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SHAREHOLDER UPDATE – ROADSHOWS MARCH 2010

SHAREHOLDER UPDATE – ROADSHOWS MARCH 2010. Contents. Objectives of Eyomhlaba Highlights of 2009 Current holding as at 28 February 2010 Indicative net asset value Reserve shares Ordinary dividends Ordinary dividends and FICA Shareholders’ rights and restrictions

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SHAREHOLDER UPDATE – ROADSHOWS MARCH 2010

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  1. SHAREHOLDER UPDATE – ROADSHOWS MARCH 2010

  2. Contents • Objectives of Eyomhlaba • Highlights of 2009 • Current holding as at 28 February 2010 • Indicative net asset value • Reserve shares • Ordinary dividends • Ordinary dividends and FICA • Shareholders’ rights and restrictions • What happens at end of empowerment period? • AGM • Important shareholder information • Performance of ABIL • ABIL Strategic review • Questions ????

  3. Objectives of Eyomhlaba • Eyomhlaba formed in 2005 as ABIL’s first BEE scheme • Eyomhlaba structured with low borrowings to increase its ability to succeed • Hlumisa (previously called Masonge) was formed in 2008 after ABIL issued shares to buy Ellerine Holdings Ltd • Eyomhlaba and Hlumisa now targeting to own at least 10% of ABIL by end of 2015 • Eyomhlaba currently holds 4.7% of ABIL • Current combined shareholding of ABIL by Eyomhlaba and Hlumisa is 6.7%

  4. Highlights of 2009 • Dividends received of R68.2m • Purchased 1.9 million ABIL shares at average cost of R27.66 per share • Declared second ordinary dividend of 14 cents per share

  5. Current holding as at 28 February 2010 Past ABIL directors & employees 16.4% Current ABIL directors & employees 31.5% Other black individuals 52.1% EYOMHLABA 4.7% ABIL

  6. Current holding as at 28 February 2010

  7. Indicative net asset value (NAV)

  8. Reserve shares • Issued during 2009 • Black employees • 360 067 shares at prices ranging between R7,99 and R8,02 per share (discount of 60% to NAV) • New black non-executive director of ABIL • 124 688 shares at R8,02 per share (discount of 60% to NAV) • Remaining reserve is 2 712 704 shares • Only to issue to ABIL Black employees and Black non-executive and executive directors

  9. Ordinary dividendCalculation of the maximum dividend 9

  10. Ordinary dividend – continued

  11. Ordinary dividend and FICA • Eyomhlaba declared its maiden ordinary dividend of 12 cents per share in the previous financial year and declared a second dividend of 14 cents per share in the current financial year. • Only 2 287 shareholders complied with the FICA requirements and therefore received their maiden dividend. • FICA requirements • Certified copy of identity document • Certified proof of residence or affidavit • Bank confirmation of shareholder’s bank account • IF FICA DOCUMENTS ARE NOT SUPPLIED, TRADING WILL NOT BE POSSIBLE

  12. Ordinary dividend and FICA • No interest is paid on unclaimed dividends • If no FICA documents, no dividend will be paid.

  13. Shareholders rights and restrictions • Entitled to sell one-third in years starting: • 1 January 2011 • 1 January 2012 • 1 January 2013 (Proposal regarding the above in notice of AGM) • May only sell through “over the counter” mechanism to other black individuals. • May not cede or pledge shares before 31 December 2015 • Death of shareholder – shares may be transferred to legal beneficiary • Beneficiary subject to the same restrictions as shareholder • Eyomhlaba shareholders have a right to vote at ABIL’s AGMs

  14. What happens at end of empowerment period? • Empowerment period planned to end 31 December 2015  • Eyomhlaba shareholders will receive ABIL shares • Currently 100 Eyomhlaba shares equivalent to approximately 72 ABIL shares (before unbundling taxes) • Eyomhlaba will settle borrowings, pay taxes and costs and then be liquidated • After Dec 2015 shareholders are free to deal with their ABIL shares as they see fit e.g. sell, pledge, cede, donate, transfer to family trust, etc. • Dividends from ABIL shares will then be paid directly to shareholders

  15. Annual General Meeting • Purpose of AGM  • Benefits of attending AGM • Ordinary resolutions to be considered at the AGM: • Directors authority to issue the un-issued ordinary and preference shares. Permission valid until the next AGM • Dawn Marole, Judy Dlamini and Asim Gani who resign as directors in terms of the Articles offer themselves for re-election. • Johnny Gounden was nominated for director and has been recommended by the board for election at the AGM. • Johnny Gounden, Max Mathye and Asim Gani offer themselves for election to the audit committee. • Non-binding advisory vote in respect of the Company’s remuneration policy. • Special resolutions to be considered at the AGM: • Amending Articles in order to extend certain buying periods of ABIL shares • Amending Articles in order to fix the annual discount on any reserved shares issued.

  16. Shareholders and your Annual General Meeting continued • Special resolutions to be considered at the AGM – continued • Amendment to Articles to allow shareholders with small shareholdings to sell all or any of their shares post 31 December 2010 • To amend Articles to include additional matters as routine business • To amend Articles to allow for directors to nominate alternative addresses for the receipt of proxy forms • To amend various articles to change asset cover requirements and allow for certain third party funding to be subordinated to other third party funding. • Consolidation of the company’s Articles • Routine business to be considered by shareholders at the AGM: • Consider annual financial statements for the year ended 31 December 2009 • To consider re-appointment of the auditors, Nkonki Inc • Appointment of Brian Mungofa as audit partner • To authorize the directors to determine the remuneration of the auditors.

  17. Special resolution 6 – Amendment to Articles

  18. Special resolution 6 – Amendment to Articles

  19. Shareholders and your Annual General Meeting- Proxy forms

  20. Shareholders and your Annual General Meeting- Proxy forms (cont.) 20

  21. Shareholders and your Annual General Meeting - Proxy forms (cont.)

  22. Important shareholder information • From 2010 financial year, the statement will be prepared as at 28 February and 31 August in order to coincide with the income tax year. • Annual and interim financial statements can now be received in electronic form via e-mail. • If you would like to start receiving annual and interim reports via e-mail, please send your full name and identity number to: eyomhlaba@linkmarketservices.co.za • If you have any questions please call the call centre on 0860 225 233 • or e-mail eyomhlaba@linkmarketservices.co.za

  23. Performance of ABIL Results for the 12 months ended 30 September 2009 • Significant progress achieved in respect of strategic objectives • Headline earnings of R1,810 million – up from R1,519 million in September 2008 • Total dividends per share of 185 cents – down from 210 cents in September 2008 • Headline earnings per share of 225,2 cents – up from 211,6 cents in September 2008.

  24. ABIL strategic review • Key focus areas • Maintain a foundation of financial strength • Maintain and develop an appropriate skills base • Grow our customer base through product and service innovation • Integrate the financial services activities of Ellerines into African Bank • Re-invigorate Ellerines retail offering

  25. Thank youQUESTIONS ??????

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