UNAUDITED ABRIDGED FINANCIAL RESULTS FOR SIX MONTHS ENDED 30TH SEPTEMBER 2014

UNAUDITED ABRIDGED FINANCIAL RESULTS FOR SIX MONTHS ENDED 30TH SEPTEMBER 2014

REGISTERED OFFICE: OK House, 7 Ramon Road, Graniteside, P.O. Box 3081, Harare, Zimbabwe. Tel: +263 4 757 311/9. Telefax: +263 4 757 028/39Email: ok@okzim.co.zw

Revenue down 4.8% to $232.1 million

EBITDA even at $9.5 million

Profit for the period down 10.9% to $4.3 million

Earnings per share 0.37 cents

Net cash from operations up 30.1% to $8.8 million

Interim dividend of 0.19 cents per share

CHAIRMAN'S STATEMENT

OVERVIEWEconomic activity continued to be subdued in an environment characterised by liquidity constraints, widespread business failures and increased unemployment. Disposable incomes have continued to decline as has consumer demand.

Despite these challenges, the Group’s stores were adequately stocked and the Group continued to encourage and avail supply opportunities to those local producers who were able to satisfy requirements of quality and pricing. Prices of goods continued to decline as we, in conjuction with our foreign and local suppliers, reduced prices in an effort to stimulate depressed demand.

The Company’s internal basket recorded average year on year negative inflation of 5.6% at the reporting date. Under these conditions, turnover declined against that achieved in prior year. However, with better product mix and efficient procurement the gross profit margin improved. The roll-out of own in-store bakeries continues and this has started to contribute to improvement in margins. Likewise, local sourcing of fruit and vegetables has assisted improvement in availability, quality and pricing and has led to growth in sales with improved margins. Efforts to curb the increase in overheads have been successful without negatively affecting operations. Refurbishment work to improve facilities and ambience continued with the completion of works at OK Gweru and OK Mutare and with work in progress at OK Mbuya Nehanda and OK Rusape. Plans are underway to relocate the OK Houghton Park store to a larger adjacent site. This will facilitate the development of a bigger outlet with a more comprehensive offering.

GROUP PERFORMANCE

Revenue generated for the period decreased by 4.8% to $ 232.1 million while profit before taxation decreased by 10.8% to $ 5.8 million from $ 6.5 million in the prior year. Profit after tax was $ 4.3 million from $4.8 million in the prior year, a decrease of 10.9%. Overheads increased by 4.5% from $ 34.7 million to $ 36.3 million. This is mainly attributable to the depreciation expenses that have continued to increase as new equipment is installed in the refurbished branches and new shops are opened. Electricity supply is not reliable, so the company had to resort to the use of generators for alternative power with significant and prolonged power cuts occurring in August and September. Security measures to combat shrinkage will continue to be enhanced. Working capital management improved the impact of which, combined with that of profitable operations, led to increased cash generation by 30.1% to $ 8.8 million.

Capital expenditure for the period was $ 5.5 million compared to $ 6.3 million in the prior year. This expenditure was mainly on store refurbishment work, replacement of old plant and equipment and enhancement of the distribution fleet.

DIVIDEND

The Directors have recommended an interim dividend of 0.19 cents per share to be paid to shareholders on or about the 8th of January 2015.

OUTLOOK

Despite the difficulties of the operating environment, which will worsen if certain regulatory measures to increase the landed price of imported goods are imposed, the Group will see through to proper completion the refurbishments at OK Mbuya Nehanda and OK Rusape as well as the expansion at OK Houghton Park. Additionally, a new Bon Marche branch will be opened in Harare before the end of the financial year. The Group will continue to take measures necessary to ensure the efficiency and profitability of its operations and to strengthen its position as market leader.

D B LakeChairman13th November 2014

DIVIDEND ANNOUNCEMENT

NOTICE is hereby given that on the 13th of November 2014 the Board of Directors declared an interim dividend (number 19) of 0.19 cents per share payable out of the profits of the Group for the half year ended 30th September 2014.

