Trading Statement And Restatement Of Prior Year Interim Results African Equity Empowerment Investments Limited (Incorporated in the Republic of South Africa) Registration number 1996/006093/06 Share code: AEE ISIN: ZAE000195731 ("AEEI" or “the Company”) TRADING STATEMENT AND RESTATEMENT OF PRIOR YEAR INTERIM RESULTS TRADING STATEMENT In terms of para 3.4 (b) of the JSE Listings Requirements, listed companies are required to publish a trading statement as soon as the board of directors is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on next will vary by 20% or more when compared to those of the prior reporting period. For purposes of this trading statement it is necessary to compare the earnings per share and the headline earnings per share for the six-month period ended 28 February 2018 to the restated figures for the six-month period ended 28 February 2017 as set out below. Accordingly, the board of directors is satisfied that a reasonable degree of certainty exists that the Company expects that the Group’s basic earnings per share for the six-month period ended 28 February 2018 will increase and will be between 1 698.87 cents and 1 717.40 cents per share, compared to the restated 92.65 cents (as shown below) in the prior corresponding period. Basic earnings per share were positively impacted by the gain on the deemed disposal of a subsidiary. The Company also expects that the Group’s headline earnings per share for the six-month period ending 28 February 2018 will be between 30.71 cents and 49.33 cents per share, compared to the restated 92.71 cents in the prior corresponding period. The Company further expects that the Group’s normalised headline earnings per share for the six-month period ended 28 February 2018 will increase and will be between 30.82 cents and 31.94 cents per share, compared to the restated 5.62 cents in the prior corresponding period. Normalised earnings are defined as earnings from continuing operations excluding non-recurring items and once off adjustments. RESTATEMENT OF PRIOR YEAR INTERIM RESULTS Shareholders are advised that during the finalisation of the full year results for the year ended 31 August 2017, a revaluation of the fair value of investments which were considered materially undervalued was identified and it is necessary for the interim results for the six-month period ended 28 February 2017 to be restated accordingly. The revaluation was required, following an analysis of AEEI's underlying investments in technology assets, performed by management in preparation for the AYO Technology Solutions Limited listing. As part of this assessment, a material fair value gain would have needed to be recognised in the results for the six-month period ended 28 February 2017. Accordingly, the reported earnings per the prior year interim results have increased by R310m from R138m to R449m due to the reason stated above. In addition, the restatement includes non-material restatements announced in the full year results for the year ended 31 August 2017. The below restatement has an effect on the reported earnings per the statement of profit and loss and other comprehensive income, statement of financial position and statement of cash flows as detailed in the table below: RESTATED INTERIM RESULTS AT 28 FEBRUARY 2017 R’000 As Restated previously stated 28 February 2017 Consolidated Statement of Financial Position Investment in 464 767 775 167 associate Retained income 652 402 962 802 Net asset value per 216.47 279.65 share (cents) Consolidated Profit and Loss and Other Comprehensive Income Revenue 448 785 454 878 Gross profit 160 873 166 966 Fair value 151 437 551 437 adjustments Investment revenue 8 212 2 119 Profit before tax 185 382 585 382 Taxation (47 181) (136 781) Profit from 138 201 448 601 continuing operations Total comprehensive 138 201 448 601 income Basic and diluted 29.48 92.65 earnings per ordinary share (cents) Headline earnings 29.53 92.71 per ordinary share (cents) Normalised HEPS (not 5.56 5.62 reported) Consolidated statement of cash flows Cash generated from 46 126 52 219 operations Interest revenue 8 212 2 119 The abovementioned financial information on which this trading statement is based has not been reviewed or reported on by the Company’s auditors. The interim unaudited financial results for the six-month period of AEEI is expected to be released on SENS on or about 22 May 2018. Cape Town 18 May 2018 Sponsor PSG Capital Date: 18/05/2018 10:45:00 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.