REVIEWEDANNUAL RESULTSfor the year ended 28 February

2017

2

Contents

REVIEW OF THE YEAR

TRADING AND FINANCIAL PERFORMANCE

OUTLOOK

QUESTIONS

3

Ivan Saltzman

REVIEW OF THE YEAR

4

Opened

11 new stores increasing thestore foot print

to 108

Opened our

100th storein Mall of Africa

OpenedDurban DC

14 400m²

Cape Town DCbeing completed

15 693m²

Listed 27.5% shares on the JSEin November 2016

Increased Delmas DC space by

3 250m²

Second largestIPO

on the JSE

Operating profit

▲24%to R1.1bn

Wholesaleturnover

▲ 22%

Operating margin was maintained

Total newWholesale space of

33 343m²will be added

Retail turnover

▲15%

Retail L-F-Lgrowth of

9.1%

Retail volumegrowth

Retail operating margin

▲40 bps

5

Rui Morais

TRADING AND FINANCIAL PERFORMANCE

6

Group Financial Highlights

1. Assuming adjusted share base in the prior year

Retail turnover

▲15%to R15.6bn

Wholesale turnover

▲22%to R10.9bn

Turnover

▲15%to R17.3bn

Return on equity

▲ to 67%from 53%

Net working capital

improved to 43 daysfrom 50 days

Operating margin

▲ to 6.5%from 6.0%

AdjustedHEPS

69.2 cps

Adjustedheadline earnings

▲31%to R565m

from R432m

HEPS

▲22.5%to 74.7 cps¹

7

Group Financial Summary

R’m 2017 2016 % changeTurnover 17 268 15 061 14.7

Gross profit 4 209 3 526 19.4

Other income 605 440 37.6

Operating expenses (3 679) (3 060) 20.3

Transaction costs (8) - 100.0

Net finance costs (225) (89) 152.6

Taxation (247) (242) 2.0

Net profit after tax 655 575 13.8

8

Group Financial Summary

R’m 2017 2016 % changeProperty, plant and equipment 995 920 8.2

Inventory 3 234 2 807 15.2

Other assets 1 540 1 443 6.7

Net cash and bank 128 (1 257)

Finance lease liability (625) (654) -4.4

ABSA loan (796) - 100

Trade and other payables (2 641) (1 754) 50.6

Other liabilities (705) (665) 6.0

Equity (1 130) (840) 34.5

9

Turnover

• Turnover growth underpinned by volume growth, maturing stores and addition of space

• Like-for-like turnover growth improved to 9.1% from 8.5%

R’m 2017 2016 % change % LFL % inflation

Retail 15 646 13 573 15.3 9.1 6.5

Wholesale 10 918 8 933 22.2

Intergroup (9 296) (7 445) 24.9

Total Group 17 268 15 061 14.7

10

Turnover Growth

11 60813 573

15 646

1 3031 488

1 622469 689 820 172 339

6721 064 132

12 91115 061

17 268

2015A New stores(year 1)

Full yeareffect

(year 2)

Like-for-like Wholesale 2016A New stores(year 1)

Full yeareffect

(year 2)

Like-for-like Wholesale 2017A

RetailWholesale

Growth

# of stores

Space (000m²)

14

16.9

11

16.1

16.7%

73

115.6

11

13.6

14

16.9

14.7%

84

133.1

11

Category Contribution to Retail Turnover

% Feb 2017 Feb 2016Dispensary 36 37

Personal care and beauty 27 26

Healthcare and nutrition 21 22

Baby care 6 5

Other 10 10

12

Market Share

Market share increased in all categories

1. Prestige fragrance and cosmetics not included# Nielsons* IMS

% Dec 2016 Dec 2015Dispensary* 21.4 19.6

Personal care and beauty# / 1 15.0 12.4

Healthcare and nutrition# 43.1 38.0

Baby care# 9.1 7.4

% Feb 2017 Feb 2016Fine Wholesale* 25 23

13

Wholesale Turnover

• Wholesale turnover up 22% to R10.9bn

• Wholesale control of own store stock increasedto 78%. Optimum levels between 75% to 80%

