1 4 | 0 3 | 2 0 1 7

I N V E S T O R P R E S E N TAT I O N I N T E R I M F I N A N C I A L R E S U LT S A S A T 3 1 D E C E M B E R 2 0 1 7

R i c h a r d R u s h t o n – G r o u p M a n a g i n g D i r e c t o r L u c a s V e r w e y – F i n a n c i a l D i r e c t o r

1 4 | 0 3 | 2 0 1 7

S A L I E N T F E AT U R E S

Demonstrating topline growth in the face of an increased competitive environment

• Commendable top-line growth achieved

o South Africa: Defended share and grew volumes in all three categories

o Africa: KWAL integration, BGB contributing positively

o International: Strong Wine and Amarula growth

• Focused Portfolio yielding results

• Strong revenue growth from 12 of 15 largest brands

• Double-digit volume and revenue growth from Savanna

• Additional normalised EBITDA of 3.5% achieved through inorganic growth

• Net cash generated from operating activities up 15.4%

• Non-core disposals improve ROIC and Net Debt/Ebitda

• Once-off 6.8% reported HLE loss through TDL associate

• Above global average excise pressure on margins

Note: This presentation includes the discontinued operations of Bisquit.

Sales volumes 404.4 3.6 % 3.6%

Revenue 13,652.0 9.1 % 9.1%

EBITDA 2,077.4 11.4 % 7.0%

Headline earnings 1,117.3 -5.1% 3.2%

Headline earnings per share

509.2c -5.1% 3.2%

Net cash from operating activities

1,762.9 15.4%

REPORTED ‘m REPORTED NORMALISED

FX

1 4 | 0 3 | 2 0 1 7

O U R S T R A T E G I C A S P I R A T I O N S

Double revenue growth & EBITDA

By 2021

Grow and win In South Africa

Expand into Africa & one major

International market

Leverage core Brand portfolio

1 4 | 0 3 | 2 0 1 7

K E Y S T R AT E G I C I N I T I AT I V E S TO D R I V E VA L U E

Revenue

1

Gross Profit

2

Operating Cost

3

Financial Value

Drivers

Invest in the front-end

Own the

relationship with the customer and the

consumer

Make clear, deliberate choices on which brands and markets where we have the right to win

Defend and grow SA

Accelerate our geographic diversification

Empowered, high performance and agile organisation culture

Lead selected emerging markets

Craft distinctive & compelling

brands

Own the last mile

Shape the future

Scale up excellence

Care & contribute

Build our corporate reputation

Influence

regulatory policy

Transform

and diversify our business

Implement world class

sustainability practices

Change our operating

model

Deepen our talent pipeline

Shape our culture

Optimise our supply chain

Invest in

management systems

1 4 | 0 3 | 2 0 1 7

S O U T H A F R I C A ‘ G R O W & W I N I N S A ’

S O U T H A F R I C A P E R F O R M A N C E H I G H L I G H T S

Top 5: Macro drivers of change

Growth across all 3 categories despite economic and market challenges

• Sales volume growth in all 3 categories.

• 3.8% volume growth in RTDs

• Exceptional brandy volume growth continues at 14% YTD

• Gin continues run of strong double digit growth of 21%

• Whisky performance follows global trends, Bain's stable

• Mainstream wine growth muted from increased competition and trading up. Premium wine benefitting with 5 key brands showing strong growth.

• Shift in mix impacting gross profit margin negatively

• Challenging excise environment: Ability to balance margins and pricing effect for consumers under pressure

SOUTH AFRICA

2.9% 8.2 % 75.3%

VOLUME REVENUE REVENUE %

DISTELL

YTD Highlights to end Dec Outlook

All three categories finished in growth for both volume and value :

Our premium RTD range continues to perform very well (YTD):

• Savanna +18% Volume / +20% Value • Bernini +41% Volume / +55% Value

Great performance by key brands in our core wine range:

