STANLIB INFRASTRUCTURE INVESTMENTS

August 2021 AGENDA

INTRODUCTION AND OVERVIEW

STANLIB INFRASTRUCTURE TEAM

STANLIB INFRASTRUCTURE FUNDS

CURRENT INVESTMENTS

WHY STANLIB INFRASTRUCTURE

CONCLUSION

APPENDIX INTRODUCTION AND OVERVIEW INTRODUCTION AND OVERVIEW

• STANLIB Infrastructure Fund II (Fund II) was established in 2016 with seed assets of approximately R1bn to provide institutional investors with a platform to invest in a diversified range of South African infrastructure projects

• At the beginning of 2020 STANLIB actively began a capital raise process to raise an additional R6bn through the STANLIB Infrastructure Fund of Funds (FoF). The Team’s intention was to create a significant competitive advantage through scale and diversification S T A N L I B Infrastructure • The FoF was launched in July 2020 and to date has successfully raised R6.7bn of new Fund of Funds commitments

• R5.9bn of these commitments have been drawn for investments with the remaining R800m pending deal execution

• Given the strength of the pipeline and the opportunities the team sees in the market we have decided to extend the capital raise beyond our original R6bn target

• Our new target fund size is R10-12bn

4 INTRODUCTION AND OVERVIEW (continued)

• Given budgetary constraints faced by the South African government, STANLIB Infrastructure firmly believes that private sector capital will play an increasing role in funding the upgrading and maintaining ’s infrastructure base as well as have a significantly positive impact on surrounding local communities

• Building on the above, STANLIB Infrastructure actively engages around environmentally S T A N L I B sustainable business practices, corporate governance and has a specific focus on social Infrastructure impact initiatives in local communities F u n d I I

• This presentation provides an overview of STANLIB’s Infrastructure capability

5 INVESTING IN INFRASTRUCTURE INFRASTRUCTURE AS AN ASSET CLASS

AIRPORTS TELECOMMUNICATIONS • Air & ground services • Voice (mobile & fixed line) • Commercial & parking • Data networks (FTTH, cables, towers)

ROADS SOCIAL INFRASTRUCTURE • Toll roads • Healthcare • Toll bridges • Education and Government facilities

RAIL WATER • Concession operators • Waste water treatment • Rolling stock • Desalination

PORTS POWER • Port operations • Generation IPPs • Container terminals • Distribution

RENEWABLES LOGISTICS, OIL AND GAS • Wind • Pipelines • Solar • Terminals & storage facilities

7 STANLIB INFRASTRUCTURE STANLIB ASSET MANAGEMENT BACKED BY A FORMIDABLE PARENT STRUCTURE

Standard Bank 53.65%

Industrial and Commercial Bank of China 20.1% stake in Group since 2008 100% GHANA NIGERIA DRC ZAMBIA Other ANGOLA Shareholders MALAWI 37.34% MAURITIUS

BOTSWANA ZIMBABWE

LESOTHO SOUTH AFRICA BEE Partners 9.01% Standard Bank and/or Liberty STANLIB 9 AUTONOMOUS INVESTMENT TEAM WHAT THIS MEANS FOR OUR CLIENTS

1 Independent philosophy

INVESTMENT 2 Independent process T E A M ALIGNED TO Investment team determines risk C L I E N T 3 tolerance OUTCOMES

Investment team accountable for 4 outcomes

10 STANLIB INFRASTRUCTURE TEAM

KEY INVESTMENT WORKING AS A TEAM FOR PROFESSIONALS 1 1 Y E A R S

Greg Babaya Andy Louw BCom, Bcompt (Hons), MBA BCom, DipAcc, CA(SA), Experience – 23 years CFA Experience – 18 years

ANALYSTS

Marisa Bester Kim Brown Muhammed Munshi Kimone Maharaj B.Acc, B.Com (Hons) BCom, CA(SA), CFA BAccSci(Hons) (with BBusSci(Hons) Experience – 16 years Experience – 7 years distinction), CA(SA), CFA Experience – 3 years years Experience – 5 years

