Trading Statement And Update For The Year Ended 30 September 2018 Pioneer Food Group Limited Incorporated in the Republic of South Africa Registration number: 1996/017676/06 Share code: PFG ISIN code: ZAE000118279 ("Pioneer Foods" or the “Company" or the “Group") TRADING STATEMENT AND UPDATE FOR THE YEAR ENDED 30 SEPTEMBER 2018 Trading statement The following disclosure is made in accordance with Section 3.4 (b) of the Listings Requirements of the JSE Limited. Pioneer Foods advises that for the year ended 30 September 2018, a reasonable degree of certainty exists that operating profit and earnings will be as follows: 30 September 30 September 2018 30 September 2018 2017 expected range expected % change actual R19 868 million - R20 456 Revenue R19 575 million 1.5% - 4.5% higher million Operating profit R1 549 million - R1 665 before items of a R1 156 million 34% - 44% higher million capital nature Adjusted operating profit before items of R1 570 million - R1 698 R1 276 million 23% - 33% higher a capital nature (note million 1) Headline earnings per 410.1 cents 541.3 cents - 582.3 cents 32% - 42% higher share Adjusted headline earnings per share 442.2 cents 548.3 cents - 592.5 cents 24% - 34% higher (note 1) Earnings per share 390.3 cents 573.7 cents - 612.8 cents 47% - 57% higher 1. Adjusted for the IFRS 2 share-based payment charge relating to the Phase 1 (2006) B-BBEE transaction and the effect of the related hedge. An adjustment was also made in September 2017 for specific once-off merger and acquisition costs (R17.6 million). Trading update Pioneer Foods delivered positive revenue and volume growth from existing and acquired businesses at supportive price points whilst maintaining cost discipline. The consequent procurement benefits and efficiency gains enhanced operating profit over a weak corresponding period. Overall revenue growth was positive notwithstanding the material soft commodity deflation during the period. Trading conditions continue to reflect a constrained demand environment as consumers are faced with increased inflationary pressures. This was more prevalent in the second half as rising input costs were exacerbated by the weakening exchange rate and persistent oil price increases. Increasing competitor tensions, weaker consumer demand and the resultant inability to fully recover input cost inflation characterises the current trading environment. Pioneer Foods is due to release its full year results for the year ended 30 September 2018 on or about 19 November 2018. The financial information contained in this trading update, has not been reviewed or reported on by the Group’s external auditors. Tyger Valley 4 October 2018 Sponsor: PSG Capital (Pty) Ltd Date: 04/10/2018 02:10:00 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.