Organisational Structure Report

1. Organisational Structure Report

2. Organisational Structure Overview • An independent buying group formed in 2007 through an amalgamation of the Devland Cash & Carry, Yarona Cash & Carry and Hikma trading operations, together with Managing Director, Louis Greeff • The Group Holding Company is known as Elite Star Trading (Pty) Ltd T/A EST Africa • Structured as two operating divisions: • EST Africa (Pty) Ltd represents the Group’s food and grocery business and incorporates a total of 228 independently owned and managed wholesale, retail and distribution outlets • EST Building represents 650 hardware and building supply stores • Both divisions have a prominent footprint in South Africa, neighbouring states and other sub-Saharan African countries The Group is headed by Managing Director Louis Greeff | Elite Star Trading Africa | Organisational Structure

3. Organisational Structure Overview (cont.) • No centralised supplier accounts are run by the Group, each member being responsible for its own financial and credit relationship with suppliers • Purchasing is conducted at a Group level through the head office, as well as at a store level • As a business, EST Africa has a focus on improving the trading term packages allocated by suppliers to independent traders and has adopted a transparent business formula allowing both members and suppliers to reach their full potential • The EST Africa strategy for growth focuses both on increased turnover within the current member base, as well as expansion of the member footprint, enhanced warehousing, distribution and re-distribution capabilities, targeted regional ranging and specialist category expansion, developing a consummate customer understanding and enhanced customer communication both at Group and member level • Ongoing focus will remain on using the Group’s buying power to achieve best-in-class trading terms to optimize profitability both for itself and its member base. In addition, a relentless drive to increase sales in Sub-Saharan Africa is a primary pillar of the Group’s expansion strategy, with the Elite Star member base firmly focused on the African market, based primarily on the development of member export capability | Elite Star Trading Africa | Organisational Structure

4. Organisational Structure Foods • The Foods Division is organised as a voluntary association of member shareholders • Shareholding in the Foods business currently comprises: Devland Cash & Carry (Shiraz Ghatoo and Mahomed Ghatoo), Yarona Cash & Carry (Mohammed Ameen Daya, Ebrahim Amin Delair, Ebrahim Shabir Chunara and Muhammed Ebrahim Choonara), 1 Up Supermarket (AjmundienGaffoor) M Premjee & Sons (VrajlalPremjee) Woermann & Brock (JeskoWoermann Namibian) A1 Supermarket (FarriedLatib) Louis Greeff (MD Elite Star) and Mohamed Abdul Samad Varachia • These shareholders also have a joint 50% interest in the Temblor Trading shareholding • The balance of 50% in Temblor Trading is jointly owned across the member base. • The total Foods member base is either defined as Shareholder or Owner-managed members, and includes independent wholesale and retail operators • Shareholder members partake in profit-sharing derived primarily from rebates - Members of this type do not pay any monthly fees • Owner-managed members do not share in group profits, and are responsible for payment of a monthly administration fee based largely on the number of accounts held • Within the Group, each member store is owner-managed | Elite Star Trading Africa | Organisational Structure

5. Organisational Structure Foods (cont.) • A minimum of R3m turnover per month is needed to qualify for membership, and in return, members receive the following benefits : • Bulk buying discounts passed onto members and, in turn, to their customer base • Significant proportion of trading terms fed back into member base • Relentless Group focus on input pricing – passed through to members • Group expertise in customer (trader) buying behavior – national and regional • Strong Group relationship with suppliers • Access to the export market • Supplier incentives negotiated on their behalf • Annual Tradeshow • Buying Interventions held at member stores | Elite Star Trading Africa | Organisational Structure

6. Organisational Structure Hardware • The Hardware and Building Supplies division was established in 2012 and is known as Temblor Trading (Pty) Ltd T/A EST Building • All businesses within EST Building operate as independent owner-managed organisations • Members have access to a voluntary portion of a 50% shareholding in Temblor Trading • All members are shareholders • Dividends are paid based on members’ contribution to annual purchases on preferred suppliers • No centralised supplier accounts are run by the Group, each member being responsible for its own financial and credit relationship with suppliers • Members benefit from Terms negotiated at a Group level with a maximum of 1% held back • Purchasing is conducted at a Group level through Head Office, as well as at a store level • Future plans for the Hardware division include a franchise model which will incorporate elements of common branding and marketing support | Elite Star Trading Africa | Organisational Structure

