ZEDER INVESTMENTS LIMITED - Trading statement

Trading statement

ZEDER INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2006/019240/06
Share code: ZED
ISIN number: ZAE000088431
(“Zeder”)

SUM-OF-THE-PARTS (“SOTP”) VALUE AND RECURRING HEADLINE EARNINGS

Zeder, an investment holding company, continues to use SOTP value
and the recurring headline earnings per share benchmarks to
provide management and investors with a realistic and transparent
way of evaluating Zeder’s performance.

Zeder’s SOTP value is calculated using the quoted market prices
for all JSE-listed investments, and market-related valuations for
unlisted investments.

Zeder’s recurring headline earnings is the sum of its effective
interest in that of each of its underlying investments. The
result is that investments in which Zeder holds less than 20% and
are generally not equity accountable in terms of accounting
standards, are included in the calculation of consolidated
recurring headline earnings. One-off items are excluded from
recurring headline earnings.

RESTATEMENT OF COMPARATIVES

The comparative results for the six-month period ended 31 August
2014 have been restated following Capespan Group Limited’s
(“Capespan”) change in the accounting treatment of an existing
lease arrangement, as well as the early adoption of amendments to
its accounting for bearer plant biological assets.

The aforementioned restatements had the following impact on
Zeder’s results for the previous financial period ended 31 August
2014:

     -   Recurring headline earnings per share amounts to 14.9
         cents instead of 16.4 cents;

     -   Headline earnings per share amounts to 14.5 cents instead
         of 16.0 cents; and

     -   Attributable earnings per share amounts to 13.7 cents
         instead of 15.1 cents.

It should be noted that the aforementioned restatements were
already accounted for in Zeder’s audited financial results for
the year ended 28 February 2015. The full particulars of the
aforementioned restatements will be included in the announcement
containing Zeder’s unaudited financial results for the six months
ended 31 August 2015.

TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited, a
listed company is required to publish a trading statement as soon
as it becomes reasonably certain that the financial results for
the next period to be reported on will show a 20% or more
difference from those of the previous corresponding period.

Zeder hereby advises that a reasonable degree of certainty exists
that:

1.   Its SOTP value per share as at 31 August 2015 was R10.37,
     being 13.0% higher than the R9.18 reported as at 28 February
     2015;

2.   For the six-month period ended 31 August 2015:

     -   Recurring headline earnings per share from investments
         will be between 21 cents and 22 cents, being between 9.4%
         and 14.6% higher than that of the six-month period ended
         31 August 2014;

     -   Recurring headline earnings per share will be between
         15.2 cents and 15.6 cents, being between 2.0% and 4.7%
         higher than that of the six-month period ended 31 August
         2014;

     -   Headline earnings per share will be between 5.9 cents and
         6.3 cents, being between 56.6% and 59.3% lower than that
         of the six-month period ended 31 August 2014; and

     -   Attributable earnings per share will be between 4.2 cents
         and 4.6 cents, being between 66.4% and 69.3% lower than
         that of the six-month period ended 31 August 2014.

The increase in recurring headline earnings per share was due to
improved earnings contributions from the majority of Zeder’s
underlying investments, off-set by the higher base management fee
payable following Zeder’s increased market capitalisation in the
six-month period under review.

Zeder’s headline earnings per share decreased due to the higher
non-recurring performance fee incurred during the period under
review following Zeder’s share price outperformance of its
benchmark hurdle being the GOVI-index yield plus 4%, adjusted for
dividends. In addition, Zeder incurred marked-to-market losses on
equity securities during the period under review as opposed to
significant marked-to-market gains during the comparative period
in the prior year, relating predominantly to Zeder’s direct
interest in Pioneer Food Group Limited (“Pioneer Foods”), which
has subsequently been reclassified to investments in associates
following the Agri Voedsel Limited merger.

Attributable earnings per share decreased by a higher percentage
than headline earnings per share mainly because of non-headline
losses incurred on the impairment and disposal of equity
securities underlying the Pioneer Foods B-BBEE scheme.

This financial information has not been reviewed or reported on
by the auditor of Zeder. The unaudited results for the six-month
period ended 31 August 2015 will be published on or about 5
October 2015.

Stellenbosch
30 September 2015

Sponsor
PSG Capital

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