Reviewed Group Results for the year ended 31 March 2009 for the - PDF document

Reviewed Group Results for the year ended 31 March 2009 for the year ended 31 March 2009

Agenda Introduction Factors effecting our performance Financial review Review of operations Review of operations Prospects

Business of Brait Introduction Brait’s business is the structuring, raising and management of investment funds that are typically classified Alternative Assets. The current product-set includes private equity funds, mezzanine debt funds and a range of hedge funds solutions i t it f d i d bt f d d f h d f d l ti Additionally, Brait deploys its capital in proprietary investment programmes in these product areas These investments are made predominantly in South Africa and its region Investors include leading global and South African institutions Brait’s operations are organised in two segments – Private Capital and Public Markets

Highlights Introduction Earnings • Profit from South African operations up by 42% to R241.9 million (2008: 41% decrease) • Group profit from operations decreased by 21% to R237.3 million (2008: 31% decrease) • Headline earnings from continuing operations decreased by 34% to R166.6 million (2008: 8% decrease) • Attributable earnings decreased by 58% to R166.6 million (2008: 16% increase) Attributable earnings decreased by 58% to R166.6 million (2008: 16% increase) • Return on equity 13% (2008: 30%)

Highlights (continued) Introduction • NAV robust at 1 436.4 cents per share, increased by 0.3% (2008: 19% increase) • Assets under Management (fee earning) decreased by 9% from R11 6 billion to • Assets under Management (fee earning) decreased by 9% from R11.6 billion to R10.5 billion (2008: 20% increase) • Cash generated of R415.1 million (2008: R117.4 million) compared to cash applied of R279.3 million (2008: R101 million) • Strong cash position of R430.1 million (2008: R417.7 million) • Annual dividend distribution increased by 19% to 178.90 cents per share (2008: 13% increase)

Factors effecting our performance Introduction Value Drivers • Investment product performance Operating Environment • Assets Under Management • Market conditions • Private Equity Fund-to-Fund cycle • Global recessionary conditions • New product development • Economic uncertainty • Deployment of capital in Proprietary Investing

Financial Review

Key Performance Measures Financial Review Return Assets Attributable on Under Earnings Equity Management Investment Net Product Product Asset Asset Dividend Dividend Performance Value

Return on Equity Financial Review 50.0% 45% 45.0% 41% 40.0% 40.0% 35.0% 31.1% 30% 30% 29% 29% 30.0% 28% 25.0% 25 0% 25% 25% 23% 20.0% 15.0% 13% 10.0% 5.0% 0.0% Mar 05 Mar 05 Mar 06 Mar 06 Mar 07 Mar 07 Mar 08 Mar 08 Mar 09 Mar 09 ROE LT ROE Long Term target

Attributable Earnings Financial Review 440.0 45% 393.0 390.0 30% 26% 26% 30% 338.8 340.0 340 0 339.1 300.8 15% 301.4 290.0 267.9 240.0 211.7 238.2 0% R’m 190.0 166.6 -15% 140.0 90.0 -30% 40.0 -45% -10.0 -51% Mar 05 Mar 06 Mar 07 Mar 08 Mar 09 -60.0 -60% Profit Target line (12.5% CAGR) Actual vs Target

Assets Under Management growth Financial Review 14 11.6 12 10.5 10 10 9.4 9 4 8 Rbn 6.1 6 6 4.4 3.6 4 3.0 2.5 2.1 2 0 Mar 05 Mar 06 Mar-07 Mar-08 Mar 09 ZAR Target growth (20% CAGR)

Investment Product Performance Financial Review Brait III & IV 4.5% Private Capital AEP 1 4.2% Mezzanine Partners Fund 17.2% Brait Multi-Strategy Fund a u S a egy u d 29.2% 9 % Public Markets Public Markets Brait Matrix (launched 1 October 2008) 21.3% Brait Ruby Fund Brait Ruby Fund 20 9% 20.9% Lauriston Absolute Fund 0.5% Brait Absolute SA Fund -3.6%

Net Asset Value Financial Review 3 200 0 3,200.0 240% 240% 2,222.8 2,800.0 210% 200% 2,024.8 700.1 2,400.0 182% 506.0 160% 1,606.9 2,000.0 330.8 124% R’m 1,600.0 120% R 1,141.9 166.1 1,200.0 80% 757.5 59% 800.0 39.4 40% 400.0 5% - 0% Mar 05 Mar 05 Mar 06 Mar 06 Mar 07 Mar 07 Mar 08 Mar 08 Mar 09 Mar 09 NAV per year Cumulative Dividends paid Cumulative growth in NAV (base Mar 04)

Dividends per share (excluding special dividends) Financial Review 200 200 178.90 160 150.34 133.34 119.32 120 ents Ce 89.89 80 40 0 Mar 05 Mar-06 Mar-07 Mar 08 Mar-09

