GROUP PRIMARY SEGMENT REPORTfor the six months ended 30 September 2012

BUSINESS SEGMENT

Cotton FMCG Seed Other Group Total Discontinued Continuingbusiness business business eliminations operations operations

US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'00030 September 2011

Continuing operationsRevenue 80,060 9,838 30,388 2,206 (7,471) 115,021 - 115,021

Profit/(loss) from operations 15,176 (654) 1,301 (3,169) (4,063) 8,591 - 8,591

Investment income 1,424 11 345 4 (447) 1,337 - 1,337Other gains/(losses) 5 - (64) (213) - (272) - (272)Finance costs (10,668) (1,122) (1,427) (972) 447 (13,742) - (13,742)Profit/(loss) before taxation 5,937 (1,765) 155 (4,350) (4,063) (4,086) - (4,086)

Other informationSegment assets 198,286 31,335 146,805 180,433 (206,596) 350,263 (2,289) 347,974Segment liabilities (147,659) (23,033) (82,298) (27,516) 46,555 (233,951) 637 (233,314)Segment net assets 50,627 8,302 64,507 152,917 (160,041) 116,312 (1,652) 114,660

Capital expenditure 7,163 243 6,004 5 - 13,415 - 13,415

Depreciation 1,469 859 1,149 239 - 3,716 - 3,716

ABRIDGED GROUP INCOME STATEMENTSfor the six months ended 30 September 2012

30 Sept 30 Sept 31 Mar2012 2011 2012

US$'000 US$'000 US$'000

Revenue 53,977 115,021 293,292

(Loss)/profit from operations (18,119) 8,591 38,537

Investment income 215 1,337 3,147Other gains/(losses) (966) (272) 752Finance costs (11,996) (13,742) (24,363)

(Loss)/profit before taxation (30,866) (4,086) 18,073

Income tax expense 3,521 (961) (2,716)

(Loss)/profit after tax from continuing operations (27,345) (5,047) 15,357

Loss from discontinuing operations - - (509)

(Loss)/profit for the year (27,345) (5,047) 14,848

Profit attributable to:Equity holders of the parent (22,802) (4,105) 6,156Non-controlling Interest (4,543) (942) 8,692

(27,345) (5,047) 14,848

Weighted number of shares in issue 534,126 532,638 532,673

Basic (loss)/earnings per share (US cents) (4.27) (0.77) 1.16Diluted (loss)/earnings per share (US cents) (4.10) (0.74) 1.11

ABRIDGED GROUP STATEMENTS OF FINANCIAL POSITIONas at 30 September 2012

30 Sept 30 Sept 31 Mar2012 2011 2012

US$'000 US$'000 US$'000ASSETS

Non-current assetsProperty, plant and equipment 104,334 111,166 105,017Investment property 332 864 332Other intangibles 21 8 25Other financial assets 347 39 268Total non-current assets 105,034 112,077 105,642

Current assetsAssets classified as held for sale 1,513 2,398 5,318Other current assets 225,954 235,788 201,582

Total current assets 227,467 238,186 206,900

Total assets 332,501 350,263 312,542

EQUITY AND LIABILITIES

Capital and reservesShareholders' funds 58,715 83,808 83,551Non-controlling interest 34,561 32,504 41,243Total equity 93,276 116,312 124,794

Non-current liabilitiesBorrowings 12,402 14,659 11,659Deferred tax liabilities 14,643 19,056 16,313Finance lease liabilities - - 66Total non-current liabilities 27,045 33,715 28,038

Current liabilitiesLiabilities classified as held for sale 472 637 2,909Other current liabilities 211,708 199,599 156,801

