The Interview

In January 2012, Choppies finalised its restructuring and filed for an IPO to list its shares on the Botswana Stock Exchange. Since then, the company’s stock price performance has outperformed all of its listed competitors in southern Africa.

More recently, Choppies acquired ten

supermarkets and a distribution centre in Zimbabwe. Post that acquisition, the Company has already opened two additional stores in the country. We believe there is a large and attractive retail opportunity in Zimbabwe.

Also, in December 2013, Standard Chartered Private Equity (“SCPE”) became a significant shareholder in the company, and will continue to help drive value for all stakeholders, over the next five years.

What more can you tell us about the recent investment from SCPE?

SCPE, the principal investment arm of Standard Chartered Bank PLC, acquired a c. 13% minority equity stake in Choppies in December 2013 through an innovative PIPE structure. SCPE’s investment in Choppies is its first in Botswana, and is believed to be the largest-ever private equity investment in the country. SCPE has already started working closely with us. Key initiatives include actively promoting Choppies to the South African and international investor communities, and providing strategic support to management

Choppies at a Glance

• With the humble beginning in 1986 with one supermarket named Wayside in LOBATSE, the unit has grown into the leading retailer group in FMCG industry in Botswana.

• The group holds over 30% share of the retail market in FMCG industry in Botswana.

• The group has stores all around Botswana serving the population in nooks and corners of the vast land extending from Pitsane to Shakawe.

• The group deals in more than 45000 products along with many own brand products. • More than 70% of the local farm produce is marketed through Choppies outlets.

• The infrastructure is supported with two warehouses, one packaging unit and a strong logistics division along with a maintenance division.

• Most of the units are having a Bakery, Butchery and Takeaway section in addition to normal super market facilities.

• Quality of the products is assured from the sourcing level and during the process of receipt and storing as well as at the time of sale by ensuring that regulatory conditions are strictly followed.

and the Board. Standard Chartered Ban has been a good financial partner to Choppies through the years. As we continue our profitable growth across southern Africa, this major equity investment will further strengthen that productive relationship, bringing additional bandwidth to Our Board, and benefits to our stakeholders.

What is the significance of this investment and what are your plans for it?

SCPE brings along a wealth of financial and strategic expertise which will add further substance and value to our Board and company. Moreover, a closer affiliation with Standard Chartered Bank brings a full suite of financial products which would support Choppies in its growth aspirations across the

African continent. We look forward to working with SCPE over the next five years to grow our business and deliver value to our stakeholders.

What does the future hold for Choppies Enterprises Ltd?

Choppies intends to maintain its growth through new store opening across its current markets. We hope to at least double our number of stores by 2018 and maintain our market leadership in our home market of Botswana. We also intent on expanding into new SSA markets either organically or through acquisitions, and SCPE will be assisting us in our regional growth strategy.

Contact: Website: www.choppies.co.bw

37