Our Journey and the Future to 2030

DNA of Arise

Arise into the Future

Our Journey

Successes and Highlights

The Story of AriseThe start of our journey

Arise Key Milestones

September – NovemberNorfund, Rabobank and FMO combine forces - The concept of Arise is born

SeptemberFirst close signing Supervisory Board in place

DecemberInitiate share transfers

2015 2016

Arise Key Milestones (cont)

JanuaryArise becomes operational

Recruitment drive commences

FebruaryArise official launch

MarchShare transfer project team in place

JulyAsset Management Board in place

February 2017- February 2018New Transactions and Investment Pipeline Development

2017 2018

Arise is supported by strong and established shareholders

100% 27%

33.1%

25% 48%

25%

Rabo Development

14.9%

49.8%

NorFinance

Kommunal Pensionfund (KLP)

Solbakken

Arise’s Offices

Cape Town, South Africa

Amsterdam, Netherlands

Arise’s Investment Portfolio

12%

35%

59%

28%

46%

18%

Zambia

Zimbabwe

Mozambique

Tanzania

Uganda

Democratic Republic of

Congo

South SudanGhana

Kenya

36%

15%

52%

The DNA of Arise What makes us unique

Vision

Contribute to the economic growth in Sub-Saharan Africa and the prosperity of its people by increasing financial inclusion and employment, strengthening rural development and alleviating poverty

Our DNA What sets us apart from DFI’s, Private Equity & Asset Managers

- Long term stable capital to support growth- Economic cyclicality- No exit pressures - Catalyst for long term capital

Capital - Extensive industry knowledge to assist FSPs on their growth trajectory- Established shareholder networks that FSPs can tap into- Grow local FSPs to the same level as international best practice- Value creation through knowledge sharing

Expertise

Responsible investment philosophy for 2030- Arise does not only seek financial returns - social impact is an integral part

of our investment decisions - Arise advocates to be adaptive and keep an open mind on change and the

impact of technology- We believe that investees and their ecosystems demand more meaningful

engagement from shareholders

Influence

One Year OnSuccesses and highlights

Organisational Highlights

• Fully operational company with strategic staff in place

• Great brand awareness on the continent

• A unique Arise Business Plan blueprint that caters for expansion, diversification and change

• Completion of share transfers

Investment Highlights

• Cal Bank • dfcu Highlights • Investment Pipeline Development• Possible Investment Exits• Collaborative Partnerships

Arise into the Future“Banking is necessary, banks are not” - Bill Gates

Evolution of banking

Digital 1.0 Digital 2.0Traditional Banking

Traditional branch network Multi channel

Mobile & online banking

Multi channel integration

Digital 3.0 Digital 4.0

360˚customer view Digital transformation

Cross channel collaboration

The world is changing…. Adapt or be left behind

Big dataCloud based storage & services

Internet of things

Social media

Blockchain

Under Threat: Financial institution’s value chain

Payments

Deposits & lending

Investment management

Market provisioning

Capitalraising

Cashless world, crypto

currencies, P2P, mobile money

Alternative lending, P2P, specialised products, third

party API’s

Automated advice, social trading, cloud

computing & storage, open source IT

Crowdfunding, smart contracts,

virtual exchanges

Big data & analytics, artificial intelligence,

market platforms, automation

2018 & beyond

Financial institutions will be faced with multiple challenges and opportunities such as regulations, legacy systems, disruptive models and technologies, new competitors and a restive customer base

What Will the future look like?

Future Customer Profile?

Customer Centricity

Society focused- Digitally empowered- Less reliant on cash- Remote banking

Amenable

Convenience driven

Customer experience

focussed

Social media influenced

Future of Technology

Technology is only part of the solution, the core objective for most financial institutions is to achieve organisational agility:

Manage talent and partnerships• Artificial Intelligence

(AI) & changing skills requirements

• Key partnerships to customise and deliver solutions for customers

• Role of Fintechs and externalisation

Embrace innovation • Open banking

revolution

• Blockchain, cryptocurrencies & smart contracts

Money itself is not enough: Financial institutions should ask themselves 3 important questions:

How can they best manage technology to deliver the most impact for their business?

