Integrated Annual Report and Consolidated Financial Statements 2016 Adding Value to Life Our Reputation As a Good Corporate Citizen Is Essential in Our Evolution

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo life Adding value to 2016

INTEGRATED ANNUAL REPORT AND ANNUAL REPORT INTEGRATED FINANCIAL STATEMENTS CONSOLIDATED

Tiger Brands integrated annual report and consolidated financial statements 2016 Adding value to life Our reputation as a good corporate citizen is essential in our evolution. Understanding the diverse needs of all our stakeholders – our people, communities, shareholders, governments, suppliers and others – guides our strategies for building mutually beneficial relationships that add real value.

For more information Visit our website see pages within the report for additional information

For further information visit our website: www.tigerbrands.com WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Contents

Introduction 1 2016 at a glance Business overview 2 Group profile 3 Our organisational structure 6 Our footprint 10 Managing our business 11 Our leadership 14 Chairman’s review 16 Chief executive officer’s review 20 Strategic review 22 Creating a virtuous growth cycle Key factors driving our strategy 24 Our key relationships 26 Our operating environment 28 Our competitive advantages and market position 29 2016 awards and accolades Financial review 30 Chief financial officer’s review 33 Five-year review 34 Value-added statement 35 Segment report 37 Summary of ratios and statistics Operational review 40 Grains 42 Consumer Brands – food 46 Home, Personal Care and Baby 48 International (including Exports) 51 Associates Non-financial review 54 Sustainability review 56 Our people 60 Health and safety 63 Transformation 65 Our communities 69 Our customers and consumers 74 Environment Governance review 82 Governance review 87 Committee reports 92 Remuneration report 102 Risk management report 107 Preparation of annual financial statements 107 Directors’ approval 107 Certificate by company secretary 108 Report of the independent auditor 109 Consolidated financial statements 119 Notes to the consolidated financial statements Shareholders’ information 186 Shareholders’ diary 186 Declaration of final dividend 144 187 Analysis of registered shareholders and company schemes 188 Definitions

190 Company information WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Introduction About this report

This integrated annual report provides a consolidated view of Tiger Brands Limited’s performance for the year ended 30 September 2016, and follows a similar report for the financial year to 30 September 2015. For further information, please contact the company secretary, Thiroshnee Naidoo T: +27 11 840 4000 E: [email protected]

Reporting principles and approach •• Managing sustainability and reputation – building on our By integrating financial, social and environmental performance, current strong brands and reputation while protecting our this report gives stakeholders a full understanding of our licence to operate through rigorous governance and business, prospects and strategy in the context of our operating engaging with stakeholders. environment. There were no changes to the boundary or any The annual financial statements have been prepared in measurement techniques in 2016. accordance with International Financial Reporting Standards (IFRS) and the South African Companies Act. Supplementary information This report forms part of a suite of reports to stakeholders. It In reporting on non-financial aspects, we are guided by: should be read with the reports on our website for a full •• King III report – the key principles have been applied and understanding of the group: material non-adherence explained •• Annual financial statements •• Listings Requirements of the JSE Limited •• Supplementary report •• Standards and codes governing specific areas, including •• GRI G4 Index the Department of Trade and Industry’s broad-based black •• King III application register. economic empowerment (BBBEE) codes of good practice Assurance •• Guiding principles of the International Integrated Reporting Our current combined assurance model is set out below: Committee (IIRC) framework (2013) – Tiger Brands reports

against strategic goals (currently under review) and, as Nature of appropriate, how these affect the six capitals proposed in Business process assurance Assurance provider In this report this framework (page 22 and 23) Annual financial External Ernst & Young Inc The scope of this audit is •• Principles and guidelines from the Global Reporting statements audit limited to information in the annual financial Initiative and the relevant sector supplement (collectively statements and does not GRI G4) in line with the core level of application. extend to any financial or operating indicators in the integrated annual Boundary and scope report. While this report is aimed primarily at providers of capital, Risk management Internal KPMG Services Risk management, page we believe financial and non-financial disclosure will interest and internal audit Proprietary 102. all stakeholder groups. The report covers the operations of controls Limited Audit committee report, page 87. Tiger Brands Limited (Tiger Brands) and its subsidiary and Environmental risk External Marsh Proprietary Pages 74 to 79. associate companies for the review period. The only assessments audit Limited significant change in our size, structure or ownership during Social External JSE Limited Tiger Brands ranks well the year was the disposal of Tiger Branded Consumer responsibility and audit National on the FTSE ESG ratings Goods plc (TBCG) (formerly Dangote Flour Mills). sustainability Business (part of the FTSE4Good Initiative (NBI) series), a multi- dimensional measure of In the operating environment section (pages 26 and 27) and environmental, social and governance risk report starting on page 102, we identify external threats, exposure and practice. opportunities and outcomes with a significant effect on our The group reports ability to create value. In elaborating on the strategic review annually on its carbon emissions under the currently under way (pages 20 and 21), we identify the global CDP. Refer to most material issues for the group and outline our response: website. •• Allocation of capital – identify categories with the best BBBEE External EmpowerLogic Transformation, page 63 to potential for growth, margin enhancement and requisite verification Proprietary Limited 64. return on investment in South Africa while refining the international strategy to be accretive to domestic Approval performance The audit committee and board acknowledge their joint responsibility for ensuring the integrity of the integrated •• People and talent – the current operating environment annual report. Appropriate judgement and rigour have been demands the right calibre, capability and capacity of applied in preparing this report and we conclude that it is human resources to stabilise the business in the short term presented in accordance with the IIRC framework. and grow in the long term. This in turn will require a leadership mix of strategic and entrepreneurial thinking, coupled with sound execution capabilities •• Optimum organisational structure – that leverages group Chairman Chairman functions to deliver optimal operating efficiency Board Audit committee

22 November 2016 WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited 1 Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo associates up 43% to Income from R861 million up 5% to R4,2 billion Operating income** Operating income** *

and operating margin of 9,9% Groceries operating income up 13% Turnover Turnover up 11% to Group volumes volumes up 2% R31,7 billion up 1%, with domestic up 1%, with domestic amid

income at

high inflation R2 billion in raw materials From continuing operations. Before impairment, abnormal items and IFRS 2 charges. Grains operating *

** Key performance indicators Key performance 2016 at a glance 2016 2016 ended 30 September for the year Tiger Brands Limited 2 Integrated annual report 2016 (2015: 1930cents) 2 007cents operations EPS fromcontinuing (2015: 1068cents) 2 034cents from totaloperations Earnings pershare(EPS) Financial Salient features recent yearswhileconsumerandshopperresearchprovides ofourcorebrandshasincreasedover investment insupport brands andcontinuousimprovementinitiatives.Marketing (FMCG). Oursuccessisunderpinnedbythestrengthofour consumergoods manufacturer andmarketerof fast-moving Tiger Brandspridesitselfonbeingaworld-class Africa. businessforourproductsthroughout a sizeableexports operations inWest, EastandCentralAfricahavebuilt In additiontoourcoreSouthAfricanbusiness,wealsohave acquisitions andbydevelopingitsbrands. categories andhasgrownovertheyearsthrough leadingmarketsharesacrossabroadrangeof it has and personalcarebabyproducts.InSouthAfrica, manufacturers anddistributesbrandsspanningfood,home Tiger BrandsisoneofAfrica’s largest,listedFMCG Group profile

(2015: 2091cents) 2 130cents operations HEPS fromcontinuing (2015: 1786cents) 2 127 from totaloperations Headline EPS(HEPS) cents • meaningful minorityinterestsinassociatecompanies: holds In additiontocontrolledoperations,Tiger Brands weoperate. in which comprehensive insightsintothecategoriesandmarkets • • • • • • • (fishing) South Africa:JSE-listedOceanaGroupLimited(42,1%) Chile: EmpresasCarozzí(24,4%)(FMCG) Nigeria: UACFoodsLimited(49,0%)(FMCG) (37,4%) (FMCG). Zimbabwe: ListedNationalFoodsHoldingsLimited Final dividend (2015: 950cents) 1 065centspershare Total dividend (2015: 611cents) 702 centspershare overview Business

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited 3 Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo Associates Equity accounted Association management) Exports) the FMCG sector by South the FMCG sector by South African Graduate Employer’s African Graduate Employer’s International (including Certified as a top employer in Voluntary participationVoluntary in CDP (global standard for disclosure (global standard on carbon emissions and water on carbon emissions

Consolidated Consumer Brands FTSE4Good series Market-leading brands Market-leading practice, and part of the Grains environmental, social and environmental, social and governance exposure and Well rated under FTSE ESG, a rated under Well multi-dimensional measure of multi-dimensional measure Our organisational structure Non-financial Tiger Brands Limited 4 Integrated annual report 2016 * Fromcontinuing operations. Our organisationalstructure Grains Operating segments Pasta –Fatti’s &Moni’s Rice –Tastic, AuntCaroline,Surprise, Cresta Easy, JungleEnergyCrunch,Crunchalots AceInstant,JungleOats,TaysteeMorvite, Wheat,Oatso Mabela, Sorghum Beverages&Breakfast–KingKorn, Milling andBaking–Albany, GoldenCloud,Ace Brands

Grains – 19%

Manufacturing 8% plants:

20 5%

% contributiontoturnover 4% of groupturnover*

41% 12%

52% 4 549 Workforce: Pasta Jungle Rice King Food Mill bake Maize continued Brands Airoma, PeacefulSleep,BioClassic Touch, DollyVarden, Status,LemonLite,Kair, Protein Feed, Camphor Cream,Doom,ElizabethAnne’s, Jeyes,Perfect Home, PersonalCareandBaby(HPCB) Mielie-Kip, Bokkie,cannedmeats Value AddedMeatProducts Energade, Hall’s, Rose’s, Monis,Game Toff-O-Luxe, XXX,Fizzpop,Damascus,Smoothies,Oros, JellyTots,Maynards, Allsorts, JungleEnergyBar, Wilsons, Snacks, TreatsandBeverages–MMMallows,Beacon, Mrs Ball’s, Hugo’s, Colmans Groceries –KOO,AllGold,Crosse&Blackwell,BlackCat, Consumer Brands

Consumer Brands–

16% 4%

Manufacturing

18% 10% plants: 19 of groupturnover*

42% 17%

% contributiontoturnover 35% (VAMP) –Enterprise,Renown, 4 729 Workforce: – Purity, Ingram’s HPCB Out ofhome V Beverages Snacks andtreats Groceries AMP overview Business

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Deli Foods(Nigeria)(100%)–Deli,Igloo,Nutribix West Africa Mambo, Matinal,Tartina, Tutoux, Chococroc Chococam (Cameroon)(74,7%)–Arina,BigGum,Kola, Central Africa East AfricanTigerBrandsIndustries(Ethiopia)(51%) Motions, TCB,Bloo,SoSoft Haco TigerBrands(Kenya)(51%)–Ace,BIC,Jeyes,Miadi, East Africa Benny, Davita Davita Trading(SouthAfrica)(Exports)–JollyJus, products intotherestof Africa thegroup’sTiger exports BrandsInternational branded (South Deciduous Fruit(Langeberg&AshtonFoods (includingExports) International – Peacock,Crown,Solar, Micky, Miracle,Florida

to turnover International (includingExports)–

9% 29% Manufacturing Africa) –GoldReef,Silverleaf plants: 6 of groupturnover*

17%

28%

18% 16% 3 329 Workforce: % contribution Exports West Africa Deciduous Fruit Central Africa East Africa (LAF)

Associates UAC Foods(Nigeria) National FoodsHoldings(Zimbabwe) Empresas Carozzí(Chile) Oceana Group(SouthAfrica) 35%

associated companies Associates –

9% 3% of groupprofitaftertax* % contributionincomefrom

26% 53% UAC foods National foods Carozzí Oceana Tiger Brands Limited 5 Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo Oceana Carozzí National foods UAC foods

53% 26% % contribution income from of group profit after tax* of group profit after

9% Associates – associated companies

35% Oceana Group (South Africa) Empresas Carozzí (Chile) National Foods Holdings (Zimbabwe) UAC Foods (Nigeria) Associates

(LAF)) East Africa Central Africa Deciduous Fruit West Africa Exports % contribution Workforce: 3 329

16%

18%

28% 17% of group turnover* 6 plants: Africa) – Gold Reef, Silverleaf Manufacturing

29%

9% International (including Exports) – to turnover Deli Foods (Nigeria) (100%) – Deli, Igloo, Nutribix – Peacock, Crown, Solar, Micky, Miracle, Florida Micky, – Peacock, Crown, Solar, Chococam (Cameroon) (74,7%) – Arina, Big Gum, Kola, Chococroc Tutoux, Mambo, Matinal, Tartina, Africa West Central Africa East Africa Haco Tiger Brands (Kenya) (51%) – Ace, BIC, Jeyes, Miadi, Motions, TCB, Bloo, SoSoft (51%)East African Tiger Brands Industries (Ethiopia) Deciduous Fruit (Langeberg & Ashton Foods (South branded Brands International exportsTiger the group’s products into the rest of Africa Davita Trading (South Africa) (Exports) – Jolly Jus, Benny, Davita International (including Exports) * From continuing operations. AMP Groceries Snacks and treats Beverages V Out of home HPCB – Purity, Ingram’s Ingram’s – Purity, Workforce: 4 729 – Enterprise, Renown, (VAMP)

35% % contribution to turnover

17% 42% of group turnover* 19 plants:

10%

18% Manufacturing

4% 16% Consumer Brands – Consumer Brands – KOO, All Gold, Crosse & Blackwell, Black Cat, Groceries – KOO, All Gold, Crosse & Blackwell, Black Colmans Hugo’s, Mrs Ball’s, Snacks, Treats and Beverages – MMMallows, Beacon, Wilsons, Jungle Energy Bar, Maynards, Allsorts, Jelly Tots, XXX, Fizzpop, Damascus, Smoothies, Oros, Toff-O-Luxe, Monis, Game Rose’s, Energade, Hall’s, Value Added Meat Products Mielie-Kip, Bokkie, canned meats Home, Personal Care and Baby (HPCB) Jeyes, Perfect Camphor Cream, Doom, Elizabeth Anne’s, Protein Feed, Status, Lemon Lite, Kair, Varden, Dolly Touch, Airoma, Peaceful Sleep, Bio Classic Brands Maize Mill bake King Food Rice Jungle Pasta Workforce: 4 549

52%

12% 41% of group turnover*

4% % contribution to turnover

5% 20 plants:

8% Manufacturing 19% Grains – Operating segments Operating Grains Brands Golden Cloud, Ace Milling and Baking – Albany, Sorghum Beverages & Breakfast – King Korn, Mabela, Wheat, Oatso Morvite, Oats, Taystee Ace Instant, Jungle Jungle Energy Crunch, Crunchalots Easy, Aunt Caroline, Surprise, Cresta Rice – Tastic, Moni’s & Pasta – Fatti’s Business overview Our footprint

South Africa Tiger Brands Limited Estimated population 55 million GDP US$313 billion Integrated annual report 2016 GDP per capita US$5 692 6 Kenya Haco Tiger Brands Estimated population 46 million GDP US$63,4 billion GDP per capita US$1 333 Tiger Brands Limited Tiger Nigeria Deli Foods Estimated population 182 million GDP US$481 billion GDP per capita US$2 640

Cameroon Chococam Estimated population 23 million GDP US$29 billion GDP per capita US$1 251

Ethiopia EATBI Estimated population 99 million GDP US$61,5 billion GDP per capita US$619 WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited 7 Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo • Zimbabwe • Zambia • Uganda • Tanzania • Sierra Leone • Malawi • Namibia (for export) Key brands

Ethiopia Kenya • Mozambique • Mali • Madagascar • Liberia • Ivory Coast • Guinea • Ghana Zimbabwe South Africa Cameroon Nigeria • Equatorial Guinea • DRC • Chile • Chad • Burkina Faso • Botswana • Home care On-shore manufacturing • Snacks and treats • Personal care • Condiments and ingredients • Beverages Core categories Export territories • Angola Tiger Brands Limited 8 Integrated annual report 2016

overview Business

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited 9 Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo

retained market in bread and leader Albany is the despite increased competition, has in its core markets of KwaZulu-Natal and it has Gauteng. Similarly, successfully maintained its premium pricing. The promise of quality, represented by freshness, is a promise the Albany brand has held for years through its superior offering. Albany has also taken the lead in satisfying consumer needs through innovation with products such as Best of Both (white and brown bread), Low GI, Ultima health range and now D’Lite, the indulgent range. its leading position

10 Tiger Brands Limited Integrated annual report 2016 with the fullscorecardonourwebsite. with the environmental, 3,3onsocialand3,6governance, Onthemeasuredpillars,wescored3,4on be done. the upperquintile(84%),butindicatesthatmoreneedsto Tiger Brandsin Our absolutescoreof3,4out5 positions as aframeworkforcorporateengagementandstewardship. designandmanagementagainstrelatedcriteria,or portfolio ausefultoolfor worldwide togivemarketparticipants ofcompanies series, evaluatestheESGriskandperformance the FTSEforallcompaniesincludedinFTSE4Goodindex risk. Thismulti-dimensionalmeasure,conductedonbehalfof (ESG)exposureand environmental, socialandgovernance During thereviewperiod,Tiger Brandswasassessedonits Managing ourbusinessagainstglobalbenchmarks company.of the these onbehalfofshareholders,whoarethetrueowners ofthecompanyanditsassets,manage as custodians Directors andmanagementunderstandtheirresponsibilities executive managementandallemployees. The boardsetsthetoneandstandards,whichfilterdownto behaviour. andethicalmoralbusiness corporate governance, Tiger Brandsiscommittedtothehigheststandards of Managing ourbusiness Tiger Brandsis public policy company on the “go-to” Audit issues Ignite, inspireandinfluencethe experienceof Tiger Brandsasanadmired corporatecitizen The Tiger Brands inspires and voice that protects Remuneration

influencing of shaping and key business changers Proactive Nominations Demonstrate business valueadd caring corporate experienced as a responsible, Tiger Brands valued and Board citizen business caseforaddingvalue,asshown below. to beinganadmiredcorporatecitizenandademonstrated aspirations oraimsthatareunderpinnedbyourcommitment Accordingly, bysevenkey ourstrategicpriorityissupported value fromconductingbusinesssustainably. we believewillhelpthegrouptobettercreateandcapture actionsthat andlong-term The outcomewasaseriesofshort asactionsrequiredtocloseany gaps. as well andsustainabilitymanagementshouldentail corporate affairs a cross-functionalperspectiveandinputonwhatworld-class fromacrossthegroup.Theseindividualsprovided 85 leaders 2015,buildingonafacilitateddialoguewith strategy in group’s corporate strategy. affairs We reviewedthis functionandisthereforebuiltintothe corporate affairs economic issues)ismanagedcentrallybyTiger Brands’ Sustainability (encompassingsocial,environmentaland Managing ourbusinesssustainably sustainability Risk and critical industry critical industry Tiger Brands’ Aligned and position on socialised matters transformation Social, ethics engagement programme stakeholder and Admired corporate Tiger Brands identity Respected Investment overview Business

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 11 Maya Makanjee (54) BA (fine arts), BCom, MBL (cum laude) Appointed: 1 August 2010 Board committee membership Chairman: Social, ethics and transformation Member: Nominations External appointments Non-executive director of Mpact, AIG South Africa and AIG Life South Africa, trustee of Nelson Mandela Foundation. Area of expertise and contribution stakeholder Africa, general management, governance, strategy, relations, reputation management, corporate communication, human resources, fast-moving consumer goods. Michael Ajukwu (60) BSc (finance), MBA Appointed: 31 March 2015 Board committee membership Member: Risk and sustainability External appointments Non-executive director of Intafact Beverages, a subsidiary of SABMiller in Nigeria, and Novotel: Port Harcourt, Nigeria, a member of Accor Hotels group. Area of expertise and contribution Stakeholder engagement, risk, general management, corporate West Africa. finance, .

Mark Bowman (50) BCom, MBA Appointed: 1 June 2012 External appointments Non-executive director of Dis-Chem. Area of expertise and contribution Africa, general management, fast-moving consumer Strategy, goods. Bheki Sibiya (59) Deputy chairman BAdmin, MBA Appointed: 14 March 2003 Board committee membership Member: Social, ethics and transformation External appointments Non-executive director of Famous Brands, chairman of Cape Africa and executive chairman of Smartvest Investments. Area of expertise and contribution Governance, stakeholder engagement, Africa Rob Nisbet (61) BCom, BAcc, CA(SA) Appointed: August 2010 Board committee membership Chairman: Audit investment Member: Risk and sustainability, Area of expertise and contribution Finance, mergers and acquisitions, risk, general management, strategy. André Parker (65) Chairman of the board MCom Appointed: 1 August 2007 Board committee membership Chairman: Nominations, investment Member: Remuneration External appointments Independent non-executive director of Distell, Empresas Carozzí and Standard Bank Group. Area of expertise and contribution business intelligence, sales and distribution, Africa. Strategy, Khotso Mokhele (61) BSc (agriculture), MSc (food science), PhD (microbiology) Appointed: 1 August 2007 Board committee membership Chairman: Risk and sustainability Member: Audit, investment External appointments Director of African Oxygen, Mapitso Consortium, Hans Merensky Holdings, Kenosi Investment Holdings. Special adviser and chancellor of the to the Minister of Science and Technology University of the Free State. Former chairman of ArcelorMittal South Africa, and Adcock Ingram. Impala Platinum Area of expertise and contribution General management, risk, auditing and accounting, governance. Santie Botha (52) BEcon (hons) Appointed: 18 August 2004 Board committee membership Chairman: Remuneration Member: Nominations External appointments and Liberty Holdings Group, Non-executive director of Telkom chairman of Famous Brands and Curro Holdings, Chancellor of Nelson Mandela Metropolitan University. Area of expertise and contribution business intelligence, governance, Marketing, sales, strategy, HR and remuneration. Independent non-executive directors Independent Our leadership 12 Tiger Brands Limited Integrated annual report 2016 Executive directors(andexecutivemanagementcommitteemembers) Independent non-executivedirectorscontinued Our leadership information andcommunicationtechnology.information General management,HRandremuneration,governance, andcontribution Areas ofexpertise Kapela Holdingsanditssubsidiaries. Director ofXonHoldings,BDOInc,MakhupProperties, appointments External transformation Member: Remuneration,nominations,social,ethicsand Board committeemembership Appointed: 1August2010 BCom, MBA,diplomainmarketingmanagement Makhup Nyama(59) consumer goods,Africa,developingmarkets. General management,strategyexecution,fast-moving andcontribution Areas ofexpertise Non-executive directorofOceanaGroup. appointments External andinvestment. transformation Audit, remuneration,nominations,social,ethicsand Board committees Appointed: 10May2016 Chief executiveofficer Lawrence MacDougall(59) continued

goods, corporatefinance,mergersandacquisitions. fast-movingconsumer Accounting andauditing,governance, andcontribution Areas ofexpertise Holdings (Zimbabwe). Non-executive directorofOceanaGroupandNationalFoods appointments External Audit, riskandsustainability, investment. Board committees July 2012) Appointed: July2015(memberofexecutivecommitteefrom FCA, CA(SA) Chief financialofficer Noel Doyle(50) telecommunications inAfrica. Accounting, fast-movingconsumergoodsand andcontribution Areas ofexpertise of EnactusSouthAfricaandSulfamHoldings. Group,AlbarakaBankandGoldFields,chairman Liberty Holdings, Independent non-executivedirectorofLiberty appointments External Member: Audit,remuneration,investment Board committeemembership Appointed: 13July2015 CA(SA), BCom,BCompt(hons),leadershipprogrammes Y unus Suleman(59) acquisitions. Accounting andauditing,corporatefinance,mergers andcontribution Areas ofexpertise Limited. Proprietary Non-executive directorofGroupRiskHoldings appointments External investment. Audit, riskandsustainability, remuneration,nominationsand Board committees 2000 Appointed: 16February CA(SA) Corporate financedirector Clive Vaux (65)

overview Business

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 13 Patrick Sithole (49) Group executive: supply chain BSc (chem eng) Appointed in August 2012 Experience years in FMCG, including as supply chain Twenty-seven vice-president for Unilever South Africa. Tswelo Kodisang (43) Tswelo Chief human resources (HR) officer HR management BCom, postgraduate diploma in labour law, Appointed in May 2014 Experience years in FMCG, including as global HR Twenty-one vice-president at Unilever.

Thiroshnee Naidoo (43) Group company secretary and legal adviser BProc, EDP Appointed in May 2015 Experience with over 16 years’ experience as corporate Admitted attorney, and particularly in counsel, mostly in the FMCG industry, African operations. Grattan Kirk (52) – Foods Business executive: Consumer Brands FCA, CA(SA) Appointed in July 2013 Experience Seventeen years in retail and 13 years at Deloitte, former chief executive officer of JD Group Limited and Connection Group Holdings and current board member of Consumer Goods Council of South Africa and consumer goods and services ombud. continued Marc Eyres (57) Group executive: customer BSocSci Appointed in April 2015 Experience Senior FMCG sales and customer marketing roles across Africa, south Asia and Australia, including customer vice- president for Unilever South Africa and India. Brenda Koornneef (64) Group executive: marketing and corporate strategy BCom Appointed in January 2011 Experience Thirty-one years in FMCG, including 17 years at Unilever. Neil Brimacombe (52) Business executive: International (including Exports, excluding Nigeria); Home, Personal Care and Baby BCom (hons), MBL Appointed in September 2000 Experience years in FMCG. Twenty-eight Bridgitte Backman held the position of group executive: corporate affairs and resigned on 30 September 2016. Mary-Jane Morifi has been appointed to this position effective 1 December 2016. management committee Executive 14 Tiger Brands Limited Integrated annual report 2016 partnerships. stakeholder groupsthroughrealbenefitsandconstructive those whoprovideourcapital,andtangiblevalueforall to ofstablefinancialreturns predictable valueintheform on astrongerfooting.Thiswillenablethegrouptocreate After achallengingfewyears,Tiger Brands isbeingplaced Chairman’s review will maintainour dividendpolicyof2xcover, basedon capabilities and efficiencies. To facilitate thisflexibility, we investing forfuturegrowthand enhancing itsmanufacturing The group’s capitalprogrammewillbegearedtowards wewishtoparticipate. in which core capabilities,andwillbefocused onkeycategories Ourgrowthstrategywillbeguidedbyour opportunities. butweremainopento acquisitions thatfitourportfolio, beeasyasthereisascantsupplyofpotential will not fits intoourriskparametersandisvalueenhancing.This acquisition willonlybeconsideredifitisattherightprice, include disciplinedbenchmarksforcapitalallocation.Any evaluate potentialacquisitionsagainststrictcriteria.These Given thegroup’s strongbalancesheet,wecontinueto afield. activity inAfricaandfurther recent experienceswhichwillfacilitatefuturecorporate continent. Valuable lessonshavebeengainedfromour on thebalanceof remain optimisticaboutopportunities growth lieoutsideourcoremarketsinSouthAfrica,andwe We forsustainable recognisethatadditionalopportunities to takeapproximately18months. architecture andpeopleskills.We expecttheentireprocess ofleadingbrands,asoundmanufacturing its portfolio to capitaliseonthegroup’s inherentstrengthswhichinclude view improvements,wearetakingalonger-term short-term for While weunderstandthatthereareopportunities is topositionTiger Brandsforsustainable,profitablegrowth. The boardhasgivenmanagementaclearmandate,which underreview.the year strategic review, aswellthegroup’s for performance with afullerunderstandingofthekeydriversbehind wehaveconcentratedonprovidingstakeholders report, and cleartargets,willbeoutlined.Inthisintegratedannual bykeymetrics afield,supported Africaandfurther in South the courseofFY17,plansforsustainablegrowth A comprehensivestrategyreviewisunderwayandduring competeinitsmarkets. to successfully thatwillpositionthegroup therequisiteturnaround effect Lawrence MacDougall,thenewmanagementteamwill period. Theboardisconfidentthatundertheleadershipof Tiger Brandsissuccessfullyemergingfromachallenging

detailed in the risk report. detailed intheriskreport. uncertainty. Ourresponsetotheseandothermaterialrisksis timeofpolitical competition andshiftingconsumertrendsin a growth inSouthAfrica.Thisisamaturemarketwithaggressive concentrate onchallengespresentedbylittletonoeconomic The Nigeriansalehasfreedupmanagementtimeto our remainingoperationsinthatcountry. of theperformance of thelocalcurrencycontinuetoaffect Nigeria. Ongoingelectricitydisruptionsandthedevaluation the groupislessexposedtoeconomicfluctuationsin 2016, DangoteFlourMills)inFebruary Goods plc(formerly After disposingofourinterestinTiger BrandedConsumer 27 oftheintegratedannualreport. detailonpages26and the operatingenvironmentinfurther fair shareoftheconstrainedspendinglevels.We discuss manufacturers andretailerstoaggressivelycompetefortheir increased thepressureonconsumerspending,forcingfood bytheseveredrought,have inflation, causedinpart In SouthAfrica,pooreconomicgrowthandhighfood Operating environment expenditure andthegroup’s othercorporateactivities. time tobasedontherequiredlevelsofcapital pershare.Thiswillbereviewedfrom headline earnings teams andtheongoing commitmentofouremployees. the blendoffresh insightandexperienceinour management market, whichhighlightsthestrength ofourbrands,aswell amidrisinginflationinahighly competitive was achieved pershare The 19%increaseintotalheadline earnings macro-economic headwindswhich arebeingexperienced. ofthe stabilityanddisciplineinthe face results reflect these indetailonpages30to37.I believe are discussed The group’s financialresultsfortheyearunderreview later inthisreport. natural andhumanresourcesmoreeffectively, assetout environmentalimpactandmanagingour reducing our behind itsbrands.We have madegoodprogressin operational focusandincreasedmarketinginvestment on pages28and29,reflectingthebenefitsofgreater maintain itsleadingpositionsinkeycategories,asnoted Against thisbackground,Tiger Brandshasdonewellto Performance overview Business

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 15 André Parker Chairman 22 November 2016 Appreciation partnersOn behalf of the board, I thank our strategic in Nigeria, Chile, Kenya, Cameroon, Ethiopia and Zimbabwe, whose valued input supports our sustained operations in these countries. The continued support of our customers and business partners is deeply appreciated, and we will continue to focus on meeting your needs. teams and all our people also thank our management We for their dedication and willingness to go beyond the expected. In return, the company will continue to work with you to assist in realising your full potential. On a personal note, I thank my fellow board members for their support over the past nine years, particularly during the recent period of management changes, and for their counsel that always enriched our deliberations. I have enjoyed working with you. Post-year-end, we appointed Emma Mashilwane and Kevin Post-year-end, we appointed Emma Mashilwane look forwardHedderwick to directors. We as non-executive their input in their respective fields of expertise, detailed in the notice of annual general meeting. Outlook Brands is being placed After a challenging few years, Tiger group to create on a stronger footing. This will enable the predictable value in the form returns of stable financial to value for all those who provide our capital, and tangible and constructive our stakeholder groups through real benefits partnerships. in transformingThe board is satisfied that solid progress with long-term company, Brands into a sustainable Tiger way. benefits for all our stakeholders, is under

After nine years on the board, of which four were served as chairman, I will retire at the annual general meeting. It has been a real privilege to serve on the board of such an iconic South African champion, and leave with the Brands is well placed on the road to knowledge that Tiger recovery and future success. I am pleased to announce that I will be succeeded as chairman by Dr Khotso Mokhele, a respected past chairman of listed South African entities, and currently chairman of our risk and sustainability committee and a member of the audit and investment committees, I am confident that Khotso brings the skills and knowledge that this role demands. I believe the new executive team is a strong combination of industry and institutional experience, and will benefit from the fresh insights brought to the team with the appointment of the new CEO. We are most grateful to experienced Tiger Brands Tiger are most grateful to experienced We executive, Noel Doyle, who ably stepped in as acting chief executive pending the appointment of the new CEO. During this period, Noel enjoyed the full support of both our management teams and the board. In August 2016, he was appointed chief financial officer of the company. After a rigorous five-month process, we were pleased toAfter a rigorous five-month process, we were Dougall as chiefannounce the appointment of Lawrence Mac executive officer Brands. With over 25 years’ FMCGTiger of Easternexperience across Africa, the Middle East, Europe and strategicand Russia, Lawrence brings sound commercial growth andacumen, a proven ability to lead extensive turnaround strategies and the leadership skills to develop strong integrated teams that deliver sustainable performance. A new executive management team is now in place A new executive management team is now officerfollowing the resignations of chief executive (CEO), financial Peter Matlare, in December 2015, and chief Funke Ighodaro, effective July 2016. On behalf of officer, contributions the board, I thank them both for their valuable to the group. Governance governance Brands is committed to standards that Tiger appropriate reflect best practice. Throughout the group, to these structures and controls ensure that compliance standards is maintained. We clearly understand both the risks and opportunities clearly We inequalities that exist in South presented by the income directly Brands invested period, Tiger Africa. In the review and indirectly R42 millionthrough various corporate social investment focused on food projects primarily security and nutrition education, benefiting in excess of 100 000 people. These achievements are outlined later in the report. Stagnant GDP growth rates in South Africa are Stagnant GDP growth faced by millions of compounding the challenges looking for social and economic marginalised citizens Brands Tiger food producer, upliftment. As a leading continues to play its part alongside government,non- governmental (NGOs) and other businesses. organisations Responsible citizenship Responsible 16 Tiger Brands Limited Integrated annual report 2016 of weakness to achieve top-tier financial performance. toachievetop-tierfinancial performance. of weakness ourstrengthsandcorrectareas weharness effectively The measureofoursuccess,however, willlieinhow • • • • • • • • • Global FMCGstrategicthemes market. in this dynamic hasalltheelementsrequiredtosucceed Tiger Brands manufacturing footprintandintegratedsupplychain, extensive Given itswinningbrands,diversifiedportfolio, traders. environment, withtheemergingstrengthofinformal convenience andhealthieroptionstheevolvingtrade beingtheconsumersearchforvalue, opportunities trendsandinherent themostimportant with arguably operating environmentinmoredetailonpages26and27, emerging trends.We discussthesalientfeaturesofour processesandstrategiestoprepareforthese portfolios, Around theworld,manufacturersarereviewingtheir spurred equallysignificantchangesintheretailsector. significant shiftsinconsumerandshoppertrendshave –onewherethechallengespresentedby FMCG industry I havejoinedTiger Brandsatanexcitingtimeintheglobal Building theTiger Brandsofthefuture weakness toachievetop-tierfinancialperformance. ourstrengthsandcorrectareasof effectively weharness market.Themeasureofsuccesswilllieinhow this dynamic hasalltheelementsrequiredtosucceedin Tiger Brands manufacturing footprintandintegratedsupplychain, extensive Given itswinningbrands,diversifiedportfolio, Chief executiveofficer’sreview Expanding flagshipbrands tonewmarkets Supply chainandothercostefficiencies Digital marketingmorepervasive Innovation isdrivinggrowth Focus onentireconsumerpyramid Changing tradeenvironment in emergingmarkets Growing competitionwithacquisitiveexpansion Changing consumerconsumptionpatterns Macro-economic andpoliticalchallenges

group overthenextfiveyears. the newfinancialyear, setting aclearframeworkforthe Weimproving the basics. expecttofinalisethisreviewin thinkingandourprogresstodateon we setout our progress againstcorporategoals.Onpages20and21, strategy andsettingthetargetsthatwillmeasureour This commitmentunderpinstheprocessofreviewingour consumers throughfocusandaccountability. that willrecovergroundwithbothourcustomersand we cancreateawinningteamandcost-consciousculture these discussionshavefuelledacommongoal–together, inourgroup.Theinsightsfrom experience andexpertise levelthathighlightedthedepthof people atevery In recentmonths,Ihavehadmanyfrankconversationswith thorough reviewofourstrategyandunderlyingcapabilities. business byfocusingonprofitablebrands.Thefirststepisa I ammandatedbytheboardtocontinuegrowour teamworkingtowardsaclearstrategy.and expert requiresthefullcommitmentofanexperienced participants increasing marketshareagainstwell-fundedandestablished where We operate inanintenselycompetitiveindustry capacity forgrowthandimprove efficiencies. R945millionincapitalexpendituretobuild a further We ourcorebrandsand investedR866millionsupporting increased 19%to2127centspershare. persharefromtotaloperations(including TBCG) earnings increased 2%to2130centspersharewhileheadline persharefromcontinuingoperations 5%. Headlineearnings itemsandIFRS 2charges)by abnormal (before impairments, increasedby11%andoperatingincome group turnover Basedoncontinuingoperations, currency movements. droughtinSouthAfricaandsizeable the prolonged environment andsignificantinputcostpressuredrivenby trading The groupproducedsolidresults,giventhedifficult Our brands overview Business

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 17 Outlook financial year on a stronger Brands enters the new Tiger in 2016 as well footing, energised by the progress made understand that as the new thinking in our group. While we trading conditions are likely to remain difficult, we are excited about the many opportunities for profitable growth in our core markets. Supported by a strong balance sheet, capable and committed teams, as well as the strength and leading positions of our brands, we are focused on establishing a solid foundation for future growth based on an appropriate business model and cost structure. Appreciation I greatly appreciate the welcome and support I have Brands teams. I believe the received from the Tiger collective commitment encountered across our group bodes well for our sustained growth and I thank every member of our many teams for their contribution. I also thank our loyal service providers, suppliers and customers for their continued support. Lawrence Mac Dougall Chief executive officer 22 November 2016 Environmental commitments three-yearThe review period was the last year of a rolling programme focused on reducing our key environmental and newimpacts. This targeted approach proved constructive a concertedtargets have been set. Understanding that also strive to buildapproach will have a broader impact, we empoweredon a culture where our supply chain is engaged, and supported sustainability in improving environmental for morepractices. Please refer to pages 74 to 79 information.

Group talent processes were entrenched to ensure a solid pipeline of skills on page 56. Our remuneration structures were reviewed and adjusted where necessary to retain the skills on which our business depends on pages 94 and 97. Regrettably, four colleagues were killed in armed robbery Regrettably, attempts, despite the focus on route to market security. Another colleague was accidentally electrocuted in our our sincere condolences extend Ethiopian operation. We to their families and reiterate our commitment to zero harm. Reflecting our focus on eliminating recurring behaviour-based incidents, the group reduced lost-time injuries by 13% in FY16 Tiger Brands again achieved Top Employer status with a Top Brands again achieved Tiger among the top better year-on-year score, and was ranked by three preferred employers in the FMCG sector graduates We continue to invest in preparing our teams to win in this We to have challenging macro-environment and are proud retained our level 3 BBBEE rating in 2016 • • • • Our communities 1% of net profit after tax) in invested R23 million (over We socio-economic development initiatives. In addition, our Brands breakfast programme, facilitated by the Tiger Foundation, ensured 60 000 school children per day did In just five years, this translates not start their lessons hungry. to over 40 million meals served. Our initiatives are detailed on page 66. • • • • Our people People are the heart which makes it of our organisation, their full imperative to retain their skills while developing potential: Associates made significant contributions to our earnings,Associates made significant contributions driven by with a 43% increase in income to R861 million Oceana and Empresas Carozzí. Results from our International mixed. division were Operating results were affected macro-economic issues, by including currency devaluations and foreign-exchange shortages. a solid performance, Cameroon delivered and continued to record profitable growth. however, In the Consumer Brands division, the Groceries business In the Consumer Brands margin and market leadership in maintained its operating Home, Personal Care and Baby core categories. The strong performancebusiness delivered another excellent with margins. growth and improved we maintained our leadership in the In our Grains division, operating income was marginally bread market, although pricing decisions. Our pasta and constrained by responsible strong results. oats businesses delivered 18 Tiger Brands Limited Integrated annual report 2016

overview Business

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited

Purity is South Africa’s leading baby homogenised nutrition brand and has successfully 19

maintained market share of 2016 Integrated annual report around 90% in the baby nutrition market for the past decade. As a result, over 115 000 South African mothers follow the Purity Promise page on Facebook. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 20 Tiger Brands Limited Integrated annual report 2016 Strategic review • • • • strategy willseektoachieve: corporate achieve ourvision.Themedium-term benchmarks todevelopasustainablestrategy targetsandexternal years inthecontextofinternal assessed thecompany’s overthelastfive performance option inthisworld.Assuch,themanagementteam We fullyunderstandthat“business asusual”isnotan • • • • over thenextfiveyears,providinginsightsinto: Tiger Brands customers andcompetitors)thatwillaffect supply chain,legalandregulatory, environmental, economic, socialandconsumer, technologyand comprehensive andregularscanoftrends(political, Our strategicreviewisunderpinnedbya • • • • • way wedobusiness: Several factorsaredrivingthisneedtoreassessthe insight. strategiesunderpinnedbymarket effective anticipating andmanagingtherisksthrough presentedtodaywhile on theopportunities tomorrow willbethoseabletoquicklycapitalise value chain–thesuccessfulcompaniesof elementofthe approachtoevery an innovative undergoing changeonascalethatdemands industry. Globally, theFMCGmarketis Tiger Brandsoperatesinarapidlychanging • • • • • • • • • • • • • A greatplacetowork. capacity togrow A capableandcost-consciousculture withthe performance strategyaccretivetodomestic An international sustainable profitablegrowth A rejuvenateddomesticbusinessthatdelivers Implications forTiger Brands. thatcanbeleveraged Opportunities Key threats environment ouroperating Significant trendsaffecting nutrition, valueandconveniencethroughinnovation. Meeting theneedsoflow-incomeconsumers–better non-traditional channels retailers, retailconsolidationandgrowth,stronger Changing tradeenvironment–relationshipwith brands byretailers companies, plusthedevelopmentofprivatelabel local competitorsandexpandingmultinational Growing competition–focusedandentrepreneurial and wellness,value,conveniencesustainability –health Consumer demandtrendsandopportunities economies amidlowtonoeconomicgrowth Global macro-economicchallenges–constrained

in emerging markets in emerging branded, FMCGcompany To bethemostadmired, VISION 6 5 4 3 2 1 thesedecisions. The stepsbelowwillinform STRATEGIC THRUSTS

Where topla

GROWTH, WE FIRSTNEEDTODECIDE: GROWTH, WE TO DRIVEDEMANDTHAT GENERATES

d companies toenhancegrowthandearnings Clear investmentchoicesinselectedassociate geographies throughinnovationand/oracquisitions innewcategories/ growthopportunities Seek further the valuechain across Review operatingmodelandunlockefficiencies core categoriesandkeyselectedgeographies Reignite growthintherestofAfrica,focusingonour positions enhance numberoneandtwocategory investment inbrandbuildingandinnovationto anddrivetargeted Define thecorebrandportfolio growth categoriestodrivetopandbottom-line withfocusedinvestmentinourcore Optimal portfolio d

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overview

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WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

o E

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a n d s The aim of the reviewed strategy is to: •• Stabilise the business in the short term •• Re-establish a sound foundation for future profitable growth •• Fundamentally restructure and re-engineer towards a competitive cost base and provide savings for reinvestment •• Establish a competitive organisational structure fit for growth over the medium and long term •• Re-establish a strong and profitable growth trend in the rest of Africa.

We have adopted a phased approach to delivering an executable strategy and during the course of FY17, the plans for sustainable A growth in South Africa and further afield, dd Tiger Brands Limited ing v D alue ES supported by key metrics and clear targets, to IR life ED will be outlined. fo r a O ll U PHASE 1 – Performance assessment th T e C Completed s ta O ke M h o E ld PHASE 2 – Set foundation for future e 21 r s Growth (FY17)

o Integrated annual report 2016 Integrated annual report f T i g e r PHASE 3 – Plan to action

B r a n d

Key enablers

A d d i 1 Competitive route to market capability and n g winning customer strategies v a 2 Strong portfolio of leading brands and enhanced l u innovation capability e D to E 3 Competitive supply chain delivering growth, S li I enhanced margin and cash fe R OUR VALUES E 4 Integrated architecture and enabling IT capability fo D r 5 Ensured sustainability through competitive BBBEE •• Our consumers are our business a O ll U position, and strong governance and risk t •• We act with integrity in everything h T management e C st O 6 Efficient operating model and structure to deliver ak M we do eh E competitive cost base o • ld 7 Motivated, high-performance culture; competitive • We have a passion for excellence ers of competencies in key areas; and strong talent • Tig • We value our people and treat er B pool to support growth rands them with dignity •• We continue to reinvest in our society WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 22 Tiger Brands Limited Integrated annual report 2016 replenish ourcapitalsinthemostappropriate way. trade-offswhileensuring we we balancethenecessary business, whateachcapitalcontributesto our By understanding frameworktobettersuitourbusinessmodel. reporting We haveadjustedthesix capitalsintheIIRC’s integrated Creating avirtuousgrowthcycle

Effective supply chain responsible Profitable, growth culture basedonourcorevalues. consumer-focused, high-performance their well-beingandskills,strivingfora In FY16,weinvestedR25millionin people underpinourprogress Human capital– manufacturing Sourcing and Consumer insight Collaboration Innovation R&D overview Business

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Financial capital – profitable growth

We aim to deliver consistent value for stakeholders wherever we operate, firstly by remaining a profitable company that rewards shareholders appropriately.

Total dividend increased by 12% to 1 065 cents per share. Tiger Brands Limited

Social and relationship capital – adding real value

We add value to society through various initiatives – 53,3% of value created is distributed to a number of stakeholders annually. 23 Integrated annual report 2016 Integrated annual report

Intellectual capital – consistent investment behind key brands to drive profitable growth

In FY16, we invested R866 million in research and consumer marketing for deep insight into the changing needs of our consumers. We use our R&D capability and networks to deliver the innovation that supports the equity of our brands. Innovation accounted for 4,5% of turnover in FY16.

Manufactured capital – improved efficiency and flexibility

We continuously invest ahead of depreciation to maintain and enhance 45 manufacturing sites across sub-Saharan Africa. We will continue to invest to further improve our facilities and enhance flexibility.

Natural capital – focused on responsible growth

While our supply chain draws on most of our capitals, its key impact is on the natural capital. Our procurement strategies focus on the long-term sustainability of our processes. Over the past three years, we have focused on reducing this impact through specific initiatives. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 24 Tiger Brands Limited Integrated annual report 2016 stakeholder relationsfunctionprovidesstrategicleadership stakeholders invariouscategories,whilethegroup analysing theneeds,interestsandexpectationsof managementfunctionsassume responsibilityfor Different values, andtoensuretheconsistencyofourmessages. toensureweupholdourprinciplesand core the platform, regardlessof parties, influences andtransactswithexternal organisation onhowitbehaves,interacts,collaborates, Our approachtostakeholderrelationsdirectsthe parties. of ourrelationshipswithallinterestedandaffected strategic functionthatcentresonthequalityandconsistency Stakeholder relationsatTiger Brandsis,therefore,a • • • sustained growththrough: We ourstrategicchoicesfor developkeyinsightstoinform to operate. media andcommunities–allholdastakeinourlicence groups,the environment –law-makers,regulators,industry As such,stakeholdersinourbroadersocio-economic from infuture. consumer andtalentbasethatwecansustainablydraw – toprovideaconduciveoperatingenvironment,and society –notonlystakeholdersinourimmediatevaluechain Additionally, weunderstandthatdependonthebroader ofthechainthatcreatesvalue. are allpart Shareholders, employees,consumers,customersandsuppliers with keystakeholdersareessentialtoitssustainability. The Tiger Brandsgrouprecognisesthatpositive relationships Our keyrelationships • • • in ourimmediatevaluechain. Establishing relationshipswithstakeholdersbeyondthose stakeholders Considering theinterestsandexpectationsofmaterial socio-economic development A deepunderstandingofrequirementsforsustainable

• communications planthat: In 2016,weimplementedanintegratedstakeholder stakeholder relations istrust, good reputation and legitimacy. and direction.Ultimately, goalofmanaging thegovernance • • • • timelines forresponse,resolutionandfeedback. systems toaddresstheseissuesarewellmanagedwithstrict group throughthewebsite(www.tigerbrands.com). Internal stakeholder withacomplaintorissuecanapproachthe and consumersareinplaceusedeffectively. Any resolution mechanismsforemployees,investors,themedia responding toissuesraisedbystakeholders.Dispute capacityin media protocoldevelopedtobolsterinternal Our approachtomanagingissueswasrevisedanda • • • • • • • build oursocialandrelationshipcapital(reputation) to play indrivingperception,andusestheseplatforms Acknowledges thecriticalrolesmediaandsocial and strategy alignment withthegroup’s emerging purpose,vision communicationtoenhanceemployee Drives internal Brands asagroup Proactively managesstakeholderperceptionsofTiger platforms onallcommunication content andsharinginformation Adheres tostandardsandprocessesfordeveloping reputational risks toassess emanating fromcommunicationplatforms Systematically gathersandanalysesinformation appropriately withanyrequiredcrisiscommunication. responses andstandardoperatingprocedurestodeal processandmechanismstodevelopappropriate Offers

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Key factors driving our strategy

Key issues in 2016 Our response Read more Customers (retailers/wholesalers) •• Increased competition amid muted •• Joint business planning initiatives and growth workshops with For more information consumer demand customers to stimulate shopper offtake and repeat purchase see pages 69 to 73 •• Driving in-store activation, on-shelf availability and general trade distribution to improve visibility and availability • For more information • Increasing use of category management data to support please see innovation and new mobile platforms to develop insights and www.tigerbrands.com improve efficiencies at store level Employees • • • Performance and rewards • In-depth engagement with employees to co-create solutions For more information •• Talent and career development to challenges see pages 56 to 59 •• Teamwork and collaboration •• Benchmarking rewards and benefits to ensure market •• Internal communications competitiveness; obtaining employee commitment through For more information appropriate performance incentives please see www.tigerbrands.com

Consumers

• • Tiger Brands Limited • Product affordability • Mitigate inflationary pressures through cost-saving initiatives For more information •• Value proposition and operational efficiencies see pages 69 to 73 •• Commitment and compliance to issues •• Proactive communication on complying to regulation

regulated by government (eg labelling, For more information salt and sugar) please see www.tigerbrands.com

Community • • • Food security and related nutritional • Maintain strong partnerships with governments and For more information issues developmental agencies to support initiatives that promote see pages 65 to 68 25 nutritional health and education, and contribute to the development of local communities and eradication of poverty For more information 2016 Integrated annual report please see www.tigerbrands.com

Investors •• Strategic direction post-appointment •• Conducted thorough assessment of business • of new leadership and recent disposals • Identified gaps and opportunities For more information •• Outcome of strategic review •• Initiatives to strengthen the business and create a solid platform please see •• Stabilising the business for growth www.tigerbrands.com •• Earnings growth and return on capital •• Clear communication plan Government •• Regulations on sodium reduction; •• Complying with all relevant regulation; active participation For more information proposed tax on sugar-sweetened in dialogue before promulgation of legislation see pages 64, 72 and 73 beverages •• Keeping abreast of emerging issues • • • Promoting awareness of nutrition • active partnership to promote agri-sector development and For more information education greater inclusion of smallholder farmers please see •• Food security www.tigerbrands.com •• Growth and development of local agricultural sector Media •• Access to management and information •• Specific website for media enquiries •• •• For more information Swift response to queries Enhanced one-on-one media engagements please see •• Fair treatment of consumers •• Respond to all enquiries within specified period www.tigerbrands.com •• Respond to media on all consumer-related enquiries Suppliers •• Impact of currency volatility on input •• Partnering with suppliers to drive innovation and continuous costs improvement •• Crop shortages due to persistent •• Focused savings programme that interrogates all costs to dilute For more information drought the impact of currency-related cost increases please see page 64 •• Continued support to develop domestic farmers •• Flexible global sourcing strategies to augment domestic crop shortages WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 26 Tiger Brands Limited Integrated annual report 2016 in thismarkethavealargebearingonourperformance. its operatingincomegeneratedinSouthAfrica,conditions With over80%ofthegroup’s andalmost90%of turnover South Africa informal outlets. chainsto market, rangingfromnationalsupermarket supplyaR474billionfood unlisted foodproducersinturn of theR147billionJSEFoodProducersIndex.Listedand Tiger Brandsisthelargestconstituentbymarket capitalisation Our operatingenvironment Source: Trade Intelligence:Retailtrends2016 Source: www.tradingeconomics.com|StatisticsSouthAfricaJPMorgan South AfricaGDPannualgrowthrate

SA foodmarket

8% 18% (0,5) 0,0 0,5 1,0 1,5 2,0 2,5 3,0 (%)

Jul 13 R474 billion* 6%

Jan 14

Jul 14 68%

Jan- 15 *Trade Intelligenceestimate Direct fromsupplier route tomarket Independent outletsand route tomarket Formal outletsand superettes Major andbranded

Jul 15

Jan 16

Jul 16

2017F worst droughtinacentury. debt andfoodinflationspirallingupamidSouthAfrica’s anindicatorofrisingunemployment,highhousehold turn These poorforecastsreflectweakprivateconsumption,in 2016ataround0,4%andjust1%forFY17. for calendar period,withGDPgrowthforecasts most ofthereporting Economic growthinSouthAfricawasbarelypositivefor reducing demand. reducing demand. pricing, increasingthepressure onconsumersand pressureoninputcostsand majorinflationary exerted depreciation. Thecurrencyvolatilityofrecentyearshas developments couldeasilysparkanewroundof toquantify andanyadverse which remainsdifficult todate.Thecaveatthisremainspoliticalrisk in 2016 subsequently appreciatedover16%againsttheUSdollar ofourfinancialyear,including atthestart therand In contrasttosignificantdepreciationinrecentyears, restore businessconfidencetomoreacceptablelevels. resolutionsofsomemajorpoliticalissuesto satisfactory Any improvementintheseforecastswilldependon Source: Bloomberg by severedrought South Africanfoodin ationimpacted 1 000 2 000 3 000 4 000 5 000 6 000 R/t 0 SA whitemaize(R/t) SA foodandnon-alcoholbeveragesyear-on-year(%) 2009 2010 2011 2012 2013 2014 2015 2016 0 5 10 15 20 %

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Key factors driving our strategy

• Currency volatility exerts in ationary pressure • Skills shortages make talent management critical for on input costs business success • US$/R • Streamlined value chain will be imperative to manage 18 efficiencies and costs in a competitive environment 15 •• Shifting route to market (new markets, formats, channels

12 and categories such as liquor stores and pharmacies) critical to create accessibility for urban and rural 9 consumers 6 •• Extended distribution footprint to service growing number 3 of general (informal) trade stores. 0 2012 2014 2016 Source: Factset External factors •• Domestic economic and infrastructure constraints, as well Collectively, these factors continue to affect consumer as political uncertainty, suppress South African GDP confidence and constrain household consumption levels. growth Consequently, consumers are adjusting their consumption •• Moderate growth in developed economies and slowing habits, favouring lower-priced products where necessary growth in emerging market economies, particularly China, continue to affect Africa.

and deferring purchases of discretionary items. Tiger Brands Limited

Rest of Africa Household consumption expenditure growth In sub-Saharan Africa, economic growth has weakened (%) 2,5 markedly. Low commodity prices continue to weigh heavily on public finances, not just in oil-dependent states like 2,0 Nigeria, but also in more diversified economies like Ghana. 1,5 In addition, widespread drought is significantly affecting 1,0 agricultural productivity and local food markets. 27 0,5

0,0 Fundamentally, however, the region already enjoys strong 2016 Integrated annual report (0.5) mining, agriculture and oil production. A growing pool of (1,0) young and well-educated people is poised to enter the (1,5) workplace. Investments in infrastructure, and the wider

(2,0) adoption of new technologies such as mobile and internet, could accelerate the growth of a consumer and service-led Jan 14 Jan 15 Jan 16 Feb 14 Apr 14 Feb 15 Feb 16 Apr 15 Mar 14 Mar 15 economy.

