INVESTOR PRESENTATION INTERWASTE HOLDINGS LTD. (JSE : IWE) INVESTOR PRESENTATION February 2017

DOING THE RIGHT THING STARTS WITH CHANGING THE WAY WE THINK

AGENDA Company Introduction Industry Analysis 5 Year Financial Performance Market Opportunities Industry Outlook Conclusion

Company Overview

COMPANY OVERVIEW Established 1989 27 Years Operational Experience JSE Altx Listing 2007 Main Board Listing 2014 National and SADC Footprint Fully Accredited/Licensed Service Provider Shareholding 40% Management Owned BEE Level 3

COMPANY OVERVIEW Competitive Positioning Integrated Waste Management Solution Cradle to Grave Services Professional IP based Operational Zero Waste to Landfill 1st to Market National Footprint Service Availability Operational Facilities Waste to Energy Treatment Landfill Reporting Requirements On line reporting

COMPANY OVERVIEW – BUSINESS MODEL

COMPANY OVERVIEW – DIVISIONAL Logistics Facilities

COMPANY OVERVIEW Logistics Facilities Logistics Facilities Integrated Solution On Site Staffing 2 500 Staff 550 Vehicles 17 500 Containers Facilities 2 Waste Landfill Facilities 16 Operational centres / Waste Transfer Stations 2 Waste to Energy Facilities RDF Facilities Blending Platform 3 Effluent Treatment Plants

COMPANY OVERVIEW Segment Overview Performance Drivers Logistics Facilities Segment Overview Low Barriers to Entry Low Capital Requirements Highly Competitive Performance Drivers Logistical Efficiencies Area Density Fixed vs. Variable 50/50 Facilities Dependant Segment Overview High Barriers to Entry High Capital Requirements Regulated Environment Few Market Players Performance Drivers Legislation Volumes/Tonnages Fixed vs. Variable 70/30 Logistics Dependant

FACILITIES – LANDFILL Store of Waste (Commodity) Class B Designed Facilities Only two commercially available legally compliant sites Accepts Type 2, 3, 4 waste materials Investment R 250 Million Current Capacity 3 Million cubic meters of air space Available Capacity 50 Million cubic meters of air space

FACILITIES - BLENDING PLATFORM Co-processing facility that receives, stores and blends High Value Hazardous Waste Sludge and liquids with energy (cv) value power generation, steam generation, heat generation, Cement kilns other suitable combustion installations. Investment R 15 Million Capacity 40 000 tons per year

FACILITIES - REFUSE DERIVED FUELS High quality fuel produced from solid waste Unique processing methodology power generation, steam generation, heat generation, cement kilns other suitable combustion installations. Current Investment R 10 Million Capacity 15 000 tons per year

Industry Demand: 150 000 tons per annum The cement process : A true opportunity to co-process waste in an environmentally manner. Raw mix preparation Burning Cement grinding Additive to cement High flexibility of our raw mix Very High temperature (Flame at 2000°C) High residence time (above 5 seconds) Gas cleaning inherent to the process No Ash – No waste 70 types of Waste and 350 kG/T clinker 85% substitution Alternative raw Material Alternative Fuels Industry Demand: 150 000 tons per annum

Industry Analysis

INDUSTRY ANALYSIS Waste generation ± 70 million ton per year Municipal and Private Sectors Reporting, Compliance, Urbanization Source: SAWIS

INDUSTRY ANALYSIS – HIERARCHY Traditional Model Global Trend Reduce Reuse Recycle Transform Landfill Reduce Reuse Recycle Transform Landfill Waste Volumes/Tonnages

INDUSTRY ANALYSIS Source: SA Department of Science and Technology, 2014

INDUSTRY ANALYSIS – DRIVERS OF INNOVATION Interwaste Innovations Conventional Disposal Costs Carbon Tax Anaerobic Digestion 2014 NEMWA Amendments RDF Packaging Regulations Blending Platform Landfill Classification Effluent Treatment 2010 Air Quality Act Commodity Trading 2008 NEMWA 1999 National Water Act On-site Solutions 1998 Minimum Requirements Available Landfill Airspace Time

INDUSTRY ANALYSIS – MARKET VALUE ESTIMATE Source: Internal

INDUSTRY ANALYSIS – MARKET VALUE ESTIMATE Source: Internal

INDUSTRY ANALYSIS – MARKET SHARE Domestic sector Excluded from overall market estimate Municipal By Laws

Financial Performance 5 Year Financial Review

FINANCIAL PERFORMANCE – 5 YEAR PERFORMANCE

COMPANY OVERVIEW – MARKETS SERVED 80% Annuity Based Revenues Three to Five Year Contract Periods High Levels of Customer Retention 10 – 15 Years Bi Annual Escalations

