[PPT] - Massmart Reviewed Interim Results Presentation for the 26 weeks PowerPoint Presentation

SLIDE 1

Massmart Reviewed Interim Results Presentation

27 August 2020 for the 26 weeks ended 28 June 2020

SLIDE 2

Pr Presenting t today

2

Chief Executive Officer Chief Financial Officer

Mitchell Slape Mohammed Abdool-Samad

SLIDE 3

01 01 Executive summary 02 02 Financials and Covid-19 impact 03 03 Turnaround plan update 04 04 Outlook 05 05 Additional information

Agenda

3

SLIDE 4

Ex Executive s summary

4

Lost R4.6bn to Covid-19 restrictions Positive sales growth in Q1 and month of June Limited expense growth to 1.9% in the first half Leveraged expenses Q1 and in June Smart Spend: R1.9 billion in savings

ver next 3 years

Up 90bps benefitted from mix; Everyday Low Price initiatives Strengthened the balance sheet in spite of challenging conditions

Arres ested ed e exp xpens ense e gr growth Challeng enging ing s sales es en envir ironm nment ent Ac Accelerated tur urna naround und p plan Enh nhanc nced ed g gross mar margin Cash f flow/ deb ebt m mana nagem ement ent 1 2 3 4 5

SLIDE 5

Financials and Covid-19 impact

Mohammed Abdool-Samad, Group CFO

SLIDE 6

Fi Financial su summary – rep reported ed

6

Sa Sales

2019: R43.8 billion

i 9.7 .7%

R39.6bn

Gr Gross profit mar margin

2019: 19.2%

h 90b 90bps

20.1%

Includes IFRS 16

Tr Trading (loss)/profit be before interest t and ta tax

(excl. reorganisation, restructure & impairment)

2019: R318.9 million

(R266.6m)

i >1 >100. 00.0% SG SG&A g growth

2019: R8.2 billion

R8.3bn

h 1. 1.9%

*Restated

26 26-we week basis – in includin ing C Covid id-19 19 impact Ma Margin and d expense momentum de despite lockdo down wn do dominated d half year He Headl dline loss

2019: R0.8 billion*

R1.1bn

i 36. 36.2%

SLIDE 7

1. 1.4%

47

47.9%

16

16.1% 0.8% 0.8%

20.5%

20.5%

9.70%

9.70% 20.5% 20.5% 16 16.8% 23.2% 23.2% 21 21.9% 19 19.6% 20. 20.1% 1% 20.6% 20.6% 20.5% 20.5% 18 18.8% 20.6% 20.6% 17 17.8% 19 19.2% 1. 1.3%

0.6%

0.6% 1. 1.4%

0.4%

0.4% 0.2% 0.2% 0.7% 0.7% Q1 Q1 Ap April Ma May Ju June Q2 Q2 Total H1 H1

Sales growth Margin 2020 Margin 2019 Underlying SG&A growth

Str Strong fundamen enta tals over ersha hadowed ed by y Covid-19 19

7

Excludes IFRS 16

Lockdown L5 Lockdown L4

Q1: Economic

challenges from 2019 continue

Still leveraged

sales in Q1

Poor economy

exaggerated by lockdown in Q2

Significant progress

in margin and expense management throughout H2

Turnaround

accelerated

Lockdown L3

A A tal ale of f two quar arters

SLIDE 8

He Head adwinds as as a r a result o t of C Covid-19 19 impacting on ma margin in and nd trading ing profit it

8

Includes IFRS 16

Re Restrictions impacting ~56% of categories drove lost sales of R4.6 billion

Rm Rm

Estimated lost margin @19.6% 897 Increased direct costs 62 Relief/benefits received (230) Indirect cost impact 14 Estimated impact on trading profit* 74 743

*Impact of trading profit estimated based on lost sales at the margin achieved in the same period in 2019, net of costs incurred and benefits received.