Key trends over the next five years Admittedly, the region faces significant challenges. Even Demand as democracy spreads across its constituent countries, there • • Strong population growth in Africa – with the highest are still logistical bottlenecks; poor governance; threats of global proportion of people under 30, future consumers increased terrorism and social unrest caused by rising urban looking for a modern shopping experience. Africa has unemployment; vulnerability to commodity price shocks and one of the fastest-growing middle-class segments in the economic downturns in key trading partners, indicating risk world to the region’s transformation. •• Rapid urbanisation continues, with increased income changing consumer patterns despite the challenges Based on our continual market scans and consensus presented by urbanisation insight, we believe the outlook remains encouraging for • • While slowing household expenditure is forecast, Africa to gather momentum and create greater opportunities economic pressure supports the growth of value segments for its rapidly growing population. This, in turn, creates and highlights the importance of affordable quality. opportunities for retailers and manufacturers such as Tiger Brands. Supply trends •• Food markets reflect volatile commodity prices and rising input costs WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 28 Tiger Brands Limited Integrated annual report 2016 Our brandsalsofeaturedprominentlyintheircategories: consecutive year. 2016/2017 (page29). KOOwasalsovotednumberoneintheAskAfrikaIconBrandsSurvey first placeasSouthAfrica’s favouritebrand,while Tastic wasvotedthenumberoneessentialfoodbrand,bothforsecond This wasagainreinforcedinthe2016SundayTimesTop BrandsAwards. IntheprestigiousGrandPrixcategory, KOOtook brands overtheyears. ofleading In linewithourstrategytohavethefirstorsecondbrandinchosencategories,webuiltasolidportfolio The powerofleadingbrands Our competitiveadvantagesandmarketposition TINNED FOODS PERSONAL CARE CHILLED PROCESSEDMEATS(NEWCATEGORY) CEREALS (NEWCATEGORY) FRUIT JUICES ESSENTIAL FOODS No 1:Enterprise No 5:Ingram’s No 3:Jungle No 1:KOO No 1:Tastic No 4:Oros Oats No 3:AllGold No 4:Renown No 6:Morvite No 2:Albany

No 6:Halls No 5:Enterprise No 7:Mielie-Kip No 5:Fatti’s & No 9:Jungle Oatso Easy Moni’s No 7:Hugo’s No 8:Bokkie No 7:Ace No 8:Aunt Caroline

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Key factors driving our strategy 2016 awards and accolades

Ask Afrika Icon Brands 2016/2017

This annual benchmark survey identifies the brands most loved and used by South African consumers. Tiger Brands again featured prominently, winning numerous categories. Six of our brands were awarded prestigious icon brand status, while KOO was voted number one favourite brand overall. Number one favourite brand

Tinned/canned beans* Tinned fruit*

Tinned vegetables* Tiger Brands Limited Spreads: Non-alcoholic drinks: Spreads: jams energy sport drinks* peanut butter*

29 Integrated annual report 2016 Integrated annual report Condiments/sauces: Pasta* Vienna meats* tomato sauce* Polony meat Condiments/sauces: Russians meat salad dressing category Cook-in/prepared sauces and marinades Spreads: marmalade Chilli/hot sauces * Icon brand and category winner

Category winner

Category winner: Category winner: Category winner: Category winner: bread Condiments/sauces: Condiments/sauces: rice chutney mayonnaise

Category winner: Category winner: Category winner: Cake mixes: Sweets: Household including muffins/scones/ cereal bars products: cupcakes/breads drain cleaners WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 30 Tiger Brands Limited Integrated annual report 2016 * Beforeimpairment, abnormalitemsandIFRS2charges. primarily byOceanaGroupand Chile-basedEmpresas Income fromassociatesrose43% toR861million,driven pricing toprotectourbrandfranchises. declined to13,4%from14,1%influencedbyresponsible The overalloperatingmarginbeforeIFRS2charges fromGroceries, BeveragesandHomeCare. performances strong strengthofourbrands,withparticularly reflects the ofthebalance ofthedomesticportfolio performance related costincreasesinmaizeandsorghum,the division’s operatingincome,drivenprimarilybydrought- R4,1 billion).DespiteamarginaldeclineintheGrains chargesincreasedby5%toR4,2billion(2015: IFRS 2 (2015: R28,7billion),whileoperatingincomebefore continuing operationsincreasingby11%toR31,7billion from domesticmarket,withtotalgroupturnover in the drovestrongvolumegrowth,particularly resilient brands Notwithstanding achallengingoperatingenvironment,our Income statement (www.tigerbrands.com). should bereadtogetherwiththeannualfinancialstatements The followingreviewofthegroup’s financialperformance Analysis offinancialperformance this report. is discussedinmoredetailonpages26and27of Grains andGroceriesdivisions.Theoperatingenvironment mostnotablyinthe was feltacrossthedomesticportfolio, high inflationinrawmaterialinputcosts.Theimpactofthis prolonged droughtandsignificantcurrencyvolatilityledto share ofconstrainedconsumerspending.Inaddition,the retailers andmanufacturerscontinuedtocompetefortheir remained weak,resultingincompetitionintensifyingas environment.Consumerconfidence unpredictable external The yearunderreviewwascharacterisedbyan Introduction was up5%toR4,2billion. operations up11%toR31,7billionwhileoperatingincome* fromcontinuing domestic marketwithtotalgroupturnover inthe brands drovestrongvolumegrowth,particularly Despite achallengingoperatingenvironment,ourresilient Chief financialofficer’sreview

19% to 2 127 cents(2015:1786cents). 19% to2 127 including discontinuedoperations (TBCG),increasedby 068cents).Total(2015: 1 pershare, headlineearnings increased90%to2034cents operations (TBCG), Total pershare,includingdiscontinued earnings cents(2015:2091cents). to 2 130 persharefromcontinuingoperationsrose 2% earnings 2007cents(2015:1930cents),whileheadline 4% to persharefromcontinuingoperationsincreased Earnings restated accordingly. operation intheseresults,andcomparativeinformation Consequently, TBCGhasbeentreatedasadiscontinued 2016. from 25February was disposedofwitheffect The group’s DangoteFlourMills, interestinTBCG, formerly 4% toR3,3billion. fromcontinuingoperationsrisingby attributable earnings associate income)of30,9%(2015:25,6%)resultedin itemsand taxrate(beforeabnormal A highereffective the PersonalCarebusiness. related primarilytogoodwillandotherintangibleassetsin charges.Theseimpairments for R335millioninimpairment 10% toR4,5billion(2015:R4,1billion),afteraccounting Profit beforetaxfromcontinuingoperationsincreasedby in thecurrentyear. domesticinterestrates bytheimpactof higher offset partly of theexitfromTiger BrandsConsumerGoodsplc(TBCG), the settlementofanaira-denominatedloanassumedaspart foreignexchangegainofR153million,following a once-off foreign gainofR121million(2015:R21million),including The 13%reductioninnetfinancingcostsresultedfroma disposals. asset profits ofR117million(2015:R3million)aftercertain Carozzí. Thecontributionfromassociatesincludescapital

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 31 28 26 18* 0,8 2015 3 585 (3 788) 13 31 14 0,4 2016* 4 233 (2 028) Statement of financial position Key ratios Cash generated from operations (Rm) Net (debt)/cash (Rm) Net debt/equity (%) Net debt/EBITDA (x) Return on net assets (%) Net interest cover (times) Brands’ net debt decreased by R1,8 billion, benefiting Tiger largely from the disposal of TBCG. The net debt to EBITDA ratio decreased to 0,4 times (2015: 0,8 times), well within of the covenant limit of 2,5 times. The strength the group’s balance sheet allows the company to take advantage of opportunities that may arise. International (including Exports) turnover rose 7% to R5,4 billion (2015: R5,0 billion), Total to R547 million while operating income increased by 19% widened from (2015: R462 million). The operating margin by 5% as a 9,2% to 10,2%. Overall volumes decreased by the result of the significantly lower volumes recorded Exports division. Exports’ performance was impacted by shortagescurrency devaluations and foreign exchange in major export Mozambique, regions including Nigeria, Zimbabwe and Zambia. This in turn affected the ability of and replenish key customers to stay within their credit limits stocks. In addition, import permit regulations imposed in Zimbabwe significantly impacted performance in the fourth quarter. pages 35 and Detailed segmental disclosures appear on to 51. 36 and operational reviews on pages 40

Manufacturing ef ciencies IT platform Financial shared service centre Procurement saving review FY16 2 127

Financial Financial 36

42 Total HEPS up 19% Total FY15 1 786 0 500 (cents)

211 2 500 2 000 1 500 1 000 Continuous improvement programme generated Continuous improvement programme cost savings of R380 million in FY16 (Rm) Headline earnings per share Headline earnings Segmental performance Domestic operations rose by 11%, driven by volume growth of 2% and Turnover operating income grew at price inflation of 9%. However, a slower in rate of 3% to R3,7 billion. Strong growth Beverages operating income was recorded by Groceries, in the Grains and Home Care, with a marginal decline performance, driven largely by a significant division’s business. Ongoing reduction in the profitability of the maize successful, with cost management programmes have proven these However, savings of R380 million during the year. were insufficientsavings, coupled with higher realisations, to counter inflationary pressures in soft commodities. the overall domestic operating margin Consequently, declined from 15,2% to 14,0%. * From continuing operations Chief financial officer’s review continued

Cash flow and capital expenditure Outlook Cash generated from operations increased 18% to The difficult trading environment is expected to persist with R4,2 billion (2015: R3,6 billion). The improvement was inflation levels remaining high. The anticipated benefit of primarily due to the disposal of TBCG in February 2016. lower soft commodity prices is only likely to be felt in the Capital expenditure during the year was R945 million latter part of the ensuing financial year. (2015: R882 million). Net debt for the group was reduced by R1,8 billion also benefiting largely from the Given the solid performance in 2016, Tiger Brands is disposal of TBCG. well positioned to counter potential headwinds. The focus will be on optimising margins without sacrificing market Capital expenditure has consistently been ahead of share. Our leading positions will be supported with depreciation and future investment will target growth, accretive innovation, while sustaining the strength of our efficiency and flexibility. An amount of R1,9 billion has brands through targeted investment. As input cost inflation been budgeted for FY17. is expected to persist, cost-saving initiatives will receive renewed and more assertive focus to drive profitability. Capital expenditure consistently The creation of a high-performance culture will underpin ahead of depreciation our efforts.

(Rm) Acknowledgements 1 500 1,69 1,45 1,33 Thank you to our local and international shareholders for 983 your continued investment in our group and to members of 1 000 882 945 the broader investment community for their interest and Integrated annual report 2016 679 662 559 engagement. I also thank my colleagues in the finance 500 department who constantly strive to ensure the group 32 achieves best practice standards in reporting and 0 FY14 FY15 FY16 disclosure.

● Capex ● Depreciation Capex/depreciation

Final dividend

Tiger Brands Limited Tiger Noel Doyle The company has declared a final dividend of 702 cents Chief financial officer per share (2015: 611 cents) for the year ended 30 September 2016. This, together with the interim 22 November 2016 dividend of 363 cents per share, brings the total dividend for the year to 1 065 cents. This is 12% higher than last year’s total dividend of 950 cents. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 33 – – 5 30 285 582 176 235 407 250 393 332 416 (297) (732) (592) 2012** 1 314 2 632 3 048 5 222 7 783 2 655 4 012 3 359 2 718 2 748 3 777 3 356 (1 318) (1 029) 17 809 17 809 10 970 22 771 ** ^ (2) 426 301 699 581 225 364 515 2013 (337) (119) (837) 1 453 2 879 2 915 8 330 1 453 1 028 1 281 9 486 3 413 5 424 5 499 2 516 2 397 3 234 2 721 Restated (1 403) (1 829) (3 282) (1 426) 25 103 25 103 12 423 27 065 – – (28) 116 287 627 626 770 425 597 (415) (348) (127) (832) 2014** 5 868 1 225 1 640 3 107 3 168 9 372 3 422 4 527 1 991 1 864 2 696 3 155 (1 109) (1 467) (1 056) 24 545 24 545 12 753 10 728 30 126 # – – 76 (53) (12) 712 326 643 150 424 603 2015 (268) (344) (812) (977) (339) 4 641 2 355 2 841 9 017 1 215 4 312 4 233 3 122 3 110 4 087 3 823 Restated* (1 056) (1 643) 24 803 24 803 13 407 11 617 28 690

– – 33 (324) 115 406 666 211 487 489 861 2016 (562) (604) 1 126 1 688 1 573 3 234 3 432 6 506 1 069 4 905 3 941 4 542 3 261 3 294 4 515 3 978 (1 661) (1 221) 24 487 24 487 15 059 11 099 31 738 review Financial Financial The 2015 comparatives have been restated for the retrospective reclassification relating to the treatment of foreign exchange profits and The 2015 comparatives have been restated for the retrospective reclassification relating to the now reclassified to net finance costs. Refer to losses on foreign cash and bank balances previously included in operating income/(loss) and annual financial statements for further details. Not restated for the exclusion of TBCG. Income statement restated as required by IFRS 5 in relation to the treatment of Tiger Branded Consumer Goods plc (TBCG) as a Income statement restated as required by IFRS 5 in relation to the treatment of Tiger Branded discontinued operation. The amounts have been restated due to the adoption of IAS 19R.

* Net increase/(decrease) in cash and cash equivalents Net cash flow from financing activities Net cash flow before financing activities Net cash flow from investing activities Dividends and capital distributions paid Net cash flow from operating activities Cash available from operations Dividends received Working capital changes Working Consolidated cash flow statements Cash operating profit after interest and taxation Total equity and liabilities Total Liabilities classified as held for sale Current liabilities Long-term borrowings Provision for post-retirement medical aid Deferred taxation liability/(asset) Non-controlling interests Total assets Total Issued capital and reserves before share-based payment reserve Share-based payment reserve Assets classified as held for sale Current assets Investments Goodwill and intangible assets Consolidated statements of financial position plant and equipment Property, Non-controlling interests Attributable to (continuing operations): Owners of the parent Taxation Profit for the year from continuing operations Profit before taxation Abnormal impairments items and Income from associates Profit before taxation, income fromProfit before taxation, associates, abnormal items and impairments Consolidated income statements Consolidated income Revenue Rm Five-year review Five-year 2016 ended 30 September for the year ** ^ # 34 Tiger Brands Limited Integrated annual report 2016

# Rm Rm been distributed: Value addedisameasureofthewealthgrouphasbeenabletocreate.Thefollowingstatementshowshowthis Value-added statement Turnover Providers ofcapital Employees added Trend ofvalue Value added Less: Netcostofproductsandservices Government Add: Incomefrominvestmentsandassociates Government group Retained inthe Retained inthegroup Employees Applied to: Wealth created * net VAT ofR515,1million(2015:R494,2million),excisedutyonrevenueandUIFpayments. excludetaxationdeductedfromemployees’remunerationofR530,6million(2015: R479,1million), The paymentstogovernment Gross contributiontogovernment surchargesandexcisetaxes Customs duties,import Rates andtaxespaidtolocalauthorities Skills developmentlevy Income taxation(excludingdeferredtax) Note 1 Providers ofcapital

Restated asrequiredbyIFRS5inrelationtothetreatmentofTigerBranded ConsumerGoodsplc(TBCG)asadiscontinuedoperation. Taxation (refertonote1) shareholders Dividends toordinary Salaries, wagesandotherbenefits preference shareholders Dividends andcapitaldistributionstonon-controllinginterests Interest onborrowings(netofforeignexchangeprofit/(losses)) further details. foreign cashandbankbalancespreviouslyincludedinoperatingincome/(loss) andnowreclassifiedtonetfinancecosts.Refernote7for The comparativeshavebeenrestatedfortheretrospectivereclassification relatingtothetreatmentofforeignexchangeprofitsandlosseson 1852,6 1298,2 2599,1 9486,2 3 736,3 2016

100 39 20 14 27 % 3 422,6 1 814,3 1 128,0 2 374,6 8 739,5 Restated

2015 # 100 39 21 13 27 % 3 307,2 1 896,2 1 472,8 1 952,5 8 628,7 31697,5 23098,7 2014 1298,2 2599,1 9486,2 9486,2 1298,2 1160,5 1852,6 1629,9 8 598,8 3 736,3 887,4 203,0 82,7 28,0 27,0 2016 19,7 100 38 22 17 23 % 2 860,2 1 825,5 1 346,1 1 539,3 7 571,1 100,0 100,0 27,1 13,7 17,2 27,4 19,5 72,9 29,9 39,4 2,8 0,2 2013 2,1 % 28660,0 20 540,4 1128,0 2374,6 1128,0 1814,3 1574,6 100 8 119,6 8 739,5 8 739,5 3 422,6 38 24 18 20 Restated* 619,9 220,3 % 998,3 2015 19,4 78,2 24,9 26,6 2530,1 1509,2 1189,1 1822,7 7051,1 # 2012 100,0 100,0 28,3 12,9 27,2 20,7 71,7 18,0 30,5 39,2 2,2 0,2 2,5 100 36 21 17 26 % %

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 35 – 3,8 9,0 4,7 35,1 34,4 21,3 45,3 11,4 20,1 51,2 17,0 31,1 17,5 20,5 144,3 2015 419,3 147,1 126,6 541,6 541,6 685,9 122,3 226,9 110,1 Restated – 4,8 amortisation 4,4 5,4 2016 34,6 25,4 23,7 55,3 16,9 21,8 49,3 18,4 35,0 20,9 11,1 22,2 Depreciation and Depreciation 448,3 152,8 130,6 570,7 570,7 575,5 122,4 240,2 116,6 2 (7,1) 2015 92,6 86,3 99,7 (29,2) (46,5) (38,2) (392,5) 461,7 115,8 338,0 410,6 314,9 137,8 146,3 443,6 129,7 214,2 380,3 Restated* 3 593,2 2 060,8 1 680,5 4 054,9 4 025,7 3 633,2 1 539,5 63,2 2016 50,9 98,4 (88,9) (34,6) (48,5) Operating income 147,6 547,2 150,2 247,0 465,6 316,0 156,8 158,0 533,7 134,2 211,3 188,2 405,7 3 695,8 2 001,9 1 596,2 4 243,0 4 154,1 4 217,3 1 728,5

– 2015 412,0 706,5 762,6 443,7 630,9 803,0 713,2 (158,1) Restated 2 897,6 1 8 160,5 1 434,0 5 029,4 1 872,4 1 166,8 2 095,1 2 147,1 4 265,4 2 137,1 3 214,9 11 375,4 23 630,6 28 660,0 28 660,0 31 557,6 12 255,2 – Turnover review 2016 Financial Financial 476,7 883,8 959,8 682,4 862,1 892,1 501,7 (242,9) 1 598,5 9 208,5 1 683,3 1 625,7 3 636,7 5 386,4 1 326,4 2 229,6 2 436,6 4 700,8 2 270,8 12 845,2 26 311,1 31 697,5 31 697,5 33 296,0 13 465,9 3

4 5 The comparatives have been restated for the retrospective reclassification relating to the treatment of foreign exchange profits and losses on The comparatives have been restated for the retrospective reclassification relating to the treatment foreign cash and bank balances previously included in operating income/(loss) and now reclassified to net finance costs. Refer to note 7 for further details. Previously reported Nigeria segment included TBCG which is now disclosed as a discontinued operation, with the remaining segment Previously reported Nigeria segment included TBCG which is now disclosed as a discontinued shown as International operations – West Africa. * Comprises rice, pasta and oat-based breakfast cereals. Includes the corporate office and management expenses relating to international investments. Refer to note 3.2 of the financial statements for further information on geographical split. Operating income is stated after amortisation of intangible assets. cereals. Comprises maize milling, wheat milling and baking, sorghum beverages and malt-based breakfast Grains Milling and Baking Rm Domestic operations Segment report Segment 2016 ended 30 September for the year 4 5 in relation to inter-segment pricing. length basis All segments operate on an arm’s 1 2 3 ** Other Grains ** – West Africa Deciduous Fruit (LAF) Other intergroup sales Total from continuing operations – before IFRS 2 charges IFRS 2 charges Total from continuing operations – after IFRS 2 charges Discontinued operation** Total group International (including Exports) International operations – Central Africa – East Africa Exports Beverages Added Meat Value Products Out of Home HPCB Personal Care Baby Care Home Care Other Groceries Snacks & Treats Consumer Brands 36 Tiger Brands Limited Integrated annual report 2016 Other Other Grains HPCB Value AddedMeatProducts Beverages Snacks &Treats Milling andBaking Grains Groceries Consumer Brands for theyearended30September2016 Segment report 3 2 1 ** Total Deciduous Fruit(LAF) – West Africa** – EastAfrica – Central Africa operations International Exports International (includingExports) Rm Domestic operations Rm Rm Total Outside SouthAfrica South Africa Split ofnon-currentassets Deferred taxationasset Total assetsperstatementsoffinancialposition Reconciliation oftotalassets

* Comprises rice,pastaandoat-basedbreakfastcereals. Comprises maizemilling,wheatmillingandbaking,sorghumbeveragesmalt-basedbreakfastcereals. Includes thecorporateoffice. Previously reportedNigeriasegmenthasnowbeendisclosedasWestAfrica.2015includestheTBCGdiscontinuedoperation. Capex spendisnetofagovernmentgrantreceivedduringtheyear. 3 2 1 continued

19056,9 24 486,3 5 550,3 9 509,2 5 429,4 3 997,4 1 361,5 1 483,5 1 384,1 3 867,6 4 304,4 1 682,7 1 244,8 2 535,4 975,7 146,4 854,0 648,8 2016 Total assets 17654,1 24 803,8 1499,9 1989,6 4649,7 3222,6 4115,8 9312,5 1427,1 1106,1 2899,4 3691,9 1 680,9 7 149,7 811,6 895,6 824,5 638,8 2015 provisions andaccruals 1429,7 2276,8 4 810,5 4 082,4 453,1 282,5 237,6 423,2 880,4 244,2 227,5 119,3 728,1 Accounts payable, 931,1 498,6 375,9 2016 54,7 82,4 and taxation 3731,8 1301,1 2091,3 5 393,5 1 661,7 407,8 257,6 225,8 365,7 924,8 834,4 376,3 216,5 231,7 191,4 948,0 339,4 74,1 2015 24 528,9 24 486,3 8482,4 2583,9 5898,5 132,3 329,9 127,4 945,4 847,0 346,7 439,0 Capital expenditure 33,2 67,5 78,6 16,8 36,6 21,6 61,3 98,4 2016 (42,6) 2016 2016 (8,3)* 20,8 27,7 Total assets 24 854,3 24 803,8 8 874,2 3 734,8 5 139,4 133,5 146,3 520,3 148,0 280,4 881,6 152,2 361,3 47,2 34,3 15,2 37,4 14,5 43,0 52,5 83,8 91,9 29,8 2015 2015 2015 (50,5)

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 37 9 3,1 6,2 4,6 25 47 60 16 2,0 2,6 1,5

8,29 850 515 216 5,5% 2012 15,3 27,0 24,1 33,8 22,5 79,0 13,38 10,69 1 861 1 788 1 689 7 086 12 739 10 878 20 252 29 321 27 312 38 662 52 219 159 263 418 955 150 973 ^ 8 2,9 5,5 4,5 24 71 32 18 1,9 2,2 1,1 73,3 865 466 159 6,0% 2013 11,4 25,9 19,7 24,6 23,2 10,05 16,23 13,60 2 288 1 798 1 629 7 998 Restated 15 048 12 760 26 700 33 499 29 911 41 357 57 294 159 755 553 725 140 315 9 3,0 5,9 4,6 20 72 36 17 1,9 2,1 1,1 11,8 30,9 72,9 940 474 211 5,9% 2014 22,7 24,6 22,1 11,32 18,35 14,28 3 959 1 784 1 816 8 221 16 884 12 925 24 444 32 200 31 543 39 468 60 546 160 127 508 975 139 926

3,1 5,9 4,2 18 22 74 31 17 541 265 1,9 2,3 1,3 14,0 23,9 24,8 93,6 950 4,5% 2015 26,4 22,3 13,87 21,05 15,52 1 892 2 363 1 786 8 507 12 800 15 163 26 732 40 086 30 479 57 859 58 541 161 693 873 519 179 732 14 2,0 2,8 5,6 4,7 11 47 50 18 606 293 2,4 1,7 13,1 27,0 93,3 6,5%

2016 23,4 30,8 23,3 13,80 17,92 15,47 1 065 2 238 9 553 1 059

2 127 38 024 60 448 73 033 14 180 13 121 26 958 40 152 162 480 854 893 179 123

review # Financial Financial 1

# 3 # # # 2 # 1 # # # Based on the sum of the interim dividend paid in the current year and the final dividend declared post-year-end. Based on the sum of the interim dividend paid in the current year and the final dividend declared Net of treasury and empowerment shares. Includes employees of international operations. plc (TBCG) as a discontinued operation. Restated as required by IFRS 5 in relation to the treatment of Tiger Branded Consumer Goods The amounts have been restated due to the adoption of IAS 19R.

Ordinary share performance Number of ordinary earnings shares upon which headline per share is based (000) Summary of ratios and statistics of ratios Summary 2 3 # ^ 1 – permanent – seasonal Revenue per employee (R000) Dividend cover (times) Headline earnings per ordinary share (cents) Value added per employee (R000) Value Operating profit per employee (R000) Effective taxation rate (%) Return on equity (%) Net worthper ordinary share (cents) Economic indicators Consumer price index (September on September) Net debt/(cash) to net funding (%) Dividends per ordinary share (cents) Return on average net assets (%) Profitability and asset management Profitability and asset Asset turnover (times) Key closing exchange rates at 30 September vs ZAR Key closing exchange rates at 30 September – USD Total liabilities to total shareholders‘ funds (%) liabilities Total Financing Current ratio Working capital per R1 000 turnover (R) Working – GBP Cash flow to net liabilities (%) Net interest cover (times) Operating margin (%) – EUR Employee statistics Number of employees at year end Stock exchange statistics Market price per share (cents) – year end Number of transactions – lowest – highest Number of shares traded (000) Value of shares traded (Rm) Value Number of shares traded as a percentage of total issued shares Dividend yield at year end (%) Earnings yield at year end (%) Price earnings ratio at year end Market capitalisation at year end (Rm) Market capitalisation to shareholders’ equity at year end (times) 38 Tiger Brands Limited Integrated annual report 2016

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 39 per year to produce All Gold tomato sauce. Two manufacturing manufacturing Two plants process 95 000 tons of tomato crop

review Operational Operational 40 Tiger Brands Limited Integrated annual report 2016 prior year, inthisdivision. sustainableperformance to support investment increasedby13%,aftera16%increaseinthe flat duetosignificantdeclinesinmaize.Themarketing Despite growthinallothercategories,overallvolumeswere byhighlevelsofinputcostinflation. adversely affected pointsto15,6%was operating marginsby2,5 percentage billion.Thedeclineof income declinedmarginallyto R2 whileoperating inflation, increased13%toR12,8 billion in rawmaterialinputcosts.Turnover, drivenentirelyby The reviewperiodwascharacterisedbysignificantinflation and Fatti’s &Moni’s (pasta). (bread), Tastic (rice),Ace (maize),Jungle(breakfast) grains businesses,andincludesbrandssuchasAlbany This divisionhousesthegroup’s millingandbakingother Segment overview • • • Salient features despite lowervolumesinmaizeandsorghum. and highinflationenvironment,volumesweremaintained while operatingincomedeclinedmarginally. Inachallenging Turnover intheGrainsdivisionincreased13%toR12,8billion Operational review • • • Grains authorities tobuildsustainablesolutions playersandprovincial other industry fatalities. Tiger Brandsisworkingwith focus area.InFY16,werecorded four Route tomarketsecurityremains a Safety andhealth creating sharedvalue skills, robustengagementiskeyto competingforscarce In anindustry People Integrated approachtosustainability Market leadershipmaintainedinbreadcategory Operating incomemarginallydownatR2billion High rawmaterialinflationdrivenbydrought

additional information additional Visit our website for for website our Visit Safex maize Duty US wheatprice(R) Exchange rate(R/USD) US wheatprice(USD) Rm prices (shownbelow)and,ofcourse,increasedcompetition. sensitive toexchangeratevolatility, Safexmaize wheattariffs, material costsandprice/volumemanagement.Equally, itis ofourGrainsdivisionisdrivenbyraw The performance 12 000 15 000 Performance 3 000 6 000 9 000 (Rm) 0 *Before abnormalitems. 11 375 2015 2 061 18,1% almost 60000schoolchildren (page 65),includingbreakfasts for invested insocio-economic development R23 million(1%ofnetprofitafter tax) Communities indicators against key for itsperformance areas. Eachbusinessunitisresponsible journey, grouptargetsaresetforkey To guideoursustainablemanufacturing Environment September 1591 12 845 4 202 2 631 13,56 2016 2016 194 2 002 15,6% September 3 479 3 018 12,07 2015 Operatingmargin ■ ■ Turnover 461 250 Operating income* change 245 (13) (22) 21 12 %

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Outlook Although improved weather conditions are forecast, the business may benefit from lower raw material costs in the Competition in bread final quarter of the new financial year. is likely to intensify as additional capacity comes on stream, Western while the benefits of the new bread plant in the Cape are only likely to be felt at the end of FY17. The focus will remain on protecting market share through increased brand investment and in manufacturing efficiency and flexibility. During the review period, a capex programme was initiated During the review period, which will come Cape bakery, to improve the Western online in the latter part of FY17. While international wheat prices declined during the year, this was offset by the increase in the local wheat tariff. This tariff eightfold between 2014 and 2016, has increased R1 591 per ton. This has meant a from R157 per ton to local wheat prices. The wheat tariffsignificant increase in formulareviewed by the International is being Trade and an outcome Administration Commission of South Africa the is expected in due course. Despite these developments, wheat milling business delivered a satisfactory performance. in JanuaryThe maize price peaked at R5 280 per ton As a result, 2016 due to widespread and severe drought. maize milling reported lower operating income significantly levels of inflation. as volumes were impacted by exceptional Margins were affected to fully recover costs by the inability amid aggressive competition. The performance and maize breakfast and of the sorghum raw material beverage business was constrained by high by regional costs, new entrants and aggressive pricing competitors. Other grains The rice business reported turnover strong growth and good volume growth. Lower international prices were offset by rand weakness. The pasta business recorded another strong operating performance, with strong volume growth as increased marketing investment continues to benefit the brand. During brand into & Moni’s the division expanded the Fatti’s the year, the fast-growing convenience segment with instant noodles. Early indications show encouraging growth. The oats business delivered good results, driven by the resilience of the core Jungle range and boosted by innovation, such as the single-serve Jungle cups that leverage on the trend of convenience and breakfast-on-the-go.

review

30 Sep 16 Sep 30 30 Sep 16 Sep 30

Operational Operational

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1 Oct 15 Oct 1 1 Oct 15 Oct 1 3 000 4 500 6 000 Maize price (R/t) Safex wheat price (R/t) 2 500 3 500 4 500 5 500 Except in the Western Cape, where volumes declined Cape, Except in the Western significantly in bread, positive volume growth reflected a measured response to increased competition, focused on the attributes of the Albany brand, supported by tactical pricing initiatives. Milling and Baking Overall volumes in these categories were unchanged despite a significant decline in maize volumes. Fuelled by inflation, turnover increased by 13% to R9,2 billion (2015: R8,2 billion). A disappointing performance from maize and sorghum resulted in operating income declining This 5% to R1,6 billion from R1,7 billion in the prior year. contributed to a lower operating margin of 17,3% compared with the prior year of 20,6%. The wheat-to-bread value chain performed credibly in an increasingly competitive environment in both baking and wheat milling. Operational review continued

Turnover increased 9% to R11,0 billion and operating income was up 9% to R1,2 billion, despite aggressive competitor activity. The operating margin was maintained at 10,8%.

Consumer Brands – food

Salient features Performance Turnover increased 9% to R11,0 billion, driven by 3% •• Groceries achieves margin of 9,9% while maintaining volume growth and 6% inflation. Operating income was brand leadership in core categories up 9% to R1,2 billion, despite aggressive competitor activity •• KOO maintains leading position in top awards on and above-inflation increases in input costs. The operating page 29 margin was maintained at 10,8%.

•• Improved manufacturing performance across all divisions Integrated annual report 2016 Performance (Rm) 42 12 000 11 029 Segment overview 10 108 ■ 10 000 Turnover ■ Operating income* This division houses many of the group’s iconic brands and 8 000 Operating margin includes Groceries, Snacks & Treats, Beverages, Value 6 000 10,8% 10,8% Added Meat Products and Out of Home. 4 000 2 000 1 096 1 195 0 Strategy 2015 2016 *Before abnormal items. Entrench brand leadership and recover operating margin Tiger Brands Limited Tiger in specific categories through strategic pricing, improved operating performance, innovation, cost efficiency and enhanced manufacturing performance.

Integrating sustainability into operations Environment Water scarcity and drought are People key risks at present. Targets set for Recognised as top and preferred reducing consumption by at least employer in separate surveys 5% per annum, increased recycling (page 56) and reuse

Safety and health Transformation 13% improvement in lost-time injuries Tiger Brands maintained its level 3 in FY16 BBBEE rating and has proactively revised its strategy in anticipation of Visit our website for new codes. For more information additional information refer to page 63. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 43

1980 – Does the name Felix Swart sound familiar? It should. Black Cat gave him supernatural programme strength in the popular TV Die Swart Kat. • • Black Cat quickly became a household staple in South Africa and remains the brand choice of peanut butter among parents to feed their children. Although Black Cat is a firm favourite for children, the target audience includes adults (young and old) too, making it the number one selling peanut butter and a firm favourite for healthier snacks. innovation as well, remain ahead in continual We such as plastic 600g tubs, and meeting health trends no-added salt smooth and with our no-added sugar, crunchy variants. review Operational Operational – and y Black Cat – Black Cat developed in South Africa by 1926 – Black Cat developed in South Africa by a company in Mokopane (formerly Potgietersrus) to quickly become a household staple through word-of-mouth support for its quality – Tiger Oats acquired Black Cat, investing 1946 – Tiger in the brand through modern manufacturing techniques as well as extensive advertising and marketing campaigns 1967 – Professional golfer and local icon, Gary endorsed Black Cat and appeared in Player, many adverts radio Oats sponsored the children’s 1973 – Tiger programme The Adventures of Jet Jungle on Springbok Radio, heralding a new era for Black Cat and countering rising competition from private label brands • • • • Open up the world’s pantries and you will find one pantries and Open up the world’s Ask product in almost all of them, peanut butter. with a South African which brand they associate be Black peanut butter and their answer is likely to Cat. In consumer research, Black Cat is mentioned butter. by 91% of people asked to name a peanut are celebrating 90 years of peanut buttery We that goodness with Black Cat, the nutty spread changed South African sandwiches forever. • • • • birthda Happy 90th ! nutty years ahead many more 44 Tiger Brands Limited Integrated annual report 2016 among Millward Brown’s Top 10 Best-liked Adsof2015 voted campaign, withtheTVadvert current award-winning campaign.KOOcontinuestobenefitfromits advertising Goldrangewasrelaunchedwithanew brand The All Groceries continuestoinvestin itsmarket-leadingbrands. domesticintroductionofBennystockflavouring. as the vegetable productsandKOOLite fruitproducts,aswell extensions toMrsBall’s, KOO’s expandedrangeof Innovation includedthelaunchofsuccessfulflavour consumer spending. aggressivecompetitionandconstrained marked by price/volume managementinatradingenvironment implemented anappropriatepricingstrategy, focusedon material andpackagingcostssignificantly. We therefore the droughtandforeigncurrencyvolatilityraisedraw was kepttoaminimum.Althoughthiswellmanaged, drought, theadverseimpactonrawmaterialavailability presentedbytheongoing challenges. Despitedifficulties toexpectationafterexperiencingsomeinitial performing is nowlocatedinBoksburg(Gauteng),stableand manufacturing excellence.Themayonnaiseoperation,which The division’s supplychaincontinues tofocuson with guidance. the operatingmarginimprovedfrom9,6%to9,9%inline toR466million(2015:R411million).Asaresult, by 13% whileoperatingincomeincreased (2015: R4,3 billion) Black CatandMrsBall’s. Turnover rose10%toR4,7 billion brands includingKOO,AllGold,Crosse&Blackwell, ofconsumer-preferred drivenbyitsportfolio performance andproducedanimproved Groceries continuesitsrecovery Groceries Operational review Consumer Brands–foodcontinued

continued period, drivenbyfocusedinvestmentincorebrands. Hall’s, thebusinessrecordedstrongvolumegrowthin With keybrandsincludingOros,Energade,Rose’s and Beverages momentum inchocolateslabs. chocolate manufacturingcapabilitytoacceleratecurrent jellies manufacturing,thebusinesshasinvestedinadditional Building ontherecentcapacityinvestmentingumsand greaterinnovationinFY17. way for thisyearwillpavethe optimisation processthatstarted eliminating non-value-addingproductlines.Thecategory by made progressinproductstreamliningtheportfolio levels.We supplyandcustomerservice that affected also issues Good progresswasmadein2016onkeyfactory sugar, glucose,cocoaand nuts. significant inputcostincreasesonmajoringredientssuchas Operating incomeofR316millionwasmaintained,despite reflecting slightvolumesharegainsinacontractingmarket. grew6%toR2,3billion, During thereviewperiod,turnover through Jungle. bars (TVbar, Nosh,Nikki)aswellthesnackingcategory (Beacon) whereitenjoysthenumber2position,chocolate MMMallows andSmoothies.Italsomarketschocolateslabs through brandsincludingMaynards,BeaconAllsorts, This businessisamarketleaderinsugarconfectionery Snacks &treats brands. ahead ofleadinginternational forasecondconsecutiveyear 2016survey Sunday Times consumers asSouthAfrica’s favouritebrandinthe (published July2016).Inaddition,KOOwasvotedby

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Outlook conditions are expected to remain challenging in Trading on consumer the year ahead, given widespread pressure competition. spending, cost increases and aggressive we will focus on increasing margins by driving Accordingly, cost savings and efficiencies prioritising marketing and efforts. market, we will continue to In a highly competitive brands while focus on innovation to reinforce our core optimising the price elasticity of our brands. Out of home included optimising product and Key drivers for the year on higher-profit categories and customer mix, with focus grew volume by optimising the customers. The business Brands basket and focusing on combined entire Tiger service Improved categories levels on key profitability. overall performance.contributed to an improved The food services market benefits when macro-economic and people trade down from fine conditions deteriorate dining to fast food. For FY16, turnoverR502 million increased 13% to (2015: R444 to million) and operating income 14% R98 millionsells all (2015: R86 million). Out of home Tiger Brands’ products to food services customers such as caterers to tailor and restaurants, and is uniquely able competitive solutions for these customers. This is a distinct advantage in difficult where customers trading conditions face immense cost pressures. review Operational Operational During the year, the business acquired Hercules Cold Storage During the year, Proprietary Limited. Its corebusiness is processed meats, focused on the economy segment. The facility will be converted into a Halaal-certified plant providing access to identified new channels, including the independently owned wholesale channel. The rate of innovation remains well above historical levels, The rate of innovation remains well above further its main competitors. widening the gap against Turnover increased by 6% to R2,2 billion (2015: R2,1 billion) Turnover (2015:and operating income by 8% to R158 million R146 million)pork, driven despite significant cost increases in indirectly by higher maize prices, particularly in the second of 7,1%. half. The business achieved an operating margin Value-added meat products Value-added The value-added meats category has moved from declining positive growth in the previous year to a moderately The position, driven mainly by the polony segment. up well against market-leading Enterprise brand has held share from other this competition and has continued to gain major national brands. Investment continued during the year, building on the during the year, Investment continued architecture consolidation initiatedsuccessful manufacturing in 2014. A state-of-the-art ready-to-drink production line was installed, for further paving the way innovation and productivity improvements. Both turnover operating income grew by 14% to and R1,3 billionbillion) and R157 million (2015: R1,2 Despite significant (2015: R138 million), respectively. the operating marginpressure on input costs, was maintained at various cost-saving 11,8% through initiatives and mix management. Operational review continued

The division is now in the second year of the rebase and rebuild strategy and has responded positively to various initiatives. Turnover increased 13% to R2,4 billion and operating income 20% to R534 million resulting in an operating margin of 21,9%.

Home, Personal Care and Baby (HPCB)

Salient features Performance The success of the strategy is reflected in turnover increasing •• Turnover growth of 13% with operating income growth 13% to R2,4 billion (2015: R2,1 billion), driven in part of 20% by 6% volume growth. Operating income rose 20% to •• Key efficiency benchmarks achieved R534 million, with an operating margin of 21,9%.

•• Exceptional performance in major categories, with body Integrated annual report 2016 care and pest recording strong growth Performance (Rm) 2 437 2 500 46 2 147 ■ Turnover 2 000 Segment overview ■ Operating income* 1 500 Operating margin This division houses a portfolio of entrenched brands, many 20,7% 21,9% with a heritage and pedigree built over years. 1 000 444 534 500 Strategy 0 2015 2016 The division is focused on supporting the long-term *Before abnormal items.

Tiger Brands Limited Tiger competitiveness of its brands with appropriate investment in marketing, research and new product development. Home care Consumer-relevant innovation and excellent in-store The division is now in the second year of the rebase and execution underpinned a solid performance from the home rebuild strategy and has responded positively to various enhancement segment. In the pest segment, significant share initiatives. gains, as well as innovation into new segments, supported

Integrating sustainability into operations

People Preferential procurement Group talent processes entrenched to 73% of our discretionary procurement ensure the right skills in the right place benefits BBBEE suppliers

Customers and consumers Communities Intensified focus on market insight Good corporate citizenship is and operational efficiency to counter intrinsic to Tiger Brands – our changes in consumer behaviour and reputation depends on it increasing competition Visit our website for additional information WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 47 Mangwanani is an award-winning proudly South African day spa with 26 branches in Cape Gauteng, Western and KwaZulu-Natal. The brand is well known in among urban women the upper-income segment,

synonymous with rest and relaxation, and acknowledged synonymous with rest such, it as originating in and inspired by Africa. As provided a unique platform range. for an air-care The common ground of the Airoma/Mangwanani collaboration is fragrance, combining Mangwanani’s heritage credibility in “African fragrances” with Airoma’s fragrance in “home fragrances”. In a spa environment, that Airoma enhances the ambiance – a consumer need aims to address. This co-branded opportunity on the global is founded As a form of trend of collaboration but with local flavour. advantage formarketing, it provides a unique competitive Airoma and an opportunity the air-care category to elevate home. in the retail trade out of sanitation and into the has been a household Ingram’s brand for decades. Based on a deep understanding of local we launched consumer behaviour, Glycerine. In Triple Ingram’s just three years and in a hotly contested market, it has overtaken established competitors to become one of the best-selling items in its category in key retail outlets, second only to the 500mℓ pack of Ingram’s Camphor Cream. The rationale for this innovation stemmed from home visits with the people who buy our products (noting that consumers already decanted glycerine into their brand strategy creams) and complemented the Ingram’s of launching body care products that have unique functional benefits based on relevant local ingredients/ behaviours. The success of this and other launches (such as Ingram’s Oil Cream) proves our ability to effectivelyTissue compete given our intimate understanding of the needs and wants of South African consumers. These deep insights guide the development of relevant and unique local products by a very capable new product development team. a hit with consumers Ingram’s innovation Airoma collaboration and Mangwanani review Operational Operational In FY17, the focus remains on cost reductions, continued innovation in line with strategy and improving efficiencies, especially in the nutrition manufacturing units and Isando reconfiguration project, which was fully commissioned in November 2016. In the longer term, we are confident the Baby division is well positioned, with the leading brand Purity to drive sustained market and share growth by offering consumers affordable pack sizes, value-added promotions and innovation that meets their needs for will continue convenience and time-saving solutions. We to focus on innovation across all categories in Home and Personal Care to reinforce our core brands. Outlook During the period, the business leveraged offDuring the period, the business leveraged the strength of theincluding Purity brand with a number of launches, The launch of growing-up growing-up milk and Purity Junior. milk provides entry a category into with 7% annual volume and growth while Purity Junior is a range of delicious Since nutritious snacks, meals and drinks for pre-schoolers. growth for the launch, the range has driven incremental baby snacks portfolio.well-being, a baby-friendly In baby insect repellent and fabric conditioner were launched under while the vitamin supplements Purity & Elizabeth Anne’s range under the Vi-daylin brand was extended to toddlers and older children. Baby care This business faced a difficult as economic conditions year affected consumption, and homogenised baby food affordableconsumers shifted from branded food to more Marketing home cooking and general food brands. July 2015, the investment rose by 5%. Since launching in with Purity’s new pouch format has grown exponentially, share of this format reaching 70%. Personal care Growth in this category the pressure on slowed, reflecting by key competitors investing consumer income exacerbated strategies and brand support.aggressively in pricing The challenges to some extent by business countered these Triple (for example, Ingram’s focusing on innovation oil creams) and specific propositions Glycerine and tissue for key channels. The business recorded strong performances in the body care category from core brands and Skin Clinic. Dolly Varden such as Ingram’s, an excellent performance. marketing Focused customer and to good growth in the sanitation activities contributed segment, particularly the Jeyes brand. Operational review continued

Our export basket into southern Africa includes brands such as Benny stock powder, Crosse & Blackwell, Ingram’s, Doom, All Gold and KOO.

International (including Exports)

The Tiger Brands export basket into southern Africa, Performance particularly Mozambique, Zambia and Zimbabwe, includes (Rm) brands such as Benny stock powder, Crosse & Blackwell 6 000 5 386 5 029 ■ mayonnaise, Ingram’s Camphor Cream, Doom, All Gold 5 000 Turnover ■ Operating income* 4 000 and KOO. Demand for these brands remains robust, despite Operating margin 3 000 challenging economic conditions in these countries. The 9,2% 10,2% 2 000 division continues to invest in these core brands to ensure 1 000 462 547 sustained visibility and awareness. 0 2015 2016

Integrated annual report 2016 *Before abnormal items. Two major capex projects totalling R138 million were commissioned at the Davita factory in the review period to enhance capacity and overall compliance. This will ensure 48 The performance of the Exports division (including Davita adequate ongoing supply to address local and export which exports Benny seasoning ingredients, Jolly Jus and demand as well as enhanced compliance to safety, health, Davita powdered soft drinks to 33 countries across Africa) environment and quality standards. was below the previous year.

Despite external challenges in the current year, the outlook Macro-economic issues in Nigeria, Mozambique, for the new financial year is positive with renewed focus on Zimbabwe and Zambia resulted in currency devaluations existing and new markets to drive growth. Tiger Brands Limited Tiger and foreign exchange shortages, in turn affecting key customers’ ability to stay within their credit limits and replenish stocks. In addition, import permit regulations imposed in Zimbabwe significantly affected performance in the fourth quarter.

Integrating sustainability into operations

People Environment Focus on leadership programmes To achieve global benchmarks, to support revised strategy discrete three-year targets set with full accountability on page 76. Safety and health Focus on eliminating recurring Enterprise development behaviour-based incidents, and Financial support of R24 million route to market safety augmented by mentorship and skills transfer Visit our website for additional information WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 49

East Africa Brands Industries (EATBI) Tiger Ethiopia: East Africa (51% held) disappointing performance in FY16 was affected EATBI’s by severe drought in the eastern and northern parts of the country which and ongoing protest action and unrest impacted trading. to Brands announced its decision In June 2016, Tiger in this company to its dispose of its 51% shareholding Ethiopian partner and minority shareholder. Given the uncertainty of completing the of the timing as an asset transaction, this business has not been reflected partiesheld for sale at 30 September 2016. Both remain work together to committed to the sale and will continue to fulfil all remaining suspensive conditions. held) Brands (51% Kenya: Haco Tiger consumer goods Brands is a leading Haco Tiger shaving, hair manufacturer and distributor of stationery, in the East care, skin care, home care and food products Tanzania, African region (Kenya, Uganda, Ethiopia, Rwanda and Burundi). the business The main objective in 2016 was to stabilise which had following revenue recognition issues in FY14, a significant negative impact on FY15 performance. This recovered in line objective was achieved as sales volumes with expectations despite tough regional economic conditions, including foreign currency shortages in Ethiopia, Rwanda, and foreign exchange volatility in Uganda and civil unrest in Burundi. Key drivers behind this performance reflect the focus on end-to-end excellence in execution for priority brands from product listing, trade visibility to consumer engagement. The contribution to turnover by export markets (Uganda, and Congo) Ethiopia, Rwanda, Burundi, Tanzania increased from 44% last year to 53% driven by successful and targeted marketing campaigns. Defending and growing sales and market shares in the Kenyan market is key to ensure sustained growth. review Operational Operational Chococam’s strong performance is reinforced by its selective Chococam’s investment in capital projects to drive capacity enhancements and a safer working environment, including employee As a result, it is well positioned well-being and productivity. for growth and the outlook for the new year remains positive. Another important growth driver is the company’s innovation Another important is the company’s growth driver growth and strategy which allowed it to accelerate top-line categories. reinforce its strong market positions in all Innovation contributed 7,2% to turnover from 6,5% in the During the period, innovations in powdered prior year. bars were beverages, spreads, candy and chocolate successfully taken to market. Strong volume growth in FY16 was driven by the chocolate Strong volume growth in FY16 was driven Other key drivers bar and spreads categories in particular. of this performance continued investment in include the support,brands through traditional and digital media trade andcoverage consumer activations, and improved of the informal Customer retail universe from 70% to 80%. service high at 97%. The contribution to levels remained turnover from export (including Gabon, Chad, markets improved despite Congo-Brazzaville and Equatorial Guinea) in trade disruptions created by presidential elections the year. Gabon, Chad and Congo-Brazzaville during Central Africa (74,7% held) Cameroon: Chococam chocolate bars, chocolate Chococam, which manufactures and powdered beverages, recorded gum spread, candy, a seventh of solid growth in turnover consecutive year and difficultoperating income despite economic conditions. low oil prices (affectingThese included protracted all six the insecurity created by countries in Central Africa), recent naira devaluation which regional conflict, and in cheap importedgenerated a high increase goods from Nigeria. Operational review continued

International (including Exports) continued

West Africa Operating income increased by 59% to R148 million, driven by favourable exchange rates, volume growth into Deli Foods The performance of wholly owned Deli Foods was affected the Far East and Australasia, ongoing manufacturing by currency devaluation and its impact on the cost of wheat efficiencies from improved yields, and cost containment. imports. In addition, ongoing power outages and the In 2016, LAF won the National Productivity Award for introduction of value-added tax on biscuits have had a the most productive manufacturing company in the Western further adverse effect on the business. Cape region. Run by Productivity SA, this award was established by the government to enhance the productive Turnover increased 16% to R477 million (2015: R412 million). capacity of the country and criteria included the facility’s The inability to recover significant increases in key raw approach to productivity, its sustainability strategy in terms materials, resulted in losses rising 27% to R49 million of social impact, safety and working environment, (2015: R38 million). environmental impact, quality as well as growth and development. Economic conditions and intense competition, exacerbated by electricity shortages, will continue to make trading in In line with its growth strategy, expansion into related Nigeria challenging in the short term. value-added products continued, with additional sales of dried fruit and tomato paste. A number of commercial trials

Integrated annual report 2016 Performance in FY17 is expected to be based on the key of new products were successfully completed, with product priorities of continuous cost reductions, improving efficiencies launches planned for the coming season. 50 across the value chain, an expanding presence in the modern trade and continued innovation. With ongoing work As agricultural output normalises, communication between on its growth strategy, the business will be well placed to the company and grower representatives to address issues drive profitable growth through expansion in current and affecting farmers remains a priority. new categories. The global industry remains highly competitive and financial Deciduous Fruit (LAF) instability in Greece, the largest canned-fruit exporter in the Given its export volumes, this company is sensitive to world, directly affects the market given the pricing leverage Tiger Brands Limited Tiger currency exchange rates and low economic growth rates in enjoyed by Greek manufacturers. Despite this, prospects for developed markets where it competes. To counter this, the the business remain positive with the continuous shift to business focused on increasing margins through geographic higher-growth markets. The business has significantly increased and product optimisation, and operating efficiencies. sales to China over the past four years and continues to focus on growth markets, such as China and Russia, to replace more saturated and mature markets like Europe. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 51

Oceana (42,1% held by Tiger Brands) Oceana (42,1% held by Tiger listed on the JSE. Oceana is a leading fishing company, Headline earnings for the year ended 30 September 2016 increased by 34%, driven by a 69% increase in operating income. The strong growth in operating income reflects the performance of its African operations, primarily driven by volume growth in canned fish, fishmeal and hake, underpinned by a favourable exchange rate and record occupancy levels in the Commercial Cold Storage (CCS) business. The inclusion of the Daybrook and Foodcorp assets, acquired in 2015, for the full period contributed strong to the rise in operating income. Daybrook’s performance was driven by increased landings and a material improvement in oil yields compared with the 2015 fishing season. Included in operating income are profits on the disposal of Lamberts Bay Foods and the CCS fruit business in the strategy of focusing review period, in line with Oceana’s on its core strengths. The hallmarks of Carozzí’s success include its exceptional success The hallmarks of Carozzí’s strong number one or number two innovation capability, categories, depth of market brands in the relevant The penetration and efficient manufacturing capability. placed to continue competing business is therefore well effectively. Limited Zimbabwe: National Foods Holdings (37,4% held Brands) by Tiger company National Foods is a leading branded food of operating in Zimbabwe through an infrastructure was impacted factories, depots and agencies. Zimbabwe foreign by macro-economic weaknesses, including exchange shortages, by import exacerbated permit regulations. Despite these challenges, volumes increased driven primarily by maize and, to a lesser extent, cattle feed. National Foods concluded two acquisitions. During the year, oil business, andIt acquired 40% of Pure Oils, a vegetable and biscuits100% of Breathaway Food Caterers, a snacks existing portfoliobusiness. The acquisitions complement the and are likely to provide synergies on integration. Foreign currency shortages are expected to in Zimbabwe by position has been strengthened The company’s intensify. will be on its acquisitions and focus in the year ahead successfully integrating these businesses. review Operational Operational Associates The populist policy changes implemented by government in 2014 continue to impact local consumer demand as well political and as overall business confidence. Similarly, are economic challenges in Brazil and Venezuela constraining regional export opportunities. Underlying performance was affected by the agro-industrial division, which faced lower global pricing in tomato paste and fruit purees although prices firmed somewhat in the second half of 2016. The division in Peru was also affected by weak macro-economic fundamentals weighing on consumer sentiment. The company recorded a satisfactory consolidated performance for the review period, with results boosted by the disposal of 50% of its beverages assets by way of a joint venture with Compania Cervecerias Unidas SA, Chile’s largest brewer. Chile: Empresas Carozzí (24,4% held by Tiger Brands) Empresas Carozzí is a leading branded food business in South America, based in Santiago, Chile. It also has significant manufacturing operations in Lima, Peru. Challenging macro-economic conditions are likely to persist Challenging macro-economic conditions are this business. into FY17, resulting in a muted outlook for Cost increases following a weakening Nigerian naira Cost increases following a weakening Nigerian have been could be significant, and only some of these this, gross recovered through price increases. Despite Gala sausage margins were maintained by adjusting the roll price and pack-size architecture. The weaker Nigerian economy has intensified competition, The weaker Nigerian economy has intensified strategies to with competitors using aggressive pricing increase volume and factory throughput amid suppressed consumer demand. The snacks category of Gala Sausage Roll, which consists Funtime cup is the number one sausage roll in Nigeria, cakes and coconut chips. The dairy category comprises the in the Supreme range of ice-cream products. Brands beverage category Swan natural spring water and include drink. the carbonated, fruit-flavoured Swan soft UAC Foods is a leading manufacturer and marketer of UAC Foods is a leading Nigeria. Its brands span a broad convenience foods in food market, with specific focus spectrum of the country’s on snacks, dairy products and beverages. Nigeria: UAC Foods (49,0% held by Tiger Brands) (49,0% held by Tiger Nigeria: UAC Foods 52 Tiger Brands Limited Integrated annual report 2016

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. The leading drive ahead of and ranks *Nielson recent introduction of new variants will continue to brands growth the category. the category. Golden Cloud is one of Brands‘ Tiger ready mixes second* in the flour In response category. to consumer trends, Golden Cloud launched a range of review Non-financial Non-financial

54 Tiger Brands Limited Integrated annual report 2016 Our approachtomanagingsustainabilityissetoutonpage55andunderpinnedbyourcorevalues,summarisedbelow: andintegratedaspectofourstrategy.an important ofthekeyelementssustainabilityas Against thisbackground,weareincrementallyimprovingourmanagementandreporting more sustainableplanet. recognises thepositivecontributionbusinesscanmaketoa the principlesofUnitedNationsGlobalCompactwhich Listings RequirementsandKingIII.Tiger Brandsfullysupports guidelinesintheJSE FTSE4Good index,aswellgovernance can befoundonourwebsite),therequirementsof disclosure ofGRIG4principlesandguidance(GRIindex This sectionhasbeenpreparedagainstthecorelevelof Sustainability review values live our How we Our values • • • • • • People • • • • • • thrive Help ourpeople together play hard Work hardand diversity workplace Promote people enable our empower and Develop, and respect care, concern Treat allwith dignity treat themwith people and We valueour

• • • Consumers • • • • • • • or complaint consumer request Attend toevery products safety ofour Invest inthe consumers’ needs and satisfy our Understand products Produce quality are ourbusiness Our consumers • • • • • • • Performance • • • • • • • thinking innovative Encourage excellence reward Recognise and every time every Deliver ontime of urgency Act withasense mediocrity Zero tolerancefor execution Value flawless excellence passion for We havea • • • • The worldwelivein • • • • environment to sustainour guided byourdesire Business practices investment corporate social Committed whenever wecan needs ofsociety Respond tothe society reinvest inour We continueto • • • • Integrity • • • • became public if the facts ashamed of would be anything we Never do consumers safety ofour compromise the Never the inside is what ison on theoutside What wesay do we everything all times in integrity at We actwith

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to must be better review because we are there Non-financial Non-financial in a global context, Tiger Brands in a global context, Tiger off The communities in which we operate An integrated sustainability approach. Protecting our licence to trade through proper governance and engaging with stakeholders Driving internal communication, aligned to company goals Adding value to society with integrity • • • • • • • • Tiger Brands believes in Tiger Brands approach a holistic building and enhancing its reputation building and enhancing to enhance performance,

Reputational and social capital can be tracked and Reputational and social capital measured returns improvement year-on-year and drive

and of “business as usual”

is intrinsic

good business corporate organisation

Promoting our corporate identity to all stakeholder groups Building our reputation internally and externally relationships stakeholder Robust environment Tiger Brands does not operate in a Brands does not Tiger static vacuum nor in a engagement, both within and outside the organisation, are key to creating and unlocking real stakeholder and shared value To thrive as a thrive as To Doing good is

citizenship Good corporate Good corporate will be responsive to and influence/shape the many environments it faceswill be responsive to and influence/shape the many environments to Tiger Brands • • • • Central to achieving our financial and market share objectives is managing sustainability and reputation. Key elements include: We support the philosophy that: We The case for sustainability The case 56 Tiger Brands Limited Integrated annual report 2016 Challenge Highlights Our people system management HRoperatingmodelandintegrated information implementing adifferent theHRfunction tobemoreresponsivebusinessrequirementsunderpinnedby transforming human resources(HR).Accordingly, in2016,wecontinuedtoimplementourstrategyon The currentoperatingenvironmentdemandstherightcalibre,capabilityandcapacityof Employers Associationsurvey) Again rankedinthetopthreeofFMCGsectorbygraduates(SouthAfricanGraduate Top Employerstatusretainedwithimprovedyear-on-yearscore Group talentprocessesentrenched • • • • • • Brilliant HRbasicsandonealignedteam Talent management • • • • • • • • • • • • • • • • • • • • HR environment(greatplaceto work) HR rolesandskills,capabilities and knowledgemanagement HR governance teams andsharedservices centresofexpertise HR operatingmodelandstructure, iefocusedHRbusinesspartnering, standardise andsimplifyHRpolicy,Harmonise, processes,systemsandHRdata ofHRvaluechain managementsysteminsupport Enterprise-wide HRinformation development management and Career capability management People and integration Talent acquisition practices process and talent management Embed integrated trainee programme Management brand Enhance employer planning Workforce Leadership development • • • • • • • • development model Leadership programmes development Leadership benchmarking Leadership pipeline people alignment Key rolesandkey Winning throughpeople,organisationandbeingagreatplacetowork

• • • • • • engaging culture and High-performance • • • • • • approach management Enhance performance survey from employeePulse address keyfindings Drive plansto change programme Implement culture to work Build agreatplace programme and recognition Deliver valuedreward relations approach relations/employee Impactful industrial Strategic intent • • • • development Skills andcapability • • • • skills Build mission-critical academies Refine functional capabilities Build business-critical building framework Implement capability- • • • • effectiveness development and Organisational • • • • responsibilities clarity Role and and teamwork Enable collaboration productivity Drive benchmark business performance design toenable Organisational

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9,6 7,7 285 86% 2014 3 555 19 134** 7,9 264 87% 10,8 2015 3 696 20 591

7,1 324 91% 24,7 2016 3 910 review 21 474 Non-financial Non-financial Leadership development Our aim is to have leaders in place with the right capabilities to inspire people to deliver exceptional performance. In line with our revised approach to talent management, and to ensure we have leaders who can drive our strategy, a new leadership competency model was introduced in 2015. Leaders are assessed against this framework to ensure we set the correct parameters for development programmes. Four flagship leadership programmes were launched in 2016 and the offering will be enhanced in FY17. In total, 11 flagship programmes were held in 2016 attended by 120 leaders. identify any gaps and focus on development plans to addressidentify any gaps and focus on development functional andthese. These reviews take place at a business, plans andgroup level where talent is identified, development actions are agreed and then tracked. Tiger Identified high-potential employees, whose talent Brands can leverage for business-critical issues, receive commensurate benefits. In other instances, spikes in demand we face unanticipated meet other less predictable events. To from large orders or we hire the necessarythese customer requirements, temporary staff. In 2016, our temporary workforce represented 39% of our staff total complement. Long term, to convert we intend temporary workers doing work to permanentregular and ongoing positions in the group. While no formalhiring is in place, in commitment to local drawn from practice the vast majority of our workers are areas around our operations.

