Interim Results

10 August 2012

Lonrho Plc ("Lonrho", the "Company" or the "Group")

Interim Results Announcement

Lonrho reports strong revenue growth and improved margins. Lonrho repositioned itself as a significant African focused agriculture and logistic company following the successful separation and London Stock Exchange listing of its Aviation division as FastJet Plc.

Lonrho announces its results for the half year to 30 June 2012 incorporating an update on trading in the second quarter of 2012 and material transactions to 10 August 2012.

Financial Highlights for the six months to 30 June 2012*:

·; Reported revenue in the 6 months to June 2012 rose 79.2% from £68.6 million to £122.9 million, a like-for-like increase of 29.1%.

·; Reported gross margin for the 6 months stands at 25.6%, having increased 3.6% on a like for like basis. Net operating profit from the core divisions (excluding aviation) for the 6 months to June 2012 was £4.7 million, an increase of £6.5 million over the 6 months to June 2011.

·; Net assets at 30 June 2012 stood at £209.8million. At 31 December 2011 the comparative figure was £155.7 million.

·; Net debt reduced in the first half by 23% to £78.7 million at 30 June 2012 compared with £102.7 million at 31 December 2011.

·; An exceptional gain of £33.9 million has been taken through the income statement due to the recognition in Lonrho's accounts of FastJet Plc as a jointly controlled entity. As a result profit before tax for the six month period was £23.7 million.

Financial and Operating Highlights for the quarter to 30 June 2012*:

·; Revenue in the second quarter increased 82.9% to £64.0 million (2011: £35.0 million). Like-for-like revenue increased by 22.9%.

·; Gross margins across the Group have risen by 2.0% on an adjusted like-for-like basis in the quarter and growth has been experienced across all of the Company's operating divisions.

*throughout this announcement prior year comparisons refer to the six months to June 2011. In the interim financial statements the comparative period is the six months to 31 March 2011

**includes acquisitions (pre-acquisition comparables based on un-audited management accounts), excludes start-up businesses trading for less than 12 months and is adjusted to constant currency

During the quarter, having completed its investment objectives for its aviation division, Lonrho separated its aviation division from Lonrho Plc into a stand alone, listed company, Rubicon Plc, subsequently renamed FastJet Plc. The transaction was for a consideration of £55.1 million paid in FastJet Plc shares. FastJet Plc shares are traded on the London AIM market. The transaction gave Lonrho an initial 73.7% stake in the enlarged share capital of FastJet.

Sir Stelios Haji-Ioannou, the founder and major shareholder of easyJet, the world's most successful low cost airline, and his easyGroup have become a shareholder in FastJet and, following significant due diligence of the market opportunity, Sir Stelios has introduced a new world class management team to the company to build FastJet into the low cost airline for Africa.

·; Since the completion of the transaction, FastJet has raised an additional £5.5 million of new equity which will be used for the roll out of the Fastjet model throughout Africa. Consequently Lonrho's holding in FastJet became 67.8%.

·; Rubicon has also announced it has entered into an agreement with Airbus for FastJet to use the A319 model as its aircraft choice. The first aircraft is due to be delivered by October with 5 due to become operational within 6 months of launch.

·; The costs related to the separation, listing and restructuring of Fly540 to become FastJet Plc had an unavoidable impact of slowing down the development of Fly540 during the transition period and the introduction of the new management team and shareholders. This has resulted in a net operating loss of £8.8million in the Aviation division for Lonrho in the period.

The first half of the financial year has seen the Group continue to see real growth in revenue and profitability of the Group's core businesses. Key highlights for the quarter include:

·; Oceanfresh has begun delivery of hake loins to Costco in the USA under the 'Kirkland Signature' brand. The start of delivery plus good momentum in domestic markets has led to the business seeing revenue in Q2 jump 63% on the prior year.

