HUNYANI HOLDINGS LIMITED

(Incorporated in Zimbabwe)
P O Box 4351, Harare, 68 Birmingham Road, Southerton, Harare, Zimbabwe, Telephone 662730/9, Facsimile 666397 DIRECTORS K C Katsande (Chairman), D G Bain* (Group Managing Director) Mrs. E Fundira, W Matsaira, P de Weerdt (R G Morris. Alt) P Mujaya, M M Ndubiwa, J Van Gend (A Howie. Alt) * Executive Director

ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 OCTOBER 2013

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 12 Months to 31 October 2013 $ 47 660 006 12 Months to 31 October 2012 $ Restated 45 533 142 PRIOR PERIOD ADJUSTMENT During the year, the Board commissioned an investigation through the Group Internal Audit Department. It was determined that certain in ventories at one of the Divisions had been overvalued by $567 thousand, of which $473 thousand related to prior year s. Effect on 2012 Effect on 2011 Increase in cost of sales Decrease in Income tax expense Decrease in profit Decrease in inventory Decrease in income tax payable Decrease in equity Effect on Earnings per share GROUP SEGMENT RESULTS Printing and Converting $ Revenue Sales to external customers Intersegment sales Total sales Operating profit before interest and tax continuing operations 47 269 278 126 568 47 395 845 21 451 23 837 741 8 619 450 2 035 274 1 280 398 87 700 Forests $ 335 098 335 098 (289 042) 1 043 390 35 134 27 669 (425 721) Properties Adjustments & eliminations $ $ 55 630 801 882 857 513 2 486 250 15 615 468 199 839 136 401 3 582 (928 450) (928 450) 3 404 832 5 707 553 Consolidated l $ 47 660 006 47 660 006 2 218 659 43 901 430 14 561 976 2 035 274 1 444 468 l (425 721) 91 282 225 927 (89 584) 136 343 225 927 (89 584) 136 343 246 625 l (63 506) 183 119 246 625 l (63 506) 183 119

Continuing operations Revenue Profit from continuing operations Gain on sale of idle properties, plant and equipment Restructuring and refurbishment costs Fair value adjustment on biological assets Operating profit before interest and tax Finance income Finance costs Profit before tax Taxation Profit for the year from continuing operations Discontinued operations Loss after tax from discontinued operations Profit for the period OTHER COMPREHENSIVE INCOME / (LOSS): Other comprehensive income to be reclassified to profit or loss in subsequent periods Exchange differences arising on the translation of foreign operations Fair value adjustment of available for sale investments Deferred tax on fair value adjustment of available for sale investments Other comprehensive income not to be reclassified to profit or loss in subsequent periods Loss on revaluation of previously revalued assets Deferred tax on loss of previously revalued assets Property, plant and equipment revaluation Deferred tax on property, plant and equipment revaluation Other comprehensive income / (loss) for the year net of tax Total comprehensive income / (loss) attributable to members Earnings per share (cents) Basic and diluted earnings per ordinar y share Headline earnings per share (cents) Headline basic and diluted earnings per ordinar y share CONSOLIDATED STATEMENT OF FINANCIAL POSITION

1 269 058 2 287 704 (912 382) (425 721) 2 218 659 166 107 (447 896) 1 936 870 156 659 2 093 529 2 093 529

1 442 626 116 977 l (93 065) 98 664 1 565 202 88 864 (651 367) l 1 002 699 l (261 847) 740 852 (16 804) l 724 048

8 676 466 (2 234 190) 6 442 276 8 535 805

4 734 (352) l 91 l (1 013 432) 260 959 15 429 (3 973) l l (736 544) l (12 496)

Segment assets Segment liabilities Capital expenditure Depreciation Biological assets fair value adjustment Derecognition loss

