• + 35. Directors’ emoluments
    R000 Services as Directors of Massmart Holdings Limited Salary and allowances Bonuses and performance related payments1 Other benefits Retirement and related benefits Subtotal Fringe benefit of interest-free loans used to finance shares2 Gains on exercise of share options and on shares purchased by Directors Total
    For the 52 weeks ended December 2015
    Executive Directors
    Hayward, GRC  5,175  5,273  965  543  11,956  834  12,790
    Zwarenstein, I3  671  63  734  734
    van Lierop, J4  4,106  5,582  2,222  356  12,266  12,266
     9,952  10,855  3,187  962  24,956  834  25,790
    Non-executive Directors
    Dlamini, KD  1,440  1,440  1,440
    Seabrooke, CS  1,531  1,531  1,531
    Broader, S5
    Clarke, A6
    Gwagwa, NN  543  543  543
    Kgosana, R7  185  185  185
    Langeni, P  795  795  795
    Suarez, JP
     4,494  4,494  4,494
    Total  4,494  9,952  10,855  3,187  962  29,450  834  30,284
       
    The Board is wholly responsible for the formulation, development and effective implementation of Group strategy. The Board has gained progressive insight into the definition of a ‘prescribed officer’ following the issuance of guidance from SAICA and, in turn, delegates operational strategy implementation and general executive management of the business to its Executive Directors. As such, in terms of section 38 of the Companies Act 2008, those previously designated as prescribed officers are no longer deemed to be. For ease of reference, the 2014 cost relating to those previously designated as prescribed officers was R72.2 million.
       
    R000 Services as Directors of Massmart Holdings Limited Salary and allowances Bonuses and performance related payments1 Other benefits Retirement and related benefits Subtotal Fringe benefit of interest-free loans used to finance shares2 Gains on exercise of share options and on shares purchased by Directors Total
    For the 52 weeks ended December 2014
    Executive Directors
    Pattison, GM8  5,215  692  365  6,272  1,365  15,788  23,425
    Hayward, GRC  4,443  5,916  667  337  11,363  844  12,207
    Zwarenstein, I3  2,603  2,827  103  162  5,695  5,695
     12,262  8,743  1,462  864  23,330  2,209  15,788  41,327
    Non-executive Directors
    Dlamini, KD  892  892  892
    Seabrooke, CS  1,491  1,491  1,491
    Broader, S5
    Clarke, A6
    Gwagwa, NN  512  512  512
    Langeni, P  758  758  758
    Suarez, JP
    Cheesewright, D9
    Davis, JA9
    Lamberti, MJ10  359  359  359
     4,012  4,012  4,012
    Total  4,012  12,262  8,743  1,462  864  27,343  2,209  15,788  45,340
       
    1In order to match incentive awards with the performance to which they relate, bonuses above reflect the amounts accrued in respect of each year and not amounts paid in that year.
    2Held in terms of the rules of the Company’s share scheme.
    3Resigned with effect from 12 March 2015.
    4Appointed with effect from 12 March 2015.
    5Resigned with effect from 9 November 2015.                    
    6Appointed with effect from 16 July 2014.
    7Appointed with effect from 1 September 2015.
    8Resigned with effect from 31 December 2014. As a past Director GM Pattison earned a gain on the exercise of share options and on shares purchased of R29.4 million as well as a fringe benefit of R0.2 million in the current year. Refer to note 36 for more detail.
    9Resigned with effect from 16 July 2014.
    10Resigned with effect from 10 April 2014.
  • + 36. Interests of directors in the Company’s share scheme
                     
    Details of Directors’ shares and share options per Director:
        Grant dates   Subscription price (R)   Market price (R)   Number of shares/share options   Gain on sale/exercise (R 000’s)   Expiry date
    Pattison, GM                        
    Employee Share Option Scheme (note 29)                      
    Balance at December 2013                684,021        
    Options exercised/ shares sold          (230,750)      
    Balance at December 2014                453,271        
    Options forfeited   Various    154      (79,303)     _
    Options exercised   1 September 2011    154    162    (79,300)    618    
    Shares sold   23 May 2006    54    162    (183,750)    19,752    
    Shares sold   24 May 2007    94    162    (26,948)    1,816    
    Shares sold   26 May 2008    73    162    (41,768)    3,708    
    Shares sold   27 May 2009    78    162    (42,202)    3,547    
    Balance at December 2015                      
                             
    Employee Share Incentive Plan (note 29)            
    Balance at December 2013                38,274        
    Share awards/ Share grants            
    Balance at December 2014                38,274        
    Performance share awards forfeited   16 September 2013        (28,705)     15 September 2016
    Restricted share grants forfeited   16 September 2013        (9,569)     15 September 2018
    Balance at December 2015                      
                             
                             
        Grant dates   Subscription price (R)   Market price (R)   Number of shares/share options   Gain on sale/exercise (R 000’s)   Expiry date
    Hayward, GRC                        
    Employee Share Option Scheme (note 29)                      
    Balance at December 2013                456,906        
    Shares sold            
    Balance at December 2014                456,906      
    Options exercised/ shares sold              
    Balance at December 2015                456,906        
    Comprising:   24 May 2007    94      24,444     23 May 2017
        1 April 2008    67      19,912     31 March 2018
        26 May 2008    73      36,573     25 May 2018
        27 May 2009    78      105,448     26 May 2019
        1 September 2011    154      120,987     31 August 2021
        16 May 2012    160      149,542     15 May 2022
                             
    Employee Share Incentive Plan (note 29)                      
    Balance at December 2013                27,798        
    Performance share awards   17 March 2014        32,786     16 March 2017
    Restricted share grants   15 September 2014        11,506     14 September 2019
    Balance at December 2014                72,090        
    Performance share awards   16 March 2015        27,559     16 March 2018
    Restricted share grants   15 September 2015        14,198     15 September 2020
    Balance at December 2015                113,847        
    Comprising: Performance share awards   16 September 2013        20,848     15 September 2016
                           Restricted share grants   16 September 2013        6,950     15 September 2018
                           Performance share awards   17 March 2014        32,786     16 March 2017
                           Restricted share grants   15 September 2014        11,506     14 September 2019
                           Performance share awards   16 March 2015        27,559     16 March 2018
                           Restricted share grants   15 September 2015        14,198     15 September 2020
                             
                             
        Grant dates   Subscription price (R)   Market price (R)   Number of shares/share options   Gain on sale/exercise (R 000’s)   Expiry date
    Zwarenstein, I                        
    Employee Share Option Scheme (note 29)                    
    Balance at December 2013                167,331        
    Options exercised              
    Balance at December 2014                167,331      
    Options exercised            
    Balance at December 2015                167,331        
    Comprising:   26 May 2008    73      8,037     25 May 2018
        27 May 2009    78      3,677     26 May 2019
        1 September 2011    154      63,941     31 August 2021
        16 May 2012    160      91,676     15 May 2022
                             
    Employee Share Incentive Plan (note 29)                      
    Balance at December 2013                17,012        
    Performance share awards   17 March 2014        16,686     16 March 2017
    Balance at December 2014                33,698        
    Performance share awards            
    Balance at December 2015                33,698        
    Comprising: Performance share awards   16 September 2013        12,759     15 September 2016
                           Restricted share grants   16 September 2013        4,253     15 September 2018
                           Performance awards   17 March 2014        16,686     16 March 2017
                             
    van Lierop, J                        
                             
    Employee Share Incentive Plan (note 29)                      
                             
    Balance at December 2014                      
    Performance share awards   16 March 2015        71,495     16 March 2018
    Restricted share grants   16 March 2015        23,832     16 March 2020
    Restricted share grants   15 September 2015        12,351     15 September 2020
    Balance at December 2015                107,678        
    Comprising: Performance share awards   16 March 2015        71,495     16 March 2018
                           Restricted share grants   16 March 2015        23,832     16 March 2020
                           Restricted share grants   15 September 2015        12,351     15 September 2020
                             
    The Directors interest in the Company’s shares and options held at reporting date can be found in the Director’s Report.