• Nederburg +23% Volume/+24% Value • Drostdy Hof +51% Volume/+52% Value

• Re-establish premium credentials on full Hunter's range through Black Coffee collaboration with full through the line activation

• Savanna ‘headliner’ promotion to drive volume and value in Q4

• 4th Street collaboration with Project Runway to drive awareness and establish big brand status

• Aggressive revenue management through targeted drives by occasion, brand, pack and channel on key SKU’s to drive volume

S O U T H A F R I C A – P E R F O R M A N C E U P D AT E

Category: H1 Vol. (vs. PY) H1 Val (vs. PY)

RTDs + 3.8 % +6.7 %

Wine +0.4 % +4.5 %

Spirits +7.4 % +15.5 %

Strong performance saw RSA finish ahead of History YTD

1 4 | 0 3 | 2 0 1 7

A F R I C A “ E X P A N D A N D G R O W I N T O A F R I C A”

1 4 | 0 3 | 2 0 1 7

BLNS 2.8% 4.2% 54.7%

Zambia 31.4% 12.2% 6.1%

Mozambique -19.2% -35.3% 3.8%

Zimbabwe 22.6% 17.3% 2.3%

Kenya 368.7% 560.2% 18.9%

Nigeria -31.7% -35.3% 1.9%

Ghana 22.4 % 22.7 % 3.0 %

Angola -11.2 % 20.1 % 3.6 %

A F R I C A – P E R F O R M A N C E O V E R V I E W

• Long-term objective to build an effective, pan African platform

• Exceptional performance for KHEAL

• BGB producing annualised EBITDA in line with expectations

• Zimbabwe grew strongly driven by locally produced ciders

• Nederburg high double-digit growth across majority of key countries

• J.C. Le Roux and Amarula demonstrating growth in Angola

• Cellar Cask enjoying good growth in Zambia

• ZAR 85.9m negative impact from TDL associate

• Change in Ghana operating model to improve profitability

• Full scale RTD and wine production in West Africa

• Production delay in Angola as UTAIP still not forthcoming

Building a long-term platform to unlock growth

AFRICA incl. BLNS

6.6% 18.5 % 13.7%

VOLUME REVENUE REVENUE %

DISTELL

REVENUE % AFRICA

Acquire, integrate, grow and build value

A F R I C A : L E V E R A G E O F F A N G O L A A N D K E N YA P L AT F O R M S

KWA Holdings EA • H1 volume, revenue and EBIT trends above targets

and prior year, expected to continue in H2

• Excellent local brand momentum

• Building and ramping up capability

• Leverage existing RTM for BGB brands

• Significant margin improvement

• Culture change, quality management being

embedded

Best Global Brands (BGB)

• H1 sales volume & EBITDA above expectations

• Angola FY to reach 33m litres; Nigeria 10m litres and

expanding into Kenya, Zambia and Mozambique

• Profit/EBITDA impact +R41.6 M

• Margin enhancing and accretive business

• FY results materially impacted by FX

• Now expanding brands and packs across continent to reduce dependence on Angola

• Ramping up production in Nigeria, Kenya and Angola

DEC 2016 YTD DEC 2017 YTD

CASH OPEX % NSV 24.1% 24.1%

EBITDA Margins 9.9% 15.1%

EBIT Margins 7.5% 12.3%

Average ZAR : KES = 1 : 7.69

Gross Margin 39.3%

Adjusted Gross Margin 35.6%

EBITDA Margin 30.2%

A&P as % of NSV 3.8%

LOCAL KPI’s DEC 2017 YTD

Sales Volumes (ltrs) +14.4%

Net Sales Revenue +10.3%

EBIT +80.6%

PLATFORM TO BUILD A SCALE PAN-AFRICAN BRAND

BUILDING AND GROWING OUR EAST AFRICA PLATFORM

1 4 | 0 3 | 2 0 1 7

I N T E R N AT I O N A L “ E X PA N D I N T O O N E M A J O R I N T E R N AT I O N A L

M A R K E T ”

