2019 19 RESUL SULTS S PRESENT SENTATIO ION 26 SEPTEMBER 2019 0 - - PowerPoint PPT Presentation

2019 19 RESUL SULTS S PRESENT SENTATIO ION

26 SEPTEMBER 2019

C O N T E N T S

Introduction Portfolio overview Valuation overview Liquidity analysis

1

Conclusion

I m p a c t o f k e y m a r k e t d r i v e r s Key drivers rs impacti ting g top-line performance…

• 8.0
• 6.0
• 4.0
• 2.0

0.0 2.0 4.0 6.0 8.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Quarterly growth (%)

Quarte rterly rly GDP growth h (%) Fund VI

6.0 8.0 10.0 12.0 14.0 16.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Average USDZAR

Foreign ign Exchange hange Rate Fund VI

Key cost of sales drivers…

17.0 18.1 19.6 25.0 31.9 42.2 50.3 58.5 62.8 67.6 75.4 81.8 82.5 10.0 30.0 50.0 70.0 90.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Average price c/kWh sold

Electric ricity ity price Fund VI

2011 - 2018 CAGR:

10.0% 0%

2011 - 2018 CAGR:

9.0% 9.0%

2

500 700 900 1100 1300 1500 1700 1900 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Price (95ul; coastal; c/l)

Petrol

• l price

2011 - 2018 CAGR:

6.2% 6.2%

Fund VI

52,000 52,500 53,000 53,500 54,000 54,500 55,000 55,500 56,000 56,500 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Annu nual l GDP per capita ita (ZAR) Fund VI

Market conditions, cost pressures and uncertainty provide a tough investment backdrop!

MM Fund MM Fund MM Fund MM Fund MM Fund

The difficult operating environment has lent itself to opportunities across the funds

3

U p d a t e o n a f u n d b y f u n d b a s i s

Larg rge Equi uity ty Mid Marke rket Mezz zzani nine ne Ai Ai

• Fund VI finished investing phase and commenced exit phase – two exits Kevro and Eaton
• Intensive focus on portfolio companies with strong traction in restructurings and cost reductions
• Fund VII in investment phase – two deals Channel Vas and Echo – strong pipeline of
• pportunities
• Focus on key investment themes and deep value opportunities with cyclical upside
• MMF is 65% invested and the team’s focus is on maximising outcomes in the portfolio
• Promising signs across the mid-market equity assets (Echo, Gammatek, Synerlytic, Kevro)

Autozone, Twinsaver and Eazi Access remain under pressure

• Very significant SA focussed investment pipeline – can afford to be selective
• Strong pipeline of opportunities in East African structured equity growth capital
• Negotiations on two transactions nearing completion
• Chibuku had a challenging year operationally given weather conditions and other exogenous

issues in Malawi

• Strong traction in fund raising
• Differentiated value add impact on Channel Vas and Vertice
• Investment in Tyme Bank
• Strong pipeline of opportunities

ZAR2.6 .6 billion

• n

Invested ted

ZAR2.1bn in new investments ZAR500m in follow on capital

ZAR2.9 .9 billion

• n

Raised

ZAR2bn for Fund VII R254m for EMP3 R640m for Ai Fund I

# of Portfolio Companies

19

NAV per Share

R11.34

Growth in NAV per share

3%

EV / EBITDA

(Actual)

6.9x

Capital Invested

R1.43bn

Capital Invested

(Proforma)

R1.58bn

Net Debt / EBITDA

(Actual)

1.9x

Total Assets

R1.93bn

Proforma invested capital

(as % of Total Assets)

82%

K e y p e r f o r m a n c e m e t r i c s

Highlights of the operating results

4

C O N T E N T S

Introduction Portfolio overview Valuation overview Liquidity analysis

5

Outlook

3% 30% 26% 12% 10% 4% 15% Banking Consumer goods FinTech Industrials Media MedTech Telco services 60% 40% South Africa Sub Saharan Africa Exposure to 19 portfolio companies across various sectors and vintages Invested Capital by sector / geography

P o r t f o l i o o v e r v i e w

Portfolio overview and value contribution

6

712 867 Net new investments

F u n d i n v e s t m e n t s i n 2 0 1 9

Significant investment in the past 12 months across six new portfolio companies

7

Assets owned for less than one year Assets owned for more than one year 18% 36% 46%

