Trading Statement for the Six Months Ended 31 December 2015 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 2015 Italtile is currently finalising its results for the six months ended 31 December 2015. The Group’s basic earnings per share (“EPS”) will be between 43.7 cents and 45.1 cents, reflecting an increase of between 19% and 23% compared to the previous corresponding period ended 31 December 2014, being 36.7 cents. Headline earnings per share (“HEPS”) will be between 42.8 cents and 44.3 cents, reflecting an increase of between 20% and 24% (2014: 35.7 cents). System-wide turnover for the six months ended 31 December 2015 will be between 12% and 15% higher than the prior comparative period (2014: R2.72 billion), while trading profit will be between 15% and 19% higher (2014: R459 million). The performance reported for the six months is primarily attributable to: - Management’s commitment to instilling retail excellence across the key customer-facing components of the Group’s offering, which resulted in improved levels of customer satisfaction and increased sales for the period; - the benefits realised from implementation of the Business Optimisation Programme (“BOP”) in the Group’s Supply Chain and Support Services divisions and expansion of the programme into the Retail brand operations; and - the Group’s strategic investments in its principal local suppliers, Ceramic Industries (Pty) Ltd and Ezeetile, which delivered pleasing returns and continued to support the business’s growth agenda. The total contribution to Group profits from these associates rose between 62% and 65%. 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 2015 are expected to be published on SENS on or about 11 February 2016. Johannesburg 25 January 2016 Sponsor Merchantec Capital Date: 25/01/2016 07:30:00 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.