SHAREHOLDER UPDATE 27 MARCH 2010201122205722

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SHAREHOLDER UPDATE 27 MARCH 2010201122205722 Powered By Docstoc
					SHAREHOLDER UPDATE
   27 MARCH 2010
                      Contents
       Objectives of Eyomhlaba
    1. O            f
    2. Highlights of 2009
    3. Indicative net asset value
    4. Reserve shares
    5. Ordinary dividends and FICA
    6 Shareholders’ rights and restrictions
    6. Shareholders
    7. What happens at end of empowerment period?
    8. Important shareholder information
    9. Performance of ABIL
    9 P f              f
    10. ABIL Strategic review
    11. Questions ????




2
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%



3
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




4
5
                    d
                 Rand




    0
        5
            10
                        15
                                        20
                                                         25

                         14.75

                             15.75

                                 17.1
                                    17

                              16.34

                         14.77

                         15.07

                              16.30

                                     17
                                      7.71

                              16.32

                         14.75
                                                              Indicative net asset value (NAV)




                                     17
                                      7.75

                                      18.10

                                      18.12

                                              19.98

                                              20.04

                                              20.24

                                                20.76

                                              19.96

                                                 21.19

                                                20.84

                                                 21.25
Reserve shares

• Issued during 2009
   – Black employees
                                                  R7 99      R8 02
       • 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
       non executive and executive directors




6
Ordinary dividend
Calculation of the maximum dividend




7
Ordinary dividend – continued

Return on investment for different categories of shareholders who purchased 100 Eyomhlaba shares 
in 2005.

                                                                           Generall
                                                                           G         Generall
                                                                                     G          G
                                                                                                Generall
                                                                            public shareholder employee

Number of shares held                                                          100           100       100
Cost per share
C t       h                                                                  R 4 00
                                                                             R 4.00        R 3 00
                                                                                           R 3.00   R 1.50
                                                                                                    R 1 50
Total cost of investment                                                   R 400.00      R 300.00 R 150.00

Dividend per share ‐ 2009                                                     R 0.12        R 0.12    R 0.12

Dividend received in 2009                                                    R 12.00       R 12.00   R 12.00
Dividend receivable ‐ 2010                                                   R 14.00       R 14.00   R 14.00
                                                                             R 26.00       R 26.00   R 26.00

Percentage return on investment since purchase                                6.50%         8.67%    17.33%




8
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.

•   No interest paid on unclaimed dividends

•   FICA requirements
     – Certified copy of identity document
     – Certified proof of residence or affidavit
     – Bank confirmation of shareholder’s bank account

•                             SUPPLIED,
    IF FICA DOCUMENTS ARE NOT SUPPLIED TRADING WILL NOT BE POSSIBLE


9
Shareholders rights and restrictions

• Entitled to sell one-third in years starting:
            – 1 January 2011
            – 1 January 2012
            – 1 January 2013
                           over      counter
• 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
• E     hl b h h ld h                 i ht t    t t ABIL’ AGM




10
 What happens at end of empowerment period?

 •   Empowerment period planned to end 31 December 2015

 •   Eyomhlaba shareholders will receive ABIL shares

 •           y      y                q             pp         y
     Currently 100 Eyomhlaba shares equivalent to approximately 72 ABIL shares
     (before unbundling taxes)

 •                         borrowings
     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
     e.g. sell, pledge, cede, donate,                 trust, etc.

 •   Dividends from ABIL shares will then be paid directly to shareholders


11
Important shareholder information
     •                       year,
         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.

     •   A     l d i t i fi       i l t t     t          b      i d in l t i
         Annual and interim financial statements can now be received i 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
            e mail
         or e-mail eyomhlaba@linkmarketservices.co.za




12
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
    p
  September 2008




13
ABIL strategic review
     Key f
     K focus areas

     •                                             g
           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


14
                                                                     Thank you

                                                        QUESTIONS ??????




African Bank Investments Limited and Hlumisa Investment Holdings Limited are not investment or legal advisors. If you require advice on your 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
this presentation or if anything stated in the presentation is incorrect.

				
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