Additional costs incurred

relating to operating regulations

Rent relief of R97 million
Temporary employee

cost relief of R133 million R15,322m R10,747m

Es Estimated ed lost st sa sales

R4.6bn

Impact of lockdown on sales SALES April/May 2019 SALES April/May 2020

SLIDE 9

a

Sa Sales es by y geo eogra raphy y and ca categ egory

Tr Trading restrictions resulted in estimated lost sales of R4.6 billion

9

Gr Group

Food & Liquor

7.2% decline

Durables Comp sales

12.6% decline

R3 R39.6bn bn

9.7%

decline

SA SA s sales 90.1%

i 10.6% Food & Liquor

59%

8.1% decline

10.5%

decline

Durables

41%

13.9% decline

Comp sales

Re Rest of Africa sales 9. 9.9% 9%

i 0.1% Food & Liquor

52%

0.6% growth

Durables

48%

0.9% decline

Comp sales

Constant currency

1.5%

decline

3.8%

decline i9.7%

SLIDE 10

Fo Focused expense management

10

Employment costs

Includes IFRS 16

Other operating expenses

Rental: landlord negotiations
Utilities
Marketing
Employment costs: deferred

management salary increase and continued recruitment freeze

Si Sign gnificant Cost R Reset s savings to b be r realised H2 Employment Costs 2.2%

decline

Attrition and

recruitment freezes

TERS relief during

lockdown: associates paid on time and in full

Occupancy Costs 6.4%

decline

Landlord support:

rental relief received during lockdown

Reduced utility costs:

lockdown impact and improved monitoring and energy efficiencies

Lockdown ‘variable savings and costs’

Travel
Conferences and training
Reduced marketing spend
Increased Covid-19 related

costs: deep cleaning and sanitising costs Out Outlook:

Validated

R1.9bn

in SG&A savings, to be delivered

ver 3 years

Total G Group expenses g grew a w at 1.9% .9%, c , comparable expenses a at 1 1.2% .2% H1

SLIDE 11

Pe Performance – Ma Massmart Retail

11

Lost sales ~R0.9bn

Covid-19 impact

Margin improvement:

promotional contribution

reduced. Focus on EDLP
SAP S/4 HANA ERP

implemented: 1 June after 4-year journey

Grew Game online sales

by 100%

Negative H1 expense

growth (-1.0%)

Successful rental

re-negotiations: benefits in H2 and beyond

Lost sales ~R1.0bn

Covid-19 impact

Strong margin: increased

retail performance, construction sector still under pressure

Strong vendor

partnership: vendors paid on time and in full Builders deliveries prioritised by suppliers

Grew online sales by

160%

Negative H1 expense

growth (-3.1%)

Lost sales ~R0.4bn

Covid-19 impact

Reduced trading:

categories traded, hours & store

closures. Liquor

participation ~10%

Margin improvement:

category mix and trading discipline

Negative H1 expense

growth (-2.9%)

Includes IFRS 16 * Includes HO allocations

R8.3bn

Sa Sales es i11.8%

25.5%

GP GP h220bps

(R416.3m)

PBI PBIT* i55.5%

2019: (R267.8m)

R5.8bn

Sa Sales es i13.3%

33.3%

GP GP h220bps

R214.3m

PBI PBIT* i32.7%

2019: R318.4m

R3.9bn

Sa Sales es i15.6%

17.3%

GP GP h110bps

(R314.5m)

PBI PBIT* i>100%

2019: (R91.9m)

St Strengthened c col

llabor
ration

ion a acros

ss t

the b banners

SLIDE 12

Pe Performance – Ma Massmart Wh Whol

lesale

12

Combined Wholesale lost sales ~R2.3bn

Covid-19 impact

Enhanced margin and improved price gap
Single Wholesale synergies: serving

customers, reduced transport costs and better deals with vendors

Makro grew online sales by 84%,

partnership with OneCart

Reopening Liquor (June): disciplined and

professional planning and execution

Minimal H1 expense growth (2.0%)

Includes IFRS 16 * Includes HO allocations

R12.0bn

Sa Sales es i10.4%

18.2%

GP GP h70bps

R237.0m

PBI PBIT* i43.4%

2019: R418.4m

R9.5bn

Sa Sales es i2.1%

10.9%

GP GP h80bps

R12.9m

PBI PBIT* h >100%

2019: (R56.7m)

