SENS Announcements

Unaudited Interim Results For The Period Ended 28 February 2017

African Equity Empowerment Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: AEE and ISIN: ZAE000195731
("AEEI" or "the Group" or "the Company")

Unaudited interim results for the period ended 28 February 2017

Condensed Group Statement of Financial Position
Unaudited Unaudited Audited
Group to Group to Group to
28 February 29 February 31 August
2017 2016 2016
6 months 6 months 12 months
R'000 R'000 R'000
Assets
Non-current assets 1 492 251 1 273 331 1 428 019
Property, plant and equipment 152 387 151 712 147 086
Goodwill 81 070 56 832 56 832
Intangible assets 339 424 329 365 338 640
Investments in associates 464 767 9 169
Investment in joint ventures 115 - 115
Other loans receivable 9 967 6 880 9 496
Other financial assets 428 803 711 902 858 240
Deferred tax 14 718 14 460 17 310
Prepayments 1 000 2 171 131

Current assets 348 677 262 534 263 200
Inventory 48 106 43 622 45 439
Biological assets 48 359 46 262 48 169
Other loans receivable 15 711 11 981 6 805
Current tax receivable 1 718 154 1 465
Trade and other receivables 149 901 100 760 96 482
Cash and cash equivalents 84 882 59 755 64 840

Total assets 1 840 928 1 535 865 1 691 219

Equity and liabilities
Equity
Equity attributable to equity holders of parent

Share capital and share premium 403 177 403 177 403 177
Reserves 8 034 8 034 8 034
Retained income 652 402 357 594 505 241
1 063 613 768 805 916 452
Non-controlling interest 74 380 78 366 84 583
1 137 993 847 171 1 001 035

Liabilities
Non-current liabilities 492 457 503 666 560 008
Other financial liabilities 276 292 255 647 253 004
Deferred tax 210 528 245 188 299 102
Other non-current liabilities 5 637 2 831 7 902

Current liabilities 210 478 185 028 130 176
Trade and other payables 112 753 107 578 74 262
Other financial liabilities 25 254 12 007 12 587
Current tax payable 11 482 9 093 9 906
Provisions 21 272 20 932 23 390
Other current liabilities 1 910 1 580 260
Bank overdraft 37 807 33 838 9 771

Total equity and liabilities 1 840 928 1 535 865 1 691 219

Net asset value per share (cents) 216.47 156.47 186.52

Condensed Group Statement of Profit and Loss and Other Comprehensive Income
Unaudited Unaudited Audited
Group to Group to Group to
28 February 29 February 31 August
2017 2016 2016
6 months 6 months 12 months
R'000 R'000 R'000
Revenue 448 785 305 318 752 203
Cost of sales (287 912) (207 594) (495 646)
Gross profit 160 873 97 724 256 557
Other income 5 390 3 761 3 454
Fair value adjustments 151 437 50 405 194 947
Other operating expenses (136 668) (78 752) (176 855)
Net impairments, impairment reversals and write off (352) - 5 363
Gain on disposal of subsidiaries - 465 1 034
Profit from equity accounted investments 9 070 - 242
Investment revenue 8 212 11 234 33 592
Finance cost (12 580) (11 069) (26 232)
Profit before taxation 185 382 73 768 292 102
Taxation (47 181) (16 261) (80 538)
Profit from continuing operations 138 201 57 507 211 564
Discontinued operations
Loss from discontinued operations - - (3 037)
Profit for the year 138 201 57 507 208 527
Other comprehensive income - - -
Total comprehensive income 138 201 57 507 208 527

Total comprehensive income attributable to:
Equity holders of the parent 144 832 68 991 216 623
Non-controlling interest (6 631) (11 484) (8 096)
138 201 57 507 208 527
Basic and diluted earnings per ordinary share (cents) 29.48 14.04 44.09
Headline earnings and diluted headline earnings per ordinary share (cents) 29.53 14.02 43.13

Weighted (and fully diluted) average number of ordinary shares in issue (000s) 491 339 491 339 491 339

