Imperial

These results reflect continued progress with Imperial’s strategic, capital, operational, organisational and managerial restructuring, which commenced in late 2014.

• Total revenue and operating profit grew 2% to R61,3 billion and 4% to R3,2 billion respectively, supported by the inclusion of the Palletways acquisition for the six months, and solid results from the Logistics South Africa and Motor-Related Financial Services sub-divisions. Excluding current year acquisitions, total revenue and operating profit declined 3%.
• Revenue and operating profit from continuing operations, excluding Regent, were both up 3% to R59,7 billion and R2,9 billion respectively.
• The Group’s operating margin from continuing operations at 4,8% was maintained at the same level as the prior period.
• Foreign revenue increased by 12% to R25,0 billion (42% of Group* revenue) and foreign operating profit increased 9% to R1,0 billion (36% of Group* operating profit).
• Non-vehicle revenue increased 16% to R25,3 billion (42% of Group* revenue) and operating profit increased 12% to R1,3 billion (46% of Group* operating profit).
• A full reconciliation from earnings to headline earnings and core earnings is provided in the Group Financial Performance section.
• Cash flow from operating activities before capital expenditure on rental assets reduced to R468 million from R1,7 billion in the prior period.
• Net working capital from continuing operations increased to R11,2 billion from R9,9 billion at June 2016, but reduced from R11,5 billion at December 2015.
• The net debt to equity ratio (including preference shares as equity) increased to 98% from 76% in December 2015 (73% at June 2016) mainly due to the Palletways acquisition.
• Strategic disposals during 2017 to generate proceeds of approximately R4,6 billion. R1,4 billion has been received to date.

*Excluding discontinued operations, businesses held for sale, head office and eliminations.

With a footprint in more than 30 countries on six continents, Imperial is affected by the well-publicised geopolitical and economic developments that have created a general climate of uncertainty affecting business conditions and the volatility of currencies.

South Africa

The trading environment remains challenging in South Africa, where R35,2 billion or 59% of Group* revenue and R1,9 billion or 64% of Group* operating profit was generated in the six months to December 2016.

Specific factors that affected Imperial during the period were: the strengthening of the Rand which created foreign exchange hedging losses, and made inventory and placed orders uncompetitive price-wise; a 13% decline in national new vehicle sales; declining business confidence; fragile consumer health and higher inflation that depressed personal consumption expenditure.

Eurozone, United Kingdom (UK) and Australia

Slow economic recovery continues and trading conditions remain satisfactory in the Eurozone and Australia, where R19,3 billion or 32% of Group* revenue and R588 million or 20% of Group* operating profit was generated for the six months to December 2016.

Specific factors that affected Imperial during the period were: pro-longed low water levels on the River Rhine that continues to depress the profitability of inland shipping; lower demand and pricing pressures from the steel, energy, commodities and construction industries; steady UK economic growth; and the strengthening of the Rand against the Pound by an average of 15% which depressed the Rand denominated results of the UK businesses. The Rand weakened against the Euro and the Australian Dollar by an average of 2% and 7% respectively which improved the Rand denominated results in these regions.

African Regions

Falling commodity demand, low oil prices and the consequent impact on currencies and private consumption has negatively impacted the growth rate in the African Regions, where R5,7 billion or 9% of Group* revenue and R461 million or 16% of Group* operating profit was generated during the period.

Specific factors that affected Imperial during the financial year were: slowing GDP growth rates; rising inflation and interest costs; lower consumer demand; currency volatility; and devaluation.

Against this background, we provide shareholders with current information on the Group’s strategy and performance.

*Excluding discontinued operations, businesses held for sale, head office and eliminations.

Significant progress was registered to consolidate and integrate Imperial’s activities within two large, increasingly self-sufficient divisions. In many instances progress is ahead of original plans.

Since 1st July 2016, Imperial’s entire logistics interests are being led by one CEO and board as one division named Imperial Logistics, and managed and reported on as three sub-divisions: South Africa; African Regions; and International.

Concurrently, work commenced on the consolidation and integration of Imperial’s entire vehicle interests which from 1st January 2017 are being led by one CEO and board as one division named Motus Corporation, and managed and reported on as four sub-divisions: Import and Distribution; Retail and Rental; Aftermarket Parts; and Motor Related Financial Services.

As previously stated, the objective of this restructuring is to create value through intra-divisional efficiencies and collaboration, and to deeper penetrate the supply chains in both sectors through better co-ordinated and competitive value propositions to clients.