212,180 200,236 159,710

Total equity and liabilities 332,501 350,263 312,542

ABRIDGED GROUP STATEMENT OF CASH FLOWSfor the six months ended 30 September 2012

30 Sept 30 Sept 31 Mar2012 2011 2012

US$'000 US$'000 US$'000 Cash flow from operating activities Operating cash flow before reinvesting in working capital (15,580) 21,375 48,535 Decrease in working capital (24,853) (85,187) (47,001) Net finance costs (12,325) (10,199) (22,942) Taxation paid (3,637) (2,395) (5,990) Net cash utilised in operations (56,395) (76,406) (27,398)

Net cash outflow from investing activities (3,862) (9,006) (12,156) Net cash inflow from financing activities 32,695 57,718 15,120

Increase/ (decrease) in cash and cash equivalents (27,562) (27,694) (24,434)

GROUP STATEMENTS OF CHANGES IN EQUITYfor the six months ended 30 September 2012

Attributable to equity holders of the parent Non- TotalShare Capital Revenue Total controlling Equity

Capital Reserves Reserves InterestUS$'000 US$'000 US$'000 US$'000 US$'000 US$'000

Balance at 31 March 2010. - 52,536 29,919 82,455 32,117 114,572

Changes in equity for 2011 Share based payments transactions 2 810 - 812 307 1,119 Redenomination of share capital 5,311 (7,172) - (1,861) (95) (1,956) Acquisition of interest(s) in foreign subsidiary/asociate/joint venture - 745 576 1,321 (1,129) 192 Dividend paid and recieved within the group - - 1,352 1,352 - 1,352 Dividend paid - - - - (1,321) (1,321) Total comprehensive income for the year (net of tax) - (13,870) 10,386 (3,484) 6,078 2,594 Balance at 31 March 2011 5,313 33,049 42,233 80,595 35,957 116,552

Changes in equity for 2012 Share based payments transactions 28 145 735 908 446 1,354 Acquisition of interest(s) in foreign subsidiary/asociate/joint venture - - 16 16 16 32 Disposal of interest(s) in foreign subsidiary/asociate/joint venture - (1) - (1) (31) (32) Impairment of investment in subsidiary - (3,000) - (3,000) - (3,000) Dividend paid and recieved within the group - - 2,290 2,290 - 2,290 Dividend paid - - - - (2,347) (2,347) Total comprehensive income for the year (net of tax) - (3,678) 6,421 2,743 7,202 9,945 Balance at 31 March 2012 5,341 26,515 51,695 83,551 41,243 124,794

Changes in equity for 2013 Share based payments transactions - 52 101 153 - 153 Disposal of interest(s) in foreign subsidiary/asociate/joint venture - (2,308) - (2,308) - (2,308) Dividend paid - - - - (1,586) (1,586) Total comprehensive income for the year (net of tax) - 121 (22,802) (22,681) (5,096) (27,777) Balance at 30 September 2012 5,341 24,380 28,994 58,715 34,561 93,276

Notes to the financial statements

1. General InformationAico Africa Limited (the Group) is a diversified agro-industrial conglomerate involved in ginningand selling of cotton products through its 100% owned subsidiary The Cotton Company ofZimbabwe, developing and marketing of hybrid maize and other broad acre crop seeds as wellas cotton planting seed through its subsidiary Seed Co Limited. The Group is also a majorplayer in the local fast moving consumer goods (FMCG) market in which the major productsinclude edible oils and fats, canned vegetables, soaps, cotton and soya meal.

2. PresentationThe financial statements are presented in United States dollars, which is the Group's functionalcurrency rounded off to the nearest thousand.

3. Accounting policiesThe principal accounting policies of the Group have been applied consistently in all material respects with those of the previous period.

4. Statement of responsibilityThe report of the financial information is the responsibility of the Directors of the Group.

5. Seasonality of operationsThe Group's Cotton and Seed segments are subject to seasonal flactuations. Profitability andcashflows of the business have a strong weghting towards the second half which reflect thekey selling period.

6. Statement of complianceThe unaudited financial statements have been prepared in conformity with International FinancialReporting Standards/ International Accounting Standards (IFRS/IAS).

