AnnualResultsPresentationfortheyearended30September2018

Presentedby:SeanWalsh GraemeSimChiefExecutiveOfficer FinancialDirector

Index

§ Purpose &Strategy

§ Group structure

§ Divisional structure &brands

§ GeographicalRepresentation

§ Footprint overview

§ Keymilestones

§ Tradingenvironment

§ Highlights fortheyear

§ Segmentalreport

§ Financialperformance

§ Segmentreview

§ Cash flowperformance

§ Capitalexpenditure

§ Tradedebtors

§ Conclusion

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PURPOSE & STRATEGY

Strategicfocusareas StrategicinitiativeKeyPerformance

Measure

•Growth Agri&Retailupgrades&expansionsM&AFootprintexpansion(nonM&A)StrategicalliancesManufacturingdiversification

•OptimisationSupplychain,Agri&Retail,TFC,Manufacturing,SupportservicesCustomerRelationshipManagement

•LeveragingBBBEE CompetitiveadvantageSustainability

•Digitaltransformation CustomerexperiencedigitisationProcessdigitisation

For15Years

Minimum15%growthinRHE

Minimum15%ROE

Allstakeholdersmustbebetteroffbecauseweexist

GROUP STRUCTURE

*Forge– acquired 1October 2018

Kaap AgriBedryf Limited

TFCOperations(Pty)Ltd

TFCProperties(Pty)Ltd Agriplas (Pty)Ltd Kaap Agri(Namibia)

(Pty)LtdPartridgeBuildingSupplies(Pty)Ltd*

Kaap AfriAussenkehr (Pty)

Ltd

100.0% 60.0%50.0%100.0%88.0% 70.5%

100.0%

DIVISIONAL STRUCTURE – TRADING BRANDS

Excludes Corporate Division

TRADE TFC WESGRAAN IRRIGATIONMANUFACTURING

GEOGRAPHIC REPRESENTATION

ü 8 Provinces

ü 103 Places

ü SA & Namibia

ü 200 Units

14operatingpointsacrossLimpopo,Mpumalanga,GautengandNorthWest

18operatingpointsacrossNamibia

27operatingpointsacrosstheNorthernCape

8operatingpointsacrosstheEasternCape132operatingpoints

acrosstheWesternCape

1operatingpointacrosstheFreeState

FOOTPRINT OVERVIEW

KEY MILESTONESRevenueandearningsgrowthduringaparticularly challengingyear

15.1mtransactions (+12.1%)

3000+employees, wellpositioned forfuturegrowth

TFCrestructure complete (40%+blackowned)

TFClitergrowthperformed well(TFCfuelnow>Agri fuel)

TFCbranddiversification strategy (Total,Engen,Sasol,Caltex,QSRetc)

Agriandbuilding materialexpansion intoKZN(1Oct2018)

Buildingmaterial(excl.cement)growthof9.1%

JDAsupply chainoptimizationsystemimplementation ontrack (completion 2019)

Nowheatdebtor default

TRADING ENVIRONMENT

Ø Retail:difficultQ3/Q4Ø Agri:improvedQ3/Q4Ø Economicfactors

ü LowGDPgrowth (-0.7%)ü CPI increasing (5.1%)ü Businessandconsumer confidence (38points)ü Retailsalesindex (0.7%)ü VAT increaseü Fuelprice increase (average+20.1%)

Ø DroughtimpactØ Landreform(EWC)impact

AGRIANDRETAILGROWTHIMPACTEDBY:

HIGHLIGHTS FOR THE YEAR

*As announced onSENSon3August 2017,Kaap Agrihas disposed of50%ofits interest inKaapAgri Namibia (“KAN”),which waspreviously awholly-owned subsidiary ofKaapAgri. Intermsof International Financial Reporting Standards, KaapAgri’s remaining non-controlling interest inKAN is equityaccounted from1August 2017,while itwasconsolidated prior tothis date.Toallow fora meaningful comparison, certain commentaryhas beenprepared on thebasis of theconsistent treatmentofKANasanequity investment.

