SENS Announcements

Unaudited Interim Results For The Period Ended 28 February 2018

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 2018

Condensed Group Statement of Financial Position Restated
Unaudited Unaudited Unaudited Audited
Group to Group to Group to Group to
28 February 28 February 28 February 31 August
2018 2017 2016 2017
R'000 R'000 R'000 R'000
Assets
Non-current assets 8 932 902 1 802 651 1 273 331 1 855 213
Property, plant and equipment 189 584 152 387 151 712 154 527
Goodwill 41 216 81 070 56 832 82 940
Intangible assets 371 284 339 424 329 365 384 027
Investments in associates 7 774 204 775 167 9 780 559
Investment in joint ventures - 115 - 33
Other loans receivable 53 348 9 967 6 880 8 366
Other financial assets 494 957 428 803 711 902 425 524
Deferred tax 8 306 14 718 14 460 17 578
Prepayments 3 1 000 2 171 1 659

Current assets 762 762 348 677 262 534 966 940
Inventory 57 679 48 106 43 622 64 181
Biological assets 55 873 48 359 46 262 54 323
Other loans receivable 11 297 15 711 11 981 26 771
Current tax receivable 231 1 718 154 1 591
Trade and other receivables 168 407 149 901 100 760 195 050
Cash and cash equivalents 469 275 84 882 59 755 625 024

Total assets 9 695 664 2 151 328 1 535 865 2 822 153

Equity and liabilities
Equity
Equity attributable to equity holders of parent
Share capital and share premium 403 177 403 177 403 177 403 177
Reserves 8 029 8 034 8 034 8 030
Retained income 7 915 389 962 802 357 594 866 286
8 326 595 1 374 013 768 805 1 277 493
Non-controlling interest 684 321 74 380 78 366 760 627
9 010 916 1 448 393 847 171 2 038 120

Liabilities
Non-current liabilities 460 998 492 457 503 666 461 302
Other financial liabilities 241 887 276 292 255 647 245 622
Deferred tax 218 323 210 528 245 188 211 046
Other non-current liabilities 788 5 637 2 831 4 634

Current liabilities 223 750 210 478 185 028 322 371
Trade and other payables 99 932 112 753 107 578 169 984
Other financial liabilities 16 947 25 254 12 007 47 232
Current tax payable 30 563 11 482 9 093 32 506
Provisions 10 073 21 272 20 932 27 642
Other current liabilities 78 1 910 1 580 485
Bank overdraft 66 157 37 807 33 838 44 522

Liabilities of disposal group - - - 360
Total equity and liabilities 9 695 664 2 151 328 1 535 865 2 822 153

Net asset value per share (cents) 1 694.67 279.65 156.47 260.00
Tangible net asset value per share (cents) 1 610.72 194.07 77.87 164.96
Number of ordinary shares in issues (000's) 491 339 491 339 491 339 491 339

Condensed Group Statement of Profit and Loss and Other Comprehensive Income
Restated
Unaudited Unaudited Unaudited Audited
Group to Group to Group to Group to
28 February 28 February 28 February 31 August
2018 2017 2016 2017
R'000 R'000 R'000 R'000
6 months 6 months 6 months 12 months
R'000 R'000 R'000 R'000
Revenue 604 390 454 878 305 318 1 052 196
Cost of sales (379 183) (287 912) (207 594) (654 210)
Gross profit 225 207 166 966 97 724 397 986
Other income 60 431 5 390 3 761 3 960
Other operating expenses (166 834) (136 668) (78 752) (297 289)
Net impairments, impairment reversals and write-off (1 651) (352) - (2 605)
Fair value adjustments 70 180 551 437 50 405 535 083
Gain on deemed disposal of subsidiaries 8 195 907 - 465 -
Gain on sale of business - - - 6 019
Gain on bargain purchase - - - 11 898
Share based payment (B-BBEE) (11 809) - - -
Profit from equity accounted investments 29 377 9 070 - 30 203
Investment revenue 53 854 2 119 11 234 23 903
Finance cost (12 091) (12 580) (11 069) (28 267)
Profit before taxation 8 442 571 585 382 73 768 680 891
Taxation (30 633) (136 781) (16 261) (155 029)
Profit from continuing operations 8 411 938 448 601 57 507 525 862
Discontinued operations
Loss from discontinued operations - - - 2 810
Profit for the year 8 411 938 448 601 57 507 528 672
Other comprehensive income (5) - - (4)
Total comprehensive income 8 411 933 448 601 57 507 528 668

