1

2. Emerging With Definition 4. Locations / Addresses 5. Shareholders 6. Directors and Advisers 7. The Board

8. Chairman’s Statement 14. The CEO’s Review 17. The Executive Managemnt 18. The FSDH Culture

20. Update on Information Technology 21. The FSDH Persons of the Year 22. The FSDH Group Subsidiaries.

25. Corporate Social Responsibility 27. The Accounts

Contents

A pessimist sees the difficulty in everyopportunity; an optimist sees theopportunity in every difficulty…Winston Churchill

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Emerging With Definition...

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The recent global financial crisis has necessitated a re -appraisal of systems, structuresand values.

How do we ensure that our systems, structures and values are such that wecontinue to create value to our clients? What systems and structures have we putin place to ensure that risks are identified, and avoided before they crystallize ormitigated where they can’t be completely avoided?

This process is not entirely new to us at FSDH as we have continuously striven tokeep our eyes on the ball. However, we have also learnt new lessons from the recentturmoil in the domestic and international financial markets.

The financial services sector worldwide is currently undergoing major restructuring.All participants are conscious of the fact that there are lessons to be learnt from theturbulence of the recent past. The winners are likely to be those institutions thatlearn these lessons quickly and promptly internalize them so as to be in a position toidentify and exploit the business opportunities that are consistent with a regime ofstrict risk management.

At FSDH we are confident that our history as well as the steps we are currentlytaking will ensure that we EMERGE WITH DEFINITION of our goals and aspirationsregarding our systems, structures and processes in a manner that will enhance valueto our clients and other stakeholders..

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HEAD OFFICEUAC House (6th, 7th & 8th Floors)1/5 Odunlami Street, PMB 12913, Lagos01-2640160-9 (10 lines), 01-2700880-2 (3 lines)01-2702885-6 (Investors Group)01-2716280-3 (Bank Dealing only)Fax: 01-2716274

ABUJA OFFICEOrji Uzor Kalu Plaza,Plot 979, 1st Avenue, Off Ahmadu Bello Way,Cadastral Zone AO,Central Business District, Abuja09-6700532, 2731170

PORT HARCOURT OFFICE2nd Floor, Afribank Building (Formerly Leadbank Building),5 Trans Amadi Road, Port Harcourt084-463308, 084-463174084-463174, 084-46330808024081331Fax: 084-463174

Locations / Addresses

www.fsdhgroup.com

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Shareholders

Afribank Nigeria Plc

AIICO Insurance Plc

Diamond Pension Fund Custodian/Trustfund Plc

Ecobank Nigeria Plc

FSDH Staff Co-operative Society

Intermarket Services Ltd

International Finance Corporation (IFC)

KMC Investments Ltd

Spring Bank Plc

Stanbic IBTC Bank Plc

UBA Asset Management Ltd

Unico CPFA Ltd

Unity Bank Plc

Williams Street Trustees Ltd

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Directors and Advisers

Chairman:

Directors:

Managing Director / CEO:

Secretary:

Auditors:

Bankers:

Solicitors:

Mr. Ibrahim Dikko

Mrs. Muhibat Abbas Representing UNICO CPFA Limited(Appointed with effect from 15 December 2010)

Mr. Daniel Agbor Representing KMC Investments LimitedMr. Offong Ambah Representing Ecobank Nigeria Plc(Alternate – Mr. Jibril Aku) (Resigned on 16 March 2010)Mrs. Myma Belo-Osagie Representing KMC Investments LimitedMr. Junaid Dikko Representing KMC Investments LimitedMr. Emeka Osuji Representing Diamond Pension Fund Custodian/

Trustfund Plc (Appointed with effect from2 August 2010 and resigned on 22 December, 2010)

Mr. Sobandele Sobanjo Representing AIICO Insurance Plc(Appointed with effect from 3 February 2010)

Mr. Haruna Jalo-Waziri Representing UBA Asset Management Limited(Appointed with effect from 26 May 2010)

Mr. Bashir el-Rufai Independent DirectorMr. Vincent Omoike Independent DirectorMrs. Hamda Ambah Executive Director