* Includes international operations but excludes seasonal and casual workers. Retention rate of key talent (target 80%) Overall staff turnover rate Total training spend (Rm) training Total Learnership participants Female employees Employee headcount* In 2016, we continued to embed our approach to enable Brands to outperformTiger competitors and to strengthen our talent pipeline and leadership pool via the talent framework and high-potential process. This includes a group talent policy and review process for a group-wide view that will also Regular talent reviews at appropriate levels ensure high- potential individuals are identified, development plans are agreed, and progress against agreed targets is tracked. Tiger Brands is building talent sustainably by concentrating Tiger on internal appointments and promotions while increasing the investment in training and development to build capability and strengthen the talent pipeline. Key initiatives include a focused management trainee and leadership development programme. During the reporting period, 15 graduates Brands as trainees in various joined Tiger disciplines. Talent management Talent talent to the Our goal is to be able to deliver qualified the right business ahead of demand. This means finding people with the right capabilities, sourced internally. Key indicators Our businesses use seasonal and casual workers for Our businesses use seasonal when expected increases in production. For example, peaches ripen, we employ additional staff to assist in picking and processing the crop timeously. In 2016, the group employed 11 109 permanent employed 11 109 permanent In 2016, the group staff and temporary 3 689 staff in South Africa, excluding 1 059 casual workers. seasonal and Outside South employ 2 012 permanent Africa, we staff and temporary 4 664 staff, bringing the total group workforce to 21 474 seasonal and casual (excluding 591). The total salaryworkers) (2015: 20 bill for the year to R3,4 billion in 2015. was R3,7 billion, compared Workforce ** Restated. 58 Tiger Brands Limited Integrated annual report 2016 2 1 APICS–premier international professionalassociation forsupplychainmanagement. Allied TradeUnion (AMITU). South AfricanCommercial, CateringandAlliedWorkers Union of employeesbelongto18unions(includingthree Our employeeshavefullfreedomofassociation.Some62% themdaily.matters thataffect hasavoicein bargaining unitstoensurethateveryone closelywithemployee for allourpeople,we work To ensureaconstructive, safe andfairworkingenvironment Labour relations ourpeoplestrategy.to support ensure ouremployeebenefitsarerelevantandcompetitive regularly trackmarkettrends,legislationandbestpracticeto Given ourstrategicintenttoattractandretaintalent,we Employee benefits reduce thelossof key talent. with theprogressandaredevelopingmetricstotrack marginally lowerthanthepreviousyear. We are pleased ratewas7,1%(2015:7,9%), In 2016,ourturnover contributes toour success. drives anengagedandcommittedworkforce strong rewardsandrecognitionstructures.We believethis management,pairedwith through carefulperformance This pillarofourstrategyaimstodrivehighperformance andengagingculture High-performance Our people an opportunity for feedbackfromouremployees. an opportunity issues thatimproveproductivity and safety, andprovide held dailyatproductionsites.Thesefocusonpertinent ofourworkplaceculture, scheduledmeetingsare As part • • guideline forallmanagersandemployeesto: codeisa Our disciplinary appropriately byallparties. ensure disputesareresolvedandgrievancesdealtwith andmanagementhelps Clear communicationbetweenstaff productiverelationships. closely withtheunionsto build requiring management’s attention. We continue towork employment equity, skillsdevelopmentandotherissues At eachsite,unionsarerepresentedonforumsthatmonitor of unionisedemployees. monthly. Thethreebiggestunionscollectivelyrepresent66% unions), withsitemanagementandshopstewardsmeeting • • behaviour or conduct is unsatisfactory orunacceptable. behaviour orconductisunsatisfactory Encourage timelycorrectiveactionifanemployee’s misconduct Create afairandequitablestructurefordealingwith continued

1 major (SACCAWU), Food andAlliedWorkersUnion(FAWU) andAfricanMeatIndustry labour standards. 2016, therewerenoinstancesofnon-compliancewith relevant regulationsintheareaswhereitoperates.In LabourOrganisationconventions,andall International Act andBasicConditionsofEmploymentAct,the Tiger BrandscomplieswithSouthAfrica’s LabourRelations 11 733 (2015: 4 036) trainingdaysduringthe year. (2015:4 036) 11 733 inover employees(2015:524)participated of 1 151 Academy,Tiger Brands Atotal aswelllearnerships. SouthAfrica,ledthroughthe on in-housetraining in In 2016,weinvestedR24,7million(2015:R10,8million) training report. (FoodBev Seta)inourworkplaceskillsplanandannual submitted tothesectoreducationandtrainingauthority programmes. Documentedobjectivesandtargetsare workplace qualificationsandshorter, function-specific tocontinuallydevelopthemselvesthrough opportunity creating acompetitiveadvantage.Ourpeoplehavethe Training anddevelopingallemployeesisaprerequisiteto Skills andcapabilitydevelopment • revised thecoursecontentoftwokeyacademies: To ensurewedevelopthe rightstrategicskills,werecently supply chainandmanagement. relevant fieldsforthegroupsuchasmanufacturing,logistics, in learnerships human resourcesandmarketing.Italsooffers disciplines ofsupplychain,leadership,finance,customer, facilitycomprisesseparateacademiesforthe This internal Tiger BrandsAcademy • the APICS managers and11planningspecialistswereenrolledfor a manufacturing excellenceprogramme,fourplanning rolled out.In2016,29unitmanagersweretrainedin planswere acrossthegroup,newlearning harmonised Supply chain:Aftertherequiredskillswereprofiledand learning plans. continue aheadofimplementingthenextphase launch inearly FY17.Atothertargetedsites,assessments plannedfor completed assessmentswithlearnerships andanotherthree siteshave learnerships launched formal development projectis wellunderway:twositeshave Procurement andSupply(CIPS)diploma.Theshopfloor Institute six employeeswereenrolledfortheChartered Management programmes),respectively. Inprocurement, inProductionand Inventory and APICS(CPIM)(Certified 2 (CSCP) (Certified SupplyChainProfessional) (CSCP)(Certified

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 59

review Non-financial Non-financial External programmes bursaries to qualifying black provides Thusani Trust In 2016, we spent R3,5 million employees’ children. on bursaries (2015: R3,1 million and for 291 students 158 respectively).of 371 students have graduated A total support, from tertiary with the trust’s institutions since 2007 2015. and 26 graduated in bursaries for seven (2015: nine) engineering provided We they are incorporated into our students. After graduating, talent pool. Organisational development and effectiveness an organisational Brands is striving to create Tiger environment that enables performance, motivating success. employees to contribute to the group’s Human rights As a signatory United Nations Global Compact, to the Brands supportsTiger the protection of internationally to ensure the proclaimed human rights and endeavours Our human group is not complicit in any related abuses. that we do not rights policy outlines our stance, namely formtolerate discrimination of any kind, nor any of forced This policy is overseen by the HR or child labour. department and reported to the social and ethics committee. There were no reported incidents of human rights violations in 2016.

Our School of MasteryCustomer: Our School its fifth completed To date, formatand final year in the current in 2016. 201 learners completed three-year programmes have field sales managers, customer as sales representatives, managers under this programme. managers or shopper 70 learnersThe second intake of received national and the third intake will complete qualifications in 2016, at the end of 2016 and will their national qualifications in FY17. In the review be awarded their qualifications skills were reviewed and a period, professional customer new skills dictionary developed. Following assessments against revised skills criteria and external benchmarking, developed a new customer academy curriculum is being to advance skills to the next level. • Adult Basic Education and Training (ABET) Adult Basic Education and Training have an established ABET programme to We promote literacy in the group and in 2016 we spent R0,3 million (2015: R0,9 million). As existing employees for this training complete the ABET programme, the need is diminishing. Workplace experience project Workplace in South Africa, Unemployment is a significant challenge is Brands youth. Tiger particularly among the country’s committed to creating opportunities by providing workplace technology, experience for selected candidates in food These engineering, marketing, production and operations. programme students become a feeder pool for the graduate and other entry-level Around 384 people appointments. and, where have completed the programme since 2008 possible, are employed by the business. • 60 Tiger Brands Limited Integrated annual report 2016 our businessunitsaredealingwithmultipleandrepetitive agreedthat our manufacturingunitsinFY15,participants by byananalysisoflost-timeinjuriesreported Supported shared bestpracticestandards. who healthandsafetyexperts units, aswellexternal fromallourmanufacturing managers andsafetyofficers includedrisk forum inNovember2015.Participants group, welaunchedtheTiger Brandshealthandsafety To integrateourapproachandraiseawarenessacrossthe Challenge Highlight Health andsafety Eliminating recurringbehaviour-basedincidents 13% year-on-yearreductioninlost-timeinjuries Achieving safetyexcellence • • • • • • • • • • • • • • • • Effective auditingtoensureprocess safetymanagementisimplementedproperly.Effective Achieve amajorshiftinleadershipthinkingonsafetyculture Occupational healthandsafety Leadership accountabilityandresponsibility Manage keyrisks Robust governance Drive behaviouralsafetyprogramme Step changeinsafetyperformance Behavioural safetythroughvisibleleadership(predictandprevent)

• included: Against thisfocus,keyoutcomesoftheinauguralforum escalated toourhighestpriority. behaviour-based incidents.Eliminatingthesehasbeen • • • • • • • • • Sign-off ofthehealthandsafetystrategicplan Sign-off Framework defined unit Non-negotiable FY16standardsforeachmanufacturing Training plansformanufacturingemployees FY16 lost-time injury targetsreviewedandratified. FY16 lost-timeinjury

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 61 0 0,78 2012 2 0,67 2013 1 0,74 2014 review Non-financial Non-financial 2

0,36 2015 Training strategic plan, key employees meet the milestones in our To to build on the are being trained and coached on the job required levels of safety expertise. The programmes are facilitated by an external focused on specialist, and health and environment developing careers in the safety, been agreed (SHE) field. Appropriate programmes have for employees, supervisors,SHE coordinators and safety officers, management, internal audit, and SHE practitioners. formal supplement training, we have implemented To to drive the safety self-auditing and peer-auditing processes programme. induction and Our safety programmes include training at and contractors. periodic refresher training for employees regularly In addition, on-the-job risk assessments are performed to identify safety risks. and With a renewed focus on these safety programmes initiatives, injury rates declined over the reporting period. assesses implementation and adherence, and provides and provides and adherence, assesses implementation third-party verification. Any non-conformance identified is mitigation and corrective actions and assessed, and risk addition, compliance audits on are implemented. In regulations as well as the group’s applicable laws and and safety requirements are conducted occupational health operation. biannually at each manufacturing 5

0,36 2016 0 0,78*

Target

The group target is the average of the Grains, Consumer Brands – including Food, Home, Personal and Baby care and International divisions, The group target is the average of the Grains, Consumer Brands – including Food, Home, Personal in the reporting period. and considers individual site targets set at an 8,5% to 11% improvement on actual performance Key performance indicators Safety performance The Tiger Brands environmental, health and safety risk health and safety risk Brands environmental, The Tiger management programme has been implemented at all business units. Rigorous operational controls manage known risks and align with international best practice. An accredited independent risk management company The group chief executive officer is ultimately responsible for the safety of employees. He reports to the risk and sustainability these matters.committee as well as the audit committee on chain executivesHealth and safety committees, led by supply healthand site management, are responsible for implementing and safety measures at manufacturing sites. Our policies and standards for managing safety, the the safety, Our policies and standards for managing operating environment and quality are defined in requirements throughout the group. Our manufacturing of the facilities follow the requirements and principles internationally Health and Safety recognised Occupational as the Assessment Series (OHSAS) 18001 standard safety framework of an occupational health and management system. As such, our group health and safety policy stipulates our and safety policy stipulates our As such, our group health productive workplaces across responsibility for maintaining the risk of accidents, injurythe company by minimising hazards for our own people, and exposure to health associates and contractors. The safety of our workers, visitors to our operations and and to our operations of our workers, visitors The safety believe a long-termthe public is key to our success. We is both the fundamental right safe and healthy workplace of every person and a business imperative. Fatalities Lost-time injury frequency rate (LTIFR) * 62 Tiger Brands Limited Integrated annual report 2016 respectively). while 42%beattheirtargets(FY15:18%and63% FY16, 31%ofourmanufacturingsitesachievedzeroLTIFR, 8,5% to11%.ThegroupLTIFR targetis0,33 forFY17.In sites haveannualLTIFR improvementtargetsranging from Depending onthenatureofeachplant,ourmanufacturing shutdown duetohealthandsafetyissuesin2016. Nooperationrecordedanunplannedlessons learned. training toraiseawarenessoninjuriesrecordedandshare equipment inspectionsanddeliverprocesssafety-related teammeetings,conductsafety-critical in multidisciplinary Accordingly, wecontinuetodeliversafetytoolboxtalks ofthetotalrecordedduringyear.a significantportion As shownbelow, firstaidandlost-timeinjuriesaccountfor his familyandcolleagues. condolencesto ourheartfelt steps weretakenandweoffer maintenance onapackingline.Theappropriateremedial accidentally electrocutedwhileconductingroutine In ourEthiopianoperation,LegesseKassahunwas maintenance. management, drivertraining,vehicleinspectionand and buildsustainablesolutionsinareasincludingrouterisk players andprovincialauthoritiestosharebestpractice, Bakeries. Tiger Brandsisworkingwithotherindustry Mduduzi JosephNtuliandtheircolleaguesatAlbany Mokaleng, MichaelMbesi,BafanaAmosMtsweniand condolences tothefamilyandfriendsofHerman and theWestern Cape.We extendoursincere industry. InFY16,werecordedfourfatalitiesinGauteng Route tomarketsecurityremainsafocusareaforour Health andsafety 116 first aid treatment medical 22

fatalities continued 5

157 lost-time injuries incident major 0

rate inSouthAfricais1,6%(2015:1,8%). have enrolledintheprogramme.Ourrecordedprevalence (2015: 331)and95%ofemployeeswhotestedpositive 372 employeeswerevoluntarilycounselledandtested forHIV-positiveincludes support employees.In2016, We haveacomprehensiveHIV/Aidsframeworkthat comprehensivehealthcover.cost-effective membership toourin-housemedicalschemethatoffers We allSouthAfricanemployeesvoluntary alsooffer employees. andtemporary forallpermanent counselling service and management programmeandafreeadvisory community. includeanHIV/Aids Contractedservices (Western Cape,SouthAfrica)isalsoopentothe employeesonsite.OurclinicinAshton and temporary healthcare,freetoallpermanent as welllimitedprimary Theseincludeoccupationalhealthsupport, clinic services. Two inon-site yearsago,weinvestedalmostR8 million legal advisers. social workers,dieticians,biokineticists,andfinancial professional counselling.Userscanaccesspsychologists, andface-to-face 24-hour telephoniccounsellingservice, a programmeoffers Our employeewellnesssupport Employee wellness • executives. KeyinitiativesintroducedinFY16include: Health andsafetyisapriorityforallmanagers Activities toimprovehealthandsafety • • • • • • • implementation nextyear Developing aworkplacehealthimprovementplanfor strategic value understanding thatsafetyshouldbeacorebusinessand integrationofsafetyintobusinessprocesses, Further to safety management asthesearekey leadership andemployeeparticipation Extensively improvingmanagementcommitmentand for our businessunits. competence matrixesarebeingdefinedandlaunched Safety skillsdevelopmentprogrammesandrole-based

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 63 % 1,0 5,0 2,5 0,1 2,0 4,8 30,4 review Non-financial Non-financial Our board includes five black directors (as defined by the BBBEE codes), one of whom is female. Management control is driven at group level by the board and chief executive officer. 1,1% of net profit after tax is invested in enterprise 64. development on page In South Africa, 93% of our employees are black (African, Indian and coloured), of whom 30% are women, and 1% are people with disabilities on page 64. 73% of our discretionary procurement is with BBBEE 64. suppliers on page Total black women Total BBBEE ownership Brands Foundation Tiger (BMT I and Employees Black Managers Trusts BMT II) General staff trust of black Thusani trusts (beneficiaries are children employees) Effective black ownership (using the exclusion and modified flow through principle) Brimstone (a black empowerment investment company) 3

7,5 5,1 7,6 79,9 10,0 18,8 11,2 19,7 2014 3 7,0 5,6 7,6 82,6 10,0 19,2 12,9 20,3 2015

3 10 3,4 5,8 5,0 76,1 18,7 15,7 17,6 2016 10 10 20 20 10 10 20 100 2016*

points

Available Tiger Brands is measured against agriculture sector codes gazetted on 28 December 2012. Allocation of resources Allocation of resources Retain level 3 status for 2017 Retain level 3 status Level * Total Socio-economic development Enterprise development Preferential procurement Skills development Employment equity Management control Ownership Tiger Brands BBBEE scorecard Brands Tiger To the extent that the revised BBBEE codes of good practice have not been adopted by the agriculture sector, which is the agriculture sector, that the revised BBBEE codes of good practice have not been adopted by the the extent To In as shown below. is measured, the group has retained its level 3 rating for the year, Brands sector against which Tiger proactively revised our strategy which aims to optimise associated investment while anticipation of the revised codes, we have maximising the economic empowerment benefit by concentrating on skills development, enterprise and supplier development. In South Africa, we promote social transformation in the interest of nation building, most notably by advancing broad-based black economic empowerment initiatives. Compliance with BBBEE and employment equity legislation is a business (BBBEE) imperative and our BBBEE data and reporting is independently assured. Challenge Highlight Transformation 64 Tiger Brands Limited Integrated annual report 2016 black leadersatseniorandexecutivelevel. middle managementlevelstodevelopapipelineoffuture challengeandweareinvestinginjunior is along-term management talentpool.We realisethatemploymentequity employees. We remaincommittedtogrowingourblack contractorstopermanent oftemporary the conversion employeesislargelydueto The increaseinpermanent Brands isthemajorityshareholder. employeesareaccountedforonlywhereTigerInternational forms part of our performance targetsforFY17. ofourperformance part forms BBBEE strategyoutlinesaroadmap todeliverthisgoaland Ourfive-year landscape inSouthAfricathe longerterm. contributetoavibrantandcompetitivesupply that will detailed below, weregardthisas abusinessimperative black-owned businesses,especiallyinourcorespend.As We smallandmedium remainfocusedonsupporting oursourcingstrategies. trajectories andinform closely withsupplierstounderstandtheirscorecard their scorecardlevels.Ourprocurementteamisworking new targetsandimplementtherequiredstepstoimprove with processassupplierscometoterms be alonger-term Compliance undertherevisedBBBEEcodesisexpectedto suppliers remainsakeyelementofourprocurementstrategy. BBBEE in SouthAfrica,anddevelopingsupporting Preferential procurementisembeddedinoursourcingprocess procurement. discretionary (2015: R16,5billion).Thisrepresents73%ofour fromBBBEEsuppliersin2016 totalling R13,2 billion ingredients, packaging,consumablesandservices Tiger Brandsprocuredagriculturalcommodities, updated inlinewiththenewBBBEEcodes. our preferentialprocurementpolicywillbereviewedand ofourexecutionstrategyforFY17, commitments. Aspart policy hasbeenupdatedtoincludepreferentialprocurement health andenvironmentteams.Ourrevisedprocurement collaboratively reviewedbytheprocurementandsafety, annually toourhighest-risksuppliers.Theresultsare throughaquestionnairedistributed performance governance In oursupplychain,wemonitorenvironmental,socialand Preferential procurement Tiger Brands’workforceprofile Transformation 2012 2013 2014 2015 2016 African 6 260 6 178 6 536 7 648 8 437 Indian 777 739 726 698 720 Coloured continued 1 027 1 192 1 153 1 189 1 120

White 938 881 838 844 831 Disabled 76 68 69 53 72 Permanent 10 379 11 109 9 002 8 990 9 253 support support existto established, wewillassesswhat otheropportunities R15 millionforthefirst18months). Oncetheprojectis agreementsandfinancialloans(totalling around offtake firm We whorequire support. farmers providetechnicalsupport, that alignsoursupplyneedswith theavailabilityofemerging We haveapproachedthis by drawingonin-depthresearch Practically, isacomplexissue. emerging farmers supporting and Fisheriesin2015. ofAgriculture, Forestry understanding withtheDepartment To thisinitiative,wesignedamemorandumof support fouryears. inthe next employment opportunities group. Thisprogrammeisexpectedtogenerateincreased technology willjointhementoring preparation andfertiliser ofthisinitiative, marketleadersinsoil higher yields.Aspart techniques,andenjoyincreasedrevenue from class farming willbeexposedtoworld- the next12months.Thesefarmers Nwanedi tohelpthemincreasetheiryieldsbyup30%in in Thebulkofthiswillbewithfarmers bean farmers. inMarbleHallandsmallwhite peafarmers in Nwanedi, andmentoringfortomatofarmers technicalsupport formal chains. Asexamples,wewillspendoverR9milliontofund toplayagreaterroleinoursupply on emergingfarmers scope ofourinvestmentisbroad,thefirstphaseswillfocus meet requirementswithinthenexttwoyears.While are increasingourinvestmentinenterprisedevelopmentto ofourstrategytocomplywiththerevisedcodes,we As part presently supplyTiger Brands. comprises donationsandloanstoorganisationsthat thestatusofthisscheme.Thebalance affect codes may main contributor(atR17,6million),althoughtherevised businesses. Albany’s owner-driver schemeisatpresentthe 1,1% ofFY16netprofitaftertax,spreadovermostour Our annualinvestmentinenterprisedevelopmentequatesto fromwhichtheybenefit. we providetofarmers extensionservice ofthefarm programme,itispart formal tomatoes forthegroupinLimpopo.Whilethisisnota producing required. Asexample,wementorfarmers tomentoranddevelopskillswhere ofourstaff support the sustainabilityoftheseinitiativesisdrivenbyspecialist ofourcontribution, million)isacornerstone (2015: R39,4 longer term. R24,0 million of While support financial on growingsmallbusinessesthatwecan support over the We haveprojectsinplaceacrossourvaluechain,focusing Enterprise development Temporary 1 079 1 500 4 537 4 222 3 689 the farmers through entrepreneurial businesstraining. the farmers 10 081 10 490 13 790 14 601 14 798 Total Outside ofSouthAfrica Permanent 1 876 3 770 3 673 3 841 2 012 Temporary 1 671 2 149 4 664 782 788 12 739 15 048 19 134 20 591 21 474 Total staff

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2013 24,0 22,4 2014 107 000

24,2 15,3 2015 review 118 443 Non-financial Non-financial 41 000 beneficiaries reached via the Tiger Brands 41 000 beneficiaries reached via the nutrition support programme. Sustainability: green environment (carbon footprint, Sustainability: green environment (carbon packaging recycling). Over 13 200 food parcels distributed Food security: nutritional support programme 23,0 19,0** • • • • 2016 • • encourage employee involvement in community-related We orphans, initiatives that benefit the vulnerable, including HIV/Aids, children, youth, women, people infected with the disabled and the disadvantaged. policies Our CSI strategy is executed through established and and procedures, overseen by the social, ethics regularly review beneficiary transformation committee. We organisations to ensure the most effective impact on our communities. 2016 overview The group committed over 1% of net profit after tax, or R23 million, to community development in 2016, achieving several milestones: • Our core CSI programmes address some of the key goals Our core CSI programmes address some national development plan (NDP) and of South Africa’s the UnitedGoals by Nations Sustainability Development nutrition insecurity contributing to the fight against food and through key focus areas: • 100 977

2013 beneficiary data not available. to 29 February 2016). For the foundation’s financial year (1 March 2015 * Allocated R23 million (over 1% of net profit after tax) to socio-economic development tax) to socio-economic development (over 1% of net profit after Allocated R23 million initiatives ** Our approach Total CSI spend Total Brands Foundation spend Tiger Beneficiaries reached Key indicators Rm Highlight Our communities We also partnered with our customer, Shoprite, in a separate also partnered with our customer, We drought-relief programme, distributing 2 200 food parcels to destitute communities in Greytown, KwaZulu-Natal, This coincided with national while Shoprite provided water. water week. Tiger Brands contributed food parcels to 15 non-profit Brands contributed food Tiger and organisations (NPOs), community-based organisations We also support requests for ad beneficiary organisations. hoc donations or specific requests from organisations in crisis. This includes partnering with the Department of Agriculture, Forestry and Fisheries on a major drought-relief initiative which will provide support via boreholes, water, fodder and food parcels to identified villages and towns. Our CSI approach is rooted in the belief that Tiger Brands can Tiger Our CSI approach is rooted in the belief that lives and reflected by our investments in add value to people’s upliftment,surrounding communities. Through socio-economic and help to weave we believe we build a sustainable legacy, a constructive social fabric in each country where we operate. Our success as a group is inextricably linked with theOur success as a group is inextricably linked only the sourcewell-being of our communities. They are not – but also sustainof our most valuable asset – our employees therefore ourour businesses by buying our products. It is honour this We responsibility to contribute to their welfare. (CSI).commitment through our corporate social investment 66 Tiger Brands Limited Integrated annual report 2016 almost 2 100youngbeneficiarieswhoareall black. almost 2 attendance andproductivityon theprogrammesfor care programmes,providingfood thatensuresgood inKayamandi,Stellenbosch,onafter-school other NGOs betterinschool.Itworkswith to concentrateandlearn giving childreninneedanutritiousmealthatenablesthem andaddressobesityby malnutrition, preventstunted growth Love toGive’s tofight focusisnutrition. It aims primary Love toGiveStellenbosch the fullcostoftraining. equivalent valueintosubsidisingstudentswhocannotafford hasbeenabletoinvest the students’ meals.BuhleFarmers for foodstuffs since2009bysupplyingdry this academy developmentthrough farmer Tiger Brandshassupported trainedoverthepast16years. 5 000 students It enrolsover500studentsperannum,withsome expanding theirfarms. insettingupand toassistfarmers post-training support activities.Theacademyalsoprovides profitable farming tostart andempowernewfarmers purpose istosupport management. Its productionandfarm vegetable, poultry oncrop,livestock, provide practicalskillstrainingtofarmers Academywasestablishedin2000to Buhle Farmers Academy Buhle Farmers below. our beneficiaries.KeybeneficiariesofFY16aresummarised of organisations arecriticaltoachievingourgoalsinterms withNGOsandothercommunity Our valuablepartnerships sub-Saharan Africa. thewell-beingofpopulation in supporting play in ourproducts therefore keenlyawareofthe critical role businessstemsfromthesaleoffood.Weof our are asmuch Food securityisanaturalfitwith Tiger Brands, Food security 2016 CSIinvestments Our communities Total School holidayfooddistribution Employee volunteerism Cause-related marketing Goodwill building donation hoc Humanitarian support/ad to communities NGOs providingsocialsupport Project type

continued KwaZulu-Natal, Mpumalanga, North WestKwaZulu-Natal, Mpumalanga,North Gauteng, Western Cape, Cape,Eastern All provinces Gauteng Western Cape All provinces KwaZulu-Natal, Mpumalanga,Limpopo Gauteng, Western Cape, Cape,Eastern Geographical presence • team willfocusonthetieredapproachbyinvestingin: Building onanewstrategydevelopedinFY16,theCSI Commitments forFY17 andsupport. psychosocial intervention healthand This includeseducation,nutritionalsupport, ofaholisticmodelonnon-centre-basedECD. in thedelivery in thenationaldevelopmentplanandCotlandsspecialises Early childhooddevelopment(ECD)isacriticalfocusarea Cotlands daily.40 learners while NoxoloPreschoolbenefitsfromfoodproductsfor meals tothecommunitythroughasoupkitcheninMalabar, bythedisease.Italsoprovides100daily children affected Laphumilanga HIV/Aidshome-basedcarecentrefor fromSinethembaChildren’s60 orphans Home and surroundingcommunitieswithfood,including support productsto The NMMUcommunityprojectalsouses our unemployment andpoverty. NMMUendeavourstobreakthecycleof support, enter theworldofwork.Thisway, withTiger Brands’ tocompletetheirstudiesand have thenutritionalsupport toensurethey NMMU providesmealstoover680 students receivedvitalnutrition. needy studentsand communities In 2008,NMMUandTiger Brandscollaboratedtoensure community project Nelson MandelaMetropolitanUniversity(NMMU) • • • • • • • Annual projectsalignedtoCSIstrategy Employee volunteerism Brand-related CSI Site andoperations-relatedCSI. colleges. technical andvocational educationandtraining studentsat national competition amongculinary In additiontothesponsorship, we facilitateda cuisine fromtoplocalchefs,cooks andfoodartisans. African Cookbook–acelebration ofSouthAfrican Mandela Foundationtosponsor thefirstGreatSouth withtheNelson Tiger Brandsproudlypartnered The Tiger BrandsGreatSouthAfricanStudent Food provision Supplies donation Cash donation Capacity building cash donation Food provisionand cash donation Food provisionand Impact Chef Cookout 18 347 23 093 2 767 R000 382 502 845 250

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review Non-financial Non-financial The foundation will also donate at least one more school kitchen (for a school identified by the department) in FY17. In line with this commitment, Tiger Brands Foundation will In line with this commitment, Tiger continue sponsoring the first prize in the Department of Basic best annual NSNP awards in the categories Education’s school and best district. For the best school, this means a donation of R450 000 towards a school kitchen and adoption onto our in-school breakfast feeding programme for a minimum of three years. The best district will receive a donation of R80 000 towards office equipment for the NSNP office Tiger Brands, the public and shareholders. Brands, the public and Tiger Given the positive results from our public-private partnership model for in-school nutrition, we will continue to expand this initiative to more schools in South Africa Funders/donors wishing to invest in food security and Funders/donors wishing to invest in food school nutrition programmes Community-based agencies (food delivery partners) Beneficiary and community leaders schools, parents Academic and research institutions (such as University ofAcademic and research institutions (such as in Africa) Johannesburg – Centre for Social Development The Department at national, provincial of Basic Education and local level • • • • • • • • • • • • in supportingThe programme has also been instrumental 310 jobs for food handlers who prepare breakfasts provided by the foundation. Although food handlers are employed by the Department of Basic Education, they are offered a stipend by the foundation. Commitments for FY17 • • • • • provided infrastructural supportprovided infrastructural two school by donating includes supportkitchens. Ongoing training for the senior schools where the breakfast management teams of implemented. programme has been has demonstrated theSince inception, the programme significant difference an effective partnership public-private can make to learners via an in-school feeding programme. were specifically developed by anThe breakfast menus to offerindependent nutritionist optimum nutrition to learners, in turnattendance, class participation improving and performance while supporting development. This physical was confirmed by the Centre in recent research conducted study indicatedfor Social Development in Africa: the 2015 and thethat the combination of our feeding programme lunch meal from the Department of Basic Education has or stuntingcontributed to a reduced occurrence of wasting and obesity in learnerslearner and improved performance (see case study on page 68). The foundation fulfils its mission by partnering with multiple stakeholders, including: •

Tiger Brands Foundation snapshot Brands Tiger 59 977 learners receive breakfast daily 2 514 educators and food handlers 52 000 holiday food parcels 89 schools 30 kitchens 9 provinces • • • • • • • • • • • • Positive reputation. Strategic partnerships Targeted advocacy Targeted Continued direct impact Financial sustainability • • • • • The foundation implemented the first in-school breakfast The foundation implemented 2011 in partnershipfeeding programme in with the national school nutrition Department of Basic Education’s programme. From six primary schools in Alexandra, this has providing the expanded to 89 schools in all provinces, essential breakfast meal to almost 60 000 learners. To date, over 40 million breakfasts have been served to our country’s most vulnerable learners. The Tiger Brands Foundation owns an effective The Tiger 5% of Tiger established in 2010 to enhance Brands Limited and was and assist a broader range of our community impact It enables in South African society. underprivileged people partnershipsthe group to develop with those disadvantaged we interact most. It is managed by communities with which of trustees that establishes the criteria an independent board and procedures governing resource allocation. Tiger Brands Foundation Tiger From January 2016, the foundation has added 24 schools (translating to roughly 20 000 beneficiaries). It also Practically, the foundation will build the necessary capabilities Practically, to support its objectives. These include specifying, measuring and managing its impact through effective monitoring and evaluation, developing packaged and replicable solutions and enhancing the capacity of key staff. • • • • In 2016, the Tiger Brands Foundation adopted a new In 2016, the Tiger strategy for 2022, aimed at becoming a highly effective, impactful and recognised industry leader in vulnerable child nutrition and wellness, with a sustainable financial position. reach this goal, we will focus on: To • The in-school breakfast feeding programme is funded by a The in-school breakfast feeding programme received from “trickle dividend” equal to 30% of dividends Brands. Given the shareholding in Tiger the foundation’s success of the current feeding programme, the foundation expanded its activities to significantly more schools across the country earlier this year. 68 Tiger Brands Limited Integrated annual report 2016 Our communities district liveinpoverty, while36%experiencehunger– Cape. Asbackground,over50%ofhouseholdsinthis dailyintheLadyFreredistrictofEastern at school breakfast (Tiger Brandsprogramme)andlunch(NSNP) whoreceive evaluated thecombinedimpactonlearners In 2015,theCentreforSocialDevelopmentinAfrica in-school breakfastprogramme. Foundation joinedthisinitiativein2011withthe School NutritionProgrammeorNSNP. TheTiger Brands implemented severalprogrammes,includingtheNational has economically activepopulation,thegovernment and,ultimately,development, abilitytolearn the impactonphysicalandmental Recognising thelong-term children facinghunger. five insecurity at39%–thattranslatesintotwoofevery Caperecordingtheworstprevalenceoffood the Eastern West, Capeprovinces,with CapeandEastern Northern access tofood.TheworstcaseswerefoundintheNorth 18)haveinadequateorseverely (0 to children In SouthAfrica,aroundone-thirdof18 million Adding value tolife

continued • The resultswereunequivocal: nutritional initiativesespeciallyimportant. grantsand suchasgovernment making services • • healthcare system. economically productiveandlessburdenonthe economic benefitsfromahealthierpopulation,more programme maythereforetranslateintolonger-term oftheNSNPandbreakfast that theprotectiveeffects disease.Thestudyindicated type IIdiabetesandheart obesity andnon-communicable(lifestyle)diseasessuchas Childhood obesityisstronglyassociatedwithadult • • • • • of stunting) Very (acause lowlevelsofchildrenbeingunderweight rate of28%) (atsome11%versuscombinednational obese learners and Dramatic reductionintherateofoverweight Learner performance improvedby10% performance Learner breakfast. Highest zeroabsenteeismrateatschoolsproviding

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Non-financial Non-financial and spazas – informal stores mostly in townships). To sustain and spazas – informal townships). To stores mostly in mindset, strong customer relationships and a growth managers work dedicated customer executives and shopper in functional teams to serve each customer and their shoppers directly. 8% 18%

6% 68% SA food market R474 billion* R474

Direct from supplier R28 billion R324 billion Major and branded superettes Trade Intelligence estimate. Changing consumer behaviour and increasing competitive landscape Changing consumer behaviour New mobile platforms improve efficiencies provide insights and at store level Maintained leading market shares in core categories Maintained leading Source: Trade Intelligence: Retail trends 2016 * Our customers are the retailers and wholesalers we Our customers are the retailers and wholesalers segment our major distribute to in South Africa. We customers by channel (ie modern general trade and trade, pharmacy), cash-and-carry by chain (ie major retailers, shops) and by format (including hypermarkets, supermarkets Our approach Challenge Highlights Our customers and consumers and Our customers 70 Tiger Brands Limited Integrated annual report 2016 • • • • strategy include: product areasoftheFMCGmarket.Keyfeaturesour – andhowtosatisfytheirneedsbetterinourspecific Our marketingstrategyisdrivenbyourfocusonconsumers Consumer strategy loyalty, thekeytoourcontinuedsuccess. apositiveconsumerexperiencethatbuildsbrand offering consumer-centric approachaddsvaluetoourcompanyby underpin ourbrandinnovationandmarketingstrategy. This In particular, consumersshapeourbusinessstrategyand our engagementwithbothgroupsofstakeholdersseriously. sustained andprofitablegrowthofourcompany, wetake Given thatsatisfiedcustomersandconsumersensurethe our productsaresoldinover33countriesacrossAfrica. of householdsinSouthAfricauseourproductsdaily, and Our consumersareindividualswhouseourproducts:95% Our customersandconsumers As aresultofthesefactorsandbuildingonourprogresstodate,strategyisbasedfivepriorities: • • • • with customers. by top-linegrowth strategy asmeasured customer andformat Focusing onchannel, • • • • Underpinning theseprioritiesare fourstrategicenablers: brand marketingstrategiestobettersatisfytheirneeds Keeping abreast of key consumer trends and adapting our based onourleadingbrands whereweareabletodriveexpansion – particularly eitherthroughacquisitionorinnovation opportunities, entry Continually evaluatingneworadjacentcategory organic andnewbusinessgrowthplans andinnovationtodriveour Investing inmarketingsupport maintain thenumberoneortwopositioninourcategories The renovationandinnovationofourleadingbrandsto • • • • Growing with Building agrowth cultureincustomerteams. Joint businessplanning Customer ITandinsightsystem customer operationsinthefieldacrossallcategories Harmonising customers and cluster. through thetillbystore share andsales shelf health,market measured byin-store management as and tradecategory generation fieldsales Focusing onnext- reach ingeneral distribution and

Growing trade independent trade. the ways tosupport models andcreative new routetomarket Actively engaging continued Growing in-store • • Key changestotheretaillandscapeinclude: thewaywegotomarketandin-storeexecution. that affect Our operatinglandscapeisundergoingsignificantchanges Customer strategy visibility. optimalcoverageandimprovingin-market determining growth throughfocusandevolvingthedistributormodel, fromSouthAfricabydriving ourexports to strengthen wecurrentlyownintherestofAfrica,and the businesses strategy,In ourinternational andgrow weaimtonurture • • • • • • • • • • • • • • • • • • • • • • consumers Continually strivingtoencouragehealthiereatingbyour An increasinglycrowdedtradingarena premised onaffordability. strategy greater valueformoneythroughaportfolio Given prevailingeconomicconditions,weprovide growth Shifting routetomarket,includingindependentchannel Continued riseoftheprivate-labelbrand Increasingly resilientindependenttrade Sub-channel developmentinretail Focus onmargin The increasingroleofdataandtechnology Retailers operatingforless Targeted collaboration/joint businessplanning Modern tradeexpandingintotherestof Africa. Modern trade feedback. capability gapsand for identifying independent research teams and progression ofour attraction andcareer as measuredbytalent operational capability shopper and Focusing oncustomer, Great place to work growth. market visibilityand coverage andimprove resource tooptimise rate ofsalesystems, capability, dataand management Brands distributor driving theTiger trade modeland repeatable general Leveraging the GROWING IN AFRICA

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cheaper than formal

150 000 value hair sellers, braiders, barbers: costs considered of branded groceries – saving of branded groceries increases to 7% retailers on a • • R36 billion where consumers top up where consumers top review Non-financial Non-financial turnover weekly groceries 30 000 spazarettes 30 000 generating •

Pricing elasticity: determining the minimum, maximum and optimal selling price for a product to generate a favourable return. Immersions: spending time with consumers in their homes to better understand how products are used and their role in daily lives Volumetric/simulated test market studies: volumetric modelling (forecasting) used to aid innovation by simulating real-world consumer purchasing behaviour Use and attitude studies: profiling the consumer to understand patterns of use and attitudes to products and brands Concept testing: testing a product idea or proposition with consumers to gauge appeal and potential Nielsen research tracks product market share by value Nielsen research tracks product market share movement. and volume, distribution, pricing and product Product testing: testing the “likeability” and evaluating the performance of actual products with consumers Brand health gauges the degree of brand recognition, Brand health gauges the degree of brand and how consumers’ likelihood of choosing our products track brands well we satisfy the needs of the market. We the health of across 21 categories and, in most of these, In nearly our brand is far above our nearest competitor. in recent years all categories, we have widened the gap • • • • • • • • • • • • • • In addition, consumer research enables us to identify consumer needs and preferences for current and new products and innovation. This enables us to harness consumer insights that inform the marketing mix accordingly. consumer research projects conducted within our Typical business include: • Consumer insights value consumer insights and invest in ongoing research We surveys health tracker and Nielsen market such as the brand share research: • market Marketing) The informal (Source: Minanawe

R42 billion

annual turnover in

generating 70 000 spazas 70 000 • on daily essentials

200 000 100 000 informal stores There are 300 000 people

South Africa • and The informal economy: employing between 50 000 Kasi-Kos outlets R80 billion in value (informal food vendors) = over • Our consumer services division manages feedback and complaints. Our in-house consumer services centre is the primary channel for this feedback and addresses all complaints and queries on any of our products. Staffed by Brands employees, the call centre aims to answer all Tiger have systems for managing all calls within 30 seconds. We These types of complaints, including food and health safety. are elevated to the appropriate management levels and prioritised. For all consumer complaints, company feedback is given after an investigation and independent analysis When consumer complaints are reported when necessary. we follow up directly with the through the customer, or Incidents that require a recall of the product consumer. further quality checks are reported immediately to the respective quality managers. 2016 overview Customer and consumer engagement in South Africa and Brands engages with customers Tiger our other operating countries using a number of channels. value category talk to our customers about strategy, We chain efficiencies, trading terms, as well as pricing and promotional activities. These engagements take place on regular call cycles as per the industry standard and as requested by trade customers. Complaints are handled directly by the sales and/or manufacturing unit. Our performance three key metrics: is tracked against customer growth, market share and service levels, including set We promotional and pricing activity. on-shelf availability, service are agreed with customers and level targets, which are strengthening consistently perform range. We within this have set a target our ability to track on-shelf availability and of strategic of a 50 basis point improvement on a basket products. 72 Tiger Brands Limited Integrated annual report 2016 populations we serve, we understand the important weunderstandtheimportant populations weserve, ofthe asignificant proportion With malnutritionaffecting orassistance. information access toournutritionistforfurther their lifestyle(www.ewlw.co.za). Consumersalsohave thesystemandincorporatehealthyeatinginto learn about overall health–andwebsite,whereconsumerscan foodchoicesfor featured onproductsthatconstitute better Eat Well, LiveWell systemhasitsownicon–thisis only nutrients fortheday, andthusmakebetterfoodchoices.The GDA tableallowstheconsumertobalancehigh-risk disease, type2diabetes,obesityandsomecancers.The non-communicable andlifestylediseases,suchasheart haveanimpacton notesthefive nutrients that The GDA daily amount(GDA)tableonallTiger Brands’products. the EatWell, LiveWell systemthatincludestheguideline initiate firstSouthAfricancompanyto voluntarily were the choices sothathealthylivingbecomeseasier. In2009,we We arededicatedtohelpingconsumersmakebetterfood health concerns. ofHealthpublic (WHO) andSouthAfricanDepartment broader healthissues,includingWorld HealthOrganization consumers.Weof its monitoradvancesinnutritionand impact Tiger Brandshasonthenutritionandthushealth As aleadingmanufacturer, weare awareofthesignificant Consumer nutritionandfoodsafety consumer needs. technological developmentsthatareusedtobettersatisfy development ensuresweremainabreastofnew OurinvestmentinR&Dandnewproduct and insight. designing newproductsisbasedonthisunderstanding and development(R&D)forrenovatingexistingproductsor and understandingchangingconsumerneeds.Research Tiger Brandscommitssignificantinvestmenttoresearching page 70. incorporated intoourcustomerstrategy, whichison to trackpromotionalinvestments.Thesetrendshavebeen managementtoolsandtheability need forstrongcategory ofgrowingin-store,the independent trade,theimportance our researchincludedtheroleofforeigntradersin develop ourmarketingstrategies.In2016,keytrendsfrom refresh ourbrands,positionpricing,innovateand Theyarevitalinenablingustocontinually opportunities. segmentation modelsandidentifypotentialmarket pinpoint consumerneeds,developproductivemarket We understanding, usetheseinsightstoimprovecategory Our customersandconsumers

continued by industry, includingTiger Brands. outcome ofthisstudyandconsultationrequestsareawaited National Treasury isconductingasocio-economicstudy. The shouldcontinue. ofHealthandindustry Department toaddressobesitybetweenthe existing collaborativeefforts reducing obesity. Assuch,thetaxshouldbewithdrawnand in socio-economic repercussionswithoutasubstantialeffect body,our industry thatataxwouldhavefar-reaching Treasury. Tiger BrandsalsoalignstothestanceofBevSA, Comments onthepolicypaperweresubmittedtoNational fromtheproductlabel. taxed at2,29centsanddetermined gramofsugarinasweetenedbeveragewouldbe every that wereconsidered,itrecommendedamodelwhere Although thepolicypapernotedafewmodelsoftaxation stating thatthetaxwouldaddressobesityinSouthAfrica. proposed taxwaspublishedforcommenton8July2016, implemented inApril2017.Thepolicypaperonthe announced ataxonsugar-sweetenedbeveragestobe 2016,theSouthAfricanministeroffinance In February our commitmenttoimprovingthenutritionofproducts. 2019 deadlineforanevenlowersodiumlevel,reflecting and stockconcentrates).We willworkashardtomeetthe snacks,instantnoodles cereals, processedmeats,savoury categories(bread,breakfast compliance onouraffected health ofSouthAfricansandweworkedhardtoachieve toimprovethe ofgovernment theefforts Brands supports manufacturers hadtoreducesaltbyJune2016.Tiger foodcategories, maximum levelsofsodiumincertain After theSouthAfricanministerofhealthregulated from foodconsumed. are enrichedwithBvitaminsthatassistinreleasingenergy requirements,forexampleJungleEnergybars target certain consumer need.Productsarespecificallydevelopedto and AceInstantwithmicronutrientsthatfulfilaspecific Junglecereals certain breakfast cerealssuchasMorvite, In addition,wevoluntarilyenrichotherproductsincluding B1, B2,B3,B6,B9(folicacid),ironandzinc. with keyvitaminsandminerals.TheseincludevitaminA, such aswheatflour(forbreadmanufacture)andmaizemeal staplefoods In linewithSouthAfricanregulations,wefortify lower-income categories. topeoplein like breadandmaizemeal,particularly responsibility thatcomeswithmanufacturingstaplefoods

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review Non-financial Non-financial Advertising the Advertising self-regulation through Standards Authority. Media research Education and transformation of marketing skills in South Africa Regulatory matters • • • • • labelling regulations and Brands complies to current Tiger continuously engages with government authorities through industry new or amended labelling associations on regulations. are Generally accepted food manufacturing standards is regularly rigorously applied and food safety at all facilities audited by independent assurance providers. Responsible selling responsible advertising Brands is dedicated to Tiger and Advertisingmarketing and committed to upholding the fully comply Standards Authority code on advertising. We with all regulatory on marketing and labelling requirements care and baby for foods, beverages, personal and home products. addressed in All aspects of responsible selling skills are our business units and supported and legal by secretarial services. of Brands Customer School In addition, the Tiger an internal training programme, covers all key Mastery, competencies and skills in a market and customer-related curriculum. • • Commitments for FY17 The retail landscape has changed significantly in recent years due to poor economic growth. As a result, we have had to adapt our approach and engage differently with our customers and consumers. Consumers want additional value from supermarket purchases and we have to ensure that our products, many of which are the preferred consumer choice, are available at all points of purchase at a price that represents value to shoppers. This requires a strong focus on cost efficiency throughout our value chain, appropriate promotional activity in-store, and affordable pricing. As we seek to empower our consumers to make better decisions about their nutritional habits, we aim to form strategic relationships with public sector and non-profit we hope to educate children and partners. Together, consumers on healthy eating habits through effective use system and GDA table. Live Well of the Eat Well, In addition, we subscribe to the consumer goods and consumer goods and we subscribe to the In addition, services industry is enforced by the consumer code, which goods services the Advertising ombudsman, and adhere to that ensures responsible Standards Authority code advertisingto consumers. is a member of the Marketing Association Brands Tiger of South Africa and our executive group marketing serves actively The on the board of this industry body. focuses on: association primarily •

Visit our website link to www.ewlw.co.za Tiger Brands introduced its Eat Well, Live Well system Live Well introduced its Eat Well, Brands Tiger in 2009 to encourage consumers to eat healthier, balanced meals. Products carrying this logo conform to strict nutritional criteria, which are annually and independently reviewed by the Nutrition Information Centre of the University of Stellenbosch. logo and Live Well The quick-reference Eat Well, concise GDA information to instantly enables consumers recognise the healthiest options for their meals. Rice, Jungle Oats products such as Tastic Currently, and some Albany bread variants carry the logo after criteria. Our Live Well conforming to the strict Eat Well, to help nutritionist works closely with product managers them formulate in line with new and existing products the criteria. Live Well For more information on Eat Well, In terms of Consumer Protection Act requirements, we have made the required changes across our business to ensure compliance. These included revising processes for running have also conducted training promotional competitions. We to ensure our personnel are familiar with both the provisions and applications of the act. This included training staff at our existing consumer services unit, which addresses consumer complaints. Consumer regulatory compliance and industry participation Brands ensures a high standard of compliance to Tiger comply with the consumer legislation and codes. We Consumer Protection Act, Foodstuffs, Cosmetics and Disinfectants Act and other laws that ensure consumer protection. Areas of compliance refer to aspects of product labelling, pricing policies, product liability and safety, returns policies, marketing, standard terms and conditions and promotional competitions. 74 Tiger Brands Limited Integrated annual report 2016

Energy –kWh Water –kℓ Packaging –ton Waste –ton Sustainability vision Measure Absolute use Environmental sustainability Challenges Highlights Environment Carbon emissions–CO Production output–ton FY15

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The Tiger Brandssupply Environmental sustainability delivers on: framework,and by this strategy isrepresented chain sustainability • • • • of thisframework. thecoreelements support Ongoing initiatives • • • • ecosystems. and Biodiversity Water use management Resource andwaste Energy consumption 588 382,18 strategy framework 2 474705 127,96 0,0051 16 FY16 0,43 2,32 Improvement é 4,59% 4,59% (5,69%) (5,69%) (7,27%) (7,27%) (6,52%) é é é 0,24

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review Non-financial Non-financial Monitoring and performance measurement of systems. Continuous improvement Waste, water, energy, pollution, recycling, climate pollution, recycling, energy, water, Waste, change management Environmental legal compliance Reporting Responsibilities and accountabilities for environmental management Policies and procedures • • • • • • • • Related training is conducted site by site after changes to the policy and procedures. In addition, training is induction programme, highlighting the part of each site’s requirements and responsibilities, and informing employees how to access policies and documents. • • • • • Environmental management and sustainability committee provides At board level, the risk change and strategic guidance and leadership on climate and environmental issues and oversees the implementation Operational execution revision of the environmental policy. system of the strategy and management of the environmental department.rests with the group manufacturing excellence years ago. Our environmental policy was approved two In it, climate we commit to identifying environmental and forging change risks, taking action to address weaknesses, developing strong relationships with relevant stakeholders, striving for and implementing a sustainability strategy, continuous improvement, and reporting to the board through also commit to set targets, and relevant committees. We measure and report on our environmental scorecard monitor, against key performance The policy is available indicators. website and communicated Brands intranet and on the Tiger internally Our manufacturing to relevant stakeholder forums. training for all and distribution operations conduct policy relevant employees. improving Our environmental strategy is focused on and environmental performancein key areas, shown below, forms priorities in the framework for addressing identified our current organisational and external environment. By improving our environmental and social sustainability performance, we will generate economic benefits for stakeholders. Our environmental control system covers: • In line with our desire for self-regulation, Tiger Brands is a Tiger our desire for self-regulation, In line with the Multilayer Packaging Forum, which founding member of initiatives for multilayer packaging. is developing recycling with government we engage departments that have Finally, and upcoming legislative a bearing on the business discussion forums such as the changes through facilitated Fund for Nature (WWF) and manufacturing Wildlife World industry debates.

Disclose climate change information in mainstream reports as a fiduciary duty. Responsible corporate engagement on climate policy Adopt a science-based emissions reduction target • • • Tiger Brands is a member of the National Business Initiative, Tiger Manufacturing Circle, Business Leadership South Africa, Consumer Goods Council of South Africa, South African Agricultural Processors Association, South African Fruit Export African Fruit Juice Council, South and Vegetable Association and Business Unity South Africa. Through these bodies, we support engagements with government on a variety of issues including environmental legislation and sustainability. We are also working with South Africa’s Council for Africa’s are also working with South We Scientific and Industrial Research (CSIR) on assessments by the National Cleaner Production Centre to enhance manufacturing industry competitiveness through resource efficiency and cleaner production. • • • In addition, the group is a signatory to We Mean Business, Mean Business, In addition, the group is a signatory to We committing to three categories flagged by CDP as most relevant to our business: Each year, Tiger Brands voluntarily discloses its performance Tiger Each year, water under the CDP for carbon emissions and us to benchmark management. This global standard allows our performance against international peers and learn from best practices. Collaborating and engaging with stakeholders requires world more sustainable to a contribute desire to The many levels by understanding, collaboration and action at governments, customers. This drive companies, brands and want to also comes from consumers themselves, who choices. In understand the environmental impacts of their our addition to our initiatives to reduce and manage our participationenvironmental impacts, we have intensified in industry shape sustainable consumption forums to help standards, tools and best practices. We envision sustainable manufacturing as minimising the sustainable manufacturing as minimising envision We operation while business risks inherent in any manufacturing maximising the opportunities arise from improving our that processes and products. Sustainable manufacturing is committed to operating as an Brands Tiger company and our operations environmentally responsible environmental regulations. Managing adhere to all relevant and socially responsible operations in an environmentally – is a business imperative. way – sustainable manufacturing we rely on energy and water As a manufacturing company, quality in particularfor production, and water to is vital safety. product quality and consumer Our approach Environment continued

Environmental sustainability – continuous improvement

Products Offices and plants •• Develop products using sustainably sourced materials Zero emissions • •• Reduce volatile organic compounds Risk management • •• Green procurement Reduce noise pollution • •• Regulate chemical content in products Reduce air emissions • Prevent global warming • •• Small, lighter systems Online metering for recording, monitoring and • •• Save electric power in production process managing utilities (energy, steam system and water) Renewable energy (biofuel, waste-to-energy, solar) •

Continuous improvement

Management systems Communication •• Environmental audits Environmental education • •• Environmental accounting Environmental disclosure (FTSE index • •• Aligned to ISO 50001 CDP energy and water) •• ISO 14001 certification retained

Environmental targets

Integrated annual report 2016 Our performance is shown on page 74. FY16 was the last year of the three-year rolling environmental sustainability targets. These targets were based on the following measures: 76 Target Water Reduce water consumption and water discharges per ton of product produced by 15% Energy Improve energy efficiency by 15% Packaging Reduce packaging use by 9% Waste Reduce waste for disposal by 12% Carbon emissions Ultimately, eliminate emissions and GHG as far as practically possible Tiger Brands Limited Tiger

Environmental targets FY17 to FY20 Energy Waste Improve efficiency by Reduce waste for 15% per year disposal by 10% per annum

Water* Packaging Reduce water Reduce packaging use consumption and discharges per ton of by 10% per year product produced by 15%

Carbon emissions reduction remains a key business deliverable and a scientific target will be developed for the organisation with the assistance of National Business Initiative.