Total comprehensive income attributable to:
Equity holders of the parent 8 392 732 455 232 68 991 477 085
Non-controlling interest 19 202 (6 631) (11 484) 51 583
8 411 933 448 601 57 507 528 668
Basic and diluted earnings per ordinary share (cents) 1 708.13 92.65 14.04 97.10

Headline and diluted earnings per ordinary share (cents) 40.06 92.71 14.02 94.89

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

Condensed Group Statement of Changes in Equity
For the period ended 28 February 2018
Attributable Non-
To Controlling Total
Parent interest Equity
R'000 R'000 R'000
Balance at 31 August 2015 712 106 92 443 804 549
Profit/(loss) for the period 68 991 (11 484) 57 507
Dividends paid (12 292) (2 593) (14 885)
Balance at 28 February 2016 768 805 78 366 847 171
Profit for the period 147 632 3 388 151 020
Dividends paid - 359 359
Changes in ownership interest control not lost 15 2 470 2 485
Balance at 01 September 2016 916 452 84 583 1 001 035
Profit for the period 455 232 (6 631) 448 601
Dividends paid (16 221) (5 455) (21 676)
Changes in ownership interest control not lost 18 550 (11 150) 7 400
Business combinations - 13 033 13 033
Restated balance at 28 February 2017 1 374 013 74 380 1 448 393
Profit for the period 21 857 58 214 80 071
Other comprehensive income (4) - (4)
Dividends paid (9 583) (530) (10 113)
Changes in ownership interest control not lost (109 905) 631 694 521 789
Business combinations 1 115 (3 131) (2 016)
Balance at 31 August 2017 1 277 493 760 627 2 038 120
Profit for the period 8 392 736 19 202 8 411 938
Other comprehensive income 11 808 - 11 808
Changes in ownership interest - additional shares acquired (4 826) (1 705) (6 531)
Changes in ownership interest - (disposal and share issue) control not lost (1 323 592) 1 323 592 -
Dividends paid (27 024) (30 147) (57 171)
Changes in ownership interest (disposal) control lost - (1 387 248)(1 387 248)
Balance at 28 February 2018 8 326 595 684 321 9 010 916

Condensed Group Statement of Cash Flows
Restated
Unaudited Unaudited Audited
Group to Group to Group to
28 February 28 February 31 August
2018 2017 2017
R'000 R'000 R'000
Cash generated by operations 13 823 52 219 73 478
Investment revenue 60 280 2 119 23 903
Finance cost (12 091) (12 580) (28 267)
Other operating activities (19 467) (6 643) 10 418
Net cash flows from operating activities 42 545 35 115 79 532
Cash flows from investing activities
Net movement in property, plant and equipment (52 733) (15 665) (24 485)
Net movement in intangible assets (747) (2 399) (1 859)
Business combination - (5 755) (1 559)
Deemed disposal of businesses and sale of business (4 239 253) - (2 300)
Movement in other investing activities (30 933) (6 507) 14 980
Purchase of financial assets - - (14 118)
Net cash flows from investing activities (4 323 666) (30 326) (29 341)
Cash flows from financing activities
Repayment of other financial liabilities (34 378) (14 548) (46 006)
Receipt of other financial liabilities - 20 379 45 519
Change in ownership 4 195 286 - 507 518
Dividends paid including minorities (57 171) (18 614) (31 789)
Net cash flows from financing activities 4 103 737 (12 783) 475 242
Total cash movement for the period (177 384) (7 994) 525 433
Cash and cash equivalent at the beginning of the period 580 502 55 069 55 069

Cash and cash equivalents at the end of the period 403 118 47 075 580 502

Condensed Group Segmental Report - 2018
Combined
technology and
Fishing and Tele- tele- Health and Bio- Events
brands Technology communication communication beauty technology and tourism Corporate Group
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
28 February 28 February 28 February 28 February 28 February 28 February 28 February 28 February 28 February
2018 2018 2018 2018 2018 2018 2018 2018 2018
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Revenue 184 580 348 672 - 348 672 24 171 - 41 845 43 430 642 698
External revenue 183 428 348 665 - 348 665 24 171 - 38 955 9 170 604 390
Internal revenue 1 152 7 - 7 - - 2 890 34 260 38 308

