000
1
1
179
* Reflected in local currency (Mauritius in USD)
• Stated capital
# Reflected in €
65

Analysis of shareholders – 30 September 2004
Number of % of Number of % of
shareholders total shares total
Geographic location of shareholders
South Africa 130 619 417 75
United States of America 17 046 148 10
United Kingdom 8 345 106 5
Netherlands 4 725 535 3
Namibia 3 247 791 2
Luxembourg 1 620 509 1
Other 6 395 494 4
66
172 000 000 100
Size of holding
1 – 1 000
1 001 – 5 000
5 001 – 10 000
4 074
888
153
71
15
3
1 319 428
2 005 424
1 133 392 }
2
10 001 – 50 000 321 6 8 045 364 5
Over 50 000 311 5 159 496 392 93
5 747 100 172 000 000 100
Category of shareholders
Pension funds 67 407 945 39
Insurance companies 32 673 638 19
Unit trusts 26 520 929 15
Other companies and corporate bodies 24 476 726 14
Other managed funds 8 745 727 5
Individuals 8 010 724 5
Share incentive schemes 2 866 396 2
Investment trusts 1 297 915 1
172 000 000 100
Non-public shareholders
(included above)
Directors 6 – 427 856 –
Protea Furnishers S.A. (Pty) Ltd 1 – 421 941 –
Pension Fund 1 – 13 600 –
Share incentive schemes 2 – 2 866 396 –
10 3 729 793
Registration
Materialised 427 7 608 706 1
Dematerialised 5 320 93 171 391 294 99
5 747 100 172 000 000 100
To the best of the Company’s knowledge,
the entities which control in excess of 5%
of the Company’s equity are: % held
Old Mutual Asset Managers 32 527 790 19
STANLIB Asset Management 24 249 233 14
Investec Asset Management 14 403 482 9
RMB Asset Management 14 357 320 8
Sanlam Investment Management 12 213 295 7
97 751 120 57

67
Notice to shareholders
Notice is hereby given that the annual general meeting of shareholders will be held in the boardroom, 11th Floor, JD House, 27 Stiemens
Street, Braamfontein, on Wednesday, 9 February 2005, at 09:00 to conduct the following business:
1. Ordinary resolution number 1: The adoption of the annual financial statements
To receive and adopt the annual financial statements of the Group and the Company for the financial year ended 31 August 2004,
including the directors’ report and the report of the independent auditors contained therein.
2. Ordinary resolution number 2: The re-election of directors
To elect the following directors:
2.1 IS Levy
2.2 M Lock
2.3 MJ Shaw
2.4 JHC Kok
who, in terms of the Company’s articles of association, retire by rotation at the annual general meeting, but, being eligible, offer
themselves for re-election.
Such re-elections are to be voted on individually unless a resolution is agreed to by the meeting (without any vote against it) that a single
resolution be used.
An abbreviated curriculum vitae in respect of each director offering themselves for re-election is set out on pages 10 and 12 of book 2.
3. Ordinary resolution number 3: The renewal of the authority that all the unissued shares be placed under the control of the directors
To renew the authority that all the unissued shares in the capital of the Company be placed under the control of the directors at their
discretion until the next annual general meeting of the Company in respect of a maximum of ten million shares (equivalent to 6% of the
Company’s current issued share capital) as a general authority in terms of section 221(2) of the Companies Act, 1973 (Act 61 of 1973),
as amended (“the Act”), subject to the provisions of the Act and the Listing Requirements of the JSE Securities Exchange South Africa
(“JSE”) and the Listing Requirements of the Namibian Stock Exchange.
4. Ordinary resolution number 4: The re-appointment of the independent auditors
Resolved that Deloitte & Touche be re-appointed as independent auditors of the Company for the ensuing period terminating on the
conclusion of the next annual general meeting of the Company and to authorise the directors to fix the auditors’ remuneration for the
past year.
5. Ordinary resolution number 5: General authority to issue shares for cash
Resolved that pursuant to the Articles of Association of the Company and subject to the Act, and the Listing Requirements of the JSE,
the directors of the Company be and are hereby authorised, by way of a general authority, to allot and issue ordinary shares for cash on
the following basis:
5.1 this authority shall not extend beyond the later of the date of the next annual general meeting of the Company or the date of the
expiry of 15 months from the date of the annual general meeting;
5.2 a press announcement giving full details, including the impact on the net asset value, net tangible asset value per share, earnings
per share and headline earnings per share, will be published at the time of any issue representing, on a cumulative basis within one
financial year, five percent or more of the number of shares in issue prior to the issue;
5.3 issues in the aggregate in any one financial year may not exceed 15% of the number of the shares in the Company’s issued share capital;
5.4 the maximum discount at which ordinary shares may be issued is 10% of the weighted average traded price of those shares over
the 30 business days prior to the date that the price of the issue is determined or agreed by the directors of the Company; and
5.5 any such issue will only be made to “public shareholders” as defined by the Listing Requirements of the JSE, and not to related parties.
In terms of the Listing Requirements of the JSE, a 75% majority is required of votes cast by shareholders present or represented by proxy
at the annual general meeting at which this ordinary resolution is to be considered.

