2.1 – 2.8

Massmart Holdings Limited is a managed portfolio of four divisions, each focused on high-volume, low-margin, low-cost distribution of mainly branded consumer goods for cash, through 333 stores in South Africa and 13 countries in sub-Saharan Africa. The Group operates stores in the following countries :

• Botswana
• Ghana
• Malawi
• Mauritius
• Mozambique
• Namibia
• Nigeria
• Tanzania
• Uganda
• Zambia
• Lesotho
• Namibia
• Swaziland

Massmart’s headquarters are based in Johannesburg, South Africa and the Group achieved sales of R52,926.7m with headline earnings of R1,252.7m.  The Group operates stores under the brands of Game, DionWired, Makro, Builders Warehouse, Builders Express, Builders Trade Depot, CBW, Jumbo and Shield servicing customers in the Living Standards Measure (LSM) of between 2 and 10.  Product categories include general merchandise, food and liquor.

Massmart employs over 30,649 people across its operations, 37.3% of whom are unionised with total market capitalisation as of 30 June 2011 of R28.3 billion, up from R24.6 billion last year.

In total, Massmart has over 6,109 shareholders in South Africa and abroad (down from 7,670 last year) ranging from major institutions to individuals. Further information on our shares and shareholder information can be viewed here.

Massmart’s Company registration number: 1940/014066/06 (incorporated in
South Africa)
JSE share code: MSM
ISIN code: ZAE000029534

2.9

List the significant changes during the reporting period regarding size, structure or ownership.

Material changes for the reporting period include Walmart procuring a 51% controlling share in Massmart as of 20 June 2011.

Acquisitions

In comparison with previous years, acquisition activity was minimal with six stores acquired: an ex-Mica store in Johannesburg North that was converted to a Builders Express; four stores now forming part of CBW; and one store now forming part of the Cambridge brand.

Disposals
The only business disposal during the  2011 financial year was the sale of the two Makro stores in Zimbabwe. The agreement to sell these stores was signed in November 2010 and was finalised in late February 2011.

2.10

What awards were received in the reporting period?

• Massmart achieved the highest score for a retailer (75.9) in the 2011 FM Top Empowerment Companies Survey. From a transformation perspective, Massmart achieved the highest Employment Equity score in the retail industry and the seventh highest score of the 100 listed companies who participated in the survey.

• This year Massmart placed fourth out of the top one hundred companies listed on the JSE in the annual Ernst & Young Excellence in Corporate Reporting survey 2011.
• Massmart received a Gold certificate from the Carbon Disclosure Project for the quality of its carbon emissions reporting