Topics:

1. “Environment of doing business in Namibia – perspective of a local investor”by Sven ThiemeWSDI/Namibia International Investment Conference Safari Conference CentreWindhoek, 31 October 2007

2. Topics: • Who we are • 2. History/establishment era • 3. Growth phase • 4. Way forward and future • 5. Namibia – Good Investment Destination

3. Who we are • Proud history of investing into our own country • “As pioneers in in their related industries, the • Ohlthaver & List Group, is synonymous with Product • innovation and the enhancement of socio-economic wealth • in Namibia.” • Largest privately held group outside the mining sector • 80% of the total turnover is value adding • Over 4000 employees • Epia as empowerment partner • Subdivided into seven industry-related Focus Groups

4. Who we are: a truly Namibian company 1. Focus group: Beverage

5. Who we are: a truly Namibian company 2. Focus group: Food

6. Who we are: a truly Namibian company 3. Focus group: Leisure

7. Who we are: a truly Namibian company 4. Focus group: Retail

8. Who we are: a truly Namibian company 5. Focus group: IT

9. Who we are: a truly Namibian company 6. Focus group: Property

10. Who we are: a truly Namibian company 7. Focus group: Services

11. Who we are: Vision and mission programme (Mwenyopaleka) • Implemented during 2004 • Aims to communicate vision, mission and values to all employees • Encourages value driven culture • Vision: • To create wealth by building innovative and sustainable businesses and thereby enhancing living conditions and socio economic wealth. • Mission: • Everyday we challenge our past to improve the future for everyone.

12. History: a long established business… • 1923 founded by Carl List and Hermann Ohlthaver in Windhoek • Started as a banking establishment • 1964: Werner List, Carl List’s son, takes over chairmanship • Growth through acquisitions and vertical integration

13. Growth phase: • Year 2002 • Appointment of new management early 2002 • Understand global competitive forces (Globalisation) • Lack of skills and expertise (global dynamics) • Lack of economies of scale • Lack of access to best practice • Lack of access to marketing best practice • High costs base • Lack of proper systems, processes and techniques • Import increasing & export decreasing

14. Growth phase (continued): • 1.Changed Management • Change Management Programme • Develop own Management & Talent Programmes • Exchange programs • Rotation programs • Benefit • Identify and build future talent • Build future management capacity

15. Growth phase (continued): • 2. Entered into various strategic partnerships • Heineken (Heineken brand – most international) • Diageo (largest beverage co in the world) • Broll (within top two in SA property management) • Pick ‘n Pay (one of the largest retailers in SA) • Dimension Data (of the top network co in the world) • Benefit • Access to best practice • Access to latest technologies & expertise • Access to top people • Exchange of people • Promotion of export opportunities • Access to brands

16. Growth phase (continued): • 3. Execution of an aggressive plan (learned from the world and adopted to Namibia): • Clear financial goals • Critical success factors identified • Clear enablers identified • Clear initiatives taken to support to above • Benefits • Clear alignment • Timeous execution

17. Growth phase (continued): • 4. Key initiatives undertaken • Implementation of state of art business systems • Best practice in whatever we do • Investment (about N$ 1 bn) in value add facilities & • businesses, retail & commercial building, leisure etc. • Investment into people • Rationalized businesses • Streamlined operations • Value-adding focus (from commodity) • Benefit • To be as cost effective and efficient as possible • Producing value add – maximise sales value • To be sustainable

18. Growth phase (continued): • 5. Innovation • Part of our corporate vision • Learned from the world - Adopted to Namibia • Participation in worldwide trade-fairs • Participation in most know-how & expertise forum in the world • Benefits • to become (if possible) a leader in what we do • to be in the know of all latest technologies

19. Growth phase (continued): • 6. HR is the agenda (People) • Substantial investments in people • Mwenyopaleka improved organisational culture & climate, enhanced labour productivity • Performance management system (Appraisal and development plan) • Employee health (comprehensive HIV testing, treatment and support) • Benefits • Nothing more then obvious what this will do

20. Results • Doubled Turnover to 2.4 billion • Doubled Asset base to 2.4 billion • Despite restructuring the businesses – employment increased to 4200 - 4300 • Close to 1 billion invested over the last three years • Dramatic increase in exports • New businesses created • State of art systems & processes implemented • Major Value adding production facilities • New innovations launched

21. Way forward & the future • New Joint Venture created with Kempinski/IFA - establish a 5 star • portfolio in Namibia to the value of N$ 550 million, • Expand into Southern Africa using current bilateral, multilateral and • similar agreements, • Use the access to 190 million customers and consumers in Souther Africa

22. Namibia – Good Investment Destination • Macroeconomic conditions • (Free Market Economy, Stable political environment, Good legal • system, Stable tax rates and regime) • Physical infrastructure • (Roads, Rail, Flight services, ports, telecommunication, etc.) • Major trade agreements • (AGOA, SADC, SACU, preferential treatments for Namibian products) • Foreign Investment Act • (Special incentives for manufacturers/exporters) • Life style/social infrastructure • (quality of life, medical services, education etc.)

23. Namibia – Good Investment Destination • Industry Sectors of potential • Mining • Tourism • Agriculture • Aquaculture • Fishing (value adding) • Value adding manufacturing • Services

24. End