     

  • + 37. Principal subsidiaries
                               
                             
    Details of Massmart’s principal subsidiary companies are as follows:
                               
          Number of shares in issue   Place of incorporation and operation   Ownership   Voting power       Interest in Subsidiaries1
    Name of company     000s     %   %   Principal activity   Rm
                               
                               
    December 2015                          
    Massbuild Proprietary Limited       South Africa    100    100   Wholesale and retail of DIY products    377.9
    Masscash Proprietary Limited     South Africa    100    100   Holding company    1,521.8
    Massmart International Holdings Limited     Mauritius    100    100   Holding company    81.4
    Masstores Proprietary Limited    200   South Africa    100    100   Retailing, warehousing, mass merchandising    (563.9)
    Massmart Management and Finance Company Proprietary Limited     South Africa    100    100   Management, investment and finance    (168.3)
    Wild Developments Proprietary Limited     South Africa    100    100   Property Holding Company    122.5
    Other smaller subsidiaries       Various                1,603.4
                               2,974.8
    December 2014                          
    Massbuild Proprietary Limited       South Africa    100    100   Wholesale and retail of DIY products    1,124.5
    Masscash Proprietary Limited     South Africa    100    100   Holding company    890.0
    Massmart International Holdings Limited     Mauritius    100    100   Holding company    81.4
    Masstores Proprietary Limited    200   South Africa    100    100   Retailing, warehousing, mass merchandising    (581.9)
    Massmart Management and Finance Company Proprietary Limited     South Africa    100    100   Management, investment and finance    12.1
    Wild Developments Proprietary Limited     South Africa    100    100   Property Holding Company    122.5
    Other smaller subsidiaries       Various                1,561.2
                               3,209.8
                               
    The above details are given in respect of interests in subsidiaries, where material. A full list of subsidiaries is available to shareholders, on request, at the registered office of the Company.
    There were no material non-controlling interests identified within the Group in the current and prior financial years.
    1Interest includes the value of the shares in as well as loans to/from these principal subsidiaries.

     

  • + 38. Notes to the Statement of Cash Flows
    December 2015 December 2014
    Rm 52 weeks 52 weeks
    38.1 Cash inflow from trading activities
    Profit before taxation  1,675.1  1,620.8
    Adjusted for:
    Depreciation, amortisation and impairment  971.9  871.2
    Net (gain)/loss on disposal of tangible and intangible assets  (2.9)  1.4
    Interest paid  507.7  386.8
    Interest received  (32.4)  (41.5)
    Investment income  (54.5)
    Share-based payment expense  218.5  127.9
    Unrealised foreign exchange profit  (15.0)  (2.4)
    Other non-cash movements  116.0  19.2
     3,384.4  2,983.4
    Other non-cash movements includes the lease smoothing liability and any dividends payable at the end of the period.
    38.2 Working capital movements
    Increase in inventories  (705.7)  (1,112.4)
    Increase in trade receivables and prepayments  (481.0)  (697.8)
    Increase in trade payables  1,617.3  1,658.3
    Decrease in provisions  (58.6)  (143.2)
     372.0  (295.1)
    38.3 Taxation paid
    Normal taxation:
    Amounts owing at the beginning of the year  (152.0)  (319.3)
    Amounts owing at the end of the year  104.8  152.0
    Receiver of Revenue balance acquired on current year business and asset acquisitions  (0.9)  (7.1)
    Taxation charged to the Income Statement (excluding deferred taxation)  (582.9)  (509.0)
     (631.0)  (683.4)
    38.4 Investment to maintain operations
    Land and buildings/leasehold improvements  (134.7)  (104.8)
    Vehicles  (64.7)  (92.1)
    Fixtures, fittings, plant and equipment  (586.3)  (427.2)
    Computer hardware  (105.0)  (108.1)
    Computer software  (92.8)  (123.6)
    Right of use  (0.2)  (0.9)
    Other  (0.7)
     (983.7)  (857.4)
    December 2015 December 2014
    Rm 52 weeks 52 weeks
    38.5 Investment to expand operations
    Land and buildings/leasehold improvements  (273.8)  (936.9)
    Vehicles  (14.3)  (11.0)
    Fixtures, fittings, plant and equipment  (353.6)  (341.7)
    Computer hardware  (31.4)  (12.6)
    Computer software  (29.6)  (7.9)
    Capitalised borrowing cost on buildings  (8.0)  (12.0)
     (710.7)  (1,322.1)
    38.6 Proceeds on disposal of tangible and intangible assets
    Land and buildings/leasehold improvements  11.1  9.0
    Vehicles  23.8  12.7
    Fixtures, fittings, plant and equipment  3.5  10.6
    Computer hardware and software  0.3  0.2
     38.7  32.5
    38.7 Proceeds on disposal of assets classified as held for sale  23.1
    38.8 Investment in business combinations
    Fair value of assets and liabilities acquired in business combinations:
    Cash and cash equivalents  21.6
    Inventories  0.9
    Debtors and prepayments  1.2
    Creditors  (19.0)
    Provisions  (9.4)
    Taxation  (0.9)
    Tangible assets  1.0  1.4
    Intangible assets  44.0  12.1
    Total purchase price  38.5  14.4
    Less: Cash and cash equivalents of subsidiary  (21.6)
    Cash impact of acquisition, net of cash and cash equivalents acquired  16.9  14.4
    38.9 Other investing activities
    Capital contribution made to the investment in insurance cell-captive on premium contributions  (0.1)
    Other  3.9  15.0
     3.9  14.9
    38.10 Non-controlling interests acquired
    Non-controlling interest  (41.4)  (11.0)
    Other reserves – premium on acquisition of non-controlling interests  (18.7)  (27.6)
     (60.1)  (38.6)
    38.11 Cash and cash equivalents at the end of the year
    Cash on hand and bank balances  2,004.9  2,067.4
    Bank overdrafts  (446.4)  (584.0)
    Cash and cash equivalents at the end of the year  1,558.5  1,483.4
  • + 39. Fair Value
                                 
    Fair value hierarchy
                                 
    The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments identified below. The table below reflects ‘Financial instruments’ and ‘Non-current assets classified as held for sale’ carried at fair value, and those ‘Financial instruments’ and ‘Non-current assets classified as held for sale’ that have carrying amounts that differ from their fair values, in the Statement of Financial Position:
                                 
    Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
    Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly
    Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data
                                 
    Financial instruments in the Statement of Financial Position
                                 
    Rm   Total Carrying Amount   Total Fair Value   Level 1   Level 2   Level 3
                                 
    December 2015                    
    Financial Assets                    
    Financial assets at fair value through profit or loss    188.1    188.1      188.1  
    – Investment in insurance cell-captive on extended warranties    56.2    56.2      56.2  
    – Investment in insurance cell-captive on premium contributions    83.0    83.0      83.0  
    – Investment in insurance cell-captive on credit life    0.1    0.1      0.1  
    – FEC asset – De-designated    48.8    48.8      48.8  
    Financial asset designated as a cash flow hedging instrument    20.7    20.7      20.7    
    – FEC asset – Designated    20.7    20.7      20.7    
    Loans and receivables    18.9    13.9      13.9  
    – Employee share trust loans    18.9    13.9      13.9  
    Available-for-sale investments    4.9    4.9    4.9    
    – Listed investments    4.9    4.9    4.9    
    Non-current assets classified as held for sale    11.5    11.5        11.5
                         
