Trading Update And Trading Statement For The Six Months Ended September 2016 Lewis Group Limited Incorporated in the Republic of South Africa Registration number: 2004/009817/06 JSE share code: LEW ISIN: ZAE000058236 LEW01 ISIN: ZAG000110222 (“Lewis” or “the group” or “the company”) TRADING UPDATE AND TRADING STATEMENT FOR THE SIX MONTHS ENDED SEPTEMBER 2016 The performance for the six months ended September 2016 (“the period”) reflects the challenging economic and consumer environment in which the business is trading and how these conditions have impacted the group’s lower to middle income target customers. This has been compounded by the ongoing impact of the National Credit Regulator’s affordability assessment guidelines which are restricting access to credit in South Africa and severely limiting the group’s credit sales. Merchandise sales for the period were in line with last year, with like for like merchandise sales down 9.2%. Revenue declined by 2% mainly as a result of a 4% decline in other Revenue over the corresponding prior period. The group’s gross profit margin has continued to expand in line with management’s expectations and improved to 40.5% compared to 36.4% in the previous year. Debtor costs for the period increased by 7.3% reflecting a further slowing from the 17% growth reported at the 2016 year end. Shareholders are advised that as a result of the adverse trading conditions, headline earnings per share for the period is expected to be between 210 cents per share and 177 cents per share, between 35% and 45% lower than the 322.6 cents per share for the corresponding prior period . Earnings per share is expected to be between 218 cents per share and 185 cents per share, between 35% and 45% lower than the 335.5 cents per share for the corresponding prior period. The financial information contained in this announcement has not been audited, reviewed or reported on by the group’s external auditors. The group’s interim results for the period are scheduled to be released on SENS on or about 9 November 2016. Cape Town 21 October 2016 Sponsor:UBS South Africa (Pty) Ltd Debt Sponsor: Absa Bank Limited (acting through its Corporate and Investment Bank division) Date: 21/10/2016 09:35:00 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.