1. 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

2. 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 1 12.9x Positive EBIT (#)59 Average revenue 1 $173m Average EBIT 1 $13m Average revenue growth 1 5% Average EBIT growth 1 9% EV/EBIT 1 11.3x 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)

3. 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, 2010. Exc. ‘Financial and insurance services’ 2.Reuters, operating companies only 3.Data for AES companies is book value, data from NZX companies from NZX

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

5. 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 2011 2.UBS estimates, company filings; 5-year average to Dec 2011 3.Thomson Reuters; 5-year average to Dec 2011 4.Annual Enterprise Survey, Department of Statistics, 2010. Exc. ‘Financial and insurance services’ 5.Reuters, operating companies only

6. 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%)

7. 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 2011 1.Pencarrow achieved a first close on 30Nov 2011 and is seeking to raise $100m-$150m with a final close expected late 2012 2.Pioneer will launch a new fund Q4 2012 with a target of $100m 3.Konx has launched a new fund with a target $100-125m

8. Confidential 8 Investment mandate is important

9. Confidential 9 Thank you

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

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

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

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