Investor PresentationOctober 2014

Disclaimer2

The materials set out in this presentation have been provided to you by Choppies Enterprises Limited (“Choppies”) and may not be disclosed or referred to (in whole or in part) or used or relied upon for any other purpose other than as specifically agreed by written agreement with Choppies.

While Choppies has taken reasonable care in preparing these materials, Choppies has not independently verified the information contained in these materials. Choppies, its affiliates and their respective directors, officers or employees (the “Choppies Group”) assume no responsibility for and do not represent or warrant the completeness or accuracy of the information (whether written or oral) including estimates, projections or forecasts (of future financial performance or otherwise) referred to in these materials or that may be supplied in connection with these materials (“Information”).

Choppies is under no obligation to inform you or anyone about any change (whether or not known or apparent to Choppies) to the Information. You must make your own independent judgment with respect to any matter contained in these materials. The Choppies Group will not be responsible for any losses or damages which any person suffers or incurs as a result of relying upon or using these materials or as a result of any information being omitted from these materials.

These materials do not constitute an offer to enter into any transaction, and do not create any legally binding obligations on the Choppies Group. The Choppies Group does not owe any fiduciary or other duties to you or any other person. If you do not accept any of the conditions above, you must immediately return these materials and any copies of it, otherwise, the retention of these materials by you shall evidence your acceptance of such conditions.

A year of profitable growth

FY year ended June 14 was a significant year of growth for Choppies Added 36 stores to our footprint

Expanded into Zimbabwe

Choppies now has 110 stores 69 stores in Botswana, 28 in South Africa and 13 in Zimbabwe

Retail space increased by 50% to 157,555sqm

Excellent financial performance Top line growth of 24%

Same stores sales up 1.13%

Gross profit margin up 112 bps to 22%

South Africa delivered a cash profit despite the platinum strike that impacted 17 of the stores

Strong growth potential in FY15 Store growth in existing expansion markets (SA and Zimbabwe)

Entry into new markets to be announced shortly

3

Consistent growth delivered since IPO

Financials in Pula m At Listing FY June 2013 FY June 2014 Δ 2013-14

Revenues 2 435 4 029 5 012 +24%

Gross Margin 447 822 1 079 +31%

EBITDA 207 274 352 +29%

PAT 124 153 177 +16%

Total stores 58 73 107 +34 (47%)

Botswana 49 55 68 +13 (24%)

South Africa 9 18 26 +8 (44%)

Zimbabwe - - 13 +13

Retail floor space 79 000 104 717 155 955 +49%

Warehouse space 13 000 31 000 41 350 +33%

Employees 3 900 7 200 9 149 +27%

Total vehicles 245 394 550 +40%

4

Summary

Founded in 1986

#1 grocery retailer in Botswana

Listed on the Botswana Stock Exchange in 2012; now the largest non-bank counter

Market cap of c. BWP4,900m / US$550m

110 stores: 69 in Botswana, 28 in South Africa, and 13 in Zimbabwe

Employees 6500 in Botswana,3000 in South Africa, 1000 in Zimbabwe.

Total retail space of 157,555 sqm

Total warehouse space of 41,350 sqm

45,000 SKUs, including leading international brands and an extensive array of house brands (c. 16% of Botswana revenues)

