Trading statement AVENG LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1944/018119/06) ISIN: ZAE000111829 SHARE CODE: AEG ("Aveng", "the Company" or “the Group”) TRADING STATEMENT The Group is expected to report an overall operating profit for the period. The operating performance of core businesses over the first six months of the financial year has been positively impacted by the return to profitability of the Moolmans business together with the continued profitability of McConnell Dowell. In accordance with section 3.4 (b) of the JSE Listings Requirements, issuers 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 on will differ by at least 20% from those of the prior comparative period. Shareholders are advised that the financial results for the period ended 31 December 2019 are expected to reflect a material improvement on the comparative period. The basic loss for the six months ended 31 December 2019 is expected to be between R151 million and R185 million, representing an improvement of between 84% and 80% from the R918 million loss reported in the comparative period. The headline loss for the period will improve to between R185 million and R226 million, representing an improvement of between 74% and 68% from the restated headline loss of R703 million in the comparative period. The prior period headline loss has been restated from R770 million to R703 million (HEPS loss decreasing to 5.5cps from 6.1cps). In the prior financial year, a restatement was reported following an extensive assessment of asset health within Moolmans carried out in that financial year. This resulted in certain costs being disaggregated within already recorded cost of sales to better reflect how the asset components are utilised. Consequently, these costs have been reflected as a loss on derecognition of components following early component failure. It should be noted that the HEPS and EPS loss values were impacted by an increase in the weighted average number of shares in the period. The weighted average number of shares in issue at 31 December 2019 has increased to 19 395.5 million (12 676.3 million at 31 December 2018). The increase in the weighted average number of shares is as a result of the rights issue and shares issued relating to the early redemption of the convertible bond in the prior year. The HEPS loss is expected to reduce to be between 1.0cps and 1.2cps, representing an improvement of between 83% and 79% compared to a restated loss of 5.5cps at 31 December 2018. The EPS loss will be between 0.8cps and 1.0cps, representing an improvement of between 89% and 87% against a reported loss of 7.2cps in the comparative period. The Group will release its results for the period ended 31 December 2019 on 25 February 2020. The financial information contained in this trading statement has not been reviewed nor reported on by Aveng's independent external auditors. 21 February 2020 Melrose Arch JSE Sponsor UBS South Africa Proprietary Limited Michael Canterbury Group Executive: Strategy & Investor Relations Tel: 011 779 2979 Email: michael.canterbury@avenggroup.com Date: 21-02-2020 03:41:00 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.