CONTROL INSTRUMENTS GROUP LIMITED - Trading Statement

Trading Statement

CONTROL INSTRUMENTS GROUP LIMITED – TRADING STATEMENT
(Incorporated in the Republic of South Africa)
(Registration number: 1964/003987/06)
Share Code: CNL
ISIN: ZAE000001665
(“Control Instruments” or “the Company” or “the Group”)


TRADING STATEMENT


In terms of the JSE Limited Listings Requirements, companies are required to publish a
trading statement as soon as it is reasonably certain that their financial results for the current
reporting period will differ from the previous corresponding period by more than 20%.

Since exiting the international original equipment manufacturing (“OEM”) operations at the
end of 2011, the Group’s stated intention has been to reposition and refocus itself as a
predominantly automotive aftermarket business.

During the first half of 2012 the Board of Directors decided to disinvest from the remaining
non-performing OEM business, Pi Shurlok (Proprietary) Limited, based in Pietermaritzburg.
The net write-off of the investment, inclusive of Group commitments and trading losses for
the six months ended 30 June 2012 amounts to approximately R58.6 million. The impact of
this will be reflected in the results for discontinued operations for the six months ended
30 June 2012.

The exit from the OEM business will reduce the Group’s exposure to the risks and cost of
doing business in the OEM market. It will also result in a reduction in capital expenditure and
in the working capital requirements of the Group.

For the six months ended 30 June 2012, earnings per share from continuing operations is
expected to be between 4.5 cents and 5.2 cents, compared with an earnings per share of 1.3
cents (restated) in the corresponding period in the previous year.

The loss per share from discontinued operations is expected to be between 40.0 cents and
44.0 cents, compared with a loss per share of 6.6 cents (restated) in the corresponding
period in the previous year.

In total, the loss per share is expected to be between 35.5 cents and 38.8 cents, compared
with a loss per share of 5.3 cents in the corresponding period in the previous year.

Headline earnings per share from continuing operations is expected to be between 6.0 cents
and 7.0 cents, compared with a headline earnings per share of 1.9 cents (restated) in the
corresponding period in the previous year.

The headline loss per share from discontinued operations is expected to be between 3.0
cents and 3.5 cents, compared with a headline loss per share of 6.6 cents (restated) in the
corresponding period in the previous year.
In total, the headline earnings per share is expected to be between 3.0 cents and 3.5 cents,
compared with a headline loss per share of 4.7 cents in the corresponding period in the
previous year.

The financial information on which this trading statement is based has not been reviewed or
reported on by the Group’s auditors.

The results of the Company for the six months ended 30 June 2012 are expected to be
released on SENS on or about 27 September 2012.

Cape Town
13 September 2012

Sponsor
Investec Bank Limited

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