Choppies today – a snapshot

FY14A contribution by country

Regional footprint

2 DCs

2 DCs

Botswana

69 Stores3 DCs

Zimbabwe

13 Stores1 DC

South Africa

28 Stores2 DCs

Choppies Enterprises Limited

Botswana South Africa Zimbabwe

Rev % 64% 25% 11%

GP % 73% 19% 8%

5

Choppies history

1986 1993 2003 2004 2008 2011 2012 2013

Megasave and Supersave acquisition in Botswana

Acquisition of 10 Zimbabwe stores

Opening of SA DC in Rustenburg

Choppies established in Lobatse

Openings of first store in Zeerust, South Africa

Appointment of Hon. Festus Mogae as Chairman

Listed on the Botswana Stock Exchange

Opened first hyperstore in Gaborone

Bots stores

SA stores

48

9

50

13

56

17

Opened first superstore in Gaborone

1999

Zim stores - - -

Opening of second store in Botswana

Acquisition of Chathley

Acquisition of Food Mart / Multisave2011 Group restructuring ahead of IPO

Largest hyperstore in network opened in Rail Park Mall, Gaborone

2014

68

26

13

Opened 6 new stores in Botswana

Opened 9 new stores in SA

Opened 3 new stores in Zimbabwe

Opened DC in Zimbabwe

6

69

28

13

13

60

9

13

17

26

80

48 50

56

68

90

2011 2012 2013 2014 2018E

Zimbabwe South Africa Botswana

Store evolution in our current markets

Store Growth

7

Botswana – our core market

1 2 48 11 14

20

29

4044 46 46 48 50

56

68 69

Total m2: 950 1,900 3,300 6,200 11,000 15,600 35,400 54,40047,100 54,40052,300 56,500 62,000 71,500 87,16524,500

Store growth

First store opened in 1986 in Lobatse

Strong growth in the late 2000’s

PicknPay’s divestiture of Score gave Choppies an opportunity to take market share in late 2000’s

IPO on the Botswana Stock Exchange in early 2012

Acquisition of Supasave in 2013

31% CAGR

8

Company Stores in Botswana

Est. Market Share

69 34%

All other retailers

n/a 66%

Botswana – strong growth and cash generation 9

2,435

2,731

3,093

3,586 18.3%19.8%

20.7%22.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2011 2012 2013 2014

(% m

arg

in)

(BW

Pm

m)

Revenue GP Margin

187 210

251

319 7.7% 7.7%8.1%

8.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

-

50

100

150

200

250

300

350

2011 2012 2013 2014

(% m

arg

in)

(BW

Pm

m)

EBITDA EBITDA Margin

Revenue & GP Margin

EBITDA & Margin

Botswana is Choppies’ core market

Growth has been strong and consistent

14% CAGR since 2011 and 16% y-o-y

Same-store sales growth of 4%

Potential for 5 new stores by Dec 2014

370 bps increase in GP margin since 2011

Highly cash generative

Operating cash flows of BWP 322m

Free cash flows before Capex of BWP 204m

Profitable growth driven by

World-class product offering (45,000 SKUs)

Convenience (longer store hours)

New revenue lines (e.g. financial services, other agency collection, mobile money, etc.)

Strong private label offering (16% of revenues)

Focus on fresh

Competitive pricing

South Africa – our expansion thesis remains intact

Store growth

8,000 13,1001,350 16,600 25,000 33,600 47,878

1

57

9

13

17

2628

FY08 FY09 FY10 FY11 FY12 FY13 FY14 YTD

Total m2:

First store opened in Zeerust in June 2008

Stable growth in 2009-11 followed by rapid ramp-up in FY2012-13

DC opened in Rustenburg in FY13

Capacity to profitably serve up to 100 stores in a 500km radius of Rustenburg

Expanded to 26 stores in FY14

Currently 28 stores , plans to add 50 other stores.

Economies of scale will deliver profitability in FY15

Fruit & Veg DC operational before calendar year-end 2014

10

81% CAGR

South Africa – mining strike impacts operations11

Revenue & GP Margin

EBITDA & Margin

571

936 1,002

17.8%19.4%

20.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-

200

400

600

800

1,000

1,200

2012 2013 2014

(% m

arg

in)

(BW

Pm

m)

Revenue GP Margin

14

22

3

2.5% 2.4%

0.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

-

5

10

15

20

25

2012 2013 2014

(% m

arg

in)

(BW

Pm

m)

EBITDA EBITDA Margin

Platinum strike had a strong, negative impact on our South African business

Strike lasted from January to June 2014, the longest and most expensive in SA history

17 of 26 SA stores (as at FY14) are located in the strike- affected areas

Revenues declined 40% on average in these stores

Despite this, our SA operations still made a cash profit

GP margin improved 90 bps y-o-y to 20.3%

Financial performance and profitability has significantly recovered since the end of the strike

12

Zimbabwe – excellent performance

P&L Summary

GP margin comparison

Acquired 10 Spar stores in Zimbabwe at the end of CY 2013

Most stores in/near Bulawayo (190km east of the Botswana border), easily serviced with Choppies’ existing supply chain (house brands, merchandise, etc.)