Mr. Rilwan Belo-Osagie

Alsec Nominees LtdSt. Nicholas House, (10th Floor)Catholic Mission StreetLagos

KPMG Professional Services22A Gerrard RoadIkoyiLagos

Skye Bank PlcCathedral House2/4 Odunlami StreetLagos

Stanbic IBTC Bank Plc19 Martins StreetLagos

First Bank of Nigeria PlcUAC House1/5 Odunlami StreetLagos

Udo Udoma and Belo-OsagieSt. Nicholas House, (10th Floor)Catholic Mission StreetLagos

RC. 199528

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The Board

1 2 3

4 5 6

7 8 9

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Ibrahim Dikko

Rilwan Belo-Osagie

Muhibat Abbas

Bashir el-Rufai

Dan Agbor

Mr. Sobandele Sobanjo

Haruna Jalo-Waziri

Hamda Ambah

Junaid Dikko

Myma Belo-Osagie

Vincent Omoike

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2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

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Ibrahim Y. Dikko

The Chairman’s Statement

Distinguished shareholders, it is with great pleasure that Iwelcome you all to the 19th Annual General Meeting of ourcompany, First Securities Discount House Ltd.I am happy to present to you the report and accounts of ourorganisation for the year ended 31 December 2010.

Global Environment.

In 2010, a large part of the global economy was still dealingwith the consequences of the 2008/2009 financial crisis. Inthe United States, the return to growth could best becharacterized as very slow due to the financial crisis whichcontinued to plague the US economy. Growth was about2.7% and the economy is still plagued by unemploymentwhich has continued to hover around 9.6%. The country isyet to recover from the loss of about 8 million jobs duringthe 2008/2009 crisis.The emerging economic powers (China, India, Brazil), who

suffered minimal damage from the financial crisis, continuedtheir ascent on international scene in 2010.In the Euro zone, countries such as Greece, Ireland, Portugal,and Hungary struggled with debt and financial difficulties.Their allies, the European Central Bank (ECB) and theInternational Monetary Fund (IMF) continue to work withthem in order to resolve the problems.For most developing countries, particularly Sub-SaharanAfrica, economic growth was encouraging.As at the end of the first quarter of 2011, the world economicscore card pointed to

a possibility of economic tension in somecountries in the Euro zone spreading to the coreof Europe;the lack of progress in formulating medium termfiscal consolidation plans in major advancedeconomies;

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The Board

the continued weakness of the US real estatemarket;high commodity prices resulting from MiddleEast unrest; andthe potential for boom-bust cycles in emergingmarkets

Domestic Economic Environment

In line with the International Monetary Fund (IMF) worldeconomic report which projected strong economic growthfor Sub-Saharan African countries, Nigeria recorded a realGross Domestic Product (GDP) growth of 7.86% in Q3 of2010, higher than the growth rate of 7.30% recorded in thecorresponding period of 2009 and higher than the 7.69%recorded in Q2 2010. The growth rate of 7.86% in Q3 2010 isthe highest growth rate recorded in recent times. A breakdown of the GDP to oil and non-oil sectors shows that theNigerian economy continues to be dominated by non-oilsector with a contribution of 84.62% while oil sectorcontributed 15.38% to output in Q3 of 2010.

As expected, the equities market showed signs of recoveryin 2010 after 2 years of consecutive decline. The marketrecorded its highest performance in Q1, 2010 as investorstook positions ahead of the full year earnings season. TheNigerian Stock Exchange All Share Index (NSE ASI) closedthe year 2010 at 24,770.52 points up from 20,827.12 points atthe end of 2009, representing an appreciation of 18.93%(compared to a depreciation of 33.78% in 2009). It is pertinentto note however that in spite of these gains the marketcontinues to be unpredictable and is far from sustainedrecovery. This is largely due to the continued apathy byinvestors towards the capital market.

