Investor Presentation

26 – 28 May 2008

2

Contents

• Introduction and overview• Then and now• Investment approach• Track record• Shareholders• Black Economic

Empowerment

• Directors• Corporate governance• Financial information• Investment portfolio• Investment review• Prospects• Questions

3

Introduction and overview

• Founded by Shaun Rai and others in 1998 and listed on the JSE in the same year

• Black-controlled, managed and empowered diversified investment holding company with strong broad-based empowerment credentials

• Listed under “Equity Investment Instruments” on the JSE

• Sector investments to date include:

– Property– Gaming and leisure– Security– Information and Communications Technologies (ICT)/Telecoms– Financial Services

4

Then and now

Five years ago - 2003Fast forward to the

present – end of 2007

Total assets R44,3 million R1,26 billion

NAV R41,8 million R525,5 million

NAV per share 37,4 cents 160,7 cents

Market cap

Share price

R14 million

6 cents

R571 million*

160 cents*

- Strategic decision

taken to build a

balance sheet and

pursue asset growth

- Mainly funded by

equity

- Successfully

implemented

aggressive growth

strategy

*(16 May 2008)

Future focus will shift to balance growth with cash flow

5

Track record

• The last five years has seen a massive pursuit of asset growth

• Focus will now be on sustainable cash flows

• Management have an excellent track record of achieving growth and creating value for its shareholders

• Consistently highly rated by various industry surveys

Average comp

growth 2007 2006 2005 2004 2003

Market Cap (R’000) 123% 797 889 341 986 107 310 26 015 14 633

NAV (R’000) 54% 525 456 201 872 51 416 43 493 41 779

NAV per share (c) 34% 160,7 87,4 41,5 44,2 37,4

Total assets (R’000) 95% 1 257 809 320 206 131 929 54 368 44 356

HEPS (c) 98% 45,4 44,1 10,3 6,3 1,5

EPS (c) 104% 52,6 44,9 10,8 6,3 1,5

6

Track record continued

Market Cap (R’000)

Total assets (R’000)

NAV (R’000)

HEPS (cents)

NAV per share (cents)

EPS (cents)

7

Investment approach

• Focus on buying significant interests in or control of:

– cash generative and/or undervalued businesses– with exceptional growth prospects– in attractive high-growth areas of the economy– that we know and understand

• Aim for a constructive partnership with entrepreneurs / management

• Utilises broad-based empowerment credentials, networks, business skills and intellectual capital to identify value investment opportunities and unlock value and cash flow over short to medium term

• Match funding mechanisms with underlying cash flow profile of the investment

8

Economic interest of 13 – 15% in Grand Parade Investments Ltd

Investment portfolio

23% of Ambit Properties Ltd and 22%-26% of Ambit Management

Services (Pty) Ltd25% in African Alliance Real Estate Investment Trust Ltd25% in African Alliance Management Services (Pty) Ltd41% interest in Lions Hill Development Company (Pty) Ltd51% in CII Hotel and Resorts Cape Town (Pty) Ltd20% in Rapiprop 159 (Pty) Ltd

Gaming and Leisure

24,4% in Command Holdings Ltd 90% in Alexandra Security

Property

Security

6% in Purple Capital Ltd 25% in African Independent Horizons (Pty) Ltd / Summit Fund Solutions

Financial Services

42% in Dynamic Cables RSA Ltd100% in Sancino Litho (Pty) Ltd

Other

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Shareholders*

Cape Empowerment Trust Ltd

Directors Institutions** OtherPurple Capital

21,7%*** 50,7%6,7%20,9%

* Register as at 30 April 2008 inclusive of directors’ dealings to 21 May 2008** Includes Stanlib, Sanlam, RMB, Eskom Pension Fund and others*** Includes SSF’s and CFD’s

10

Black Economic Empowerment

Transformation is best achieved through growth, mutual development and skills transfer

Add value to investments by unlocking new markets and applying

sound investment and management principles and to ensure sustainable growth

Entrepreneurial approach

• CET externally rated as a level 1 contributor with a score of 135% and BEE ownership of 43% in November 2007

• However, as a listed company with widely traded shares we recognise that ownership profiles may shift

• Where a transaction requires >50% BEE ownership CET will lead an appropriate consortium and apply proprietary developed and proven deal structures

Philosophy:

11

Black Economic Empowerment continued

• Five out of nine directors are black

• Majority of group employees are black

• Seven broad-based community groups were founding shareholders:

– Background

– Changing ownership patterns

– Initial 12% of issued share capital

– Assisting students in need

– R20 million investment

– Number of students in scheme: 135

• The group was not built on typical empowerment transactions

12

Directors

• Executive Directors

Shaun L Rai (47) GDA(UCT), CA(SA) – Executive Chairman*#

Jeremy de Villiers (34) B.Rek (cum laude), B.Compt (Hons), H.Dip(Tax), CA(SA) – Managing Director*+

Rorden J McGregor (39) B.Comm – Financial Director and Company Secretary*+

(refer to www.capemp.co.za for abbreviated CV’s)* Member of Exco + Member of Audit Committee # Member of Remuneration Committee

• Non-Executive Directors

Theodore D Rai (49) MBChb(UCT) – Deputy Chairman*

Fezile C Calana (35)

Peter B Hesseling (40) B.Comm, LLB, HDip Tax*#

Haroon Tokalia (57) B. Comm (Hons), B Compt, CA(SA), MBA (Wits)+

Omar Valley (56) MAdmin, BA (Hons) (Psych)#

Mark Barnes (52)

13

Corporate governance

• Comply with King II and JSE Listings Requirements

• Key committees include

– Audit Committee– Remuneration Committee– Executive Committee

• Exco functions as investment committee subject to board review

regarding strategic decisions

• Managing Director appointed to strengthen the team

14

Financial information – Highlights

Reviewed results for the 12 months ended 31 December 2007:

• Total assets increased by 293% to R1,26 billion

• 84% increase in NAV per share to 160,7 cents and 160% increase in

NAV to R525,5 million

• 67% increase in attributable profit to R143,1 million

• 17% increase in EPS to 52,6 cents

• 104% average compound growth in EPS over five years

• Maiden dividend of 3 cents per share

• Increased debt to partly fund growth in assets

– e.g. R318 million borrowed to fund investment in Ambit Properties

Ltd, of which R286 million is fixed at 11,13% for seven years, the

balance is at prime -1%

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Financial information continued

Reviewed Condensed Consolidated Income Statement31 Dec ’07

R’00031 Dec ’06

R’000

Sales 154 155 174 568Cost of sales (101 570) (114 317)

Gross profit 52 585 60 251

Operating income 17 260 9 448

Operating expenses (79 596) (55 744)

Operating (loss)/profit (9 751) 13 955

Investment revenue 9 737 419

Fair value adjustments 206 419 109 502

Negative goodwill 13 697 6

Finance costs (10 341) (2 965)

Profit before taxation +73% 209 761 120 917

Taxation (48 307) (28 592)

Profit for the year +75% 161 454 92 325

Attributable to:

Equity holders of the parent +67% 143 101 85 785

Minority interest 18 353 6 540

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Financial information continued

Supplementary information 31 Dec ’07 31 Dec ’06

Shares in issue (’000) 327 004 231 072

Shares in issue – weighted (’000) 272 238 190 869

Diluted number of shares – weighted (’000) 287 847 200 193

Earnings per share (cents) 52,6 44,9

Fully diluted earnings per share (cents) 49,7 42,8

Headline earnings per share (cents) 45,4 44,0

Fully diluted headline earnings per share (cents) 42,9 42,0

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Financial information continued

Segmental information (R’000)Profit

before tax Assets Liabilities

Property 60 365 539 997 352 462

Security 9 293 35 735 9 091

Gaming and Leisure 122 113 500 421 137 093

Financial Services 2 255 34 677 –

Other 15 731 146 979 80 181

209 757 1 257 809 578 827

Property Security Gaming and Leisure Financial Services Other

Profit before tax Assets Liabilities

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Financial information continued

