Voluntary Trading Update And Statement For The Six Months Ended 31 December 2017 AVI Limited (Incorporated in the Republic of South Africa) (Registration number 1944/017201/06) Share code: AVI ISIN: ZAE000049433 (“AVI” or “the Group”) VOLUNTARY TRADING UPDATE AND STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2017 As anticipated, revenue growth for the first semester was constrained by a challenging trading environment. Group revenue rose 2,3% with the impact of selling price increases taken during the prior financial year partially offset by declines in sales volumes in some key categories. The consolidated gross profit margin improved with the accumulated pressure on imported costs ameliorated by improved exchange rates compared to last year. In addition, selling and administrative expenses increased at a rate below inflation, benefitting from savings from restructuring activity in the second half of the last financial year. Spitz achieved a record December profit with volume growth supported by the core brands and the stronger Rand resulting in some recovery of gross profit margin versus the prior year. I&J benefitted from the non- recurrence of the unprotected strike at its fishing operations in August 2016, which resulted in an increase in operating profit notwithstanding the impact of the stronger Rand on export revenue. Considering the demand environment, operating profit growth of 8,7% for the semester, coupled to an increase in operating profit margin, is pleasing. Exchange rates secured for the remainder of the financial year are at better levels than last year, underpinning AVI’s opportunity to manage sales volumes and profit margins in the constrained environment and grow earnings in the second semester, provided that consumer demand is reasonable. The weighted average number of shares in issue during the period was 0,8% higher than in the same period last year due to the issue of new shares in terms of the Group’s various share incentive schemes, including the black staff empowerment share scheme. The following disclosure is made in accordance with Section 3.4 (b) of the Listings Requirements of the JSE Limited: - Consolidated headline earnings per share for the six months ended 31 December 2017 are expected to increase by between 7% and 8% over the comparable period in the prior year, translating into an increase from last year’s 302.9 cents to a range between 324 and 327 cents per share; and - Consolidated earnings per share for the six months ended 31 December 2017, including capital gains and losses, are expected to increase by between 6% and 7% over the comparable period in the prior year, translating into an increase from last year’s 305,4 cents to a range between 324 and 327 cents per share. It is expected that AVI will release its results for the six months ended 31 December 2017 on or about 12 March 2018. The information above has not been reviewed and reported on by the Group’s auditors. Illovo 23 January 2018 Sponsor The Standard Bank of South Africa Limited Enquiries +(27) 11 502 1300 Date: 23/01/2018 03:30:00 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.