Annual road show March/April 2014

1. Annual road show March/April 2014

2. Contents • ABIL performance 2013 • Hlumisa and Eyomhlaba response • ABIL performance – first quarter 2014

3. What events led up to this point • The industry and African Bank have grown significantly • The economy has weakened and disposable income has been eroded • Poorer quality business written in the second half of 2012 as growth cycle peaked • Regulatory debate has intensified • Determination of customer affordability • Credit extension • Insurance products • Customer protection • Payment systems • Capital adequacy • Current perception of the unsecured lending industry negative *The acquisition of EHL has been excluded from AB YoY growth for the period between September 2010 and August 2011 Source: SARB BA900 returns *Source:StatsSA

4. How ABIL responded How ABIL responded • Collections activities further enhanced – March 2013 • Selected branch and furniture store working hours dedicated to collections • Call centre staff bolstered further to 1 300 agents • Revised credit risk appetite / Improve the yield/risk relationship – June 2013 • Lower offer rates and smaller loans to 40% of our customers • Improved risk-based pricing – incoming ROE increased • August 2013 update • Announced R4 billion rights offer to strengthen the balance sheet • Significant reduction in credit granted through the Retail unit • Accelerating the disposal of the Retail unit • October 2013 trading update • Collection activities delivering positive results • Credit write offs significantly increased due to increased conservatism • Increase in provisions • Increased the rights offer to R5,5 billion

5. 2013 Results affected by exceptional events How ABIL responded • 2013 results negatively affected by the operating environment and further impacted by exceptional non-cash items, including: • Impairment provisioning (in duplum), insurance and credit IBNR; • Loss on LTIP hedge; • Goodwill impairment. • The impairment provisioning and insurance IBNR changes resulted in a restatement of prior year results

6. Eyomhlaba and Hlumisa response Key drivers to achieving the FY14 b dget • Shareholding was retained while significant amounts of debt were settled before scheduled dates to avoid additional costs being incurred by both companies; • Controllable expenses were managed below budget with budgets being significantly reduced year to year; • The funding terms and conditions were successfully renegotiated during the difficult year.

7. Key drivers to achieving the FY14 b dget • 1st Quarter update

8. Disbursements decline as well as merchandise sales continue to slow Banking unit • 25% year-on-year decline in disbursements to R5.56 billion due to: • More stringent credit granting criteria. • Focus on lower risk business. • Prevailing challenging operating environment. • Quarter-on-quarter, loan size and term have decreased following the successful introduction of prime loans, capped at R 20,000 over 2 years, to low risk customers (±2% of disbursements). Retail unit • 21% year-on-year decline in merchandise sales to R1.1 billion is due to: • More stringent credit granting criteria. • Focus on lower risk business. • Prevailing retail sector challenges, further worsened by the deliberate cut back in EHL.

9. The impact of improving the risk yield relationship • In the trading update issued on 5 August 2013, ABIL reported that it had implemented a strategic initiative that was aimed at restoring the risk yield relationship on new business. • This centred on capital and pricing changes impacting the higher risk groups in its customer base, resulting in smaller loan sizes and terms, increasing yield and increasing affordability through smaller instalments. • This has resulted in a continuing shift in new business towards lower risk groups, and overall decreased disbursements, the latter also impacted by the current economic climate.

10. New business in line with improved Value Proposition • Continual improvement in our customer value proposition saw the launch and roll out of new products • Insurance • Retail deposits in our branch network • Prime linked deposit • Platinum card • Prime loan • Retail deposits now total over R 100 million • During Q1 2014 a focus on our new product lines resulted in • Prime loan disbursements amounted to over R100m. • Platinum cards issued totalled nearly 3,000 with over R 100 million in limits being issued • The sale of 40,000 funeral insurance policies

11. EHL Update • ABIL remains committed to EHL. • Appointment of replacement CEO announced. • Initiatives to improve cost efficiencies continue. • Developing a revised value proposition, to improve quality of credit granted and increase merchandise sales on credit. • African Banks presence in EHL is being stepped up to maximise value through the utilisation of the extensive distribution network. • Changes expected to serve business well both as part of the ABIL group and after a potential disposal

12. The outlook and 2014 expectations Banking Unit • Overall credit quality of book expected to improve during H2 2014. • During H1 2014 we expect the impact of NPL formation and resultant bad debt charge of business written pre June 2013 to outweigh the positive impact of the lower volume business written subsequent to the restoration of the risk yield relationship. • This dynamic is expected to reverse during the H2 2014. • H1 earnings will be lower than the R604m (restated) H1 2013 with an improvement by year end. Retail Unit • Overall conditions remain extremely challenging in this business • Operational changes being implemented will take time to yield results • Retail profitability also expected to be lower than the R 4 m (restated) H1 2013, without an improvement by year end

13. Thank you • Disclaimer • African Bank Investments Limited, Hlumisa Investment Holdings (RF) Limited and Eyomhlaba Investment Holdings (RF) Limited are not investment or legal advisors. If you require advice on your investment in Hlumisa Investment Holdings (RF) Limited or Eyomhlaba Investment Holdings (RF) Limited, you should consult an investment and/or legal advisor.This presentation does not replace the Hlumisa and Eyomhlaba prospectuses and Hlumisa and Eyomhlaba Memorandums of Incorporation. If anything in this presentation is different to what is stated in the Hlumisa and Eyomhlaba prospectuses and/or Memorandums of Incorporation, the Hlumisa and Eyomhlaba prospectus and Memorandums of Incorporation take precedence.Furthermore, African Bank Investments Limited, Hlumisa Investment Holdings (RF) Limited and Eyomhlaba Investment Holdings (RF) Limited will not be responsible in any way if anything has been omitted from this presentation or if anything stated in the presentation is incorrect.