Notice to shareholders continued
6. Special resolution: The authority to repurchase shares
Resolved that the Company (or one of its wholly owned subsidiaries) may, subject to the Companies Act (Act 61 of 1973), as amended,
and the Listing Requirements of the JSE Securities Exchange South Africa (“JSE”), acquire shares issued by itself or shares in its holding
company, as and when deemed appropriate, subject to the following limitations:
6.1 that the repurchase of shares be effected through the order book operated by the JSE trading system and be done without any prior
understanding or arrangement between the Company and the counterparty;
6.2 that this authority shall not extend beyond 15 months from the date of this resolution or the date of the next annual general
meeting, whichever is the earlier date;
6.3 that an announcement be made giving such details as may be required in terms of the Listing Requirements of the JSE when the Company
has cumulatively repurchased 3% of the initial number (the number of that class of share in issue at the time that the general authority
is granted) of the relevant class of securities and for each 3% in aggregate of the initial number of that class acquired thereafter;
6.4 at any one time, the Company may only appoint one agent to effect any repurchase;
6.5 the repurchase of shares will not take place during a prohibited period and will not affect compliance with the shareholders’ spread
requirements as laid down by the JSE;
6.6 the repurchase of shares shall not, in the aggregate, in any one financial year, exceed 20% of the Company’s issued share capital at
the time this authority is given; and
6.7 the repurchase of shares may not be made at a price greater than 10% above the weighted average traded price of the market value
of the shares as determined over the five business days immediately preceding the date on which the transaction was effected.
The reason for this special resolution is, and the effect thereof will be to grant, in terms of the provisions of the Act and the Listing
Requirements of the JSE, and subject to the terms and conditions embodied in the said special resolution, a general authority to the
directors to approve the acquisition by the Company of its own shares, or by a subsidiary of the Company of the Company’s shares.
At the present time the directors have no specific intention with regard to the utilisation of this authority, which will only be used if the
circumstances are appropriate.
Disclosures required in terms of the Listing Requirements of the JSE Securities Exchange South Africa (“JSE”)
In terms of the Listing Requirements of the JSE, the following disclosures are required with reference to the repurchase of the Company’s
shares as set out in the Special Resolution above:
In terms of the Listing Requirements of the JSE, the following disclosures are required when requiring shareholders’ approval to:
authorise the Company, or any of its subsidiaries, to repurchase any of its shares or the shares in its holding company (as set out in Special
Resolution above); and
the general authority to issue shares for cash (as set out in Ordinary Resolution number 5).
Working capital statement
The directors are of the opinion that, after considering the effect of the maximum repurchase permitted and that maximum general payments
to shareholders, for a period of 12 months after the date of this notice of annual general meeting:
the Company and the Group will be able, in the ordinary course of business, to pay its debts;
the assets of the Company and the Group will be in excess of the liabilities of the Company and the Group, recognised and measured in
accordance with the accounting policies used in the latest annual financial statements;
the share capital and reserves of the Company and the Group will be adequate for ordinary business purposes; and
the working capital resources of the Company and the Group will be adequate for ordinary business purposes.
Litigation statement
Other than disclosed or accounted for in these financial statements, the directors of the Company, whose names are given on page 70 of
these annual financial statements, are not aware of any legal or arbitration proceedings, pending or threatened against the Group, which
may have or have had, in the 12 months preceding the date of this notice of annual general meeting, a material effect on the Group’s
financial position.
Directors’ responsibility statement
The directors, whose names are given on page 70 of these financial statements, collectively and individually, accept full responsibility for the
accuracy of the information pertaining to the above special resolution and certify that to the best of their knowledge and belief there are no
facts that have been omitted which would make any statement false or misleading, and that all reasonable enquiries to ascertain such facts
have been made and that the above special resolution contains all information required.
68