·; Lonrho's hotel division has seen the opening of the Lansmore - Masa Square, in Gaborone, Botswana. The hotel has 153 rooms which will be fully operational by September, with the hotel expected to develop to be the leading 5 star hotel in Botswana.

·; Lonrho's services provider, AFEX delivered services to Fluor including logistics, warehousing and vehicle supply during the quarter. This contract, along with continued strong performance of the fixed camps, and services to customers such as Tullow, has helped to significantly increase revenues in the period.

·; Fresh Direct's Strawberry project for Pick'n'Pay has been more successful than budgeted with in excess of 6,000kgs being produced weekly. This has meant that the business has seen revenues in the quarter top £2.0 million and the program has been extended to a full annual cycle.

·; Kwikbuild has now completed delivery of 31% of schools on the Eastern Cape project. The remaining schools will be delivered in the coming quarter with new projects now in the sales pipeline.

Lonrho's nominated Directors on the LonZim board stepped down in the first quarter of 2012. LonZim has subsequently renamed itself Cambria Africa Plc., with Lonrho remaining as Cambria's largest shareholder holding a 22.9% stake as at 30 June 2012. As a result of these changes Lonrho no longer accounts for Cambria as an associate company but instead reports it's holding as an investment on the balance sheet. This resulted in an income statement write-down of £3.3 million in the period.

Following a very successful six months, and the separation of the aviation division, the Company is in a solid position to continue to deliver on its core businesses. The global economic environment remains challenging and it is difficult to predict the impact on some of the Group's export markets. However, the Group has achieved a number of key milestones in the first half of the year which the Board believes that will help to deliver continued growth in the second half, traditionally a stronger sales period for the Group. The Board is confident that there is now a strong platform in place across the Group's four core operating divisions from which it can continue to successfully drive the profitability and cash generation of each. It remains the Board's intention to introduce a dividend policy that will be made public during 2012 for introduction during 2013.

David Lenigas, Lonrho's Executive Chairman, commented:

"Lonrho continues to deliver strong growth in revenues and margins in its core business divisions and is continuing to see the growth convert into operating profitability as planned. The successful completion of Lonrho's investment phase in the aviation division, and its subsequent separation to become FastJet plc, demonstrates Lonrho's ability to build value creating businesses with strong potential. Sir Stelios and his new management team will allow the airline to develop rapidly and grow to meet the clear market opportunities for a reliable international standard low cost carrier for Africa.

Lonrho is now able to focus on its core businesses in agriculture and logistics. These businesses generated like for like revenue growth in the 6 months of 26.4% and net operating profit of £4.7 million. Our operational businesses are directly aligned with the economic drivers of emerging Africa therefore Lonrho is well placed to continue to deliver growth."

Lonrho will be hosting a conference call for analysts to discuss the Group's half year trading update with David Lenigas, Geoffrey White and David Armstrong on Friday 10th August 2012 at 9:30am. For details on the call please contact FTI Consulting.

ENDS

Chief Executive's Statement

During the six month period ended 30 June 2012 Lonrho completed its five year programme of developing operational hubs in East, West and South-West Africa for Lonrho Aviation and subsequently completed the strategic separation of its aviation division for a consideration of US$85.7m (£55.1m) to Rubicon Diversified Investments Plc ("Rubicon"), later renamed FastJet Plc ("FastJet") on 6 August 2012. With the completion of this transaction, Lonrho will not invest any further funds into FastJet which is self funding and which has successfully raised new funding from the market since listing.

In line with our stated strategy, Lonrho is now able to focus on its remaining four core operating divisions, all of which saw strong growth and gross margin improvements during the period, resulting in a net operating profit* of £4.7m being achieved across the four divisions.