Note The Printing and Converting operating profit before interest and tax, continuing operations, is after restructuring and refurbishment costs of $912 382.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2013 1. Basis of preparation The abridged consolidated financial statements have been prepared on a historical cost basis, except for property, plant and equipment and biological assets that have been measured at fair value. 2. Currency of reporting The financial results are presented in United States Dollars ($). 3. Statement of accounting policy The accounting policies are consistent with those used in the prior year. New standards adopted in the current year only impacted the presentation of the financial results. 4. Statement of compliance The financial statements from which these abridged Group's results have been extracted have been prepared in accordance with International Financial Reporting Standards (IFRS) and the International Financing Reporting Interpretations Committee (IFRIC) interpretations. 5. Disposals As published in the unaudited interim results for the six months ended 30 April 2013, the Board resolved in October 2012 and January 2013 to dispose of the noncore property, plant and equipment in Norton and the Printopak property in Bulawayo. At the me of these disposals, plus the disposal of other assets held for sale as disclosed in the 2012 Annual Report, these transac ons, in rela on to the market value of Hunyani Holdings Limited, would have fallen under category 3 of sec on 9 of the Lis ngs Requirements of the Zimbabwe Stock Exchange. The Directors disclosed these transac ons to the Shareholders at the Annual General Mee ngs of 2012 and 2013 respec vely, when they were advised that the proceeds from these disposals would be, and subsequently had been, used to fund the reloca on of Printopak and the acquisi on of new equipment. The results of these disposals are as disclosed in the consolidated statement of comprehensive income, nancial posi on and cashows. 6. Discon nued opera on The Board advised in the interim results for the six months ended 30 April 2013, of the proposed disposal of So ex Tissue Products Limited (Private) Limited. The sale did not materialise and the Board is considering other op ons for this investment. The results for So ex have been incorporated in the full year Group nancial statements. 7. Audit opinion The Group auditors, Ernst & Young have issued an unqualified opinion on the consolidated financial results of the Group. The signed audit opinion is available for inspection at the registered office of Hunyani Holdings Limited at number 68 Birmingham Road, Southerton, Harare, Zimbabwe. COMMENTARY FOR THE YEAR ENDED 31 OCTOBER 2013 (ABRIDGED) Overview Economic growth was inhibited by low levels of liquidity and this resulted in reduced demand for packaging. External compe on signicantly increased and, combined with the devaluing rand, exerted pressure on selling prices and margins. Hunyani con nued to grow its export markets to oset the decline in domes c packaging demand. Financial performance Group volumes for con nuing opera ons increased by 9%, largely as a result of strong growth in tobacco related packaging products. Revenue from con nuing opera ons of $47,7 million grew by 5% compared to $45,5 million in 2012. An Opera ng Prot of $2,2 million (2012:$1,6 million) was achieved, inclusive of gains on the sale of noncore proper es, plant and equipment, restructuring costs and the fair value decrease on biological assets. The prot before taxa on amounted to $1,9 million (2012:$1,0 million). Net nance costs declined by 50%. Total comprehensive income a ributable to members was $8,5 million (2012: loss of $12 thousand). This was driven by property, plant and equipment fair valua ons. Opera ons At Corrugated Products, volumes rose by 12% due to the higher otake of tobacco cartons and commercial export demand from Zambia. Turnover increased by 11%. At Flexible Products, volumes were 4% ahead of the prior year and turnover marginally increased by 1%, due to pressure on margins. While tobacco wrapping and export tea packaging demand was rm, the gains were nega vely aected by declines in our packaging. Cartons and Labels, (formerly Printopak), volumes declined by 8%, due to the reloca on disrup ons in the rst half of the year. This was oset by improved demand towards year end and performance from the new lithographic printer. Turnover declined by 6%. So ex Tissue Products (Private) Limited had a disappoin ng year as intense compe on and product quality issues resulted in lower volumes. However, the brands awareness remains strong. Management is working on strategies to realign the business. Capital expenditure Capital expenditure of $2,0 million was spent mainly on the Roland 706 Lithographic Printer for Cartons and Labels and the Inline Strapping Machine at Corrugated Products. This was funded by the sale of noncore assets and borrowings. Directorate There were no changes to the directorate during the year under review. Dividend As a result of the con nued need to conserve cash, the Directors have decided against declaring a dividend to shareholders. Prospects The economy is projected to grow in 2014, but trading condi ons are likely to remain dicult. Tobacco volumes are expected to improve further, while commercial volumes may remain depressed. The nal phase of the restructuring process is due to be completed in the rst half of 2014 and will involve further reduc ons in head count. Hunyani will focus on cost containment and improving eciencies. By Order of the Board A K Nicholson Group Company Secretary 68 Birmingham Road Southerton, Harare 22 January 2014
MP H35

