Trading Statement African Oxygen Limited (Incorporated in the Republic of South Africa) (Registration number 1927/000089/06) ISIN: ZAE000067120 JSE code: AFX NSX code: AOX (“Afrox” or the “Company” or “Group”) TRADING STATEMENT In terms of the JSE Listing Requirements, companies are required to publish a Trading Statement as soon as the company is reasonably certain the financial results for the current reporting period will differ by more than 20% from those of the previous corresponding period. In our SENS release of 28th November 2014, Afrox indicated that it was planning to embark on a significant restructure in order to achieve a step change in profitability. This was set against a back drop of soft demand for our products due to the prevailing economic conditions and intense competition. Afrox believes that these conditions are likely to continue into the medium term and that the restructure was a necessary step to ensure the sustainability of the company into the longer term. In keeping with the commitment made in the SENS announcement, where the Afrox board of directors (“Board”) indicated that it would provide further guidance to the market regarding the impact of the restructuring, the Board hereby confirms; - Afrox’s consolidated revenue for the year ended 31 December 2014 is expected to be in line with the revenue earned in the previous financial year of R5 825 million. - The ongoing impact of inflation and reduced volumes affected the Group’s EBITDA before any restructuring costs is expected to be between 5% and 10% below that of the previous year. (2014: R792 million to R836 million; 2013: R880 million) - Earnings per share for the financial year ended 31 December 2014 are expected to be between 68% and 78% lower than earnings per share of the prior year. (2014: 22,0 cents per share to 32,0 cents per share; 2013: 100,1 cents per share) - Headline earnings per share for the financial year ended 31 December 2014, are expected to be between 57% and 67% lower when compared to the headline earnings as reported for the 2013 financial year after taking into account both the provision made and impairment costs related to the restructure. (2014: 31,5 cents per share to 40,9 cents per share; 2013: 95,3 cents per share) The main contributor to this reduction in headline earnings is a R165 million provision for restructuring costs together with a R20 million write down of inventory due to the restructuring. Added back in the calculation of headline earnings per share is a R52 million impairment of assets resulting from the planned restructuring. The primary objective of the restructure is to address the Group’s fixed cost base in order to significantly improve its EBITDA margin in the medium-term. Afrox will engage a leading global business advisory firm with significant international experience in corporate restructuring and performance transformation to ensure that the restructuring is brought to a successful conclusion by the end of 2015. The information contained in this trading statement has not been reviewed or reported on by the company’s external auditors. Afrox will release its full year results to 31 December 2014 on or about 26 February 2015. 29 January 2015 Sponsor: One Capital Date: 29/01/2015 11:52:00 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.