The dividend will be payable on or about the 8th of January 2015 in United States Dollars to shareholders registered in the books of the Group at the close of business on 28th of November 2014.

The share register of the Group will be closed from the 29th of November 2014 to the 1st of December 2014.

By order of the BoardH NharingoGroup Secretary

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the half year ended 30 September 30 Sep 30 Sep 2014 2013 US$ US$ Unaudited UnauditedRevenue 232,050,599 243,622,804 Changes in trade inventories (3,954,408) 1,222,763 Merchandise and consumables used (185,907,419) (203,626,914) Employee benefit expense (16,029,536) (15,991,054) Depreciation expense (3,172,038) (2,554,754) Share option expense (410,000) (405,000) Net operating expenses (16,640,884) (15,725,517) Finance costs (138,771) (11,439)Profit before taxation 5,797,543 6,530,889 Taxation (note 5) (1,492,867) (1,698,031)Profit for the period 4,304,676 4,832,858 Other comprehensive income Fair value adjustment on available for sale equity investments 5,721 8Income tax relating to components of other comprehensive income (57) -Other comprehensive income for the period net of tax 5 664 8Total comprehensive income for the period 4,310,340 4,832,866 Weighted average number of ordinary shares in issue: 1,153,898,533 1,129,243,008

Share performance - cents : attributable earnings basis 0.37 0.43 : headline earnings basis 0.37 0.43 : net asset value 6.10 5.67 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 Sep 30 Sep 31 March 2014 2013 2014 US$ US$ US$ Unaudited Unaudited AuditedAssets Non-current assets Property, plant and equipment 55,121,424 49,627,580 52,920,883Long-term receivables 1,117,451 - 1,028,639Goodwill 400,000 400,000 400,000Investments and other non-current assets 267,120 252,536 257,477Deferred taxation 36,776 - 36,776 56,942,771 50,280,116 54,643,775Current assets Inventories 46,889,941 47,845,901 42,986,745Trade and other receivables 5,127,877 8,176,490 6,238,736Short-term loans 131,571 48,076 23,074Cash and cash equivalents 14,574,189 15,892,727 13,148,577 66,723,578 71,963,194 62,397,132Total assets 123,666,349 122,243,310 117,040,907

Equity and liabilitiesCapital and reserves Issued share capital 115,798 115,464 114,328 Share premium 27,458,688 26,084,452 26,124,348 Share based payment reserve 1,300,906 2,414,501 890,906 Investment reserve 63,579 54,050 57,915 Revaluation reserve 5,626,819 5,626,819 5,626,819 Non-distributable reserve 9,820,399 9,820,399 9,820,399 Retained earnings 26,032,677 19,959,648 24,268,252 70,418,866 64,075,333 66,902,967Non-current liabilities Deferred taxation 8,025,407 6,762,009 7,729,440Long-term borrowings (note 6) 2,200,739 2,000,000 2,774,963 10,226,146 8,762,009 10,504,403Current liabilities Trade and other payables 40,544,198 45,617,145 37,720,433Short-term borrowings (note 6) 1,391,531 2,500,000 1,391,531Current tax liabilities 1,085,608 1,288,823 521,573 43,021,337 49,405,968 39,633,537Total equity and liabilities 123,666,349 122,243,310 117,040,907

CONSOLIDATED STATEMENT OF CASH FLOWS For the half year ended 30 September 6 months to 6 months to 30 Sep 30 Sep 2014 2013 US$ US$ Unaudited Unaudited

