EPE CAPITAL PARTNERS LIMITED - Quarterly update

Quarterly update

EPE CAPITAL PARTNERS LTD
(Incorporated in the Republic of Mauritius)
(Registration number: C138883 C1/GBL)
ISIN: MU0522S00005
Share Code: EPE
(“Ethos Capital”)

QUARTERLY UPDATE

Ethos Capital offers shareholders long-term capital appreciation by directly and indirectly investing in a
diversified portfolio of mainly unlisted private equity type investments that are managed by Ethos Private
Equity (Pty) Limited (“Ethos”). Set out below is an updated net asset value (“NAV”) statement for the
quarter ended 31 March 2017, as well as an update on the investment portfolio and the progress of its
various strategic initiatives.

Investment Portfolio and NAV
                                                                                               As at
                                                                                     31 March         31 Dec
                                                                                         2017           2016
                                                                                    R'million      R'million
Ethos MMF 1 (1)                                                                         306.7          292.2
Ethos Fund VI (2)                                                                        51.0           48.0
Total unlisted investments                                                              357.7          340.2

Money market investments and cash equivalents                                         1,441.3        1,432.1
Net current assets                                                                       20.4           21.9
Current assets                                                                        1,461.7        1,454.0

Net asset value                                                                       1,819.4        1,794.2

NAV per share (Rand)                                                                    10.11           9.97

    (1) R550 million commitment (will increase to R900 million at final close) into Ethos Mid Market Fund I (B) Partnership
        (“Ethos MMF 1”)
    (2) R134 million commitment into Ethos Fund VI (Jersey), L.P. (“Ethos Fund VI”)

Ethos Capital’s underlying NAV increased to R10.11 per share as at 31 March 2017. This was driven by the
return on Temporary Investments and an increase in the valuations of the underlying portfolio companies
which maintained positive growth in aggregate sales and EBITDA over the reporting period despite difficult
macroeconomic conditions.

As at 31 March 2017, the average EBITDA valuation multiple that was used to determine the enterprise
value of each portfolio company was 6.9x and the average Debt to EBITDA ratio was 2.8x.

Investment activity in the quarter

During the three months to 31 March 2017, Ethos Capital invested R14.5 million and R1.3 million into Ethos
MMF 1 and Ethos Fund VI, respectively. These proceeds were invested into the Twinsaver Group to fund its
acquisition of Validus Medical and the expansion of its production facilities.
Recent Investment activity

Post the quarter-end, Ethos Fund VI completed the acquisition of Little Green Beverages Proprietary
Limited, a bottler and distributor of non-alcohol beverages in South Africa; Ethos Capital’s share of the
investment was R5.5 million.

Both Ethos MMF1 and Ethos Fund VI have a number of new and follow-on transactions in the pipeline. The
Ethos MMF 1 Investment Committee has given final approval for two new investments which would result
in a total direct and indirect investment by Ethos Capital of approximately R325 million. These transactions
are close to completion; however, there can be no certainty that these transactions will be completed.

Furthermore, at the Ethos Capital board meeting in March, the board approved potential direct
investments alongside these Funds of an additional R400 million.

Commitments

At 31 March 2017, Ethos Capital has total commitments of R684 million (38% of NAV) and net invested
capital (including unfunded guarantees) of R382 million (21% of NAV).

Ethos MMF 1 Fund continues to successfully attract investors in its fund raising programme. Ethos Capital’s
commitment to the Fund will increase from R550 million to R900 million on final close, which is anticipated
to be within the next few months.

Ethos Mezzanine Partners Fund 3 was formally launched on 15 November 2016; fund raising is progressing
well and the first close is expected soon. The Ethos Capital commitment to this Fund is intended to be R320
million.



JOHANNESBURG
18 May 2017

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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