Segment results
Operating profit/(loss) 21 659 45 832 (24) 45 808 3 036 (7 973) (5 865) 8 314 766 8 371 431

Included in segment results:
Net (impairments)/impairment reversals and write-offs - - - - - - - (1 651) (1 651)
Depreciation and amortisation (7 534) (1 894) - (1 894) (76) (1 131) (106) (619) (11 360)
B-BBEE share based payment - (11 809) - (11 809) - - - - (11 809)
Gain on deemed disposal of subsidiary - - - - - - - 8 195 907 8 195 907
Fair valuation of investments - - - - - - - 70 180 70 180

Non-current assets 199 032 - 809 936 809 936 40 313 368 342 10 056 7 505 224 8 932 902
Current assets 664 895 - 5 5 21 530 549 38 926 36 857 762 762
Non-current liabilities 96 316 - - - 15 923 89 367 753 258 640 460 998
Current liabilities 104 341 - 24 24 11 385 1 033 40 415 66 552 223 750

Profit from associates - - 29 377 29 377 - - - - 29 377
Capital expenditure 51 141 2 277 - 2 277 - - 39 22 53 479

Condensed Group Segmental Report - 2017
Combined
technology and
Fishing and Tele- tele- Health and Bio- Events Group
brands Technology communication communication beauty technology and tourism Corporate Restated
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
28 February 28 February 28 February 28 February 28 February 28 February 28 February 28 February 28 February
2017 2017 2017 2017 2017 2017 2017 2017 2017
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Revenue 182 527 236 390 - 236 390 2 647 4 28 114 20 725 470 407
External revenue 182 527 233 683 - 233 683 2 647 4 26 788 9 229 454 878
Internal revenue - 2 707 - 2 707 - - 1 326 11 496 15 529

Segment results
Operating profit/(loss) 25 311 27 179 569 998 597 177 (966) (8 079) (3 502) (23 168) 586 773

Included in segment results:
Net (impairments)/impairment reversals and write-offs - - - - - - - (352) (352)
Depreciation and amortisation (7 067) (2 125) - (2 125) (850) (1 748) (109) (705) (12 604)
B-BBEE share based payment - - - - - - - - -
Gain on deemed disposal of subsidiary - - - - - - - - -
Fair valuation of investments - - 570 000 570 000 - - - (18 563) 551 437

Non-current assets 152 440 72 113 864 448 936 561 3 983 350 066 9 719 349 882 1 802 651
Current assets 181 336 118 069 6 118 075 5 408 - 35 614 8 245 348 677
Non-current liabilities 94 596 20 314 - 20 314 - 91 066 1 160 285 321 492 457
Current liabilities 90 492 51 720 - 51 720 1 624 938 32 394 33 309 210 478

Profit from associates - 151 8 919 9 070 - - - - 9 070
Capital expenditure 8 148 4 305 - 4 305 - 16 45 (123) 12 391

Notes

The Events and Tourism division excludes Magic 828 Proprietary Limited (“Magic 828 ”) as the company was managed under the corporate office for
the first six months. Additonally, the investment in BT Communications Services South Africa Proprietary Limited was previously disclosed under
Corporate has and is now disclosed under Technology.

Determination of headline earnings
Restated
Unaudited Unaudited Unaudited Audited
28 February 2018 29 February 2017 28 February 2016 31 August 2017
R'000 R'000 R'000 R'000
Earnings attributable to ordinary equity holders of
parent entity IAS 33 8 392 732 455 232 68 991 477 085
Adjusted for:
Impairment of intangible assets IAS 38 - - 241 -
Loss on disposal of property, plant and equipment IAS 16 - 284 - 2 048
Gain on disposal of subsidiaries IFRS 3 - - (335) (4 334)
Gain on bargain purchase IFRS 3 - - - (8 567)
Gain on deemed disposal of subsidiary IFRS 10 (8 195 907) - - -

Headline earnings 196 825 455 516 68 897 466 232
Normalised headline earnings 154 174 27 601 27 901 61 861
Headline earnings per ordinary share (cents) 40.06 92.71 14.02 94.89
Normalised headline earnings per ordinary shares (cents) 31.38 5.62 5.68 12.59

