Store Footprint Report Publication date: June 2019 Next publication: March 2020 Store Footprint Report

Store Footprint SPAR Group Store Footprint SPAR International is present in 48 countries with over 246 distribution centres and over 13,000 stores. SPAR South Africa services independent retailers across eight formats in 10 countries serviced by eight distribution centres. SPAR Southern Africa increased its store network to 2,308 stores as at the end of March 2019 (FY2018: 2,236 stores). This represents +1.3% growth in retail space for HY2019 with the addition of 72 net new stores SOURCE: SPAR Group Ltd NOTE: All store numbers exclude the BWG Group and SPAR Switzerland and refer only to Southern African stores unless stated otherwise. SPAR Southern Africa includes Namibia, Botswana, Swaziland, Mozambique and Zambia

Store Footprint SPAR Group Store Footprint (cont.) SPAR Southern Africa increased its store network to 2,308 stores in HY2019 (FY2018: 2,236 stores), this represents +1.3% growth in retail space for HY2019 with the addition of 72 net new stores The Group opened a net 72 new stores in HY2019. This represents a growth of +3.2% over the six months and +19.3% over five years SPAR has 952 stores after opening a net 15 new stores in HY2019 Express opened 11 net new stores in the six months, up 39.3% to 39 stores TOPS at SPAR opened a net 25 stores in the six months bringing the total to 799 stores Build it opened a net 13 stores in HY2019 bringing the total to 389 stores SPAR Savemor is trading out of 54 stores, up a net of 6 in the last six months Pharmacy at SPAR broke the 100 mark during FY2018 ending the year with 101 stores. During the six months for HY2019 the Group opened 13 net new Pharmacies, totalling 114 pharmacies as at the end of March 2019 SOURCE: SPAR Group Ltd

Five-year Net New Stores Store Footprint Store Footprint Trading Brand FY2015 FY2016 FY2017 FY2018 HY2019 Five-year growth Total SPAR Group 1935 2033 2138 2236 2308 19.3% Total SPAR 885 890 903 937 952 7.6% SUPERSPAR 329 335 348 356  -- 13.7%* SPAR 425 426 418 428 0.2%* KwikSPAR 131 129 125 -7.4%* Express 3 4 12 28 39 1200% TOPS at SPAR 652 691 733 774 799 22.5% Build it 320 368 376 389 21.6% SPAR SaveMor 32 42 44 48 54 68.8% Pharmacy at SPAR 46 62 90 101 114 147.8% Net New Stores Trading Brand FY2015 FY2016 FY2017 FY2018 HY2019 Five-year Net New Stores Total SPAR Group 70 98 105 72 443 Total SPAR 10 5 13 34 15 77 SUPERSPAR 16 6 8  -- 51* SPAR -2 1 -8 -4* KwikSPAR -4 -11* Express 2 11 38 TOPS at SPAR 30 39 42 41 25 177 Build it 26 28 20 95 SPAR SaveMor 3 4 Pharmacy at SPAR 69 Source: SPAR Group Ltd. Note: -- Data not reported for the period. * calculated off FY2018 vs FY2014

Store Footprint SPAR Group Store Footprint (cont.) DC Size (m2) FY2018 % Contr to Total Space Total Size 289 230 100.0% South Rand 61 000 21.1% KwaZulu Natal 69 112 23.9% North Rand 53 317 18.4% Western Cape 40 405 14.0% Eastern Cape 31 685 11.0% Lowveld 21 416 7.4% Import (Build it) 10 000 3.5% S Buys 2 295 0.8% There are eight distribution centres in South Africa, six regional SPAR distribution centres and an imports (Built it) and S Buys distribution centre Making up 295,500 m² of warehousing space as at March 2019 (FY2018: 289,230 m² )* Case volumes through the DC has increased +5.2% in HY2019 to 121 million cases dispatched Non-SA stores are serviced through the South African distribution centres DC Capabilities (millions of cases) Regions FY2015 FY2016 FY2017 FY2018 HY2019 Five-year growth to FY2018 Total Cases 218.1 226.2 221.6 231.7 121.0 9.9% South Rand 57.8 60.5 62.6 61.0 --  8.2% KwaZulu Natal 51.7 52.3 49.5 51.1 2.4% North Rand 37.7 37.8 35.2 40.8 9.8% Western Cape 31.8 34.0 35.1 34.9 17.1% Eastern Cape 27.5 29.1 27.6 31.6 20.5% Lowveld 11.6 12.5 12.3 8.6% import (Build it) 1.7 2.0 2.3 -- S Buys   SOURCE: SPAR Group Ltd NOTE: *Regional data not reported for HY2019. Total case volume does not include the import (Build it) DC

