Investor PresentationInvestor Presentation

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Our Company Our Business Our Industry Growth

Our Financials BEE Our Listing Rationale

Presentation Summary

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Our CompanyExecutive Summary

• We design and manufacture antennas• Established for 17 years• Revenue CAGR of 50% since 2001• Projected exports > 50%• World class R&D capability• Supported by strong growth in wireless data

markets• Raising of R20m on company value of between

R90m and R110m (Fwd PE of 4.7 and 5.8)

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Poynting (Proprietary) Limited

Poynting Antennas Poynting DirectPoynting Europe

GmbH

100%100% Currently being implemented

Our CompanyStructure

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• 1990: Established consulting company at Wits University

• 1997: Poynting (Pty) Ltd was formed

• 2001: Poynting Antennas was formed, moved to Wynberg and started manufacturing

• 2005: Established:• The Commercial Division (Cellular and wireless data antennas)• The Defence & Specialised Antenna Division (EW & DF)

• 2007: Poynting Direct physical and online stores for distribution of Poynting products to end users

• 2007: Poynting Europe GmbH which distributes commercial and defence products in Europe

Our CompanyHistory & Milestones

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‘Making Wireless Happen’

Our CompanyVision

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Our CompanyOrganogram

Production & Prototyping

Chief Executive OfficerAndre Fourie

Managing DirectorJuergen Dresel

R&D Wireless & Cellular Business Units

Sales R&D

Non executive ChairmanCoen Bester

Non exec directorsMike Hill / Zuko Kubukeli

Sales Finances & Admin

QA Logistics and Manufacture

Chief Technical OfficerDerek Nitch

1010 12 8 100 92 10

Total Number of staff = 163

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Defence Common Resources Commercial

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Our CompanyStakeholders (post listing)

Institutions / Investors22%

Staff Empowerment Trust3%

Management75%

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OUR BUSINESS

World Class Antenna Technology

Wireless Data Networks Technology

Cellular Products

Defence & Specialised projects & products

Our BusinessWhat we do

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73%

27%

Commercial Defence

Sales per technology category from January – December 2007

Total R50.9 million

61%

39%

Local Export

Export and Local Sales per division from January – December 2007

Total R50.9 million

Our BusinessWhat we do

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Our BusinessClients

• International recognition of manufacturing technologies

• Well developed sales and distribution channels– Network Operators– OEM’s (Original Equipment Manufacturers)– Direct distribution

• The Poynting brand

• Innovative niche products

• Continuous development of new products & range

• Price and performance competitiveness– Unique patented manufacturing technologies– Low labour component (15% of COS)– Chinese relationships– ‘Technology agnostic’ nature of products

Our BusinessCompetitive Advantages

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OUR INDUSTRY

Networking IntegratorsDevice manufacturers (embedded antennas)

Tracking

Military Industry

Wireless internet & cellular service providers

Antenna Products & Applications

Our IndustryWhere we function

EDGE

3G

HSDPA 15

• SA is one of the most advanced telecoms systems of all emerging markets

• Current product set SA market size ± R150 million

• Market for new whole products in SA an additional R600 million

• 30% CAGR in cellular market (2001 – 2006)

• CAGR of 52% in mobile data revenue since 2001

• SA Broadband internet usage ± 2-3%, increasing by 50% p.a.

• Wireless connections (e.g., EDGE, 3G, HSDPA, iBurst) overtook ‘wired’ internet (ADSL) in 2007

Our IndustrySA Market

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Our IndustryGlobal Market Trends

• Rapidly falling electronics costs enable widespread adoption of new wireless applications

• Growing use of wireless for internet access

• Machine-to-machine communication to play a growing role going forward

• The global wireless technology market ± $25 billion*

• Antennas constitute 10%-20% (& growing) of this market

*This excludes the cellular market which is much larger, which Poynting only addresses a subset of (modems and devices)

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•The footprint of companies currently purchasing smaller amounts is much more extensive with many of these displaying scope for further extension

Defence customers > R400 000 per annum Commercial customers > R400 000 per annum

Our IndustryGeographic Positioning

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• High barriers to entry

• Poynting is the dominant manufacturer in SA market. Most competition from imports.

• Competitors: Webb Industries, Pacific Wireless (USA), Maxrad (USA), MTI Wireless (Israel), Kenbotong (China)

• International “giants” do not compete in the “new” markets of cellular cpe and wireless data

Our IndustryCompetition

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GROWTH

GrowthPersonnel

14

31

52

70

90

125

163

0

20

40

60

80

100

120

140

160

180

2001 2002 2003 2004 2005 2006 2007

• 3 PhD, 4 MSc, 11 BSc, 3 Technicians

• 3 PhD, 7 MSc, 11 BSc, 3 Technicians

• Good corporate governance

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GrowthGrowth strategy

Growth in the wireless market

Growth by entering new countries

Grow product range

“Triple Play Plan”

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R45 mil → Estimated 20-30% growth in current customers/markets

R20 mil → 100%+ growth in Europe through Poynting Europe

R20 mil → Defence and specialised

R10 mil → Sales into new markets

R10 mil → Introduction of new products

R7 mil → Poynting Direct: Branches & organic growth (SA & Africa)

Total Sales Prospects

± R130 mil

R15 mil → New OEM contracts to supply large international manufacturers

GrowthSales prospects for FY2009

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OUR FINANCIALS

0

20

40

60

80

100

120

140

Mil

lio

ns

(R

an

ds

)