Lonrho's core operational businesses are solely focused on the opportunities that are available across Africa. Today, Africa contains seven out of the top ten fastest growing economies in the world with a number of countries consistently reporting double digit growth in GDP. Africa contains 60% of the world's arable land and 15% of the world's proven oil and gas reserves, with further reported finds increasing reserves monthly. The global economy is becoming increasingly dependent on African agricultural output to meet consumer demand and African oil & gas production to meet future energy requirements. As a result of the foreign direct investment that the development of these industries has attracted to Africa and the economic development that they stimulate, there is a rapid emergence of the middle-class consumer. This active socio-economic group within African society has triggered a subsequent sharp increase in consumer demand. 

Africa's population of more than one billion has become a significant consumer market, with formal domestic consumption forecast to reach US$ 1.6 trillion by 2020 (with the informal sector believed to be as much again). Additional factors underpinning the Continent's growth are a mineral products boom, infrastructure development and an improvement in economic governance.

Lonrho is increasingly seen as a 'proxy' for the African emerging market. Over the past four years, it has aligned its operations with the drivers of African economic development, namely, Agriculture, Oil & Gas, Minerals and the growing domestic population and the rapidly expanding consumer marketplace they have created. The Company's one hundred and three year legacy of building successful businesses across the Continent provides Lonrho with an unparalleled brand awareness and depth of support that gives it a significant commercial advantage in Africa.

Lonrho is unique in that it only operates in Africa, where it understands the markets in which it is active and has the reputation and respect necessary to deliver in the African market, whilst being listed on the main market of the London Stock Exchange and operating to international standards.

 After the transfer of the aviation division to FastJet, Lonrho's core operational businesses focus on:

% revenue ** YOY % growth***

Agribusiness: Agriculture and Agri-logistics 71% 130%

Infrastructure: Oil & gas logistics terminals and Prefabricated buildings 10% 47%

Hotels: International and budget hotels 5% 21%

Support Services: IT and Integrated support services 14% 79%

* As defined in Note 3b

** Excluding aviation

**\* Throughout these interim accounts the comparative period used is the 6 months ended 31 March 2011 due to the change in the Group's year end in 2011

Financial Highlights for the 6 months to 30 June 2012

·; Revenue of £122.9m, an increase of 101.1% from the 6 months to 31 March 2011

·; Gross margins of 25.6%, an increase of 1.5% from 2011

·; Net assets at 30 June 2012 increased by 35% to £209.8m compared with £155.7m at 31 December 2011

·; Net indebtedness decreased by 23% to £78.7m as at 30 June 2012 compared with £102.7m as at 31 December 2011

·; Net operating profit from the core operating divisions of £4.7m compared with £0.7m in the 6 months to 31 March 2011

·; Profit before tax of £23.7m including a net gain of £33.9m from the transfer of the aviation division to joint control

Lonrho's aviation division separates to become FastJet

The most significant change to the Group during the period was the separation of Lonrho's aviation division (the Fly540 regional airline) into Rubicon, whose shares trade on AIM, for a consideration of £55.1m (US$85.7m) satisfied by the issue of new Rubicon ordinary shares to Lonrho.

Over the past five years, Lonrho has developed its regional African scheduled aviation division, Fly540, into a significant airline carrying 50,000 passengers a month and serving the East, West and South-West of Africa from hubs in Kenya, Ghana and Angola respectively. Fly540 was budgeted to achieve revenues of £70m in 2012, and operates the foremost private sector route network in Africa.

Having completed the crucial establishment phase of the airline's development, the Lonrho Board believed that it was essential, for the further development of the airline, to bring world class aviation expertise into the business and establish the aviation division in its own separate corporate structure. As a consequence, on 29 June 2012, Rubicon completed its acquisition of the aviation division, with the enlarged share capital of Rubicon beginning trading on AIM on 2 July 2012 and Rubicon subsequently being renamed FastJet on 6 August 2012.

FastJet has subsequently raised £5.5m through an equity fundraising in order to fund its growth and the deployment of Airbus' A319's, which will be the standard aircraft for FastJet. As stated at the time of completion of the transaction, Lonrho has now completed its investment in the aviation sector and thus did not take part in the FastJet fundraising. Lonrho's current holding in FastJet is 67.4% and it is no longer involved in the day-to-day management of the business, as FastJet implements its own self-funded strategy for its development.

