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TunInvest-AfricInvest

"We grow SME businesses, we create real value...for a sustainable development"

June 2011

Strictly private & confidential

A strong regional presence and an extensive network

TunInvest ­ AfricInvest is a private equity player targeting SMEs in North and Sub Saharan Africa The Group is currently managing 10 funds, with around USD 550 million under management: Now launching the fourth generation of funds Latest funds: - AfricInvest II with around USD 200 million size focused on Sub Saharan Africa and - Currently raising MPEF III focused on North Africa with a target size of around USD 120 million at first closing (scheduled for Q3 2011)

Algiers Tunis

TunInvest - AfricInvest officers have over 150 years of cumulative experience in the field of Private Equity in North and Sub Saharan Africa

Casablanca

The officers have a good experience and know-how in structuring, guiding and advising the funds' portfolio companies

Nairobi Abidjan Lagos

From 1994 to 2011, the management team grew from 3 persons in one office to 45 persons in six main offices (Tunisia, Algeria, Ivory Coast, Kenya, Morocco and Nigeria)

TunInvest-AfricInvest proved to be effective in pushing forward the regional expansion and growth of its portfolio companies

Main offices

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Our Investment approach

Building competitive local companies to turn them into sustainable "Regional Champions" thus contributing to regional integration

TunInvest ­ AfricInvest targets: 1

Type of Companies

Growth capital or buy out investments in SMEs... ...that are well-established and positioned in their local markets... ...with the potential to scale up their activities on the regional level to build them into "Regional Champions".

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Type of Investment

Significant minority (without excluding majority) positions

Hands on monitoring approach centered around effective value addition

Holding period between 4 and 6 years

The Group's hands-on investment approach is key to its success in building and generating healthy long term returns in its investee companies

Tuninvest-AfricInvest proved to be effective in pushing forward the regional expansion and growth of its portfolio companies

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Diversified portfolio as a result of a proactive investment strategy

90 investment companies, 42* exits, a geographical coverage of 21 countries and 3 failures

A breakdown by sector

TunInvest - AfricInvest has developed a knowledge into a large span of economic sectors including:

A breakdown by geographical spread

TunInvest - AfricInvest portfolio includes investments spanning most of the African continent:

2,80%

4%

3%

3%

19,40%

7% 34%

1,40%

14%

76,40%

15% 21%

Manufacturing IT, Telecom and electronics Retail and Distribution Transportation and Services

Agribusiness Financial services Health and Education Hotel / Leisure

North Africa Western Africa Eastern and Central Africa Southern Africa

Portfolio breakdown as of December 2010 (*) Including confirmed ongoing exits

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We create value at all levels

TunInvest ­ AfricInvest value creation is based on top line growth and margin improvement, combining organic growth with buy-and-build strategies

1

10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 1998 1999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

1.58 1.27 1.98 1.64 1.49 1.60 1.51 2.66

2.97

FINANCIAL RETURNS

Exits generated decent IRR and money multiples results, with a strong increase in performance over the last four years

6.11

Number of Exits

Average Money Multiple

Average holding period: 5.0 years

2.60 1.93

The money multiple for the overall realized portfolio (including writeoffs) is of 2.3X

All exits since inception

Breakdown by type of exits

2010 exits only

Breakdown by type of exits

2% 10% 38%

Sale Back

Strategic sale MBO IPO / OTC

18% 18% 18% 18%

18% 18%

14%

27% 27%

19% 17%

Secondary

Write Off

18% 18%

Sale Back Sale Back Strategic sale Strategic sale MBO MBO IPO / OTC IPO / OTC Secondary Secondary Write Off Write Off

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Contribution to the Good Environmental and Social Conduct of Portfolio Companies

To reflect its own values and commitments, TunInvest - AfricInvest insists on the commitment of its investee companies to:

1Ethics and Values 2 Environment 3 Social Responsibility

Conduct their business in an ethical manner Uphold high standards of business integrity and honesty, and operate in accordance with local laws and international good practice Enhance corporate governance, financial reporting and transparency.