Cash Assets < 1yr Assets > 1 yr

P o r t f o l i o c o m p o s i t i o n

Net asset value contribution and “age” of the investment portfolio

8

P o r t f o l i o c o m p a n y o v e r v i e w

Blue e chip ip custom stomer er base se

A++

Airtel Africa, MTN, Orange, Vodafone and Safaricom, amongst others

Balan lance ced d portfoli tfolio expo posu sure re

<27%

No single country has more than 27% of total number of towers

Operati rating effic icien iencie cies

>50%

EBITDA margin increased from 30% to >50%

• ver life of investment

Ann nnuit ity y profi file le

10yrs

New lease contracts typically entered into for a 10 year duration

Pan-reg regio ional l prese sence ce

5

Presence across Ghana, Uganda, Kenya, Burkina Faso and Niger Increasingly connected populations

(Data & Voice)

Multi-currency exposure

Key ey inve vestmen stment t theme emes

Inves estmen ent t / E Exit date ate: June 2015 / October 2019 Ethos

• s conso

sortiu tium ow

• wner

ersh ship ip: 14.4% Busin sines ess: Telecommunications Fund d VI Inves ested ed Capital ital: R405m Ethos

• s Fund VI ow
• wner

ersh ship: 4.8% Gross ss ret eturns s (ZAR): ): 2.4x TMB / 23.4% IRR

Successful exit of Eaton Towers

9

Eaton Towers is a leading independent pan-African tower company with over 5,000 tower sites across five countries

Pan-African Footprint Scalable business model

P o r t f o l i o c o m p a n y o v e r v i e w

Acce ccess ssib ible le custome stomer base se

650m

Access to +650m mobile subscribers

Dail ily adv dvan ance ces

+$5m

+$5m advances distributed daily, with over 6 million transactions per day (US$799m advanced YTD vs US$566m in 2018)

Stron

• ng

g finan anci cial al perfo formance

>20%

Y-o-Y LfL EBITDA growth LTM June 2019

Defa fault ult rates es

<1%

Lowest default rates in the industry and the highest service penetration

Glob

• bal

al prese sence

>25

Presence across 4 continents and >25 countries (most of which are in sub-Saharan Africa) – six new deployments since May 2018 Increasingly connected populations Rising consumer spending Ai and hyper decision- making Financial Inclusion

Key ey inve vestmen stment t theme emes

1.7 billion adults remain unbanked* 67% 67%* of unbanked adults have access to a m mobile phone

Channel VAS aims to provide the underbanked in emerging markets with

mobile access to financial services through impactful technologies

* The Global Findex Database 2017

Date ate of inves estmen ent October 2018 % o

• f EC Inves

ested ted Capital ital 26% Tota

• tal

l Ethos

• s ow
• wner

ersh ship ip 17.5% (increasing to 20%) % o

• f EC NAV

21% EC Inves ested ed Capital ital R372m Curren ent t va valuation tion R408m (1.14x TMB) LTM Retu eturn +R53m (14%) Dividends received, valuation largely unchanged

Channel VAS update

10

Channel VAS provides Airtime Credit Services and Mobile Financial Services to prepaid mobile subscribers through MNOs

LTM change in NAV:

+R53m 3m

% of Ethos Capital NAV:

21% 21%

Date ate of inves estmen ent October 2017 % o

• f EC Inves

ested ted Capita ital: 13% Tota

• tal

l Ethos

• s ow
• wner

ersh ship ip 27.6% % o

• f EC NAV:

11% EC Inves ested ed Capital ital R185m Curren ent t va valuation tion: R202m (1.10x TMB) LTM Retu eturn +R9m (5%) Multiple unchanged, gearing benefit

P o r t f o l i o c o m p a n y o v e r v i e w

Constr tructin ing New Wareh rehou

• use

se Faci cili lity ty ERP & WMS System stem

11

KEY EY HIGHLIG IGHTS

 Weak economic environment adversely impacted end customers  Service level challenges, recent improvements point to greenshoots ✓ Relatively strong financial performance in a difficult market, focus on new product strategies to drive growth ✓ COO appointed ✓ Full strategy review & operating model re-assessment completed ✓ Operational projects to improve service levels and enhance efficiencies

• New Warehouse and IT systems

✓ All the above projects to be funded by internally generated cashflows ✓ Delivered 1st B-BBEE rating in FY2018. This year rating was enhanced the business achieved a Level 4 rating

“1 Box”

• Increased pallet locations
• Warehousing, picking mezz & branding

Allows Kevro to consolidate into one site; expected to drive efficiencies Integr tegrate ate Ops & System ems

• Enhance inventory management
• Improve quality of BI in support of

decision-making processes

Kevro update

LTM change in NAV:

+R9m

% of Ethos Capital NAV:

11% 11%

P o r t f o l i o c o m p a n y o v e r v i e w

12

KEY EY HIGHLIG IGHTS

 Weak advertising market (industry radio and outdoor advertising spend both down YoY)  Most corporate advertising budgets have been cut  Lower occupancy in static billboards offset to some extent by the performance of digital billboards ✓ Relatively strong financial performance given difficult operating conditions ✓ Market share gains in broadcasting limited the revenue decline ✓ Significant investment (LTM and going forward) in digital billboards ✓ Sold SK Entertainment (proceeds used to repay debt) ✓ Unbundled SK Theatres (movies business) to shareholders, new Chairman, CEO and CFO ✓ Strategic review and operating model changes in SKT resulted in significant improvement in YoY profitability

Digiti itizatio zation of Outdo door bill llbo boards ards Mar arket et share are

Growth in radio market share in broadcasting was a significant positive in 2019

Strate ategic ic re-fo focu cus

Sold SKE and unbundled SKT to create a focussed broadcasting and outdoor advertising business Capital expenditure in digitising billboards and creating “new age” solutions for advertisers showing good momentum

Primedia update

Date ate of inves estmen ent December 2017 % o

• f EC Inves

ested ted Capita ital: 12% (including SKT) Tota

• tal

l Ethos

• s ow
• wner

ersh ship ip 19.9% + 5.0% (EC) % o

• f EC NAV:

10% (including SKT) EC capital ital inves estme tment R172m Curren ent t va valuation tion: R194m (1.13x TMB) LTM Retu eturn +R6m Primedia largely flat, SKT value increase

LTM change in NAV:

+R6m

% of Ethos Capital NAV:

10% 10%

P o r t f o l i o c o m p a n y o v e r v i e w

9

Growth in Africa’s data consumption

+42 %

Mar arket et oppo portu tunity ity

$9.9bn

bn

The B2B service market is growing faster than any other segment of ICT in SSA

Growth wth in FTTX TTX connec ection tions

x3 x3

SSA severely underserved outside SA; FTTX connections projected to grow three-fold to 2020 KEY EY HIGHLIG IGHTS

 Delayed implementation of Gondwana acquisition primarily due to regulatory challenges – likely to close in October 2019 ✓ Strong growth year on year with increased market share ✓ Appointed Group CFO and Head of Product Innovation ✓ Business successfully delivered its 1st B-BBEE rating under the ICT Codes and obtained a level 4 rating ✓ Investment in new sales force - strong momentum in delivering against sales targets (87% of target achieved in 6 months) ✓ Strategic review and operational model assessment project being scoped and will be completed by end January 2020 ✓ Strong acquisition targets pipeline: – Zambia – Kenya

SSA pres esen ence

Countries CAGR to 2021

13

Echo update

Date ate of inves estmen ent February 2018 % o

• f EC Inves

ested ted Capita ital: 11% Tota

• tal

l Ethos

• s ow
• wner

ersh ship ip 31% (inc. to >65%) % o

• f EC NAV:

9% EC Inves ested ed Capital ital R26m (+R152m) Curren ent t va valuation tion: R28m (1.07x TMB) LTM Retu eturn +R2m (+7%) Effectively held at cost of investment

LTM change in NAV:

+R2m

% of Ethos Capital NAV:

9% 9%

P o r t f o l i o c o m p a n y o v e r v i e w

Healthy althy M&A &A pipe peli line e across ross vario ious s geog

• grap

aphie hies

1x acquis isit itio ion n completed,

additional opportunities being assessed

Synerlytic Lab footprint Agent labs

Ai capa pabil bilit itie ies

14

13 13

SSA & MEI I prese sence

Countries

Signif ific ican ant barr rrie iers s to entry ry

Holds globally applicable accreditations Already processing 5% of samples using recently developed algorithms

South Africa Namibia Pakistan DRC Ghana Mozambique Angola Botswana Zimbabwe Zambia Ivory Coast India UAE

Synerlytic update

Date ate of inves estmen ent April 2019 % o

• f EC Inves

ested ted Capita ital: 7% Tota

• tal

l Ethos

• s ow
• wner

ersh ship ip 93.4% % o

• f EC NAV:

5% EC Inves ested ed Capital ital R92m Curren ent t va valuation tion: R105m (1.14x TMB) LTM Retu eturn +R13m (14%) Multiple unchanged, EBITDA growth (head office savings)

LTM change in NAV:

R13m

% of Ethos Capital NAV:

5% 5%

P o r t f o l i o c o m p a n y o v e r v i e w

15

KEY EY HIGHLIG IGHTS

 Weak consumer environment, post-paid up-trade cycle getting longer  Geopolitical impacts (Huawei volume sell through impacted by US-China trade war) ✓ Relatively strong financial performance given difficult operating conditions ✓ Finalising appointment of CFO ✓ Appointed Independent Non-Executive Chairman ✓ Business successfully delivered its 1st B-BBEE rating under the ICT Codes and obtained a level 4 rating ✓ Increasing the proportion of exclusive customers to total customers ✓ In-store incentive app launched to leverage capacity of non-Gammatek staff ✓ Strategic review and operational model assessment project underway