I N T E R N AT I O N A L P E R F O R M A N C E H I G H L I G H T S

Top 5: Macro drivers of change

• UK retail listings driving sales growth in wine

• Amarula growing in top five markets

• Market share growth in 17 International markets for SA bottled export wine

• Taiwan market share increase in shrinking market

• Travel Retail grew sales by 43%

• Impact of strengthened ZAR/USD

• Slow recovery in Brazil

• Effect of SA drought and stronger ZAR to impact wine exports

Premium Wine and Amarula enjoying healthy growth

International 6.0 % 7.7 % 10.9 %

VOLUME REVENUE REVENUE %

DISTELL

REVENUE % INTERNATIONAL

Europe 6.4% 16.3% 54.5%

North America -17.8% -27.0% 8.2%

Asia Pacific 7.8% -5.0% 23.1%

Latin America 11.7% 20.5% 4.2 %

Travel retail 43.4% 43.2 % 9.9 %

1 4 | 0 3 | 2 0 1 7

O U R B R A N D S ‘ L E V E R A G E C O R E B R A N D P O R T F O L I O ’

M A R K E T I N G : E X P A N D I N G O U R I N F L U E N C E

Our unique brand crafting capabilities position Distell to grow our consumer base

CATEGORY EXPANSION

BRAND RENOVATION

OFFERING VALUE

CONSUMER BASE

EXPANSION

Core brand extensions transcending traditional category boundaries

Deliver value at the right price point

Building brand equity to recruit new consumers to the category and our brands

Successfully expanding choice and building premium cues for our core brand assets

B R A N D P O R T F O L I O : C I D E R & R T D s

Savanna • Double-digit volume and value growth • Increased Brand health measures (incl PIM & Equity) • Strong growth lead by Dry and Light 330ml & 500ml. Hunter’s • Volumes under pressure but brand health stabilised since ‘Start Refreshed’ campaign in October 17 • Showing early signs of volume recovery • Remains world’s 2nd largest cider brand

• Bernini SA’s fastest growing grape RTD: 41% volume and 55% Value growth • Still responding strongly to flavour trends • Blush and Classic shows exceptional domestic volume growth of 126% and 144% YTD. • New launch of Ruby Berry performing ahead of expectation • Increased Brand health measures (incl PIM & Equity)

+3.3% volume +6.2% value

B R A N D P O R T F O L I O : S P I R I T S

• Amarula posted strong volume growth in all 6 leading markets. • Continued momentum following new marketing mix (Made from Africa) and ‘name them, save

them’ campaign • Argentina is performing well with new RTM

• Global blended whisky volumes under pressure, impacting blended whisky performance • Bain’s brand health measures increasing (Incl PIM and Equity) and performing in line with single

malt trends • Taiwan market share increased despite volume pressures to reduce in market stock levels • Whisky strategy refreshed to address blended Scotch category volume decline

• Continued momentum in both volume and value improvement • Recovery being led by Viceroy, with growth of Richelieu and Klipdrift supporting category

turnaround • Optimal pricing ladder and prudent pricing to improve margin

+10% volume +14% value

-8.6% volume* -0.5% value*

+16% volume +23% value

*excl. bulk

PA

LATE

/ P

RIC

E

ON MY WAY

MATURE

STEP UP

STARTER

B R A N D P O R T F O L I O : C O N S U M E R W I N E J O U R N E Y

• 4TH STREET: Volume growth plateaued due to increased competition and consumer trading up

• DROSTDY HOF: Domestic consumer trading up, increased volumes by +51% and value by +52%

• TWO OCEANS: Consumer trading up with increased volumes of 20% and Value +14.3% in South Africa M

ain

stre

am

Pre

miu

m

• NEDERBURG: Overall domestic and International growth of 17.2% by Volume and 13.7% by Value

• DURBANVILLE HILLS: Double digit growth in Top 6 countries

• FLEUR DU CAP: Building brand appeal through new brand positioning

• ALTO: All leading markets showing double digit growth of 19% by Value and 19% by Volume

1 4 | 0 3 | 2 0 1 7

S U S TA I N A B I L I T Y

1 4 | 0 3 | 2 0 1 7

ALL CITY OF CAPE TOWN SITES

D R O U G H T R E S P O N S E ( W E S T E R N & E A S T E R N C A P E )

23.1% REDUCTION

WESTERN CAPE SITES

WATER USAGE REDUCTION ALREADY ACHIEVED:

The drought poses real risk to the supply of grapes and wine in the medium term (2 – 3 years). We have secured sufficient supply for the current cycle.

