CLOVER INDUSTRIES LIMITED - Trading Statement

Trading Statement

Clover Industries Limited
(Incorporated in the Republic of South Africa)
(Registration number 2003/030429/06)
Ordinary Share code: CLR ISIN No: ZAE000152377
("Clover" or "the Company")

TRADING STATEMENT

In terms of the JSE Limited Listings Requirements, companies are required to provide guidance to the
market when they are satisfied that a reasonable degree of certainty exists that the financial results for the
current reporting period will differ by at least 20% from the results of the previous corresponding reporting
period.

Although Clover is not yet in a position to forecast its financial performance for the year to 30 June 2014
accurately, a number of factors which were highlighted at the time of the interim results have continued to
negatively impact sales volumes growth and therefore earnings growth in the current period.

As a result, shareholders are advised that the Company expects headline earnings per share ("HEPS") and
earnings per share ("EPS") for the year ending 30 June 2014 to be more than 20% lower than the
corresponding reporting period of the previous year (the year ended 30 June 2013).

The decreases are attributable to:-

-   a very constrained trading environment in which the full recovery of raw milk price increases and
    strong overall inflationary cost pressures, specifically relating to packaging and ingredient costs, will not
    be achieved;

-   the adverse effect of the further selling price increases on sales volumes;

-   a decline in principal volumes resulting in lower services rendered fees earned by Clover; and

-   Rising inflation which is progressively eroding sales volumes, especially in the non-alcoholic beverages
    segment.

Clover is reliant on a sustainable milk supply and will continue to actively address any risks to its milk supply
which may be detrimental to the long term execution of its strategy, hence the raw milk prices were
increased over the past few months. It is important to note that as a result of the lead and lag effect, the
increases in raw milk prices will in all probability only be recoverable in the market at a later stage.

Clover has decided to apply a gradual approach to selling price increases that will be more acceptable to
consumers and protect Clover's hard fought market shares. In the current challenging environment, Clover
will continue to focus on its longer term strategy of launching new products and platforms, whilst
remaining mindful of the expectations of shareholders.

Clover will release an updated trading statement confirming ranges for the HEPS and EPS once it has
reasonable certainty in this regard.

The Board is pleased to announce that negotiations referred to in the cautionary announcements released
on the Stock Exchange News Service of the JSE on 5 March 2014 and 16 April 2014 respectively
have been concluded and shareholders are advised that a full terms announcement will also be released
later today.

The forecast financial information on which this trading statement is based has not been reviewed and
reported on by the Company’s external auditors.

Johannesburg
8 May 2014

Merchant Bank and Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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