Trading Statement for the Year Ended 30 June 2016 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 YEAR ENDED 30 JUNE 2016 Italtile is currently finalising its results for the year ended 30 June 2016. The Group’s basic earnings per share (“EPS”) will be between 86.5 cents and 89.6 cents (2015: 75.9 cents), representing an increase of between 14% and 18% compared to the previous corresponding period ended 30 June 2015. Headline earnings per share (“HEPS”) will be between 85.2 cents and 88.1 cents (2015: 71.6 cents), representing an increase of between 19% and 23% compared to the previous corresponding period ended 30 June 2015. Earnings growth includes the impact of the following: - The increased contribution of R96 million (2015: R62 million) to Group profit from associates Ceramic Industries Proprietary) Limited and Ezee Tile; - Net finance income of R23 million (2015: R11 million) attributable to improved average net cash holdings of the Group; - A normalisation of the effective taxation rate as non- recurring taxation benefits were recorded in the previous corresponding period; and - The absence of once-off gains of R33 million (adjusted for in headline earnings) reported in the previous corresponding period derived from: - the reclassification of a subsidiary (SER-Export s.p.a.) to an associate following the disposal by the Group of a portion of its shareholding in this company (gain of R14 million); and - the reclassification to income of foreign currency translation reserve related to Italtile Mauritius Proprietary Limited, previous bearer of certain of the Group’s non-South African trademarks, following the liquidation distribution of that company’s net assets to South Africa (gain of R19 million). System-wide turnover for the year ended 30 June 2016 will be between 13% and 15% higher than the prior comparative period (2015: R5.22 billion). This solid performance reported for the year is attributable to continued expansion of the Group’s Business Optimisation Programme across key areas of the Group, which facilitated further improvements within the business and a gain in market share from competitors. 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 year ended 30 June 2016 are expected to be published on SENS on or about 25 August 2016. Johannesburg 28 July 2016 Sponsor Merchantec Capital Date: 28/07/2016 12:00:00 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.