Operating Environment

The Nigerian operating environment continues to throwup a variety of challenges. The inflation rate (year-on-year)in December 2010 dropped to 11.8% from 12.8% recordedin the month of November 2010. This fell short of the setinflation target rate of 11.20% at the beginning of the year.The January 2011 (Y-o-Y) rate increased by 0.3% to 12.1% onaccount of higher energy prices and governmentexpansionary fiscal policy ahead of the April elections.Government debt (Domestic & External) went up duringthe year. Total Domestic debt stock was =N=4.55 trillion asat 31 December 2010, up by about 41% from =N=3.23 trillionas at December 2009. The Domestic debt stock representsabout 14.21% of the GDP.The country’s external debt position was USD4.58 billion asat year end up from USD4.534 billion. This debt represents2.13% of the GDP and 13.05% of total debt stock of =N=5.23trillion. The level of the country’s external debt increasedfurther in January 2011 when it issued the $500 million 10year Eurobond.Also during the year, Nigeria’s sovereign credit outlook wasdowngraded to negative from stable by Fitch. Reasons givenfor this review were the depletion of Nigeria’s windfall oilsavings and the heightened political uncertainty ahead ofApril 2011 elections. This credit rating downgrade was tolater affect the pricing of the $500 million Eurobond whichwas issued at a discount of 7% as against the desired 6.5 –6.75%.Similarly, external reserves fell from US $42.4 billion inDecember 2009 to US $32.35 billion in December 2010representing a drop of 23.70%. However Government’srevenue situation is expected to improve this year with thecontinued stability in the Niger Delta region and the upward

During the year under review, the implementation of ournewly acquired banking software (iDeal Suites) wascompleted. Consequently, we have fully migrated fromthe old system (Flexcube) to the new one.

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pressure on oil prices resulting from the political unrest inthe Middle East.During the year, the Government approved the establishmentof the National Sovereign Wealth Fund (SWF). The bill for itsestablishment is currently awaiting the National Assembly’sconsideration and approval. The SWF is meant to addresssome of the complexity and constitutional challenges posedby the Excess Crude Account (ECA). It is planned that theSWF will be made up of three separate funds: anintergenerational savings fund, an infrastructuredevelopmental fund, and a stabilization fund which will serveas a secondary source of funding supporting the ECA inperiods of budgetary deficit. The most importantdifferentiating characteristic of the SWF from the ECA will beits independence from political pressures and its inbuiltrigorous withdrawal measures and transparency regardingthe use of funds.The chain of reforms which started with the appointment ofthe current CBN governor Mr. Sanusi Lamido Sanusi, in 2009continued during the period of review on various fronts. TheCentral Bank repealed the Universal Banking model as partof its strategic initiative to reform the Nigerian financial systemto enhance the quality of banks, ensure financial systemstability and promote evolution of a healthier financial sector.The Asset Management Company of Nigeria (AMCON) billwas signed into law during the period under review. Thecompany was set up by the Central Bank to acquire the non-performing loans of Nigerian banks thus boosting theliquidity of troubled banks, paving the way for therecapitalization of many of them and ultimately stimulatingthe recovery of Nigeria’s financial system from the recentcrisis. AMCON has since commenced operations with theinitial issuance in December 2010 of zero-coupon bondsvalued at =N=1.03 trillion in exchange for non performingloans worth =N=2.2 trillion. The bonds with yields of 10.125%

are expected to mature on 31 December 2013.Furthermore, the planned sale of the banks in which CBNintervened in 2009 is on course and hopefully should beconcluded during Q3 in 2011. Consequently the CBNguarantee for all interbank transaction as well as pension fundsplacements with banks has been extended to September 2011.In September 2010, the Monetary Policy Committee (MPC) ofthe Central Bank reviewed the Monetary Policy Rate (MPR)from 6%p.a. to 6.25%p.a. and later by January 2011 by a further25 basis points to 6.50%p.a.This was again reviewed upwardby 100 basis points to 7.5%p.a in March 2011. The symmetricinterest rate corridor of +/- 200 basis points around the MPRwas maintained. By this, the Standing Lending Facility Rate(rate at which CBN lends to Banks and Discount Houses asbank of last resort) became 9.5%p.a while the Standard DepositRate (rate at which Banks and Discount Houses place excessfunds with the CBN) became 5.5%p.a from 4.5%p.a.in Januaryand from 3.25%p.a. where it was in September having earlierbeing increased from its prior level of 1.25%p.a. The MonetaryPolicy Developments in 2011 have seen the MPC also raisethe cash reserve requirement (CRR) ratio by 100 basis pointsfrom 1.0% to 2.0% with effect from 1ST February 2011 and witheffect from March 2011 raised the Liquidity Ratio (LR) by 500basis points from 25.0% to 30.0%

