Confidential 1 Pioneer Capital Partners An expansion stage value investor Is there investable growth in New Zealand? How do we access it? Eriksens Conference 25 September 2012

Confidential 2 Start with what we know – the NZX NZX profile 108 NZX All 80 Operating Companies 16 Growth Companies Financial profile Remove: -Finance-related companies -Investment companies -Property trusts Select: -Companies with three year revenue CAGR greater than 15% Positive EBIT (#)12 Average revenue 1 $61m Average EBIT 1 $7m Average revenue growth 1 28% Average EBIT growth 1 31% EV/EBIT x Positive EBIT (#)59 Average revenue 1 $173m Average EBIT 1 $13m Average revenue growth 1 5% Average EBIT growth 1 9% EV/EBIT x 1. Trimmed average (90% of population), even weighted, all growth is 3-year historic CAGR, EBIT is normalised. Source: NZX and Reuters Knowledge (20 September 2012)

Confidential 3 What the rest of the economy looks like – Private Capital NZ Productive AssetsValuations (bn) 3 NZ Industrial Base 1 Income$485bn EBIT $55bn NZ Manufacturing 1 Income$89bn EBIT $4.5bn NZX OpCos 2 Income$44bn EBIT $4.5bn Ent. Val. $695 (13x EBIT) Debt $241 (2.8x cover) Equity $454 Ent. Val. $47 (10x EBIT) Debt $14 (3.8x cover) Equity $33 Ent. Val. $65 (14x EBIT) Debt $16 Equity $49 Notes: 1.Annual Enterprise Survey, Department of Statistics, Exc. ‘Financial and insurance services’ 2.Reuters, operating companies only 3.Data for AES companies is book value, data from NZX companies from NZX

Confidential 4 Looking for growth – Manufacturing as an example Revenue Growth 2009 to 2012

Confidential 5 Equity funding New Zealand Equity Inflows p.a. NZ Productive Assets NZ Industrial Base 4 Income$485bn EBIT $55bn NZ Manufacturing 4 Income$89bn EBIT $4.5bn NZX OpCos 5 Income$44bn EBIT $4.5bn Private Capital 1 Early-stage $50m Mid-market $130m Large PE $300m Trade (M&A) 3 NZ Target $1,608m Other - H uge Public (NZX) 2 IPO $112m Sec. $760m Other $460m Notes: 1.NZ Private Equity and Venture Capital Monitor ; 5-year average to Dec UBS estimates, company filings; 5-year average to Dec Thomson Reuters; 5-year average to Dec Annual Enterprise Survey, Department of Statistics, Exc. ‘Financial and insurance services’ 5.Reuters, operating companies only

Confidential 6  Method: – 1994 to 2010 – 16 years – $675m invested into 74 companies, majority of investments were mid-market – 11 Fund managers – essentially the population  Results: – Pooled IRR of 26.8% p.a. 1, 2.13x MM (Gross) – Six investments were >5x MM; 5 went into receivership – Strong performance throughout period of study, best was 2000 to 2008 Gross realised returns – Private Capital is showing promise 1. Excludes two biggest investments, both LBO, that skew results (otherwise pooled IRR of 33.6%)

Confidential 7 Private Equity Access Points ManagerLatest Fund SizeWhen Raised Direct capital$325mFeb 2009 Maui$250mMay 2012 Pencarrow$82m 1 open Pioneer$70m 2 Apr 2007 Knox$60m 3 From 2007 Waterman$83mAug Pencarrow achieved a first close on 30Nov 2011 and is seeking to raise $100m-$150m with a final close expected late Pioneer will launch a new fund Q with a target of $100m 3.Konx has launched a new fund with a target $ m

Confidential 8 Investment mandate is important

Confidential 9 Thank you

Confidential 10 Gross realised returns - analysis NZ PE gross realised return over time periods Source: New Zealand Venture Investment Fund

Confidential 11 Gross realised returns – analysis (cont.) NZ PE gross realised return distribution 1994 to 2010 Source: New Zealand Venture Investment Fund

Confidential 12 Market activity – Mid Market NZ mid-market activity 2003 to 2011 Source: New Zealand Private Equity and Venture Capital Monitor

Confidential 13 Market activity – LBO NZ LBO activity 2003 to 2011 Source: New Zealand Private Equity and Venture Capital Monitor