Geog eograph raphic ic expa pansion sion optio ions Poised ised to increa crease se market et share are

Key competitor recently filed for business rescue

New chan annels ls targete eted

Assessing bolt-on acquisitions to diversify channel and products beyond the core (e.g. Audio) Exploring market entry strategies for East Africa and models to supply into other international markets

Gammatek update

Date ate of inves estmen ent September 2018 % o

• f EC Inves

ested ted Capita ital: 6% Tota

• tal

l Ethos

• s ow
• wner

ersh ship ip 51.0% % o

• f EC NAV:

5% EC capital ital inves estme tment R98m Curren ent t va valuation tion: R98m (1.0x TMB) LTM Retu eturn R0m Held at cost of investment

LTM change in NAV:

• % of Ethos

Capital NAV:

5% 5%

CARDIO- VASCULAR ORTHO SURGERY WOUND CARE NEUROLOGY BLOOD DISEASE DIAGNOSTIC SOLUTIONS

P o r t f o l i o c o m p a n y o v e r v i e w

KEY EY HIGHLIG IGHTS

✓ Strong growth year on year through increased market share, new products and acquisition-led growth ✓ Appointed new CEO with strong technology background ✓ Strong Ai potential both in terms of new business growth but also product utilisation and differentiation ✓ Strong acquisition pipeline with new acquisition opportunities well advanced ✓ Significant investment in IT systems to facilitate platform consolidation and roll out ✓ Potential for ex-South Africa growth is significant

16

Vertice update

Date ate of inves estmen ent May 2018 % o

• f EC Inves

ested ted Capita ital: 4% Tota

• tal

l Ethos

• s ow
• wner

ersh ship ip >75% % o

• f EC NAV:

3% EC Inves ested ed Capital ital R58m Curren ent t va valuation tion: R61m (1.05x TMB) LTM Retu eturn +R3m (+5%) Effectively held at cost of investment Established uniquely skilled distribution Biotech Infotech convergence Technology platform and scale AI and Data Science

LTM change in NAV:

+R3m

% of Ethos Capital NAV:

3% 3%

P o r t f o l i o c o m p a n y o v e r v i e w

60 80 100 120 12 month h share re price ce analysis lysis c.50% INCREASE SE IN SHARE PRICE

KEY EY HIGHLIG HLIGHT HTS

• New management team in place
• “BRIGHT” Strategy fully adopted and being implemented Strategic Initiatives on course:

 Share price lagging strong operation performance  Business remains susceptible to external policy, regulatory shocks ✓ Travelstart exited and Jumia listed on NYSE ✓ Mascom exit in progress (subject to regulatory approvals), MTN Cyprus (exited) and MTN Ghana Listed. ✓ MTN Nigeria Listed. Move to underpin stability with regulators and other local authorities ✓ Governance enhanced with establishment of senior advisory council and re-instatement of in-country VP’s across the footprint ✓ Options being explored re Tower assets (could unlock c. R20bn for MTN)

17

MTN Zakhele Futhi update

Date ate of inves estmen ent July 2017 % o

• f EC Inves

ested ted Capita ital: 3% Tota

• tal

l Ethos

• s ow
• wner

ersh ship ip 4.1% % o

• f EC NAV:

2% EC Inves ested ed Capital ital R43m Curren ent t va valuation tion: R41m (0.96x TMB) LTM Retu eturn

• R2m (-2%)

Marked to market off MTN share price

LTM change in NAV:

• R2m

% of Ethos Capital NAV:

2% 2%

18

50%+ Smartphone use in SA Financial inclusion Disruptive technology AI and hyper decision- making

80% of custome

• mers

rs underserved rved* * Highly attr tracti ctive South African banking sector

* FinScope South Africa 2015, 2016 and 2017 consumer surveys. “Adequately served” defined as individuals having a balanced portfolio of products that are suited specifically to their financial wants and needs

• Unique and exclusive distribution platform through Pick n Pay and Boxer stores

with proprietary access to rich consumer data

• Industry leading, low cost operational platform
• Established and operational cloud-based technology platform operating at scale
• Reputable, experienced team with ability to scale the platform globally

Large e dist stri ribut butio ion footpr

• tprin

int

14k

Kiosks in 700+ stores with Tyme ambassadors, and access to cash at 14,000+ till points

