Financial Literacy Workshop March 2012

1. Financial Literacy Workshop March 2012

2. Contents • Key role players • Shareholders • Benefits and risks of being a shareholder • Hlumisa and Eyomhlaba trading price • Rights as a shareholder • Directors • Auditors • Statement of comprehensive income (Income statement) • Component parts • Operating expenses • Eyomhlaba & Hlumisa cash flow waterfall

3. Key role players Shareholders • Invest in the company through the purchase of shares • Each share equal proportionate ownership of the Company Benefits and risks of being a shareholder • Shareholders invest in a Company to achieve a return = dividends + capital growth: • Dividends • May declare a dividend if allowed by law and if directors so decide; • Capital growth • Shareholder makes a profit if shares are worth (or sold for) more than what shareholder paid for the shares. • Shareholder makes a loss if shares are worth (or sold for) less than what shareholder paid for the shares.

4. Hlumisa and Eyomhlaba trading price Eyomhlaba Hlumisa Net Asset Value R30 R20 (Value based on ABIL share price) • Trading price • (Average for February 2012) R14 R10 ____ ____ Discount (approximately 50%) R16 R10 ____ ____

5. Hlumisa and Eyomhlaba trading price • Discount is due to the following: • Restriction on shareholding exclusive to Black South Africans • Shares cannot be used as security • After end of lock in period (2011), supply exceeding demand • At end of empowerment, the 3 reasons fall away and the discount to the NAV should decrease. • NB: Selling of shares is not compulsory. • If dispose of shares a shareholder gives up the discount and future possible gains

6. Key role players • Rights as a shareholder

7. Key role players Directors • Appointed by shareholders to run the affairs of the Company in a manner that enhances shareholders’ wealth; • Directors have a fiduciary duty towards the Company in terms of law • (i.e. entrusted to act in the interest of the Company at all times); • Conduct of the directors governed by the Companies Act and the Memorandum of Incorporation of the Company; • The directors approve the annual financial statements presented to the shareholders; • Eyomhlaba’s and Hlumisa’sMOI provide for annual rotation of one-third of directors.

8. Key role players Auditors • Present an audit opinion on the annual financial statements as presented in the annual report • An unqualified (“clean”) audit opinion signifies that shareholders can rely on the financial statements as prepared by the directors as being fairly presented • A qualified audit report may indicate an issue in the annual financial statements and needs to be read carefully • Shareholders approve the reappointment of auditors annually at the AGM

9. Statement of comprehensive income • The component parts of Eyomhlaba/Hlumisa’s comprehensive income are:

10. Statement of comprehensive income Operating expenses comprise the following items:

11. Eyomhlaba & Hlumisa cash flow waterfall

12. Thank you • Disclaimer • African Bank Investments Limited, Hlumisa Investment Holdings and Eyomhlaba Investment Holdings Limited are not investment or legal advisors. If you require advice on your investment in Hlumisa Investment Holdings Limited Eyomhlaba Investment Holdings 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 Limited and Eyomhlaba Investment Holdings 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.