All stores rebranded under the Choppies banner

Three more stores opened since the acquisition, bringing the total to 13 stores

Opened a new 6,850sqm Distribution Center in Bulawayo in May 2014

Opportunity for 60+ stores over the long-term across the country

Excellent GP margin performance

20.5%

19.2%

17.2%

ChoppiesZimbabwe

Avg SA ListedGrocery Comps

Avg ZIM ListedGrocery Comps

in Pula m FY 2014 % group

Revenues 424.3 8.5%

Gross Margin 86.9 8.1%

% margin 20.5%

EBITDA 30.1 8.5%

% margin 7.1%

PAT 18.2 10.3%

% margin 4.3%

Strategy – grow in existing and new markets

Botswana South Africa Zimbabwe New Markets

TZ

ZM

NAM

SA

BW

ZW

Current Markets

High Potential Markets

Other Potential Markets

Extensive logistics infrastructure enables focus on rural expansion

Assuming lower levels of deflation due to the weakening rand, still a large opportunity to expand formal retail

Strong store pipeline of over 30 high-probability locations

Target small towns in Mpumalanga, Limpopo, NW and Northern Free State

Zimbabwe significantly less penetrated by formal retail

Expansion from Bulawayo hub to the north; potential for 30 stores in Harare alone

Strong regional GDP and population growth of c. 5-9% and c. 2-4% respectively

Strong grocery market growth of c. 8-9% High Potential Markets have a range of 3-

6sqm of formal retail for every 1,000 people compared to 94sqm and 150sqm in BW and SA respectively

56

68

90

2013 2014 2018E

Stores

17

26

80

2013 2014 2018E

Stores

13

60

2013 2014 2018E

Stores

13

Sources: McKinsey Institute, IMF

Strategy – the regional growth opportunity

Existing Markets Potential Markets

Botswana South Africa Zimbabwe Namibia Zambia Tanzania Kenya

GDP growth(2014-2019)

4.1% 3.0% 4.3% 4.6% 6.6% 7.0% 6.4%

GDP / capita(USD, nominal, 2013)

7,136 6,621 987 5,667 1,542 703 1,016

Population Growth(2014-2019)

0.9% 0.6% 2.8% 1.8% 3.3% 3.0% 2.5%

Urban Population % 57% 64% 33% 45% 40% 30% 25%

Rate of Urbanization(Est. annual change 2010-15)

2.1% 1.2% 3.4% 3.1% 4.2% 4.8% 4.4%

Formal retail channel 55% 70% 25% 50% 14% 13% n/a

Formal retail penetration (sq meters / capita)

94 150 7 n/a 5 6 n/a

Sources: World Bank, IMF, McKinsey Institute, CIA World Fact Book

14

Strategy – high potential markets

Huge potential for formal retail; currently only 13% of the total retail market

The grocery retail market is expected to grow at a CAGR of 8.9% by 2018

Economy is expected to expand at a real CAGR of 7.0% by 2019

Choppies is assessing opportunities, and may commence operations in H2-FY15

Tanzania

Huge potential for formal retail; currently only 14% of the total retail market

The grocery retail market is expected to grow at a CAGR of 9.1% by 2018

Economy is expected to expand at 6.6% through 2019

Choppies expects to commence retail operations in H1-FY15

Zambia

Similar market to our ‘core’ Botswana base

Formal retail channel makes up c. 50% of the retail market

High GDP/capita and robust expected growth of 4.1% through 2019

Proximity to Botswana and SA operations allow us to leverage existing infrastructure, alongside outsourced distribution