ON TRACK: CITY OF CAPE OWN

LEGISLATED TARGET January 2018

29.2% REDUCTION

45% REDUCTION

• We have sustained momentum on water saving in our business culture

• We are accelerating our water management programme through

• continued demand reduction management

• introducing new water saving initiatives.

• Redirecting capital expenditure to waste water treatment and reuse programmes (R22m)

• Phased in BCP for all affected sites; production, distribution, sales and admin offices including Shared Services Centre (HIVE)

• Relocation of water-intense production activities to areas with sufficient water supply

• Implement integrated employee response and care plan

• On Day Zero, our operations will be reliant on groundwater and transported water

1 4 | 0 3 | 2 0 1 7

Strategic focus areas • BBBEE: Achieved level 4 status • Invested R120M in Transformation initiatives • Created businesses in our value chain to support local economies: Local sourcing across categories & geographies • Nurture our environment: Focussed initiatives to ensure we operate in a sustainable and ethical manner

• 10 ACI TOPP candidates • 35 apprenticeships • 53 interns • 85 learners with disabilities on programme • 243 learnerships

• Successful decentralisation of alcohol harm reduction projects (FAS) to South Africa

• Nordics: customer CSR marketing link • Sustainable Return on Investment part of all

new beneficiary contracts • 10 NGO capacity building programmes • Brands CSI: Amarula and Nederburg • Distell presented on social compliance and

CSR at the FIVS conference

• 4 investments completed • 2 Enterprise Development companies

established • 2 Supplier Development companies

supported • 7 Business signed on to E+scalator Program

B - B B B E E H I G H L I G H T S H Y 1 8

• Expenditure on Black-owned suppliers was in excess of half a billion rand for the period under review

• Expenditure on Black-women-owned suppliers amounted to R435 million for the period under review

• Development of Targeted Plan and Approach per procurement category

• Supplier Development Transformation Support • On track to meet BBBEE target

ENTERPRISE & SUPPLIER DEVELOPMENT

SED

SKILLS DEVELOPMENT

PREFRENTIAL PROCUREMENT

1 4 | 0 3 | 2 0 1 7

F I N A N C I A L S U M M A RY D E C E M B E R 2 0 1 7

L U C A S V E R W E Y

1 4 | 0 3 | 2 0 1 7

S A L I E N T F E AT U R E S

Sales volumes 404.4 3.6 % 3.6%

Revenue 13,652.0 9.1 % 9.1%

EBITDA 2,077.4 11.4 % 7.0%

Headline earnings 1,117.3 (5.1%) 3.2%

Headline earnings per share

509.2c (5.1%) 3.2%

Net cash from operating activities

1,762.9 15.4%

REPORTED ‘m REPORTED NORMALISED

FX

Showing growth in the face of tough economic trading conditions

Note: This presentation includes the discontinued operations of Bisquit.

Gain on sale of investments (Lusan mostly) in current year

(3.9%)

Brand Phoenix and Angola land impairments in prior year

(3.4%)

Tanzania Distilleries Ltd (TDL) write-offs and impairments in current year

4.9%

FX adjustment (2.0%)

Difference between reported EBITDA and Normalised FX EBITDA

(4.4%)

Amarula interest accrual reversal in prior year 3.7%

Tanzania Distilleries Ltd write-offs in current year

6.8%

FX adjustment (2.2%)

