SENS: EPE CAPITAL PARTNERS LIMITED – Results for year ended 30 June 2019

EPE CAPITAL PARTNERS LTD ("ETHOS CAPITAL" OR "THE COMPANY")

26 SEP 2019

EPE CAPITAL PARTNERS LTD (“ETHOS CAPITAL” OR “THE COMPANY”)
INCORPORATED IN THE REPUBLIC OF MAURITIUS
REGISTRATION NUMBER: C138883 C1/GBL
ISIN: MU0522S00005
SHARE CODE: EPE

SENS pdf download

RESULTS FOR the YEAR ENDED 30 JUNE 2019,
AVAILABILITY OF AUDITED AFS,
NOTICE OF AGM AND
B-BBEE COMPLIANCE REPORT

INTRODUCTION

EPE Capital Partners Ltd is an investment holding company, registered and incorporated in Mauritius as a public company. It is listed on the Johannesburg Stock Exchange (“JSE”) and offers
shareholders long-term capital appreciation by making commitments and investments into Funds or Direct Investments that are managed by Ethos Private Equity (Pty) Limited (“Ethos”),
providing the Company with largely indirect exposure to a diversified portfolio of unlisted private equity type investments (“Portfolio Companies”). The Group refers to the consolidated
results of the Company and its subsidiary.

THE ADVISOR: ETHOS

Ethos acts as Ethos Capital’s Investment Advisor. In addition, Ethos is the Manager of the Funds that Ethos Capital invests in. Ethos is an investment firm that manages investments in
private equity and mezzanine transactions in South Africa and other sub-Saharan African countries. Ethos has a 35-year history and an unparalleled record of successful, sustainable
investing across economic and political cycles that has delivered 96 realised investments at a 36% gross IRR and a 2.7x multiple of cost.

RESULTS ANNOUNCEMENT

Key highlights

– Total assets increased to R1.9 billion and the NAVPS to R11.34 at 30 June 2019.
– R0.7 billion invested during the year in 5 new Portfolio Companies.
– At 30 June 2019, invested capital increased to R1.4 billion or 74% of total assets;
will increase to R1.6 billion and 82% respectively post the imminent completion of a further transaction.
– Exposure to 19 Portfolio Companies with a value-weighted average age of 1.5 years

Overview

Ethos Capital ended the year with total assets of R1.9 billion and increased its NAVPS to R11.34. This represents the 12th successive quarter since listing that the Group has increased
its NAVPS although the increase during the year was muted largely as a result of the macroeconomic headwinds and the fact that Ethos Capital invested c. 50% (R0.7bn) of its invested
capital during the year. Ethos had a very active year on the investment front acquiring or investing in seven assets.

Ethos Capital increased its invested capital to R1.4 billion or 74% of total assets as at year-end and a further transaction is due to complete imminently that will increase the invested
capital to R1.6 billion (82% of total assets). The Group currently has indirect exposure to 19 Portfolio Companies, operating in a number of industries/sectors and geographies, that are
managed by a Manager with strong sector expertise, domain knowledge and with Value Add abilities. Given the uncertain economic outlook, Ethos has focused much of its efforts on improving
the fundamentals and outlook for its Portfolio Companies through financial and operational restructuring and positioning these businesses to benefit from an improved macroeconomic
outlook.

Many of the Portfolio Companies are at the early stages of their investment cycle (average holding-period of 1.5 years) and the portfolio is valued at 6.9x EBITDA. The Company has also
invested in some exciting non-South African business which are showing good growth and all the Portfolio Companies continue to benefit from Ethos’ transformational interventions which
should deliver strong growth in the coming years.

FINANCIAL POSITION AND INVESTMENT PORTFOLIO

EXTRACT OF STATEMENT OF FINANCIAL POSITION
Group Company
30 June 2019 30 June 2018 30 June 2019 30 June 2018
R’million R’million R’million R’million
ASSETS
Non-current assets
Unlisted investments at fair value 1,427.3 711.9 1,427.3 711.9
Current assets 501.3 1,202.9 500.8 1,202.4
Trade and other receivables 16.7 1.0 16.7 1.0
Money market investments at fair value 481.0 1,188.5 481.0 1,188.5
Cash and cash equivalents 3.6 13.4 3.1 12.9
TOTAL ASSETS 1,928.6 1,914.8 1,928.1 1,914.3

EQUITY AND LIABILITIES
Total Ordinary shareholders’ equity 1,785.5 1,772.8 1,920.5 1,907.8
Non-current liabilities 135.5 135.5 – –
Current liabilities 7.6 6.5 7.6 6.5
Total Liabilities 143.1 142.0 7.6 6.5
TOTAL EQUITY AND LIABILITIES 1,928.6 1,914.8 1,928.1 1,914.3

NET ASSET VALUE 1,785.5 1,772.8 1,920.5 1,907.8
Basic Net Asset Value per share (Rand) 11.34 11.00 11.23 10.93
Attributable shares in issue (‘000) 157,500 161,100 171,000 174,600

INVESTMENT PORTFOLIO – AT 30 JUNE 2019
Commitment Valuation
Name R’million R’million % of NAV
Primary/Secondary Investments
Ethos Mid Market Fund I 950.0 492.0 25.5
Ethos Fund VII 1,250.0 278.7 14.4
Ethos Ai Fund I 150.0 95.1 4.9
Ethos Fund VI 142.0 92.1 4.8
Ethos Healthcare Platform 48.0 44.7 2.3
Ethos Mezzanine Partners 3 250.0 41.7 2.2
Co-Investments
Primedia Group (Pty) Ltd 171.0 182.4 9.5
Kevro Holdings (Pty) Ltd 100.0 107.0 5.5
Channel Vas Investments Ltd BVI 100.0 93.6 4.9
3,161.0 1,427.3 74.0



