Trading statement FAMOUS BRANDS LIMITED (Incorporated in the Republic of South Africa) (Registration number 1969/004875/06) Share code: FBR ISIN code: ZAE000053328 (“Famous Brands” or “the Company”) Trading statement In terms of paragraph 3.4 (b) of the JSE Limited (“JSE”) Listing Requirements, companies are required to publish a trading statement as soon as they have reasonable certainty that the financial results for the next period to be reported upon will differ by at least 20% from those of the previous corresponding period. Famous Brands is currently finalising its annual results for the twelve months ended 28 February 2017, which will be released on the Stock Exchange News Service (“SENS”) of the JSE on 29 May 2017. In the announcement published on the Stock Exchange News Service (“SENS”) of the JSE on 1 September 2016, shareholders were advised that the Company had acquired the entire issued share capital of Gourmet Burger Kitchen (GBK) Restaurants Limited in the United Kingdom(UK) (“the acquisition”) for an acquisition consideration of GBP120 million. GBK, which comprised 97 company-owned restaurants at the end of the review period, is widely known as the market leader in the premium burger category in the UK. Once-off non-operational items related to the acquisition impacted upon the Company’s results for the year under review as follows: - A realised derivative loss of R33 million on the call option that was utilised to hedge the purchase price of the acquisition. (As a result of the Rand strengthening against the British Pound since the date of the hedge, this realised derivative loss reversed the unrealised derivative gain of R141 million reported in the interim results announcement published on SENS on 24 October 2016); - A realised foreign exchange loss of R23 million arising from the unfavourable movement in the ZAR:GBP exchange rate between the acquisition payment date and the effective date; and - Professional fees related to the acquisition of R50 million. As previously disclosed in the interim results announcement on 24 October 2016, the Company realised an impairment loss of R20 million on the investment made in 2013 in UAC Restaurants Limited in Nigeria. In addition, finance costs increased compared to the prior corresponding period as a result of increased interest-bearing borrowings. Accordingly, headline earnings per share (“HEPS”) compared to the corresponding prior period are expected to be between 15% and 25% lower, being 460 cents per share and 408 cents per share (2016: 541 cents per share). Basic earnings per share (“EPS”) compared to the corresponding prior period are expected to be between 17% and 26% lower, being 439 cents per share and 389 cents per share (2016: 529 cents per share). HEPS, before non-operational items and increased interest costs arising from increased funding (as detailed above), compared to the corresponding prior period are expected to be between 10% and 24% higher, being 594 cents per share and 669 cents per share (2016: 541 cents per share). Basic EPS, before non-operational items and increased interest costs arising from increased funding, compared to the corresponding prior period are expected to be between 10% to 24% higher, being 594 cents per share and 670 cents per share (2016: 541 cents per share). The financial information on which this trading statement is based has not been reviewed or reported on by the Company’s external auditors. Midrand 16 May 2017 Sponsor The Standard Bank of South Africa Limited Date: 16/05/2017 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.