Trading statement for the six months ended 30 September 2019 ALEXANDER FORBES GROUP HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration number: 2006/025226/06) JSE Share Code: AFH ISIN: ZAE000191516 (“Alexander Forbes” or “the company” or “group”) TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019 Alexander Forbes is in the process of finalising its interim financial results for the six months ended 30 September 2019 (“current period”) which will be released on the Stock Exchange News Service (“SENS”) and on the company’s website at www.alexanderforbes.co.za on or about 9 December 2019. This trading statement is issued in accordance with paragraph 3.4(b) of the JSE Limited Listings Requirements. The financial information on which it is based has not been reviewed and reported on by the group's external auditors. Based on the information currently available to the company, shareholders are advised that the financial results for the current period are expected to be: Estimated September 2018 Estimated range September 2019 (cents) change (%)* (cents) Total operations** Headline earnings per share 23.5 - 25.3 17.3 36% to 46% Basic earnings /(loss) per share 24.0 - 25.0 (3.5) >100% Continuing operations*** Headline earnings per share 17.2 - 18.5 13.4 28% - 38% Basic earnings per share 17.0 - 17.9 2.8 >100% * Percentages calculated based on rounded figures ** Prior year numbers restated for the effects of IFRS 16 Leases *** Prior year numbers restated for the effects of discontinued operations (IFRS 5) and IFRS 16 Leases The board is pleased with the progress made in the execution of the strategic initiatives outlined at the end of the previous financial year. We announced the sale of the South African short-term insurance business in July 2019 and regulatory approval is expected shortly. Numerous internal structural changes have been implemented to improve our advice led client centric service offering, and we are confident that the impact of these changes will reflect positively in the performance of the business over the medium term. The underlying business operating results reflected in the profit from operations before non-trading and capital items for the current period are expected to increase by between 2% and 4% (to between R398 million and R407 million) from R391 million reported for the six months ended 30 September 2018 (“prior period”). This improvement reflects muted operating income growth coupled with good cost containment in the current period. The results for the prior period included the capitalised software development assets write-off (R287 million) and the penalty cost incurred on the termination of the IT contract (R50 million), both of which are non-recurring in the current period. The software write-off was recorded in non-trading and capital items and adjusted for in the calculation of headline earnings. Both items also impacted the prior year effective tax rate which has normalised in the current period. Additional factors that influence the improvement in attributable earnings for the current period include the reduced costs reflected in the non-trading and capital items, specifically costs relating to strategic consulting projects in the prior year, which were one-off, and an improvement in the results of our professional indemnity cell captive insurance facility. Alexander Forbes remains positive about its operational strength, customer support for its brand and is committed to delivering on its longer-term strategic priorities. 22 November 2019 Sandton Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 22/11/2019 02:58:00 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.