Scope and boundary

This report aims to provide a concise assessment of Massmart’s strategy and business model, risks and opportunities, performance and governance over the 52 weeks ended December 2018.

This report is primarily intended to address the information requirements of long-term investors (our equity shareholders and prospective investors). We also present information relevant to the way we create value for other key stakeholders, including customers, employees, suppliers, government and civil society.

In assessing the risks, opportunities and outcomes that materially impact the Group’s ability to create value for its stakeholders, the boundary has been extended beyond the financial reporting boundary to include the material interests attributable to/associated with our key stakeholders.


This report provides information on all those matters that we believe could substantively affect Massmart’s ability to create value. It provides information that we believe is of material interest to current and prospective investors, and to any other stakeholder who wants to make an informed assessment of Massmart’s ability to create value over the short (one year), medium (two to three years) and long term (three to five years).

To appreciate Massmart’s ability to create value, it is important to read our value creation story which is structured to show the relationship between Massmart’s strategy, business model, operating context, and material risks and opportunities. Making an informed assessment of how we have created value requires an appreciation of our strategy, our material matters and our governance practices.

Reporting frameworks

Our integrated reporting process, as well as the contents of this report, is guided by the principles and requirements of the International Integrated Reporting Council’s (IIRC’s) International <IR> Framework and where applicable the International Financial Reporting Standards (IFRS), the Global Reporting Initiative Standards, the King Code on Corporate Governance 2016 (King IV), the JSE Listings Requirements and the Companies Act No 71 of 2008, as amended.

Forward-looking statements

This report may contain forward-looking statements which may relate to future performance and prospects. While these statements represent our judgements and future expectations, a number of known and unknown risks, uncertainties and other important factors may cause actual results to differ materially from our expectations. These include factors that could adversely affect our business and financial performance.

The Group is not under any obligation to update or alter any forward-looking statements publicly, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein, as they have not been reviewed or reported on by the Group’s external auditors.

Combined assurance

Massmart has adopted a combined assurance framework to ensure a coordinated approach across all assurance activities provided by management, internal and external assurance providers, as well as the Board and the relevant sub-Committees’ oversights. The combined assurance model incorporates and optimises all assurance services and functions so that, taken as a whole, they enable an effective control environment; support the integrity of information used for internal decision making by management and the Board; and support the integrity of the Group’s external reports.

Massmart has obtained assurance on the data in the Integrated Annual Report from the following sources:

  • Group and Company Annual Financial Statements were audited by Ernst & Young Inc.
  • Emissions data was assured externally by GCX Africa
  • Massmart’s Broad-Based Black Economic Empowerment (BBBEE) scorecard was verified by Honeycomb BEE Ratings Proprietary Limited
  • Key compliance, Corporate Social Investment (CSI) and human capital performance indicators were assured by Massmart Audit Services (MAS)

Board approval

Massmart’s Board of Directors acknowledges its responsibility to ensure the integrity of the Integrated Annual Report. Together with management, and reflecting on Massmart’s operating context, strategy and value creation model, we believe that this Integrated Annual Report addresses all matters that have, or could have, a material impact on Massmart’s ability to create value. We have applied our collective minds to the preparation and presentation of the information in this report and believe that this report has been prepared in accordance with the IIRC’s International <IR> Framework.

Kuseni Dlamini

Chris Seabrooke

Guy Hayward

Johannes van Lierop

Nolulamo (‘Lulu’) Gwagwa

Olufunke Ighodaro

Phumzile Langeni

Lindiwe Mthimunye


Susan Muigai

Enrique Ostalé

JP Suarez