RADAR

TO BE THE BEST

Radar Holdings Limited

Audited Financial Results For The Year Ended 30 June 2013

Directors: HBAJ von Pezold (Chairman), E Hwenga (C.E.O), RE Breschini*, MS Mattinson*, BD Mtetwa, E Mlambo*, KRR Schofield, H Mapara , Z Kumwenda
GROUP STATEMENT OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 30 June 2013 for the year ended 30 June 2013 12 Months 12 Months 12 Months 12 Months 30-Jun-13 30-Jun-12 30-Jun-13 30-Jun-12 US$ US$ US$ US$ Continuing Operations Cash flows from operating activities Revenue 9 229 511 8 295 914 Operating profit for the year including discontinued operation 3 836 114 4 343 093 Cost of sales (6 409 460 ) (5 888 654 ) Gross profit 2 820 051 2 407 260 Adjusted for: Other operating income 74 613 325 869 Depreciation 2 792 826 2 949 442 Fair value loss on investment property (600 000 ) (200 000 ) Fair value gain on biological assets (8 592 455 ) (10 070 422) Depreciation (789 248 ) (828 319 ) Fair value loss on investment property 600 000 200 000 Other operating expenses (2 562 545 ) (1 190 810 ) Impairment loss 1 264 329 8 844 Operating (loss)/profit (1 057 129 ) 514 000 Plantation destroyed by fire 177 776 2 738 014 Net finance costs (937 592 ) (764 669 ) Loss on disposal of property, plant and equipment 3 719 262 140 Loss before tax (1 994 721 ) (250 669 ) Changes in working capital: Income tax (expense)/credit (295 224 ) 986 757 Inventory 2 787 545 4 861 388 (Loss)/profit for the year from continuing operations (2 289 945 ) 736 088 Trade and other receivables 2 147 504 (1 397 141 ) Trade and other payables 707 444 (381 055 ) Discontinued operations Cash generated from operating activities 5 724 802 3 514 303 (Loss)/profit for the period from discontinued operations (46 951 358 ) 574 081 (Loss)/profit for the year (49 241 303 ) 1 310 169 Taxation paid (36 923) (49 025 ) Attributable to: Net cash generated from operating activities 5 687 879 3 465 278 Equity holders of parent company (49 898 210 ) 418 605 Non-controlling interest 656 907 891 564 (49 241 303 ) 1 310 169 Cash flows from investing activities Purchase of property, plant and equipment (1 266 873 ) (3 762 976 ) (Loss)/profit for the year (49 241 303 ) 1 310 169 Expenditure on biological assets (3 141 994 ) (4 099 352 ) Proceeds on disposal of property, plant and equipment 228 720 701 961 Other comprehensive income: Distribution of subsidiary 2 654 176 (66 853 ) Items that will not be reclassified to profit or loss: Revaluation of property, plant and equipment 3 906 320 Net cash utilised in investing activities (1 525 971 ) (7 227 220 ) Tax on revaluation of property, plant and equipment (200 609 ) (291 170 ) 3 705 711 (291 170 ) Cash flows from financing activities Items that may be reclassified subsequently to profit or loss: Net proceeds from borrowings (738 527 ) 7 220 833 Net fair value gain/(loss) on available for sale financial assets 53 385 (62 622 ) Tax on fair value gain or loss on available for sale financial assets (2 669 ) 3 131 Interest paid (3 408 340 ) (3 067 694 ) 50 716 (59 491 ) Net cash (utilised in)/generated from financing activities (4 146 867 ) 4 153 139 Total other comprehensive income/(loss) for the year, net of tax 3 756 427 (350 661 ) Net increase in cash and cash equivalents 15 041 391 197 Total comprehensive (loss)/income for the year (45 484 876 ) 959 508 Cash and cash equivalents at beginning of year (3 112 034 ) (3 503 231 ) Attributable to: Equity holders of parent company (46 141 783 ) 56 170 Cash and cash equivalents at end of year (3 096 993 ) (3 112 034 ) Non-controlling interest 656 907 903 338 (45 484 876 ) 959 508 Total comprehensive (loss)/income attributable to equity shareholders arises from: Continuing operations 1 466 481 385 427 GROUP STATEMENT OF CHANGES IN EQUITY Discontinued operations (47 608 265 ) (329 257 ) (46 141 784 ) 56 170 For the year ended 30 June 2013 Key Statistics Shares in issue 51 085 875 51 085 875 Attributable to equity holders of the parent Earnings/(loss) per share (cents) - Basic and diluted from continuing operations per share (cents) (4.48 ) 1.44 Total Non - Basic and diluted from discontinued operations per share (cents) (93.19 ) (0.62 ) Share Other Retained shareholder controlling Total - (Loss)/earnings per share for the year (cents) (97.67 ) 0.82 capital reserves earnings equity interest equity - Headline (loss)/earnings per share for the year (cents) (93.71 ) 0.75 US$ US$ US$ US$ US$ US$

