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Presentation Outline

Presentation Outline. Introduction The Case for Capital Markets – Captive Investor Base Financing Options and Process Equity Options Debt Options Alternative Options Why Dyer & Blair Conclusion. Introduction.

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Presentation Outline

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  1. Presentation Outline • Introduction • The Case for Capital Markets – Captive Investor Base • Financing Options and Process • Equity Options • Debt Options • Alternative Options • Why Dyer & Blair • Conclusion

  2. Introduction • This presentation will take you through a variety of financing options available via the Capital Markets and • We will also make a case for why the Capital Markets would be an attractive option for Cement Companies

  3. Cement Production and Demand Drivers East African Cement Production East African Cement Consumption Infrastructure Projects Construction Sector/Real Estate Development

  4. NSE Performance 2013 YTD

  5. The Case for Capital Markets – Captive Investor Base

  6. Retirement Benefits Industry in Kenya • As at December 2012, total Kenyan retirement benefits industry assets stood at Ksh 548.8 billion • Ksh 436.7 billion held by Fund Managers, Ksh 82.1 billion held by NSSF and Ksh 30 billion in property investments held by schemes not under control of fund managers Source: RBA Industry Update Dec 2012

  7. Key Investment Considerations for Pension Funds Shortage of Investment Products Preference for listed Investments Fixed Income Products

  8. Financing Options and Process

  9. Financing Options via the Capital Markets • This section will include • Equity Options • Initial Public Offering/Rights Issue Process • Trade Sale (non public offer) • Debt Options • Corporate Bond/Infrastructure Bond or Medium Term Note Programme • Alternative Financing Options

  10. Financing Options – Overview of Initial Public Offering or Rights Issue Process Actions by Client Offer Preparation Placement & Closure Pre IPO Process can take up to 4 months depending on the issuer 4 weeks 12 weeks 8 weeks Six months cumulative

  11. Financing Options – Overview of the Trade Sale Process Offer Preparation Tender Stage Selection Stage Offer Closure 4 weeks 8 weeks 6weeks 8 weeks Six months cumulative

  12. Financing Options – Corporate/Infrastructure Bond or Medium Term Note Programme Actions by Client Offer Preparation Placement & Closure 4 weeks 9 weeks 6 weeks Four to Five months cumulative

  13. Financing Options – Key Considerations

  14. Financing Options – Alternative Options Private Placements Convertible Bonds Mezzanine Finance Regional Bonds Preference Shares

  15. Why Dyer & Blair Investment Bank

  16. Introduction Dyer and Blair is a leading regional investment bank that offers a diversified range of financial services to a client base that includes governments, corporations, financial institutions, institutional/retail investors and high net worth individuals Dyer & Blair has grown into the largest Investment Bank in the region with a capital base of over KShs 1 billion Investment Banking Founder member of the NSE (1954) Brokerage (Equities and Fixed Income) Subsidiaries in Uganda and Rwanda Licensed member of the Capital Markets Authority Asset Management

  17. Awards - A History of Excellence Best Investment Bank in 2012, 2011 and 2008 Capital Market Awards Best Brokerage House in 2012 Capital Market Awards Best Transaction Advisor in 2011 and 2008 Capital Market Awards EMEA IPO of the Year (Safaricom) International Financial Review Awards (2008) Superbrands Status Only Investment Bank in East Africa to be awarded (2007) Best Securities House – Kenya Euromoney Awards for Excellence (2000) Best Brokerage House (Kenya) EMEA Finance (2008)

  18. Dyer and Blair’s Current Bonds & Equities Market Shares • NSE Cumulative Bonds Performance D&B the only player in Top 3 Brokers on both Equities & Bonds NSE Cumulative Equities Performance for FY 2012

  19. Leading Investment Bank in East & Central Africa L L L L L L L L L L L L L L L (formerly City Trust Limited) Sponsoring Broker & Placement Agent Lead Transaction Advisor & Sponsoring Broker Transaction Advisor Sponsoring Broker & Placement Agent Lead Transaction Advisor & Sponsoring Broker Lead Sponsoring Broker Sponsoring Broker Lead Transaction Advisor & Sponsoring Broker Lead Sponsoring Broker & Placement Agent Sponsoring Broker & Placement Agent Lead Transaction Advisor & Sponsoring Broker Sponsoring Broker & Placement Agent Lead Transaction Advisor & Sponsoring Broker Lead Transaction Advisor Lead Transaction Advisor Acquisition of I&M Bank through a share swap USD 452 million 2013 2nd Tranche Corporate Bond USD 5.7 million 2012 Acquisition of Chevron’s Assets in Africa USD47 million 2009 Capital Base Restructuring USD317.5 million 2010 Rights Issue USD34 million 2012 Rights Issue USD16.5 million 2008 Introduction by Listing USD260 million 2011 Corporate Bond USD25.6 million 2008 Initial Public Offering USD75 million 2008 Corporate Bond (Uganda) USD15 million 2009 Rights Issue & Initial Public Offering USD31.35 million 2009 Corporate Bond USD28 million 2011 Initial Public Offering USD30 million 2010 Initial Public Offering USD63 million 2011 Corporate Bond (Uganda) USD20 million 2010

  20. Leading Investment Bank in East & Central Africa L L L L L L L L L L L L L Lead Sponsoring Broker Sponsoring Broker & Placement Agent Lead Transaction Advisor Lead Transaction Advisor Lead Transaction Advisor & Sponsoring Broker Transaction Advisor Sole Arranger & Bookrunner Lead Transaction Advisor Lead Sponsoring Broker Lead Transaction Advisor & Sponsoring Broker Lead Transaction Advisor & Underwriter Lead Transaction Advisor Lead Transaction Advisor with Morgan Stanley Assets Divestiture USD25 million 2006 Initial Public Offering (Uganda) USD40 million 2006 Initial Public Offering USD12 million 2007 Corporate Bond USD9 million 2007 Rights Issue USD5 million 2007 Listing by Introduction USD50 million 2006 Second Public Offering USD65 million 2006 Initial Public Offering USD32.6 million 2007 Corporate Restructuring 2006 Initial Public Offering USD9.5 million 2006 Initial Public Offering USD800 million 2008 Initial Public Offering USD110 million 2006 Acquisition of Equity Bank 24.99% USD172 million 2007

  21. Conclusion

  22. Conclusion • We believe that the Capital Markets can provide cement companies with a viable option for raising capital and access to a large investor base both locally and internationally • Contact • Corporate Finance Team • Corporate@dyerandblair.com • Cynthia Mbaru • Corporate Finance • cmbaru@dyerandblair.com • +254 (0)20 3240137

  23. Q&A

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