This financial report is based on the new divisional structure with increased detail reflecting our commitment to disclosure that enables shareholders to analyse and fairly value their investment.

Imperial strives to create long-term value for stakeholders through strategic clarity, financial discipline, operational excellence and strictly defined capital allocation principles.

Notwithstanding current external challenges, Imperial’s investment thesis remains unchanged and steady progress was made with each of the following five capital allocation objectives:

1. To release capital and sharpen executive focus, by disposing of non-core, strategically misaligned, underperforming or low return on effort assets.
   

   During the reporting period, we disposed of:

   • non-strategic properties: R1,5 billion is expected to be realised in the 2017 calendar year and a further R700 million expected during 2018;
   • minority stake in MixTelematics for R470 million with payment received on 30 August 2016;
   • 51% (control) of 10 entities in the Vehicle Import, Distribution and Dealerships division to a related party for R55 million, concluded on 30 August 2016; and the following smaller disposals amounting to approximately R8 million:
   • a panelshop in Cape Town owned by the Vehicle Retail and Rental sub division of Motus;
   • 75% interest in Bronchem Laboratories BV, a subsidiary of Lehnkering Logistics Group;
   • 51% interest in Virtual Logistics, a subsidiary of Pharmed Pharmaceuticals;
   • 50,1% interest in Commerce Edge, a subsidiary of Resolve Solutions; and
   • 51% interest in MiFone, a subsidiary of Logistics African Regions.
   • Disposals concluded after the reporting period included the following:
     •  The Regent Group’s non-South African operations for an upfront payment of R697 million, with payment received
       at the end of January 2017. The sale of the South African business is still subject to regulatory approvals.
     •  LTS Kenzam was sold for R10 million cash in January 2017.
     • Jurgens and Prestige Safari were sold for R233 million in February 2017.

   Since 2015: 42 businesses with total revenue of R11,9 billion and operating profit of R937 million have been or are in the process of being disposed of for approximately R4,1 billion including Regent. In addition, 82 properties have been or are in the process of being sold for approximately R2,1 billion. The total capital employed in these businesses and properties totalled R5,1 billion.

   Although the bulk of identified disposals have been concluded, continual analysis of the strategic and financial performance of businesses will result in refinements to the portfolio of both divisions over the medium term.

   * Excluding discontinued operations, businesses held for sale, head office and eliminations.

2. We will invest capital in South Africa to maintain the quality of assets and market leadership in our logistics and motor vehicle businesses.

   Acquisitions during the period include:

   • a 70% stake in Sasfin Premier Logistics for R38 million in July 2016;
   • 55% of Itumele Bus Lines for R147 million in November 2016
   • and the remaining 10% minority stake in Midas for R87,5 million.

   In addition, R1,9 billion of capital expenditure was invested in South Africa in continuing operations.

3. We will invest capital in the African Regions primarily to achieve our 2020 objective for the revenue and profits generated in that region to equal that of our South African logistics business, and secondarily to expand our vehicle businesses in the region.
   • The acquisition of 70% of Surgipharm Limited in Kenya for a consideration of USD35 million (ZAR470 million) was announced on 15 February 2017, subject to regulatory approvals.
   • The capital light Imperial Managed Logistics business was expanded in Nigeria and Ghana.
4. We will invest the cash generated from operations and divestments to grow our businesses beyond the continent, but with an emphasis on logistics.
   • The most notable acquisition during the period was a 95% stake in Palletways for £155,1 million (R3,0 billion which includes the purchase of debt at acquisition date), concluded on 5 July 2016.
   • Palletways acquired 100% of Topco in Italy for R14 million.
   • Capital expenditure of R390 million was invested mainly in logistics in Europe and South America.
5. The development and sustainability of Imperial will be underpinned by investment in human capital and information systems.
   • Group wide investments in human capital development and information systems amounted to R538 million.

Imperial Logistics

*Excludes businesses held for sale.

Imperial Logistics recorded 16% growth in revenue and 12% growth in operating profit, supported mainly by the Palletways acquisition in Logistics International and a solid performance from Logistics South Africa despite challenging trading conditions and lower demand in certain key markets. Excluding Palletways, operating profit was down 2%.

Net capital expenditure of R500 million was incurred (2016: R1,1 billion) in the Imperial Logistics division, attributable mainly to the transport fleet and an increase in plant, equipment and intangible assets in South Africa; and additional capacity for the chemical manufacturing business and part payment for two additional convoys in South America.

