Voluntary Sales Update and Notification of Site Visit and Related Information Available on the Italtile Website ITALTILE LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1955/000558/06) Share code: ITE ISIN: ZAE000099123 (“Italtile” or “the Group”) __________________________________________________________________________________ VOLUNTARY SALES UPDATE AND NOTIFICATION OF SITE VISIT AND RELATED INFORMATION AVAILABLE ON THE ITALTILE WEBSITE __________________________________________________________________________________ Management is hosting an investors’ visit to Italtile’s facilities today, and as part of the presentation, will provide a sales update for the 19 weeks from 1 July to 10 November 2017 (“the Review Period”), as discussed below. Please note that in the interests of equal dissemination of information, other information conveyed to investors on this site visit will be available on the Group’s website (www.italtile.com) from 09:30 today. Following the acquisition of Ceramic Industries Limited (“Ceramic”) with effect from 2 October 2017, the Group holds a 95.47% stake in Ceramic and an effective 71.54% in Ezee Tile Adhesive Manufacturing Proprietary Limited (“Ezee Tile”). Accordingly, this sales update includes the contribution of both businesses for the period from 2 October to 10 November 2017. Sales related to Ceramic and Ezee Tile are referred to as “manufacturing” sales to distinguish them from “retail” sales reported by Italtile’s retail brands (CTM, Italtile Retail and TopT). Total consolidated system-wide turnover for the Review Period was R2.8 billion. System-wide turnover is defined as the aggregate of the Group’s consolidated turnover (total sales by Group- owned entities and corporate stores, excluding sales from owned supply chain businesses to corporate stores) and the turnover of franchisees of the Group. Group-owned entities’ sales include sales of Ceramic and Ezee Tile from 2 October 2017. Their contribution to total system-wide turnover for the specified period was R561 million (including sales to corporate stores). Like-on-like retail store turnover declined by 5.4% compared to the previous corresponding period, with average selling price deflation estimated at 1%. Manufacturing sales for the period 2 October to 10 November 2017 grew by 8.5% compared to the previous corresponding period, with average selling price inflation estimated at 1.9%. Manufacturing sales for the Review Period grew by 1.8% compared to the previous corresponding period. The weak trading conditions experienced in the second half of the prior financial year persisted during the Review Period, with subdued investor sentiment and constrained consumer discretionary spend remaining key features. In this context, management’s primary focus has been on leveraging opportunities for growth within the business by enhancing competencies and efficiencies, and further improving the working capital position through intensified control of inventory as well as overhead costs. Aligned to this has been the drive to offer a customer-centric shopping experience which constantly delights customers through improved service, value, convenience, product range and in-store innovations. While homeowners across the income spectrum in general invested less freely in their homes than in prior years, CTM’s middle income market, specifically, experienced more severe financial pressure than other segments, as reflected in the brand’s lower sales for the period. TopT continued to report double-digit like-on-like sales, although there has been a slow-down from former robust growth levels. At the upper-end of the market, Italtile Retail reported a slight recovery, with homeowners seeming to overcome their pessimism and resume investment in their properties, albeit not at previous levels. One Italtile Retail, one CTM and six TopT stores were opened during the period, however their full contribution to revenue will only be reflected in the following six months. By the end of November 2017, the Group plans to have opened a total of 11 TopT stores. The above information has not been reviewed and reported on by the Group’s external auditors. Johannesburg 16 November 2017 Sponsor Merchantec Capital Date: 16/11/2017 07:45:00 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.