ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013

Consolidated Statement of Comprehensive Income Consolidated Statement of Changes in Equity 2013 2012 Share Share Revaluation Non Retained US$ US$ capital premium reserve distributable earnings Total US$ US$ US$ US$ US$ US$
Revenue Cost of sales Gross profit Other opertating income Selling and distribution expenses Adminstrative expenses Profit from operating activities Finance income Finance costs Net finance costs (Loss)/profit from operations before income tax expense Income tax credit/(expense) (Loss)/profit for the year Other comprehensive income, net of income tax Total comprehensive (loss)/income for the period Number of shares in issue (000s) Basic and diluted earnings per share (cents) 42 878 242 (32 382 546 ) 10 495 696 383 133 (2 061 492 ) (8 692 950 ) 124 387 19 619 (3 222 759 ) (3 203 140 ) (3 078 753 ) 516 173 (2 562 580 ) - (2 562 580 ) 493 040 (0.50 ) 42 508 441 (30 133 932 ) 12 374 509 253 761 (1 711 288 ) (6 592 576 ) 4 324 406 3 285 (3 117 802 ) (3 114 517 ) 1 209 889 (149 974 ) 1 059 915 1 059 915 493 040 0.21 Balance at 1 January 2012 4 930 403 Total comprehensive income for the year - Balance at 31 December 2012 4 903 403 181 908 - 181 908 7 639 504 - 7 639 504 - 7 639 504 7 655 239 - 7 655 239 - 7 655 239 8 068 431 1 059 915 9 128 346 (2 562 580 ) 6 565 766 28 475 485 1 059 915 29 535 400 (2 562 580 ) 26 972 820

Total comprehensive loss for the year - - Balance at 31 December 2013 4 930 403 181 908

Notes to the financial statements

Statement of compliance The underlying financial statements to these results have been prepared in accordance with International Financial Reporting Standards and in the manner required by the Companies Act (Chapter 24:03) and the Zimbabwe Stock Exchange Listing Requirements. Accounting policies and reporting currency There have been no changes in the Groups accounting policies since the date of the last audited financial statements. The underlying financial statements to these results are presented in United States dollars, which is the functional currency of the Group. 2013 2012 US$ US$ 3 816 914 2 604 160

Capital expenditure Purchase of property, plant and equipment Consolidated Statement of Financial Position
ASSETS Non-current assets Property, plant and equipment Investment property Trade and other receivables Total non-current assets Current assets Inventories Short term investments Trade and other receivables Cash and cash equivalents Total current assets Total assets EQUITY AND LIABILITIES Capital and reserves Share capital Share premium Non-distributable reserve Revaluation reserve Retained earnings Total equity Non-current liabilities Deferred taxation Current liabilities Loans and borrowings Trade and other payables Taxation Bank overdraft Total current liabilities Total liabilities Total equity and liabilities 4 930 403 181 908 7 655 239 7 639 504 6 565 766 26 972 820 4 930 403 181 908 7 655 239 7 639 504 9 128 346 29 535 400

2013 US$

2012 US$

Additions to property, plant and equipment include US$2,8million (2012:US$1,5million) for the concrete tile machine which was commissioned in September 2013. Commitments for capital expenditure Authorised by directors and not contracted for Trade and other payables Trade payables Amounts owing to group companies Value added tax Other payables 1 150 000 9 799 934 3 094 695 4 579 149 6 959 933 24 433 711 1 500 000 8 363 783 2 353 449 4 174 433 4 186 772 19 078 437

32 884 465 301 621 1 175 191 34 361 277 18 005 899 24 027 16 349 038 242 384 34 621 348 68 982 625

31 685 103 291 325 31 976 428 18 757 112 19 958 16 233 953 993 390 36 004 413 67 980 841

Trade and other receivables Non-current trade and other receivables relates to the amount that the business is expecting to receive after 12 months from the reporting date. Events after the reporting period Subsequent to the reporting period date, there were no material adjusting or non-adjusting events.

Chairmans Statement
I am pleased to present Turnall Holdings Limiteds financial results for the year ended 31 December 2013. Operating environment The results were achieved in an operating environment characterised by uncertainty and subdued economic growth. The manufacturing sector was adversely affected by working capital constraints which had a negative impact on capacity utilisation. Businesses continued to face high interest rates, acute liquidity challenges, power outages, lack of medium to long term funding, as well as deflation. The absence of significant foreign direct investment in the economy impacted negatively on companies. For Turnall Holdings, demand for building products remained lower than expected due to low disposable incomes in target market segments, as unemployment levels continued to increase. This was worsened by a drought season which saw consumers shifting their priorities from construction. As has been the case over the past few years, projects lined up for both sewer and water reticulation did not materialise as a result of funding limitations, despite the company having received inquiries and orders. Exports into South Africa were affected by price volatility due to the free fall of the rand thus limiting export volumes during the year. The company continued to import chrysotile fibre from Brazil and Russia in the year under review. The continued importation of key raw materials put pressure on both production costs and operating cash flows, resulting in margin decline. The company is following, with keen interest, developments around efforts by Government to resuscitate AA Mines. Financial performance We will be publishing our second sustainability report using and meeting the requirements of the Global Reporting Initiative (GRI) Sustainability Reporting Framework (G3.1: Level C) as an integrated report with our annual financial performance report for 2013. Outlook Liquidity constraints are expected to persist in the medium to long term. We believe that our future depends on our ability to harness all our skills, capabilities and experience in order to successfully navigate the current harsh economic climate. In the outlook, working capital and cash flow management will play a key role in improving the Groups operations. The additional line that was added to the business at the end of 2013, concrete tiles, has helped improve cash receipts as this is premised on a cash trading model. The fibre cement business which has traditionally traded on credit terms has also, since the beginning of the year 2014, been modelled around a similar cash trading model. The Group remains solid and is well positioned to take advantage of opportunities in the medium to long term. Despite the prevailing conditions in the economy, the Group sees opportunities in the infrastructure upgrade in water and sanitation together with housing construction. Exports which grew from US$1 million to US$1.7 million continue to offer the greatest opportunity for growth despite the weakening of the South African Rand. The Group has a firm order book as well as inquiries from the export market. Appreciation I would like to express my appreciation to all our customers, suppliers and stakeholders for the support and cooperation rendered. I would also like to record my appreciation to management and all staff at Turnall, for their diligence and contributions. I also want to take this opportunity to express my gratitude and appreciation to my colleagues on the Board, for the support and cooperation during the period under review. We have indeed carried on as a team. Finally, the Group and I would like to express its gratitude to the late Robert Dube who passed on in January 2014. We will certainly miss his invaluable contribution to the business.