Imperial Logistics remains focused on expanding and leveraging its footprint in selected African and European countries, with a bias towards less capital intensive businesses that enhance revenue growth and returns. Integrated logistics capabilities are also being strengthened to enable deeper penetration of clients’ supply chains.

Logistics South Africa

* Restated to exclude businesses held for sale.

Logistics South Africa performed strongly, increasing revenue and operating profit by 10% and 20% respectively. The significant contributors to this were increased volumes in the commodities, fuel and gas operations, and strong performances from Managed Logistics and Resolve.

The bulk commodities business delivered strong performance, recording revenue and operating profit growth compared to a break-even result in the prior period. This was driven by a higher demand for Iron Ore and Manganese. The acquisition of Itumele Bus Lines also contributed positively to the business, although only included for two months.

The consumer logistics businesses recorded revenue and operating profit growth supported by an improvement from Imperial Cold Logistics, which reduced its losses from the prior period although capacity remains underutilised. Volumes in the other retail facing businesses were lower due to subdued trading conditions.

With a renewed focus on customers’ needs and relationship development, the business will add further impetus to its drive to develop customised solutions to better service clients and improve their efficiencies.

Logistics African Regions

* Restated to exclude businesses held for sale.

Logistics African Regions’ performance was undermined by slowing growth rates and rising inflation and interest rates, which resulted in lower consumer demand in many of its African markets. Revenue declined by 9% mainly due to the weakening of the Naira and the Metical by 37% on a combined average; subdued demand from Imres’ key markets; and a weak performance from CIC due to lower consumer demand in Botswana and downsizing of the business in Mozambique. Despite these factors, operating profit for the period was maintained due to a strong performance from EcoHealth, Nigeria’s leading distributor of ethical pharmaceuticals.

The strategy to be a significant route-to-market partner of multi-national consumer goods and pharmaceutical companies in Southern, East and West Africa is on track. The sub-division continues to expand in sub-Saharan Africa by leveraging its asset-light managed logistics capabilities and extending its focus from traditional road transport to include cross-border and international logistics services and warehousing operations.

Logistics International

* Restated to exclude Neska.

Logistics International’s revenue and operating profit in Euros increased 32% and 14% respectively, boosted by the acquisition of Palletways, but excluding Neska, which was sold in December 2015. The performance in Rand terms was enhanced by a weaker average Rand/Euro exchange rate. The remaining international operations performed well below expectations and the prior period.

The Transport Solutions business was negatively affected by lower shipping volumes in South America resulting from a poor corn harvest in Brazil and lower iron ore volumes. In Germany, bulk-shipping volumes declined due to low water levels on the River Rhine, and lower demand and pricing pressures from the steel, energy, commodities and construction industries. The South American business is utilising five push boats with 60 barges, some redeployed from Europe. Two additional push boats with 24 barges will be commissioned in March 2017.

The Supply Chain Solutions business performed well with a strong performance from the automotive and industrial operations more than offsetting lower volumes from key customers in the retail and contract chemical operations.

Despite the uncertainty of Brexit, the weakening of the Pound and budgeted losses from the start-up operations in Germany, Palletways performed well during the period and in line with expectations. The franchise network of Palletways in the UK has continued to expand and gain new business. The expansion of the network in European markets remains on track, with the service offering extending to Poland.

Motus

*Restated for the new segment format and excludes businesses held for sale.

Revenue and operating profit for Motus increased by 3% and 6% respectively during the period, impacted by the low growth of consumer durable expenditure in South Africa and significant increases in vehicle prices resulting in contraction of the vehicle market. These factors were reflected in national vehicle sales as reported by NAAMSA, which contracted 13% over the reporting period. The strengthening of the Rand against the Pound reduced the Rand denominated results of the UK business. The weakening of the Rand against the Australian Dollar improved the Rand results of the Australian operations.

The passenger and light commercial vehicle businesses, including the UK and Australia, retailed 54 707 (2016: 61 749) new and 38 748 (2016: 37 649) pre-owned vehicles during the period.

Net capital expenditure of R1,8 billion was incurred (2016: R1,9 billion) largely on vehicles for hire.

The formation and structuring of Motus, under one collaborative leadership team, will in the medium term enhance returns by reducing duplication, complexity, costs and capital employed, unlocking intra-divisional efficiencies and more deeply penetrating the vehicle supply chain, while maintaining market share in challenging environments in the markets in which we operate.

