GROUP FIVE LIMITED - Trading Update

Trading Update

GROUP FIVE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/000032/06)
Share code: GRF ISIN: ZAI 000027405
(“Group Five” or “the group” or “the company”)



TRADING STATEMENT

Group Five shareholders are advised that, for the six months ended 31 December 2012, the
group expects:

       Fully diluted headline earnings per share (“FDHEPS”) to be between 10%- 20% higher
       (143 cents per share to 156 cents per share);
       Headline earnings per share (“HEPS”) to be between 10%-20% higher (143 cents per
       share to 156 cents per share);
       Fully diluted earnings per share (“FDEPS”) to be between 50% - 60% higher (134
       cents per share to 142 cents per share); and
       Earnings per share (“EPS”) to be between 50% - 60% higher (134 cents per share to
       142 cents per share)


than the FDHEPS of 130 cents per share, the HEPS of 130 cent per share, the FDEPS of 89
cents per share and the EPS of 89 cents per share published for the previous corresponding
period.

The group continues to account for the Construction Materials segment as a discontinued
operation and as a Non-Current Asset Held for Sale. Adjusting the H1 F2012 reported results
to reflect operating losses from this segment in headline earnings, comparable with the
treatment adopted for the full year F2012 and this current set of results, reduces the
comparable H1 F2012 FDHEPS and HEPS from 130 cents per share, as reported above, to 93
cents per share.

In addition, and to assist for comparative purposes, the following information has been
provided:
       Earnings for the current period include an upward pension fund valuation
       adjustment of R9m (net of taxation).
       Earnings for the current period include upward fair value adjustments on service
       concessions of R29m, in line with guidance previously provided.
       Although approved by shareholders on the 6 th November 2012, the effective date of
       the group’s Broad Based Black Economic Empowerment (“BBBEE”) ownership
       transaction is January 2013 and thus the financial effects of the transaction will be
       recorded in H2 F2013. Accordingly, the guidance provided above excludes:
           o the charge to earnings as a result the implementation of the revised BBBEE
               ownership transaction;
           o the effect on basic and weighted average number of shares in issue as a
               result of the implementation of the approved Izakhiwo Imfundo Bursary
               Trust; and
           o the effect on basic and weighted average number of shares in issue as a
               result of the implementation of the approved Black Professionals Staff Trust.
       The difference between earnings and headline earnings in H1 F2013 is mostly
       attributable to a downward adjustment to the carrying value of the Construction
       Materials assets of R11.5m


OPERATIONAL UPDATE

The group’s businesses performed in line with management expectations and in accordance
with the guidance provided in November 2012 (previously made available to all
stakeholders on the group’s website), which can be summarised as follows:

Construction and Engineering & Construction
       These businesses demonstrated consistent performance, although at the lower
       range of margin guidance. The exception was the Building & Housing segment which
       continues to be affected by local market margin pressure.
       The results include Middle East holding costs in line with previous guidance and a
       trading loss of R10m.
Construction Materials
       The operating losses incurred were in line with management’s guidance.
Manufacturing
       Manufacturing continued to perform well and in line with guidance.
Investments & Concessions
       Despite sluggish domestic concessions and PPP activities, as well as the economic
       pressures in Europe, Investments and Concessions performed ahead of expectations.


REPORTING

The above information has not been reviewed or reported on by Group Five’s auditors. The
group’s results will be released on SENS on 13th February 2013 when the group will be
updating the market on its business in a presentation in Johannesburg on the same day, and
in Cape Town on 14th February 2013. The presentation will be available for all stakeholders
on the group’s website, www.groupfive.co.za.

Johannesburg
28 January 2013

Investment Bank and Sponsor
Nedbank Capital

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