Choppies is assessing entry into the Namibian market

Namibia

15

Butchery

Wholly-owned meat supply business

Daily deliveries to stores

High margin business

Constitutes 5.8% of BW and SA sales

Fruit and Vegetables

Strategy – value-added services drive margins

Bakery

Highest quality fresh fruits and vegetables sourced directly from SA and Botswana farmers

Fruit & Veg DC unique in Botswana Strong support from farming community

leading to better pricing Constitutes 9.5% of BW and SA sales

Wide range of bakery products, such as fresh bread, cakes and patisserie

Constitutes 4.0% of BW and SA sales

Private Label

High quality, affordable products in categories ranging from food and beverages to home cleaning products

Currently 16% of Botswana sales and aiming to reach up to 25% in coming two years

Takeaway New Initiatives

Takeaway operations in all stores

Products such as fried chicken, chips, curries and combos

Choppies Fried Chicken (CFC) starting off well

Constitutes 4.4% of BW and SA sales

Third party ATMs

SIM cards/airtime

Mobile money and money transfer

Travel tickets / Local council payments

Pensions and utility payments

Imported non-food products

16

Strategy – Best-in-class distribution and logistics

Choppies operates six Distribution Centers:

Botswana: 10,000m² in Gaborone, 3,000m² in Lobatse and 3,500m²

in Francistown

South Africa: 10,000m² and 8,000m² facilities in Rustenburg

Zimbabwe: 6,850m² in Bulawayo

SA DCs have the capacity to support 100 stores (currently supporting 28 stores) within a 500 km radius of Rustenburg; implies North West, Mpumalanga, Limpopo, Northern Free State, and Northern KZN

Choppies’ logistics subsidiary supports the day-to-day operations of the stores with a fleet of c. 550 commercial vehicles, trailers and forklifts

17

Financial overview

Revenue

EBITDA

Gross Profit

EBIT

2,435

3,302

4,029

5,012

13.7%

35.6%

22.0%24.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

2011 2012 2013 2014

(Gro

wth

Rate

)

(BW

Pm

m)

150 168

200

241

6.2%

5.1% 5.0%

4.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

-

50

100

150

200

250

300

2011 2012 2013 2014

(EB

IT M

arg

in)

(BW

Pm

m)

447

642

822

1,079

18.3%

19.4%

20.4%

21.5%

16.0%

17.0%

18.0%

19.0%

20.0%

21.0%

22.0%

-

200

400

600

800

1,000

1,200

2011 2012 2013 2014

(GP

Marg

in)

(BW

Pm

m)

207 224

274

352

8.5%

6.8% 6.8%

7.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

-

50

100

150

200

250

300

350

400

2011 2012 2013 2014

(EB

ITD

A M

arg

in)

(BW

Pm

m)

18

Other operational and financial indicators

Employees

ROE

Store Space (sqm)

Debt to Equity

3,702

5,267

7,209

9,149

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2011 2012 2013 2014

73,100

87,000

105,100

155,955

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2011 2012 2013 2014

19

28.3%

20.5% 20.8%22.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2011 2012 2013 2014

0.34x

0.18x

0.12x

0.41x

0.00x

0.05x

0.10x

0.15x

0.20x

0.25x

0.30x

0.35x

0.40x

0.45x

2011 2012 2013 2014

FY 2015 expected capex20

Botswana (BWP mm) South Africa (ZAR mm) Zimbabwe (USD mm)

Number of Stores 6 10 9

Capex – PPE 60.0 130.0 4.5

Capex for Vehicles - 6.0 2.0

Maintenance Capex 8.0 3.0 1.0

Total 68.0 139.0 7.5

Total (in BWP mm)(1) 68.0 114.1 69.4

(1) converted at BWP/ZAR of 0.82 and BWP/USD of 9.26

Botswana: plan to open 6 new stores by the end of FY 2015 with an anticipated total cost of BWP 68.0m

South Africa: plan to open 10 new stores by the end of FY 2015 with an anticipated total cost of BWP 114.1m

Zimbabwe: plan to open 9 new stores by the end of FY 2015 with an anticipated total cost of BWP 69.4m