GROUP STATEMENT OF FINANCIAL POSITION Balance as at 30 June 2011 510 859 60 231 344 3 968 285 64 710 488 51 198 225 115 908 713 as at 30 June 2013 30-Jun-13 30-Jun-12 US$ US$ Comprehensive income: Profit for the year - - 418 605 418 605 891 564 1 310 169 ASSETS Other comprehensive income: Non current asset Property plant and equipment 15 306 736 59 964 729 Realisation of revaluation surplus Biological assets - 97 794 631 on disposal - (239 266) 239 266 - - - Investment property 3 200 000 3 800 000 Deferred tax charge to Available-for-sale investments 101 146 47,761 revaluation surplus - (302 944) - (302 944) 11 774 (291 170) Trade and other receivables 137 315 1 000 000 Total non-current assets 18 745 197 162 607 121 Fair value loss on available -for-sale financial assets - (59 491) - (59 491) - (59 491) Current assets Inventories 1 877 757 5 762 491 Trade and other receivables 682 827 6 022 462 Balance at 30 June 2012 510 859 59 629 643 4 626 156 64 766 658 52 101 563 116 868 221 Cash and cash equivalents 232 803 584 796 Total current assets 2 793 387 12 369 749 Comprehensive income: Loss for the year - - (49 898 210) (49 898 210) 656 907 (49 241 303) TOTAL ASSETS 21 538 584 174 976 870 Other comprehensive income: EQUITY AND LIABILITIES Surplus on revaluation of property, Share capital 510 859 510 859 plant and equipment - 3 705 711 - 3 705 711 - 3 705 711 Other reserves 10 900 255 59 629 643 Fair value loss on available Retained earnings 1 345 927 4 626 156 12 757 041 64 766 658 -for-sale financial assets - 50 716 - 50 716 - 50 716 Non-controlling interest - 52 101 563 Total equity 12 757 041 116 868 221 Transactions with owners: Non current liabilities Transfer to retained earnings Borrowings - 1 405 370 on disposal of subsidiary - (46 906 490) 46 906 490 - (52 758 470) (52 758 470) Deferred tax liability 1 749 863 33 670 859 Dividend distributed (6 601 526) (6 601 526) - (6 601 526) Total non current liabilities 1 749 863 35 076 229 Current Liabilities Deferred tax release - 733 692 Trade and other payables 490 417 5 310 853 Transfer of non distributable reserves - (6 313 017) Borrowings 6 541 263 17 721 567 Total current liabilities 7 031 680 23 032 420 Balance as at 30 June 2013 510 859 10 900 255 TOTAL EQUITY AND LIABILITIES 21 538 584 174 976 870 - 6 313 017 733 692 - - - 733 692 -

1 345 927 12 757 041

- 12 757 041

RADAR
TO BE THE BEST

Radar Holdings Limited

Audited Financial Results For The Year Ended 30 June 2013

Directors: HBAJ von Pezold (Chairman), E Hwenga (C.E.O), RE Breschini*, MS Mattinson*, BD Mtetwa, E Mlambo*, KRR Schofield, H Mapara , Z Kumwenda
NOTES TO THE GROUP FINANCIAL RESULTS
for the year ended 30 June 2013 1. Accounting policies 6.1 Discontinued operations

 The principal accounting policies of the Group have been followed in all material respects and conform to International Financial Reporting Standards (IFRS) and the Zimbabwe Companies Act (Chapter 24:03). The same accounting policies and methods of computation are followed as compared with t hose in the prior financial year This publication should be read in conjunction with the annual financial statements for the year ended 30 June 2013, which have been prepared in accordance with IFRSs and Zimbabwe Companies Act (Chapter 24:03).  International Accounting Standard 16 Property, Plant and Equipment requires that revaluations of property plant and equipment be undertaken on a regular basis. A professional revaluation was conducted as at 30 June 2013 and the next revaluation will be as at 30 June 2016. International Accounting Standard 41 Agriculture requires that the Group value its Biological Assets at fair value. The financial results are presented in United States Dollars which is the functional and presentation currency of the Group. 2. Audit report  The Auditors, Messrs PricewaterhouseCoopers, have indicated that the audit report on the financial statements for the Group for the year ended 30 June 2013 will be unqualified. 3. (i) (ii) (v) 4. 5 Related party transactions Transactions -sales of goods and services 291 627 1 735 140 -purchases of goods and services -impairment of receivables Year-end balances -receivable from related parties -payable to related parties Key management remuneration Property, plant and equipment Capital expenditure Depreciation Segment information Services Eliminations US$ US$ Total US$ (1 354 104 ) (3 762 976 ) (789 248 ) (828 319 ) 693 197 1 833 906 95 155 (26 541 ) 342 592 494 910 1 218 875 (247 989 ) 542 735 2013 US$ 2012 US$