                 244.1    239.1    4.9    222.7    11.5
                                 
    Financial liabilities                    
    Financial liabilities at amortised cost    2,538.3    2,522.0      2,522.0  
    – Medium-term loan    600.0    595.7      595.7  
    – Medium-term bank loans    1,938.3    1,926.3      1,926.3  
    Financial liabilities at fair value through profit or loss    5.6    5.6      5.6  
    – FEC liability – De-designated    5.6    5.6      5.6  
    Financial liability designated as a cash flow hedging instrument    2.1    2.1      2.1  
    – FEC liability – Designated    2.1    2.1      2.1  
                                 
                 2,546.0    2,529.7      2,529.7  
                                 
                                 
    There were no transfers between the fair value categories during the December 2015 financial year.
    The financial assets and financial liabilities have been presented based on an analysis of their respective natures, characteristics and risks.
                                 
                                 
    Financial instruments in the Statement of Financial Position    
    Rm   Total Carrying Amount   Total Fair Value   Level 1   Level 2   Level 3
                                 
    December 2014                    
    Financial Assets                    
    Financial assets at fair value through profit or loss    155.1    155.1      155.1  
    – Investment in insurance cell-captive on extended warranties    56.1    56.1      56.1  
    – Investment in insurance cell-captive on premium contributions    69.0    69.0      69.0  
    – Investment in insurance cell-captive on credit life    0.1    0.1      0.1  
    – FEC asset – De-designated    29.9    29.9      29.9  
    Financial asset designated as a cash flow hedging instrument    13.7    13.7      13.7  
    – FEC asset – Designated    13.7    13.7      13.7  
    Loans and receivables    37.6    30.3      30.3  
    – Employee share trust loans    37.6    30.3      30.3  
    Available-for-sale investments    8.4    8.4    8.4    
    – Listed investments    8.4    8.4    8.4    
    Non-current assets classified as held for sale    18.0    22.0        22.0
                                 
                 232.8    229.5    8.4    199.1    22.0
                                 
    Financial liabilities                    
    Financial liabilities at amortised cost    2,941.7    2,653.0      2,653.0  
    – Medium-term loan    854.5    591.3      591.3  
    – Medium-term bank loans    2,087.2    2,061.7      2,061.7  
    Financial liabilities at fair value through profit or loss    4.5    4.5      4.5  
    – FEC liability – De-designated    4.5    4.5      4.5  
    Financial liability designated as a cash flow hedging instrument    2.2    2.2      2.2  
    – FEC liability – Designated    2.2    2.2      2.2  
                                 
                 2,948.4    2,659.7      2,659.7  
                                 
    There were no transfers between the fair value categories during the December 2014 financial year.
    The financial assets and financial liabilities have been presented based on an analysis of their respective natures, characteristics and risks.
                                 
                                 
    Fair value measurement and valuation techniques for level 2 and level 3 financial instruments
                                 
    Rm     Fair value December 2015   Valuation technique   Significant inputs   Input
    2015
                                 
    Type of financial instrument                
    Financial Assets                
                                 
    Financial assets at fair value through profit or loss    188.1            
    Investment in insurance cell-captive on extended warranties    56.2   NAV   Cash and cash equivalents    
                            Investment in unit trusts    
                            Insurance fund liabilities    
    Investment in insurance cell-captive on premium contributions    83.0   NAV   Cash and cash equivalents    
                            Investment in unit trusts    
                            Insurance fund liabilities    
    Investment in insurance cell-captive on credit life    0.1   NAV   Cash and cash equivalents    
    FEC asset – De-designated    48.8   DCF   Yield curves
    Market interest rate
    Market foreign exchange rate
       
                     20.7            
    FEC asset – Designated    20.7   DCF   Yield curves
    Market interest rate
    Market foreign exchange rate
       
                                 
    Loans and receivables    13.9            
    Employee share trust loans    13.9   DCF   Market interest rate    
                     
    Available-for-sale financial assets    4.9            
    Listed investments    4.9            
                     
         11.5            
    Non-current assets classified as held for sale    11.5   Signed sales agreement   Expected selling price in the market    11.5
                     
                     239.1            
                                 
    Financial liabilities                
                                 
    Financial liabilities at amortised cost    2,522.0            
    Medium-term loan    595.7   DCF   Market interest rate    
    Medium-term bank loans    1,926.3   DCF   Market interest rate    
    Financial liabilities at fair value through profit or loss    5.6            
    FEC liability – De-designated    5.6   DCF   Yield curves
    Market interest rate
    Market foreign exchange rate
       
                     
         2.1            
    FEC liability – Designated    2.1   DCF   Yield curves
    Market interest rate
    Market foreign exchange rate
       
                                 
                     2,529.7            
                                 
                                 
    Valuation technique   Description of valuation technique
                                 
    Net asset value (NAV)   Net asset value is used as a valuation technique where the underlying assets and liabilities have been assessed to represent the fair value of the investment. Due to the nature of the investment, specifically the significant composition of liquid assets and liabilities, the net asset value is seen to be the most appropriate representation of fair value.
                                 
    Discounted cash flow (DCF)   The DCF method involves the projection of a series of cash flows. To this projected cash flow series, an appropriate, market-derived discount rate is applied to establish the present value of the cash flow stream associated with the item. With regards to assets, the fair value is estimated using explicit assumptions regarding the benefits and liabilities of ownership over the asset’s life including an exit or terminal value. With regards to liabilities, in determining fair value management considers non-performance risk and the Group’s own credit risk. To this end, the Group applies Method 2 of the expected present value technique per IFRS 13 Fair Value Measurement.
                                 
                                 
    Fair value measurement and valuation techniques for level 2 and level 3 financial instruments
                                 
    Rm     Fair value December 2014   Valuation technique   Significant inputs   Input 2014
                                 
    Type of financial instrument                
                                 
    Financial Assets                
                                 
    Financial assets at fair value through profit or loss    155.1            
    Investment in insurance cell-captive on extended warranties    56.1   NAV   Cash and cash equivalents    
                            Investment in unit trusts    
                            Insurance fund liabilities    
    Investment in insurance cell-captive on premium contributions    69.0   NAV   Cash and cash equivalents    
                            Investment in unit trusts    
                            Insurance fund liabilities    
    Investment in insurance cell-captive on credit life    0.1   NAV   Cash and cash equivalents    
                            Insurance fund liabilities    
    FEC asset – De-designated    29.9   DCF   Yield curves
    Market interest rate
    Market foreign exchange rate
       
                                 
                     13.7            
    FEC asset – Designated    13.7   DCF   Yield curves Market interest rate Market foreign exchange rate    
                                 
    Loans and receivables    30.3            
    Employee share trust loans    30.3   DCF   Market interest rate    
                                 
    Available-for-sale financial assets    8.4            
    Listed investments    8.4            
                                 
                     22.0            
    Non-current assets classified as held for sale    22.0   Signed sales agreement   Expected selling price in the market    22.0
                                 
                     229.5            
                                 
    Financial liabilities                
                                 
    Financial liabilities at amortised cost    2,653.0            
    Medium-term loan    591.3   DCF   Market interest rate    
    Medium-term bank loans    2,061.7   DCF   Market interest rate    
                                 
    Financial liabilities at fair value through profit or loss    4.5            
    FEC liability – De-designated    4.5   DCF   Yield curves
    Market interest rate
    Market foreign exchange rate
       
                     2.2            
    FEC liability – Designated      2.2   DCF   Yield curves
    Market interest rate
    Market foreign exchange rate
       
                                 
                     2,659.7            
                                 
                                 
    Valuation technique   Description of valuation technique
                                 
    Net asset value (NAV)   Net asset value is used as a valuation technique where the underlying assets and liabilities have been assessed to represent the fair value of the investment. Due to the nature of the investment, specifically the significant composition of liquid assets and liabilities, the net asset value is seen to be the most appropriate representation of fair value.
                                 