Reconciliation of reportable segments profit or loss

Restated
Unaudited Unaudited Unaudited Audited
28 February 201 29 february 2017 28 February 2016 31 August 2017
R'000 R'000 R'000 R'000
Total operating profit for reportable segments 8 371 431 586 773 73 603 655 052
Adjusted for:
Profit from equity accounted investments 29 377 9 070 - 30 203
Investment revenue 53 854 2 119 11 234 23 903
Finance cost (12 091) (12 580) (11 069) (28 267)
Profit before taxation 8 442 571 585 382 73 768 680 891
Taxation (30 633) (136 781) (16 261) (155 029)
Profit for the period and total comprehensive income
from continuing operations 8 411 938 448 601 57 507 525 862
Loss from discontinued operations - - - 2 810
Other comprehensive income (5) - - (4)
Profit for the period and total comprehensive income 8 411 933 448 601 57 507 528 668

Financial highlights

- Revenue increased by 33% from the restated R455m to R604m.
- Operating profit increased by 1326% from the restated R587m to R8 371m.
- Earnings per share increased by 1 744% from the restated 92.65 cents to 1 708.13 cents.
- Normalised headline earnings per share increased by 459% from the restated 5.62 cents to 31.38 cents.
- Total assets increased by 351% from the restated R2 151m to R9 696m.
- Net asset value increased by 522% from the restated R1 448m to R9 011m
- Net cash from operating activities increased by 23% from R35m to R43m.

Group performance

For the six months under review revenue for the Group was exceptional, with outstanding operating profits and asset growth, due to the strong contribitions from all
the underlying operations and investments. The consistant increase in earnings and asset growth during a period of ongoing economic volatility, demonstrates the Group's
efficient and effective business model during challenging market conditions.

Group revenue increased significantly by 33% from the restated R455m to R604m, mainly due to the consistent growth in revenue from all our divisions and especially
the technology associate which is in-line with its organic and acquisitive growth strategy as well as the improvement in the health and beauty division.

The Group's operating profit increased by 1 326% from the restated R587m to R8 371m due to the consistent organic and aquisitive growth, as well as efficiencies
achieved fishing and brands, technology, health and beauty, as well as its strategic investments.

Group earnings grew by 1773% from the restated R449m in the prior interim period to R8 412m. The earnings increased substantially, mainly as a result of a once-off
gain from a deemed disposal of a subsidiary. More details are reflected in the section further below.

Headline earnings per share (“HEPS”) decreased from 92.71c to 40.06c, while earnings per share (“EPS”) increased from the restated 92.65c to 1 708.13c for the
six months under review. The decrease in HEPS is as a result of the prior year interim period being restated and including a once-off fair value adjustment prior
to BT Communication Services South Africa (“BT”) becoming an associate.

Group’s normalised HEPS increased by 459% from 5.62 cents to 31.38 cents. Normalised earnings are defined as earnings from continuing operations excluding
non-recurring items and once off fair value and/or gain on disposal adjustments.

Profit before tax for the period under review increased by 1343% from the restated R585m to R8 443m with strong returns from our diversified portfolio and the
gain on deemed disposal of subsidiaries.

The Group’s asset base increased by 351% from the restated R2 151m to R9 696m mainly due the increased fair value gain in the investment in associates since the
comparative interim period and the growth in current assets.

Net asset value (“NAV”) of the Group increased by 492% from the restated R1.4bn to R8.3bn as a result of the excellent operational performance and the greater fair
value in the underlying investments. The NAV per share increased by 506% from the restated 279.65c in the prior period to 1 694.67c.

As a result of the solid financial performance from the underlying businesses during a tough economic environment, net cash generated from operating activities
increased by 23% from the restated 2017 interim results after providing for the significant working capital needs of R103m.

Fishing and brands

The fishing and brands division performed as expected with revenue remaining stable at R183m for the interim period. While the strengthening of the Rand impacted
negatively on the revenue of the fishing and brands division, this was offset by further efficencies and increased sales volumes in the squid and lobster divisions,
as well as an increase in market prices for all divisions.

The abalone division performed well to date while construction for the expansion of the abalone farm is on track in line with the expansion plans. The farm also
continued to focus on increasing spat production, additional animal rearing capacity divisions, and stock holding in preparation for the farm expansion.

Subsequent to the interim period, all the conditions precedent were met for the acquisition of a majority stake in Talhado Fishing Enterprises (Pty) Ltd (“Talhado”).
The results of Talhado were not consolidated into the fishing and brands division during the period under review. For more details, refer to acquisition of business
subsequent to the interim period under the significant events disclosure.

