OMNIA HOLDINGS LIMITED - Further Trading Statement for the Year Ended 31 March 2019

Further Trading Statement for the Year Ended 31 March 2019

OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1967/003680/06
JSE code OMN  ISIN ZAE000005153
(“Omnia” or “the Group”)


FURTHER TRADING STATEMENT FOR THE YEAR ENDED 31 MARCH 2019


1. FURTHER TRADING STATEMENT

Shareholders are referred to the trading statement for the year ended 31 March 2019 (“FY2019”) published on SENS
on 20 March 2019 wherein shareholders were advised inter alia that:

    •    basic (loss)/earnings and earnings per share (“EPS”) for FY2019 are expected to be more than 160% lower
         than the basic earnings of R666 million and EPS of 985 cents per share for the year ended 31 March 2018
         (“FY2018”); and

    •    headline (loss)/earnings and headline earnings per share (“HEPS”) for FY2019 are expected to be more than
         120% lower than the headline earnings of R670 million and HEPS of 991 cents per share for FY2018.

Shareholders are advised that the Board of Directors of Omnia is satisfied that it has the reasonable degree of certainty
required to confirm the expected ranges of EPS and HEPS for FY2019 as set out below:

                                                              Unaudited             Audited
 Cents                                                              2019               2018                  % change


 Basic earnings / (loss) per share                          (670) – (591)               985           (168%) – (160%)
 Diluted earnings / (loss) per share                        (670) – (591)               927           (172%) – (164%)
 Headline earnings / (loss) per share                        (139) – (59)               991           (114%) – (106%)
 Diluted headline earnings / (loss) per share                (139) – (59)               933           (115%) – (106%)


Omnia has scheduled to release its audited financial results for FY2019 on SENS on 25 June 2019.

The financial information on which this trading statement is based, including the financial information disclosed in this
announcement, has not been reviewed or reported on by Omnia’s independent external auditors.

2. COMMENTARY

In FY2019, Omnia experienced adverse market conditions, marked by droughts and late rains, a volatile Rand currency,
changes in the local and international mining industry, and overall difficult global trading conditions.

The following once-off items are included in the current year’s results:

   •   A further impairment of a problematic debtor in Angola of R44 million, now fully provided for;
   •   Protea Chemicals incurred R35 million to restructure its business. As a result, annual costs of R75 million have
       been removed from the business on an ongoing basis, however this full benefit will only come through in
       FY2020. Phase two of the process has commenced which will result in additional annual savings and improved
       quality of business as part of its newly developed strategy. Notwithstanding these actions, management
       included an impairment of the entire goodwill balance of R324 million due to historical performance;
   •   The Emerging Farmers programme, in a year of drought, continues to be under stress linked to the financial
       pressure experienced by farmers. To this end a further provision has been made for expected losses.
       Management action has been implemented to reduce the risks within this business and to reduce the exposure
       of the Group;
   •   Both businesses in Zimbabwe, Fertilizer Zimbabwe and Acol Chemical, have been impacted by an intentional
       slowdown in business due to the liquidity constraints in the country. In addition, their financial results have been
       reduced (by c.R95 million) to approximately one quarter of their nominal value following the introduction of an
       alternative currency in Zimbabwe namely the RTGS dollar (real time gross settlement) through the impact of
       the accounting treatment on the change in functional currency;
   •   As regards the Group's share schemes including the 12-year BBBEE share scheme, Sakhile 1, an increased
       provision has been made for non-cash share-based payment charges of R54 million; and
   •   Transaction costs linked to the acquisition of Oro Agri of R28 million.

3. CAUTIONARY ANNOUNCEMENT

Shareholders are referred to the announcements published on SENS on:

   •   23 April 2019, regarding Omnia’s ongoing engagement in a collaborative process with its principal debt
       providers to devise and implement a restructuring of Omnia’s existing debt in order to ensure Omnia’s long-
       term sustainability; and
   •   30 May 2019, regarding Omnia’s intention to undertake a rights offer of R2 billion in order to reduce its overall
       gearing.

Accordingly, shareholders are reminded to continue to exercise caution when dealing in Omnia shares.

Johannesburg
14 June 2019

Sponsor
Merchantec Capital

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