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1 1 2 3 5 6 4 2 1 R E V I E W O F T H E P E R I O D 3 3 SOUTH AFRICA TRADING ENVIRONMENT Difficult trading environment. GDP growth remained subdued throughout 2017/2018 with negative growth in Q1 of calendar 2018.

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  3. 1 R E V I E W O F T H E P E R I O D 3 3

  4. SOUTH AFRICA – TRADING ENVIRONMENT • Difficult trading environment. • GDP growth remained subdued throughout 2017/2018 with negative growth in Q1 of calendar 2018. • Rising fuel and energy prices, VAT rate increase and weaker Rand. • Take-home pay for SA consumers has dropped significantly. • Consumer confidence has declined after initial boost at the start of the calendar year following appointment of new president. • Unemployment increased in Q2 of calendar 2018 to 27.2%. • Uncertainty regarding land reform impacting on business and investor confidence. Sources: Stats SA, BankServAfrica 4

  5. UNITED KINGDOM – TRADING ENVIRONMENT • Extremely tough retail environment. • GDP growth slowed in Q1 2018 to 1.2% (weakest since 2012). • Retailers hit by soaring business rates and low consumer confidence. • Customers impacted by Brexit-fuelled inflation. • Number of retailers issuing profit warnings has doubled and the number of companies filing for Company Voluntary Arrangements (CVA) has increased substantially. • Continued inflationary pressure with CPI growth of 2.4% has squeezed household income. • Brexit-related uncertainty remains, although fiscal policy has been relaxed. Source: UK Office for National Statistics 5

  6. 2 F I N A N C I A L R E V I E W I . G R O U P 6 6

  7. GROUP EXECUTIVE LEADERSHIP David P Pfaff appointed G Group C Chief Operating Officer (C (COO) • Appointment to newly created COO position effective immediately. • Recognises David’s expanded responsibilities, which now include retail store operations in addition to his existing portfolio of credit risk, credit operations, information systems and finance. • He continues as Group Chief Financial Officer and head of the Group’s finance function . • David has been with the Group since March 2013. David P Pfaff (5 (53) BCom, CA (SA), Dip Soc (Oxon) COO a and CFO 7

  8. GROUP OVERVIEW • Year-on-year performance impacted by 53 rd week in the prior period. • Top-line growth affected by challenging economic environment in SA and UK. • Trading expenses well controlled, reducing by 2% on the prior period. • Dividend cover maintained at 1.5 times. • Strong balance sheet with improved net debt to equity ratio. • South African debt restructured. • Cash realisation rate of 109%. • Net asset value per share growing at 10% to 2 421 cents. • Opened 13 Office London stores in South Africa. • Acquired homeware chain, Loads of Living, with 13 stores. • Launched sophisticated e-commerce site in South Africa. 8

  9. GROUP PERFORMANCE AGAINST TARGETS Jun 2018 2018 Jun 2018 Actual Target 52 weeks 52 weeks 52.4 .4% Gross margin 51% – 55% 22.5 .5% Operating margin 20% – 25% 27% 27% Return on equity 26% – 31% 25% 25% Return on assets 22% – 27% 4.0 .0 times Inventory turn 3.5 – 4.5 times 1.1 .1 times Asset turnover 0.9 – 1.3 times 9

  10. GROUP FINANCIAL PERFORMANCE Change on Change on prior period prior period Jun 2018 Jun 2017 2017 52 on 5 52 Jun 2017 52 on 53 52 weeks 52 weeks * weeks 53 weeks weeks 17 547 Sale of merchandise (Rm) 17 582 (0 (0.2 .2%) %) 18 065 (2.9%) 52.4 .4% Gross margin 52.6 .6% 52.6% 22.5 .5% Operating margin 22.6 .6% 23.3% 612.7 .7 Diluted HEPS (cents) 620.8 .8 (1.3 (1 .3%) %) (7.3%) 660.9 420 420 Dividend per share (DPS) (cents) 452 452 452 (7.1%) 2 2 421 421 Net asset value per share (cents) 2 2 201 2 201 10.0% * Pro forma comparable 2017 52-week period. 10 10

  11. GROUP DILUTED HEPS AND DPS (52 WEEKS) Compound growth rates: Compound growth rates: Diluted HEPS: DPS: (cents) Jun: 5-year 1.8%, 3-year 1.2% Jun: 5-year 3.0%, 3 year 1.2% 700 600 500 400 300 200 100 385 569 405 592 452 666 452 621 420 420 613 613 - Jun 2014 Jun 2015 Jun 2016 Jun 2017* Jun 2018 DPS Diluted HEPS *Pro forma comparable 2017 52-week period (2017 53-weeks: 661 cents per share). 11 11

  12. GROUP RETURN ON EQUITY (ROE) AND RETURN ON CAPITAL (ROC) Average: Average: ROE: ROC: Jun: 5-year 33.0%, 3-year 31.0% Jun: 5-year 47.6%, 3-year 45.7% (%) %) 60 Office UK acquired 52 51 49 50 46 40 40 40 37 35 35 31 30 27 27 20 10 - Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018 ROE ROC 12 12

  13. GROUP RETURN ON TOTAL ASSETS AND ASSET TURNOVER Average: Average: Return on assets Return on assets: Asset turnover: Asset turnover (%) %) Jun: 5-year 31.0%, 3-year 25.0% Jun: 5-year 1.1 times, 3-year 1.1 times (times) 60 2.3 Office UK acquired 2.1 50 42 1.9 38 40 1.7 1.5 30 26 25 25 24 1.3 20 1.1 0.9 10 0.7 - 0.5 Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018 Return on assets Asset turnover 13 13

