ANCHOR GROUP PRESENTATION

RESULTS FOR 6 MONTHS

30 JUNE 2019

ANCHOR GROUP

20

12

CO

MP

AN

Y

FO

UN

DE

D ― AN EXPERIENCED, HIGH QUALITY INVESTMENT TEAM ―

35+ 18 17INVESTMENT PROFESSIONALS

CHARTERED ACCOUNTANTS

CFA CHARTER-HOLDERS & DELEGATES

UNIT TRUSTS

HEDGE FUNDS

SEGREGATED MANDATES

COMPLETE LOCAL AND OFFSHORE PRODUCT AND SERVICE OFFERING

INTERNATIONAL FOOTPRINT

SOUTH AFRICA MAURITIUS LONDON

R54bnASSETS UNDERMANAGEMENT AND ADVICE

230+ STAFF ACROSS GROUP

LISTED ON THE JSE IN SEPTEMBER 2014

DEDICATED ASSET MANAGEMENT BUSINESS:

ANCHOR GROUP

ANCHOR ASSET MANAGEMENT

ANCHOR PRIVATE CLIENTS

STOCKBROKING

ANCHOR IS AN ENTREPRENEURIAL

WEALTH AND ASSET

MANAGEMENT BUSINESS

with an absolute focus on the two most important parts of our business

We offer a broad range of local and global investment solutions to individuals, financial advisors and institutions.

CLIENTS

INVESTMENT PROCESS

PAGE 2

GROUP STRUCTURE

PAGE 3

ASSETMANAGEMENT

PRIVATECLIENTS

STOCKBROKING

• 13% increase in AUM, 7% increase in AUA

• R5.4bn growth in assets a combination of:

• Increase in market

• Over R600m per month of new inflows

• Termination of Astoria investment management

contract (R2bn)

• Projected R60bn+ by year end (assuming reasonable

markets)

PAGE 4

GROWTH IN ASSETS UNDER MANAGEMENT

0

10

20

30

40

50

60

1H

20

12

2H

20

12

1H

20

13

2H

20

13

1H

20

14

2H

20

14

1H

20

15

2H

20

15

1H

20

16

2H

20

16

1H

20

17

2H

20

17

1H

20

18

2H

20

18

1H

20

19

Anchor Group Assets Under Management and Administration (R’bn)

R’bnYTD YTD June Dec

growth (%) growth (R’bn) 2019 2018

Assets Under Management 13% 4.4 38.3 33.9

Assets Under Advice 7% 1.0 16.1 15.1

Total 11% 5.4 54.4 49.0

WHERE ARE WE NOW?

• Core asset management earnings roughly flat, with 14%

AHEPS decline primarily due to:

• Lower brokerage revenues

• Loss of Astoria income

• Core asset management revenues a function of:

• Strong inflows

• Bias towards lower margin products

• Average local market levels down 7%

• Astoria termination income statement (AHEPS) negative (+/-

12%), but adds R70m cash to balance sheet – we now have

R172m of cash and investments and need to find ways to

deploy this

PAGE 5

PAGE 6

FINANCIAL HIGHLIGHTSOF 1H 2019

• AUM and AUA increased by R5.4bn, up 11% on 31 December 2018,

net of Astoria outflow of AUM of c. R2bn

• Turnover up 13% to R269 million on 1H 2018

• Business generated R120 million of cash at operating level; > 100%

of operating profit

• Operating margin, excluding Astoria termination fee, of 19%, down

26% on 1H 2018 due to:

• Negative jaws effect

• Lower activity levels resulting in lower brokerage revenue

• Lower margin product mix: fixed income versus equities

• Cash and cash equivalents and short-term investments balance of

R172m (R144m at 31 December 2018).

• Adjusted Headline Earnings down 11% on 1H 2018 to R36.8m

• Adjusted HEPS of 18c, down 14% on 1H 2018, up 5% on 2H 2018

• Interim dividend of 9c (10.5c for 1H 2018)

PAGE 7

EVENTS AND MILESTONES

• Further diversified revenue streams

• Private Clients running smoothly and consistently gaining assets – over

R300m per month

• Asset Management secured first big mandates

• Numerous blue chip institutional clients

• Equity fund now has five year track record. Since inception: 11.5%

p.a. vs 6.8% p.a. for peer group (source: Moneymate)

• Grew fixed income meaningfully

• Made significant headway with IT systems

• Purchased 100% of Erudite

• Astoria terminated Anchor Mauritius Investment Management

Agreement, with a fee of US$4.96m (R70m)