Vehicle Import and Distribution

Exclusive importer and distributor of 16 automotive brands; the major exclusive imported brands being Hyundai, Kia and Renault; and distributorships in six African countries.

Note: Retail dealerships that were previously part of the Vehicle Import, Distribution and Dealerships division are now included in the Vehicle Retail and Rental sub-division

Importer unit sales of passenger and light commercial vehicles, as defined by NAAMSA, decreased by 11% to 39 791 units from 44 506 units on the prior period due to the decrease in sales through the dealer network.

Notwithstanding the challenging trading environment in South Africa, revenue from this sub-division declined marginally by 1% arising from lower volumes and delays in new vehicle launches, partially offset by price increases. Operating profit improved by 2% supported by solid performances from Hyundai and Kia, enhanced by manufacturer assistance, a change in the vehicle mix and price increases. This was offset by a weak performance from Renault where competitiveness and volumes were depressed.

Our importer segment market share of 15% increased 1% from the prior period due mainly to a strong unit volume performance by Hyundai.

Forward cover on the US Dollar and Euro imports currently extends to August 2017, at an average of R15,02 to the US Dollar and R16,47 to the Euro.

Vehicle Retail and Rental

In South Africa retail and rental through:

• 268 passenger vehicle dealerships representing 22 OEMs, which includes 63 dedicated pre-owned retail outlets (Auto Pedigree).
• 193 franchised dealerships
• 19 commercial vehicle dealerships and workshops representing 12 brands in South Africa
• 110 car rental outlets (Europcar and Tempest)
• Panel shops

In the rest of the world retail and rental through:

• 38 commercial vehicle dealerships in the UK
• 5 dealerships in Australia
• 15 car rental outlets (Europcar and Tempest) in Southern Africa

Note: Retail dealerships that were previously part of the Vehicle Import, Distribution and Dealerships division are now included in this sub-division.

The Vehicle Retail and Rental operations recorded a 2% increase in revenue and operating profit impacted by lower volumes but assisted by price increases and an increase in pre-owned vehicle sales. This was despite the disposal of eight dealerships over the past 12 months.

South Africa’s passenger and light commercial vehicle businesses experienced a 14% decline in new vehicle sales to 50 718 units compared to 58 869 units in the prior period. The commercial vehicle markets also experienced a reduction in new retail unit sales, reducing revenue and operating profit.

Revenue and operating profit in the UK Commercial business increased marginally but the strengthening of the Rand by 15% against the Pound over the period reduced the Rand denominated results.

Car rental increased its revenue, operating profit and market share. Despite a challenging and competitive operating environment, all sectors, with the exception of the government sector, performed well during the period. There has been a marked improvement in the utilization of vehicles, but accident costs remain high. In addition to process optimization, automation of the vehicle inspection, claims and recovery processes, the business is on track to implement technological solutions to improve efficiencies and customer service.

Total pre-owned retail unit sales increased by 3%, benefiting from the higher new vehicle prices, which are driving consumers to purchasing pre-owned vehicles. Consequently, the sub-division’s pre-owned to new vehicle ratio continues to increase, consistent with the tightening economy and in line with the broader market.

Panel shops performed well, increasing revenue and operating profit.

The African Regions’ operations, which increased revenue and operating profit during the period, continued to contribute positively.

The Australian operations returned a strong performance off a low base, driven by increased unit sales due to the introduction of new brands in the multi-franchise dealerships and an increase in the Ford range.

Aftermarket Parts

Distributor, wholesaler and retailer of accessories, and parts for older vehicles, through 764 Midas (AAAS), Alert Engine Parts and Turbo Exchange owned and franchised stores.

The Aftermarket Parts business improved revenue and operating profit by 8% and 10% respectively enhanced by parts sales and price increases, and a change in the sales mix.

Financial Services

Developer and distributor of innovative vehicle-related financial products and services through dealer and vehicle finance channels, and a national call centre; full maintenance leasing services.

Despite lower vehicle sales, the Motor Related Financial Services business grew revenue and operating profit by 7% and 16% respectively. Higher profitability was experienced in demo sales and rental income due to higher business volumes. Profitability of the maintenance funds increased as cost increases did not materialize. The book growth and returns from the alliances with financial institutions was tempered by slowing vehicle sales.

