Operational update SHOPRITE HOLDINGS LIMITED (Incorporated in the Republic of South Africa) Reg. No. 1936/007721/06 ISIN: ZAE000012084 JSE Share code: SHP NSX Share code: SRH LuSE Share code: SHOPRITE (“Shoprite Holdings” or “the Group”) OPERATIONAL UPDATE In the three months to September 2017, the Shoprite Group delivered an increase in turnover of 6.4%, marking the 65th consecutive quarter of growth for the company. RSA Supermarkets, the Group’s primary business, grew sales by 8.1% during a period which saw a sharp reduction in internal inflation, decreasing to only 0.9% for the quarter from the corresponding quarter’s 7.2%. This material drop was driven by significant price reductions of many basic commodity items such as maize meal and potatoes following supply improvements after the earlier drought conditions. Stripping out the effect of inflation, the real sales growth surpassed the prior year’s growth in the same quarter, which is a considerable achievement. The core customer base of its Shoprite chain in particular remained under pressure from rising costs and unemployment, but the Group managed to overcome this through strong price leadership and successful promotions, achieving further market share gains in the quarter. Facing many economic headwinds, the Group’s Non-RSA Supermarkets reported a negative turnover growth of -1.8% mainly due to the impact of lower commodity prices and the depreciation of the currencies of the three main countries where the Group trades on the continent. Sales growth in Angola, in particular, slowed significantly after extraordinary growth of 110% in the corresponding quarter. The smaller divisions also made a good contribution to Group turnover. The Furniture division, whilst continuing to labour under the effect of the amendments to the National Credit Act, reported increased sales of 8.9%. The OK Franchise division continues to gain market share and saw a growth of 10.0%, in line with the Group’s supermarket performance. Store openings are continuing as planned with 20 supermarkets and 6 furniture stores opened during this quarter. The current pace of growth echoes the prevailing challenging trading environment and must be viewed in context of the very strong growth of 15.7% in the corresponding period of the prior year. The deflationary environment is good news for consumers ahead of the important festive sales season, although consumer spending is difficult to predict, especially with further Rand weakness. In the medium term, however the Group remains optimistic about its operational strength and is making positive progress on its strategic priorities. Pieter Engelbrecht Marius Bosman Chief Executive Chief Financial Officer Tel 021 980 4000 Tel 021 980 4000 Date issued: 30 October 2017 Sponsor: Nedbank Corporate and Investment Banking Date: 30/10/2017 09:45:00 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.