Imperial: Leaders in Mobility

The integrated annual report for the year ended 30 June 2018 reflects an important strategic development for Imperial – the final stage in its transition from a holding company into two independent, self-sufficient businesses. The integrated annual report (both this full online version and the printed summary) therefore divide into three separate sections:

• The leadership of Imperial Holdings reviews the group's strategic progress over the last few years, culminating in the separation of its business portfolio, and assesses its financial performance in the year under review. An overview of governance and remuneration is also provided.
• Imperial Logistics and Motus each have a dedicated section, which sets the basis for their separate integrated reports going forward post the conclusion of the proposed unbundling; each with an introduction, chief executive officer's report, competitive position, business model, industry context, strategy, risks, material issues, operational review and governance overview.

While the Imperial Holdings section cannot be considered complete given the almost complete devolution of its authority, interests and skills to each business, each of the business sections provide a full assessment of their ability to create value over time for their respective stakeholders through their management of governance, risk, strategy, financial and operational performance and prospects, in relation to their material issues.

Accounting to our stakeholders

Our intention is to continually improve our reporting as a function of our accountability to our stakeholders. This year's integrated annual report, in combination with each of the business sections, is aimed at a broad stakeholder audience. Unlike previous years, no distinction is made between the information traditionally reported in the integrated annual report and the separate sustainability report. Instead, the separate sustainability report has been discontinued and additional reports that provide a deeper assessment of certain material issues are provided in the full integrated annual report online.

Due to the extent of the report resulting from this structure, it was decided to provide a more concise summary version of the report in print and to make the full version available online only. Additional detailed information relating to the two businesses and the proposed unbundling and separate listing of Motus can be found in the Imperial Holdings circular and Motus Holdings pre-listing statement, available online at www.imperial.co.za.

Scope and boundary

The integrated annual report for the year ended 30 June 2018 covers the group's businesses, Imperial Logistics and Motus, over which it retains operational control. As indicated, these businesses are reported as single entities. The report focuses on the group's continuing operations, unless otherwise specified. Leased facilities are treated as group-owned for reporting purposes. Entities that are not operationally controlled, including assets that are owned but not operated by the group, are not included in the scope of the report. However, more broadly, the risks, opportunities and outcomes associated with stakeholders outside the financial reporting boundary are dealt with insofar as they materially affect the group's ability to create value over time.

Reporting framework and assurance

Our integrated reporting process is guided by the principles and requirements of the International Integrated Reporting Council's (IIRC) <IR> Framework, the King IV Report on Corporate Governance^™* (King IV) and, as a listed entity on the JSE (under the share code IPL), we align to the JSE Listings Requirements and the South African Companies Act, 2008.

Financial information is extracted from the audited consolidated annual financial statements for the year ended 30 June 2018, which is available in full online and on which our external assurance providers, Deloitte & Touche, issued an unmodified audit opinion. Selected non-financial information included in this report has been assured by Deloitte & Touche and is included on here.

* Copyright and trademarks are owned by the Institute of Directors in Southern Africa NPC and all of its rights are reserved.

Materiality determination

The group's material issues are the priorities and concerns most important to the leadership of Imperial Holdings Limited and its stakeholders, which if effectively managed, will create sustainable value for its stakeholders. The last remaining material issue for Imperial Holdings is to achieve the successful unbundling of its two businesses and separate listing of Motus on the JSE. The material issues for Imperial Logistics and Motus were determined separately and the processes followed and the outputs in each case are set out in their sections respectively.

Approval

The board of Imperial Holdings Limited acknowledges its responsibility to ensure the integrity of the 2018 integrated annual report, which is its primary report to stakeholders. The audit committee, together with executive management, is responsible for the preparation and presentation of the report, and has reviewed and recommended it to the board for its approval. In the board's opinion, after applying its collective mind to the information provided, the report addresses all material issues and matters that may impact the group's ability to create value over time, and it provides a balanced and appropriate overview of performance.

On behalf of the board

Suresh Kana

Chairman

Mohammed Akoojee

Acting chief executive officer and chief financial officer

14 September 2018

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Make contact

Feedback, questions or requests from stakeholders can be directed to: Esha Mansingh, group investor relations manager at emansingh@ih.co.za