PICK N PAY STORES LIMITED - Trading statement

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 2017 interim financial results for the 26 weeks ended 28 August 2016, which are expected to
be published on 18 October 2016.

The Group is pleased to announce that it will deliver another improved financial performance for
the first half of the 2017 financial year. Headline earnings per share (HEPS) will increase between
20% and 25% on the prior year.

The Group’s long-term strategy - built on a combination of greater operating efficiency, sales
growth and margin improvement - remains on track. This result is under-pinned by stronger
operational and financial discipline, with tight expense control in an inflationary economy.
Turnover growth of 7.2% (7.5% in constant currency) reflects a tougher trading environment and
some internal disruption from store refurbishments as the Group continues to improve the quality
of its estate. Two-year compound turnover growth - which smooths the impact of disruption - is
close to 8%.

We expect the results for the 26 weeks ended 28 August 2016, expressed as growth on the
previous year, to fall within the following ranges:

                                                                        26 weeks to         26 weeks to
                                                                          28 August           30 August
                                                                               2016                2015
                                              Growth on prior       Expected range               Actual
                                                      period        cents per share     cents per share

 HEPS will increase between                      20% and 25%          79.94 - 83.28              66.62

 Diluted HEPS will increase between              20% and 25%          78.42 - 81.69              65.35

 Basic EPS will increase between                 15% and 20%          76.36 - 79.68              66.40

 Diluted basic EPS will increase between         15% and 20%          74.90 - 78.16              65.13


The Group is confident in the delivery of its long-term strategy. A successful turnaround requires
a programme of improvement over a number of years, and this result represents the seventh
consecutive reporting period of substantive profit growth. The Group’s track record of greater
operating efficiency and improved customer-focus provides a strong platform for growth. It
believes that the pressures facing consumers - in particular the pernicious effect of high food
inflation - may begin to alleviate in the coming months.

This trading statement has not been reviewed by or reported on by the Group’s auditors.

By order of the Board
Cape Town
7 October 2016                                                  Sponsor: Investec Bank Limited

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