Trading update GROUP FIVE LIMITED (Incorporated in the Republic of South Africa) (Registration number 1969/000032/06) Share code: GRF ISIN: ZAE 000027405 ("Group Five" or "the company" or "the group") TRADING UPDATE Shareholders are advised that, for the year ended 30 June 2013, the group expects: • Headline earnings per share (“HEPS”) to be between 145%-165% higher (284 cents per share to 307 cents per share) than the HEPS of 116 cent per share for the previous corresponding period; • Fully diluted earnings per share (“FDEPS”) and Earnings per share (“EPS’) to be between 265 cents per share and 290 cents per share against the loss of 288 cents per share for the previous corresponding period; and • Fully diluted headline earnings per share from continuing operations (“FDHEPS from continuing operations”) to be between 75% - 95% higher (310 cents per share to 345 cents per share) than the FDHEPS from continuing operations of 177 cents per share for the previous corresponding period. RESULTS IN CONTEXT F2013 was impacted by an increase to earnings, due to a pension fund surplus on actuarial valuation, as well as a charge against earnings, as a result of the implementation of the revised BBBEE ownership transaction, the net effect of which was not material to the group’s results for the year. The guidance provided above includes - a provision for any administrative penalty on four contracts that do not fall within the group’s leniency agreement with the Competition Commission, - the remnant operating losses and impairment incurred in the Construction Materials businesses prior to their sale or transfer - Close-out costs for the group’s Middle East operations. The underlying performance of all the group’s businesses was pleasing in the context of weak domestic markets, and in line with expectations. Emphasis on a larger geographic footprint for more of the group’s business units, the beneficial contribution of the group’s strategic positioning for annuity-type businesses of Investments and Concessions, Manufacturing and operations and maintenance contracts as well as the group’s strong position in African mining and energy and its leading position in the domestic water and power sector has mitigated, to some extent, the effects of continued fragility in the South African building and civil engineering markets. This is reflected in order book stability which has provided the base for the anticipated improvement in the group’s cautiously positive outlook. COMPETITION COMMISSION SOUTH AFRICA The group initiated its own comprehensive internal investigations, with regards to anti-competitive behaviour, in 2009 and was a major contributor of information to the Competition Commission’s investigation into the sector for the last four years. The group believes these actions have demonstrated its commitment to ensuring ethical business in the construction industry. The group remains engaged with the Competition Commission, and continues to support its investigation into the construction industry which has provided the group a leniency position on 25 contracts. The group believes its action have assisted in a change in behaviour in the industry. In line with the group’s latest SENS announcement issued on the 24 th of June 2013, based on evidence suggested by the Competition Commission and their recent assessment thereof, the probability of an administrative penalty on up to four remaining projects only materialised in late June 2013 and are now the subject of current settlement discussions. Supported by its internal risk assessment and independent senior counsel opinion, the group has quantified its potential exposure and has made provision for a fine, the value of which is not disclosed at this time, although the effect thereof is included in the guidance provided in this trading update. CONSTRUCTION MATERIALS Good progress has been made with the disposal of the discontinued Construction Materials businesses, with the majority of the businesses transferred to new owners, and cash received. The final transaction has been agreed and is in the process of implementation. The guidance given above includes the remnant operating losses incurred in the businesses prior to their transfer and the impairment of R11million disclosed with the H1 F2013 trading results. MIDDLE EAST Good progress has been made in the group’s operational withdrawal from the region with contract finalisation and close-outs, reduction in debtors outstanding, and a significant reduction in the risk profile, although with some close out costs incurred in line with recent guidance. 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 the 12th of August 2013 when the group will be updating the market in a presentation in Johannesburg on the same day, and a presentation in Cape Town on the 13th of August 2013. The presentation will be available on the 12th of August 2013 for all stakeholders on the group’s website, www.groupfive.co.za. Johannesburg 22 July 2013 Investment Bank and Sponsor Nedbank Capital Date: 22/07/2013 01:43:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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