Disclosure Of Disposal Of Securities KAP INDUSTRIAL HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration Number 1978/000181/06) Share code: KAP ISIN: ZAE000059564 (“KAP” or “the Company”) DISCLOSURE OF DISPOSAL OF SECURITIES In accordance with section 122(3)(b) of the Companies Act, No. 71 of 2008 as amended, and in accordance with paragraph 3.83(b) of the JSE Limited Listings Requirements, shareholders are hereby advised that the Company has received formal notification in the prescribed form that: Ainlsey Holdings Proprietary Limited (“Ainsley”), a wholly owned indirect subsidiary of Steinhoff International Holdings N.V. (“Steinhoff”) has disposed of ordinary share of the Company such that the total interest in the ordinary shares of the Company now held by Ainlsey amounts to 25.92% (previously 42.72%) of the total issued ordinary share capital of the Company. In this regard, shareholders are referred to the closing announcement published by Steinhoff on 13 March 2018 in terms of which it confirmed that Steinhoff had successfully placed 450 000 000 ordinary shares in KAP through an accellerated bookbuild process. The board of directors of KAP records its appreciation to Steinhoff for the responsible manner in which this disposal of shares was concluded. Whilst Steinhoff will retain a 25.92% interest in KAP, the participation in the disposal process included a broad spread of retail, long-only and hedge fund investors, which will provide increased liquidity to the market and the opportunity for a broader investor base to participate in the future of KAP. Stellenbosch 15 March 2018 Sponsor PSG Capital Date: 15/03/2018 12:05:00 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.