0.65 0.12

0.23 0.18

As at 31 October 2013 $
ASSETS Noncurrent assets Property, plant & equipment and investments Current assets Bank balances and cash Other Assets classified as held for sale Total assets EQUITY AND LIABILITIES Capital and reserves Share capital and share premium Nondistributable reser ves Distributable reserves Noncurrent liabilities Long term loans Deferred tax Current liabilities Short term borrowings Other Total equity and liabilities Current ratio Supplementary information Capital expenditure Depreciation charge for the period Interest capitalised Contingent liabilities Guarantees Capital commitments Corporate guarantees loan facility limit CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

As at 31 October 2012 $ Restated

As at 31 October 2011 $ Restated

24 233 970 19 667 460 3 404 832 16 262 628 43 901 430

16 888 093 19 832 857 2 008 658 16 411 889 1 412 310 36 720 950

19 652 846 16 834 749 2 167 806 14 381 396 285 547 36 487 595

29 339 454 429 711 20 029 608 8 880 135 5 115 045 5 115 045 9 446 931 592 508 8 854 423 43 901 430 2.08 2 035 274 1 444 468 46 679 50 000 5 500 000 As at 31 October 2013 $ 20 803 649 4 158 193 6 442 276 (2 284 083) 4 377 612 2 093 529 2 284 083 29 339 454 429 711 20 029 608 8 880 135 29 339 454

20 803 649 429 711 15 871 415 4 502 523 3 727 619 3 727 619 12 189 682 4 277 133 7 912 549 36 720 950 1.63 1 708 513 1 449 983 45 695 50 000 848 242 8 500 000 As at 31 October 2012 $ Restated 20 816 145 (1 522 521) (736 544) (785 977) 1 510 025 724 048 785 977 20 803 649 429 711 15 871 415 4 502 523 20 803 649

20 816 145 429 711 17 393 936 2 992 498 4 751 221 453 592 4 297 629 10 920 229 3 524 005 7 396 224 36 487 595 1.54 2 536 763 1 305 422 92 108 50 000 938 628 8 500 000 As at 31 October 2011 $ Restated 20 025 839 l (370 628) (124 672) l (245 956) l 1 160 934 914 978 245 956 20 816 145 429 711 17 393 936 2 992 498 20 816 145

Equity as at the beginning of the period (restated) Changes in revaluation reserves Other comprehensive income / (losses) Transfer to distributable reserves on disposals Changes in distributable reserves Earnings for the year attributable to members Transfer from revaluation reserves Balance as at 31 October 2013 Made up as follows: Share capital and share premium Non distributable reserves Distributable reserves Balance as at 31 October 2013 CONSOLIDATED STATEMENT OF CASH FLOWS

12 Months to 12 Months to 31 October 31 October 2013 2012 $ $ Restated

Net cash flow from operating activities Net cash flow from continuing operating activities Net cash flow from discontinuing operating activities Non cash adjustments for non operating activities Group cash flows from operations Working capital changes Net finance costs Tax paid Net cash generated / (utilised) from operating activities Investing activities Purchase of plant and equipment Proceeds on disposal of property, plant and equipment and assets held for sale Net cash inflow from disposal of discontinued operations Proceeds on disposal of subsidiar y Net cash generated / (utilised) before financing activities Financing activities (Decrease) / Increase in shortterm loans Decrease in long term loans Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Effects of exchange rates on cash and cash equivalents arising from foreign subsidiary Cash and cash equivalents at the end of the year REPRESENTED BY: Bank balances and cash

2 218 659 (350 393) 1 868 266 85 988 999 497 (281 789) (631 720) 1 954 254 3 126 545 (2 035 274) 4 931 819 230 000 5 080 799 (3 684 625) (3 684 625) 1 396 174 2 008 658
3 404 832 3 404 832

1 565 202 (7 528) 1 098 574 2 656 248 l (2 877 218) llllllllllllllllllll (1 628 962) (572 097) l l (676 159) l (220 970) l (233 471) l (1 708 513) 1 049 451 425 591 (454 441) l 299 535 753 128 l (453 593) l (154 906) 2 167 806
(4 242) l 2 008 658 2 008 658