Sir Stelios Haji-Ioannou, the founder and major shareholder of easyJet, the world's most successful low cost airline, and his easyGroup have became a shareholder in FastJet and, following significant due diligence of the market opportunity, Sir Stelios has introduced a new world class management team to FastJet to build it into the low cost airline for Africa.

The Lonrho Board, Sir Stelios and easyGroup believe that the opportunity for a regional low cost carrier in the growing African marketplace is significant, and that the unique combination of

- Lonrho's African expertise;

- the existing aviation operations established by Lonrho across the Continent;

- easyGroup and Sir Stelios' aviation experience and

- the new management team introduced by Sir Stelios to run the business moving forward

collectively provide a unique opportunity to rapidly build a significant low cost airline connecting Africa.

FastJet is consolidated as a jointly controlled entity in Lonrho's Group accounts. This has resulted in a one-off net gain during the period in relation to the transfer of the aviation division to joint control of £33.9m. The business impact relating to the separation, listing and restructuring of Fly540 to become FastJet, the inevitable slow down of development during the transition and the introduction of the new management team and shareholders in FastJet, when combined with the operations, have resulted in a net operating loss of £8.8m in the aviation division for Lonrho in the period. For the purposes of this reporting period, the results for the six month period of the Transportation division are separately disclosed from those of the remaining four core operating divisions.

Operational Review

Lonrho is now focused on its four core divisions: Agribusiness, Infrastructure, Hotels and Support Services, all of which reported strong growth during the period.

Agribusiness

Revenues of £72.7 million, up 130%, Gross Margin up 0.7% (compared with 6 months to 31 March 2011)

Agribusiness is now the largest of Lonrho's core divisions, accounting for 71% of revenues, and has seen significant growth in each of its operations: Fresh Produce (comprising Rollex, Fresh Direct and Lonrho Logistics); Fish (comprising Oceanfresh and Fish-on-Line) and Agricultural Equipment.

Lonrho believes that Africa, which holds 60% of the world's arable land, is an essential component to meeting global expanding food demand. Agriculture is a major contributor to Africa's economies and, over the past four years, Lonrho has established a unique vertically integrated agri-logistics delivery cold chain that can reliably deliver fresh produce from Africa to market providing continuity of quality and traceability. The Company believes that this vertically integrated cold chain is of great appeal to the world's food retailers.

The completion of the Group's vertically integrated cold chain facilities has now resulted in Lonrho being able to deliver fresh produce from across Southern Africa to a global market. This business is building significant momentum with a blue chip client base and Lonrho is seeing growth in demand from African, European, Scandinavian, North American, and, increasingly, Far Eastern supermarket chains.

The supply contract to Pick n' Pay for fresh strawberries has had the volumes expanded and the term lengthened following the success of the initial programme. It will now continue to operate on a full time annual basis as opposed to the 9 month season originally envisaged.

Unusual inclement weather has had a limited short-term effect on a proportion of the Group's young peach plantations, which are now amongst the largest on the Continent. At this young stage of their development, the fruit on the peach trees can be more susceptible to severe frost. As a result of a highly unusual cold spell, the export quality peach forecast for the year has conservatively been reduced by 25% from initial expectations for this year only. Lonrho remains confident that the peach tree programme is on track and that this will have no impact on their long-term prospects. The existing plantations will mature into the largest in Africa over the next three years, producing fruit as planned specifically to meet the demand from Europe for the six weeks prior to Christmas each year.

In the Fish business, there is continued strong demand for Namibian and South Africa wild caught, sustainably sourced hake, which is a white fish that is similar to cod. The profitable contracts supplying to Costco and Walmart in the USA continue, and new listings for the third quarter of 2012 include Sam's Club, Sainsburys, and a range of initial orders into the Far East.