We continue to focus on growing the leasing business via Imperial Fleet Management and building synergies within the retail motor divisions to leverage scale for our customers.

Regent is currently held for sale, with the disposal subject to regulatory approvals by the South African authorities. The disposal of the Regent Group’s non-South African operations for an upfront consideration of R697 million was concluded in January 2017. During the year Regent’s underwriting result increased by 10% due to an improved performance in the life business and lower loss ratios in the short-term business. Investment income increased by 3%.

The underwriting performance in Regent’s short-term business benefited from the absence of a loss-making portfolio of business that was terminated in the prior financial year. New business penetration of motor related value added products remained under pressure due to declining vehicle sales.

Group profit and loss (extracts)

*Restated to new calculation method. See glossary of terms.

Total group revenue increased by 2% to R61,3 billion and operating profit increased by 4% to R3,2 billion. Excluding acquisitions, mainly Palletways, revenue and operating profit decreased by 3%.

The group profit before tax declined by 22% mainly due to:

• Foreign exchange losses of R121 million compared to gains of R126 million in the prior period on various monetary items including working capital items, inter-group loan funding and hedging instruments
• Higher finance costs due to higher costs of funding and higher debt levels resulting from the Palletways acquisition and delays in the receipt of proceeds from assets and businesses held for sale;
• Higher amortisation of intangible assets of R263 million from R207 million in the prior period, arising from acquisitions; and
• The prior period benefited from the profit on sale of Neska of R447 million, partially offset by intangible impairments of R303 million.

Income from associates and joint ventures decreased by R11,0 million compared to the prior period largely as a result of the sale of Mix Telematics.

The effective tax rate for the group is 31,0%, up from 28,6% in the prior period mainly due to loss making operations where we have not recognised a tax credit in the income statement, largely Renault and Imperial Cold Logistics..

The profits attributable to the non-controlling shareholders were down on the prior period. This is due to the purchase of the non-controlling shareholders’ interest in Associated Motor Holdings and AAAD (Midas), and in the second half of 2016 the sale of the Goscor group, which had a 32,5% non-controlling shareholder.

Reconciliation from Earnings to Headline and Core Earnings

 

Earnings, Headline Earnings and Core Earnings per Share

 

Financial position

Goodwill and intangible assets rose by 30% to R9,8 billion primarily due to the acquisition of the Palletways Group of R3,3 billion and Itumele Bus Lines of R101 million. This was partially offset by the amortisation of intangibles and Rand strength.

Property, plant and equipment decreased by R1,5 billion to R10,0 billion primarily from disposal of properties and the reclassification of properties to “assets held for sale” during the period.

Investment in associates and joint ventures decreased by R71 million, mainly as a result of the Rand strength.

The transport fleet decreased by 1% or R66 million. The net investment in trucks and barges of R293 million and acquisitions of R269 million was offset by currency adjustments of R311 million resulting from a stronger Rand and depreciation of R344 million.

Vehicles for hire increased by R851 million due to an increase in the car rental fleet and higher sales to external car rental companies by the importers.

Assets held for sale now includes Regent, properties and other businesses identified during 2016 as being available for sale. These additional businesses are: Logistics – Imperial Express, LTS Kenzam and Motus – Jurgens, Safari Centre.

Total assets increased by 5% to R73,3 billion due mainly to acquisitions and capital expenditure, partly reduced by currency adjustments as a result of the strengthening Rand.

Total equity including non-controlling interests (minority) is R19,3 billion, down 3% (R532 million) from June 2016. Due to the Rand strengthening, the foreign currency translation reserve decreased equity by R831 million and the hedge accounting reserve reduced equity by R337 million.

Movement in equity for the six months to December

 

Cash flow

Cash generated by operations of R4,3 billion and the increase in net debt of R4,1 billion funded the following: increase in working capital of R2,4 billion; capital expenditure of R2,4 billion; dividend payments of R1,0 billion; tax payments of R660 million; interest payments of R823 million; acquisitions net of disposals of R1,7 billion; and other inflows of R490 million, which mainly included the sale of Mix Telematics. The higher net working capital was mainly due to higher cost of inventory and increased stock levels in the vehicle businesses, and an increase in trade receivables in Logistics International.

Liquidity

The group’s liquidity position is strong with R12,5 billion of unutilised banking facilities, excluding asset backed finance facilities. 78% of the Group debt is long-term in nature and 63% of the debt is at variable rates. The group’s international scale credit rating by Moody’s is unchanged at Baa3. The net debt to equity ratio is currently at 98%.

