GROUP FIVE LIMITED - Trading statement

Trading statement

Group Five Limited
(Incorporated in the Republic of South Africa)
(Registration number 1969/000032/06)
Share code: GRF ISIN: ZAE 000027405
("Group Five" or "the Company" or "the group")

TRADING STATEMENT

Group Five shareholders are advised that, for the year ended 30 June 2016, the group expects:

   -   Fully diluted headline earnings per share (“FDHEPS”) to be between 60%-70% higher
       (326 to 347 cents per share);
   -   Headline earnings per share (“HEPS”) to be between 60%-70% higher (328 to 349
       cents per share);
   -   Fully diluted earnings per share (“FDEPS”) to be between 65%-75% higher (365 cents
       to 387 cents per share); and
   -   Earnings per share (“EPS”) to be between 65%-75% higher (366 cents to 389 cents per
       share)


than the FDHEPS of 204 cents per share, the HEPS of 205 cents per share, the FDEPS of 221
cents per share and the EPS of 222 cents per share published for the previous corresponding
year.

RESULTS CONTEXT

The group delivered a pleasing improvement in earnings for F2016 over the prior year.

This improved performance was driven by an exceptional result from the Investments &
Concessions cluster, boosted by significant fair value profit realised from the group’s Eastern
European project investment portfolio as a result of underlying project cash-flows being
materially better than those originally forecast. Operating profit performance was also strong
with excellent delivery across all secured contracts.

Performance by the Engineering & Construction cluster continued at low levels with operating
performance below expectation. The Civil Engineering segment operating performance
improved in line with expectations however the group raised a material provision within this
segment in the second half of the financial year against a previously certified but now
problematic debt. The group is pursuing its rights on this matter with a focus on recovery. The
Building & Housing segment is generally in line with recent guidance provided in February
2016. A softer performance by the Projects and Energy segments was realised which reflect
continued overall tight market conditions.
Despite extremely difficult South African trading conditions, the Manufacturing cluster
delivered an acceptable, albeit lower, result.

REPORTING

The above information has not been reviewed or reported on by Group Five’s auditors. The
group's results for the year ended 30 June 2016 will be released on SENS on 15 August 2016
when the group will update the market on its business in a presentation in Johannesburg on
the same day. The presentation will be available for all stakeholders on the group's website,
www.groupfive.co.za.

Sandton
01 August 2016
Investment bank and sponsor
Nedbank Corporate and Investment Banking

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