EBITDA(R’000)

477,816+6.9%

Fuellitergrowth

239.5mlitersGroup18.4%TFC38.5%

Revenue(R’000)

6,548,793+8.1%*LFL+6.9%

RecurringheadlineEPS

(cents)

354.10+0.7%

Totaldividendpershare(cents)

116.70+4.2%

ReturnonEquity

15.2%(2017:16.6%)

SEGMENTAL REPORT

2017 2018 2017 2018 2017 2018 2017 2018 2017 2018R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000

Income 4,134,625 4,120,868 1,385,271 1,802,049 710,239 439,121 180,976 186,755 4,586 -

Profit before tax 221,257 241,947 63,782 85,809 51,922 23,611 25,248 25,952 -29,587 -32,415

Gross assets 1,251,648 1,430,303 340,921 546,449 68,980 97,440 64,016 71,740 1,684,272 1,781,299

Net assets 410,815 541,899 316,501 425,234 43,276 84,802 34,194 45,815 777,195 644,996

SEGMENTAL REPORT (cont.)

62.9% 6.7%27.5%

2.9% 0.00%

31.1% 4.9%24.4%

2.6% 37.0%

70.1% 6.8%24.9%

7.5% -9.4%

FINANCIAL PERFORMANCE – INCOME STATEMENTR'000 2014 2015 2016 2017 2018

Revenue 4,388,647 4,808,877 5,173,559 6,055,721 6,548,793 Gross profit 675,689 766,582 868,777 1,050,243 1,102,313

Gross profit margin 15.4% 15.9% 16.8% 17.3% 16.8%Profit after tax 158,213 189,194 210,422 241,125 248,957 Recurring headline earnings 157,858 182,722 210,304 247,669 251,983 Return on equity 15.0% 15.4% 15.8% 16.6% 15.2%Recurring headline earnings per share (cents) 224.03 259.32 298.46 351.91 354.10Dividend per share (cents) 65.00 82.00 94.50 112.00 116.70

FINANCIAL PERFORMANCE – BALANCE SHEET

R'000 2014 2015 2016 2017 2018Total assets 2,302,492 2,619,263 3,025,194 3,409,837 3,927,231

Non-current assets 540,761 663,072 802,807 1,076,812 1,304,896 Current assets 1,761,731 1,956,191 2,222,387 2,333,025 2,622,335

Liabilities and loans 1,187,124 1,364,041 1,619,517 1,827,856 2,184,485 Net interest-bearing debt 502,455 630,508 797,115 730,688 961,594

Shareholders equity 1,115,368 1,255,222 1,405,677 1,581,981 1,742,746 Net asset value (rand) 15.8 17.8 19.9 22.5 24.8 Debt to equity1 46.9% 47.8% 53.7% 51.1% 50.9%Interest cover (times) 9.0 8.7 8.1 6.9 5.5

FINANCIAL PERFORMANCE – HISTORICAL TRENDS

RHEgrowingaheadofRevenuegrowth(diversification&optimization)

DPSgrowingaheadofRHE(improvedshareholderreturns)

EBITDAgrowingaheadofRHEgrowth:

ü impactofdepreciationandinterestrelatingtoinvestmentactivities(growth)

FINANCIAL PERFORMANCE – TARGETED RHE GROWTH

Ø Droughtü Wesgraan: -5.2%ü Trade: -4.9%ü Irrigation: -1.2%

Ø RegulatorydelaysØ TFC: -6.5%

Ø Remainingbusinessgrewby4.5%

TARGETED15%GROWTHIMPACTEDBY:

FINANCIAL PERFORMANCE - SEASONALITY

Ø Turnover:ü 51%H1&49%H2(2018- 5yravg.)ü 50%H1&50%H2(2013- 5yravg.)

Ø RHE:ü 62%H1&38%H2(2018- 5yravg.)ü 65%H1&35%H2(2013- 5yravg.)

SEGMENTAL REVIEW – TRADE DIVISION (AGRI)

ü GrowAgri@inflation+5%ü FootprintexpansioninwaterintensiveAgriareas(incl.agencies/JV’s)ü Extensionofloyaltyprograms

Strategy:

2018Review:

ü Agrirevenuegrowthdespitedroughtimpactü Sustainedmarginsü StronggrowthinLimpopoandEasternCape

2019GrowthDrivers:

ü ForgeAgri(KZN)ü FurthermarketsharegrowthinLimpopoandEasternCapeü Droughtrecoveryü Producesrecommencingreplacementandrenewalprograms

SEGMENTAL REVIEW – TRADE DIVISION (RETAIL)Strategy:ü GrowthRetail>growthAgriü Buildingmaterialgrowthü AccelerateretailproductPUSHstrategyü Centralised DCoptimisation

