Trans-Century GrAn Overview

INVESTING IN AFRICA

roup

Contents

1. Executive Summaryy2. Power3. Transport4. Specialised Engineering5. Consumer6. Summary Financials7. The Team 1

Executive SummaryTrans-Century Limited (“TCL”) is a Kenya–with investments across East, Central & So− Operating EBITDA of circa KES 1 4 Bil− Operating EBITDA of circa KES 1.4 Bil− Gross investment portfolio in excess oIndustry sectors include: Power InfrastruCableries Du Congo; Transport InfrastruSpecialised Engineering - AveryUniqueness of TCL:− Founded by entrepreneurial Kenyan bpeople and investorspeople and investors− Focus on power infrastructure, transpand specialized engineering− Operating companies led by dynamic with extensive experience & in-depth

–headquartered infrastructure group outhern Africallionllionof KES 9 billionucture - Tanelec, Kewberg, EA Cables,

ucture - Rift Valley Railways; and

business Entrepreneurial

port infrastructure Infrastructure focusmanagementcapabilities Ability to execute2

Investment considerations

Strong market fundamentals : undPower and Transport/ Cargo and SpStrong market positioning: In 7 coTanzania Rwanda DRC Zambia andTanzania, Rwanda, DRC, Zambia andL i l f ti ShLeveraging scale for execution: ShStrong management teams

Impressive financial performancethree) times money back on their

der-penetration and inefficiencies in pecialised Engineering ountries; including Kenya, Uganda, d South Africad South Africah h ld f d f KES 6 9 billihareholder funds of KES 6.9 billion

e: Shareholders have enjoyed 43 (forty investment since 20033

TCL’s focus going forward

Power TransportPower

Infrastructure

Transport

Infrastructure

Existing Investments:

Aluminium Cables Kenya-UganInvestments:

Copper Cables

Transformers

Switchgear

railway

Growth: Power Generation Logistics

Transmission

Trans-Century Ltd

AffiliatedSpecialised

e

Affiliated

Holdings

Specialised

Engineering

Consumer Investments

nda Distribution & Tea

Service

Operations &

Maintenance

Banking

Private equity

Engineering

Turn-key projects

EPC

Historical timeline & pan-A

2009: TCL becomes public 2006: engagement

of full timeof full-time management team

2004: TCL’s2004: TCL s initial buyout

POWER T

frican growth

TRANSPORT CONSUMERSPECIALISED

ENGINEERING

5

Contents

1. Executive Summaryy2. Power3. Transport4. Specialised Engineering5. Consumer6. Summary Financials7. The Team 6

POWER7

POWER7

Under-penetration of electrcommon theme across the rcommon theme across the r

InstalInstalled capacity( ) (MW/(MW)(Kenya) 1,473 (Kenya)(Uganda)

2

10.

919

340

(Tanzania)(Ghana)

2

1,490

919

( )(South Africa)

964,754

40,498

(USA)

Source: KPLC, US EIA

rification is a regionregion

led capacity per capita Electrification rate: / 1000 people)16%6

% of population38.2

14%

9%

4

5

21 6

7

61%

14%

3

4

62.4

21.6

100%

70%

1

2

3 172 9

831.8

100%13,172.9

8

TCL’s participation in the po

Power generationFocus area

Substation (step up)Focus areaFocus area

Residential/ Comm’l Use

ower sector

TransmissionTransmission lines Substations (step down)

Distribution transformers

Distribution lines

9

Regional utilities plans KenyaKenya

1.91.82.0

In millionsConnections

0.8

1.1

0 60.81.01.21.41.6 CAGR

19%

0.00.20.40.6

2006 2008 2012

Uganda

ConnectionsConnectionsUmeme Ltd, a regulated distribution company with a 20yr concessionCharged with growing connections , currently at 300,000 connections

Source: KPLC, Tanesco, Umeme, Ministry of Infrastructure

TanzaniaTanzania

1.61 61.8

In millions

CAGR

Connections

0.7

1.2

0.81.01.21.41.6 CAGR

13%

0.00.20.40.6

2007 2012 2014

Rwanda

2007 2012 2014

Connections

350

300.0350.0400.0

In thousands

CAGR25%

91 110

50 0100.0150.0200.0250.0

0.050.0

2006 2008 2012

(Rwanda) 10

Segmental reportingPower

In millions 2010A 20KES

Revenues 5,505 4KES

EBIT 368Strong growth in the business fundamentals, le–Copper volumes up 9%

l i i l 140%–Aluminium volumes up 140%–Transformer volumes up 38%Impairment of working capital at subsidiary le

