SABVEST LIMITED - Change in Accounting Policy

Change in Accounting Policy

SABVEST LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1987/003753/06
ISIN: ZAE000006417 – ordinary shares
ISIN: ZAE000012043 – “N” ordinary shares
Share code: SBV – ordinary shares
Share code: SVN – “N” ordinary shares

Change in Accounting Policy

Shareholders are advised that:

1.    Sabvest is an investment group whose current accounting policy is to fair
      value listed investments and small unlisted investments and equity
      account investments where the interest is between 20% and 50%
      (“associates”).


2.    Sabvest has historically also provided the intrinsic value of all its
      investments in its annual audited financial statements as well as the
      shareholders’ funds at intrinsic value. The intrinsic value of the associates
      represents the directors’ fair value of the associates. Shareholders’ funds
      at intrinsic value represent the net asset value using fair value for all
      investments including associates after deducting notional deferred tax that
      would be payable should the investments be sold at fair value.


3.    The Board of Sabvest is of the view that this hybrid approach, which is
      permitted under IAS28, results in a material under-statement of
      shareholders funds, investments and deferred tax in its IFRS accounts
      and that it would be in the interests of stakeholders to change its
      accounting policy to fair value all of its investments (as done by a number
      of other listed investment groups), which will incorporate the directors’
      intrinsic valuation of the investments into the results and financial position.


4.    Accordingly Sabvest will elect the exemption permitted in IAS28 to fair
      value associates and thereby fair value its entire portfolio with effect from
     1 January 2013. This will also facilitate compliance with the changes to
     IFRS10 for investment companies which are effective on 1 January 2014
     but which may be early adopted.


5.   This change in accounting policy necessitates comparatives be adjusted
     to provide information on a consistent basis.

6.   To the extent that trading statements are required in the current year,
     these will be calculated relative to the revised comparative financial results
     for the corresponding period. The revised comparatives, taking into
     account the change in accounting policy, will be included in the interim
     and final results announcements for 2013. To facilitate shareholders’
     appreciation of the change the restated statements of financial position
     for the financial years 2011 and 2012 are set out below. These restated
     statements incorporate the directors intrinsic value of associates as
     reported in the audited annual financial statements for the years 31
     December 2011 and 31 December 2012


CONSOLIDATED STATEMENT OF FINANCIAL POSITION


                                                  Restated at          Restated at
                                                   31/12/2012           31/12/2011
                                                        R’000                R’000


NON-CURRENT ASSETS                                    975 780             838 327
PROPERTY, PLANT AND EQUIPMENT                            971                  616


SHARE TRUST RECEIVABLES                                 2 759               4 131
INVESTMENT HOLDINGS                                   972 050             833 580
 ASSOCIATES                                           741 600             677 644
 LONG-TERM                                            230 450             155 936
CURRENT ASSETS                                         64 304              18 385
FINANCE ADVANCES AND RECEIVABLES                       22 061               5 943
OTHER FINANCIAL ASSETS                                      0               7 727
SHORT TERM INVESTMENTS                                 38 489               2 363
CASH BALANCES                                           3 754               2 352
  

TOTAL ASSETS                                        1 040 084             856 712


ORDINARY SHAREHOLDERS’ EQUITY                         854 652             721 520
NON-CURRENT LIABILITIES                               168 776             119 792
INTEREST-BEARING DEBT                                  40 000              40 000
DEFERRED TAX LIABILITY                                128 776              79 792
CURRENT LIABILITIES                                    16 656              15 400
INTEREST-BEARING DEBT                                   8 697               7 915
ACCOUNTS PAYABLE                                        7 959               7 485


TOTAL EQUITY AND LIABILITIES                        1 040 084             856 712


NO. OF SHARES IN ISSUE – 000’S                         46 061              46 172


NET ASSET VALUE PER SHARE – cents                       1 855               1 563
NET ASSET VALUE PER SHARE WITH
INVESTMENTS AT DIRECTORS’ VALUATION – cents             1 855               1 563





Christopher Seabrooke                    Raymond Pleaner
CEO                                      CFO


Sandton
31 May 2013

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

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