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AGENDA

� Group overview

� Financial highlights

� Operational highlights

� Expansion plans

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CURRENT FOOTPRINT

Uganda

Number

of stores31-Dec-16 31-Dec-17

Increase:

Dec-16 to Dec-17

Current (Apr-18)

Botswana 83 85 2 85

South Africa 68 88 20 88

Zimbabwe 31 32 1 32

Zambia 10 15 5 16

Kenya 9 11 2 12

Tanzania 1 2 1 2

Mozambique - 1 1 1

Namibia - 1 1 3

Total 202 235 33 239

Kenya12 stores 2 DCs

Tanzania2 stores

Zambia16 stores1 DC

Namibia3 stores

Botswana85 stores3 DCs

Zimbabwe32 stores2 DCs

Mozambique1 store

South Africa (North West)57 stores2 DCs

Arizona8 stores

Durban23 stores 1 Factory 1 DC

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Financial highlightsFinancial Metrics (Group) HY 2018 HY 2017 Movement

No. of stores 235 202 � 33

Revenue (BWP millions) 5 762 4 714 � 22%

Gross profit (BWP millions) 1 122 915 � 23%

Gross profit margin 19.5% 19.4% � 0.1%

EBITDA (BWP millions) 251 189 � 33%

EBITDA margin 4.4% 4.0% � 0.4%

PAT (BWP millions) 68 56 � 21%

PAT margin 1.2% 1.2% 0%

Like for like revenue (BWP millions) 5 054 4 306 � 17%

Like for like footfall (in millions) 84 82 � 2.4%

Like for like basket size (BWP) 60.17 52.51 � 14.6%

Number of employees 17 182 14 672 � 17.1%

Return on net assets 5.55% 3.74% � 1.81%

Revenue per sqm 17 485 15 664 � 11.6%

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Botswana, 40.3%

Rustenburg, 27.1%

Jwayelani, 9.1%

Zimbabwe, 15.2%

Zambia, 4.2%

Kenya, 3.6% Tanzania, 0.1%

Mozambique, 0.2%

Namibia, 0.1%

SA total –

36.2%

Botswana, 48.5%

Rustenburg, 21.1%

Jwayelani, 9.5%

Zimbabwe, 15.6%

Zambia, 2.5%

Kenya, 2.7%

Tanzania, 0.0%

SA total –

30.6%

HY 2018 HY 2017

Revenue split by region

� Reduced dependency on Botswana (from 49% revenue contribution in HY 2017,

to 40% contribution in HY 2018).

� 6% contribution increase in SA.

� New regions scaling up and contributing to diversified growth.

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P 2005 m

P 2504 m

P 3008 m

P 3531 m

P 4714 m

P 5762 m

HY 2013 HY 2014 HY 2015 HY 2016 HY 2017 HY 2018

• Consistent revenue growth, with a 5-year compounded annual growth rate of 23.5%.

Revenue growth

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Revenue growth – Segment wiseExisting

Stores (%)New Stores (%) Total (%)

Botswana 2% 4% 6%

South Africa 32% 27% 59%

� North West 43% 33% 76%

� KZN 10% 12% 22%

Zimbabwe 20% 5% 25%

Zambia 13% 105% 118%

Kenya 28% 40% 68%

Tanzania 95% 132% 227%

Mozambique N/A N/A N/A

Namibia N/A N/A N/A

Total Sales 17% 13% 29%

Like for like analysis HY 2018 HY 2017 Movement

Sales (BWP millions) 5 054 4 306 � 17%

Footfall (millions) 84 82 � 2.4%

Basket size (BWP) 60.17 52.51 � 14.6%

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Gross Profit

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22.3%

19.8%

21.9%

16.5%

14.4%

19.5%20.8%

18.1%

23.1%

18.3%

15.9%

19.4%

Botswana SA - North west SA - KZN Zimbabwe Other regions Total

HY 2018 HY 2017

EBITDA

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P 185 m

P 41 mP 18 m

P 33 m

-P 26 m

P 251 m

P 166 m

-P 11 m

P 24 mP 30 m

-P 20 m

P 189 m

Botswana SA - North west SA - KZN Zimbabwe Other regions Total

HY 2018 HY 2017

� P 19 m

SA Total � P 46 m � P 3 m Loss � P 6 m

� P 62 m

P 56 m

P 17 m

P 73 m

P 16 m

P 100 m

P 189 m

P 68 m

P 25 m

P 93 m

P 31 m

P 127 m

P 251 m

PAT

Tax

PBT

Net interest

Depreciation

EBITDA

HY 2018 HY 2017

• P 62 m increase in EBITDA

• Profitability increase of P 12 m due to:

• P 27 m increase in depreciation

• P 15 m increase in net interest

• P 8 m increase in tax

Profitability analysis

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• Gross profit: Positive increase in Gross

Profit Margin, mainly from the Botswana and

South Africa North West regions.

• Gross Profit increased by 23% in value YoY.

• EBITDA: Improved performance of Botswana

and SA regions resulted in improved total

group EBITDA margin.

KPIs

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19.5%

19.4%

Dec-17 Dec 16

Gross profit margin

4.4%

4.0%

Dec-17 Dec 16

EBITDA margin

• Current ratio: Current ratio for HY 2018

reduced to 1.12x, compared to 1.26x for FY

2017.