The crustacean market continues to see strong global demand and, during the period, Lonrho has taken over the largest cold stores and processing facility in the fishing port in Maputo, Mozambique. This has positioned Lonrho as the leading exporter of lobsters, langoustines and prawns from Mozambique to the global market.

Significant wins for the Fish business during the first half of 2012 include the upgrading of an Oceanfresh line being supplied to Costco in the USA into a 'Kirkland Signature' brand line. As a 'Kirkland Signature' brand line the product will be distributed in every Costco store worldwide and comes with a three year commitment from Costco to support the product. Rollout of this line began in June of this year and the Group hopes to add further 'Kirkland Signature' brand lines to the range moving forward.

Within the Agricultural Equipment business, sales remain strong and Lonrho increased John Deere's market share in all the countries where the Group operates. On 17 January 2012, Lonrho completed the purchase of LonAgro Tanzania for US$1.4 million (£0.9 million) which has the exclusive distributorship for Tanzania. A new distributor was also launched in South Sudan. These two newest distributorships are seeing positive initial business, and the established distributorships in Mozambique and Angola continue to build customer allegiance and sales by ensuring the highest levels of customer support, spare parts and maintenance, giving customers confidence to buy and operate John Deere equipment.

Infrastructure

Revenues of £10.9 million, up 47%, Gross Margin up 3.9% (compared with 6 months to 31 March 2011)

The oil services business delivers one of the strongest margins within the Group and typically revenues are from large 'blue chip' oil supply and service companies operating globally.

Luba Freeport has seen a very strong first half of 2012. This has been driven by a combination of delayed drilling programmes that were scheduled for 2011, but which only started in 2012, and new exploration and production that has commenced in 2012. Recently Ophir, a Luba client, announced a significant new gas find in Equatorial Guinean waters. The Tonel-1 well has exceeded pre-drilling expectations and the find represents a significant step towards the commercial threshold volumes required for a second Liquid Natural Gas train for Equatorial Guinea.

Lonrho is well advanced in concluding the structure with the Ghanaian Government and private sector finance for a major oil logistics terminal to be located in Ghana. The initial designs for this project, in Atuabo, Western Ghana, include a 2,000 acre development site, operating as a specific free trade zone for the oil & gas industry. The site will also include a rig and ship repair facility for serving the wider West African market, where currently rigs need to be towed to either Las Palmas, Canary Islands or Cape Town, South Africa for maintenance.

Further discussions with certain Governments are underway regarding opportunities on the East coast of Africa to support the rapidly expanding oil & gas sectors.

The e-Kwikbuild manufacturing plant in Cape Town has now been fully commissioned and a new CEO for the business has been recruited to enhance management capabilities and further grow the business. The demand for prefabricated buildings continues to expand as Africa's economies grow. Prefabricated buildings remain a quick and simple solution for natural resource companies, offices, accommodation, clinics and other uses, where days after arrival on a site, no matter how remote, the buildings are installed and operational.

In the first quarter of 2012, e-Kwikbuild won its largest ever order for 418 school classrooms for the Eastern Cape in South Africa, which will generate revenue of £10.2 million at healthy margins.

An increasing focus for e-Kwikbuild is on attracting new export opportunities from the private sector from outside South Africa. This will reduce its reliance on South African Government tenders for business, and the new sales drive for private sector orders has seen initial deliveries to Mozambique, the Democratic Republic of the Congo and Tanzania as export destinations for e-Kwikbuild buildings.

Hotels

Revenues of £5.1 million up 21%, Gross Margin up 0.4% (compared with 6 months to 31 March 2011)

The Hotels division continues to progress, winning a new hotel management contract in Kinshasa, the capital of the Democratic Republic of the Congo, and a new lease contract in Gaborone, the capital of Botswana, further expanding the Lonrho Hotels' network across the Continent.