* In the short term, Gauteng municipalities have mandated an immediate 15% month-on-month reduction in water consumption due to water shortages. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 77

review Water management initiatives Water Non-financial Non-financial Online water metering Online water metering enables more accurate reading and understanding of high-consumption areas in the Boksburg facility and our bakery sites, and ensures monthly charges from municipality readings are correct. reuse Water A project to reuse bottle-washer water for external cleaning, preparation areas and all structural cleaning and staff facilities is helping to reduce water use. Packaging Packaging plays a vital role in delivering products to our consumers in a way that preserves the integrity of the product and protects consumers’ health and safety. themselves. In addition, given that most of our products are most of our products In addition, given that themselves. water quality in turnfor human consumption, affects the these products. quality and safety of as a water-stressed region, which South Africa is classified to both a risk and critical elevates water management several initiatives have Brands. We success factor for Tiger including the our direct use of water, under way to improve and grey water at some facilities possible use of recycled that have reduced the volume of and water-saving schemes each year. municipal water used from municipal sources, and we Most of our water comes reliability by monitor consumption, water availability and also We river basin and water management area source. and interact with the government, Department of Trade municipalities and water boards. This enables the Industry, group to influence legislation, build partnerships in the industry and to learn from organisations using sustainable best practices that we can apply to internal processes. recognise our responsibility to promote responsible We to encourage our water use throughout our operations, and have focused on enhancing suppliers to do the same. We agricultural water efficiency with suppliers, programmes as tomatoes, specifically for water-intensive crops, such beans, fruits and sugarcane. participated Brands again In 2016, Tiger in the CDP’s – and furtherwater disclosure programme. Our response – is available detail on our approach to water stewardship on our website. are committed to using water efficiently across our We not compromise operations and ensuring our operations do conduct water We local communities’ right to water. resource reviews across existing and new factory sites and focus our interventions in priority watersheds.

Department of Environmental Affairs: notification that companies will need to submit a five-year pollution While this prevention plan for approval by the minister. regulation has not yet been legislated, we are proactively developing a draft plan given the proposed three-month window between promulgation and submission to the This change in legislation will also require minister. companies to submit annual progress reports on their approved plans. Department of Minerals and Energy: companies have to submit five-year energy reduction plans Secondary targets or activities that measure indicators: may be relate to a gap analysis or benchmark. These used to improve primary measure indicators. Primary readily available measures measure indicators: to track current performance • • • • Water in Global water scarcity is expected to increase substantially coming decades. In South Africa, this trend is likely to affect cost and quality of water – a critical input in the availability, use water to process our manufacturing processes. We products and as a key ingredient in many products • Legislative developments During the review period, we began preparing for unanticipated legislative changes in South Africa: • 2016 overview Our environmental performance in 2016 was a mix of significantly improved our challenges and successes. We efficiencyuse of packaging and waste, while the energy constant. and carbon intensity of our operations was Our manufacturing sites submit monthly performance data They also on these environmental scorecard indicators. provide air emissions testing reports from boilers, ventilation carbon dioxide areas, dust, noise, carbon monoxide and levels. • • As we pursue our key targets, we measure indicators as two As we pursue our key targets, we measure categories: Subsequently, ISO 14001 has been amended in line with ISO 14001 Subsequently, new high-level structure for ISO Annex SL, which is the deadline management system standards. The transition to meet and the new standard is September 2018, implemented. appropriate plans are being considered and Our primary certification in our manufacturing process global ISO 14001 standards. operations is the stringent At year African sites were certified. end, 95% of South While our primaryWhile our aspects five most material focus is on the packaging, energy, strategy (water, of our environmental our manufacturing operations waste and carbon emissions), from boilers, ventilation areas, also test air emissions carbon monoxide and carbon dioxide disposed dust, noise, levels in line with legislation. Environment continued

Over recent years, the cost of raw materials has escalated agricultural sector on which we rely, and in our significantly. This has affected the costs of packaging and manufacturing operations. motivated more efficient and sustainable packaging management. Extraction, location and processing can also The diverse sources of GHG emissions include: contribute significantly to carbon emissions and the overall •• Direct emissions from sources owned or controlled by the footprint of a product. Where possible, by lightweighting group (scope 1) our packaging (a complex research process to ensure that •• Indirect emissions from generating electricity, heating and lighter materials will achieve the same product protection cooling, or steam generated off-site but purchased by the goals), we are significantly reducing carbon emissions and group (scope 2) costs, while directly improving the lifecycle assessment of •• Indirect emissions (not included in scope 2) from sources products (see page 79). not owned or directly controlled by the group but related to our activities (scope 3). Waste Waste management is important to Tiger Brands because, As part of raising awareness in our operations, last year we when done successfully, it can reduce input costs, lower appointed champions in manufacturing units with the highest the cost of waste disposal and improve our standing as impact on carbon emissions and water use. a good corporate citizen. In our operations, most waste is generated either in our manufacturing processes or as We also enrolled engineering managers, site services a by-product of these processes. (utilities) managers and technical/artisan employees in national cleaner production training offered by the CSIR. Globally, waste management practices differ between This includes courses on energy management systems, and developed and developing nations, urban and rural areas, system optimisation for fans, compressed air and steam. and residential and industrial producers. Consequently, while Attendees have now launched focused optimisation projects our standards are influenced by the South African regulatory at their individual business units. environment, we always consider local conditions and that

Integrated annual report 2016 regulatory environment when applying our standards. In addition, we participate in the National Cleaner Production Centre programme aimed at introducing Our ambition is to send zero waste to landfill and to build cleaner production processes through partnerships, 78 a culture of waste segregation. To achieve these goals, we advocacy, technology transfers, tools and capacity are focused on reducing, reusing and recycling waste building. Multiple assessments were conducted across a generated in our production processes. When all reasonable number of manufacturing facilities during the year and options have been exhausted to realise this, we ensure that recommendations are being implemented. any remaining wastes are disposed of responsibly. We do not currently produce any hazardous waste. Measuring energy consumption alone is not an accurate measure of improvement because, as the group grows, our Energy and carbon emissions consumption requirements and patterns change. To ensure Tiger Brands Limited Tiger Energy is at the core of any manufacturing process, and improvements and GHG reductions, we focus on energy reducing the energy intensity of our operations is a critical and emissions intensity, which shows the reduction in the element of our response to climate change. In addition, ratio of energy consumed or emissions produced per ton of South Africa faces a period of energy shortage, and smart product produced. If we are successful, despite a growing energy management is now strategically important. business, our intensity levels should decline.

Tiger Brands has identified the climate change risks with the The group’s scope 1, 2 and 3 emissions for the year greatest potential to affect the company and consolidated are shown below. The data covers our South African these into our top risks for mitigation and action as part of manufacturing sites, in line with our strategy to initially our internal risk processes (see the risk management section focus on these operations and extend the programme to starting on page 102). Among these climate change-linked international operations in the rest of Africa over the next risks are the availability of water, an essential input for the three to five years.

2016 Change (%) 2015 Change (%) 2014 Direct GHG emissions (scope 1) 253 909 (1,7) 258 392 (0,17) 258 834 Electricity indirect GHG emissions (scope 2) 326 159 1,5 321 439 11,4 288 515 Other indirect GHG emissions (scope 3)* 31 519 343 7 099 2 599 263

CO2e (tons) 588 382 0,2 587 047 7,2 547 611

Carbon intensity (tons CO2e/ton of product produced) 0,24 0,02 0,22 – 0,22 * In 2014, scope 3 emissions were limited to air travel. In 2015, we expanded our reporting to include elements of our road logistics network. In 2016, the reporting was expanded further to include our broader logistics network making year-on-year comparison difficult. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 79 review

Non-financial Non-financial report plans for any and must develop appropriate indicated deviations. accurate impartial Brands prides itself on Tiger emissions servicetesting at our manufacturing facilities – our providers also compile atmospheric emissions reports under the as our requirements of the Air Quality Act, as well To the business, the aim of air quality specifications. the environment management is to protect public health and from the damaging effects and to eliminate of air pollution, or minimise human exposure to hazardous pollutants. In terms of our environmental control system, boiler stack emissions are measured at all business units that operate boilers, although only two of our boilers fall under amended legislation (November 2013, controlled emitters). We measure sulphur dioxide, nitrous oxide, carbon dioxide and particulate matter (soot) to ensure legal compliance. Independent annual performance audits are conducted at all business units to monitor compliance levels. Commitments for FY17 In 2016, we continued to work with our suppliers on lifecycle assessments to reduce the environmental impact of we will be looking at the overall our products. In particular, impact of cocoa, a key ingredient for our snacks & treats businesses. Furthermore, we will partner with our small and medium suppliers to help them align with ISO 14001. This will include third-party packaging and ingredients suppliers. At the same time, we hope to sustain and build on our own ISO 14001 certifications.

e above the 2

Visit our website

The cocoa LCA report This study found that soil erosion due to lack of crop rotation, fertilisation was finalised. and focus areas. The LCA was not focused on the chocolate production pesticides were the key environmental sustainability for identifying any internalprocess and this would be the next focus area GHG emission reduction opportunities the industryA bread LCA review using existing data from is under way and expected to be finalised in FY17. Compiling an inventory material inputs and environmental releases of relevant energy and of identified inputs and releases Evaluating potential impacts to help make a more informedInterpreting the results decision. • • • • • The effect on suppliers that may be directly liable to pay the carbon tax and seek to pass on these costs. The extent of our potential liability, taking into account The extent of our potential liability, proposed tax-free thresholds In FY15, we completed LCAs for KOO Baked Beans and All Gold Tomato Sauce (750mℓ and squeeze bottle). As a result, Sauce (750mℓ and squeeze bottle). Tomato LCAs for KOO Baked Beans and All Gold In FY15, we completed possible, and sourced and trialled an alternativewe have changed glass packaging where the can – all of which reduces amount of input materials required. In the review period, two further were commissioned: LCAs • • Lifecycle assessment grave life from cradle to of all stages of a product’s (LCA) evaluates the environmental impacts The lifecycle assessment (ie from and distribution, use, repair and maintenance, through materials processing, manufacture, raw material extraction environmental concerns They help prevent a narrow outlook on disposal or recycling). by: • • • • • Carbon tax tax, we continue Given the imminent introduction of carbon to engage extensively with external parties to establish holistic, practical and affordable on how to reduce solutions framework, and our carbon emissions. With the published proposed carbon tax at R120 per ton of CO We have participated in the carbon disclosure project (run We – and furtherby CDP) annually since 2010. Our response detail on our carbon approach and performance – is available on our website. From every test and analysis conducted on atmospheric air our manufacturing operations receive a detailed quality, Other emissions legislative requirements are committed to exceeding We on air emissions and will continue to find practical and cost-effective solutions to reduce or eliminate all forms of air emissions. In addition to addressing our own emissions, we are encouraging suppliers to improve the fuel efficiency of their operations and reduce their GHG emissions. • • To ensure we are adequately prepared, we are To considering: suggested thresholds, the expected impact to the business is substantial. 80 Tiger Brands Limited Integrated annual report 2016

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tons 7 500 review Governance sources KOO of sweetcorn per year from established farmers with decades of experience and expertise.

82 Tiger Brands Limited Integrated annual report 2016 Governance review Governance structure Governance for inappropriateandwrongfulbehaviour, wherenecessary. has beenadopted,settingoutappropriateconsequences approachtowardsfraudandcorruption A zero-tolerance guidancetoemployees. policies toprovidethenecessary intoseparate andcorruptionwereformulated and bribery behaviours andconductdealingwithconflictofinterest requirements andregulations.Duringtheyear, acceptable mandates allemployeestostrictlycomplywithrelevantlegal Tiger Brands’codeofethics,availableonourwebsite, interests ofallstakeholdersaresafeguarded. ofthegrouphavebeenconductedtoensure The affairs work plans. each meetingincludeintegratedresponsibilitiesfromannual adopted atthebeginningoffinancialyear. Agendasfor as wellannualworkplanswerereviewed,revisedand recommendations ofKingIII,boardandcommitteecharters bestpractice.Inlinewiththe as wellindustry changes to amplifyalignmentwithlegislativeandregulatory processeshavebeenreviewedandreinforced Governance Companies ActNo71of2008inthereviewperiod. the JSEListingsRequirements,andrequirementsof principlesinKingIII, The boardhasappliedthegovernance detailed registerisonourwebsite. The grouphasappliedtheprinciplesofKingIII,anda in whichitoperatestounderpinitssustainability. landscape the groupcomplieswithdynamicregulatory Executive andseniormanagementassisttheboardtoensure corporategovernance. through effective The Tiger Brandsboardofdirectorsiscommittedtointegrity Shareholders Regulators Board Social, ethicsand Audit committee Risk committee transformation Remuneration Nominations Investment committee committee committee committee

committee Executive and 12. Biographical detailsofalldirectorsappearonpages11 including strategy, financeandcompliance. The boardexercisesfullcontroloversignificantmatters non-executive directors. judgementofany withtheimpartial materially interfere or otherrelationshipwithinthecurrentstructurethatcould survey,independent boardeffectiveness thereisnobusiness decisions. Intheboard’s opinion,andastestedbythe or influenceovertheboard,whichallowsforparticipative individual directorhasunfetteredpowersofdecision-making responsibilities andauthorityatboardlevel,provingthatno ofreferenceshowthecleardivision The boardterms company’s structure. corporategovernance divisionofauthoritybetweenvariousrolesinthe a clear havebeenclearlydefinedandareseparatewith officer andchiefexecutive The responsibilitiesofthechairman Companies Actprovisionsrelatingtotheirremoval. at thecompany’s annual general meeting(AGM)andto Directors areappointed,subjecttore-electionbyshareholders bytheboard,whicharereviewedannually.determined process asprescribedbythepolicyandprocedures andtransparent appointments totheboardfollowaformal 3.84 oftheJSEListingsRequirements,ensuresall The nominationscommittee,incompliancewithsection including threeexecutivedirectors. At 30September2016,theboardcomprised13directors, right intheperiodunderreview. required infulfillingtheirduties.Nodirectorexercisedthis oftheboard),as (after consultingwiththechairman independent professionaladvice,atthecompany’s expense group companysecretary. Directorsarealsoentitledtoseek ofthe andaccesstotheadviceservices information, Directors haveunrestrictedaccesstoallcompany oversight ofsignificantstrategicandoperationalmatters. structuresinTigerThe governance Brandsensureproper of referenceandreviewedannuallybytheboard. responsibilities ofeachboardcommitteearesetoutinterms leadership andthevaluesofTiger Brands.Therolesand inamannerthatisconsistentwithethical are managed oversight roleandensuretheactivitiesofcompany bycommitteesthathavean The boardissupported inaresponsible,fairandtransparentmanner.Tiger Brands of The boardhasdirectedandcontrolledtheaffairs

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board and Tiger Brands operate. Specific time has been operate. Specific Brands Tiger board and plan for this purpose. annual allocated in the board’s a formalAll new directors complete induction programme meeting minutes and relevant which includes past board guidance on their responsibilities as prior-reading material, of manufacturing site visits well as a rigorous programme trade to enhance their understanding and visits to the retail Brands and the environment in which it operates. of Tiger the board approved the strategy and In the review period, Material issues on financial year. budget for the 2016 executing strategy were considered. financial The board approved the interim and year-end results and the 2016 integrated annual report and is satisfied it has discharged its duties in terms of the and its Companies Act, the JSE Listings Requirements terms of reference. the board, through the During the year under review, nominations committee, conducted an independence assessment of directors in office longer than nine years for independence. and were satisfied that they retained their skill set of theThe nominations committee also reviewed the capability to deliverboard to ensure that it reflects the required the long-term was decided that the objectives of the group. It in FY17. composition of the board would be amended e nine years = 2 3 Executive directors

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Director development will form part of the 2017 board of the business, agenda to create an evolving understanding governance in which the and compliance environment The directors recognise their fiduciary duty to exercise due members of the care and skill in fulfilling their mandate as the best interest board. In doing so, they ensure they act in and do not derive any profit Brands at all times, of Tiger from their fiduciary with the group. relationship The code of ethics, board termsThe code of ethics, board of reference and various policies prescribe how directors should Brands Tiger includes guidance on the vigilance conduct themselves. This their own required to ensure no conflicts arise between Members are required Brands. interests and those of Tiger at the startto disclose all potential conflicts of interest of every meeting and, once disclosure board and committee is made, Act is the process prescribed by the Companies followed. This includes recusal from that part of the meeting is discussed. when a matter that is the subject of a conflict The nominations committee ensures that the board’s ensures that the board’s The nominations committee demographic and gender diversity composition reflects and the skills and expertise. appropriate mix of Non-executive directors bring a diverse range of skills and diverse range of skills directors bring a Non-executive and it is their responsibility to experience to the board is exercised freely and ensure their judgement independently. 84 Tiger Brands Limited Integrated annual report 2016 effectively dealtwithbytheboard anditscommittees.Inthe effectively all relevantaspectsofthecompany’s businesswere run,andthat meetings werewellorganisedandefficiently the boardwaswellbalanced.Thedirectorsbelieve indicated thatcoreboardprocesseswereworkingwelland Theresults on theboardorcommitteeperformance. evaluations foundnosignificantmattersormaterialconcerns andapeer-to-peerevaluation.The and thechairman, assessment oftheboarditself,anappraisalitscommittees evaluationincludedaneffectiveness The 2016external Board evaluation andotherdirectors. use todiscussissueswiththechairman boardmeetingwhichnon-executivedirectorscan of every the board.Thereisaclosed-sessionagendaitematend There isanappropriatebalanceofpowerandauthorityon Board balance matters. of these remains ultimatelyaccountablefortheproperexecution functionstoitscommittees,theboard delegating certain their remitasdictatedbyannualworkplans.Despite totheboardonmaterialaspectsof The committeesreport responsibilities tothecommittees. board,whichdoesnotabdicateanyofits with the Ultimateaccountabilityandresponsibilityrests its duties. These committeesassisttheboardindischargingof Board committees direction ofthecompanyasapprovedbyboard. responsible foroverseeingexecutionofthestrategic totheboard.Heis reports The chiefexecutiveofficer Chief executiveofficer of the board. operation principallyresponsiblefortheeffective who is isanindependentnon-executivedirector The chairman Chairman powers inlinewiththisframework. executive officer, delegatessomeofthese whointurn ofthecompanytochief to runtheday-to-dayaffairs decentralised environment.Theboarddelegatesthepower thecompanyisoptimallymanagedina to ensure reviewed annually, providesanapprovalframework Tiger Brands’delegationofauthoritypolicy, whichis Delegation ofauthority Accountability andresponsibility Governance review

continued re-election. their 2017,theboardsupports inFebruary the AGM ofalldirectorsstandingforelectionat performance totheboard.Afterconsidering isreported and this standing forre-electionattheAGMwellinadvance reviewsalldirectors The nominationscommitteeinformally recommendations fromthesurvey. enrichment an actionplantoaligncertain spirit ofcontinuousimprovement,theboardisdeveloping closed periods. tradinginsecuritiesduringthecompany’srestricted from are employees, whoareshareschemeparticipants, Tigerexposed toprice-sensitiveinformation. Brands securities. Thishasbeenextendedtoemployeeswhoare todealincompany written authorisationfromthechairman mustobtainprior Directors andthecompanysecretary company’s securities. follow beforethey, oranyoftheirassociates,dealinthe adopted apolicythatsetsouttheproceduredirectorsmust In linewiththeJSEListingsRequirements,Tiger Brandshas Dealing insecurities compliance. and requirements,facilitatecontrolsthatwillensure changes regulatory businessofmaterialandpertinent inform environmenttoidentifyapplicablelegislation, external The compliancefunctionhasscaleduptoscreenthe codeofethicsandvalues detailedonpage54. Tiger Brands emanatesfromthe period. Theapproachtogovernance legislative compliancewasakeyareaoffocusinthereview promulgationsandamendments, quantum ofregulatory associated accountabilitytoallstakeholders.Giventhe its operations,andits frameworkaffecting the regulatory ofcomplying with Tiger Brandsacknowledgestheimportance Legal compliance and91. pages 90 ison policies andpractices.Thecommitteereport ethical,safety,transformation, healthandenvironmental remit includeshumancapital,theextentofcompany’s directlytotheboard.Its three timesperyearandreports committeeconvenes The social,ethicsandtransformation Sustainability matters

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sustainability – – – – – – – 4 2/2 1/1 4/4 4/4 4/4 4/4 4/4 resigned as chief financial officer on 31 July 2016, and Noel Doyle was appointed in that capacity on the same date. Noel has been chief operating officer of the company since 13 July 2015 and served as an interim chief executive officer from 1 January to 9 May 2016. which is reviewed annually, and the directors confirm and that annually, which is reviewed in line with these termsall committees have functioned of committees are chaired All board year. reference during the directors. by independent non-executive times at scheduled meetings in FY16. It The board met eight met once every quarter a strategy meeting in July and held It also direction of the company. to approve the strategic and held two extraordinarymet to approve the budget of attendance at board Details meetings during the year. are shown below: and committee meetings Nominations

– – – – – – – 4 2/2 1/1 4/4 4/4 4/4 4/4 4/4 Remuneration – – – – – – –

2/2 2/2 3/3 4/4 4/4 4/4 4/4 4/4 Audit 8 4/4 3/3 6/6 8/8 8/8 8/8 8/8 7/8 7/8 8/8 8/8 8/8 8/8 7/8 7/8 Board 2 3 1 Appointed 10 May 2016. Resigned effective 31 July 2016. Resigned effective 31 December 2015.

Appointment and resignation of directors Peter Matlare resigned as chief executive officer, effective 31 December 2015, after eight years. Lawrence Brands as chief executive officer, Mac Dougall joined Tiger effective 10 May 2016. Olufunke (Funke) Ighodaro 2 3 1 Board and committee structure Board and committee specific functions to committees The board has delegated to assist responsibilities. Every it in meeting its oversight committee has terms of reference and an annual work plan, For increased effectiveness,For increased function the legal compliance risk assurance providers and legal collaborates with other the governance In implementing firms where necessary. approach is adopted. In addition, framework, a risk-based complies with all mandatory Brands Tiger industry In codes. terms of non-mandatory industry adopts Brands codes, Tiger governancethose that enhance good and effectiveness. Number of meetings NP Doyle O Ighodaro AC Parker CFH Vaux MO Ajukwu PB Matlare SL Botha MJ Bowman M Makanjee KDK Mokhele RD Nisbet MP Nyama BL Sibiya YGH Suleman LC Mac Dougall 86 Tiger Brands Limited Integrated annual report 2016 both company and individual performance. Reaching both companyandindividualperformance. dependsonperformance; asubstantialportion to ensure among others.Thetotalrewardofexecutivesisdesigned implementation ofthegroup’s remunerationphilosophy, The committeeisresponsibleforthedevelopmentand appropriate times. attend meetingsbyinvitationbutexcusethemselvesatthe membersofmanagement andcertain chief executiveofficer This committeecomprisesonlynon-executivedirectors.The Remuneration committee page 102. on canbefoundstarting The riskmanagementreport structures andprocessesinplaceatTiger Brands. complianceandriskmanagement adequacy ofgovernance, the auditcommitteeinfinancialyear. Itissatisfiedofthe to ofreferenceandhasadequatelyreported per itsterms The committeeissatisfiedithasfulfilleditsresponsibilityas • • • • assisting theboardinensuringthat: The functionsoftheriskand sustainability committee includes boardeachyear.work plan,whichisreviewedby the ofreferenceandanannual committee operatesagainstterms management processandmonitoredcontinuously. The group’slaws andregulationsisintegralto the risk processes.Compliancewithrelevant assessment andinternal there isadequateoversightofTiger Brands’ownrisk managed,andthat are identified,evaluatedandeffectively committee isresponsibleforensuringthatallsignificantrisks compliance andriskmanagementresponsibilities.The (fromariskandcontrolperspective), fulfilling itsgovernance The riskandsustainabilitycommitteeassiststheboardin Risk andsustainabilitycommittee The committee’s isonpages87to89. report Audit committee Board committees Governance review • • • • Disclosure onriskiscomprehensive,timelyandrelevant. by management address keyrisksisappropriatelydefinedandresolved faces aremonitoredandreviewedtheresponseto The overallriskprofileandsignificantrisks TigerBrands maintained andimproved processes andactivitiesarecontinuouslymonitored, ofriskmanagement The maturityandeffectiveness achieve itsstrategicobjectives plan forriskmanagementthatwillenhanceitsabilityto policyand The companyhasimplementedaneffective

continued • including: consider andmakerecommendationsonspecificmatters, The committeeisresponsibleforandhastheauthorityto incentiveawards. the vestingoftheirlong-term bonusesand eligibility ofexecutivesforannualperformance the appropriate individualandgrouptargetsgoverns • • • • • • • • review period. ofreferenceforthe responsibilities inlinewithitsterms Thecommitteeissatisfiedithasfulfilled its by invitation. attendsmeetings the board.Thechiefexecutiveofficer of non-executive directorsandischairedbythechairman board’sin the composition.Thecommitteecomprisesonly experience andtheneedtoensurediversitybalance candidatesforvacanciesbasedonskill, and recommends The nominationscommitteeconsidersboardsuccession Nominations committee to 101. canbe found onpages92 The remunerationreport views onremunerationpoliciesandtheirimplementation. AGM.Thisvoteenablesshareholderstoexpresstheir at the vote be tabledtoshareholdersforanon-bindingadvisory recommendations, thecompany’s remunerationpolicywill ofreferencefortheyear.line withitsterms AsperKingIII The committeeissatisfiedithasfulfilleditsresponsibilitiesin • • • • • • • • • • • advisory votebyshareholders advisory policy tobetabledateachAGMforanon-binding andapprovingthegeneralremuneration Determining the company’s integratedannualreport forinclusionin Preparing anannualremunerationreport directors andmembersoftheexecutivecommittee Developing theremunerationstrategyforexecutive strong link with performance ismaintained strong linkwithperformance and reviewstheincentiveplansregularlytoensurea It setsannualtargets,monitorsprogresstowardstargets incentiveplansforboardapproval. Developing short-term It regularly reviewsthestructureoftheseschemes hurdles, aswellguidelinesforannualallocations. approval. Itsetsindividualandgroupperformance incentiveschemesforboard Developing long-term performance drivers for short-term and long-term incentives andlong-term driversforshort-term performance Developing, monitoringandtestingappropriate schemes andincreasestoensuretheseareappropriate and executivecommitteemembersincludingincentive Individual remunerationpackagesforexecutivedirectors approval byshareholdersattheAGM its committees.Proposalsaremadetotheboardforfinal Remuneration ofnon-executivedirectorstheboardand Succession planning Human capitalimperatives.

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Considered the appropriateness of accounting policies adopted and any changes Considered accounting treatments, significant unusual transactions and accounting judgements Ensured the annual financial statements fairly present the financial position of the company and group at the end of the financial year and the results of operations and cash on and considered the basis flows for that financial year, which the company and group were determined to be a going concern Examined and reviewed the interim and annual financial statements, as well as all financial information disclosed to the public prior to submission to and approval by the board Reviewed compliance with the financial conditions of loan covenants and determined that the capital and debt facilities of the group are adequate Criteria specified for independence by the Independent Criteria specified for independence by the Regulatory and international Board for Auditors regulatory bodies. Confirmed the going concern requirement as the basis of preparing interim and annual financial statements The auditor’s independence was not prejudiced by The auditor’s any previous appointment as auditor The auditor’s independence was not impaired by any The auditor’s advisory or other work undertaken consultancy, The auditor does not, except as external auditor or in rendering permitted non-audit services, receive any remuneration or other benefit from the company Nominated the external auditor and designated for the company. independent auditor Inc to the audit Representations made by Ernst & Young committee Considered whether any reportableConsidered whether irregularities were identified and reported by the external auditor in terms of Act 26 of 2005, and determinedthe Auditing Profession that there were none Obtained assurances from the externalObtained assurances auditor that records were being maintained adequate accounting Determined servicesextent of all non-audit the nature and provided by the external auditor and pre-approved all non-audit services to be undertaken • • • • • • • • • • • • • • • • • • • • • Financial statements committee: In respect of the financial statements, the • • • • • Independence of the external auditor Young Inc is The audit committee is satisfied that Ernst & the following independent of the group after considering factors: • • • •

Considered the reports of the external auditor on the systems of internal control, including financial group’s controls Obtained an annual written statement from the auditor that its independence was not impaired Reviewed the audit, evaluated the effectiveness of the auditor and its independence, and evaluated the external internal quality control procedures auditor’s Approved the external audit engagement letter, plan and plan Approved the external audit engagement letter, Fees budgeted audit fees payable to the external auditor. paid to the auditor are detailed in note 4.1 of the group annual financial statements Yunus Suleman. Yunus Inc to shareholders for Nominated Ernst & Young Kinnear and Warren appointment as the external auditor, for the financial year ended as the designated auditor, 30 September 2016. It ensured that the appointment complied with all applicable legal and regulatory requirements, and that the auditor and designated auditor are accredited by the JSE Limited Khotso Mokhele Rob Nisbet (chairman) • • • • • • • • • • • Biographical details of committee members appear on Biographical details of committee members members are pages 11 and 12. Fees paid to committee outlined in the remuneration report on page 101. • • • The year under review External audit The committee, among other matters: • • The chairmannot the chairman of the audit committee is of the board. The following directors served on the committee in FY16: Structure non-executive The committee comprises three independent directors. The committee has executed its duties and responsibilities The committee has executed in line with its termsfor the review period of reference internal accounting, control, external relating to the group’s reportingauditing and financial practices. This report appointed for the audit committee is provided by with the Companies Act 71 of 2008, FY16 in compliance operation is guided by as amended. The committee’s a detailed charterinformed by the Companies Act and King III,the board. and approved by Audit committee report committee Audit 88 Tiger Brands Limited Integrated annual report 2016 • • relevant toitsfunctions,thecommittee: technology ofriskmanagementandinformation In terms • • • • • • audit, thecommittee: audit,includingforensic controlsandinternal For internal audit controlsandinternal Internal • • • • • Audit committeereport • • • • • • • • • • • • • recommendations oftheriskandsustainabilitycommittee. Considered andreviewedthefindings assessment,andfoundthemsound the goingconcern and technology risksastheyrelatetofinancialreporting management, includingfraudrisksandinformation Reviewed thegroup’s policiesonriskassessmentand addressed bymanagement. the periodthathavenotbeenaddressedorarebeing financialcontrolsduring ofinternal operating effectiveness were anymaterialbreakdownsinthedesignand ithasnoreasontobelievethere The committeeconfirms and founditsatisfactory auditfunction oftheinternal Assessed theperformance andforensicauditfindings response tosignificantinternal audit processesandtheadequacyofcorrectiveactionin andforensic Reviewed significantissuesraisedbyinternal safeguarded assetsagainstunauthoriseduseordisposal records weremaintainedandthatthesystems Received assurancethatproperandadequateaccounting controlsystems internal business riskmanagementandmaintainingeffective controlincludingfinancialcontrols, systems ofinternal auditoronthegroup’s oftheinternal Considered reports function andcompliancewithitscharter audit oftheinternal andperformance effectiveness annual auditplanandevaluatedtheindependence, and auditcharter Reviewed andapprovedtheinternal auditors. fromtheinternal Received andconsideredreports to review anddiscusstheannualfinancialstatements audit Met separatelywithmanagementandexternal material impactonthefinancialstatements significant legalandtaxmattersthatcouldhavea Considered anyproblemsidentifiedandreviewed statements signedbymanagement Reviewed therepresentationletterongroupfinancial auditor’sReviewed theexternal auditreport

continued • In respectofsustainabilityissues,thecommittee: • committee: these mayhaveanimpactonthefinancialstatements, requirements,totheextentthat For legalandregulatory • • • address allsignificantfinancialrisksfacingthebusiness. auditorsandconcludedthesewereadequateto internal and reviewed theplansandworkoutputsofexternal ofcoordinatingassuranceactivities,thecommittee In terms • Biographical detailsappearonpage13. andconcludedthesewereappropriate. company secretary experience ofThiroshneeNaidootoholdtheposition committee consideredthecompetence,qualificationsand ofsection3.84theJSEListingsRequirements, the In terms Company secretary appear onpage12. concluded thesewereappropriate.Biographicaldetails experience ofthechieffinancialofficer, NoelDoyle,and resourcesand The committeealsoconsideredtheexpertise, andexperience expertise Chief financialofficer • • • • • • and sustainabilitycommittee Considered thefindingsandrecommendationsofrisk have amaterialimpactonthegroup Reviewed, withmanagement,legalmattersthatcould and donotconflictwithfinancialinformation. assurancesthatmaterialdisclosuresarereliable necessary management. Throughthisprocess,ithasreceivedthe assurance, andmadeappropriateenquiriesfrom Met withseniormanagementtoconsiderfindingson responsibilities to ensure compliancewithlegalandregulatory ofthegroup’sadequacy andeffectiveness procedures Reviewed, withthecompany’s counsel,the internal questionable accountingorauditingmatters statements, potentialviolationsofthelawand accountingcontrols,contentsofthefinancial internal audit, onaccountingmatters,internal Monitored concerns and regulatory requirements. and regulatory auditoroncompliancewithlegal auditor andexternal providedbymanagement,internal Considered reports

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22 November 2016 Robert Nisbet Chairman On behalf of the committee Having achieved its objectives, the audit committee Having achieved its objectives, the audit and recommended the annual financial statements integrated annual report for approval by the board. The board has since approved the annual financial statements and integrated annual report 2016, which will be open for discussion at the upcoming annual general meeting. Following its review of the annual financial statements of Following its review of the annual financial ended 30 September Brands Limited for the year Tiger material respects, 2016, the committee believes that, in all of the Companies these comply with the relevant provisions and Act and IFRS and fairly present the consolidated at that date separate financial position of the company and the for that year. results of its operations and cash flows integrity of the The committee has also satisfied itself of the remainder of this integrated annual report 2016. Annual financial statements The committee confirms secretary that the company length relationship with the board and maintains an arm’s secretarydirectors, taking into account that the company is not to any a director of the company and is not related of the directors. The company secretary for ensuring the is also responsible of proceedings and matters relating proper administration to the and shareholders in line with board, the company and procedures. She is also applicable legislation training and induction, as well as responsible for director the annual board evaluation. All directors have unlimited access to the services have unlimited access All directors of the the board for who is responsible to company secretary, governanceensuring proper corporate principles are applied. 90 Tiger Brands Limited Integrated annual report 2016 Membership andattendance remit. were revisedandupdatedtooutlineitscomprehensive During thereviewperiod,committee’s ofreference terms labour andemploymentissues. management, issuesmanagementasapplicable,and public safety, consumer-relatedmatters,stakeholder ethics, goodcorporatecitizenship,environment,healthand board onsocialandeconomicdevelopment,sustainability, discharging itsdutiesandmakesrecommendationstothe As acommitteeoftheboard,itassistsboardin annually attheAGM. onthistoshareholders members ofthepublic,andtoreport consumers, employees,communities,shareholdersand a positiveimpactonitsmanystakeholdersincluding corporate citizenshipbyensuringthegroup’s activitieshave Its purposeistodrivetheTiger Brandsapproachtogood ofreference. challenges asperitsterms guide Tiger Brands’approachtosocialandethics-related by developingandreviewingpoliciespracticesto the companyconductsitsbusinesssustainablyandethically Together withtheriskandsustainabilitycommittee,itensures 2011. ItsactivitiesarealsoguidedbyKingIII. 2008 andregulation43oftheCompaniesRegulations ofsections72(4)and(5)theCompaniesAct in terms company anditssubsidiaries,thecommitteefulfilsduties committeeofthe Asastatutory performance. transformation the CEOisheldaccountableforcompany’s ethicsand managementtothiscommittee,throughwhich transformation The boarddelegatesoversightofthecompany’s ethicsand Terms ofengagement Social, ethicsandtransformationcommitteereport Lawrence MacDougall Makhup Nyama Bheki Sibiya Maya Makanjee Member CEO member,Ex officio director Non-executive director non-executive Tiger Brandsboard, Deputy chairof director Chair, non-executive Designation

Attendance 1/1 3/3 3/3 3/3 • For thereviewperiod,committee: is tabledanddiscussedatmeetings. operational ethicscommittee,acomprehensivereport South Africa.SinceMay2016,andafterestablishingan group playsastrongcorporatecitizenshiproleprimarilyin The committee’s oversightrolehasmaturedtoensurethe Outline ofactivities • • • • • • required: Relevant executivemanagersattendcommitteemeetingsas Patrick Sithole management Executive Tswelo Kodisang Bridgitte Backman Thiroshnee Naidoo • • • • • • • – – EmploymentEquityActNo551998,asamended – – and localstandards: Monitored thecompany’s activities againstinternational manage activitiesagainstethicalandsocialstandards Reviewed itsframeworkofpoliciesandprocessesto the remit ofthesecommittees committees toreviewfocusareasandanyoverlapsin Met withthechairsofauditandrisksustainability Tiger Brandsisatop30performer Monitored progressontheFTSE4Goodindex,where smallholder farmers andFisheriestodevelopblack Agriculture, Forestry of memorandum ofunderstandingwiththeDepartment (a first forthecompany),after Tiger Brandssigneda Monitored progressonakeypublic-privatepartnership CDP Reviewed thegroup’s carbondisclosuresubmissionfor operational ethicscommittee Reviewed anddiscussedtheroleofnewlyformed board inJuly2015 and progressagainstobjectivesapprovedbythe BBBEE andagri-sectorcodefive-yearplancompliance Development (OECD)recommendationsoncorruption Organisation ofEconomicCooperationand Compact The 10principlesintheUnitedNationsGlobal safety andenvironment Supply chain,health, Portfolio Human resources sustainability and Corporate affairs Legal andcompliance Attendance 3/3 3/3 3/3 3/3

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Tiger Brands is committed to ensuring that its principles on to ensuring that Brands is committed Tiger The committee across the company. ethics are implemented processes and policies to ensure will continue to monitor compliance. it has considered and discharged The committee is satisfied the financial year in line with its termsits responsibilities for and the Companies Act. of reference, King III On behalf of the committee Maya Makanjee Chairman 22 November 2016

The social impact of wage negotiations and fatalities The social impact of wage negotiations and of are considered with respect to the well-being employees and their families HIV statistics are explored in terms of employee The aim wellness and the progress of HIV programmes. is to improve internal reporting communication and on progress Engaged internsfor the Great South African Cookbook, in partnership with the Nelson Mandela Foundation Foundation progress report. Brands Tiger The to deliver its 40 millionth meal Foundation is on track In termstowards the end of 2016. of good governance the foundation is a trust with principles, For more informationindependent trustees. refer to page 67 Going forward, the committee will consider certain matters as agenda items in more detail: – Unfair or inappropriate discrimination – Fair labour practices – Emolument attachment orders (garnishee orders). Agreed the following in terms and of human resources labour-related matters: – – Reviewed and considered consumer care line reports.Reviewed and considered consumer care After a thorough review of this process, recommended changes are being implemented Reviewed the company’s ethics policies and processes, Reviewed the company’s including those for anti-bribery and corruption Reviewed progress against management plans for Reviewed progress against management plans mapping stakeholder relationships and stakeholder Reviewed the company’s issues management approach Reviewed the company’s A group CSI steering committee has been constituted and A group CSI steering oversight role met in July 2016, fulfilling a management in the for sustainable socio-economic development Reports and minutes from this steering company. committee now form part social and ethics of the committee reports Reviewed progress against socio-economic development development progress against socio-economic Reviewed plans and processes: performance key objectives indicators and – CSI strategy, – – • • • • • • • • • • • • • • • • 92 Tiger Brands Limited Integrated annual report 2016 meetings held in the year appear in the corporate governance sectiononpages85and86. meetings heldintheyearappearcorporategovernance company’s for thereviewperiod.Thecommittee’s growthobjectivesandfinancialperformance membership,responsibilitiesand directors’ remunerationreflectsbestpracticeandiscompetitive.Thepolicyalsoneedstoensurethatpaymentalignedwith the The remunerationpolicyisreviewedannuallybytheandnominationscommitteetoensurethatdesignof andtheremunerationcommittee Governance 1:Remunerationpolicy Part provide thecontexttoremunerationoutcomessetoutlater. in2016onpages34to37 company performance of shouldbeconsideredagainsttheoverview This report of remuneration. 2detailsthevariousfinancialcomponents whilepart officers, why andhowwepayourexecutivedirectorsprescribed 1dealswith intwosections.Part and structuredthereport with thebestpracticerecommendationsofintegratedreporting We thisyeartoalign haveadjustedourremunerationreport • • • policy andpracticesisto: Accordingly, thepurposeofourrewardphilosophy, strategy, advantage inavolatileandtechnology-driveneconomy. Together, theyareourmostsustainablesourceofcompetitive onourpeople. Achieving ourvisiondepends,inlargepart, fromtheremunerationcommitteechairperson Report Remuneration report • • • • • • • • • • The policy, inconjunctionwiththeremunerationphilosophy andstrategy, isbasedonthefollowingkeyprinciples: business goalsandresults. The Tiger Brandsremuneration policyaimstoensurethegroupattractsandretainskeycriticaltalentrequireddeliverits Objective Remuneration policy 2017,issetoutbelow. 21 February The remunerationpolicy, voteattheannualgeneralmeetingon tobeapprovedbyshareholdersinanon-bindingadvisory Remuneration policy To bethemostadmired,branded,FMCGcompanyinemergingmarkets. Our vision performers, iepayforperformance. performers, rewardfortop innovation bysignificantlydifferentiating excellenceand Drive, rewardandrecogniseperformance business strategy, goalsandtargets againstour Inspire andmotivatepeopletooutperform employees performing Contribute toattracting,retainingandengaginghigh- • • • • • • • The remuneration committee actively participates inthisprocess. The remuneration committeeactivelyparticipates growth, andretainingtalent. and long-term ourobjectiveofreward forachievingshort-term providers toensure thesesupport Variable service incentives)practices shouldbetestedperiodicallythroughexternal andlong-term remuneration(short Individual contributionsbasedon roleandresponsibilitiesshouldhaveadirectbearingonlevels ofremuneration inrewarding highperformers It shouldmotivate,drivedeeper engagementandallowfordifferentiation thegroup’sRemuneration mustsupport strategy, andequity andbeconsistentwithitscultureoffairness and legislativestructuresrequirements type, skillsscarcity,competitive indiversemarkets: never applyingpercentilesrigidlybutconsideringindustry performance providerstoensureweremain service It shouldbereviewedandbenchmarkedannuallythroughprofessional in-country ofourbusinessesandthegroup It shoulddirectlycorrelatewiththegrowthplansandfinancial performance ourvisionbyattracting andretainingtherighttalent Remuneration shouldsupport

22 November2016 Chairperson Santie Botha shareholdings inthecompanytotargetlevels. tobuilduptheirpersonal top teamundertaking minimum shareholdingpolicyforourexecutives,with In linewithleadingpractice,wehavealsoadopteda focus and align these with our business and people strategy. incentivestosimplify, andlong-term to bothourshort-term adjustments line withbestpractice,wehavemadecertain thatourrewardstructureisin While thisreviewconfirmed framework. pay-for-performance ofourdifferentiated proposition andonlyrewardinterms wecontinuetodeliveronourshareholdervalue to ensure organisations. Thishasresultedinafit-for-purposemodel benchmark exerciseagainstthetop100JSElisted ina wehavereviewedallourpayofferings new CEO, The warfortalentisatanall-timehighand,ledbyour

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Bonus shares Restricted shares 13 February Performance shares Last options granted Bonus deferred Share appreciation rights

Cash salary Share Plan option scheme Compulsory benefits Discretionary benefits Phantom cash-settled 2013 Incentive bonus plan Tiger Brands Limited

Short-term incentive Long-term incentive Turnaround of Africa businesses – achieve approved budgets (8%) of Africa businesses – achieve approved Turnaround Drive operational excellence by focusing on in-store shelf health (3,5%) as Meaningful increase in group/business innovation rate – minimum of 0,5% increase a percentage of net sales at group level versus 2015 (5%) overall value market share for its defined basket domestic operating margin and Ensure the group’s are maintained in line with 2015 (5%) servicesAchieve budgeted net savings of R200 million in FY16 – in the areas of financial shared procurement and manufacturing efficiencies (3,5%) centre, IT, Drive the talent management process across all senior management to deliver organisation-wide and cross-functional succession (5%). • • • • • • The STI drives achieving short-term performance targets which correlate to the growth plans and financial performanceof our businesses and the group. This is one of our key remuneration principles. the STI is consistent with By incorporating personal performance through the personal multiplier, allowing for differentiation in rewarding high performers. our culture of fairness and equity, components. The target for the STI comprises a financial component and a number of strategic a 70% weighting Brands executive committee carried In 2016, the STI scheme for the Tiger for the financial component and a 30% weighting for the strategic component. The financial performance component is based on growth in profits, as measured by headline earnings set and per share (HEPS) from continuing operations. Measures and targets are reviewed annually by the remuneration committee. brackets): In 2016, the strategic element of the bonus focused on the following areas (weighting in • • • • • • Performance against individual targets and objectives is also considered in the final bonus determination. Total remuneration package and benefits, Comprises base pay internally annually benchmarked and externally, on and differentiated complexity performance, size and of the business Remuneration Short-term incentive (STI) scheme The incentive bonus plan Purpose and link to key remuneration principles Performance measures Elements of executive management and prescribed officers’Elements of executive remuneration Remuneration mix, recognition and reward mix, recognition Remuneration Remuneration report continued

Short-term incentive (STI) scheme continued

The incentive bonus plan continued

On-target and maximum All participants are able to earn an annual STI of up to 112,5% of their total remuneration value of cash incentive package, rising progressively from 50% to 112,5% for performance above the on-target level, (annual or subject to achieving all strategic objectives and attaining the maximum personal multiplier for exceptional deferral) performance. The maximum STI is paid only when the company achieves stretch business performance targets, all strategic targets are achieved and the maximum personal multiplier is attained.

Operation The following formula is applied to determine the final result:

STI formula financial = TRP x on-target % x BM (0% – 150%) x PM (0% – 150%) x 70% STI formula strategic = TRP x on-target % x BM (0% – 150%) x PM (0% – 150%) x 30% x strategic outcome

Where: TRP = total remuneration package BM = business multiplier PM = personal multiplier

Voluntary deferral and Executives and prescribed officers may defer a portion (25%, 33% or 50%) of their STI matching payment into restricted shares under the Tiger Brands Limited 2013 Share Plan, which are then matched by the company in a 1:1 ratio. All restricted shares will vest after three years. Integrated annual report 2016 We believe these deferrals demonstrate commitment to the company’s long-term success and 94 an appropriate alignment with shareholders’ interests. We therefore support our executives and prescribed officers’ efforts to increase their shareholding in the company through this process.

Further detail on restricted shares appears in part 2 (long-term incentive scheme) on page 95 and 96.

Changes for FY17 •• New executive directors’ scheme to be introduced, based on targeted group HEPS •• Strategic objectives for FY17 will no longer form part of the incentive bonus but become Tiger Brands Limited Tiger an element in individual performance assessments •• As such, the STI for Tiger Brands executive members (excluding executive directors) will now be based on the following group financial metrics (weighting in brackets): – Profit before interest and tax (70%) – Net working capital (20%) – Volume growth (10%). WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

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Allocations of share appreciation rights Conditional awards of full-value performance shares Grants of full-value restricted shares. • • • The aim of the LTIP is to attract, retain, motivate and reward executives and managers who are motivate and reward executives and managers is to attract, retain, The aim of the LTIP performanceable to influence the that aligns Brands and its subsidiaries on a basis Tiger of shareholders. company’s their interest with the and correlating by attracting and retaining the right talent vision supports the company’s The LTIP with the long-term plans and financial performance growth of the group. will allow (below) of the LTIP implementation of the various elements The combined, weighted Tiger Brands incentives, and ensure executives to remain competitive in annual and share-based shareholders. with the company’s share a significant level of personal risk in February was implemented The LTIP and 2013 and is in line with global best practice the required attributes of shareholder emerging South African practice, as it recognises performance.alignment, retaining key talent and sustained and its subsidiaries will executives and selected managers of the company Under the LTIP, annually be offered combination of: a weighted • • • company financial performanceThe correlation between share price and is often hampered by attention focuses executive performance.exogenous factors that can override executive The LTIP and reward on performance by combining a growth-oriented element (share appreciation right) future company performancewith two full-value elements, the one rewarding (performance performanceshare) and the other rewarding actual individual and retaining key talent (restricted share). Performance shares Performancealign the interests of shareholders and executives by rewarding shares closely superior shareholder and financial performance in future. Performance shares will be awarded predominantly to senior executives who can influence and affect long-term strategic annually, performance. Restricted shares Restricted shares provide for share-based retention of senior managers who have demonstrated their value to the company through their annual performance. Restricted shares will be mostly granted to high-performing senior managers to retain their skills. The restricted share element of the plan will also enable executives to electively waive a portion (25%, 33% or 50%) of their shares which are matched Brands annual cash incentive bonus, and to use this to invest in Tiger by the company with additional shares. Share appreciation rights (SARs) to Annual allocations of SARs will be made to executives and selected managers, subject performance vesting criteria, as described below. Allocations of performance shares, restricted shares and SARs may be settled in cash or shares, but the company intends to settle in shares. Long-term incentive (LTI) scheme Long-term (LTI) incentive 2013 Share Plan (LTIP) Tiger Brands Limited Purpose Operation and instruments Remuneration report continued

Long-term incentive (LTI) scheme continued

Tiger Brands Limited 2013 Share Plan (LTIP) continued

Performance measures Performance shares Restricted shares SARs The board will determine the Restricted shares are subject A sliding scale in applying performance criteria for each to continued tenure for a performance vesting award. For awards made in period of three years after conditions based on a February 2016, it was they are granted and are not targeted rate of 3% per agreed that vesting will be subject to any further annum real growth in HEPS determined by the company’s performance conditions. over three, four and five-year comparative total shareholder periods. return (TSR) relative to The value of restricted shares constituent members of the granted will be linked to the Percentage threshold levels FINDI 30 index. annual cash incentive for real HEPS growth and scheme and, more corresponding percentage The vesting of 2016 specifically, will be a fixed of allocation to vest: performance shares will thus percentage of the actual be based on Tiger Brands’ bonus that accrued to the >0% and <0,5% 5% relative TSR position over the participant for the prior ≥0,5% and <1,0% 10% three-year period: financial year. ≥1,0% and <1,5% 16% •• 15 out of 30: the targeted ≥1,5% and <2,0% 27% number (one-third of ≥2,0% and <2,5% 44% maximum number) of ≥2,5% and <3,0% 75% performance shares ≥3,0% 100% Integrated annual report 2016 awarded will vest •• 7 or better: the maximum 96 number (three times targeted number) of performance shares awarded will vest •• 23 or worse: all performance shares awarded will be forfeited •

Tiger Brands Limited Tiger • Between 7 and 15, or between 15 and 23: a pro-rated number of performance shares will vest.

No retesting against the performance criteria will be allowed. Any performance shares that do not vest at the end of the three-year period will be forfeited. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

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Performance shares Performance shares will vest on the third anniversary extent that the of their award, to the performancecompany has met specified vests over the period. The value per share that criteria price) and the number of share on the vesting date (there is no strike is the full value of the performancerelative to specified performance on the company’s shares vesting will depend over a three-year period. conditions measured Restricted shares after they are granted. subject to continued tenure for three years Restricted shares are SARs thirds on the third, fourthThey will be available to be settled in equal and fifth anniversaries of when they must be until the sixth anniversary, the date of allocation, but need not be exercised performance relative to specified will depend on the company’s exercised or lapse. Vesting performance over a three, four and five-year period, respectively. conditions measured Brands Phantom Cash Option Scheme, at any point, the In terms of the rules of the Tiger to all unexercised options in termsaggregate number of phantom shares relating of the scheme, 2016, As at 30 September capital of the company. is limited to 10% of the total issued share under the scheme represented 0,18% the aggregate number of all outstanding options total issued share capital. (2015: 0,36%) of the company’s that may be acquired by participantsThe maximum aggregate number of shares under the LTIP and plan may not exceed 5,5 million shares; and for any one any other share participant 550 000 shares. In determining these limits, shares acquired through the JSE and transferred to participants As at 30 September 2016, actual shares are not considered. that may be acquired is, in aggregate, 1 515 298 shares by participants the LTIP under (2015: 1 824 026). plan confirmed that the instruments used and the quantum and The review of our LTI performance to awards are in line with best practice, but that it is unusual to conditions applied described above. This leads to a complex set make annual awards based on all the instruments of awards that is challenging for both participants and investors to understand and appreciate. share It has thus been decided that the 2017 award will comprise restricted shares and expected appreciation rights, although the number awarded will be calibrated so that the total shares value will be similar to awards in prior years. The co-investment plan, with matching used to reward voluntary will also be retained. deferral of the STI into company shares, where In line with leading practice, the company will introduce a minimum shareholding policy, to asenior executives are expected to build up their personal shareholding in the company committee minimum level of 150% of TRP (for the CEO) and 100% of TRP for other executive members. Executives have six years to build up these holdings and may use a portion of their or their own resources, to acquireSTI or any vesting LTIs, shares. these continued scheme Long-term (LTI) incentive 2013 Share Plan (LTIP) continued Tiger Brands Limited Vesting periods Dilution Changes for FY17 Remuneration report continued

BEE schemes Other benefits Three members of the Tiger Brands executive committee also Executive directors, prescribed officers and other members participate in one or both of the company’s black manager of the executive committee enjoy various benefits, including empowerment schemes. medical aid cover, permanent health insurance, death-in- service and funeral cover, as well as a travel allowance, The Tiger Brands Black Managers Trust (BMT I) was where applicable. established in 2005 as part of the company’s phase I staff empowerment transaction. In terms of this, allocating The total value of other benefits paid is set out in participation rights to black managers entitles them to Annexure C of the annual financial statements. receive the underlying Tiger Brands shares (and shares in Adcock Ingram on a one-for-one basis) – after making the Executive service contracts required capital contributions to BMT I – at any time after Executive directors, prescribed officers and other members the specified lock-in period, ie from 1 January 2015. of the executive committee are not employed on fixed-term However, for all shares allocated after 31 July 2010, the contracts and have standard employment agreements with lock-in date varies depending on the date of allocation. current notice periods of either one or three months. The current retirement age is 63, although a retirement age The Tiger Brands Black Managers Trust II (BMT II) was of 65 applies to three members. established as part of our phase II empowerment transaction implemented in 2009. In terms of this, Contractual entitlements on terminating employment include, allocating participation rights to black managers entitles for those who leave due to retirement or retrenchment, a them to receive a specified number of Tiger Brands pro rata short-term incentive payment, subject to the extent shares from 31 December 2017 (after Tiger Brands Integrated annual report 2016 of achieving the relevant financial and strategic has exercised its right to repurchase a certain number of performance targets at the end of the period and the 98 shares from BMT II under an agreed repurchase formula). necessary individual performance agreement being in place at the date of exit. This pro rata incentive payment is subject Retirement benefits to the employee being in service for a minimum of three During the year, the group contributed on behalf of executive months in that financial year. No pro rata bonus is paid for directors to an umbrella retirement scheme operated by employees who leave for other reasons. Investment Solutions. This is a defined contribution retirement plan, with the company contributing 13,2% (2015: 15,7%) The termination rules for options issued under the

Tiger Brands Limited Tiger of gross pensionable remuneration. The cost of these Tiger Brands Limited 2013 Share Plan are on page 99. contributions is a component of directors’ TRPs. The two prescribed officers are also members of this umbrella External board appointments retirement scheme. Tiger Brands encourages members of the executive committee to consider accepting appropriate opportunities In addition, seven other members of the executive committee to serve as non-executive directors on the main board or participated in this umbrella retirement scheme. The two committees of external companies. We believe this policy remaining members of the executive committee belong to encourages our executives to broaden their skills base the Tiger Brands Management Provident Fund, a defined and experience. Under our formal policy, an executive contribution plan. The company contributed on average member is limited to one substantive outside directorship. 16,4% (2015: 16,5%) of gross pensionable remuneration The chairman of Tiger Brands, as chairman of the to the provident fund for retirement funding. nominations committee, and the chairman of the remuneration committee, are required to authorise these Details of contributions in the review period on behalf of appointments based on a recommendation from the chief executive directors, prescribed officers and other members executive officer. Directors’ fees paid to executive members of the executive committee appear in Annexure C of the by outside companies under this policy may be retained annual financial statements. by the individual. Tiger Brands currently has no executive committee members serving as non-executive directors on the main boards of external companies. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 99

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Non-binding advisory vote as set out above, will be subject The remuneration policy, to approval by shareholders, by way of a non-binding advisory vote at the AGM of the company to be held on 21 February 2017. undertake, provided that payment for this work is approved and chief by the remuneration and nominations committees executive officer. In determining directors, market fees payable to non-executive considered in abenchmarks for similar-sized companies are benchmarking exercise every two years. Fees payable to non-executive directors are considered by the board and approved by shareholders at the annual general meeting. Fee proposals are prepared by the executive committee for consideration by the remuneration and nominations committees, after which a final recommendation is made to the board for its consideration before being presented to shareholders for approval. Non-executive directors who perform services outside the scope of their ordinary duties may receive additional remuneration, with a reasonable maximum fixed by a disinterested quorum of directors. Shareholder approval will be sought for increasing non- executive directors’ fees, including fees paid for attending special board meetings and additional work undertaken. Details of the proposed increases appear in the notice of AGM of shareholders to be held on 21 February 2017. Details of non-executive directors’ fees paid in the review period appear in part 2 on page 101.

