About color themes Choose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts. 1 ! 2 How do private equity investors create value in South Africa? A joint study of private equity exits in Africa by EY and AVCA Presentation at SAVCA/FT/EMPEA Conference | 11 February 2014

About color themes Choose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts. 1 ! 2 About the study Page 1 ► Annual study of African exits in partnership with AVCA, now in its 2 nd year ► Looks at how PE firms create value in portfolio companies in Africa that have now been fully exited ► EY has done similar studies in Europe, North America, Australasia and Latin America South Africa: ► Identified 85 exits from across South Africa ► Interviewed 13 PE firms on 41 exits in South Africa Special thanks to SAVCA members who have given their time and energy to provide information for this Study.

About color themes Choose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts. 1 ! 2 Exit activity in South Africa Exit route, by exit year, exit population in South Africa Number of PE exits in South Africa, 2007–13 Page 2 Source: How do private equity investors create value?: 2014 Africa Study, EY and AVCA, Based on preliminary data

About color themes Choose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts. 1 ! 2 Exit activity in South Africa – by sector Industrial goods is the most active sector for exits Source: How do private equity investors create value?: 2014 Africa Study, EY and AVCA, Based on preliminary data. Page 3 19%Industrial goods 16%Technology 12% Construction & materials 11% Business services 7% Financial services 6%Healthcare 6%Telecom 5% Agriculture / Forestry Food & beverage5% Retail5% Automobiles & Parts 2% Mining and metals 2% Media1% Personal & household 1% Travel & leisure1% Utilities / Oil & Gas 1%

About color themes Choose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts. 1 ! 2 Exit activity in South Africa – by size Number of exits in South Africa, by entry EV (US $m) Page 4 Source: How do private equity investors create value?: 2014 Africa Study, EY and AVCA, Based on preliminary data.

About color themes Choose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts. 1 ! 2 5 key findings Page 5 Source: How do private equity investors create value?: 2014 Africa Study, EY and AVCA, Based on preliminary data. 53% 53% had access to PE firm’s network 82% 82% had governance changes 85% 85% deals where incumbent management teams backed 56% 56% sold to trade buyers 1.5x 1.5x relative to market return

About color themes Choose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts. 1 ! 2 Exit enablers 1.Leverage networks and relationships – most exits are proprietary and exclusive “The exit came via referral from intermediaries who said there was some interest from a strategic. It had to be the right price to get the sponsor to exit” 2.Start exit preparation early “Two years prior to sale, we re-positioned and re-branded the company, and built the momentum carefully” 3.Ensure continuity of management teams or clear succession planning – it gives buyers confidence “The management team typically have golden handcuffs for 3 years after we exit” 4.Take advice on currency exposure/ risks “How a deal is structured is key. With currency fluctuations and other external events, a pure vanilla equity exposure can be risky" Page 6