MARKET BACKDROP SINCE JAN 2018

• Directionless markets

• 1H avg. -7% for local

market

• 1H avg. for global

markets

JSE Capped SWIX and MSCI World Index

PAGE 8

ONE OF THE WORST 4 YEAR EQUITY MARKET RETURNS ON RECORD

PAGE 9

FTSE/JSE Africa All Share Index – TRWeekly 19 December 1999 – 10 February 2019

GLOBAL HIGH STREET EQUITY ANCHOR BCI EQUITY FUND

Source: MorningstarSource: Bloomberg

DEVELOPING A STRONG TRACK RECORD

PAGE 10

100

120

140

160

180

200

220

Jun 2

01

2

Dec

20

12

Jun 2

01

3

Dec

20

13

Jun 2

01

4

Dec

20

14

Jun 2

01

5

Dec

20

15

Jun 2

01

6

Dec

20

16

Jun 2

01

7

Dec

20

17

Jun 2

01

8

Dec

20

18

Jun 2

01

9

Gro

wth

of

R1

00

invest

ment

(cum

ula

tive

)

Model portfolio vs benchmark since inception

Global High Street Equity Benchmark

100

120

140

160

180

200

Apr

20

13

Sep 2

01

3

Feb 2

01

4

Jul 2

01

4

Dec

20

14

May

20

15

Oct

20

15

Mar

20

16

Aug

20

16

Jan 2

01

7

Jun 2

01

7

No

v 2

01

7

Apr

20

18

Sep 2

01

8

Feb 2

01

9

Gro

wth

of

R1

00

invest

ment

(cum

ula

tive

)

Model portfolio vs benchmark since inception

Anchor BCI Equity Fund (A) Benchmark

DEVELOPING A STRONG TRACK RECORD

PAGE 11

Description BenchmarkInception

date

Return since inception 1-year return

Fund BenchmarkAnnualised difference Fund Benchmark Difference

Anchor BCI Equity Fund FTSE/JSE Capped SWIX - J433T 2013/04/05 97.91% 64.32% 3.27% 1.59% 1.11% 0.48%

Anchor BCI Flexible Income Fund

STEFI Call +1% 2015/05/31 36.81% 34.93% 0.37% 9.85% 7.56% 2.29%

Anchor BCI Managed Fund

ASISA SA Multi Asset High Equity 2015/02/02 20.29% 21.48% -0.23% 3.41% 3.23% 0.18%

Anchor BCI Worldwide Flexible Fund

SA CPI + 4% 2013/05/14 92.25% 71.08% 2.10% 6.38% 8.48% -2.10%

Global Balanced Fund60% MSCI World/40% Bloomberg Barclays GABI (USD)

2012/07/01 101.85% 61.16% 3.50% 10.27% 6.51% 3.77%

Global Balanced Fund60% MSCI World/40% Bloomberg Barclays GABI (ZAR)

2012/07/01 247.46% 179.47% 3.66% 13.38% 9.94% 3.43%

Global High Street Equity MSCI World Index TR- GDDUWI - USD 2012/07/01 127.95% 110.62% 1.26% 12.61% 6.94% 5.67%

Global High Street Equity MSCI World Index TR- GDDUWI - ZAR 2012/07/01 291.53% 262.90% 1.31% 15.77% 9.67% 6.10%

PRODUCT OFFERING RISK / RETURN MATRIX

ASPIRANT

PREFERRED PROPERTY

STABLE FUND

AFRICA BOND

BOND

DIVERSIFIED STABLE

PROPERTY

MANAGED

WORLDWIDE FLEXIBLE

PROPERTY L/S H/F

LONG/SHORT H/F

FLEXIBLE INCOME

DIVERSIFIED GROWTH

ANCHOR EQUITY

ACCELERATED H/F

GLOBAL EQUITY

HIGH STREET EQUITY

DIVIDEND FIELD

GROWING YIELD

BEE

LOCAL SEG OFFSHORE SEG LOCAL CIS OFFSHORE CIS

HIGHMEDIUMLOW

LO

WM

ED

IUM

HIG

H

RETURN

RIS

K BALANCED

DIVERSIFIED MOD

PAGE 12

• Turnover boosted by R70m Astoria inflow

• 2019 characterised by:

• No performance fees

• Hedge fund business decline

• Low trading volumes

• BUT, core business healthy, performance solid, clients

retained and new inflows consistent

• Well positioned for upturn, but adapting to tough

markets

• Strong flows into income and offshore products

• Gaining clients, but investor base very conservative

INCOME STATEMENT

PAGE 13

6.2

33

82

220

419

476466 466

-1 523

86

115

74 76 74

-10

90

190

290

390

490

2012 2013 2014 2015 2016 2017 2018 1H2019annualised

Revenue Adjusted headline earnings

Income statement progression (R’m)

