Trading statement in respect of the year ending 30 June 2015

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, a listed company is required to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding period.

ARM’s headline earnings for the year ending 30 June 2015 are currently anticipated to be at least 45% (R1 849 million) less than those for the same period in the previous financial year.

Headline earnings per share are anticipated to be at least 45% (855 cents) less than those for the same period in the previous financial year.

Headline earnings reported for the year ended 30 June 2014 were R4 108 million, while headline earnings per share were 1 900 cents.

The decrease in headline earnings is largely due to the decline in US Dollar commodity prices compared to those achieved in the previous comparable period, especially for iron ore. The lower US Dollar prices are partially offset by a weaker Rand/ US Dollar exchange rate during the period.

ARM’s basic earnings are currently expected to be negatively impacted by:

1. an unrealised mark-to-market loss on the Harmony Gold Mining Company Limited (“Harmony”) investment due to a decline in the Harmony share price below the level reported as at 31 December 2014 of R21.61 per share, below which further mark-to-market adjustments through the income statement would be required; and
2. the impairment of an operating furnace at Machadodorp Works as reported for the six months ended 31 December 2014.

Basic earnings reported for the year ended 30 June 2014 were R3 289 million, while basic earnings per share were 1 521 cents. Accordingly, ARM announces that basic earnings for the year ending 30 June 2015 are anticipated to be at least 55% (R1 809 million) less than those for the same period in the previous financial year. Basic earnings per share are anticipated to be at least 55% (837 cents) less than those for the same period in the previous financial year.

Shareholders are advised that a further trading statement will be issued as soon as there is a reasonable degree of certainty as to the likely range within 20%, by which the Company’s headline earnings per share and basic earnings per share are expected to decrease.

The financial information on which this trading statement is based has neither been reviewed nor reported on by the external auditors of ARM.

The Company’s provisional results will be released in September 2015.

For all investor relations queries please contact:

Jongisa Magagula
Corporate Development and Head of Investor Relations
Office: +27 11 779 1300
Email: jongisa.magagula@arm.co.za

Johannesburg
12 June 2015

Sponsor: Deutsche Securities (SA) (Proprietary) Limited