OPERATIONS

Welile Masondo BCom, CA(SA) 11 Experience – 5 years KEY INVESTMENT PROFESSIONALS

GREG BABAYA MANAGING PRINCIPAL BCom, Bcompt (Honours), MBA Industry experience – 23 years Greg joined STANLIB in 2012 bringing more than 18 years of experience in energy financing, project finance and infrastructure investing in Africa, North America and Latin America. He also has a proven track record in private equity investing and, in the establishment, and capital raising of Infrastructure Funds. Prior to joining STANLIB as head of Infrastructure Investments Greg spent 12 years at Standard Bank, 9 years in the Project Finance business as head of Power and Infrastructure and the last 3 years as head of Infrastructure Equity managing a captive private equity portfolio. Before joining Standard Bank he spent 5 years with ABN Amro’s Integrated Energy and Project Finance group based in Chicago. Greg has 13 years experience on various funds governing boards and investment committees including the South African Infrastructure Fund (SAIF), African Infrastructure Investment Fund (AIIF), STANLIB Infrastructure Private Equity Fund 1 and STANLIB Infrastructure Fund II. He sits on numerous boards of fund investee companies. Greg holds a Bachelor of Commerce from University of Cape of Town, a Bachelor of Commerce Honours degree from the University of South Africa, and an MBA from the Kellogg Graduate School of Business at Northwestern University (USA).

A N D Y L O U W PRINCIPAL BCom, DipAcc, CA(SA), CFA Industry experience – 17 years Andy joined STANLIB in 2013 after having spent the past 13 years in mergers and acquisitions, project finance advisory and infrastructure investing in Africa. Andy has extensive deal making experience and a proven track record in infrastructure investing. He started his career at Standard Bank, where he was a mergers and acquisitions advisor on a number of transactions involving South Africa’s top 40 listed companies. He subsequently joined Macquarie, where he headed up Macquarie's Africa Infrastructure Advisory practice. After Macquarie, Andy re-joined Standard Bank and spent 3 years at Standard Bank as a Director of Infrastructure Investments. The team moved within the group to STANLIB, where they now manage assets on behalf of their clients. Andy holds a Bachelor of Commerce and Diploma in Accountancy from University of Kwa-Zulu Natal. He previously qualified as a Chartered Accountant and Chartered Financial Analyst. INVESTMENT COMMITTEE

The STANLIB Infrastructure Fund Investment Committees have been established with the mandate to approve all Fund investments and divestments. The committees consists of the following members:

FUND II COMMITTEE

ZODWA MBELE TLHABELI RALEBITSO MARK LOVETT FRED TEELING - SMITH JOHAN MARNEWICK Independent investment professional Independent investment professional STANLIB Head of investments STANLIB Equity analyst STANLIB Head of credit alternatives

FUND OF FUNDS COMMITTEE

HENRY MUNZARA CHRIS LISTER - JAMES PETER VAN DER ROSS ARNOLD GAIN STANLIB Deputy Head of Investments Independent Investment Professional STANLIB Portfolio Manager: Absolute Returns Independent Investment Professional INVESTMENT PROCESS

Financial structuring, Investment analysis, corporate governance due diligence and and commercial development negotiation

Investment recommendation and approval New investment opportunities Deal documentation preparation and execution, conditions precedent Investment management L i f e C y c l e Exit strategy execution Performance monitoring and input to commercial management and corporate governance

Continual Ongoing financial assessment of upside management and potential optimisation

14 STANLIB INFRASTRUCTURE: INTERGRATING ESG FACTORS INTO THE INVESTMENT PROCESS

Responsible exits, e.g. job security for DUE DILIGENCE INVESTMENT DECISION INVESTMENT AGREEMENT OWNERSHIP employees

EXIT

SCREENING ENGAGEMENT • ESG objectives shared • ESG considerations • Due diligence with the portfolio • Collaborate with portfolio company included in investment questionnaire to screen for company to set up an ESG programme high-level ESG risks committee discussions • Formal commitment • Leverage portfolio company board • ESG findings from due • Exclusions and restricted sought from portfolio to implement ESG initiatives diligence included in lists for high-level checks company by • Leverage ESG expertise and investment paper incorporating ESG issues experience across the portfolio • ESG considerations built in project agreements • Conduct periodic site visits DETAILED DUE into valuations and DILIGENCE financial models • Detailed due diligence MONITORING questionnaire to identify and address ESG risks • Ensure ESG considerations are on the portfolio company’s board agenda • Monitor ESG developments in internal portfolio management meetings

