BDC Financial Results for the Year ended 30th June 2007

Botswana Development Corporation Limited has once again performed very well for the year ended 30th June 2007. The Corporation has recorded a profit before tax of P96.9 million against last years achievement of P88.1 million. This is 10% better than the previous year. This commendable increase is achieved despite the modest growth in turnover of 4% which took the Corporation to P140.8 million. The Corporation on the other hand has overall expenses averaging at P62 million for the past two years despite the high inflation rate in these years. This, once again, demonstrates the importance the Corporation places on cost control and the efficient utilization of resources at its disposal.

Overall, the Corporation’s investment portfolio has grown from P1.20 billion to P1.32 billion, an improvement of 9% over the previous year. Additional equity acquired amounted to P71.7 million while the Corporation disbursed P30.5 million during the year in loans. Of the disbursements, P10.2 million went to Agribusiness and Services projects, P16.6 million to Property Development projects and the bulk of P75.4 million to Manufacturing projects.

The Corporation and its Group Companies have recorded even more robust performance during the year. The group revenues grew by a substantial 12.3% from P247.6 million in 2006 to P278.1 million in 2007. This growth has been accompanied by an unprecedented achievement in Group Net Profits after Tax of P211.9 million, compared to P57.6 million of the previous year and translating to a massive 267% movement. These profits include a P137.1 million resulting from the fair valuation investment properties.

Future Prospects

The year under review forms the final year of the Corporation's three year Strategic Plan (2004-2007). The Corporation has achieved and exceeded its set targets and is confident that further growth will be achieved on the back of good investments made in the past few years and those still in the pipeline. The Corporation has developed a four year Strategic Plan that covers the period 2007-2011. This Strategy will see the Corporation getting more involved in large scale developmental projects, Public Private Partnerships and Infrastructure development.

Governance

The Board of Directors continues to recognize the need to conduct the business of the Corporation with integrity and in accordance with generally accepted practices and endorses the internationally accepted principles of corporate governance and public responsibility.

Declaration of 2007 Dividend

The Corporation has declared a dividend amounting to P19.8 million for the year ended 30 June 2007 to the shareholders. Last year, BDC paid a Dividend of P18.05 Million to the shareholders. The corporation’s only share holder is the government of Botswana.

BDC limited continues to contribute to economic diversification and job creation by financing and investing in sound business ventures.