  14. GROUP ROIC vs WACC Average: Average: (%) %) ROIC: WACC: Jun: 5-year 19.8%, 3-year 16.7% Jun: 5-year 13.6%, 3-year 13.3% 30 25 24 Office UK acquired 25 20 17 17 16 16 14 15 14 14 14 13 13 10 5 - Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018 ROIC WACC 14 14

  15. GROUP STATEMENTS OF FINANCIAL POSITION Change on Jun 2 2018 Jun 2017 prior period Rm Rm Rm % Property, plant and equipment 1 7 726 1 637 5 1 6 629 Goodwill 1 552 5 3 2 227 Intangible assets 3 037 6 322 322 Other non-current assets 333 (3) Cash and cash equivalents 982 982 2 055 (52) 5 5 110 110 Trade and other receivables 5 256 (3) Inventories 2 2 072 072 1 916 8 Other current assets 423 423 353 20 Total a assets 15 15 491 491 16 16 139 139 (4 (4) Total equity 10 10 369 369 9 450 10 Non-current liabilities 2 3 363 4 709 (50) Current liabilities 2 2 759 759 1 980 39 Total e equity a and l liabilities 15 15 491 491 16 139 16 139 (4 (4) 15 15

  16. GROUP CAPITAL MANAGEMENT FINANCIAL POSITION • Financial position remains strong with NAV per share up 10% % to 2 421 cents. DIVIDENDS • Final dividend of 159 cents per share (2017: 182 cents per share). • Total dividend per share of 420 cents per share (2017: 452 cents per share). GEARING • Net debt to equity ratio: – Group: : Reduced to 9.3% R968 million net debt (June 2017: 18.3% R1.7 billion net debt). – Truworths: : Reduced to 5.9% R605 million net debt (2017:11.9%, R1.2 billion net debt). – Office: : Reduced to 10.2% £20.1 million net debt (2017: 18.2%, £33.5 million net debt). 16 16

  17. GROUP SA DEBT FUNDING RESTRUCTURE Jun 2018 Jun 2017 Base r rate Base rate Total Utilised margin Total Utilised margin Facility Base rate Rm Rm Rm Rm (ppts) Rm Rm (ppts) +1.73 to Term loans 3-month JIBAR 500 500 500 500 + 1 1.3 .35 2 600 2 600 +2.18 Revolving credit 3-month JIBAR 1 2 200 300 300 + 1 1.2 .29 350 - + 1.73 Overdraft – Committed Prime 300 300 263 263 - 1.2 .25 300 - - 1.25 Overdraft – Uncommitted Prime 700 700 - - 1.2 .25 300 - - 1.25 Total gross debt 2 7 700 1 0 063 3 550 2 600 17 17

  18. GROUP DIVERSIFICATION TRUWORTHS OFFICE GROUP Rest of Africa 4% Rest of Europe 9% UK and Europe 27% RETAIL SALES R13 115 m R4 848 m R17 963 m Rest of Africa 3% South Africa 96% United Kingdom 91% South Africa 70% Cash 31% Cash 50% CASH: ACCOUNT SALES R13 115 m R4 848 m R17 963 m Account 69% Cash 100% Account 50% 18 18

  19. GROUP DIVERSIFICATION TRUWORTHS OFFICE GROUP Footwear 11% Footwear 100% Footwear 35% PRODUCT MIX R13 115 m R4 848 m R17 963 m Clothing and accessories 89% Clothing and accessories 65% Rest of Africa 4% Rest of Africa 5% Rest of Europe 12% UK and Europe 16% STORE LOCATIONS 813 813 stores 156 156 stores 969 969 stores South Africa 95% United Kingdom 88% South Africa 80% 19 19

  20. GROUP CASH FLOWS (Rm) Cash realisation rate of 109% 5 000 (244) 8 4 000 (855) 1 425 (86) 172 3 000 (1 925) 2 000 3 385 2 965 (399) (161) (123) 1 000 777 - (2 179) (1 402) (1 000) (2 000) EBITDA* Working capital Interest received Dividends Finance costs Tax paid Capex Free cash flow Dividends Capex expand Net shares Other Cash flow before Net borrowings Net cash movement received maintenance scheme buy-backs financing repaid decrease *Earnings before interest, tax, depreciation and amortisation. 20 20

  21. GROUP CASH REALISATION RATE (%) %) 120 109 109 96 100 91 89 80 80 60 40 20 - Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018 Cash realisation rate 21 21

  22. 2 F I N A N C I A L R E V I E W I I . T R U W O R T H S 22 22 22 22

  23. TRUWORTHS EXECUTIVE LEADERSHIP Michael M Mark (6 (65) BCom, MBA, ACMA Chief Executive Officer David P Pfaff (5 (53) Doug D Dare (5 (57) Sean F Furlong (5 (57) Sarah Proudfoot (5 (50) BCom, CA (SA), Dip Soc (Oxon) BBus Sc Diploma in Marketing Management National Diploma in Clothing Design COO a and CFO Executive Director: : Buying and Director: : Planning and Logistics Director: : Merchandise Ladiesware Merchandising 23 23

  24. TRUWORTHS EXECUTIVE LEADERSHIP (CONTINUED) David P Pfaff (5 (53) BCom, CA (SA), Dip Soc (Oxon) COO a and CFO Store Retail Risk and Information Credit Internal Company Legal Finance Operations Analytics Systems Operations Audit Secretarial 24 24

  25. TRUWORTHS EXECUTIVE LEADERSHIP (CONTINUED) Doug D Dare (5 (57) BBus Sc Executive Director: : Buying and Merchandising Marketing Quality Truworths International Menswear Kids Homeware Menswear Assurance Manufacturing Sourcing 25 25

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