Operations

During the year under review, the implementation of our newlyacquired banking software (iDeal Suites) was completed.Consequently, we have fully migrated from the old system(Flexcube) to the new one. It is our belief that the new softwarewill enable us to continue to keep our promise of utilizing thelatest available technology to enhance response times andensure the highest standards of service delivery to ourcustomers. We also successfully implemented SAP (Systems

The Chairman’s Statement - (cont.)

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Application and Product in Data Processing) – an EnterpriseResource Planning System that ensures a seamlessintegration of Human Resources and Finance Processes. Thishas increased our operational efficiency in the area of payrolladministration and procurement processes.To ensure that your board is equipped to perform optimally,arrangements were made for members to attend relevanttraining programs during the year. Courses attended were inthe areas of Anti-Money Laundering/Combating Financingof Terrorism (AML/CFT) Compliance, Corporate Governanceand Risk Management.Going forward, we will continue to ensure that membersattend relevant programs to enhance their ability toeffectively exercise their oversight duties.Once again, as prescribed by the CBN Code of CorporateGovernance and for the fourth year running, another boardperformance evaluation exercise was conducted byPriceWaterHouse Coopers during the year. The reportrecorded further improvement on our board performance.As always, we will also review their recommendations toensure continuous improvement in the performance of ourBoard.

Financial Performance

The group achieved a Profit Before Tax (PBT) of =N=3.43billion for the financial year ended 31 December 2010 inspite of the tough economic environment. This representsin absolute value, an increase of 13.63% over the profit forthe year ended 31 December 2009, which was =N=3.015billion. Profit After Tax (PAT) attributable to the group was=N=3.050 billion, which is 15.97% above the position of=N=2.63 billion for the year ended 31 December 2009. Whenthe profitability figures of both periods (2009 and 2010) arereviewed further, it is clear that on an annualized basis, (2009

result was for 6 calendar months) that the 2009 positionsfor both PBT and PAT were 43.12% and 42.02% respectivelybetter than the positions as at the 31 December 2010. Thistestifies further to our assertion that the operatingenvironment last year was extremely tough.Earnings per Share (EPS) was 109 kobo, which is 15 kobomore than the 94 kobo that was earned in December 2009(unannualized).During the period under review, all our subsidiaries postedprofits. For FSDH Asset Management Limited and FSDHSecurities Limited, though PAT was modest at =N=56.56million and =N=31.85 million respectively it was still asignificant improvement on the PAT figures of =N=14.91million and =N=15.33 million respectively that wererecorded for the six months ended 31 December 2009. Thisimprovement was achieved in spite of the continuedinvestor apathy to the Capital Market.I am happy to confirm that as predicted in my statementlast year, our subsidiary, Pensions Alliance Limited (PAL)has continued to grow its assets under management andconsequently was able to post PAT of =N=115.58 million.This was a 165.82% increase over its 2009 figures of =N=43.48million. We are pleased that the company has finally turnedthe corner on its journey to long term profitability.

Dividend

The directors have proposed a total dividend payment of=N=698.70 million for the year ended 31 December 2010.This represents an increase of 25% when compared inabsolute terms with the dividend payment of =N=558.96million for the year ended 31 December 2009. If annualized(full accounting period for year ended 31 December 2009was 6 calendar months based on CBN directive on commonyear end), it translates to a decline of 37.50%.

