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) Date: 31/05/2013 10:22:00 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.