Condensed Group Statement of Changes in Equity
For the period ended 28 February 2017
Attributable Non-
To Controlling Total
Parent interest Equity
R'000 R'000 R'000
Balance at 01 September 2015 712 106 92 443 804 549
Profit for the period 216 623 (8 096) 208 527
Dividends paid (12 292) (2 234) (14 526)
Changes in ownership interest - control not lost 15 2 470 2 485
Balance at 31 August 2016 916 452 84 583 1 001 035
Profit/(loss) for the period 144 832 (6 631) 138 201
Changes in ownership interest (rights issue) - control not lost 18 739 (18 739) -
Dividends paid (16 221) (5 455) (21 676)
Changes in ownership interest
(disposal and share issue) - control not lost (189) 7 589 7 400
Business combinations - 13 033 13 033
Balance at 28 February 2017 1 063 613 74 380 1 137 993

Condensed Group Statement of Cash Flows
Unaudited Unaudited Audited
Group to Group to Group to
28 February 29 February 31 August
2017 2016 2016
6 months 6 months 12 months
R'000 R'000 R'000
Cash generated by operations 46 126 32 913 86 187
Investment revenue 8 212 11 234 33 592
Finance cost (12 580) (11 069) (26 262)
Other operating activities (6 643) (4 355) (18 170)
Net cash flows from operating activities 35 115 28 723 75 377
Cash flows from investing activities
Net movement in property, plant and equipment (15 665) (7 185) (12 464)
Net movement in intangible assets (2 399) (940) (2 060)
Business combination (5 755) - -
Movement in other investing activities (6 507) 2 589 (6 930)
Proceeds from sale of financial assets - 20 000 20 000
Purchase of financial assets - (136 509) (136 509)
Net cash flows from investing activities (30 326) (122 045) (137 963)
Repayment of other financial liabilities (14 548) (53 925) (59 789)
Receipt of other financial liabilities 20 379 166 809 171 839
Dividends paid including minorities (18 614) (12 292) (13 042)
Net cash flows from financing activities (12 783) 100 592 99 008
Total cash movement for the period (7 994) 7 270 36 422
Cash and cash equivalent at the beginning of the period 55 069 18 647 18 647

Cash and cash equivalents at the end of the period 47 075 25 917 55 069

Condensed Group Segmental Report Food and Health
Technology fishing Care
Unaudited Unaudited Unaudited
28 February 28 February 28 February
2017 2017 2017
6 months 6 months 6 months
R'000 R'000 R'000
Revenue 236 390 182 527 2 647
External revenue 233 683 182 527 2 647
Internal revenue 2 707 - -

Segment results
Operating profit/(loss) 197 177 25 311 (966)

Included in segment results:
Net impairments, impairment reversals and write off - - -
Fair valuation of investments 170 000 - -

Carrying amount of assets 638 436 333 776 9 391
Carrying amount of liabilities 72 034 185 088 1 624

Events
Biotechnology Corporate and Tourism
Unaudited Unaudited Unaudited
28 February 28 February 28 February
2017 2017 2017
6 months 6 months 6 months
R'000 R'000 R'000
Revenue 4 14 632 28 114
External revenue 4 3 136 26 788
Internal revenue - 11 496 1 326

Segment results
Operating profit/(loss) (8 079) (29 261) (3 502)

Included in segment results:
Net impairments, impairment reversals and write off - (352) -
Fair valuation of investments - (18 563) -

Carrying amount of assets 350 066 463 926 45 333
Carrying amount of liabilities 92 004 318 631 33 554

Group
Unaudited
28 February
2017
6 months
R'000
Revenue 464 314
External revenue 448 785
Internal revenue 15 529

Segment results
Operating profit/(loss) 180 680

Included in segment results:
Net impairments, impairment reversals and write off (352)
Fair valuation of investments 151 437
Carrying amount of assets 1 840 928
Carrying amount of liabilities 702 935

