Further trading statement for the six months ended 30 June 2015 ANCHOR GROUP LIMITED (formerly Andotorque Investments Proprietary Limited) (Incorporated in the Republic of South Africa) (Registration number 2009/005413/06) (“Anchor” or “the Company”) ISIN Code: ZAE000193389 JSE Code: ACG FURTHER TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2015 In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on will differ by more than 20% from that of the previous corresponding period. Further to the initial trading statement issued on 10 March 2015, a review of the financial results for the six months ended 30 June 2015 by management has indicated that: - Earnings per Share (“EPS”) and Headline Earnings per share (“HEPS”) are expected to be in a range of 19 to 21 cents, representing an increase of between 65% and 85% on the comparable EPS and HEPS of 11.5 cents for the six months ended 30 June 2014. Adjusted headline earnings are calculated by the Company in order to reflect the sustainable earnings of the group. Adjusted HEPS for the six months ended 30 June 2015 will also range between 19 and 21 cents per share, representing an increase of between 38% and 58% compared to the prior period adjusted HEPS of 13.7 cents per share. This is shown in the table below (6 month periods): Jun-14 Jun-15 Range EPS 11.5c 19c - 21c 65% - 85% HEPS 11.5c 19c - 21c 65% - 85% Adjusted HEPS 13.7c 19c -21c 38% - 58% The factors which contributed to the change in earnings were as follows: - A R6.4 billion (74%) increase in assets under management and advice to R15 billion (31 Dec 2014: R8.6 billion). This is comprised of assets under management of R13.5 billion (31 Dec 2014: R7.3 billion) and assets under advice of R1.5 billion (31 Dec 2014: R1.3 billion). Of this increase, R3.8 billion was by way of the acquisition of Methwold Investments Proprietary Limited with effect from 1 June 2015. Anchor Capital continued to attract organic net inflows in excess of R300 million per month. - A subdued investment environment, with the JSE All Share index rising by 1.7% for the 12 months ended 30 June 2015. - Excellent investment performance, with the flagship Anchor BCI Equity Fund the top performing fund (out of 202 funds) in the General Equity category over six months, 1 year and 2 years. The 12-month return for the 12 months ended 30 June 2015 was 30.2% compared to a peer group average of 5.5%. - An increase in costs which primarily relate to: 1) Distribution staff and partnerships throughout the country to accelerate future growth, 2) Compliance and systems to enhance the client experience, 3) Technology for a new internet based investment offering and 4) Corporate finance and legal costs relating to completed and future acquisitions. - An increase in shares in issue from 62.6 million (pre-listing) on 30 June 2014 to over 140 million at 30 June 2015. The IFRS (non-cash flow) share-based payment expense, relating to share options, also impacted costs. - The cash raised from the listing and subsequent December 2014 issue of shares for cash (combined R310 million raised) was conservatively invested. This will be marginally dilutive at the earnings per share level until deployed in accretive acquisitions. The first such completed acquisition saw R72.8 million disbursed for Methwold Investments Proprietary Limited during June 2015. The financial information on which this trading statement is based has not been reviewed or reported on by the company’s auditors. Johannesburg 13 July 2015 Designated Advisor Arbor Capital Sponsors Proprietary Limited Date: 13/07/2015 07:59:00 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.