Trading Statement ELLIES HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2007/007084/06) JSE share code: ELI ISIN: ZAE000103081 ("Ellies" or the "company") TRADING STATEMENT In terms of the Listings Requirements of the JSE Limited, companies are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported upon next will differ by at least 20% from the previous corresponding period. Shareholders are accordingly advised that Ellies expects to be within the ranges reflected in the table below of earnings per share ("EPS") and headline earnings per share ("HEPS") for the six month period ended 31 October 2018: Six months ended Six months ended % change 31 October 2018 31 October 2017 (cents per share) (cents per share) Earnings per share 11,24 - 11,90 3,30 240,6% - 260,6% Headline (Loss)/Earnings (0,07) - 0,54 3,05 (82,3%) - (102,3%) per share The increase in EPS is attributable to a profit on deconsolidation of BotjhengWater of R75 million on the finalisation of the Cooperative Muratori Cementisi Ravenna dispute and the restructuring of the Standard Bank guarantee as reported in notes 38 and 39 of the audited annual financial statements for the year ended 30 April 2018. Revenue is expected to be 2,7 % lower than in the comparable period given the subdued economy. The gross margin was maintained however operating expenses, mainly salaries and occupancy costs, have increased by 9,8%. HEPS is adjusted for the profit on deconsolidation, which has resulted in a lower amount per share compared to the prior year. The financial results for the six months ended 31 October 2018 is anticipated to be released on or about 31 January 2019. The forecast financial information on which this trading statement is based has not been reviewed and is not being reported on by the Company´s external auditors. 28 January 2019 Sponsor Java Capital Date: 28/01/2019 05:40:00 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.