Food and
Technology fishing Health Care
Unaudited Unaudited Unaudited
29 February 29 February 29 February
2016 2016 2016
6 months 6 months 6 months
R'000 R'000 R'000
Revenue 112 936 170 378 2 024
External revenue 107 136 170 378 2 024
Internal revenue 5 800 - -

Segment results
Operating profit/(loss) 169 062 22 498 (1 916)

Included in segment results:
Net impairments, impairment reversals and write off - - -
Fair valuation of investments 150 000 - -

Carrying amount of assets 443 021 289 768 17 899
Carrying amount of liabilities 100 547 153 727 2 007

Events
Biotechnology Corporate and Tourism
Unaudited Unaudited Unaudited
29 February 29 February 29 February
2016 2016 2016
6 months 6 months 6 months
R'000 R'000 R'000
Revenue - 18 323 20 033
External revenue - 6 434 19 346
Internal revenue - 11 889 687

Segment results
Operating profit/(loss) (4 397) (109 114) (2 530)

Included in segment results:
Net impairments, impairment reversals and write off 335 - -
Fair valuation of investments - (99 596) -

Carrying amount of assets 346 423 389 248 49 506
Carrying amount of liabilities 88 400 303 717 40 296

Group
Unaudited
29 February
2016
6 months
R'000
Revenue 323 694
External revenue 305 318
Internal revenue 18 376
Segment results
Operating profit/(loss) 73 603

Included in segment results:
Net impairments, impairment reversals and write off 335
Fair valuation of investments 50 405

Carrying amount of assets 1 535 865
Carrying amount of liabilities 688 694

Note:
The investment in BT Communication Services South Africa Proprietary Limited ("BT") was previously disclosed under Corporate and is now disclosed under
the Technology division. The Events and Tourism division excludes Magic 828 Proprierty Limited ("Magic 828") as the Company was managed under the corporate office
for the first six months under review.

Determination of headline earnings
Unaudited Unaudited Audited
28 February 29 February 31 August
2017 2016 2016
6 months 6 months 12 months
R'000 R'000 R'000
Earnings attributable to ordinary equity holders of parent entity IAS 33 144 832 68 991 216 623
Adjusted for:
Impairment of intangible assets IAS 38 - 241 (4 368)
Loss on disposal of property, plant and equipment IAS 16 284 - 419
Gain on disposal of subsidiaries IFRS 3 - (335) (744)

Headline earnings 145 116 68 897 211 930
Headline earnings per ordinary share (cents) 29.53 14.02 43.13

Diluted headline earnings per ordinary share (cents) 29.53 14.02 43.13

Reconciliation of reportable segments profit or loss
Unaudited Unaudited Audited
28 February 29 February 31 August
2017 2016 2016
6 months 6 months 12 months
R'000 R'000 R'000
Total operating profit for reportable segments 180 680 73 603 284 500
Adjusted for:
Profit/(loss) from equity accounted investments 9 070 - 242
Investment revenue 8 212 11 234 33 592
Finance cost (12 580) (11 069) (26 232)
Profit before taxation 185 382 73 768 292 102

Taxation (47 181) (16 261) (80 538)

Profit for the period and total comprehensive income from continuing operations 138 201 57 507 211 564
Loss from discontinued operations - - (3 037)
Profit for the period and total comprehensive income 138 201 57 507 208 527

Highlights compared to the prior year interim period:

- Revenue increased by 47% from R305m to R449m.
- Operating profit increased by 145% from R74m to R181m
- Earnings per share increased by 110% from 14.04 cents to 29.48 cents.
- Headline earnings per share increased by 111% from 14.02 cents to 29.53 cents.
- Total assets increased by 20% from R1 535m to R1 841m.
- Net asset value increased by 34% from R847m to R1 138m.
- Net cash generated from operating activities increased by 21% from R29m to R35m.

Group performance

The Group delivered excellent revenue and profit growth as a result of the strong contributions from all its underlying operations and investments for the
interim period under review.

