Trading statement - financial impact of the Discovery card transaction on FirstRand Limited RMB HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1987/005115/06) JSE ordinary share code: RMH ISIN: ZAE000024501 ("RMH") TRADING STATEMENT - FINANCIAL IMPACT OF THE DISCOVERY CARD TRANSACTION ON FIRSTRAND LIMITED In terms of the JSE Limited Listings Requirements, a company is required to publish a trading statement as soon as it becomes apparent, that the financial results for the next reporting period will, with a reasonable degree of certainty, differ by at least 20% from the previous corresponding reporting period. On 22 February 2019, FirstRand Limited ('FirstRand') released a trading statement which provided guidance on the financial impact of the profit realised on the sale of the Discovery Card business ('Discovery Card transaction') to Discovery Bank Limited, which profit amounted to R2.3 billion. Since RMH owns 34.1% of FirstRand, the impact of the Discovery Card transaction will flow through to the interim financial results of RMH for the six months ended 31 December 2018. In terms of International Financial Reports Standards ('IFRS'), RMH's portion of FirstRand's realised profit on the Discovery Card transaction will be included in 'earnings from associates' for the six months ended 31 December 2018. FirstRand however excludes this profit from headline earnings due to its capital and non-operational nature, which treatment is in line with the South African Institute of Chartered Accountant Circular (4/2018). RMH will follow this treatment and accordingly the realised profit will only impact RMH's IFRS earnings and not its headline nor its normalised earnings. As previously communicated to shareholders, RMH believes normalised earnings are a more accurate reflection of underlying operational performance. Accordingly, the table below provides guidance for the expected increase in RMH's IFRS earnings attributable to ordinary equity holders and basic earnings per share for the six months ended 31 December 2018: As reported for the six Guidance increase for the Guidance increase for the months ended 31 six months ended 31 six months ended 31 December 2017 December 2018 December 2018 (%) IFRS earnings attributable 4 097 1 147 - 1 311 28 - 32 to ordinary equity holders (R million) IFRS earnings per share 290.4 81.3 - 92.9 28 - 32 (cents) The financial information on which this trading statement is based has not been reviewed or reported on by RMH's external auditors. RMH's interim financial results for the six months ended 31 December 2018 will be published on or about 13 March 2019. Sandton 26 February 2019 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 26/02/2019 01:15:00 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.