Store Footprint Report

1. Store Footprint Report

2. Store Footprint Store Formats | Elite Star Trading Africa | Store Footprint

3. Store Footprint Store Format | Foods • Non standardised, own branded stores servicing the needs of the local customer base | Elite Star Trading Africa | Store Footprint

4. Store Footprint Store Format | Foods (cont.) • Exteriors • Easy vehicle access and plenty of parking for traders characterise EST member stores | Elite Star Trading Africa | Store Footprint

5. Store Footprint Store Formats | Foods(cont.) • Interiors • The majority of stores offer typical big box, wholesale trading environments, with an emphasis on bulk pack merchandising and sales | Elite Star Trading Africa | Store Footprint

6. Store Footprint Store Formats | Foods (cont.) • Interiors • Stores offer clear, easy in-store access for customers and stock pickers, with some congestion on busy trading days and where the store lacks storage capacity | Elite Star Trading Africa | Store Footprint

7. Store Footprint Elite Star Trading Africa | Total Store Count • Elite Star Trading Africa has a presence of 878 member outlets across South Africa, Namibia, Botswana, Lesotho and Swaziland • The Group’s members fall into either the Foods or Hardware Division • Foods contributes 26% to the total number of member stores within the Group, with 228 outlets as at July 2018 • The Group hosts 650 Hardware member stores as at July 2018 and continues to report growth out of this division | Elite Star Trading Africa | Store Footprint

8. Store Footprint Elite Star Trading Africa | Foods Store Count and Growth • Total Foods • The Foods Division of EST Africa reported a decline in footprint of -6.3% from July 2016 to July 2017 • However, from July 2017 to July 2018, member store numbers increased +16.9% to a total of 228 • When examined at a regional level, an increase in member outlets within South Africa was the leading driver of growth at +19.3% • Foods in South Africa • Within the Foods Division, South African member outlets comprise 73% of the total food store footprint • Foods in South Africa saw member stores increase +19.3% with 27 net new member stores from July 2017 to July 2018, and 167 stores as at July 2018 compared to 140 in July 2017 • This is a recovery after the decline reported between July 2017 and July 2016 where numbers dropped -9.7% from 155 stores in July 2016 to 140 in July 2017 | Elite Star Trading Africa | Store Footprint

9. Store Footprint Elite Star Trading Africa | Foods Store Geographic Spread • Total Foods • Gauteng accounts for 29% of South African member stores with 49 outlets. The store footprint in Gauteng increased by 5 net new outlets (+11.4%) between July 2017 and July 2018 • Mpumalanga has the second largest share with 30 stores, accounting for 18% share after the addition of 11 new outlets (growth: +57.9%) • North West accounts for 13% of spread, with 21 stores, after the addition of 3 net new outlets (+16.7%) KwaZulu-Natal accounts for 8% of spread, with 13 stores. The +3 net new store represent +30% growth Northern Cape reported +40% growth, albeit off a low base, with 2 net new outlets, accounting for 4% of spread The Free State also accounts for 4% of spread with 7 member stores. The Free State is the only province to report a net closure (-12.5%) between July 2018 and July 2017 | Elite Star Trading Africa | Store Footprint

10. Store Footprint Elite Star Trading Africa | Foods Non-SA • 27% of the EST Africa Food member store footprint is located outside of South Africa, with outlets in Namibia (92%), Botswana (5%), and the remainder in Lesotho and Swaziland, with one store each • Non-SA saw member store growth of +10.9% from July 2017 to July 2018, with 61 stores as at July 2018 compared to 55 in 2017 • This is an acceleration of the growth reported between July 2016 and July 2017, where member store numbers increased +3.8% from 49 stores in 2016 to 51 in 2017 • Member store numbers increased across Non-SA from July 2017 to 2018 by a total of 6 stores (2017: +2) • Namibia’s member numbers increased +10% with the addition of +5 stores over the period, following the +2 from 2016 • Botswana saw the addition of 1 store, increasing the portfolio from 2 to 3 member stores | Elite Star Trading Africa | Store Footprint

11. Store Footprint Elite Star Trading Africa | Foods Planned New Store Openings • No information is available regarding planned new store openings. However, EST has identified a number of opportunities for footprint growth in the Hardware sphere, as well as outside South Africa, specifically in Zambia and Botswana | Elite Star Trading Africa | Store Footprint

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