Trading statement LIFE HEALTHCARE GROUP HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2003/002733/06) ISIN: ZAE000145892 Share Code: LHC ("Life" or "the Group" or "the Company") TRADING STATEMENT Life is currently finalising the Group’s results for the year ended 30 September 2017. In this regard, shareholders are advised that the Company’s revenue, normalised EBITDA, earnings per share and headline earnings per share for the year ended 30 September 2017 are expected to vary by at least 20% from those reported in the prior comparative year ended 30 September 2016, as follows: Measure Estimated Estimated number Reported year ended Note percentage range range 30 September 2016 year ended 30 year ended September 2017 30 September 2017 Revenue +22.0% to +30.0% R20 013m to R21 325m R16 404m 1 Normalised EBITDA 13.0% to 21.0% R4 875m to R5 220m R4 314m 2 Earnings per share (cents) -52.0% to -60.0% 69.2 to 57.6 144.1* 3 Headline earnings per share -52.0% to -60.0% 86.0 to 71.6 179.1* 3 (cents) Notes: 1. Revenue is expected to increase between 22.0% to 30.0%, primarily due to the inclusion of Alliance Medical from 21 November 2016. 2. Normalised EBITDA is the primary measure the Group uses to assess underlying financial performance. The impact of the acquisition and the weaker trading of Southern Africa and Poland is expected to result in an increase in normalised EBITDA of between 13.0% to 21.0%. - Normalised EBITDA for the Southern Africa operations is expected to be between 3.0% to 4.2% below last year, primarily due to the weaker trading in the Southern Africa operations. - The Polish operations performed below expectations and significantly below last year. This is primarily due to the impact of the reduction in tariffs as promulgated in Poland effective 1 July 2016 and further cardiology tariff reductions from 1 January 2017. - Alliance Medical has broadly performed to Life’s expectations. The business has performed well against the comparative period (i.e. prior to Life’s ownership) with normalised EBITDA expected to be 9% higher on a constant currency basis. 3. Earnings per share (EPS) and Headline earnings per share (HEPS) are expected to be below the comparative period last year primarily due to the impact of the acquisition of Alliance Medical and impairment of the investment in Poland. The impact of these once-off, non-trading related items are: Alliance Medical acquisition related: - Transaction costs of approximately R270m; - Interest costs related to the acquisition will be approximately R520m for the period. Debt funding of approximately R9 billion was repaid by the equity raised as part of the rights offer in April 2017, thus reducing the interest cost going forward correspondingly; Poland investment impairment: - A total impairment of the Poland investment for the year will be approximately R170m due to the additional reduction in tariffs in cardiology from 1 January 2017. HEPS for the year ended 30 September 2017 is expected to be between 71.6 cps and 86.0 cps, a decline of between 60.0% and 52.0% when compared to an adjusted HEPS of 179.1 cps* for the year ended 30 September 2016. The decline in HEPS is due to the impact of the AMG acquisition, related costs and the related finance costs on the funding of the transaction. * As a result of the issue of 367 346 939 rights offer shares in April 2017, the weighted average number of shares in issue has been adjusted (increased) to take into account the bonus element due to these shares having been issued at a discount. This is in accordance with International Financial Reporting Standards. The effect on the previously reported EPS and HEPS is as follows: Adjusted year ended Reported year ended 30 September 2016 30 September 2016 Weighted average number of shares 1 121 213 1 043 180 Earnings per share (cents) 144.1 154.9 Headline earnings per share (cents) 179.1 192.5 The financial information on which this trading statement is based has not been reviewed and reported on by the Company’s external auditors. The Company expects to release its financial results for the year ended 30 September 2017 on the Stock Exchange News Service on or about 21 November 2017. Illovo Monday, 13 November 2017 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 13/11/2017 05:00:00 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. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.