PAGE 14

Unaudited Unaudited Audited

Figures in R'000 % change 30-Jun-19 30-Jun-18 31-Dec-18

Revenue 13% 268,685 238,220 463,727

Operating Expenses -8% -159,948 -174,777 -360,150

Operating profit 71% 108,737 63,443 103,577

Other Income 13% 11,691 10,376 17,077

Non-cash entries - -225,627 2,955

Finance Costs -37% -898 -1,419 -2,073

Share of profits/ (losses) from associates 147% 613 -1,310 -104

Profit before taxation 178% 120,143 -154,537 121,432

Taxation expense -32% -13,858 -20,248 -33,560

Profit from continuing operations 161% 106,285 -174,785 87,872

Discontinued operations

Loss on discontinued operations net of tax - - -298,977

(Loss) / Proft for the period 161% 106,285 -174,785 -211,105

Items that may be reclassified to profit or loss:

Other Comprehensive Income -2628% -4,221 -167 2,132

Total Comprehensive Income 158% 102,064 -174,952 -208,973

Total comprehensive income attributable to:

Owners of the parent 149% 92,572 -189,464 -234,035

Non-controlling interest -35% 9,492 14,512 25,062

158% 102,064 -174,952 -208,973

Adjusted headline earnings per share (cents) -14% 18.0 21.0 38.4

Diluted adjusted headline earnings per share (cents) -14% 17.9 21.0 38.0

Headline earnings attributable to ordinary shareholders 166% 96,793 36,330 58,674

Adjusted headline earnings attributable to ordinary shareholders -11% 36,803 41,504 76,593

Comparability year on year affected by:

• Non-consolidation of Anchor Stockbroking

• Astoria mandate terminated in 2019 -R70.4m once-off revenue

Like-for-like comparison:

• Revenue down 7%

• Operating expenses up 7%

Adjusted HEPS of 18c (down 14%)

INCOMESTATEMENT

• Net asset value of 457 cents per share

• Cash and short-term investments of

R172m; 82 cents per share

PAGE 15

BALANCE SHEETFigures in R'000 % Change

Unaudited30 Jun 19

Unaudited30 Jun 18

Audited31 Dec 18

AssetsNon-Current AssetsEquipment -13% 5,534 6,364 6,045 Goodwill -1% 589,990 592,991 589,990 Intangible assets 24% 112,288 90,697 85,161 Investments in associates -32% 71,463 105,193 72,804 Other financial assets 35% 23,175 17,132 21,675 Deferred tax 26% 8,073 6,421 7,015

-1% 810,523 818,798 782,690 Current AssetsCash and cash equivalents 63% 113,619 69,509 66,204 Other financial assets -41% 59,004 100,670 77,709 Current tax receivable 8% 2,190 2,029 2,338Trade and other receivables -22% 55,037 70,856 49,682 Amounts receivable on stockbroking activities -100% - 378,058 -

-63% 229,850 621,122 195,933 Total Assets -28% 1,040,373 1,439,920 978,623 Equity and LiabilitiesEquityShare capital 4% 972,832 938,096 961,332 Reserves -19% 4,612 5,712 5,020

Retained income -54%-

38,688 -

25,197 -114,991

Equity Attributable to Equity Holders of Parent 2% 938,756 918,611 851,361 Non-controlling interest -38% 17,206 27,866 18,585 Total Equity 1% 955,962 946,477 869,946 Liabilities Non Current LiabilitiesOther financial liabilities -74% 10,800 41,369 20,844 Deferred Tax 5% 24,391 23,327 21,817

-46% 35,191 64,696 42,661 Liabilities Current LiabilitiesOther financial liabilities -50% 18,508 37,094 35,791 Trade and other payables 202% 27,270 9,028 25,956 Current tax payable -36% 3,442 5,338 4,269 Amounts payable on stockbroking activities n.m - 377,287 -

-89% 49,220 428,747 66,016 Total Liabilities -83% 84,411 493,443 108,677 Total Equity and Liabilities -28% 1,040,373 1,439,920 978,623 Net asset value per share (cents) -4% 457 475 422 Net tangible asset value per share (cents) -8% 121 132 94

