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INTERIM RESULTS PRESENTATIONfor the six months ended 31 March 2016

1

Agenda

Strategic Update

Financial Performance

Divisional Performance

Outlook and Imperatives

2

Strategic UpdatePhil Roux

CEO

3

Environmental Discontinuities

Cause

Political instability

Drought

Low growth

Consumer weakness

Africa instability

Effect

Rand weakness

Hyper inflation and raw

material shortages

Increased rivalry

Evolving shopper habits

Currency devaluation

Cost and margin pressure

4

Financial Highlights

For the 6 months ended 31 March 2016 for continuing operations

Revenue** 9% to R10.01 bn

Operating profit* 6% to R1 236 m

Operating margin* 12.3%

HEPS* 6% to 479 cents

Interim dividend declared 11% to 105 cents

* Adjusted for the Phase I B-BBEE income/charge and items of a capital nature ** Excluding biscuits, Pepsi & Maitland Vinegar

5

Financial Highlights

1H 2013 * 1H 2016

581 1 236Operating profit (Rm)

Gross Margin 29.3% 31.0%

Operating Margin 7.2% 12.3%

Headline earnings per share (cents) 230 479

Share price (cents) 7 157 13 904

* Excludes Quantum Foods

3 yr CAGR

29%

Excluding Phase I B-BBEE income/charge and items of a capital nature

3 yr CAGR

25%

6

Our Strategy

Cost and margin pressure

Drive above-market growth Enhance competitiveness

Shape a

winning

portfolio

Focus on

power

brands

Strategic

customer

management

Reset the

cost base

Build a high

performance

team

Sustainability Adopt sustainability best practices in all we do

7

Strategic Pillars: Progress Update

Shapin

g a

Win

nin

g

Port

folio

Portfolio mix optimisation

Future Life Integration and innovation

FCP Nigeria

Bakeries Sustained growth and leverage

Aggressive SKU rationalisation

Step change in rice performance

Robust acquisition funnel

SKU Stock keeping unit

8

Strategic Pillars: Progress Update

Cost

s &

Eff

icie

ncie

s

Containment of manpower costs < 60% of Revenue growth

Delivered enhanced manufacturing efficiencies

Elimination of residual costs on disposals

COEs increase < 10% of Revenue growth rate

COS increase > Revenue growth rate (Raw material inflation)

COE Cash operating expenses

COS Cost of sales

9

Corporate share1

%, 6 mm to March 2016

Safari

Spekko

White Star

Liqui-Fruit

Weet-Bix

Value

share

40.2

31.6

22.5

32.2

28.8

17.1

-2.1

Share Pts

change

1.2

7.3

0.0

-1.4

0.5

7.2

Category

Growth (%)

6.6

7.4

21.9

18.9

8.4

Sasko

6 mm October 2015 to March 2016

2015 2016

Pioneer Foods

Power Brands Market Share Performance TEG (modern trade)

1 Measured as weighted average of

Pioneer's share in 18 categories in

which it operates. TEG only.

Including DOBs. Source: Aztec

31.2

31.8

Brand investment maintained

10

Financial PerformanceCindy Hess

CFO

11

Salient features

Group margin maintained despite strong headwinds

Pleasing revenue growth

Significant raw material cost push constrains Essential Foods

Cash operating costs stringently managed

Exceptional performance from Groceries and International

Operating margin maintained amidst severe discontinuities

Working capital management intensifies

Positive cash flow sustained

12

Revenue analysis

Pleasing revenue growth across all segments

* Excluding biscuits, Pepsi and Maitland Vinegar from the comparative figures

SEGMENTAL REVENUE MIX

Essential Foods

R6 054m60%

GroceriesR2 508m

25%

InternationalR1 448m

15%

Six months to 31 March 2016 Rm Change

Essential Foods 6 054 +8%

Groceries 2 508 +7% *

International 1 448 +20%

Total Revenue 10 010 +9% *

13

Segmental analysis

Group maintains operating margin despite external vagaries

* Adjusted for the Phase I B-BBEE income/charge and items of a capital nature

Segmental results are reflected after the reallocation of corporate costs

Operating Profit * Operating Margin *

2016 % 2016 2015

Six months to 31 March Rm Change

Group 1 236 6% 12.3% 12.3%

Essential Foods 645 -8% 10.6% 12.4%

Groceries 343 35% 13.7% 9.6%

International 252 16% 17.4% 18.0%

Other (Group Costs) (4)

