byFungai Tarirah

Passion. Independence. Rigour.

Africa: What lies beneath

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On the surface, Africa is the same old

Sources: various newspapers, Rudiarius Capital Management

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-48.7%In 3 days

Even when we send it offshore seems tainted

Sources: Citron, Financial Times, Bloomberg, Rudiarius Capital Management

But African companies are producing real earnings

Passion. Independence. Rigour.

East African Breweries $1.6bn market cap• Operating profit equivalent to $206m in the last 12 months (rolling)• Spent $14m on a new brewery• Paid out dividend of $35.6m• Expecting growth +14% in earnings, dividend• Working with, not against the informal sector

4Sources: company reports, Rudiarius Capital Management

But African companies are producing real earnings

Passion. Independence. Rigour.

Operating income$950m

$2.5bn market cap

• PER1 6.2x• ROE 33.4%• PBV 1.6x

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Operating income$887m

$10.8bn market cap

• PER1 15.1x• ROE 47.5%• Div yield 6.7%

Operating income$219m

$1.4bn market cap

• PER1 12.1x• Growth1 (E) 29.1%• PBV 0.8x

Sources: company reports, Rudiarius Capital Management

Compounding at appreciable rates

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• Earnings have compounded at 10.4% annually in the last 5yrs.

$1.4bn market cap

Sources: company reports, Rudiarius Capital Management

With solid growth opportunities

Passion. Independence. Rigour. 7

• Significant growth opportunity in microfinance and leasing

$279m market cap

Sources: company reports, Rudiarius Capital Management

Volatility remains a feature to deal with on markets

Passion. Independence. Rigour. 8Sources: various newspapers, Rudiarius Capital Management

Current portfolio positioning

Passion. Independence. Rigour. 9Source: Rudiarius Capital Management

Long term returns for the patient investor

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• Diversification across different markets important to performance of overall African exposure

• Conservative approach allows for downside protection• Good time to pick up bargains

Sources: Morningstar, Rudiarius Capital Management

Selected by an experienced fund management team…

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Spending time on the ground

Passion. Independence. Rigour.

• Emphasis on time spent with company management• Country coverage broadened as we searched for opportunities. 49% of our time to date spent on

MENK• Management teams tackling business issues but would welcome faster reform pace

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Passion. Independence. Rigour.

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This presentation is intended for information purposes only and none of the information contained in this presentation constitutesinvestment advice or a recommendation, solicitation or offer by Rudiarius to buy or sell any financial product. The informationcontained in this presentation has been prepared without consideration of the investment objectives, financial situation or particularneeds of any particular recipient. Any transactions described in this presentation may give rise to substantial risk, including the possibleloss of principal value, and are not necessarily suitable for all investors. This presentation should accordingly not be considered as asubstitute for the exercise of your own judgment or for obtaining independent advice based on your personal preferences andcircumstances. Although all precautions have been made to ensure reliability of data and information contained in this presentation,Rudiarius cannot guarantee the reliability thereof.

Past performance referred to in this presentation is not necessarily indicative of future performance. Similarly, forecasts contained inthis presentation involve risks and uncertainties which may result in future performance, outcomes and results which differ materiallyfrom such forecasts. You are accordingly cautioned not to place undue reliance on any historical data, general information orforecasts used in this presentation. A schedule of fees and charges and maximum commissions is available on request.

Rudiarius accepts no liability whatsoever for any loss, damage (direct or consequential) or expense suffered by a recipient as a resultof undue reliance placed on any information contained in this presentation.

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