• TLC turnover growth increased by 23%

• Fine Wholesale market share increased to 25%from 23%

85%

10%5%

Dis-ChemIndependent pharmaciesTLC

14

Gross Profit

• Retail gross margin improvement due to better trade terms and scale leverage

• Wholesale gross margin maintained

R’m 2017 2016 % change2017

margin %2016

margin %Retail 3 792 3 244 16.9 24.2 23.9

Wholesale 923 763 21.0 8.5 8.5

Intergroup (506) (480) 5.4

Total Group 4 209 3 527 19.4 24.4 23.4

15

Other Income

• Increase in Retail and Wholesale partly due to the renegotiation of Midrand DC lease and certain store leases

• Excluding the above, other income increased by R148 million from better terms and scale leverage

R’m 2017 2016 % changeRetail 611 430 42.1

Wholesale 91 97 -6.2

Intergroup (97) (87) 11.5

Total Group 605 440 37.6

Renegotiated lease terms (109) (92) 18.5

Other income excl renegotiated lease terms 496 348 42.5

16

Operating Expenditure

• Overall costs increased due to costs associated with the increase in Warehouse and Retail space

• It is expected expenses will grow at a lower rate than turnover in the coming financial year

R’m 2017 2016 % changeDepreciation and amortisation 162 151 7.3

Occupancy costs 504 434 16.1

Employment costs 2 038 1 676 21.6

Transaction costs on listing 8 - 100.0

Other operating costs 975 799 22.0

Total Group costs 3 687 3 060 20.5

% of turnover 21.4% 20.3%

17

Operating Profit

• Operating profit increased by 24% to R1 127m

• Retail margin increased by 40 bps while the Wholesale margin was maintained

• The Group’s operating margin increased by 50 bps to 6.5%

R’m 2017 2016 % change2017

margin %2016

margin %Retail 1 102 901 22.3 7.0 6.6

Wholesale 93 71 31.0 0.9 0.8

Intergroup (68) (65) 4.6

Total Group 1 127 907 24.3 6.5 6.0

18

EPS and HEPS

• The decrease in EPS and HEPS is a result of the significant change in weighted average number of shares (WANOS) in FY2017 due to the group restructuring before listing on the JSE

• On the assumption that the WANOS would have remained the same across both the 2017 and 2016 financial year, then HEPS and adjusted HEPS would have increased by 22.5% and 30.8% respectively

Cents per share 2017 2016 % changeEPS 75.0 212.0 -64.6

HEPS 74.7 206.0 -63.7

Adjusted HEPS 69.2 178.8 -61.3

Adjusted HEPS (CY WANOS) 69.2 52.9 30.8

WANOS (millions) 816.6 241.8

19

Adjusted HEPS

R’m 2017 2016 % changeHeadline earnings 610 498 22.5

Items deemed to relate to capital structure of group

Finance lease obligation renegotiation (80) (92)

Operating lease renegotiation (29) -

Items related to neither Retail nor Wholesale day-to-day operations

Fair value loss relating to non-hedging derivative 36 -

Items not expected to reoccur

Transaction costs on listing 8 -

Taxation 20 26

Adjusted headline earnings 565 432 30.8

WANOS (millions) 816.6 241.8

Adjusted headline earnings per share (cps) 69.2 178.8

20

Working Capital

• Improvement in overall working capital due to a concerted effort made by management specifically in regards to average creditors’ days

• The Group is expected to maintain the overall working capital position between 40 and 45 days going forward

2017 2016 % changeDebtors days 20 17 15.3

Inventory days 84 81 4.1

Creditors days 61 48 26.9

Total working capital 43 50

21

Cash Management

1 276 1 384

218

708

800

(69)(214)

(910)(247)

(178)

Cash inflowfrom tradingoperations

Workingcapital

movements

Net sharesissued

Loanreceived

Acquisitionof NCI andsubsidiaries

Capex andproceeds on

disposal

Dividends Tax Net financecosts

Increase incash and cash

equivalents

R’000

22

Capital Management

Continue to invest in capex through new stores, IT and movable equipment in Wholesale