Group revenue increased by 47% from R305m to R449m, mainly due to the significant growth in revenue from the Technology division, which is in line with
its growth and acquisition plans.

Group operating profit increased by 145% from R74m to R181m compared to the prior interim period.

Group earnings grew by 142% from R57m to R138m compared to the prior interim period.

Headline earnings per share (“HEPS”) increased by 111% from 14.02 cents to 29.53 cents and earnings per share (“EPS”) increased by 110% from 14.04 cents
to 29.48 cents for the six months under review.

Profit before tax for the period increased by 150% from R74m to R185m with improved returns from our diversified investment portfolio.

The Group’s asset base increased by 20% from R1 535m to R1 841m, mainly due to the increase in performance of its operations and investments since the
comparative interim period.

Net asset value (“NAV”) increased by 34% from R847m to R1 138m as a result of the excellent operational performance of all our underlying operations
and investments. The NAV per share increased by 38% from 156.47 cents to 216.47 cents.

As a result of the solid financial performance from the underlying businesses, net cash generated from operating activities increased by 21% from R29m to R35m
for the period under review.

Food and fishing

The Food and Fishing division delivered the expected growth in revenue and earnings, with revenue increasing by 7% from R170m to R182m. Improved catch rates and
greater sales volumes also had a positive impact increasing operating profit by 14% from R22m to R25m. The diversification in the various fish species supported
the diversification strategy. Due to its seasonal nature the division has a stronger performance during the second half of the year.

Based on these results, the Food and Fishing division is expected to meet its forecast.

The abalone division continues to focus on increasing production capacity and efficiencies. The planning and design for the expansion project will commence shortly
on the Gansbaai farm.

On 2 March 2017, the Food and Fishing divison was listed on the main board of the JSE. The Company was able to raise capital in the amount of R526 million on the listing date through
the issue of 117 million new shares to the public, hence increasing the issued shares of the Company from 143 million ordinary shares to 260 million ordinary
shares in issue. The capital raised will be used for the expansion of the abalone farm and further acquisitions of fishing and related products as part
of its growth strategy.

Technology

The Information Communication Technology (“ICT”) division focuses on the growth and development of niche-market ICT companies.

The ICT division delivered strong organic growth and is delivering on its acquisition strategy by having acquired two information technology ("IT") companies to bolster
its product portfolio with revenues increasing by 119% from R107m to R234m, as well as an increase in the operating profit by 17% from R169m to R197. The economies
of scale is in line with our Vision 2020 Vision strategy in preparing this division for its potential listing in the short to medium term.

The diversification in our various ICT businesses will complement its existing portfolio and enhance its future offerings to its greater customer base.

During the period under review the Group obtained significant influence over its investment in BT. This resulted in the division recognising the investment
as an associate from November 2016. The fully paid up investment in BT is well positioned to grow consistently over the next few years. Earnings and dividends have
grown consistently and this is expected to continue in the foreseeable future.

Health Care

The companies under the Health Care division, focuses on the manufacturing, sales and marketing of an extensive range of natural products for the food,
agriculture, hygiene as well as general health sector and beauty products.

The Health Care division achieved growth in revenue by increasing its footprint in other regions and promoting its product portfolio to other food and
hygiene sectors.

Biotechnology

Genius Biotherapeutics ("Genius") South Africa and Africa's largest medical biotechnology Company continues with its research and development activities.

The dendritic cell vaccine project awaits final approval from the Medicines Control Council(“MCC”) to commence with Phase 1 clinical trials on breast cancer.
The research team continues with research and development to commence on pre-clinical trials on extreme drug-resistant tuberculosis.

Genius' management team focused their plans to update all regulatory work and intellectual property by employing the necessary human resources required to
meet MCC compliance standards for the production of Repotin.

