The Directors of TSL Limited are pleased to announce the Group's unaudited results for the six months ended 30 April 2018.

SALIENT FEATURES

TSL LIMITED GROUP'S UNAUDITED RESULTSTSL LIMITED GROUP'S UNAUDITED RESULTSTSL LIMITED GROUP'S UNAUDITED RESULTSFor the six months ended 30 April 2018For the six months ended 30 April 2018For the six months ended 30 April 2018

Operating profit up 27% to US$ 3.5 million.

Operating profit before tax up 32% to US$ 2.8 million.

Available for sale investment disposed of at a profit of $ 7.7 million.

Revenues up 4% to US$ 24.6 million.

Gearing ratio improved to 12% from 15%.

Operating cash flow re-invested in stocks.

Net Asset Value per share up 9% to 22.2 cps.

Significant capital projects to be undertaken in Second Half.

GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME

Six Months Full Year Six Months Ended Ended Ended 30 April 2018 31 Oct 2017 30 April 2017 Unaudited Audited Unaudited US$ US$ US$ Revenue 24,596,326 50,555,093 23,626,316 Profit from operations 3,500,096 7,002,016 2,761,707 Net finance costs (694,703) (1,244,843) (643,861)Fair value adjustments and impairments - 623,209 - Profit before tax from operations 2,805,393 6,380,382 2,117,846Profit on disposal of available for sale investment 7,681,998 - - .Profit before tax 10,487,391 6,380,382 2,117,846Income tax charge (709,789) (1,537,132) (533,524)Profit for the year 9,777,602 4,843,250 1,584,322 Attributable to: Equity holders of the parent 9,249,696 4,258,642 1,390,939 Non-controlling interest 527,906 584,608 193,383 9,777,602 4,843,250 1,584,322 Number of shares in issue 357,102,445 357,102,445 357,102,445Earnings per share (cents) 2.6 1.2 0.4 Headline earnings per share 0.6 1.1 0.4 Other comprehensive income: Not to be reclassified to profit or loss in subsequent periods: Net revaluation of property - 647,312 - To be reclassified to profit or loss in subsequent periods: Net gain on available for sale investment - 3,108,964 - Recycling of available for sale reserve (3,055,288) - - Total other comprehensive income, net of tax (3,055,288) 3,756,276 - Total comprehensive income 6,722,314 8,599,526 1,584,322 Attributable to: Equity holders of the parent 6,194,408 7,986,680 1,565,184 Non-controlling interest 527,906 612,846 19,138 6,722,314 8,599,526 1,584,322

GROUP CONDENSED STATEMENT OF FINANCIAL POSITION

As at As at As at 30 April 2018 31 Oct 2017 30 April 2017 Unaudited Audited UnauditedASSETS US$ US$ US$Non-current assets Property, plant and equipment 34,705,417 34,143,300 31,450,400 Investment properties 36,255,860 36,255,860 35,165,556 Available-for-sale investment - 10,040,368 6,900,000 Biological assets - - 510,855 Intangible assets 817,074 817,074 817,074 . 71,778,351 81,256,602 74,843,885 Current assets Biological assets 1,713,800 499,429 1,407,764 Inventories 12,663,164 9,111,164 8,530,028 Trade and other receivables 9,694,570 9,218,314 11,022,294 Inventory prepayments 1,040,004 2,741,275 - Cash and short-term deposits 7,020,244 2,309,674 2,982,690 32,131,782 23,879,856 23,942,776 Investment held-for-sale 2,077,000 2,077,000 2,077,000 .Total assets 105,987,133 107,213,458 100,863,661

