Integrated Annual Report
for the year ended December 2019
Shareholder information
Notice of Annual General Meeting
Form of Proxy
Definitions and formulas
Shareholders’ calendar
Company information
Downloads
Financial Statements
INTRODUCTION
Performance summary
About our intergrated report
Message from the Chairman
Q&A with our CEO
Our Board
Our Executive Committee
Creating value through good governance
OUR BUSINESS
Our business
Our footprint
Our business model
How we sustain the value we create
Our operating environment
Our stakeholder relationships
Responding to stakeholder issues
Managing our risks
OUR TURNAROUND PLAN
Our turnaround plan
Pillar 1: Restructure the Group operating model
Pillar 2: Portfolio optimisation
Pillar 3: Supply chain optimisation
Pillar 4: Cost reset
OUR 2019 PERFORMANCE
Chief Financial Officer’s review
Independent auditor’s report
Divisional reviews
Massdiscounters
Masswarehouse
Massbuild
Masscash
Financial statements
Five-year review
Responsible business
Empowering our people
ACCOUNTABILITY AND SHAREHOLDER INFORMATION
About our Board
Board and Committee attendance
Audit Committee report
Risk Committee report
Social and Ethics Committee report
Nominations Committee report
Remuneration report
Compliance and ethics
King IV application register
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Saving our customers money so they can live better
Integrated Annual Report
For the year ended of December 2019
Q&A
3.0% total sales growth in difficult environment
Q&A WITH MASSMART CEO, MITCH SLAPE
3.0
%
Sales
R93.7 billion
2018: R90.9 billion
45.1
%
EBITDA, before non-trading items
R1.8 billion
2018: R3.2 billion
79.3
%
Trading profit before interest and taxation
R0.4 billion
2018: R2.1 billion
182.9
%
Headline (loss)/earnings
(R0.7 billion)
2018: R0.9 billion
Our turnaround plan
We have devised a recovery plan to reinvigorate growth within our business.
Our plan focuses on four key pillars that will help us serve our customers better and improve our business performance.
Pillar one
Restructure the
Group operating model
Creating an organisational structure to optimise serving our customers while ensuring competitive market agility and efficiency.
Pillar two
Portfolio
optimisation
Ensuring the optimisation and relevance of our store portfolios and corresponding customer value proposition.
Pillar three
Supply chain
optimisation
Positioning our supply chain for long-term success.
Pillar four
Cost Reset
Resetting Massmart’s cost base.
2019 year in review
01
Introduction
Performance summary
About our intergrated report
Message from the Chairman
Q&A with our CEO
Our Board
Our Executive Committee
Creating value through good governance
02
Our business
Our business
Our footprint
Our business model
How we sustain the value we create
Our operating environment
Our stakeholder relationships
Responding to stakeholder issues
Managing our risks
03
Our turnaround plan
Our turnaround plan
Pillar 1: Restructure the Group operating model
Pillar 2: Portfolio optimisation
Pillar 3: Supply chain optimisation
Pillar 4: Cost reset
04
Our 2019 performance
Chief Financial Officer’s review
Independent auditor’s report
Divisional reviews
Massdiscounters
Masswarehouse
Massbuild
Masscash
Financial statements
Five-year Review
Responsible business
Empowering our people
05
Accountability and shareholder information
About our Board
Board and Committee attendance
Audit Committee report
Risk Committee report
Social and Ethics Committee report
Nominations Committee report
Remuneration report
Compliance and ethics
King IV application register