Trading statement LIFE HEALTHCARE GROUP HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2003/002733/06) ISIN: ZAE000145892 Share Code: LHC ("Life" or "the Group" or "the Company") TRADING STATEMENT Life is currently finalising the Group's financial results for the year ended 30 September 2018. Further to the trading statement released on the Stock Exchange News Service on 1 June 2018 as part of the Company's interim results announcement and the trading update released on 28 September 2018, shareholders are advised that the Group's revenue, normalised EBITDA, earnings per share (EPS) and headline earnings per share (HEPS) for the year ended 30 September 2018 are expected to vary from those for the prior year ended 30 September 2017, within the following ranges: Measure Estimated Estimated number Reported year Notes percentage range range for year ended 30 for year ended 30 ended 30 September 2017 September 2018 September 2018 Revenue +10.0% to +14.0% R22 877m to R20 797m R23 709m - Southern Africa +7.0% to +10.0% R17 002m to R15 890m R17 479m - Alliance Medical +29.0% to +32.0% R4 917m to R3 812m 1 R5 032m - Poland +13.0% to +16.0% R1 237m to R1 095m R1 270m Normalised EBITDA +8.0% to +11.0% R5 401m to R5 001m 1 R5 551m - Southern Africa +5.0% to +8.0% R4 251m to R4 R4 049m 373m - Alliance Medical +26.0% to +29.0% R1 144m to R908m 1 R1 171m - Poland +90.0% to 95.0% R84m to R86m R44m EPS (cents) +67.0% to +77.0% 103.9 to 110.1 62.2 2 HEPS (cents) +35.0% to +45.0% 104.5 to 112.2 77.4 2 Shares in issue (‘000) 1 467 349 1 449 390 Weighted average number of shares (‘000) (approx.) 1 450 709 1 309 722 1. The Group results are expected to be marginally higher than previously disclosed in the trading update released on 28 September 2018 due to the better than expected performance of Alliance Medical as a result of stronger than anticipated exchange rates in favour of Alliance Medical Group Limited (Alliance Medical) and better than predicted performance of acquisitions concluded during 2018. The adjustment to the Alliance Medical management incentive scheme provision, due to a lower valuation, also contributed to the improved overall financial results. The above has resulted in an improved EBITDA margin for Alliance Medical. 2. EPS and HEPS EPS for the year ended 30 September 2018 is expected to be between 103.9 cents per share (cps) and 110.1 cps, a growth of between 67.0% and 77.0% above the prior year reported EPS of 62.2 cps. Earnings in the current year have been impacted by the following: - improved overall performance of the business; - the inclusion of Alliance Medical results for 12 months (2017: 10.3 months); - the subsequent acquisitions by Alliance Medical; - the weakening of the rand against the British Pound, Euro and Polish Zloty; - the results reflect a gain of approximately R74 million (2017: loss of R65 million) relating to the acquisition by Life Healthcare of the minority shareholding in Alliance Medical; - the prior year includes the non-recurring impact of a number of once-off items, such as: - costs related to the Alliance Medical acquisition (principally transaction costs of R267 million and funding costs of R427 million); and - the impairment of the Scanmed S.A. business in Poland (R167 million). The improvement in earnings has been partially offset by: - the increase in the amortisation of intangible assets related to the Alliance Medical business included for 12 months while the amortisation charge was only for 10.3 months in the comparable year; and - the weighted number of shares in issue in the current year increased by roughly 10.8% due to the effect of the rights offer shares issued in April 2017 as well as the scrip distribution shares issued during the current year. HEPS is expected to be between 104.5 cps and 112.2 cps, a growth of between 35.0% and 45.0% above the prior year reported HEPS of 77.4 cps. - HEPS in the current year excludes the impact of impairments as well as the profit on sale of property, plant and equipment (PPE) mainly in southern Africa. In the prior year, HEPS excluded the Polish impairment of R167 million and the loss on disposal of PPE. The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors. The Company expects to release its financial results for the year ended 30 September 2018 on the Stock Exchange News Service on or about 23 November 2018. Illovo 9 November 2018 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 09/11/2018 07:05:00 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. 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