VCC 0052; FSP 47502 DID YOU KNOW: As at the end of 2018, SARS presented R3,5 b illion ABOUT 12J to South African tax payers. worthSECTION of "tax relief" Now is YOUR opportunity to participate in the 2019 tax year's Section 12J relief - estimated to reach R5 billion The Health and Wellness market in pharmacies in South Africa is about R15 billion. The direct selling Health and Wellness market in SA is about R20 billion. The OTC market is growing by + 6% per annum Audela Healthcare has secured the rights to acquire Ascendis Direct together with 4 additional brands. The acquisition value and working capital is about R50 million for all stock and assets. No goodwill is included in the acquisition transaction. Included in the new Audela Group will also be the sales force of Venovi, bringing the total number of representatives available to drive growth of these established acquired brands to 28. Direct sales agents: 40 000 strong Included in the acquisition transaction is the export business to Nigeria. The business that will be acquired does about R150 million revenue of which about 10% of that is Ebitda (earnings before interest, tax and depreciation). Big Pharma (e.g. Adcock, Cipla and Aspen) only has about 30% share of the Health and Wellness market. We target at least a 20% compounded growth per annum on the investment or 15% IRR. That implies slightly more than double ypur money after tax in 5 years time. THE GROWTH OPPORTUNITY Combining the Venovi, Audela and Ascendis Direct sales force to drive growth in a new revitalized product stable. Bringing on-board own manufacturing capability through the Axcel Pharma acquisition, who also hosts the Sontal brand. Expansion due to reach consumers in more physical channels. Expansion due to augmented and increased product and brand range. Planned expansion in SA and Nigeria. Building on the experience and skills of Audela, Venovi, Ascendis Direct and Axcel. Targeting revenue to grow from R150 million to more than R300 million in 5 to 6 years. And increasing Ebitda to 12% of revenue due to optimization of sales efficiencies. DIRECTOR AND FOUNDER Johan Abrie Venovi and Audela Healthcare >21Years experience – Pharma sales & marketing, business development Partner – The Brand Exchange (Tech Broker Business) Growth in more African countries later on, is also envisaged. DIRECTOR AND CO-FOUNDER Johan Esterhuyse Sontal (Axcel Pharma) >15 years experience in healthcare manufacturing, new product development, sales and marketing CEO OF ASCENDIS DIRECT Cornélle van Graan Chairman of the local Direct Selling Association (DSA) Mentor for Nigeria (DSA) board Member of the World Federation of Direct Selling Association (WFDSA) >18 Years’ experience in direct selling 15 years in FMCG SA'S1st Balanced 12J Fund Our Unique 2019 Investment Offering VCC 0052; FSP 47502 Section 12J of the Income Tax Act stipulates that taxpayers who invest in qualifying Section 12J companies can write off 100% of their investment against their taxable income in the year they invest. Designed to stimulate SA economy and create jobs Investors benefit from up to 45%* immediate tax relief, reducing the cost of the investment, providing downside protection and enhancing overall returns. Minimum investment period is 5 years Minimum investment amount R500 000 DID YOU KNOW: ABOUT SECTION 12J TOTAL FUNDS UNDER MANAGEMENT GROWTH WHO WE ARE: Our principles all come from the private equity and alternative investment space. R250 million We have developed an industry pioneering 1st truly balanced 12J fund. Our team has huge experience in picking the ‘right jockey and business’. Collectively we have +30 years experience in private equity and asset management, we have done +30 acquisition events and +20 liquidity/exit events. On aggregate the team has managed more than R4,5 billion funds under management before. 250 200 150 100 +30 +20 Acquisition Events Liquidity Exit Events R4,5bn AUM R70 million 50 R16 million 0 2017 2018 2019 Forecast WHY US: II Performance “hurdle-rate” on “Capital deployed” First Diversified 12J balanced fund Clear exit / liquidity event in mind Significant “Own skin in the game” Insurance on “Capital at Risk Come from a “private equity” back-ground” We are a CATEGORY II asset manager CHARACTERISTICS OF OUR 'DEFAULT' BALANCED FUND Asset Allocation Expected Returns After Fees & Taxes 215% 18.2% ROI IRR * ROI: Return on Investment * IRR: Internal Rate of Return Dividends 3.5% Average annual net dividend on capital invested 6.3% Average annual net dividend on ‘capital at risk’ COMPARATIVE FEE ANALYSIS 12J TAX KICKER KIEP DAVEL TRP (SA) 083 305 8181 DR JOHAN KRITZINGER CEO 082 776 0406 johann@nreach.co.za MMAPITSE MAUBANE BCom and international MBA If your full capital invested declines compounding by 7.68% per annum, you will still have your capital at risk after 5 years. GEERT DOYER CA (SA) If your full capital invested only grows by 6% per annum you will still have 100% growth rate after 5 years. HAYDEN LANSDELL ILSE FERREIRA MCom CA (SA) OUR ADVISORY PARTNERS DISCLAIMER: Based on our previous discussions, this 12J investment opportunity is directed to you privately and personally and is limited to a restricted number of select investors. Seeing that this invitation is not available to the general public, this invitation, together with all documentation and agreements provided for your consideration, is strictly confidential. This document does not constitute financial advice. Please consult your financial advisor before making your investment. STATISTICS ABOUT OUR INVESTMENTS TO DATE AND IN PIPELINE Investments Consolidated net Asset Value (NAV) of Investee Companies Target Investment Diversification between Asset Classes by year end 2019 Consolidated Earnings before Tax, Interest and depreciation (Ebitda) of Investee Companies * The investment class diversification and sector distribution is based on current investment together with the investment pipeline under review by the investment committee.