Wh Wholesale collaborations increasing g market share

SLIDE 13

Ac Accelerating omnichannel

Ad Adapted well to Covid-19 19 induced demand

13

Internally owned last mile

delivery

Strategic partnership:
ptimisation and Group

collaboration

On Online s sales

2.1% sales participation (2019: 0.8%)

h95%

Online traffic

35.3%

increase

Click-and-collect

85.7%

increase

SLIDE 14

Wo Working capital

Increased stock levels due

to lockdown, particularly Level 5 in April

Reduced Game aged stock

by 10%

Strong vendor relationships

resulted in high in-stocks

Suppliers paid on time and

in full during lockdown: enhanced relationships

Renegotiated extended

payment terms with suppliers on the back of partnership approach

Inventory days

63 63

Hospitality and

construction industry debtors under pressure: increased provisions

Focus on collections

yielding results

h6 days h2 days i2 days

Creditor days

58 58

Debtor days

8

2020 2019

R10.9bn R11.1bn R2.0bn R2.4bn R11.5bn R12.6bn

2020 2019 2020 2019 14

SLIDE 15

Ca Cash flo flow w and nd de debt ma mana nage geme ment nt

15

Rm Rm JUN 2020 JUN 2019 MOVEMENT

EBITDA, before non-trading items

1,253.5 1,867.3 (613.8)

Net debt*

7,177 6,960 217

Total equity

3,635.2 5,280.3 (1,645.1)

Gearing ratio*

0.70 0.61 0.09

Free cash flow – (outflow)

(3,745.4) (3,978.8) 233.4

Foreign exchange loss

112.3 157.1 (44.8)

Net finance costs

916.6 909.6 7.0

Cash interest to financiers*

347 350 (3)

Cash f flow i w initiatives

Focused expense management and

disciplined capex deferrals

Paid suppliers on time and in full:

Enhanced relationships ensuring no disruption in supply

Continued to pay salaries and benefits on

time and in full during lockdown period

Rental relief (April) & TERS benefit
Renegotiation of vendor payment terms to

preserve cash while taking care of most vulnerable smaller suppliers

Deferral of management salary increases

* Excludes lease liabilities

St Stron

ng

g cash h flow despite i EBI EBITDA

SLIDE 16

Stren Strengthen thened ed balance ce shee heet t positi tion in in spit ite of lo lockdo down wn

16

16,000
15,000
14,000
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000

Wk 10 Wk 11 Wk 12 Wk 13 Wk 14 Wk 15 Wk 16 Wk 17 Wk 18 Wk 19 Wk 20 Wk 21 Wk 22 Wk 23 Wk 24 Wk 25 Wk 26 Wk 27 Wk 28 Wk 29 Wk 30 Mar Apr May Jun Jul R'm Net Debt 2020 Net Debt 2019 Average Annual Net Debt Facilities Excludes IFRS 16

Liquor & tobacco sales prohibited Non-essentials, General Merch., Home Improvement, Liquor & tobacco sales prohibited ~56% categories Liquor sales allowed under restricted trading conditions

Lockdown L5 Lockdown L4 Lockdown L3

Builders reopens to general public Liquor ban reintroduced 3 March 2020 First confirmed Covid-19 case in SA Tobacco sales prohibited

Re Returning to 2019 levels

RUSH BUYING

Secured R4 billion

Walmart loan

Support from local and

international banks

All suppliers and

associates paid on time and in full

Debt returning

to 2019 levels: strong margin and expense management. Level 2 driving economic activity

SLIDE 17

Ca Capital l expendi nditure

17

Ca Capex responsibl bly managed to preserve cash flow and impact t of lockdown

n
n con
nstruction
n industry driving som
me deferrals

1.7% 1.7% 1.5% 1.6% 0.9%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5%

Jun 2016 Jun 2017 Jun 2018 Jun 2019 Jun 2020

Years

Businesses acquired Investment to expand operations Investment to maintain operations Total capex as a % of sales

R747.5m R751.5m R632.9m R695.7m R354.1m

Capex as a % of sales Capital expenditure

SLIDE 18

Hi Highl hlights hts

18

Includes IFRS 16

Strong cash flow despite lockdown Safe and responsible trading during lockdown Margin enhancement Expense control and longer-term cost reset

