Chairman’s Comment On Trading Conditions AVI LIMITED Registration number 1944/017201/06 Share Code: AVI ISIN: ZAE000049433 ("AVI" or “the Company”) CHAIRMAN’S COMMENT ON TRADING CONDITIONS At the annual general meeting of AVI held this morning, Gavin Tipper provided an update on trading conditions. Comparisons to prior year results were made on a like-for-like basis, before taking reclassifications in terms of the new revenue and lease accounting standards, which were adopted with effect from 1 July 2018, into account. “Group revenue for the first quarter ended September 2018 increased 2,5% over the same period in the prior year, with the increase mostly due to volume growth in several categories as well as improved export revenue in I&J in line with the weaker Rand. Sales growth in a number of categories was limited by the continuing constrained consumer environment and disruptions in several of our major customer’s distribution operations. These disruptions were largely resolved during October and the Group has seen improved sales in the food and beverage businesses as retailer stock levels normalise. The consolidated gross profit margin was in line with last year with the Rand cost of key imported raw materials protected by the Group’s consistent hedging practices. The weaker Rand experienced over the last few months is likely to result in increased cost pressure later in the financial year, which the Group will seek to offset through ongoing cost management as well as selling price increases where appropriate. Results for the remainder of the 2019 financial year remain materially dependent on sound consumer demand over the festive season and through the second semester." The information above has not been reviewed and reported on by the Group’s auditors. Illovo 1 November 2018 Sponsor The Standard Bank of South Africa Limited Date: 01/11/2018 12:10:00 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.