009A % Variance

4,485 22.7%

731 -49.7%

eading to increased revenues:

evel impacted EBIT 11

Contents

1. Executive Summaryy2. Power3. Transport4. Specialised Engineering5. Consumer6. Summary Financials7. The Team 12

TRANSPORTTRANSPORT 1313

As port volumes rose, railwcontinued their consistent d

14

16

18

20MTs millions

continued their consistent d

78

4 86

8

10

12

14

4.8

2.5

0

2

4

6

1980s 1990s

Port Volume

Source: KPA, Kenya Railway Corporation and RVR estimates

way volumes decline

13

19

decline

13

2.0 1.5

2000 2010

RVR Volume

14

The RVR opportunityTechnAmerica La(TechnpartLogistica (leader in B

PeopleRailway engineers in the region are p

grenowned2 800 k f k

Existing assets2,800 km of track~100 locomotives~4,000 wagonsg

nicalatina ( )nical tner(ALL) is a Brazil

FundingStrong shareholdersBank lendersFunding

Bank lenders

ll fMarket

demand20 million MT of cargo15

Contents

1. Executive Summaryy2. Power3. Transport4. Specialised Engineering5. Consumer6. Summary Financials7. The Team 16

Network of opportunity

Strong regional presence with key relationships

POWER SOURCE PRODUCTS/PERKINS

17

Segmental reportingSpecialised Engineering

In millions 2010A 20KES

Revenues 411KES

EBIT 65Growth in the Specialised Engineering Division–Growing industrial baseFocus by authorities on stringent ob– Focus by authorities on stringent ob– Continued demand for back-up powe

009A % variance

226 82.0%

22 191.9%

n driven by:servance of codes and standards (weights)servance of codes and standards (weights)er

18

Contents

1. Executive Summaryy2. Power3. Transport4. Specialised Engineering5. Consumer6. Summary Financials7. The Team 19

ConsumerOverview

The prroductsProducts include:– loose tea (Nguvu, Supreme, Premium) – tea bags (Premium and Luxury)– infusion products (Camomile, Green tea, Hibiscus), )

20

Segmental reportingConsumer

In millions 2010A 2KES

Revenues 915KES

EBIT 114Tea volumes up 13% driven by:– Growing demand for tea in the re– Successful business repositionin

2009A % variance

714 28.1%

33 249.2%

egiong21

Contents

1. Executive Summaryy2. Power3. Transport4. Specialised Engineering5. Consumer6. Summary Financials7. The Team 22

2010 Group PerformanceGroup revenat Ksh 6 8at Ksh 6.8b fGroup earnings befo(EBIT) 2(EBIT) 2at Ksh 974Group net incat Ksh 468

nues 25%8 billion8 billionre interest & taxes 22%22%4 millioncome 99%8 million

23

Summary Financial StatemeIncome statement

Ksh in thousandsKsh in thousands

TurnoverP fit b f d i tiProfit before depreciation, impairment and finance costResults from operating activities

Profit before income taxProfit after income tax

Profit after tax is attributable to:Equity holders of the companyNon-controlling interestProfit for the year

ents

GROUP GROUP2010 20092010 2009

6,794,650 5,414,887

1,415,828 1,105,627974,271 796,069

630,585 526,625468,262 234,497

343,713 91,903124,549 142,594468,262 234,497

24

Summary Financial StatemeBalance sheet

COMPANYKsh in thousands 2010

KShs'000ASSETSNon current assets 9,040,291Current assets 392,374Total Assets 9,432,665

EQUITY AND LIABILITIESShare capital 133,519Sh i 106 684Share premium 106,684Reserves 6,692,676Equity attributable to equity holders 6,932,879Non-controlling interest - Total Equity 6,932,879Non current liabilities 2,166,657Current liabilities 333,129Total equity and liabilities 9 432 665Total equity and liabilities 9,432,665

ents

COMPANY GROUP GROUP2009 2010 2009

KShs'000 KShs'000 KShs'000

7,878,499 7,141,777 5,039,372556,398 4,094,701 3,693,9598,434,897 11,236,478 8,733,331

131,462 133,519 131,462106 684 106 684 106 684106,684 106,684 106,6845,581,918 3,711,277 2,397,9285,820,064 3,951,480 2,636,074- 1,341,974 881,7715,820,064 5,293,454 3,517,8451,952,622 3,371,518 3,168,545662,211 2,571,506 2,046,9418 434 897 11 236 478 8 733 3318,434,897 11,236,478 8,733,331

