Trading statement Pick n Pay Stores Limited (Incorporated in the Republic of South Africa) (Registration number: 1968/008034/06) Share Code: PIK ISIN code: ZAE000005443 Trading statement Shareholders are advised that Pick n Pay Stores Limited (“the Group”) is in the process of finalising its financial results for the 52 weeks ended 1 March 2015, which are expected to be published on 21 April 2015. The Group is pleased to report that it will deliver a strong financial performance for the 2015 financial year, recording growth in headline earnings per share of over 20% on the prior year, for a fourth consecutive reporting period. This result reflects progress over the past two years in achieving the first phase of the Group’s recovery plan – to stabilise the business by applying effective financial rigour to expenditure, making significant improvements to working capital management to reduce debt and interest charges, and beginning the task of driving greater efficiency through all operations. These improvements have strengthened underlying margins and positioned the Group for the next phase of its recovery plan, which is to change the trajectory of performance for the long-term. Turnover growth of 6.1% reflects the financial pressure on middle-income customers, combined with the impact of strategic actions which, while strengthening the quality of our estate, have impacted turnover in the reporting year. These actions include the closure of 40 underperforming stores over the last 2 years, disruption to trading in hypermarkets and supermarkets undergoing refurbishment, and a deliberately cautious approach to corporate new space growth. The Group is determined to drive strong returns from new space, and has over the past year developed a stronger plan for future growth which builds on its improved operating model and wider choice of formats. We expect the results for the financial year ended 1 March 2015, expressed as growth on the previous year, to fall within the following ranges: 2015 2015 Growth on prior Expected range 2014 year cents per share cents per share HEPS will increase between 20% and 30% 166.21 to 180.06 138.51 Diluted HEPS will increase between 20% and 30% 163.75 to 177.40 136.46 EPS will increase between 40% and 50% 170.81 to 183.02 122.01 Diluted EPS will increase between 40% and 50% 168.29 to 180.32 120.21 HEPS excludes the impairment of intangible assets of R104.1 million in the prior year, which accounts for the difference in the year-on-year increase between HEPS and EPS. Having substantially completed the first stage of its strategic recovery plan, Pick n Pay is now a stronger business and better for customers. The second stage of the plan - Changing the Trajectory of Pick n Pay - will deliver accelerated improvements in operating efficiency, investment and innovation in the customer offer, a further strengthening of the balance sheet and financial performance and a dynamic approach to expansion. This trading statement has not been reviewed by or reported on by the Group’s auditors. By order of the board Cape Town 10 April 2015 Sponsor: Investec Bank Limited Date: 10/04/2015 10:00:00 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.