Technology

During the period under review, the Group's previous subsidary, AYO Technology Solutions Limited (“AYO”) was successfully separately listed on 21 December 2017. The Group
now holds 49% equity in AYO since listing. This investment has been accounted for as an associate as at the period ended 28 February 2018.

The information and communications technology ("ICT") associate, AYO listed on the Johannesburg Stock Exchange ("JSE") as a leading Broad-Based black economic
empowerment ("B-BEEE") ICT company with strong management expertise and a sound track record. The current improving market conditions and regulation pertaining to
B-BEEE have set them in good stead to capture the growing ICT spend across the South African market. The ICT associate is currently servicing customers in Southern
and Northern Africa, Europe and Mauritius. Its strategic alliance, with BT, provides it with access to global technology trends as well as access to the global market.

During the interim period under review, the Group relinquished control of AYO resulting in the division becoming an associate in February 2018. Refer to Significant
events below for more details.

The ICT associate (AYO) has effectively been listed for two months of this reporting period. However in the five months since listing they have already shown
excellent organic progress in delivering on its planned strategy.

In the short time frame since listing, our associate had a successful first few months operational performance, although certain key projects and transactions are
still being finalised resulting in their management team expecting a much improved and accelerated performance in the second half of the current financial year.

Within the first few months of this associate being listed, the associate concluded a significant contract with a multinational client, further details of which
are expected to be announced over the coming days.

The ICT associate achieved significant growth in revenue of 49% from R234m to R349m mainly as a result of obtaining new customer contracts in the financial service
sector which leverages the strategy to gain market share through its B-BBEE and strong management credentials. The total profit before tax for the associate increased
by 173% from R30m to R82m, which shows the consistency in growth plans.

The Group also holds a 30% equity interest in BT. This investment was accounted for as an associate.

Health and beauty

The companies in the health and beauty division, focuses on the importation and distribution of cosmetic brands as well as the manufacturing, sales and marketing
of an extensive range of natural products that are human, animal and plant safe and internationally recognised in the food, agriculture, hygiene, beauty and general
health sectors.

The acquisition of Orleans Cosmetics Proprietary Limited in the prior year combined with the existing business has led to revenue increasing by 700%
from R3m to R24m and operating profit increasing by 413% from a loss of R0,96m to a R3m profit.

Biotechnology

Genius Biotherapeutics South Africa, one of Africa's largest medical biotechnology companies, made good progress with its research and development activities
as it prepares pre-clinical data on extreme drug resistant tuberculosis.

The dendritic cell vaccine project obtained final approval from the Medicines Control Council to commence with Phase 1 human clinical trials on breast cancer, provided
that the clinical trials are performed in a validated clean room facility. The construction of clean rooms at the University of Cape Town is due to be completed by June 2018.

Events and tourism

The events and tourism division manages and owns an events planning and production company, espAfrika Proprietary Limited ("espAfrika"), a travel services company,
Tripos Travel Proprietary Limited ("Tripos Travel") and a radio station Magic 828 (managed under the corporate division).

espAfrika a Group subsidiary, hosted a very successful 19th Cape Town International Jazz Festival post interim period. In terms of performance, the company expected
to have an operating loss for the six months, as espAfrika hosts most of its events during the second half of the financial year.

Magic 828 which has been in existence for less than 36 months, contributed to Group gross revenue of R3m for the period and increased its listenership in the
Western Cape region to more than 100 000 listeners.

Tripos Travel engaged in a turnaround strategy since 2016 which led to revenue increasing by 30% from R27m to R35m for the six months ended 28 February 2018.

Strategic investments

The Group's strategic investments consist of: Pioneer Foods Group (“Pioneer Foods”), Sygnia Limited (“Sygnia”) and Saab Grintek Defence Proprietary Limited ("SGD”) and
BT which is now managed and reported under technology division and telecommunications.

AEEI has a minority equity stakes in SGD, Sygnia and Pioneer Foods. 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.

AEEI owns the following equity interest in the above strategic investments:
- 25% + 1 share in SGD
- 0.75% in Pioneer Foods
- 1.73% in Sygnia

Significant events

Acquisition of business subsequent to interim period
On 30 November 2017, the fishing and brands division announced the acquisition of a 50.31% stake in Talhado for a consideration of R85m, subject to the fulfilment
of certain conditions precedent. The conditions precedent have now been fulfilled and the transaction implemented. The fishing and brands division acquired Talhado
for its squid fishing rights, brand and processing facilities, aiming to enhance the group's footprint in the squid sector. Talhado is the largest squid company in
South Africa.