 As disclosed below, discontinued operations recorded a loss of US$46 951 989 (2012: profit US$574 081) which has been included in the Group statement of comprehensive income as (loss)/profit from discontinued operations. The analysis of the years results are shown below: 2013 2012 US$ US$ Revenue 22 160 032 30 530 344 Cost of Sales (21 598 578 ) (29 035 828 ) Gross profit Other operating income/(expenses) - net Fair value gain/(loss) - biological assets Distribution and selling expenses Administration expenses Net finance costs Profit before tax 561 454 1 494 516 444 274 (228 761 ) 8 592 455 10 070 422 (2 132 057 ) (2 649 429 ) (2 572 882 ) (4 857 655 ) 4 893 244 3 829 093 (2 470 748 ) (2 382 739 ) 2 422 496 (622 323 ) 1 800 173 (48 751 531 ) (46 951 358 ) 1 446 354 (906 387 ) 539 967 34 114 574 081

Income tax charge Profit for the year from discontinued operations (Loss)/profit on disposal of discontinued operations
COMMENTARY

BACKGROUND Following the demerger of Border Timbers Limited on 31 May 2013 the group continuing operations now comprise of Macdonald Bricks, Radar Properties (Private) Limited and Radar Investments (Private) Limited. The demerger allows Radar Holdings Limited to build on the already positive performance achieved by the Group in the construction sector. Macdonald Bricks is a brick manufacturer in Bulawayo with two brick fields namely Montgomery works and Willsgrove works. This is a Radar Investments operating division. Radar Investments is the corporate services unit within the group and Radar Properties is a property company that owns commercial, residential and industrial properties and a small urban land bank in Bulawayo. GROUP OPERATIONAL AND FINANCIAL REVIEW The Groups turnover increased by 11%, from US$8,295,914 in FY12 to US$9,229,511 in FY13, a commendable performance given the prevailing economic environment. After tax profitability from continuing operations decreased from US$736 088 in FY12 to a loss of US$2 289 946 in FY13. This was due to a 23% increase in net finance charges to US$937 592 and impairing of intergroup receivables amounting to US$1 833 906. In summary the Groups operational efficiency has been adversely affected by high production costs due to erratic power supplies, increasing repairs and maintenance costs on old mobile machinery and relatively high input costs (raw materials, labour, transportation). The absence of suitably priced local debt finance and the limited availability of long term debt finance have inhibited the Groups ability to use debt finance to boost its operations and grow its asset base. The Group borrowings from continuing operations decreased by 10% to US$6,541,263, but this remains short term and affects current asset ratios. Management has engaged various local and regional financiers in an attempt to access cheaper long term debt finance. Negotiations with the potential financiers are at various stages and management is confident that a significant portion of the existing debt will be restructured and/or refinanced resulting in better solvency ratios going forward. Efforts are also in place to dispose of some excess assets in the Group to repay some of the short term debt. MACDONALD BRICKS The units turnover increased by 11% to US$9 128 384 compared to the previous year. The recorded increase was mainly attributable to a combination of an increase in sales volume as well as a better product mix. Sales volumes increased by 12% compared to prior year. This was driven by an increase in construction activity particularly in the first half of the year. Demand however slowed down in the last half of the year as some projects that were being supplied ran out of funding. The division posted a net income of US$1 687 107 compared to US$481 797 in the previous financial year. A total of US$490 206 was spent on capital expenditure during the year to replace old earth moving equipment that was proving to be very expensive to run and maintain. The power line project that experienced delays in the previous financial year was finally completed and commissioned in January 2013. This ensured an uninterrupted power supply to Willsgrove plant in the last half of the year and should see an improvement in production going forward. Construction of a coal storage/ washing bay was completed at Montgomery along with modifications to firing boxes on kilns. This has seen an improvement in smoke emissions from the plant. Management continues to effect improvements and aims to fully comply with EMA requirements. Rehabilitation of the quarry areas is on -going at both mining sites as is water conservation at the Willsgrove dam to ensure sustainable brick production. RADAR PROPERTIES Radar Properties is one of the companies that would benefit if the liquidity and economic environment improves. As such, management has taken a decision to position the company into property development sector, taking advantage of its existing urban land bank. While the country still experiences a huge housing backlog, there is an opportunity to tap into this infrastructural development. During the year, rental income declined 14% from US$155 911 to US$134 405. The operating environment is characterized by below market rentals and high default rate by tenants. Occupancy ratio dropped from 62% in FY12 to 58%.The focus continues to be on attracting high quality tenants against volume tenants. DISCONTINUED OPERATIONS The loss from discontinued operations of US$46 951 358 represents the transfer of the value of Border Timbers Limited from the holding company to individual shareholders. At Radar Holdings Limited consolidation level, Border Timbers Limited was accounted for at net asset value whilst the distribution in specie was accounted for at the market value of Border Timbers Limited shares. The loss is significant due to the disparity between the price of the ZSE quoted shares as compared to the net asset value of the subsidiary disposed. None of the shareholders of the Group suffered any loss as a result of the transaction as they continue to own the same assets in the two Groups. DIVIDEND Due to the ongoing retooling exercise and the need to bring down debt, the Board does not recommend any dividend. OUTLOOK The demand for the Groups products is expected to remain strong mainly driven by the construction industry. Most of the Groups products have been consumed by the residential development sector and it is expected that this trend will continue as a result of the strong demand for individual urban housing. Within Zimbabwe, Macdonald Bricks products are used in a wide variety of structures ranging from low cost housing to high rise buildings. In order to fully benefit from the anticipated increased demand, the Group intends to increase operational capacity by investing in capital equipment. The Group expects to benefit from increased volumes as a result of the newly installed dedicated powerline which will be in use for the full year. The new leaner head office structure will result in savings of US$480 000. DIRECTORATE Messrs H. Mapara and Z. Kumwenda were appointed to the board on 26 June 2013. Their diverse experience will be of enormous benefit to the Board. Messrs E. Mlambo, S. Mattinson, RE. Breschini resigned on 26 June 2013. We thank them for their contribution to the Board over the years. ACKNOWLEDGEMENT The Group greatly appreciates the support it has received from management and all staff. By order of the Board Radar Investments (Private) Limited Secretaries HARARE 20 September 2013