Reviewed Condensed Consolidated Balance Sheet 31 Dec ’07R’000

31 Dec ’06R’000

ASSETSNon-current assets +354 1 118 797 246 404

Investment property 2 609 –

Property, plant and equipment 16 578 17 894

Goodwill and intangible assets 38 838 32 743

Other financial assets 1 043 038 195 767

Non-current assets held for sale 17 734 -

Current assets 139 012 73 802

Inventories 23 252 19 313

Other financial assets 20 895 8 485

Trade and other receivables 23 852 28 351

Cash and cash equivalents 71 013 17 653

Total assets 1 257 809 320 206

EQUITY +200% 678 984 226 404

Share capital and premium 234 220 49 624

Treasury Shares (4 113) –

Retained earnings 295 349 152 248

Minority interest 153 528 24 532

LIABILITIES

Non-current liabilities 423 910 26 184

Other financial liabilities 348 213 4 185

Instalment sale obligations 5 487 3 835

Deferred tax 70 210 18 164

Current liabilities 154 915 67 618

Loans from shareholders 18 067 11 648

Other financial liabilities 54 738 6 701

Current tax payable 29 030 16 120

Trade and other payables 53 080 33 149

Total liabilities +517% 578 825 93 802

Total Equity and Liabilities 1 257 809 320 206

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Financial information continued

Reviewed Condensed Consolidated Cash Flow Statement31 Dec ’07

R’00031 Dec ’06

R’000

Cash flow from operating activities 21 812 4 014

Cash generated from operations 26 740 8 845

Interested and dividends received 9 737 419

Interest and taxation paid (14 665) (5 250)

Cash flow from investing activities (549 383) (59 167)

Net purchase of property, plant and equipment (1 432) (11 978)

Purchase of investment property (2 609) (3 255)

Acquisition of business 117 896 –

Purchase of financial assets (635 259) (50 417)

Profit on sale of shares 6 741 6 483

Non-current asset held for sale (17 734) –

Loss on sale of other financial assets (16 986) –

Cash flow from financing activities 585 699 46 520

Proceeds on share issue 180 482 43 137

Proceeds from borrowings 397 326 4 276

Proceeds from shareholders’ loan/(repayment) 6 419 (3 821)

Proceeds from instalment sale obligations 1 472 2 928

Total cash movement for the period 58 128 (8 633)

Cash at the beginning of the period 12 842 21 475

Total cash at the end of the period 70 970 12 842

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Investment review – Property

1. Ambit Properties Ltd (Ambit) and Ambit Management Services (Pty) Ltd (Ambit Manco)

• Reversed the African Alliance portfolio into Ambit in 2007 – which unlocked value for CET of R92m at a cost of R4m

• Ambit was identified as a strategic target being undervalued to its peers – this view reinforced by recent market reports

• Own 23% (110 m linked units) in Ambit – valued at R418m (Dec 07)

• Entitlement of 22% (with option to increase to 26% as well as scope for further participation) in Ambit Management Services (Pty) Ltd – conservatively valued at R35 million (Dec 07)

• Expect real distribution growth at least in line with peers

• Ambit has an aggressive growth strategy and low gearing of which 73% is fixed

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Investment review – Property continued

2. African Alliance Real Estate Investment Trust Ltd (AA REIT) and African Alliance Management Services (Pty) Ltd (AA Manco)• 25% founding shareholder in AA Reit, an unlisted black owned

and controlled property loan stock company aggressively growing a portfolio of office, commercial and industrial properties

• Focus on acquiring undervalued properties and unlocking value

• Participate in selected developments

• Exponential Return on Investment as no significant capital required to date

• 25% shareholder in AA Manco, a black owned and controlled property management business also managing AA Reit

• Other shareholders in AA Reit and AA Manco include Shaun Rai, Steve Phelps and Wayne Arendse

• Investment in AA Reit and AA Manco valued at R50m (Dec ‘07)

22

Investment review – Property continued

3. Lions Hill Development Company (Pty) Ltd (Lions Hill)

• 41% economic interest in Lions Hill, a planned R620 million exclusive residential development on the slopes of Lions Head in Cape Town in partnership with Nedbank Property

• Expected completion in 2010

• Valued at cost of loan account only – R7 million (Dec ’07)

• Intrinsic value of investment (including loan account) >R25 million

• Expected 2 -3 year investment cycle with exponential ROI as no significant capital at risk

• CET surety limited to R11,7 million for the development finance

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Investment review – Property continued

4. CII Hotel and Resorts Cape Town (Pty) Ltd (CII)• R200 million five star luxury hotel in Cape Town scheduled for

completion in 2009

• 51% interest in CII at a cost of R30 million (valued at cost Dec ’07)

• Investment case based on an expected IRR of 26% increasing to >30% if expected incentives materialise

• The first of a chain of hotels to be established and operated in SA by Coral International. Scope for further participation in this roll out