Compe pell lling ing low w cos

• st propo

positi sition

• n

R32

Half the cost of lowest cost banking competitor

Attrac ractive tive finan ancial ial dyn ynam amics ics

25%

Technology and business model designed to attain industry leading cost-to income ratio

Behavio vioural ral prod

• ducts

cts

✓

Products designed using behavioural economics promoting responsible and inclusive access to banking

Prove

• ven acqui

quisit sitio ion mode del

770k

>770,000 customers signed up since launch in November 2018

P o r t f o l i o c o m p a n y o v e r v i e w

Tyme Bank

Date ate of inves estmen ent June 2019 % o

• f EC Inves

ested ted Capita ital: 3% Tota

• tal

l Ethos

• s ow
• wner

ersh ship ip 8% % o

• f EC NAV:

2% EC Inves ested ed Capital ital R46m Curren ent t va valuation tion: R46m (1.0x TMB) LTM Retu eturn R0m Held at cost of investment

LTM change in NAV:

• % of Ethos

Capital NAV:

2% 2%

18

Performance of selected portfolio companies

P o r t f o l i o c o m p a n y o v e r v i e w

19

AUTOMOTIV IVE PARTS RETAILER & WHOLESALER FMCG INDUSTRIA IAL EQUIPMENT

Date ate of inves estmen ent Dec 2016 Dec 2016 Dec 2016 % o

• f Ethos
• s Capital

ital NAV 2% 4% 2% Curren ent t va value R40m (-R46m YoY) R74m (-R9m YoY) R34m (-R12m YoY) LTM Retu eturn / TMB

• 54% / 0.51x
• 11% / 0.89x
• 26% / 0.64x

NON CONTROLLABL BLES (INDUS DUSTR TRY)  Consumer sector  USD:ZAR  Consumer sector  USD:ZAR  Pulp price (global commodity)  Construction sector  Eskom: long-term contracts ending CONTROLLA LABL BLES  Poor category planning and inventory management  Significant operational inefficiencies  Over-capacitation ETHOS FOCUS OVER LTM

• Strategic review and reset
• C-suite capacitation
• Cost savings (R64m - closure of non performing

stores)

• Debt restructure
• Strategic review and reset
• New CEO
• C-suite capacitation
• Cost savings (R53m – operational efficiency)
• Debt restructure
• Strategic review and reset
• New CEO
• C-suite capacitation
• Cost savings (R39m – S189 & cost controls)
• Debt restructure

CURRENT NT OUTLOOK ✓ Recovery plan in place with significant budgeted y-o-y growth in EBITDA driven by rationalisation

• f store footprint, leadership augmentation and

enhanced inventory management ✓ Significant traction on improving OEEs; saleable volumes ahead of budget ✓ Positive momentum in run rate ✓ Successfully diversifying away from construction; Good growth in new industry verticals; construction = 54% of revenue at acquisition vs. 45% currently

Retail Convenience FMCG Manufacturing Logistics Financial Services Business Services ICT Telecommunication Services Technology Enablers Medtech

K e y i n v e s t m e n t t r e n d s

Investment Strategy – backing key investment trends

20

LSM migration tion-le led d gro rowth th in con

• nsu

sumer good

• ds

Gro rowin ing con

• nnectiv

ctivit ity and d dat ata a acce ccess Lo Lowes est t cost st-to to-se serve, scal alab able e busine sinesse sses High gh impa pact, t, differ erentia tiated ed servic vices es Tec echnolo

• logy-driv

iven en disrup ruptio tion to to “business as usual” Tran ansp sportab table le busine siness ss mode dels ls scaling aling across

• ss countri

ries es

Key themes Recent investments Most likely sectors

C O N T E N T S

Introduction Portfolio overview Valuation overview Liquidity analysis

21

Outlook

22

Portfolio composition Key valuation metrics

* Share price as at 30 June, 2019

2.28 1.31 9.06 10.03 7.80 80% 88% 31% 30 Jun 19 Adjusted 30 Jun 19 Cash Invested Capital Share price % of NAVPS % of NAVPS NAV discount NAV 11.34 6.9x 1.9x 31% 31%

30.9% 30.9% 31.0% 31.0% 31.1% 31.1% 31.2% 31.2% 31.3%

• 1.0x

2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x

EV / EBITDA Net debt / EBITDA Discount to NAV Discount to peer group

P o r t f o l i o C o m p o s i t i o n

Portfolio composition and valuation metrics

22

11.34 2.28 9.06 5.0x 1.9x 6.9x

NAV Cash Invested NAV Valuation

7.80 2.28 5.52 2.9x 1.9x 4.8x

NAV Cash Invested NAV Valuation

Portfolio valued at a 31% discount to the peer group... .....market “look-through” values portfolio at 4.8x EV / EBITDA

