ANNUAL RESULTS PRESENTATION

for the year ended 30 September 2017

Agenda

• Year Under Review

• Financial Review

Group Performance

• Divisional Performance

Essential Foods

Groceries

International

• Strategy Update

• Outlook

• Questions

Salient Features

• Local trading environment progressively weaker

• Pricing challenges in beverages and cereals

• African exports inhibited by poor economic conditions

• Dried fruit pricing and currency impacted performance

• Maize position cleared

• Operating cost discipline maintained

• Cash generation positive

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

No

v-1

5

Dec

-15

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

ASK‘d Food Index

ASK'd Value ASK'd Volume

There is a trended real value loss vs. last year across the Total Food Basket, aligned to the continued downward sentiment in consumer confidence.

Source: ASK’d Sep 17

Total SA Food Performance

YTD Sep 2017 12 MM 6MM 3MM

ASK’d Value 2.1% -0.5% -1.1%

ASK’d Volume -3.2% -3.8% -3.1%

Total SA Food Performance

Source: ASK’d Oct 17

Year ended 30 September 2017

Revenue -5% to R19.6bn

Adjusted operating profit* -44% to R1.28bn

Operating margin From 11.0% to 6.5%

Adjusted HEPS* -50% to 442 cents

Cash generated by operations +50% to R2.58bn

Final dividend declared 260 cents

Financial Review

* Adjusted for Phase I B-BBEE (charge)/income and for related hedge, as well as items of a capital nature and once off M&A costs

Major Categories –Unfavourable Movement

Full year Contribution 1H2017

Maize R408m 47% R357m

International Fruit R195m 22% R105m

Local & International Beverages R273m 31% R152m

R876m 100% R614m

Profit Movement Analysis

Source: IRI Sep 2017

12MM Oct 2016 – Sep 2017

Value Share

Share points change

27.8% -3.2%

28.7% -0.1%

30.5% -1.8%

37.9% -1.9%

17.1% -0.2%

24.3% 2.8%

29.3% -0.9%

Bak

ery

Power Brands

Flo

ur

31.630.3

12MM Sep 16 12MM Sep 17

1 Measured as weighted average of Pioneer Foods’ share in 18 categories in which it operates. TEG only. Including DOB’s.

Corporate Share1

Value Share by Brand – full yearBrand Performance

Bak

ery

Source: IRI Sep 2017

Power Brands 12MM 3MM

27.8% 28.7%

Flo

ur

28.7% 28.7%

30.5% 33.7%

12MM Sep 2017 versus 3MM Sep 2017

37.9% 37.7%

17.1% 17.2%

24.3% 26.5%

29.3% 30.0%30.3

31.3

12MM Sep 17 3MM Sep 17

1 Measured as weighted average of Pioneer Foods’ share in 18 categories in which it operates. TEG only. Including DOB’s.

Corporate Share1

Value Share by Brand – final quarterBrand Performance

Group PerformanceFelix Lombard

Financial Overview

Volumes

-5%to 2.56 million tons

Adjusted headline earnings

-50%to R822.6 million

EPS

-57%to R3.90

Net cash generated from operations

+50%to R2.58 billion

Total dividend maintained at

R3.65per share

Adjusted ROA

-49%to 14.8%

Turnover

-5%to R19.575 billion

2017 2016 %

R million R million change

Volumes ('000 ton) 2,479 2,597 -5%

Revenue 19,575.0 20,599.7 -5%

Cost raw materials and packaging 11,845.0 12,195.7 -3%

Naked margin 7,730.0 8,404.0 -8%

Naked margin % 39.5% 40.8% -3%

Gross profit % 26.3% 29.5% -11%

Operating cost 6,453.3 6,130.8 5%

Adjusted operating profit 1,276.7 2,273.2 -44%

Operating margin adjusted 6.5% 11.0% -41%

Group Operational Income Statement

Beverages and maize the major

detractors in absolute terms.

Group sales price inflation of

0%. Mainly result of major price

deflation in maize.

Deflation in soft commodities

and volume declines.

Volume decline resulted in

overhead under recovery.

Cash cost well contained on an

absolute basis.

