Change Statement and disclosure in terms of IAS 34 – regarding the condensed consolidated cash flow statement Interwaste Holdings Limited (Incorporated in the Republic of South Africa) (Registration number 2006/037223/06) JSE code: IWE ISIN: ZAE000097903 (“the Company”) CHANGE STATEMENT AND DISCLOSURE IN TERMS OF IAS 34 – INTERIM FINANCIAL REPORTING REGARDING THE CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Shareholders are referred to the reviewed provisional condensed consolidated financial statements for the year ended 31 December 2016, the announcement of which was released on SENS on 29 March 2017. Included in those financial statements was a provisional condensed consolidated statement of cash flows for the year ended 31 December 2016. In compliance with IAS 34 – Interim Financial Reporting, please find below the revised and expanded consolidated statement of cash flows for the year ended 31 December 2016. Dec 2016 Dec 2015 As revised Audited R’000 R’000 Profit before taxation 64 907 60 398 Adjustments for: Depreciation and amortisation 106 769 95 836 Finance costs 31 394 26 481 Finance income (2 206) (1 975) Loss/(profit) on disposal of property, plant and equipment 1 599 (52) Profit on disposal of compost business (2 448) – Landfill rehabilitation provision – 3 967 Gain on bargain purchase – (1) Share-based payment transactions 1 156 951 Foreign currency translation 3 905 546 Changes in working capital: Increase in trade and other receivables (12 885) (3 585) Decrease in trade and other payables (18 990) (7 519) Decrease in inventories 3 329 5 994 Change in estimate – site rehabilitation cost 997 (1 019) Cash generated from operations 177 527 180 022 Finance costs paid (29 526) (26 481) Finance income received 2 206 1 975 Tax paid (9 470) (16 267) Net cash inflow from operating activities 140 737 139 249 Cash flows from investing activities Purchases of property, plant and equipment (157 538) (176 553) Proceeds on disposal and scrapping of property, plant and 4 725 5 212 equipment Proceeds on disposal of discontinued operations 8 560 – Non-controlling interest in new subsidiary – 2 Acquisition of subsidiaries (2 927) (3 200) Net cash outflow on investing activities (147 180) (174 539) Cash flows from financing activities Proceeds on issue of share capital 1 165 11 122 Treasury shares acquired (3 226) – Net movement in interest-bearing borrowings (7 373) 15 955 Interest-bearing borrowings raised 105 410 121 149 Interest-bearing borrowings repaid (112 783) (105 194) Dividends to non-controlling interests (260) (539) Net cash (outflow)/inflow from financing activities (9 694) 26 538 Total cash movement for the year (16 137) (8 752) Effect of exchange rate fluctuations on cash held (6 166) – Cash and cash equivalents at beginning of year 53 154 61 906 Total cash and cash equivalents at end of year 30 851 53 154 During the course of the audit of the consolidated statement of cash flows for the year ended 31 December 2016, certain changes were made to cash flow classifications which resulted in changes to certain line items, compared to the previously reported reviewed condensed consolidated statement of cash flows for the year ended 31 December 2016 as published on 29 March 2017. These changes are reflected below: Dec 2016 Dec 2016 Condensed Condensed Consolidated Consolidated Corrections Statement of Statement of cash flows cash flows as previously as revised reported R’000 R’000 R’000 Net cash inflow from operating activities 137 985 140 737 2 752 Net cash outflow on investing activities (145 770) (147 180) (1 410)1 Net cash (outflow)/inflow from financing (8 352) (9 694) (1 342)2 activities Total cash movement for the year (16 137) (16 137) – Effect of exchange rate fluctuations on cash (6 166) (6 166) – held Cash and cash equivalents at beginning of 53 154 53 154 – year Total cash and cash equivalents at end of 30 851 30 851 – year 1. The increase in cash outflows from investing activities is due to the correction of a R968 000 overstatement of proceeds of disposal and scrapping of property, plant and equipment. The loss/(profit) on disposal of property, plant and equipment under operating activities also changed by the same amount. Other reclassifications amounting to R442 000 are less predominant. 2. Proceeds from issue of share capital of R1 165 000 and R3 226 000 paid for the acquisition of treasury shares were previously incorrectly classified under cash flows from operating activities as opposed to cash flows from financing activities. Other reclassifications amounting to R721 000 are less predominant. The independent auditor’s review conclusion reached on 29 March 2017 remains unchanged. 18 April 2017 Johannesburg Sponsor Grindrod Bank Date: 18/04/2017 05:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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