7. Discontinued operations

7.1 The local subsidiary Scottco (Private) Limited disclosed in the annual report for the year ended31 March 2012 as a discontinued operation was disposed of by the Group during the half yearended 30 September 2012.

7.2 Results of discontinued operationsIn compliance with the requirements of International Financial Reporting Standards 5 (IFRS5), the assets and liabilities of the discontinuing operations amounting to $1.4 million and $0.5million have been included in the Group Statement of Financial Position as 'assets classifiedas held for sale', and as 'liabilities classified as held for sale' respectively. During the half year,discontinued operations did not operate and therefore no profit or loss was recorded.

The analysis of assets, liabilities and performance of the discontinued operations is shownbelow.

BUSINESS SEGMENT

Cotton FMCG Seed Other Group Total Discontinued Continuingbusiness business business eliminations operations operations

US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000

31 March 2012

Continuing operationsRevenue 170,904 19,238 117,708 4,463 (14,558) 297,755 (4,463) 293,292

Profit/(loss) from operations 19,212 (1,526) 27,029 (7,998) 1,343 38,060 477 38,537

Investment income 4,096 57 891 758 (2,651) 3,151 (4) 3,147Other (losses)/gains 1,267 (2) (175) (344) - 746 6 752Finance costs (18,519) (2,316) (4,289) (2,522) 2,651 (24,995) 632 (24,363)Profit/(loss) before taxation 6,056 (3,787) 23,456 (10,106) 1,343 16,962 1,111 18,073

Other informationSegment assets 156,537 24,139 156,940 170,963 (196,037) 312,542 (5,190) 307,352Segment liabilities (104,865) (18,527) (75,022) (36,909) 47,575 (187,748) 2,909 (184,839)Segment net assets 51,672 5,612 81,918 134,054 (148,462) 124,794 (2,281) 122,513

Capital expenditure 7,414 594 9,802 12 - 17,822 - 17,822

Depreciation 3,249 1,719 2,970 395 - 8,333 - 8,333

ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOMEfor the six months ended 30 September 2012

30 Sept 30 Sept 31 Mar2012 2011 2012

US$'000 US$'000 US$'000

Profit for the period (27,345) (5,047) 14,848

Other Comprehensive IncomeImpairment charge against revaluation reserve - (357) (2,374)Transfer from revaluation reserve - - (196)Exchange differences on translating foreign operations (432) - (2,995)Gains on available for sale investments - 1,052 -Income tax on other comprehensive income - - 662

Other comprehensive income for the period (432) 695 (4,903)

Total comprehensive income for the period (27,777) (4,352) 9,945

Total comprehesive income attributable to:Equity holders of the parent (22,681) (2,981) 2,743Non-controlling Interest (5,096) (1,371) 7,202

(27,777) (4,352) 9,945

8. Supplementary Information

8.1 Profit from operations is stated after the following impairment losses

Impairment Losses by Operating SegmentOperating Segment Cotton Seed FMCG Total

30 Sept 30 Sept 30 Sept 30 Sept2012 2012 2012 2012

US$'000 US$'000 US$'000 US$'000

Trade debtors and other receivables 29 - - 29Inputs scheme debtors 8,632 - - 8,632Total 8,661 - - 8,661

30 Sept 30 Sept 31 Mar2012 2011 2012

US$'000 US$'000 US$'000

8.2 Depreciation 3,673 3,716 8,336

8.3 Capital expenditure 3,916 13,415 17,822

8.4 Commitments for capitalexpenditure

Contracted for 368 - - Approved by the Directors but

not yet contracted for 1,661 9,800 2,385 TOTAL 2,029 9,800 2,385

8.5 BorrowingsCurrent 185,738 101,252 66,280Non-current 12,402 14,659 11,659

198,140 115,911 77,939

Secured 166,513 101,016 51,295Unsecured 31,627 14,895 26,644

198,140 115,911 77,939

The increase in loans is a result of the late start of the selling season due to the delay ofthe cotton intake period following price disagreements with cotton farmers. The highinventories held will significantly reduce the debt levels in the second half as they are sold.

