Trading Statement QUANTUM FOODS HOLDINGS LIMITED (Incorporated in the Republic of South Africa) Registration Number: 2013/208598/06 Share Code: QFH ISIN Code: ZAE000193686 ("Quantum Foods" or "the Company") TRADING STATEMENT In terms of the Listings Requirements of the JSE Limited, a listed company is required to issue a trading statement once it is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported upon next will differ by at least 20% from the financial results for the previous corresponding period. Shareholders are hereby advised that in respect of the twelve months ended 30 September 2016, the Company expects headline earnings per share of between 21.6 cents and 32.4 cents, being a decrease of between 40% and 60% compared to the headline earnings of 54.0 cents per share for the previous corresponding period. Shareholders are further advised that in respect of the twelve months ended 30 September 2016, the Company expects earnings per share of between 32.6 cents and 43.5 cents, being a decrease of between 20% and 40% compared to the earnings of 54.4 cents per share for the previous corresponding period. The results for the twelve months ended 30 September 2016 have been affected by: - Significantly increased raw material costs, associated with the drought in South Africa and continued ZAR weakness, which negatively affected the cost of raw materials, and specifically impacted earnings in the eggs as well as in the layer livestock farming businesses where price recovery has not been sufficient; - Lower egg sales volumes due to an increased prevalence of diseases that negatively impacted the productivity of layer livestock farming; - The implementation of the revised broiler business model, which resulted in the exit of the broiler meat market and the Company becoming a broiler livestock farmer, supplying other abattoirs. This was completed with the sale of the Hartbeespoort abattoir in October 2015 and has resulted in largely de-risking the broiler business with earnings more dependent on volumes and farming efficiencies than the ability to recover cost increases from the market. This business model change contributed positively to earnings for the year. The profit from the sale of the Hartbeespoort abattoir is included in the expected earnings per share for the twelve months ended 30 September 2016; and - Lower earnings from African operations, impacted by instability in currencies, lower sales volumes and higher input costs not being recoverable from selling prices due to increased pressure on the consumer. Shareholders are further informed that, in terms of the general authorisation granted to the directors of the company by shareholders at the 19 February 2016 Annual General Meeting, a total of 1 445 274 shares were bought back and cancelled by the Company during the year ended 30 September 2016. The financial information on which this trading statement is based has not been reviewed or reported on by the Company´s auditors. Quantum Foods´ financial results for the 12 month period ended 30 September 2016 are expected to be released on SENS on or about Thursday 24 November 2016. Wellington 14 October 2016 Sponsor PSG Capital Proprietary Limited Date: 14/10/2016 03:00:00 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.