Distell : Trading statement for the year ended 30 June 2022

Distell Group Holdings Limited

Incorporated in the Republic of South Africa Registration number: 2016/394974/06

JSE share code: DGH

ISIN: ZAE000248811

("Distell" or "the Group" or "the Company")

TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2022

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, companies are required to publish a trading statement as soon as a reasonable degree of certainty exists that the financial results for the period to be reported on next will differ by at least 20% from those for the previous corresponding period.

Accordingly, a review by Distell's management of the financial results for the twelve months ended 30 June 2022 (FY22) has indicated the following:

	Expected	Reported	Change
	Financial	Financial	%
	year ended	year ended	FY22 v FY21
	30 June 2022	30 June 2021
	(cents)	(cents)
Earnings per	1 022,8 -		16,1 -
share (EPS)	1 110,8	880,6	26,1
Headline earnings	1 002,4 -		30,3 -
per share (HEPS)	1 079,4	769,6	40,3

TRADING UPDATE

Group performance

• Group revenue increased by 20,8% alongside volume expansion of 17,6% compared to the previous 12 months ended 30 June 2021 (FY21 or the 'prior period').
• In South Africa, the business delivered an outstanding performance with a strong double-digit increase in revenues and volumes. This was during a period with 47 more trading days compared to the prior period.
• The Africa business, including BLNE (Botswana, Lesotho, Namibia and Eswatini) countries, also performed well with revenue and volumes increasing in the mid-teens.
• The international business grew revenues and volumes by high single-digits.

• The Group's net debt position remains strong with a debt-to- equity ratio of less than 2%.

HEINEKEN INTERNATIONAL B.V. TRANSACTION

Shareholders are reminded that Distell is in an offer period as contemplated in the Companies Regulations, 2011 ("Takeover Regulations"), issued in terms of the Companies Act, 2008, in respect of the scheme of arrangement proposed by Distell's board of directors to Distell shareholders and approved at the Distell shareholder meeting held on 15 February 2022, convened in terms of the circular to Distell shareholders issued on 17 January 2022 ("Heineken Transaction"). As a consequence, Distell is required to comply with the provisions of Takeover Regulation 111(9) and (10) in relation to this Trading Statement. The required report by Distell's auditors in relation to the forecasts contained in this Trading Statement is expected to be received on or about Wednesday, 24 August 2022, following which a further announcement shall be made to shareholders. Shareholders are advised to take this into account when considering this Trading Statement.

The process of obtaining regulatory approvals in relation to the Heineken Transaction is ongoing and, as indicated in the announcement released by Distell on the Stock Exchange News Service (SENS) on 15 June 2022, Distell anticipates that the implementation of the scheme of arrangement can still occur before the end of 2022. As soon as Distell receives more clarity on this, a revised timetable, indicating all relevant dates will be communicated to all shareholders.

The parties continue to engage proactively with regulatory authorities.

INVESTOR CONFERENCE CALL

The Group's financial results for the twelve months ended 30 June 2022 will be released on SENS on or about Thursday, 25 August 2022. Management will be hosting a conference call post the release of the Group's year-end results via webcast, and in person at Durbanville Hills Wine Farm, Cape Town at 14h00 CAT (Central Africa Time).

Participants are requested to register in advance by navigating to https://themediaframe.com/mediaframe/webcast.html?webcastid=HAAzGPR7

RSVP attendance to Durbanville Hills to be made via [e-mail]

RESPONSIBILITY STATEMENT

The board of directors of Distell accepts responsibility for the information contained in this announcement and certifies that, to the best of their knowledge and belief, the information contained in this announcement is true and nothing has been omitted which is likely to affect the importance of the information.

Stellenbosch

12 August 2022

Sponsor and Corporate Broker

RAND MERCHANT BANK (A division of FirstRand Bank Limited)