Store Footprint SPAR Group Store Footprint (cont.) Store Revamps SPAR’s ongoing, clear strategic focus on organic growth, improved shopper experience and brand enhancement means maintaining the momentum of store upgrades 175 SPAR Southern Africa stores were revamped in HY2019 (HY2018: 131 stores) 89 of those were under the Spar brand (HY2018: 80 stores) 42 TOPS at SPAR stores were revamped (HY2018: 29 stores) 35 Build it and 9 SPAR Savemor Non-SA Stores As at December 2018 the SPAR South Africa DCs were reportedly distributing to 169* Non-SA stores, this is a net increase of 12 stores Country Spread – Dec 2018 Regions SUPERSPAR SPAR TOPS at SPAR SAVEMOR Pharmacy at SPAR Total TOTAL 27 68 62 8 4 169 Namibia 24 28   60 Botswana 26 Swaziland 3 9 2 Mozambique 14 Zambia Distribution for Non-SA is out of the regional DCs in South Africa Western Cape delivers to Namibia which opened a net of 5 new stores and now trades out of 60 stores North Rand delivers to Botswana with 60 stores having +4 net new as well as Zambia which now has 9 stores Mozambique and Swaziland receive from the Lowveld DC with 14 and 26 stores respectively, Mozambique opened a net 5 stores while Swaziland closed 11 stores SOURCE: SPAR Group Ltd NOTE: *Regional data not reported for HY2019

Store Footprint SPAR Group Store Footprint (cont.) Geographic Spread* As SPAR is essentially a distribution business, the below geographic spread is broken down by DC and indicates the number and format of stores each DC services South Rand DC services the most stores at 531, with KwaZulu-Natal second at 443 stores 21 net new stores were added to the distribution for the Lowveld DC in FY2018, 19 additional were added to the Western Cape DC TOPS at SPAR stores added to the DC distribution for all regions in FY2018 as the footprint expands Geographic Spread – FY2018 Regions SUPERSPAR SPAR KWIKSPAR SPAR Express SPAR SAVEMOR TOPS at SPAR BUILD IT PHARMACY at SPAR Total Net New Stores 356 428 125 28 48 774 376 101 2236 98 South Rand 95 118 30 5 192 71 20 531 16 North Rand 61 79 14 131 55 27 388 18 KwaZulu-Natal 92 58 25 8 153 83 443 9 Western Cape 39 88 40 6 144 56 24 403 19 Eastern Cape 47 49 2 10 119 46 294 15 Lowveld 22 36 35 65 177 21 4 41 11 SOURCE: SPAR Group Ltd NOTE: SPAR Non-SA is serviced by DCs in South Africa; * Regional data not reported for HY2019

Store Footprint SPAR Group Store Footprint (cont.) Planned New Stores Although no specific new store detail is provided, SPAR Southern Africa plans to continue organic growth through refurbishments and store format optimisation Plans have been put on hold for building a DC in the West Rand and expanding the Eastern Cape DC “subject to improved demand levels and rising economic confidence” The Group have identified the forecourt market as a new growth opportunity in fresh, frequent and convenient shopping. With fuel manufacturers and wholesalers being prohibited from holding retail licences, there is strong competition for these sites. Stores are typically between 80 and 150m² and serve mid- to high-income groups SPAR Express forecourt stores at Shell garages are performing well. 15 new SPAR Express stores are due to open in FY2019, with a goal to have between 70 and 80 outlets by the end of 2020 In FY2017, SPAR expanded into Sri Lanka, South East Asia through a 50% joint venture with Ceylon Biscuits Limited – to benefit from the rising disposable income, increased urbanisation, tourism and the country’s shift to formal food retail. 2 stores are already open with 5 more stores are in the pipeline to 2020 with a total of about 45 new SPAR stores planned to open by 2023, primarily owned by independents SPAR International has awarded the Group the SPAR licence to operate in Poland. Subject to the approval of the Office of Competition and Consumer Protection. The group is in the final stages of negotiation to acquire the Piotr i Pawel Group consisting of 77 supermarket stores and a wholesale distribution network SPAR plans to expand in Africa but in a very measured, step-by-step rollout SOURCE: SPAR Group Ltd

Maryla Masojada. |. Lead Analyst Carey Leighton. | Maryla Masojada | Lead Analyst Carey Leighton | Associate Retail Analyst