Trustco Group Holding

The year under review has been an extraordinarily eventful year, not only for the Trustco Group of companies, but for the world at large. The United States’ historic Presidential Election, the global financial crisis and the subsequent collapse of many long-standing firms were only some of the global events that shaped the past year. Closer to home, the floods in northern Namibia challenged the governments’ response capacity and left both individuals and businesses struggling for their livelihood. It is with this global and local environment in mind, that this report is presented.

As has been reported many times before, the Group’s main focus is the generation of shareholder's wealth. With that in mind, we, the board, in consultation with management, have embarked on a rather ambitious five year strategy to increase our market capitalization to N$ 5 billion. A vital first step in this plan was to create additional visibility in our shares, a goal that was greatly boosted by the dual primary listing on the Africa Board of the JSE. This move will also allow for greater ease in capital raising in future, so as to fund our continual expansion into the African continent.

Trustco has, over the years, become known as one of the most innovative companies in the Namibian market, with exceptional returns year after year. This can be attributed to our unconventional approach to human capital development and leadership. Our growth (despite the less-than-favourable market conditions) stands as a testament and vindication of this approach, and I believe it will continue to serve us well into the foreseeable future. Our products, all with a strong social justice undertone, should prove resilient and will continue to provide a sustainable service to our stakeholders i.e. clients, business partners and employees.

Trustco is a true Namibian initiative, providing for the insurance, educational and financial needs of over a quarter million individuals in Namibia alone. The scope of an operation such as ours belies its ultimate complexity, which our conscientious board and our extraordinary management team handle with ease. However, despite strong leadership, none of our accomplishments would be possible without the energy and creativity exhibited by our over 650 employees, or without the support of our stakeholders. On behalf of the Board of Directors and on my own behalf I would like to record my appreciation to them.

As could be seen throughout the year, massive changes in our socio-economic system can happen quite suddenly, and without warning. While the events of the past year can be seen as a sharp critique of a capitalist society, we of the Board believe that he actions of a few, rogue companies can serve to vilify even those who had no hand in it. Despite the negativity and loss of onfidence in businesses around the globe, Trustco will stand strong, unapologetically, as an example of the free market that creates employment, serves as the originator of the tax base that funds our democracy and creates a safe haven for the most disadvantaged of our society.

With this in mind, the board believes in the revolutionary new product that we have in Trustco Mobile, and that it will serve as a strong base for our expansion into the African continent. Despite the setbacks experienced globally, we are of the opinion that management has been sufficiently prudent in their actions, and we thus believe that organic growth will continue apace during the 2010 financial year.