INVESTING IN AFRICA

TransCentury 2017 AGM Presentation30th June 2017

TransCentury - Introduction

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Who we are…

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Our Journey…

TC Platform

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Equity interest held in principal investments as at 31 December 2016

Power

Engineering

Other holdings

Review 2016

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2016 in Review

2016 presented an unusually challenging environment for the Group

w Constrained access to credit• Perceived uncertainty around the Group’s resolution of a Eurobond

• Reactionary credit freeze worsening working capital position and debt burden.• +KES 5bn of approved working capital credit lines not accessible• Severely affecting working capital and debt resolution options• Normally available refinancing / rollover / re-amortization options off the table• Impact on acquisition of new business (bonds, guarantees etc.)

w Further complicating the situation…• Coming out of a heavy capital expenditure period (KES 4bn investment)

• Achieved greatly in operating capacity but increased debt load and reduced reserves• Prior year impact on results during capex upgrade and unfavorable macro

environment in 2015

w Historical debt funding of the group magnifies impact of such tail events

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2016 in Review

Mitigated some of the pressure through

w Successfully reducing debt burden on the business• Cash saving KES 4bn from reduced exposure achieved• Restructured + KES 4.4bn maturing obligations to longer tenor reducing cash pressure

w Operational adjustments to generate cash internally and focus on our costs• Released KES 3.3bn from receivables & inventory for operations and debt reduction• Still managed to reduce commercial bank debt at group level• Reduced exposure to struggling banks who couldn’t support our restructure • Structured innovative funding solutions and re-focused the business on self-funding

opportunities• Hands-on intervention in operating subsidiaries to stem losses and restructure

operations.

w Third-party stakeholder engagements leading to buy-in on Group’s prospects• Great effort went to ensuring no adverse action

2016 in Review – Key achievements

Improved Capital Structure

� Added KES 2bn New Equity � Reduced KES 6bn debt exposure� Renegotiated longer tenor on +

KES 4.4bn of maturing obligations

Optimized Cost Structure

� Improved operational efficiencies� Dynamic structure responsive to

market changes� Disciplined working capital

management (reduced financial costs)

Broadening Markets & Product Offering

� 44% revenue growth in Tz, Ug, Rw and DRC� Great push in Aluminium - 4X Increased capacity

utilization� New products & technology - new revenue

streams (weigh-in-motion, asphalt roads)� > KES 16bn order book in (Engineering & Power)

Enhanced Human Capital

� Deep hands-on experience� Capacity to guide Group through

turbulence and growth phase� Robust internal processes and structures

Stability Through Turbulence and

Foundation for Growth

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� Reduction in scrap levels by 32%� Power utilization by 36%� Labour productivity by 35%

We continue to focus on improving efficiencies across the Group…

Benefits of investments coming through ….

2016 Performance

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2016 in Review - Performance

� Limited revenue generation due to working capital challenges� Restructuring benefits coming through

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� Disciplined working capital management� KES 3.3bn cash realized� Positive cash from operations

2016 Review - Group

� KES 6bn debt exposure reduction� Cash saving of KES 4bn� KES 2bn tenor extension

4bn reduction

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Group Review 2016

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� Strong assets growth � Annualized growth of 54%� Impact of increased focus on disciplined working capital management

Disposal of Investment Aggressive collection of receivables

Outlook

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Attractiveness of the East Africa Region

� Strong growth prospects:� Economic growth� Improved business environment� Diversified economies that are less dependent

on commodities

Opportunity in Regional Infrastructure Development

� Key Drivers� Infrastructure expenditure in transport, energy,

water (public & private)� Increased focus on electrification� Economic growth & urbanization

� Our View� Continued optimism in economic growth� Supportive legislation to local producers� Encouraged by commitment to enforce � Fundamentals are positive, order book

carryover is plentiful, margins are supportive

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Value drivers

Outlook

BrandDistinguishing

factor

• Group with big brands in the region.

• Reinforce leadership position

• Invest in our brands.

Infrastructure FocusRoad map

• Leader in infrastructure development

• Attractive macro drivers.

• Broad footprint in growing region.

• Key enabler in achieving set goals

• Better investment

• Oversight• Synergies

across the Group.

• Attractive shareholder returns

• Strategic investment and divestment

• Judicious distribution and allocation of capital.

Organization Alignment

Structures and Systems

Capital Management

Return

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Investor Take-Aways…

We are in the right business, right markets and have matched competencies

We are cognizant of challenges that we are facing and are focused on addressing the levers in our control.

We have Adequately invested for growth, providing a substantial head-start

Our solid foundation and complementary partnerships including KURAMO, sets us on the path to the next phase

INVESTING IN AFRICA