Trading Statement EOH HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration number 1998/014669/06) Share code: EOH ISIN: ZAE000071072 (“EOH”) TRADING STATEMENT In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on will differ by more than 20% from that of the previous corresponding period. Accordingly, a review of the financial results for the six months ended 31 January 2018 by management has indicated that: - Revenue is expected to be approximately R8,4 billion, reflecting an increase of about 16%, indicating a market-share increase; - EBITDA from continuing operations is expected to be between R980 million and R1 035 million, reflecting a decline of between 5% and 10%; - Headline earnings per share from continuing operations is expected to be between 312 cents and 333 cents, reflecting a decline of between 20% and 25% compared to the headline earnings per share from continuing operations of 416 cents for the previous corresponding period; - Despite the challenging general market conditions during this period, most areas of the business coped well. However certain areas in the business, particularly those operating in the public sector, have under-performed and did not timeously adjust their cost base; - In view of the challenges during the period, EOH adopted a deliberate customer retention strategy whilst sacrificing some margin; - Headline earnings per share is expected to be between 307 cents and 350 cents reflecting a decline of between 20% and 30% compared to the headline earnings per share of 438 cents for the previous corresponding period; - Earnings per share from continuing operations is expected to be between 312 cents and 333 cents, reflecting a decline of between 20% and 25% compared to the earnings per share from continuing operations of 416 cents for the previous corresponding period; and - Earnings per share (net of the after tax, non-cash, once-off deduction of R399 million from the disposal of businesses as per the SENS announcement dated 3 January 2018), is expected to be between 44 cents and 66 cents reflecting a decline of between 85% and 90% compared to the earnings per share of 439 cents for the previous corresponding period. Outlook: - EOH expects improved market conditions and increased business confidence over the next period. - EOH expects better performance from the under-performing units mentioned above, for the next six month period. Following the groups strategic review, EOH announced its strategy on 12 March 2018 as follows: - EOH has decided that it shall form two independent businesses within EOH for the long-term benefit of all stakeholders, each with its own identity and brand growth strategy; go-to-market approach; business model and culture. - The first business will trade under the EOH brand and focus on ICT services and solutions. It will be a highly efficient integrated business with cross-industry IP; have an integrated go-to- market strategy focused on organic growth driven by new generation digital technologies. - The second business will be characterised by a high degree of specialisation in each business area; it will have domain specific IP; each business area will be less integrated and operate relatively autonomously; it will operate in high growth industries and be differentiated by its domain specific offerings. Growth will be driven equally by acquisitions and organic growth. - The benefit of having two highly focused businesses will enable each business to realise its full potential with clarity of brand and identity; a simplified business model and reduced complexity; greater oversight and stronger governance; increased agility; and the reversal of diseconomies of scale. - To facilitate growth, remain relevant and continue to promote black economic empowerment, EOH has signed a long-term partnership with Lebashe, a 100% black-owned investment holding company. - The strategic alignment of Lebashe and EOH’s interests through an equity transaction presents an opportunity for both parties to jointly pursue growth opportunities to the benefit of both sets of stakeholders. - The transaction will result in an equity investment by Lebashe of R250 million and the provision of a funding facility of R3 billion. EOH will have access to such facility for growth opportunities whilst significantly increasing its BEE ownership by a minimum of 20.3%. EOH expects that the implementation of its strategy, enhanced by stronger empowerment credentials, will result in a more competitive and cost-effective organisation, leading to increased profitability and accelerated growth. The information on which this trading statement is based has not been reviewed or reported on by EOH’s auditors. EOH's financial results are expected to be released on SENS on 28 March 2018. Johannesburg 14 March 2018 Sponsor Merchantec Capital Date: 14/03/2018 09:15:00 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.