Trading statement RCL FOODS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1966/004972/06) ISIN: ZAE000179438 Share Code: RCL (“RCL Foods" or “the Group”) TRADING STATEMENT Shareholders are advised that RCL Foods expects that its headline earnings per share from continuing operations (“HEPS”) for the year ended 30 June 2016 will be between 95.0 cents (–15.3%) and 105.0 cents (-6.4%) versus HEPS of 112.2 cents for the corresponding year ended 30 June 2015. The combined HEPS (which includes continuing and discontinued operations) for the year ended 30 June 2016 will be between 95.0 cents (-16.0%) and 105.0 cents (–7.2%) versus combined HEPS of 113.1 cents for the corresponding year ended 30 June 2015. The earnings per share from continuing operations (“EPS”) for the year ended 30 June 2016 will be between 20.0 cents (–80.5%)and 30.0 cents (–70.7%) versus EPS of 102.4 cents for the corresponding year ended 30 June 2015. The combined EPS (which includes continuing and discontinued operations) for the year ended 30 June 2016 will be between 20.0 cents (–79.7%) and 30.0 cents (-69.6%) versus combined EPS of 98.7 cents for the corresponding year ended 30 June 2015. The results for the year ended 30 June 2016 have been materially impacted by three abnormal items: - an impairment of R642.8 million (excluded from headline earnings) relating to goodwill and trademarks in the Milling cash generating unit. The impairment is due to lower forecasted cash flows as a result of a competitive trading environment and increases in the ten-year government bond yield driving up the discount rate. The impact on EPS is a negative 74.5 cents - the release of a R163.3 million provision for uncertain taxation disputes raised in terms of IFRS 3 (Business Combinations) as part of the Foodcorp acquisition. This matter has now been finalised with the South African Revenue Service and consequently the income tax expense for the period has been reduced by R163.3 million. The release has no cashflow impact. The impact on HEPS and EPS is a positive 18.9 cents;and - recognition of R67,7 million profit after tax (headline earnings impact R118,9 million) relating to the exercise of the Zam Chick and Zamhatch put options. The impact on HEPS and EPS is a positive 13.8 cents and 7.8 cents respectively. Excluding the above three items, HEPS from continuing operations for the year ended 30 June 2016 will be between 61.4 cents (– 45.3%) and 71.4 cents (–36.4%)versus 112.2 cents for the corresponding year ended 30 June 2015. Excluding the Sugar and Chicken business units, the remaining operations of the Group have performed well. The Sugar and Chicken business units have been adversely impacted by the worst drought in Southern Africa in the past 100 years. Chicken results have also been adversely impacted by the massively oversupplied poultry market as a result of surplus domestic volumes as well as record levels of dumped imports. The Group’s results for the year ended 30 June 2016 are expected to be released on SENS on 30 August 2016. The financial information on which this trading statement is based has not been reviewed and reported on by the Group’s external auditors. Durban 18 August 2016 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 18/08/2016 12:00:00 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.