Dividends – sustained payout21

Dividends Per Share Dividend Payout Ratio

Dividends per share grew 6.1% y-o-y in 2014, and 10.9% CAGR since IPO in 2012

Dividend payout ratio has consistently been above 30% since IPO

Zimbabwe profits are being reinvested for expansion

Over time, we are targeting a payout ratio of 50%

3.67

4.25 4.51

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2012 2013 2014

(Th

eb

e)

33.4%32.5%

31.6%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2012 2013 2014

(Perc

en

tag

e)

How choppies achieved a dominant market share22

• Shift of sales from wholesale to Retail

•Extended Trading Hours

•Own Logistics ( Warehousing and Transport)

•Extending the business to rural areas. (Taking Business to people)

•Value added services(Pay and Collect)

•Priced Right (Contract farming and Direct Procurement)

South African Market23

• Currently Operating 28 stores and plans to add another 50 stores

•Own Logistics ( Warehousing and Transport)

•Value added services(Pension , Pay and Collect)

•Operating in the 2nd and 3rd tier towns.

Challenges24

Infrastructure Issues

Trade cost 1: Time costs: the distances and lack of density result in a time costGetting the right solution to remote areas

Trade cost 2: Transport costsNo railway network, only water, and there too, there are no ports for large tankersTransport costs can add 30% above and beyond cost of goodsThe ‘last mile’ is a significant challenge, particularly in delivery to rural areas. To manage this, Choppies has invested heavily in our own fleet of trucks and trailers.Tendering and other process are not transparent so good companies keep away

Technology is a big challenge, e.g. bandwidth connectivity

Challenges25

Supply Chain Issues

Trade cost 3: Transaction costsLack of local mid-level manufacturers who can supply; therefore need to go cross-border

T3.1: Transactional paperwork and operational costs around information gathering, international contract drafting, and contract enforcement

T3.2: Exchange rate fluctuation costs

Trade cost 4: Tariff costsLack of local mid-level manufacturers who can supply; therefore need to go cross-border

This implies import duties

Challenges26

Oligopoly Situation in the high end manufacturing sector, e.g.:

High-quality pasta, convenient/ready to eat meals, etc.Washing powderIn equalityThis implies a local manufacturing monopoly and potentially limited buying power with local manufacturersChoppies may therefore need to approach overseas manufacturers, thereby competing on a global scale with international mass retailers, a class wherein Choppies may have relatively limited buying power

Labour Issues- Mainly in South Africa

Recession mainly in Zimbabwe and South Africa

Challenges

27

BureaucracyThere’s a cost of political capital to doing business in Africa like cost of local partnership in certain countries. Transactional paperwork and bureaucratic red tape add to costs

Cultural & Socioeconomic challengesTraditional media (television and print) does not always reach all market segments. Companies need to be efficient in using their marketing budgets, keeping in mind that traditional media may not have the same impact as in developed markets.Still the most popular mode of media is radio amongst the masses. It really causes a challenge to gain penetrationStrong traditions always difficult to change and bring new stylesSlow progression of educational systems also contributes to the challengeSocial integration-foreign skilled labour moving to Africa with a long-term view Africa is a not a homogeneous market – different countries have different cultural aspects. As Choppies expands across Africa, we will need to customise our offering to local requirements.

Key factors for sustainable growth28

Build a Brand

Building a consistent and reliable brand is important. Consumers are brand-conscious and seek value. Value is not purely in price terms, but in terms of the actual product or service experience.Once you establish a brand and are successful make sure you have a share of mind almost every day in the consumer’s life

Understand cultural nuances

Broadening product line to be Africa-specific while having cost excellence…This would require a Lean or Six-Sigma-based operational methodology to pervade the companyThis in turn would require extensive human capital development/trainingBuilding a stable, cost effective supply chain is criticalData is most critical asset in AfricaNo proper data is available there

