Trading update for the 26-week period ended 31 December 2017 Truworths International Limited (Incorporated in the Republic of South Africa) (Registration number: 1944/017491/06) JSE Code: TRU NSX Code: TRW ISIN: ZAE000028296 TRADING UPDATE FOR THE 26-WEEK PERIOD ENDED 31 DECEMBER 2017 Truworths International Limited (the ‘Group’) announces that Group retail sales for the 26-week period ended 31 December 2017 (‘the current period’) increased to R10.3 billion relative to the R10.2 billion reported for the 26-week period ended 25 December 2016 (‘the prior period’). However, due to the inclusion of a 53rd week in the full 2017 financial period, the 26 weeks of the current period (i.e. 3 July 2017 to 31 December 2017) do not correspond with the 26 weeks of the prior period (i.e. 27 June 2016 to 25 December 2016). Compared to the directly corresponding 26-week period of the full 2017 financial period (i.e. 4 July 2016 to 1 January 2017) (‘the comparable prior period’*), retail sales for the current period increased by 1%. Account sales comprised 50% (2016: 50%) of Group retail sales for the current period, with cash sales growing by 1% and account sales remaining unchanged. Retail sales for Truworths (being the Group, excluding the UK-based Office segment) increased by 1% to R7.4 billion, with cash sales growing by 3% and account sales remaining unchanged relative to the prior period. Account sales comprised 69% of these retail sales (2016: 69%). Relative to the comparable prior period, Truworths retail sales for the current period increased by 2%. Trading space increased by 5% on the prior period (including the trading space of the recently acquired Loads of Living business). Like-for-like store retail sales decreased by 3%, while product deflation averaged 2% (2016: 16% inflation). Retail sales for the UK-based Office segment increased in Sterling terms by 1% to £162 million relative to the prior period’s £159 million, but on translation decreased to R2.8 billion from the prior period’s R2.9 billion because of Rand strengthening. Relative to the comparable prior period, Office retail sales for the current period decreased by 1% in Sterling terms. Trading space increased by 1% on the prior period, while product inflation averaged 4% (2016: 2%). Gross trade receivables in respect of the debtors book (Truworths, Identity and YDE) declined to R6.3 billion from R6.4 billion at the prior period-end. The decline in the book is mainly attributable to the improved collections experience since the prior period-end. The percentage of active account holders able to purchase at the end of the current period increased to 87% compared to 85% at the prior period- end and 82% at June 2017, while overdue balances as a percentage of gross trade receivables improved to 10% from 11% at the prior period-end. The Group’s diluted headline earnings per share (‘HEPS’) for the current period are expected to decrease by between 3% and 5% to between 372 cents and 380 cents relative to the diluted HEPS of 391.9 cents reported for the prior period. Relative to the comparable prior period’s diluted HEPS of 385.3 cents, diluted HEPS are expected to decrease between 1% and 3%. These results are inclusive of the non-comparable results of Loads of Living, the homeware business acquired by the Group with effect from 31 October 2017. The inclusion of the Loads of Living results has had no material impact on the Group results. The retail sales of Loads of Living for the current period included in the Truworths retail sales comprise cash sales of R21 million. Shareholders are advised that this trading update does not constitute an earnings forecast, that the financial information provided herein is the responsibility of the directors, and that such information has neither been reviewed nor reported on by the Group’s external auditors. The Group’s interim results for the 26-week period ended 31 December 2017 are scheduled for release on or about Thursday, 22 February 2018. * The comparable prior period retail sales and HEPS were calculated by deducting the relevant amounts in respect of the one-week period from 27 June 2016 to 3 July 2016 from, and adding the relevant amounts in respect of the one-week period from 26 December 2016 to 1 January 2017 to, the respective prior period amounts. The relevant amounts were extracted from the Group’s unaudited accounting records, and in the opinion of the directors, fairly reflect the comparable prior period retail sales and HEPS. A complete reconciliation of the comparable prior period results will be provided in the Group’s interim results announcement. 17 January 2018 Cape Town JSE Sponsor: One Capital Sponsor Services (Pty) Ltd NSX Sponsor: Merchantec Capital Namibia (Pty) Ltd Date: 17/01/2018 05:35:00 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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