SHOPRITE HOLDINGS LIMITED - Operational update

Operational update

SHOPRITE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration no. 1936/007721/06
ISIN: ZAE000012084
JSE share code: SHP
NSX share code: SRH
LuSE share code: SHOPRITE
(“The Group”)

OPERATIONAL UPDATE

The year ended 2 July 2017 had 52 weeks compared to 53 weeks for the year ended 3 July
2016.

The Shoprite Group increased total turnover by a healthy 10.4% to about R140.7 billion for
the 12 months to June 2017 with like-for-like turnover growth improving by 5.8%. Turnover
for the 52-week period compared to the 53 weeks of the prior year increased by 8.2%.

The challenging trading conditions in South Africa continued in the second half of the year
and the South African supermarket operation increased sales by 10.1% (7.7% if compared
to 53 weeks). On a like-for-like basis, sales increased by 6.9%. Internal inflation slowed to
5.9% for the period from the 7.4% in December as the impact of the drought began to ease
and compares to 3.9% in the prior year.

The Group’s non-RSA supermarkets recorded sales growth of 13.5% (11.7% if compared to
53 weeks) mainly due to the impact of lower commodity prices and the devaluation of certain
currencies. This had a material impact on prices of imported products during the latter part of
the year. On a like-for-like basis, sales increased by 1%. Taken at constant currencies, sales
grew by 33.8% (31.6% on a 53-week basis). The fourth quarter in particular is where the
previous high base in Angola’s sales impacted growth for the year.

The Group’s furniture division still faced industry challenges around affordability requirements
of the National Credit Act and subdued durable purchases, with the result that sales grew by
6.2% for the period (4.3% if compared to 53 weeks).

The Other Operating Segments achieved growth of 7.7% (7.0% if compared to 53 weeks).

The above financial information is the responsibility of the directors of Shoprite Holdings Ltd
and has not been reviewed or reported on by Shoprite Holdings’ auditors. Constant currency
information as well as comparisons to pro forma 52-week financial information for the
previous year has been prepared for illustrative purposes only. The consolidated financial
results for the review period will be published on or about Tuesday, 22 August 2017.

Impact of the Group’s pro-forma constant currency disclosure.

The Group discloses unaudited constant currency information in order to indicate the Group’s
underlying non-RSA businesses performance in terms of sales growth, excluding the effect
of foreign currency fluctuations.
To present this information, current period turnover for entities reporting in currencies other
than ZAR are converted from local currency actuals into ZAR at the prior year’s actual
average exchange rates on a country-by-country basis.

The table below sets out the percentage change in turnover, based on the actual results for
the current financial year, in reported currency and constant currency for the following major
currencies:

                            Reported Currency            Constant Currency


   -   Angola kwanza               49.23 %               80.87   %
   -   Nigeria naira               -6.98 %               50.24   %
   -   Zambia kwacha                1.01 %               0.67    %
   -   Mozambique metical         -16.91 %               22.27   %


Impact of the previous year’s 53rd week on the 2017 financial year-end reporting period.

The Group has prepared unaudited pro-forma 52-week financial information for the period
ending 3 July 2016. It is appropriate and good practice to report the pro-forma information to
facilitate comparisons between the current year’s 52 weeks and the prior year’s results
excluding the 53rd week.


Pieter Engelbrecht                 Marius Bosman
Chief executive officer            Chief financial officer
Tel 021 980 4000

Date issued:                       18 July 2017

Sponsor:                           Nedbank Corporate and Investment Banking

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