Second quarter operational update - FY 2017 CASHBUILD LIMITED (Registration number: 1986/001503/06) (Incorporated in the Republic of South Africa) JSE share code: CSB ISIN: ZAE000028230 (“Cashbuild” or “the company”) SECOND QUARTER OPERATIONAL UPDATE – FY 2017 Cashbuild is currently in the process of finalising its results for the half-year ended December 2016. In line with past practice and disclosure, Cashbuild herewith provides its quarterly operational update. Revenue for the company was up by 4% on the second quarter of the prior financial year. Stores opened since 1 July 2015 (new stores – 20 stores) contributed 4% of the increase, whilst existing stores (219 stores) remained at similar levels when compared to the second quarter of the prior financial year. This, together with the growth reported in the first quarter, equates to an increase in revenue for the half year of 4%, with new stores contributing 4% of the increase whilst existing stores remained at similar levels to that of the comparative period of the prior financial year. Revenue for the Group, including P&L Hardware trading equates to growth of 14% for the second quarter and 15% growth for the first half of the financial year when compared to the prior year. Transactions through the tills during the 2nd quarter increased by 1% (half year: 0%) to that of the comparative period contributed by new stores increasing with 3% (half year: 3%) and existing stores decreasing by 2% (half year: 3% decrease). Transactions for the 2nd quarter for the group were up 10% (half year: 9%) with the inclusion of P&L Hardware. Total units sold increased by 6% (half year: 7%) with existing stores increasing by 1% for the 2nd quarter (half year: 3%). Units for the Group were up 11% (half year: 12%) with the inclusion of P&L Hardware. During the second quarter five new stores were opened (half year: nine stores), two stores were refurbished (half year: two), one store relocated (half year: two), and one store closed at the expiration of its lease term (half year: 2) bringing the total number of stores trading at the end of the quarter to 293, which includes the 44 P&L Hardware stores and the 10 Cashbuild DIY pilot stores. Selling inflation was at 3% at the end of December 2016 when compared to December 2015 prices. Gross profit percentage margins remained at similar levels to those reported for the full prior financial year. Detail per region The breakdown per region of the factual information given in the update above is reflected in the three tables below. With the P&L Hardware acquisition effective 1 June 2016 it will be shown separately for the remainder of the financial year. Revenue versus comparative period Total P&L New Existing Percentage per region Hardware of total sales % % % % % South Africa Q1 17 14 2 1 90 Q2 16 12 4 - 90 Half Year 16 12 3 1 90 Lesotho Q1 (8) - - (8) 2 Q2 (3) - - (3) 1 Half Year (5) - - (5) 1 Namibia Q1 11 - 11 - 1 Q2 (1) - 11 (12) 2 Half Year 4 - 11 (7) 2 Swaziland Q1 1 - - 1 3 Q2 4 - - 4 3 Half Year 3 - - 3 3 Botswana (in Rand) Q1 (1) - - (1) 3 Q2 - - 7 (7) 3 Half Year - - 4 (4) 3 Botswana (in Pula) Half Year 1 - 4 (3) Malawi (in Rand) Q1 21 - - 21 1 Q2 8 - - 8 1 Half Year 14 - - 14 1 Malawi (in Kwacha) Half Year 42 - - 42 Total Cashbuild Q1 15 12 2 1 100 Q2 14 10 4 - 100 Half Year 15 11 4 - 100 Transactions versus comparative Total P&L New Existing Percentage period per region Hardware of total transactions % % % % South Africa Q1 8 10 3 (5) 90 Q2 12 10 4 (2) 90 Half Year 10 10 3 (3) 90 Lesotho Q1 (8) - - (8) 2 Q2 (7) - - (7) 2 Half Year (8) - - (8) 2 Namibia Q1 4 - 10 (6) 2 Q2 (13) - 11 (24) 2 Half Year (5) - 10 (15) 2 Swaziland Q1 (3) - - (3) 3 Q2 3 - - 3 3 Half Year - - - - 3 Botswana Q1 (2) - - (2) 3 Q2 7 - 9 (2) 3 Half Year 3 - 5 (2) 3 Malawi Q1 21 - - 21 - Q2 3 - - 3 - Half Year 12 - - 12 - Total Cashbuild Q1 7 9 3 (5) 100 Q2 10 9 3 (2) 100 Half Year 9 9 3 (3) 100 Number of stores – end quarter two Total P&L New Existing Percentage Hardware of total % South Africa 254 44 18 192 87 Lesotho 5 - - 5 2 Namibia 4 - 1 3 1 Swaziland 7 - - 7 2 Botswana 11 - 1 10 4 Malawi 2 - - 2 1 DIY Pilot stores 10 - - 10 3 Total 293 44 20 229 100 17 January 2017 Sponsor Nedbank Corporate and Investment Banking Date: 17/01/2017 04:00:00 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.