2017 2016 %

R million R million change

Adjusted Operating Profit 1,276.7 2,273.2 -44%

Once-off merger and acquisition costs -17.6 -

Phase I B-BBEE share-based payment (charge)/income and related hedge -102.9 44.8

Items of a capital nature -57.0 21.3

Net profit on disposal of PPE, intangible and AFS financial assets 10.6 20.4

Fair value adjustment of step-up from joint venture to subsidiary -18.7 -

Net (loss)/profit on disposal of equity accounted investments and subsidiary -17.7 24.2

Impairment of goodwill, intangible and AFS financial assets -31.2 -23.3

Operating profit 1,099.2 2,339.3 -53%

Investment income 22.3 46.8 -52%

Finance costs -196.8 -167.3 18%

Share of profit of investments accounted for using the equity method 44.4 99.3 -55%

Share of items of a capital nature of investments accounted (equity method) 15.9 1.1

Profit before income tax 985.0 2,319.2 -58%

Income tax expense -258.8 -629.0 -59%

Profit for the year 726.2 1,690.2 -57%

Understanding Adjustments

Result of major decline in PFG

share price. Phase I B-BBEE

liability and hedge. Hedge

valued at 100% of the mark-to-

market value, whilst the liability

valued differently in accordance

with IFRS 2.

Cost related to failed corporate

transaction.

Accounting entry related to

acquiring of further shares in

Nigerian venture.

Sale of poultry assets in

Botswana.

Decline in performance of joint

ventures.

Reduced cash balances.

Divisional Income Statements

Maize and wheat volumes down.

Material price deflation in maize.

Result of maize procurement position.

Trade destocking, strong Q4 2016 and beverage decline the major

detractors. CSD’s (exited) a major contributor.

Major prime cost inflation resulted in high single to double digit price

inflation over all categories.

Result of volume declines.

Low dollar fruit prices and rand strength.

Result of margin and volume declines.

Dried fruit exports materially down on back of smaller crop in 2016.

Decline in African exports. UK volumes grew strongly.

2017 2016 %Essential Foods R million R million change

Volumes ('000 ton) 2,090 2,133 -2%

Revenue 12,469.8 12,854.8 -3%

Adjusted operating profit 800.2 1,249.5 -36%

Operating margin adjusted 6.4% 9.7% -34%

2017 2016 %Groceries R million R million change

Volumes ('000 ton) 288 332 -13%

Revenue 4,402.7 4,695.1 -6%

Adjusted operating profit 357.0 541.6 -34%

Operating margin adjusted 8.1% 11.5% -30%

2017 2016 %International R million R million change

Volumes ('000 ton) 135 161 -16%

Revenue 2,702.5 3,049.8 -11%

Adjusted operating profit 121.5 484.2 -75%

Operating margin adjusted 4.5% 15.9% -72%

2017 2016 % 2017 2016 %

R million R million change R million R million change

Other 179.3 160.3 12% 20.4 24.5 -17%

Bokomo Botswana 554.6 642.4 -14% 17.7 48.3 -63%

Bokomo Namibia 278.9 282.5 -1% 7.5 8.2 -8%

Heinz Foods SA 374.9 379.7 -1% -26.8 5.9 -555%

Food Concepts Pioneer Ltd (YTD) 70.0 56.0 25% 2.9 1.0 180%

Future Life Health Products 148.4 115.9 28% 17.3 11.4 51%

Weetabix East Africa 41.8 - 5.3 -

1,647.9 1,636.8 44.3 99.3

Turnover - PF G share Share of PAT*

Inability to recover primary

inflation in market. Volume

decline. Overhead cost

challenge.

Acquired share in March.

Performed well notwithstanding

political challenges.

Performance of Joint Ventures and Associates

Became a subsidiary during the

year. Excellent volume growth.

Maize procurement position.

Poultry business sold during the

year.

* Before items of a capital nature

2017 2016 %

R million R million change

Net cash profit from operating activities 1,661.4 2,667.9 -38%

Change in working capital 751.7 -774.5

Inventory 178.2 -490.3

Debtors 271.0 -48.9

Creditors 302.5 -235.3

Cash effect from hedging activities 165.8 -174.6

Net cash generated by operations 2,578.9 1,718.8 50%

Working capital as % of

turnover decreased from

16.8% to 13.7%.

Soft commodity deflation and

SSC implementation major

contributors.

Started the year with “out of

the money” futures.

Cash Flow Analysis

2017 2016 %

R million R million change

Additions of PPE and intangible assets -612.4 -469.2 30.5%

Replacements of PPE and intangible assets -347.5 -339.9 2.2%

Proceeds on disposal of PPE and intangible assets 71.4 69.3

Business combinations -8.7 -146.9

Proceeds on disposal of joint venture 5.8 -

Proceeds on disposal of subsidiary - 62.3

Investment in associates and joint ventures -191.5 -200.5

Interest and dividends received 106.6 71.0 50.1%

Proceeds on disposal of available-for-sale assets and loans 18.8 -29.0

Net cash flow from investment activities -957.5 -982.9 -2.6%

Investment program on existing

assets nearly completed.

