Pepkor Europe has a strong footprint across Central and Eastern Europe with over 700 stores. It is looking to leverage this expertise to expand its discount retail brands Pepco and Mac-Dan into Western Europe. Pepco has experienced strong growth in Central and Eastern Europe and sees further expansion opportunities. Mac-Dan operates 25 stores in France and has begun converting them to a new discount variety store format, positioning it for growth in Western Europe. The presentation outlines opportunities for Pepkor's brands to leverage shared resources and expertise within the larger Steinhoff corporate group to support international expansion plans.

1. Investor Presentation
November 2015

2. Pepkor Europe: Pepkor has a strong footprint in Central & Eastern Europe and a
growing presence in Western Europe
2
France: 25
Eastern
Europe: 700+
UK: 50
European footprint

3. Content
3
UK
Central & Eastern Europe
Western Europe
Group leverage opportunities

4. UK market overview: 3 key retail trends driven by long-term structural change
4
• The way people shop has changed
• Time-poor, looking for convenience
• Growth of local, smaller formats
Convenience
• Macro improvements in digital
infrastructure
• Sophistication of service
proposition
• Significant channel shift online
Online
• Behaviours learned during recession
now entrenched
• Price is king
• Limited line formats resonate with
budget-conscious shoppers
Discount
1
2
3
CAGR 2004-14 CAGR 2014-19
CAGR 2004-14 CAGR 2014-19
CAGR 2004-14 CAGR 2014-19
Source: IGD; Verdict

5. UK discount landscape: 6 sub-sectors of UK discount retail (majority smaller, local
formats)
5
Single price variety Multi price variety Grocery
Clothing & home Health & beauty Other
SpecialistBroadAssortment

6. PEP&CO’s target customer: Mums on a budget shopping for value family apparel
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Value conscious mum with kids
(focus on C1/2DE demographic)
Likes flattering and feminine clothes
Fashion attitude of 25-50
Interested in fashion, but is a follower not a
leader; tempted by broad appeal, multi-
purpose items
She’s practical and on a tight budget, loves a
bargain for herself and her kids
Target customer

7. PEP&CO store dynamics: Womenswear, childrenswear and babywear for under
£10 in a clean and easy-to-navigate store environment
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• Mix of womenswear,
childrenswear/babywear and
small selection of home and
FMCG/impulse
• 95% of product is <£10 and
prices start at £1
Product & priceStore environment & campaign

8. PEP&CO location strategy: PEP&CO has national coverage with its first 50 stores
located in secondary towns across the UK
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Strategy
• Avg. store size of 3.5k sq feet of
ground floor selling space
• Located in shopping centres in
secondary towns (shopping
centres anchored by other
discount shops and value
fashion offers)
National coverage

9. Content
9
UK
Central & Eastern Europe
Western Europe
Group leverage opportunities

10. Current overview of PEPCO: PEPCO operates over 700 stores in Central & Eastern
Europe and the business continues to see strong growth
10
• Vision to be the best and
cheapest clothing and
housewares discount
brand in Europe
• As of September 2015,
Pepco operated over 700
stores across 5 countries in
Central & Eastern Europe
• Continued strong
momentum in the region
597
58
45
14 24
Central & Eastern European footprint

11. Competitor landscape: PEPCO competes with domestic and foreign discount
players and maintains leadership positions in key categories
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Discount clothing & GM retailers
Discount food brands
Adjacent & emerging discount players
Informal market
Not yet in PEPCO markets

12. PEPCO’s key success factors
12
Strength of PEPCO brand – 4th place in Poland
to be known for clothing & household articles
(behind Ikea, H&M, Home & You)
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EDLP price leadership – Target to be equal or
lower than competitors on 95% of basket of
entry and key volume lines
2
Assortment of product – ‘Everything under
one roof’
3
Availability of product – 93% in stock on
minimum display quantities at store level
4
Footprint – Known for convenient locations
5
Cost leadership – Focus on efficiency
6

13. Rollout strategy in Eastern Europe: Expansion plans are progressing in all 5 of
PEPCO’s markets
13
Rollout strategy
• Significant in-fill
opportunity in all markets
outside of Poland
• Continued opportunity for
growth within Poland
597
58
45
14 24
Central & Eastern European footprint

14. Content
14
UK
Central & Eastern Europe
Western Europe
Group leverage opportunities

15. Current overview of Mac-Dan: Mac-Dan is well-positioned to build out a discount
variety chain in Western Europe
15
• Discount variety chain acquired in
2014 from the founding Roticci
family
• Currently trading 25 stores, 13
owned, 12 franchised
• Of the owned stores, 4 have been
converted to the new Mac-Dan
format
• Geographically well-positioned in
less competed area of Western
European discount market
French footprint

16. Market overview & strategy: Mac-Dan has moved to the less-competed discount
sector of the non-food market
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Value
Discount
Food Non-Food
Clothing & footwear Non-clothing (“bazar”)

17. Other country opportunity: Markets in Western Europe present an attractive
opportunity for potential Mac-Dan expansion
17
Monthly “Mac-Dan” market value in 000’s EUR**
*Estimated data
** Assuming all expenditure for category offered at Mac-Dan would be spent there

18. Next steps for Mac-Dan
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Continue store conversion
programme
Continue modernisation of offer
and service
Improve visual merchandising
Explore other market
opportunities
1
2
3
4

19. Content
19
UK
Central & Eastern Europe
Western Europe
Group leverage opportunities

20. Pepkor Europe & group leverage
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• Pepkor GPS
• Product sharing
• Product knowledge sharing
Sourcing
• Logistics partner relationships
Logistics
Back-Office
• IT hosting and shared platforms
• Talent acquisition & HR
• Finance
• Shared UK property team
Property

21. Steinhoff group leverage
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• Co-location opportunities
• Property investment & development
Sourcing
Logistics
Back-Office
Property
• Logistics partner relationships
• Shared distribution opportunities
• Product sharing
• Product knowledge sharing
• Shared services (eg, IT, Treasury)
• Market knowledge sharing