Trading Statement Verimark Holdings Limited Incorporated in the Republic of South Africa Registration number: 1998/006957/06 JSE share code: VMK ISIN number: ZAE000068011 ("Verimark" or "the Company" or “the Group”) TRADING STATEMENT Despite a tough retail environment due to a weaker consumer demand, higher interest rates and negligible economic growth in South Africa, the Group expects improved profits for the financial year ended 28 February 2017(“the 2017 financial year”). As a result of the ongoing depreciation of the Rand against the US Dollar (“USD”) in the prior financial year, it became necessary for Verimark to increase selling prices in mid-February 2016. Although these price increases were greater than the increases in the prior years, they still do not reflect the total depreciation of the Rand against our import currencies over the last five and a half years. As in the past, the price increases impacted negatively on sales and resulted in lower than expected sales growth. The subsequent strengthening of the Rand to the USD and other currencies in the 2017 financial year resulted in improved buying power of our imports. The combination of the sales price increases and the strengthening of the Rand resulted in an increase in gross profits. A major focus on reduction and containment of costs helped to produce favourable results. This was achieved through a renewed cost benefit analysis and elimination of wasteful expenditure. The on-going improvement resulted in cost increase being contained to below inflationary levels. Shareholders are advised that the board of directors of the Company is reasonably certain that, when compared to the audited results for the year ended 28 February 2016(“comparative period”): - the Company will record a profit before taxation of between R33,7 million and R41,2 million, an increase of between 157% and 214% on the R13,1 million for the comparative period; - headline earnings per share is expected to be in the range of 22,1 and 27,0 cents per share being an increase of between 176% and 238% compared to the 8,0 cents for the comparative period; and - earnings per share is expected to be in the range of 22,0 and 27,0 cents per share, an increase of between 183% and 246% compared to the 7,8 cents for the comparative period. The financial information on which this trading statement is based has not been reviewed and reported on by the Company’s external auditors. The Company`s financial results for the 2017 financial year are expected to be published on or about 23 May 2017. 3 April 2017 Sponsor Grindrod Bank Limited Date: 03/04/2017 11:45:00 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.