SUPER GROUP LIMITED - Voluntary Trading Statement

Voluntary Trading Statement

Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1943/016107/06)
Share code: SPG
ISIN: ZAE000161832
LEI: 378900A8FDADE26AD654
(“Super Group” or “the Group”)

Voluntary Trading statement

Super Group’s financial results for the six months to 31 December 2019 have been negatively
impacted by extremely difficult trading conditions in all the geographies within which it operates.
The deteriorating South African economic growth statistics, exacerbated by a very competitive
domestic market environment, political uncertainties in Europe and the United Kingdom (UK), as
well as changes in SG Fleet’s product offering, culminated in a decrease in revenue and earnings for
the first time in 11 years.

Supply Chain Africa’s consumer and industrial businesses performed well despite the poor
manufacturing and consumer demand as well as labour unrest in the retail sector. A number of
significant new contracts were secured from October 2019. LiebenLogistics and GLS Supply Chain
Equipment, acquired effective 3 July 2019, performed strongly in the period to December 2019. The
Supply Chain Africa commodity-facing businesses in South Africa experienced a sharp decline in
activity levels due to electricity generation and transmission problems as well as adverse weather
conditions, particularly during November and December 2019.

Supply Chain Europe performed poorly on the back of a further significant decline in new vehicle
manufacturing volumes in Germany. German motor vehicle manufacturing levels are at a 23-year
low. The business is going through an extensive process of cost reduction and operational
rationalisation. The business will close one satellite branch and three trans-shipment points by the
end of the financial year June 2020. The expansion into new business areas, such as agricultural
equipment distribution and e-commerce platforms, remains a strategic priority.

SG Fleet at its prior year Results presentation advised that the company has implemented a number
of strategic initiatives which result in a shift of upfront to annuity-based income. At that time, the
company also reported a decline in new vehicle sales which has impacted on novated lease sales and
margins.

Fleet Africa delivered a strong performance as a result of new business generation and the renewal
of a number of larger contracts.

Dealerships SA saw a further decline in new and used vehicle sales volumes particularly in the
premium segment. The new vehicle sales performance was largely in line with NAAMSA trends.

Dealerships UK also delivered a sharp decline in sales units attributed to a decline in the Privilege
Schemes activity levels as offered by the Original Equipment Manufacturers (OEMs). Despite this,
the business performed well in this financial period.

During the six-month period under review, net capital items to the amount of R33.4 million were
incurred against operating profit, with the major item being the impairment of historic goodwill
against Phola Coaches totalling R34.2 million. IFRS 16 also negatively impacted profit at a pre-
taxation level, by an amount of R22.8 million for the reporting period. The goodwill impairment also
contributed to an increase in the Groups effective rate of taxation of approximately 0.9 percent.
As a result, shareholders are advised that Super Group is expecting to report a decline in revenue
and operating profit of approximately 3.0% (December 2018 revenue: R19.4 billion) and 8.7%
(December 2018: R1.3 billion), respectively, for the six months ended 31 December 2019.
Cash generated from operations increased by 37.9% for the period to nearly R2.1 billion (December
2018: R1.5 billion).


                                            31 December                            31 December
                                            2019                                   2018
                                            Expected Low        Expected High      Actual
                                            Range               Range

Earnings per share (EPS)                    141.2 cents         145.2 cents        176.3 cents

EPS range                                   (19.9)%             (17.6)%

Headline earnings per share (HEPS)          150.0 cents         155.0 cents        173.8 cents

HEPS range                                  (13.7)%             (10.8)%

Weighted number of shares                   362.3 million       362.3 million      362.4 million


The financial information on which this trading statement is based has not been reviewed or
reported on by Super Group’s external auditors.

Sandton

10 February 2020

Sponsor: Investec Bank Limited

Date: 10-02-2020 12:02:00
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