Investment in Avusa Limited

Mvelaphanda Group has a 25,5% shareholding in Avusa Limited. Avusa is listed on the JSE and is one of the leading media and entertainment companies in South Africa, with leading brands in its sectors. At 30 June 2009 Avusa had a market capitalisation of R2 100 million on the JSE.

Avusa has a 31 March financial year-end and it reported its annual results for the year to 31 March 2009 on 23 June 2009. The results were credible despite the sharp downturn in the economy, which resulted in a soft advertising market in the second half of the financial year.

Revenues from continuing operations were up 8% to
R4 875 million and profit after tax from continuing operations was up 7% to R290 million. The net profit for the period was 58% higher than the prior year, with a positive contribution from the disposal of the loss-making African business, which was sold for a profit of R62 million. The company benefited from cost-savings initiatives implemented group-wide by management, including a 22% reduction in corporate costs and reduced share-based payments.

Avusa remained strongly cash generative, with cash generated by operations of R445 million. The balance sheet
of the company remains strong with minimal gearing. Cash at the end of the financial year totalled R416 million and the company declared and paid a dividend of 60 cents per share.