Abridged group income statement for the year ended 31 March y Financial Review Supplementary US$ information Reviewed Audited 2008 2009 2009 2008 US$m US$m Rm Rm 38.3 37.7 Revenue 334.1 272.6 34.5 18.6 Other income 164.4 245.9 72.8 518.5 56.3 Total revenue and other income 498.5 (31.0) ( ) (30.8) Operating expenses ( ) p g p (272.8) ( ) ( (220.8) ) 0.6 1.3 Income from associates 11.6 4.4 42.4 26.8 Profit from operations 237.3 302.1 (7.5) (6.7) Finance costs (59.2) (53.8) 22.8 4.4 Capital items p 39.1 162.9 57.7 24.5 Profit before taxation 217.2 411.2 (4.7) (5.7) Taxation (50.6) (33.3) 53.0 18.8 Profit from continuing operations 166.6 377.9 2.1 - Profit from discontinued operations p - 15.1 55.1 18.8 Profit attributable to equity holders 166.6 393.0

Geographic analysis of income from continuing operations p Financial Review GEOGRAPHICAL ANALYSIS 31-Mar-09 31-Mar-08 Segment income from continuing operations Rm Rm 334.1 334 1 272.6 272 6 Revenue Revenue - International 56.3 44.0 290.1 - South Africa 216.3 164.4 245.9 Other income - International (19.3) 111.6 183.70 - South Africa 134.3 Total segment income from continuing operations Total segment income from continuing operations 498 5 498.5 518 5 518.5 Net1 and Pangea reduced international profits. Solid performance from South African operations and f f S f underlying investee companies.

Net Contributions Financial Review 31-Mar-09 31-Mar-08 Rm Rm Segment result from continuing operations 237.3 302.1 - International (4.6) 131.6 241.9 - South Africa 170.5 Net contributions from international operations negative due to global equities market. Net1’s actual operating results showed 20% growth actual operating results showed 20% growth.

Brait’s effective investment in underlying portfolio companies p p Financial Review March 09: R1,668m DGB 12% Consol 8% Pepkor 21% Primedia 6% Net 1 10% Pangea Diamond Medu 9% Fields 2% Private Equity Fund Other 9% of Funds 1% Wilderness 3% Mezz 3% Kelly 4% Sponsored Funds Toehold 1% 6% Capital Africa Premier Foods Steel 2% Steel, 2% Limited 3% Limited 3% March 08: R1,459m DGB 10% Pepkor 17% Consol 8% Medu 9% Primedia 8% Pangea Diamond Fields 3% Kelly Group 3% Pan African Net 1 16% Net 1 16% Other 10% Resource 1% Natures Choice Unallocated Mezz 3% AEP 2% 1% Participation 4% Sponsored Funds 5%

Group Income Statement Financial Review Brait Group Income Statement Year ended 31-Mar-09 31-Mar-08 Variance % Notes Rm Rm Rm 283.2 216.5 66.7 31% Fund management income 1 (231.9) (207.9) (24.0) Fund management expenses: 2 12% 51.3 8.6 42.7 498% Profit from fund management operations Investment income 3 226.9 318.8 (91.9) -29% (40.9) (40.9) (10.2) (10.2) (30.7) 301% (30.7) 301% Investment expenses Investment expenses 4 4 308.6 (122.6) -40% Profit from investment operations 186.0 237.3 317.2 (79.9) -25% Group Profit from Operations (59.2) (53.8) (5.4) Finance costs 5 10% 39.1 162.9 (123.8) -76% Capital Items 6 426.3 (209.1) -49% Profit before taxation 217.2 (50.6) (33.3) (17.3) Taxation 7 52% 166.6 393.0 (226.4) -58% Profit for the year/attributable to equity holders

Fund Management Income (Note 1): Financial Review 31-Mar-09 31 M 09 31 M 31-Mar-08 08 V Variance i % % Rm Rm Rm 166.2 185.7 (19.5) -11% Management fees 112.9 23.6 89.3 379% Fee income 4.1 9.9 (5.8) -58% Interest received 283.2 219.2 64.0 29% Total fund management income Negatively impacted by loss of net R2.5 Performance fees from CMT boosted fee billion AUM from Brait Absolute. income

Fund Management Income Financial Review Mar-09 Treasury C Capital it l 4.1 Private 1% Capital 121.2 43% Public Markets 157.9 56% 56% Mar-08 Treasury Capital 29.6 13% Private Capital 100.2 46% Public Markets 89.4 41%

Fund Management Expenses (Note 2): Financial Review 31-Mar-09 31-Mar-08 Variance % Rm Rm Rm Rm Rm Rm Fund Management Expenses: (9.9) (8.9) (1.1) 12% Advertising, marketing costs & foundation costs Audit fees & other professional fees Audit fees & other professional fees (17 6) (17.6) (19 1) (19.1) 1 5 1.5 -8% 8% (12.9) (7.4) (5.5) 75% Communication and computer costs (2.0) (1.6) (.4) 24% Depreciation (3.4) (3.0) (.4) 12% Listing and related costs (16.5) (15.3) (1.2) 8% Rent, travel and insurance costs Salaries and related costs (163.1) (146.5) (16.5) 11% (6.5) (8.7) 2.2 -25% Other costs Total Fund Management Expenses: (231.9) (210.6) (21.3) 10% Total increase of R21.3 million (10%) is in line with inflation. Communication and computer costs increased due to risk and operations management system in hedge fund business