FINANCIAL PERFORMANCE – 5 YEAR PERFORMANCE

FINANCIAL PERFORMANCE – Revenue Operating Profit 2015

FINANCIAL PERFORMANCE - CAPEX

FINANCIAL PERFORMANCE – CASH FLOWS

FINANCIAL PERFORMANCE – CASH FLOWS 2013 FG Landfill Fleet Capitalisation Previously off balance sheet Share Capital R 80 Million Loans R 115 Million 2014 Fleet Capitalisation Previously off balance sheet 2016 Half Year Klinkerstene Landfill

FINANCIAL PERFORMANCE - ROA

FINANCIAL PERFORMANCE – LOGISTICS

FINANCIAL PERFORMANCE – LOGISTICS + 2 YEARS

FINANCIAL PERFORMANCE – FACILITIES

FINANCIAL PERFORMANCE – FINANCIAL INDICATORS 2011 2012 2013 2014 2015 ROA 0.57 7,7 9,12 9,99 9,17 ROE -2,55 6,04 8,45 9,85 8,17 Assets/ Turnover 1,16 1,33 1,24 0,99 1,03 ROCE -1,96 4,48 5,67 6,28 5,22 Source: INET

FINANCIAL PERFORMANCE – 6 MONTH COMPARATIVE (ZAR ‘mil) 2015 – 6 Months 2016 – 6 Months %Change Revenue 420 445 6% Gross Profit 222 243 10% Gross Profit Margin 52% 54% 2% Operating Profit 32 41 28% Operating Profit Margin 7.6% 9.2% 13% EPS* 3,0 4,4 46% * Basic EPS less exceptional items

Market Opportunities

MARKET OPPORTUNITIES - FACILITIES Waste treatment and disposal will offer the opportunities required for the group to grow organically and leverage its facilities Source: Case study JHB and Tswane Metros Airspace Study

MARKET OPPORTUNITIES LANDFILLS IN PTA & JHB 2016 FG Landfill Klinkerstene FG Landfill Klinkerstene Multisands Gauteng Municipal Landfill Sites Near Capacity No Municipal Development in Future Capacity Source: Case study JHB and Tswane Metros Airspace Study

COMPETITOR ANALYSIS WASTE TREATMENT and DISPOSAL ASSETS MARKET OPPORTUNITIES COMPETITOR ANALYSIS WASTE TREATMENT and DISPOSAL ASSETS Competitor 1 3.5   1 2 Competitor 2 1.5 Interwaste 5 Competitor 3 Competitor 4 Competitor 5 Competitor 6 Hazardous Waste Landfills Glass B Landfill Sites Unlined & Non-Compliant Landfill sites Waste Transfer Stations Anaerobic Digester Liquid Waste Treatment Plant Refuse Derived Fuel Plant Waste Evaporation Plant Hazardous Waste Stabilization Plant Licensed Composting Facility Liquid Blending Platform WTE Medical Waste Incinerator Recycling Processing Plant Source: Internal

Correct Status of Development MARKET OPPORTUNITIES Project Description Investment Phase Correct Status of Development F.G. Landfill “B” site Completed Site Operational Klinkerstene Landfill “B” site Hub Transfer Station Complete Power Street H:H Treatment Plant EIA – Complete Site Operational Future Development* Multi Sands Landfill “B” site EIA Only Site to be developed around 2018 /19 * Amadwala Landfill H:H site Moatize Landfill H:H site Future Development * Gauteng Waste to Energy Plant DC AD Drakenstein Waste to Energy Plant S.A.’s first municipal Waste to Energy Plant * Investment subject to hurdle rate calculations

MARKET OPPORTUNITIES - MOZAMBIQUE

INDUSTRY OUTLOOK

INDUSTRY OUTLOOK Long term GDP growth estimated at 2% (IMF 2016) Waste Management Industry closely aligned Stagnating growth in commercial, manufacturing, industrial, and mining sectors Pending Legislation Demand Driver Increasing Levels of Compliance Low Levels of Municipal Infrastructure Development (Landfill)

STRATEGIC POSITIONING Interwaste Strategically Aligned Solution based - Hierarchy of Waste Management Facilities Operational Industry and Service Diversification National Footprint Annuity Based Income Capacity within Existing Assets SADC Mozambique Oil and Gas Sector

Conclusion

CONCLUSION Targeted ROE 15% (2018) Commited to Dividend Policy Strategy Based on Organic Growth End of Investments Cycle Leverage of Existing Infrastructure Major Investments in Facilities Completed Klinkerstene Landfill (30Million) Refuse Derived Fuels Maintenance Capex 10% of Revenues Sustainable Growth Rates Positive Cash Flows Future growth funded by operational cash flows

CONCLUSION Q & A