Material changes
Other than the facts and developments reported on in these annual financial statements, there have been no material changes in the affairs,
financial or trading position of the Group since the signature date of this annual report and the posting date thereof.
The following further disclosures required in terms of the Listing Requirements of the JSE are set out in accordance with the reference pages
in these annual financial statements of which this notice forms part:
Directors and management (page 70)
Major shareholders of the Company (page 66)
Directors’ interest in the Company’s shares (pages 17 and 22)
Share capital (page 47)
Voting and attendance
Certified shareholders and uncertified shareholders with “own name” registration
Shareholders wishing to attend the annual general meeting have to ensure beforehand with the transfer secretaries of the Company that
their shares are in fact registered in their name. Should this not be the case and the shares are registered in another name, or in the name
of a nominee company, it is incumbent on shareholders attending the meeting to make the necessary arrangements with that party to be
able to attend and vote in their capacity.
A shareholder entitled to attend and vote at the annual general meeting is entitled to appoint a proxy or proxies to attend, speak and, on a
poll, vote in his/her stead. A proxy need not be a shareholder of the Company.
For the convenience of registered shareholders of the Company, a form of proxy is enclosed herewith, containing detailed instructions in
this regard.
Uncertificated shareholders other than with “own name” registration
Beneficial owners of dematerialised shares who wish to attend the annual general meeting have to request their Central Securities Depository
Participant (“CSDP”) or broker to provide them with a letter of representation, or they must provide the CSDP or broker with their voting
instructions in terms of the relevant custody agreement entered into between them and the CSDP or broker.
Proxies
The instrument appointing a proxy and the authority (if any) under which it is signed must reach the transfer secretaries of the Company at
the address given on the proxy form, by no later than 09:00 on Monday, 7 February 2005.
On a poll, ordinary shareholders will have one vote in respect of each share held.
By order of the board
MI JAYE CA(SA)
Company secretary
25 November 2004
JD Group Limited
(Registration number 1981/009108/06)
JSE code: JDG NSX code: JDL
ISIN code: ZAE000030771
69