OTHER BUSINESS PARTNERS

PAGE 16

• Purchased 66% of RCI in June 2015

• 92% for 2019

• High quality family office business

• Delivered on expectations

• Purchased 50% of The Portfolio Bureau in November 2015

• Quality business and big player in Cape Town

• Materially exceeded budgets since acquisitions

• UK closed down, purchased 100% of SA

• Hedge fund industry under pressure

• 50%-owned

• Business solid in subdued market, strong fund

performances in 2018

• Growing bond trading and stock lending businesses

GROWTH DRIVERS IN 2019

• Market moves (across asset classes, including

currency moves)

• Targeting over R7bn new assets in 2019

(pipeline at highest level ever)

• Focussing on margin from increased scale

(assuming reasonable markets)

• Increased stake in associates/subsidiaries

• Bolt-on acquisitions/partnerships

• Network initiative with professional services

firms (material impact in 2020)

• Targeting higher trading volumes, with new

institutional clients signed on

• Higher return on balance sheet assets

PAGE 17

PAGE 18

TAKING STOCK…WHAT THE FUTURE HOLDS

• We are well on track to build the dream the founders had 7

years ago

• We have a high quality, motivated 250+ team that continues

to build trust with clients

• Average new assets of +/-R5bn per year for last 3 years; we

aim to sustain this (higher in 2019)

• As we get bigger we become more sensitive to market

returns

• Hence … organic growth prospects look promising, with

leverage to markets (up and down)

• Table shows stable cash generators and businesses that are

still young and can materially increase their margins as they

grow.

WELL ESTABLISHED CASH GENERATORS

• Anchor Private Clients

• RCI

• Portfolio Bureau

YOUNG BUSINESSES WITH MATERIAL UPSIDE

• Anchor Asset Management

• Anchor Stockbroking

• AG Capital

• Anchor Financial Services

• Hedge Fund Business

• Stylo

BLUE SKY, BIG OPTIONALITY/R&D PROJECTS

• Partnership programme

• Property sector initiative

• Other new incubator projects

2019 EARNINGS DRIVEN BY …

The key driver for the business is assets under management,

which were R54bn at 30 June 2019. The results for the

remainder of the year will also be influenced by:

• The performance of local and global markets and Anchor’s

relative performance;

• The impact on assets under management from a larger

distribution force;

• The exchange rate between the Rand and other currencies

(we estimate across the business, the Rand hedge

component is approximately 50%);

• The growth of the new stockbroking division, and

• An increase in shares in issue (+/-3% impact before share

buybacks).

We are building a business which is sustainably growing AUM.

The flow through to the bottom line will vary through the cycle,

but we are aiming for meaningful growth over time.

PAGE 19

PAGE 20

ANCHOR PRIVATE CLIENTS

Bespoke wealth solutions for individual investors.

Anchor Private Clients is the private client business within

the Anchor Group. We offer a broad range of local and

offshore investment solutions tailored to the unique

needs of individual clients.

The Private Client business is obsessed with client service

and prides itself on offering a high-quality service to each

of our clients.

We offer local and offshore investment

solutions tailored to the unique

needs of our clients.

OBSESSED WITH CLIENT SERVICE

Our clients are our number one priority and we have a dedicated

team of wealth and portfolio managers who spend their days

fostering our client relationships.

WORLD-CLASS INVESTMENT TEAM

Anchor's investment team consists of more than 20 highly

qualified investment professionals. We run both a local and global

investment process, these processes are the engine of our

business.

PRODUCTS AND SERVICES

Local and global solutions

Unit trusts

Hedge funds

Share portfolios

Structures

Tax efficient solutions

BESPOKE GLOBAL WEALTH MANAGEMENT

PAGE 21

ANCHORASSET MANAGEMENT

Nimble investment management for retail and institutional clients,

locally and offshore.

Anchor Asset Management is the business within the Anchor Group

focussed on servicing institutions and financial advisors. The team

of world-class investment professionals offers products across

the risk spectrum to retail and institutional clients, locally

and offshore.

Understanding your needs and tailoring our single asset

management, multimanagement and passive solution sets to meet

your needs.

PRODUCTS ACROSS THE RISK SPECTRUM

A world-class investment product range,

across asset classes and geographies.

WORLD-CLASS INVESTMENT TEAM

A highly qualified and experienced team of more than 20

investment professionals. We run both local and global investment

processes, these processes are the engine of our business.

PHILOSOPHY AND PROCESS

Fundamentally a bottom-up investment process, with a top-down,

macro overlay. Philosophy is Pragmatic Growth at a Reasonable Price

(GARP). Implemented by an experienced team.

