CEO Circle Launch & Investor Feedback

March 2019

OBJECTIVE

2

Use our collective resources as big business to stimulate the economy by helping mainly black entrepreneurs and small businesses scale and increase the attractiveness of investing in this sector

Decisions made to date

Fund of Funds vs

direct

Private equity vs

hybrid model Size of SMEs

Demographics of

entrepreneurs

Ecosystem

support

A Fund of Funds,

leveraging existing

expertise in the market

Already 340+

organizations in the

ecosystem. Focus on our

proprietary ecosystem and help scale companies

within our shareholder

and funder base

Hybrid mandate with

three pillars: Growth, VC and Impact

Target smaller SMEs (EV

<R100m) for investment,

and help scale

• 10 companies to >R500m,

• 200 SMEs• 5 world-class black

entrepreneurs*

50% investment in black African businesses, 25%

in Indian and Coloured

and 25% in white businesses

*Invest in 50, assume global average of 1:10 big successes

DIVERSE AND EXPERT BOARD, INVESTMENT COMMITTEE, AND EXECUTIVE TEAM IN PLACE

3

Investment Committee

Board

Exec Team

ADRIAN GORE JABU MABUZA DOLLY MOKGATLE NIGEL PAYNE JUDY DLAMINI LISA KLEIN BRIAN JOFFE

MICHAEL JORDAAN ALBERTINAH KEKANA ANDRE ROUX NAZEEM MARTIN

KETSO GORDHAN LUMKA MLAMBO KARABO NKOANA RYAN HARRISON CARYN WINTER CLAUDIA MANNING THIRU PATHER

R1.4bn fund investment strategy in three areasINVESTMENT MANDATE

Set bold goals to invest inand help scale

• 10 significant black businesses

• 200+ black SMEs

• 5 world class black entrepreneurs*

over the next 5 years

* Invest in 50, assume 1:10 will excel

IDEATION STARTUP EARLY EXPANSION GROWTH

Age of company

Size

and

com

plex

ity

Growth investments

Focus on capital appreciation for companies that don’t have access to traditional sources of capital

Provide financing to early-stage firms with high growth potentialProvide financing and

support toearly-stage entrepreneurs

and firms withhigh growth potential

VC and Incubation

Focus on providing equity and growth capital for

companies thatdon’t have access

to traditionalsources of capital

Growth Investments

Solve social and environmental challenges alongside financial return – including debt, turnaround and township

economy interventions

Impact and Support Investments

4

R725mCommitted

to date

0

20

40

60

80

-15

-10

-5

0

5

10

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

New listings Delistings Total listed

VERY FEW NEW COMPANIES ARE BEING BUILT

More delistings than listings since 2008

Overall JSE

AltX

54 delistings

52 listings

0

100

200

300

400

500

-40

-30

-20

-10

0

10

20

30

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

238 delistings

188 listings

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

2004 2006 2008 2010 2012 2014 2016 2018 2020

Mar

ket

cap

CAG

R of

JSE

com

pani

es s

ince

list

ed

Year listed on JSE

Slow growth

26% had negative growth

28% grew at >20% CAGR

New companies are an important

engine of economic

growth

Market cap CAGR for JSE companies since listing, by initial market cap size 5Source: JSE Market Reports and Reuters database

PROPRIETARY ECOSYSTEM – LEVERAGE TO SCALE 10 COMPANIES TO R500 MILLION BUSINESSES

6

Funding

Mentoring

Access to market

S H A R E H O L D E R S

supplier supplier supplier supplier

VC GROWTH IMPACT

Investee Company

Investee Company

Investee Company

Investee Company

Investee Company

Investee Company

Investee Company

Investee Company

Investee Company

Personalised pathway

SELECTION PROCESS

Inaugural 2019 cohort(5-10 companies)

a. Introduce to capital providers

b. Access to markets through introductions to key executives and procurement officers in select companies

c. Match C-suite mentors and provide scale-up support

CEOs reports back on progress in Nov 2019

20% 3 year revenue CAGRAt least 5 years in operation

Strong leadership team with defined roles>R50m annual turnover

1

2

3

45

Submit list of companies

SA SME Fund applies initial filter

Endeavor run process – financial review, interviews, panels with industry experts

Mini Investment Memo and Diagnostic per company

CEO panel selects 2019 cohort

12

3

4

5

Inaugural 2019 cohort

WHAT IS REQUIRED FROM MEMBERS OF THE

8

List of SMEs from your supply chain that meet the selection criteriaDue: 12 April 2019

Committing to mentor the inaugural 2019 cohortDue: Q3 2019

Committing to provide the inaugural 2019 cohort access to chief procurement officer and key executives Due: Q3 2019

CEO Circle Launch & Investor Feedback

March 2019