ZEDER INVESTMENTS LIMITED - SOTP and recurring headline earnings, trading statement

SOTP and recurring headline earnings, trading statement

ZEDER INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2006/019240/06
Share code: ZED
ISIN number: ZAE000088431
("Zeder")

SOTP AND RECURRING HEADLINE EARNINGS

Zeder, an investment holding company, continues to use
the   sum-of-the-parts  (“SOTP”)   value   and   recurring
headline earnings per share benchmarks to provide
management and investors with a more realistic and
transparent way of evaluating Zeder’s performance.

Zeder’s SOTP value is calculated using the quoted market
prices for all JSE-listed and over-the-counter (“OTC”)
traded investments, and market related valuations for
unquoted, unlisted investments. Zeder’s see-through SOTP
value, however, is calculated on the exact same basis
apart from using the see-through JSE-listed market price
for Agri Voedsel’s investment in Pioneer Foods instead of
Agri Voedsel’s own OTC share price. Zeder’s recurring
headline earnings is the sum of its effective interest in
that of each of its underlying investments. The result is
that investments in which Zeder holds less than 20% and
are generally not equity accountable in terms of
accounting standards, are included in the calculation of
consolidated recurring headline earnings.

TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited,
a listed company is required to publish a trading
statement as soon as it becomes reasonably certain that
the financial results for the next period to be reported
on will show a 20% or more difference from those of the
previous corresponding period.

Zeder hereby advises     that   a   reasonable   degree   of
certainty exists that:

1.   Its SOTP value per share as at 31 August 2013 will
     be between R4.20 and R4.40 per share, or between
     5.3% and 10.3% higher than that as at 28 February
     2013;

2.   Its see-through SOTP value per share as at 31
     August 2013 will be between R4.60 and R4.80 per
     share, or between 5.7% and 10.3% higher than that as
     at 28 February 2013; and

3.   For the 6 months ended 31 August 2013:

-        Recurring headline earnings per share will be
         between 9.0 cents and 9.4 cents, or between 5.9% and
         10.6% higher than that for the 6 months ended 31
         August 2012;

-        Headline earnings per share will be between 7.2
         cents and 7.6 cents, or between 22.0% and 28.8%
         higher than that for the 6 months ended 31 August
         2012; and

-        Attributable earnings per share will be between 10.4
         cents and 10.8 cents, or between 1.8% and 5.5% lower
         than that for the 6 months ended 31 August 2012.

The increase in recurring headline earnings per share was
mainly due to improved contributions from Capespan, Zaad
and Kaap Agri during the period under review. However,
the positive effect of the aforementioned was to some
extent offset by:

     -   The cash proceeds from the disposal of the bulk of
         Zeder’s Capevin Holdings shares yielded a lower
         return than what the Capevin Holdings investment did
         during the comparative period; and

     -   As anticipated, the investment in Chayton, a start-
         up business in its development phase, incurred a
         loss.

The aforementioned, coupled with a decrease in non-
recurring costs incurred by investee companies during the
period under review, resulted in the increase in headline
earnings per share.

The decrease in attributable earnings per share was
mainly as a result of less non-headline gains made within
Zeder’s investment portfolio during the period under
review.

This financial information has not been reviewed or
reported on by the auditor of Zeder. The unaudited
results for the 6 months ended 31 August 2013 will be
published on or about 7 October 2013.

Stellenbosch
2 October 2013

Sponsor
PSG Capital

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