Med

HOLDINGS
CHAIRMANS REPORT Highlights:

Tech
LIMITED

FINANCIAL HIGHLIGHTS
FOR THE HALF YEAR ENDED 30 JUNE 2013
SELECTED NOTES TO THE INTERIM FINANCIAL STATEMENTS 2013 5. Supplementary information Capital expenditure Depreciation expense Approved Capital Commitments at the date of approval of the financial statements Operating profit from continuing operations Operating profit is stated after accruing for items of significance: Auditors remuneration Directors Fees 6. Approval and events after the reporting period The underlying financial statements to these results were approved by the Board on 10th September 2013. Subsequent to the reporting period date there were no material adjusting or non-adjusting events. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2013 Unaudited Unaudited 30-Jun 30-Jun 2013 2012 $ $ Restated 7,000,390 6,370,079 (4,742,456) (4,520,867) 2,257,934 1,849,212 331,998 144,986 (116,091) (195,624) 215,907 (50,638) (54,738) 13,039 161,169 (37,599) (240,653) 161,169 (278,252) 65,407 95,762 161,169 0.006 0.006 (32,540) (122,733) (5,059) (117,920) (278,252) (0.007) (0.009) (0.007) $ 263,837 59,857 60,000 331,998 28,773 17,418 2012 Restated $ 47,137 45,599 20,000 144,986 21,196 7,680 Balances as at 31 December 2011 Total comprehensive income for the six months Balances as at 30 June 2012 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR SIX MONTHS ENDED 30 JUNE 2012 Accumulated (losses)/ retained earnings $ (868 408) (155 273) Non-distrShare Share ibutable Capital Premium reserve $ $ $ 27 996 27 996 1 562 694 1 562 694 1 011 253 Noncontrolling Total Interest $ $ 1 733 535 (155 273) 1 578 262 522 267 (122 979) 399 288

Group revenues increased 9.3% from $ 6.4 million in H1 2012 to $ 7.0million in H1 2013. Chicago Cosmetics has strong first half. Pepsi associate commences business. Commentary: Group: Revenues Gross Profit % 2012 Restated 7,000,390 6,370,079 27.1% 26.6% 2013

Total $ 2 255 802 (278 252) 1 977 550

Following the discontinuation of Zimbabwe Pharmaceuticals, the 2012 comparative figures have been restated to show a fair comparison of continuing operations. The 2013 results show modest growth and profitability in the FMCG Distribution business, and an increase in Medical Segment revenues. Gross profit percentage of 27.1% for 2012 improved on the 2011 figure of 26.6% on a better sales mix with higher margins. The balance sheet reflects the expansion in the Manufacturing Segment and the growth in volumes in the Medical and FMCG Segments. Liquidity has improved following the discontinuation of Zimbabwe Pharmaceuticals, given that financing of losses and recapitalization of that unit ceased in November 2012. Following an internal reorganization the business has been split into FMCG, Medical and Manufacturing segments. All of the manufacturing output is sold through the FMCG segment. FMCG Segment: Revenues Gross Profit % 2013 2012 5,757,005 5,490,532 27% 28%

1 011 253 (1 023 681)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR SIX MONTHS ENDED 30 JUNE 2013 Accumulated (losses)/ retained earnings $ (868 408) (424 052)

Turnover Cost of Sales Gross Profit Operating profit Net Financing Costs Profit/(Loss) before Taxation Taxation Profit/(Loss) from continuing operations Loss from discontinued operations Profit/(Loss) after taxation Attributed as follows : Equity holders of the parent from continuing operations Equity holders of the parent from discontinued operations Non- controlling interest from continuing operations Non- controlling interest from discontinued operations Total comprehensive Profit /(Loss) for the year Earnings per share Basic profit/(loss) per share (cents) Basic profit/(loss) per share (cents) from discontinued operations Headline profit/(loss) per share (cents)

Share Share Capital Premium $ $ Balances as at 31 December 2011 Discontinued operation Total comprehensive loss for the year Balances as at 30 December 2012 Reserves restatement Total comprehensive income for the six months Balances as at 30 June 2013 27 996 27 996 27 996 1 562 694 1 562 694 1 562 694

Non-distributable reserve $ 1 011 253 -

Total $ 1 733 535 (424 052) 1 309 483 65 407 1 374 890

Noncontrolling Interest $ 522 267 157 455 98 086

Total $ 2 255 802 157 455 (325 966)

1 011 253 (1 292 460) (776 542) 234 711 776 542 65 407 (450 511)

777 808 2 087 291 95 762 161 169

The FMCG Segment includes MedTech Distribution and Smart Retail. Segment sales grew 5% compared with the corresponding period, with Distribution growth of 13% offset by lower Retail sales. Medical Segment: Revenues Gross Profit % 2013 1,243,386 31% 2012 862,064 32%