REPORTING TO LPs • Annual ESG report

15 WHY STANLIB INFRASTRUCTURE WHY STANLIB INFRASTRUCTURE

• Experienced team with deep complementary industry, technical and geographic investment experience T R A C K and a proven track record across the capital structure RECORD AND TRUSTED TEAM • Longstanding industry relationships with key decision makers across all stages of the process which provide unique sourcing, due diligence and post investment management • Top quartile track record – SIPEF 1 has delivered 2.4 times money back and an IRR of greater than 25% after fees and carry • Backed by STANLIB, Liberty and the Standard Bank Group • Strong corporate governance culture

DIVERSIFICATION • Fund managers representing investors in the South African infrastructure asset class are primarily THROUGH SCALE focused on new build investment opportunities due to management fees and carried interest opportunities • This has resulted in a significant number of investment platforms, few of which have managed to achieve meaningful scale or diversification across infrastructure asset classes • These platforms require asset exits within specific time frames, typically to a Rand investor • STANLIB, through Fund II, intends to provide its investors with a platform in which to achieve significant scale that allows for diversification across infrastructure assets and asset classes 17 WHY STANLIB INFRASTRUCTURE

STANLIB has a proven track record of achieving enhanced risk adjusted returns: • Unique deal sourcing via key investment professionals’ industry networks and ability to leverage off Standard Bank Group capabilities • Risk reduction through diversification ATTRACTIVE RETURNS • Fund leverage through scale • Long term time horizon – results in value being recognized that is currently being mispriced by the market • Multiple legal and governance due diligence mechanisms to mitigate risks • Significant experience and expertise around contract negotiation and capital optimisation

18 STANLIB INFRASTRUCTURE: MAKING A SIGNIFICANT AND SUSTAINABLE SOCIAL IMPACT

STANLIB Infrastructure promotes socially responsible & environmentally sustainable business practices and implements the highest standards of corporate governance & responsibility • STANLIB is a member of CRISA and UNPRI • Adheres to Equator Principles and • Incorporates ESG into all investment decisions

Socio economic development Economic development spend • R139m spent to date • R26m spent to date • R492m to be spent • R101m to be spent

Community Trusts Tonnes of CO2 saved • R547m fund flows to date • 789 000 per year • R2,364m expected future flows • Equivalent of 116 772 cars

BEE wealth creation Jobs created - direct • R522m net receipts to date • 675 jobs during construction • R2,756m expected future net receipts • 55 jobs during operations

* All numbers as at June 2021 19 SA REIPPP INVESTMENTS: MORE THAN JUST RENEWABLE ENERGY

20 CONCLUSION PROPOSED WAY FORWARD

• Core to our investment philosophy is that Infrastructure as an asset class in South Africa not only offers investors diversified, risk appropriate, stable, long term S T A N L I B returns but is a powerful means of making a tangible and sustainable difference to INFRASTRUCTURE South African communities

• This presentation is intended to provide clients with an introduction & overview of STANLIB Infrastructure’s fund offering

• To the extent, this offering is of interest, we would be very happy to engage further

22 C O N TA C T U S

Rosanne Howarth Mzwandile Ngcobo Client Fund Manager Client Fund Manager 011 448 5908 011 448 5914 [email protected] [email protected]

Tracy Coetzer Head: STANLIB Institutional Distribution 011 448 5091 082 330 8081 [email protected]

Keletsi Lehlokoe Client Fund Manager 011 448 6967 083 226 0083 [email protected] 23 T H A N K Y O U S TA N L I B DISCLAIMER

The information and content (collectively “information”) provided herein is provided by STANLIB Asset Management Proprietary Limited (“STANLIB”) as general information. Any information herein is not intended nor does it constitute financial, tax, legal, investment or other advice. Before making any decision or taking any action regarding your finances, you should contact a qualified Financial Adviser. STANLIB does not guarantee the suitability or potential value of any information contained herein.

As neither STANLIB nor its representatives did a full needs analysis, there may be limitations on the appropriateness of any information in this document with regard to a particular investor’s unique objectives, financial situation and particular needs. STANLIB does not expressly or by implication propose that the products or services offered in this document are appropriate to the particular investment objectives or needs of any existing or prospective client.

Performance data represented in this presentation is not GIPS compliant.

STANLIB is an authorized financial services provider.

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