The fishing and brands pro forma results, including Talhado are available for review on www.premierfishing.co.za.

Investment becomes an associate and changes in control

The Group held an 80% equity interest in AYO as at 31 August 2017. Prior to the listing of AYO, a decision was made to issue 10% of its shares to a B-BBEE Consortium,
which resulted in a dilution of the Group’s investment in AYO to 69.55%. On 21 December 2017 AYO listed on the main board of the JSE, whereby AYO issued shares under a
private placement resulting in a further dilution of the Group’s shareholding to 49.36%. Please refer to the statement of changes in equity for the effect of the
transaction on retained earnings and non-controlling interest without a loss of control on this date.

This investment was accounted for as a subsidiary up to 21 February 2018 with its financial results being consolidated into the Groups’ interim results, where after
the Group relinquished control over AYO by the restructure of the Board.

The above resulted in AYO becoming an associate on 21 February 2018.

The effect of the transaction is therefore as follows:
Unaudited
28 February 2018
R'000
Derecognise assets (including goodwill) and liabilities at date control is lost IFRS10.B98(a) (4 408 394)
Derecognise non-controlling interest IFRS10.B98(a) 5 640 033
Net assets value derecognised 1 231 639
Fair value of remaining interest in AYO IFRS10.B98(b) 6 964 268
Gain on deemed disposal of subsidiary 8 195 907

Investment in associate
Balance as at 01 September 2017 780 559
Amount transferred to investment in associate 6 964 268
Share of profits in associate 29 377
Dividend received from associate -
Investment in associate as at 28 February 2018 7 774 204

No impairment has been taken into account as the value in use of the investment exceeded the carrying amount of the investment.

IFRS 2 B-BBEE share based payment

Within technology, AYO issued 31 960 000 shares at an issue price of R1.50 per share to a B-BBEE Consortium. At the date of issuance, the fair value
of the AYO shares exceeded the issue price of R1.50. In line with IFRS 2, the discount offered resulted in an IFRS 2 adjustment of R11.8m which is recognised in
the Condensed Statement of Comprehensive Income with the contra recognised directly in equity.

Restatement of the prior year figures

Dividend and interest received

A detailed analysis of the dividends and interest received from AEEI's underlying investments was performed by management. As part of this assessment, management
investigated certain dividend and interest received items which were previously disclosed under investment revenue in the financial statements, for the year ended
31 August 2017 in-line with the JSE proactive monitoring guidance provided. Based on the findings, management reclassified the dividends and interest received to
better reflect the nature of these income streams.

The above restatement is considered non-material and was announced in the full year results for the year ended 31 August 2017 as well as restated in the prior
six-month period ending 28 February 2017.

Investment in associate

On 23 November 2016, the BT Board of directors was rearranged which resulted in AEEI having the ability to participate in policy-making processes, including
participation in decisions about dividends or other distributions resulting in the Group obtaining significant influence. As a result, the investment is treated as
an associate in-line with IAS 28.

Prior to the investment in BT becoming an associate, the investment was held at fair value through profit and loss resulting in a fair value gain of R509m on
31 October 2016. Post the interim period, additional information arose from the investment in BT as well as the revaluation of AEEI's underlying investments in
technology assets, performed by management in preparation for the listing of AYO. Due to this assessment, a material fair value gain was recognised in the results
for the year ended 31 August 2017 as well as the six-month period ended 28 February 2017.

Accordingly, the reported earnings per the prior interim period increased by R310m from R138m to R449m.