873 570 2 248 460

The Medical Segment includes MedTech Medical and Scientific (Pvt) Ltd and Education and Laboratory Services Division. The segment has delivered sales growth of 44%, in line with expectations. Financing options currently being pursued will assist in funding working capital as the division experiences strong demand for both local and imported product. Business expectations are that the segment will reach profitability in 2014, after a breakeven 2013. Manufacturing Segment: Revenues Gross Profit % 2013 991,308 26% 2012 0 0%

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013 Unaudited 31-Jun 2013 $ ASSETS Non-current assets Property,plant and equipment Deferred taxation Loans receivable Current Assets Inventories Accounts receivable Loans receivable Cash and bank balances Total assets EQUITY AND LIABILITIES Reserves Capital and reserves Non-controlling interests Non-current liabilities Deferred taxation Current Liabilities Trade and other Payables Short term borrowings Taxation Bank overdraft Total equity and liabilities 729,562 98,898 374,637 1,203,097 Audited 31-Dec 2012 $ 525,582 88,121 547,162 1,160,865

The Group has set up a toiletries manufacturing subsidiary in Ruwa. Fundamentals are positive and well branded Baby Line Petroleum jelly, and Clereglycerine are manufactured. The product range is set to expand as more equipment arrives. Zimbabwe Pharmaceuticals As previously advised to shareholders the group has accepteda firm offer from a local company for the entire shareholding of Zimbabwe Pharmaceuticals, for the sum of $1.00, but with certain guarantees against historic debt with some security in place for this debt. The local consortium has not yet provided security, nor has Zimbabwe Pharmaceuticals paid the first installment due on the debt guarantee. Management are seeking legal advice before acting on the non-compliance. Dividend The Board does not intend to declare a dividend in view of the cash requirements associated with Medtech's growth strategy. Outlook The Group is in the process of investing in an associate company, MedTech Food and Beverages (Pvt) Ltd, and has commenced distribution operations for beverage products, which are bottled in Zambia and Mozambique. The Board is optimistic for the second half of 2013, following the peaceful elections held on 31st July. The macro-economic outlook could witness an upturn if policy consistency and investor confidence improves. Appreciation I would like to record my appreciation to my fellow directors, our customers, suppliers, managers and staff for their role in the development of the MedTech Group. The Group remains focussed on performance and is committed to stakeholders who share similar values. Mrs. Rose Mazula Chairman MedTech Holdings Limited 10th September2013 Directors: R. Mazula(Chairman), A. Motiwala* (CEO);K.P. McCosh*(Finance);F. Sheikh; T.Sheikh; V. Lapham. (*Executive) SELECTED NOTES TO THE INTERIM FINANCIAL STATEMENTS For the 6 months ended 30th June 2013 1. 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). 2. 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 Company. 3. Contingent liabilities The Group had no material contingent liabilities as at 30th June 2013. 4. Restatement of reserves Following a review of Group Non- Distributable reserves after the discontinuation of Zimbabwe Pharmaceuticals, an amount $776,542 was restated from Non- distributable to Distributable Reserves. These reserves arose from the revaluation following the switch in reporting from local currency to United States Dollars in 2009. The net effect on overall reserves is $ nil.

4,359,704 3,595,087 2,896,741 2,588,299 296,275 123,750 15,326 168,329 7,568,046 6,475,465 8,771,143 7,636,330

1,374,890 873,570 2,248,460 146,065

1,309,483 777,808 2,087,291 135,721

5,341,668 4,052,195 333,060 939,816 271,977 228,406 429,913 192,901 6,376,618 5,413,318 8,771,143 7,636,330

CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2013

Unaudited Unaudited 30-Jun 30-Jun 2013 2012 $ $ Restated NET CASHFLOW FROM OPERATING ACTIVITIES Operating profit from continuing operations Depreciation on property, plant and equipment Profit on disposal of equipment Net increase / (decrease) in working capital Net Finance cost Income tax paid NET OPERATING CASHFLOW NET CASHFLOW FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment Proceeds from disposal of equipment Net cashflow from investing activities NET CASH FLOWS BEFORE FINANCING ACTIVITIES NET CASH FLOW FROM FINANCING ACTIVITIES Net movement in loans payable DECREASE IN CASH AND CASH EQUIVALENTS 331,998 59,857 391,855 144,986 45,599 (1,803) 188,782

216,414 (257,767) (116,091) (195,624) (11,600) (4,620) 480,578 (269,229) (263,837) (263,837) 216,741 (606,756) (390,015) (47,137) 7,300 (39,837) (309,066) (367,849) (676,916)