SLIDE 19

Turnaround plan update

Mitch Slape, Group CEO

SLIDE 20

Tu Turnaround recap

Tu Turnaround activities are arranged in six work streams

Group Operating Model Game Reset Wholesale Integration Supply Chain Optimisation Portfolio Optimisation Cost Reset

1 3 4 5 2 6

20

Reorganise banners and support services into a low c cost st, , cu custome

mer-fi

first operating structure Employ Back to Basics focus to return to pr profitabili lity Integrate wholesale assets into a wholesa sale a and B B2B p powerhouse se Deliver integrated Supply Chain for re reliable, c , cost st e effective

n
n-sh

shelf a availability Position business for gr growth through disciplined portfolio management Fundamentally re revise se c cost st b base se at all levels

SG&A upside

as % of sales

80 - 140bps 15 - 35bps 25 - 50bps

Portfolio Optimisation, Game reset & Wholesale RTM

Margin upside

80 - 175bps 25 - 50bps

The Opportunity

SLIDE 21

Reorganised into two Bus

Busines iness U Unit nits

Initiated Cent

entres es o

f E

Excel ellenc ence e (COEs)

Ou

Outso tsourced applications support to Wa Walmart Ind India ia D Devel elopment ent C Cent entre

Completed SAP S

S/4 H HANA E ERP im implem ement entatio ion n

Exped

edit iting ing e ever eryday low c cost execution

Constituted a sing

ingle E e Exec ecut utiv ive C e Commit ittee ee

Presenting to suppliers as a sing

ingle b e bus usines iness and streng engthened ened p pric ice e co competitiveness

Piloted integration of Makro and Builders onto the Shiel

ield B2 B2B P B Platform

Increased vend

endor o

n-bo

boarding into network

Delivered phase 1

e 1 o

f t

tem emper eratur ure-cont ntrolled ed ne network

Red

educ uced ed G Game a e aged ed/obsolete s e stock by 10%

Closed

ed D Dio ionW nWir ired ed

Finalising sale o

e of 8 8 M Masscash S Stores es, while working through details of the remaining 3 stores

Validated a R1.9

.9bn S n SG&A &A s saving ings o

pportunit

unity

Aggressively ex

executing initiatives to unlock savings

Tu Turnaround delivery highlights

Tu Turnaround delivery has progressed well, and is on track to deliver the identified value

Group Operating Model Game Reset Wholesale Integration Supply Chain Optimisation Portfolio Optimisation Cost Reset

1 3 4 5 2 6

21

Contributing to a 50bps GP margin uplift Achieved 50bps of the 1% COGS reduction opportunity Unlocking 54bps (as % of sales) Confirmed the 80- 140bps opportunity Delivering R160m PBIT improvement Leading to a 220bps GP margin uplift

SLIDE 22

Gr Group o

perat

ating m model hi highl hlight hts

We We have confirmed the 80-14 140bps oppor

pportunity, underpi

pinned by initiatives set to

deliver value from
m Q1

Q1 2021

22

Integrated four Divisions into

two B Busi siness U ss Units s

Reorganised Divisional IT

IT, reporting into a Group Chief In Inform rmation O Officer r (in role for 6 months)

Reorganised Supply C

Chain and appointed a seasoned Walmart sp specialist st a as s Chief S Supply C Chain O Officer

Initiated reorganisation of HR

HR, , Real E Est state and In Indire rect Spend M Manage gement

Initiated rationalisation of

Group Financial V Value-Ad Added Se Services and Ethics a s and Co Compl pliance functions

Initiated conso

solidation o

f

tra rading a g and su support se services s te teams into fewer physical

ffice locations

Pr Previ view Ac Achievements H1 H2

SLIDE 23

Gam Game r reset hi highl hlight hts

We We are encouraged with the responsiveness to better retail discipline, but more work is required on the Game Tu Turnaround journey

23

Enhanced m

margi rgin perform rmance: : Reduced promotional participation by 20% and extended promotional periods; increased margin by 220bps

Im

Improved c cost st p perform rmance: : Reduced SG&A costs by 45bps for 2020, including R29.0m rental annual run rate saving; reduced marketing spend by 34.3% and initiated store S189 workforce rationalisation