Difference between reported HLE and normalised FX HLE

8.3%

1 4 | 0 3 | 2 0 1 7

K E Y TA K E - O U T S

• Top-line revenue growth achieved across reporting geographies

• Growth in 12 out of the top 15 largest brands by revenue with Savanna achieving double digit volume 12.1% and revenue 14.4%

growth

• Double-digit volume and revenue growth achieved for Brandy

• Procurement and COGS efficiencies materialised; optimised returnable bottles

• Additional normalised EBITDA of 3.5% achieved through inorganic acquisitions (Kenya Wine Agencies Limited (KWAL), Cruz Vodka and

Best Global Brands (BGB))

• Tanzania Distilleries Ltd (TDL) (35% ownership) once-off write offs and impairment impact of R85.9m

• Inefficient assets rationalised; unwinding of LUSAN wine farms and disposal of Bisquit

• Network optimisation in process with closure of Bergkelder and the creation of a self-sufficient Northern region

• Back-office first phase consolidated into shared service centre in Bellville

• Portfolio optimisation in process (acceleration anticipated due to

increasing water supply constraints and stronger ZAR)

1 4 | 0 3 | 2 0 1 7

D R I V E R S O F M A R G I N Maintained positive bottom line growth

Normalised FX =

strategies

10,070

4,527 1,762 1,862

3,582

5,543

2,765

13,652

100

DP Revenue Excise NDP

Revenue

COGS Gross Profit Expenses Trading

Profit

Equity

inc/other

Normalised

EBIT

Rm

118.8 106.0 104.2 108.2 110.1 105.4 208.3 108.3 109.1

History Trends

NDP%CY: 100.0 55.0 45.0 27.5 17.5 -1.0 18.5NDP%PY: 100.0 56.0 44.0 26.4 17.6 -0.5 18.1

DP%CY:100.0 26.2 73.8 40.6 33.2 20.3 12.9 -0.7 13.6DP%PY:100.0 24.1 75.9 42.5 33.4 20.0 13.4 -0.3 13.7

Note: Revenue after trade incentives and settlement discounts

107.4 106.1

1 4 | 0 3 | 2 0 1 7

C O N T R I B U T I O N P E R R E G I O N

Note: Calculated excluding cash discounts and DVC where applicable

South Africa volumes up 2.9% leading to a revenue growth of 8.2% in a competitive market

International UK increased sales- and RTM capability resulting in revenue growth

Sub-Sahara Africa (incl BLNS) KHEAL consolidation assists growth in a tough macro-economic context

• Revenue on a NDP basis outside RSA comprises 15.5% of group revenue

79.4%

6.1%

14.5%

6.6%

6.0%2.9%

75.3%

10.9%

13.7%

South Africa

International

Africa (incl BLNS)

18.5%

8.2%

7.7%

Volumes up

3.6%Revenue up

9.1%

Increase/decrease

from previous year

1 4 | 0 3 | 2 0 1 7

C O N T R I B U T I O N P E R C AT E G O R Y

Note: Calculated excluding cash discounts and DVC where applicable

• Volume and revenue growth across all categories

• Excellent growth in spirits mainly driven by Viceroy and Amarula

• Good double digit growth by Savanna, indicating a resilient recovery from a tough competitive environment

• Strong performance by Bernini, Nederburg, Drostdy-Hof, Klipdrift and Richelieu

10.2%

35.9%53.9%

3.3%

1.7%

13.4%

35.6%

27.6%

36.8%

Spirits Wine Cider/RTD

6.2%

Volumes up

3.6%

Revenue up

9.1%

18.4%

5.8%

Increase/decrease from previous year

1 4 | 0 3 | 2 0 1 7

D R I V E R S O F R E V E N U E G R O W T H Healthy volume and price growth supporting overall revenue growth

13,652

717

12,516

476187

497

2016 History

Volume Sales Mix Currency Price New/Disc prod + Other

2017 Actual

Rm

Index 109.1 (0.1)4.0 (0.1)1.5 3.8 100.0

1 4 | 0 3 | 2 0 1 7

D R I V E R S O F E X C I S E G R O W T H Full excise price increase not passed to customers