EQUITY AND LIABILITIES Equity Issued share capital and premium 6,469,824 6,469,824 6,469,824 Non-distributable reserves 43,888,716 46,944,004 42,836,656 Retained earnings 28,912,657 26,042,724 23,589,637 Attributable to equity holders of parent 79,271,197 79,456,552 72,896,117 Non-controlling interest 3,732,311 3,204,405 2,784,942 Total equity 83,003,508 82,660,957 75,681,059 Non-current liabilities Interest bearing loans and borrowings 3,960,542 3,093,745 2,043,026 Deferred tax liabilities 7,585,798 7,686,202 7,776,178 11,546,340 10,779,947 9,819,204 Current Liabilities Interest bearing loans and borrowings 6,267,077 8,558,571 9,047,038 Bank overdraft - 216,069 - Provisions 441,630 451,098 366,719 Trade and other payables 4,019,270 3,479,265 5,726,830 Income tax payable 709,308 1,067,551 222,811 11,437,285 13,772,554 15,363,398 .Total equity and liabilities 105,987,133 107,213,458 100,863,661 Current ratio 2.8 1.7 1.6

SUPPLEMENTARY INFORMATION 30 April 2018 31 Oct 2017 30 April 2017

Unaudited Audited Unaudited

US$ US$ US$

Capital commitments - authorised but not contracted for 6,450,000 6,450,000 2,053,500

Depreciation on property, plant and equipment 1,129,274 1,992,233 982,131

GROUP CONDENSED STATEMENT OF CASH FLOWS

30 April 2018 31 Oct 2017 30 April 2017

Unaudited Audited Unaudited

US$ US$ US$

OPERATING ACTIVITIES

Profit before tax 10,487,391 6,380,382 2,117,846

Non-cash adjustments to reconcile profit before tax to net cash flows (5,640,834) 3,842,074 2,460,388

4,846,557 10,222,456 4,578,234

Net increase in working capital (2,883,542) (4,577,387) (1,292,201)

Operating cash flow 1,963,015 5,645,069 3,286,033

Net finance costs paid (694,703) (1,244,843) (643,861)

Income tax paid (1,168,436) (1,114,474) (609,737)

Dividends received from associate - 300,000 -

Net cash generated from operating activities 99,876 3,585,752 2,032,435

INVESTING ACTIVITIES

Purchase of property, plant and equipment and investment properties (2,100,926) (4,109,179) (968,220)

Proceeds on disposal of property, plant and equipment 65,071 243,324 100,915

Proceeds on disposal of available for sale investment 14,667,078 - -

Repayment of loan by former associate - 66,541 37,339

Net cash generated from / (used in) investing activities 12,631,223 (3,799,314) (829,966)

FINANCING ACTIVITIES

Net (decrease) / increase in loans and borrowings (1,424,697) 110,844 (451,408)

Dividends paid to equity holders of parent

Ordinary dividend (1,586,129) (1,071,306) (1,036,000)

Special dividend (4,793,634) - -

Net cash used in financing activities (7,804,460) (960,462) (1,487,408)

Net increase / (decrease) in cash and cash equivalents 4,926,639 (1,174,024) (284,939)

Cash and cash equivalents at the beginning of the period 2,093,605 3,267,629 3,267,629

Cash and cash equivalents at the end of the period 7,020,244 2,093,605 2,982,690

Represented by:

Cash and short-term deposits 7,020,244 2,309,674 2,982,690

Bank overdraft - (216,069) -

7,020,244 2,093,605 2,982,690

GROUP STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 APRIL 2018

Issued Total share Non- attributable capital distribu- to equity Non- and table Retained holders controlling Total premium reserves earnings of parent interest equity Balance at 1 November 2017 6,469,824 46,944,004 26,042,724 79,456,552 3,204,405 82,660,957 Profit for the period - - 9,249,696 9,249,696 527,906 9,777,602 Other comprehensive income - (3,055,288) - (3,055,288) - (3,055,288)Total comprehensive income - (3,055,288) 9,249,696 6,194,408 527,906 6,722,314 Ordinary dividend - - (1,586,129) (1,586,129) - (1,586,129)Special dividend - - (4,793,634) (4,793,634) - (4,793,634)Balance at 30 April 2018 6,469,824 43,888,716 28,912,657 79,271,197 3,732,311 83,003,508 Balance at 1 November 2016 6,469,824 42,836,656 23,234,698 72,541,178 2,591,559 75,132,737 Profit for the period - - 1,390,939 1,390,939 193,383 1,584,322 Other comprehensive income - - - - - - Total comprehensive income - - 1,390,939 1,390,939 193,383 1,584,322 Dividends - - (1,036,000) (1,036,000) - (1,036,000)Balance at 30 April 2017 6,469,824 42,836,656 23,589,637 72,896,117 2,784,942 75,681,059