The Grand Hotel in Kinshasa is the foremost hotel in the Congolese capital and the Government is funding a total refurbishment programme for the property to bring it back to its original status as one of the leading hotels in Africa. The property dominates the Kinshasa hotel market with 450 rooms. Lonrho Hotels has taken over the management of the property with a mandate to bring it back up to international standards.

The new Lonrho property in Gaborone is in the recently developed Masa Square development, at the heart of the Central Business District. Lonrho has opened the property as a 'Lansmore Hotel by Lonrho', Lonrho Hotels' four / five-star brand. It is expected that the property will become the hotel of choice for those visiting Gaborone.

The first easyHotel by Lonrho is expected to open in the Central Business District of Johannesburg by the end of the year and a strong pipeline of potential easyHotel projects is in place.

Support Services

Revenues of £14.0 million up 79%, Gross Margin up 15.8% (compared with 6 months to 31 March 2011)

The Support Services division is providing 'one-stop' camp and logistics solutions through AFEX to a growing number of resource companies and Government agencies, which are attracted by Lonrho's ability to provide a comprehensive service under one ownership structure.

AFEX continues to deliver strongly, with recent new contracts awarded by Tullow Oil, Fluor and Africom. The camp operations in Juba, South Sudan, are continuing to be popular with high occupancy and yields.

Lonrho IT also continued to make strong progress in the period with new contract wins from blue chip clients, including reporting rapid growth in its newer markets such as Zambia and Zimbabwe.

Corporate

During the period Lonrho announced the appointment of Jefferies Hoare Govett ("JHG") as broker to the Company. JHG brings a wider exposure for the Company to institutional clients, and specifically brings strong access to the US institutional market. Lonrho believes there is growing interest in the USA in emerging Africa, where there will be resonance with Lonrho's supply of African produce into the USA to Walmart, Costco and other retailers, as well as Lonrho's distribution of John Deere agricultural equipment in Africa.

On 3 January 2012, Lonrho completed an equity raise of £26.9 million. The Company received valid acceptances in respect of 22,534,994 new ordinary shares from qualifying shareholders, representing approximately 20.8 per cent of the new ordinary shares offered under the Open Offer. A total of 269,498,795 shares were issued at an issue price of 10 pence per new ordinary share.

In February 2012 the four Lonrho nominated Executive Directors stepped down from the Board of LonZim Plc. Jean Ellis also stepped down as a Non-Executive Director of LonZim. The decision was taken based on the Lonrho Executive Directors' desire to focus on Lonrho's core businesses, whilst allowing LonZim to grow under its own dedicated management team. LonZim was subsequently renamed Cambria Africa Plc. Lonrho remains as Cambria's largest shareholder with a 22.92% stake as at 30 June 2012. As a result of these changes Lonrho no longer accounts for Cambria as an associate company but instead reports its holding as an investment on the balance sheet.

Financial Performance

Lonrho's four core operating divisions (Agribusiness, Infrastructure, Hotels and Support Services) have delivered solid growth in performance in the first half of the year, recording improvements in turnover and gross margin. Net operating profit across these four divisions rose to £4.7m compared to £0.7m for the 6 months to 31 March 2011.

The separation of Lonrho's aviation division into FastJet was completed on 29 June 2012. Hence these interim accounts also incorporate the trading of the aviation division from 1 January to 29 June 2012 (disclosed as the Transportation division). The Transportation division made a net operating loss of £8.8m in the first half of 2012 reflecting the ongoing start-up costs in Angola and Ghana as well as a slow down in the deployment of new aircraft and the restructuring prior to the transfer to FastJet.

With effect from 29 June 2012, the Group will account for FastJet as a jointly controlled entity, reflecting the management structure of the business whereby neither Lonrho nor easyGroup have Board control over FastJet but jointly can appoint up to four Directors. This means that the Group will report its share of the results of FastJet in the income statement from 29 June 2012 as share of jointly controlled entity and on the Consolidated Statement of Financial Position as a single line item reflecting the fair value of the Group's investment. As part of the transaction, FastJet issued options to its Directors and easyGroup which result in the calculation of a share-based payment charge in the accounts of FastJet. Lonrho's share of this charge is £1.3m, which is reported under share of results of jointly controlled entities in the income statement.

