Trading statement ITALTILE LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1955/000558/06) Share code: ITE ISIN: ZAE000099123 (“Italtile” or “the Group”) TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2014 Italtile is currently finalising its results for the six months ended 31 December 2014. The Group’s basic earnings per share (“EPS”) from continuing operations will be between 36.3 cents and 36.9 cents, reflecting an increase of between 27% and 29% compared to the previous corresponding period ended 31 December 2013 being 28.6 cents and the headline earnings per share (“HEPS”) from continuing operations will be between 35.5 cents and 36.1 cents, reflecting an increase of between 27% and 29%, compared to the previous corresponding period ended 31 December 2013 being 28.0 cents. HEPS have been adjusted for the post-taxation impact of an R11 million profit on sale of property. Trading profit growth from continuing operations of between 20% and 22% will translate into profit after tax growth from total operations of between 35% and 37%, as a result of the following: - Profit on sale of property of R11 million (2013: R7 million); - A once-off IFRS2 charge related to the Italtile Staff Share Scheme of R7 million (2013: R11 million); - The increased contribution from associates, Ceramic Industries Ltd and Ezeetile, of R27 million (2013: R13 million); - Net finance income of R2 million compared with a net finance expense in the prior comparative period of R6 million related to the reduction in a long-term loan; - Once-off losses related to discontinued operations in the prior comparative period of R12 million; and - A lower effective tax rate resulting from reduced consolidated Dividend Withholding Tax charges compared with the prior corresponding period. System-wide turnover from continuing operations for the 6 months ended 31 December 2014 will be between 18% and 20% higher than the prior comparative period. The performance reported for the six months is attributable to continued focus on the Group’s business optimisation programme in key areas including IT systems, the supply chain and in store efficiencies to enhance the customer shopping experience. REVIEW OF RESULTS The information on which this announcement is based has not been reviewed or reported on by Italtile's auditors. PUBLICATION OF RESULTS The Group's results for the six months ended 31 December 2014 are expected to be published on SENS on or about 16 February 2015. Johannesburg 23 January 2015 Sponsor Merchantec Capital Date: 23/01/2015 10:15:00 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.