Trading Statement KAP INDUSTRIAL HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1978/000181/06) Share code: KAP ISIN: ZAE000171963 ("KAP" or "the Company") TRADING STATEMENT In terms of the Listings Requirements of the JSE Limited, a listed company is required to publish a trading statement once it is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on next will differ by at least 20% from the financial results for the previous corresponding period. KAP’s unaudited interim results for the six months ended 31 December 2018, as reported on 12 February 2019, included non-recurring IFRS 2 – Share-based Payment costs incurred pertaining to the Unitrans B-BBEE transaction (“B-BBEE Costs”). The B-BBEE Costs to be recognised for the year ending 30 June 2019 will amount to c. R196 million, equating to 7.3 cents per share impacting earning per share (“EPS”) and headline earnings per share (“HEPS”). Accordingly, KAP wishes to inform investors that there is a reasonable degree of certainty that the Company’s anticipated: - HEPS is expected to be at least 20.0%, or 12.0 cents lower than the comparable period; and - EPS is expected to be at least 22.5%, or 13.0 cents lower than the comparable period. Excluding the B-BBEE Costs as detailed above, there is reasonable degree of certainty that the Company’s anticipated HEPS is expected to be at least 7.9%, or 4.7 cents lower than the comparable period. Strong cash generation, with the objective of further improving gearing levels in order to facilitate expansion activities, continues to be a key focus of management. Operational execution remains sound with significant progress made during the year in key areas. A further trading statement will be issued as soon as there is a reasonable degree of certainty as to the likely ranges within which the Company’s HEPS and EPS are expected to decrease. The results for the year ending 30 June 2019 is expected to be published on SENS on or about 20 August 2019. The financial information on which this trading update is based, has not been reviewed or reported on by the Company´s external auditors. Stellenbosch 19 June 2019 Sponsor PSG Capital Date: 19/06/2019 04:50:00 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.