Trading Update And Trading Statement For The Six Months Ended September 2017 Lewis Group Limited Registration Number: 2004/009817/06 Share Code: LEW ISIN Code: ZAE 000058236 ("Lewis" or "the Company" or "the Group") TRADING UPDATE AND TRADING STATEMENT FOR THE SIX MONTHS ENDED SEPTEMBER 2017 TRADING UPDATE The performance for the six months ended 30 September 2017 (“the period”) reflects the challenging economic and consumer environment in which the business is trading and the impact of these conditions on the Group’s lower to middle income target customers. Trading conditions have been compounded by the ongoing impact of the National Credit Act’s affordability assessment regulations which are restricting access to credit in South Africa and limiting the Group’s credit sales. Merchandise sales reflected a steady improvement over the period increasing by 5% on last year, with comparable stores sales up 7.3%. Revenue declined by 3.2% mainly as a result of the 9.8% decline in Other Revenue over the corresponding prior period. This decline is largely the result of lower credit sales in prior periods which negatively affects the annuity income streams. The Group’s gross profit margin strengthened by 40 basis points to 40.9% and is in line with management expectation. Debtor costs benefitted from improved collections and reduced by 11.5%. This reflects an improvement from the 6% increase reported at the 2017 year end. TRADING STATEMENT Shareholders are advised that as a result of the adverse trading conditions outlined above the Group anticipates earnings for the period to be as follows: Six months ended Six months ended 30-Sep-16 30-Sep-17 Reported Expected range Earnings per share 196.6 cps 161.2 cps – 173.0 cps 12% to 18% lower Headline earnings per share 194.8 cps 159.7 cps – 171.4 cps 12% to 18% lower The financial information contained in this announcement has not been audited, reviewed or reported on by the Group’s external auditors. The Group’s interim results for the period are scheduled to be released on SENS on or about 13 November 2017. Cape Town 27 October 2017 Sponsor:UBS South Africa (Pty) Ltd Debt Sponsor: Absa Bank Limited (acting through its Corporate and Investment Bank division) Date: 27/10/2017 07:10:00 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.