14

Income statement summary

Cost and efficiency benefits kick in

* Adjusted for the Phase I B-BBEE income/charge and items of a capital nature

** Excluding biscuits, Pepsi and Maitland Vinegar from the comparative figures

Six months to 31 March 2016 Rm Change

Revenue ** 10 010 +9%

Cost of goods sold (6 905) +8%

Gross profit 3 105 +2%

Gross margin 31.0% F15: 32.3%

Net other operating expenses * (1 869) -1%

Operating profit * 1 236 +6%

Operating margin 12.3% F15: 12.3%

15

Income statement (continued)

* Adjusted for the Phase I B-BBEE income/charge and items of a capital nature

Six months to 31 March 2016 Rm Change

Operating profit * 1 236 +6%

Investment income 27 +70%

Finance costs (75) +11%

JV equity-accounted earnings 42 +25%

Profit before tax * 1 230 +7%

Income Tax (348) +9%

Profit for the period * 882 +6%

Joint ventures perform well

16

Net operating profit reported

* Adjusted for the Phase I B-BBEE income/charge and items of a capital nature

Six months to 31 March (Rm) 2016 2015 Change

Adjusted operating profit * 1 236 1 166 6%

Add/Less 155 (249)

Phase I B-BBEE transaction 143 (203)

Items of a capital nature 12 (46)

Impairment of BEE SPV QF shares (18) (51)

Profit on disposal of subsidiary 24 -

Other 6 5

Net operating profit as reported 1 391 917 52%

17

Six months to 31 March (Rm) 2016 2015 Change

Adjusted headline earnings 887 830 +7%

Adjusted HEPS 479 cents 451 cents +6%

Group earnings

Effect of the Phase 1 B-BBEE income/(charge)

* 2015 includes discontinued operations

Add/less Phase I B-BBEE income/(charge) 143 (203)

Headline earnings 1 030 627 +64%

HEPS 556 cents 341 cents +63%

Add/less Items of a capital nature 7 (82)

Earnings* 1 037 545 +90%

EPS 560 cents 296 cents +89%

Adjusted EPS 493 cents 434 cents +14%

18

Cash flow analysis

Strong cash generation despite soft commodity inventory

Six months to 31 March (Rm) 2016 2015

Cash profit from operating activities 1 428 1 345 +6%

Change in working capital (780) (838) -7%

Inventory (571) (208)

Debtors (225) (333)

Creditors 16 (297)

Cash effect from commodity hedging 42 (11)

Cash generated by operations 690 496 39%

19

Group net working capital

Working capital relatively stable

17.1%

14.9%

17.1%

12.9%

17.1%

11.5%

15.6%

14.0%

17.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Mar 12 Sep 12 Mar 13 Sep 12 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16

% of revenue

20

Cash flow analysis

Cash flow from investing activities

Six months to 31 March (Rm) 2016 2015

Net cash flow from investing activities (394) (231)

PPE additions (217) (64)

PPE replacements (132) (232)

Proceeds on disposal of PPE 45 31

Proceeds on disposal of subsidiary 74 -

Investment in joint ventures (201) (81)

Proceeds on disposal of and changes in available-for-sale

financial assets and JV loans(15) 77

Interest and dividends received 52 38

Net cash and cash equivalents at end of period 840 680

21

NET debt (Rm) and debt equity ratio (%)

Significant gearing capacity

1,589

978

1,542

166 535

-97

470

-500

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16

Rm

Excludes B-BBEE (third party) debt

25% 15% 22% 3% 8% -1% 6% Net Debt to Equity Ratio

R'm

Debt

capacity

22

Interim dividend per share

11% increase in interim dividend

46

65

95

105

0

20

40

60

80

100

2013 2014 2015 2016

cents per share

Year

3 yr

CAGR

+32%

23

Divisional Performance

Phil Roux

CEO

24

Essential Foods: Back drop

Maize category volume contraction -5.8% *

White maize crop shortfall estimate -1,2 m tons

Wheat duty increases by R1 068/ton over

12 months

Maize import regulations limiting

White maize raw material price increase +90%

Wheat category c