    Discounted cash flow (DCF)   The DCF method involves the projection of a series of cash flows. To this projected cash flow series, an appropriate, market-derived discount rate is applied to establish the present value of the cash flow stream associated with the item. With regards to assets, the fair value is estimated using explicit assumptions regarding the benefits and liabilities of ownership over the asset’s life including an exit or terminal value. With regards to liabilities, in determining fair value management considers non-performance risk and the Group’s own credit risk. To this end, the Group applies Method 2 of the expected present value technique per IFRS 13 Fair Value Measurement.

     

  • + 40. Risk Management
      Capital risk management          
                                       
      The Group measures its capacity for debt by monitoring gross interest bearing debt (including a 5 times multiple of rent) over EBITDAR and EBITDA divided by net interest. Provided that these two metrics are within target ranges (agreed with the Group’s Audit Committee and lenders from time to time), the Group is satisfied that it will continue as a going concern while maximising the return to stakeholders through the optimisation of debt and equity balances.  
                                       
      The capital structure of the Group consists of debt, more specifically medium-term interest-bearing debt and equity attributable to owners of the parent, comprising share capital, share premium, other reserves and retained profit (See note 22 and note 23 respectively).  
         
      The targeted level of gearing is determined after consideration of the following key factors :  
      – the needs of the Group to fund current and future capital expenditure to achieve its stated production growth target; and  
      – the desire of the Group to maintain its gearing within levels considered to be acceptable taking into account potential business opportunities and the position of the Group in the business cycle.  
      The targeted level of gearing was adequately managed in the current financial year.  
         
      The Group has medium-term debt facilities that include certain covenants, including:  
      – maximum gearing ratio;  
      – minimum interest cover; and  
      – specified levels of shareholders’ equity.  
         
      The Group’s general banking facility can be analysed as follows:  
                                       
      Rm   December 2015   December 2014                      
                                       
      Available cash reserves      1,558.5    1,483.4                      
      General banking facility      5,493.9    5,478.3                      
      Total      7,052.4    6,961.7                      
                                       
      The Group complies with all externally imposed capital requirements relating to loan covenants.  
                                       
                                       
      Classification of financial instruments                          
                                       
      December 2015     Financial instrument   Cash flow – hedging instrument   Designated at FVTPL   Liability at amortised cost   Loans and receivables   Available-for-sale financial instruments   Non-financial instruments  
      Rm                  
      ASSETS                                
      Non-current assets                                
      Property, plant and equipment                8,117.8  
      Goodwill                2,589.4  
      Intangibles assets                409.7  
      Investments    145.5      139.3      1.3    4.9    
      – Investment in insurance cell-captive on extended warranties    56.2      56.2          
      – Investment in insurance cell-captive on premium contributions    83.0      83.0          
      – Investment in insurance cell-captive on credit life    0.1      0.1          
      – Trencor export partnership    1.3          1.3      
      – Other listed investments    4.9            4.9    
      Other financial assets    19.6          19.6      
      – Housing and staff loans    0.7          0.7      
      – Employee share trust loans    18.9          18.9      
      Deferred taxation                749.2  
      Current assets                            
      Inventories                11,934.5  
      Trade and other receivables    4,423.3    20.7    48.8      4,353.8      274.1  
      – Trade receivables    2,249.7          2,249.7      
      – Other accounts receivable and prepayments    2,104.1          2,104.1      274.1  
      – FEC asset    69.5    20.7    48.8          
      Taxation                50.8  
      Cash on hand and bank balances    2,004.9          2,004.9      
      Non-current assets classified as held for sale                11.5  
                                       
      Total assets    6,593.3    20.7    188.1      6,379.6    4.9    24,137.0  
                                       
      Non-current liabilities                                
      Non-current liabilities – interest-bearing borrowings    1,819.6        1,819.6        
      – Medium-term loans    600.0        600.0        
      – Medium-term bank loans    1,210.0        1,210.0        
      – Capitalised finance lease    9.6        9.6        
      Non-current liabilities – interest-free borrowings    2.1        2.1        1,033.4  
      – Loans to non-controlling interests    2.1        2.1        
      – Other                11.5  
      – Operating lease liability                1,021.9  
      Provisions                124.8  
      Deferred taxation                73.5  
      Current liabilities                              
      Trade and other payables    18,690.9    2.1    5.6    18,683.2        1,236.8  
      – Trade payables    16,320.4        16,320.4        
      – FEC liability    7.7    2.1    5.6          
      – Rebates and advertising to buying members    141.1        141.1        
      – Interest accrual    38.3        38.3        
      – Amounts due to Walmart    299.4        299.4        
      – Sundry payables and other accruals    1,884.0        1,884.0        1,236.8  
      Provisions and other                150.0  
      Other current liabilities    1,206.1        1,206.1        
      – Medium-term loans    469.0        469.0        
      – Medium-term bank loans    728.3        728.3        
      – Capitalised finance lease    8.8        8.8        
      Taxation                155.6  
      Bank overdrafts    446.4        446.4        
                                       
      Total liabilities    22,165.1    2.1    5.6    22,157.4        2,774.1  
                                       
                                       
                                       
      December 2014   Financial instrument   Cash flow – hedging instrument   Designated at FVTPL   Liability at amortised cost   Loans and receivables   Available-for-sale financial instruments   Non-financial instruments  
      Rm                  
      ASSETS                                
      Non-current assets                              
      Property, plant and equipment                7,239.2  
      Goodwill                2,542.9  
      Intangibles assets                415.8  
      Investments    135.3      125.2      1.7    8.4    
      – Investment in insurance cell-captive on extended warranties    56.1      56.1          
      – Investment in insurance cell-captive on premium contributions    69.0      69.0          
      – Investment in insurance cell-captive on credit life    0.1      0.1          
      – Trencor export partnership    1.7          1.7      
      – Other listed investments    8.4            8.4    
      Other financial assets    22.9          22.9      
      – Housing and staff loans    0.4          0.4      
      – Employee share trust loans    22.5          22.5      
      Deferred taxation                662.2  
                                       
      Current assets                              
      Other current financial assets    229.3          229.3      
      – Employee share trust loans    15.1          15.1      
      – Property loan    214.2          214.2      
      Inventories                    11,228.8  
      Trade and other receivables    4,024.5    13.7    29.9      3,980.9      263.8  
      – Trade receivables    2,107.1          2,107.1      
      – Other accounts receivable and prepayments    1,873.8          1,873.8      263.8  
      – FEC asset    43.6    13.7    29.9          
      Taxation                56.3  
      Cash on hand and bank balances    2,067.4          2,067.4      
      Non-current assets classified as held for sale                18.0  
                                       
