PIONEER FOOD GROUP LIMITED - Trading Statement

Trading Statement

Pioneer Food Group Limited
Incorporated in the Republic of South Africa
Registration number: 1996/017676/06
Share code: PFG
ISIN code: ZAE000118279
(“Pioneer Foods” or “the Group”)

TRADING STATEMENT AND UPDATE FOR THE YEAR ENDED 30 SEPTEMBER 2016

Trading statement

The following disclosure is made in accordance with Section 3.4 (b) of the Listings Requirements of the JSE
Limited. Pioneer Foods advises that for the year ended 30 September 2016, a reasonable degree of certainty
exists that:
     - Headline earnings per share is expected to be between 865 cents and 931 cents, or between 30% and
          40% higher than the 665 cents reported for the comparative period;
     - Attributable earnings per share is expected to be between 870 cents and 932 cents, or between 42%
          and 52% higher than the 613 cents reported for the comparative period;
     - Headline earnings per share from continuing operations on an adjusted basis (Note 1) is expected to be
          between 840 cents and 906 cents, or between 1% and 9% higher than the 832 cents reported for the
          comparative period; and
     - Earnings per share from continuing operations on an adjusted basis (Notes 1 and 2) is expected to be
          between 864 cents and 931 cents, or between 4% and 12% higher than the 831 cents reported for the
          comparative period.
Notes:
    1.   Adjusted for the IFRS 2 share-based payment charge relating to the Phase 1 (2006) B-BBEE transaction
         and the effect of the forward purchase contract hedge entered into relating to this scheme
    2.   Adjusted for the impairment loss recognised on Quantum Foods shares acquired by the consolidated
         B-BBEE SPV participants (Phase 2 (2012) B-BBEE transaction) with the 6 October 2014 unbundling of
         Quantum Foods

Trading update

Pioneer Foods is set to deliver credible financial results for the year to 30 September 2016 underpinned by the
competitive attributes and resilience of the brand portfolio.

Notwithstanding significant external discontinuities, revenue increased by between 9% and 11% and by between
11% and 13% excluding Pepsi, biscuits and Maitland Vinegar.

The business had to contend with the severe impact of the drought on maize and other crops, exponential
increase in the wheat import duty, rand volatility and resultant cost push in a weak consumer environment.
Export revenue into the rest of Africa came under pressure amidst severe currency devaluation to the ZAR, and
the deterioration of in-country consumer spending power as a consequence.

The combined strength of the Group’s brand portfolio and a sustained focus on cost management and extraction
of efficiencies, assisted in mitigating the full effect of the aforementioned vagaries.

Essential Foods managed to improve its full year performance relative to the half year, whilst the Groceries and
International Divisions delivered a commendable performance.

Pioneer Foods is due to release its annual results for the year ended 30 September 2016 on or about 21
November 2016.

The information above has not been reviewed or reported on by the Group’s auditors.

Tyger Valley
25 October 2016

Sponsor: PSG Capital Proprietary Limited

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