Nairobi Securities Exchange PLC · NSEKE:NSE

Nairobi Securities Exchange — Nairobi Stock Exchange — Q4 2005 Earnings Presentation

33 slides from Nairobi Securities Exchange's earnings presentation, Jan 12, 2006

1. Slide 1: Nairobi Stock Exchange 4th Quarter Brief

   Nairobi Stock Exchange 4th Quarter Brief Mr. Chris Mwebesa Chief Executive 12 January 2006 NAIROBI STOCK EXCHANGE

2. Slide 2: Table of Contents

   TABLE OF CONTENTS  Market Performance Overview – Quarter 4 2005 – Full Year 2005 – 2005 Corporate Actions  Market Outlook

3. Slide 3: 4th Quarter Performance Overview - Market Indicators

   4th Quarter Performance Overview - Market Indicators: Mkt. indicator Jul. - Sept. Oct. - % 2005 Dec. Change 2005 NSE 20 Share Index 3,832.69 3,973.04 3.66 Mkt Cap.(Kshs. Bn) 449.79 462.48 2.82 No. of shares 337.33 226.73 -32.79 Traded (Mn) Equity Turnover 11,764.53 12,262.1 4.23 (Kshs.Mn) 1 No. of D

4. Slide 4: 12 Months Market Performance

   12 Months Market Performance Market Indicators - 2004 versus 2005 Mkt. Indicator 2004 2005 % Change NSE 20 Share Index 2,945.5 3,973.04 34.9 8 Mkt Cap.(Kshs. Bn) 314.15 462.48 47.22 No. of shares Traded 625.33 874.20 39.80 (Mn) Equity Turnover 22,323. 36,523.68 63.61 (Kshs.Mn) 70 No. of Deals 124,79

5. Slide 5: Equity Market Performance

   NSE 20-Share Index 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Dec-03 Jan-04 Feb-04 Mar-04 April-04 May-04 Jun-04 Jul-04 Aug-04 10 Sep-04 24-Sep-04 13-Oct-04 Nov-04 Month Dec-04 NSE 20 -Share Index Jan-05 Feb-05 Mar-05 Apr-05 Performance Equity Market May- 05 Jun-05 1 Jul-05 Market Capitalizatio

6. Slide 6: Bond Market Performance Overview Jan – Dec 2005

   Bond Market Performance Overview Jan – Dec 2005 2, 000 1, 800 K s h s . M illio n s 1, 600 1, 400 1, 200 1, 000 800 600 400 200 0 Bonds

7. Slide 7: Corporate Actions in 2005

   CORPORATE ACTIONS IN 2005 Mr. Chris Mwebesa Chief Executive 12 January 2006 NAIROBI STOCK EXCHANGE

8. Slide 8: Corporate Actions – Uchumi Supermarkets

   Corporate Actions – Uchumi Supermarkets Uchumi Supermarkets (the largest supermarket chain in Kenya) Rights Issue to raise Kshs. 1.2 billion:-  Successful trading of Uchumi Supermarkets rights was concluded on 30 September 2005;  Announcement of the results of the rights issue was on 14 October 20

9. Slide 9: Corporate Actions – Uchumi Supermarkets

   Corporate Actions – Uchumi Supermarkets  The key shareholders of Uchumi – ICDCI, ICDC and KWAL Holdings traded a majority of their rights through the Stock Exchange;  Their joint holding in Uchumi was diluted from 51.5% to 23.6%, resulting in a more distributed shareholding; Institution Current Po

10. Slide 10: Corporate Actions – CFC Bank Ltd.

    Corporate Actions – CFC Bank Ltd.  On 23 December 2005, CFC Bank officially listed 12.0 million new shares, arising out of its just successfully completed rights issue.  The rights issue increased the authorized share capital of CFC Bank Ltd., to 156.0 million ordinary shares of Kshs. 5.00.  Amou

11. Slide 11: Corporate Actions – Diamond Trust Bank

    Corporate Actions - Diamond Trust Bank Corporate Action –  Diamond Trust Bank completed a bonus issue of 24,843,750 ord. shares each with a par value of Kshs. 5.00 (Kshs. 124,218,750.00).

12. Slide 12: Corporate Actions – Nation Media Group

    Corporate Actions- Nation Media Group Corporate Action –  Nation Media Group completed a bonus issue of 17,826,315 ord. shares each with a par value of Kshs. 5.00 (Kshs. 89,131,576.00).

13. Slide 13: Corporate Actions – EABL Cross listing on the DSE

    Corporate Actions – EABL Cross listing of EABL on the DSE  On 29 June 2005, East African Breweries Ltd, with a primary listing on the Nairobi Stock Exchange and a secondary listing on the Uganda Securities Exchange, became the second company to be cross listed on all the three East African securiti

14. Slide 14: Corporate Actions – BOC Kenya (Ongoing)

    Corporate Actions BOC Kenya (Ongoing)  On December 1, 2005, BOC Kenya made clear its intention to acquire effective control of Carbacid Investment Company.  Both companies are listed on the Nairobi Stock Exchange.  BOC Kenya made a conditional offer to all the shareholders of Carbacid Investments

15. Slide 15: Corporate Actions – TPS Serena (Ongoing)

    Corporate Actions – TPS Serena (Ongoing)  On 31 March 2005 TPS Holdings Ltd. (TPSH), announced that it had applied to the CMA for approval of the proposed acquisition by way of share exchange offer of up to 9,025,100 ordinary shares of Kshs. 5.00 each in Tourism Promotion Services Ltd (TPSL) not al