Completion of Weet-Bix and

Aeroton Bakery the major

spend in 2017.

Cash Flow Analysis

Investment in Weetabix East

Africa in 2017, Future Life 2016.

Bowman’s and Bokomo

Botswana the major

contributors.

978

166

(97)

501

612

(200)

-

200

400

600

800

1,000

1,200

2013 2014 2015 2016 2017

Rm 15% 3% -1% 6% 8%

Net Debt Equity Ratio

excl RMB

509

* Excludes B-BBEE (third party) debt

RmDebt levels still low despite

difficult operating year and

high capital investment.

Group net debt and debt equity ratio*

132

221

332365 365

0

50

100

150

200

250

300

350

400

450

2013 2014 2015 2016 2017

Cents per share

+16%

+67%

260

46c

8646

237

Final

nal

156

+50%

3.1 2.7 2.2 2.2 1.1Dividend

cover

+10%

46

6595 105

Interim

105

260

0%

Able to maintain dividend as result of strong

cash-flow. Optimistic that 2018 will deliver

turnaround performance.

Dividend per share and cover*

• Adjusted Headline Earnings divided

by total dividend (excluding dividend

on treasury shares).

Divisional Performance

ESSENTIAL FOODSRiaan Heyl

Essential Foods Salient features at a category level

• Deflation not bolstering category demand

• Maize volume recovery since June

• Wheat demand remains muted

• Bread volume resilience in TEG only

• Rice imports slowing down

Source: SAGIS, IRI, SARS Data

TEG – Top End Grocers

Performance Summary

12 Months ended 30 September 2017

VOLUMES

• Maize the major driver

• Bread and rice positive

-2%

EXTERNAL REVENUE (R12.5bn)

• All categories except bread

showing deflation in H2

• Maize deflation = 10.9% (FY)

• Wheat deflation = 4.0% (FY)

-3%

-36%

OPERATING PROFIT (R800m)

• Maize the primary contributor

• Wheat profitability regressed -

duty uncertainty and competitive

landscape

• Bread/Rice/Pasta/Dried

Vegetables contributing

positively

-34%

OPERATING MARGIN

• 2017: 6.4%

Essential Foods

Maize

• 2016 procurement strategy

• Remained lossmaking

• White Star brand leadership maintained1

• Profitability & share reversed July 2017

• White Star Instant Porridge making inroads

OUTLOOK

• Category growth given SA stock position & consumer value

• White Star, SA’s favourite maize meal2, to sustain profit normalisation

Essential Foods

1 Source: IRI2 Sunday Times Top Brand Survey 2017

Wheat / Bread / Pasta

• Wheat duty uncertainty

• Milling profitability regressed

• Aeroton bakery investment per plan

• Western Cape bread competition

• KZN bread capacity constraints

• Local pasta vs imports (wheat duty)

OUTLOOK

• Impact of affordable maize on bread demand

• Shakaskraal capability early 2018

• KZN wheat milling late 2018

Essential Foods

Rice / Dried Vegetables

• Rice supply chain efficiency improved

• Strong rice volume performance

• Spekko leading brand in TEG (July - Aug 2017)1

• Profitability of dried vegetables maintained

OUTLOOK

• Impact of cheaper maize on rice demand

• Full year rice supply chain benefits

Essential Foods

1 Source: IRI (Volume share)

Outlook

• Sufficient global and local soft commodity supply

• Maize profitability restored

• Wheat duty and currency uncertainty to remain

Increased wheaten value chain competition

Impact of maize meal affordability on wheat based products and rice

• Essential Foods positioned for growth

Fixed capital investment and capacity

Accelerated brand investment

• Cost and efficiency focus to be maintained

Essential Foods

Divisional Performance

GROCERIES Martin Neethling

Performance Summary

12 Months ended 30 September 2017

VOLUMES

• All categories record declines-13%

EXTERNAL REVENUE (R4.4bn)

• Category volume pressure

• Constrained consumer spend

• Moderate summer

• CSD exit

-6%

-34%

OPERATING PROFIT (R357m)

