Trading Statement And Other Matters Pepkor Holdings Limited (Previously Steinhoff Africa Retail Limited) (Incorporated in the Republic of South Africa) (Registration number: 2017/221869/06) Share Code: PPH ISIN: ZAE000247995 (“PEPKOR” or the “Company” or the “Group”) TRADING STATEMENT AND OTHER MATTERS 1. TRADING STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2018 In terms of the Listings Requirements of the JSE Limited (“JSE”), a listed company is required to publish a trading statement as soon as it becomes aware that a reasonable degree of certainty exists that the financial results for the financial period to be reported on next, being the year ended 30 September 2018 (“FY18”), will differ by at least 20% from the most recent financial results for the previous corresponding period, being the year ended 30 September 2017 (“FY17”). As reported at PEPKOR’s interim results during May 2018, the comparability of PEPKOR’s statutory results is impacted by the following two factors (“Comparability Factors”): 1. During FY17 PEPKOR issued 882 million shares. This included 132 million shares for the acquisition of Tekkie Town on 1 February 2017 and 750 million shares issued on 20 September 2017, shortly before the FY17 year end on 30 September 2017, upon PEPKOR’s listing on the JSE. This resulted in 3 450 million PEPKOR shares in issue compared to a weighted average number of shares of 2 678 million applied in the FY17 statutory earnings per share metrics. Should a weighted average number of shares of 3 450 million be applied to the FY17 reported earnings of R3 550 million and reported headline earnings of R3 576 million, FY17 statutory earnings per share is reduced by approximately 30 cents. Refer to table below. 2. As reported in PEPKOR’s interim results on 29 May 2018, FY18 results will be impacted by one-off costs pertaining to a provision for exposure on a corporate guarantee and associated loans. The total exposure was provided for during the time of the interim results and amounted to R500 million. These one-off costs of will negatively impact FY18 basic and headline earnings per share metrics by approximately 14 cents and is calculated by applying the total impact net of tax of R500 million to a weighted average number of shares of 3 450 million. Taking these factors into account, PEPKOR hereby advises that a reasonable degree of certainty exist that the Statutory Results will reflect the following: Statutory Results FY17 FY18 Statutory Results Statutory Results Reported Expected range cents cents % decrease Basic earnings per share (cents) 132.6 77.0 – 90.2 32 – 42 Headline earnings per share (cents) 133.6 77.8 – 91.2 32 – 42 For purposes of clarity FY17 Comparable Results are provided as follows: FY17 Comparable Results FY17 Impact of issuing FY17 R million Statutory Results 882 million Pepkor Comparable Results Reported shares Earnings 3 550 - 3 550 Headline Earnings 3 576 - 3 576 Weighted number of ordinary shares in issue 2 678 772 3 450 (millions) Basic earnings per share (cents) 132.6 (29.7) 102.9 Headline earnings per share (cents) 133.6 (29.9) 103.7 Any pro forma information included as part of the trading statement have been provided for illustrative purposes only, in order to provide shareholders with a better understanding of the impact of the Comparability Factors on Pepkor’s Statutory results. Because of its nature, the historic financial information may not fairly present PEPKOR’s financial position, changes in equity, results of operations or cash flows. This information is presented in accordance with the JSE Listings Requirements, the Guide on Pro Forma Financial Information issued by SAICA and the accounting policies applied in quantifying the information are consistent with PEPKOR’s accounting policies. This information is the responsibility of the board and were not reviewed or reported on by PEPKOR’s auditors. 2. SHOPRITE CALL OPTIONS Shareholders are referred to the Company’s previous announcement dated 15 December 2017 pertaining to the exercise of call option agreements with PIC, Lancaster, Titan and Lavender Sky (“call options”) to acquire approximately 23.1% economic interest in, and approximately 50.6% voting control of Shoprite, which call option agreements were subject to certain conditions precedent. It was confirmed then that the call options with Titan and Lavender Sky terminated and that the board would enter into discussions with the remaining parties, being the PIC and Lancaster, to assess the way forward. Following various discussions and based on senior counsel advice, the board confirms the termination of the call option agreements with the PIC and Lancaster. PEPKOR will therefore not acquire any economic nor voting interest in Shoprite as described in the Pre-Listing Statement. Parow 20 November 2018 Sponsor: PSG Capital Date: 20/11/2018 03:24:00 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. 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