Events and Tourism

The Events and Tourism division owns and manages an events planning and production Company, espAfrika Proprietary Limited “(espAfrika”), a travel services Company,
Tripos Travel Proprietary Limited (“Tripos”) and a radio station, Magic 828.

espAfrika, a Group subsidiary, owns and hosted a very successful 18th Cape Town International Jazz Festival post interim period. In 2016 espAfrika also launched
its own annual event called “The Royal Escape Experience” at Sun City and this will be held again in July 2017. The Company’s performance for the six months is in
line with expectations as espAfrika has most of its events and profitability during the second half of the financial year.

Additionally, Magic 828 which has been in existence for less than 20 months increased its listenership by 43% in the Western Cape region to approximately
100 000 listeners.

Tripos increased its market share since the previous period with revenues increasing by 69% from R16m to R27m.

Strategic investments

The Group's strategic investments consist of: Pioneer Foods Group (“Pioneer”), Sygnia Limited (“Sygnia”) and Saab Grintek Defence Proprietary Limited ("SGD")
and BT Communications Services South Africa Proprietary Limited ("BT") (Managed and reported under Technology).

AEEI has minority equity stakes in SGD, Sygnia and Pioneer and these investments have shown improvement in its investment value since the date of the
acquisitions. Consistent growth in earnings and regular dividends are received from all the strategic investments.

Refer to the note from investment to associate below for the change in control in BT which is managed under the Technology division.

Significant events

Business combinations

Aggregated business combinations
Unaudited
28 February
2017
R'000
Property, plant and equipment 4 641
Intangible assets 9 876
Other loans and receivable 5 876
Deferred tax (553)
Inventories 4 458
Trade and other receivables 43 930
Current tax receivable 1 641
Cash and cash equivalents 8 673
Other financial liabilities (4 823)
Provisions (722)
Trade and other payables (41 180)
Current tax payable (85)
Bank overdraft (749)
Total identifiable net assets 30 983

Non-controlling interest (13 033)
Goodwill 24 238
Total purchase price 42 188

Consideration paid
Cash 14 525
Equity - ordinary shares in Sekunjalo Technology Solutions Limited ("STS") 15 301
Loan 4 724
Contingent consideration 7 638
42 188

Net cash outflow on acquisition
Cash consideration paid (14 525)
Cash acquired 8 770
(5 755)

Acquisition of Kalula Communications Proprietary Limited ("Headset Solutions") and Puleng Technologies Proprietary Limited ("Puleng")

During the six months under review, AEEI via STS acquired two businesses in order to bolster the Group’s Technology division in line
with its acquisition strategy.

Effective 1 September 2016 and 1 October 2016, the Group acquired 51% of the equity and voting interest of Headset Solutions and a 57% equity and voting interest
in Puleng. The consideration paid for these businesses amounted to R42m with a cash portion of R19.2m payable on the effective date and balance settled with an
issue of Sekunjalo Technology Solutions Limited shares. Headset Solutions trades in headsets and unified communication which enhances the Group's strategy to
diversify its IT portfolio in line with our Vision 2020 Vision.

Puleng is involved with software development which complements the other IT businesses.

Goodwill of R24.2m arising from the acquisitions largely consists of the synergies and economies of scale expected from combining the operations, as well as
an intangible asset which did not previously qualify for separate recognition. Goodwill is not deductible for income tax purposes.

Non-controlling interest, which is a present ownership interest, and entitle their holders to a proportionate share of the entity's net assets in the event
of liquidation, is measured at the present ownership interests proportionate share of the acquiree's identifiable net assets. There are no other components
of non-controlling interests.

The contingent consideration arrangement requires the Group to pay the previous owners an amount of R3.5m per annum for the next 3 years if the companies
achieves 75% of their free cash flow based on agreed profit warranties.

Receivables acquired per major class comprises of trade and other receivables of R43.4m and other receivables of R5.8m.

The acquisition related costs of R467k have been included in operating expenses in the statement of profit or loss and other comprehensive income.

Revenue of R127m and profit of R6.9m have been included in the Group's trading results since the effective date of the acquisitions.

Investment becomes an associate

The Group holds a 30% equity interest in BT. This investment was accounted for at fair value through profit and loss on 31 October at R579m.

