Tiger Brands unaudited group results and dividend declaration for the six months ended 31 March 2022 TIGER BRANDS LIMITED (Incorporated in the Republic of South Africa) (Registration number 1944/017881/06) Share code: TBS ISIN: ZAE000071080 (“Tiger Brands” or the “Company”) TIGER BRANDS UNAUDITED GROUP RESULTS AND DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 MARCH 2022 Tiger Brands delivers a subdued performance for the six months ended 31 March 2022 in an increasingly tough trading environment Salient Features* - Revenue increased by 2% to R16.8 billion - Group operating income** decreased by 5% to R1.5 billion - Group operating margin** declined to 8.9% from 9.6% - EPS declined 3% to 733 cents per share - HEPS declined 2% to 729 cents per share - Interim Dividend unchanged at 320 cents per share - Share buy-back programme commenced - Venture Capital Fund makes inaugural investment in line with health and nutrition strategy *From continuing operations **Before impairments and non-operational items Overview Tiger Brands’ performance for the six months ended 31 March 2022 was impacted by a particularly poor first quarter, driven by significant volume declines in Bakeries and a protracted strike at Snacks and Treats. The poor performance of these businesses was compounded by challenges relating to the procurement of certain key raw materials and ingredients, as well as packaging availability and the inability to effect sufficient price increases to offset unexpected cost push. The group’s improved top line and profitability in the second quarter was insufficient to negate the poor start to the year. Total revenue from continuing operations increased by 2% to R16.8 billion, driven by price inflation of 3% and partially offset by overall volume declines of 1%. Volume growth in Exports and International was offset by volume declines in the Domestic business, primarily attributable to Milling and Baking, Snacks and Treats as well as Home and Personal Care. The volume declines were somewhat offset by a strong volume recovery in Out of Home and good performances in Rice, Beverages and Groceries. Although cost saving initiatives and supply chain efficiencies have been accelerated and are delivering ahead of plan, these were not enough to counter the high level of input cost inflation, resulting in gross margin compression to 29.2% from 30.6% in the corresponding period last year. Group operating income (before impairments and non-operational items) decreased by 5% to R1.5 billion. Operating income for the current period includes insurance proceeds of R17 million in respect of last year’s product recall and R144 million in respect of the civil unrest which occurred in July 2021. Earnings per share (EPS) from continuing operations decreased by 3% to 733 cents (2021: 755 cents) whilst headline earnings per share (HEPS) from continuing operations decreased by 2% to 729 cents (2021: 741 cents). EPS from total operations decreased by 12% to 733 cents (2021: 837 cents) and HEPS from total operations decreased by 2% to 729 cents (2021: 741 cents). The significantly higher decrease in EPS from total operations for the six months ended 31 March 2022, relative to HEPS, is due to the inclusion in the prior period of capital profits and foreign currency translation releases, amounting to R135 million, in respect of discontinued operations. Declaration of interim ordinary dividend The Company has declared an interim ordinary dividend of 320 cents per share for the six-months ended 31 March 2022, which is in line with the 2021 interim dividend. In accordance with paragraphs 11.17 (a) (i) to (x) and 11.17 (c) of the JSE Listings Requirements, the following additional information is disclosed: • The ordinary dividend has been declared out of income reserves • The local Dividends Tax rate is 20% (twenty percent) effective 22 February 2017 • The gross total dividend amount of 320,00000 cents per ordinary share will be paid to shareholders who are exempt from the Dividends Tax • The net total dividend amount of 256,00000 cents per ordinary share will be paid to shareholders who are liable for the Dividends Tax • Tiger Brands has 185 655 000 ordinary shares in issue (which includes 10 326 758 treasury shares) • Tiger Brands Limited’s income tax reference number is 9325/110/71/7. Shareholders are advised of the following dates in respect of the interim ordinary dividend: Declaration date Wednesday, 25 May 2022 Last day to trade cum the ordinary dividend Tuesday, 28 June 2022 Shares commence trading ex the ordinary dividend Wednesday, 29 June 2022 Record date to determine those shareholders Friday, 1 July 2022 entitled to the ordinary dividend Payment date in respect of the ordinary dividend Monday, 4 July 2022 Share certificates may not be dematerialised or rematerialised between Wednesday, 29 June 2022 and Friday, 1 July 2022, both days inclusive. Outlook The full impact of the global supply chain squeeze and related inflationary pressures are being felt acutely in the level of cost increases being experienced. Procurement positions are being exhausted and the recent weakening of the rand poses an additional headwind. The company will intensify its efforts to reduce costs and minimise selling price increases through its various cost reduction and efficiency initiatives. Nevertheless, significant price increases across most of the portfolio are inevitable. Inflation in the second half is likely to run into double digits with the full impact of this on consumer demand for our brands a key unknown. Balancing margin and volume will be a key challenge over the next 12 months. Although it is anticipated that profitability in the Bakeries segment is likely to remain at current levels for the remainder of the year, the company as a whole is well positioned to manage the challenges referred to above and grow period-on-period operating income in the second half. Any forward-looking information contained in this announcement has not been reviewed or reported on by the Group’s auditors. By order of the Board GJ Fraser-Moleketi NP Doyle Chairman Chief Executive Officer Bryanston 24 May 2022 Date of release: 25 May 2022 This short?form announcement is the responsibility of the Directors of the Company and has not been reviewed or audited by the Group's auditors. The information disclosed is only a summary of the full announcement and does not contain full or complete details. Any investment decisions should be based on the consideration of the Tiger Brands interim results announcement ("Results"). The results were released on SENS on 25 May 2022 and are available on the Company's website www.tigerbrands.com and https://senspdf.jse.co.za/documents/2022/jse/isse/tiih/TigerHY22.pdf. Copies of the Results are available for inspection at the Company's registered office, the offices of our sponsor or may be requested from the Company's investor relations department during normal business hours and are available at no charge. Registered office: 3010 William Nicol Drive, Bryanston, 2021 Independent non-executive directors: GJ Fraser-Moleketi (Chairman), MO Ajukwu, FNJ Braeken, CH Fernandez, GA Klintworth, TE Mashilwane, M Sello, OM Weber, DG Wilson Executive directors: NP Doyle (Chief Executive Officer), DS Sita (Chief Financial Officer) Secretary: JK Monaisa Sponsor: J.P. Morgan Equities South Africa Proprietary Limited Date: 25-05-2022 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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