1. Launch of the Alternative Market Alt-M Taj Pamodzi Hotel 22 nd April, 2015

2. Background October 2003, Chingola LuSE presentation to IESC/ZCSMBA managed Copperlink Program and KCM Small Business Unit workshop SMEs called for a structure on LuSE which would make access to its capital raising mechanism easier www.luse.co.zm2

3. Background cont’d… LuSE estb. Steering Committee: – LuSE(Brian Tembo/Celine Nair) – SEC(Queen Shachile) – ZCSMBA(Maxwell Sichula) – IESC(Nathan DeAssis) – MoCTI(Yvonne Chileshe) – ICC(Juliet Munro) – Wits(Charles Sichangwa) – Meliora(Zoran Zuze) – BDO(William Saunders) www.luse.co.zm3

4. Long Consultative Process www.luse.co.zm4 2005 1 st consultative workshop Lusaka and Kitwe 2006 ZDA/ZSIC sponsored meetings Lstone & Chipata 2007 Rules developed 2014 PSD supported nationwide sensitization meetings

5. Small <50 employees Annual turnover K200,000 – 1,000,000 Medium Annual turnover K1,000,000 – 20,000,000 >50 employees www.luse.co.zm5 SME National Definition

6. Some Sources of Funds for Small Business SME Savings Family & Friends BanksGrantsAngels Venture Capital www.luse.co.zm6

7. The Missing Link! www.luse.co.zm7

8. Coming to Market Company X Plc (Securities registered) Listed Main Alt-M UnlistedQuoted www.luse.co.zm8

9. Introducing the LuSE Alternative Market “ LuSE Alt-M is a market for small to medium companies that are in a growth phase and applicants that meet the criteria for listing on the Main Board will not ordinarily be granted a listing…” www.luse.co.zm9 Alt-M Turnover Employees # Shares HistoryBoard DIP DA

10. Employees & Turnover Employees & Turnover www.luse.co.zm Section 21.3(b) “An applicant issuer shall have a minimum of up to twenty (20) and a maximum of hundred and fifty (150) employees, a minimum trading turnover of K250, 000 and a maximum trading turnover of K20 million.” 10

11. # Shares & Public Spread # Shares & Public Spread Not less than 500,000 equity shares in issue. The public must hold a minimum of 10% of each class of equity securities and the number of public shareholders shall be at least 30 Excludes DA held shares www.luse.co.zm11

12. History/Projections Show operation at least 5yrs and/or Increased revenues and market share for 3 successive years and/or Submit audited financials of the Preceding financial year end and/or Produce a profit forecast for remainder of fin. Yr and 1yr after and/or Submit a business plan for the next 5 yrs of its operations www.luse.co.zm12

13. Board Minimum of 5 board directors Majority being non-family members Chairman and Chief Executive shall be separated after 5yrs following the issuer’s listing www.luse.co.zm13

14. Disclosure Alt-MAlt-M listed companies will be required to publish announcements via the Central Information Disclosure System (CIDS) CIDS is a web-based information system It’s a minimum requirement and Co.s encouraged to voluntarily publish in the press www.luse.co.zm14