Trading statement for the six months ended 31 January 2020 EOH HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 1998/014669/06) JSE share code: EOH ISIN: ZAE000071072 (“EOH” or “the Group”) TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 JANUARY 2020 Salient features - Improvement of at least 64% to the previously reported total loss per share - Total cash balances remain consistent with prior comparative periods as liquidity remains stable - Core iOCO business performed well, with gross profit margins above 20% - The Group continues to make good progress in working through remaining, inherited legacy issues Trading statement Shareholders are advised that, EOH expects an improvement of at least 64% to the loss per share (“LPS”) and an improvement of at least 47% to the headline loss per share (“HLPS”) for the Group for the six months ended 31 January 2020 (“H1 2020”) compared to the previous corresponding period, being the six months ended 31 January 2019 (“H1 2019”), as further detailed in the table below. The reported H1 2019 financial results were unaudited and prepared prior to the finalisation of the consolidated annual financial statements for the year ended 31 July 2019 (“2019 AFS”) and require restatements to align with the 2019 AFS. These restatements relate primarily to revenue recognition, asset capitalisation and subsequent recovery and timing of recognition of liabilities. As a result of EOH’s ongoing deleveraging strategy, which is primarily focused on asset disposals, the H1 2020 and H1 2019 comparative results have been further adjusted for the required IFRS reclassification of certain businesses as discontinued, most notably being, Dental Information Systems Holdings Proprietary Limited (“Denis”) and two of the IP businesses. H1 2020 H1 2019 LPS and HLPS H1 2019 Anticipated LPS (restated)2 LPS and HLPS and HLPS (as previously reported)1 LPS: Total Loss of no more than 750 Loss of 1 689 cents per Loss of 2 099 cents per share operations cents per share share LPS: Continuing Loss of no more than 600 Loss of 1 706 cents per Loss of 2 073 cents per share operations cents per share share HLPS: Total Loss of no more than 525 Loss of 827 cents per share Loss of 993 cents per share operations cents per share HLPS: Loss of no more than 500 Loss of 844 cents per share Loss of 973 cents per share Continuing cents per share operations 1 Before taking into account the restatement for H1 2019 described above and the reclassification of Denis and two of the IP businesses as discontinued operations. 2 After taking into account the restatement for H1 2019 as described above and the reclassification of Denis and two of the IP businesses as discontinued operations. Operational overview The Group is approximately twelve months into a turnaround plan that is expected to take at least two years. Good progress on key strategic initiatives in respect of the evolving business model, cost savings and capital structure initiatives has continued over the past six months. The Group continues to work through remaining, inherited legacy issues. These include the limited group of identified public sector contracts together with non-core underperforming Nextec businesses and the interest burden associated with the inherited debt. The Group has further identified a need for a cost optimisation program which has resulted in 21 rental properties being exited in the last six months as well as reduction of more than 1,000 people through business as usual efficiency measures. Following sound progress and exceeding the R1 billion target within twelve months, management is continuing with disposals in line with its stated strategy. Total cash balances remain consistent with prior comparative periods as liquidity remains stable. The iOCO business has performed well evidenced by a stabilisation of the core business and the contracting sales pipeline with gross profit margins above 20% for the period under review, before taking account of the public sector contracts mentioned above. The public sector remains important for the Group, however, 8 of the public sector projects remain problematic out of the 54 originally identified as requiring attention. Management is actively working with these customers to remedy the pertinent issues. The IP businesses also performed well over the period, recording sound revenue growth as well as retaining gross profit margins above 30%. As has been previously communicated to the market, the majority of these businesses are being disposed of in order to normalise the capital structure and are classified as discontinued. Significant progress in this regard has been made. Non-binding offers have been received and the process is ongoing. Nextec remains challenging, with the majority of these businesses unlikely to form part of the Group going forward. More than 40 businesses have been sold or closed since 31 January 2019. While the recent global outbreak of COVID-19 may have an impact on the business, it is difficult to quantify with any certainty, the magnitude of the impact at this time. The Group has a crisis team in place monitoring this on a daily basis to ensure that issues arising are managed proactively and in a socially responsible manner. Interim results EOH will publish its interim results on or about 7 April 2020 and the results will be presented via a webcast in light of the COVID-19 outbreak. The financial information on which this trading statement is based has not been reviewed and reported on by the Group’s external auditors. EOH will publish a further trading statement once it has the reasonable degree of certainty required to confirm the exact extent of the difference from the H1 2019 results. 19 March 2020 Sponsor Java Capital Date: 19-03-2020 04:21:00 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.