Dismissal for misconduct or poor performance or resignation by the participant. If employment is terminated will be cancelled. on a fault basis, the units Death disability or ill health Injury, the Labour Relations Act No 66 of requirements as contemplated in Dismissal based on operational 1995 Retirement on or after the normal date retirement of which the participant early retirement under the rules of the retirement plan is a member Voluntary Brands group be a member of the Tiger The relevant employer company ceasing to participantMutual agreement between the company and The undertaking in which the participant is employed being transferred to an entity that is not a Brands. member of Tiger A fault termination is defined as terminating the employment of a participant by reason of: – • • • • • • • • • Definition/treatment No-fault termination is defined as terminating of a participant the employment or by the company by reason of: applicable employer company • • • • • • • • is terminatedUnder the circumstances above, if employment on a no-fault basis then, depending on the right, performancenature of the unit (ie whether it is a share appreciation share or restricted share) and reasons for termination, a participant may retain all units or only a pro rata portion. Accelerated vesting in certainand settlement of retained units may apply circumstances. • Type of termination No-fault termination Fault termination In addition to standard fees, non-executive directors are currently paid R19 005 for each special meeting of the board and R3 780 per hour for any additional work they Fees and approval process Non-executive directors are paid a retainer that reflects their and not just overall contribution and input to the company, their attendance at board and committee meetings. The chairman and deputy chairman do not receive any additional remuneration for participating in committees of the board. Consistent non-attendance at meetings will be appropriately board evaluation process. handled as part of the company’s There are no contractual arrangements for compensation due to loss of office. Non-executive directors do not receive short- term incentives or participate in any long-term incentive plan. Non-executive directors Appointment and contractual arrangements board of Tiger Non-executive directors are appointed to the for appointmentsBrands in line with the policy and procedures which are formal, for the board as a transparent and a matter whole, assisted by the nominations committee. In terms of the have memorandum of incorporation, no directors company’s fixed-term appointments. Executive directors are subject to standard terms and conditions of employment and are required to retire from the board by rotation on the same basis as non-executive directors. Any director appointed to fill a vacant position during the year must be subject to election at the first annual general meeting following the appointment. Directors are subject to retirement every three years. If an individual’s employment is terminated, vesting of any outstanding (unvested) share options or full-value shares under the LTIP terminated, employment is under the LTIP (unvested) share options or full-value shares vesting of any outstanding If an individual’s termination King III. In summary, are aligned with recommendations in rules for termination.depends on the reasons The group’s include: for units awarded under the LTIP the principles applied Vesting of SARs and full-value shares on terminating employment – Tiger Brands 2013 Share Plan Brands 2013 Share shares on terminating of SARs and full-value – Tiger employment Vesting Remuneration report continued

Part 2: Implementation of policies for the Percentage increase in TRP for FY16 review period (%)

Summary of remuneration activities/decisions during 10 the year •• Appointment of the new CEO, with a special LTIP 8 allocation and sign-on bonus awarded 6 •• Retention bonuses were awarded to certain members of 4 the executive team to ensure stability as we began the process of appointing a new CEO 2

•• Retention share allocations were made to certain key 0 employees considered critical to the business Executives Managers Staff Labour •• Review of the current short-term and long-term incentive schemes, with new proposals summarised in this ● Average increase ● Market remuneration report.

Short-term incentive for exco FY2016

STI Percentage Name December 2016 of TRP

LC Mac Dougall 512 500 6,25 NP Doyle 835 985 13,59

Integrated annual report 2016 AG Kirk 646 494 15,00 CFH Vaux 709 050 15,00 100 NG Brimacombe 340 158 7,50

Directors’ emoluments and share scheme allocations are detailed in Annexure C of the annual financial statements. Tiger Brands Limited Tiger WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 101 Total 476 629 389 596 821 851 596 882 765 7 788 1 783 36 69 36 79 58 36 909 145 139 139 172 review Special meetings Governance – – – – – – – 87 76 315 152 trans- Social, formation ethics and – – – – – –

12 and 97 436 218 109 nominations Remuneration – – – – – – – – 87 273 186 ability sustain-

Risk and – – – – – – – 546 139 268 139 Audit – – – – – – – 4 4 4 12 ment

Invest-

353 342 353 353 353 353 353 846 353 Board 5 297 1 638 Outstanding LTI awards held by executive directors, prescribed officers and other members of the executive Outstanding LTI committee A full analysis of the annual movement in phantom cash-settled options, performance shares, restricted shares and share appreciation rights held by executive directors, prescribed officers and other members of the executive committee is set out on pages 170 to 174 per Annexure C to the notes of the annual financial statements. R000 AC Parker – chairman MO Ajukwu SL Botha MJ Bowman M Makanjee Dr KDK Mokhele RD Nisbet MP Nyama BL Sibiya – deputy chairman YGH Suleman Total No executive directors or prescribed officers qualify for participation in either of the company’s BEE schemes. No executive directors or prescribed officers qualify for participation in either of the company’s Interests of executive directors and prescribed officersInterests of executive directors and prescribed in share capital Executive directors and prescribed officers do not hold any interest in the share capital of the company. Interests of directors and prescribed officers schemes in BEE Total emoluments to non-executive directors for the year ended 30 September 2016 were: directors for the year ended 30 September emoluments to non-executive Total Non-executive directors’ fees Non-executive A market review of non-executive directors’ remuneration was undertakenA market review of non-executive directors’ in 2015 and this formedincreases the basis for effective from 1 March 2016. Annual fees payable to non-executive directors for the period beginning 1 March 2016 were approved by shareholders on for the period beginning 1 March 2016 were approved by shareholders on Annual fees payable to non-executive directors 16 February 2016. 102 Tiger Brands Limited Integrated annual report 2016 nature ofthestrategicreviewprecludeslinkingspecificrisks management isintegraltothisprocess,thework-in-progress Tiger Brandsiscurrently reviewingitsstrategy. Whilerisk mitigation. for managementtoconsiderduringriskand into theriskassessmentprocessasanadditionalindicator the impactofariskafteritmaterialises,hasbeenintroduced Risk velocity, whichisthetimetakenforTiger Brandstofeel • • • • that amplifytheimpact: revised toconsolidatesimilarrisksintobroadercategories processwas During thereviewperiod,ourriskreporting stakeholders. forthebenefit of assetsandearnings while preserving ensure asafer, healthierworkenvironment foremployees assistTiger Brandsinachievingitsobjectivesandto is to appropriately. Ultimately, thefunctionofriskmanagement and integratedmannertomanagereducerisk willworktogetherinaconsistent intention isthattheseparts organisation workingatmanagingriskexposures.Our ofthe and diverseconceptthattherearemanyparts Tiger Brandsrecognisesthatriskinbusinessisacomplex operations, reputationandthewell-beingofitsemployees. sustained valueforstakeholderswhileprotectingitsbusiness thegroupaimstogenerate addressing risksandopportunities, activities ofTiger Brands.Byidentifyingand proactively Effective riskmanagementisfundamentaltothebusiness Risk managementreport • • • • availability ofwaterandelectricity. catastrophic losstomanufacturingfacilitiesandthe Business continuityisaconsolidationofITsystemsfailure, raw materialsupply appropriate procurementstrategiesaswellsecuring Maintaining costcompetitivenessisaddressedthrough group’s strategy attract theappropriateresourcestodeliveragainst mitigate againstlabourunrest,developkeytalentand now aconsolidationofmanagement’s abilitytofurther The riskofinadequatehumanresourcemanagementis competitive landscape relationship withretailersandourresponsetoachanging Intensifying competitionnowrelatestoinnovation,the

key risks. be abletodisclosethisdetail,withmetricsandtargetsfor wewill Infuturereports, to strategicobjectivesinthisreport. management. included inastructuredandsystematicprocessofrisk identifiedmaterialriskis approach, meaningthatevery and structures.Thegrouphasadoptedanenterprise-wide embedded indailyoperationsthroughprocesses,resources risk acrosstheorganisation.Riskmanagementactivitiesare on identifies,managesandreports Tiger Brandseffectively Approach • bysettingexposurelimitsatthreetiers: been determined absorb beforemitigatingactionsareimplemented–has Risk appetite–thelevelofriskmanagementispreparedto Risk appetiteandtolerance • board. risk andsustainabilitycommitteeapprovedbythe The riskappetiteandtoleranceofthegroupissetby afterassessingresidual risk. Exposure limitsaredetermined • • • • a catastrophic threattoTiger Brands managementmitigation,iedoesnotpresent further Tier 1:anycalculatedriskexposurethatrequiresno risk mitigation make aconsciousdecisionaboutrisktoleranceversus tolerance, maybeacceptablebutmanagementmust exceeds ourriskappetite,butremainswithinthe Tier 2:athresholdzonewhereanyriskexposurethat implementation. a comprehensive mitigationplanandtimelinefor by considered asignificantriskandmustbesupported Tier 3:Allriskexposureaboveourtolerancewillbe

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103

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Governance e rr u C

Establish whether 2 our existing controls adequately mitigate the risk 3

Rank risks in order of their potential impact and likelihood of occurrence

n i o n

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a a l

c operating territories. Divisional and business unit risk registers are updated quarterly and the risk and sustainability committee meets three times in the year. Senior management in each division and business unit is responsible for managing risks in its area. Oversight of risk management at divisional level rests with the relevant executive committees. prioritise risks, each risk is evaluated in terms of To likelihood and impact on an inherent (actual impact) and residual (after mitigating action) basis. The heat maps on the following page reflect the significant inherent and residual Brands. risks for Tiger

i p

n s e n

d o

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s e i Gain a full understanding that of any risk we face might create, prevent, accelerate or delay achieving group objectives

Proactively managing risks considered unacceptably high and that require additional treatment 4 k

6 Inform decisions and ensure the Brands risk Tiger profile is adequately managed

Ensure planned risk response actions are implemented and remain effective

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Governance The board of directors is ultimately responsible for oversight risk management processes. The risk and of the group’s sustainability committee assists the board by ensuring that the risk management process complies with the relevant standards and governance requirements in all the group’s This process complements existing risk management Brands effectivelyprocesses and aims to ensure Tiger identifies, manages and reports on risk across all operations and all territories. The underlying reporting structure starts at site level and rolls up into the relevant business unit. After that, divisional consolidation among business units culminates in risk reporting at group level. Tier 3: All risk exposure above our risk tolerance will be considered a significant risk and must be supported by a comprehensive mitigation plan and timeline for implementation. a threshold zone where any risk exposure that Tier 2: a threshold zone where any risk exposure exceeds our risk appetite, but remains within the risk tolerance, may be acceptable but management must make a conscious decision about risk tolerance versus risk mitigation : any calculated risk exposure that requires no Tier 1: any calculated risk exposure that requires furtherie does not present management mitigation, Brands a catastrophic threat to Tiger • • • • Exposure limits are determined after assessing residual risk. The risk appetite and tolerance of the group is set by the risk and sustainability committee and approved by the board. • Risk appetite and tolerance is prepared to Risk appetite – the level of risk management – has absorb before mitigating actions are implemented been determinedlimits at three tiers: by setting exposure • to strategic objectives in this report. In future reports, we will and targets for be able to disclose this detail, with metrics key risks. Approach Brands effectivelyTiger identifies, manages and reports on activities are risk across the organisation. Risk management resources embedded in daily operations through processes, enterprise-wide and structures. The group has adopted an approach, meaning that every identified material risk is of risk included in a structured and systematic process management. 104 Tiger Brands Limited Integrated annual report 2016 Risk managementreport

IMPACT IMPACT

1 2 3 4 5 1 2 3 4 5

1 1

R2 2 34 2 34 continued LIKELIHOOD LIKELIHOOD Tier 3inherentrisks Tier 3residualrisks R6 R4 R3 R1 R2 R6 R5 R1 R5 R3 R4 R6 R5 R4 R3 R2 R1 R6 R5 R4 R3 R2 R1 Fraud, theftandcrime Business continuity compliance Regulatory environment Operating management Human resource Safety Fraud, theftandcrime Business continuity compliance Regulatory environment Operating management Human resource Safety

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risk is managed Brands has a Tiger under various strategies. model to capitalise on economies centralised procurement of scale and efficientlyprice- manage the procurement of Evaluating brand and product mix sensitive raw materials. process of all customer and leads the decision-making consumer needs based on marketing teams to ensure behaviour are continually addressed. prevailing trends and another importantProduct innovation is driver for every funding has been allocated to brand and appropriate achieve this objective. Regulatory compliance complying with all legislative Brands is committed to Tiger and regulatory In South Africa, we are requirements. the salt content complying with new salt legislation (reducing in several foodstuffs)appropriate changes to by making will take a similar approach if the internal processes. We training proposed sugar tax is legislated. Ongoing and ensure programmes raise awareness about compliance have guidance is continuously available to all staff. We also established a governanceto facilitate the process forum policy of adapting to the legal environment through senior implementation. This forum is attended by management from across the business, information group legal and internal audit. technology, Business continuity performanceLoss of life, reputational damage and business event or can all be compromised by a catastrophic manage this risk holistically and unplanned disruption. To a formal business continuity management systematically, process is being piloted at our largest groceries manufacturing site, and will be rolled out across the group we manage this risk with appropriate in FY17. Presently, and disaster reviewed annually, group insurance cover, recovery plans that include replicating core business applications and services. Maintenance and support services agreements are in place with key vendors. Risk, control and environmental audits are performed by an The results of this review are external specialist annually. used to improve business continuity planning and disaster recovery processes. Comprehensive preventative maintenance plans are in place and regularly reviewed at all manufacturing sites to ensure a continuous supply of product to consumers. Power-generating capacity has been

Operating environment As outlined on pages 26 and 27, the operating environment remains challenging. In addition, volatility in the South African rand against major foreign currencies will impact raw material pricing and therefore input costs, which may not always be recovered through price increases. This Human resource management Brands’ success, and Employees are at the centre of Tiger our ability to effectively human capital is integral manage to the a sustainability of our business. Failing to develop high-performance clear expectations, culture by setting environment, defining employees’ roles, creating a trusting will and encouraging individual growth and development performance in a have a detrimental effect group’s on the dynamic environment. An enterprise-wide talent review is under way and employees with high potential are being identified by business unit and function. In addition, a management trainee scheme is being implemented to ensure the future supply of talent and more holistic and richer personal development plans for employees are in place. The group people strategy has been amended to address human resource-related risks on pages 56 to 59. Safety environment is non-negotiable Maintaining a safe working as this supports ensuring that the safety of our commitment to Safety procedures aligned to the our employees is a priority. across all global OHSAS 18001 standard are embedded access controls our manufacturing facilities, with restricted at all production facilities. The nature of certain businesses Robust plans are increases the risk of safety to employees. in place to manage and furthermitigate the risk to employee safety in the long term. results of annual The independent safety audits are used to inform the and safety improvement plan for each site. Our health performanceperiod is on pages 60 to 62. for the review Significant risks are determinedSignificant risks are by analysing business unit risks, group risks. The score for divisional risks and each risk is determined by multiplying the likelihood of the risk Brands. of the risk to Tiger occurring to the impact A risk is regardedwhen its score exceeds as significant the risk board. The following risks are tolerance set by the Tiger Brands: to regarded as significant Significant risks Significant 106 Tiger Brands Limited Integrated annual report 2016 control violations. invested intechnologytomanageandremediateaccess as inadequate,theyhavebeenimproved.We havealso fraud risksareidentified,andwherecontrolsassessed unit.Keycontrolstomitigate documented foreach business Fraudriskregistershavebeen finalisation ofallreports. committeeindependentlyvalidatestheeffective The ethics unethical businesspracticeswithoutfearorvictimisation. employees, suppliersandcustomerstoconfidentiallyreport annually. TheTiger Brandsethicslineisavailabletoall employees arerequiredtoacknowledgecompliance andcorruptionpolicyhasbeenimplemented bribery ananti- in investigatingsyndicatedcrime.In addition, policetoassist all ourfacilities,andworkingwiththe local awareness campaigns,strictaccesscontrolenforcementat against incidentsoffraudandcrimethroughemployee reviewed andsignificantlyimprovedtocontinuouslyguard controlshavebeen Following previousincidents,our internal Fraud, theftandcrimearerealitiesofdoingbusiness. Fraud, theftandcrime carbon emissionsstrategiesaresetoutonpages74to79. fromacentralisedperspective.Ourenergyand office all facilitiesisregularlyreviewedbothatsiteleveland head generationat applicable, andexposuretothelossof power processeswhere installed tocoverkey manufacturing Risk managementreport

continued

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Annual Annual financial financial statements

of the annual financial statements, has been of the annual financial 186 110 to Lawrence Mac Dougall Chief executive officer 109,

101 of the integrated annual report101 of the integrated and pages and 22 November 2016 T Naidoo Company secretary Certified in terms of section 88(2)(e) that the company has filed required returns and notices in terms of the Companies Act No 71 of 2008, and that all such returns up to date. and notices appear to be true, correct and Certificate by company secretary

The annual financial statements for the year ended 30 September 2016, which appear on pages 33 to 37, 100 and 101 ofThe annual financial statements for the year the integrated annual report 109, 110 to 186 of the annual financial statements, which are in agreement with the and pages books of account at that date were approved by the board of directors on 22 November 2016 and signed on its behalf by: Directors’ approval The directors have no reason to believe that the group’s operations will not continue as going concerns operations will not continue as going in the year ahead, other the group’s The directors have no reason to believe that anticipated, in which case provision is made to reduce the carryingthan where closures or discontinuations are cost of the relevant assets to net realisable value. André Parker Chairman 22 November 2016 h composed entirely of independent non-executive directors, meets periodically wit An audit committee of the board of directors, our internal and external management to discuss internal auditors and reporting accounting controls and auditing and financial matters. The auditorsthe audit committee. have unrestricted access to The annual financial statements, prepared in termsThe annual financial statements, prepared of International Financial Reporting by our auditors in Standards, are audited conformity with International on Auditing. Standards Management and employees operate in terms with of a code of ethics approved by the board. The code requires compliance highest integrity in the conduct of all aspects of the business. all applicable laws and maintenance of the The fulfilment of this responsibility is discharged through the establishment and maintenance of sound management and accounting and maintenance of sound management is discharged through the establishment The fulfilment of this responsibility clear responsibility, for delegation of authority and establishes of an organisation structure which provides systems, the maintenance review of the operations’ performancetogether with the constant communication and plans and measured against approved budgets. The directors of Tiger Brands Limited are responsible for the integrity of the annual financial statements of the company, statements of the company, for the integrity of the annual financial Brands Limited are responsible The directors of Tiger information associates and the objectivity of other consolidated subsidiaries, annual report. presented in the integrated Responsibility for annual financial statements for annual financial Responsibility The preparation of the annual financial statements for the year ended 30 September statements for of the annual financial The preparation appear on pages 2016, which 33 Preparation of annual financial statements financial of annual Preparation 37, 100 supervised by Noel Doyle, chief financial officer Tiger Brands Limited. of 108 Tiger Brands Limited Annual financial statements 2016 includes evaluatingtheappropriatenessofaccounting oftheentity’seffectiveness control.Anaudit also internal but notforthepurposeofexpressinganopinionon audit proceduresthatareappropriateinthecircumstances, presentation ofthefinancialstatementsinordertodesign control relevanttotheentity’s preparation andfair making thoseriskassessments,theauditorconsidersinternal of thefinancialstatements,whetherduetofraudorerror. In including theassessmentofrisksmaterialmisstatement procedures selecteddependontheauditor’s judgement, amounts anddisclosuresinthefinancialstatements.The procedurestoobtainauditevidenceaboutthe performing are freefrommaterialmisstatement.Anauditinvolves whether theconsolidatedandseparatefinancialstatements theaudittoobtainreasonableassuranceabout perform that wecomplywithethicalrequirementsandplan StandardsonAuditing.Thosestandardsrequire International our audit.We conductedourauditinaccordancewith consolidated andseparatefinancialstatementsbasedon Our responsibilityistoexpressanopiniononthese Auditor’s responsibility due tofraudorerror. statements thatarefreefrommaterialmisstatement,whether preparation ofconsolidatedandseparatefinancial toenablethe isnecessary as thedirectorsdetermine control Companies ActofSouthAfrica,andforsuchinternal Standardsandtherequirementsof Financial Reporting financial statementsinaccordancewithInternational and fairpresentationoftheseconsolidatedseparate The company’s directorsareresponsibleforthepreparation separate financialstatements Directors’ responsibilityfortheconsolidatedand information. and otherexplanatory ofsignificantaccountingpolicies comprising asummary cash flowsfortheyearthenended,andnotes, income, statementsofchangesinequityand and theincomestatements,statementsofcomprehensive the statementsoffinancialpositionasat30September2016, pages110to186, 36 (segmentreport), statements ofTiger BrandsLimitedsetoutonpages35and We haveauditedtheconsolidatedandseparatefinancial statements ontheconsolidatedandseparatefinancial Report To theshareholdersofTiger BrandsLimited Report oftheindependentauditor which comprise appropriate toprovideabasisforourauditopinion. and that theauditevidencewehaveobtainedissufficient overall presentationofthefinancialstatements. We believe estimates madebymanagement,aswellevaluatingthe policies usedandthereasonablenessofaccounting accordingly donotexpressanopiniononthesereports. However, and wehavenotaudited thesereports audited consolidatedandseparatefinancialstatements. andthe material inconsistenciesbetweenthesereports wehavenotidentified Based onreadingthesereports aretheresponsibilityofrespectivepreparers. reports consolidated andseparatefinancialstatements.These andtheaudited inconsistencies betweenthesereports for thepurposeofidentifyingwhethertherearematerial committee’s andthecompanysecretary’s report certificate theaudit 2016, wehavereadthedirectors’report, financial statementsfortheyearended30September ofouraudittheconsolidatedandseparate As part requiredbytheCompaniesAct Other reports requirements oftheCompaniesActSouthAfrica. Standards,andthe FinancialReporting with International separate cashflowsfortheyearthenendedinaccordance andconsolidated and separatefinancialperformance Limited asat30September2016,anditsconsolidated consolidated andseparatefinancialpositionof Tiger Brands statements presentfairly, inallmaterialrespects,the In ouropinion,theconsolidatedandseparatefinancial Opinion 22 November2016 Johannesburg Sandton 102 RivoniaRoad Accountant(SA) Chartered Registered Auditor Director –Warren Kinnear Ernst &Y Brands Limitedfor13years. &Young thatErnst report Inc.hasbeentheauditorofTiger Gazette Number39475dated4December2015,we oftheIRBARulepublishedinGovernment In terms requirements onotherlegalandregulatory Report oung Inc.

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 109 – Indirect number of shares 2015 Direct number 1 221 of shares Annual Annual financial financial statements – Indirect number of shares 2016

Direct 1 221 number of shares

Name of director Retirements funds the group areDetails in respect of the retirement funds of set out F of the in note 30 and 31 and Annexure E and annual financial statements. Insurance and risk management an annual practice regarding insurance includes The group’s insurance assessment, in conjunction with the group’s brokers, of the risk exposure relative to assets and possible liabilities arising from business transactions. In addition, the risk and insurance programme is monitored by the group’s sustainability committee. All risks are considered to be adequately covered, except for political risks in the case of which as much cover as is reasonably available has been arranged. In respect of the individual assets programme, cover of R6 billion per group’s loss is purchased. Self-insurance programmes are in operation covering primary levels of risk at a cost more advantageous than open-market premiums. Regular risk risk management audits are conducted by the group’s management consultants, whereby improvement areas are identified and resultant action plans implemented Assets are insured at current replacement accordingly. values. SL Botha to the direct and indirect beneficial There were no changes 30 September 2016 to the date interests of directors from reportthe integrated annual was released. American Depository Receipt facility With effect a sponsored from 9 September 1994, American DepositoryReceipt (ADR) facility was established. of New York This ADR facility is sponsored by the Bank reflected under Mellon and details of the administrators are administration on page 190. Special resolutions 2016 Special resolutions were passed on 22 June relating to of the adoption of the revised Memorandum Incorporation (MoI) by subsidiary companies. the yearNo special resolutions were passed during under review that would have affected the capital structure, that affectsborrowing powers or any other material matter by subsidiarythe understanding of the group were passed companies during the year under review. Details of the directors’ shareholding (direct and indirect (direct and indirect directors’ shareholding Details of the below. beneficial) are reflected – 2015 106 600

(106 600)

– – – 2016 Peter Matlare Funke Ighodaro Lawrence Mac Dougall The register of interests of directors in shares of the company is available to the members on request. No director holds 1% or more of the ordinary shares of the The directors of the company beneficially hold, company. 1 221 ordinary shares of its issued directly and indirectly, ordinary shares. The names of the directors who presently hold office are set out on pages 11 and 12 of the integrated annual report. 31 July 2016 Appointments 10 May 2016 All retiring directors are eligible and offer themselves for re-election. Resignations 31 December 2015 Directors were recorded The following movements in the directorate during the year under review: Major shareholders Details of the registered and beneficial shareholders of the company are outlined on page 187. Share purchase and share option schemes Share purchase and (1985) Share Option Scheme Brands Tiger Details of authorised and issued share capital are set out Details of authorised in note 22annual financial statements on page 146 of the of changes in equity on pages 116 to and in the statement 118. Authorised and issued share capital and issued share Authorised Statutory information Statutory Shares under option at the Shares under option beginning of the year Exercised and paid in full Shares under option at the end of the year Dividends the year Details of dividends declared and paid during are outlined statements. in note 12 to the annual financial Subsidiaries, associates and investments Financial information concerning principal subsidiaries, the Brands Limited is set out associates and investments of Tiger in Annexure A and B of the annual financial statements. 110 Tiger Brands Limited Annual financial statements 2016 ^ # * for theyearended30September2016 Income statements

comparative information beingrestatedaccordingly.comparative information specifying therespective detail.Forbetterclarity, arenowdisclosed separately onthefaceofincome statement,withthe impairments Historically, note itemsonthefaceofincomestatementwith asupporting oftotalabnormal havebeendisclosedaspart impairments Restated asrequiredbyIFRS5inrelation tothetreatmentofTiger BrandedConsumerGoodsplc(TBCG)asadiscontinuedoperation. costs. Refertonote7forfurther details. cash balancesandloansofafundingnaturepreviouslyincludedinoperating income/(loss)andnowreclassifiedtonetfinance on foreign The comparativeshavebeenrestated fortheretrospectivereclassificationrelatingtotreatmentofforeign exchangeprofitsandlosses 2 471,0 2 471,0 2 343,4 2 343,4 2 453,5 2 453,5 2 405,4 2 405,4 2 405,4 2 405,4 (48,1) 110,7 2016 (1,8) (1,8) (0,6) 1,2

– COMPANY 2 099,3 2 099,3 1 441,5 1 441,5 1 399,0 1 399,0 2 235,3 2 235,3 1 399,0 1 399,0 Restated* (678,8) (106,9) (781,1) 123,3 (42,5) 2015 4,6 4,6

^ Continuing operations (R’million) Cost ofsales Turnover Revenue Gross profit Sales anddistributionexpenses Marketing expenses Other operating(expenses)/income Impairments and abnormal items and abnormal Operating income/(loss)beforeimpairments Abnormal items Abnormal and abnormal items and abnormal Operating income/(loss)afterimpairments Net (financecosts)/interestreceived Investment income Income fromassociatedcompanies Profit beforetaxation Taxation Profit fortheyearfromcontinuingoperations Profit fortheyear operation Profit/(loss) fortheyearfromdiscontinued Discontinued operation Attributable to: Owners oftheparent –Discontinuedoperation –Continuingoperations –Continuingoperations Non-controlling interests –Discontinuedoperation Basic earnings per ordinary share(cents) perordinary Basic earnings Diluted basic earnings per ordinary share(cents) perordinary Diluted basicearnings –Discontinuedoperation –Continuingoperations note 11. pershareisdisclosedin Headline earnings –Discontinuedoperation –Continuingoperations Notes 16 10 35 3 2 5 4 6 8 9

(21 498,6) 31 697,5 31 697,5 31 737,5 10 198,9 10 198,9 (3 612,1) (1 566,7) (1 220,6) 4 154,1 4 154,1 3 830,3 3 830,3 4 514,7 4 514,7 3 294,1 3 294,1 3 321,7 3 321,7 3 305,6 3 305,6 2 034,4 2 034,4 1 991,5 1 991,5 3 261,2 3 261,2 2 007,1 2 007,1 1 964,8 1 964,8 3 321,7 (866,0) (334,8) (182,6) 860,7 (16,8) 11,0 27,6 16,1 2016 32,9 44,4 27,3 26,7 6,3 GROUP (18 980,5) 28 660,0 28 660,0 28 690,1 (3 425,7) (1 418,6) (2 167,5) (1 394,3) 9 679,5 9 679,5 4 025,7 4 025,7 3 687,2 3 687,2 4 086,8 4 086,8 3 109,5 3 109,5 1 727,1 1 727,1 3 121,4 3 121,4 1 068,1 1 068,1 1 930,4 1 930,4 1 050,9 1 050,9 1 899,3 1 899,3 (809,5) (319,8) (977,3) (773,2) (785,1) (862,3) (848,4) Restated* 602,8 942,0 (204,0) 942,0 (18,7) (11,9) 2015 0,8 # ^

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 111 7,6 7,0 90,5 18,2 (14,5) (91,3) 2015 942,0 281,7 299,2 (753,9) 1 241,2 1 995,1 1 241,2 GROUP Annual Annual financial financial 7,1 statements (1,2) 2016 15,7 (86,9) (42,9) (45,6) (17,6) 127,7 (147,7) 3 321,7 3 234,8 3 252,4 3 234,8

24 Note

3 1

1 1 1, 2

1, 2

and FCTR

(R’million) Other comprehensive (loss)/income, net of Other comprehensive tax Profit for the year Share of associates other comprehensive Share of associates other income Net (loss)/gain on cash flow hedges Foreign currency translation (FCTR) Foreign currency translation adjustments Net gain/(loss) on available-for-sale financial assets Remeasurement raised in terms of IAS 19R effect Tax foreign operation Net (loss)/gain on hedge of net investment in Net (loss)/gain on hedge Total comprehensive income for the year, income for the year, comprehensive Total net of tax Owners of the parent Attributable to: Non-controlling interests (1,6) (1,6) 2015 1 399,0 1 397,4 1 397,4 1 397,4 Y COMPAN

(0,7) (0,7) 2016 2 405,4 2 404,7 2 404,7 2 404,7 During the current year, R99,1 million (2015: Rnil) of the foreign currency translation reserve R99,1 million (2015: Rnil) of the foreign relating to TBCG, as well as R19,4 million During the current year, Trust ParticipationScheme Rights financial asset derecognised in terms(2015: R95,0 million) on the available-for-sale of the Black Managers were reclassified to profit or loss. (2015: net actuarial gain of R6,9 million) and unrecognised loss due to asset ceiling of Comprises a net actuarial gain of R6,5 million R7,7 million (2015: R21,4 million). Items that may be subsequently reclassified to profit or loss including the related tax Items that may be subsequently reclassified to effects.

3 1 2 Statements of comprehensive income of comprehensive Statements 2016 ended 30 September for the year 112 Tiger Brands Limited Annual financial statements 2016 at 30September2016 Statements offinancialposition 10 498,7 10 498,7 10 498,7 10 498,7 9 821,0 9 821,0 9 821,0 9 821,0 4 033,1 4 033,1 2 686,7 2 931,5 6 255,0 6 255,0 2 941,6 2 941,6 2 065,6 2 065,6 1 388,7 1 388,7 169,7 508,0 830,2 100,8 457,0 475,9 148,5 282,1 499,5 578,8 17,2 47,2 21,7 51,0 48,6 2016 COMPANY – 10 074,6 10 074,6 10 074,6 10 074,6 9 214,0 9 214,0 5 680,6 5 680,6 2 942,3 2 942,3 9 214,0 9 214,0 2 030,7 2 030,7 1 388,7 1 388,7 3 872,9 3 872,9 2 606,8 2 931,5 194,9 303,9 458,2 556,7 442,6 148,5 127,1 499,5 645,3 453,5 86,6 22,4 98,5 18,7 18,1 2015 – Amounts owedtosubsidiaries Total equityandliabilities Short-term borrowings Short-term Taxation Provisions Trade andotherpayables Current liabilities Amounts owedtosubsidiaries Long-term borrowings Long-term Provision forpost-retirementmedicalaid Deferred taxationliability Non-current liabilities Total equity Non-controlling interests Share-based paymentreserve empowerment entities empowerment Tiger BrandsLimitedsharesheldby subsidiary Tiger BrandsLimitedsharesheldby Accumulated profits Non-distributable reserves Ordinary sharecapitalandpremium Ordinary Issued capitalandreserves Equity andliabilities Total assets Cash andcashequivalents Amounts owedbysubsidiaries Trade andotherreceivables Inventories Current assets Deferred taxationasset Loans Other investments Investments inassociatedcompanies Investments Amounts owedbysubsidiaries companies Interest insubsidiary Intangible assets Goodwill (R’million) Property, plantandequipment Non-current assets Assets Annexures Notes/ 34 27 26 25 34 27 31 19 29 23 23 22 34 21 20 19 18 17 16 34 14 14 13 A

24528,9 16 033,9 16 033,9 15 547,6 15 547,6 24 528,9 11 099,1 11 099,1 14 373,4 14 373,4 (1 790,9) 6 506,2 6 506,2 1 841,9 1 841,9 4 904,8 4 904,8 2 098,6 2 098,6 4 541,9 4 541,9 1 069,3 1 069,3 3 046,1 3 046,1 4 592,3 4 592,3 5 769,8 5 769,8 4 732,7 4 732,7 1 988,8 1 695,7 4 157,1 (718,0) 486,3 128,1 525,3 666,0 148,5 737,0 168,9 253,5 488,5 2016 42,6 3,2 GROUP 24 854,3 13 777,6 13 777,6 13 152,9 13 152,9 13 830,1 13 830,1 24 854,3 11 617,3 11 617,3 (1 820,9) 3 624,0 3 624,0 4 796,8 4 796,8 1 215,8 1 215,8 9 017,5 9 017,5 2 059,2 2 059,2 2 644,1 2 644,1 1 051,6 1 051,6 4 895,7 4 895,7 5 670,0 5 670,0 4 150,7 4 150,7 1 993,9 1 993,9 4 312,3 4 312,3 2 239,1 2 239,1 4 641,2 4 641,2 (718,0) 523,3 643,1 200,3 423,5 148,5 158,2 (52,5) 73,4 50,5 2015 3,4

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 113 – – –

7,5 4,2 9,1 2015 17,1 53,7 76,0 66,7 (955,1) 326,0 712,3 285,7 (811,6) (413,8) (881,6) (525,4) (343,6) (267,6) Restated* 1 022,0 4 396,4 3 584,8 2 355,3 (1 158,8) (1 643,0) (1 055,9) (1 925,9) (2 126,8) – Annual Annual GROUP – – – financial financial 0,2 statements 26,7 11,3 2016 38,7 15,4 406,4 114,9 125,7 (69,7) (324,0) (875,0) (604,0) (945,4) (573,5) (562,2) 4 836,8 4 232,8 3 234,5 1 573,4 1 688,3 1 126,1 1 075,7 (1 107,4) (1 661,1) (2 126,8) F E B A D H C G Notes

(R’million) Cash operating profit/(loss) Cash operating profit/(loss) Working capital changes Working Cash generated from operations Cash generated from Interest received and income from investments Interest received and Finance costs Dividends received from associate companies Dividends received from and subsidiaries Dividends received from empowermententities paid Taxation Cash available from operations Dividends paid Net cash inflow from operating activities Net cash inflow from operating activities Purchase of property, plant and equipment Purchase of property, Net cash on disposal of subsidiary (refer note 35) Acquisition of business (refer note 36) (BMT) shares exercised Black Managers Trust plant and Proceeds from disposal of property, equipment Decrease/(increase) in loans to subsidiaries, Decrease/(increase) in loans to subsidiaries, associates and others Investment acquired Proceeds received on insurance claims Proceeds received on empowerment available- for-sale financial assets Net cash inflow/(outflow) from investing activities Net cash inflow/(outflow) before financing activities Proceeds from issue of share capital Long and short-term borrowings repaid Long and short-term borrowings raised Net cash (outflow)/inflow from financing activities Net increase/(decrease) in cash and cash equivalents Effect of exchange rate changes Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year – – 3,6 (5,1) 8,7 0,4 9,1 2015 (12,7) (52,4) 136,0 173,9 379,0 110,5 119,6 270,0 127,1 (116,5) (525,4) (641,5) (262,5) (142,9) Restated* 1 916,2 2 164,6 (1 785,6) – – – – 8,4 7,8 Y COMPAN (0,6) (4,6) 2016 (16,9) 354,8 159,6 (57,9) 127,6 201,7 548,2 127,1 282,1 (193,4) (193,4) (195,2) (195,2) 2 116,9 2 379,2 (1 831,0) The comparatives have been restated for the retrospective reclassification relating to the treatment of foreign exchange profits and losses on The comparatives have been restated for the retrospective reclassification relating to the treatment and now reclassified to net finance costs. foreign cash balances and loans of a funding nature previously included in operating income/(loss) Refer to note 7 for further details. * Statements of cash flows of cash Statements 2016 ended 30 September for the year 114 Tiger Brands Limited Annual financial statements 2016 * for theyearended30September2016 Notes tothecashflowstatements costs. Refertonote7forfurther details. cashbalancesandloansofafundingnaturepreviouslyincludedinoperatingincome/(loss)nowreclassified tonetfinance on foreign The comparativeshavebeenrestatedfortheretrospectivereclassification relatingtothetreatmentofforeignexchangeprofitsandlosses (57,9) (10,7) (48,1) 2016 (0,7) (1,8) 0,9 (0,6) COMPANY 8,4 9,1 1,2 – Restated* (52,4) (42,5) 2015 (8,1) (1,8) (5,1) (9,7) 8,7 0,3 8,4 4,6 – C B A Working capitalchanges payables Increase/(decrease) intradeandother receivables (Increase)/decrease intradeandother Increase ininventories (R’million) Total taxationpaid end oftheyear, net Amounts payable/(receivable)atthe non-cash items andother Exchange ratedifference Deferred tax operation Income statementcharge–discontinued operations Income statementcharge–continuing year,of the net Amounts payableatthebeginning and vehicles Loss ondisposalofplant,equipment Amortisation Provision forpost-retirementmedicalaid Depreciation Add back: operations –continuing items andimpairments Operating profit/(loss)beforeabnormal Cash operatingprofit/(loss) Other non-cashitems Share-based paymentexpenses Taxation paid Working capitalchanges Cash operatingprofit/(loss)

(1 107,4) (1 220,6) 4 154,1 4 154,1 4 836,8 (604,0) (282,0) (518,7) 558,8 (38,9) 196,7 11,9 22,9 2016 73,5 11,5 67,1 88,9 0,2 – – GROUP (1 158,8) 3 633,2 3 633,2 4 396,4 4 396,4 Restated* (811,6) (917,9) (977,3) (193,5) 183,7 201,0 662,1 (230,9) (77,4) 38,9 23,8 16,7 29,2 27,0 2015 3,0 4,4

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 115 9,1 9,1

2015 (68,4) (203,8) (881,6) (677,8) Restated* 1 051,6 1 160,3 (1 574,6) (1 643,0) (3 086,2) (1 925,9) (3 178,4) (2 126,8) Annual Annual GROUP – – financial financial statements 2016 (31,2) (306,5) (638,9) 737,0 (945,4) (875,0) 1 051,6 (1 629,9) (1 661,1) (3 178,4) (2 126,8) (1 612,0) Note 27.5 27.5

Increase in shareholder funding Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Dividends paid plant, Purchase of property, equipment Per statement of changes in equity Per statement of changes dividends paid Total Dividends paid to outside shareholders Dividends paid to outside Short-term as borrowings regarded cash and cash equivalents Cash resources Cash resources Short-term as cash borrowings regarded and cash equivalents Proceeds from issue of share capital Expansion (R’million) Replacement F G H D E – – 9,1 9,1 2015 127,1 127,1 270,0 270,0 Restated* (1 785,6) (1 785,6) – – – – Y COMPAN 2016 282,1 127,1 127,1 282,1 (1 831,0) (1 831,0) The comparatives have been restated for the retrospective reclassification relating to the treatment of foreign exchange profits and losses The comparatives have been restated for the retrospective reclassification relating to the treatment on foreignbalances and loans of a funding nature previously included in operating income/(loss) and now reclassified to net finance cash costs. Refer to note 7 for further details. * 116 Tiger Brands Limited Annual financial statements 2016 for theyearended30September2016 Statements ofchangesinequity 5 4 3 2 1 Refer tonote: (R’million) Balance at30September2015 entity Sale ofsharesbyempowerment entity Purchase ofTiger sharesbyempowerment shares Dividends onordinary Share-based payment Transfers betweenreserves Balance at1October2014 Group Balance at30September2016 entity Sale ofsharesbyempowerment shares Dividends onordinary Share-based payment Transfers betweenreserves Disposal ofsubsidiary Total comprehensiveincome Subsidiary – legal reserve transfer –legalreserve Subsidiary Issue ofsharecapitalandpremium Total comprehensiveincome Profit fortheyear Other comprehensiveincomefortheyear Other comprehensiveincomefortheyear Profit fortheyear Included inthemovementofshare-basedpaymentareoptionsexercised amountingtoR5,9million(2015:Rnil). transfersofAfricansubsidiariesduetostatuteintherespectiveforeigncountries. arelegalreserve Included inothercapitalreserves The othercomprehensiveincomefortheFCTRincludesamountsrelated totheassociatesofR127,7million(2015:R281,7million). During the current period, R99,1 million of the FCTR relating to TBCG was reclassified to profit and loss. During thecurrentperiod,R99,1millionofFCTRrelatingtoTBCGwas reclassifiedtoprofitandloss. Scheme (BMT). Rights Relates oftheBlackManagersParticipation totheexercisingofoptionsvestedpostDecember 2014lock-inperiodinterms : Dividends on empowerment shares Less: Dividendsonempowerment Total dividends shares Less: Dividendsonempowerment Total dividends 5 1 1 2, 3 3 premium 148,5 139,4 148,5 capital Share 9,1 and 22 – – – – – – – – – – – – – – – – – – – – – of associates 1 483,4 1 483,4 2 214,5 2 214,5 1 760,2 earnings 454,3 276,8 Share of net 16 Non-distributable reserves – – – – – – – – – – – – – – – – – – – – reserves capital Other (3,9) (7,2) (3,9) 3,3

– – – – – – – – – – – – – – – – – – – – – 4 Cash flow reserve hedge (45,5) (45,5) (30,1) 15,4 7,0 8,4 7,0 – – – – – – – – – – – – – – – – – – Available- for-sale 151,6 reserve (88,2) (88,2) 63,4 10,6 10,6 74,0 – – – – – – – – – – – – – – – – – –

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 translation currency reserve Foreign 450,1 809,0 358,9 358,9 (17,4) (17,4) 791,6 – – – – – – – – – – – – – – – – – – Accumulated 13 198,8 13 198,8 13 152,9 13 152,9 14 373,4 14 373,4 (1 574,6) (1 732,9) (1 629,9) 1 727,1 1 727,1 1 717,4 1 717,4 (1 777,7) 3 305,6 3 305,6 3 304,7 3 304,7 (185,4) (454,3) 158,3 147,8 profits (3,3) (9,7) (0,9) – – – – – – – empowerment (2 671,9) (2 538,9) subsidiary (2 508,9) held by 204,0 entities Shares (71,0) 30,0 and 23 – – – – – – – – – – – – – – – – – – – Share-based payment 424,8 423,5 reserve (91,4) 488,5 90,1 65,0 29 – – – – – – – – – – – – – – – – – – – of theparent attributable 13 177,4 13 177,4 13 830,1 13 830,1 (1 574,6) (1 732,9) (1 629,9) to owners 1 727,1 1 727,1 1 995,1 1 995,1 (1 777,7) 15 547,6 3 305,6 3 305,6 3 252,4 3 252,4 204,0 268,0 158,3 147,8 (71,0) 90,1 30,0 (53,2) 65,0 Total 9,1 – – – – controlling (785,1) (753,9) interests 769,8 587,6 486,3 (49,0) (19,4) (19,4) (52,5) (11,5) (19,7) (19,7) (17,6) (33,7) 31,2 16,1 Non- – – – – – – – – – 13 947,2 13 947,2 13 777,6 13 777,6 16 033,9 16 033,9 (1 752,3) (1 594,0) (1 797,4) (1 649,6) 1 241,2 1 241,2 3 321,7 3 321,7 3 234,8 3 234,8 155,0 158,3 942,0 299,2 147,8 (71,0) 587,6 equity 90,1 18,5 (86,9) 65,0 Total 9,1 – – – Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 117 – – – Annual Annual financial financial 9,1 Total 65,0 (86,9) 18,5 90,1 statements equity 587,6 (71,0) 147,8 299,2 155,0 942,0 158,3 3 234,8 3 321,7 1 241,2 (1 649,6) (1 797,4) (1 594,0) (1 752,3) 16 033,9 13 947,2 13 777,6

– – – – – – – – – Non- 16,1 31,2 (33,7) (17,6) (19,7) (11,5) (19,7) (52,5) (49,0) (19,4) (19,4) 486,3 587,6 769,8 interests (753,9) (785,1) controlling – – – –

9,1 Total 65,0 (53,2) 30,0 90,1 (71,0) 147,8 158,3 268,0 204,0 3 252,4 3 305,6 15 547,6 (1 777,7) 1 995,1 1 727,1 to owners (1 629,9) (1 732,9) (1 574,6) 13 177,4 13 830,1 attributable of the parent – – – – – – – – – – – – – – – – – – – 29 65,0 90,1 488,5 (91,4) reserve 424,8 423,5 payment

Share-based

– – – – – – – – – – – – – – – – – – – 23 and 30,0 (71,0) Shares entities 204,0 held by (2 508,9) subsidiary (2 671,9) (2 538,9) empowerment – – – – – – – (0,9) (9,7) (3,3) profits 147,8 158,3 (454,3) (185,4) 3 304,7 3 305,6 (1 777,7) 1 717,4 1 727,1 (1 629,9) (1 732,9) (1 574,6) 14 373,4 13 198,8 13 152,9 Accumulated – – – – – – – – – – – – – – – – – – 791,6 (17,4) (17,4) 809,0 358,9 358,9 450,1 Foreign reserve currency translation – – – – – – – – – – – – – – – – – – 10,6 74,0 10,6 63,4 (88,2) (88,2) reserve 151,6 for-sale Available- – – – – – – – – – – – – – – – – – – 8,4 7,0 7,0 15,4 (45,5) (30,1) (45,5) hedge reserve Cash flow 4 – – – – – – – – – – – – – – – – – – – – – 3,3 (3,9) (7,2) (3,9) Other capital reserves – – – – – – – – – – – – – – – – – – – – Non-distributable reserves Non-distributable 16 of net Share 276,8 454,3 earnings 1 760,2 2 214,5 1 483,4 of associates – – – – – – – – – – – – – – – – – – – – – 22 and 9,1 Share capital 148,5 139,4 148,5 premium 2, 3 3 1 1 5 Total dividends Total Less: Dividends on empowerment shares dividends Total Less: Dividends on empowerment shares Relates to the exercising of options vested post the December 2014 lock-in period in terms to the exercising of options vested Managers Participation of the Black Relates Rights Scheme (BMT). and loss.During the current period, R99,1 million of the FCTR relating to TBCG was reclassified to profit The other comprehensive income for the FCTR includes the amounts related to the associates of R127,7 million (2015: R281,7 million). The other comprehensive income for the FCTR includes the amounts related to the associates Included in other capital reserves are legal reserve countries. transfers of African subsidiaries due to statute in the respective foreign million (2015: Rnil). Included in the movement of the share-based payment are options exercised amounting to R5,9 Profit for the year income for the year Other comprehensive Profit for the year Other comprehensive income for the year Sale of shares by empowerment entity Balance at 30 September 2016 Group 2014 Balance at 1 October income comprehensive Total Issue of share capital and premium Subsidiary – legal reserve transfer between reserves Transfers Share-based payment Dividends on ordinary shares empowerment shares by Purchase of Tiger entity Sale of shares by empowerment entity Balance at 30 September 2015 income comprehensive Total Disposal of subsidiary between reserves Transfers Share-based payment Dividends on ordinary shares Refer to note: 1 2 3 4 5 (R’million) 118 Tiger Brands Limited Annual financial statements 2016 for theyearended30September2016 Statements ofchangesinequity (R’million) 30 September 2016 Balance at Dividends on ordinary shares Dividends onordinary Share-based payment premium Issue ofsharecapitaland Total comprehensiveincome 30 September 2015 Balance at Dividends on ordinary shares Dividends onordinary Share-based payment premium Issue ofsharecapitaland Profit fortheyear Total comprehensiveincome expense fortheyear Other comprehensive Balance at1October2014 Company Profit fortheyear income for theyear Other comprehensive premium 148,5 139,4 148,5 capital Share 9,1 and – – – – – – – 2 918,6 2 918,6 2 918,6 2 918,6 2 918,6 2 918,6 distribu- reserves table Non – – – – – – – – Non-distributable reserves reserves capital 19,3 19,3 Other 19,3 continued – – – – – – – – reserve hedge Cash flow – – – – – – – – – – – Available- for-sale reserve (1,6) (1,6) (0,7) (0,7) 4,4 6,0 3,7 – – – – – –

(1 785,6) (1 831,0) 5 680,6 5 680,6 1 399,0 1 399,0 6 067,2 6 067,2 1 399,0 1 399,0 6 255,0 6 255,0 2 405,4 2 405,4 2 405,4 2 405,4 Accumu- profits lated – – – payment 442,6 398,3 reserve 475,9 Share- based 44,3 33,3 – – – – – the parent (1 785,6) owners of (1 831,0) 9 214,0 9 214,0 1 397,4 1 397,4 9 548,8 9 548,8 1 399,0 1 399,0 9 821,0 9 821,0 2 404,7 2 404,7 2 405,4 2 405,4 table to attribu- 44,3 33,3 (1,6) (0,7) Total 9,1 –

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 119

Annual Annual financial financial statements

Reclassifies to the income statement the amounts Reclassifies to the income income in relation to recognised in other comprehensive the subsidiary required if on the same basis as would be disposed of the related assets and the parent had directly liabilities. Recognises any surplus or deficit in profit or loss any surplus or deficit Recognises • • • • Foreign currencies Foreign currency transactions statements are presentedThe consolidated financial in functional and South Africanis the company’s rand, which Each foreign entity in the group presentation currency. in Transactions determines its own functional currency. the functional foreign currencies are initially recorded in currency at the rate of the of exchange ruling at the date transaction. of foreign currency transactions Translation Monetaryliabilities denominated in foreign assets and currency rate of currencies are retranslated at the functional exchange ruling at the reporting date. Exchange differences are taken to profit or loss, except for differences arising on a hedge against a foreign currency borrowings that provide These are taken directly to net investment in a foreign entity. annual other comprehensive income, in the consolidated the net investment, financial statements, until the disposal of Tax or loss. at which time they are recognised in profit charges and credits attributable to such exchange differencesfor in other comprehensive are also accounted income. If non-monetarymeasured in a foreign currency are items used is the rate carried at historical cost, the exchange rate they are carried applicable at the initial transaction date. If date when the at fair value, the rate used is the rate at the fair value was determined. The gain or loss arising on retranslation of non-monetary items is treated in line with the recognition of gain or loss on change in fair value of the item (ie translation differences on items whose fair value gain or loss is recognised in other comprehensive income or profit or loss is also recognised in other comprehensive income or profit or loss respectively). Foreign operations At the reporting date, the assets and liabilities of the foreign operations are translated into the presentation currency of the group (rand) at the exchange rate ruling at the reporting date. The income statement is translated at the weighted Exchange differences average exchange rate for the year. are taken directly to a separate component of other comprehensive income. On disposal of a foreign operation, the deferred cumulative amount recognised in other comprehensive income relating to that particular foreign operation is recognised in the income statement. Goodwill and fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of that foreign operation, and are translated at the closing rate.