NAV BASED VALUATION SHARE BASED VALUATION*

Peer group company valuations Ethos portfolio company valuations Implied market company valuations

100 69 48 31% 31%

V a l u a t i o n o v e r v i e w

Market implied valuation analysis

23

* Share price as at 30 June, 2019

137 851 297 55 4 6 5 2 <= 4.5x > 4.5x - <= 5.5x > 5.5x - <= 6.5x > 6.5x Value - R'm Number 173 465 175 527 5 3 3 6 <= -10% > -10% - <= 0% > 0% - <= 15% > 15% Value - R'm Number EBITDA growth by company 443 291 296 270 40 3 3 8 2 1 <= 0x > 0x - <= 1.5x > 1.5x - <= 3x > 3x - <= 4.5x > 4.5x Value - R'm Number 393 201 269 477 4 4 6 3 <= 0% > 0% - <= 5% > 5% - <= 15% > 15% Value - R'm Number Sales growth by company Net debt / EBITDA by company

P o r t f o l i o c o m p a n y p e r f o r m a n c e

Growth rates and market implied EV / LTM EBITDA multiples of the portfolio

Market implied EV / EBITDA by company

24

1.71x 1.54x 1.38x 1.15x 1.14x 1.14x 1.11x 1.10x 1.08x 1.07x 1.05x 1.00x 1.00x 0.96x 0.92x 0.89x 0.73x 0.64x 0.51x 4.0 1.6 5.0 0.9 0.7 0.2 2.4 1.7 1.6 1.3 1.1 0.0 0.9 1.9 6.9 4.3 4.3 3.4 4.5

Eaton Ster Kinekor RTT Chibuku Channel Vas Synerlytic Bevco Kevro Primedia Echotel Vertice TymeBank Gammatek MTN Waco Twinsaver Neopak Eazi Autozone

Fund VI Mid Market Fund Mezzanine Fund Direct investment/Ai

Age of investment in years Positive value contribution New assets at cost Negative value contribution

P o r t f o l i o c o m p a n y p e r f o r m a n c e

Portfolio company returns

25

C O N T E N T S

Introduction Portfolio overview Valuation overview Liquidity analysis

26

Outlook

Ethos Capital commitment to underlying fund (Rm)

6 360 1 211 887 54 12 1,531 141 950 48 250 1,250 150 371 3,161 EF VI EMMF I EHP EMP 3 EF VII EaiF I Direct Investments Total Invested/Committed Undrawn commitments

C u r r e n t F u n d c o m m i t m e n t s

Fund commitments and levels of undrawn capital by Fund

27

173% 139% 125% 109% 126% 163% Harbourvest Hg APAX Princess Pantheon Ethos Capital 48% 50% 63% 44% 59% 58% Harbourvest Hg APAX Princess Pantheon Ethos Capital

Total commitment ratio = (Invested Capital + Undrawn Commitments) / Net Asset Value Commitment coverage ratio = (Cash + Unutilised Debt Facilities) / Undrawn Commitments R e l a t i v e l i q u i d i t y b e n c h m a r k s

Ethos Capital liquidity benchmarked against international peers

28

32% 19% 19% 19% 12% FY20 FY21 FY22 FY23 FY24

3,161 2,853 339 308 1,452 493 500 69 537 365 293 1,514 2,143

(500)

• 500

1,000 1,500 2,000 2,500 3,000 (500)

• 500

1,000 1,500 2,000 2,500 3,000 Total commitments Fees adj Net commitments Invested capital Current cash Debt facility Treasury shares Commitment gap FY20 FY21 FY22 FY23 FY24

Realisations Existing outflows Available liquidity

* Available liquidity = Cash plus Debt Facility less Net Investment outflows / Realisation inflows

A v a i l a b l e l i q u i d i t y a n d o u t l o o k

Liquidity profile analysis based on current commitments

Estimated

• utflows

by year

29

• 35%
• 25%
• 15%
• 5%

5% 15% 25% 35% 45% 55%

Discount to NAV 3 Year NAV Growth

Average = 18% Average = 36% 2x

R e l a t i v e s h a r e p r i c e t o N A V d i s c o u n t

South African listed PE firms trade at 2x the discount of international peers

30

C O N T E N T S

Introduction Portfolio overview Valuation overview Liquidity analysis

31

Outlook

Unlikely to be any short term improvement in business confidence and corporate investment Outside of South Africa, growth remains strong although currency and political risks remain elevated Growth in NAV likely to increase as the portfolio is c.80% invested Investment pipeline remains strong but given the market conditions and lack of competition, focus remains on being extremely selective on deals Liquidity management remains a key focus but Board remains focused on ways to enhance shareholder value Board continues to assess strategic options that could unlock value for shareholders

