Reviewed Annual Results For The Year Ended 30 September 2020 Pepkor Holdings Limited (Incorporated in the Republic of South Africa) (Registration number: 2017/221869/06) Share code: PPH Debt code: PPHI ISIN: ZAE000259479 (“Pepkor”, the “company” or the “group”) REVIEWED ANNUAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2020 Pepkor achieves substantial market share gains during the COVID-19 pandemic The Pepkor group achieved an exceptional performance during a challenging year as COVID-19 and the resultant lockdown protocols exacerbated an already weak consumer retail market. Despite having lost approximately R5.0 billion in revenue through COVID-19 trading restrictions, the group managed to achieve positive revenue growth for the year which is an outstanding result. The group’s defensive discount and value positioning has been an advantage during the tough economic conditions. Consumer focus on less discretionary and more affordable products and services resulted in substantial market share gains. Pepkor’s strong corporate culture and execution ability ensured a swift response to the COVID-19 crisis with stores and the supply chain reacting very quickly to the challenging environment. The group’s expansive store footprint appealed to customers who chose to shop in more convenient locations closer to home. The group adopted IFRS 16 – Leases during the current year, using a modified retrospective approach with no restatement of prior period reported results. This had a material impact on the group’s statutory results for the current period. To form a meaningful assessment of group performance, shareholders and noteholders are referred to Pepkor’s full results announcement, available on the Pepkor website at www.pepkor.co.za. Group highlights for the year - Revenue from continuing operations increased by 3.6% to R63.7 billion - Market share growth of 240 basis points in clothing, footwear and homeware products as reported by the Retailers’ Liaison Committee - Cash generated of R9.2 billion (excluding IFRS 16) - Net debt reduced by R6.9 billion (excluding IFRS 16) - 230 new stores opened Statutory results Results including IFRS 16 excluding IFRS 16 Operating profit before 0.3% decrease to 18.4% decrease to capital items R6.5 billion R5.3 billion Headline earnings per 32.3% decrease to 23.7% decrease to share 65.5 cents 73.9 cents Headline earnings per 34.4% decrease to 21.0% decrease to share from continuing 62.6 cents 75.4 cents operations Earnings per share >100% decrease to >100% decrease to a loss of 86.2 cents a loss of 73.6 cents Earnings per share from >100% decrease to >100% decrease to continuing operations a loss of 80.3 cents a loss of 62.5 cents Earnings were impacted by the impairment of goodwill and intangible assets of R4.8 billion (as announced on 6 November 2020). The impairment is a result of the impact of COVID-19 and constrained future growth expectations in PEP Africa, Speciality, Tekkie Town and the JD Group, in addition to an increase in the weighted average cost of capital. As communicated during the group’s interim results published on 27 May 2020, no dividend is declared for the year ended 30 September 2020 (20.9 cents in the prior year), based on heightened levels of prudence applied by the board and the focus on liquidity preservation and allocation of resources. Performance and outlook Pepkor’s sales performance since the relaxation of lockdown measures has been excellent and has underscored the strength of its business model and market positioning. The group has gained significant market share in the period since May 2020. The strong sales momentum continued into the months of October and November 2020 with double-digit like-for-like sales growth reported in PEP, Ackermans, Speciality and the JD Group. Providing the South African consumer with affordable products has become even more important in the current environment and the group is ideally positioned to execute on this. While the evolution of the COVID-19 pandemic and its economic impact in the near to medium term remains uncertain, there is an expectation that the toughest times for the economy and customers are still to come as unemployment increases and special grants and other benefits are reduced. Our view on the future remains cautious and conservative. Cash generation has been excellent and the balance sheet has been significantly strengthened which provides security and the ability to capitalise on potential opportunities that may arise in the market. Significant progress was made in restructuring and consolidating the group’s portfolio of operations to enhance efficiency and profitability levels. Pepkor is well positioned to continue gaining market share in a future constrained retail environment. The group will continue to entrench its discount and value positioning through providing affordable products to the consumer as it stands to benefit from consumers in search of value. The resolve, resilience and loyalty shown by the group’s employees and customers during one of the most challenging periods in history is most encouraging. The strong and healthy corporate cultures of the group and its retail brands have helped sustain the business during this trying time and resulted in a commendable, market-leading performance for the year. The support and understanding from our loyal, long-standing suppliers and business partners have been invaluable, and similarly we value the support from our investors. The group’s operations are prepared for changes in consumer behaviour with accelerated progress in e-commerce and fintech capability, supplemented by its convenient and accessible retail store footprint. The group continues to identify opportunities for store expansion driven mainly by PEP and Ackermans, in addition to the development of new retail formats. In terms of new markets, exciting opportunities exist in the adult wear market, while the group will also consider other expansion opportunities. Results webcast A live webcast of the results presentation will be broadcast at 12:00pm (SAST) on 23 November 2020. Webcast Registration link: https://www.corpcam.com/Pepkor23112020 Short-form announcement This short-form announcement (this announcement) is the responsibility of the directors. It should be noted that this announcement is only a summary of the information in the detailed announcement and therefore does not contain full or complete details. The reviewed condensed consolidated financial statements for the year ended 30 September 2020 (“Reviewed Results”) have been reviewed by Pepkor’s auditor, PricewaterhouseCoopers Inc., who issued an unmodified review conclusion. The unmodified review opinion forms part of the Reviewed Results which can be accessed via the links below. Any investment decisions by investors and/or shareholders should be based on the information in the detailed announcement. The full announcement can be accessed at: https://senspdf.jse.co.za/documents/2020/jse/isse/pphe/FY20.pdf Copies of the full announcement are also available for viewing on the company’s website at: https://www.pepkor.co.za/wp-content/uploads/2020/11/Pepkor-reviewed-results-for-the-year- ended-30-September-2020.pdf, or may be requested in person at the company’s registered office or the office of the equity sponsor, at no charge, during office hours. Parow 23 November 2020 Equity sponsor PSG Capital Debt sponsor Rand Merchant Bank (A division of FirstRand Bank Limited) Date: 23-11-2020 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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