1. Institutional Investment:A Catalyst for Africas Development 5 thAFRICAN VENTURE CAPITAL CONFERENCEMombasa, Kenya The Ethos Experience STRICTLY PRIVATE &CONFIDENTIAL Copyright and all other intellectual property contained herein rests in Ethos Private Equity Limited (Ethos).This presentation may not be reproduced in either whole or part without prior written consent of Ethos and the information contained in this presentation may not be communicated to any person without the prior written consent of Ethos.The information contained in this presentation may only be used forpurposes of evaluating the proposals contained herein and is for illustrative purposes only. Andr Roux 7 November 2005

2. Whois Ethos? 3.

21 year track record, founded in 1984

Focus is growing profitable companies

Equity and subordinated debt financing

Invested in 90 portfolio companies with 76 realisations

Recognised by Price WaterhouseCoopers Survey as the leading private equity firm in South Africa over last 5 survey periods

ETHOS OVERVIEW Ethos is a leading South African private equity and venture capital firm 4. Ethos fund history We are currently in the process of raising Fund V Buyout Fund V Buyout Fund I Buyout Fund II Buyout Fund III Buyout Fund IV Tech Fund I Third PartyFunds Captive Fund 5. Global and South African Investor Base

California Public Employees Retirement System

Compass Global

DEG

DLJ Private Equity Partners

Harbourvest International

Pantheon

PCFG Advisory S.A.

State of New York Common Fund

Teachers Insurance and Annuity Association of America

The Wellcome Trust

Ackerman Holdings

BAE Systems Holdings

Coris Capital

Development Bank of Southern African

Eskom Pension Fund

First National Bank Pension Fund

Investec Asset Management

Liberty Life

Metal Industries Benefit Funds

Momentum Life

Rand Merchant Bank

Sanlam Investment Management

Transnet Pension Fund

6. Ethos Organisation

41 employees

18 Investment Professionals

• 11 Partners

• 7 Principals / Associates

One Office : Johannesburg

75% owned by Partners and Principals

7. Select Ethos investments Ethos has helped many private companies become recognised leaders within their industry N.B. Priced at initial enterprise value as of 31/10/2005 WACO $360 million Foodcorp $270 million iDwala $70 million Cobra $22 million Delta $194 million Clickatell $4 million 8. Buildinga High Performance Private Equity Firm 9. THE BUILDING BLOCKS - People

• Continuity and stability

• Diversity of skills

• Value system

• Economics of the Firm

• Eating own cooking

10. THE BUILDING BLOCKS Deal Flow Action steps Enablers Invest in brand Be relentless with communication and profiling Brand Sell success stories Be nice to work with Waste time with contact base Own Network Continue to motivate Deal makers Past portfolio management Industry experts Advisiory Boards Cold calling Database creation Resources 11. BUILDING BLOCKS Pro-Active Portfolio Management Source: Asset Alternatives research report 2001: Strategies for successful buyout investing Evolving trends in the source of portfolio added value Increase in operating value (Company specific growth/improvements Multiple arbitrage (deal-specific differences betweenpurchase and sale multiples) Multiple expansion (industry wide growth or cyclical expansion) Financial leverage (amplification of equity stakes in acquisitions) } } } } 12. THE BUILDING BLOCKS Investor Relationships

• Customer versus supplier

• Minimising conflicts of interest

• Alignment of interest

• Avoid surprises

• Invest in back office

13. OurInvestment Experiences 14. Some key investment rules of the game we need to keep reminding ourselves about

Business is about people

• But we are not always rational about this?

• • This is one of the most critical issues for us..but we dont spend a lot of time analysing it (typical GP response)

• • We trend to fall in love with the management of companies we back . and, as we know, not all love stories have a happy ending (typical GP response)

• Some questions we should ask?

• • At Acquisition:

• • Do we have the right management team

• • How do we find out?

• • What do you do about it

• • One year after investment:

• • Has the performance been up to expectation?

• • Is the business strategy aligned with the people

• • Did we back the right management team?

• • If not, what do we do about it

15. Rules of the game-continued

Management should be owners not renters

• Sense of ownership

• Alignment

• Balance between short / long term rewards

Kick the tyres

• Do aggressive due diligence early

• Seek expertise

• Balance upsides and downsides

16. Rules of the game-continued

Dont pay a full price for a fix upper

• It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." ~ Warren Buffett .

Cross-border investing is not for tourists

Dont go bankrupt