O u t l o o k

Outlook

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DISCLAIMER

THE INFORMATION CONTAINED HEREIN IS PROVIDED FOR INFORMATIONAL AND DISCUSSION PURPOSES ONLY AND IS NOT, AND MAY NOT BE RELIED ON IN ANY MANNER AS, LEGAL, TAX OR INVESTMENT ADVICE OR AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY AN INTEREST IN ANY OF THE ETHOS PRIVATE EQUITY FUNDS OR LISTCO (TOGETHER THE “FUNDS”). A PRIVATE OFFERING OF INTERESTS IN THE FUNDS WILL ONLY BE MADE PURSUANT TO A CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM (THE “OFFERING MEMORANDUM”) AND SUBSCRIPTION DOCUMENTS, WHICH WILL BE FURNISHED TO QUALIFIED INVESTORS ON A CONFIDENTIAL BASIS AT THEIR REQUEST FOR THEIR CONSIDERATION IN CONNECTION WITH SUCH OFFERING. THE INFORMATION CONTAINED HEREIN WILL BE QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE OFFERING MEMORANDUM, WHICH CONTAINS ADDITIONAL INFORMATION ABOUT THE INVESTMENT OBJECTIVE, TERMS AND CONDITIONS OF AN INVESTMENT IN THE FUNDS AND ALSO CONTAINS TAX INFORMATION AND RISK DISCLOSURES THAT ARE IMPORTANT TO ANY INVESTMENT DECISION REGARDING THE FUNDS. NO PERSON HAS BEEN AUTHORISED TO MAKE ANY STATEMENT CONCERNING THE FUNDS OTHER THAN AS SET FORTH IN THE OFFERING MEMORANDUM AND ANY SUCH STATEMENTS, IF MADE, MAY NOT BE RELIED UPON. THE INFORMATION CONTAINED HEREIN MUST BE KEPT STRICTLY CONFIDENTIAL AND MAY NOT BE REPRODUCED OR REDISTRIBUTED IN ANY FORMAT WITHOUT THE APPROVAL OF THE FUNDS. NOTWITHSTANDING THE FOREGOING, EACH INVESTOR AND PROSPECTIVE INVESTOR (AND EACH EMPLOYEE, REPRESENTATIVE, OR OTHER AGENT THEREOF) MAY DISCLOSE TO ANY AND ALL PERSONS, WITHOUT LIMITATION OF ANY KIND, THE TAX TREATMENT AND TAX STRUCTURE OF THE FUNDS AND ITS INVESTMENTS AND ALL MATERIALS OF ANY KIND (INCLUDING OPINIONS OR OTHER TAX ANALYSES) THAT ARE PROVIDED TO SUCH INVESTOR OR PROSPECTIVE INVESTOR RELATING TO SUCH TAX TREATMENT AND TAX STRUCTURE, PROVIDED, HOWEVER, THAT SUCH DISCLOSURE SHALL NOT INCLUDE THE NAME (OR OTHER IDENTIFYING INFORMATION NOT RELEVANT TO THE TAX STRUCTURE OR TAX TREATMENT) OF ANY PERSON AND SHALL NOT INCLUDE INFORMATION FOR WHICH NONDISCLOSURE IS REASONABLY NECESSARY IN ORDER TO COMPLY WITH APPLICABLE SECURITIES LAWS. AN INVESTMENT IN THE FUNDS WILL INVOLVE SIGNIFICANT RISKS, INCLUDING THE LOSS OF THE ENTIRE INVESTMENT. THE FUNDS WILL BE ILLIQUID, AS THERE IS NO SECONDARY MARKET FOR INTERESTS IN THE FUNDS AND NONE IS EXPECTED TO DEVELOP. RESTRICTIONS APPLY TO TRANSFERS AND WITHDRAWALS OF INTERESTS IN THE FUNDS, AND THE INVESTMENT PERFORMANCE OF THE FUNDS MAY BE VOLATILE. THE FEES AND EXPENSES CHARGED IN CONNECTION WITH AN INVESTMENT IN THE FUNDS MAY BE HIGHER THAN THE FEES AND EXPENSES OF OTHER INVESTMENT ALTERNATIVES AND MAY OFFSET PROFITS. BEFORE DECIDING TO INVEST IN THE FUNDS, PROSPECTIVE INVESTORS SHOULD READ THE MEMORANDUM OF THE FUNDS AND PAY PARTICULAR ATTENTION TO THE INVESTMENT CONSIDERATIONS CONTAINED IN THE MEMORANDUM. INVESTORS SHOULD HAVE THE FINANCIAL ABILITY AND WILLINGNESS TO ACCEPT THE RISK CHARACTERISTICS OF THE FUNDS’ INVESTMENTS. IN CONSIDERING ANY PERFORMANCE DATA CONTAINED HEREIN, YOU SHOULD BEAR IN MIND THAT PAST OR TARGETED PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS, AND THERE CAN BE NO ASSURANCE THAT THE FUNDS WILL ACHIEVE COMPARABLE RESULTS OR THAT TARGET RETURNS WILL BE

