ZEDER INVESTMENTS LIMITED - Trading Statement

Trading Statement

ZEDER INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2006/019240/06
Share code: ZED
ISIN number: ZAE000088431
(“Zeder”)

SUM-OF-THE-PARTS (“SOTP”) VALUE AND RECURRING HEADLINE EARNINGS

Zeder, an investment holding company, continues to use the SOTP
value and recurring headline earnings per share benchmarks to
provide management and investors with a realistic and
transparent way of evaluating Zeder’s performance.

Zeder’s SOTP value is calculated using the quoted market prices
for all JSE-listed investments and market-related valuations for
unlisted investments.

Zeder’s recurring headline earnings is the sum of its effective
interest in that of each of its underlying investments. The
result is that investments in which Zeder holds less than 20%
and are generally not equity accountable in terms of accounting
standards, are included in the calculation of consolidated
recurring headline earnings. Once-off items are excluded from
recurring headline earnings.

TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited, a
listed company is required to publish a trading statement as
soon as it becomes reasonably certain that the financial results
for the next period to be reported on will show a 20% or more
difference from those of the previous corresponding period.

Zeder hereby advises that a reasonable degree of certainty
exists that:

1. Its SOTP value as at 31 March 2017 will be between R8.62 and
   R9.11 per share.

2. For the year ended 28 February 2017:

   -   Recurring headline earnings per share will be between
       42.2 cents and 43.0 cents, or between 0.5% lower or 1.4%
       higher than the 42.4 cents reported for the year ended
       29 February 2016; and

   -   Headline loss per share will be between 47.0 cents and
       48.0 cents, compared to the headline earnings per share
       of 36.5 cents reported for the year ended 29 February
       2016; and

   -   Attributable loss per share will be between 48.5 cents
       and 49.7 cents, compared to the attributable earnings per
       share of 52.5 cents reported for the year ended 29
       February 2016.

On 29 August 2016, Zeder shareholders voted in favour of
acquiring the rights to the management agreement from PSG Group
in exchange for the issue of 207.7m Zeder shares, representing
a 12% equity interest. The rights to the PSG Group management
agreement so acquired, valued at R1.449bn, did not meet the
recognition criteria for intangible assets in terms of
International Financial Reporting Standards (IFRS), and was
consequently accounted for in the income statement as a non-
recurring headline expense. It should be noted that this was a
once-off charge, with Zeder benefiting from the related cost
savings thereafter as no further fees will be paid to PSG in
terms of this agreement. As a result of this once-off management
fee internalisation charge of R1.449bn to the income statement,
Zeder’s headline and attributable earnings per share decreased
significantly.

This financial information has not been reviewed or reported on
by the auditor of Zeder. The audited results for the year ended
28 February 2017 will be published on or about 10 April 2017.

Stellenbosch
5 April 2017

Sponsor
PSG Capital

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