ENTERPRISE DEVELOPMENT FUND Information Pack May 2013 Fund Overview: June 2013

2 The ASISA Enterprise Development Fund provides an optimal solution to Enterprise Development for an industry responsible for R4.64 trillion in savings and investments. Introduction The objective of the ASISA Enterprise Development Fund is to create sustainable value for all stakeholders through the growth and development of small and medium sized enterprises with a specific focus on enterprise development and supplier development. “Initiatives like these prove our industry is serious about making a difference in this country, not just where profits are to be made, but also in non-traditional areas where the only gain is the long-term development and strengthening of the social-economic fabric of our country.” Johan Van Zyl. ASISA Chairman Group CEO Sanlam

What is the ASISA ED Fund? 3 1 Invest in the growth of SMEs to create maximum shared value for investors, investees and society 1 Invest in the growth of SMEs to create maximum shared value for investors, investees and society 2 Create financial and brand benefit for investors and industry by delivering high impact ED success stories. 2 Create financial and brand benefit for investors and industry by delivering high impact ED success stories. 3 Ensure the growth and sustainability of investees by providing best practice business development support. 3 Ensure the growth and sustainability of investees by providing best practice business development support. 4 Provide an optimal BEE compliance solution for investors that marries the spirit and intent of the code. 4 Provide an optimal BEE compliance solution for investors that marries the spirit and intent of the code. 5 Align to industry and government priorities with regard to leading practice Enterprise Development. 5 Align to industry and government priorities with regard to leading practice Enterprise Development. The ASISA ED Fund creates sustainable shared value for South Africa and its Funders by managing an industry leading Enterprise Development Fund that invests in the growth and development of Small and Medium sized Enterprises with a specific focus on Enterprise Development, Supplier Development and Business Development Support.

Funding is received from investors in the form of an Investment, Grant or Loan and ED points are received immediately. Loans qualify for repayment following the loan term and Investments qualify for fund ownership, capital preservation and ROI. The investment management process is based on industry best practice and is supported by an experienced Fund Management Team. Investments are identified and screened against the fund mandate before undergoing thorough feasibility, due diligence and professional Investment Committee approval. Ongoing post-investment business development support (BDS incubation) is provided to the investee enterprises by the Fund Manager to unlock value and maximise the growth, profitability and job creation capacity of the investee enterprise. How does it work?

IMMEDIATE ED POINTS Immediate and on-going access to Enterprise Development (BEE) points TURNKEY SOLUTION Flexible, tailored turnkey ED solution aligned to Funder and SME’s unique needs COST EFFICIENCY Benefit multiplier of up to 1.5% for every Rand spent and single upfront investment that counts year on year INDUSTRY IMPACT Alignment to investor strategy, Investee needs, industry and government priorities RETURNS Targeted ROI or Capital Preservation on Fund performance TEAM Experienced ED Fund Management and Business Development Support team MARKETING Access to investment success stories for Marketing, PR & Reputational benefit GOVERNANCE Best practice governance structure and standards What is the key benefits?

How is the Fund Structured? 6 Small & Medium Enterprises (Investees) Small & Medium Enterprises (Investees) Black Ownership 51% Black Ownership 51% Investors 49% Investors 49% FUND MANAGER ASISA ED FUND INVESTORS Board of Trustees Investment Committee Fund Administrator Capital BEE Points Enterprise Development Finance ED Portfolio BDS Incubation Equity Debt Capital Investees are provided with the uniquely tailored financial and business development support they require to grow. Capital Returns

7 Detailed Benefits 1.The fund qualifies as an Enterprise Development investment in terms of the BEE Codes, thereby allowing companies in South Africa to secure their Enterprise Development points immediately on deposit. 2.The fund is a Category A Enterprise Development Beneficiary with a benefit factor multiple of up to 1. 5, thus every Rand spent can be multiplied by 1.5 when establishing ED points for the BEE Codes. Investors and Lenders retain their ED points year on year until the point at which their funds are returned. 3.Investors qualify for ownership of the Fund as well as ROI (Return on Investment) on the Fund’s performance. Lenders qualify for preservation of their loan capital, and all contributors are able to utilise the investments of the Fund for public relations, marketing and reputational benefit. 4.The fund is managed by a professional, independent and experienced Fund Management team, so Funders are not required to pay fees nor dedicate their own human resources. 5.The investment process and methodology is based on best practice and supported by an experienced and qualified team. 6.High ethical and governance standards which include: credible management team and professional reporting. Detailed annual reports will be prepared for all funders. 7.The Fund Manager provides post-investment, Business Development Support (BDS) to Investee companies to enhance the growth of investments and reduce the risk of business failure. BDS may be provided in conjunction with the ASISA Academy and Members as per the Investee’s needs. 8.ASISA’s industry wide supplier database will be used as a primary source for targeting suppliers for supplier development and investments for enterprise development.

What do we invest in? 8 The ASISA ED Fund aims to invest in enterprises with highly differentiated competitive advantage / strategic fundamentals and / or industry supply chain alignment. Our Service Offering: The ASISA Enterprise Development Fund invests in enterprises which, with the right assistance, hold the potential to create far reaching impact. We seek to find high potential businesses with the required skills and experience to succeed. We invest capital and we complement management with specialist expertise to unlock growth. Our intensive due diligence process identifies sound investments by assessing the businesses team, market, economics, and customer value proposition and selecting only those businesses for investment which have the ability to become commercially sustainable. The ASISA ED Fund will then provide the enterprise with tailored business development support to assist the growth of the business and resultant social impact. We seek to find high potential businesses with the required skills and experience to succeed.

Illustrative Investment 9 CriteriaDescription Funding RequirementR2,000,000 TurnoverR2,000,000 p/a Stage of businessEarly Growth phase GeographyJohannesburg Supply Chain AlignmentMedium Strategic FundamentalsHigh Growth potentialHigh Social ImpactHigh: Job Creation & Enviro BEELevel 3 Contributor Forecast Return20% IRR Winner of the London round of the Global social venture capital competition, Reel Gardening’s unique product range promises impact from job creation through to food security and water preservation.

10 Illustrative Investment

Business Development Projects 11 Program Management Initiation & Strategic Alignment Broker Assessment & Selection Business Development Support Monitoring, Tracking & Reporting Measurement & Evaluation Enterprise & Supplier Development Programs

Governance Structure 12 The ASISA ED Fund is governed by an experienced Board of Trustees, professional Investment Committee and specialist Fund Manager in order to ensure: Optimal alignment to BEE Codes and Sector Charters; High ethical standards, audit and governance methodologies; Leveraged partnerships with industry members and other financial institutions; Professional Fund Administration and reporting standards including detailed quarterly and annual reports; Experienced ED Fund Management and Business Development Support Representation from Industry, Government, Investors, and the ASISA Foundation as primary beneficiary set up as a B- BOS in terms of the FSC. The Board of the ASISA ED Fund represents leadership from Industry, Government and ASISA to provide strategic, legal, financial & operational governance to the Fund

THANK YOU ASISA, Bridge House Boundary Terraces 1 Mariendahl Lane, Newlands, 7700 T: +27 (0) F: +27 (0) PO Box 23525, Claremont, 7735 South Africa