NOT FOR PUBLICATION OR DISTRIBUTION Introduction Countries visited by Athena Team • Athena Capital was established in 2003 • Founded by Jonathan Heinamann and Tom Priday, chaired by Tom Boardman • Based in Cape Town, Johannesburg and London • Team of 7 professionals, including 4 CA’s • Financial advisory business raising debt and equity finance • Facilitated private equity transactions for SMEs • Sole investment advisor to investment company seeking opportunities in sub-Saharan Africa • Current and past investment portfolio includes assets in the renewable energy, commodities, infrastructure and packaging sectors. 1 Africa is Now “The first skill you need to do Business in Africa is to see the Opportunities“ Christo Wiese Pepkor Chairman E & Y –African attractiveness Survey 2011 PEACAP Investments is positioned to convert Africa’s opportunities into superior returns 4 Opportunities “So the point really [...] is not whether you should be doing business in Africa, but rather how.” Leslie Rance, British American Tobacco (E & Y –African attractiveness Survey 2011) PEACAP Investments converts opportunities in Sub-Saharan Africa into returns to investors by: • Enabling small and medium enterprises to capitalise on expanding consumer base and disposable incomes • Leveraging the northwards expansion of successful Southern African businesses • Supplying sectors which benefit from government and DFI support • Partnering with skilled operators in high growth markets Telecommunications FMCG Retail 14 16 Countries Countries Brewing 15 Countries Retail Banking 17 Countries Clothing Retail 13 Countries Fast Food 7 Countries 5 Investment Strategy “Investment prospects in Africa are favourable right now. Africa is the last uncharted territory on the investor's Maintain map and operations opportunities abound.” in Africa Invest in Africa Early Stage Opportunities Mid-market Growth Opportunities Strategic Opportunities Invest in businesses where there are few or no potential acquisition targets in attractive or under-served industries or geographies Majority positions in existing, successful businesses that present opportunities to leverage our resources and skills to drive growth Minority positions in large investments where Athena Capital identifies significant value but which exceed our investment mandate Value Drivers Rationale Sub-Saharan expansion opportunities • Leverage established platform companies to access high growth subSaharan markets • Partner with skilled operators to execute the Company’s strategy Services to high growth sectors • Benefit from direct exposure to growth sectors (e.g., resource extraction and infrastructure development) without investing in underlying riskier operations • Favour preferred sectors including manufacturing and processing, retail and consumer goods, agri-business and food processing, financial services and renewables and water Consolidation and integration opportunities • Extract value through revenue growth and cost synergies • De-risk investments by reducing customer and geographic concentration and controlling supply chains Underlying asset value • Reduce capital at risk by targeting businesses with explicit or inherent underlying value Defendable barriers to entry • Achieve sustainably higher margins with lower market risk • Provide expansion opportunities and attractive exit options Source: Olaf Meyer, African Development Bank Not invest in Africa 9 Agribusiness Considerations • Investment horizons and alignment of interests – equity provider vs operator • Primary production • Greenfield vs Brownfield • Capturing the agribusiness value chain • Local market dynamics and Country dynamics • Import Substitution vs Export Production • Land rights • Local relationships and access to agribusiness skills • Platform / Holding Co approach vs Direct Investment • Lack of visibility on investment returns 9 What are we looking for? • Agribusiness expertise • Investment opportunities - $3m - $20m (R25m – R150m) • SA and SSA focus • Local relationships 14 C o n t a c t D e t a I l s: Cape Town Johannesburg London 2nd Floor, Bridge House Boundary Terraces 1 Mariendahl Lane Newlands 7700 2nd Floor, North Tower 3 Sandown Valley Crescent Sandton 2196 14 Cork Street London W1S 3NS Phone: +27 (0) 21 657 3810 Phone: +27 (0) 11 217 4800 Phone: +44 (0)207 408 7089