Trading Statement for the Interim Period ended 31 December 2019 ELB GROUP LIMITED Incorporated in the Republic of South Africa (Registration number 1930/002553/06) ISIN: ZAE000035101 JSE Code: ELR (“ELB” or “the Company”) TRADING STATEMENT FOR THE INTERIM PERIOD ENDED 31 DECEMBER 2019 In terms of the JSE Limited Listings Requirements companies are required to provide guidance to the market when they are satisfied that a reasonable degree of certainty exists that the financial results for the current reporting period will differ by at least 20% from the results of the corresponding reporting period. Accordingly, shareholders of the Company are advised that: • Basic loss per share for the interim financial period ended 31 December 2019 (“current period”) is likely to be between 317.4 cents and 388 cents, representing: • an improvement of between 52.4% - 61.0% when compared to the reported basic loss per share of 814.4 cents for the interim financial period ended 31 December 2018 (“prior period”); and • an improvement of between 59.7% - 67.1% when compared to the restated basic loss per share of 963.5 cents for the prior period. • Basic headline loss per share for the current period is likely to be between 58.2 cents and 71.1 cents representing: • an improvement of between 91.3% - 92.9% when compared to the reported basic headline loss per share of 817.0 cents for the prior period; and • an improvement of between 92.6% - 94.0% when compared to the restated basic headline loss per share of 966.7 cents for the prior period. The restated basic loss per share and headline loss per share is as a consequence of a prior period error as set out below. Prior period error We further draw attention to the fact that the prior period comparatives have been restated. The Company and its subsidiaries (“the Group”) consolidated annual financial statements for the year ended 30 June 2017 ("FY2017") were selected for review by the JSE as part of its proactive monitoring of annual financial statements process. Following a referral to the Financial Reporting Investigation Panel, the JSE concluded that the Group’s FY2017 consolidated annual financial statements contained a prior period error, in relation to the accounting treatment of The ELB Educational Trust for Black South Africans (“the Trust"). In the JSE’s opinion, the Trust should have been consolidated as part of the Group and a non-controlling interest should not have been recognised for the Trust's shares in ELB Engineering Proprietary Limited, a subsidiary of the Company. The impact of the prior period error, on each line item affected for the prior period, is disclosed below: Balance Sheet 2018 2018 At 31 December 2018 Previously Adjustment Restated reported R’000 R’000 R’000 Assets Current assets Cash and cash equivalents 261 762 212 261 974 1 428 754 212 1 428 966 Total assets 1 780 168 212 1 780 380 Equity and liabilities Treasury shares (74 531) (44) (74 575) Reserves 64 691 11 612 76 303 Retained earnings 153 405 (2 582) 150 823 Total equity attributable to equity holders of the 252 743 8 986 261 729 Company Non-controlling interests 7 856 (8 774) (918) Total equity 260 599 212 260 811 Liabilities Total equity and liabilities 1 780 168 212 1 780 380 Statement of comprehensive income For the period ended 31 December 2018 Operating costs excluding depreciation and amortisation (1 802 238) (376) (1 802 614) Operating profit before depreciation and amortisation (204 109) (376) (204 485) Profit from operations (215 060) (376) (215 436) Finance income 6 347 5 6 352 Profit before income tax (218 244) (371) (218 615) Profit for the year (271 467) (371) (271 838) Other comprehensive income Items that will not be reclassified to profit or loss Non-controlling interests in foreign currency translation 94 (140) (46) adjustments Income tax relating to items that may not be reclassified 234 (4) 230 Total items that will not be reclassified to profit or loss (494) (144) (638) Items that may be reclassified to profit or loss Foreign currency translation reserve adjustments attributable 794 140 934 to ordinary shareholders of the Company Income tax relating to items that may be reclassified 28 4 32 Total items that may be reclassified to profit or loss 822 144 966 Total other comprehensive income for the year 328 - 328 Total comprehensive income for the year (271 139) (371) (271 510) Profit attributable to: Ordinary shareholders of the Company (231 034) (42 324) (273 358) Non-controlling interests (40 433) 41 953 1 520 (271 467) (371) (271 838) Total comprehensive income attributable to: Ordinary shareholders of the Company (230 878) (42 106) (272 984) Non-controlling interests (40 261) 41 735 1 474 (271 139) (371) (271 510) Earnings per ordinary share (cents) Basic loss per ordinary share (814.4) (149.1) (963.5) Diluted loss per ordinary share (814.0) (149.1) (963.1) Basic headline loss per ordinary share (817.0) (149.7) (966.7) Diluted headline loss per ordinary share (816.6) (149.6) (966.2) Statement of cash flows For the period ended 31 December 2018 Cash flows from operating activities Cash utilised by operations (204 109) (376) (204 485) Interest received (3 184) 5 (3 179) Net cash outflow from operating activities (108 446) (371) (108 817) Decrease in cash and cash equivalents (117 898) (371) (118 269) Cash and cash equivalents at the beginning of the year 318 129 583 318 712 Cash and cash equivalents at end of the year 193 570 212 193 782 The consolidated financial results for the interim financial period ended 31 December 2019 will provide further information on the restatement, which are expected to be released by no later than 31 March 2020. The financial information on which this trading statement is based and the prior period restated information have not been reviewed or reported on by the Company’s external auditors. Johannesburg 13 March 2020 Sponsor Questco Corporate Advisory Proprietary Limited Corporate Advisor Apex Partners Holdings Proprietary Limited Date: 13-03-2020 03:01:00 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.