NOTES TO THE SUMMARISED AUDITED …

1 NOTES TO THE SUMMARISED AUDITED CONSOLIDATED FINANCIAL RESULTS BASIS OF PREPARATION AND ACCOUNTING POLICIES The results for the year ended 31 March 2017 have been prepared in accordance with International Financial Reporting Standards, the disclosure requirements of IAS 34, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the requirements of the South African Companies Act, 2008, and the Listing Requirements of the JSE Limited. The accounting policies applied by the Group in the preparation of these SUMMARISED AUDITED consolidated financial statements are consistent with those applied by the Group in its consolidated financial statements as at, and for, the year ended 31 March 2017. There was no material impact on the financial results identified based on management s assessment of the new standards adopted.

2 As required by the JSE Listings Requirements, the Group reports headline earnings in accordance with Circular 2/2015: Headline Earnings as issued by the South African Institute of Chartered Accountants. These financial statements were prepared under the supervision of the financial director, A S Lee (CA) SA. BUSINESS COMBINATIONS During the year the group acquired and consolidated 100% of Waterfront Film Studios Proprietary Limited, effective 1 July 2016. All risks and rewards have been transferred to the Group as 100% of the issued shares was acquired. The purchase consideration of the shareholding was million of which million is deferred at year-end. Impact of acquisition on the results Revenue and losses included in the results since the date of acquisition amounted to million and million respectively.

3 Revenue and losses which would have been included in the results, had the acquisition date been on the first day of the financial year, amount to million and million respectively. Identifiable assets acquired and liabilities assumed The following table summarises the amount of the assets acquired and liabilities assumed recognised as the acquisition date:Audited31 March2017R000'sCash 3 749 Liability deferred payment (fair value) 3 751 Total consideration 7 500 Recognised amounts of identifiable assets acquired and liabilities assumed:Property, plant and equipment 9 614 Deferred lease liability (1 496)Financial liabilities (current) (1 920)Deferred lease liability (current) (2 510)Total identifiable net assets 3 688 Goodwill 3 812 Total consideration 7 500 Cash flow from investing activityCash consideration transferred (3 749)Cash and cash equivalents in the business acquired - Net cash used in investing activities (3 749)

4 66 eMedia Holdings Integrated Annual Report 2017 discontinued operations AND DISPOSAL GROUP ASSETS/LIABILITIES held FOR SALE Following a decision at 31 March 2017 to sell the business of Lalela Music SA Proprietary Limited and Lalela Music LLC, the results of these operations were reclassified to discontinued operations in the statement of comprehensive income and in assets and liabilities to disposal groups held for sale in the statement of financial position. A decision was also taken to dispose of a commercial building at 73 Richefond Circle, Ridgeside, Umhlanga, KwaZulu-Natal owned by Sabido Properties Proprietary Limited. The sale of the business of Shibula Lodge, TVPC Media and Power (a subsidiary of Longkloof Limited) was effected on 13 July 2016 for Shibula Lodge and the latter two businesses on 1 July 2016. The proceeds on the sale of Power amounted to US$600 000, Shibula Lodge amounted to million and TVPC Media amounted to R1.

5 The Group sold a commercial building at 9 Summit Road, Dunkeld West, Johannesburg owned by Sabido Properties Proprietary Limited for R35 subsidiaries of the Longkloof Limited Group, eBotswana Proprietary Limited and Botswana Proprietary Limited, remain classified in discontinued operations in the statement of comprehensive income and its assets and liabilities remain classified to disposal groups held for sale in the statement of financial position as at, and for, the year ended 31 March 2017 since the sales are being finalised. discontinued operations as disclosed in the statement of comprehensive income consist of the following:AuditedAudited31 March31 March20172016*R000'sR000'sRevenueLongklo of Limited Group subsidiaries and associates 3 304 26 735 eBotswana and Botswana 4 409 4 790 TVPC Media, Shibula Lodge and Afrikaans Satelliet TV 1 112 14 564 Lalela Music SA and Lalela Music LLC 13 082 10 660 Total revenue 21 907 56 749 Profit/(loss) from discontinued operationsLongkloof Limited Group subsidiaries and associates 33 652 (131 187)eBotswana and Botswana (12) (554)TVPC Media, Shibula Lodge and Afrikaans Satelliet TV (4 076) (16 280)Lalela Music SA and Lalela Music LLC 2 997 2 000 Total profit/(loss) 32 561 (146 021)

6 *Prior year restated for entities reclassified as discontinued in the current yeareMedia Holdings Integrated Annual Report 2017 67 Disposal Group assets/liabilities held for sale as disclosed in the statement of financial position consist of the following:Property, plantIntangibleOtherTotaland equipmentassetsassetsassetsR000'sR000'sR 000'sR000'sAssets31 March 2017 Longkloof Limited Group subsidiaries and associates- - 5 590 5 590 eBotswana and Botswana 2 801 - 2 813 5 614 Lalela Music SA and Lalela Music LLC 295 12 001 7 133 19 429 Sabido Properties building to be sold 22 985 - - 22 985 Total assets 26 081 12 001 15 536 53 618 31 March 2016 Longkloof Limited Group subsidiaries and associates- 11 629 60 873 72 502 and Botswana 3 017 - 3 184 6 201 Shibula Lodge 5 532 - 397 5 929 Sabido Properties building to be sold 33 860 - - 33 860 Total assets 42 409 11 629 64 454 118 492 AuditedAudited31 March31 March20172016R000'sR000'sLiabilitiesLong kloof Limited Group subsidiaries and associates- (15 782)eBotswana and Botswana( 174) (303)

7 Shibula Lodge- (430)Lalela Music SA and Lalela Music LLC(1 447) - Total liabilities(1 621) (16 515)68 eMedia Holdings Integrated Annual Report 2017 CHANGES IN COMPARATIVES The results of discontinued operations have been separately disclosed on the face of the statement of comprehensive PARTY TRANSACTIONS During the year, in the ordinary course of business, certain companies within the group entered into transactions with one another. These intra-group transactions have been eliminated on consolidation. Transactions with Hosken Consolidated Investments Limited ( HCI ) (ultimate holding company), entities in which HCI has an interest, Remgro Limited ( Remgro ) (shareholder in eMedia Investments Proprietary Limited), and Venfin Media Investments Proprietary Limited ( Venfin ) (a wholly-owned subsidiary of Remgro) are included in the following table.

8 AuditedAudited31 March31 March20172016R000'sR000'sIncome/(expense ) transaction values with related partiesHCI management fees paid (15 810) (14 915)HCI internal audit service fee (136) (340)Venfin management fees paid (1 781) (1 689)Interest income interest-bearing loans to employees 128 139 Interest income unwinding of employee loans at 0% interest 1 249 1 028 Balances owing (to)/by related partiesHCI working capital loan (8 602) (8 602)HCI Managerial Services Proprietary Limited (1 555) (1 450)Venfin loan relating to the acquisition of Longkloof Limited (156 605) (156 605)Cape Town Film Studios associate loan 101 858 95 442 Dreamworld Management Company associate loan 11 666 11 182 Employees of the Group loans relating to company shares held by employees 14 593 19 205 eMedia Holdings Integrated Annual Report 2017 69