Directorate and administration
JD Group Limited
Registration number: 1981/009108/06
JSE code: JDG NSX code: JDL
ISIN code: ZAE 000030771
Executive directors
ID Sussman BCom (executive chairman)
HC Strauss (chief executive officer)
JL Bezuidenhout BCom LLB
JHC Kok (appointed 1 March 2004)
G Völkel BAcc CA(SA)
Independent non-executive directors
ME King SC BA LLB (cum laude) HDip Tax Law
Dr D Konar BCom HDip Acc MAS Cert Tax Law DCom CA(SA)
M Lock BCom CA(SA)
MJ Shaw CA(SA)
Non-executive director
IS Levy Dip Law
JDG Trading (Pty) Ltd
Registration number: 1958/003362/07
Directors
ID Sussman BCom (executive chairman)
HC Strauss (chief executive officer)
AW Beeforth BCom CA(SA)
BR Behrens **
JL Bezuidenhout BCom LLB
IR Child BCom(Hons) BAcc CA(SA) **
JB Gibson **
F Ginsberg
VG Horn
JHC Kok
AJ Maré **
LM Mentor IPM Dip CPIR **
A Neven
MJ Richards * CA(SA) ACA
LT Rundle BTech **
W van der Westhuizen **
LP van Doesburgh BCompt **
G Völkel BAcc CA(SA)
Secretary and registered office
MI Jaye CA(SA)
11th Floor, JD House
27 Stiemens Street
Braamfontein, 2001
PO Box 4208, Johannesburg, 2000
Telephone +27 11 408 0408
Facsimile +27 11 408 0604
E-mail info@jdg.co.za
Internet website http://www.jdg.co.za
Audit committee
ME King (chairman)
Dr D Konar
MJ Shaw
Nominations committee
IS Levy (chairman)
ME King
Dr D Konar
ID Sussman
Remuneration committee
IS Levy (chairman)
ME King
Dr D Konar
MJ Shaw
ID Sussman
70
Risk management committee
Dr D Konar (chairman)
JHC Kok
PJ Pienaar BCom
MJ Richards *
MJ Shaw
G Völkel
Independent auditors
Deloitte & Touche
Private Bag X6
Gallo Manor
2052
Bankers
Absa Bank Limited
Nedbank, a division of Nedcor Bank Limited
Standard Corporate and Merchant Bank, a division
of The Standard Bank of South Africa Limited
FNB Corporate, a division of FirstRand Bank Limited
Attorneys
Feinsteins
(Levy, Feinsteins & Associates Incorporated)
Sponsor
South Africa
Lead sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
BJM House, 2nd Floor, 5 Sturdee Avenue
Rosebank, Johannesburg, 2196
Telephone +27 11 283 0300
Facsimile +27 11 283 0309
Co-sponsor
PSG Capital Limited
Building No 8, Woodmead Estate, 1 Woodmead Drive
Woodmead, Sandton, 2157
Telephone +27 11 797 8400
Facsimile +27 11 797 8435
Namibia
Simonis Storm Securities (Pty) Ltd
152 Robert Mugabe Avenue, Windhoek
Telephone +264 61 254 194
Facsimile +264 61 254 193
Transfer secretaries
South Africa
Computershare Investor Services 2004 (Pty) Ltd
Telephone +27 11 370 5000
Facsimile +27 11 370 5663
Namibia
Transfer Secretaries (Pty) Ltd
Shop 12, Kaiserkrone Centre, Post Street Mall, Windhoek
Telephone +264 61 227 647
Facsimile +264 61 248 531
ADR Depository
File number 82-4401
The Bank of New York Company, Inc.
One Wall Street, New York
NY 10286
United States of America
Telephone +1 888 269 2377
* British
** Resigned 1 September 2004

JD Group Limited
(Registration number 1981/009108/06)
JSE code: JDG NSX code: JDL
ISIN code: ZAE000030771
(“the Company”)
FOR USE BY CERTIFICATED SHAREHOLDERS AND UNCERTIFICATED SHAREHOLDERS WITH “OWN NAME” REGISTRATION
ATTENDING THE ANNUAL GENERAL MEETING TO BE HELD ON 9 FEBRUARY 2005
I/We
Of
71
Form of proxy
being a member/members of JD Group Limited and entitled to votes, hereby appoint
1. or failing him/her
2. or failing him/her
3. the chairman of the meeting as my/our proxy to act for me/us at the annual general meeting, which will be held at the registered office of
the Company, 11th Floor, JD House, 27 Stiemens Street, Braamfontein, on Wednesday, 9 February 2005, at 09:00 for the purpose of
considering and, if deemed fit, passing with of without modification, the ordinary resolutions to be proposed thereat and at each
adjournment thereof, to vote for or against the resolutions with or without modification, or to abstain from voting thereon in respect of the
ordinary shares in the issued capital of the Company registered in my/our name/s in accordance with the following instruction (see note 3).
Each shareholder is entitled to appoint one or more proxies (whether a shareholder/s of the company or not) to attend, speak and to vote
at the meeting in his/her stead.
Ordinary resolution number 1
Adoption of the annual financial statements
Ordinary resolution number 2
Re-election of the following directors:
Number 2.1 IS Levy
Number 2.2 M Lock
Number 2.3 MJ Shaw
Number 2.4 JHC Kok
Ordinary resolution number 3
Authority to place unissued shares under the control of the directors
Ordinary resolution number 4
Re-appointment of independent auditors
Ordinary resolution number 5
General authority to issue shares for cash
Special resolution
General authority to repurchase shares
Number of JD Group shares
In favour Against Abstain
Signed at on 2004/2005
Member
Please read the instructions on the reverse side of this form of proxy.