TOP 10 UNDERLYING PORTFOLIO COMPANIES – AT 30 JUNE 2019 % of
Total
Name Business description Year* assets
Channel Vas FinTech service provider 2018 21.1
Kevro Corporate clothing and gifting 2017 10.5
Primedia Media 2017 8.5
Synerlytic Specialised analytical and testing services 2019 5.5
Gammatek TMT accessory distribution 2018 5.1
Twinsaver Manufacturing (FMCG) 2015 3.8
Vertice MedTech 2018 3.1
Tymebank Banking 2019 2.4
Chibuku Brewing and distribution 2018 2.2
MTN Zakhele Futhi Telecommunications 2017 2.1
64.3
Other (9 Portfolio Companies) 9.7
Total underlying investments 74.0
* Initial acquisition date by Ethos Fund

RESPONSIBILITY STATEMENT

This short-form announcement is the responsibility of the Directors of Ethos Capital and is only a summary of the information in the full announcement and does not contain full or complete
details. The announcement is itself not audited but extracted from audited results. Any investment decision should be based on the full announcement which is available from today at:

https://protect-za.mimecast.com/s/zw9KCP1JXDHNmg1tBZgD6?domain=senspdf.jse.co.za

and is published on the Company’s website at:

https://protect-za.mimecast.com/s/t9QCCQ1LZEHlqV1CQFSNO?domain=ethoscapital.mu

Copies of the full announcement may also be requested from the Company Secretary (represented by Mr Ravi Cunnoosamy) at no charge at +230 (0) 403 6000, during office hours, or at
ethoscapital@ocorian.com.

PRESENTATION

Ethos Capital will host a webcast presentation at 10h00 am on Thursday 26 September 2019 covering the results relating to the year ended 30 June 2019, and outlook. A copy of the
presentation is available for download on the Company’s website at https://protect-za.mimecast.com/s/sEeuCRgB2GS0lYDFXXgUx?domain=ethoscapital.mu

Participants should please register for the webcast in advance by navigating to this website:

https://protect-za.mimecast.com/s/FcxVCVmZgMukKBnuMiNz6?domain=themediaframe.net

AVAILABILITY OF ANNUAL FINANCIAL STATEMENTS

The Annual Financial Statements for the year ended 30 June 2019, the Integrated Annual Report and the Notice of Annual General Meeting have been published on the Company’s website and the
document is available at https://protect-za.mimecast.com/s/t9QCCQ1LZEHlqV1CQFSNO?domain=ethoscapital.mu or can be obtained or requested from the Company’s registered office.

The Integrated Annual Report, Annual Financial Statements and the Notice of the Annual General Meeting will be distributed on 22 October 2019.

NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the Annual General Meeting of Ethos Capital shareholders will be held at RMB, Portside Building, 5 Buitengracht Street, Cape Town, on 19 November 2019 at 14h00,
to transact the business as stated in the Annual General Meeting Notice forming part of the Integrated Annual Report and Annual Financial Statements.

Salient dates
2019
Record date to determine which shareholders are entitled to receive the notice of annual general meeting Friday 11 October
Last day to trade in order to be eligible to attend and vote at the annual general meeting Tuesday 5 November
Record date to determine which shareholders are entitled to attend and vote at the annual general meeting Friday 8 November
Forms of proxy for the annual general meeting to be lodged by 14h00 on*, for administrative purposes Friday 15 November

*any proxies not lodged by this time must be handed to the chairperson of the Annual General Meeting immediately prior to such proxy exercising his/her right to vote at the Annual General
Meeting.

AVAILABILITY OF B-BBEE COMPLIANCE REPORT

Shareholders are advised that the annual compliance report in terms of Section 13G(2) of the Broad-Based Black Economic Empowerment Amendment Act No.46 of 2013, is available on the
Company’s website at:

https://protect-za.mimecast.com/s/I7-8CWnBkNfXY3LTrfklI?domain=ethoscapital.mu

CORPORATE INFORMATION

Directors
Yvonne Stillhart (Chairperson)
Derek Prout-Jones
Kevin Allagapen
Michael Pfaff
Yuvraj Juwaheer

Senior Advisors (Officers)
Jean-Pierre van Onselen (CFO)
Peter Hayward-Butt (CEO)

Investment Advisor
Ethos Private Equity (Pty) Limited
35 Fricker Road
Illovo
Johannesburg, 2196

Company Secretary and Registered Office
Ocorian
6th Floor, Tower A,
1 Cybercity
Ebene
Mauritius

Auditors
Deloitte & Touche
Level 7, Standard Chartered Tower
19 Cybercity
Ebene
Mauritius

Deloitte & Touche
20 Woodlands Drive
Woodmead
Sandton
Johannesburg, 2196

Listing
JSE Limited
Abbreviated name: ETHOSCAP
JSE code: EPE
Sector: Financials – Speciality Finance

Transfer Secretary
Computershare Investor Services Proprietary Limited
70 Marshall Street
Johannesburg, 2001

Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
1 Merchant Place
Cnr Fredman Drive & Rivonia RoadSandton, 2196

Disclaimer
The financial information in this announcement is itself not audited, but is extracted from the audited Annual Financial Statements
Ebene, Mauritius (with simultaneous circulation in Johannesburg)
26 September 2019

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

1 Merchant Place Cnr Fredman Drive and Rivonia Roads Sandton Johannesburg 2196

DATE:

26-09-2019

SPONSOR:

Rand Merchant Bank (A division of FirstRand Bank Limited)