Trading Statement VLE – Value Group Limited Value Group Limited (Incorporated in the Republic of South Africa) Registration number: 1997/002203/06 Share code: VLE ISIN code: ZAE000016507 (“Value” or “the Group”) TRADING STATEMENT In terms of the Listings Requirements of the JSE Limited, a listed company is required to publish a trading statement as soon as it becomes reasonably certain that the financial results for the period to be reported on next will show a 20% or more difference from the previous corresponding period. The stagnant economy, which continues to be underpinned by poor growth rates, has proven to be very challenging with consumer demand, pricing and volume pressures affecting the wholesale and certain logistics divisions of the Group. Volume decline was however partially mitigated by management's strategic objectives of growing the customer base organically in addition to cross selling of services whilst improving operational efficiencies. These initiatives contributed positively to the Group’s results. The Group adopted IFRS16 effective 1 March 2019 whereby a right of use asset and an associated liability is raised for its operating leases. The nature of these expenses relates to a depreciation charge on the right of use assets and an interest expense on the lease liabilities. Previously, the Group recognised operating lease expenses on a straight-line basis over the term of the leases. The Group applied the full retrospective approach in its adoption of IFRS16 which requires the restatement of comparative financial information. Accordingly, the Group benefitted from a reduced interest cost in comparison to the previous restated period due to a reduction of the capital outstanding on lease liabilities. The Group also benefitted from a reduction in the effective tax rate due to the comparative period's inclusion of a tax under provision pertaining to a prior period and the receipt, in the current period, of a tax refund in respect of an allowance for energy efficiency savings. As a result of the cumulative effect of the above, shareholders are advised that headline earnings and basic earnings per share for the year ended 29 February 2020 will be 20% to 30% higher than that achieved in the restated corresponding period. This translates to headline earnings per share ranging from 90,7 to 98,3 cents per share in relation to the restated comparative period (75,6 cents per share) and basic earnings per share ranging from 87,8 to 95,2 cents per share in relation to the restated comparative period (73,2 cents per share). The previously published basic earnings per share was 86.8 cents per share and headline earnings per share of 89.2 cents per share. The financial results, on which this trading update has been based, have not been reviewed nor reported on by Value's auditors. The results for the year ended 29 February 2020 will be published on or about 12 June 2020. Johannesburg 25 May 2020 Sponsor: Investec Bank Limited Date: 25-05-2020 04:27:00 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.