The group achieved a Profit Before Tax (PBT) of =N=3.43billion for the financial year ended 31 December 2010 inspite of the tough economic environment. This representsin absolute value, an increase of 13.63% over the profit forthe year ended 31 December 2009...

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If the proposed dividend is approved, it translates to 25k pershare to all shareholders. The company will continue tostrike a good balance between its obligation to rewardshareholders and the need to retain earnings in order tofinance future expansion, growth and share capitalrequirement for our proposed conversion to merchant bank.

Outlook

The last financial year was quite challenging for business inour sub-sector of the banking industry. The new CBN BA/CP(Bankers Acceptances and Commercial Paper) guidelinewhich cut-off our commercial bills trading activity as wellas the sustained liquidity for most of the year and the steepdecline in securities trading activities all seriouslyconstrained our ability to meet planned growth targets.This is one of the reasons why we have approached theCentral Bank of Nigeria for a Merchant Banking Licensefollowing the recent repeal of the Universal BankingGuidelines.It is our belief that such a license will open to us a widerarray of opportunities. We also believe that the permittedactivities under the license will be a perfect fit for our presentcompetencies in securities trading, asset management,financial advisory, and investment banking. Nevertheless,the envisaged positive impact of the various banking sector

reforms in terms of the operations of the Asset ManagementCompany (AMCON) and the recapitalization and scale of CBNintervention banks should have a multiplier effect that willpositively impact the banking industry and the largereconomy.In the case of the capital market, we envisage that relativelycrisis free general elections would positively impact themarket via the re-entry of foreign investors that withdrewtheir funds from the capital market during the global financialcrisis of the past three years and in a recent second waveduring the ongoing political turmoil in the Middle East andNorth Africa. I am pleased to say that the FSDH group isproperly prepared to take advantage of whateveropportunities these emerging scenarios throw up.I seize this opportunity to thank our stakeholders for theircontinued support and to assure them that the FSDH groupwill continue to justify the confidence they have in thecompany.

Thank you.

Ibrahim DikkoChairman

The Chairman’s Statement - (cont.)

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I am pleased to say that the FSDH groupis properly prepared to take advantage ofwhatever opportunities these emergingscenarios throw up...

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Rilwan Belo-Osagie

The CEO’s Review

In 2010, the banking industry grappled with the challengesarising from the series of reforms introduced in late 2009.These reforms were introduced in order to sanitize theindustry and eliminate the overhang of non-performingcredits in the banking industry. Some of the reforms, eventhough good for the entire system as a whole, impactedadversely on the operations of discount houses. This is largelydue to regulatory constraints that limit the operationallatitude of discount houses to respond appropriately to thebusiness imperatives of the reforms

One aspect of the current reforms that has had far-reachingimplications on the business of discount houses is theintroduction of new guidelines for the issuance of BankersAcceptances (BAs) and Commercial Paper (CPs). The newguidelines were intended to curb abuses in the use of theseinstruments, given the inclination of some financial

institutions to use the instruments to disguise non-performing credits. To qualify to issue BAs and CPs underthe new guidelines issuers are required to be rated by crediblerating agencies, a condition that many issuers have not beenenthusiastic to embrace. Rather than seek for credit ratingsmany credit worthy issuers have opted to borrow money bytaking term loans from the banks. A majority of existing BAsand CPs have been converted to term loans. Thisdevelopment has effectively shut discount houses out of thebusiness of commercial lending. Considering that thisconstitutes a huge part of the business of discount houses,the impact both on profitability and volumes has beenconsiderable.We are confident however that banks will soon realise thebenefits of lending by way of investing in debt securities.This is because investing in term loans can make a bank’sbalance sheet illiquid thereby making it difficult for the bank

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...we have continued to make efforts tominimize the negative impact of the new

guidelines on profitability...

to respond effectively during tight liquidity periods. Thisrealisation will in turn compel banks to impress on issuersthe need to obtain ratings that will enable them to securitizetheir borrowings through the use of BAs and CPs.