Forestry Manufacturing US$ US$ Revenue: Local 10 375 769 17 405 044 Total 10 375 769 17 405 044 Profit/(loss) before interest and taxation 8 359 411 1 730 571 Net interest expense (2 068 514 ) (576 622 ) Income tax expense (622 323 ) - Loss from discontinued operations - - Net profit/(loss) 5 668 574 1 153 949 Total assets - 6 925 044 Total liabilities - 2 381 515

1 303 348 (19 854 650 ) 9 229 511 1 303 348 (19 854 650 ) 9 229 511 (2 333 648 ) (8 813 464 ) (1 057 129 ) (894 129 ) 2 601 673 (937 592 ) (295 224 ) 622 323 (295 224 ) - (46 951 358 ) (46 951 358 ) (3 523 001) (25 540 826 ) (49 241 303 ) 14 613 540 7 119 663 - 21 538 584 (719 635 ) 8 781 543

6 Disposal of subsidiary  Radar Holdings Limited owned 22 005 087 shares in Border Timbers Limited representing 51,24% up to 31 May 2013. The Board decided to distribute its shares in Border Timbers Limited to shareholders through a dividend in specie.  In light of the competitive dollarised environment, the Board deems the demerger of Border Timbers Limited from Radar Holdings Limited as a necessary event given the differing financial needs and sectorial focuses of each business. In the Boards opinion, the demerger of Border Timbers Limited will position Radar Holdings Limited as a purely construction group. This will allow Radar Holdings Limited to build on the already positive performance achieved by the company in the construction sector.  The demerger of Border Timbers Limited will allow for clear operational focus which is both attractive to investors and positions Radar Holdings Limited to pursue its own independent direction. The strong stand alone Group will have a better ability to execute growth strategies designed to capitalise on the expected growth in construction and drive shareholder value.  On 31 October 2011, one of the Radar Holdings Limiteds wholly owned subsidiaries Radar Investments (Private) Limited disposed its construction and building materials trading division, United Builders Merchants (UBM). Assets Property, plant and equipment Biological asset Inventories Trade and other receivables Cash Liabilities Other liabilities Short term borrowings and bank overdrafts Net assets/(liabilities) directly associated with disposal group Non controlling Interest (Loss)/profit on disposal Total disposal consideration Consideration received in the form of dividend in specie Consideration received in cash Less cash and cash equivalents of subsidiary/division Net cash inflow/(outflow) 31-May-13 31-Oct-11 US$ US$ Border Timbers UBM 46 630 900 104 527 043 5 830 894 3 433 986 568 798 160 991 621 49 657 118 3 222 974 108 111 529 (52 758 470 ) (48 751 531 ) 6 601 528 (6 601 528 ) - (2 654 176 ) 2 654 176 604 548 1 118 922 200 075 66 854 1 990 399 2 024 512 (34 113 ) 34 114 1 1 66 854 (66 853)

Appointed - 26 June 2013 * Resigned - 26 June 2013