Voluntary Trading Update For The Nine Months Ended 30 June 2019 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”) VOLUNTARY TRADING UPDATE FOR THE NINE MONTHS ENDED 30 JUNE 2019 Pepkor increased revenue by 8.5% to R53.1 billion for the nine months ended 30 June 2019. Performance was supported by a stronger third quarter which saw revenue grow by 11.7%, largely benefitting from the shift of Easter to April. Trading however, remains volatile in an environment of continued pressure on consumer spending. Clothing & general merchandise The clothing and general merchandise segment reported revenue growth of 6.4% for the nine- month period, supported by 9.2% growth during the third quarter. For the nine-month period, the Pep and Ackermans brands in aggregate reported sales growth of 6.7% and like-for-like sales growth of 2.9%. Retail space expanded by 4.8% year-on- year. Core clothing, footwear and homeware (CFH) product categories achieved 7.1% sales growth and 3.5% like-for-like growth. This remains encouraging in the current operating environment. Pep and Ackermans in aggregate reported inflation of 4.2% in CFH retail selling prices. Pep Africa reported a decline in sales of 0.7% in rand terms for the nine-period. This includes strong constant currency performance with sales growth of 14.9% and like-for-like growth of 11.4%. Good results were achieved in most countries while macro-economic challenges in Zimbabwe continue to impact performance. The Speciality division reported sales growth of 9.5% with like-for-like growth of 4.2%, in aggregate, for the nine-month period. Satisfactory performance was achieved in the clothing product categories with continued softer performance in footwear. Furniture, appliances & electronics Performance in the furniture, appliances and electronics segment was supported by income from the new internally-funded credit book. The segment reported revenue growth of 8.3% for the nine-month period, including 10.9% growth during the third quarter. During the nine-month period merchandise sales increased by 1.9% and like-for-like sales declined by 1.3% as financially constrained consumers continue to prioritise spending on essentials over durable product categories. Profitability of this segment will be impacted in the current financial year by the implementation of IFRS 9 on the new internally-funded credit book. Building materials Sales growth of 0.6% was achieved in the building materials segment with like-for-like growth of 1.8% during the nine-month period. Sales contracted by 1.1% during the third quarter as high levels of competition remain within the contracting and building materials market. This continues to place significant pressure on margins. Fintech The segment reported 40.7% revenue growth for the nine-month period, including growth in excess of 50% during the third quarter. The FLASH business continues to achieve significant growth, while Capfin’s performance is further supported by income earned on the new internally-funded credit book. The implementation of IFRS 9 will also impact this segment’s profitability. Outlook Pepkor’s defensive market position and strategy of providing customers with value at affordable prices continues to resonate with customers, as demonstrated through continued market share growth. This will continue to support performance in challenging operating conditions where sales volatility is expected to continue as customers have to contend with high levels of unemployment and increased cost of living in what remains to be an extremely 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 (0.7%) 14.9% 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 7 August 2019 Sponsor PSG Capital Date: 07/08/2019 03:51:00 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.