Preference Shares
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Ecsponent English
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Five sound reasons to invest with us
Investing with the times
2 Ecsponent: Grow with us
Ecsponent offers JSE-listed preference shares to investors who require a medium-term investment and predictable returns. Why should you invest in Ecsponent’s preference share programme?
01
The group creates wealth for all its stakeholders and has grown exponentially since 2010.
02
You will receive 100% investment allocation.
03
Your investment returns are fixed in advance, giving you peace of mind of stable, transparent returns.
04 Y ou can choose  between fixed, monthly dividend payments or a capital growth option. 05 C ompulsory redemption  at the end of the five year investment term.
Ecsponent: Grow with us  3 The Ecsponent group is an industry leader in the provision of niche market investment products, offering, amongst other investment products, JSE-listed preference shares. Ecsponent Limited, listed on the JSE, has registered a R5 billion preference share programme under which it may, from time to time, issue multiple tranches of preference shares. This programme was approved by the JSE in 201 4. To date, close to R1 billion has been invested in this programme.
While preference shares usually offer no repurchase commitment by the issuer (i.e. no security that you will get your capital back), Ecsponent’s preference share options are all redeemable after five years. For those wishing to liquidate their investments before the end of the fi ve-year term, the market liquidity and willing buyer/willing   seller   mechanism   of   trading   listed   shares   is   still   an   option.   Our   preference   shares   listed   on   the   JSE   and can therefore be traded. But in reality, who would want to risk trading when your capital is 100% secured? In addition, Ecsponent’s products provide predictable dividends, payable monthly or compounded and paid at the end of the term. This means that the different listed preference shares can cater for both investors who require a monthly income and those who prefer to receive their compounded capital growth at the end of the investment term. Other general benefits of preference shares, including Ecsponent’s unique offering, is that preference shareholders rank higher than ordinary shareholders in a company’s capital structure. This provides additional peace of mind for preference shareholders. As a result, Ecsponent preference shareholders receive the contractually agreed dividends (according to the company’s registered Memorandum of Incorporation) irrespective of the operational performance of the company (subject to the Companies Act solvency and liquidity requirements). This means that while investing in preference shares has some common features, each class of preference share can have distinctive features that need to be considered before deciding where to invest. In Ecsponent’s case, the company has issued four different classes of preference shares, all of which have been approved and listed on the JSE.
About preference shares Listed preference shares are investment instruments that offer distinctive features for both investors and the issuing companies. These types of shares are commonly used, by various organisations, as a means to raise capital whilst providing investors with handsome returns. What makes Ecsponent’s preference shares unique to others available in the market?
4 Ecsponent: Grow with us
Ideal for investors who: require a medium-term investment; are risk-averse but seek market standard returns; require a monthly income, after tax, or desire 70% return over a 5-year term; require 100% allocation of capital invested; and the security of investing in listed preference shares.
Listed Preference share Class G Class E Class D Gross fixed rate  10% 11,25% 12,50% Minimum investment amount  Refer to the current APS Refer to the current APS Refer to the current APS Investment term  Five years  Five years  Five years Cumulative  Yes  Yes  Yes 100% Allocation  Yes  Yes  Yes 100% Redemption  Yes  Yes  Yes Tax  Dividend Withholding Tax  Dividend Withholding Tax  Dividend Withholding Tax
How Ecsponent’s preference shares could meet your investment needs
Income classes
Conservative
Moderately Conservative
Moderate
Moderately Aggressive Aggressive  Fixed Assets
Equity Financial Services Cash Investment
* Terms and conditions apply, the Minimum Investment amount per class is subject to change per APS (Applicable Pricing Supplement). An annual administration fee my be levied against the gross return and might vary per APS. Listed Preference share Class B Gross fixed rate  70% Minimum investment amount  Refer to the current APS Investment term  Five years 100% Allocation  Yes 170% Redemption  Yes Tax  Capital Gains Tax
Growth class
* Growth is allocated at redemption of investment. Subject to Capital Gains Tax in the hands of the investor.
Ecsponent: Grow with us  5 About Ecsponent Financial Services
Fast facts A wholly-owned subsidiary of Ecsponent Limited
Incorporated in 2006
EFS provides investors with the information and advice they need to make investment decisions that are appropriate to their own needs
External compliance by Askari Compliance Services
Appoints a network of accredited financial advisors to promote the Ecsponent Group’s products across South Africa in accordance with the rules and regulations of the FSB
Askari ensures that all EFS’s procedures comply with FICA, FAIS regulations and applicable legislation as monitored by the FSB
Askari, established in 2007 is an FSB-approved compliance practice
Authorised FSP licence number 32968
Investment Services Business Credit Equity Holdings
The Ecsponent Group operates across South Africa and has a presence in Swaziland, Botswana and Zambia. Ecsponent Financial Services (EFS) is a subsidiary of Ecsponent and an authorised financial services provider. It leverages the infrastructure of the group’s financial services footprint and broker network, providing other financial and investment products and services to its client base, over and above its investment offering through the preference share programme. The JSE approved this programme in 2014 and offers investors stable, predictable investment returns.
6 Ecsponent: Grow with us About the Ecsponent group Ecsponent is a rapidly growing African financial services group with multiple subsidiaries and a footprint across South Africa, Botswana, Swaziland and Zambia. The group creates wealth by predominantly investing in companies that offer a range of niche financial services. Ecsponent Limited is listed on the JSE’s main board under the Financial Services ‒ Specialty Finance sector (JSE:ECS). The core business units include: Investment Services  |  Business Credit  |  Equity Holdings
Investment Services Preference shares Unit trusts Life products Annuities Endowments Tax-free savings accounts Preservation funds
Business Credit Secured SME credit  (medium to large businesses) SME Development Finance
Equity Holdings The group’s investments are diversified across multiple industries: Financial Services  MyBucks Ecsponent Financial Services Zambia Biotech Cryo-Save Salveo Swiss Technologies Lazaron Other Return on Innovation
Ecsponent: Grow with us  7
Stringent governance as an intrinsic group imperative
The group adheres to the principles and recommendations contained in the King Report on Corporate Governance for South Africa (2009). It is committed to the principles of fairness, accountability, responsibility and transparency that the report advocates. The board strives to ensure that the group is ethically managed, applying prudently determined risk parameters and complying with generally accepted corporate practices and conduct.
Some of the regulatory frameworks we comply with include: Financial Services Board (FSB) Johannesburg Stock Exchange (JSE) South African Reserve Bank (SARB) South African Revenue Services (SARS) Trading Regulatory Panel (TRP) Questco (Corporate Advisor and JSE Debt Sponsor) NEXIA SAB&T (JSE-approved auditors) Companies and Intellectual Property Commission  (CIPC) Computershare (Listings agent)
80 70 60 50 40 30 20 10 0
FYE 2013 FYE 2014 FYE 2015 FYE 2017*
Group revenue  Profit after tax
Revenue and net profit after tax
ZAR (million)
350 300 250 200 150 100 50 0
80 70 60 50 40 30 20 10 0
FYE 2013 FYE 2014 FYE 2015 FYE 2017*
Equity
%
120 100 80 60 40 20 0
ZAR (million)
* Financial period 1 January 2016 to 31 March 2017
Equity  Return on equity
Exponential growth Since 2010, the group has delivered triple digit growth in key performance areas every year.
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