PSG GROUP LIMITED - Trading Statement

Trading Statement

PSG GROUP LIMITED
Incorporated in the Republic of South Africa
Registration number: 1970/008484/06
JSE Limited (“JSE”) share code: PSG
ISIN code: ZAE000013017
(“PSG”)

PSG FINANCIAL SERVICES LIMITED
Incorporated in the Republic of South Africa
Registration number: 1919/000478/06
JSE share code: PGFP
ISIN code: ZAE000096079

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

PSG, 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 PSG’s
performance.

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

PSG’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 PSG
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, 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.

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

1.    Its SOTP value per share as at 28 February 2017 was
      R240.87, being 29% higher than the R186.67 reported
      as at 29 February 2016;
2.    For the year ended 28 February 2017:

      - Recurring headline earnings per share will be
        between R9.20 and R9.30, being between 16.8% and
        18.0% higher than the R7.88 reported for the
        year ended 29 February 2016;

      - Headline earnings per share will be between
        R9.95 and R10.05, being between 49.4% and 50.9%
        higher than the R6.66 reported for the year
        ended 29 February 2016; and

      - Attributable earnings per share will be between
        R10.05 and R10.15, being between 39.4% and 40.8%
        higher than the R7.21 reported for the year
        ended 29 February 2016.

The year under review saw resilient recurring headline
earnings performance from the majority of PSG’s core
investments.

Headline earnings per share increased by a higher margin
than that of recurring headline earnings per share mainly
due to marked-to-market profits achieved on Dipeo’s
investment portfolio, as opposed to marked-to-market
losses incurred in the prior year.

Attributable earnings per share increased by a smaller
margin than headline earnings per share mainly due to the
non-recurrence of non-headline dilution gains made from
an accounting perspective on associates in the prior
year.

PSG’s live SOTP is available on its website at
www.psggroup.co.za.

This financial information has not been reviewed or
reported on by the auditor of PSG. The reviewed results
for the year ended 28 February 2017 will be published on
or about 19 April 2017.

Stellenbosch
12 April 2017

Sponsor
PSG Capital

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