1. These reviewed interim condensed consolidated results have been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), its interpretations issued by the IFRS Interpretations Committee, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, presentation and disclosure as required by International Accounting Standard (IAS) 34 Interim Financial Reporting, the JSE Limited Listings Requirements and the requirements of the Companies Act 71 of 2008 of South Africa. The accounting policies and methods of computation used in the preparation of the provisional reviewed condensed consolidated results are in terms of IFRS and are consistent in all material respects with those applied in the most recent annual financial statements, as none of the amendments coming into effect in the current financial period have had an impact on the financial reporting of the Group.
  1. In the current year, the majority of the impairment of assets of R50.9 million and the insurance compensation income of R92.4 million are as a result of the Jumbo Crown Mines’ store fire that occurred within the Masscash Division. Inventories in the store, of R93.1 million, were written off and insurance proceeds to the same value were recognised in the ‘Cost of Sales’ line. In the prior period, the impairment of assets was as a result of store closures
  1. The majority of Massmart’s realised and unrealised foreign exchange losses of R125.2 million (June 2015: R106.7 million) arose as a result of its Rand-denominated intercompany loans to its African subsidiaries, as well as in settling its Rand- denominated foreign creditors. Despite Massmart’s increased investment into the rest of Africa; the weakening of the average basket of other African currencies against the Rand; and the volatility of the Rand against the US Dollar, Massmart managed to contain its foreign exchange exposure.
  1. Massmart secured a new R2.0 billion term facility in the current period, maturing in two parts: R1.4 billion in five years and R600 million in three years.
  1. There were no significant subsequent events after the current period end.
  1. Massmart and its divisions enter into certain transactions with related parties in the normal course of business. Details of these are, and will be, disclosed in Massmart’s Integrated Annual Report. At June 2016, the Supplier Development Fund had a closing balance of R105.3 million (June 2015: R140.8 million). A net amount of R26.6 million remains unpaid to Walmart (June 2015: R248.5 million), which has been accounted for in ‘trade, and other receivables’ and ‘trade, other payables and provisions’. The Group has a medium-term loan with Walmart that is repayable in April 2018, on which interest of 7.46% is paid quarterly. The loan of R600.0 million is accounted for under interest-bearing non-current liabilities. As a 52.4% shareholder, Wal-Mart Stores, Inc. will also be receiving a dividend based on their number of shares held.
  1. These reviewed interim condensed consolidated results have been reviewed by independent external auditors, Ernst & Young Inc. and their unmodified review report is available for inspection at the Company’s registered office. The review was performed in accordance with ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. Any reference to future financial performance included in this announcement has not been reviewed and reported on by the Group’s external auditors. The auditor’s report does not necessarily report on all of the information contained in this announcement/financial results. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor’s engagement they should obtain a copy of the auditor’s report together with the accompanying financial information from the Group’s registered office. The preparation of the Group’s reviewed interim condensed consolidated financial statements was supervised by the Chief Financial Officer, Johannes van Lierop, Bachelor of Business Economics, RA (Amsterdam).