      Total assets    6,479.4    13.7    155.1      6,302.2    8.4    22,427.0  
                                       
                                       
      Non-current liabilities                                
      Non-current liabilities – interest-bearing borrowings    2,133.9        2,133.9        
      – Medium-term loans    600.0        600.0        
      – Medium-term bank loans    1,521.7        1,521.7        
      – Capitalised finance lease    12.2        12.2        
      Non-current liabilities – interest-free borrowings    2.1        2.1        924.5  
      – Loans to non-controlling interests    2.1        2.1        
      – Operating lease liability                911.2  
      – Other                13.3  
      Provisions                115.0  
      Deferred taxation                61.3  
      Current liabilities                              
      Trade and other payables    17,148.9    2.2    4.5    17,142.2        1,174.6  
      – Trade payables    14,841.5        14,841.5        
      – FEC liability    6.7    2.2    4.5          
      – Rebates and advertising to buying members    129.0        129.0        
      – Shareholders for dividends    10.5        10.5        
      – Interest accrual    32.1        32.1        
      – Amounts due to Walmart    218.3        218.3        
      – Sundry payables and other accruals    1,910.8        1,910.8        1,174.6  
      Provisions and other                195.4  
      Other current liabilities    831.2        831.2        
      – Medium-term loans    254.5        254.5        
      – Medium-term bank loans    565.5        565.5        
      – Capitalised finance lease    11.2        11.2        
      Taxation                208.3  
      Bank overdrafts    584.0        584.0        
                                       
      Total liabilities    20,700.1    2.2    4.5    20,693.4        2,679.1  
                                       
                                       
      Financial risk management          
         
      The Group does not trade in financial instruments, but in the ordinary course of business operations, the Group is exposed to a variety of financial risks arising from the use of financial instruments. These risks include:  
      – market risk (comprising interest rate risk and currency risk);  
      – liquidity risk; and  
      – credit risk.  
      The Group has developed a comprehensive risk management process to facilitate, control and monitor these risks. This process includes formal documentation of policies, including limits, controls and reporting structures. The Executive Committee is responsible for risk management activities within the Group.  
                                       
      Market risk management          
                                       
      Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The market risks that the Group is primarily exposed to include interest rate risk and currency risk. Market risk is managed by identifying and quantifying risks on the basis of current and future expectations and ensuring that all trading occurs within defined parameters. This involves the review and implementation of methodologies to reduce risk exposure. The reporting on the state of the risk and risk practices to the Executive Committee of the Group is part of this process. There has been no change to the Group’s exposure to market risk or the manner in which it manages and measures the risk since the prior financial year.  
                                       
      Interest rate risk management          
                                       
      During the year, the surplus cash position of the Group remained fairly constant with that of the prior year. The size of the Group’s position, be it either surplus cash or borrowings, exposes it to interest rate risk. The interest-bearing loan funding requirements and the investment of surplus cash funds are managed by the Group through its own commercial bank facilities.  
                                       
      The carrying amount of the Group’s financial assets and liabilities at reporting date that are subject to interest rate risk are as follows :  
                                       
      December 2015             Subject to interest rate movement   Non-interest bearing   Total      
      Rm             Fixed   Floating          
      ASSETS                                
      Financial assets                      
      Investments      1.3    144.2    145.5      
      – Investment in insurance cell-captive on extended warranties        56.2    56.2      
      – Investment in insurance cell-captive on premium contributions        83.0    83.0      
      – Investment in insurance cell-captive on credit life        0.1    0.1      
      – Trencor export partnership      1.3      1.3      
      – Other listed investments        4.9    4.9      
      Other financial assets    0.7      18.9    19.6      
      – Housing and staff loans    0.7        0.7      
      – Employee share trust loans        18.9    18.9      
      Other current financial assets              
      – Employee share trust loans              
      – Property loan              
      Trade and other receivables      7.7    4,415.6    4,423.3      
      – Trade receivables        2,249.7    2,249.7      
      – Other accounts receivable and prepayments      7.7    2,096.4    2,104.1      
      – FEC asset        69.5    69.5      
      Cash on hand and bank balances      1,885.2    119.7    2,004.9      
      Total financial assets    0.7    1,894.2    4,698.4    6,593.3      
                                       
      Financial liabilities                      
      Non-current liabilities – interest-bearing borrowings    1,810.0    9.6      1,819.6      
      – Medium-term loans    600.0        600.0      
      – Medium-term bank loans    1,210.0        1,210.0      
      – Capitalised finance lease      9.6      9.6      
      Non-current liabilities – interest-free borrowings        2.1    2.1      
      – Loans to non-controlling interests        2.1    2.1      
      Trade and other payables        18,690.9    18,690.9      
      – Trade payables        16,320.4    16,320.4      
      – FEC liability        7.7    7.7      
      – Rebates and advertising to buying members        141.1    141.1      
      – Interest accrual        38.3    38.3      
      – Amounts due to Walmart        299.4    299.4      
      – Sundry payables and other accruals        1,884.0    1,884.0      
      Other current liabilities    728.3    477.8      1,206.1      
      – Medium-term loans      469.0      469.0      
      – Medium-term bank loans    728.3        728.3      
      – Capitalised finance lease      8.8      8.8      
      Bank overdrafts      446.4      446.4      
      Total financial liabilities    2,538.3    933.8    18,693.0    22,165.1      
                                       
                                       
                                       
      December 2014   Subject to interest rate movement   Non-interest bearing   Total      
      Rm   Fixed   Floating          
      ASSETS                      
      Financial assets                      
      Investments      1.7    133.6    135.3      
      – Investment in a trading and logistics structure        56.1    56.1      
      – Investment in insurance cell-captive on extended warranties        69.0    69.0      
      – Investment in insurance cell-captive on premium contributions        0.1    0.1      
      – Trencor export partnership      1.7      1.7      
      – Other listed investments        8.4    8.4      
      Other financial assets    0.4      22.5    22.9      
      – Housing and staff loans    0.4        0.4      
      – Employee share trust loans        22.5    22.5      
      Other current financial assets    214.2      15.1    229.3      
      – Employee share trust loans        15.1    15.1      
      – Property loan    214.2        214.2      
      Trade and other receivables      14.2    4,010.3    4,024.5      
      – Trade receivables        2,107.1    2,107.1      
      – Other accounts receivable and prepayments      14.2    1,859.6    1,873.8      
      – FEC asset        43.6    43.6      
      Cash on hand and bank balances    7.6    1,968.0    91.8    2,067.4      
                                       
      Total financial assets    222.2    1,983.9    4,273.3    6,479.4      
                                       
      Financial liabilities                      
      Non-current liabilities – interest-bearing borrowings    2,121.7    12.2      2,133.9      
      – Medium-term loans    600.0        600.0      
      – Medium-term bank loans    1,521.7        1,521.7      
      – Capitalised finance lease      12.2      12.2      
      Non-current liabilities – interest-free borrowings        2.1    2.1      
      – Loans to non-controlling interests        2.1    2.1      
      Trade and other payables        17,148.9    17,148.9      
      – Trade payables        14,841.5    14,841.5      
      – FEC liability        6.7    6.7      
      – Rebates and advertising to buying members        129.0    129.0      
      – Shareholders for dividends        10.5    10.5      
      – Interest accrual        32.1    32.1      
      – Amounts due to Walmart        218.3    218.3      
      – Sundry payables and other accruals        1,910.8    1,910.8      
      Other current liabilities    565.5    265.7      831.2      
      – Medium-term loans      254.5      254.5      
      – Medium-term bank loans    565.5        565.5      
      – Capitalised finance lease      11.2      11.2      
      Bank overdrafts      584.0      584.0      
                                       
