Financial Effects Regarding The Acquisition Of Suntups Wooden Flooring Business And Withdrawal Of Cautionary Accentuate Limited (Incorporated in the Republic of South Africa) (Registration number 2004/029691/06) JSE Share code: ACE ISIN: ZAE000115986 ("Accentuate" or “the Company”) FINANCIAL EFFECTS REGARDING THE ACQUISITION OF SUNTUPS WOODEN FLOORING BUSINESS 1. INTRODUCTION Accentuate subsidiary Floorworx Africa (Pty) Limited (‘Floorworx”) has entered into an agreement with Suntups Wooden Flooring (Pty) Limited (“Suntups”) to acquire the assets and liabilities relating to the wooden flooring and decking part of Suntups (the "Agreement”) for a total purchase consideration estimated to be R8 200 000 (eight million two hundred thousand Rand), based on the estimated net asset value at the effective date as well as R1 300 000 (one million three hundred thousand Rand) for intangible assets and goodwill (the "Transaction”). The purchase will be settled by way of an issue of an estimated 7 828 456 Accentuate ordinary shares at a price based on the volume weighted average price of the shares traded during the two months preceding the effective date. As the financial effects were not disclosed in the announcement on 5 September 2013, they are set out below. 2. FINANCIAL EFFECTS OF THE TRANSACTION ON ACCENTUATE FOR THE YEAR ENDED 30 JUNE 2013 The unaudited pro forma financial effects of Accentuate before and after the Transaction are based on the audited results of Accentuate for the year ended 30 June 2013. The financial information utilised for Suntups was extracted from the unaudited management statement of Financial Position of Suntups as at 30 June 2013. Accentuate’s directors are satisfied with the quality of the management accounts utilised in preparing these financial effects. The unaudited financial effects are presented for illustrative purposes only, to provide information on how the Transaction may have impacted on the results and financial position of Accentuate. The unaudited pro forma financial effects are the responsibility of Accentuate's directors. Due to the nature of the unaudited pro forma financial effects, they may not fairly present Accentuate's financial position and the results of its operations after the Transaction. The financial effects do not purport to be indicative of what the financial results would have been had the Transaction been implemented on a different date. The unaudited pro forma financial information has been presented in a manner consistent in all respects with IFRS and Accentuate's accounting policies applied consistently throughout the period. The financial effects of the Transaction calculated on Accentuate are set out below: Before the After the % change Transaction Transaction Earnings per share (cents) (“EPS”) 8.38 8.86 5.7% Headline earnings per share (cents) (“HEPS”) 8.41 8.88 5.6% Net asset value per share (cents) (“NAV”) 1.21 1.20 (1.2%) Tangible net asset value per share (cents) (“TNAV”) 0.89 0.89 (0.5%) Weighted number of shares 105 335 517 113 163 973 7.4% Number of shares in issue 111 108 119 118 936 575 7.0% Notes: 1. The “% Change” column of the table is the result of the actual calculations whereas the “Before the Transaction” and “After the Transaction” columns of the table are rounded figures, as reflected in the audited results of Accentuate for the year ended 30 June 2013. 2. The EPS and HEPS in the “Before the Transaction” column of the table are based on the audited statement of comprehensive income of Accentuate for the year ended 30 June 2013, based on 105 335 517 Accentuate shares in issue (being the weighted number of ordinary shares in issue for the year ended 30 June 2013, net of treasury shares and shares owned by the Accentuate Share Trust). 3. The EPS and HEPS in the “After the Transaction” column of the table are based on 113 163 973 Accentuate ordinary shares in issue and the assumptions that: - the Transaction became effective on 1st July 2012 and the purchase price was settled on that date; - the purchase price was settled through the issue of 7 828 456 Accentuate ordinary shares at 82 cents . - the net cash generated would have reduced the group’s net borrowings at a before tax interest rate of 9%, yielding a pre-tax interest saving of R65 000 for the year ended 30 June 2013. 4. The NAV and TNAV in the “Before the Transaction” column of the table are based on the audited statement of financial position of Accentuate at 30 June 2013 with 111 108 119 Accentuate shares in issue. 5. The NAV and TNAV in the “After the Transaction” column of the table are based on the assumptions that the Transaction was completed on 30 June 2013 with 118 936 575 Accentuate ordinary shares in issue and the purchase price was settled through the issue of 7 828 456 Accentuate ordinary shares at 82 cents. 6. An amount of R1 300 000 (one million three hundred thousand Rand) Goodwill and Intangible Assets arose from the Transaction. Goodwill is measured as the excess of the sum of the consideration transferred, over the net of the Transaction date amounts of the identifiable assets acquired and the liabilities assumed. 7. The pro forma financial effects have not been reviewed by Accentuate’s auditors. 3. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT Shareholders are referred to the cautionary announcements dated 15 August and 5 September 2013 and are advised that the discussions referred to therein are related to the Acquisition. Accordingly, shareholders are no longer advised to exercise caution when dealing in the Company`s securities. Sandton 03 October 2013 Designated Adviser: Bridge Capital Advisors (Pty) Limited Date: 03/10/2013 02:30:00 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. 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