In the meantime, we have continued to make efforts tominimize the negative impact of the new guidelines onprofitability. One of the strategies of dealing with the problemwas the decision to grow the corporate finance business.This is aimed at not only providing more opportunity toearn fee income but also to grow commercial lendingthrough underwriting of debt issues. Given our existingcapabilities in this area, the company has been able to makeappreciable progress despite the fact that investor confidenceis still at a very low level.

We were able to participate in major corporate debt issuesin 2010 as issuing house and/or placement agent.Furthermore, we have also been appointed as a party toseveral debt issues that should come to the market sometimethis year. Investor apathy continues to be a major problemas many investors who took part in the public offers andprivate placements, that flooded the financial marketsbetween the year 2006 and 2008, sustained huge losses andno longer have the desire or appetite to invest in the newoffers. As the memory of the losses recedes and the marketbecomes more buoyant, we expect the level of activity incorporate finance to increase. We believe that we are wellpositioned to become a major player in this businesssegment.

We also exploited the synergies available in the various linesof business of the group. Existing linkages across the groupwere strengthened and through numerous collaborativeefforts many segments of the business received a big boost.

Thus, despite the continued downturn in the capital markets,where our subsidiaries operate, two of them recordedappreciable growth in profitability.

Many new products were introduced in the assetmanagement business, aimed at creating liquidity for somesecurities that are not publicly traded in the country. Thismarket-making role added tremendous value to investorsand issuers. It gave smaller investors access to thesesecurities and eased the pressure on the issuers to provideexit mechanisms for existing investors who want to selltheir investments. The subsidiary will continue to look formore opportunities to extend this market marking role.Discussions are currently going on regarding the creationof an OTC market for corporate and state government bonds.We intend to play an active role, as we are doing in the caseof FGN bonds, to ensure the creation of an OTC market inthese securities.

In order to enhance the company’s ability to continue toadapt to the changing operating environment, we havecontinued to make the investments necessary to positionthe company to play a dominant role in our chosen marketsegments. To this end, we have added another floor – the5th floor of UAC House - to our existing offices. We nowoccupy the 5th, 6th, 7th and 8th floors of the building. Inaddition, a new ultra-modern dealing room has beenprovided on the 5th floor. The dealing room is equippedwith all the facilities necessary to conduct trades withcounterparties all over the world on an online, real timebasis. These facilities are also intended to improve theprocess of price discovery, enable faster processing of ordersand provision of timely feedback to counterparties onmarket conditions.

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In the area of information technology, a new front end dealingsystem has been installed to replace our old system. Thedealing system has the capability to perform criticaldecision-support functions including sensitivity analysis anda host of risk management calculations. This ensures thatthe impact of major transactions on earnings and capitalcan be assessed before the transactions are closed.

In 2009, we developed a new enterprise-wide riskmanagement framework (ERM) to replace the old one. Westarted full implementation in 2010, by putting in place allthe systems and processes required to support theframework. The Board Risk Management Committee hasapproved new processes recommended in the ERM whilethe Asset and Liability Management Committee (ALCO) hasbeen reconstituted to make it more effective. The companyis also following up with the implementation of an Assetand Liability Management system (ALM) to support theduties of the ALCO.

Since inception, the company’s philosophy has been to builda structured organization that is both resilient and adaptive,because we operate in an environment that is highlychallenging. The current challenges are likely to remain in2011. We believe, however, that we have laid the foundationsnecessary to ensure that the company remains a dominantplayer in the foreseeable future in our chosen marketsegments.

The CEO’s Review - (cont.)

Since inception,the company’sphilosophy hasbeen to build astructuredorganization that isboth resilient andadaptive...

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Rilwan Belo-Osagie

Hamda Amba h

Robert Ajiamah

Richard Osuagwu

Fola Wiltshire

Gibson Mbah

1.

2.

3.

4.

5.

6.

The Executive Management

1 2 3

4 5 6

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Emerging With Definition...