2015 2016 2017Expansion capex (R’m) 169 180 148

Maintenance capex (R’m) 43 45 73

212 225 221

Maintenance capex % of turnover 0.3 0.3 0.4

Total capex % of turnover 1.6 1.5 1.3

23

Medium-term Targets

Achieved 2016 Achieved 2017 2018-2020 targetWorking capital days 50 43 40-45

New store capex (m²) 5 000 5 350 Inflation adjusted

Gross margin (%) 23.4 24.4 24.0-25.0

EBITDA (%) 7.0 7.5 7.0-8.0

Operating margin (%) 6.0 6.5 6.0-7.0

Dividend pay-out ratio (%) 40-50

24

Ivan Saltzman

OUTLOOK

25

Expanding Retail Space

• 21 total new stores in FY18• Total space to be added in FY18 – approximately 26 900m² • First corporate TLC to be opened in FY18• Additional store to be opened in Namibia• Additional 20 stores under final negotiation (predominantly in FY19)• On track to reach 200 stores by 2022/2023• Space and space maturity still the main structural drivers of growth

TotalNumber of stores – February 2017 108

New stores opened until 17 May 4 Trading well

112

New stores to be opened by H1 FY18 5 Leases agreed and licences received

117

New stores to be opened from H1 FY18 to H2 FY18 12 All planned to open before Christmas trade

Number of stores – February 2018 129

26

Retail Density

• Trading density improved

• Trading density underpinned by core pharmacyfirst business model

• Digital enhances density› Click & Collect (100% of stores facilitating

Click & Collect)

› Online platform positioned to cater for growth

87.2 90.595.6

0

20

40

60

80

100

FY15 FY16 FY17

TRADING DENSITY (R000/m²)

27

Alternative formats

• Successful opening of alternative Dis-Chem format in FY17 – 670m² trading store

• Located in a convenience focussed centre

• 90% of the core range delivered

• Trading density at 125 000 per square

• Improved inventory days compared to average size store

• Corporate TLC’s (The Local Choice) to open in H1 FY18 – developing format of 300m² to 600m²

28

Wholesale

• Wholesale space increased to accommodate our future Retail growth and increase in independent fine Wholesale market share

• Target to maintain own store stock ownership from own warehouses between 75% to 80%

• TLC franchises important supply chain tool to leverage off invested Wholesale base and grow supply into independent market

2016 2017 2018Johannesburg (m²) 44 000 44 000 44 000

Cape Town (m²) 2 250 2 250 15 693 To be operational in H1 FY18

Delmas (m²) 2 780 6 030 6 030

Kwa-Zulu Natal (m²) - 14 400 14 400

Total (m²) 49 030 66 680 80 123

29

Outlook

• Inflation is estimated to be approximately 5.5% to 6.5%

• Weak consumer spending environment is expected to continue

• Resilient markets in which group operates offers protection

• Retail› Adding Retail stores to its base and leveraging off invested cost base

› Ensuring dispensary focus to drive total store density

• Wholesale› Growing independent market share

› Investigating pre-distribution market

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QUESTIONS

31

Disclaimer

This presentation is provided for information purposes only. This is a commercial communication. The information does not include a personalrecommendation and does not constitute an offer, or the solicitation of an offer for the sale or purchase of any financial product, service, investmentor security. The information, investments and/or strategies discussed here may not be suitable for all investors; if you have any doubts you shouldconsult your investment advisor.

This presentation contains certain forward-looking information and statements with respect to the financial condition and results of operations ofthe Dis-Chem Group. Dis-Chem Group has made every reasonable effort to ensure the accuracy of the information in the presentation, butforward-looking information by their very nature involve risk and uncertainty because they relate to events and depend on circumstances that mayoccur in the future. Past performance is not indicative of future results.

No assurance can be given that the forward-looking information and statements will prove to be correct and undue reliance should not be placedon such statements. Factors that could cause actual results to differ materially from those in the forward-looking information or statements include,but not limited to: global and local economic conditions; changes in legislations; changes to International Financial Reporting Standards andinterpretations; changes in trading space; changes in working capital ratios and changes in margins achieved.

The Dis-Chem Group does not undertake to update or revise any of the forward-looking information or statements, whether to reflect new or futureevents and no liability is accepted by the Dis-Chem Group whatsoever for any direct or consequential loss arising out of reliance upon all or anypart of the information contained in this presentation.