What is the right level and type of technology externalisation?

How do they direct development resources towards activities that create competitive differentiation and maximise value?

Future of Technology (continued)

Embrace innovation: The Open Banking Revolution

‘Closed’ Banking

Customers Bank

Customer, client, bank product data

‘Open’ Banking

Bank

Price comparison websites

Customer, client, bank product data

Customers Third-party providers

Embrace innovation: Blockchain, cryptocurrencies & smart contracts

how will blockchain impact the future of financial institutions?Use of digital currencies?Use of smart contracts?Elimination of intermediaries?Faster transactions?Increased transparency and security?

Shifting risk paradigm

CYBER SECURITY

SUSTAINABILITY

REGULATIONAGILITY

RELEVANCE

TRANSPARENCYGOVERNANCE

COMPETITION

PRIVACYDATA PROTECTION

AUTOMATION

AI

TALENT RECRUITMENT

PUBLIC PERCEPTION

ACCESS

SOCIAL

LACK OF DIVERSITY

ENVIRONMENTAL

CAPITALDIGITAL IDENTITY

KYC

SOCIAL MEDIA

INEQUALITY

BRANCHES

Linear based governance

Shareholders

Current linear governance structure

Board

Transparency com

promised

Management

• Inherent deficiencies in the current governance framework

•How many more hidden scandals?

Relationship based governance

Future relationship based governance structure

Change is inevitable... • Evolve and adapt to changing environments

within a responsible & sustainable stakeholder framework

• Promote and prevent

• New relationship based model is required

Shareholders

Board

Management

full transparency

• Efficient, resilient, and accountable governance systems are essential for sustainable & responsible development

• Transparent, diverse, and accesible leadership is paramount for longevity and success

Future Stakeholders’ continued collaboration

Regulators

Civil society

Strategic partners

Employees

Government

Shareholders

Seven Elements of Strategic Transformation

Embrace Digital

Strategic transformation

Strengthen & secure

Champion open banking ecosystems

Grow & expand

Simplify

Unlock data

• Leader or a follower?

• Fail fast and learn quickly

• Adapt risk strategies accordingly• Collaboration

& co-creation

• Scale capacity• Inorganic growth

• Automate & streamline

• Smart outsourcing• Simplify products

• Artificial intelligence• Robotics

• Big data & analytics

Reimagine the client

• Client centricity is key

• How to better serve future clients

What will Arise look like in 2030?

Role enhancement Although the face and character of Arise may change, we will continue to strive to:

• Be more than a traditional investor• Be a strategic & flexible investor• Provide credibility and support • Promote good corporate governance, transparency and

accountability • Transform & leverage new technologies• Suitably skilled with bank development and investment

teams in place• Operate efficiently within the regulatory framework of

the future

Broader investment mandate

• New geographic locations?

• New sectors?

• Alternative funding mechanisms?

• Minority vs majority equity stakes?

• New themes & priorities underpinning Africa’s prosperity?

What will Arise look like in 2030? (continued)

Diversified ShareholdersWill they change?

• Other institutions & corporates?

• Government?

• Fintechs?

• DFIs?

• Listed?

• Employees?

What will Arise look like in 2030? (continued)

Strategic Priorities 2030

Short term organisational objectives

Diversify and Grow

A skill bank of experts

Strengthen current relationships

Strategic Priorities 2030 (continued)

Future Organisational Objectives

Contribute to a new way of investing, governing and liaising with investees in the network/system they operate in

Evolve in the business and technology ecosystem

Conclusion

Despite the many challenges ahead, Arise is excited to be a part of this journey and the development of financial institutions of the future.

We are confident that we will be able to realise our objectives in this transformation and assist our partners and investees with their business

journeys into 2030.

Enjoy the next two days of meaningful engagement with some of the continent’s leading trend setters and thought leaders.