Trading update 1 July 2018 to 30 September 2018 Distell Group Holdings Limited (Incorporated in the Republic of South Africa) (Registration number: 2016/394974/06) Share code: DGH ISIN: ZAE000248811 ("Distell" or “the Company” or “the Group”) TRADING UPDATE 1 JULY 2018 TO 30 SEPTEMBER 2018 During the first three months (1 July 2018 - 30 September 2018) of the new financial year ending 30 June 2019, Distell recorded flat Group revenue growth with single-digit volume decline compared to the corresponding period in the previous financial year. In South Africa, tough trading conditions persist where consumer disposable income remains constrained due to the rising cost of living. Lower volumes were recorded compared to Q1 FY 2018 due to a price increase taken in October 2017. We have however seen a positive revenue effect across the portfolio due to further pricing decisions taken in Q1 FY 2019. This needs to be balanced appropriately with market share ambitions in the midst of a constrained consumer environment. Growth in the ready-to- drink (RTD) segment continues to take share from beer which we will continue to leverage and drive focused investment. Revenue trends from mainstream and premium wine continued in Q1 FY 2019 without the effects from the drought being experienced yet. Revenues from spirits remain stable and we will aim to capitalize further on trends in the segment and our strong position in brandy and single grain whiskey, whilst we build on our FY18 vodka performance. We continue to invest behind core brands and execution to deliver an increased customer footprint and market share gains. We anticipate a stronger Q2 FY 2019 given festive season demand and cyclical customer orders over this period. In the rest of Africa we achieved excellent volume and revenue growth, led by Kenya, Botswana, Zambia, Mozambique and Zimbabwe. All three categories contributed to the growth, with a standout performance from the mainstream spirits category. Increased commodity pricing should allow commodity-producing countries to improve meaningfully, while investment-led growth will benefit many of the non-commodity-producing countries. We expect our Angolan operations to capitalize on an improved environment and see our Kenyan operations to continue on previous trends. We will continue to expand our local production and distribution footprint in Africa by further investments, alongside select joint-venture opportunities. In the international markets, the UK, Taiwan and Nordic countries are showing higher volume and revenue growth, with the global trading environment remaining highly competitive and trade tensions at heightened levels. Scottish Leader and Drostdy-Hof was able to achieve good growth, recovering from the volume losses of the previous year. We will continue to invest behind select International markets whilst we refine our operating model and portfolio in these regions. The outlook for economic growth remains mixed with varying levels of political and economic risks in many of the markets in which Distell trades. The Group continues to defend and grow its domestic market share, integrate its new African route-to-market acquisitions while creating a more agile and efficient business which aim to enhance margins going forward. The abovementioned information does not constitute an earnings forecast and have not been reviewed and reported on by the Company’s external auditors. Stellenbosch 24 October 2018 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 24/10/2018 11:36:00 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.