16. Slide 16: Debt

    DEBT Mr. Chris Mwebesa Chief Executive 12 January 2006 NAIROBI STOCK EXCHANGE

17. Slide 17: Corporate Actions – Faulu Kenya Ltd.

    Corporate Actions – Faulu Kenya Ltd. Issue Size Ksh 500,000,000 Issuer’s Credit Credit enhancement will be Rating provided by AFD for the tenor of the issue, in the form of a standby letter of credit covering 75% of the aggregate of any unpaid principal and interest (except default interest) due an

18. Slide 18: Corporate Actions – Faulu Kenya

    Corporate Actions – Faulu Kenya Interest Floating rate based on the 91 day Treasury Bill rate Interest Quarterly payments Margin 50 bps (0.5%) Listing Nairobi Stock Exchange

19. Slide 19: Corporate Actions – Celtel Kenya Ltd.

    Corporate Actions – Celtel Kenya Ltd. Issued December 8 Amount: Ksh 4,500,000,000 2005 Issuer’s Credit 75% guaranteed by FMO. The Rating Guarantee covers all credit risks during the lifetime of the issue, including political risks, is irrevocable and unconditional, and will cover investors irrespect

20. Slide 20: Corporate Actions – Celtel Kenya Ltd.

    Corporate Actions – Celtel Kenya Ltd. Interest Floating rate based on the 91 day Treasury Bill rate Interest Quarterly payments Margin 125 bps (1.25%) Listing Nairobi Stock Exchange

21. Slide 21: Corporate Actions – Shelter Afrique

    Corporate Actions – Shelter Afrique Approved by the CMA Amount: Ksh 500,000,000 and the NSE on Dec 2 2005 Coupon Fixed/Floating Maturity 3 years First Tranche Floating rate, priced at a Kshs. 200.00 million premium above the 91-Day GoK T bill rate). Issue expected in January 2006. Second Tranche Fix

22. Slide 22: Corporate Actions – Athi River Mining

    Corporate Actions – Athi River Mining The Athi River Mining Medium Term Note is a first because of the following reasons:-  First credit rated corporate bond;  First purely corporate, unsecured bond;  The NSE will work with the Capital Markets Authority and market players to facilitate the issuan

23. Slide 23: Corporate Actions – Athi River Mining

    Corporate Actions – Athi River Mining Issue on October Amount: Ksh 800,000,000 27 2005 Issuer’s Credit A (Long Term) Rating Final Repayment 27 October 2010 Date Purpose Capital expenditure (Clinker Plant) and repayments Interest Floating rate based on the 91 day Treasury Bill rate Interest Quarterly

24. Slide 24: Corporate Actions – PTA Bank

    Corporate Actions – PTA Bank Amount: Ksh 800,000,000 Maturity 7 years Purpose Project finance Interest Floating rate based on the 91 day Treasury Bill rate Interest Quarterly payments Margin 100 bps (1.00%) Listing Nairobi Stock Exchange

25. Slide 25: Total Capital Raised

    Total Capital Raised Equity  Kshs. 1.769 billion Debt  18 Government of Kenya treasury bonds with a face value of Kshs. 74.80 billion;  Corporate bonds with a face value of Kshs. 5.8 billion; Total Amount  Kshs. 82.369 billion indicates increased absorption capacity of our market

26. Slide 26: Other Issues in the Pipeline

    Other Issues in the Pipeline The Main Investment Market Segment (MIMS)  Introduction of Equity Commercial Bank issued shares;  30% of Kenya Electricity Generating Company (KENGEN); The Fixed Income Securities Market Segment (FISMS)  EADB second tranche of Kshs. 700.00 million bond;

27. Slide 27: Outlook for Economy

    Outlook for Economy NAIROBI STOCK EXCHANGE

28. Slide 28: Economic Assumptions

    Economic Assumptions Factors that will affect NSE’s performance Macro Assumptions GDP Growth • Because of the drought, we expect GDP to remain within our base case scenario of 4.5- 5.5% in 2006, instead of expanding to 6% in 2006. • This should still result in improved corporate earnings

29. Slide 29: 12 Month Inflationary Trends

    1 2 -m o n th in fla tio n 0 2 4 6 8 10 12 14 16 18 J an-05 F eb-05 M ar-05 A pr-05 M ay -05 J un-05 Month J ul-05 Trends Underlying A ug-05 S ept-05 O c t-05 12 Month Inflationary Overall N ov -05 D ec -05

30. Slide 30: Economic Assumptions

    Economic Assumptions Inflation • Overall inflation closed the year at 6.0%; • The average for the year was 10.3%; • Headline inflation will trend upwards to about 12% in 2006, as the famine begins to bite. The risk is to the upside depending on further increases in energy prices

31. Slide 31: Interest Rate Trends

    Interest ( %) 0 1 2 3 4 5 6 7 8 9 10 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Month Feb-05 91Day TBill Mar-05 Apr-05 May-05 Jun-05 Jul-05 Average Monthly Aug-05 182 Day TBill Interest Rate Trends Sept-05 2004 – End Dec 2005 Oct-05 Nov-05 Dec-05

32. Slide 32: Economic Assumptions

    Economic Assumptions Interest Rates • The 91-day TBill rate closed at 8.14% on 26/12; • The annual average interest rate on the 91-day TBill for 2005 was 8.44%. • Short term interest rates will stabilise at around 7 – 9% for the following reasons:- • Reduced government borrowing as a result of highe

33. Slide 33: End

    E LTD. ANG 3 @ & = Zz NAIROBI STOCK EXCHANGE

Nairobi Stock Exchange — Q4 2005 Earnings Presentation on 6ix