Recognises the fair value of any investment retained Recognises the fair value of the consideration received Derecognises the carrying amount of any non-controlling interest Derecognises the assets (including goodwill) and liabilities of the subsidiary The ability to use its power over the investee to affect the returns. amount of the investor’s Exposure, or rights, to variable returns from its involvement with the investee Power over the investee • • • • • • • • • • • If the group loses control over a subsidiary, it: If the group loses control over a subsidiary, Losses are attributed to the non-controlling interest even if that results in a deficit balance. A change in the ownership interest of a subsidiary, without A change in the ownership interest of a subsidiary, a change of control, is accounted for as an equity transaction. • • • In assessing control (direct or de facto control) the following is considered: The consolidated financial statements include the financial The consolidated financial statements include (as well as statements of the company and its subsidiaries or company). The structured entities controlled by the group prepared for the financial statements of the subsidiaries are same reporting accounting policies. period using consistent Where the financial year end of a subsidiary is not coterminousthe accounting policies with that of the group or accounting adopted by the subsidiary differ from the group’s policies, the financial statements of the subsidiary are accounting policies adjusted in accordance with the group’s and year end. Basis of consolidation The consolidated financial statements have been prepared The consolidated financial statements have in accordance with International Reporting Financial Interpretations Standards (IFRS), IFRIC Interpretations (IFRS of 2008. Committee) and the Companies Act No 71 Statement of compliance Basis of preparation been prepared The consolidated financial statements have measured at on the historical cost basis, except for items The consolidated financial fair value as indicated below. statements are stated in rand millions. Corporate information Tiger Brands statements of The consolidated financial (the Brands group and the Tiger Limited (the company) 30 September 2016 were group) for the year ended accordance with a resolution of the authorised for issue in Limited is Brands 2016. Tiger directors on 22 November in South Africa, where the incorporated and domiciled shares are publicly traded. Accounting policies Accounting Notes to the financial statements to the financial Notes 2016 ended 30 September for the year 120 Tiger Brands Limited Annual financial statements 2016 interest in theunderlying associate. group andassociates areeliminatedtotheextent ofthe Profits andlosses resultingfromtransactionsbetween the share intheconsolidatedother comprehensive income. recognisesits comprehensive income,thegroup inturn directly inother an associaterecognisesentry ofthegroup’sin excess interestarenotrecognised.Where associate’s profitorloss.However, anassociate’s losses The incomestatementreflectsthe group’s shareofthe separately forimpairment. amountof the investmentandisnottested carrying in the accounting. Goodwillrelatingtoanassociateisincluded Associates areaccountedforusingtheequitymethodof norajointarrangement. subsidiary and operatingpolicydecisions.Theentityisneithera inthefinancial significant influencethroughparticipation An associateisanentityoverwhichthegrouphas Associates losses. associate companiesatcostlessaccumulatedimpairment The companycarriesitsinvestmentsinsubsidiariesand (b) (a) adjustments asfollows: contingent considerationthatarenotmeasurementperiod acquirer shallaccountforchangesinthefairvalueof wherethe are recognisedinaccordancewithIFRS 3.58 consideration whichisdeemedtobeanassetorliability, Subsequent changestothefairvalueofcontingent acquirer isrecognisedatfairvaluetheacquisitiondate. Any contingentconsiderationtobetransferredbythe theacquisitiondatethroughprofitorloss. as at equity interestintheacquireeisremeasuredtofairvalue acquisition datefairvalueoftheacquirer’s previouslyheld If thebusinesscombinationisachievedinstages, Acquisition costsincurredareexpensed. shareoftheacquiree’sproportionate identifiablenetassets. interest intheacquireeeitheratfairvalueor combination, theacquirermeasuresnon-controlling non-controlling interestintheacquiree.Foreachbusiness at acquisitiondatefairvalueandtheamountofany as theaggregateofconsiderationtransferred,measured acquisition method.Thevalueofanismeasured Business combinationsareaccountedforusingthe Business combinations Interest ingroupcompanies for theyearended30September2016 Notes tothefinancialstatements (ii) (i) Other contingentconsiderationthat: accounted forwithinequity be remeasuredanditssubsequentsettlementshall Contingent considerationclassifiedasequityshallnot in fair valueshallberecognisedinprofitorloss. in fair dateandchanges at fairvalueeachreporting is notwithinthescopeofIAS39shallbemeasured withthatIFRS in accordance valueshallberecognisedinprofitorloss in fair dateandchanges valueateachreporting at fair is withinthescopeofIAS39shallbemeasured continued indicated inIFRS8OperatingSegments. individuallydonotmeetthequalitativethresholds as they (includingExports) ofInternational included intheportion entitiesare A numberofsegmentscomprisinginternational performance. about allocatingresourcestothesegmentandassessingits totheCODMforpurposesofmakingdecisions is reported ofthegroup’sThe financialinformation segments reportable would havebeenenteredintoinamarket-relatedtransaction. andconditionsas were enteredintounderthesameterms intersegment salesandtransfersasifthe segments basedonoperatingprofit.Thegroupaccountsfor ofitsreportable The groupevaluatestheperformance segments). products theymanufactureandmarket(referredtoasbusiness andthe bytheactivitiesthateachundertakes differentiated segmentsareoperatingthat reportable Thegroup’s decisionsandassessperformance. key operating used bythechiefoperatingdecision-maker(CODM)tomake segmentsthatcomprisethestructure The grouphasreportable Segment reporting accounting policies. the group, appropriateadjustmentsaremadetoconform the associate’s fromthoseofthe accountingpoliciesdiffer significant transactionsbetweentherelevantdates.Where no morethanthreemonths.Adjustmentsaremadefor is financial statementsareusedwherethedatedifference samedateasthegroup.Ifthisisimpracticable, of the group’s, theassociatepreparesfinancialstatementsas Where anassociate’s fromthe datediffers reporting recognised inprofitorloss. lossesare valuelesscostofdisposal.Impairment or fair valueandthehigherofitsinuse current carrying betweenthe iscalculatedasthedifference impairment Ifapplicable,the assessed forindicatorsofimpairment. After applicationoftheequitymethod,eachinvestmentis year end.Anyadjustmentsareaccounted forprospectively. depreciation methodisreviewed atleasteachfinancial available foruse.Anasset’s residualvalue,usefullifeand whentheassetis over itsusefullife.Depreciation starts betweenthecostand residual valueofanasset, difference Depreciation iscalculatedonastraight-linebasis,the recognition criteriaaremet. item, isaccountedforasseparatecomponentsifthe incurred onmajorinspectionandoverhaul,ortoreplacean losses.Expenditure depreciation andaccumulatedimpairment lessaccumulated the costsofday-to-dayservicing, Property, plantandequipment arestatedatcost,excluding Property, plantandequipment

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 121

1 – 20 years 5 – 15 years Annual Annual financial financial statements

Customer and supplier-related intangibles Customer and supplier-related indefinite useful lives are not amortisedIntangible assets with for impairmentbut are tested annually either individually or level. The useful lives are also at the cash-generating reviewed each period to determine the indefinite whether life assessment continues to be supportable. If not, the life is change in the useful life assessment to a finite accounted for prospectively. Certain to have indefinite trademarks have been assessed limit to theuseful lives, as presently there is no foreseeable to generate period over which the assets can be expected cash flows for the group. Research and development costs Research costs, being the investigation undertaken with the understanding, prospect of gaining new knowledge and are recognised as they as an expense in profit or loss are incurred. of research Development costs arise on the application of new or findings to plan or design for the production or services,substantially improved materials, products before the start Development of commercial production. can demonstrate costs are only capitalised when the group project, its the technical feasibility of completing the intention and ability to complete the project and use or sell the materials, products or services flowing from the project, how the project will generate future economic benefits, the availability of sufficient resources and the ability to measure reliably the expenditure during development. Otherwise development costs are recognised as an expense in profit or loss. During the period of development, the asset is tested annually for impairment. Following the initial recognition of the development costs, the asset is carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation begins when development is complete. The development costs are amortised over the period of expected future sales. Derecognition of intangible assets An intangible asset is derecognised on disposal; or when no future economic benefits are expected from its use. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in profit or loss when the asset is derecognised. The amortisation at each and method are reviewed period Changes in the expected useful life or financial year end. pattern of future benefits are accounted for of consumption prospectively. have been estimated: The following useful lives and other Trademarks

40 years 20 – 50 years Shorter lease term of the or useful life 3 – 5 years 5 – 15 years Not depreciated The following useful lives have been estimated: useful lives have The following Freehold land – general purpose – specialised Leasehold improvements and computer equipment Vehicles Plant and equipment plant and equipment is derecognised An item of property, benefits are upon disposal or when no future economic on expected from its use. Any gain or loss arising differencederecognition of the asset (calculated as the carryingbetween the net disposal proceeds and the amount the year the asset of the asset) is included in profit or loss in is derecognised. Freehold buildings Intangible assets with finite lives are amortised over their useful life and assessed for impairment when there is an indication that the asset may be impaired. The useful lives of intangible assets are either finite or indefinite. Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of an intangible asset acquired in a business combination is the fair value at the date of intangible assets are carried at acquisition. Subsequently, cost less any accumulated amortisation and accumulated impairment losses. Unless internally generated costs meet the criteria for development costs eligible for capitalisation in terms of IAS 38 (refer to research and development costs accounting policy below), all internally generated intangible assets are expensed as incurred. Goodwill is reviewed annually for impairment, or more frequently if there is an indicator of impairment. Goodwill is to benefit from theallocated to cash-generating units expected amountsynergies of the combination. When the recoverable of a cash-generating unit is less than its carrying amount, an impairment loss is recognised in profit or loss. The impairment loss is allocated first to any goodwill assigned to the unit, and then to other assets of the unit pro rata on the basis of their carrying values. Impairment losses recognised for goodwill cannot be reversed in subsequent periods. Goodwill and intangible assets Goodwill the excess of Goodwill is initially measured at cost being net identifiable the consideration transferred over the group’s this consideration assets acquired and liabilities assumed. If of the subsidiaryis lower than the fair value of the net assets acquired, the difference or loss is recognised as in profit a “gain to on bargain purchase”. Goodwill relating is subsequently subsidiaries is recognised as an asset and measured at cost less accumulated impairment losses. Notes to the financial statements continued for the year ended 30 September 2016

Impairment of non-financial assets Classification The group assesses tangible and intangible assets, The group’s classification of financial assets and financial excluding goodwill, development assets not yet available liabilities are as follows: for use and indefinite life intangible assets, at each reporting date for an indication that an asset may be Description of asset/liability Classification impaired. If such an indication exists, the recoverable Investments Available-for-sale amount is estimated as the higher of the fair value less cost Derivatives Financial instruments at fair of disposal and the value in use. If the carrying value value through profit or loss exceeds the recoverable amount, the asset is impaired and Loans and advances receivable Loans and receivables is written down to the recoverable amount. Where it is not Loans to subsidiaries Loans and receivables possible to estimate the recoverable amount of an individual Trade and other receivables Loans and receivables asset, the recoverable amount of the cash-generating unit to which the asset belongs is estimated. Cash and cash equivalents Loans and receivables Loans payable and borrowings Financial liabilities at In assessing value in use, the estimated future cash flows amortised cost are discounted to their present value using an appropriate Trade and other payables Financial liabilities at pre-tax discount rate that reflects current market assessments amortised cost of the time value of money and the risks specific to the Loans from subsidiaries Financial liabilities at asset. In determining fair value less cost of disposal, the fair amortised cost value is determined in terms of IFRS 13. This is measured using the assumptions that market participants would use Available-for-sale financial assets when pricing the asset, assuming that market participants These are non-derivative financial assets that are designated act in their economic best interest. A fair value measurement as available-for-sale or are not classified as loans and of a non-financial asset takes into account a market receivables or held-to-maturity investments or financial assets Annual financial statements 2016 participant’s ability to generate economic benefits by using at fair value through profit or loss. the asset in its highest and best use or by selling it to another market participant that would use the asset in 122 Available-for-sale financial assets are subsequently measured its highest and best use. at fair value with unrealised gains or losses recognised directly in other comprehensive income. When such a For assets excluding goodwill, an assessment is made at financial asset is disposed of, the cumulative gain or loss each reporting date as to whether there is any indication previously recognised in other comprehensive income is that previously recognised impairment losses may no longer recognised in profit or loss. Interest earned on the financial exist or may have decreased. If such an indication exists, asset is recognised in profit or loss using the effective the group estimates the asset’s or cash-generating unit’s interest rate method. Dividends earned are recognised in Tiger Brands Limited Tiger recoverable amount. A previously recognised impairment profit or loss when the right of receipt has been established. loss is reversed only if there is a change in the estimates used to determine the asset’s recoverable amount since the Loans and receivables last impairment loss was recognised. If this is the case, the Loans and receivables are non-derivative financial assets with carrying amount of the asset is increased to the revised fixed or determinable payments that are not quoted in an recoverable amount, but not in excess of what the carrying active market. After initial recognition, loans and receivables amount would have been had there been no impairment. are measured at amortised cost, using the effective interest A reversal of an impairment loss is recognised directly in rate method, less impairment losses. profit or loss. Gains and losses are recognised in profit or loss when the Financial instruments loans and receivables are derecognised or impaired, as well Financial instruments are initially recognised when the group as through the amortisation process. becomes a party to the contract. The group has adopted trade date accounting for “regular way” purchases or sales Financial liabilities at amortised cost of financial assets. The trade date is the date that the group After initial recognition, liabilities that are not carried at fair commits to purchase or sell an asset. value through profit or loss are measured at amortised cost using the effective interest rate method. Financial instruments are initially measured at fair value plus transaction costs, except that transaction costs in respect of Gains and losses are recognised in profit or loss when the financial instruments classified at fair value through profit or liabilities are derecognised as well as through the loss are expensed immediately. Transaction costs are the amortisation process. incremental costs that are directly attributable to the acquisition of a financial instrument, ie those costs that would not have been incurred had the instrument not been acquired. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

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Annual Annual financial financial statements

If, in a subsequent period, the amount of the impairment period, the amount If, in a subsequent relates objectively to an eventdecreases and the decrease occurring after the impairment, it is reversed to the extent that the carrying value does not exceed the amortised cost. Any an impairmentsubsequent reversal of loss is recognised in profit or loss. Derivative instruments instruments whose value changes Derivatives are financial require little or no net in response factor, to an underlying at a future date. Derivatives, other investment and are settled designated hedges, are measured at than those arising on fair value in with changes in fair value being recognised profit or loss. Hedge accounting group formallyAt the inception of a hedge relationship, the to which thedesignates and documents the hedge relationship the riskgroup wishes to apply hedge accounting and management objective and strategy for undertaking the hedge. the hedgingThe documentation includes identification of nature of the riskinstrument, the hedged item or transaction, the the hedgingbeing hedged and how the entity will assess effectiveness in offsetting the exposure to changes instrument’s fair value or cash flows attributable to the in the hedged item’s be highly effectivehedged risk. Such hedges are expected to in achieving offsetting value or cash flows and changes in fair are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reportingwere designated. periods for which they Fair value hedges in the fair Fair value hedges cover the exposure to changes or an unrecognised value of a recognised asset or liability, firm risk). Foreign commitment (except for foreign currency currency risk of an unrecognised firm commitment is accounted for as a cash flow hedge. The gain or loss on the hedged item adjusts the carrying amount of the hedged item and is recognised immediately in profit or loss. The gain or loss from remeasuring the hedging instrument at fair value is also recognised in profit or loss. When an unrecognised firm commitment is designated as a hedged item, the change in the fair value of the firm commitment is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss. The change in the fair value of the hedging instrument is also recognised in profit or loss in the “Operating income/(loss) before abnormal items” line in the income statement. The group discontinues fair value hedge accounting if the hedging instrument expires or is sold, terminated or exercised, the hedge no longer meets the criteria for hedge accounting or the group revokes the designation.

The group assesses whether there is objective evidence of impairment. In relation to trade receivables, a provision for impairment is made when there is objective evidence (such as the probability of insolvency or significant financial difficulties of the debtor) that the group will not be able to collect all of the amounts due under the original terms of the sale. The carrying amount of the asset is reduced through the use of an allowance account, and is recognised in profit or loss. Impaired debts are derecognised when they are assessed as uncollectible. Loans and receivables If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the carrying amount and the difference between the asset’s present value of the estimated future cash flows (excluding original future expected credit losses) discounted at the asset’s effective interest rate. Reversals in respect of equity instruments classified as available-for-sale are not recognised in profit or loss. Reversals of impairment losses on debt instruments are reversed through profit or loss. If an available-for-sale asset is impaired, the respective other If an available-for-sale asset is impaired, the to profit or loss. comprehensive income amount is transferred Available-for-sale financial assets Available-for-sale as available-for- In the case of equity investments classified significant or sale, objective evidence would include a investment below prolonged decline in the fair value of the the original its cost. “Significant” is to be evaluated against the period cost of the investment and “prolonged” against in which cost. the fair value has been below its original externalFactors taken into consideration would include market and economic outlook reports, observable trends and cyclicality. Impairment of financial assets The group assesses at each reporting date whether there is asset, or objective evidence indicating that a financial group of financial assets, is impaired. An analysis of fair values of financial instruments and furtherAn analysis of fair values of financial instruments details as to how they in note are measured are provided 33. Fair value investments is the quoted market bidThe fair value of listed price at on the reporting the close of business date. For fair value is determinedunlisted investments, the using techniques. The group uses valuationappropriate valuation in the circumstances and fortechniques that are appropriate which sufficient data are available to measure fair value, maximising the use of relevant observable and inputs unobservableminimising the use of Such techniques inputs. length market transactions, include using recent arm’s market value of similar instruments,reference to the current analysis and option-pricing models.discounted cash flow Notes to the financial statements continued for the year ended 30 September 2016

Cash flow hedges Non-current assets held for sale and discontinued Cash flow hedges cover the exposure to variability operations in cash flows that are attributable to a particular risk An item is classified as held for sale if its carrying amount associated with: will be recovered principally through a sale transaction •• A recognised asset or liability rather than through continuing use. This condition is •• A highly probable forecast transaction regarded as met only when the sale is highly probable and •• The foreign currency risk in an unrecognised firm the asset or disposal group is available for immediate sale commitment. in its present condition. For a sale to be highly probable, management must be committed to the sale at a price The portion of the gain or loss on the hedging instrument that is reasonable to its current fair value and an active that is determined to be an effective hedge is recognised programme to locate a buyer and complete the plan directly in other comprehensive income, while any must be initiated. This should be expected to qualify for ineffective portion is recognised in profit or loss. recognition as a completed sale within one year from the date of classification. Amounts taken to other comprehensive income are transferred to profit or loss when the hedged transaction Assets classified as held for sale are not subsequently affects profit or loss, such as when the hedged income or depreciated and are held at the lower of their carrying financial asset or liability is recognised or when the forecast value and fair value less cost to sell. sale or purchase occurs. Where the hedged item is the cost of a non-financial asset or liability, the amount deferred in A discontinued operation is a separate major line of other comprehensive income is transferred to the initial business, separate component or geographical area of carrying amount of the non-financial asset or liability. operation that has been disposed of, or classified as held for sale, as part of a single coordinated plan. A subsidiary If the forecast transaction is no longer expected to occur, acquired exclusively with a view to resale and that meets

Annual financial statements 2016 amounts previously recognised in other comprehensive the criteria of a non-current asset held for sale is also income are transferred to profit or loss. If the hedging defined as a discontinued operation. 124 instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation is revoked, In the consolidated income statement of the reporting period amounts previously recognised in other comprehensive and of the comparable period, income and expenses from income remain in other comprehensive income until the discontinued operations are reported separate from income forecast transaction occurs. If the related transaction is not and expenses from continuing activities down to the level of expected to occur, the amount is taken to profit or loss. profit after taxes, even when the group retains a non- controlling interest in the subsidiary after the sale. The Hedges of a net investment in a foreign operation resulting profit or loss (after taxes) is reported separately

Tiger Brands Limited Tiger Hedges of a net investment in a foreign operation, including in the income statement. a hedge of a monetary item that is accounted for as part of the net investment, are accounted for similarly to cash flow Inventories hedges. On consolidation, gains or losses on the hedging Inventories are stated at the lower of cost or net realisable instrument relating to the effective portion of the hedge are value. Costs incurred in bringing each product to its present recognised in other comprehensive income, while any gains location and conditions are accounted for as follows: or losses relating to the ineffective portion are recognised in Raw materials: Purchase cost on a first-in first-out profit or loss. On disposal of the foreign operation, the basis. cumulative gain or loss recognised in other comprehensive Finished goods and Cost of direct material and labour income is transferred to profit or loss. work in progress: and a proportion of manufacturing overheads based on normal Derecognition of financial assets and financial liabilities operating capacity but excluding Financial assets or parts thereof are derecognised when: borrowing costs. •• The right to receive the cash flows have expired • • The right to receive the cash flows is retained, but an Consumables are written down with regard to their age, obligation to pay them to a third party under a “pass- condition and utility. through” arrangement is assumed • • The group transfers the right to receive the cash flows, Costs of inventories include the transfer from other and also transfers either all the risks and rewards, or comprehensive income of gains and losses on qualifying control over the asset. cash flow hedges in respect of the purchases of raw materials. Financial liabilities are derecognised when the obligation is discharged, cancelled or expired. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 125

Annual Annual financial financial statements

Abnormal items Abnormal expenditure which items are items of income and are not directly attributable to normaloperations or where disclosure is their size or nature are such that additional considered appropriate. Taxation The income tax expense represents the sum of current tax payable (both current and deferred). Normal tax – current The normal tax is based on taxable profit for the year. profit differs from profit as reported in the income Taxable statement because it excludes items of income or expense that are taxable or deductible in other years, and it further excludes items that are never taxable or deductible. Normal tax may include under or overprovisions relating to prior year liability for normal tax is calculated taxation. The group’s using tax rates that have been enacted or substantively enacted by the reporting date. Normal tax relating to items recognised outside profit or loss is recognised outside profit or loss. Normal tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity. Sale of goods goods is recognised when the from the sale of Turnover rewards of ownership have passed significant risks and goods. usually on dispatch of the to the buyer, Dividend income right to when the group’s Dividend income is recognised Non-resident shareholders’ receive payment is established. respect of foreign dividends taxation is provided in receivable, where applicable. Interest received For all financial instruments measured at amortised cost, using the effectiveinterest received or expensed is recorded discounts the interest rate, which is the rate that exactly through the estimated future cash payments or receipts a shorterexpected life of the financial instrument or period, where appropriate, to the net carrying amount of the Interest received is included in financial asset or liability. finance income in the income statement. Borrowing costs acquisition, Borrowing costs directly attributable to the necessarily takes construction or production of an asset that its intended use a substantial period of time to get ready for or sale are capitalised as part the cost of the respective of in the period assets. All other borrowing costs are expensed Borrowing costs consist of interest and other they occur. the borrowing costs that an entity incurs in connection with of funds.

Net realisable value is the estimated selling price in the selling price in value is the estimated Net realisable ordinary completion and course of business, less estimated selling costs. Revenue comprises turnover, rental income, dividend income rental income, dividend Revenue comprises turnover, and interest income. Revenue is measured at the fair value of the consideration received/receivable excluding value added tax, normal discounts, rebates, settlement discounts, promotional allowances, and internal revenue which is eliminated on consolidation. Revenue Group as a lessor Leases in which the group does not transfer substantially all the risks and benefits of ownership as an asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned. Operating leases are those leases which do not fall within the scope of the definition of a finance lease. Operating lease rentals are charged against trading profit on a straight-line basis over the lease term. Capitalised lease assets are depreciated in line with the Capitalised lease assets are depreciated depreciation policy for each asset. If there is stated group’s no reasonable certainty group will obtain ownership that the by the end of the lease term, depreciated over the asset is the shorter life and lease term. of its estimated useful Leases are classified as finance leases where substantially Leases are classified as finance leases ownership of an all the risks and rewards associated with group as lessee. asset are transferred from the lessor to the at the Finance lease assets and liabilities are recognised or the present lower of the fair value of the leased assets lease value of the minimum lease payments. Finance payments are allocated, using the effective interest rate which is included method, between the lease finance cost, which in financing costs, and the capital repayment, reduces the liability to the lessor. Leases Group as a lessee to determineAt inception date an arrangement is assessed is whether it is, or contains, a lease. An arrangement on the use accounted for as a lease where it is dependent to use that asset. of a specific asset and it conveys the right Provisions when the group has a present Provisions are recognised as a result of past events, legal or constructive obligation, that an outflow of economic benefits for which it is probable the obligation, and a reliable will be required to settle of the amount of the obligation. estimate can be made Notes to the financial statements continued for the year ended 30 September 2016

Normal tax – deferred •• Receivables and payables that are stated with the amount Deferred tax is calculated on the liability method. of value added tax included.

Deferred tax liabilities are recognised for taxable temporary The net amount of value added tax recoverable from, or differences except: payable to, the taxation authority is included as part of •• Where the “initial recognition exception” applies receivables or payables in the statement of financial •• In respect of outside temporary differences relating position. to subsidiaries, associates and joint arrangements. Employee benefits Deferred tax assets are recognised for all deductible A liability is recognised when an employee has rendered temporary differences, carry forward of unused tax credits services for benefits to be paid in the future, and an and unused tax losses, where it is probable that the asset expense when the entity consumes the economic benefit will be utilised in the foreseeable future except: arising from the service provided by the employee. •• Where the “initial recognition exception” applies •• In respect of outside temporary differences relating In respect of defined contribution plans, the contribution to subsidiaries, associates and joint arrangements. paid by the company is recognised as an expense.

The carrying amount of deferred tax assets is reviewed at In respect of defined benefit plans, the company’s each reporting date and reduced to the extent that it is contributions are based on the recommendations of no longer probable that sufficient taxable profits will be independent actuaries and the liability is measured using available to allow all or part of the asset to be recovered. the projected unit credit method. Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent it has become Remeasurements, comprising actuarial gains and losses, the probable that future taxable profit will allow the asset to be effect of the asset ceiling, excluding amounts included in net

Annual financial statements 2016 utilised. interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on 126 Deferred tax is calculated at the tax rates that are expected the net defined benefit liability), are recognised immediately to apply in the period when the liability is settled or the asset in the statement of financial position with a corresponding realised based on tax rates and tax laws that have been debit or credit to retained earnings through other enacted or substantively enacted by the reporting date. comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss in Deferred tax relating to items recognised outside profit or loss subsequent periods. is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either Past service costs are recognised in profit or loss on the

Tiger Brands Limited Tiger in other comprehensive income or directly in equity. earlier of: •• The date of the plan amendment or curtailment Deferred tax assets and deferred tax liabilities are offset, if •• The date that the group recognises related restructuring a legally enforceable right exists to set off current tax assets costs. against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation Net interest is calculated by applying the discount rate authority. to the net defined benefit liability or asset. The group recognises the following changes in the net defined benefit Dividend withholding tax obligation under “cost of sales”, “administration expenses” A dividend withholding tax of 15% is withheld on behalf and “selling and distribution expenses” in the consolidated of the taxation authority on dividend distributions where statement of profit or loss (by function): applicable. The net amount payable to the taxation authority •• Service costs comprising current service costs, past service is included as part of trade and other payables at the time costs, gains and losses on curtailments and non-routine a dividend is declared. settlements •• Net interest expense or income. Value added tax Revenues, expenses and assets are recognised net of the Post-retirement medical obligations amount of value added tax except: The group provides post-retirement healthcare benefits to •• Where the value added tax incurred on a purchase of certain of its retirees based on the qualifying employee assets or services is not recoverable from the taxation remaining in service up to retirement age in the form of a authority, in which case the value added tax is recognised defined benefit medical plan. The expected costs of these as part of the cost of acquisition of the asset or as part of benefits are accrued over the period of employment, using the expense item as applicable the projected unit credit method. Valuations are based on WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 127

Annual Annual financial financial statements

Accounting for BEE transactions black economic Where equity instruments are issued to a empowerment (BEE) party less than fair value, the at payments instruments are accounted for as share-based in terms of the stated accounting policy. A restriction on the BEE party transfer the equity instrument to a vesting subsequent to its vesting is not treated as condition, but is factored into the fair value determination of the instrument. shares Treasury Brands Limited held by the group are Shares in Tiger classified within total equity as treasury shares. The shares (I and II), Thusani acquired by the Black Managers Trust Brands Foundation Brimstone SPV and The Tiger Trust, are accounted for as treasury shares in line with the consolidation requirement for special-purpose entities. shares are treated as a deduction from the issued Treasury and weighted average number of shares for earnings per share and headline earnings per share purposes, and the cost price of the shares is reflected as a separate component of capital and reserves in the statement of financial position. Dividends received on treasury shares are eliminated on consolidation. No gain or loss is recognised in the income statement on the purchase, sale, issue or cancellation of treasury shares. Consideration received or paid in respect of treasury shares is recognised in equity. market or non-vesting condition is satisfied, provided that all is satisfied, provided condition market or non-vesting other performance and/or service conditions are satisfied. award is cancelled (other than Where an equity-settled forfeiture), is treated as if it had vested on the date it of cancellation, expense recognised and any unrecognised award is substituted and designated If a new immediately. the cancelled award, the cancelled as a replacement for treated as if they were a modification and new awards are as described above. of the original award, The dilutive effect is of outstanding equity-settled options computation of reflected as additional share dilution in the earnings and headline earnings share. per Cash-settled transactions the general The cost of cash-settled transactions such as employee share option plan portion is measured initially at version of the fair value at the grant date using a modified the termsBlack-Scholes model, taking into account and granted (see conditions upon which the instruments were the period until note 29). This fair value is expensed over The liability. vesting with recognition of a corresponding liability is remeasured at each reporting date up to and in fair value including the settlement date with changes recognised in profit or loss.

Actuarial gains or losses are recognised in the same manner Actuarial gains or losses benefit pension obligations noted in the as those of defined policy. previous accounting assumptions which include employee turnover, mortality turnover, which include employee assumptions on current bond yields of rates, discount rates based appropriate terms, healthcare inflation costs and rates of obligations are of these increase in salary costs. Valuations qualified actuaries. carried out by independent No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions where vesting is conditional upon a market or non-vesting condition, which are treated as vesting irrespective of whether or not the The cost of equity-settled transactions is recognised, together over the period in with a corresponding increase in equity, which the service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the ward (the vesting date). The cumulative expense recognised reflects the extent to which the vesting period best estimate of the number has expired and the group’s of equity instruments that will ultimately vest. The income statement charge for a period represents the movement in the cumulative expense at the beginning and end of that period. Shares awarded to employees in terms of the rules of the are measured Incentive Plan (LTIP) Brands Long-Term Tiger by reference they are to the fair value at the date on which granted. The fair value is determined by an external valuer using a modified version of the Black-Scholes model or Monte-Carlo simulation, further details of which are given in note 29. Equity-settled and cash-settled share options Equity-settled and cash-settled share options Equity-settled transactions managers Under the scheme, executives and selected of Tiger is offered, Brands Limited and its subsidiaries on an annual basis, a weighted combination of share appreciation rights, performance shares, restricted shares matching) linked to the annual cash bonus scheme (bonus portionand restricted shares linked to a deferred of bonuses received by these employees. All these are components payments in accounted for as equity-settled share-based plan portionaddition to the general employee share option and the black managers participation right scheme. Certain group (including senior executives) of the employees receive remuneration in the form payment of share-based transactions, whereby employees render services as consideration for equity instruments (equity-settled transactions) or share classified appreciation rights (that are as cash-settled transactions). Share-based payments Notes to the financial statements continued for the year ended 30 September 2016

Contingent assets and contingent liabilities •• The inability of the group to unilaterally appoint the A contingent asset is a possible asset that arises from past majority of board members of the investee events and whose existence will be confirmed by the •• The absence of related key management between the occurrence or non-occurrence of one or more uncertain group and the investee future events not wholly within the control of the company. •• Composition of the investee’s board and board Contingent assets are not recognised as assets, but appointees of the group disclosed. •• The lack of any contractual or legal rights conferred upon the group by the investee or any other shareholder of the A contingent liability is a possible obligation that arises from investee to direct its activities. past events and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain Detailed disclosures of non-controlling interests future events not wholly within the control of the company. The group does not have subsidiaries that have a material Alternatively, it may be a present obligation that arises from non-controlling interest in the context of the group and past events but is not recognised because an outflow of accordingly detailed non-controlling interest disclosure is not economic benefits to settle the obligation is not probable, required in the current year in terms of IFRS 12 Disclosure of or the amount of the obligation cannot be measured with Interests in Other Entities. In determining whether or not any sufficient reliability. Contingent liabilities are not recognised non-controlling interests are material, the group considered as liabilities unless they are acquired as part of a business the share of the individual non-controlling interests in the combination, but disclosed. consolidated net assets of the group. In addition, the total non-controlling interest is below 10% of the group’s Events after the reporting date consolidated net assets and hence considered not to Recognised amounts in the financial statements are adjusted be material to the group. to reflect significant events arising after the reporting date, but before the financial statements are authorised for issue, Detailed disclosures of investment in associates provided there is evidence of conditions that existed at the The group does have associate interests that are, in

Annual financial statements 2016 reporting date. Events after the reporting date that are aggregate, material in the context of the group and indicative of conditions that arose after the reporting date accordingly detailed disclosure requirements in terms of IFRS 12 Disclosure of Interests in Other Entities is 128 are dealt with by way of a note. assessed on an annual basis. In determining whether or not Significant accounting judgements and estimates any individual associate is material, the group considers a Judgements combination of the share of the individual associate In the process of applying the group’s accounting policies, interest in the operating income before impairments and management has made the following judgements, apart abnormal items, other comprehensive income, headline from those involving estimations, which have the most earnings as well as total assets of the group. A 10% significant effect on the amounts recognised in the financial threshold is used to assess the above mentioned factors. statements: Tiger Brands Limited Tiger Deferred tax assets Consolidation of structured entities Deferred tax assets are recognised for all unused tax losses The structured entities established in terms of the BEE to the extent that it is probable that taxable profit will be transaction implemented in October 2005 and October available against which the losses can be utilised. 2009 have been consolidated in the group results. The Management judgement is required to determine the amount substance of the relationship between the company and of deferred tax assets that can be recognised, based upon these entities has been assessed and the decision made that the likely timing and level of future taxable profits together they are controlled entities, mainly due to the fact that they with future tax planning strategies. Further details are have been formed to carry out specific objectives and that contained in note 19. they will operate in terms of the autopilot principles as set out in IFRS 12. IFRS 5 The group has applied judgement in assessing whether or Assessing control (direct and de facto) of associates not the EATBI business should be classified as held for sale. The conclusion regarding control or significant influence Given the terms and conditions attached to the deal, relating to associates is reassessed on an annual basis. In management has applied judgement in assessing IFRS 5 performing this assessment, the directors determine whether and concluding that the sale is not highly probable as or not the group has control over the respective investee defined at 30 September 2016. This is due to the based on whether the group has the practical ability to uncertainty as to whether or not the sale will conclude within direct the significant activities unilaterally. 12 months after the reporting period or the date of the announcement. In making this assessment, the following factors are considered: Estimates and assumptions •• The group’s shareholding in the investee relative to other The key assumptions concerning the future and other key investors sources of estimation uncertainty at the reporting date, that •• The relative size of and concentration of other have a significant risk of causing a material adjustment to shareholders the carrying amounts of assets and liabilities within the next financial year, are discussed on the following page. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 129

Annual Annual financial financial statements

value was calculated by applying a valuation model which is a valuation model calculated by applying value was takes into account certainin itself judgemental and inherently uncertain (detailed in note 29). assumptions benefits Pension and other post-employment benefit pension plans and other The cost of defined benefits is determinedpost-employment medical using The actuarial valuation involves making actuarial valuations. rates, expected rates of returnassumptions about discount on assets, future salary increases, mortality rates and future to the long-termpension increases. Due nature of these are subject to significant uncertainty. plans, such estimates Further are given in note 30 and note 31. details Provisions group would Best estimates, being the amount that the recognised as rationally pay to settle the obligation, are provisions at the reporting Risks, uncertainties date. and technology, future events, such as changes in law and are taken into account by management in determining the best estimates. Where the effect discounting is of discount rate material, provisions are discounted. The used is the pre-tax rate that reflects current market where assessments of the time value of money and, all of which appropriate, the risks specific to the liability, requires management estimation. requires The establishment and review of the provisions to whether or significant judgement by management as not a of the reliable estimate can be made of the amount obligation. for legal orThe group is required to record provisions is probableconstructive contingencies when the contingency be reasonablyof occurring and the amount of the loss can requireestimated. Liabilities provided for legal matters judgements regarding projected outcomes and ranges of losses based on historical experience and recommendations and unpredictable of legal counsel. Litigation is, however, actual costs incurred could differ materially from those estimated at the reporting date. Further details are given in note 32. Net investment in foreign operations foreign investments are Certain loans with the group’s net investment as they are designated as part of the group’s not expected to be repaid in the foreseeable future. This results in the foreign exchange differences on the portion of the loans that are viewed as “capital contributed” being recorded in equity under the foreign currency translation reserve as required per IAS 21 The Effects of Changes in Foreign Exchange Rates, as opposed to being recognised in the statement of profit or loss. This designation is reassessed on an annual basis. Changes in accounting policies The accounting policies adopted are consistent with those of the previous financial year.

Fair value of share allocations In calculating the amount to be expensed as a share-based payment, the group was required to calculate the fair value of the equity instruments granted to participants. This fair Residual values and useful lives of tangible and intangible assets Residual values and useful lives of tangible and intangible assets are assessed on an annual basis. Estimates and judgements in this regard are based on historical experience and expectations of the manner in which assets are to be used, together with expected proceeds likely to be realised when assets are disposed of at the end of their useful lives. Such expectations could change over time and therefore impact both depreciation charges and carrying values of tangible and intangible assets in the future. Further details are given in note 13 and note 14. Recoverable amount is calculated using the discountedRecoverable amount is calculated using the cash flow valuation method when determining in use. value Key assumptions on which management has based its determination of recoverable amount include the weighted average cost of capital, projected revenues and gross margins. In addition, changes in economic factors, such as discount rates, could also impact this calculation. Further details are given in note 13 and note 14. The calculation of the recoverable amount requires the use ofThe calculation of the recoverable amount estimates and assumptions concerningthe future cash flows which are inherently uncertain could change over time. and The group applies the impairment to its cash- assessment analysis of cash-generating generating units. Management’s assets’ ability to units involves an assessment of a group of involves analysing independently generate cash inflows and the extent to which different make use of the same products assets. Impairment of goodwill, tangible and assessment intangible assets life intangible assets are tested Goodwill and indefinite for impairment or more frequently if there is an annually assets and finite life indicator of impairment. Tangible tested when there is an indicator intangible assets are of impairment.identifying impairment When indicators, in management considers the impact of changes discontinuance competitors, technological obsolescence, of products, market changes, legal changes, operating could indicate environments and other circumstances that that impairment to make exists. This requires management significant judgements concerning of the existence impairmentof cash-generating units indicators, identification and estimates value less of projected cash flows and fair costs of disposal. Outside basis adjustments Outside basis in assessing the probability of the Judgement is applied reversal of temporary differences on undeclared reserves of within the foreseeable future and associates and subsidiaries timing of the reversal. ability to control the the group’s Notes to the financial statements continued for the year ended 30 September 2016

Standards and interpretations not yet effective The group has not applied the following applicable IFRS and IFRIC Interpretations that have been issued but are not yet effective and will be adopted by the group as and when they become effective. These are as follows:

Standard Effective date* Impact IAS 1 Disclosure Initiative – Amendments to IAS 1 1 January 2016 These amendments are expected to impact the presentation and disclosure. IAS 27 Equity Method in Separate Financial 1 January 2016 This amendment is not expected to impact the group. Statements – Amendments to IAS 27 AIP IFRS 7 Financial Instruments: Disclosures 1 January 2016 The amendments will have no impact on Tiger Brands – Servicing contracts as no servicing contracts are entered into. AIP IFRS 7 Financial Instruments: Disclosures – 1 January 2016 These amendments are not expected to have any Applicability of the offsetting disclosures to material impact to the group. condensed interim financial statements IAS 12 Recognition of Deferred Tax Assets for 1 January 2016 These amendments are not expected to have any Unrealised Losses – Amendments to IAS 12 material impact to the group. IFRS 15 Revenue from Contracts with Customers 1 January 2018 The group is currently assessing the impact and will adopt the new standard at the required effective date. IFRS 9 Financial Instruments 1 January 2018 The group is currently assessing the impact and will adopt the new standard at the required effective date. IFRS 16 Leases 1 January 2019 The group is currently assessing the impact and will adopt the new standard at the required effective date. Annual financial statements 2016 * Effective for annual periods beginning on or after the specified date.

130 COMPANY GROUP

2015 2016 2015 (R’million) 2016 Restated# 2 Revenue Turnover 31 697,5 28 660,0 127,6 136,0 Interest received (refer note 8) 20,4 16,3

Tiger Brands Limited Tiger 2 343,4 2 099,3 Investment income (refer note 9) 6,3 0,8 – – Rental income, fee income and other 13,3 13,0 2 471,0 2 235,3 31 737,5 28 690,1 3 Turnover 3.1 Turnover comprises: Non-South African turnover 5 386,4 4 920,0 South African turnover 26 311,1 23 740,0 31 697,5 28 660,0 Refer to the segmental analysis on pages 35 and 36 of the integrated annual report for details of the segmental split. 3.2 Turnover by major customer Customer 1 5 202,2 4 473,9 Customer 2 3 563,9 3 089,1 Customer 3 3 097,5 2 566,1 Customer 4 2 884,5 2 317,3 Customer 5 412,0 407,8 All other customers 16 537,4 15 805,8 31 697,5 28 660,0 Customers 1 to 5 relate to domestic operations. # Restated as required by IFRS 5 in relation to the treatment of Tiger Branded Consumer Goods plc (TBCG) as a discontinued operation. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 131 # 8,9 6,7 6,7 1,1 4,6 2,8 3,8 18,2 31,0 2015 33,8 90,1 88,2 23,6 29,2 60,3 19,2 23,8 55,0 10,8 27,2 (63,5) (27,1) (60,9) 217,7 109,5 169,8 460,0 517,8 Restated* 3 019,9 Annual Annual GROUP financial financial statements 0,5 2,0 4,7 7,8 7,8 0,2 49,3 75,9 18,8 70,9 (68,1) 18,0 71,2 11,4 61,0 2016 29,8 90,9 27,3 15,6 88,9 11,9 14,0 34,5 127,0 495,8 243,3 198,2 558,8 3 318,1

Equity settled, including BEE-related IFRS 2 expenses

On trademarks, licence agreements and other intangibles

Non-executive directors – Fees Less: Paid by subsidiaries Emoluments paid by company For more details refer to Annexure C. Staff costs contribution to medical aid Employer’s Employer’s contribution to retirement funding Employer’s Total directors’ emoluments Total – Retirement, medical and other benefits – Foreign exchange loss/(profit) Directors’ emoluments Executive directors – Salaries and bonuses Loss on disposal of plant, equipment and vehicles Research, development and related expenditure IFRS 2 charges – Cash settled – On plant, equipment and vehicles Operating lease charges – On land and buildings – On customer lists Amortisation – – On capitalised leased assets – On plant, equipment and vehicles Internal auditors’ remuneration – On buildings Depreciation – Other fees and expenses Operating income/(loss) has been Operating income/(loss) determinedcharging/(crediting): after External remuneration auditors’ – Audit fees (R’million) Operating income/(loss) before Operating income/(loss) impairments and abnormal items 4.2 4 4.1

6,7 6,7 6,7 2015 (10,4) Restated*

Y COMPAN 7,8 7,8 7,8 5,7 2016 The comparatives have been restated for the retrospective reclassification relating to the treatment of foreign exchange profits and losses The comparatives have been restated for the retrospective reclassification relating to the treatment on foreignbalances and loans of a funding nature previously included in operating income/(loss) and now reclassified to net finance cash costs. Refer to note 7 for further details. Restated as required by IFRS 5 in relation to the treatment of Tiger Branded Consumer Goods plc (TBCG) as a discontinued operation. to the treatment of Tiger Restated as required by IFRS 5 in relation * # Notes to the financial statements continued for the year ended 30 September 2016

COMPANY GROUP

2015 2015 2016 Restated^ (R’million) 2016 Restated#^ 5 Impairments Impairment of property, plant and equipment – – (refer note 15) (34,8) (39,8) Impairment of intangible assets/investments – (678,8) (refer note 15) (300,0) (280,0) – (678,8) (334,8) (319,8) 6 Abnormal items Profit/(loss) on disposal of property, plant – – and equipment 11,0 (7,3) – (69,5) Write-off of other related assets – (72,9) Profit on sale of empowerment – – available-for-sale financial assets – 47,0 – – Insurance claim income – 7,5 – 7,0 Historical statutory liabilities – 7,0 1,2 (44,2) Exchange rate translation of Mauritian loan – – – (0,2) Other – – 1,2 (106,9) Abnormal profit/(loss) before taxation 11,0 (18,7) Annual financial statements 2016 (0,3) 12,4 Income tax expense (2,5) (8,1)

132 Attributable to shareholders in Tiger Brands 0,9 (94,5) Limited 8,5 (26,8)

# Restated as required by IFRS 5 in relation to the treatment of Tiger Branded Consumer Goods plc (TBCG) as a discontinued operation. ^ Historically, impairments have been disclosed as part of total abnormal items on the face of the income statement with a supporting note specifying the respective detail. For better clarity, impairments are now disclosed separately on the face of the income statement, with the comparative information being restated accordingly. Tiger Brands Limited Tiger WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 133 # – – – 0,8 0,8 (2,1) 20,5 16,3 16,3 20,5 2015 (50,2) (10,1) (20,5) (204,0) (240,8) (178,4) Restated* 1 763,6 3 687,2 1 944,1 Annual Annual GROUP financial financial – – – statements (0,4) 6,3 6,3 20,4 2016 20,4 (21,7) (18,6) 121,0 121,0 (283,3) (182,6) (324,0)

Net foreign exchange profit/(loss) Profit/(loss) on cash balances and loans of a funding nature Net (finance costs)/interest received Interest received From cash and cash equivalents From subsidiary companies Interest paid Long-term borrowings Bank and other short-term borrowings Other – financial liabilities Other – non-financial liabilities Discontinued operation Reclassification to finance costs Restated operating income/(loss) after impairments and abnormal items after reclassification of finance costs from continuing operations (R’million) profits and losses All foreign exchange of foreign cash relating to revaluation a funding nature have balances and loans of finance-related costs been accounted for as reclassified from (refer note 8.3) and thus operating income and into finance costs (retrospective application with comparatives restated to reflect the reclassification). The impact on the comparatives is as follows: Operating income/(loss) after impairments and abnormal items As previously reported Reclassification of foreign exchange Reclassification of profits and losses Investment income From subsidiary companies and associate companies From BEE empowerment entities Net (finance costs)/interest received From other investments 8.3 8.2 8.1 7 9 8 – – – – (9,7) 10,0 10,0 (10,0) (22,7) 2015 29,4 (13,0) 123,3 136,0 (781,1) (771,1) 106,6 173,9 Restated* 2 099,3 1 925,4 – – – Y COMPAN (2,3) (2,7) (2,3) 89,3 38,3 2016 (11,9) (14,6) 110,7 127,6 201,7 2 141,7 2 343,4 The comparatives have been restated for the retrospective reclassification relating to the treatment of foreign exchange profits and losses The comparatives have been restated for the retrospective reclassification relating to the treatment on foreignbalances and loans of a funding nature previously included in operating income/(loss) and now reclassified to net finance cash costs. Refer to note 7 for further details. Restated as required by IFRS 5 in relation to the treatment of Tiger Branded Consumer Goods plc (TBCG) as a discontinued operation. to the treatment of Tiger Restated as required by IFRS 5 in relation # * Notes to the financial statements continued for the year ended 30 September 2016

COMPANY GROUP

2015 2016 2015 (R’million) 2016 Restated# 10 Taxation 31,4 37,8 10.1 South African current taxation 1 046,1 1 057,4 16,1 13,1 Withholding and foreign taxes 119,3 63,0 47,5 50,9 1 165,4 1 120,4 0,6 4,3 Deferred taxation – temporary differences 59,7 15,7 48,1 55,2 1 225,1 1 136,1 Adjustments in respect of previous years (0,3) (0,3) – Current taxation (4,9) (129,6) – – – Foreign taxation – 7,5 – – – Deferred taxation 7,4 (30,9) 47,8 54,9 1 227,6 983,1 Taxation on abnormal items and impairments – – – Current (7,0) 8,8 0,3 (12,4) – Deferred – (14,6) 48,1 42,5 1 220,6 977,3 10.2 The reconciliation of the effective rate of taxation with the statutory taxation rate is Annual financial statements 2016 % % as follows: % % Taxation for the year as a percentage of 134 2,0 2,9 income before taxation 27,0 23,9 – – Impairment of goodwill and intangibles (1,9) (2,0) 26,7 38,9 Dividend income – – Expenses and provisions not allowed for (0,2) (12,9) taxation (1,0) (1,4) – – Non-recognition of other timing differences (0,7) – – – Additional investment allowances 0,4 – – – Prior year adjustments (0,1) 4,0

Tiger Brands Limited Tiger (0,6) (0,9) Withholding taxes (1,1) (0,7) – – Income from associates 5,3 4,1 – – Effect of differing rates of foreign taxes (0,2) (0,1) 0,1 – Other sundry adjustments 0,3 0,2 28,0 28,0 Rate of South African company taxation 28,0 28,0 (R’million) Tax effect of losses available to reduce future taxable income 5,3 27,2 10.3 Reconciliation of movement on deferred taxation Movement recognised in the income statement for the year 0,6 4,3 Current year charge 59,7 15,7 – – Adjustments in respect of previous years 7,4 (30,9) 0,3 (12,4) Deferred tax on abnormal items – (14,6) 0,9 (8,1) 67,1 (29,8) Movement per deferred tax accounts 0,9 (12,4) Decrease/(increase) in deferred taxation asset 34,0 (27,5) Increase/(decrease) in deferred taxation – 4,3 liability 33,1 (2,3) 0,9 (8,1) 67,1 (29,8) # Restated as required by IFRS 5 in relation to the treatment of Tiger Branded Consumer Goods plc (TBCG) as a discontinued operation. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 135

# 0,1 Net (8,3) (5,2) 25,3 44,4 (49,7) 2015 300,0 (116,9) R’million (305,5) (300,6) (494,0) Restated 85 180 3 261,2 3 461,3 3 381,0 2 887,0 2 091,0 2 057,3 1 785,5 1 756,7 2 652 190 (20 013 710) – – 161 692 980 164 345 170 161 692 980 181 621 510 – – – – – – Annual Annual financial financial Non- GROUP statements –

interest (3,2) (3,1) (5,2) controlling 2016 R’million 2 130,3 2 085,3 3 461,3 2 082,2 2 127,1 3 456,1 – – – – – 3 503 902 (7,0) 2,5 (19 262 646) (9,5) 162 480 464 165 984 366 162 480 464 181 743 110 Taxation 0,1 34,8 207,1 (10,8) (49,7) (49,6) Gross 300,0 (116,9)

– Profit on sale of non-current assets Restated as required by IFRS 5 in relation to the treatment of Tiger Branded Consumer Goods plc (TBCG) as a discontinued operation. treatment of Tiger Restated as required by IFRS 5 in relation to the Diluted headline earnings per ordinary share (cents) Headline earnings per share Headline earnings per ordinary share (cents) – Continuing operations – Discontinued operation – Continuing operations – Discontinued operation Headline earnings – Continuing operations – Discontinued operation Weighted average number of shares in issue Weighted Share options dilution Adjusted number of ordinary shares for diluted earnings per share and diluted headline earnings per share purposes Weighted number of shares held for BEE deal Weighted average number of shares in issue Weighted Reconciliation between profit for the year and headline earningsReconciliation between profit for the year Weighted number of ordinary – issued shares Weighted Opening balance of number of ordinaryOpening balance of shares (R’million) # Calculation of weighted average number of shares for basic earnings average number of shares for Calculation of weighted earningsper share and headline purposes per share 2016 Continuing operations Profit for the year attributable to owners of the parent Adjusted for: plant and equipment Profit on disposal of property, Impairment of intangible assets Impairment of property, plant and equipment plant Impairment of property, Headline earnings adjustments – associates Headline earnings for the year Discontinued operation Profit for the year attributable to owners of the parent Adjusted for: and equipment plant Loss on disposal of property, Profit on disposal of subsidiary Headline earnings for the year 11.4 11.3 11.2 11.5 11 11.1 136 Tiger Brands Limited Annual financial statements 2016 11.5 11 for theyearended30September2016 Notes tothefinancialstatements

1 831,0 1 831,0 1 148,6 1 148,6 682,4 Headline earnings fortheyear Headline earnings Impairment ofproperty,Impairment plantandequipment Adjusted for: Loss fortheyearattributabletoownersofparent Discontinued operation Headline earnings fortheyear Headline earnings – Profitonsaleofnon-currentassets adjustments–associates Headline earnings Insurance claimincome Write-off ofotherassets Profit on sale of empowerment shares Profit onsaleofempowerment Impairment ofproperty,Impairment plantandequipment Impairment ofintangibleassets Impairment 2015 –restated per sharepurposescontinued pershareandheadlineearnings Calculation ofweightedaveragenumbersharesforbasicearnings # Loss ondisposalofproperty, plantandequipment Adjusted for: Profit fortheyearattributabletoownersofparent Continuing operations (R’million) Reconciliation between profit for the year and headline earnings continued Reconciliation betweenprofitfortheyearandheadlineearnings 1065 Restated asrequiredbyIFRS5inrelationtothetreatmentofTiger BrandedConsumerGoodsplc(TBCG)asadiscontinued operation. 2016 363 702 – – – – COMPANY 1 785,6 1 785,6 1 148,3 1 148,3 # 637,3 2015 950 611 339 12 12.1 12.2 Dividends (R’million) Dividend No 143 of 363 cents per share Dividend No143of363centsper share Dividend No142of611centsper share shares–paid Dividends onordinary Dividend No 141 of 339 cents per share Dividend No141of339centsper share Dividend No140of611centsper share trusts Dividend byempowerment 22 Dividend No144–declared Dividend No143–paid Dividend No142–paid Dividend No141–paid share(cents) Dividends perordinary November 2016 continued 1 371,1 1 371,1 1 371,1 1 371,1 270,3 280,0 Gross (47,0) 39,8 11,7 (3,0) (7,5) (3,7) Taxation (10,4)

(5,8) (3,5) (1,9) 2,1 7,9 – – – – 1 629,9 1 629,9 590,1 992,6 controlling 1065 2016 47,2 363 (470,8) (470,8) interest 702 Non- – – – – (4,9) (1,5) (3,4) GROUP – – – – – (1 394,3) 3 381,0 3 381,0 3 121,4 3 121,4 1 574,6 1 574,6 (494,0) 900,3 269,6 548,6 980,6 (39,1) 32,9 45,4 2015 611 339 950 (3,0) (5,4) (5,2) 9,8 Net

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 137 Total 52,0 33,3 (34,8) 945,4 106,0 (110,6) (116,8) (558,8) (6 924,7) 4 641,2 2 795,9 2 341,6 9 125,0 4 541,9 (3 210,9) (2 440,9) (4 583,1) 11 565,9 – – – – – – – – – – Annual Annual 6,2 4,2 financial financial (2,0) (2,0) (13,7) 19,9 19,9 (15,7) statements assets leased Capitalised

Plant, 22,0 28,0 (78,8) (34,8) 869,2 103,1 (106,9) (495,8) (6 408,9) 9 272,6 2 863,7 2 733,9 2 334,4 7 249,0 3 174,5 (2 729,1) (2 023,6) (4 074,5) equipment vehicles and – – – –

1,7 1,1 (2,9) (9,1) 62,0 54,0 (51,7) 665,7 560,0 182,7 131,0 (105,7) (481,8) (483,0) land and buildings Leasehold – – – 2,9 4,2 (3,7) 74,5 30,0 65,7 (35,1) (51,9) (44,8) (396,4) (441,2) Freehold 1 607,7 1 211,3 1 673,4 1 232,2 land and buildings

Movement of the group property, property, Movement of the group plant and equipment 2016 Carrying value at the beginning of the year Cost GROUP (R’million) Property, plant and equipment plant Property, Accumulated depreciation and Accumulated depreciation impairment Net balance at the beginning of the year Current year movements – cost Additions Acquisition of business (refer note 36) Disposals Disposal of TBCG Exchange rate adjustments Cost movements for current year Current year movements – accumulated depreciation and impairment Depreciation Disposals Disposal of TBCG Impairment (refer note 15) Accumulated depreciation and impairment movement for current year Exchange rate adjustments Carrying value at the end of the year Cost Accumulated depreciation and impairment Net balance at the end of the year 13 13.1 138 Tiger Brands Limited Annual financial statements 2016 13.1 13 13.2 for theyearended30September2016 Notes tothefinancialstatements continued Property, plantandequipment (R’million) GROUP Disposals Exchange rateadjustments Additions Current yearmovements–cost Depreciation impairment and accumulated depreciation Current yearmovements– Cost movementsforcurrentyear the year Net balanceatthebeginningof impairment Accumulated depreciationand Cost the year valueatthebeginningof Carrying 2015 plant and equipmentcontinued Movement ofthegroupproperty, Impairments Disposals impairment movementforcurrentyear impairment Accumulated depreciationand Cost valueattheendofyear Carrying Exchange rateadjustments impairment Accumulated depreciationand Net balanceattheendofyear The fairvalueofproperty, amount. fromthecarrying plant andequipmentisnotmateriallydifferent relatingtoplantwascapitalisedduringtheyear(2015:Rnil). R5,3 million financeleasesofR3,2million(2015:R5,2million)aspernote 27.3.Borrowingcostsamountingto and capitalised loansofR38,3million(2015:R397,4million)includedinnote27.1 assecurity for long-term mortgaged/pledged havingabookvalueofR96,4million(2015:R1,2billion)are Land andbuildingsplantmachinery landand 1 165,4 1 165,4 1521,1 1 607,7 1 607,7 1 211,3 1 211,3 buildings Freehold (355,7) (396,4) (11,8) (48,7) (40,7) 98,2 86,6 (0,2) 0,2 8,2 continued – landand Leasehold buildings (105,2) (105,7) 520,7 625,9 665,7 560,0 (15,3) 16,2 23,6 39,8 14,8 (0,5) – – – vehicles and equipment (1 410,9) (1 578,7) (6 408,9) 4 170,5 4 170,5 9000,7 9 272,6 9 272,6 2 863,7 2 863,7 (4 830,2) (156,0) (338,8) (595,3) 766,7 271,9 332,0 95,5 Plant,

Capitalised leased (13,7) assets 11,0 28,4 19,9 (17,4) (6,4) (2,6) (8,5) (2,8) 0,5 5,1 3,7 1,4 6,2 – 11176,1 11 565,9 11 565,9 (1 410,9) (1 616,2) (6 924,7) 5 867,6 5 867,6 4 641,2 4 641,2 (5 308,5) (174,2) (317,6) (662,1) 881,6 389,8 108,8 348,0 Total

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 139

– – Total (1,5) 20,9 10,1 10,1 848,7 536,8 (11,9) (23,8) (848,7) (829,3) (946,6) (300,0) (280,0) (303,8) 4 887,1 (1 483,4) 4 233,0 5 716,4 3 940,5 (1 179,6) 5 706,3 4 526,7 5 716,4 4 233,0 (1 483,4) – – – – – – – Annual Annual (0,5) 4,5 4,3 lists financial financial (0,2) (0,5) (4,6) 542,3 (70,4) (70,9) statements (16,9) (48,9) (53,5) (70,4) 467,6 538,0 471,4 538,0 521,1 538,0 467,6 Customer

– – 6,0 3,5 3,5 86,9 (0,4) (86,9) (81,3) (74,5) (11,4) (19,2) (52,4) (71,6) (382,9) licence (308,4) (150,0) (236,8) (308,4) 1 753,4 1 526,3 1 834,7 1 370,5 1 831,2 1 594,4 1 834,7 1 526,3 and other agreements Trademarks, – – – – 6,6 6,6 (0,9) 10,4 761,8 611,8 (761,8) (752,3) (492,8) (150,0) (925,9) (178,7) (178,7) 2 591,4 2 239,1 3 343,7 2 098,6 Goodwill 3 337,1 2 411,2 (1 104,6) 3 343,7 2 239,1 (1 104,6)

Net balance at the beginning of the year Current year movements – cost Disposal of TBCG Movement of group goodwill and intangible assets Movement of group goodwill 2016 Carrying value at the beginning of the year Cost Accumulated amortisation and impairment GROUP (R’million) Goodwill and intangible assets Goodwill and intangible Acquisition of business (refer note 36) Exchange rate adjustments Cost movements for current year Current year movements – accumulated amortisation and impairment Disposal of TBCG Amortisation Impairment (refer note 15) Exchange rate adjustments Accumulated amortisation and impairment Accumulated amortisation and impairment movement for current year Carrying end of the year value at the Cost Accumulated amortisation and impairment Net balance at the end of the year 2015 Carrying value at the beginning of the year Cost Accumulated amortisation and impairment Net balance at the beginning of the year Current year movements – cost Exchange rate adjustments Cost movements for current year Current year movements – accumulated amortisation and impairment Amortisation Impairment Exchange rate adjustments Accumulated amortisation and impairment movement for current year Carrying value at the end of the year Cost Accumulated amortisation and impairment Net balance at the end of the year 14 14.1 Notes to the financial statements continued for the year ended 30 September 2016

14 Goodwill and intangible assets continued Trademarks comprise well-established and growing brands, except for trademarks with a carrying value of R194,0 million (2015: R195,0 million) which are amortised, the brand portfolio is considered to have indefinite useful lives and is therefore not amortised. Refer to the accounting policies for further details on amortisation.