      Total financial liabilities    2,687.2    861.9    17,151.0    20,700.1      
                                       
      Interest rate sensitivity          
                                       
      The Group is sensitive to the movements in the SA Prime interest rate. The rates of sensitivity represents management’s assessment of the possible change in interest rates. The average interest rate for the Group for the year was 7.82% (December 2014: 7.20%), and the variable interest paid was R250.0 million (December 2014: R201.6 million). If the SA Prime interest rate increased and decreased by 100 average basis points (December 2014: increased and decreased by 100 average basis points) at year end, the net finance costs for the year would have decreased and increased by R10.4 million respectively (December 2014: decreased and increased by R13.3 million respectively). Although the Group is exposed to the USD LIBOR rate, this exposure is not considered to be significant.  
                                       
      Currency risk management          
                                       
      All foreign-denominated trading liabilities are covered by forward exchange contracts. Foreign-denominated assets and other foreign-denominated liabilities are not covered by forward exchange contracts.  
      The carrying amount of the Group’s foreign currency denominated monetary assets at reporting date is as follows :  
                                       
      December 2015 South African Rand   USD   Euro   Pula   Metical   Cedi   Other1   Total  
      Rm                
      Investments  12.5          122.5    6.1    4.4    145.5  
      Trade and other receivables and other financial assets  15,468.0    51.3    0.9    244.7    81.5    5.3    (176.2)    15,675.5  
      Cash on hand and bank balances  1,335.3    53.3    0.3    284.8    121.6    33.7    175.9    2,004.9  
      Total  16,815.8    104.6    1.2    529.5    325.6    45.1    4.1    17,825.9  
                                       
      December 2014 South African Rand   USD   Euro   Other1   Total              
      Rm                      
      Investments  127.8        7.5    135.3              
      Trade receivables  4,006.4    43.4    0.2    203.8    4,253.8              
      Cash on hand and bank balances  1,378.2    95.6    18.6    575.1    2,067.5              
      Total  4,552.7    37.7    18.8    786.4    6,456.6              
                                       
      1Other’ comprise the balance of the currencies per table below.  
                 
      Foreign currency sensitivity          
                                       
      For further information regarding the forex movements for the year, refer to note 7.  
         
      The table below indicates the Group’s sensitivity at year end to movements in the relevant foreign currencies on monetary items, excluding forward exchange contracts. The rates of sensitivity are the rates used when reporting the currency risk to the Executive Committee of the Group and represents management’s assessment of the possible change in reporting foreign currency exchange rates. The rate sensitivity remained constant in the current financial year at 10% in light of the significant devaluation of the Rand in the current year. For each 10% increase, profit or loss is increased and the financial asset is increased, for each 10% decrease, profit or loss is decreased and the financial asset is decreased.  
                                       
            December 2015   December 2014      
                                       
            Spot rate   10% increase   10% decrease       10% increase   10% decrease      
      Currency         Rm   Rm   Spot rate   Rm   Rm      
      USD    15.2274    8.6    (8.6)    11.5995    1.8    (1.8)      
      Pound Sterling    22.5926    1.4    (1.4)    18.0449          
      Euro    16.7150    0.1    (0.1)    14.1944    0.2    (0.2)      
      Botswana Pula    1.3741    0.1    (0.1)    1.2157    1.1    (1.1)      
      Ghanaian New Cedi    3.9920    0.6    (0.6)    3.6107    1.6    (1.6)      
      Kenyan Shilling    0.1488    0.5    (0.5)    0.1281          
      Malawian Kwacha    0.0234    0.2    (0.2)    0.0249    1.9    (1.9)      
      Mozambican New Metical    0.4236    5.3    (5.3)    0.3458    2.0    (2.0)      
      Nigerian Naira    0.3145    2.6    (2.6)    0.0634    0.5    (0.5)      
      Tanzanian Shilling    0.0765        0.0068    0.1    (0.1)      
      Uganda Shilling    0.0071    1.1    (1.1)    0.0042    0.1    (0.1)      
      Zambian Kwacha    0.0045    0.9    (0.9)    0.1281    0.2    (0.2)      
                                       
                                       
      Forward foreign exchange contracts          
                                       
      Forward exchange contracts are entered into to manage exposure to fluctuations in foreign currency exchange rates on specific trading transactions. The Group’s policy is to enter into forward contracts for all committed foreign currency purchases to hedge the Group’s exposure to variability in cash flows. For more information refer to note 7. There are no other hedges in the Group.  
                                       
      December 2015             Foreign currency   Fair value adjustment   Average exchange rate          
      At year end, the open forward exchange contracts were as follows:   (millions)   Rm            
      USD              40.9    61.4    13.9          
      Sterling                  24.2          
      Euro              0.3    0.4    15.7          
      Total                  61.8              
                                       
      December 2014             Foreign currency   Fair value adjustment   Average exchange rate          
      At year end, the open forward exchange contracts were as follows:   (millions)   Rm            
      USD              68.9    36.7    11.3          
      Sterling              0.2      18.1          
      Euro              0.6    0.2    14.2          
      Total                  36.9              
                                       
      The fair value adjustment represents the balance at the end of the current financial year and is included in Trade and other receivables (FEC asset balance) and included in Trade and other payables (FEC liability balance). As the average duration is three months, these FEC balances would be derecognised and the resulting impact would be accounted for in cost of sales and in foreign exchange gains/(losses) in the Income Statement within the next financial year for both periods under review.  
                                       
      During the December 2015 financial year an amount of R3.2 million (December 2014: R1.0 million) (net of tax) relating to the FEC hedges was recognised in other comprehensive income. For more information on the movement in the hedging reserve refer to note 23.  
                                       
      Forward foreign exchange contracts sensitivity              
                                       
      The following table indicates the Group’s sensitivity of the outstanding forward exchange contracts at the reporting date to movements in the USD. The USD is the primary currency in which the Group has entered into forward foreign exchange contracts. The rates of sensitivity are the rates used when reporting the currency risk to the Executive Committee of the Group and represents management’s assessment of the possible change in foreign currency exchange rates. The Rand/USD year end rate was R15.23 (December 2014: R11.60).  
                                       
            December 2015   December 2014              
                                       
                                       
      December 2015     USD   USD   USD   USD              
      Rm     5% increase   5% decrease   5% increase   5% decrease              
      Profit/(loss)    21.5    (21.5)    12.3    (12.3)              
      Derivative financial assets/(liabilities)    26.1    (26.1)    13.8    (13.8)              
      Equity      4.6    (4.6)    1.5    (1.5)              
                                       
                                       
      Liquidity risk management          
                                       
      Liquidity risk is the risk that the Group will be unable to meet a financial commitment in any location or currency. This risk is minimised through the holding of cash balances and sufficient available borrowing facilities (refer to note 24). In addition, detailed cash flow forecasts are regularly prepared and reviewed so that the cash needs of the Group are managed according to its requirements.  
         