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 APRIL 2018

1. BASIS OF PREPARATIONThe abridged consolidated financial results have been prepared in accordance with International Financial Reporting Standards (IFRS), the requirements of the Companies Act [Chapter 24.03] and the Zimbabwe Stock Exchange listing requirements. The Directors of TSL Limited are responsible for the preparation and fair presentation of these abridged group financial results.

2. PRESENTATION AND FUNCTIONAL CURRENCY The Group's presentation and functional currency is the United States Dollar (US$).

3. ACCOUNTING POLICIESThe accounting policies are consistent with those used in preparing the 31 October 2017 Group financial statements.

4. GOING CONCERNThe abridged consolidated financial results have been prepared on a going concern basis as the directors are of the opinion that the Company is a going concern.

5. CONTINGENT LIABILITIESThere are no material contingent liabilities at the reporting date.

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6. EVENTS AFTER THE REPORTING DATE

There have been no significant events after the reporting date at the time of issuing this press statement.

7. NET FINANCE COSTS Six Months Full Year Six Months

Ended Ended Ended

30 April 2018 31 Oct 2017 30 April 2017

Unaudited Audited Unaudited

US$ US$ US$

The major components of net financing costs are shown below:

Interest on debts and borrowings 729,054 1,291,007 651,788

Interest on investments with banks during the year (34,351) (46,164) (7,927)

Net finance costs in profit or loss 694,703 1,244,843 643,861

8. TAXATION

The major components of income tax expense for the half years ended 30 April 2018 and 2017

and the full year ended 31 October 2017 are shown below:

Current income tax charge 657,909 1,877,617 530,607

Withholding tax on interest income and directors fees 2,401 5,384 2,917

Capital gains tax 149,883 - -

Deferred tax relating to origination and reversal of temporary differences (100,404) (345,869) -

Income tax expense in profit or loss 709,789 1,537,132 533,524

9. BORROWINGS

The terms and conditions of the borrowings are as below: As at As at As at

30 April 2018 31 Oct 2017 30 April 2017

Unaudited Audited Unaudited

US$ US$ US$

Authorised in terms of Articles of Association 124,505,262 123,991,436 113,521,589

Interest bearing loans and borrowings Interest Maturity 30 April 2018 31 Oct 2017 30 April 2017

rate% US$ US$ US$

Current Interest bearing loans and borrowings:

Bank borrowings 5%-9% 2018 6,267,077 8,558,571 9,047,038

Non-current Interest bearing loans and borrowings:

Bank borrowings 5%- 2019 - 3,960,542 3,093,745 2,043,026

9% 2020

Total interest bearing loans and borrowings 10,227,619 11,652,316 11,090,064

Actual borrowings as a percentage of authorised borrowings 8% 9% 1 0 %

Secured loans

There is a negative pledge of assets in respect of overdrafts and bank borrowings. The Group has pledged part of its freehold

property with a carrying amount of US$ 30.6 million (31 October 2017 : US$ 30.6 million) in order to fulfil the collateral

requirements for the borrowings in place. The counterparties have an obligation to return the securities to the Group. There are no

other significant terms and conditions associated with the use of collateral.

10. GROUP CONDENSED SEGMENT RESULTS

For the six months ended 30 April 2018 Logistics Agriculture Real Estate Serv- Consoli-

Operations Operations Operations ices dated

US$ US$ US$ US$ US$

Revenue-external 6,877,176 14,175,608 1,936,504 1,607,038 24,596,326

Depreciation and amortisation 463,667 413,288 138,937 113,382 1,129,274

Segment profit /(loss) (136,961) 2,776,056 1,077,142 (216,141) 3,500,096

Profit on disposal of available for-sale-investment - - - 7,681,998 7,681,998

Operating assets 11,616,703 23,853,227 56,907,765 10,715,364 103,093,059

Operating liabilities 1,227,861 2,507,969 27,752 697,318 4,460,900

Other disclosures:

Available for-sale-investment - - - - -

Investment held-for-sale - - - 2,077,000 2,077,000

Capital expenditure 942,933 287,659 866,334 4,000 2,100,926

For the year ended 31 October 2017

Revenue-external customers 14,579,113 29,106,142 3,818,065 3,051,773 50,555,093

Depreciation and amortisation 825,508 748,912 294,576 123,237 1,992,233

Fair value adjustment and impairments - 66,605 556,604 - 623,209

Segment profit 792,137 4,431,119 1,604,072 174,688 7,002,016

Operating assets 10,825,564 25,632,393 56,077,841 1,743,218 94,279,016

Operating liabilities 1,121,767 1,794,323 381,696 632,577 3,930,363

Other disclosures:

Available for-sale-investment - - - 10,040,368 10,040,368

Investment held-for-sale - - - 2,077,000 2,077,000

Capital expenditure 1,523,640 1,186,821 1,333,818 64,900 4,109,179

For the six months ended 30 April 2017 Logistics Agriculture Real Estate Serv- Consoli-

Operations Operations Operations ices dated

US$ US$ US$ US$ US$

Revenue -external customers 6,911,274 13,028,488 2,130,295 1,556,259 23,626,316

Depreciation and amortisation 411,821 329,829 147,775 92,706 982,131

Segment profit 28,222 1,670,605 1,004,921 57,959 2,761,707

Operating assets 10,629,418 25,013,112 54,266,258 1,160,799 91,069,587

Operating liabilities 820,556 4,325,967 686,847 260,179 6,093,549

Other disclosures:

Available for-sale-investment - - 6,900,000 6,900,000

Investment held-for-sale - - - 2,077,000 2,077,000

Capital expenditure 468,470 447,060 52,690 - 968,220

11.  PERFORMANCE OVERVIEW

The Group's first half results to 30 April 2018 have been positive. Revenue increased by 4% to $ 24.6 million, operating profit was up

27% to $ 3.5 million and profit before tax from operations was 32% above prior year at $ 2.8 million.

Performance of the agriculture cluster has been satisfactory. The inconsistent rainfall pattern resulted in a reduced uptake of agro-

inputs.

The tobacco related businesses, are poised to benefit from an increased market share of the national tobacco crop which is expected

to be between 10% and 15% up on prior year with estimates ranging between 210 and 220 mkg along with prices that are expected

to be marginally firmer. The one-week later start to the tobacco selling season has, to an extent, affected the numbers reported for the

tobacco-related businesses, but these volumes should be reflected in the Group's full year results.

The trend in the performance of the Group’s logistics and real estate clusters is encouraging. All units have contributed positively to

profit, with the exception of the forklift business, which is expected to have a stronger second half as tobacco processing commences.

Our clients, in the logistics cluster continue to be variously impacted by the general economic environment and unavailability of

adequate foreign currency for importation of raw materials and finished goods.

During the period, the Group disposed of its entire 16.53% stake in Nampak Zimbabwe Limited, which had been designated as

available for sale since October 2014. A sizeable non-operating profit on disposal of $ 7.7 million has been shown in the income

statement. As at half year, $ 4.8 million of the proceeds had been distributed as a special cash dividend to shareholders. $ 10 million

of the funds have been earmarked for capital projects which are to be undertaken in the second half of the year. In the meantime, part

of the funds have been temporarily invested on the money market to reduce the Group's cost of funding.

The Group’s financial position remains sound. Net Asset Value per share has increased by 8% to 22.1 cents. The Group’s current

ratio is up 76% to 2.7, buoyed by the funds from the disposal of the investment in Nampak. Cash generation remains healthy and the

focus will be on improving this. Gearing has been reduced to 12% from 15% as the Group continues to carefully control its financial

commitments.

Agricultural Operations

Tobacco related servicesTobacco Sales Floor has retained its dominant position in the auctioning of the independent crop with market share holding at over

60%. Overall, full year volumes are expected to be up on prior year given the increased national tobacco crop. Volumes reported in

the first half are, however, lower than in the previous year due to the later start to the tobacco selling season.