6 086 836 9 542 352 24 433 711 1 488 266 458 640 35 922 969 42 009 805 68 982 625

6 604 514 10 779 318 19 078 437 1 488 266 494 906 31 840 927 38 445 441 67 980 841

Consolidated Statement of Cash Flows

2013 2012 US$ US$
CASH FLOWS FROM OPERATING ACTIVITIES

(Loss)/profit for the year (2562 580 ) 1059 915 Owing to a number of domestic and external factors, 2013 was a very challenging year for operators in the Adjustments for: manufacturing industry. The Groups results were therefore Depreciation of property, plant and equipment 2591 151 2422 240 significantly below par. Depreciation of investment property 6 413 6225 Net finance costs 3203 140 3114 517 Revenue of US$42.9 million was 1% above the previous Unrealised exchange losses (141976 ) (126 110 ) years level for the same period at US$42.5 million. (Profit)/loss on disposal of property, plant and equipment (3283 ) 6 438 Net change in other investments (4069 ) (373 ) The Group is of the view that the adverse liquidity situation in Interest payable (617 264 ) (288 822 ) the economy will persist in the short to medium term, thereby Income tax (credit)/expense (516 173 ) 149 974 posing challenges in the collection of trade receivables. As a result, the company has found it prudent to significantly Operating cash flows before reinvestment in working capital Decrease/(increase) in inventories Increase in trade and other receivables Increase in provisions, trade and other payables Withholding tax paid Income tax paid Realised exchange losses Interest paid Net cash flows from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment: - to increase operating capacity - to maintain current capacity Additions to investment property Proceeds from the sale of property, plant and equipment Interest received Net cash flows from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in loans and borrowings DECREASE IN CASH AND CASH EQUIVALENTS (3086541 ) (730373 ) (3816914 ) (16708 ) 29685 19 619 (3784318 ) (1542721 ) (1061439 ) (2604160 ) 3 285 (2600 875 ) 1 955 359 751 213 (1290 276 ) 5355 274 6 771 570 (1505 ) - (148995 ) (2 314 527 ) (2 465 027 ) 4306 543 6 344 004 (3944751 ) (16 530 ) 6344 320 8 727 043 (137 ) (638 551 ) (2956 ) (2 699 914 ) (3 341 558 ) 5385 485

increase the allowance for credit losses. To that end, an impairment provision of US$3.3 million (2012:US$ 0.027 million) has been recognised in the financial statements.

Gross profit margin was 24% compared with 29% in 2012, with an operating profit margin of 0.29% compared to 10% for the same period last year. A negative net profit margin of 7% was attained against a positive 2.85% for the previous year. Operating profit was US$0.124 million compared to US$4.32 million for the same period in 2012. Net finance charges were US$3.2 million compared to US$3.1 million for the previous year. Sustainability reporting Turnall is implementing an integrated approach in managing sustainability impacts and opportunities based on the Global Reporting Initiatives (GRI)s Sustainability Reporting Framework that the company adopted in 2011 as best practice. This model, which we will report on and publish annually, aims to engage with our key stakeholders and other standard setters. It progressively improves the quality of non-financial reporting while reflecting Turnalls true performance and sustainability impacts. Aspects of our operations such as effective asset utilisation, air quality improvement, waste reduction, employee wellness, gender balance and board responsibility, as well as impacts and opportunities of these attributes and their disclosure for accountability to the public and our stakeholders are available for interested parties to understand.

Herbert Nkala Chairman 20 March 2014 Dividend At a meeting held on 14 March 2014, the Board of Directors resolved not to declare a final dividend for the year to 31 December 2013 in view of the Groups lower than expected performance. By Order of the Board

Elizabeth Mamukwa Company secretary 20 March 2014 Auditors Statement The financial results should be read in conjunction with the complete set of financial statements for the year ended 31 December 2013, which have been audited by KPMG Chartered Accountants (Zimbabwe) and an unmodified audit opinion issued thereon. The auditors report on the financial statements, which form the basis of these financial results, is available for inspection at the Companys registered office.

(1236965 ) (714740 )

(2814522 ) (29912 )

Directors : H. Nkala (Chairman), J. A. Jere*, J. P. Mutizwa, P. C. C. Moyo, L. Manyenga, J. Mushayavanhu, C. E. Dhlembeu, R. Likukuma, C. M. Gadzikwa, K. Naik, R. Dhliwayo (* Executive Director)

www.turnall.co.zw