Sales update for the six months ended 31 December 2017 Spur Corporation Limited (Incorporated in the Republic of South Africa) (Registration number 1998/000828/06) Share code: SUR ISIN: ZAE 000022653 (“Spur Corporation” or “the group”) SALES UPDATE FOR THE SIX MONTHS ENDED 31 DECEMBER 2017 Franchised restaurant sales for the group declined by 2.6% to R3.7 billion in the six months to December 2017 (“the period”), as economic conditions deteriorated in most of the markets in which Spur Corporation trades. In South Africa, franchised restaurant sales declined by 3.0%, while sales from international restaurants increased by 1.3% in Rand terms and by 3.2% on a constant exchange rate basis. Franchised restaurant sales for the six months ended 31 December 2017 Total restaurant Existing sales restaurant sales (% change) (% change) Spur Steak Ranches (9.3) (10.8) Pizza and Pasta (Panarottis and 6.6 1.9 Casa Bella) Seafood (John Dory’s Fish Grill 1.8 (7.4) Sushi and Monterrey) Captain DoRegos (12.2) (13.9) The Hussar Grill 24.1 11.1 RocoMamas 37.5 22.2 Total South African operations (3.0) (6.6) Total international operations 1.3 (6.6) Total group (2.6) (6.6) Locally, 35 new outlets were opened and 13 closed during the period, while five outlets were opened and five closed internationally. Chief executive, Pierre van Tonder, said: “The first half was a tale of two distinct quarters: while local franchised restaurant sales declined by 6.2% in the three- months to September 2017, the second three months of the financial year to December 2017 showed a marked improvement with sales declining by only 0.2%.” He attributes the group’s performance for the period to the residual effects of what he described as the “perfect storm” of March 2017: the political uncertainty caused by the cabinet reshuffle, the impact of the social media fallout following a customer incident in a Spur outlet in Johannesburg and a struggling economy. He added that, as previously communicated to shareholders, the group also implemented a strategic decision to move its promotional strategies away from discounting in the second half of the previous financial year, to protect franchisee margins. This has had the expected negative impact on turnovers in the short term, but is critical to the sustainability of the franchise model, particularly in the case of Spur Steak Ranches, and has been successful in restoring acceptable profitability for franchisees. “The performance of The Hussar Grill and RocoMamas has been particularly pleasing. We believe we are on the right track to restoring Spur Steak Ranches to the growth trajectory it was on prior to March 2017. Economic growth is critical to local business and the resolution of the political turmoil in the country will no doubt have a profound impact on our future. While we cannot predict the impact of the water crisis in the Western Cape, we are implementing remedial strategies to limit the damage, should “day zero” become reality.” At 31 December 2017, the group’s restaurant base comprised 613 (June 2017: 591) outlets, including 63 (June 2017: 63) operating outside of South Africa. The financial information in this sales update has not been reviewed or reported on by the group’s independent auditor. Spur Corporation’s interim results for the six months ended 31 December 2017 will be released on SENS on 22 February 2018. Cape Town 29 January 2018 Sponsor Sasfin Capital A division of Sasfin Bank Limited Date: 29/01/2018 09:30:00 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.