PIONEER FOOD GROUP LIMITED - Voluntary Trading Update And Earnings Guidance For The Year Ended 30 September 2015

Voluntary Trading Update And Earnings Guidance For The Year Ended 30 September 2015

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”)

VOLUNTARY TRADING UPDATE AND EARNINGS GUIDANCE FOR THE YEAR ENDED
30 SEPTEMBER 2015

The following update is based on the latest available trading information for the year ended
30 September 2015.

Pioneer Foods increased group turnover by 6% (7% excluding Pepsi and Biscuits)
notwithstanding, fourth quarter market contraction, maize deflation and increased
competition. The core categories recorded a solid volume and turnover performance
resulting in market share gains.

Groceries (excluding Pepsi and Biscuits) recorded a strong performance driven by wheat
biscuits, cornflakes and long life fruit juice.

The International Division recovered well in the second half in both revenue and profitability,
bolstered by fruit exports.

Essential Foods and in particular Bakeries, sustained momentum with a consequent step
change in profitability and margins relative to the prior year.

The top line performance for the Group translated into significant operating leverage.
Operating profit before items of a capital nature on an adjusted basis (note 1) is expected to
increase between 26.3% and 29.9%, year-on-year.

Severe cost-push was off-set by a sustained focus on costs and extracting efficiencies
across the value chain. The overall Group margin consequently expanded relative to the
prior year.

Pioneer Foods hereby advises that for the year ended 30 September 2015, a reasonable
degree of certainty exists that:

   -   Headline earnings per share from continuing operations on an adjusted basis (Note 1)
       is expected to be between 821.1 cents and 844.4 cents, or between 28.8% and
       32.5% higher than the 637.4 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 820.4 cents and 843.7 cents, or between 32.6% and
       36.4% higher than the 618.8 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
    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
The following disclosure is made in accordance with Section 3.4 (b) of the Listings
Requirements of the JSE Limited for the year ended 30 September 2015:

   -   Headline earnings are expected to increase by between 14.5% and 18.5% compared
       to the comparative period;
   -   Headline earnings per share is expected to be between 654.8 cents and 678.1 cents,
       or between 13.8% and 17.8% higher than the 575.6 cents reported for the
       comparative period;
   -   Attributable earnings are expected to increase by between 14.5% and 18.9%
       compared to the comparative period; and
   -   Attributable earnings per share is expected to be between 598.9 cents and 622.1
       cents, or between 13.8% and 18.2% higher than the 526.5 cents reported for the
       comparative period.

It is expected that Pioneer Foods will release its results for the year ended 30 September
2015 on or about 24 November 2015.

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

Tyger Valley
29 October 2015

Sponsor
PSG Capital

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