SANTOVA LIMITED - Trading Statement

Trading Statement

SANTOVA LIMITED
("Santova" or "the Company")
(Registration Number 1998/018118/06)
Share Code: SNV
ISIN: ZAE000159711

TRADING STATEMENT

In terms of the Listings Requirements of JSE Limited, companies are required to publish a
trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the
financial results for the period to be reported on will differ by 20% or more from the financial
results of the previous corresponding period.

Shareholders are advised that Santova expects headline earnings per share for the six month
period ended 31 August 2013 to increase by between 60% and 70% and basic earnings per share
for the six month period ended 31 August 2013 to increase by between 20% and 30%, compared
to the results reported in the previous corresponding period.

It is important to note that headline earnings per share has been significantly impacted in the
current reporting period by the once-off inclusion in terms of IFRS, of two material items in
headline earnings. These items are:

     - A fair value gain of R5.2 million on the subsequent re-measurement of a portion of the
       contingent purchase consideration payable in respect of the acquisition of W.M.
       Shipping Limited, following the conclusion of the first warranty period as detailed
       below;
     - The recognition of a financial liability of R3 million arising on the termination of the
       lease for the premises previously occupied by Santova Logistics South Africa (Pty)
       Limited, as detailed in the subsequent events note to the February 2013 Annual
       Integrated report.

Therefore, a more appropriate basis for the measurement of the actual performance by Santova in
this period from on-going operations is the computation of normalised headline earnings per
share, after the elimination of the once-off effect of these items. Thus Santova expects
normalised headline earnings per share for the six month period ended 31 August 2013 to
increase by between 25% and 35%, compared to the headline earnings per share reported in the
previous corresponding period.

ACQUISITION OF W.M. SHIPPING LIMITED – RESULTS OF THE CONCLUSION OF
THE FIRST WARRANTY PERIOD

As detailed in the circular to shareholders dated 21 December 2012, the first 12 month warranty
period relating to the acquisition of W.M Shipping Limited, ended on 31 August 2013.

In terms of the sale agreement, a warranted net profit before tax for the first warranty period of
GBP745,980 was achieved, versus the targeted net profit before tax of GBP750,000. The effect
of this is that the Sellers will receive a first warranty payment of GBP395,980 payable on or
before 30 October 2013, versus the maximum agreed amount of GBP400,000.

The secondary effect of this shortfall in the first warranted profit target is that the Sellers can no
longer qualify for the additional once-off bonus purchase price payment of GBP406,989,
resulting in the fair value adjustment to the contingent purchase consideration liability, as
detailed above. They do, however, continue to qualify for the potential upside payment of 15.8%
of so much of the cumulative net profits as exceed GBP1.5 million over the two warranty
periods, ending on 31 August 2014.

The narrow shortfall in the warranted profit target for the first warranty period is not a cause for
concern due to the fact that the warranted profit amount is calculated, in terms of the sale
agreement, on a very specific formula and in line with United Kingdom Financial Reporting
Standards for Smaller Entities. Whereas the actual profits generated and consolidated into the
Group’s results are in accordance with International Financial Reporting Standards (“IFRS”) and
they exceed the warranted profit target. Therefore the Board of Directors of Santova is satisfied
with the operating performance of W.M. Shipping Limited and its ability to generate the
expected level of future returns.

This trading statement and SENS announcement has not been reviewed or audited by the
Company`s auditors, Deloitte & Touche.

The Company’s interim results for the six months ended 31 August 2013 are expected to be
published on SENS on 30 October 2013.

Durban
22 October 2013
Sponsor and Corporate Advisor
River Group

Date: 22/10/2013 12:14:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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