Voluntary Trading Update and Statement for the Six Months ended 31 December 2019 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 2019 The semester’s trading environment remained difficult with weak consumer spending constraining sales volumes in many of our categories. This was exacerbated by competitor discounting in some categories and the impact of Black Friday, which both diverted consumer spending and constrained December sales. Significant load shedding in early December exacerbated a challenging trading month, particularly for the retail brands. Group revenue for the semester was 1,0% higher than for the same period last year. The consolidated gross profit margin was well protected and costs were carefully managed resulting in operating profit being marginally higher than in the same period in the prior year. The food and beverage businesses performed well in a difficult environment growing operating profit ahead of inflation. This was offset by decline in the personal care and footwear brands which continued to experience volume pressure in some categories, including weaker sales for Spitz in the material December trading month. Cash flows remained strong through the semester. Net finance costs were higher than last year due to higher average borrowing levels notwithstanding lower borrowings at the end of the semester, while earnings from I&J’s joint venture with Simplot decreased materially due to the sale of the joint venture interest as well lower earnings to the date of sale. Capital items increased significantly due mainly to the disposal of I&J Holdings Proprietary Limited’s interest in its joint venture with Simplot Australia Proprietary Limited, which was announced on 7 November 2019. This transaction resulted in a capital gain of approximately R370 million. The weighted average number of shares in issue during the period was 0,3% 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. 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 2019 are expected to decrease by between 3% and 5% over the comparable period in the prior year, translating into a decrease from last year’s 305.5 cents to a range of between 290 and 296 cents per share; and - Consolidated earnings per share for the six months ended 31 December 2019, including capital gains and losses, are expected to increase by between 35,0% and 37,0% over the comparable period in the prior year, translating into an increase from last year’s 303,2 cents to a range of between 409 and 415 cents per share. It is expected that AVI will release its results for the six months ended 31 D e c e m b e r 2019 on or about 9 March 2020. The information above has not been reviewed and reported on by the Group’s auditors. Illovo 23 January 2020 Sponsor The Standard Bank of South Africa Limited Enquiries +(27) 11 502 1300 Date: 23-01-2020 03:10:00 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.