Form of proxy – Instructions
1. On a poll a shareholder is entitled to one vote for each share held.
2. Forms of proxy must be lodged at, posted to or faxed for attention to the Transfer Secretaries (+27 11 688 5221), Computershare Investor
Services 2004 (Pty) Ltd, 70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107), to reach the Company at least
48 hours before the meeting (excluding Saturdays, Sundays and public holidays).
3. A shareholder may insert the name of a proxy or the names of two alternative proxies of the shareholder’s choice in the space/s provided,
with or without deleting the words “the chairman of the annual general meeting”. Any such deletion must be individually initialled by the
shareholder, failing which they will not have been validly effected. The person present at the annual general meeting whose name
appears first on the form of proxy and has not been deleted will be entitled to act as proxy to the exclusion of the persons whose
names follow.
4. Any alteration or correction to this form of proxy has to be initialled by the relevant signatory/ies.
5. Each shareholder is entitled to appoint one or more proxies (who need not be a shareholder/s of the Company) to attend, speak and
vote (either on a poll or by show of hands) in place of that shareholder at the annual general meeting.
6. Voting instructions for each of the resolutions must be completed by filling the number of votes (one per ordinary share) under the “In
favour”, “Against” or “Abstain” headings on the form of proxy. If no instructions are filled in on the form of proxy, the chairman of the
annual general meeting, if the chairman is the authorised proxy, or any other proxy shall be authorised to vote in favour of, against or
abstain from voting as he/she deems fit.
7. A shareholder or his/her proxy is entitled but not obliged to vote in respect of all the ordinary shares held by the shareholder. The total
number of votes for or against the ordinary and special resolutions and in respect of which any abstention is recorded may not exceed
the total number of shares held by the shareholder.
8. Documentary evidence establishing the authority of a person signing this form must be attached to this form of proxy unless previously
recorded by the transfer secretaries of the Company or waived by the chairman of the annual general meeting.
9. This form of proxy is to be completed only by those shareholders who either still hold shares in a certificated form, or whose shares are
recorded in their “own name” in dematerialised electronic form in the sub-register.
10. Shareholders whose dematerialised shares are held in the name of a nominee and wish to attend the annual general meeting must
contact their Central Securities Depository Participant (“CSDP”) or broker who will furnish them with the necessary letter of authority to
attend the annual general meeting. Alternatively, they have to instruct their CSDP or broker as to how they wish to vote. This has to be
done in terms of the agreement between the shareholder and the CSDP or the broker.
11. Uncertificated shareholders other than with “own name” registration who wish to attend and vote at the meeting must ensure that their
letters of authority from their CSDP or broker reach the transfer secretaries not later than 09:00 on Monday, 7 February 2005.
12. The completion and lodging of this form of proxy does not preclude the relevant shareholder from attending the annual general meeting
and speaking and voting in person to the exclusion of any proxy appointed by the shareholder.
13. The chairman of the annual general meeting may accept or reject any form of proxy which is completed and/or received other than in
accordance with these instructions, provided that he shall not accept a proxy unless he is satisfied as to the manner in which a
shareholder wishes to vote.
Transfer secretaries’ office
Computershare Investor Services 2004 (Pty) Ltd
70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
72

Shareholders’ diary
Financial year end 31 August
Interim report for half year Published April
Announcement of annual results Published November
Annual financial statements Published December
Annual general meeting 9 February 2005
Interim dividend declaration Declared April
Final dividend declaration Declared November
Maxx New Media
Concept and design
GRAPHICOR 31289

www.jdg.co.za