2018/11/05, 16:00:00
Johannesburg Stock Exchange - SENS NEWS DELAYED
Sales update for the 43 weeks ended 28 October 2018

Massmart Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1940/014066/06)
Share code: MSM
ISIN: ZAE000152617
(‘Massmart’ or ‘the Company’)

Sales update for the 43 weeks ended 28 October 2018

On 6 November 2018 Massmart is hosting members of the investment community in our stores
in Lusaka, Zambia. As part of this visit, the following sales update is being provided:

Sales growth has improved since our previous update which was for the 33 weeks to 19 August
2018. All four divisions and the four major product categories reported higher sales growths,
apart for Massbuild and the DIY category where sales growths have slowed slightly after week

Massmart’s total like-on-like sales for the 43-week period amounted to R70.5 billion and
represents an increase of 3.5%, with comparable like-on-like store sales increasing by 1.7%.
Product deflation is estimated at 0.4%.

On that same basis total sales from our SA stores for the 43-week period increased by 3.5%,
while comparable sales increased by 2.0%.

Total sales from our ex-SA stores measured in constant currencies* for the 43-week period
showed sales growth of 5.0% with comparable sales declining by 0.1%, while in Rands these
were an increase of 3.4% in total and a decline of 1.8% on comparable store sales.

As noted in previous announcements this year, for statutory reporting purposes Massmart will
be adopting IFRS 15 and will be using the ‘modified retrospective approach’, which requires that
the comparative period not be restated. This non-restatement makes comparison with the prior
period difficult, particularly as Shield’s sales (in Masscash) are included in revenue on a gross
basis during 2017.

Using this modified retrospective method per IFRS 15, total sales for the 43-week period of
R70.5 billion represents a decline of 1.5%, with comparable store sales declining by 3.3%.

The information above has not been audited or reviewed or otherwise reported on by the
Company’s external auditors.

‘* The constant currency information included in this sales update has been presented to
illustrate the Group’s underlying ex-SA business performance, in terms of sales growth,
excluding the effect of foreign currency fluctuations. In determining the application of constant
currency, sales for the prior comparable financial reporting period have been adjusted to take
into account the average daily exchange rate for the current period. The table below depicts the
percentage change in sales in both reported currency and constant currency for the given
material currencies.
                                                                 Sales growth in:
                                                     Reported Currency     Constant Currency
 Mozambique Metical                                       12.7%                    8.9%
 Nigerian Naira                                            -6.3%                  -0.6%
 Zambian Kwacha                                           17.1%                   25.9%

5 November 2018

Sponsor: JP Morgan Equities South Africa (Pty) Ltd

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