Cash generated from operating activities Cash generated from trading (note 7) 9,451,302 9,536,534 Working capital changes 31,428 (1,719,526) Cash generated from operating activities 9,482,730 7,817,008 Net finance (costs)/income (60,083) 23,875 Taxation paid (632,922) (1,085,970) Net cash generated from operating activities 8,789,725 6,754,913 Cash utilised in investment activities to maintain operations : Replacement of property, plant and equipment (3,925,704) (1,882,035) Proceeds from disposal of property, plant andequipment 124,859 68,626 Investment to expand operationsAdditions to property, plant and equipment (1,583,372) (4,393,803) (Increase)/decrease in loans and other investments (3,922) 78 Increase in long-term receivables (88 812) -Net cash invested (5,476,951) (6,207,134)

Financing activitiesDividend paid (2,540,251) (4,506,600)(Decrease)/increase in borrowings (574,224) 2,500,000Proceeds from share options exercised 1,335,810 1,749,369 Increase in short-term loan (108,497) (23,024)Net financing utilised (1,887,162) (280,255)

Increase in cash and cash equivalents 1,425,612 267,524 Cash and cash equivalents at the beginning of the period 13,148,577 15,625,203 Cash and cash equivalents at the end of the period 14,574,189 15,892,727

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITYFor the period ended 6 months to 6 months to 12 months to 30 Sep 30 Sep 31 March 2014 2013 2014 US$ US$ US$ Unaudited Unaudited AuditedShareholders' equity at the beginning of the period 66,902,967 56,390,405 56,390,405Issue of shares 1,335,810 6,953,662 6,992,422Recognition of share based payments 410, 000 405,000 623,909 Dividend paid (2, 540, 251) (4,506,600) (6,793,054) Total comprehensive income for the period 4,310,340 4,832,866 9,689,285Shareholders' equity at the end of the period 70,418,866 64,075,333 66,902,967

NOTES TO THE ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS For the half year ended 30 September 1 General Information The Group is a leading supermarket retailer whose business covers three major categories, comprising groceries, basic clothing and textiles and houseware products. At the reporting date the Group was operating from fifty nine shops countrywide and had two wholly owned subsidiaries. 2 Statement of compliance The interim financial results have been prepared in accordance with International Financial Reporting Standards,the requirements of the Companies Act (Chapter 24.03), ZSE Listing Rules and the relavant Statutory Instruments. 3 Currency of reporting The financial statements are presented in the United States Dollars, which is the functional currency of the Group.

4 Significant accounting policies The principal accounting policies of the Group are consistent, in all material respects,with those adopted in the previous year. 6 months to 6 months to 30 Sep 30 Sep 2014 2013 US$ US$5 Taxation Current income tax - Standard 1,159,405 1,309,020 - Aids levy 34,782 39,271 Withholding tax 2,770 4,872 Deferred taxation movement 295,910 344,868 1,492,867 1,698,031 6 Borrowings Long-term 2,200,739 2,000,000 Short-term 1,391,531 2,500,000 3,592,270 4,500,000 The two loans from local financial institutions outstanding at reporting period had tenures of 36 months and attracted average interest of 8.12% per annum. The Masvingo property has been used as a security for one of the loans while the second loan is unsecured. 7 Cash generated from trading Profit before taxation 5,797,543 6,530,889 Adjusted for`: Finance costs 138,771 11,439 Share option expense 410,000 405,000 Employee share participation costs - 92,860 Depreciation expense 3,172,038 2,554,754 Finance income (78,688) (35,314) Loss/(profit) on sale of property, plant and equipment 11,638 (23,094) 9,451,302 9,536,534

8 Capital expenditure 5,509,076 6,275,838

9 Capital commitments Authorised but not contracted for 10,781,900 11,671,046 10 Going concern The Directors have reviewed the prospects of the Group and are satisfied that the Group is a going concern and therefore continue to apply the going concern assumption in the preparation of these half year financial results.

DIRECTORS: D. B. Lake (Chairman), V. W. Zireva* (Chief Executive Officer), A. R. Katsande* (Chief Operating Officer), A. E. Siyavora* (Finance Director), W. N. Alexander, F. T. Kembo, H. Nkala, M. T. Rukuni, M. Tapera, R. van Solt, M. C. Jennings (Alternate) *Executive