On 23 November 2016, the Board of directors of BT was rearranged which resulted in AEEI having the ability to participate in policy-making processes, including
the participation in decisions resulting in the Group obtaining significant influence. As a result, the investment is treated as an associate in line
with IAS 28. The impact of the change resulted in the investment being recognised as an associate at R464m for the interim period under review.
The financial effects are detailed below.

Unaudited
28 February
2017
R'000
Investment at fair value as at 31 August 2016 409 211
Fair value adjustment up to 31 October 2016 170 000
Investment at fair value as at 31 October 2016 579 211

Amount transferred to investment in associate 579 211
Deferred tax liability raised to date of transfer (123 683)
Share of profits in associate (BT only) 8 919
Investment in associate as at 28 February 2017 464 447

Change in ownership without loss of control

During January 2017, AEEI acquired additional shares in Bioclones Proprietary Limited through its wholly owned subsidiary, African Biotechnological and
Medical Innovations Proprietary Limited ("ABMI") by means of a rights issue amounting to R103m. This resulted in the Group's shareholding increasing from
49.99% to 73.70%. The impact of the transaction in the Group's equity and non-controlling interest amounted to R18.7m which is reflected directly in the
statement of changes in equity.

During the period under review, the Group acquired Headsets Solutions and Puleng on the 01 September 2016 and 01 October 2016 respectively as reflected in
the business combination note above. Included in the consideration amount, Headsets would obtain 1.3m ordinary shares in STS on 01 September 2016 and the
same amount of shares at each anniversary date from an issue of shares by the Company. Additionally, included in the consideration paid to Puleng, the Group
would issue 3.6m ordinary shares in STS on 01 October 2016.

The equity issued by the Group as consideration resulted in a dilution of the Group's shareholding without control being lost, therefore accounted for
directly in equity with non-controlling shareholders.

The above transactions resulted in the Groups equity decreasing by R189k and the non-controlling interest increasing by R7.5m.

Related parties

The Group, in the ordinary course of business entered into various sales and purchases transactions on an arms' length basis with related parties.

Events after reporting period

On the 2 March 2017, the Food and Fishing division listed on the main board of the JSE. The Company was able to raise capital in the amount of R526 million on the listing date
through the issue of 117 million new shares to the public hence increasing the issued shares of the Company from 143 million ordinary shares to 260 million
ordinary shares in issue. The capital raised will be used for expansion of the abalone farm and will accelerate the execution of the growth strategy of the
Food and Fishing division.

Upon listing, the Food and Fishing division issued additional shares resulting in the dilution of AEEI’s shareholding. As control was not lost, the potential
effect of the share issue would result in an adjustment directly in equity of R92m.

Fair value information

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.
Level 2: Other techniques for all inputs which have a significant effect on the recorded fair value and are observable, either directly or indirectly.
Level 3: Techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

As at 28 February 2017, the Group held the following instruments measured at fair value:

Level 1 Level 2 Level 3 Total
2017 R'000s R'000s R'000s R'000s
Listed shares 283 654 - - 283 654
Unlisted shares (Excluding BT) - - 145 149 145 149
Biological assets - - 48 359 48 359
Total 283 654 - 193 508 423 162

Level 1 Level 2 Level 3 Total
2016 R'000s R'000s R'000s R'000s
Listed shares 233 527 - - 233 527
Unlisted shares - - 478 375 478 375
Biological assets - - 46 262 46 262
Total 233 527 - 524 637 758 164

Reporting entity

AEEI is a Company domiciled in South Africa. These condensed consolidated interim financial statements as at and for the six months ended 28 February 2017
comprises AEEI the Company and its subsidiaries ("The Group") and interest in associates and joint ventures. AEEI is a black-controlled entity, which holds
interests in six sectors and promotes Broad-Based Black Economic Empowerment and sound corporate governance practices.

Use of judgments and estimates

In preparing these condensed interim financial statements, management has made judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same
as those that applied to the audited consolidated financial statements as at and for the year ended 31 August 2016.