      The following table details the Group’s contractual maturity for its financial liabilities. The table has been compiled based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to repay the liability. The cash flows include both the principal and estimated interest payments.  
                                       
      December 2015             Repayable   Repayable   Total          
      Rm   within 1 year   1 – 5 years            
      Financial liabilities                                
      Non-current and current liabilities – interest-bearing borrowings    1,380.8    1,995.9    3,376.7          
      – Medium-term loans    504.4    658.5    1,162.9          
      – Medium-term bank loans    866.8    1,327.3    2,194.1          
      – Capitalised finance lease    9.6    10.1    19.7          
      Non-current liabilities – interest-free borrowings      2.1    2.1          
      – Loans to non-controlling interests      2.1    2.1          
      Trade and other payables    18,690.9      18,690.9          
      – Trade payables    16,320.4      16,320.4          
      – FEC liability    7.7      7.7          
      – Sundry payables and other accruals    2,362.8      2,362.8          
      Bank overdrafts    446.4      446.4          
      Total undiscounted cash flows of the Group’s financial liabilities    20,518.1    1,998.0    22,516.1          
      Less: Future finance charges            (351.0)          
      Total financial liabilities            22,165.1          
                                       
      Included in future finance charges is R1.4 million that relates to finance leases. Finance charges of R0.9 million are repayable in year 1 and R0.5 million in years 1 – 5, respectively.  
                                       
      December 2014   Repayable   Repayable   Total          
      Rm             within 1 year   1 – 5 years            
      Financial liabilities                      
      Non-current and current liabilities – interest-bearing borrowings    1,025.4    2,445.5    3,470.9          
      – Medium-term loans    299.3    703.2    1,002.5          
      – Medium-term bank loans    714.1    1,729.5    2,443.6          
      – Capitalised finance lease    12.0    12.8    24.8          
      Non-current liabilities – interest-free borrowings      2.1    2.1          
      – Loans to non-controlling interests      2.1    2.1          
      Trade and other payables    17,148.9      17,148.9          
      – Trade payables    14,841.5      14,841.5          
      – FEC liability    6.7      6.7          
      – Sundry payables and other accruals    2,300.7      2,300.7          
      Bank overdrafts    584.0      584.0          
      Total undiscounted cash flows of the Group’s financial liabilities    18,758.3    2,447.6    21,205.9          
      Less: Future finance charges            (505.8)          
      Total financial liabilities            20,700.1          
                                       
      Included in future finance charges is R5.6 million that relates to finance leases. Finance charges of R4.3 million are repayable in year 1 and R1.3 million in years 1 – 5, respectively.  
      The effect of discounting on the current medium-term loan amounts are deemed immaterial.  
      The average duration of the FEC’s are three months, so they would fall in the repayable within one year for both periods under review. The FEC’s are settled on a net basis.  
                                       
      Credit risk management          
                                       
      The carrying amount of the financial assets represents the Group’s maximum exposure to credit risk without taking into consideration any collateral provided. Other than R1.3 million (December 2014:R1.7 million) relating to the Trencor Partnership that is considered to be of medium credit risk, all other loans and receivables are considered to be of low credit risk for the current and prior financial year.  
         
      Potential areas of credit risk include trade receivables and short-term loans and cash investments. Credit risk arises from the risk that a counterparty may default or not meet its obligations timeously. Trade accounts receivable consist primarily of a large, widespread customer base. Group companies regularly monitor the financial position of their customers. Where considered appropriate, credit guarantee insurance is used. The granting of credit is controlled by application and account limits. Provision is made for both specific and general portfolio impairments, and at the year end management did not consider there to be any material credit risk exposure that was not already covered by credit guarantee insurance or portfolio impairment provisions. The carrying amounts of the financial assets above represent the Group’s maximum credit risk exposure. Additional information relating to trade and other receivables can be found in note 20.  
         
      At year end no loans and receivables were pledged as security. At year end, security with a fair value of R71.1 million (December 2014: R30.5 million) is held by the Group. During the current year the Group did not take possession of security it held over its loans and receivables.  
  • + 41. Segmental reporting
                             
    Operating segments                        
                             
    The Group is organised into four Divisions for operational and management purposes, being Massdiscounters, Masswarehouse, Massbuild and Masscash. Massmart reports its operating segment information on this basis. The principal offering for each Division is as follows:
    Massdiscounters – general merchandise discounter and food retailer
    Masswarehouse – warehouse club trading in food, general merchandise and liquor
    Massbuild – home improvement retailer and building materials supplier
    Masscash – food wholesaler, retailer and buying association
    No single customer represented more than 10% of any of one of the Divisions’ revenue in the current and prior financial year.
                             
    Rm   Total   Other   Massdiscounters   Masswarehouse   Massbuild   Masscash
                             
                             
    December 2015                        
                             
    Sales    84,731.8      19,514.1    23,675.9    12,010.6    29,531.2
    Operating profit before foreign exchange movements and interest    2,300.2    (39.8)    235.4    1,198.7    693.6    212.3
    Trading profit before interest and taxation    2,349.7      235.4    1,198.7    693.6    222.0
    Net foreign exchange loss    (149.8)    (78.1)    (65.4)      (3.4)    (2.9)
    Net finance (costs)/income    (475.3)    (292.6)    (49.5)    53.0    (100.7)    (85.5)
    Operating profit/(loss) before taxation    1,675.1    (410.5)    120.5    1,251.7    589.5    123.9
    Trading profit/(loss) before taxation    1,874.4    (292.6)    185.9    1,251.7    592.9    136.5
                             
    Inventory    11,934.5    22.1    4,064.7    3,095.7    1,865.3    2,886.7
    Total assets    30,730.3    (626.7)    8,234.5    8,314.0    5,122.1    9,686.4
    Non-current asset held for sale    11.5    11.5        
    Total liabilities    24,939.2    (4,608.9)    7,999.0    7,865.3    4,602.8    9,081.0
                             
    Net capital expenditure    1,649.6    186.8    527.4    234.4    351.6    349.4
    Depreciation and amortisation    946.2    62.0    336.0    169.5    184.8    193.9
    Impairment losses    25.7    16.0          9.7
    Non-cash items other than depreciation and impairment    316.6    101.7    133.0    39.7    6.6    35.6
                             
    Cash flow from operating activities    1,770.4    450.6    276.1    259.0    1,095.1    (310.4)
    Cash flow from investing activities    (1,645.6)    (183.2)    (527.2)    (234.4)    (351.6)    (349.2)
    Cash flow from financing activities    (25.5)    (60.9)    166.2    (71.5)    (712.0)    652.7
                             
    Inventory days    63.4      102.3    57.2    80.0    39.6
    Number of stores    403      161    19    102    121
    Trading area (m2)    1,550,719      533,078    195,794    449,133    372,714
    Trading area (m2) increase on December 2014
      0.7%     5.3%     2.9%   -7.0%
    Average trading area per store (m2)    3,848      3,311    10,305    4,403    3,080
    Distribution centre space (m2)    346,660      178,488    58,475    60,235    49,462
    Distribution centre space (m2) increase on December 2014   5.6%       14.0%   -2.4%   34.9%
                             
                             
    Rm   Total   Other   Massdiscounters   Masswarehouse   Massbuild   Masscash
                             
                             
    December 2014                      
    Sales    78,173.2      17,955.2    21,554.8    10,822.8    27,840.4
    Operating profit before foreign exchange movements and interest    2,015.9    (30.6)    180.7    1,044.3    537.6    283.9
    Trading profit before interest and taxation    2,061.7      180.7    1,044.3    537.6    299.1
    Net foreign exchange (loss)/ gain    (49.8)    (48.4)    (5.8)      2.5    1.9
    Net finance (costs)/income    (345.3)    (211.0)    (29.4)    44.4    (63.2)    (86.1)
    Operating profit before taxation    1,620.8    (290.0)    145.5    1,088.7    476.9    199.7
    Trading profit before taxation    1,716.4    (211.0)    151.3    1,088.7    474.4    213.0
                             
