JSE Sens

KAP INDUSTRIAL HOLDINGS LIMITED - Trading statement

13 August 2019 - 17:45 PM
KAP007 KAP009 KAP008 KAP012 KAP010 KAP013 KAP006 KAP014 KAP11
Trading statement

KAP INDUSTRIAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1978/000181/06)
JSE alpha code: KAP
 ("KAP" or "the Company")


TRADING STATEMENT


In terms of the Listings Requirements of the JSE Limited, a listed company is required to
publish a trading statement once it is satisfied that a reasonable degree of certainty exists that
the financial results for the period to be reported on next will differ by at least 20% from the
financial results for the previous corresponding period.

Shareholders are referred to the SENS announcement of 19 June 2019 and KAPs unaudited
interim results for the six months ended 31 December 2018, as reported on 12 February 2019,
where reference is made to the non-recurring IFRS 2  Share-based Payment costs incurred
pertaining to the Unitrans B-BBEE transaction (B-BBEE Cost). The B-BBEE Cost
recognised for the year ended 30 June 2019 is R196 million, equating to 7.3 cps impacting
earnings per share (EPS) and headline earnings per share (HEPS).

Shareholders are advised that KAP is in the process of finalising its results for the year ended
30 June 2019.

Accordingly, KAP wishes to inform shareholders that there is a reasonable degree of certainty
that the Companys anticipated EPS and HEPS is expected to decrease by more than 20%
compared to 30 June 2018, and a range as contemplated in the JSE Listings Requirements
is provided below:

    -   EPS is expected to be between 40.1 cps and 36.4 cps, representing a decrease of
        between 31% and 37% compared to the EPS of 57.7 cps reported for the year ended
        30 June 2018; and

    -   HEPS is expected to be between 44.9 cps and 41.3 cps, representing a decrease of
        between 25% and 31% compared to the HEPS of 59.8 cps reported for the year ended
        30 June 2018.

Excluding the B-BBEE Cost referred to above, which is non-recurring, non-cash and non-
taxable, there is a reasonable degree of certainty that the Companys anticipated HEPS from
continuing operations is expected to be between 55.5 cps and 51.7 cps, representing a
decrease of between 10% and 16% compared to the HEPS from continuing operations of 61.6
cps reported for the year ended 30 June 2018.

Operational execution was sound with significant progress made during the year in key areas.
Managements focus on cash generation resulted in an increase in cash generated from
operations, which is expected to be between 20% and 24% higher than the prior year with free
cashflow (before dividends) of approximately R2 billion. The settlement of interest-bearing
debt improved gearing levels to between 33% and 37%, thereby strengthening the companys
balance sheet.

The financial information on which this trading statement is based has not been reviewed or
reported on by KAPs auditors.

The results for the year ending 30 June 2019 is expected to be published on SENS on or
about 20 August 2019.

Stellenbosch
13 August 2019

Debt Sponsor
Nedbank Corporate and Investment Banking

Date: 13/08/2019 05:45:00
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