SUR 201801290010A
Sales update for the six months ended 31 December 2017

Spur Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/000828/06)
Share code: SUR
ISIN: ZAE 000022653
(“Spur Corporation” or “the group”)


SALES UPDATE FOR THE SIX MONTHS ENDED 31 DECEMBER 2017

Franchised restaurant sales for the group declined by 2.6% to R3.7 billion in the
six months to December 2017 (“the period”), as economic conditions deteriorated
in most of the markets in which Spur Corporation trades.

In South Africa, franchised restaurant sales declined by 3.0%, while sales from
international restaurants increased by 1.3% in Rand terms and by 3.2% on a
constant exchange rate basis.

Franchised restaurant sales for the six months ended 31 December 2017
                                         Total restaurant          Existing
                                                    sales  restaurant sales
                                             (% change)         (% change)
Spur Steak Ranches                                (9.3)            (10.8)
Pizza and Pasta (Panarottis and                    6.6               1.9
Casa Bella)
Seafood (John Dory’s Fish Grill                    1.8              (7.4)
Sushi and Monterrey)
Captain DoRegos                                  (12.2)             (13.9)
The Hussar Grill                                  24.1               11.1
RocoMamas                                         37.5               22.2
Total South African operations                    (3.0)              (6.6)
Total international operations                     1.3               (6.6)
Total group                                       (2.6)              (6.6)

Locally, 35 new outlets were opened and 13 closed during the period, while five
outlets were opened and five closed internationally.

Chief executive, Pierre van Tonder, said: “The first half was a tale of two distinct
quarters: while local franchised restaurant sales declined by 6.2% in the three-
months to September 2017, the second three months of the financial year to
December 2017 showed a marked improvement with sales declining by only
0.2%.”

He attributes the group’s performance for the period to the residual effects of
what he described as the “perfect storm” of March 2017: the political uncertainty
caused by the cabinet reshuffle, the impact of the social media fallout following a
customer incident in a Spur outlet in Johannesburg and a struggling economy.
He added that, as previously communicated to shareholders, the group also
implemented a strategic decision to move its promotional strategies away from
discounting in the second half of the previous financial year, to protect franchisee
margins. This has had the expected negative impact on turnovers in the short
term, but is critical to the sustainability of the franchise model, particularly in the
case of Spur Steak Ranches, and has been successful in restoring acceptable
profitability for franchisees.

“The performance of The Hussar Grill and RocoMamas has been particularly
pleasing. We believe we are on the right track to restoring Spur Steak Ranches
to the growth trajectory it was on prior to March 2017. Economic growth is critical
to local business and the resolution of the political turmoil in the country will no
doubt have a profound impact on our future. While we cannot predict the impact
of the water crisis in the Western Cape, we are implementing remedial strategies
to limit the damage, should “day zero” become reality.”

At 31 December 2017, the group’s restaurant base comprised 613 (June 2017:
591) outlets, including 63 (June 2017: 63) operating outside of South Africa.

The financial information in this sales update has not been reviewed or reported
on by the group’s independent auditor. Spur Corporation’s interim results for the
six months ended 31 December 2017 will be released on SENS on 22 February
2018.


Cape Town
29 January 2018


Sponsor
Sasfin Capital
A division of Sasfin Bank Limited

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