• Current ratio reduced mainly due to increase

in working capital days

1.12

1.14

Dec-17 Dec 16

Current ratio

KPIs

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7.68

10.24

Dec-17 Dec 16

Interest coverage ratio

• Interest coverage ratio: Ratio improved to

7.68x for HY 2018, compared to 6.34x for FY

2017.

• Inventory days increased

due to opening of new

stores in South Africa and

new geographies.

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46

Dec-17 Dec 16

Inventory days

• The majority of the

group’s sales are in cash.

• Receivables are mainly

associated with credit

extended to buying

groups.

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50

Dec-17 Dec 16

Payable days • Payable days increased

mainly due to increases in

inventories for South

Africa and new

geographies.

• Due to increases in stock

holding, NWC days is

positive.

• The group’s objective is to

maintain zero or negative

NWC days.

• New regions are expected

to meet these targets, once

they mature.

Working capital

14

4 3

Dec-17 Dec 16

Receivable days

3

(0.28)

Dec-17 Dec 16

Net working capital days

BWP Millions HY 2018

Cash flows generated from operating activities 332

Investing activities

- New store capex (161)

- Replacement capex (73)

Financing activities

- New loans 32

- Loan repayment (including interest) (49)

Net movement 81

Opening cash & cash equivalents (Net of overdraft) 76

Closing cash & cash equivalents (Net of overdraft) 157

Cash flow

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BWP Millions HY 2018 HY 2017

Long term debt 687 580

Bank overdraft 37 51

Total debt 724 631

Cash (194) (221)

Net Debt 530 410

EBITDA 251 189

LTM EBITDA 404 271

Equity 1 564 1 506

Total Debt to Equity 0.46x 0.42x

Net Debt to LTM EBITDA 1.31x 1.51x

Net debt position

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Operational highlights

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Region (all values in sqm) HY 2018 HY 2017 Growth

Botswana 119,493 116,430 � 3,063

South Africa 139,778 108,706 � 31,072

Zimbabwe 37,841 37,041 � 800

Zambia 18,668 12,007 � 6,661

Kenya 20,199 16,315 � 3,884

Tanzania 1,575 469 � 1,106

Mozambique 1,504 - � 1,504

Namibia 1,915 - � 1,915

Total 340,973 290,968 � 50,005

Retail space growth

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� Despite aggressive store roll outs by competitors, we were able to achieve decent growth in Botswana, whilst maintaining our strong market share in the region.

� 5.9% increase in overall revenue.

� 2.3% like for like revenue increase.

� Value added financial products / services continue to grow in Botswana, and we expect to add more products in the calendar year.

Botswana

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� Whilst Botswana experienced continued subdued economic activity and increased competition, we managed to maintain market share in this market.

� We expect the economy to improve under Botswana’s new political leadership.

Botswana

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North-West region:

� Region demonstrated strong like for like growth of 43%, and overall growth of 76%. This was achieved mainly due to competitive buying, ensuring stock availability in stores and improvements in product range.

� Achieved profitability in the first half of the year.

� Significant improvement in financial services.

South Africa

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KZN region:

� The KZN business was hard hit by the import ban on chickens and production stoppages by local chicken farmers.

� Gross margin was severely compromised to maintain volumes, and we only expect this to change post June 2018.

� 8 new stores were acquired in KZN effective from 1 November 2017. These are expected to benefit the group in terms of enhanced scale and efficiencies.

South Africa

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� Despite liquidity issues in the economy, our segmental revenue grew by 25%, with like for like growth of 20%, and 12% growth in EBITDA.

� Under the new political dispensation, we expect the economy to rebound quickly.

� There are a few initiatives in the pipeline to streamline financial services. We expect a significant turnaround once the necessary financial approval is obtained from regulatory authorities.

Zimbabwe

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Other RegionsZambia:

� We continue to aggressively promote the brand for market share.

� We expect to be able to achieve break-even profitability with the opening of a few more stores, which are scheduled before the end of this calendar year.

Kenya:

� Planned revamp of stores taken over from Ukwala have started, and we expect to finish renovations by end of July 2018.

� The market is ripe for a turnaround, and we are hopeful that this will pay off.

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Other Regions

Tanzania:

� We expect to open the third store by the end of May 2018 – this will provide some good volumes, as it will be the biggest Choppies retail outlet in Tanzania.

� Retail site development is generally very slow in Tanzania, and we expect to grow at a slow pace in this market.

Namibia:

� Commenced operations in Namibia in November 2017.

� Currently we operate 3 stores in Namibia. Preliminary indications are very good, and the market has similar characteristics to Botswana. We are confident that we will excel in this market.

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Other Regions

Mozambique:

� Due to continued economic issues in the Mozambique market, we are taking a very cautious approach going forward.

� 2 leases are in the pipeline, but will commence operations at a slow pace.

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EXPANSION PLANS

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Planned New Stores (Post Dec 17)

CountryFY 2018 (# stores)

Botswana -

South Africa 3

Zimbabwe 2

Zambia 2

Kenya 2

Tanzania 1

Mozambique -

Namibia 2

Total 12

Cumulative no. stores 247

Estimated Capex

CountryFY 2018

(Pula millions)

Botswana -

South Africa 24

Zimbabwe 11

Zambia 15

Kenya 24

Tanzania 8

Mozambique -

Namibia 15

Total 97

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Planned New Stores & Capex

THANK YOU

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