• In recent years, although no formal dividend policy exists, the Imperial ordinary dividend was determined by reference to Core Earnings. In future the dividend will be determined by reference to HEPS, which is the conventional metric on which dividend is based, and the board will determine the dividend cover with due regard to the company’s circumstances. An interim cash dividend of 320 cents per ordinary share (2016: 370 cents per share) being 47% of HEPS has been declared.

Effective 1 March 2017, Mr Mohammed Akoojee, currently Chief Executive Officer of Imperial Logistics African Regions, will become the Group Chief Financial Officer. He will succeed Mr Osman Arbee who remains on the board in his new role as Chief Executive Officer of Motus Corporation, the recently created Vehicles division.

Since late 2014, in less than favourable conditions, Imperial has focussed on unlocking value through fundamental and far-reaching changes to the portfolio focus, capital intensity, organisation structure, management profile and now, disclosure to shareholders. While continuous change is the hallmark of any successful organisation, the changes to date have established a solid foundation for improved growth and returns in the medium term.

In the short term – the balance of F2017 – we face pressure on revenue and margins, most particularly in our logistics operations beyond South Africa and our Vehicle Import and Distribution business where fully priced inventory and out of the money forward cover must work through the system.

The expected sub-divisional segmental performance for the year to June 2017 is as follows:

Imperial Logistics:

• South Africa: Growth of revenues and operating profit.
• African Regions: Decline in revenues and operating profit attributable primarily to the indirect impact of currency movements on volumes and translation of profits into Rands.
• International: Growth of revenues and operating profit, attributable to the acquisition of Palletways, and a recovery in the German and South American businesses, which are dependent on weather conditions and customer volumes.

Motus

• Import and Distribution: Flat revenues and a decline in operating profit, impacted by challenging trading conditions and the high cost of foreign exchange cover to August 2017.
• Retail and Rental: Decline in revenues and operating profit attributable to challenging trading conditions in South Africa.
• Aftermarket Parts: Increase in revenues and operating profit, enhanced by the sale of Jurgens.
• Motor Related Financial Services: Growth of revenues and operating profit.

Subject to stable currencies in the economies in which we operate, and South Africa retaining its investment grade, we expect the Imperial group to achieve a single digit increase in revenues and unchanged operating profit for the year to June 2017. However, a significant increase in foreign exchange losses and higher financing costs will negatively impact headline earnings for the year to June 2017.

We thank shareholders for their support and will continue to execute on our espoused strategies.

MARK J. LAMBERTI – Chief Executive Officer
OSMAN S. ARBEE – Chief Financial Officer

The results to and financial position at 31 December 2016 and forecast financial information herein has not been reviewed or reported on by Imperial’s auditors.

PREFERENCE SHAREHOLDERS

Notice is hereby given that a gross interim preference dividend of 434.31164 cents per preference share has been declared by the Board of Imperial, payable to holders of non-redeemable, non-participating preference shares. The dividend will be paid out of reserves.

The preference dividend will be subject to a local dividend tax rate of 15%. The net preference dividend, to those shareholders who are not exempt from paying dividend tax, is therefore 369.16489 cents per share.

Ordinary shareholders

Notice is hereby given that a gross interim ordinary dividend in the amount of 320.00000 cents per ordinary share has been declared by the Board of Imperial, payable to holders of ordinary shares. The dividend will be paid out of reserves.

The ordinary dividend will be subject to a local dividend tax rate of 15%. The net ordinary dividend, to those shareholders who are not exempt from paying dividend tax, is therefore 272.00000 cents per share.

The company has determined the following salient dates for the payment of the preference dividend and ordinary dividend:

The company’s income tax number is 9825178719.

Share certificates may not be dematerialised/rematerialised between Wednesday, 22 March 2017 and Friday, 24 March 2017, both days inclusive.

On Monday, 27 March 2017, amounts due in respect of the preference dividend and the ordinary dividend will be electronically transferred to the bank accounts of certificated shareholders that utilise this facility. In respect of those who do not, cheques dated Monday, 27 March 2017 will be posted on or about that date. Shareholders who have dematerialised their shares will also have their accounts, held at their CSDP or Broker, credited on Monday, 27 March 2017.

On behalf of the board

RA Venter
Group Company Secretary

20 February 2017