• MET. IN ADDITION, THERE CAN BE NO ASSURANCE THAT UNREALISED INVESTMENTS WILL BE REALISED AT THE VALUATIONS SHOWN AS ACTUAL. REALISED RETURNS WILL DEPEND ON, AMONG OTHER FACTORS, FUTURE OPERATING RESULTS, THE VALUE OF THE ASSETS AND MARKET CONDITIONS AT THE

TIME OF DISPOSITION, ANY RELATED TRANSACTION COSTS, AND THE TIMING AND MANNER OF SALE, ALL OF WHICH MAY DIFFER FROM THE ASSUMPTIONS ON WHICH THE VALUATIONS CONTAINED HEREIN ARE BASED. THE IRRS PRESENTED ON A “GROSS” BASIS DO NOT REFLECT ANY MANAGEMENT FEES, CARRIED INTEREST, TAXES AND ALLOCABLE EXPENSES BORNE BY INVESTORS, WHICH IN THE AGGREGATE MAY BE SUBSTANTIAL. ALL IRRS PRESENTED ARE ANNUALISED AND CALCULATED ON THE BASIS OF MONTHLY INVESTMENT INFLOWS AND OUTFLOWS. NOTHING CONTAINED HEREIN SHOULD BE DEEMED TO BE A PREDICTION OR PROJECTION OF FUTURE PERFORMANCE OF THE FUNDS. PROSPECTIVE INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND EVALUATION OF THE INFORMATION CONTAINED HEREIN. EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS OWN ATTORNEY, BUSINESS ADVISER AND TAX ADVISER AS TO LEGAL, BUSINESS, TAX AND RELATED MATTERS CONCERNING THE INFORMATION CONTAINED HEREIN. EXCEPT WHERE OTHERWISE INDICATED HEREIN, THE INFORMATION CONTAINED HEREIN IS BASED ON MATTERS AS THEY EXIST AS OF THE DATE OF PREPARATION OF THIS PRESENTATION AND NOT AS OF ANY FUTURE DATE. THE INFORMATION PROVIDED HEREIN WILL NOT BE UPDATED OR OTHERWISE REVISED TO REFLECT INFORMATION THAT SUBSEQUENTLY BECOMES AVAILABLE, OR CIRCUMSTANCES EXISTING OR CHANGES OCCURRING AFTER THE DATE HEREOF. CERTAIN INFORMATION CONTAINED IN THIS PRESENTATION CONSTITUTES “FORWARD-LOOKING STATEMENTS,” WHICH CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS “MAY,” “WILL,” “SHOULD,” “EXPECT,” “ANTICIPATE,” “TARGET,” “PROJECT,” “ESTIMATE,” “INTEND,” “CONTINUE” OR “BELIEVE,” OR THE NEGATIVES THEREOF OR OTHER VARIATIONS THEREON OR COMPARABLE TERMINOLOGY. DUE TO VARIOUS RISKS AND UNCERTAINTIES, ACTUAL EVENTS OR RESULTS MAY DIFFER MATERIALLY FROM THOSE REFLECTED OR CONTEMPLATED IN SUCH FORWARD-LOOKING STATEMENTS. CERTAIN INFORMATION CONTAINED IN THIS PRESENTATION IS BASED ON OR DERIVED FROM INFORMATION PROVIDED BY INDEPENDENT THIRD-PARTY SOURCES. ETHOS BELIEVES THAT SUCH INFORMATION IS ACCURATE AND THAT THE SOURCES FROM WHICH IT HAS BEEN OBTAINED ARE RELIABLE. ETHOS CANNOT GUARANTEE THE ACCURACY OF SUCH INFORMATION, HOWEVER, AND HAS NOT INDEPENDENTLY VERIFIED THE ASSUMPTIONS ON WHICH SUCH INFORMATION IS BASED. THIS PRESENTATION IS BEING PROVIDED ON A CONFIDENTIAL BASIS. ACCORDINGLY, THIS PRESENTATION MAY NOT BE REPRODUCED IN WHOLE OR IN PART, AND MAY NOT BE DELIVERED TO ANY PERSON WITHOUT THE PRIOR WRITTEN CONSENT OF THE FUNDS.

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