SHAREHOLDER UPDATE 27 MARCH 2010

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					SHAREHOLDER UPDATE
   27 MARCH 2010
                     Contents
    1. Objectives of Hlumisa
    2. Highlights of 2009
    3. Indicative Net Asset Value (NAV)
                                  (    )
    4. Hlumisa 2009 offers
    5. Shareholders’ rights and restrictions
    6 What happens at the end of empowerment period?
    6.
    7. Important shareholder information
    8. Priorities going forward
    9. Performance of ABIL
    10. ABIL strategic review
    11. Questions




2
Objectives of Hlumisa

•   Hlumisa is ABIL’s second BEE programme set up to facilitate broad-
    based ownership of ABIL by black individuals.

•   Eyomhlaba (ABIL’s first BEE programme) currently holds 4.7% of ABIL.

•                           2.0%                  shares.
    Hlumisa currently holds 2 0% of ABIL ordinary shares

•   Therefore current combined holding in ABIL is 6.7%

•   The target is for Eyomhlaba and Hlumisa to own at least 10% of ABIL by
    end of 2015 (after settling all borrowings).




3
Highlights of 2009

•   Received R27.5 million in ABIL dividends

•   End of 2008 Hlumisa held 14 million shares in ABIL which is 1.7% holding
    in ABIL.

•   Since end of 2008 Hlumisa bought a further 2 million shares which
    brought its total ABIL shares to 16 million

•   This is equal to 2% holding in ABIL.




4
Indicative Net asset value (NAV)




5
    Hlumisa 2009 offers
    •   During the 2009 financial year, Hlumisa made an offer as follows:

            8 4 million ordinary shares to existing Black ordinary shareholders
            8.4
            at subscription price of R5,40 per share.

            5 million ordinary shares to ABIL Black employees at subscription
            price of R4,50 per share.

    •   Thi offer initially closed on 30 O t b 2009 and was extended t 27
        This ff i iti ll l       d       October      d       t d d to
        November 2009.

    •   The offer was oversubscribed, applications for shares exceeded
        available shares by 1.7 million.



6
Hlumisa’s second offer - continued
    •   Allocations on this offer were as follows:


            11.4
            11 4 million shares were allotted to existing Black shareholders

            1.8 million shares were allotted to ABIL Black employees

    •   Total amount raised from the above offers totalled R69.6 million
        compared to a target of R68 million




7
Shareholders’ rights and restrictions

•   Entitled to sell one-third in years starting:
     – 1 January 2011
     – 1J January 2012
     – 1 January 2013
•   May only sell through “over the counter” mechanism to other black
    individuals
•   May not cede or pledge shares before 31 Dec 2015
•   Death of shareholder – shares may be transferred to legal beneficiary
                                         y                  g           y
•   Beneficiary are subject to the same restrictions as shareholder
•   Hlumisa shareholders have a right to vote at ABIL’s AGMs




8
What happens at end of empowerment period?
    •   Empowerment period planned t end 31 D
        E         t    i d l     d to d          b
                                            December 2015

    •   Hlumisa shareholders will receive ABIL shares

    •   Currently 100 Hlumisa shares equivalent to approximately 50
        ABIL shares (before unbundling taxes)

    •   Hlumisa 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 will then be paid directly to shareholders




9
Important shareholder information

 •    From 2010 financial year, the statements 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 email.

 •    If you would like to start receiving annual and interim reports via e-
      mail, please send your full name and identity number to:
      hlumisa@linkmarketservices.co.za

 •    If you have any questions please call the call centre on
                       e-mail hlumisa@linkmarketservices.co.za
      0860 225 233 or e mail hlumisa@linkmarketservices co za




10
Priorities going forward

•    Issue shares to new black employees and directors of the ABIL group of
     companies

•    Explore borrowing funds to purchase more ABIL shares




11
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
                2008.
     September 2008

•    Total dividend per share paid of 185 cents – down from 210 cents in
     September
     S t b 2008




12
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




13
                                                      Questions???




     African B k I
     Af i              t   t Limited d Hlumisa Investment H ldi
             Bank Investments Li it d and Hl i I        t               Limited
                                                             t Holdings Li it d are not i
                                                                                      t investment or l
                                                                                             t   t legal advisors. If you require advice on your i
                                                                                                        l d i                 i    d i                t   ti
                                                                                                                                                 investment in
     Hlumisa Investment Holdings, you should consult an investment and/or legal advisor.

     This presentation does not replace the Hlumisa prospectus and Hlumisa Articles of Association. If anything in this presentation is different to what is stated in the
     Hlumisa prospectus and/or Articles of Association, the Hlumisa prospectus and Articles of Association take precedence.

     Furthermore, African Bank Investments Limited and Hlumisa Investment Holdings Limited will not be responsible in any way if anything has been omitted from
                                                                    incorrect.
     this presentation or if anything stated in the presentation is incorrect




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