Goodwill Indefinite useful life intangible assets (R’million) 2016 2015 2016 2015 14.2 The carrying value is allocated to cash-generating units as follows: Exports 1 056,6 1 056,6 473,8 473,8 Central Africa 32,2 32,6 45,3 45,3 East Africa 25,7 26,2 – – Beverages 580,5 580,5 194,6 194,6 Snacks & Treats – – 119,6 119,6 Groceries 72,3 72,3 729,9 729,9 Value Added Meat Products 16,4 6,0 – – HPCB 314,9 464,9 74,1 224,1 2 098,6 2 239,1 1 637,3 1 787,3

15 Impairment testing of non-financial assets If there is an indication of impairment, or at least annually, all indefinite life intangible assets and goodwill are assessed for impairment unless stated otherwise. Goodwill acquired through business combinations, trademarks, licence agreements, Annual financial statements 2016 supplier relationships and customer lists have been allocated to cash-generating units to facilitate this assessment.

140 The key assumptions disclosed below are based on management’s experience and expectations. Based on this experience and the well-established brands the group owns, management considers forecast cash flow periods in excess of five years to be appropriate.

15.1 Methods and assumptions The group applies a discounted cash flow methodology (value in use) to assess goodwill and certain indefinite life intangible assets for impairment. Where this results in a value lower than the carrying amount, the higher of this value or the fair value less cost of disposal is used. For the current year, all recoverable amounts were based on the value in use, being the higher value. This methodology entails a calculation of the present value of future cash flows generated by Tiger Brands Limited Tiger applicable cash-generating units over a period of five to 10 years and incorporates a terminal growth rate.

These cash flows have been based on the approved budget for the 2017 financial year which include assumptions on profit before interest and tax, depreciation, working capital movements, capital maintenance expenditure, an appropriate discount rate and a terminal growth rate. The terminal growth rate used is 1% (2015: 1%); however, it is dependent on the industry and maturity of the cash-generating unit.

15.2 Discount rates The group has calculated a weighted average cost of capital (WACC) which is utilised as a basis for performing the value-in-use calculation. In cases where the CGU is deemed to be of greater risk than the group as a whole, a risk premium has been included within the discount rate applied. The discount rate utilised for the purposes of the impairment testing was between 11,5% and 17,0% (2015: 11,5% and 19,7%).

15.3 Growth rates In determining the growth rate, consideration is given to the growth potential of the respective CGU. As part of this assessment, a prudent outlook is adopted that mirrors an inflationary increase in line with the consumer price index and real growth expected within the specific market. Based on these factors, the nominal price growth rates applied for the purposes of the impairment testing ranges between 6% and 9%. Volume growth assumptions are based on management’s best estimates of known strategies and future plans to grow the business. The terminal growth rate applied was 1% (2015: 1% and 8%). WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 141

– (5,6) 2015 2015 (11,8) (29,6) (22,4) 281,7 (250,4) 1 472,1 1 005,8 1 391,1 4 150,7 6 570,6 1 662,3 (1 371,1) (1 690,9) 23 408,0 23 397,4 GROUP Annual Annual financial financial – – – – statements 2016 2016 (22,8) (12,0) 409,4 (334,8) (300,0) 1 472,1 1 005,8 1 845,4 4 732,7 6 598,4 2 425,2 30 164,0 29 573,6

(For more detail refer Annexure B) Listed, at cost Share of accumulated other comprehensive income Share of accumulated profits since acquisition The trading results of the associate companies whose results are equity accounted in the consolidated financial statements are as follows: Revenue (100%) (100%) Turnover Profit for the year (100%) Unlisted, at cost less amounts written off Fair value of listed investments (R’million) Investments in associated companies 16 16.1 2015 967,6 421,1 1 388,7 6 570,6 Y COMPAN This impairment was recognised as a result of the annual impairment assessment performed on goodwill and indefinite useful life This impairment was recognised as a result of care category where growth in the current year slowed, reflecting the pressure intangible assets. These assets relate to the Personal investing aggressively in pricing strategies and brand support. Given this, the on consumer income exacerbated by competitors written down to their total recoverable amount of R213,4 million (R158,4 million specific goodwill and intangible assets were for goodwill being their value in use. and R55,0 million on indefinite life intangible assets), category optimisation processes, these assets were fully impaired down to a As a result of the ongoing portfolio analysis and use. This is also representative of fair value less cost to sell given the nature of recoverable amount of Rnil, being their value in these assets. * 2016 Specific impairments in the current year with the comparatives noted. the detail of the respective impairmentsThe table below reflects for the year, The impairments year within the TBCG business arose as a result of the annual impairment recognised in the prior assessments performed and other intangible assets. These related impairments on goodwill result of arose mainly as a in volumes within the respective segments. Furthermore,macro-economic factors as well as a decline the carrying value investment in TBCG had also been evaluated and an impairment million was recognised of R678,8 of the company’s at a company level in the prior year. Changes in key assumptions The determined is most sensitive to the discount rate. No reasonably probable change value in use of each CGU in anywould cause the carrying of the above key valuation assumptions their amount of CGUs to materially exceed recoverable amounts. (R’million) ** Impairment assets continued testing of non-financial Total HPCB – Goodwill and indefinite life intangible assets* HPCB – Goodwill and plant and equipment Nigeria – DFM property, goodwill and intangible assets Nigeria – Deli Foods plant and equipment Nigeria – Deli property, plant and equipment International operations – EasternAfrica property, Grains – Property, plant and equipment** Grains – Property, plant and equipment** Consumer Brands – Property, 967,6 421,1 1 388,7 6 598,4 15.4 15 15.5 Notes to the financial statements continued for the year ended 30 September 2016

16 Investments in associated companies continued 16.2 Reconciliation of associates income National Foods Empresas Holdings (R’million) Oceana Carozzí UAC Foods Limited Total 2016 Profit attributable to ordinary shareholders of Tiger Brands before abnormal items 402,1 233,1 29,2 79,4 743,8 Abnormal items 47,2 69,2 – 0,5 116,9 Profit attributable to ordinary shareholders of Tiger Brands 449,3 302,3 29,2 79,9 860,7 Less: Total dividends (406,4) Total share of associated companies‘ income less dividends received 454,3 2015 Profit attributable to ordinary shareholders of Tiger Brands before abnormal items 308,7 207,1 32,7 56,6 605,1 Abnormal items 0,7 – – (3,0) (2,3) Profit attributable to ordinary shareholders of Tiger Brands 309,4 207,1 32,7 53,6 602,8 Annual financial statements 2016 Less: Total dividends (326,0) Total share of associated companies‘ 142 income less dividends received 276,8 16.3 The annual assessment of the criteria as noted in the accounting policies resulted in Oceana Fishing Limited being concluded as a material associate of Tiger Brands for the current year and thus further disclosure relating to the associate is noted in Annexure B. Tiger Brands Limited Tiger WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 143 5,5 4,8 1,3 4,2 6,9 2,1 3,4 3,4 (4,3) (0,5) 2015 27,8 12,4 47,0 102,2 158,2 (201,0) (149,8) GROUP Annual Annual – financial financial – statements (0,1) 0,3 2,3 8,5 3,2 3,2 12,0 (5,1) (1,1) 2016 51,1 (67,1) 107,0 168,9 (149,8) (210,9)

Listed investments include Adcock Ingram Holdings Listed investments include Adcock Ingram Holdings Limited, Spar Limited and JSE Limited. – Defined contribution note 30) – Defined benefit (refer – Tiger Brands Foundation (SPV) – Tiger – Thusani II (SPV) Loans to empowerment entities (SPVs) Loans to empowerment entities consist of accrued dividends receivable on the investment in preference shares in connection with the BEE Phase II empowerment transaction (refer note 17). Preference dividends are calculated based on 93,5% of the prime interest rate prevailing from time to time. Reconciliation of deferred taxation Balance at the beginning of the year Adjustment in respect of currency profits/ (losses) taken directly to non-distributable reserves Fair value adjustments – investments Adjustment taken directly to retained income IAS 19 adjustments taken to other comprehensive income Exchange rate translation reserve Adjustment in respect of currency (losses)/ profits taken directly to other comprehensive income Balance at the end of the year Income statement movement – continuing operations Adjustment in respect of disposal of investment in Adcock Ingram Holdings Limited Employer controlled reserve invested by Brands of Tiger pension fund on behalf Limited BEE Phase II empowerment entities preference shares (SPVs) Notional investment in subsidiary companies in terms of IFRS 2 Unlisted, at fair value * empowermentto Loans 18.1) note (refer entities (R’million) Listed, at fair value* Other Deferred taxation Loans Other investments 18.1 19 19.1 18 17

8,1 4,7 2,1 2015 10,0 18,1 72,9 415,6 378,5 453,5 1 610,4 2 030,7 Y COMPAN

6,4 2,3 (0,9) 2016 18,1 17,2 91,3 448,8 485,2 578,8 1 610,4 2 065,6 Notes to the financial statements continued for the year ended 30 September 2016

COMPANY GROUP

2016 2015 (R’million) 2016 2015 19 Deferred taxation continued 19.2 Analysis of deferred taxation Property, plant and equipment (471,7) (426,4) Liability in respect of intangibles raised on acquisition of businesses (150,9) (152,8) Withholding taxes (29,7) (37,6) Retirement fund surpluses (30,9) (28,9) Fair value adjustments – investments (10,2) (5,1) Prepayments (5,2) (0,8) Provisions 454,5 443,9 Losses available for offset against future taxable income – 27,2 Income received in advance 3,9 – Revaluation of loans 31,0 27,9 17,2 18,1 Other temporary differences (1,7) 2,8 17,2 18,1 (210,9) (149,8) Disclosed on the statement of financial position as follows: 17,2 18,1 Deferred tax asset 42,6 50,5 Deferred tax liability (253,5) (200,3) Annual financial statements 2016 20 Inventories 144 Raw materials 2 617,4 2 480,6 Partially processed goods 95,0 98,8 Finished goods and merchandise 2 825,3 2 717,6 Consumable stores and spares 215,3 295,2 Other 16,8 77,8 Inventory value, net of provisions 5 769,8 5 670,0 Inventories carried at net realisable value 137,2 126,5

Tiger Brands Limited Tiger Inventories written down and recognised in cost of sales as an expense 100,6 97,4 Inventory provision deducted in arriving at total inventories net of provisions 182,4 119,4 21 Trade and other receivables 21.1 Analysis of trade and other receivables Trade receivables 3 996,7 4 459,1 VAT receivable 247,6 229,4 37,9 18,7 Sundry receivables 165,6 446,4 Prepayments 105,4 131,0 Defined benefit pension surplus (refer note 30) 57,1 54,2 10,7 Tax receivable 54,6 34,5 Rebates 38,3 96,2 48,6 18,7 Total gross receivables 4 665,3 5 450,8 Impairment provision – trade receivables* (73,0) (555,1) 48,6 18,7 Total net receivables 4 592,3 4 895,7 Trade receivables, which generally have 30 to 60-day terms, are non-interest-bearing and are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. Included within trade receivables is derivative assets of R1,3 million (2015: R18,9 million) which are carried at fair value. Refer to note 33.7 for further details. *R468,1 million of the total movement from 2015 relates to the disposal of TBCG. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 145

– – 6,8 2015 13,5 61,1 62,5 39,3 27,7 (82,4) 729,5 107,2 912,0 112,7 826,2 496,3 344,2 117,7 336,6 (555,1) (479,5) 1 499,6 1 789,2 1 877,9 4 459,1 2 791,2 4 459,1 2 898,8 4 459,1 GROUP Annual Annual financial financial statements 5,1 0,2 1,5 27,5 2016 19,1 35,0 62,3 22,3 17,6 37,4 15,0 508,6 474,3 (21,7) (73,0) 114,3 644,6 706,4 367,6 481,5 (555,1) 2 060,4 1 229,4 3 996,7 3 141,0 3 996,7 3 559,1 3 996,7

R468,1 million of the total movement from 2015 from movement total the of million R468,1 relates to the disposal of TBCG. Collateral held Fair value of collateral held Collateral held represents hawker deposits which may be applied against accounts which are in default. Europe Rest of the world Wholesale/distributors Export Other Geographical spread of trade receivables: South Africa Rest of Africa Total Trade receivable analysis Trade Industry spread of trade receivables: Retail Total Raised during the year the year Balance at the end of Past due Current to 60 days 61 to 90 days Impairment provisions of the year Balance at the beginning Utilised during the year Reversed during the year* Past due analysis the ageing of trade As at 30 September, receivables was as follows: Not past due 91 to 180 days Total > 180 days Total the ageing of other As at 30 September, receivables, excluding tax receivable and prepayments, was as follows: Not past due Past due Current to 60 days 61 to 90 days 91 to 180 days > 180 days (R’million) * Trade and other receivables continued Trade 21.5 21.4 21 21.2 21.3 2015 18,7 18,7 Y COMPAN 2016 37,9 37,9 Notes to the financial statements continued for the year ended 30 September 2016

COMPANY GROUP

2016 2015 (R’million) 2016 2015 22 Share capital 22.1 Authorised share capital 250 000 000 (2015: 250 000 000) ordinary shares of 10 cents each 19,2 19,2 22.2 Issued share capital 19,2 19,2 192 069 868 (2015: 192 069 868) 19,2 19,2 ordinary shares of 10 cents each 19,2 19,2 129,3 129,3 22.3 Share premium 129,3 129,3 129,3 120,2 Balance at the beginning of the year 129,3 120,2 – 9,1 Issues of shares – 9,1

148,5 148,5 148,5 148,5

53 926 059 53 926 059 23 Unissued shares 53 926 059 53 926 059 23.1 Tiger Brands Limited shares held by subsidiary 10 326 758 (2015: 10 326 758) shares are held as treasury stock. 23.2 Tiger Brands Limited shares held by empowerment entities

Annual financial statements 2016 18 994 458 (2015: 19 161 698) shares are owned by empowerment entities. 146 23.3 Number of shares under the control of the directors for purposes of the Tiger Brands (1985) Share Purchase Scheme and the 4 004 073 4 004 073 Tiger Brands (1985) Share Option Scheme 4 004 073 4 004 073 24 Tax effect of other comprehensive income The tax effect of the items reflected in the

Tiger Brands Limited Tiger statement of comprehensive income is as follows: Net loss/(gain) on hedge of net investment in foreign operations1 12,0 (2,1) Foreign currency translation adjustments1 (0,2) 12,4 Net loss/(gain) on cash flow hedges1 0,1 – Net (gain)/loss on available-for-sale financial assets1 (5,1) 3,1 Remeasurement raised in terms of IAS 19R 0,3 4,8 7,1 18,2 1 Items that may be subsequently reclassified to profit and loss. During the current year, R10,3 million (2015: R7,0 million) was reclassified to profit or loss. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 147 2,7 Total 2015 309,3 525,3 523,3 628,8 745,9 185,1 664,6 584,7 523,3 (307,3) (726,0)

4 796,8 1 058,0 2 176,3 GROUP Annual Annual financial financial statements Other 129,4 192,9 3,1 199,0 356,7 437,8 199,0 (135,5) 2016 (595,5) 507,1 464,1 713,6 177,9 4 157,1 2 291,3 324,3 179,9 332,4 307,9 146,9 324,3 (171,8) (130,5) Leave pay

Trade payables are non-interest-bearing and Trade are normally settled within 30 to 45-day terms. is Included within trade payables derivative liabilities of R29,1 million (2015: R9,2 million) which are carried at fair value. Refer to note 33.7 for further details. Other creditors fund liability Defined benefit pension (refer note 30) (R’million) payables Trade Rebates and incentives Accruals payable VAT Trade and other payables Trade 25 22,4 22,4 2015 Y COMPAN 21,7 21,7 2016 (R’million) Provisions 2015 Balance at the beginning of the year Arising during the year Utilised during the year Balance at the end of the year settlement amounts. Included Leave pay is provided on accumulated leave balances at year end based on expected in other million). Other provisions is a provision for cash-settled share-based payments of R44,8 million (2015: R64,2 include employee-related benefits of R104,8 million (2015: R141,0 million). 2016 Balance at the beginning of the year Arising during the year Utilised during the year Balance at the end of the year 26

Notes to the financial statements continued for the year ended 30 September 2016

COMPANY GROUP

2016 2015 (R’million) 2016 2015 27 Borrowings In terms of the company’s articles of association the group’s borrowings are unlimited. The secured and unsecured loans are all at floating rates unless otherwise mentioned. 27.1 Secured loans Year of repay- 98,2 142,3 Interest rate ment Denomination 149,8 613,3 9,5% per annum 2017 Ethiopian birr 11,3 – 6,9% per annum 2017 South African rand 13,3 73,6 98,2 142,3 6,8% per annum 2018 CAF franc 98,2 142,3 7,0% per annum 2018 Nigerian naira 3,8 11,1 12,0% per annum 2020 Kenyan shilling 22,0 35,3 0% per annum 2056 Ethiopian birr 1,2 1,2 4,0% per annum 2016 Euro – 2,9 16,0% per annum 2016 Nigerian naira – 138,8 17,0% per annum 2016 Nigerian naira – 23,2 16,5% per annum 2016 Nigerian naira – 47,5 Annual financial statements 2016 7,0% per annum 2021 Nigerian naira – 53,0 16,0% per annum 2017 Nigerian naira – 84,4 148 Analysis of secured loans by nature of security: Pledge of shares (Chocolaterie Confiserie 98,2 142,3 Camerounaise, note 32) 98,2 142,3 Property, plant and equipment 38,3 397,4 Put option against Tiger Brands 13,3 73,6 98,2 142,3 149,8 613,3

Tiger Brands Limited Tiger Refer also to notes 13 and 33 for details of security. 27.2 Unsecured loans Year of repay- Interest rate ment Denomination 1 000,0 1 042,9 8,1% per annum ** South African rand 1 000,0 1 000,0 14,5% per annum 2016 Kenyan shilling – 20,6 8,0% per annum 2016 Nigerian naira – 22,3 ** Repayable on a 13-month notice period. 27.3 Capitalised finance leases 3,2 5,2 Repayment during the next year 2,2 2,1 Repayments later than one year and no later than five years 1,0 3,1

Refer to note 28.4. Liabilities under capitalised finance leases bear interest at 9,5% (2015: 9,5%) per annum. Capitalised finance leases relate to plant and equipment with a book value of R4,2 million (2015: R6,2 million) as per note 13. 98,2 142,3 1 153,0 1 661,4 WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 149

Total 89,1 58,1 35,1 27,5 84,5 51,0 29,2 15,8 2015 153,2 363,0 116,0 296,5 970,9 148,5 445,6 445,6 3 624,0 3 178,4 1 661,4 1 215,8 1 119,4 commitments Annual Annual GROUP financial financial 3,6 2,3 1,7 1,5 4,0 4,4 2,9 1,2 0,7 35,9 45,0 statements 13,2 83,7 2016 92,0 83,7 Property, plant and 1 612,0 1 695,7 1 153,0 1 069,3 1 041,7 1 133,7 equipment

82,2 66,5 49,8 33,4 26,0 51,5 35,7 26,5 15,5 10,8 Motor 257,9 140,0 vehicles – – 6,0 4,3 35,1 19,0 60,1 60,5 44,4 21,6 12,5 143,3 buildings Land and

Bank overdrafts Short-term borrowings Current portion of long-term borrowings Long-term borrowings Approved capital expenditure, which will be Approved capital expenditure, which will own resources, is as financed from the group’s follows: Contracted Approved Instalments disclosed as: Instalments disclosed Short-term borrowings (R’million) Group commitments 27.5 28 28.1 27.4 2015 43,8 98,5 43,8 151,1 194,9 142,3 – Y COMPAN 47,2 2016 47,2 98,2 51,0 47,2 Additional commitments are expected to be approved in 2017. Additional capital requirements of R1,3 billion various capital efficiencyThe capital commitments noted above include from and expansion projects and will be funded normal utilisation of existing borrowing facilities. operating cash flows and the Commitments in respect of operating leases GROUP (R’million) 2016 During 2017 During 2018 During 2019 During 2020 During 2021 and thereafter 2015 During 2016 During 2017 During 2018 During 2019 During 2020 and thereafter With the exception of the lease described below, operating leases are generally three to six years in duration, without With the exception of the lease described below, purchase options and in certain instances have escalation clauses of between 7,0% and 10,0% or are linked to the not applicable. One lease, prime rate of interest or Consumer Price Index (CPI). Other contingent rentals are generally contingent rental linked to tonnes of relating to fruit processing equipment, has a remaining contract period of one year, (2015: R5,6 million). fruit processed and escalates based on the American CPI, amounts to R5,8 million 28.3 28.2 Notes to the financial statements continued for the year ended 30 September 2016

28 Group commitments continued 28.4 Commitments in respect of finance leases The group has finance leases for various items of plant and machinery. These leases have terms of renewal with a purchase option and are linked to the prime interest rate. Renewals are at the option of the specific entity that holds the lease. Future minimum lease payments under finance leases, together with the present value of the net minimum lease payments, are as follows: GROUP 2016 2015 Minimum Present value Minimum Present value (R’million) payments of payments payments of payments Within one year 2,7 2,2 2,6 2,1 After one year but not more than five years 1,0 1,0 3,4 3,1 Total minimum lease payments 3,7 3,2 6,0 5,2 Less: Amounts representing finance charges (0,5) – (0,8) – Total 3,2 3,2 5,2 5,2 Please refer to note 27.3 for further details.

28.5 Commitments in respect of inventories In terms of its normal business practice, certain group operations have entered into commitments to purchase certain agricultural inputs over their respective seasons.

Annual financial statements 2016 28.6 Commitments in respect of transport The group maintains long-term contracts, including certain minimum payments, with various transport companies for the 150 distribution of its products. 29 Share-based payment The total expense recognised for employee services received during the year to 30 September 2016 is R88,9 million (2015: R29,2 million). No expense was recognised in the current or previous financial year relating to the previous equity-settled share-based scheme. Of the total expense recognised, the portion arising from the share appreciation rights, performance shares and restricted shares option schemes amounted to R2,6 million, R18,0 million and R17,0 million (2015: R17,8 million, R18,1 million and R9,9 million) respectively. The remaining expense relates to the

Tiger Brands Limited Tiger cost associated with the BMT I of R16,4 million and BMT II of R16,9 million (2015: R22,7 million and R21,6 million) respectively.

Detailed disclosure of each scheme and the respective assumptions and valuation inputs have been included in Annexure D. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 151 – 1,1 6,9 (3,5) (0,1) (2,7) 2015 38,4 33,9 98,5 47,0 54,2 98,5 (51,5) (55,1) (26,2) (14,5) (21,4) 103,8 228,1 (643,1) (643,1) (643,1) (626,4) (218,9) (227,7) – Annual Annual financial financial 2,4 statements (1,9) (7,7) (3,6) (3,9) (3,1) 2016 35,1 10,1 41,1 98,5 51,1 57,1 (26,2) (56,5) (64,0) 243,3 105,1 105,1 (246,1) (666,0) (666,0) (666,0) (643,1) (239,1)

Actuarial losses released in terms of IAS 19R Interest cost million). Balance at the end of the year be paid for the 2017 financial year is R44,9 million estimate of contributions expected to The employer’s (2016: R41,0 included in Annexure F. Detailed disclosure and the respective assumptions and valuation inputs have been Current service cost Balance at the end of the year Present value of obligations Liability at reporting date Movement in the liability recognised in the statement of financial position: Balance at the beginning of the year Contributions paid Other expenses included in staff costs (R’million) of financial position recognised in the statement Movement in the net asset/(liability) of the year Balance at the beginning Contributions paid expense in the income statement) Other movements (net Current service cost Interest cost Interest on plan assets Interest on limit Settlement cost Remeasurements recognised in other comprehensive income Remeasurements recognised in other comprehensive Net actuarial gains released in termsof IAS 19R Unrecognised due to paragraph 65 limit Balance at the end of the year of financial position as follows: The net asset is included in the statement Investments – refer note 17 Other receivables – refer note 21 Other payables – refer note 25 and valuation inputs have been Detailed disclosure and the respective assumptions included in Annexure E. Post-retirement medical aid obligations Pension obligations 31 30 Notes to the financial statements continued for the year ended 30 September 2016

GROUP

(R’million) 2016 2015 32 Guarantees and contingent liabilities Guarantees and contingent liabilities 12,8 16,9 Company Guarantees exist against the company for the obligations of certain subsidiaries amounting to R3,5 million at 30 September 2016 (2015: R91,3 million). Shares in Chocolaterie Confiserie Camerounaise SA (Chococam), acquired on 1 August 2008 have been pledged as security for the foreign loan utilised to acquire the subsidiary. Refer to note 27.1. 33 Financial instruments The group’s objective in using financial instruments is to reduce the uncertainty over future cash flows arising principally as a result of commodity price, currency and interest rate fluctuations. The use of derivatives for the hedging of firm commitments against commodity price, foreign currency and interest rate exposures is permitted in accordance with group policies, which have been approved by the board of directors. Where significant finance is taken out, this is approved at board meetings.

The foreign exchange contracts outstanding at year end are marked-to-market at closing spot rate.

The group finances its operations through a combination of retained surpluses, bank borrowings and long-term loans.

Annual financial statements 2016 The group borrows short-term funds with fixed or floating rates of interest through a subsidiary company, Tiger Consumer Brands Limited.

152 The main risks arising from the group’s financial instruments are, in order of priority, procurement risk, foreign currency risk, interest rate risk, liquidity risk and credit risk as detailed below. 33.1 Procurement risk (commodity price risk) Commodity price risk arises from the group being subject to raw material price fluctuations caused by supply conditions, weather, economic conditions and other factors. The strategic raw materials acquired by the group include wheat, maize, rice, oats and sorghum.

Tiger Brands Limited Tiger The group uses commodity futures and options contracts or other derivative instruments to reduce the volatility of commodity input prices of strategic raw materials. These derivative contracts are only taken out to match an underlying physical requirement for the raw material. The group does not write naked derivative contracts.

The group has developed a comprehensive risk management process to facilitate, control and monitor these risks. The procurement of raw materials takes place in terms of specific mandates given by executive management. Position statements are prepared on a monthly basis and these are monitored by management and compared to the mandates.

The board has approved and monitors this risk management process, inclusive of documented treasury policies, counterparty limits, controlling and reporting structures.

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 153

2015 46,7 332,6 256,0 126,8 429,5 128,1 Hedged value (+10%)/–10% Annual Annual GROUP GROUP financial financial statements 76,1 63,0 (3,4) 2016 12,7 137,0 276,1 loss at (profit)/ within 0 – 3 months Profit/(loss) after tax Unrealised Derivative contracts expiring Derivative contracts expiring (+10%)/–10% 30 September

Procurement risk (commodity price risk) continued Procurement risk (commodity raw materials is as follows: to derivative contracts relating to strategic At year end, the exposure Other grains Other* Total Milling and Baking * Other includes tomato paste, sugar, pork, soya and sundry other items. * Other includes tomato paste, sugar, Commodity price sensitivity is not applicable to the company. (R’million) (R’million) Financial instruments continued Financial Commodity price sensitivity analysis in the price of wheat, profit to a 10% increase and decrease the group’s The following table details the sensitivity of excluding the impact of cash flow hedges. A +10% increase would result rice, maize, sorghum and other commodities, would result in an inflow. in an outflow whereas a –10% decrease when reportingThe 10% stringency is the sensitivity rate used the commodity price risk internally to key management prices. assessment of the possible change in the relevant commodity personnel and represents management’s 2016 Maize and wheat Futures 2015 Maize and wheat Futures 33.1 33 Notes to the financial statements continued for the year ended 30 September 2016

33 Financial instruments continued 33.2 Foreign currency risk The group enters into various types of foreign exchange contracts as part of the management of its foreign exchange exposures arising from its current and anticipated business activities. As the group operates in various countries and undertakes transactions denominated in foreign currencies, exposures to foreign currency fluctuations arise. Exchange rate exposures on transactions are managed within approved policy parameters utilising forward exchange contracts or other derivative financial instruments in conjunction with external consultants who provide financial services to group companies as well as contributing to the management of the financial risks relating to the group’s operations. The group does not hold foreign exchange contracts in respect of foreign borrowings, as its intention is to repay these from its foreign income stream or subsequent divestment of its interest in the operation. Foreign exchange differences relating to investments, net of their related borrowings, where this is viewed as part of one investment, are reported as translation differences in the group’s net other comprehensive income until the disposal of the net investment, at which time exchange differences are recycled through profit or loss. Forward exchange contracts are mainly entered into to cover net import exposures, after setting off anticipated export proceeds on an individual currency basis. The fair value is determined using the applicable foreign exchange spot rates at 30 September 2016. The exposure and concentration of foreign currency risk is included in the table below. GROUP South African US Pound Nigerian (R’million) rand dollar sterling Euro naira Other* Total 2016 Annual financial statements 2016 Financial assets 154 Accounts receivable 4 013,1 148,8 10,7 17,4 13,2 334,5 4 537,7 Cash and cash equivalents 121,4 403,8 1,1 17,6 7,3 185,8 737,0 Financial liabilities Borrowings** (2 628,4) – – – (3,8) (132,8) (2 765,0) Accounts payable (4 300,9) (29,4) (10,7) (9,7) (54,5) (275,3) (4 680,5) 2015

Tiger Brands Limited Tiger Financial assets Accounts receivable 3 631,3 245,5 12,5 18,8 617,5 335,6 4 861,2 Cash and cash equivalents 386,7 390,3 4,1 8,5 113,5 148,5 1 051,6 Financial liabilities Borrowings** (2 918,9) – – – (1 551,3) (369,6) (4 839,8) Accounts payable (3 880,5) (185,5) (10,3) (28,5) (927,4) (284,7) (5 316,9) * Other includes the Australian dollar, Canadian dollar, Japanese yen, Swiss franc, New Zealand dollar, Cameroon franc and Kenyan shilling. ** In 2016, R98,2 million (2015: R270,7 million) is held by the company. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 155 3,2 7,4 6,7 7,0 0,2 2,1 0,2 6,2 Rand Rand 62,9 15,3 22,3 12,3 42,5 13,87 21,05 15,52 295,6 202,0 116,1 Average (in million) (in million) rate rate Annual Annual 2015 2015 13,87 13,94 21,03 21,11 15,52 15,60 14,62 17,91 13,96 15,14 21,14 15,96 Average Average Average Average financial financial statements 13,88 21,05 15,53 Liabilities 2015 – 4,5 0,7 0,2 1,4 0,4 0,5 0,1 2,0 7,3

21,3 14,5 Foreign Foreign currency currency (in million) (in million) Assets 13,87 21,04 15,52 12 months. A summary of forward 3,1 4,6 5,7 0,2 2,1 0,2 19,7 Rand Rand 22,3 11,8 33,6 10,7 62,9 58,8 16,2 224,3 545,0 (in million) (in million)

rate rate 13,80 17,96 17,92 15,47 15,54 13,87 18,15 15,64 13,79 13,85 17,90 15,46 13,82 17,89 15,52 2016 2016 Average Average Average – 1,6 0,7 0,2 2,2 0,3 0,4 0,1 3,5 3,8 16,3 39,3 Foreign Foreign currency currency (in million) (in million) 13,81 17,93 15,48 2016

Liabilities

Assets 13,79 17,91 15,46 Foreign currency risk continued Foreign currency risk denominated in foreign currency: were used to translate financial instruments The following spot rates Financial instruments continued Financial GROUP US dollar Pound sterling GROUP Unhedged foreign currency monetary assets US dollar GROUP Foreign currency sold US dollar Euro Pound sterling Forward outstanding at the reporting exchange contracts date all fall due within group foreign liabilities and sold to settle group foreign assets is shown exchange contract positions bought to settle below. Pound sterling Euro Euro Other currencies Unhedged foreign currency monetary liabilities US dollar Foreign currency purchased US dollar Other currencies Pound sterling Euro Pound sterling Other currencies Euro Other currencies 33.2 33 Notes to the financial statements continued for the year ended 30 September 2016

33 Financial instruments continued 33.2 Foreign currency risk continued Cash flow hedges At 30 September 2016, the group had foreign exchange contracts outstanding designated as hedges of future purchases from suppliers outside South Africa for which the group has firm commitments or highly likely forecast transactions. A summary of these contracts are: 2016 2015 Foreign Foreign currency Average Rand currency Average Rand (in million) rate (in million) (in million) rate (in million) GROUP Foreign currency bought US dollar 25,1 13,88 348,5 10,7 13,97 150,1 Euro 3,1 18,06 56,3 5,8 16,07 93,6 Pound sterling 3,0 14,38 43,9 1,9 21,15 40,1 Other currencies 16,2 6,2 The terms of the forward currency contracts have been negotiated to match the terms of the commitments.

The cash flow hedge of expected future purchases was assessed to be effective and an unrealised profit of R13,6 million

Annual financial statements 2016 (2015: profit of R13,8 million) relating to the hedging instrument was included in other comprehensive income.

156 Timing of cash flows relating to foreign currency is as follows: GROUP

1 – 6 7 – 12 Foreign currency (in millions) months months US dollar 25,1 – Pound sterling 3,1 – Tiger Brands Limited Tiger Euro 3,0 – Japanese yen 107,6 – These are expected to affect the income statement in the following year.

During the year, R30,1 million (2015: R13,1 million) was released from other comprehensive income and included in the carrying amount of the non-financial asset or liability (highly probable forecast transactions).

There are no forecast transactions for which hedge accounting was previously used but is no longer expected to occur.

Ineffective hedges to the value of R12,4 million (2015: Rnil) have been recognised in profit or loss. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 157 – – – – – – – – – – 6,6 (6,6) 2015 45,9 35,8 10,1 2015 12,7 19,3 (12,7) (19,3) GROUP P&L Annual Annual – – financial financial 2,3 statements 27,7 25,4 7,0 0,5 0,3 9,8 2016 (7,0) (0,5) (0,3) (9,8) 2016 25,0 24,2 16,8 (25,0) (24,2) (16,8)

– – – – – – 3,7 0,2 (0,2) (3,7) 2015 27,2 10,5 13,2 (27,2) (10,5) (13,2)

– – – – – – 6,3 6,8 2,9 (6,3) (6,8) (2,9) 2016 50,0 34,0 (50,0) (34,0) Other comprehensive income Other comprehensive (R’million) Foreign borrowings (+1%)/–1% Total (+1%)/–1%

Profit or (loss) after tax ZAR borrowings (+1%)/–1%

1,9 3,3 1,4 2015 Y COMPAN 1,8 2,2 0,4 2016 Interest rate risk management and financial performanceInterest rate risk results from the cash flow uncertaintyrate fluctuations. arising from interest Financial assets and liabilities affected by interest rate fluctuations include bank and cash deposits as well as bank borrowings. At the reporting date, the group cash deposits were accessible immediately or had maturity dates up to six months. The interest rates earned prevailing. on these deposits closely approximate the market rates Interest rate sensitivity from the net cash position. The The sensitivity analysis addresses only the floating interest rate exposure emanating at the beginning of the financial interest rate exposure has been calculated with the stipulated change taking place year and held constant throughout the reporting period. constant, the profit for the year If interest rates had increased/(decreased) by 1% and all other variables were held the variable interest rates applicable ended would increase/(decrease) as detailed in the table below due to the use of to the long-term borrowings and short-term borrowings. The fixed interest rate on the borrowings would not affect the financial performance. Any gain or loss would be unrealised and consequently the notional impact is not presented. Foreign currency risk continued Foreign currency risk Foreign currency sensitivity weakening/strengthening in the ZAR against sensitivity to a 10% the group and company’s The following table details currencies. the respective foreign currency denominated monetary includes only material outstanding foreign This sensitivity analysis items and adjusts their translation at the reporting indicates an increase in foreign currency rates. A positive number date for a 10% change in income. profit and other comprehensive (R’million) Financial instruments continued Financial Y COMPAN USD +10% USD –10% Total +10% Total –10% Total Other +10% Pound sterling +10% Pound sterling –10% EUR +10% EUR –10% Other +10% Other –10% Other –10% Total +10% Total –10% Total GROUP USD +10% USD –10% 33.3 33.2 33 Notes to the financial statements continued for the year ended 30 September 2016

33 Financial instruments continued 33.4 Liquidity risk management Liquidity risk arises from the seasonal fluctuations in short-term borrowing positions. A material and sustained shortfall in cash flows could undermine investor confidence and restrict the group’s ability to raise funds.

The group manages its liquidity risk by monitoring weekly cash flows and ensuring that adequate cash is available or borrowing facilities maintained. In terms of the articles of association, the group’s borrowing powers are unlimited. Other than the major loans disclosed in note 27 to these annual financial statements which are contracted with various financial institutions, the group has no significant concentration of liquidity risk with any other single counterparty.

The group’s liquidity exposure is represented by the aggregate balance of financial liabilities as indicated in the categorisation table in note 33.7.

Contractual maturity for non-derivative financial liabilities The following tables detail the group and company’s remaining contractual maturity for non-derivative financial liabilities.

The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the group and company will be required to pay. The table includes both interest and principal cash flows. The “finance charge” column represents the possible future cash flows attributable to the instrument included in the maturity analysis, which are not included in the carrying amount of the financial liability. Carrying Finance 0 – 6 7 – 12 1 – 5 (R’million) amount charge months months years > 5 years GROUP 2016 Trade and other payables 3 004,9 – 3 001,1 3,8 – – Annual financial statements 2016 Borrowings (long and short term)* 1 153,0 (324,0) 342,1 65,6 1 068,1 1,2 Guarantees and future commitments 158 not on the statement of financial position – – 12,8 – – – Total 4 157,9 (324,0) 3 356,0 69,4 1 068,1 1,2 2015 Trade and other payables 2 805,1 – 2 804,0 1,1 – – Borrowings (long and short term)* 1 661,4 (252,3) 262,4 356,8 1 293,3 1,2 Guarantees and future commitments Tiger Brands Limited Tiger not on the statement of financial position – – 289,5 – – – Total 4 466,5 (252,3) 3 355,9 357,9 1 293,3 1,2 * Excludes bank overdrafts of R1 612,0 million (2015: R3 178,4 million) and cash of R737,0 million (2015: R1 051,6 million). These are repayable on demand and subject to annual review.

Carrying Finance 0 – 6 7 – 12 1 – 5 (R’million) amount charge months months years > 5 years COMPANY 2016 Borrowings (long and short term) 98,2 (12,3) – 59,5 51,0 – Intergroup loan accounts 557,8 (237,1) – – 794,9 – Guarantees not on the statement of financial position – – 3,5 – – – Total 656,0 (249,4) 3,5 59,5 845,9 – 2015 Borrowings (long and short term) 270,7 (22,7) 151,1 43,8 98,5 – Intergroup loan accounts 544,8 (204,3) – – 749,1 – Guarantees not on the statement of financial position – – 91,3 – – – Total 815,5 (227,0) 242,4 43,8 847,6 – Refer to notes 28.3 and 28.4 for disclosure relating to operating and finance lease commitments. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 159 2015 27,5 1 215,8 3 624,0 3 788,2 (1 051,6) 13 777,6 GROUP Annual Annual financial financial statements 2016 12,6 (737,0) 2 028,0 1 069,3 1 695,7 16 033,9

(R’million) Net debt/(cash) Total equity Total Short-term borrowings Long-term borrowings

Cash and cash equivalents Net debt/(cash) to equity (%)

1,8 2015 98,5 166,3 194,9 (127,1) 9 214,0 Y COMPAN (1,9) 2016 47,2 51,0 (183,9) (282,1) 9 821,0 Credit risk management Group the risk that a counterpartyCredit risk arises from default or not meet its obligations timeously. may The group limits its counterparty well-established financial instruments by only dealing with exposure arising from any counterparties standing. The group does not expect institutions of high credit their obligations given to fail to meet their high credit ratings. of credit limits and credit monitoring customer base is controlled by the application of the group’s Credit risk in respect procedures. Certain credit guarantee on a daily basis. Where appropriate, significant receivables are monitored insurance is obtained. balance of amounts credit exposure, in respect of its customer base, is represented by the net aggregate The group’s disclosed in note 21.4. receivable. Concentrations of credit risk are in respect of guarantees amounted to R12,8 million (2015: R16,9 million).Credit risk exposure at 30 September 2016 Refer to note 32. y Compan relating to guarantees amounted to R3,5 million (2015: R91,3 million). Credit risk exposure at 30 September 2016 Refer to note 32. Capital management to ensure that it maintains a strong credit capital management is The primaryof the company and group’s objective supportrating and healthy capital ratios in order to its business and maximise shareholder value. structure, calculated as equity plus net debt, and make adjustments to The company and group manages their capital and group may maintain or adjust the capital structure, the company it, in light of changes in economic conditions. To returnadjust the dividend payment to shareholders, capital to shareholders, issue new shares or increase or decrease the objectives, policies or processes during the years ended 30 September levels of debt. No changes were made in 2016 and 30 September 2015. The company and group monitor capital using a gearing ratio, which is net debt divided by total equity. using a gearing ratio, which is net debt divided by total equity. The company and group monitor capital The company and group target a long-term gearing ratio of 30% to 40%, except when major investments are made where this target may be exceeded. Financial instruments continued Financial 33.5 33.6 33 Notes to the financial statements continued for the year ended 30 September 2016

33 Financial instruments continued 33.7 Categorisation of financial assets and liabilities Financial Financial instruments Loans and assets Other at receivables available liabilities fair value Non- Amortised for sale Amortised through financial Total book (R’million) cost fair value cost profit or loss items value GROUP 2016 Assets – – – – 19 027,5 19 027,5 Other investments 53,4 115,5 – – – 168,9 Loans 3,2 – – – – 3,2 Trade and other receivables 4 183,4 – – 1,3 407,6 4 592,3 Cash and cash equivalents 737,0 – – – – 737,0 Total 4 977,0 115,5 – 1,3 19 435,1 24 528,9 Shareholders’ equity and liabilities – – – – (17 606,8) (17 606,8) Long-term borrowings – – (1 069,3) – – (1 069,3) Trade and other payables – – (3 008,0) (29,1) (1 120,0) (4 157,1) Short-term borrowings – – (1 695,7) – – (1 695,7) Annual financial statements 2016 Total – – (5 773,0) (29,1) (18 726,8) (24 528,9) 160 2015 Assets – – – – 18 745,4 18 745,4 Other investments 49,1 109,1 – – – 158,2 Loans 3,4 – – – – 3,4 Trade and other receivables 4 034,6 – – 18,9 842,2 4 895,7 Cash and cash equivalents 1 051,6 – – – – 1 051,6

Tiger Brands Limited Tiger Total 5 138,7 109,1 – 18,9 19 587,6 24 854,3 Shareholders’ equity and liabilities – – – – (15 217,7) (15 217,7) Long-term borrowings – – (1 215,8) – – (1 215,8) Trade and other payables – – (2 807,8) (9,2) (1 979,8) (4 796,8) Short-term borrowings – – (3 624,0) – – (3 624,0) Total – – (7 647,6) (9,2) (17 197,5) (24 854,3) Refer to the accounting policies for further details on the above classifications. WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 161 48,6 value (51,0) (21,7) (47,2) 18,7 282,1 (98,5) (22,4) 127,1 (194,9) 4 836,9 2 065,6 3 265,5 10 498,7 4 837,8 2 030,7 3 060,3 (9 758,8) (10 378,8) (10 498,7) Total book 10 074,6 (10 074,6) – – – – – – – – – – – – 2,1 12,1 items Non- Annual Annual financial financial 4 337,4 4 349,5 financial statements (9 821,0) (9 821,0) 4 338,3 4 340,4 (9 214,0) (9 214,0) – – – – – – – – – – – – – – – – – – – – – – at through Financial

fair value instruments profit or loss – – – – – – – – – – – – cost (51,0) (21,7) (47,2) Other (98,5) (22,4) (557,8) (677,7) (544,8) (194,9) (860,6) liabilities Amortised – – – – – – – – – – – – – – – – – –

6,4 6,4 4,7 4,7 assets for sale Financial available Fair value – – – – – – – – – – cost 36,5 16,6 499,5 282,1 499,5 127,1 2 059,2 3 265,5 6 142,8 2 026,0 3 060,3 5 729,5 Amortised Loans and

receivables

Categorisation of financial assets and liabilities continued Categorisation of financial (R’million) Financial instruments continued Financial Y COMPAN 2016 Assets Other investments Loans Trade and other receivables Trade Cash and cash equivalents Total Shareholders’ equity and liabilities Long-term borrowings Trade and other payables Trade Short-term borrowings Total 2015 Assets Other investments Loans Trade and other receivables Trade Cash and cash equivalents Total Shareholders’ equity and liabilities Long-term borrowings Trade and other payables Trade Short-term borrowings Total Refer to the accounting policies for further details on the above classifications. 33.7 33 Notes to the financial statements continued for the year ended 30 September 2016

33 Financial instruments continued 33.8 Fair value hierarchy Financial instruments are normally held by the group until they close out in the normal course of business. The fair values of the group’s financial instruments, which principally comprise put, call and futures positions with SAFEX, forward exchange contracts and listed investments, approximate their carrying values. The maturity profile of these financial instruments fall due within 12 months. The maturity profile of the group’s long-term liabilities is disclosed in note 27.1 of these annual financial statements. There are no significant differences between carrying values and fair values of financial assets and liabilities, except for intercompany loans at a company level, which are eliminated on consolidation.

Trade and other receivables, investments and loans, and trade and other payables carried on the statement of financial position approximate the fair values thereof except for amounts owed by subsidiaries where the fair value is R2,0 billion (2015: R2,1 billion) calculated using the effective interest rate method linked to market-related interest rates of 5,75% (2015: 4,75%) and is disclosed as level 2.

Long-term and short-term borrowings are measured at amortised cost using the effective interest rate method and the carrying amounts approximate their fair value.

The group used the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on

Annual financial statements 2016 observable market data.

As at 30 September, the group held the following financial instruments measured at fair value: 162 2016 2015 Level 1 Level 2 Level 3** Total Level 1 Level 2 Level 3** Total GROUP Assets measured at fair value Available-for-sale Tiger Brands Limited Tiger financial assets Other investments 107,0 3,3 5,2 115,5 102,2 2,5 4,4 109,1 Derivatives – 1,3 – 1,3 – 18,9 – 18,9 Liabilities measured at fair value Derivatives – (29,1) – (29,1) – (9,2) – (9,2) COMPANY Assets measured at fair value Available-for-sale financial assets Other investments – 1,2 5,2 6,4 – 0,3 4,4 4,7 Derivatives – – – – – – – – Liabilities measured at fair value Derivatives – – – – – – – – ** The value of the investment in Group Risk Holdings is based on Tiger Brands’ proportionate share of the net asset value of the company. There are no other significant inputs that are used in the valuation and any changes in these inputs would not result in a significant fair value change.

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 163 – – – 0,3 1,1 10,4 28,7 19,1 25,9 2015 18,9 108,6

147,7 Amounts owed by related parties – – – – – Annual Annual GROUP 0,6 fees financial financial 4,7 0,5 statements 9,1 18,4 2016 147,8 175,3 Directors‘ – – – – fees 3,4 2,9 9,5 10,9 Management

** Key management personnel comprises the top tier of the organisation and the managing executives of the individual businesses. Key management ** (R’million) (R’million) The board of directors of Tiger Brands Limited has given general declarations in terms Brands Limited has of section 75 of the Companies of Tiger The board of directors indicate that certain financial interests. These declarations Act on directors’ personal hold positions of influence directors are suppliers, servicein other entities which Brands Limited. of Tiger providers, customers and/or competitors length basis. suppliers were on an arm’s with these director-related customers and conducted Transactions from related partiesThe sales to and purchases made at normal are balances at the market prices. Outstanding year end not ended 30 September 2016, the group has settlement occurs in cash. For the year are unsecured and recorded any impairment owed by related parties of receivables relating to amounts Rnil). This assessment is (2015: undertaken the financial position of the related party at each financial year through examining and the market in which the related party operates. with related partiesDetails of material transactions are as follows: disclosed elsewhere in the financial statements not Related-party disclosures Other related parties Key management personnel** Short-term employee benefits Post-employment and medical benefits Share-based payments compensation paid to key management personnel Total National Foods Holdings Limited UAC Foods 2015 GROUP Related party – associates Oceana Group Limited Empresas Carozzí (Chile) National Foods Holdings Limited UAC Foods Empresas Carozzí (Chile) 2016 GROUP Related party – associates Oceana Group Limited 34 Notes to the financial statements continued for the year ended 30 September 2016

2016 2015

Amounts Amounts owed owed by/(to) by/(to) related Dividends related Dividends (R’million) parties received parties received 34 Related-party disclosures continued Company Related party – intergroup Subsidiaries1 Durban Confectionery Works Proprietary Limited 33,0 – 33,0 – Tiger Consumer Brands Limited (100,8) 900,0 (86,6) 1 230,0 Tiger Brands (Mauritius) Limited (239,0) – (240,2) – Enterprise Foods Proprietary Limited 0,4 – 0,4 – Langeberg Holdings Limited 702,4 – 702,4 – Langeberg Foods Africa Proprietary Limited (201,6) – (201,6) – Langeberg & Ashton Foods Proprietary Limited 499,5 – 499,5 – The Duntulum Trust 18,9 – 18,9 – Gloriande NV 0,2 – 0,2 – Tiger Food Brands Intellectual Property Holding Company Proprietary Limited 413,6 700,0 381,1 325,0 Pharma I Holdings Proprietary Limited 1 227,6 – 1 227,6 – Investment and dormant companies 149,1 – 149,1 – Annual financial statements 2016 Chocolaterie Confiserie Camerounaise – 58,2 – 43,4 Deli Foods Nigeria Limited 31,1 – 31,2 – 164 East Africa Tiger Brands Industries 94,1 – 46,5 8,8 Davita Trading Proprietary Limited – 210,0 – 75,0 Empowerment entities Tiger Brands Foundation (SPV) 485,2 168,4 378,5 145,0 Thusani II (SPV) 91,3 33,3 72,9 28,9 Associates Oceana Group Limited – 211,9 – 188,9

Tiger Brands Limited Tiger National Foods Holdings Limited 19,1 54,1 1,1 24,5 UAC Foods 25,9 7,5 18,9 29,8 1 Interest-free with no fixed repayment terms. Not repayable before 30 September 2017 except for the amount owing by Langeberg & Ashton Foods Proprietary Limited, and the amount owing to Tiger Consumer Brands Limited that bear interest as may be agreed upon from time to time and are repayable on demand. East Africa Tiger Brands Industries’ loan is interest bearing and has a fixed repayment schedule.