• Primary input cost inflation not

fully recovered from market

• Fixed costs

-30%

OPERATING MARGIN

• 2017: 8.1%

Groceries

Martin – use this commentary together

with previous slide

• Significant year-on-year input inflation

• Category volume growth in only 4 of 11 categories

• Price competition and increased discounting

Trade destocking

Increased trade investment did not deliver gain

• Intensified pursuit of value

• Discontinued CSD’s

• Long Life Juice the major profit underperformer

GroceriesPerformance Summary

Cereals – A Price Story

• Category showing some resilience - 2.1% volume growth

• Constrained regional trade results in export stock round-tripping

• Disrupted pricing levels

Barriers

Confusion

Relativities

• Weet-Bix maintains value share1

Groceries

1 Source: IRI

Beverages – Market Dynamics

• Cooler summer

• LLFJ category flat in volume

• Revenue regression driven by

Private Label CSD exit

LLFJ volume

• Strong resistance to higher prices in LLFJ

• Liquifruit maintains value share

• Dilutables category volume declined by -10.2%

• Wild Island and Fruitree under pressure due to competitor pricing activity

Groceries

Balance of Portfolio – Relative Success

• Significant improvement in fruit and nut margin performance – bolstered by favourable mix

• Volume share gains in Moir’s baking aids in a growing market

• Black spreads shows real volume growth, translating into market share gains

Groceries

Outlook – Restore the Core

• Volume growth in cereals

Relative pricing, shelf health, Weet-Bix

• Market share recovery in LLFJ

Innovation driver, improved service levels

• Lipton low sugar reboot

• Strong brand refresh in snacks

• Further honing of the portfolio

• Manufacturing interventions to deliver

Groceries

Divisional Performance

INTERNATIONAL Thushen Govender

Performance Summary

12 Months ended 30 September 2017

VOLUMES

• Africa and fruit volumes

remained under pressure

• UK delivered solid performance

-16%

EXTERNAL REVENUE (R2.7bn)

• Impacted by constrained African

markets

• Record low USD fruit pricing

-11%

-75%

OPERATING PROFIT (R122m)

• Volatile currency and basket

volume decline negatively

impacted operating profit

-72%

OPERATING MARGIN OPERATING MARGIN

• 2017: 4.5%

International

Exports

• Macro economic conditions in key markets impact performance

• Consequent price recovery of cost push constrained

• Credit default and associated mitigation measures impede sales growth

• Tier 2 markets show double digit volume growth

International

Fruit Exports – “The Perfect Storm”

• Increased competition for supply of SA dried fruit drives up raw material pricing

• Global USD pricing drops to an all time low

• Strengthening Rand post procurement

• Limited carry in stock from 2016

International

• Stream Foods integration concluded and the NPD pipeline on track

• Core business volume growth sound

• Drag on price increases to mitigate the impact of Brexit impairs performance

• European export opportunities pursued

• In-house capability leveraged to re-engineer product offering

• Further bolt-on opportunities being considered

United KingdomInternational

• Recovery of African export markets incremental

Choice of in country partners critical

Select market development a priority

• Increasing USD pricing on raisins

Increasing competition for SA raisin supply

Procurement price expectations elevated

• UK - healthy snacking remains on trend

Weaker GBP provides export opportunity

• Nigerian capacity expansion planned

Outlook

International

STRATEGY UPDATE

Tertius Carstens

CEO

Strategy

• Broad strategic themes entrenched

Drive above market growth

Continue to enhance competiveness

• Restoring the core takes precedence

Performance in maize, local beverages and cereals

Growth investments to deliver

African export market development

• Acquisitive vigilance

Focus on geographies and categories where present

Heinz Foods SA

• Capital expenditure

Ahead of investment curve for existing business

Outlook

• SA - Forecasts point to frail economic conditions to prevail

Political uncertainty and volatile currency to endure

Soft commodity deflation in the system

• UK - Brexit uncertainty to drag on

Continue to leverage key capabilities although pricing a remaining challenge

• Africa - Key market recovery slow given currency and credit risk

Partner relationship and choice key

• Western Cape drought - mitigation, alternative sourcing where possible

Impact on raw material - wheat, dried tree fruit, concentrates

• 2018

Local maize, beverages and cereals to rebound

African beverage exports: slower recovery

International vine fruit to improve

QUESTIONS?

THANK YOU

This document contains forward looking statements that, unless otherwise indicated, reflect the company’s expectations as at 20 November 2017. Actual results may differ

materially from the company’s expectations if known and unknown risks or uncertainties affect the business, or if estimates or assumptions prove to be inaccurate. The company

cannot guarantee that any forward looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on these forward looking statements. The

company disclaims any intention and assumes no obligation to update or revise any forward looking statement even if new information becomes available as a result of future

events or for any other reason, save as required to do so by legislation and/or regulation.