IMPERIAL HOLDINGS LIMITED - Trading Statement for the six months to 31 December 2016

Trading Statement for the six months to 31 December 2016

Imperial Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number: 1946/021048/06
ISIN: ZAE000067211
Share code: IPL
(”Imperial” or the “Company’ or the “Group”)

TRADING STATEMENT FOR THE SIX MONTHS TO 31 DECEMBER 2016

Shareholders are referred to the CEO’s AGM statement released on the Stock
Exchange News Service on 1 November 2016, where our guidance for the year to
June 2017 was single digit revenue growth and a moderate decline in operating
profit from continuing operations, subject to stable currencies in the economies
in which we operate. This outlook remains unchanged.

For the six months to 31 December 2016 we anticipate that there will be single
digit growth in revenue and operating profit from group operations.

Earnings per Share (‘EPS’), Headline Earnings per Share (‘HEPS’) and Core
Earnings per Share( ‘Core EPS’) will be adversely affected by the following:
   - Foreign exchange losses compared to gains in the prior period on various
      monetary items including working capital, intergroup loan funding and
      hedging instruments;
   - Higher finance costs from higher costs of funding and higher debt levels,
      which resulted from delays in the receipt of proceeds from assets and
      businesses held for sale;
   - Higher amortisation of intangible assets arising from acquisitions;

In addition:
   - The prior period EPS was enhanced by profit on the sale of Neska partially
      offset by impairment of goodwill and other intangible assets which are
      eliminated from HEPS;
   - The prior period HEPS was enhanced by a foreign exchange gain from an
      internal restructuring, while the amortisation of intangible assets
      arising from acquisitions is higher in the current period. Neither of
      these are included in Core EPS.

As such, EPS, HEPS and Core EPS for the Group to 31 December 2016 are expected
to decrease from the corresponding period as follows:

                                            6 months to                6 months to
                                       31 December 2015           31 December 2016
                                                 Actual             Expected range


EPS                                              881 cents   700 cents to 640 cents
                                                                  (21% to 27% down)
HEPS                                             801 cents   700 cents to 640 cents
                                                                  (13% to 20% down)
Core EPS                                         861 cents   810 cents to 750 cents
                                                                   (6% to 13% down)

The forecast financial information in this announcement has not been reviewed or
reported on by Imperial’s auditors. This update is based on available
information at the time of publication.

Imperial will release its results for the 6 months to 31 December 2016 on the
21st February 2017.

Bedfordview
24 January 2017
Sponsor: Merrill Lynch South Africa (Pty) Limited

Date: 24/01/2017 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.