The later start to the tobacco selling season has impacted the reported volumes of the hessian business. However volumes are above

prior year, due to new contracts signed up and the business has retained its preferred supplier position in the supply of hessian to the

market.

Agricultural tradingAgricura's revenue and profitability have improved on last year. Timely stocking of product, in our distribution channels, has been key

in being able to largely satisfy the market demand created by the reasonable rainfall season.

Farming operationsOverall, the farming operations are on track to have a more profitable year. The quality and yield of tobacco produced has improved

from prior year and is expected to fetch better prices under the existing off-taker arrangement. Commercial and seed maize yields

are down given disease pressures and the dry spell in January. Harvesting of the soya bean crop has been delayed but will contribute

to second half profitability. The company grew its first pea crop, as a trial, and sales have commenced. Prices at this stage are

satisfactory. The bulk of revenues and profits from the farming operations will go into the second half of the Group’s financial year.

Logistics Operations

End to end logistics servicesBak Logistics has had an improved first half. General cargo volumes are considerably up on prior year as the company has

introduced value-add services particularly for fertiliser importers. Tobacco volumes have also increased on the back of increased

volumes with existing merchants. The distribution business continues to be negatively impacted by limited availability of foreign

currency. Ports have experienced a significant decline in volumes of imports, which is reflective of the operating environment.

Premier forklift undertook some major servicing of its hire fleet in this first half, which negatively impacted its performance. The later

start to the tobacco season also meant that very little tobacco processing had commenced at half year. The business is expected to

have a stronger second half as tobacco processing commences in earnest and on the back of improved forklift sales.

Key Logistics, the freight forwarding and customs clearance business, continues to perform satisfactorily and focus is on expanding

the customer base. The performance of this business is heavily dependent on the ability of its customer base to access foreign

currency for imports.

Vehicle rentalAvis remains profitable in the current environment as costs continue to be contained in line with business volumes.

Real Estate Operations

There has been a marginal improvement in the performance of the operations, owing in part to the increase in demand for

warehousing, given the larger tobacco crop. Void levels have remained satisfactory, largely attributable to termination of leases with

tenants in preparation for property redevelopments to be undertaken in the second half. Phase one of the Vorstermans development

project has been completed and two of the three new warehouses have been fully let.

Investments

The Group’s investment, Cut Rag Processors remains classified as held for sale. However, the Board is reviewing its position on this

investment based on the current economic environment.

12.  OUTLOOK

There has been a noticeable and positive change in the mood of both local and foreign industry players given the new national thrust

that is focused on unlocking potential in our economy. The Group will continue to play its part in key sectors of the economy, namely

agriculture, logistics and real estate. A review of the Group's strategy is currently underway in order to position the business to take

advantage of the significant growth opportunities that we see in the medium term.

In the meantime, the operating environment remains challenging and the Group will continue to position itself accordingly. Group

performance for the full year is expected to be ahead of last year given the current momentum, despite the slow down in the seasonal

businesses in the second half. The availability of foreign currency for the importation of inputs to support agriculture will be key.

13.  DIRECTORATE

Mr. Washington Matsaira, who had been the Group CEO since 2012 retired on 30 April 2018. The Board thanks him for his

invaluable contribution to the Group during challenging times. He was invited to join the Board as a Non-Executive Director with

effect from 1 May 2018.

The Board wishes to welcome Mr. Patrick Devenish as Group CEO with effect from 1 May 2018.

14.  DIVIDEND

Due to the seasonal nature of the business, the Board has decided not to declare a dividend for the six months ended 30 April 2018.

20 June 2018

By Order of the Board

Tobacco Sales Administration Services (Private) Limited

Secretaries

Directors: A S Mandiwanza (Chairman), P Devenish*(Chief Executive Officer), W Matsaira, K Naik, P Shah, B Ndebele, H Rudland, R Costa, N Swanepoel, M Nzwere, P Mujaya*, D Odoteye* (Chief Finance Officer). (* Executive)

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