The above restatement has an effect on the reported earnings per the statement of profit and loss and other comprehensive income, statement of financial position
and statement of cash flows as detailed in the table below:

Reclassification of Restatement of
dividends investment
R'000 As previously stated and interest received in associate Restated
28 February 2017
Consolidated Statement of Financial Position
Investment in associate 464 767 - 310 400 775 167
Retained income 652 402 - 310 400 962 802
Net asset value per share (cents) 216.47 - 63.18 279.65
Consolidated Profit and Loss and Other Comprehensive Income
Revenue 448 785 6 093 - 454 878
Gross profit 160 873 6 093 - 166 966
Fair value adjustments 151 437 - 400 000 551 437
Investment revenue 8 212 (6 093) - 2 119
Profit before tax 185 382 - 400 000 585 382
Taxation (47 181) - (89 600) (136 781)
Profit from continuing operations 138 201 - 310 400 448 601
Profit for the year 138 201 - 310 400 448 601
Total comprehensive income 138 201 - 310 400 448 601
Basic and diluted earnings per ordinary share (cents) 29.48 - 63.17 92.65
Headline earnings per ordinary share (cents) 29.53 - 63.18 92.71
Consolidated statement of cash flows
Cash generated from operations 46 126 6 093 - 52 219
Interest revenue 8 212 (6 093) - 2 119

Events after reporting period

On 30 November 2017, the fishing and brands division announced the acquisition of a 50.31% stake in Talhado for a consideration of R85m. The conditions precedent
were only met after the end of the interim reporting period. Refer above to Acquisition of business for more information.

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
2018 R'000s R'000s R'000s R'000s
Listed shares 250 100 - - 250 100
Unlisted shares - - 244 857 244 857
Biological assets - - 55 873 55 873
Total 250 100 - 300 730 550 830

Level 1 Level 2 Level 3 Total
2017 R'000s R'000s R'000s R'000s
Listed shares 283 654 - - 283 654
Unlisted shares - - 145 149 145 149
Biological assets - - 48 359 48 359
Total 283 654 - 193 508 477 162

Refer to fair value adjustments in the Group's Statement of Comprehensive Income.

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 B-BBEE 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 2017.

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 unaudited interim results for the period ended 28 February 2018 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, BDO Cape Incorporated.

Prospects

The Group will continue with its strategic focus to grow the value of our 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 further increase its investments by acquisitions.

Management is focused on its five-year strategic plan ("Vision 2020 Vision") and has firmed up its acquisition pipeline.

Mangement are excited about the potential for growth via an aquisition pipeline and are confident about the further announcements over the next 12 months.

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

Change in the directorate

At the Annual General Meeting (“AGM”) held on 22 February 2018, Salim Young did not make himself available for re-election at the AGM and voluntary elected to step
off the Board to focus on his duties as the independent non-executive Chairman of AYO and accordingly the requisite resolution was withdrawn.

The Board further advises that Abdul Malick Salie has been appointed to the Board of Directors as an executive director in the capacity of Chief Investment Officer
effective 22 February 2018.

Advocate Dr Ngoako Ramatlhodi has been appointed as an independent non-executive director to the board of AEEI effective 7 March 2018.

Dividends

The Board of Directors are pleased to announce that it has approved and declared an interim dividend of 3.30 cents per share for the six-month period
ended 28 February 2018 from income reserves. The interim dividend amount, net of South African dividend tax of 20% which equates to 0.66 cents per share,
is therefore 2.64 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) 3.30
Dividend net of dividend withholding tax 2.64
Last day to trade cum dividend Tuesday, 17 July 2018
Trading ex-dividend commences Wednesday, 18 July 2018
Record date Friday, 20 July 2018
Date of payment Monday, 23 July 2018

Share certificates may not be dematerialised or rematerialised between Wednesday, 18 July 2018 and Friday, 20 July 2018, both days inclusive.

Appreciation

We wish to thank our employees, 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.

Reverend Dr Vukile Mehana Mr Khalid Abdulla
Independent non - executive chairman Chief executive officer

Cape Town
22 May 2018

Directors
*Khalid Abdulla (Chief executive officer); Reverend Dr Vukile Mehana (Non-executive Chairman); Johannes Mihe Gaomab; Aziza Amod; Takudzwa Hove *Cherie Felicity
Hendricks; *Chantelle Ah Sing; Zenariah Barends; *Abdul Malick Salie (appointed 22 February 2018) and Advocate Ngoako Ramatlhodi (appointed 7 March 2018)
*Executive directors*

Company secretary: Nobulungisa Mbaliseli
Registered address: Quay 7, East Pier, Victoria and Alfred 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: BDO Cape Incorporated, 6th Floor, 123 Hertzog Boulevard, Cape Town, 8001

Sponsor: PSG Capital Proprietary Limited, 1st Floor, Ou Kollege Building, 35 Kerk Street, Stellenbosch, 7600

Date: 22/05/2018 10:15:00
Supplied by www.sharenet.co.za
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.