3,582 3,014

85 87286

110

2016 History Volume Mix Price New Business 2017 Actual

Rm

118.8 3.6 9.5 2.9 2.8 100.0

1 4 | 0 3 | 2 0 1 7

Actual History Trend

COMPARABLE

EXPENSES

Reported – marketing

spend & opex2,765.0 2,511.9 110.1

Inorganic adjustments 91.6 0.0

Shared Service Centre -

HIVE11.2 0.1

New Business - M&A 10.8 3.2

Legal fees 7.1 4.1

Post-Retirement Medical

Aid5.0 11.2

Site Services 21.9 18.2

SETA Projects 7.2 2.6

Information Technology 61.2 53.7

Comparable opex 2,549.0 2,418.9 105.4

E X P E N S E S – Y T D D E C E M B E R 2 0 1 7

1 4 | 0 3 | 2 0 1 7

H E A D L I N E E A R N I N G S • Operating profit increased by 13.7%

and includes adjustment for capital items below

• Net finance cost & dividend income of (R166.6m) (Dec16: (R98.2m))

• Associates negatively impacted by once-off TDL items of R85.9m

• Effective tax rate 27.7% (Dec16: 28.5%) as the gain on the sale of Lusan is not taxable

• The movement in the Capital & Abnormal items is mainly due to profit on the sale of farms and other PPE as well as TDL once-off items in the current year

• History includes Angola industrial property rights impairments and the reversal of the interest accrual on the Amarula case. These are added back to normalised FX headline earnings

Normalised FX Headline earningsRm

1,243

1,204

2017/18 2016/17

1,762

69

1,831

(167)

11

(465)

(8)

41

Trading profit

Other gains and losses

Operating profit

Net finance cost & Divinc

Associates

Taxation

Minority int

Add back Capital & FX& Abnormal items

1 4 | 0 3 | 2 0 1 7

TA N Z A N I A D I S T I L L E R S LT D ( T D L ) – Y T D D E C 2 0 1 7

• TDL volume, revenue and profitability below expectation, mainly due to sachet ban implemented since Mar 2017

• Provided for 30% of excise duty dispute exposure. TDL management confident that settlement would be reached between 7.5% and 30%.

• Legal case pending w.r.t. Tema (main customer) debt, recovery is unlikely. Forensic audit has been authorised by TDL board and expected to commence soon

• All sachet related bad debt is provided for

• Property, plant and equipment (PPE) impairment relates to sachet bottling line. Limited potential buyers with no offers to date.

• Outlook for TDL 2018 financial year (end Dec 2018) is positive with new product launches and the return to the previous export model for Kenya

Normal business 13,883 63.1

Normal business profit 13,883 63.1

Excise duty dispute (Included by TDL)

(7,499)

Excise duty dispute (Distell Additional)

(22,119)

Staff retrenchment (375)

Tema (main customer) write-off

(25,328)

Sachet Ban (30,550)

- Stock (12,830)

- Bad debt (3,958)

- PPE impairment (7,410)

- Excise (6,352)

Net impact on Distell Group

(71,988) (100.0)

TDL DISTELL IMPACT DEC 2017 YTD

(R’m) DEC 2017 YTD

TRENDS

R85.9m write-offs and impairments

1 4 | 0 3 | 2 0 1 7

E X C H A N G E R AT E S

Currency 2017/18 2016/17

Change

on

History

GBP 17.69 17.90 -1.2%

EUR 15.79 15.38 2.6%

USD 13.43 14.00 -4.1%

CAD 10.64 10.62 0.2%

YTD December 2017 average

rates

ZAR remains volatile amid the changing political landscape and credit ratings uncertainty

Average exchange rate strengthening 0.6% on History

1 4 | 0 3 | 2 0 1 7

N E T O P E R AT I N G A S S E T S Up 11.8% (12.0% excl. FX) compared to revenue growth of 9.1%, thereby reducing net asset turnover

to net revenue growth of 9.1%, thereby improving net asset turn

• PPE increased by 16.4% (17.0% excl FX). Mainlydue to investments in the shared service centre,

cask and crates, effluent water treatment plants, cold space, network optimisation and KHEAL acquisition in April 2017.