2006 2007 2008 2009

Turnover (Rm) Projected turnover (Rm)

Our FinancialsTurnover (June)

133%

62%

29%

76%

25

0

5

10

15

20

Mil

lio

ns

(R

an

ds

)

2006 2007 2008 2009

Profit after tax Projected profit after taxation

Our FinancialsProfit After Tax (June)

38%

515%

105%

300%

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2007 2008 2009

Revenue increase on prior years (%) 62 29 76

Gross margin (%) 53 56 49

Profit After Tax (%) 3 16 19

Our FinancialsKey Revenue Ratio’s

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Our FinancialsIncome Statement

Audited year ended 30-Jun 2005

Audited year ended 30-Jun 2006

Audited year ended 30-Jun 2007

Forecast year ended 30-Jun 2008

Forecast year ended 30-Jun 2009

  R'000 R'000 R'000 R'000 R'000

Revenue 11 882 27 747 44 926 58 081 102 100

Cost of Sales (7 331) (10 524) (20 033) (25 408) (52 180)

Gross Profit 4 551 17 223 23 893 32 673 49 920

Operating costs (5 181) (13 597) (22 539) (23 429) (31 105)

Other income 122 564 1 316 957 340

Operating profit ( 507) 4 190 2 670 10 201 19 155

Investment income 26 23 27 0 580

Finance costs ( 797) ( 546) ( 710) ( 688) ( 410)

Profit before taxation (1 278) 3 667 1 987 9 513 19 325

Taxation 70 ( 1 248) (479)

( 236) (320)

Profit after taxation (1 208) 2 418 1 509 9277 19 005 Notes:1.The above income statement takes into account the effects of the anticipated issue of shares.2. Capital raised of R20 million on listing less estimated share issue costs of R1.676 million.3. Surplus cash will be applied to the organic growth of the business in the short to medium-term and therefore no dividends are planned for the forecast period.4. Poynting takes advantage of research and development allowances in their tax computations, resulting in a reduced tax charge and a lower effective tax rate. 28

FinancialsBalance Sheet - Condensed

1. The increase in instalment sale liabilities is due to the financing of property plant and equipment.2. Capital raised R20 million (20 million shares of R1). Share issue costs of 1.676 million deducted from share premium.

Audited yr end 30 Jun

2005

Audited yr end 30 Jun

2006

Audited yr end 30 Jun

2007

Forecast yr end 30 Jun

2008

Forecast yr end 30 Jun

2009

  R'000 R'000 R'000 R'000 R'000

ASSETS    

Non Current assets 765 4 359 7 800 13 697 36 093

Property, plant and equipment 765 1 823 2 371 4 714 12 327

Intangible assets - 2 535 5 426 8 983 13 766

Investments - - - - 10 000

Current assets 3 240 10 245 18 801 34 344 40 042

TOTAL ASSETS 4 005 14 604 26 600 48 041 76 135

EQUITY AND LIABILITIES    

Capital and reserves (208) 2 345 3 442 ² 31 043 50 048

Non -current liabilities 859 1 889 5 834 5 440 ¹ 9 176

Current Liabilities 3 354 10 370 17 325 11 558 16 911

TOTAL EQUITY AND LIABILITIES 4 005 14 604 26 600 48 041 76 135

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BLACK ECONOMIC EMPOWERMENT

• Keen to enhance our BBBEE rating

• Establishing an Employee Empowerment Trust - will own 3% equity of the company

• Seeking genuine participation by an empowerment partner which will add value to the business

• Employment Equity Plan has been submitted

Black Economic Empowerment

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OUR LISTING RATIONALE

Rationale for listing

• Raising of money to supplement current cash resources:

Increase working capital

Expansion of sales channels

Increase production

facilities

Invest in R&D infrastructure

New product development

R10 mil

R5 mil

R4 mil

R4 mil

R8 mil

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Threats

• Unqualified entrants into the market

• Low cost international products

• Increase in energy prices

• A strengthening rand harmful for exports

• Consumer devices with integrated antennas and no connectors for external antennas

Weaknesses• Technology is capital intensive• Length of cycles (implementation, manufacturing,

delivery)• International distribution channel development for

branded products• High transport costs to international clients• Restricted cash flow has limited number of technical

staff for product development• Resource / funding restrictions constrain registering of

patents and designs

Opportunities• Globalisation • Growth in fixed wireless markets (wireless data & cellular)• Replacements / new infrastructure typically wireless• Increasing market share in SA, Africa & Europe• Attractive markets of E. Europe, USA, Asia & S. America• Remote office space• “Whole” products - Integration of antennas into complete

systems• A weakening Rand’s positive affect on margins and

competitiveness• Capital injection will leverage much faster growth

Strengths• Established business model• International customer base• Antenna design capabilities and tools• Brand equity (the Poynting brand)• Technologically agnostic• Intellectual property• Product portfolio• World leaders in certain commercial and defence

products• Research & Development• Unique, cost effective manufacturing processes• Innovative / flexible solutions

SWOT Analysis

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• Excellent international growth prospects

• Strong, experienced management

• Highly qualified and experienced R&D team is the company core strength

• Innovative product range

• Very high historical company growth with strong future prospects

• Seeks to list in June 2008

• Intends to raise R20 million through private placement

Summary

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Thank You&

Questions36