The change to the accounting treatment of FastJet to become a jointly controlled entity also creates a one-off non-cash gain of £33.9m (net of transaction costs), representing the difference between the value of the consideration payable to Lonrho pursuant to the transaction of US$ 85.7 m (£55.1m) and the net asset value of the aviation division at the date of transfer. This gain has been disclosed separately on the consolidated statement of financial position and is discussed further in Note 8 to these interim accounts.

Divisional Performance

The results of the Group's operating divisions are set out in Note 6 - Segmental reporting. In order to understand the impact of the aviation division on the results for the interim period the table below splits out a pro-forma income statement for the core of the Lonrho Group.

In the second half of 2012 and in future financial years the Group's consolidated income statement will reflect just the financial performance of the core divisions in line with the pro-forma above.

Net Indebtedness

The Group's net indebtedness has reduced to £78.7m as at 30 June 2012 from £102.7m at 31 December 2011. In part this is due to the transfer of debt to FastJet (representing finance leases on aircraft and working capital facilities), together with proceeds from the January equity raise. The Group has continued to invest in working capital to support growth, especially in the Agribusiness division where Oceanfresh has geared up for the rollout of the 'Kirkland Signature' brand line with CostCo, which began in June.

Associates/Investments

As mentioned above, the Group now accounts for its stake in Cambria Africa Plc as an investment with effect from 24 February 2012. Consequently the investment has been marked-to-market as at 30 June 2012, which, together with Lonrho's share of losses before the change from associate to investment, results in a write-down of £3.3m.

Outlook

Following a very successful six months, and the separation of the aviation division, the Company is in a solid position to continue to deliver on its core businesses. The global economic environment remains challenging and it is difficult to predict the impact on some of the Group's export markets. However, the Group has achieved a number of key milestones in the first half of the year which the Board believes will help to deliver continued growth in the second half, traditionally a stronger sales period for the Group. The Board is confident that there is now a strong platform in place across the Group's four core operating divisions from which it can continue to successfully drive the profitability and cash generation of each. It remains the Board's intention to introduce a dividend policy that will be made public during 2012 for introduction during 2013.

Geoffrey White

Director and Chief Executive Officer

10 August 2012

Condensed consolidated interim income statement

Condensed consolidated interim statement of

comprehensive income

Condensed consolidated statement of changes in equity

Condensed consolidated interim statement of

financial position

Condensed consolidated interim cash flow statement

Included in cash and cash equivalents of £12.5m, as prescribed in the statement of financial position, is £1.7m subject to restrictions of use, which means it is not freely available.

Notes:

Note of preparation

1. Reporting Entity

Lonrho Plc (the "Company") is a company incorporated and domiciled in the United Kingdom.

The financial statements included in this half yearly report were authorised for issue by the Directors on 10th August 2012.

2. Basis of preparation

Statement of compliance

The annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half yearly report has been prepared in accordance with IAS34 and the recognition and measurement requirements of IFRSs as adopted by the EU.

The financial information is unaudited, and has not been reviewed by the Company's auditors, and does not constitute the Company's statutory accounts within the meaning of Section 434 of the Companies Act 2006.

The comparative figures for the fifteen month period ended 31 December 2011 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. Due to the change in the Company's year end to 31 December comparatives for the six months to 30 June 2011 are not available. The Directors have accordingly included comparative information for the six months ended 31 March 2011 and the 15 months ended 31 December 2011. The Directors do not consider that there are material seasonal variances that impact the comparison of the two six month periods presented.

