Trading update to 26 August 2017 Mr Price Group Limited Registration number 1933/004418/06 Incorporated in the Republic of South Africa ISIN: ZAE 000026951 JSE share code: MRP ("Mr Price" or "the company" or "the group") TRADING UPDATE TO 26 AUGUST 2017 Shareholders are advised that, in the first four months (18 weeks to 5 August 2017) of the financial year ending 31 March 2018, retail sales grew by 6.2% to R6.5bn as follows: Total Comparable RSP Sales Store Sales Units Inflation Apparel Segment MRP 9.0% 7.0% 6.2% 3.0% MRP Sport 2.1% -4.5% 0.3% 1.8% Miladys 13.5% 12.3% 3.6% 9.5% 8.7% 6.4% 5.6% 3.2% Home Segment MRP Home -2.1% -4.1% -2.8% 1.0% Sheet Street 1.7% 0.5% -2.9% 4.8% -1.0% -2.7% -2.8% 2.1% Group 6.2% 4.0% 3.5% 2.9% As reported at the year-end results presentation in May 2017, given the current low growth economy and resultant poor retail environment, the most significant near-term opportunity is to regain lost market share in the two divisions, MRP Apparel and Miladys, which underperformed in the previous financial year. Despite intensified competitor promotional activity, our focused efforts are proving successful. The combined South African sales growth of MRP Apparel and Milady’s from April to June 2017 was 10.1%, which compares favourably to Type D retailers (textiles, clothing, footwear and leather goods), as reported by STATS SA, which grew 4.8% over the same period. With their improved trading and inventory performance, these two divisions are expected to contribute positively to the group’s anticipated improvement in gross profit margin for the first half ending 30 September 2017. The merchandise offers in MRP Sport and the homewares chains are a more discretionary buy. Despite constrained consumers reducing their spend in these categories, our level of execution and value proposition remains strong. Online sales were 6.4% higher. MRP Sport and MRP Home growth tracked physical store sales growth, while MRP Apparel recorded growth of 20.1%. Group cash sales increased 6.3%, constituting 82.6% (LY: 82.4%) of total sales and credit sales increased 5.4%. Weighted average trading space was 2.6% higher. Other income grew by 3.4%, to R372.0m. Debtors’ interest and fees grew 7.7% and insurance revenue 18.0%. The temporary slowdown in cellular revenue growth (-8.1%) resulting from a focus on process improvements and product mix changes is expected to have a positive impact on profitability. Total retail sales and other income grew 6.0% to R6.9bn. Retail sales for the three-week period from 6 to 26 August 2017, not included in the analysis above, were up 6.8% and comparable store sales 4.8%. Divisional performance was similar to the table reflected above. The information contained in this announcement has not been reviewed and reported on by the company's external auditors. Durban 1 September 2017 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 01/09/2017 07:06:00 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.