Updated 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") UPDATED TRADING STATEMENT Shareholders are referred to the announcement released on the Stock Exchange News Service ("SENS") on 8 May 2014 wherein the Company advised that headline earnings per share ("HEPS") and earnings per share ("EPS") for the year ended 30 June 2014 are expected to be more than 20% lower than the previous year (the year ended 30 June 2013). Shareholders are now advised that the Company expects HEPS for the year ended 30 June 2014 to be between 14,8% and 19,8% lower than the previous year (FY 2013: HEPS 119,9 cents). Further, EPS for the year ended 30 June 2014 is expected to be between 20,7% and 25,7% lower than the prior year (FY 2013: EPS 133,1 cents). Major factors impacting upon the financial performance of the Company highlighted in the SENS announcements of 8 May 2014 and 7 February 2014 as well as at the time of the interim results continued to negatively impact upon sales volume growth and therefore earnings growth in the current period. These major factors are: - a very constrained trading environment which limited selling price increases to recover raw milk price and other inflationary costs; particularly relating to packaging and ingredients; - an adverse effect on sales volumes, despite Clover’s strategy of gradually increasing selling prices; - a decline in principal volumes affecting fees earned for services rendered; - rising inflation which continues to progressively erode sales volumes, especially in the non-alcoholic beverages segment; - a shortage of raw milk supply during the last quarter of the financial year which negatively impacted upon cheese and UHT sales volumes. The normal seasonal low milk intake was exacerbated by Clover rebalancing its milk purchasing agreements during the same period in preparation for its exit from supplying raw milk at cost to Danone Southern Africa on 1 January 2015 (as announced on SENS on 18 September 2013). Clover was presented with an opportunity to reduce its milk supply earlier during the year, and it opted to do so despite being aware that it will lead to a temporary milk shortage during the winter of 2014, to avoid the potential damaging impact of a general volume reduction on Clover’s remaining producers. Clover will continue to focus on its longer term strategy of launching new higher margin, value added products and platforms, whilst remaining mindful of shareholder expectations. The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Company’s external auditors. The Company expects to release its annual financial results for the year ended 30 June 2014 on SENS on or about 16 September 2014. Johannesburg 21 August 2014 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 21/08/2014 04:00:00 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. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.