Have operations in compliance with the local applicable environmental and social requirements, as well as the environmental policies of the World Bank Take into account the impact of their operations on their local communities

Provide safe and healthy working conditions for their employees and contractors Treat all employees fairly irrespectively of gender, race, color, language, disability, political opinion, age, religion or national/social origin

TunInvest - AfricInvest is one of the founding and board member of the AVCA (The African Venture Capital Association).

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Contribute to good governance of portfolio companies

1Transparency

Achieving financial transparency of investee companies is a very important objective of AfricInvest - Tuninvest. Improving financial reporting and corporate governance for the investee companies brings TunInvest-AfricInvest closer to that objective.

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Independent board members

Whenever possible, TunInvest - AfricInvest also encourages its investee companies to bring other independent members to their boards. It insists that these independent board members bring real added value to the table: industry expertise, respected persons who are both willing and able to exercise independent judgment.

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Reinforcement of the management team

TunInvest - AfricInvest often helps reinforce management teams of the investee companies with the right qualified persons. It also enhances the ability of the companies to attract and retain top talent by pushing them to adopt the appropriate incentive schemes and plans. TunInvest AfricInvest plays a major role in ensuring a transition from family rules to institutional rules.

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Strategic Committees

These committees meet with a much higher frequency than board meetings and are very effective as they are composed of all the key persons in the company (Marketing, Production, Key management etc). Among the positive outcomes of these committees is to provide timely, relevant, accurate and complete information in order to facilitate decision making process.

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Hands on approach

Given TunInvest ­ AfricInvest's proactive approach, it basically acts as a "de facto" independent member in the boards of (family owned) companies and brings the same kind of benefits to the boards of the investee companies that is expected from strong "independent" board members.

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Contribution to economic growth

TunInvest ­ AfricInvest value creation is based on top line growth and margin improvement, combining organic growth with buy-and-build strategies

Data relative to the whole portfolio

1.9x

1 958

2.2x

366

1.8x

282

1.8x

687 382

1 052

166

156

Equity

In Million

· If we limit the analysis to the portfolio held for a minimum of two years, the impact becomes even more significant: · Turnover 2.4x, leading to a CAGR of 16%. Exports: 3.2x, CAGR of 21% (despite a slowdown of exports to OECD countries in recent years). EBITDA: CAGR of 21%. The higher EBITDA growth compared to sales growth also indicates an improvement in margins and productivity.

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Contribution to tax revenues of national governments

TunInvest ­ AfricInvest investments provide benefits for the local governments through higher growth of employment and tax contribution at the level of portfolio companies

Data relative to the whole portfolio

1.8x 1.4x 371

1.7x

1.7x

25 19 16

27

424

204

238

In Million

For portfolio companies held for at least two years, total tax contributions grew on average to 2.2 times corresponding to a CAGR of 15%. It should be noted that this growth is tempered by the fact that in many of the countries where we invest, companies get significant tax rebates when they develop exports.

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Contribution to social development

TunInvest - AfricInvest seeks to assess the wider benefits generated by its investment to the economies where they operate and to the people working for them

Data relative to the whole portfolio

For the portfolio companies held for at least two years: Staff size grew by 86% during the holding period. Total salaries grew to 2,1 times which translates to a CAGR of 14%. The training budget grew to 3.3 times (*). 12 847

2.7x

1.6x

20 265 64

1.8x

113 0,9

2,4

In Million

(*) Only 50% of the portfolio companies reported training budget data.

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Case studies ­ sample of investee companies

Name: Country: Sector:

THCC Tunisia Health - Clinic

Name: Country: Sector:

Alios West and Central and East Africa Financial Services

Name: Country: Sector:

S2M Morocco IT, Telecom and Electronics

Name: Country: Sector:

Kiboko Holding Limted Uganda, Burundi, Rwanda Consumer goods, Pharmaceutical

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