Business update Truworths International Limited (Incorporated in the Republic of South Africa) (Registration number: 1944/017491/06) JSE Code: TRU NSX Code: TRW ISIN: ZAE000028296 BUSINESS UPDATE In its 2016 Preliminary Report published on 18 August 2016, Truworths International Limited (the ‘Group’) indicated that it expected the trading environment to remain challenging during the 2017 financial period owing to the high base established in the previous year, slow economic growth, high inflation in product prices due to the weakened currency, and the significantly negative impact of the new affordability assessment regulations introduced in September 2015. Against this background and rising inflation in the economy, especially in food prices, which is placing further pressure on consumers, the Group announces that Group retail sales for the first 18 trading weeks (i.e. from 27 July 2016 to 30 October 2016 of the 2017 financial period) (‘the period’) increased by 39% to R6.2 billion relative to the corresponding prior 18- week period (29 June 2015 to 1 November 2015) (‘the prior period’). Credit sales which comprised 49% of retail sales (2016: 69%) for the period, decreased by 1% and cash sales increased by 130% relative to the prior period. These results are inclusive of the non-comparable retail sales of Office, which was acquired with effect from 4 December 2015. The reason for the material change in the credit:cash sales metric is that Office generates cash sales only. Excluding the retail sales recorded by Office, which was acquired subsequent to the prior period-end, retail sales for the period decreased by 1% to R4.4 billion relative to the prior period (prior period growth 16%, excluding acquisitions), cash sales decreased by 1% (prior period growth 14%, excluding acquisitions) and credit sales decreased by 1% (prior period growth 16%, excluding acquisitions). Credit sales comprised 70% of these retail sales for the period. Like-for-like store retail sales, which exclude those attributable to Office, decreased by 5%, whilst product inflation averaged 16%. Office recorded retail sales for the period of £97.3 million (R1.8 billion), up 1.4% relative to the prior period’s £95.9 million. The Group’s trade receivables book increased by 6% to R5.7 billion relative to the prior period-end. Shareholders are advised that this business update does not constitute an earnings forecast, and that the financial information provided herein has neither been reviewed nor reported on by the Group’s external auditors. The Group’s interim results for the 26-week period ending 25 December 2016 are scheduled for release on or about Thursday, 16 February 2017. 3 November 2016 Cape Town JSE Sponsor: One Capital Date: 03/11/2016 09:30:00 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.