OVERVIEW I Ii CONTENTS

OVERVIEW I Ii CONTENTS

OVERVIEW I II CONTENTS 2 14 Group profile Remgro's values 4 16 Remgro's unlisted investments Directorate and ownership structure Originally established in the 1940s by 6 20 A strong family legacy Tomorrow matters the late Dr Anton Rupert, Remgro aims to be the trusted investment company 8 23 Investment strategy Doing business ethically of choice that consistently creates 10 24 sustainable stakeholder value. Remgro's approach to capital allocation Consolidated results at year-end 12 26 Remgro’s profit at holding company level Investment portfolio analysis 1 GROUP PROFILE DIVERSIFIED CONSUMER FINANCIAL PORTFOLIO SOCIAL IMPACT HEALTHCARE INFRASTRUCTURE INDUSTRIAL INVESTMENT MEDIA Our interests PRODUCTS SERVICES INVESTMENTS INVESTMENTS VEHICLES consist mainly of investments (2) in the following industries 44.6% 77.1% 30.6% 54.7% 50.0% 36.3% 32.3% 4.0% 50.0% (3) (1) 31.8% 44.1% 23.3% 24.9% 28.1% 0.1% 100% (3) 100% 22.8% 100% 44.1% 100% Equity accounted investment Subsidiary Investment at fair value through other comprehensive income 30.0% 37.7% 100% Listed entity Number of Remgro nominated director/s; alternates excluded (3) infrastructure fund (1) Voting rights in Distell equal 56.4%. (2) Voting rights in Blue Bulls equal 36.7%. 33% 16.2% (3) Limited Partners in Pembani Remgro, Milestone Capital and Prescient – therefore limited (or no) voting rights. 2 3 REMGRO’S INDUSTRIAL INFRASTRUCTURE Why does UNLISTED PGSI holds an interest in PG Group Remgro invest Holdings, South Africa’s leading infrastructure fund INVESTMENTS integrated flat glass business. in certain CIVH’s key operating PRIF is a fund Air Products produces oxygen, companies are Dark focused on private nitrogen, argon, hydrogen and carbon sectors? CONSUMER PRODUCTS Fibre Africa and Vumatel, sector investment in dioxide for sale to major industrial which construct and own infrastructure across users. It also distributes industrial fibre-optic networks. the African continent. Our investment strategy… gases and ancillary equipment to the Siqalo Foods manufactures spreads which merchant market. • Emphasises investments that will make it sells under market-leading trade marks, including Flora, Stork, Rama, Rondo. a significant contribution to Remgro’s Total South Africa refines and markets earnings petroleum and petroleum products in SEACOM provides The Energy Exchange South Africa, and also distributes to high-capacity local and of Southern Africa acts • Prioritises significant influence and board neighbouring countries. international fibre-optic as a market place where FINANCIAL SERVICES representation connectivity, internet independent generators Wispeco manufactures and distributes and cloud services to the can sell their surplus extruded aluminium profiles used in wholesale and enterprise energy to industrial and • Gives preference to unlisted investments Business Partners invests capital, knowledge the building, engineering and durable markets in Southern and commercial entities who and skills in viable SMEs by providing goods sectors. East Africa. need it. funding, support and mentoring to • Prioritises entities where Remgro can entrepreneurs. It also manages the Sukuma Fund which Remgro donated R500m to identify sustainable value over the long DIVERSIFIED INVESTMENT VEHICLES SOCIAL IMPACT INVESTMENTS term during the Covid-pandemic. • Focuses on South African investments KTH is a black economic controlled and other African countries through MEDIA company focused on investment investee companies banking services, media and Our social impact investments intend to generate strategic investments. Its major a measurable, beneficial social impact alongside eMedia Investments, the only independent investments include Kagiso Media a financial return. Our social impact investments • Considers investments in other countries free-to-air television broadcaster in South Africa, Limited, Momentum Metropolitan primarily consist of the interests in the Blue Bulls rugby on an opportunistic basis has a range of media interests, of which e.tv is Holdings Limited and Servest Group franchise, Stellenbosch Academy of Sport and the the most significant. Proprietary Limited. Stellenbosch Football Club. 4 5 Remgro’s legacy begins with the late Dr Anton Rupert, CREATING SHAREHOLDER a South African businessman, philanthropist and VALUE SINCE 1948: A STRONG conservationist. In 1948, he established the tobacco FAMILY LEGACY company Voorbrand, forerunner of Rembrandt. Remgro aims to be the trusted investment company of choice that consistently creates sustainable stakeholder value The four key inflection points 1988 2000 2008 2020 regardless of economic or socio-political in Remgro’s history that have Separation of local and SA holding structure Remgro unbundled its Remgro unbundled