AUDITED GROUP INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, Ksh M Ksh M % Turnover14,17911,40124% EBITDA3,0512,66614% Profit before Tax2, % Taxation % Profit After Tax1, % EPS Ksh %

3 GROUP BALANCE SHEET TOTAL ASSETS AS AT DECEMBER 31, 2013– KSH M Total 29,705 Total 26,953

4 GROUP BALANCE SHEET TOTAL LIABILITIES AS AT DECEMBER 31, 2013 – KSH M Total 26,953

GROUP CASH FLOW STATEMENT FOR THE PERIOD ENDED DECEMBER 31, 2013 SOURCES OF FUNDS Ksh M Cash Generated from Operations2,521 Decrease in inventories786 Increase in Payables541 Increase in borrowings1,277 Decrease in cash1,084 Total Sources6,209 5

GROUP CASH FLOW STATEMENT FOR THE PERIOD ENDED DECEMBER 31, 2013 APPLICATION OF FUNDS Ksh M Interest Paid581 Tax Paid181 Dividends Paid248 Increase in Trade/Other Receivables783 Capital Expenditure:4,416 Total Applications6,209 6

HISTORICAL PERFORMANCE TURNOVER KES M GROUP TURNOVER Grows 24% over previous year Cement sales grows 31% Cement 86% of the total business 7 CAGR 23% per year

HISTORICAL PERFORMANCE EBIDTA KES M EBIDTA EBITDA increased by 14% Combination of local and imported clinker Dar plant production is based on imported clinker 8 CAGR 25% per year

PROFIT BEFORE TAX Profit Before Tax has increased by 12%. HISTORICAL PERFORMANCE PROFIT BEFORE TAX KES M 9 CAGR 24% per year

PROFIT AFTER TAX Increases by 8% HISTORICAL PERFORMANCE PROFIT AFTER TAX KES M CAGR 24% per year 10

HISTORICAL PERFORMANCE EARNINGS & DIVIDENDS KES PER SHARE EPS EPS AND DPS The rapid growth over the last Few Years Has Been Part Funded With Retained Earnings. Dividend Payout is 22% of Earnings and has increased by 20% in

HISTORICAL PERFORMANCE TOTAL ASSETS KES M INVESTING IN CEMENT CAPACITY Over the last 5 years ARM has invested In a 1,000,000 tons cement capacity in Kenya made up of an integrated clinker and cement capacity in Kaloleni and grinding capacity in Athi River. During 2011, ARM acquired a cement grinding plant with 100,000 tons capacity in Kigali, Rwanda. The Dar Cement plant with a capacity of 750,000 tons was commissioned in October 2012 and the 1,200,000 ton clinker plant in Tanga will be ready for commissioning in June

SHORT TERM A1 : Highest certainty of timely payments, liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. LONG TERM A : Good investment Grade, indicating high credit quality, good protection factors, risk factors are small and variable due to economic cycles HISTORICAL PERFORMANCE CREDIT RATING YEARSHORT TERM LONG TERM 2007A1A 2008A1A 2009A1A 2010A1A 2011A1A 2012A1A 2013A1A 13

HISTORICAL PERFORMANCE MARKET CAP GROWTH SHARE PRICE REFLECTS INCREASED INSTITUTIONAL INTEREST Increasing interest from institutional investors in the cement sector has enabled competitive industry benchmarked pricing Over 15% of the free float of 48% is held by institutional investors Whilst forward capacity utilization and earnings factored in the current price, new capacity of 1.5 m tpa under construction In Tanzania not reflected in share price In January 2013, The Company Shares were split 1 to 5 NSE. MARKET CAP GROWTH Dec 2005 US$ 32 M 15 TH NOV 2013 US$ 472M 14

KENYA CUMMULATIVE AFTER TAX CASH GENERATION KSH 9.15 BILLION 2004 TO 2013

KENYA CUMMULATIVE AFTER TAX CASH UTILIZATION K SH 9.15 BILLION 2004 TO 2013

CUMMULATIVE INVESTMENT IN TANZANIA CEMENT KSH 14.5 B 2008 TO 2013

GROUP NET DEBT KES M 18

KENYA NET DEBT KSH M

TANZANIA NET DEBT WITH AFC CONVERTIBLE NOTES KSH M

TANZANIA NET DEBT EXCLUDING AFC CONVERTIBLE NOTES KSH M

TANZANIA DEBT PROFILE USD MKSH B 1PTA/DBSA AUREOS ELN - NIC STANBIC BANK AFC (Equity Convertible Notes)504.5 TOTAL DEBT WITH AFC TOTAL DEBT WITHOUT AFC806.5 EQUITY - KENYA CASH INJECTION60.5 EQUITY - AFC504.5 TOTAL EQUITY565.0 DEBT TO EQUITY (80/56)59:41

CAPACITY VALUATION ARM CAPACITY2.6 MTPA VALUATION PER TON OF CAPACITY INDUSTRY AVERAGE USD 325 PER TON POTENTIAL VALUATION 2.6 MTPA x USD 325 = USD 845 M

@ 8% growth Installed and Projected New Capacity with Local Clinker Installed and Projected New Capacity with Local Clinker EAST AFRICA AND REGIONAL MARKETS DEMAND NEW GRINDING CAPACITY LIKELY TO INCREASE FASTER THAN NEW CLINKER CAPACITY AND CATCHING UP WITH DEMAND Actual demand million tons 24 5 Million Ton per year clinker deficit

KENYA CLINKER CAPACITY SHORTFALL 2013 TOTAL CEMENT CONSUMPTION 4.5 mtpa TOTAL CAPACITY MET WITH LOCAL CLINKER 3.0 mtpa TOTAL CEMENT CONSUMPTION MET WITH IMPORTED CLINKER 1.5 mtpa 25

TANZANIA CLINKER CAPACITY SHORTFALL 2013 TOTAL CEMENT CONSUMPTION 3.5 mtpa TOTAL CAPACITY MET WITH LOCAL CLINKER 1.9 mtpa TOTAL CEMENT CONSUMPTION MET WITH IMPORTED CLINKER 1.6 mtpa 26

BUT IMPORTED CLINKER IS MORE EXPENSIVE Imported Clinker Cost 72 % Higher Actual Figures based to

VIEW OF THE 4,000 TPD TANGA PLANT 28

STRATEGY STRATEGIC INTENT AND SHAREHOLDER VALUE PROPOSITION Make ARM Cement the largest cement manufacturer in the region with capacity doubling to 5 Million tons. Operate at internationally benchmarked efficiencies and maintain valuation of US $ per ton of installed annual cement capacity 29

ARM CEMENT LTD THE COMPANY ON THE MOVE