• 1.0% increase (0.9% increase excl FX) in inventory mainly due increase in intrinsic consumables (flavours for Bernini, Hunter's Edge & Klipdrift Ngqo) and consolidation of KHEAL stock in current year.

• Accounts receivable increased by 9.5% (9.4% excl FX). Increased credit limits in SA for mainstream market with flexibility around peak periods. No

significant increase in doubtful debts. SA debtor days remains at 30.1 (Dec16: 30.1). Int&Afr debtor days at 99.3 (Dec16: 97.1).

• Accounts payable increased by 3.1% (3.5% increase excl. FX).

• Intangibles assets include mainly: - Goodwill and trademarks - Investments in associates and JV's of which R726.5m relates to the new investment in BGB in the current year.

Fixed and biological assetsRm

InventoryRm

Accounts receivableRm

Accounts payable and provRm

Intangibles and InvestmentsRm

Group

Net operating assetsRm

15,870

14,195

2017/18 2016/17

6,012 5,167 16.4%

7,421 7,346 1.0%

4,203 3,839 9.5%

4,705 4,564 3.1%

2,940 2,407 22.1%

11.8%

*Includes associates and JVs. Excludes deferred tax and retirement benefit assets & liabilities.

12.0%

Excluding

exchange rate

impact17.0%

0.9%

9.4%

3.5%

23.2%

Working capital cash

flow improved

to deliver a cash inflow of R60.5m

(Dec16: R117.9m outflow).

This

represents a R178.4m

positive swing

1 4 | 0 3 | 2 0 1 7

Investment in Associates & JVs

32.5%

Goodwill & Trademarks

59.0%

Other Intangibles & Investments

8.4%

Intangibles and Investments R 2,940m

I N TA N G I B L E S A N D I N V E S T M E N T S The majority relates to Goodwill & Trademarks

18.5 % of Net Operating assets

INVESTMENT IN ASSOCIATES & JVs R’m

• Tanzania Distillers Ltd 32.0

• Grays Inc. Limited 36.7

• Best Global Brands 765.6

• Tonnellerie Radoux 8.1

• TD Spirits LLC 44.1

• Afdis Holdings 52.3

• Other 17.9

GOODWILL & TRADEMARKS R’m

• Distell Winemasters Limited 1.9

• Distell (Hong Kong) Limited 7.5

• Lusan Holdings 20.3

• KWA Holdings E.A. Limited 202.3

• Imported Premium Vodka Company Limited 131.1

• Distell International Limited 1,371.6

OTHER INTANGIBLES & INVESTMENTS R’m

• Software and property rights 184.3

• Other loans & investments 64.0

1 4 | 0 3 | 2 0 1 7

C A S H F L O W A N D F U N D I N G

FUNDING STRUCTURE DEC YTD

R’m

Bank overdrafts and call accounts

Cash and cash equivalents

Medium-term bank loans

Short-term bank loans

(70)

1,103

(4,375)

(393)

(3,735)

DEBT MATURITY PROFILE DEC YTD

R’m RATE

Within one year

Between one and two years

Between two and five years

393

1,200

3,175

1%

8.5%

8.5%

Gearing has increased marginally

Best Global Brands investment: R726.5m

Cash flow and funding

3.233

2,114

0 613,7353,660

19

882

1,349

Net borrowing

position 30 June2017

Operating profit Treasury shares Net cash

movement, netof borrowing

Working capital Distributions

(fin cost, tax &dividend)

Capex and

intangibles

Net borrowing

position 31December 2017

RmMedium-term borrowings R4,375m:• Euro, GBP and ZAR denominated• Debt/equity ratio 32.5% (Dec16: 28.8%)

Short-term net cash R640m:• Variable rate

Net cash generated from operating

activities increased 15.4%

1 4 | 0 3 | 2 0 1 7

P R O G R E S S O N D I S P O S A L O F N O N - C O R E A S S E T S

DISPOSAL RATIONALE

• Sale of Bisquit

• Unwind of LUSAN

• Sale of other non-core assets

Unlock balance sheet:

Reduction of assets and net debt

Improvement in net debt : EBITDA ratio

ROA improvement

Increase Distell’s ROIC

Previously caused misalignment. Distell owned 5 farms at 50% each. Now own 2 farms at 100% each.