5. Rapiprop 159 (Pty) Ltd (Rapiprop)• Acquired 20% in Rapiprop for R10,7 million (valued at cost Dec ’07)

• Agricultural property-based farming venture with Capespan

• Acquired a number of distressed farms at below market values

• Introduced modern farming practises and strong management

• Intrinsic value estimated at >R20 million

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Investment review – Gaming & Leisure

Grand Parade Investments Ltd (GPI)• Expect to have effective control over 17% – 20% and economic interest

of 13% – 15% (pre the RAH transaction)

• CET pursued control over GPI but was unsuccessful

• GPI listing

• Valued at R6,25 per GPI share at Dec ’07

• Market valuations of gaming counters under pressure – GPI won’t escape this in the short term

• However GPI is well positioned within the sector with exposure to some of the least mature gaming assets

• Significant value has been extracted from this investment

• Strong interest expressed in our stake - will only consider a disposal at the right price and the right time

25

Investment review – Security

• Acquired 24,4% interest in Command Holdings Ltd for

R8,3 million – valued at R19,3 million (Dec ’07)

• Increased our stake in Alexandra Security to 90% at a total cost of

R6 million

• Management owns 10%

• Alexandra Security expected to generate in excess of R6 million

free cash in 2008

• Massive opportunities to create a large black-owned security and

services group

• Aggressive growth strategy - will be an area of focus over the next

24 months

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Investment review – Financial Services

• Acquired 6% interest in Purple Capital for R17,5 million (valued at

Dec ’07 at R24 million)– Invested in asset management, treasury, financial derivatives and

micro-financing and administration – Recent events well publicised – however, we back management who

is competent and financially very committed to the business– We like the asset and believe it can and will be fixed

• Acquired 25% interest in African Independent Horizons

(Pty) Ltd for R6,6 million (valued at cost in Dec ’07)– Implemented consulting function which consults to R12 billion of assets

under management

• Assets provide a reasonably priced entry point into financial

services with good growth prospects

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Investment review – Other

1. Sancino Litho (Pty) Ltd (Mills Litho)

• Acquired 100% of Mills Litho for R15 million as a consequence of our involvement with Sancino Projects, the single largest shareholder of GPI and a subsidiary of Cape Empowerment Trust

• Profitable and cash generative (>R8 million free cash in 2008) business but non-core

• May consider a disposal if the terms are attractive

2. Dynamic Cables RSA Ltd (Dynamic)

• Listed subsidiary – performed in line with expectations

• Our interest has been reduced to 42% as a result of share issues and a BEE transaction – attributable NAV R24,7 million (Dec ’07)

• Current consideration - repositioning Dynamic as an independent BEE investment group focusing on an aggressive growth strategy of asset growth with leveraged and equity funding

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Prospects

• Bearish investment sentiment as a result of global volatility, credit

crunch, growth and capacity constraints, rising input costs, rising

inflation

• Results in risks and assets being re-priced on a wide scale with

asset valuations coming under pressure

• We are not immune so short term growth will not be at the same

level as the last five years

• Seeing fantastic investment opportunities in undervalued assets

exposed to high growth areas of the economy – which we will

continue to pursue

• Shift in focus from pure asset growth to growth balanced with

sustainable free cash flows

29

Then and now

Five years ago - 2003

Fast forward to the present – end

of 2007

The next five years

Total assets R44,3 million R1,26 billion

?NAV R41,8 million R525,5 million

NAV per share 37,4 cents 160,7 cents

Market cap R14 million R571 million

(16 May 2008)

- Strategic decision

taken to build a

balance sheet and

pursue asset growth

- Mainly funded by

equity

- Successfully

implemented

aggressive growth

strategy

Future focus will shift to balance growth with cash flow

30

The next five years

• Balance asset growth with sustainable cash flows

• Focus on increasing cash earnings as opposed to

mark-to-market gains

• This should substantially improve dividend payouts

• Three investment classes:

– Offering attractive cash flows and growth prospects in the short term in sectors that we have expertise in

– Strategic in nature that will ultimately be able to generate attractive cash flows and growth

– Held-for-sale investments that will be monetised within 18 to 24 months and proceeds applied to reduce debt, fund new opportunities

31

The next five years continued

• Core focus will continue to include property, security

and services

– Property: Ambit will provide excellent cash flow and African Alliance Real Estate Investment Trust significant growth together with other value and development opportunities

– Security and services: We have set ambitious growth targets

• We will continue to expand the management team

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QUESTIONS ?