Measurement of fair values

The Group has an established control framework with respect to the measurement of fair values. The fair valuation calculations are performed by the Group's finance
department and operational team on an annual basis. The finance department reports to the Group's Chief Financial Officer. The valuation reports are approved by the
investment committee in accordance with the Group's reporting policies.

Basis of preparation

The condensed consolidated financial statements are prepared in accordance with the JSE Limited ("JSE") Listings Requirements and the requirements of the Companies Act
of South Africa, 2008 as amended, applicable to summarised financial statements. The JSE Listings Requirements require financial reports to be prepared in accordance
with the framework concepts, the measurement and recognition requirements of International Financial Reporting Standards ("IFRS"), the SAICA Financial Reporting Guides
as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council and also that they, as a minimum,
contain the information required by IAS 34 'Interim Financial Reporting'. The accounting policies applied in the preparation of the summarised consolidated
financial statements from which the summary consolidated financial statements were derived are in terms of IFRS and are consistent with the accounting policies
applied in the preparation of the previous consolidated annual financial statements.

The unaudited interim financial results were prepared by the Group Financial Manager, Wakeel McLachlan B. Com (Hons), CA(SA) and were not reviewed or audited by the
Group's external auditors, Grant Thornton Inc.

Prospects

The Group will continue with its strategic focus to grow the value of the core operational investments and improve the value add to our strategic investments.

The AEEI Group has built a solid platform for further organic growth and has positioned itself well to increase its investments by acquisition. Management
is focussed on its five-year strategic plan ("Vision 2020 Vision") and has firmed up its acquisition pipeline for both its food and Fishing and IT companies.

The Group's auditors have not reviewed nor reported on any comments relating to prospects.

Dividends

Dividends have been declared and approved by the Board of Directors on 26 October 2016. These dividends of R16.2m were paid to shareholders on 13 February 2017.

The Board of Directors are pleased to announce that it has approved and declared a gross interim dividend of 2.00 cents per share for the six month period
ended 28 February 2017 from income reserves. The interim dividend amount, net of South African dividend tax of 20% which equates to 0.40 cents per share,
is therefore a net 1.60 cents per share for those shareholders that are not exempt from dividend tax.

The number of ordinary shares in issue at declaration date is 491 339 434 and the income tax number of the Company is 9314001034.

The salient dates of this dividend distribution are:
Gross dividend (cents per share) 2.00
Dividend net of dividend withholding tax (cents per share) 1.60
Last day to trade cum dividend Tuesday, 18 July 2017
Trading ex-dividend commences Wednesday, 19 July 2017
Record date Friday, 21 July 2017
Date of payment Monday, 24 July 2017

Share certificates may not be dematerialized between Wednesday, 19 July 2017 and Friday, 21 July 2017, both days inclusive.

Appreciation

We wish to thank our staff, Group executives, management, our board of directors as well as our strategic partners, stakeholders and business partners for their
loyalty and dedication in contributing to the success of the Group.

Professor Vukile Mehana Mr Khalid Abdulla
Non-executive chairman Chief executive officer

Cape Town
11 May 2017

Directors
*Khalid Abdulla (Chief executive officer); Prof Vukile Mehana (Non-executive Chairman); Salim Young (Deputy Chairman); Johannes Mihe Gaomab; Aziza Amod;
Takudzwa Hove *Cherie Felicity Hendricks; *Chantelle Ah Sing; Zenariah Barends
*Executive directors

Company secretary: Nobulungisa Mbaliseli

Registered address: Quay 7, East Pier, V&A Waterfront, Cape Town 8001,
Email: nobulungisa@aeei.co.za

Transfer secretaries: Link Market Services South Africa (Pty) Ltd,
19 Ameshoff Street, 13th Floor, Rennie House, Braamfontein, Johannesburg 2000
Auditors: Grant Thornton Cape Inc.
Sponsor: PSG Capital, Stellenbosch

Date: 11/05/2017 10:00:00
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