GROUP (R’million) 2016 2015 35 Analysis of profit/(loss) from discontinued operations The combined results of the discontinued operation (TBCG) included in the profit for the year are set out below. Profit/(loss) for the year from discontinued operations (attributable to owners of the company) Turnover 1 598,5 2 897,6 Expenses (1 535,3) (3 290,1) Operating income/(loss) before impairments and abnormal items 63,2 (392,5) Impairments – (1 371,1) Profit on disposal of subsidiary 49,7 – Operating income/(loss) after impairments and abnormal items 112,9 (1 763,6) Finance costs (85,3) (173,0) Profit/(loss) before taxation 27,6 (1 936,6) Taxation – (230,9) Profit/(loss) for the year from discontinued operation 27,6 (2 167,5) Attributable to non-controlling interest 16,8 773,2 Attributable to owners of parent 44,4 (1 394,3) WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 165

4,7 (7,9) 59,3 69,7 value 10,5 52,0 10,4 2015 2015 33,5 (57,3) 525,9 (528,8) (180,7) (116,8) (140,6) 1 089,3 (1 963,3) September GROUP Acquisition Annual Annual – GROUP financial financial statements 2016 2016 89,0 722,9 (38,6) (538,2) (148,4) 271,1 321,5 1 538,7 February (1 075,7) (1 075,7) (2 651,3)

There are no material events that occurred during the period subsequent to 30 September 2016, but prior to these There are no material events that occurred during the period subsequent to 30 September financial statements being authorised for issue. (R’million) Hercules Cold Storage Proprietary Limited acquired 100% of the net assets of the Hercules Cold Storage Proprietary Brands On 1 August 2016, Tiger Limited Africa, and engaged in the manufacture of processed meats focused on business, a company based in Pretoria, South viennas, russians and hampers. are polony, the consumer segment. Product segments for as follows: The purchase consideration was accounted (R’million) Statement of financial position disposed of Statement of financial position disposed (R’million) operation Cash flows from discontinued from operating activities Net cash inflows/(outflows) Net cash outflows from investing activities Net cash outflows from financing activities Net cash inflows from Net cash inflows/(outflows) of subsidiaryCash flow on disposal “Cash and cash equivalents” disposed Proceeds received on disposal inflow on disposal of subsidiary cash Total Intangibles plant and equipment Property, Inventories Fair value of net assets acquired Accounts payable Goodwill Purchase consideration R24,5 million to group revenue and From date of acquisition to 30 September 2016, the Hercules business contributed to 30 September 2016, the Rnil to profit after tax. Had the business been consolidated from 1 October 2015 profit contribution of R5,1 contribution to group revenue would have amounted to R154,7 million and a negative million (loss) would have been made to profit after taxation. Goodwill represents the difference between the purchase consideration and the fair value of the net assets acquired synergies. Brands with access to new markets and improved and provides Tiger The purchase consideration was financed out of operating cash flows. Subsequent events Business combination Analysis of profit/(loss) from discontinued operations continued Analysis of profit/(loss) Net asset value Summarised statement of financial position Non-current assets Current liabilities Current assets Non-current liabilities 37 36 35 166 Tiger Brands Limited Annual financial statements 2016 Camerounaise Chocolaterie Confiserie Haco IndustriesKenyaLimited Limited Tiger Brands(Mauritius) Limited Tiger ConsumerBrands Proprietary Limited Proprietary HoldingCompany Property Tiger FoodBrandsIntellectual Proprietary Limited Proprietary Langeberg &AshtonFoods Langeberg HoldingsLimited Limited Enterprise FoodsProprietary Limited IHoldingsProprietary Pharma Limited Davita Trading Proprietary Proprietary Limited Proprietary WorksDurban Confectionery Industries East AfricaTiger Brands Designer Group (R’million) Goods plc(TBCG) Tiger BrandedConsumer Deli FoodsNigeriaLimited All randamountsoflessthanR100000areshownasnilinthe abovetable. 3 2 1 companies Interest insubsidiary Annexure A

Disposed ofduringthecurrentyear. All yearendsare30September, exceptforChocolaterieConfiserieCamerounaisewhichhasa31Decemberyear end. Limited. Previously AdcockIngramHoldingsProprietary 1 2

3 Kenya Mauritius South Africa South Africa South Africa South Africa South Africa South Africa South Africa Ethiopia South Africa Nigeria Nigeria South Africa of business Principal place Cameroon Kenyan shilling US dollar South Africanrand South Africanrand South Africanrand South Africanrand South Africanrand South Africanrand South Africanrand Ethiopian birr South Africanrand Nigerian naira Nigerian naira South Africanrand Functional currency CAF franc percentage holding 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 51,0 51,0 74,7 2016 % Effective –

100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 51,0 51,0 65,7 74,7 2015 % 1521,6 2 931,5 337,9 190,8 121,4 132,1 213,2 152,7 (net ofimpairment) Company’s interest 45,5 17,3 85,8 49,7 63,4 2016 Shares atcost 0,1 – – 1521,6 2 931,5 337,9 190,8 121,4 132,1 213,2 152,7 45,5 17,3 85,8 49,7 63,4 2015 0,1 – –

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 167 Listed Listed

2015 2015 2015 Listed/ 188,9 454,1 611,2 238,8 642,2 unlisted Unlisted Unlisted 3 564,3 1 065,3 1 096,3 1 945,9 3 989,3 6 824,1 1 707,1 6 168,8 5 504,9 (1 948,1) (5 301,0) September September September Fishing business Annual Annual Nature of financial financial statements 2016 2016 2016 (69,4) 847,1 916,5 211,9 888,9 238,8 958,3 Food processing Food processing Food processing 4 007,7 2 152,3 4 371,1 6 735,7 1 913,5 8 244,0 6 511,1 (1 977,3) (5 121,8) September September September

2015 42,1 37,4 24,4 49,0 holding Percentage 2016 42,1* 37,4 24,4 49,0 June date Financial reporting December December September

Currency South African rand US dollar Chilean peso Nigerian naira # Principal place of business South Africa Zimbabwe Chile Nigeria Taking treasury After accounting for the treasury shares into account, the voting rights are 43,8% (2015: 43,8%). and empowerment shares, Taking the earnings are equity-accounted at 49,0% (2015: 49,0%). Measured at fair value and noted as level 1 hierarchy, which is valued based on quoted market prices. which is valued Measured at fair value and noted as level 1 hierarchy, Dividends received from Oceana Attributable to shareholders of Oceana Net asset value Total comprehensive income for the year comprehensive Total Fair value of investment in Oceana Current liabilities Other comprehensive (loss)/income, net of taxation Other comprehensive (loss)/income, net of Equity-accounted carrying value Non-current liabilities Attributable to shareholders of Oceana Current assets Goodwill on acquisition Profit after taxation # (R’million) Reconciliation of the summarised financial information presented to the carrying Brands’ interest in Oceana amount of Tiger (R’million) Summarised statement of financial position Summarised statement of comprehensive income Summarised statement of comprehensive (R’million) Detailed disclosure of Oceana Fishing Limited is noted below, as per note 16.3. as per note is noted below, Detailed disclosure of Oceana Fishing Limited * Non-current assets NAV Brands effectiveTiger share of Oceana’s Interest in associated companies associated companies Interest in Annexure B Annexure Revenue Oceana Group Limited National Foods Holdings Limited Empresas Carozzí UAC Foods (%) 168 Tiger Brands Limited Annual financial statements 2016 EFs – Note 6–OtherbenefitsincludearetentionbonusofR4028 000. 30 October 2015.Otherbenefitsincludenoticepayandleaveencashment. Note 5–Resignedeffective Note 4–OtherbenefitsincludearetentionbonusofR10000 000. 31 December 2015.Otherbenefitsincludenoticepay,Note 3–Resignedeffective severancepayandleaveencashment. Note 2– Note 1–Appointed10May2016.Otherbenefitsinclude a signonbonusofR20000000. Total are setouthereunder: above, and prescribedofficers excluding executivedirectors (six) oftheexecutivecommittee, remuneration paidtomembers Aggregated detailsof Total AG Kirk–note6 NG Brimacombe N Segoale–note5 company aresetouthereunder: ofthe officers to prescribed Details ofremunerationpaid Total A+B Total B YGH Suleman BL Sibiya(deputychairman) MP Nyama RD Nisbet KDK Mokhele M Makanjee MJ Bowman SL Botha MO Ajukwu AC Parker(chairman) Non-executive directors Total A CFH Vaux NP Doyle–note4 PB Matlare–note3 O Ighodaro–note2 (R’000) Table ofdirectors’emolumentsfortheyearended30September2016 Directors’ emoluments Annexure C LC MacDougall–note1 Executive directors board meetingsofthecompany. associate ofTiger Brands.Alsoincludesfeespaidto non-executive directorsinrespectoftheirattendanceatspecial forhisattendanceatmeetingsoftheboarddirectors ofEmpresasCarozzí(R76020),an Fees paidtothechairman payment relatingtotheswiftexecutionofTBCGdisposal. 31July2016. Otherbenefitsincludesnoticepay,Resigned effective leaveencashmentandR500000exgratia 1638 6 879 6 879 Fees 593 846 538 712 682 517 353 560 440 – – – – – – – – – – – Cashsalary 15488 17614 16705 7468 3582 3625 4119 4716 1187 3630 3053 261 909 172 139 139 145 EFs 36 58 79 36 69 36 1005 2067 2067 Bonus 2 300 646 349 836 513 718 10 – – – – – – – – – – – – – 41095 41095 10134 20088 GROUP benefits 4514 7317 4315 2811 6506 4260 Other 191 107 – – – – – – – – – – – contributions Retirement

2296 1243 1978 1978 445 749 515 789 209 337 128 fund 49 – – – – – – – – – – – Gainson exercised options 1676 4394 3415 6306 6306 2778 2742 979 786 – – – – – – – – – – – – – – Total2016 21427 75939 68151 16475 10969 23782 26 274 8988 5893 6546 7788 1783 8237 8688 765 882 596 851 821 596 389 629 476

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 169 105 433 859 614 485 698 649 335 248 584 5 354 2 969 5 866 1 648 6 658 4 405 3 377 5 347 12 974 27 163 33 821 13 129 25 725 Total 2015 – – – – – – – – – – – – – – – – – – – Annual Annual options financial financial 6 099 6 099 6 099 3 623 statements exercised Gains on

– – – – – – – – – – – – fund 648 832 159 737 717 476 567

2 376 2 376 1 760 2 496 Retirement contributions

– – – – – – – – – – – – 60 18 43 54 323 444 444 198 240 492 Other benefits 1 150 GROUP

– – – – – – – – – – – – – – 753 967 Bonus 1 843 1 447 5 010 5 010 1 319 1 319 4 858 – – – – 54 54 54 54 54 54 91 EFs 949 415 3 893 4 753 3 639 3 490 2 847 3 221 9 558 13 234 13 649

13 598

Cash salary – – – – – – – – – – Fees 805 105 431 644 595 433 614 194 530 335 6 243 1 557 6 243 Fees paid to the chairman of Empresas Carozzí (R36 200), an for his attendance at meetings of the board of directors in respect of their attendance at special Brands. Also includes fees paid to non-executive directors associate of Tiger board meetings of the company. Executive directors O Ighodaro No directors have service than three months. contracts with notice periods of more Directors’ service contracts (R’000) Table of directors’ emoluments for the year ended 30 September 2015 of directors’ emoluments Table Directors’ emoluments continued Directors’ PB Matlare NP Doyle (13 July 2015 NP Doyle (13 July 2015 – note 1 – 30 September 2015) CFH Vaux CFH Vaux Total A Total Total B Total BL Sibiya (deputy chairman) YGH Suleman (13 July 2015 – 30 September 2015) M Makanjee KDK Mokhele RD Nisbet MP Nyama RMW Dunne (1 October 2014 – 31 May 2014) MO Ajukwu (31 March 2015 – 30 September 2015) SL Botha MJ Bowman AC Parker (chairman) Non-executive directors Total A + B A + Total Details of remuneration paid to prescribed officers of the company are set out hereunder: NG Brimacombe – note 2 NP Doyle (1 October 2014 – 12 July 2015) – note 1 AG Kirk Total Total Aggregated details of remuneration paid to members (six) of the executive committee, excluding executive directors and prescribed officers above, are set out hereunder: Total Note 1 – NP Doyle was appointed as an executive director on 13 July 2015. serviceNote 2 – The value of R71 480 was paid to NG Brimacombe for 15 years for long awards in December 2014. EFs – 170 Tiger Brands Limited Annual financial statements 2016 CFH Vaux Total Total PB Matlare* Total O Ighodaro** Total NG Brimacombe **Resigned 31July2016. Name 2016appearbelow: 30 September underthe Tiger Brandsphantomcashoptionschemeas Details ofphantomcash-settledoptionsheldbyprescribedofficers Prescribed officers Name 2016appearbelow: Details ofphantomcash-settledoptionsheldbyexecutivedirectorsunderthisschemeat30 September Executive directors Phantom cash-settledoptionscheme Directors’ emolumentscontinued Annexure C Name above,at30 September2016appear below: prescribed officers Aggregated detailsofphantomcashoptionsheldbymembers oftheexecutivecommittee,otherthandirectorsand Executive committeemembers(excludingexecutivedirectorsand prescribedofficers) NP Doyle Total NG Brimacombe NG Brimacombe NG Brimacombe Total *Early retirement31December2015.

Feb 10 Feb 11 Feb 12 Feb 13 Date of Date of Various Feb 12 Feb 13 Feb 10 Feb 11 Feb 10 Feb 11 Feb 12 Feb 13 Feb 12 Feb 13 Feb 13 Date of Jun 11 grant grant Jul 12 grant continued Holding at Holding at Holding at 1 October 1 October 1 October 157 491 17 167 45 400 14 734 81 001 80 100 36 600 11 767 27 333 33 718 14 568 15 750 55 000 30 266 30 000 25 000 61 016 10 650 16 500 3 700 4 400 3 400 3 600 2015 2015 2015 Granted Granted Granted 2016 2016 2016 – – – – – – – – – – – – – – – – – – – – – Exercised Exercised Exercised 55 633 22 699 22 699 17 793 10 926 7 565 7 565 2016 2016 6 300 2016 567 – – – – – – – – – – – – – Forfeited Forfeited Forfeited 30 434 22 701 52 294 36 600 15 925 10 000 22 701 30 151 69 076 3 433 3 684 5 982 7 950 1 762 3 642 9 450 2 833 5 000 5 000 3 550 3 300 2016 2016 2016 616 600 30 September 30 September 30 September Holding at Holding at Holding at 27 868 13 734 11 050 27 806 19 383 45 000 25 000 20 000 23 300 13 200 32 782 3 084 5 785 2 638 7 100 3 000 2016 2016 2016 – – – – – – – 30 September 30 September 30 September of options of options of options vested at vested at vested at 19551 Number Number Number 18 533 11 050 17 316 10 817 15 000 10 000 14 300 7100 6600 6 866 5 785 5 000 2016 2016 2016 600 617 714 – – – – – – – subject to subject to

retention retention subject to Number Number retention Number options options 15 000 10 000 options 4 500 3 300 1 200 6 001 4 668 1 234 3 434 5 245 4 283 5 000 962 of of – – of – – – – – – – – formance formance formance Number Number Number 15 000 10 000 options options options subject subject subject to per- to per- to per- targets targets targets 4 667 1 233 3 434 5 245 4 283 5 000 4 500 3 300 1 200 7 230 962 of of of – – – – – – – – – – 299,8 172,1 Grant Various 299,8 253,2 189,1 172,1 189,1 253,2 187,0 253,2 299,8 299,8 252,0 (Rand) Grant Grant 189,1 172,1 253,2 299,8 price (Rand) (Rand) price price 30 September 30 September 30 September options at options at options at value of value of value of market market market (R’000) (R’000) (R’000) 3 103 2 118 2 635 1 109 1 453 1 887 1 377 1 361 2 308 3 236 vested vested vested 2016 2016 2016 922 510 886 Fair Fair Fair 63 73 61 – – – – – –

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 171 price (Rand) 341,7 291,7 385,3 385,3 385,3 385,3 Grant 254,5 299,8 298,7 299,8 254,5 299,8 254,5 254,5 254,5 254,5 254,5 – – – – – – Annual Annual 2016* financial financial 9 060 4 222 7 050 9 832 6 867 5 220 5 250 statements 36 000 22 870 21 104 34 027 36 000 11 540 52 610 12 880 12 950 Holding at 30 September – – – – – – – – –

2016 3 433 5 390 9 500 9 250 3 433 61 180 33 376 21 200 13 418 10 708 11 800 13 290 Forfeited – – – – – – – – – – – – – – – – – – – – – – 2016 Exercised

– – – – – – – – – – – – – – – – – – 2016 36 000 22 870 36 000 22 870 Granted – – – 2015 9 060 9 500 5 390 5 220 5 250 61 180 54 480 11 540 37 460 21 200 17 640 16 300 12 880 29 740 20 540 12 950 10 300

11 800 13 290

1 October Holding at Date Feb 16 Feb 15 Feb 15 Feb 13 Feb 14 Feb 15 Feb 13 Feb 14 Feb 14 Feb 14 Feb 14 Feb 14 Feb 13 Feb 15 Feb 14 of grant Sept 13 May 16 a special retention allocation of share appreciation rights was made on 28 February 2014. These are subject to normal performance and vesting conditions. * All options are subject to performance targets. There are no share appreciation rights vested at 30 September 2016. Name Tiger Brands Limited 2013 Share Plan Brands Tiger Executive directors are set out below: under this plan at 30 September 2016 rights allocated to executive directors Details of share appreciation Directors’ emoluments continued Directors’ LC Mac Dougall NP Doyle Total Total Total CFH Vaux Total Note 1 – Note 1 PB Matlare Note 1 Total Note 1 O Ighodaro 172 Tiger Brands Limited Annual financial statements 2016 Total CFH Vaux Total PB Matlare Total CFH Vaux Total LC MacDougall Total O Ighodaro Total O Ighodaro Total * Therearenorestrictedsharesvested at30September2016. NP Doyle Name 30 September 2016: Details ofrestrictedsharesgrantedtoexecutivedirectorsundertheTiger BrandsLimited 2013SharePlanasat sharesvestedat30September2016. targets.Therearenoperformance * Alloptionsaresubjecttoperformance Total NP Doyle Name 2016: 30 September sharesawardedtoexecutivedirectorsundertheTiger BrandsLimited2013SharePlanasat Details ofperformance Executive directorscontinued Tiger BrandsLimited2013SharePlancontinued Directors’ emolumentscontinued Annexure C May 16 continued of grant of grant Dec 15 Dec 15 Feb 15 Feb 13 Feb 14 Feb 13 Feb 14 Feb 15 Feb 15 Feb 15 Feb 13 Feb 14 Feb 15 Feb 15 Feb 16 Feb 15 Feb 16 Feb 14 Date Date Holding at Holding at 1 October 1 October 13 650 1 950 6 930 2 200 2 780 4 100 5 140 4 410 1 850 1 850 2 380 2 380 2 000 2 860 2 540 7 400 2 320 2 320 2 490 5 280 2 790 2015 2015 – – – – – Granted Granted 8 160 8 160 2 198 2 198 6 706 5 376 1 330 5 720 5 720 2016 2016 – – – – – – – – – – – – – – – – – – Exercised Exercised 2 693 2 356 1 099 1 099 2016 2016 275 275 337 250 250 – – – – – – – – – – – – – – – – – – Forfeited Forfeited 10 957 1 925 1 925 2 784 4 100 4 073 3 479 1 099 2 380 1 750 2 860 2 540 7 150 2016 2016 – – – – – – – – – – – – – –

30 September 30 September Holding at Holding at 11 000 1 950 4 730 2 780 1 850 1 850 8 160 8 160 9 026 5 376 1 330 5 720 2 320 2 490 2 790 2016* 2016* – – – – – – – – – – – – VWAP share VWAP share grant date grant date price on price on 10-day 10-day 299,8 254,5 299,8 254,5 299,8 254,5 385,3 385,3 385,3 341,7 385,3 342,9 385,3 342,9 291,7 291,7 385,3 385,3 254,5

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 173 (Rand) 291,7 385,3 254,5 254,5 298,7 299,8 291,7 385,3 254,5 299,8 291,7 385,3 254,5 291,7 385,3 254,5 385,3 291,7 342,9 385,3 382,5 10-day 10-day price on price on grant date grant date Grant price VWAP share VWAP share – Annual Annual financial financial 2016 2016* 2016* 6 150 8 890 5 120 6 667 8 260 statements 1 330 1 920 2 720 2 520 1 780 2 540 1 810 1 090 3 848 1 690 7 084 12 640 13 400 11 680 11 800 Holding at Holding at Holding at 30 September 30 September 30 September – – – – – – –

– – – – – – – – – – – 2016 6 700 3 333 2016 2016 Forfeited 1 925 Forfeited Forfeited – – – – – – – – – 2016 – – – – – – – – – – – 275 Exercised 2016 2016

– – – – – – – Exercised Exercised 2016 6 150 11 680 Granted – – – – – – – – 2016 2016 2 520 1 330 1 090 3 848 – –- Granted Granted 2015 8 890 5 120 8 260 12 640 20 100 10 000

11 800

1 October Holding at – – – – 2015 2015 1 920 2 720 2 200 1 780 2 540 1 810 1 690 7 084 Date 1 October 1 October Holding at Holding at Feb 16 Feb 15 Feb 14 Feb 14 Feb 13 Feb 16 Feb 15 Feb 14 of grant Sept 13 Date Date Feb 16 Feb 16 Feb 15 Feb 14 Feb 13 Feb 15 Feb 14 Feb 15 Feb 16 Feb 15 Dec 15 Dec 14 of grant of grant * There are no restricted shares vested at 30 September 2016. Name AG Kirk * All options are subject to performance targets. There are no performance shares vested at 30 September 2016. Details of restricted shares granted to prescribed officersTiger Brands Limited 2013 Share Plan at under the 30 September 2016: Name Details of performance awarded to prescribed officers shares 2013 Share Plan Tiger Brands Limited under the at 30 September 2016 are set out below: NG Brimacombe NG Brimacombe NG Brimacombe NG Brimacombe AG Kirk AG Kirk NG Brimacombe AG Kirk AG Kirk AG Kirk AG Kirk Name Tiger Brands Limited 2013 Share Plan continued Brands Tiger Prescribed officers rights allocated to prescribed officersDetails of share appreciation Brands Limited 2013 Share Plan at Tiger under the 30 September out below: 2016 are set Directors’ emoluments continued Directors’ Note 1 – a special retention allocation of share appreciation rights was made on 28 FebruaryNote 1 – a special retention allocation of are subject to 2014. These normal performance vesting conditions. and * All options are subject to performance appreciation rights vested at 30 September 2016. targets. There are no share NG Brimacombe NG Brimacombe NG Brimacombe – note 1 NG Brimacombe NG Brimacombe NG Brimacombe AG Kirk AG Kirk AG Kirk 174 Tiger Brands Limited Annual financial statements 2016 2013 2014 2015 2015 2014 2013 2016 2016 2016 2015 * Therearenorestrictedsharesvestedat30September2016. Total forFY above,asat30September2016: prescribed officers Aggregated detailsofrestrictedsharesgrantedtomemberstheexecutivecommittee,otherthandirectorsand sharesvestedat30September2016. targets.Therearenoperformance * Alloptionsaresubjecttoperformance Total forFY above,at30September2016,aresetoutbelow: prescribed officers sharesawardedtomembersoftheexecutivecommittee,otherthandirectorsand Aggregated detailsofperformance targets.There arenoshareappreciationrightsvestedat30September2016. * Alloptionsaresubjecttoperformance Total forFY above,asat30September2016,aresetoutbelow: and prescribedofficers Aggregated detailsofshareappreciationrightsallocatedtomemberstheexecutivecommittee,otherthandirectors Executive committeemembers(excludingexecutivedirectorsandprescribedofficers) Tiger BrandsLimited2013SharePlancontinued Directors’ emolumentscontinued Annexure C continued of grant of grant Feb 13 Feb 14 Feb 15 Feb 14 Feb 13 Feb 16 Feb 16 Feb 15 Date Date of grant Various Various Holding at Holding at 1 October 1 October Date 54 446 30 036 25 860 4 400 5 650 4 710 2015 2015 Holding at 1 October – – 6 324 2015 Granted Granted Granted Granted – 42 790 7 790 7 790 2016 2016 Granted – – – – – – 7 152 2016 – Exercised Exercised Exercised Exercised Exercised 2016 2016 275 2016 – – – – – – – – Forfeited Forfeited Forfeited Forfeited 12 820 17 092 Forfeited 4 125 2 760 1 290 7 080 5 450 2016 2016 990 990 2016 440

– 30 September 30 September 30 September 30 September 30 September Holding at Holding at Holding at Holding at Holding at 18 780 41 626 12 944 37 340 6 324 6 712 2 890 3 420 6 800 2016* 2016* 2016* – share price share price on grant ongrant on grant ongrant 10-day 10-day 299,3 299,3 VWAP VWAP Grant Grant (Rand) 340,8 254,5 385,3 291,7 317,3 385,3 254,5 299,8 291,7 price price date date

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 175 _ _ WAEP R95,7 301,3 284,7 385,3 274,8 4,3 years R254,5 – R385,3 Annual Annual financial financial 2015 statements _ Number (62 449)

292 850 955 159 1 185 560 – R93,9 WAEP 301,4 282,0 300,2 297,2 301,3 4,2 years

R254,5 – R385,3 2016 (3 292) Number 376 004 (493 489) 1 064 783

1 185 560

Allocations of share appreciation rights Allocations of share appreciation Conditional awards of full value performance shares matching and deferral element). Grants of full value restricted shares (bonus • • • Exercisable at the end of the year Range of exercise prices outstanding at the end of the year (per option) Weighted average remaining Weighted contractual life (years) of options average fair value Weighted granted (per option) Exercised during the year Outstanding at the end of the year expected exercise dividend cover, Options were valued using a modified Black-Scholes model taking into account the Brands share price. Subject to certainpattern and volatility of the Tiger performance conditions, one-third of the equity- settled share options vest on each of the third, fourth and fifth anniversary dates from the date of the original grant date. All equity-settled options mature six years after the grant date. Forfeited during the year Granted during the year Outstanding at the beginning of the year This hybrid scheme is regarded as an equity-settled share option scheme. This hybrid scheme is regarded as an equity-settled Equity settled were fully exercised in the 2015 financial year (106 600 shares at a All outstanding options under this scheme of R75,13). weighted average exercise prices (WAEP) Share appreciation rights rights during the year: of and movements in, share appreciation WAEP The following table illustrates the number and Certain by the board of based on merit. Options are issued annually employees are entitled to receive options senior directors of the company. which replaced Between January by the company, cash-settled option scheme was applied 2006 and March 2013, a where executives 2013, a hybrid scheme was introduced share option scheme. During March the previous equity-settled company and its subsidiaries are offeredand managers of the a weighted combination of: • • • General employee share option plan General employee 1 The information noted below summarises all key assumptions, valuation inputs and key disclosures relating to the Tiger Brands The information to the Tiger valuation inputs and key disclosures relating below summarises all key assumptions, noted plans.share-based payment Share-based payment plans Share-based Annexure D Annexure 176 Tiger Brands Limited Annual financial statements 2016 1 Annexure D General employeeshareoptionplancontinued Volatilities arebasedonthehistoricalvolatilityofTiger Brandssharepricematchingtheremaininglifeofeachoption. The followinginputswereused: andvolatilityoftheTigerpattern Brandsshareprice. conditionsusing50000simulationstakingintoaccountthe dividendcover,TSR marketperformance expectedexercise Options werevaluedusingtheMonte-Carlosimulationapproachtoestimatepriceofoptionsthataresubject Weighted averagefairvalueofoptionsgranted(peroption) Weighted averageremainingcontractuallife(years) Exercisable attheendofyear Outstanding attheendofyear Exercised duringtheyear duringtheyear Forfeited Granted duringtheyear Outstanding atthebeginningofyear shares duringtheyear: The followingtableillustratesthenumberof,andmovementsin,performance shares Performance Volatilities arebasedonthehistoricalvolatilityofTiger Brandssharepricematchingtheremaininglifeofeachoption. The followinginputswereused: 24/05/2016 09/02/2016 04/02/2015 28/02/2014 13/02/2013 Date ofgrant 24/05/2016 31/03/2016 02/09/2016 04/02/2015 02/06/2014 02/05/2014 13/02/2014 30/09/2013 13/02/2013 Date ofgrant continued of option(Rand) Strike price 341,7 322,4 291,7 385,3 298,3 272,9 254,5 299,8 299,8 24/05/2019 04/02/2019 04/02/2018 27/02/2017 12/02/2016 24/05/2021 31/03/2021 09/02/2021 04/02/2020 01/06/2020 01/05/2020 12/02/2020 29/09/2019 12/02/2019 Expiry date Expiry date of theunderlying of theunderlying stock atgrant stock atgrant Market price Market price date (Rand) date (Rand) 337,0 325,2 302,9 337,0 302,9 394,9 244,4 289,5 394,9 299,8 279,5 250,0 299,1 289,5 Expected volatility Expected volatility

the remaininglife the remaininglife of thestockover of thestockover of theoption(%) of theoption(%) 1,5years 156850 170890 (76158) 70580 Number (8462) R481,8 2016 27,0 27,5 23,6 22,4 20,8 25,7 25,7 25,5 21,3 21,8 21,8 21,5 23,2 24,5 – cover (times) cover (times) 1,5years 170890 128261 (13601) 56230 Expected Expected dividend dividend R611,3 Number 2015 2,9 3,0 2,9 3,0 2,0 2,9 3,0 3,0 2,9 2,9 3,0 3,0 2,0 2,0 – –

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 177 – – – 3,0 3,0 3,0 2,9 3,0 2,9 3,0 2,0 2015 WAEP 204,5 238,2 207,9 226,1 187,3 Number (5 670) R359,7 R367,0 dividend Expected 26 950 108 842 130 122 2,0 years 2,1 years cover (times) R281,0 – R399,3 Annual Annual – financial financial 2015 statements – 2016 27,4 27,5 26,3 23,6 23,0 23,4 22,4 20,8 R286,5 (3 429) Number 79 560 (13 875) 130 122 192 378 1,6 years

Number 267 042 696 622 (282 235) (785 498) of the option (%) of the stock over 1 764 355 the remaining life Expected volatility – 195,0 325,2 302,9 320,0 394,9 319,0 367,9 244,4 289,5 WAEP 195,0 249,5 238,2 251,6 R316,8 date (Rand) 1,4 years

Market price stock at grant of the underlying R280,0 – R399,9 2016 – Number Expiry date 155 031 271 076 696 622 (265 105) (160 441) 31/03/2019 09/02/2019 03/12/2018 04/02/2018 10/09/2017 03/12/2017 27/02/2017

12/02/2016

31/03/2016 09/02/2016 03/12/2015 04/02/2015 28/02/2014 03/12/2014 Date of grant 28/02/2014 13/02/2013 Volatilities are based on the historical volatility of the Tiger Brands share price matching the remaining life of each option. Brands share are based on the historical volatility of the Tiger Volatilities Range of exercise prices outstanding at the end of the year (per option) Weighted average remaining Weighted contractual life (years) Exercisable at the end of the year Granted during the year Exercised during the year Outstanding at the end of the year Outstanding at the beginning of the year Forfeited during the year Cash settled of, and movements in, cash- The following table illustrates the number and weighted average exercise prices (WAEP) settled options during the year: The following inputs were used: Outstanding at the beginning of the year Outstanding at the beginning Granted during the year of the year Outstanding at the end Restricted shares restricted shares during the year: the number of, and movements in, The following table illustrates Forfeited the year during year Exercised during the Exercisable at the end of the year Weighted average remaining contractual life (years) Weighted average fair value of options granted (per option) Weighted expected exercise model taking into account the dividend cover, Options were valued using a modified Black-Scholes Brands share price. pattern and volatility of the Tiger General employee share option plan continued share option General employee Weighted average share price at the average share price Weighted date of exercise (per option) expected the dividend cover, Cash options were valued using a modified Black-Scholes model taking into account to certain Brands share price. Subject exercise pattern and volatility of the Tiger performance conditions, one-third of the cash-settled share options vest on each of the third, fourth and fifth anniversary dates from the date of the original grant date. All cash-settled options mature six years after the grant date. 1 178 Tiger Brands Limited Annual financial statements 2016 2 1 Annexure D Black Managers Participation RightsScheme(equitysettled) Black ManagersParticipation General employeeshareoptionplancontinued Weighted averageremainingcontractuallife(years) Exercisable attheendofyear Outstanding attheendofyear Shares sold(deathofemployees) duringtheyear Forfeited Granted duringtheyear Outstanding atthebeginningofyear rightsduringtheyear: The followingtableillustratesthenumberof,andmovementsin, shareparticipation million). (2015: R22,7 receivedduringthe yearto30September2016isR16,4million The expenserecognisedforemployeeservices • • • may: After thelock-indate,beneficiariesmayexercisetheirvestedrights,inwhicheventbeneficiary third, fouryearsandthelastfiveafterallocation.Thesevestedrightsarenon-transferable. be thelatterof31December2014or, inrespectofone-thirdtheallocations,threeyearsafterallocation,next 2014.Inrespectofallocationsmadeafter31July2010,thelock-indatewill the lock-inperiodendson31 December the BlackManagersTrust) atanytimeafterthelock-inperiod.Inrespectofoptionsallocatedonorbefore31July2010, The allocationofvestedrightsentitlesbeneficiariestoreceive Tiger Brandsshares(aftermaking capitalcontributionsto the Tiger BrandsBlackManagersTrust. oftheBEEtransactionimplementedon17October2005,4381831TigerIn terms Brandsshareswereacquiredby The followinginputswereused: participation rightsexercised participation No weightedaverageexercise pricehasbeencalculatedastherewereno Weighted averagefairvalueofoptionsgrantedduringthe year(peroption) Volatilities arebasedonthehistoricalvolatilityofTiger Brandssharepricematchingtheremaininglifeofeachoption. (2015: R52,5million). million)–refertonote29.Cash-settledoptionsexercisedduringtheyearamountedR35,6million (2015: R37,9 amountoftheliabilityrelatingtocash-settledoptionsat30September2016isR36,4million The carrying during theyear. The averagevolatilitywas31,1%(2015:24,6%)andtherisk-freerateapproximately7,5%6,7%to7,4%) 13/02/2013 Date ofgrant 01/10/2012 02/07/2012 03/02/2012 02/02/2011 • • • to whichtheyareentitled. Fund thecapitalcontributions,taxation(includingemployees’tax)costsandexpensesthemselvesreceiveshares costs andexpenses,distributetothemtheremainingshareswhichtheyareentitledor sharestofundthecapitalcontributions,paytaxation(includingemployees’ tax), Instruct thetrusteestosellsufficient contributions, taxation(includingemployees’tax),costsandexpenses Instruct trusteestosellalloftheirsharesanddistributetheproceedsthem,netfundsrequiredpaycapital continued of option(Rand) Strike price 299,8 265,4 252,0 253,2 189,1 12/02/2019 30/09/2018 01/07/2018 02/02/2018 01/02/2017 Expiry date of theunderlying stock atgrant Market price date (Rand) 289,5 272,4 247,0 255,0 188,2 Expected volatility

the remaininglife of thestockover of theoption(%) 1330442 11,0years 1 002284 (296023) (97135) 627 060 R101,49 65000 Number R293,9 30,4 31,3 31,3 31,3 31,3 2016 (1720914) 3081442 12,0years 1 330442 cover (times) 773441 (78086) 48000 Expected dividend R86,15 Number R292,0 2015 2,9 2,9 2,9 2,9 2,9

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 179 3,8 3,8 3,8 3,8 3,8 right (%) over the Expected life of the remaining of the stock participation dividend yield Annual Annual financial financial statements 25,3 25,3 25,3 25,3 25,8 right (%)

life of the

participation the remaining of the stock over Expected volatility 266,0 308,8 394,2 284,9 291,0

date (Rand)

Market price stock at grant of the underlying Expiry date

30/09/2027 30/09/2027 30/09/2027 30/09/2027 30/09/2027

85,84 85,87 81,91 82,47 79,01 price of Initial strike rights (Rand) participation the total discounted value of the shares (being an amount equal to R148,07 per share) less the initial equity contribution the total discounted value of the shares (being an amount equal to R148,07 per share) by Brimstone, increased over the transaction term prevailing prime rate); by a hurdle rate (being 85% of the received by Brimstone SPV as a result Brands but not an amount equal to 85% of the distributions declared by Tiger of the condition attaching to the issue of the shares increased over the transaction term by the hurdle rate; Brands ordinarythe market value of a Tiger end date; and share at the the subscription price of R7,40 per share. • • • • Date of grant 31/01/2014 31/07/2014 31/01/2015 31/07/2015 31/01/2016 Brimstone Investments Business Venture SPV Proprietary Brim Tiger Brimstone is required to hold its shares via Limited (previously, No 1323 Proprietary (Brimstone SPV). Brimstone and the Brimstone SPV may not sell or encumber such Limited shares until 31 has been December 2017 (the end date). The IFRS 2 charge of R61,9 million relating to Brimstone expensed upfront. Brands will be entitled to repurchase a certainAt the end date, Tiger number of shares from Brimstone at the subscription price of R7,40. The number of shares will be calculated in terms formula, of a repurchase whose inputs are: • • • • The following inputs were used: The following inputs were constructed ZAR swap curvesThe risk-free interest rate was obtained from inputs being on the valuation dates using key rates as published by Bloomberg. South African money-market rates and swap were Brands shares In terms implemented on 20 October 2009, 2 835 427 Tiger of the BEE Phase II transaction Corporation Limited (Brimstone). II and 1 813 613 shares by Brimstone Investment acquired by the Black Managers Trust Participation optimal payoff simulation approach to estimate the average, rights were valued using the Monte-Carlo of the participation rights using 5 000 permutations. The payoff was based on the projected Tiger of each random path early exercise conditions. debt projections and optimal Brands share price, outstanding share under the the daily price changes in the underlying as the annualised standard deviation of is measured Volatility price is log-normallyassumption that the share to estimate the Historical daily share price data was used distributed. expected volatility. Black Managers Trust II and Brimstone participation(equity settled) right schemes Black Managers Trust Black Managers ParticipationBlack Managers (equity settled) continued Rights Scheme 3 2 180 Tiger Brands Limited Annual financial statements 2016 3 Annexure D Black ManagersTrust rightschemes(equitysettled)continued IIandBrimstoneparticipation (2015: R21,6 million). (2015: R21,6 receivedduringthe yearto30September2016isR16,9million The expenserecognisedforemployeeservices life oftheBEEPhaseIItransaction. oftheimpactonstrikepricedividendspaid by Tiger Brandsduringthe and thestrikepriceofoption,byvirtue Brands shareprice.ThepathdependencyoftheoptionresultsfromrelationshipbetweenTiger Brandsshareprice rightswerevaluedusingtheMonte-Carlosimulationapproachwith“marketvariable” beingtheTiger Participation expected volatility. distributed.Historicaldailysharepricedatawasusedtoestimate the assumption thatthesharepriceislog-normally Volatility ismeasuredastheannualisedstandarddeviationofdailypricechangesinunderlyingshareon • • • • • • • • granted tothebeneficiariesofBlackManagers oftheBEEPhaseIItransaction: Trust IIinterms thefairvalueof therights In calculatingtheIFRS2charge,followinginputparameterswereutilisedtodetermine Trust II at thattime. shares,orthenetproceedsthereof,toblackmanagerswhoarebeneficiariesofBlackManagers ordinary andthetrusteesshalltransferthosebenefitsanyunallocated Tiger Brands failing whichthesewillbeforfeited, ofallbenefitsduetothem, ofthetruston31December2018,blackmanagersshalltakedelivery Upon termination Brimstone SPV)andthesubscriptionpriceis10centspershare(asopposedtoR7,40incaseofSPV). distributions declaredbyTiger BrandsarenotreceivedbytheBlackManagersTrust II(asopposedto85%inthecaseof of whicharesimilartothoseasdisclosedundertheBrimstoneheadingabove,otherthanforfactthat90%any theinputs The numberofsharestoberepurchasedbyTiger ofarepurchaseformula, Brandswillbecalculatedinterms numberofthesharesfromBlackManagersTrusta certain IIatthesubscriptionpriceof 10centspershare). allocatedtotheminaccordancewiththeirvestedrights(afterTiger Brandshasexerciseditsrighttorepurchase the shares of ofthefullbenefitaportion from31December2017,theblackmanagersmayelecttotakedelivery With effect 2010and31July2010. datesoftheseallocationswere31January The effective non-transferable. Originally allocationsofvestedrightstothesesharesweremadeatotalnumber484blackmanagersandare Black ManagersTrust II • • • • • • • • The primeinterestratesoverthelifeofrights. The risk-freeinterestratesoverthelifeofrights The expecteddividendyieldontheunderlyingequityoverlifeofrights The expectedvolatilityoftheunderlyingequityoverliferights The strikepriceoftherights The marketpriceoftheunderlyingequityasatvaluationdate The maturitydateoftherights The allocationdate continued

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 181 – 1,8 2,4 2,0 2,0 2,0 2,0 2,0 2,0 2015 right (%) Number over the (1 388) R153,0 R181,2 Expected life of the remaining 212 000 3,3 years (109 663) of the stock 2 783 305 participation 2 682 356 dividend yield Annual Annual – financial financial statements 2016 29,8 27,6 25,4 25,4 25,4 25,4 25,4 25,4 R158,7 R190,3 right (%) Number (16 521) life of the 111 000 2,3 years (199 412) 2 678 372

2 783 305 participation the remaining of the stock over Expected volatility 389,9 291,0 284,9 394,2 308,8 266,0 264,8 317,0 date (Rand)

Market price stock at grant of the underlying Expiry date 31/12/2018 31/12/2018 31/12/2018 31/12/2018 31/12/2018 31/12/2018 31/12/2018

31/12/2018

99,7 193,1 104,3 206,3 174,3 169,9 173,8 168,0 price of Initial strike rights (Rand) participation 31/07/2016 31/01/2016 31/07/2015 31/01/2015 31/07/2014 31/01/2014 01/01/2014 31/07/2013 Date of grant On 19 September 2005, shareholders approved a scheme of arrangement (section 311 of the Companies Act No 61 ofOn 19 September 2005, shareholders approved a scheme of arrangement (section of a 4% direct ownership interest in its issued ordinary Brands would facilitate the acquisition 1973) in terms of which Tiger share capital by a broad base of staff employed within the group. The court order sanctioning the scheme was registered by the Registrar of Companies on 29 September 2005, being the effective date of acquisition of the scheme shares. The total value of the staff empowerment transaction was R723,5 million, based on the closing price of the company’s implemented on 17 October 2005 shares on the JSE Limited on 13 July 2005 of R112 per share. The transaction was Brands shares by the 140 Tiger through a number of trusts and a special purpose vehicle. The acquisition of 5 896 and Thusani Empowerment Investment Holdings Proprietary Limited in terms of the scheme, at an Black Managers Trust This position. financial of statement group the in equity from deduction a as shown was million R649,5 of cost aggregate from 2008 such shares in Adcock reduced to R502,2 million in 2008 as a result of the Adcock Ingram unbundling. As Ingram are reflected as listed investments classified as available-for-sale. Brands shares acquired by the general staffThe cost of the Tiger trust (547 733 shares), together with the total expenses of the BEE transaction, was reflected as an abnormal group income statement in 2005. item of R69,4 million in the The following inputs were used: Outstanding at the beginning of the year Outstanding at the beginning Black Managers Trust II continued Black Managers Trust share participation the number of, and movements in, The following table illustrates the year: rights during Granted during the year Forfeited the year during Shares sold (death of employees) Shares sold (death of Outstanding at the end of the year Outstanding at the end Exercisable at the end of the year Weighted average remaining contractual life (years) Weighted average fair value of options granted during the year (per option) Weighted Notional average exercise price (per option) been calculated as there were no participationNo weighted average exercise price has rights exercised. ZAR swap interest rate curveA risk-free rate was constructed using a zero-coupon using a raw as at the valuation date inputs from South African money-market rates (interbank acceptance rates and interpolation bootstrapping algorithm, with Forward (FRA) rates) and swap rates, as published by Bloomberg. Rate Agreement Tiger Brands Limited shares held by subsidiaryTiger and empowerment entities Black Managers Trust II and Brimstone participation II continued schemes (equity settled) right Trust Black Managers 4 3 182 Tiger Brands Limited Annual financial statements 2016 (R’million) (%) Major categoriesofplanassetsinrespectdefinedbenefitarrangementsasat30September: in Tiger BrandsLimitedsharesamountedto0%(2015:0%). As at30September2016,thepercentageoffairvalueplanassetsinrespectdefinedbenefitarrangementsinvested of thefairvalueplanassets(2015:Rnil). occupiedby,As at30September2016,therewerenoproperties orotherassetsusedby, part groupcompanieswhichformed R266,9 million(2016actual:R243,3million). The valueofcontributionsexpectedtobepaidbygroupcompaniesfortheyearending30September2017amounts forthesameperiodofR35,1million(2015:R33,9million). This compareswiththeexpectedreturn onplanassetsfortheperiod1October2015to30September2016wasR31,3million(2015:R32,1million). The actualreturn been allowedforinthedisclosuresprovided.Alloffundsabovearefundedwithoneexception. death,funeralanddisabilitybenefitinsurancepolicies.Thesecostshave companies withinthegroupsponsorexternal fourschemesofinsuranceintowhichthecompanyanditssubsidiariescontribute.Certain provident funds.Thereareafurther funds, fivearedefinedcontributionpensiontwobenefitprovidentfundsandnine Within thecompany’s groupofsubsidiaries,thereareatotal23retirementplans,threewhichdefinedbenefitpension were used,takingaccountofactualsubsequentexperience. projectionsofpriorcompletedactuarialvaluations were notpossibleduetothelimitedavailabilityofcompletedata,roll-forward byindependentactuaries,usingtheprojectedunitcreditmethod.Wherevaluations of IAS19,valuationshavebeenperformed threeyears.Forpurposesofthesedisclosures,andinordertocomplywiththerequirements Funds Act,bevaluedatleastevery ofthePension of theretirementfundsareexemptfromactuarialvaluation.Thosenotvaluationmust,interms ofthePensionFundsAct,certain ofthePensionFundsActNo241956,asamended.Interms funds, administeredinterms benefit plansordefinedcontributionandarefunded.Theassetsofthefundsheldinindependenttrusteeadministered The companyanditssubsidiariescontributetoretirementplansthatcoverallemployees.areeitherdefined pension obligations. notedbelowsummarisesallkeyassumptions,valuationinputsanddisclosuresrelatingtotheTigerThis information Brands Pension obligations Annexure E Present valueofdefinedbenefitobligations Balance attheendofyear Other International Property Cash Bonds Equities Fair valueofplanassetsinrespectdefinedbenefitobligations Funded statusofdefinedbenefitplans Unrecognised duetoparagraph65limit Asset at reporting date Asset atreporting special purpose entitiesestablishedforpurposes ofprovidingdisabilitybenefits. of the PensionFundsAct,suchas of financialposition. Thislegislationisnotapplicable toarrangementsnotregistered interms tothe company hasbeenrecognised onthestatement Fund wasapprovedin2011.Where appropriate,surplusapportioned schemefortheICSPension PensionFundwereapprovedbytheRegistrarin 2008. Thesurplusapportionment Products Staff schemesfortheTiger BrandsDefinedBenefitPensionFundand the Beacon suchassets.Thesurplusapportionment apportioned for thecompanyoritssubsidiaries torecogniseanyassetsinrespectoftheretirementfunds, theextentthattheyare ofthe provisionsofthePensionFundsSecondAmendmentAct,2001, onlyatthatstagewoulditbeappropriate Funds interms exerciseis completed,andapprovedbytheRegistrarofPension company oritssubsidiaries.Once asurplusapportionment The disclosureofthefundedstatus isforaccountingpurposesonly, anddoesnotnecessarily indicateanyassetsavailabletothe

(314,6) 450,7 136,1 105,1 (31,0) 100,0 2016 2016 64,1 27,4 0,6 3,2 0,8 3,9 GROUP GROUP (305,7) 425,6 119,9 100,0 (21,4) 98,5 2015 2015 53,4 38,4 0,5 3,0 0,7 4,0

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Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 183 2,8 0,3 6,1 8,8 (1,9) (5,0) (0,3) (1,0) (3,6) 6,90 9,70 6,90 8,20 3,00 3,73 5,76 curve 2015 2015 98,5 33,9 29,1 (21,4) (21,4) (26,9) (26,2) 425,6 423,0 (305,7) (319,2) Full yield Annual Annual – – GROUP financial financial statements 2,1 0,3 7,9 7,90 7,90 9,40 3,00 3,82 6,72 (3,9) (7,9) (0,3) (0,9) (4,0) curve 2016 2016 35,1 14,0 10,80 (31,0) (31,0) (26,2) 105,1 450,7 425,6 (314,6) (305,7) Full yield

continued

Asset balance at the end of the year Asset ceiling at the end of the year Reconciliation of asset ceiling Unrecognised due to paragraph 65 limit Assets at fair market value at the end of the year Actuarial loss Settlement cost Benefits paid Risk premiums (Group Life and Permanent Health) Contributions Interest on plan assets Reconciliation of fair value of plan assets Assets at fair market value at the beginning of the year Defined benefit obligation at the end of the year Defined benefit obligation at the end of Settlement cost Risk premiums (Group Life and Permanent Health) Benefits paid Actuarial gain Interest cost Member contributions Tiger Oats Benefit Foundation Oats Tiger Nestlé Pension Fund ICS Pension Fund Future salary increases Post-retirement discount rate Pension Fund Brands Defined Benefit Tiger Nestlé Pension Fund Future pension increases Nestlé Pension Fund Current service cost Tiger Brands Defined Benefit Pension Fund Brands Tiger Actuarial assumptions were: assumptions used for accounting purposes The principal actuarial Discount rate Reconciliation of the defined benefit obligation of the year Defined benefit obligation at the beginning (R’million) (%) Pension obligations 184 Tiger Brands Limited Annual financial statements 2016 Change (%) Defined benefitobligation(R’million) Inflation rate Change (%) Defined benefitobligation(R’million) Discount rate rate ortheinflationrate. liabilities oftheTiger BrandsPRDBSProvidentFundandtheICSPensionarenotsensitivetochangesineitherdiscount The sensitivityanalysishasbeenpreparedfortheTiger BrandsDefinedBenefitPensionFundandtheNestléFund.The Sensitivity analysis Administration: Administrationofthisliabilityposesaburdentothecompany. the liabilityforcompany. employeebenefitsmayincrease Future changesinthetaxenvironment:Theriskthatlegislationgoverning liability forthecompany. Future changesinlegislation:Theriskthattolegislationwithrespectthepost-employmentliabilitymayincrease Open-ended, long-termliability:Theriskthattheliabilitymaybevolatileinfutureanduncertain. Longevity: Theriskthatpensionerslivelongerthanexpectedandthustheirpensionbenefitispayableforexpected. Inflation: TheriskthatfutureCPIinflationishigherthanexpectedanduncontrolled. The risksfacedbythegroupasaresultofpensionobligationscanbesummarisedfollows: Pension obligations Annexure E continued

continued Balance (263,8) (263,8) 2016

Rm (270,7) (257,6) +1% (2,4) 2,6 Rm (257,9) (271,2) (2,3) -1% 2,8 Rm

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Annual financial statements 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 185 (0,5) older 8,40 8,40 9,10 68,5 12,0 13,4 1,0% 1,0% (10,3) 2015 PA(90) PA(90) 720,4 639,7 576,9 plus 1% One year per annum from 2006 improvement ultimate rated down 2 years Discount rate 0,6 Medical inflation 53,8 12,6 (10,0) (11,0) Annual Annual (1,0%) (1,0%) 578,9 647,0 724,1 financial financial younger 2015 2015 2015 statements One year Expected retirement age 9,00 9,00 2016 10,00 PA(90) plus 1% 60,4 years per annum from 2006 643,1 643,1 643,1 8,40% 9,10%

improvement ultimate rated down 2 years Base case Base case Base case 60/63/65 (0,7) (9,9) 75,5 11,5 12,5 1,0% 1,0% older 742,6 661,6 600,2 One year

Discount rate 0,4 (9,6) 60,2 12,0 Medical inflation (10,4) (1,0%) (1,0%) 602,0 669,0 746,0 2016 2016 2016 younger One year Expected retirement age 67,2 years 666,0 666,0 9,00% 666,0

10,00%

Base case Base case Base case 60/63/65 The risks faced by the group as a result of the post-retirement medical aid obligation can be summarised as follows:The risks faced by the group as a result of cost inflation are higher than expected and uncontrolled. Inflation: The risk that future CPI inflation and healthcare and thus their healthcare benefit is payable for longer than expected. Longevity: The risk that pensioners live longer than expected the future and uncertain.Open-ended, long-term liability: The risk that the liability may be volatile in to the post-employment liability may increase theFuture changes in legislation: The risk that changes to legislation with respect Brands. liability for Tiger governingFuture changes in the tax environment: The risk that changes in the tax legislation employee benefits may increase the Brands. liability for Tiger who are not eligible for a The risk of dissatisfaction of current employees Perceived inequality between current employees: post-employment healthcare subsidy. Brands. to Tiger Administration: Administration of this liability poses a burden not strictly or consistently enforced. The risk that eligibility criteria and rules are Enforcement of eligibility criteria and rules: Post-retirement mortality tables Future salary increases Medical inflation Key assumption The principal actuarial assumptions used for accounting purposes were: assumptions used for accounting purposes The principal actuarial Discount rate (R’million) (R’million) (R’million) (R’million) Sensitivity analysis (%) This information noted below summarises all key assumptions, valuation inputs and key disclosures relating to the Tiger Brands This information to the Tiger valuation inputs and key disclosures relating below summarises all key assumptions, noted aid obligations. post-retirement medical benefit schemes that cover certain subsidiaries operate post-employment medical The company and its of their employees and the projected unit The liabilities are valued annually using has since been stopped for new employees. retirees. This practice actuarial valuation was performedcredit method. The latest on 30 September 2016. Post-retirement medical aid obligations medical aid Post-retirement Annexure F Annexure Accrued liability 30 September % change % change % change % change Key assumption Current service cost plus interest cost The duration of the liability at 30 September 2016 is 12,4 years (2015: 12,9 years). Present value of obligations 30 September Key assumption Present value of obligations 30 September 2016 186 Tiger Brands Limited Integrated annual report 2016 22 November2016 Company secretary T Naidoo By orderoftheboard both days inclusive. maynotbedematerialised orrematerialisedbetween Share certificates Wednesday, 2017,andFriday, 11January 2017, 13January Payment inrespectofthefinaldividend thoseshareholdersentitled tothefinaldividend Record datetodetermine Shares commencetradingexthefinaldividend Last daytotradecumthefinaldividend Shareholders areadvisedofthefollowingdatesinrespect finaldividend: • • • • • • • is disclosed: paragraphs 11.17(a)(i)to(x)and11.17(c)oftheJSEListingsRequirements,followingadditionalinformation from1April2012. Inaccordancewith The dividendwillbesubjecttothedividendstaxthatwasintroducedwitheffect 2016. 30 September share(gross)inrespectoftheyearended The boardhasapprovedanddeclaredafinaldividendof702centsperordinary Declaration offinaldividendnumber144 Final dividend Interim dividend shares Ordinary Dividends 2017 Integrated annualreport 30 September 2017 Announcement ofannualresultsandfinaldividendfortheyearended anddividendforhalf-yearending31 March 2017 Announcement ofinterimreport andaccounts Reports Annual generalmeeting Financial yearend Shareholders’ diary • • • • • • • Tiger BrandsLimited’s incometaxreferencenumberis 9325/110/71/7. shares). sharesinissue(whichincludes10326758treasury Tiger Brandshas192069868ordinary shareforshareholdersliabletopaythedividendstax. centsperordinary 596,70 The netlocaldividendamountis shareforshareholdersexemptfromthedividendstax. centsperordinary 702 The grosslocaldividendamountis taxoncompanies(STC)creditsutilised. There arenosecondary The localdividendstaxrateis15%(fifteenpercentum). The dividendhasbeendeclaredoutofincomereserves.

November 2017 May 2017 Declaration Wednesday, 2017 11January Monday, 2017 16January Tuesday, 2017 10January Friday, 2017 13January 27 November2017 21 February 2017 21 February December 2017 25 May2017 30 September January 2018 January July 2017 Payment

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 187 information % % Shareholders’ Shareholders’ 5,4 4,7 4,1 9,0 6,6 5,4 4,7 3,5 3,2 3,1 2,1 4,6 9,9 5,4 0,1 0,0 % of % of 26,3 46,8 12,1 11,3 10,1 24,0 15,4 59,2 84,6 100,0 100,0 issued capital issued capital Total Total 1 221 Number Number of shares of shares 241 881 9 068 067 7 864 592 9 068 067 6 664 128 6 089 943 6 007 628 4 116 731 8 745 692 50 576 636 89 752 089 shareholding shareholding 23 317 219 10 326 758 21 609 168 17 281 331 12 705 066 10 326 758 46 075 187 19 438 305 29 567 101 18 997 241 10 326 758 192 069 868 192 069 868 113 693 953 162 502 767 0,8 3,3 0,2 80,4 0,05 15,3 0,03 0,01 0,01 0,01 100,0 99,95 100,00 % of total % of total shareholders shareholders 6 1 2 1 34 10 160 625 2 909 18 993 18 993 15 265 18 983 Number Number

of holders of holders Empowerment holdings Own holding Share trusts Directors and associates • • • • Government Employees Pension Fund Tiger Consumer Brands Limited Tiger Tiger Brands Foundation SPV Tiger First State Global Emerging Markets Fund Total Investment manager PIC Colonial First State Global Asset Management Investec Asset Management Consumer Brands Limited Tiger Brands Foundation SPV Tiger Sprucegrove Investment Management BlackRock Inc Prudential Investment Managers Total • Shareholder type 1 – 1 000 shares shares 100 001 – 1 000 000 above 1 000 001 shares and Non-public shareholders Shareholder spread 1 001 – 10 000 shares shares 10 001 – 100 000 Total • • • Total Public shareholders Beneficial shareholdings Through regular analysis of STRATE registered holdings, and in line with the provisions of section 56 of the Companies Act, the registered holdings, and in line with the provisions Through regular analysis of STRATE equal to or over 3% of the issued share capital as at 30 September 2016: following shareholders held directly and indirectly Investment management shareholdings Substantial investment management and beneficial interests above 3% Substantial investment management and Public and non-public shareholdings Within the shareholder base, we confirm the split between public shareholdings and directors/company-related schemes as being: In line with the JSE Listings Requirements, the table below confirmsIn line with the JSE Listings dated 30 September the spread of registered shareholders 2016 was: Registered shareholder spread Registered Analysis of registered shareholders and company schemes and shareholders of registered Analysis 188 Tiger Brands Limited Integrated annual report 2016 Total liabilities Net debt Net funding Net interestcover Current ratio Return onaveragenetassetsemployed Return onequity Effective taxationrate Abnormal items Operating margin Working capitalperR1000revenue Asset turnover Net worthperordinaryshare Dividend cover Headline earningspershare Definitions Long-term borrowingsandcurrentliabilities. Long-term borrowings. borrowings andshort-term Cash andcashequivalentslesslong-term borrowings netofcash. andshort-term non-controllinginterestsandlong-term Capital andreserves, Operating profitplusdividendincomedividedbynetfinancecosts. Ratio ofcurrentassetstoliabilities. financial year. valueofinvestments,atthebeginning andendofthe dividends andthecarrying borrowings,taxation,shareholdersfor andlong-term resources, short-term Operating profitasapercentageoftheaveragenetassets,excludingcash issued capitalandreserves. itemsdividedby shareholdersexcludingabnormal Profit attributabletoordinary Taxation chargeintheincome statementasapercentageofprofitbeforetaxation. considered appropriate. operations orwheretheirsizenaturearesuchthatadditionaldisclosureis Items ofincomeandexpenditurewhicharenotdirectlyattributabletonormal Operating profitasapercentageofturnover. (R000). year dividedbyturnover payable toshareholdersandtaxation,atthebeginningendoffinancial andreceivableslesspayables,excludingdividends The averageofinventory value ofinvestments,atthebeginningandendfinancialyear. borrowings,taxation,shareholdersfordividendsandthecarrying and long-term Turnover dividedbytheaverageofnetassets,excludingcashresources,short-term shares. andempowerment excludingtreasury year end, sharesinissueatthe sharesdividedbythenumberofordinary empowerment and shareholdersafterdeductingthecostoftreasury Interest ofordinary paid outofsharepremium. post-year end.Whereapplicablethedenominatorincludescapitaldistribution the year, comprisingtheinterimdividendpaidandfinaldeclared dividendpersharefor persharedividedbythetotalordinary Headline earnings shares). andempowerment issue duringtheyear(netoftreasury sharesin dividedbytheweightedaveragenumberofordinary Headline earnings

WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 Tiger Brands Limited Integrated annual report 2016 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo 189 information Shareholders’ Shareholders’

Total equity includes ordinary equity includes less treasury and share premium, share capital Total by empowermentshares and shares held entities, plus reserves and non-controlling interests. a percentage of operations after interest and taxation as Cash generated from resources. total liabilities less cash market price distributions as a percentage of year-end Dividends and capital per share. Headline earningsmarket price per share. per share as a percentage of year-end market price per share as a multiple of headline earnings end per share. Year Total equity Cash flow to net liabilities Dividend yield Earnings yield Price:earnings ratio 190 Tiger Brands Limited Integrated annual report 2016 legislation or regulation. legislation or requiredby becomesavailable asaresultoffutureevents orforanyotherreason,save as information even if new statements, reliance onthese statements.Thecompanyassumes noobligationtoupdate or reviseanyforward-looking statementwillmaterialiseand,accordingly,guarantee thatanyforward-looking readersare cautionednottoplaceundue the business, orifestimatesassumptionsproveinaccurate.Thecompany cannot affect unknown risksoruncertainties materiallyfromtheseexpectations ifknownand Actualresults may differ expectations atthetimeoffinalising thereport. indicated,reflectthecompany’s statementsthat, unlessotherwise containsforward-looking This integratedannualreport information Forward-looking The BankofNewYork Mellon ADR Administrator Receipt(ADR)facility American Depository 2196 Rosebank Rosebank Towers, Avenue 15 Biermann Limited Proprietary Computershare InvestorServices South Africansharetransfersecretaries JP MorganEquitiesLimited Sponsor Nedbank Limited Principal banker &YoungErnst Inc Auditors Facsimile: Telephone: PO Box78056,Sandton,2146 Sandton Bryanston 3010 WilliamNicolDrive Registered office T Naidoo Company secretary Registration number:1944/017881/06 Tiger BrandsLimited Company information +27 115140477 +27 118404000 Consumer helpline:0860005342 [email protected] [email protected] [email protected] Contact details www.tigerbrands.com Website address Telephone: Nikki Catrakilis-Wagner Investor relations +27 118404000

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192 Tiger Brands Limited Integrated annual report 2016

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BASTION GRAPHICS WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3

Tiger Brands integrated annual report and consolidated financial statements 2016 WorldReginfo - 77f7c9dd-2abc-4eaa-8a5a-a7c104a346e3 - WorldReginfo