SECTION 12 J REGISTERED PUBLIC COMPANY INVESTS IN QUALIFYING - PowerPoint PPT Presentation

SECTION 12 J REGISTERED PUBLIC COMPANY INVESTS IN QUALIFYING COMPANIES IN TERMS OF 12J

ANTON VAN DEN HEEVER & JONATHAN KILLIK

OUR TEAM

IN THE BEGINNING

• Long Term Contracts (5 yrs) • 3 Year / 2 year extensions • Team - Combined 50yrs Management Experience & 100yrs Combined Pilot Experience • Standard SOP for all areas • Scalability

Established in 2016 Operational since March 2017 Process of registration in March 2017 to meet the exponential demand

VCA6 =ER4 VCA1 =ER1 VCA1 VCA2 VCA3 VCA4 VCA5 VCA2 =ER2 VCA6 VCA5 =RR1/2/3 VCA4= RS1/2/3 VCA3 = ER3

VCA6 =ER4 VCA1 =ER1 -5 Year Fixed Cost -5 Year Fixed Lease Cost Lease -Minimum Yields -Minimum Yields -Insured -Insured -Dry OPEX -Dry OPEX 5 Year Sale - buy Option on VCA2 =ER2 Aircraft VCA5 =RR1/2/3 US$ Based -5 Year Fixed Cost 3 Year Fixed Cost Lease Lease / 2 Year ext -Minimum Yields Insured VCA4= RS1/2/3 VCA3 = ER3 -Insured Dry OPEX -Dry OPEX -5 Year Fixed Cost 3 Year Fixed Cost Lease Lease / 2 Year ext -Minimum Yields Insured -Insured Dry OPEX -Dry OPEX

THE 12J OPPORTUNITY Example of Tax Benefit as illustrated below based on an investment of R 1 000: Cost per Share Description Individuals Companies Initial Investment 1 000 1 000 Effective Tax Rate 45% 28% POTENTIAL Tax Relief (In the financial year of investment) 450 280 Net Cost of Investment 550 720 RETURNS Cost per share: 1 000 1 000 R550,00 R720,00 Risk Capital: Anticipated Cashflows incl Dividends over the Investment R1 032,85 R1 229,13 Period: Period of Investment: 5 Years 5 Years Anticipated Return (Internal Rate of Return "IRR"): 20% 16% Anticipated Dividend Yields: 11- 16% 13-18% Frequency of Dividends: Bi-Annually Bi-Annually Fees & Taxes: Returns are Net of Fees and Taxes Returns are Net of Fees and Taxes Year 5 Minimum sale of 75% of the Asset Year 5 Minimum sale of 75% of the Exit Mechanism: at a Dollar Based Rate Asset at a Dollar Based Rate Effective Return projected over 5 years 100%

Contracted Medical Aids Precious Metal Services BLACK OPS AVIATION

OUR CLIENT & JV OPERATING PARTNER Seeks to ‘share’ All licenses that are required • Runs the Cell c EMS call center Partnered with ER24 Crew and 138 • Runs Vodacom 112 EMS number • In process of acquiring the next largest cellular provider EMS call center • Partnership with ER24 established in 2017 • Extended service to Air & previously difficult to reach locations • Air & ground support to Airangels • Largest ambulance operator in RSA • Non-profit client of Flightshare • ER24 paramedics crew missions • Operating since March 2017 • A division of IACTW NGO • Provides Life Saving mercy-flight services • Trustees and CSR opportunity

SECTION 12J’S ✓ Invest pre-tax earnings ✓ Projected return 100% risk capital nett of tax ✓ Medium term investment – 5 years ✓ Bi-Anual Dividends

SECTION 12J’S ✓ Introduced 1 July 2009 ✓ Stimulate equity investment in small/medium enterprises ✓ Extensive amendments with effect Feb 2015 ✓ 12 Year sunset clause 30 June 2021 ✓ VCC a misnomer… pvt equity for small expanding companies ✓ Based on VCT legislation (introduced UK 1995) ✓ SA Legislation more favourable then UK - amount per investor uncapped

SECTION 12J’S ✓ Industry Sectors ✓ VCMS ✓ General ✓ Tech ✓ Hospitality ✓ Alternative Energy ✓ VCMS – succesfully launched over 30 12 J Funds

Invest your tax money in a transparent essential service… Invest because dbl Risk Capital After Tax Invest you Rands into Saving A Life

12J VIDEO

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