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AVV
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
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