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MR PRICE GROUP LIMITED - Statement Regarding Civil Unrest

Release Date: 14/07/2021 17:24
Code(s): MRP     PDF:  
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Statement Regarding Civil Unrest

Mr Price Group Limited
(Registration number 1933/004418/06)
Incorporated in the Republic of South Africa
ISIN: ZAE000200457
LEI number: 378900D3417C35C5D733
JSE and A2X share code: MRP


As a business founded and headquartered in Durban, the group is deeply saddened by the civil unrest
throughout the province of KwaZulu Natal and parts of Gauteng which has resulted in widespread looting and
vandalism causing untold damage to property, business continuity and livelihoods. The catalyst for these
events can be attributed to several complex factors that are well documented, however the escalation of the
situation into outright criminality is something the group condemns. It has already caused significant damage
to its own business and many other businesses in the affected areas.

To date, 109 (approximately 7%) of the group’s 1 592 stores have been entirely looted. In addition, the group
has had to temporarily close a further 539 stores across its six divisions. Most of the impact is in KwaZulu
Natal with store looting subsiding over the last 24 hours. The group’s two immediate concerns are ensuring
the safety of all its people and ensuring further damage and loss is mitigated or minimised. The group of
retailers represented by The National Clothing Retail Federation (NCRF) has made a plea for government to
take more decisive action, including significantly increasing the level of security personnel in KwaZulu Natal to
ensure conditions do not worsen.

The situation remains fluid with many unknowns. The group is performing a thorough assessment of the
damage caused to its stores and is quantifying losses to be recovered as far as possible through its insurance
policies. The group is confident that the physical losses suffered to date are covered by its SA Special Risks
Insurance Association (SASRIA) insurance cover. SASRIA have provided assurance through public statement
that it has the financial means to honour claims. However, the group is aware of the potential risks of claims
pay-outs being delayed and possibly impaired due to the high volumes and values expected to be submitted
by numerous impacted businesses.

The group’s further priorities include the continuity of stock flow to its unaffected stores and the speedy
restoration of trade in its damaged stores. The pace at which this can be done will be dependent upon the
extent of the damages and external bottlenecks elsewhere in the supply chain including the Durban port,
logistics and distribution operations, and the ability of local suppliers to continue production.

The group is grateful that no serious physical harm has come to its associates during the unrest. It expresses
its extreme gratitude to its security teams and partners who have worked tirelessly in protecting the business
and to all other stakeholders for their understanding and patience during such a challenging time.

The resilience of the group has been tried and tested in the past and it has prevailed due to the incredible
partners and people that make up the Mr Price group. The board and management team will continue to make
decisions that are in the best interest of all stakeholders and extends its appreciation for your ongoing support.

14 July 2021

JSE Equity Sponsor and Corporate Broker
Investec Bank Limited

Date: 14-07-2021 05:24:00
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