    Inventory    11,228.8    30.5    3,984.9    2,845.7    1,785.6    2,582.1
    Total assets    28,906.4    (325.6)    7,985.5    7,689.0    5,027.7    8,529.8
    Non-current asset held for sale    18.0    15.0        3.0  
    Total liabilities    23,379.2    (4,366.5)    7,820.9    7,312.1    4,730.6    7,882.0
                             
    Net capital expenditure    2,147.0    967.8    542.2    70.3    296.8    269.9
    Depreciation and amortisation    846.6    43.2    293.1    171.6    154.0    184.7
    Impairment losses    24.6    9.4          15.2
    Non-cash items other than depreciation and impairment    146.1    (16.2)    112.0    46.9    12.6    (9.2)
                             
    Cash flow from operating activities    745.6    (446.2)    473.4    (103.8)    707.4    114.8
    Cash flow from investing activities    (2,146.5)    (980.8)    (545.0)    (70.1)    (296.8)    (253.8)
    Cash flow from financing activities    1,349.7    1,163.0    112.9    161.8    (369.3)    281.3
                             
    Inventory days    64.4      107.6    57.1    84.6    37.1
    Number of stores    392      153    19    100    120
    Trading area (m2)    1,539,295      506,188    195,794    436,538    400,775
    Trading area (m2) increase on December 2013 (excluding re-measurements)   3.9%     6.5%     6.3%   0.3%
    Average trading area per store (m2)    3,927      3,308    10,305    4,365    3,340
    Distribution centre space (m2)    328,175      178,488    51,300    61,733    36,654
    Distribution centre space (m2) increase on December 2013   1.3%         0.0%   13.5%
                             
                             
    The other column includes consolidation entries.
    All intercompany transactions have been eliminated in the above results.
    Additional information can be found in ‘Our Customers’ and the ‘Chief Financial Officer’s Review’ in the Group’s Integrated Annual Report.
    Trading profit before taxation is earnings before corporate net interest, asset impairments, BEE transaction IFRS 2 charges and foreign exchange movements.
    Net capital expenditure is defined as capital expenditure less disposal proceeds.
     
    Geographic segments
     
    The Group’s four Divisions operate in two principal geographical areas – South Africa and the rest of Africa.
         
        December 2015   December 2014
        52 weeks   52 weeks
        Total   South Africa   Rest of Africa   Total   South Africa   Rest of Africa
                             
    Sales    84,731.8    77,579.2    7,152.6    78,173.2    71,822.4    6,350.8
    Segment assets (Total)    23,387.8    21,541.2    1,846.6    21,764.8    20,226.3    1,538.5
    Segment assets (Non-current)    11,128.4    10,118.7    1,009.7    10,197.9    9,576.5    621.4
    Net capital expenditure    1,649.6    1,366.1    283.5    2,147.0    1,936.6    210.4
                             
                             
    All intercompany transactions have been eliminated in the above results.
    Segment assets excludes financial instruments and deferred taxation and reflects the geographic location of the Group’s assets.
    Net capital expenditure is defined as capital expenditure less disposal proceeds.

     

  • + 42. Value Added Statement
                     
                     
        December 2015       December 2014    
        52 weeks       52 weeks    
        Rm   %   Rm   %
                     
    Sales    84,731.8        78,173.2    
    Cost of sales    (68,689.6)        (63,610.8)    
    Other revenue and interest received    158.0        187.3    
    Net costs of services and other operating expenses    (6,263.3)        (5,771.1)    
    Value added    9,936.9        8,978.6    
    Applied as follows :                
    To employees as salaries, wages and other benefits    6,784.3    68.3    6,109.0    68.0
    To Government as taxation (excluding VAT)    505.9    5.1    483.4    5.5
    To shareholders as dividends    914.1    9.2    914.0    10.2
    To lenders as interest    507.7    5.1    386.8    4.3
    Depreciation and amortisation    946.2    9.5    846.6    9.4
    Non-controlling interests    56.4    0.6    57.6    0.6
    CSI    23.7    0.2    15.3    0.2
    Net earnings retained    198.6    2.0    165.9    1.8
         9,936.9    100.0    8,978.6    100.0
                     

     

  • + 43. Events after the reporting date
           
           
    The Group concluded a Term Loan Facility Agreement with Standard Bank as lender in February 2016. In terms of the agreement Standard Bank advanced R2 billion to the Group on 26 February 2016. The agreement includes a R600m facility that will mature in three years and a R1.4 billion facility that will mature in five.
           
    A fire was reported at the Jumbo Cash & Carry store in Crown Mines, Johannesburg, on 25 February 2016. All night shift employees were safely evacuated, fully accounted for and no one was injured. In situations such as this the cause of the fire is investigated after the site has been declared to be safe. The investigation is typically conducted by teams from the Fire Department, South African Police Services and the insurers. The value of stock that is carried in the store is estimated, at this early stage, to be approximately R100 million. The store, assets and stock are fully insured.
           
    With the exception of the above, there were no significant subsequent events after year end.

     

  • + 44. Shareholder analysis
                   
    The following analysis of shareholders was extracted from the shareholders register:
                   
      Number of
    holders
      %   Number of
    shares
      %
                   
                   
    Shareholder spread              
    1 – 1,000 shares  3,509    82.7    671,904    0.3
    1,001 – 10,000 shares  521    12.3    1,644,550    0.8
    10,001 – 100,000 shares  130    3.1    4,311,634    2.0
    100,001 – 1,000,000 shares  59    1.4    19,244,746    8.9
    1,000,001 shares and over  23    0.5    191,263,500    88.0
       4,242    100.0    217,136,334    100.0
                   
    Public/non-public shareholders              
    Non-public shareholders:              
    Walmart subsidiary: Main Street 830 Proprietary Limited  1      113,859,293    52.4
    Directors and Group Executives of the Company  3    0.1    242,494    0.1
    Share trusts  1      575,563    0.3
    Public shareholders  4,237    99.9    102,458,984    47.2
       4,242    100.0    217,136,334    100.0
                   
      Number of holder   %   Number of shares   %
                   
    Distribution of shareholders              
    Walmart subsidiary: Main Street 830 Proprietary Limited  1      113,859,293    52.4
    Unit Trusts/Mutual Funds  91    2.2    51,401,292    23.7
    Pension Funds  57    1.3    23,539,015    10.8
    Other Managed Funds  46    1.1    7,252,920    3.3
    Sovereign Wealth  14    0.3    7,243,931    3.3
    Custodians  10    0.2    4,550,139    2.1
    Private Investors  11    0.3    1,910,514    0.9
    Hedge Fund  1      1,930,510    0.9
    Investment Trusts  3    0.1    1,185,192    0.5
    Insurance Companies  4    0.1    1,012,682    0.5
    Charities  3    0.1    776,622    0.4
    Exchange-Traded Fund Total  4    0.1    557,532    0.3
    University  1      144,925    0.1
    Local Authorities  1      30,166  
    Remainder  3,995    94.2    1,741,601    0.8
       4,242    100.0    217,136,334    100.0
                   
                   
    Custodians and managers holding 3% or more              
    The following custodians and managers held beneficially, directly or indirectly, equal to or in excess of 3% of the Company’s shares:              
    Walmart subsidiary: Main Street 830 Proprietary Limited          113,859,293    52.4
    Aberdeen Asset Management Group          45,503,632    21.0
    Public Investment Corporation          12,839,524    5.9
    Westwood Global Investments LLC          6,782,752    3.1