7. Organisational Structure Management Structure Chief Executive Officer Louis Greeff Foods Building & Hardware EST Africa (Pty) Ltd (Foods) EST Building (Building & Hardware) Merchandise Director Mohamed Varachia Merchandise Director Rob Suttle Merchandise Executive Ben Snyman Group Buyer Pat Nadasen GroupBuyer Justice Cook | Elite Star Trading Africa | Organisational Structure

8. Organisational Structure Vision • The South African trading environment is an exercise in competitiveness for all players • Within this environment, Elite Star Trading aims to achieve and ensure best-in-class standards in respect of back-end margin (rebates and trading terms), as well as supply pricing strategies, in order to achieve optimal levels of engagement • The business adopts a transparent business formula allowing both members and suppliers to reach their full potential • Elite Star Africa has a goal to aggregate independent wholesale and retail outlet purchases with their distinct store brands | Elite Star Trading Africa | Organisational Structure

9. Organisational Structure Buying Structure • Group Level • Centralised buying and price negotiation conducted at Head Office • Rebates negotiated at Head Office for all member stores. Benchmarked prices always set at head office level • Promotional pricing and jabs negotiated centrally • Approximately 90% of member’s stock is purchased through the Group Head Office • Buying department structured into: • Foods (headed by Mohammed Varachia) • Building/Hardware (headed by Rob Suttle) • Member Level • Store-level procurement conducted over and above that at a national level - approximately 10% of member’s stock • Extent of store-level buying dependent on member volume/value (i.e. what the store is able to offer the supplier) • Members hold own accounts with suppliers, the Group does not hold centralised accounts on behalf of its member base • For constructive negotiation at a store level, it is advantageous for suppliers to have a strong understanding of regional/local brands and price points as well as be observant of POP drivers in-store | Elite Star Trading Africa | Organisational Structure

10. Organisational Structure Store Formats | Elite Star Trading Africa | Organisational Structure

11. Organisational Structure Contact Details Elite Star Trading Africa (Foods and Hardware) • Head Office • Physical Address: • 18-20 Walton Road, Klippoortjie, Germiston, 1401 • Postal Address: • PO Box 15558, Lambton, 1414 • Telephone: +27 11 383 1900 • Fax: +27 11 383 1900 • email: info@estafrica.co.za Merchandise Executive: Ben Snyman National Buyers: Pat Nadasen Kevin Barrett Administration Department: Hamid Ahmed Business Development Executive: Bryan Williams | Elite Star Trading Africa | Organisational Structure

12. tel +27 [0] 31 303 2803 fax +27 [0] 31 303 4560 info@tradeintelligence.co.za Kate Shirley | Retail Analyst New Channels Maryla Masojada | Lead Analyst Disclaimer These materials and the information contained herein are collated by TI* referencing a wide range of public domain data sources, face-to-face interviews, retailer presentations and financial reports, and are intended to provide general information about the South African consumer goods trading environment and selected retailers, and are not intended as an exhaustive treatment of such subjects. Whilst every effort has been made to ensure that the information published in this work is accurate, your use of these and the information contained herein is at your own risk. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business, and TI makes no express or implied representations or warranties regarding the accuracy of the information herein. TI will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein. TI expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy. * TI refers to The Retail Workshop (Pty) Ltd trading as Trade Intelligence Disclaimer These materials and the information contained herein are collated by TI* referencing a wide range of public domain data sources, face-to-face interviews, retailer presentations and financial reports, and are intended to provide general information about the South African consumer goods trading environment and selected retailers, and are not intended as an exhaustive treatment of such subjects. Whilst every effort has been made to ensure that the information published in this work is accurate, your use of these and the information contained herein is at your own risk. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business, and TI makes no express or implied representations or warranties regarding the accuracy of the information herein. TI will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein. TI expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy. * TI refers to The Retail Workshop (Pty) Ltd trading as Trade Intelligence www.tradeintelligence.co.za