GROUP PRIMARY SEGMENT REPORTfor the six months ended 30 September 2012

BUSINESS SEGMENT

Cotton FMCG Seed Other Group Total Discontinued Continuingbusiness business business eliminations operations operations

US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'00030 September 2012

Continuing operationsRevenue 31,669 11,487 13,256 - (2,435) 53,977 - 53,977

(Loss)/profit from operations (9,286) (244) (7,484) 17,198 (18,303) (18,119) - (18,119)

Investment income 1,172 30 80 393 (1,460) 215 - 215Other (losses)/gains 2 - (958) (10) - (966) - (966)Finance costs (8,804) (974) (2,557) (1,121) 1,460 (11,996) - (11,996)(Loss)/profit before taxation (16,916) (1,188) (10,919) 16,460 (18,303) (30,866) - (30,866)

Other informationSegment assets 154,981 27,663 154,798 143,369 (148,310) 332,501 (1,386) 331,115Segment liabilities (140,213) (17,588) (86,060) (7,910) 12,546 (239,225) 472 (238,753)Segment net assets 14,768 10,075 68,738 135,459 (135,764) 93,276 (914) 92,362

Capital expenditure 425 152 3,286 53 - 3,916 - 3,916

Depreciation 1,693 567 1,362 51 - 3,673 - 3,673

ECONOMIC OVERVIEWIn Zimbabwe, economic activity slowed down during the period underreview resulting in the economic gr owth projection being revieweddownwards from 9.4% to 5.6%. Liquidity constraints continue to bea major challenge as financial institutions are increasingly hamstrungby non performing loans. The high cost of borr owing and the shortterm nature of funding on the local market do not match attendantcash flow cycles of key industries and thus continue to impede recoveryand growth of businesses and the economy. Inflation is expected toclose the year at 5%. Power availability will continue to be a major riskuntil a long term solution is put in place to incr ease local powergenerating capacity. The availability of other utilities like water, havedeteriorated in major cities adversely affecting the smooth running ofbusinesses.

In the region; the Zambian kwacha will be debased in January 2013,with inflation for 2013 estimated at no more than 6%. In Malawi, foreigncurrency shortages persist and interest rates continue to firm with thebase lending rate now at 31%. In Kenya, general elections ar e likelyto be held in March 2013 and the economy appears rather subduedon account of underlying political uncertainty , while in Tanzania theeconomy continues to perform strongly though headline inflation of15% is a cause for concern.

OPERATIONS

CottonThe cotton crop intake improved significantly to 150 000 tonnes upfrom 103 224 tonnes last year as farmers responded to the previousyear's good prices by increasing their hectarage under cotton. Cottonlint prices, however, retreated from the r ecord high prices of overUS$2.30 per pound last year to US$0.70 per pound this year as marketfundamentals changed. This resulted in a lower producer price, thanlast year being offered to the cotton growers much to their displeasureresulting in a price impasse with farmers withholding their cr op.

Eventually market forces were allowed to prevail with the bulk of thecrop being marketed in July and August.

However, the delayed start to the buying season occasioned by theprice impasse resulted in extensive side marketing and poor recoverieson input scheme advances. As a result the Cotton business has beenforced to downgrade its profit forecasts due to impairment provisionsof US$8.7 million arising from this phenomenon.

SeedThe half year performance was subdued due to low winter cereal salesand delayed uptake of summer cr opping programs in the variousmarkets.

The business has adequate stocks to meet seed demand for the newseason. The business will continue to focus on improving quality andproduction capacity in new markets.

Liquidity constraints in Zimbabwe are affecting collections from ourmajor debtors who are paying slowly but on-going discussions suggestthat this will be resolved by year end.