The Choppies brand as a strategic asset29

We have focussed on building the Choppies brand and ensuring it stands for quality, value and customer satisfaction. We constantly strive to be relevant to the local communities we are present in –through providing employment, local sourcing or CSR activities

Our staff are our brand ambassadors – we ensure employees at all levels are engaged, motivated and feel successful

PMR Awards Outstanding – 1st Overall: in 4

categories Excellent – 2nd Overall: in 1 category

2nd African Youth Games – Platinum Sponsor ($1,000,000)

Lady Khama Charitable Trust Fund My Star Talent Show (Main Sponsor) Kabelano Charity Cup (Associate

Sponsor) University of Botswana (Sans Research

Centre) – Student Tuition Sponsor Presidential Housing Appeal (Biggest

Sponsor) and others…

Enthembeni old age home Mpilo hospital Tsholotsho flood victims Bulawayo Public Library 3 clean-up campaigns

Nkulumane shopping complex Sekusile Nkulumane J.M.N street in the CBD

Meridian Primary – refurbishment TC Esterhuizen hygiene day Vision of hope Race4Rhino – research & kits Lephalale flooding Kindermusik sport exposure Rustenburg – cash assistance during

strike Boshoek School – refurbishment Flunkey Monkey – school fees Sponsored displaced children and others…

Corporate Social Responsibility30

Botswana South Africa Zimbabwe

SADC Statistics 201331

Particulars Measure Botswana Malawi Mozambique Namibia South Africa Zambia Zimbabwe TanzaniaCoverage Area

SADC Average

Mid Year Population in '000's 2,102 15,317 24,366 2,172 52,980 14,580 13,192 45,968 170,677 293,475

GDP at Current Market Prices in Million USD 14,788 5,080 15,764 12,586 349,007 26,835 13,490 33,284 470,834 668,202

Real GDP Growth Rate at Market Price % 5.90 5.40 7.10 4.40 1.90 6.70 4.50 7.00 5.36 4.10

Per Capita GDP (Per Head) USD 7,034 332 647 5,795 6,588 1,841 1,023 724 2,988 2,277

Annual Inflation Rate (period average) % 5.90 27.30 3.50 5.60 5.70 7.00 1.60 7.90 8.06

Imports of Goods and Services in Million USD 8,856 2,984 6,349 7,399 118,509 10,639 7,704 13,725 176,165 253,801

Exports of Goods and Services in Million USD 8,149 1,503 4,747 5,528 108,696 10,982 3,507 8,724 151,836 244,481

Trade Balance in Million USD (706) (1,481) (1,601) (1,871) (9,813) 343 (4,197) (5,001) (24,327) (9,320)

Imports of Goods and Services % of GDP 59.89% 58.74% 40.28% 58.79% 33.96% 39.65% 57.11% 41.20% 49.77% 37.98%

Exports of Goods and Services % of GDP 55.11% 29.59% 30.11% 43.92% 31.14% 40.92% 26.00% 26.20% 36.68% 36.59%

Total External Debt Stock in Million USD 3,223 1,496 5,798 1,121 137,095 3,513 8,934 12,790 173,970 217,040

Debt to GDP ratio % of GDP 21.80% 29.40% 36.80% 8.90% 39.30% 13.10% 66.20% 38.40% 36.90% 32.50%

Official Currency Name of Currency Pula Kwacha Meticias Dollar SA Rand Kwacha Dollar Shillings

Official Exchange Rate Per 1 USD 8.40 369.18 29.90 9.65 9.65 5.39 1.00 1597.60

International reserves Stock in Million USD 7,740 404 2,996 1,619 49,587 2,674 331 4,676 70,027 113,242

Life Expectancy at Birth Number of years 68.0 55.1 53.1 62.6 59.6 53.0 58.0 NA 58.5

Total Fertility Rate Per woman 2.7 5.6 5.4 NA 2.3 5.7 NA NA

Net Enrollment Ratio in Secondary Schools Total NA NA 20.9 NA NA NA NA 32.2

Total Labour Force in '000's 900 6,982 12,624 868 18,444 5,845 5,121 NA 50,784