Voluntary Trading Update And Statement For The Year Ended 30 June 2018 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 YEAR ENDED 30 JUNE 2018 Revenue growth for the 2018 financial year was constrained by a challenging trading environment. Poor consumer demand and aggressive competition limited volume growth in many of our key categories. Our consumers have been impacted by a pro-longed period of price inflation driven by the effect of the weaker Rand on input costs, the VAT increase and higher fuel prices, and compounded by the impact of job losses. Group revenue rose by 1,9% largely due to the annualisation of selling price increases taken during the prior financial year but partially offset by lower sales volumes in some categories. Selling price increases were only taken in categories affected with specific raw material cost pressures and in most cases, selling prices were maintained throughout the year to support sales volumes. Despite lower price inflation and limited gains in sales volumes, the ongoing efforts to reduce procurement costs and improve factory efficiencies supported an improvement in the consolidated gross profit margin for the year. Improved exchange rates compared to last year and benign inflation in our basket of key raw materials priced in foreign currencies contributed further to this improvement. Selling and administrative costs were tightly managed and benefitted from the restructuring initiatives completed in the prior financial year. All business units achieved operating profit growth and the Group’s consolidated operating profit margin improved over the prior year. Both Entyce and Snackworks delivered sound operating profit growth in the context of the tough trading environment, with particularly pleasing performances from the tea and snacks categories underpinning growth for the year. I&J had a strong second semester supported by improved fishing and cost savings, resulting in good growth in operating profit despite the adverse impact of a stronger Rand on export sales. Indigo Brands delivered a solid performance in a highly competitive category. Spitz achieved good full year profit growth, notwithstanding a subdued second half with footwear sales volumes under pressure following a very strong December performance. Green Cross had a disappointing year. However, the business remains profitable and cash generative and the operational changes made during the year will significantly improve core operating performance and working capital levels. A further impairment of R108,0 million after tax has been made against this investment in recognition of the extended period it will take to return the business to acceptable profitability from the current base. The impairment will be recorded as a non-cash capital item. The weighted average number of shares in issue during the period was 0,7% 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, including the black staff empowerment share scheme. 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 year ended 30 June 2018 are expected to increase by between 6,5% and 7,5% over the prior year, translating into an increase from last year’s 507,7 cents to a range between 541 and 546 cents per share; and - Consolidated earnings per share for the year ended 30 June 2018, including capital gains and losses, are expected to increase by between 6,5% and 7,5% over the prior year, translating into an increase from last year’s 479,0 cents to a range between 510 and 515 cents per share. It is expected that AVI will release its results for the year ended 30 J u n e 2018 on or about 1 0 September 2018. The information above has not been reviewed and reported on by the Group’s auditors. Illovo 25 July 2018 Sponsor The Standard Bank of South Africa Limited Enquiries +(27) 11 502 1300 Date: 25/07/2018 04:08:00 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.