HULAMIN LIMITED - Trading statement for the year ended 31 December 2016

Trading statement for the year ended 31 December 2016

Hulamin Limited
(Incorporated in the Republic of South Africa)
(Registration number 1940/013924/06)
Share code: HLM
ISIN: ZAE000096210
("Hulamin" or "the Company")

TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2016

A strong manufacturing performance in 2016 supported the delivery of record sales volumes.
Hulamin performed particularly well in the second half of the year, despite the strengthening of
the Rand, to deliver a record operating profit for the full year, which was achieved in a relatively
stable LME price environment.

Hulamin Rolled Products has benefitted from consistent investment in operational excellence and
risk management to achieve record sales volumes of 214 000 tons for the year under review
with strong improvements in yields/recoveries, unit costs and in the mix of high value products,
particularly can end stock and heat treated plate. This positive momentum, achieved with an
excellent safety record, provides a solid base for further focus and improvements going into
2017.

Local sales of rolled products increased to more than 70 000 tons. Sales of can body stock
improved strongly in the second half after the slow start to 2016. This increase in demand
allowed for an increase in scrap purchases and improved utilisation of Hulamin’s recycling
capacity in the second half.

Hulamin Extrusions and Hulamin Containers also both performed better in 2016.

Consequently, shareholders are advised that Hulamin expects earnings per share (“EPS”),
headline earnings per share (“HEPS”) and normalised EPS for the year ended 31 December 2016
to be within the ranges shown below:

                            31 December 2016                   31 December 2015
                            Expectation (cents) and            Reported (cents)
                            percentage increase

 EPS                        116 (127%) – 123 (141%)            51
 HEPS                       114 (208%) – 121 (227%)            37
 Normalised EPS             114 (107%) – 121 (120%)            55

The improved profit performance and capital discipline allowed Hulamin to improve cash flows
further in the second half resulting in Hulamin reducing its net borrowings further by some R350
million after closing at R952 million at the end of June 2016.

Hulamin is focused on maintaining the positive momentum in the business, increasing rolling
margins (selling prices), improving operational performance and making further reductions in
manufacturing cost.

The financial information on which this trading statement is based has not been reviewed and
reported on by the Company’s external auditors.

Hulamin’s results for the year ended 31 December 2016 are expected to be released on the
Stock Exchange News Service on or about 27 February 2017.

Pietermaritzburg
23 January 2017

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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