25

TCL’s Strong Track Record

TCL Group Revenues

8 000

6.87,000

8,000

5.5

6,000

CAGR25%

enue

s in

billi

ons

4,000

5,000

Grou

pre

v

NoIn

4,000

2009A 2010A

The group has seen remarkable growth in revcompany revenue as well as new acquisitionsTCL is investing in the future with circa USgcapacity across core cables and transformer bNote: ¹Times Money Back calculation assumes investment of TCL Hold Co’s 20

Value creation¹

50x10

6.935x

40x

45x

50x

7

8

9

10

43 x

ons

20x

25x

30x

4

5

6

olde

r fun

ds in

billi

o

0.10x

5x

10x

15x

0

1

2

3

Shar

eho

o. ofvestments: 0 1 5 6 8 9 10 10

0x0

2003 20101 x

venues, driven by organic growth in portfolioSD 20 mm of capex spent aimed at triplingp p p gbusinesses003 shareholder capital 26

Contents

1. Executive Summaryy2. Power3. Transport4. Specialised Engineering5. Consumer6. Summary Financials7. The Team 27

B d f diCompany Board of DirectorBoard of diP t K Z h i h MPeter Kanyago Zephaniah M

3eex

Founder East Africa CourierCPA (K), MBA, industrial management

Njeru Kirira Robin K– Directorship: EAbcon Group, Z

c– Directorship: Ecobank (chair) Fedex, Otis, KTDANjeru Kirira Robin K

Tax and fiscal policy administratorServed various capacities in G t T

BC(A– Directorship: Inoorero University – Directorship: P

(K), Sigona Gol

Govt. Treasury A

Carol MusyokaExtensive experience in banking & corporate fi– Directorship: Enablis (EA),

Institute for Economic Affairs

finance

(8)rsrectors (8)N i KiMb Ch i Ngugi KiunaMbugua, Chair

30 years of entrepreneurship experience (industrial h i l )

Vast senior multinational management

Kimotho Joseph KaragoEAC (chair), P&A (EA), Zeniki Investments

– Directorship: UBA bank (Chair), Cooper Ke, Cannon Assn, X&R Tech

chemicals) experience

Kimotho Joseph KaragoBusiness advisory & Consultancy regionally (Eastern & Southern Af i )

Large-scale architectural developmentUrban infrastructure d l t

Polaris International lf Club

– Directorship: Kenya Children’s Home, Karago & Associates, Mcensal Ltd

Africa) development

Dr. Gachao KiunaCorporate finance & strategy consulting gy g(McKinsey)

28

Experienced Management tDr. Gachao Chi f E i OChief Executive OYida KemoliGroup Head of Corporate finance & Strategy Corpstrat(McKPhD

Capital markets investment banking (JPMorgan), Africa PE experience (Actis)MEng in Chemical

PhD Bioc

Allan MunyuaMEng in Chemical Engineering

Division Principal, Power & Mumo MuthDivision ManagerBusiness procurement, Financial management advisoryMasters in settlement &

Specialised EngineeringInves(DeutprivaMBA

Consumer and In

Ng’ang’a NjiinuMasters in settlement & infrastructure development, Bachelors of Architecture Kibiru Mut

MBA Schoo

Financial analysis, planning & strategyChartered Financial Analyst

Division Manager,Specialised EngineeringBachin FinUnive

Business AnalystChartered Financial Analyst, MBA finance & investment management

Univelevel CFA d

teamKiunaOffi Wambua Kimeu Group Head of FinanceOfficerporate finance & tegy consulting Kinsey)Biotechnology BScBiotechnology, BSc

chemistry Audit & Advisory (PwC)Certified Public Accountant (Kenya)Bcom finance

Geoffrey NjueGroup Internal Auditorhengir, Group audit experience at Nestle and Industrial Promotion ServicesCPA (Kenya)

stment banking tsche Bank) and

ate equity experience(Harvard Business

nvestor RelationsCPA (Kenya)BSc in Civil EngineeringJanet Wanjikuthaka

(Harvard Business ol), BBA finance

Audit (Kenya Women Finance Trust)Certified Public Accountant

Management & Financial Accountantelor of Science degree

nance from Towson ersity Maryland USA Certified Public Accountant

(Kenya)Bcom finance 29

ersity, Maryland USA. 3 candidate for the

designation

Contact Us

www.transceentury.co.key

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