Understanding Phuthuma Nathi Understanding your return on investment Capital growth through share price increases Over time, the shares in a company may become increasingly valuable depending on how well the company performs and how much demand there is for ownership of its shares. This is referred to as capital growth. It is important to remember that the value of shares can also decline if a company is performing poorly or if the demand for ownership of its shares declines. For example, if you purchased a Phuthuma Nathi share at inception for ZAR10 per share, it would have been worth ZAR134 per share at 31 March 2023(3). As a Phuthuma Nathi investor, it is important to understand how your shares can potentially create value over time. Through Phuthuma Nathi, MultiChoice SA has provided long-term, impactful bene ts to its BBBEE shareholders, with an estimated total return on investment of approximately 31 times since inception(1). ʶas˛ Єo˪ returns through dividends The directors may choose to pay dividends to shareholders periodically. While dividends are never guaranteed as they depend on how well the company performs, among other considerations, they offer shareholders liquid cash distributions as and when declared. An initial investment of ZAR10 has generated capital growth of roughly 17% per year over 17 years ZAR16.4bn in dividends paid since inception (1) This total return includes the value of capital held and dividends received but assumes that the dividends were not reinvested by shareholders into Phuthuma Nathi shares, and excludes the impact of exchanging a portion of the Phuthuma Nathi shares held for MultiChoice Group shares in FY20 for any shareholder who may have elected to do so. (2) Dividends are declared and paid post the nancial year-end, e.g. the FY23 dividend was declared in June 2023 and will be paid in September 2023, subject to approval of the MultiChoice SA dividend in August 2023. Dividends declared are subject to dividend withholding tax, e.g. FY23 dividend declared of ZAR20.37 per share equates to a net dividend of ZAR16.30 per share after dividend withholding tax of 20%. (3) Based on the last publicly traded value on EESE on 31 March 2023. Dividend declared per Phuthuma Nathi share(2) ZAR22.22 ZAR22.22 ZAR22.22 ZAR20.37 FY23 FY22 FY21 FY20 Capital growth through share price increase ZAR10 ZAR134 2023 2006 Phuthuma Nathi Investments (RF) Limited Integrated annual report 2023 14
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