Going Concern

Although the current ongoing economic conditions create uncertainty, the Group's forecasts and projections, taking account of reasonably possible changes in trading performance, together with mitigation actions that are within management's control, show that the Group is expected to be able to operate within the level and covenant conditions of its debt facilities. As such, these interim financial statements are prepared on the going concern basis. There have been no significant changes in estimates in the current period.

3. Significant accounting policies

The accounting policies applied by the Group in these condensed consolidated interim financial statements are substantially the same as those applied by the Group in its consolidated financial statements for the six months to 30 June 2012. Whilst there have been changes to standards which become applicable for the period ended 30 June 2012, none have been assessed as having a significant impact on the Group.

(a) Basis of consolidation

The consolidated financial statements incorporate the financial statements of Lonrho Plc, its subsidiaries, associates and jointly controlled entities.

Subsidiaries

Subsidiaries are entities controlled by Lonrho Plc. Control is achieved where Lonrho Plc (the Company) has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

The portion of a non-controlling interest is stated as the non-controlling interest's proportion of the fair values of the assets and liabilities recognised. Subsequently, losses applicable to the non-controlling interest in excess of the non-controlling interest in the subsidiary's equity are allocated against the interests of the Group except to the extent that the non-controlling interest has a binding obligation and is able to make an additional investment to cover the losses. Future profits attributable to the non-controlling interest are not recognised until the unrecognised losses have been extinguished.

The results of entities acquired or disposed of during the period are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Negative goodwill recognised on acquisition is recognised in the income statement at the effective date of acquisition.

Investments in associates and jointly controlled entities

Associates are those entities in which the Group has significant influence but not control over the financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity. Jointly controlled entities are those entities over whose activities the Group has joint control together with other parties, established by contractual agreement and requiring joint consent for strategic financial and operating decisions. Investments in associates and jointly controlled entities are accounted for using the equity method. The consolidated financial statements include the Group's share of the profit or loss and other comprehensive income of the equity accounted investees, after adjustments to align the accounting policies with those of the Group, from the date that significant influence or joint control commences until the date that significant influence or joint control ceases.

(b) Non-GAAP measures

Following a review of key performance indicators used by the directors and consultations with key stakeholders, the Directors have revised the key non-GAAP profit measure used to monitor performance of the business. From 1st January 2012 the key non-GAAP profit measure used by the board is Net operating profit which is defined as Operating profit before amortisation of acquired intangible assets and share based payment charges less net finance charges. The Directors believe that this measure best reflects the trading performance of the group.

4. Earnings per share

Basic earnings per share are calculated based on the weighted average number of ordinary shares outstanding during the period. Diluted loss per share is based upon the weighted average number of shares in issue throughout the year, adjusted for the dilutive effect of potential ordinary shares. The potential dilutive ordinary shares in issue are employee share options and the equity conversion element of the convertible bond.

5. Capital management

Given the current global financial crisis, the Directors are carefully monitoring cash resources within the Group and have instigated a number of initiatives to ensure funding will be available for planned projects. In January 2012 Lonrho announced a placing of new ordinary shares in the capital of the Company at 10 pence per share to raise gross proceeds of £26.9m.

6. Segmental reporting

The Chief Operating Decision Maker is deemed to be the Executive Committee, which monitors the results of the business segments to assess performance and make decisions about the allocation of revenues. Segment performance is evaluated on both revenue and operating profit/ (loss).

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly interest corporate assets and expenses.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period.

There is no inter-segment revenue.

Business Segments

The Group has four ongoing reportable segments which are organised around the basis of products and services which they provide:

·; Agribusiness

·; Infrastructure

·; Support services

·; Hotels

The Group has not aggregated any operating segment in arriving at this analysis.

From the 29th June 2012, Transportation is no longer considered a reportable segment as it was transferred to a jointly controlled entity and is consolidated as such using the equity method. Accordingly, for the purposes of clarity, segmental information is provided including sub-totals of the four ongoing reportable segments as well as the detail required under IFRS8, Segmental Reporting.

6.Segmental reporting (continued)