Trading Update For The Three Months Ended 31 December 2018 Pepkor Holdings Limited (Previously Steinhoff Africa Retail Limited) (Incorporated in the Republic of South Africa) (Registration number: 2017/221869/06) Share Code: PPH ISIN: ZAE000247995 (“PEPKOR” or the “Company”) TRADING UPDATE FOR THE THREE MONTHS ENDED 31 DECEMBER 2018 In a challenging trading environment the Pepkor group increased revenue by 6.1% to R19.5 billion for the three months ended 31 December 2018. Clothing & general merchandise The clothing and general merchandise segment reported sales growth of 6.1% and like-for-like growth of 3.4%. Retail space increased by 4.0% compared to the comparative quarter. The Pep and Ackermans brands in aggregate reported sales growth of 6.8% and like-for-like sales growth of 2.7%. Core clothing, footwear and homeware (CFH) product categories achieved 8.6% sales growth and 4.6% like-for-like growth which is very encouraging in the current operating environment. Pep and Ackermans in aggregate reported inflation of 1.6% in CFH retail selling prices. Notwithstanding a decline in sales of 4.8% in rand terms as a result of currency devaluation and poor performance in Zimbabwe, Pep Africa reported a markedly improved performance in constant currency with sales growth of 18.7% and like-for-like growth of 13.3%. This was supported by improved performance in Angola, Zambia and Nigeria. The Speciality division reported sales growth of 7.3% with like-for-like growth of 3.0% in aggregate. Satisfactory performance was achieved in the clothing product categories with continued softer performance in footwear. Furniture, appliances & electronics The furniture, appliances and electronics brands reported sales growth of 0.6% and a decline in like-for-like sales of 2.7% as the spending patterns of financially constrained consumers favour essentials as opposed to durable product categories. Building materials Sales growth of 2.3% was achieved in the building materials segment with like-for-like growth of 3.5% while retail space reduced by 1.3%. Performance was supported from a wholesale perspective however, discounting in this highly competitive and contracting market continues to put margins under pressure. Fintech The FLASH business continues to achieve significant growth, while a satisfactory performance was reported by the Capfin call centre and debt collection operations. The segment reported 31.3% revenue growth for the quarter. Outlook Overall, Pepkor’s defensive market position and strategy of providing customers with value at affordable prices, continue to resonate with a financially constrained consumer. It is expected that these Pepkor fundamentals will continue to support future performance in a very challenging retail environment. Impact of Pepkor group’s pro forma constant currency disclosure The Pepkor group discloses unaudited constant currency information to indicate Pep Africa’s performance in terms of sales growth, excluding the effect of foreign currency fluctuations. To present this information, current period turnover for Pep Africa reported in currencies other than ZAR are converted from local currency actuals into ZAR at the prior year's actual average exchange rates. The table below sets out the percentage change in sales, based on the actual results for the period, in reported currency and constant currency for the basket of currencies in which Pep Africa operates. % change in sales on prior period Reported Constant currency currency Pep Africa (4.8%) 18.7% The information included above is the responsibility of the directors and does not constitute an earnings forecast and has not been reviewed and reported on by the Company’s external auditors. The constant currency information has been prepared for illustrative purposes only. Parow 28 January 2019 Sponsor PSG Capital Date: 28/01/2019 03:30:00 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.