Trading update and trading statement for the year ended 31 March 2018 Lewis Group Limited Registration Number: 2004/009817/06 Share Code: LEW ISIN Code: ZAE 000058236 TRADING UPDATE AND TRADING STATEMENT FOR THE YEAR ENDED 31 MARCH 2018 TRADING UPDATE Lewis Group delivered an improved sales and collections performance for the 12 months ended 31 March 2018 (“the year”), despite the continued challenging economic conditions and adverse impact of the National Credit Act’s affordability assessment regulations. The trading results for the newly acquired United Furniture Outlets (“UFO”) chain have been incorporated for the two months since acquisition. Merchandise sales for the fourth quarter increased by 21.7% over the corresponding period (9.0% higher, excluding UFO), resulting in 9.9% growth for the year (7.4% growth excluding UFO). Comparable stores sales grew by 11.2% for the quarter and 10.1% for the year. After declining by 3.2% in the first half, revenue increased by 1.8% in the second half to reflect a year-on-year decline of 0.6%, with the main impact from a 9.8% reduction in Other Revenue. The reduction in Other Revenue is largely due to declining annuity streams resulting from lower credit sales in prior years, compounded by the implementation of the prescribed maximum credit life insurance rates in August 2017 capping credit life premium income. The group’s gross profit margin at 41.4% is at the upper end of the published target range. The increase in operating costs, excluding debtor costs, was contained below the rate of inflation. Debtor costs benefitted from improved collections in the stabilising credit environment and reduced by 10.1% over the year. TRADING STATEMENT As a result of the above factors, shareholders are advised that the group anticipates earnings for the period to be as follows: 12 months ended 12 months ended 31 March 2017 31 March 2018 Reported Expected range Earnings per share 403.5 cps 290.5 cps – 314.7 cps 22% to 28% lower Headline earnings per share 400.1 cps 288.1 cps – 312.1 cps 22% to 28% 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 results for the period will be released on SENS on 23 May 2018. Cape Town 18 May 2018 Sponsor: UBS South Africa (Pty) Ltd Date: 18/05/2018 04:00:00 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.