Statement by the CEO THE FOSCHINI GROUP LTD Reg. No.: 1937/009504/06 Code : TFG - TFGP ISIN : ZAE000148466 – ZAE000148516 STATEMENT BY THE CEO At TFG’s 77th Annual General Meeting held today, CEO Doug Murray updated the meeting as follows: RESULTS FOR 2014 The group produced a solid result for the year in a difficult trading environment characterised by the extremely challenging credit market. Enhanced credit risk management practices constrained credit turnover growth to 5,7%. Cash sales were however buoyant growing by 15,9%. Total retail turnover increased by 9,8% to R14,2 billion whilst diluted headline earnings per share increased by 6,0% to 902,7 cents per share. Our final dividend increased by 8,5% to 293,0 cents with a total dividend for the year of 536,0 cents per share – an increase of 5,9%. PROSPECTS FOR THE 2015 FINANCIAL YEAR I would now like to comment briefly on the group’s prospects for 2015. • We expect trading conditions in the credit side of our business to remain challenging, while we anticipate that we will continue to benefit from strong cash sales growth. • In line with our strategy of investing for long term growth we will continue to open new stores and we anticipate increasing trading space by approximately 7% in the current year. • Trading for the first five months of this financial year reflect total sales growth of 10,3% over the previous period with same store sales growth of 4,9%. Credit sales which have been constrained by our enhanced credit risk measures grew by 2.8%, whilst cash sales have been buoyant growing by 21.0%. • In the current credit environment, our retail debtors’ book is performing within management expectations and some signs of improvement have become evident. • As was advised on SENS on 6 August 2014, the transaction in relation to our 55% holding in RCS has been completed with a closing date of 6 August 2014. Our share of the net proceeds is approximately R1,45 billion. The board continues to evaluate alternatives regarding the use of the net proceeds. • Notwithstanding the current environment, we believe the group is well positioned to deliver a satisfactory result for this year, remembering that the second half of the year is heavily dependent on Christmas trading, which will largely determine the performance of the group in the second half. ACKNOWLEDGMENTS Once more on behalf of my fellow board members and myself I thank all our dedicated staff for their hard work and continued excellent performance during the year. Cape Town 1 September 2014 SPONSOR: UBS South Africa (Pty) Ltd Date: 01/09/2014 01:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.