2018Review:ü Cashsalesgrowth>15%ü Hardwaregrowth>10%ü 4significantretailformatupgradescompletedü Buildingmaterialindustrycontractionü IncreasedDCthroughput

2019GrowthDrivers:ü ForgeBuild(KZN)ü Rangeexpansion androlloutü Procurement&logisticsimprovementsü Space,labour andstockoptimisation

2019GrowthDrivers:• 7pipeline sites+investigations• GrowQSRbrands• Costefficiencies (centralisedsupport services)

SEGMENTAL REVIEW – TFC DIVISION Strategy:ü Rapidgrowthofnetwork(largelyM&A),multi-brandstrategytocontinueü Collaborationwithoilmajorstobecomeretailerofchoiceü Quickservice restaurant(QSR)andconvenience store(CS) growthü BBBEEleveraging:TFC>40%blackowned

2018Review:ü Finalisation ofBEEpartnertransaction(assetforshare)ü LicencetransfersfromKaapAgritoTFC, 29complete4o/sü 5newandmanagedsitesü 5upgrade/expansionprojectsü Volume growth38.5%ü Delaysinlicenseissuing improving

SEGMENTAL REVIEW – WESGRAAN DIVISION

Strategy:ü Maintainmarketshareofwheatstoredü Optimizationofstoragefacilitiesü NewHollandmarketsharegrowthinWesternCapeü Expandwholegoodsproductoffering(complementary brands)

2018Review:ü Negativedroughtimpact,lowestwheatintakesince2005.ü 40000tonsstoragecapacityaddedinSwartland heartland

2019GrowthDrivers:ü Wheatstorage+85%YOYand+23%vsprior5yraverageü 40%+Increasedwheatseedsalesü Increasedstoragecapacity=Increasedstorageincome

SEGMENTAL REVIEW – IRRIGATION MANUFACTURING DIVISION

Strategy:ü Expandmarkets(including exports)ü Improvemarketpenetrationü Strategicalliances

2018Review:ü WesternCapeturnoverdown–11.9%ü Limpopo,Mpumalangaturnoverup+29.0%ü Manufacturingefficiency improvements

2019GrowthDrivers:ü Capitalprojects&expansionsü Manufacturingefficienciesü Productrangediversificationü Non-irrigationAgrirelatedproductopportunities

CASH FLOW PERFORMANCE

Continuedinvestment

Goodworkingcapitalmanagement

Strongcashgenerationfromoperatingactivities

CAPITAL EXPENDITURE

Ø 2018Acquisitions(TFC)Ø 2019CapexR213Mexpected,excl.M&A

Ø TFClargestshareØ 2019similartrendexpected

TRADE DEBTORS

Debtorsbalancegrowingat5yr CAGRof8.0%

13,838accounts(3,341seasonaland10,497monthly)

Enablertorevenuegrowth

Baddebtswrittenoff=0.11%oftotaldebtors:

ü 5yr average: 0.27%ü 10yr average: 0.38%

Debtorsbook:

ü Healthy bookü Wellsecured byvariouscategories

TRADE DEBTORS (cont.)

Daysincreasingslightlyduetomoreseasonalcreditaswellasdroughtrelatedcarryover

Debtorsbookturns3.6timesperyear

Otherincludesmonthlyaccountsnotassignedtoaproduct

Productandgeographicdiversityreducesrisk

CONCLUSION

2018:ü Toughyearnegativelyimpactedbydrought,weakretailenvironment, fuellicenseregulatorydelaysü StrongrevenuegrowthandpositiveRHEgrowthü GoodLFLrevenuegrowth6.9%ü Significantincreaseinnumber oftransactions12.1%ü Expenditurewellmanaged

2019:ü Droughtconditions haveeased(expectedbenefitinWesgraan,TradeandManufacturing)ü Wheatharvestimprovementü TFCfuellicenseapprovalacceleratedü FootprintgrowthinTFCdivisionü ForgeAgri&ForgeBuildingMaterialacquisition (KZN)ü Tradefootprintexpansionopportunities beinginvestigatedü Ontracktomeet2020strategicmediumtermplantargets(minimum15%CAGRgrowthinRHE

ataminimum15%ROE)

IN CONCLUSION

THANKYOU