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UNAUDITED INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2002

ABRIDGED CONSOLIDATED
BALANCE SHEET

30 September 31 March
2002 2001 2002
R`000 R`000 R`000
(unaudited) (unaudited) (audited)
ASSETS
Non-current assets 1,924,869 3,123,363 2,618,524
Property, plant and 79,579 89,332 84,484
equipment
Intangible assets – 132,904 –
Deferred tax – – 49
Investments 1,845,290 2,901,127 2,533,991
Current assets 552,490 667,065 663,145
Total assets 2,477,359 3,790,428 3,281,669
EQUITY AND LIABILITIES
Ordinary shareholders` 1,295,945 2,792,118 2,051,852
equity
Minority shareholder 11,092 116,645 15,844
interest
Non current liabilities 770,894 435,632 743,903
and preference shares
Current liabilities 399,428 446,033 470,070
Total equity and 2,477,359 3,790,428 3,281,669
liabilities
Net tangible asset value 3.49 7.41 5.58
per share (cents)
HOSKEN CONSOLIDATED
INVESTMENTS LIMITED
ABRIDGED CONSOLIDATED INCOME
STATEMENT
Six months Year
ended ended
30 September 31 March
2002 2001 2002
R`000 R`000 R`000
(unaudited) (unaudited) (audited)
Revenue 256,756 195,765 390,266
Operating loss (63,053) (107,707)
(341,221)
Investment income 41,308 45,464 60,681
Share of associated 25,891 8,392 34,410
companies profits
Investment surplus – 12,663 18,813
Impairment of goodwill and (5,231) –
investments (296,324)
Operating loss before (1,085) (41,188)
taxation (523,641)
Taxation 1,943 3,970 5,469
Loss before preference (3,028) (45,158)
dividends and interest (529,110)
Preference dividends and (60,130) (31,016) (72,181)
interest
Attributable to minorities (273) 48,093 166,398
Loss attributable to (63,431) (28,081)
ordinary shareholders (434,893)
Reconciliation of headline
loss
Loss attributable to (63,431) (28,081)
ordinary shareholders (434,893)
Adjusted for:
Investment surplus – (12,663) (18,813)
Amortisation of goodwill 4,936 11,917 14,615
Profit on sale of assets (33) – (21)
Impairment of goodwill and 5,231 – 296,324
investments
Headline loss (53,297) (28,827)
(142,788)
Loss per share (Cents)
-Basic (17.16) (7.25) (115.90)
-Headline (14.42) (7.44) (38.00)
Weighted average number of 369,721 387,417 375,294
shares in issue (`000)
Actual number of shares in
issue at end
of period (net of treasury 371,177 376,768 367,530
shares) (`000)
HOSKEN CONSOLIDATED
INVESTMENTS LIMITED
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
Share Share
capital premium NDR Loss Total
R`000 R`000 R`000 R`000 R`000
Balances 1 April 2001 97,397 1,109,163 1,925,971 2,865,1
(267,350)
Share capital and
premium
Shares issued 200 2,040 2,240
Shares repurchased and (41,665) (44,870
cancelled (3,205)
Share issue and (2,178) (2,178)
cancellation costs
Treasury shares acquired (30,934) (33,444
by subsidiary (2,510)
Current operations
Loss attributable to (434,89
ordinary shareholders (434,893)
Transfer on realisation 18,813 (18,813) –
of investments
Revaluation
Current revaluation (300,184) (300,18
deficit
Balances 31 March 2002 91,882 1,036,426 1,644,600 2,051,8
(721,056)
Shares issued 662 4,638 5,300
Share issue costs (13) (13)
Treasury shares disposed 250 1,987 2,237
of by subsidiary
Current operations
Loss attributable to (63,431) (63,431
ordinary shareholders
Revaluation
Current revaluation (700,000) (700,00
deficit
92,794 1,043,038 944,600 1,295,9
– -(784,487) –
HOSKEN CONSOLIDATED
INVESTMENTS LIMITED
ABRIDGED CONSOLIDATED
CASHFLOW STATEMENT
Six months Year
ended ended
30 September 31 March
2002 2001 2002
R`000 R`000 R`000
(unaudited) (unaudited) (audited)
Cashflows from operating (35,201) 14,514
activities (395,875)
Cashflows from investing (9,526) (99,502) (21,624)
activities
Cashflows from financing 32,831 276,195 541,779
activities
(Decrease)/increase in cash (11,896) 191,207 124,280
and cash equivalents
Cash and cash equivalents
At beginning of period 99,292 (24,988) (24,988)
At end of period 87,396 166,219 99,292

COMMENTARY

ACCOUNTING POLICIES
The interim financial report to shareholders is prepared on the historical cost basis modified by the revaluation of investments and conforms with Statements of South African Generally Accepted Accounting Practice in accordance with AC127. The accounting policies of the group have been consistently applied.