Upgra

graded t technology gy: : Went live with SAP S/4 HANA ERP

Execute Fre

resh sh e exit in 51 stores and continue Ap Apparel ro roll-ou

ut,

while continuing to strengthen

wnersh

ship c catego gori ries s

Conclude store S189 wo

workforce ra rationalisa sation c consu sultation

Dri

rive S SAP AP b benefits, s, specifically in demand forecasting, assortment and store gridding

ptimisation

Ac Achievements H1 Pr Previ view H2

SLIDE 24

We We have validated our R1.9bn savings target and im implem emen ented ed in init itia iativ ives es t to d del eliv iver er 5 54bps a annual s savin ings in in F FY20, , ag agai ainst the 3-ye year 80-17 175bps opportunity

Co Cost reset high ghli ligh ghts

24

Validated R1.9

.9bn i in S SG&A A sa savings gs, to be delivered over s3 years

In

Initiated a and gu guara ranteed sa savings gs amounting to approximately 54bps annual savings in 2020, including approximately R160m in annual rental savings

Completed wave 1

1 d data d dri riven supplier negotiations across 7 categories in partnership with Walmart, towards delivering COGS savings

Complete implementation of

centra ralise sed In Indire rect S Spend Manage gement c capability

Deliver initiatives to unlock

additional FY20 a and H1 H1 F FY21 SG&A sa A savings gs

Roll o
ut w

waves 2 s 2 a and 3 3 d data d dri riven supplier negotiations across remaining categories toward increasing H1 COGs savings

Pr Prog

gress

H1 Pr Previ view H2

SLIDE 25

The The p pat ath f h forwar ard

We We have a clear plan to reach key milestones across the workstreams, leading to value delivery

2020 2021 2022

Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2

Gr Group Opera rating M g Model Po Portfolio Op Optim imis isatio ion Game R Rese set Who Wholesale In Integra gration Supply C Chain Op Optim imis isatio ion Cost st R Rese set

Finalise the COE opportunity assessment Finalise sale of 8 Masscash stores Finalise details of remaining 3 Initiate COEs Communicate geographic and business portfolio strategy Conclude S189 workforce rationalisation Fresh Exit and Apparel Reintroduction Ongoing assortment strategy evolution Store of the Future Prototype Commence Wholesale Integration System roll-out Year 1 SG&A savings Wave 1 COGs Savings Waves 2 and 3 COGs Savings Year 2 SG&A savings Year 3 SG&A savings New DC 2 new DC campuses complete Deliver phase 1 of replenishment plan Deliver FY20 vendor onboarding plan Unlock scale and synergy benefits (over 2-year period) Implementing against integration plans

25

1 3 4 5 2 6

SLIDE 26

We We are operationally focused

…in supplier negotiations, property portfolio management, improve pr profes essional re retail ef effec ectiven enes ess …through removing wastage, reducing SG&A & COGS and driving advantages of scale toward investing in mo more e competitive p pricing …through lower promotional mix, more everyday low pricing and better m margins Ways o

f

wo working

1

Everyda day l low w cost o

bsession

ED EDLP fo focus

2 3

26

We We are further leveraging Walmart best practice across the business

SLIDE 27

Gr Growth be h beyond t turnar around

Benchmark for delivery of su superior investor r returns s Merchandi dise c category am ambi bitions In Investor r return am ambi bitions Digital a and e d ecommerce am ambi bitions Leverage hi high h

pportunity n

new gr growth categories Specify high g growth a and return B B2B 2B & & r retail

n
nline ecosystem

27

Business p portfolio am ambi bitions Dispassionately assess trading banner relevance, , competitiveness a ss and growth p potential Geographic m market am ambi bitions Critically review r rest

f A

Africa g growth a and return p prosp spects s

SLIDE 28

Outlook

Mitch, Group CEO

SLIDE 29

Ou Outlo look

29

Uncertain operating environment & negative

economic impacts – Covid-19

Currently able to trade all categories, future

trading restrictions uncertain

Confident in our ability to navigate through this
Accelerate turnaround plan
Expect SG&A and GP margin performance from

H1 to continue into H2

Any reference to future financial performance included in this document has not been reviewed or reported on by the Group’s external auditors. The auditor’s report does not necessarily report on all 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 issuer’s registered office.

