Trading Statement And Update Alviva Holdings Limited (Incorporated in the Republic of South Africa) Registration number 1986/000334/06 Share Code: AVV ISIN: ZAE000227484 (“Alviva” or “the Group” or “the Company”) TRADING STATEMENT AND UPDATE The trading statement is published in compliance with paragraph 3.4(b) of the JSE Listings Requirements. Headline earnings, Earnings per Share (“EPS”), Headline Earnings per Share (“HEPS”) and Core Earnings per Share (“Core EPS”) Shareholders are advised that the Company is reasonably certain that its results for the six months ended 31 December 2019 will reflect the following: Six months to 31 Six months to 31 December Expected change December 2018 2019 percentage Actual Expected Values Headline earnings R214 million -39% to -46% R115 million to R130 million EPS 146.3 cents -33% to -41% 86 cents to 98 cents HEPS 146.2 cents -33% to -41% 86 cents to 98 cents CORE EPS 172.4 cents -21% to -31% 120 cents to 136 cents The Company has produced disappointing results for the period, mainly as a result of the performance of the Distribution segment. This segment has been affected by the tough economic environment, operating challenges with its new ERP system, minor losses on forex positions compared to profits in the prior period, and changes in the go to market strategy adopted by a large vendor, all of these in approximately equal measure. The balance of the decrease in profitability has been brought about through the increase in the amortisation charges on intangible assets, further impairment charges on the loan to an associate, and the introduction of IFRS 16 (see note below). Notes: 1. The Group has adopted IFRS 16 effective from 1 July 2019 whereby right-of-use assets and associated liabilities for its operating leases of equipment and properties have been recognised. The nature of expenses related to those leases has changed as the group now incurs depreciation charges for the right-of-use assets and interest expenses on the lease liabilities. Previously, the group recognised operating lease expenses on a straight- line basis over the term of the leases. The Group has applied the modified retrospective approach whereby historic comparative information has not been restated. IFRS 16 has no impact on the income statement over the full lease term but is earnings dilutive towards the beginning of the relevant lease term and earnings enhancing towards the end of the lease term. The pre-tax effect on the profit for the six months ended 31 December 2019 was a decrease of approximately R9.9 million. The Group is on average at the beginning stages of most of its leases and hence the reduction in all earning metrics in the current period. Cash outflows associated with the adoption of IFRS 16 regarding the payment of the lease obligations did not and will not change going forward. 2. Consistent with prior reporting the Company aims to present to shareholders the same information that management utilises to evaluate the performance of the Group's operations. Accordingly, we present Core EPS, which is headline earnings (as calculated based on SAICA Circular 4/2018) adjusted for the amortisation charge of intangible assets recognised on business combinations and expenses incurred in the acquisition of these entities. The above information has not been reviewed or reported on by the Company's external auditors. The Company's unreviewed interim results for the six months ended 31 December 2019 are expected to be published on SENS on or about 2 March 2020. Midrand 14 February 2020 Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd Date: 14-02-2020 11:00:00 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.