RESTATEMENT OF COMPARATIVE FIGURES
Certain subsidiaries that were previously considered to be held for sale or subject to potential dilution were reclassified, at 31 March 2002, resulting in the full consolidation of their assets, liabilities and results of operations with those of the rest of the group. To aid comparability, the 30 September 2001 figures have been restated. This has no effect on earnings per share for the six month period ended 30 September 2001 as the group`s share of losses had previously been accounted for.

REVIEW OF INVESTMENTS
Investments are revalued on an annual basis at the end of the financial year. The investment in Vodacom Group (Pty) Ltd has been written down to the net amount to be realized. No goodwill has been attributed to the investment in Midi TV (Pty) Ltd (e-TV).

Telecommunications
Vodacom Group (Pty) Ltd
Subject to the fulfillment of certain suspensive conditions the group will dispose of its entire 5% interest in unlisted Vodacom Group (Pty) Ltd, on 31 December 2002, for an amount of R 1 500 040 000. Full details of the proposed disposal are contained in the circular to shareholders, dated 29 November 2002.

Media and Broadcasting Midi TV (Pty) Ltd (“e-TV”)
e-TV reported net losses for the period of R62,1million before inter-group finance costs of R26,7million. These results have been fully consolidated in the interim results with the group having the bear the full extent of the minority`s share of these losses as well.

17:00 to 23:00 audience share of the channel increased by an average of 27.7% year on year compared with the first six months of the prior year. Growth in revenue substantially exceeded this as a result of the boost from the soccer world cup.

With growth in audience to an average of close to 20%, the second half of this year should see growth in revenue and a reduction of the operating loss of the channel. The channel is currently expected to turn cash positive during the 2004 financial year. Progress has been made to resolve the regulatory difficulties in relation to ICASA and HCI remains confident of a positive outcome.

Gaming
The commencement of trading operations in the route business is only expected to start in the new financial year. The group does not anticipate any major start up problems once trading commences.

The group continues to hold its interest in On-line Gaming Systems Ltd (“OGAM”).
Full provision for the impairment of this investment was made in the annual results for the year ended 31 March 2002. This investment remains speculative and continues to lose money.

Financial services
Mettle Limited
Mettle reported headline earnings of R40,3 million for the six months ending 30th September 2002. The group has equity accounted its proportionate share of these earnings in the interim results.
Notwithstanding the significant negative adjustments to the value of Mettle`s treasury trading book, arising from the adoption of new accounting standards, annualized return on equity is a creditable 24.8%. In light of the adjustments made in the first half of the year your directors expect Mettle to deliver solid results by year end.
As a result of the continuing share buyback programme in Mettle, HCI`s interest in the equity of Mettle has increased from 39,1% to 41.2%.

OPERATIONS AND RESULTS FOR THE PERIOD
Business operations
The business operations of HCI include the making of investments in opportunities as identified by the board of directors and to add value to these investments over time. As such HCI has consciously established itself and pursued an investment policy in terms of which it has endeavoured to maintain significant equity and capital participation in entrepreneurially-run companies with significant growth potential. The investments are constantly reviewed and new ones sought to complement them. Your directors are confident that the group will deliver satisfactory growth in the future.

Interim results
The group reported a 41% decrease in operating losses for the period as compared to that the previous interim period. This was attributable mainly to the growth in revenue during the period and improved cost efficiencies at operating subsidiaries. However, increased finance costs incurred in the funding of e-TV and with the group having to bear the full extent of e-TV`s losses for the period have resulted in a headline loss per share of 14.42 cents for the six months ended 30 September 2002 compared with the headline loss per share of 7.25 cents for the six months ended 30 September 2001. The largest contributor to the headline loss per share continues to be e-TV. The group`s investment in associate companies contributed R 25.8m.

HCI SPECIFIC REPURCHASE OFFER
Subject to the approval of shareholders in general meeting at 10:00 on Monday 23 December 2002, HCI will implement a specific pro rata offer by HCI to HCI shareholders to repurchase 75% of their respective holdings in the share capital of HCI and any shares tendered in excess of 75% of their respective holdings as
the directors of HCI so resolve to accept. Full details of this proposed repurchase offer are contained in the circular to shareholders, dated 29 November 2002.

DISTRIBUTIONS TO SHAREHOLDERS
The directors have decided not to declare a dividend for the six months ended 30 September 2002.

For and behalf on the board of directors
MA Golding Chairman
JA Copelyn Chief Executive Officer