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It was Thomas Carlyle that said, “Culture is a process by whicha person becomes all that they were created capable ofbeing”. At FSDH, this is our objective, and we spare nothingto pursue this goal. Times change, seasons come and go,but one thing is constant at FSDH, our culture. It is the lifeblood of the organisation. We encourage all employees tobreathe and live it. This foundation of Customer Orientation,High Performance, Collaboration, Learning and ImageBuilding has ensured that we have accomplished great featsin the last 18 years. Our culture is the gas that fuels ourengine. Our attitude is never to rest on our oars, as it is ourfirm belief that there is always “More”; more in customersatisfaction; more learning; more performance and morecollaboration. It is this mindset that drives every member ofstaff at FSDH. We do not pay lip service to these tenets, butsee them as sacrosanct and therefore pursue them withoutreservation.

Our culture permeates every part of FSDH from recruitment,to service delivery and dealing with all stakeholders. Ouraim is for the culture to be etched in the hearts of every staffof the company. It is our DNA. Consequently, our attitudesto issues and response to situations are a reflection of thisculture. Everyone at FSDH is committed to these values andplays a big part in our progress. A critical element in ourculture is INTEGRITY. Our word is our bond, and so we ensurethat we keep our word, even if it means there is a possibilityof recording a financial loss by doing so.

Despite the difficult environment in which we operate, FSDHhas remained at the cutting edge of our industry, becauseour culture encourages creativity and open communication.At FSDH, no idea is rejected without careful consideration.This is to encourage creativity. Our staff are professional,creative, proactive, strategic, empowered, motivating,motivated and have a good understanding of the marketspace.

We are not afraid of challenges as we see them asopportunities for development. Our desire to build a worldclass institution makes us comfortable with starting small,as we see the harvest in the seed. This means we are willingand able to patiently nurture seeds into great oaks. This iswhy we have been in existence for 18 years and are stillgoing strong.

And why do we do all this? To ensure we deliver superiorquality service to our esteemed clients. When our clientsare satisfied, they are happy and we as FSDH reap the benefit.The result is symbiotic relationship with our clients whichcreates a virtuous cycle.

This is FSDH. This is Integrity. This is Professionalism. Thisis Innovation. We are Emerging with Definition.

The FSDH Culture...

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Update on Information Technology...

FSDH attaches great importance to the implementation andadoption of information technology tools and techniquesas they provide the lever upon which our business processesrevolve. In the last financial year, we embarked on the reviewand revalidation of our Information Technology strategy tobring it in line with the current business strategy. TheStrategic Information System Project (SISP) review broughtup the need for the implementation of some key businesssystems and applications for the various companies withinthe group. These systems were carefully selected to providesupport for the new businesses that the company hadembarked upon while others were chosen as replacementsand means of addressing shortcomings in the old systems.At the beginning, the task of implementing and integratingthese complex and seemingly disparate systems appeareddaunting. We are glad that through the cooperation anddedication of all our members of staff, the system vendorsand implementation consultants, we were able to deliverthe project successfully.Flexcube, the core business application of FSDH wasreplaced with i-Deal Suites, a flexible and front-endsecurities trading system developed by Credence Analytics,a software company based in India. The business operationsof FSDH Asset Management Ltd (FAML) received a boost

with the implementation of Ideal Wealth and Ideal Funds(also developed by Credence). These two modules of Idealprovide the company with the ability to value customers’portfolio in a timely manner and to carry out the dailyvaluation of our coral funds, amongst other benefits.Our back office operation is now driven by SAP. SAP is therobust and renowned Enterprise Resource Planning Softwarefrom SAP of Germany. The finance module of the softwareconsolidates accounting data from the various front-endsystems and gives us 360 degrees view of the financialperformance of the various companies within the group. TheHuman Resources management module provides us withthe tools to plan and manage the most important resourceof the company – the human capital. FSDH Securities Ltd’soperations still continue to run efficiently on the Flexcubeplatform.As we bring the implementation of these cutting-edgetechnologies to a successful end, we realize the enormouschallenges their continuous support and maintenance pose.These are challenges we are primed to face. Working in closecontact and collaboration with all stakeholders, we willmanage the systems efficiently to ensure that they provideplatform for operational excellence and efficient servicedelivery to our clients.