its cycles. Indicative of a belief in Remgro reshaped our trajectory. overseas interests and the collapsed into two investment in British 28.2% investment in RMB and its future, Dr Anton Rupert’s son, These have allowed us to founding of Compagnie listed companies, American Tobacco plc Holdings Limited (RMH) Johann, chairs Remgro and Richemont, drive value creation through Financière Richemont AG, Remgro and VenFin to its shareholders by to its shareholders by and his grandsons, Anton Rupert (junior) a rebalanced portfolio with a Swiss-listed luxury goods way of an interim way of an interim and Paul Neethling are non-executive an increased focus on group built out by dividend dividend Directors on the Remgro Board. unlisted investments in specie in specie Dr Rupert’s son, Johann 1948: Dr Rupert founded 1989: Johann Rupert 1991: Johann Rupert 2018: Anton Rupert (junior) 2019: Paul Neethling Voorbrand, which appointed Deputy appointed Chairman appointed as non-executive appointed as non-executive eventually became Chairman of the of the Rembrandt Director of Remgro Director of Remgro forerunner of Rembrandt Rembrandt Group Group 1940s 1950s 1970s 1980s 1990s 2000 2008 2009 2016 2017 2018 2020 1956 1993 2009 2017 2018 Listed on the JSE Co-founded Vodacom Remgro and Rights issue Disposed of 25.75% (disposed in 2006) VenFin remerge for a total shareholding in Unilever consideration of South Africa in exchange R9 945 million for Siqalo Foods 6 7 INVESTMENT STRATEGY Acquire Hold Group Dispose/unbundle Significant contribution to Remgro’s Remgro’s portfolio of investments is grouped No value to be added earnings Consumer products into three buckets: Cash Growth Turnaround generative Value over the long term assets assets Maturity profile of business Financial assets services Healthcare Significant influence and Board We understand the importance of maintaining Risk profile has changed representation are integral CRITERIA (inter alia) the right balance between these asset groupings to preserve our strong balance sheet and Infrastructure Unlisted preference continue driving long-term shareholder value. Strategic reasons Investment criteria Sectors we avoid: mining, gambling Prevailing culture and Expected return Environmental Viability of products Social responsibility Barriers to entry ethics of the Board on investment > footprint of the and services and their awareness of the and management Remgro’s internal enterprise life cycles enterprise team hurdle rate 8 9 REMGRO TAKES A LONG-TERM, Remgro’s value contribution as an MEASURED APPROACH TO investment holding company CAPITAL ALLOCATION • Strategic input Capital is expensive and not infinite. Capital • Allocation of: allocation is our most important function. » Financial capital to further growth We need to be disciplined in our allocation of » Manufactured capital capital and if wrong, act quickly and decisively. » Human capital in management support » Relationship capital in identification of opportunity We inevitably base capital allocation models on certain » Intellectual capital assumptions about the future. However, many recent, global events have proven that change truly is the only » Environmental capital constant. Never have we needed a margin of safety as much as now in our investment decisions. • Treasury services (as required) Our long-term approach allows investee companies’ management teams to pursue sustainable opportunities, rather than short-lived gains, and ensures credibility, • Dealmaking ability (environment for corporate transactions) stability and continuity during challenging trading periods. The South African economy has and will certainly continue • Decentralised management approach to suffer hardship, but we have faith in our Group’s ability, largely due to our prudent investment strategy and low gearing ratios, to weather any storm and overcome challenges. • Internal audit and risk services (as required) • Formal and informal associations, providing our investee companies with opportunities to benefit from a wider network Jannie Durand Chief Executive Officer 10 11 REMGRO’S PROFIT AT HOLDING COMPANY LEVEL The best approximation of Remgro’s profit at holding company level • Dividends received from • Net impairment of investments • Profit/loss on the investee companies • Net corporate costs, including realisation of (at the centre) comprises: • Interest received remuneration and other investments How we benefits paid to employees • Foreign exchange rate make • Interest paid movements • Taxation paid our money Capital Distribution to allocation shareholders in new and existing And how we investments distribute it again 12 13 AS A DIVERSIFIED INVESTMENT We are committed to managing our business in a HOLDING COMPANY, REMGRO’S sustainable way and

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