Update on Covid-19 and the impact on the Massmart Group Massmart Holdings Limited (Incorporated in the Republic of South Africa) Company registration No. 1940/014066/06 JSE Code: MSM ISIN: ZAE 000152617 ("Massmart" or the "Company" or “the Group”) UPDATE ON COVID-19 AND THE IMPACT ON THE MASSMART GROUP Massmart supports the measures that the South African government has implemented to contain the Covid-19 virus. We have, in line with the regulations and subsequent amendments published in the Government Gazettes registered the following Massmart formats with the Department of a Trade and Industry to enable trading activity during the lockdown; Makro, Wholesale Cash & Carry Stores, Shield Buying Group, Game and Cambridge Food. These stores will trade in basic and essential goods in alignment with lockdown regulations as they pertain to essential retail activity. We have implemented various initiatives to ensure customer and associate safety whilst also taking steps to optimize supply of basic and essential goods to support trading in these formats during the lockdown. Similarly, our online platforms will process and fulfil customer orders of basic and essential product. Builders and Game are processing the online sale of durable goods for delivery once the lockdown has been lifted Our Builders formats, our non-essential product distribution network, and our home and regional offices (with the exception of essential services required to maintain business continuity) will be closed during the lockdown. Almost all home and regional office associates are working remotely. This protocol has been thoroughly stress tested and is being closely managed in terms of clearly defined work from home protocols. The closure of South Africa's borders to neighbouring countries has caused a degree of disruption to our supply chain to stores outside South Africa, that account for approximately 10% of Group sales. These stores have relatively higher levels of safety stock that are likely to meet immediate term supply needs. Thereafter we will be reliant on support from existing local suppliers in the affected markets. While the effects of the COVID-19 virus on our business are continually being reassessed, the full impact of the 21-day nationwide lockdown announced on 23 March 2020 remains unknown. The high level of uncertainty, due to the unpredictable outcomes of this disease, complicates the estimation of the financial effects of the outbreak and as a result it could materially impact the results of the Group negatively and the assumptions applied in our assessment of provisions and impairment considerations. With the support of our majority shareholder, Walmart, we have concluded constructive discussions with our funders and are satisfied that we have sufficient funding in place during the lockdown period. Top leadership focus has now turned to post-lockdown recovery planning. We are fortunate that our cost containment initiative, presented at the Investor Strategy Briefing on 30 January 2020 is at an advanced stage and is well poised to deliver savings. The project team will continue work on this initiative during the lockdown. The lockdown has also presented opportunity to deploy selected Builder's merchandise specialists to assist with the review and reinvigoration of the Game merchandise assortment which will be beneficial to our efforts to reset the Game format. 30 March 2020 Sponsor JP Morgan Equities South Africa (Pty) Ltd Date: 30-03-2020 05:23:00 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.