RCL FOODS LIMITED - Announcement regarding proposed changes to the Chicken business unit

Announcement regarding proposed changes to the Chicken business unit

RCL FOODS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1966/004972/06)
ISIN: ZAE000179438
Share Code: RCL
(“RCL FOODS" or “the company”)

ANNOUNCEMENT REGARDING PROPOSED CHANGES TO THE CHICKEN BUSINESS
UNIT

Shareholders are advised that RCL FOODS’ Chicken business unit has
initiated steps to mitigate the crisis facing the local poultry
industry. The results for the year ended 30 June 2016, published
on SENS on 30 August 2016, included commentary on the significant
challenges faced by our chicken business, principally as relates
to commodity lines in retail competing with dumped imports. The
Board and executive of RCL FOODS are evaluating the options
available to the company, the immediate objective of which is to
reduce the volume of commodity chicken produced.

A process of consultation with all affected employees and relevant
unions has been initiated. It is RCL FOODS’ intention to engage
all affected stakeholders including government, customers,
suppliers and staff in the related feed and distribution
operations. The imperative is to restore the profitability of our
chicken business by limiting production of consequential commodity
products and continuing to grow the demand-driven portfolio,
largely comprising the foodservice market.

The Board of RCL FOODS is committed to managing this process
responsibly, and ensuring that all stakeholders are kept informed
and the most viable solution implemented.

Durban
27 September 2016

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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