Denker Capital (Pty) Ltd

www.denkercapital.com

Company details

FAIS FSP registration number: 26/10/763

Switchboard:

+27 21 950 2603

General email: Investorrelations@denkercapital.com

Address:

6th Floor, The Edge

3 Howick Close, Tyger Falls Bellville 7530, Cape Town, South Africa

7530

Compliance officer name: Francis Hitchinson (Outsourced to Sanlam Investments) FrancisH@sanlaminvestments.com / +27 21 950 2695

Investment philosophy

Denker Capital has one investment philosophy across the different investment teams.

Our approach to investing

We focus on company fundamentals.

We focus on conducting in-depth research on company fundamentals, which informs our assessment of a company’s intrinsic value. Intrinsic value is the present value of a company’s total expected net cash flows.

We invest in companies when they are attractively priced relative to their long-term return potential. Our investment process determines whether a company’s current price is too high or low compared to its track record and our assessment of its future potential, as measured by intrinsic value.

We invest with patience and for the long term. It can take time for a company’s share price to reflect its underlying intrinsic value. Our approach therefore requires patience to invest for the long term.

We understand and manage risks. Returns in financial markets can only be achieved by assuming some risk. We concentrate on understanding the risks companies face so that we invest with a margin of safety and diversify our portfolios.

What we look for in a company

Good business economics

We assess a company’s growth opportunities, its ability to generate cash and sustainable returns on capital, its capital structure, and the strengths and weaknesses of the industry in which it operates.

Quality management

We place significant emphasis on the management team who are responsible for capital allocation decisions. We consider their track record, how they operate the business, their personal traits, and whether or now they are disciplined stewards of shareholder capital.

ESG factors

We look at how companies manage ESG issues strategically for the long term.

Favourable valuations

We make sure that we aren’t overpaying for the value we are receiving by understanding the intrinsic value and the range of possible outcomes.

FAIS requirements

Who is your FAIS complaints officer?

Francis Hitchinson (Outsourced to Sanlam Investments)

Please provide the link to the complaints policy on your website: https://www.differential.co.za/policies

Ownership

What is the ownership structure of the company?

Sanlam Investment Holdings (Pty) Ltd 49.9%, Denker Capital Employee Trust 15.3%, Arnhem Littleton Trust 14.5%, Star Fish Trust 12.9%, Cornelis Seakle Kooyman

6.5%, Lubnik Investments (Pty) Ltd 0.95%

Who are the directors of the company?

Executive directors: Shane Tremeer (CEO), Kokkie Kooyman, Claude van Cuyck, Madalet Sessions (alternate) Nonexecutive directors: Carl Roothman, Nersan Naidoo Do staff and management have an interest in ownership? Please provide the percentage held by staff and management: 50.1%

History

When was the company established?

2015

List of mergers and acquisitions that have taken place since being established: –

B-BBEE credentials

Are you B-BBEE accredited? No

What is your B-BBEE status? Non-Compliant.

By whom have you been accredited? AQRate

Date of accreditation: 2019-10-08