Trading Update For The 22-Weeks To 2 February 2020 Dis-Chem Pharmacies Limited (Incorporated in the Republic of South Africa) (Registration number 2005/009766/06) JSE share code: DCP ISIN: ZAE000227831 (“Dis-Chem” or “the Group”) TRADING UPDATE FOR THE 22-WEEKS TO 2 FEBRUARY 2020 GROUP Dis-Chem recorded Group revenue growth of 10.0% to R10.3bn for the 22-week period from 1 September 2019 to 2 February 2020 compared to the corresponding period in the prior year (“corresponding period”) Chief executive Ivan Saltzman: “The weak macroeconomic environment in South Africa is unsupportive of business as constrained consumers continued to trade down resulting in smaller basket sizes. Our pharmacy focus, everyday low price strategy coupled with focussed promotional campaigns and availability of choice for our customers enable us to drive strong footfall into our stores, this despite the negative impact of load shedding on consumer shopping behaviour. The increased focus on return on invested capital (“ROIC”) continues to deliver strong results with improved trade terms from our suppliers, as well as more efficient inventory levels. Inventory levels are approximately R4.45bn, R650m lower than at our 2019 financial year-end. We expect a slight increase by year-end as a result of return enhancing buy-ins ahead of the gazetted SEP increase. This strategy will continue to remain a focus together with the addition of new stores as we continue to benefit from a consolidating pharmacy industry and aim to provide our shareholders with optimal returns over the long-term.” RETAIL Retail revenue increased by 9.2% to R9.4bn for the 22-weeks over the corresponding period. Despite the weak macro environment, we continued to gain market share in all our core categories. Comparable store revenue growth and selling price inflation were 2.1% and 1.2% respectively. These numbers continue to be impacted by a constrained consumer and very competitive pricing across all categories. We welcome the recently gazetted Single Exit Price (“SEP”) increase of 4.53%. During the 22 weeks under review, the Group added 12 new stores which contributed R145m to revenue. Our new stores continue to trade above our expectations, validating our site selection method. WHOLESALE Wholesale revenue grew by 18.3% to R7.1bn for the 22 weeks over the corresponding period. Sales to our retail stores grew 18.2%, and sales to external customers, The Local Choice (“TLC”) and independent pharmacies grew by 30.7% and 14.9% respectively, mainly as a result of the Quenets acquisition and the increased presence of our TLC franchise brand which are loyal supporters of our wholesale channel. We now have 110 TLC franchise stores versus 91 at the end of the corresponding period. SUMMARY Million 22-weeks to 22-weeks to % change % like-for-like % price 2 February 2020 2 February 2019 revenue growth inflation Retail R9 435 R8 637 9.2% 2.1% 1.2% Wholesale R7 132 R6 028 18.3% Intergroup (R6 220) (R5 262) 18.2% Total group R10 347 R9 403 10.0% The financial information in this trading update has not been reviewed or reported on by the Group’s independent auditor Ernest and Young. Dis-Chem’s results for the year ended 29 February 2020 will be released on SENS on Wednesday, 20 May 2020 at around 7:05 am. For further information, contact the Group’s Investor Relations at investorrelations@dischem.co.za. Midrand 19 February 2020 Sponsor The Standard Bank of South Africa Limited Date: 19-02-2020 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.