TAILORED SOLUTIONS FOR INSTITUTIONS

ANCHORSTOCKBROKING

PAGE 22

Who we are

Anchor Stockbroking is an experienced trading team

with over 9 years specialising in:

• Listed Property Research

• Corporate Access

• Trading

FOCUSED PROPERTY RESEARCH SPECIALISTS

VALUE-ADDED AD-HOC RESEARCH,

INCLUDING CORPORATE ACCESS

NICHE RESEARCH APPROACH FOCUSSING ON PROPERTY

EXPERIENCED CLIENT SERVICE PROFESSIONALS

INDUSTRY TRAINING AND

MENTORSHIP PROGRAMME

HIGHLY CAPABLE TRADING TEAM

WHY WE ARE DIFFERENT

Small enoughto be nimble,experiencedenough to

matter.

Dedicated globalinvestment team

with a fully-fledgedglobal investment

process.

Bespokeproduct

offerings tosuit a wide

range ofclient needs.

WHYANCHOR

WORLD CLASS INVESTMENT TEAM

A highly qualified andexperienced team of more

than 20 investmentprofessionals, running local

and global investmentprocesses.

LOCAL AND OFFSHORE INVESTMENT SOLUTIONS

Anchor runs dedicated localand offshore investment

processes, which produce arange of local and offshore

investment solutions.

PRODUCTS ACROSS THE RISK SPECTRUM

A world-classinvestment productrange, across asset

classes andgeographies.

OBSESSED WITH CLIENT SERVICE

We exist for andbecause of our

clients.

AN ENTREPRENEURIAL CULTURE

From the products and solutions we create to

the way we alignstakeholder interests,we’re entrepreneurial

at heart.

PAGE 24

A SOPHISTICATED AND ROBUST

PROCESS

FUNDAMENTAL RESEARCH

Global Thematics

Identifying Investment Themes

In-depth research

Blue chip bias

Valuation discipline

Best businesses at fair price

Pragmatic GARP

THE ANCHOR INVESTMENT PROCESS

BOTTOM UP BOTTOM UP

TOP DOWN TOP DOWN

SOLUTIONS

A FULL RANGE OF WEALTH & ASSET MANAGEMENT PRODUCTS & SERVICES

LOCAL & OFFSHORE CIS ACROSS ASSET CLASSES

HEDGE FUNDS

SEGREGATED MANDATES

COMPLETE PRODUCT AND SERVICE OFFERING

LOCAL OFFSHORE

Share portfolios Share portfolios

Unit Trusts Unit Trusts

Structured Notes Life Assurance Wrappers

Zero-tax rated endowment via Hollard

Personal hedge fund or unit trust

Offshore Trusts

PRODUCTS ACROSS THE RISK SPECTRUM

PRODUCTS AND SERVICES

A world-class investment product range, acrossasset classes and geographies, from which adiverse range of client needs can be met.

Local and global solutions

Unit trusts

Hedge funds

Share portfolios

Structures

Tax-efficient solutions

PAGE 27

DISCLAIMER

Anchor Capital has taken care that all information, provided in this document istrue and correct. However, Anchor Capital does not accept responsibility for anyclaim, liability, loss, expense, or damage (whether direct or consequential of anynature whatsoever which may be suffered as a result of or which may beattributable, directly or indirectly, to the use of or reliance upon any information,links or service provided through this document.

There is no warranty of any kind, expressed or implied, regarding the informationor any aspect of this service. Any warranty implied by law is hereby excludedexcept to the extent that such exclusion would be unlawful.

Anchor Capital (Pty) Ltd is an authorised Financial Services Provider with FSPnumber 39834.

This report and its contents are confidential, privileged and only for theinformation of the intended recipient. Anchor Capital (Pty) Ltd makes norepresentations or warranties in respect of this report or its content and will notbe liable for any loss or damage of any nature arising from this report, thecontent thereof, your reliance thereon its unauthorised use or any electronicviruses associated therewith. This report is proprietary to Anchor Capital (Pty)Ltd and you may not copy or distribute the report without the prior writtenconsent of the authors. Any forecasts or commentary in this document are notguaranteed to occur.

Past performance is not necessarily an indication of future performance.Performance data sourced from Morningstar, unless otherwise stated. Refer tothe minimum disclosure document of a particular product or the Anchor Capitalwebsite (www.anchorcapital.co.za) for further information.

© 2009-2019 Anchor Capital (Pty) Ltd.

An authorised Financial Services Provider

Reg No # 2009/002925/07 | FSP # 39834

PAGE 28