Ratio applicable to the Scrip Distribution 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") Ratio applicable to the Scrip Distribution Shareholders are referred to the Company´s consolidated financial results for the 52 weeks ended 30 December 2018, published on the Stock Exchange News Service ("SENS") on Thursday, 28 February 2019, in which shareholders were advised of the Company´s declaration of a scrip distribution of fully-paid Massmart ordinary shares of R0.01 each ("the Scrip Distribution") to ordinary shareholders ("Shareholders") recorded in the register of the Company at the close of business on the Record Date, being Friday, 29 March 2019 ("the Record Date"). Shareholders will, however, be entitled to elect to receive a cash dividend of 140 cents (“Cash Dividend”) per ordinary share of R0.01 each held on the Record Date in respect of all or part of their ordinary shareholding, instead of the Scrip Distribution. A circular setting out the terms of the Scrip Distribution and Cash Dividend alternative, including a Form of Election (and an Investor Letter for completion by US Investors only), was posted to shareholders on Monday, 4 March 2019. The Cash Dividend will be paid only to those: - certificated Shareholders whose Forms of Election to receive the Cash Dividend, in respect of all or part of their shareholding are received by the Transfer Secretaries on or before 12h00 on Friday, 29 March 2019; and - dematerialised Shareholders who have instructed their CSDP or broker accordingly and in the manner and time stipulated in their agreement with such CSDP or broker. The number of Scrip Distribution shares to which each Shareholder will become entitled pursuant to the Scrip Distribution (to the extent that such Shareholder has not elected to receive the Cash Dividend) will be determined by reference to such Shareholder´s ordinary shareholding in Massmart (at the close of business on the Record Date) in relation to the ratio that 140 cents bears to 8 895 cents, representing the volume weighted average price of an ordinary Massmart share traded on the JSE during the 15-day trading period ending on Friday, 15 March 2019. The ratio of Scrip Distribution shares to which each Shareholder will become entitled pursuant to the Scrip Distribution (to the extent that such Shareholder has not elected to receive the Cash Dividend) is therefore 1.57392 Scrip Distribution shares for every 100 ordinary shares held on the Record Date. Where the application of this ratio gives rise to a fraction of an ordinary share, such fraction will be rounded down to the nearest whole number, resulting in allocations of whole ordinary shares and a cash payment for the fraction. The applicable cash payment will be determined with reference to the VWAP of an ordinary Massmart share traded on the JSE on Wednesday, 27 March 2019, (being the day on which an ordinary Massmart share begins trading `ex´ the entitlement to receive the Scrip Distribution or the Cash Dividend alternative), discounted by 10%. The applicable cash payment will be announced on SENS on Thursday, 28 March 2019. Illustration of Scrip Distribution entitlement: This illustration assumes that a Shareholder holds 100 ordinary shares at the close of business on the Record Date and does not elect to receive the Cash Dividend in respect of all or part of their shareholding. New ordinary share entitlement = 100 x 140 cents ________________ 8 895 cents = 1.57392 new shares (then apply the rounding provision described above so that where a Shareholder’s entitlement to new Massmart Ordinary Shares calculated in accordance with the above formula gives rise to a fraction of an ordinary share, such fraction will be rounded down to the nearest whole number, resulting in allocations of whole Massmart Ordinary Shares and a cash payment for the fraction) = 1 Scrip Distribution share in respect of the 100 ordinary shares held. 18 March 2019 Sponsor J.P. Morgan Equities South Africa (Pty) Ltd Date: 18/03/2019 10:40:00 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.