RAND MERCHANT INVESTMENT HOLDINGS LIMITED - Trading statement for the year ended 30 June 2022

Trading statement for the year ended 30 June 2022

RAND MERCHANT INVESTMENT HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2010/005770/06
ISIN: ZAE000210688
Share code: RMI
("RMI" or "the group")

TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2022

Paragraph 3.4 (b) of the JSE Listings Requirements requires companies to
publish a trading statement as soon as they become reasonably certain that
their financial results for the period to be reported on next will differ
by at least 20% from those of the previous corresponding period.

Shareholders are referred to RMI’s trading statement released on the Stock
Exchange News Service (SENS) on 27 June 2022 where the accounting treatment
of RMI’s investments in Hastings Group (Consolidated) Limited (Hastings),
Discovery Limited (Discovery) and Momentum Metropolitan Holdings Limited
(Momentum Metropolitan) was explained as follows:

-  The earnings of Hastings are equity accounted until 8 December 2021,
   the effective date of the sale. The proceeds on the sale of Hastings
   were utilised to, inter alia, repay all the group’s outstanding
   preference share debt.
-  The earnings of Discovery and Momentum Metropolitan are also equity
   accounted until 8 December 2021, the date on which the unbundling of
   RMI’s shareholdings in these entities met the accounting definition of
   being highly probable.
-  The financial results of all these investee companies are treated as
   discontinued operations in the RMI group financial results.

The   unbundling of    RMI’s  shareholdings  in     Discovery   and   Momentum
Metropolitan was finalised on 25 April 2022.

The following non-recurring, material items, originating from the sale of
Hastings and the unbundling of RMI’s shareholdings in Discovery and
Momentum Metropolitan, influence RMI’s financial results for the year ended
30 June 2022 (current period):

-  The profit on the sale of Hastings of R4.7 billion (including
   reclassification of accumulated comprehensive income to the income
   statement), which is excluded from headline earnings and normalised
   earnings.
-  The gain on the distribution of RMI’s shareholdings in Discovery and
   Momentum Metropolitan of R15.2 billion (including reclassification of
   accumulated comprehensive income to the income statement), which is
   also excluded from headline earnings and normalised earnings. This
   amount comprises the difference between the carrying amount and the
   fair value of the investments in Discovery and Momentum Metropolitan on
   20 April 2022, the first day RMI shares traded “ex” the entitlement to
   receive the unbundled Discovery and Momentum Metropolitan shares and
   the cumulative comprehensive income reclassified to the income
   statement.

The following guidance is provided to RMI shareholders regarding the
group’s expected earnings for the year ended 30 June 2022:

                             Reported      Guidance for the year ended
                           year ended             30 June 2022
                              30 June       Expected %
                                 2021        increase/     Expected range
                              (cents)       (decrease)            (cents)

Normalised earnings per         231.4   (12%) to (22%)     180.5 to 203.6
share
Headline earnings per           191.6    (7%) to (17%)     159.0 to 178.2
share
Earnings per share              189.2     668% to 678%         1 453.1 to
                                                                  1 472.0

RMI regards normalised earnings (which excludes non-operational items and
accounting anomalies) as the key indicator of the group’s operational
performance.

The financial information on which this trading statement is based has not
been reviewed and reported on by the group’s external auditor.

RMI’s financial results for the year ended 30 June 2022 are expected to be
released on SENS on Thursday, 22 September 2022.

Rosebank
20 September 2022

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 20-09-2022 09:05:00
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