2020/03/30, 17:23:00
Johannesburg Stock Exchange - SENS NEWS DELAYED
Update on Covid-19 and the impact on the Massmart Group

Massmart Holdings Limited
(Incorporated in the Republic of South Africa)
Company registration No. 1940/014066/06
ISIN: ZAE 000152617
("Massmart" or the "Company" or “the Group”)


Massmart supports the measures that the South African government has implemented to contain the
Covid-19 virus.

We have, in line with the regulations and subsequent amendments published in the Government
Gazettes registered the following Massmart formats with the Department of a Trade and Industry to
enable trading activity during the lockdown; Makro, Wholesale Cash & Carry Stores, Shield Buying
Group, Game and Cambridge Food.

These stores will trade in basic and essential goods in alignment with lockdown regulations as they
pertain to essential retail activity. We have implemented various initiatives to ensure customer and
associate safety whilst also taking steps to optimize supply of basic and essential goods to support
trading in these formats during the lockdown. Similarly, our online platforms will process and fulfil
customer orders of basic and essential product. Builders and Game are processing the online sale of
durable goods for delivery once the lockdown has been lifted

Our Builders formats, our non-essential product distribution network, and our home and regional offices
(with the exception of essential services required to maintain business continuity) will be closed during
the lockdown. Almost all home and regional office associates are working remotely. This protocol has
been thoroughly stress tested and is being closely managed in terms of clearly defined work from home

The closure of South Africa's borders to neighbouring countries has caused a degree of disruption to
our supply chain to stores outside South Africa, that account for approximately 10% of Group sales.
These stores have relatively higher levels of safety stock that are likely to meet immediate term supply
needs. Thereafter we will be reliant on support from existing local suppliers in the affected markets.

While the effects of the COVID-19 virus on our business are continually being reassessed, the full
impact of the 21-day nationwide lockdown announced on 23 March 2020 remains unknown. The high
level of uncertainty, due to the unpredictable outcomes of this disease, complicates the estimation of
the financial effects of the outbreak and as a result it could materially impact the results of the Group
negatively and the assumptions applied in our assessment of provisions and impairment
considerations. With the support of our majority shareholder, Walmart, we have concluded constructive
discussions with our funders and are satisfied that we have sufficient funding in place during the
lockdown period.

Top leadership focus has now turned to post-lockdown recovery planning. We are fortunate that our
cost containment initiative, presented at the Investor Strategy Briefing on 30 January 2020 is at an
advanced stage and is well poised to deliver savings. The project team will continue work on this
initiative during the lockdown.
The lockdown has also presented opportunity to deploy selected Builder's merchandise specialists to
assist with the review and reinvigoration of the Game merchandise assortment which will be beneficial
to our efforts to reset the Game format.

30 March 2020

JP Morgan Equities South Africa (Pty) Ltd

Date: 30-03-2020 05:23:00
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