NEDCOR SECURITIES – MIDCAP CONFERENCE SEAN MELNICK

GROUP SNAPSHOT The Peregrine group is a leading provider of wealth and asset management solutions. Assets under management currently exceed R 22 billion. Citadel R 10 billion Quant R 9 billion Hedge funds R 3 billion 10th biggest broker by value, 7th by shares traded and 5th by deals settled. Market capitalisation (net of treasury shares) @ R7.50 of R1.5 billion. Capitalised at 6.7% of assets under management. PE ratio per trading update (@ R7,50) between 8.2 times and 9.3 times to end March 06.

GROUP PROFILE Contribution to Sep 05 WEALTH MANAGEMENT 23% Citadel ASSET MANAGEMENT 35% Hedge Funds Peregrine Capital Peregrine Investment Managers (PIM) Caveo FOHF (JV with IS) PeregrineQuant TRANSACTIONAL 26% Broking & Structuring PROPRIETARY CAPITAL 16% Investment returns (net of group costs)

PERSONAL FINANCIAL FRAMEWORK WEALTH MANAGEMENT - CITADEL PERSONAL FINANCIAL FRAMEWORK 1.WEALTH CREATION (“What you do for a living”) 2.YOUR LIFESTYLE ASSETS (‘How you live”) 3.WEALTH PRESERVATION (“Securing your future”) 4.EXCESS ASSETS (“More than enough”)

WEALTH MANAGEMENT CITADEL Focussed on individual high-net-worth wealth management Clients with R 2 million plus to invest Average current top-up client size R 5,0 million Average new client size R 8,0 million Total assets under management approximately R 10 billion New inflows of R 100 million per month Client retention of 96% Annuity outflows of almost R600 million

CITADEL - PROFITABILITY WEALTH MANAGEMENT CITADEL - PROFITABILITY Annuity profit R 4 million per month = approx R50 m per annum PLUS 20% performance fee above lifetime benchmark per client Benchmark is inflation after accounting for all costs and taxes High watermark catch up from late 2001 / early 2002 Performances fees currently averaging R 3 million per month plus Approximately half the client base now at, or above, high watermark Strong gearing to weaker currency over time

CITADEL – PERFORMANCE FEE “RUN RATE” WEALTH MANAGEMENT CITADEL – PERFORMANCE FEE “RUN RATE” At current level of AUM of R 10 billion : if all clients at benchmark: run-rate of R 20 million per 1% real if half the clients at benchmark: run-rate of R10 million per 1% real Half the clients at benchmark: 5% real = R 50 million fees per annum Half the clients at benchmark: 10% real = R 100 million fees per annum

ASSET MANAGEMENT PeregrineQuant Over R9 billion in AUM Cashflow positive Good progress in both the institutional and retail markets All the infrastructure costs have been spent Belief that quantitative asset management will continue to gain ground on the more traditional styles

HEDGE FUNDS Peregrine is the biggest player in the local hedge fund industry. The group’s exposure to the hedge fund industry is extensive with investments across a broad range of strategies exceeding R5 billion on a worldwide basis. In excess of R 2,5 billion is managed in single strategy hedge funds. Within the group’s wealth management arm, Citadel, over R1 billion is invested with leading hedge fund managers on a multi - strategy approach. In addition, R1,7 billion is currently managed globally on a fund of hedge fund basis with an international joint venture partner. Caveo, a newly formed FOHF joint venture with Investment Solutions currently has R 330 million under management. The group also houses one of the country’s leading derivative, equity and prime broking operations.

OUR INTEGRATED HEDGE FUND STRATEGY FUND OF HEDGE FUNDS / MULTISTRAT Caveo Citadel Multistrat SINGLE STRATEGY FUNDS Peregrine Capital Peregrine Investment Managers (PIM) PRIME BROKER Peregrine Prime

CAVEO – Top of the funnel ASSET MANAGEMENT CAVEO – Top of the funnel Combining Peregrine’s hedge fund experience and reputation with Investment Solutions distribution (and manager access) Currently R330 million under management Potential to manage several billion Conflict of interest resolved by “non-Peregrine” products

OUR INTEGRATED HEDGE FUND STRATEGY FUND OF HEDGE FUNDS / MULTISTRAT Caveo Citadel Multistrat SINGLE STRATEGY FUNDS Peregrine Capital Peregrine Investment Managers (PIM)

ASSET MANAGEMENT PEREGRINE CAPITAL Fundamental equity hedge fund management company Over R2.1 Billion in AUM Comfortable at current AUM , but closed to new flows Hedge fund : 44% p.a. gross compounding since July 98 Performance fund : 65% p.a. gross compounding since July 98 50/50 economic deal with management – stability in team Profit from annual fees of only R 10 million BUT

ASSET MANAGEMENT Return Performance Fees 10% pa 42 m 15% pa 63 m PEREGRINE CAPITAL – PERFORMANCE FEES AT AUM of R 2,1 BN Return Performance Fees 10% pa 42 m 15% pa 63 m 20% pa 84 m 25% pa 105 m 30% pa 126 m 35% pa 147 m 40% pa 168 m

OUR INTEGRATED HEDGE FUND APPROACH FUND OF HEDGE FUNDS / MULTISTRAT Caveo Citadel Multistrat SINGLE STRATEGY FUNDS Peregrine Capital Peregrine Investment Managers (PIM) PRIME BROKER Peregrine Prime

BROKING AND STRUCTURING TRANSACTIONAL BROKING AND STRUCTURING Peregrine Securities Equity Broking Peregrine Prime Peregrine Equities Derivative Broking Derivative & Quantitative Research Structuring

Base Case (?) Earnings for Peregrine (note assumptions) Company PBT (Rm) Sensitivities Citadel 50 1% pa real performance = R10m Hedge funds 40 @15%, each additional 5%pa = R12.5m PeregrineQuant 5 Each additional R1bn AUM = R2.5 m Securities 30 Large transactions/structures excl. Subtotal 125 Return on proprietary capital @11%, each additional 5% pa = R17.5m Interest 12 R 180 m @ 6.7% Holdings costs (15) Total 162 PAT = R116m, HEPS ± 60 cps

Balance sheet No external gearing at year end R 360 million in cash / near cash investments Approximately R 150 million cash in working capital Generating cash at a rate of R 20 million per month (pre tax) BUT Earnings do rely on good investment performance Business is highly people dependent

FINALLY, AN INTERESTING COMPARISON AND SOME HOMEWORK Man Group Plc (www.mangroupplc.com) Largest listed hedge fund manager. Listed on the LSE. Man Group Plc is a : “leading global provider of alternative investment products and solutions. One of the world’s largest future’s brokers.” Assets under management @ 12 Jan 06 - $ 45.8 billion Market Capitalisation - $ 11.9 billion Market cap : AUM = 26% !!!! Fiscal PE (trailing) – 19.3 times