WHO IS NAKUMATT Nakumatt Holdings Limited is the largest retailer across East Africa. Its founding principles are: provide a variety of affordable quality brands, as well as excellent and superior service to customers. There are 54 standalone branches operating in , , Tanzania and .

• Nakumatt offers 24 Hour Shopping experience in 11 branches revolutionizing the regional shopping culture.

• By partnering with Bank Of Africa (BOA) Nakumatt is able to extend credit facility to esteemed customer and offer quality products at affordable & attractive credit terms.

1 Current Geographic Presence

Uganda . 8 stores Kenya − Hypermarket (2) . 36 stores − Supermarket (4) − Hypermarket (13) − Convenience Store (2) − Supermarket (13) − Convenience Store (10)

KENYA UGANDA Kitale (1) Kakamega (1) Nanyuki (1) Rwanda (7) Eldoret (2) Meru (1) . 2 stores Kisumu(2) Nakuru (1) − Supermarket (2) Thika (1) Mbarara (1) Kisii(1) (20) RWANDA Moshi (1) (2) Malindi (1)

Arusha (1) Mombasa (3) Diani (1) Store Evolution(1)(2)(3)

TANZANIA 50 Dar-es-Salaam (2) 44 4 38 1 36 2 Tanzania(2) 1 2 8 LEGEND 32 1 7 2 2 City/Town (Store presence) . 4 stores 1 4 3 3 (x) Number of Branches − Hypermarket (1) 21 21 1 1 − Supermarket (3) 1 34 36 28 30 31 20 19 Notes: (1) Number of stores as at each calendar yearend (2) Includes 3 branches acquired from Shoprite Tanzania 2008 2009 2010 2011 2012 2013 2014 (3) Kenya branch closures include: • Nov-2008, the Thika Road branch wasdemolished Kenya Uganda Rwanda Tanzania Total Stores • Jan-2009, the Downtown branch was destroyed in a fire • Sep-2013, the Westgate branch was destroyed in a terroristattack

Systematic expansions with strong understanding of local markets 2 Growth Enabled by Large, Young and Educated East African Population

East Africa is expected to experience higher population growth than the rest of Africa Population literacy across East Africa is higher than the (Population – millions) overall Africa average 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Africa 55% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 3% 3% 174 151 156 160 165 169 139 143 147 Burundi 87% 128 132 136 Uganda 73%

Kenya 72%

Tanzania 68% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 66% Kenya Tanzania Uganda Rwanda Rwanda Burundi East Africa Growth Africa Growth Source: Unicef Website Source: World Economic Outlook (Apr-2014) Note: African numbers based on weighted average by population size per country Young population with ~65% below the age of 25 Rapid urbanisation in East Africa increases potential (Population breakdown by age(1) – 2014) consumer base for retailers

80+ 0.3% 0.4% 2% 75-79 Males 0.4% 0.6% 41% 19% 11% 16% 24% 27% 70-74 0.6% 0.8% 65-69 Females 0.9% 1.2% 5% 6% 60-64 1.3% 1.6% 45% 55-59 1.8% 2.1% 4% 5% 50-54 2.4% 2.5% 53% 4% 45-49 3.1% 3.0% 3% 40-44 4.1% 3.9% 35-39 5.5% 5.3% 30-34 6.8% 6.8% 25-29 8.0% 8.0% 20-24 9.1% 9.1% 0 – 14 15-19 10.5% 10.5% 15 – 64 10-14 12.9% 12.8% Africa Rwanda Burundi Uganda Kenya Tanzania 5-9 15.3% 15.0% 0-4 16.8% 16.5% 65+ CAGR 2012-2030 Urbanisation penetration Source: US Census Bureau Source: Unicef Website Note: (1) Countries include Kenya, Tanzania, Uganda, Rwanda and Burundi Note: African numbers based on weighted average by population size per country

Demographic dividend – Rising middle class and increasing urbanisation 3 Growth Enabled by: Fast-growing Emerging Middle Class with More Disposable Income

Increasing disposable income in African Households East Africa forecasted to grow faster than the rest of Africa (Share of households in Africa by income brackets) (East African GDP & Growth (US$bn))

18% 17% 11% 10% 11% 9% Income brackets 18% 11% 13% 11% 100% = 163m 196m 244m 6% 6% 8% 2% 12% Globals (>US$20k) 18% 11% 9% 9% 8% 8% 14% 10% 8% 17% Consuming Middle Class 6% 5% 3% 5% Discretionary 18% (US$10k-US$20k) (5%) Income 21% 207 23% Emerging Consumers 187 Basic Needs (US$5k-US$10k) 171 29% 154 139 32% 125 Basic Consumer Needs 111 29% 100 (US$2k-US$5k) 85 74 76 80 34% 24% 18% Destitute ( US$5,000

Source: McKinsey’s Africa Consumer Insight Centre Source: World Economic Outlook(Apr-2014) Stable and lower inflation outlook for East Africa compared to Africa Fair wealth distribution in East Africa (CPI weighted by GDP per East African country(1)) (Gini Coefficient comparison)

14% World 40 13% Africa 12% 45 11% South Africa 63 Brazil 52 11% 7% China 47 7% 7% 9% 9% 6% 6% 6% 6% 6% 8% Rwanda 47 Uganda 6% 44 6% 5% 5% 5% 5% 5% 5% Kenya 43 Burundi 42 Russia 42 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Tanzania 38 EastAfrica Africa India 37 Source: World Economic Outlook(Apr-2014) Note: (1) Countries include Kenya, Tanzania, Uganda, Rwanda and Burundi Source:CIA

Increasing disposable income – generating substantial consumer demand for retailers 4 Growth Enabled by: Additional Key Enablers

Agriculture & Horticulture

Banking Progress towards Reforms & East African Deepening of Union Capital Markets

Key Enablers

Political Infrastructure Stability & Development in Introduction of Power & County Transport Governments Sectors

Education Drive

Pivotal factors driving the East Africaneconomy 5 Key Growth challenges Access to affordable long term funding options for; Funding CAPEX and OPEX Occasional reliance on Commercial Papers, Overdrafts and bank loans

Retail in East Africa relies on choice locations Operating Very slow uptake by Property developers Locations Total lack of space in key towns

Wholly developed internally Human Resource Not a single retail management institute of higher education development Retail just beginning to gain recognition as a career line Trade unions interference Managing and mitigating challenges Planning to cross list on the regional bourse Funding Seeking a strategic investor who shares Nakumatt vision

Partnership with property development firms Operating National And county governments engagement to encourage incentives for Retail Facilities Locations investors Partnership with local Universities Human Resource Internal training solutions development Retention of training and development consultants

Mentorship 6 6 REGIONAL EXPANSION Challenges

Challenges Challenges

▪ Lack of regional retail development policy POLICY ▪ Poor national government’s support for retail investors ▪ Resistance from existing retailers in country ▪ Slow Tariff harmonization ▪ Poor trade facilitation at regional ports of entry ▪ Poor transport network; heavily reliant on road carriers Non Tariff Barriers ▪ Diverse cultural and work ethics in Kenya, Uganda, Tanzania and Rwanda

Culture

▪ Fledgling distribution hubs ▪ Over reliance on Kenya due to port advantage and market development Supply Chain

7 7 Thank You

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