FMCGOlivine continues to suffer from inadequate capital despite recent equityinjection into this business. The extraction of about US$10.0 millionin facilities by some local banks, after the capital injection, has meantthat this business has r emained at a standstill fr om a capitalisationpoint of view. However, and due to various initiatives developed bymanagement, sales volumes are 3% ahead of last year and the lossfor the period of US$1.1 million is 20% better than last year's US$1.3million.

Production has improved over prior year and the business is generallyperforming better than last year. Focus is on finding ways and meansto at least break even in the second half though this will be lar gely

dependent on availability and swift renewal of existing facilities whichare predominantly short term.

GROUP FINANCIAL PERFORMANCEFirst half sales volumes wer e 30% lower than last year due to lowwinter cereal sales in and the late start to the cotton buying seasonwhich in tur n resulted in a delayed start to lint sales deliveries.

As a result Group sales revenue of US$53.8 million was 53% lowerthan last year. In addition current year sales prices, particularly for lint,were significantly lower than last year's record prices hence the muchlower revenue values.

Operating loss of US$18.1 million (September 2011: UD$8.6 millionprofit) was arrived at after charging impairment losses of US$8.7 million- most of which were in respect of cotton input scheme r ecoveries.Loss after tax of US$27.3 million was 446% higher than last year'sloss of US$5.0 million. Generally, profits for the half were affected bylower prices and low sales activity relative to prior year as well as theimpairment charges alluded to above.

Shareholders' funds and equity fell in sympathy with the losses recordedfor the year to-date.

Borrowings of US$198.1 million, at the end of the first half, were muchhigher than last year due to higher crop intake this year as well as slowcash turnaround arising from late start to the crop buying and resultantdelays in lint shipments.

Net cash utilized in operations amounted to US$15.6 million. Capitalexpenditure for the period amounted to US$3.9 million, with the bulkof this being spent in the Seed business. Net increase in loans in theyear to date amounted to US$120.2 million and was driven mainly bybui ldup of inventories and trade r eceivable balances.

Management of the inputs scheme, inventory and trade r eceivablescomplex will be critical in cash and pr ofit enhancement initiatives.

TREASURYThe Group is actively pursuing funding initiatives designed to fullycapitalise its units. Financial Advisors have been appointed and workdone has progressed reasonably well so far.

The Board will advise the market and seek necessary appr ovals assoon as it becomes practical to do so.

OUTLOOKWe expect good performance from the Seed business in the year toMarch 2013 and reasonable performance from Cotton for the sameperiod. However, FMCG performance will continue to be retarded bylack of funding though this is expected to improve over last year. Onthe other hand, forecast performance in the Cotton business, thoughpositive, will be negated by poor input scheme r ecoveries for whichadditional impairment provisions of US$8.7 million have been made.

DIRECTORATEThere were no changes in the Directorate in the period under review.

DIVIDENDIn line with the Groups' policy, no interim dividend has been declared.

By Order of the Board

P MANAMIKECompany Secretary

19 November 2012

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Directors: BL Nkomo (Chairman), P St. L Devenish* (Group Chief Executive), I Chagonda, CC Chitiyo (Ms), BC Mudzimuirema*, AF Nhau, LF Preston, JP Rooney, F Rwodzi (*Executive)

30 Sept 30 Sept 31 Mar2012 2011 2012

US$'000 US$'000 US$'000

Property, plant ad equipment 1,372 2,223 3,207Current Assets 14 66 1,983

Total assets 1,386 2,289 5,190

Deferred Tax 444 612 444Current liabilities 28 25 2,465

Total liabilities 472 637 2,909

Net assets 914 1,652 2,281

Revenue - - 4,463

Profit from operations - - (477)

Loss for the year - - (509)

Abridged GroupUnaudited Resultsfor the Half Year ended 30 September 2012

1st Floor, SAZ Building, Northend Close, Northridge Park, P.O.Box BW537,

Borrowdale, Harare, Tel: 263-4-852795, 853054-6,

853059, Fax: 263-4-850705, www.aicoafrica.com