This allows Distell the opportunity to focus on core assets

Core focus assets:

• Durbanville Hills

• Nederburg

• Alto

• Plaisir de Merle

1 4 | 0 3 | 2 0 1 7

S A L E O F B I S Q U I T

Rationale for sale: • Cost to gain route-to-market access was

unattractive in relation to the returns

• Focus on more asset-efficient opportunities and balance our portfolio better to improve our margin and return on investment

• Will ensure the assets within Distell's portfolio align with our strategy and generate long-term shareholder value

Estimate impact on Distell: • Will allow us to de-leverage our balance sheet as follows:

• Assets will reduce by R847.0m (3.8%) • Net debt will reduce by R267.7m (7.2%)

• Therefore our Net debt : EBITDA ratio will improve from

1.3X to 1.0X on a full year basis

• ROA will improve from 7.6% to 7.9% on a full year basis

• Ultimately increasing Distell group ROIC by 0.5%

• The impact on the income statement is as follows: • Revenue will reduce by 1.5% • EBIT growth on History will improve by 0.8%

1 4 | 0 3 | 2 0 1 7

O U T LO O K

1 4 | 0 3 | 2 0 1 7

I N C O N C L U S I O N

LOOKING AHEAD:

South Africa:

• Defend and grow top-line growth through optimised brand portfolio and innovation

• Maintain recovery and lead in the brandy category

• Drive our wine strategy across the price continuum

• Maintain Savanna momentum and invest behind Hunter's brand renovation

Africa:

• Continue to build Africa platform by leveraging KWAL

• Build scale for BGB brand in core markets

• Growth to be delivered via organic and inorganic initiatives with considered investments in route-to-market platforms

International:

• Sustain gains made in Europe

• Build our wine business in key Emerging Markets

• Drive added focus in wine and maintain share momentum of core brands

Continue on our journey to grow and build a leaner, focused and more agile organisation:

• Focused portfolio-tail brand, SKU and asset rationalisation

• Accelerate decentralisation

• Utilise and scale up shared services (HIVE)

• Optimised supply chain network-ensure low cost and consistent quality

• Decentralised, Agile and Empowered organisation

• Overarching focus on Sustainability

Inorganic activity is critical to enhance existing markets and unlock new market

Business model and portfolio to withstand short-term economic constraints to capture longer-term recovery

1 4 | 0 3 | 2 0 1 7

D I S C L A I M E R

This presentation contains ‘forward-looking’ statements, including specifically all statements that express market forecasts; Distell’s commentary on macro and industry related market trends; and projections related to Distell’s business strategy.

All forward-looking statements contained in this presentation involve risk and uncertainty since they are dependent on assumptions of circumstances that will occur in the future. There are multiple variables which could cause actual results to differ from the forward-looking statements which are not within Distell’s management control. Such variables include, but are not limited to, political, macro and socio-economic changes; legal and regulatory changes; litigation developments; technological changes; environmental risks and changes in consumer trends, among others. As such, Distell is not liable for any financial or other losses incurred arising from investment decisions made on the basis of forward-looking statements contained in this presentation.

As such, you are cautioned not to place undue reliance on the forward-looking statements contained herein, as they apply only as at the date of this presentation.

All forward-looking statements made by Distell apply only as of the date they are made. There is no obligation on Distell in the future to provide updates on forward-looking statements contained in this presentation to reflect any changes in Distell’s projections with regard thereto or any changes in events or underlying assumptions on which any such statement is based.