CONDUIT CAPITAL LIMITED - Trading Statement

Trading Statement

CONDUIT CAPITAL LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/017351/06)
Share code: CND       ISIN: ZAE000073128
(“Conduit” or “the group”)


TRADING STATEMENT


In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading
statement as soon as they become reasonably certain that the financial results for the period to be
reported on will differ by more than twenty percent from that of the previous corresponding period.
Accordingly, a review by management of the financial results for the six months ended
31 December 2016 has indicated that:

1. the loss per share is expected to be between 10.0 cents and 10.8 cents compared to the
   earnings per share of 3.8 cents for the six months ended 31 December 2015; and

2. the headline loss per share is expected be between 8.5 cents and 9.3 cents compared to the
   headline earnings per share of 3.8 cents for the six months ended 31 December 2015.

The decrease is due primarily for reasons previously disclosed to shareholders in our 2016
Integrated Annual Report, namely:

-   Higher claims before premium increases in a large accident and health book in our insurance
    business. Premium increases were instituted on 1 January 2017 in order to turn this book
    profitable;
-   Higher provisions associated with the large increase in net premium written (before solvency
    reinsurance);
-   Additional costs and investments in people, infrastructure, information technology systems and
    business processes which are necessary to support the growth of the insurance companies
    ahead of anticipated premium growth; and
-   Business combination expenses associated with the acquisition of Midbrook Lane (Proprietary)
    Limited and Snowball Wealth Proprietary Limited (these expenses are excluded from the
    calculation of headline earnings per share).

The financial information on which this trading statement is based has not been reviewed or
reported on by the group’s auditors. Conduit’s interim results for the six months ended
31 December 2016, including further information on the performance of the group, are expected
to be released on SENS on or about 22 February 2017.

Johannesburg
17 February 2017

Sponsor
Merchantec Capital

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