SLIDE 30

Q&A

SLIDE 31

Additional information

Condensed Consolidated Income Statement Tax rate reconciliation Cash flow statement Capex per category Store portfolio Number of shares

SLIDE 32 Rm 26 weeks June 2020 (Reviewed) 26 weeks June 2019 (Reviewed) Period % change 52 weeks December 2019 (Audited)

Revenue 39,707.0 43,909.4 (9.6) 93,843.1 Sales 39,599.2 43,832.4 (9.7) 93,660.0 Cost of sales (31,627.4) (35,403.5) 10.7 (75,946.8) Gross profit 7,971.8 8,428.9 (5.4) 17,713.2 Other income 107.8 76.6 40.7 179.7 Depreciation and amortisation (1,520.1) (1,548.4) 1.8 (3,067.1) Employment costs (3,881.7) (3,967.4) 2.2 (8,188.0) Occupancy costs (603.0) (644.6) 6.5 (1,365.8) Other operating costs (2,341.4) (2,026.2) (15.6) (4,160.8) Trading (loss)/profit before interest and taxation (266.6) 318.9 (183.6) 1,111.2 Reorganisation and restructure cost (47.4) – (100.0) (33.1) Impairment of assets (55.5) (46.9) (18.3) (229.5) Insurance proceeds on items in PP&E – 0.4 (100.0) 3.4 Operating (loss)/profit before foreign exchange movements and interest (369.5) 272.4 (235.6) 852.0 Foreign exchange loss (note 4) (112.3) (157.1) 28.5 (143.0) Operating (loss)/profit before interest (481.8) 115.3 (517.9) 709.0

Finance costs

(928.2) (921.9) (0.7) (1,860.4)

Finance income

11.6 12.3 (5.7) 61.3 Net finance costs (916.6) (909.6) (0.8) (1,799.1) Loss before taxation (1,398.4) (794.3) (76.1) (1,090.1) Taxation (note 12) 231.6 (38.1) 707.9 (206.3) Loss for the period (1,166.8) (832.4) (40.2) (1,296.4) Loss attributable to:

Owners of the parent

(1,161.1) (836.1) (38.9) (1,307.5)

Non-controlling interests

(5.7) 3.7 (254.1) 11.1 Loss for the period (1,166.8) (832.4) (40.2) (1,296.4) Basic EPS (cents) (534.2) (382.8) (39.6) (600.6) Diluted basic EPS (cents) (534.2) (378.3) (41.2) (594.9)

Ex Extract from

m Revie

iewed Co Consolidated Results ts for th the pe period

d ended 28 Ju

June 2020

32

Co Conde ndens nsed d co consolidated ed in income me st statement

SLIDE 33

Ta Tax rate reconciliation

33

% % Tax rate reconciliation JU JUN 2020 (RE REVI VIEW EWED) JU JUN 2019 (RE REVIEWED)

Standard tax rate

28.0 28.0

Disallowed expenses

(4.1) (0.3)

Assessed loss not utilised

(7.1) (28.7)

Other

(0.2) (3.8)

Group tax rate

16.6 (4.8)

Tax expense on profit

making entities

Limited recognition of

certain deferred tax assets

Includes IFRS 16

SLIDE 34

Ca Cash flo flow w stateme ment nt

34

RM RM JU JUN 2020 (RE REVIEWED) JU JUN 2019 (RE REVIEWED)

Operating cash before working capital movements 1,927.0 1,869.9 Working capital movements (4,645.5) (4,370.1) Cash generated in operations (2,718.5) (2,500.2) Net interest and tax paid (915.7) (1,159.8) Net investment to maintain operations (111.2) (318.8) Free cash flow (3,745.4) (3,978.8) Dividends paid (4.0) (129.7) Investment to expand operations and other net investing activities (230.2) (354.5) Cash outflow before financing activities (3,979.6) (4,463.0)

SLIDE 35

Ca Capex per catego gory

To Total capex 0.9% of total sales (2019: 1.6%)

35

RM JUN 2020 (REVIEWED) JUN 2019 (REVIEWED) Percentage Change

Land and buildings/leasehold improvements 37.8 68.4 (44.7) Vehicles 0.5 0.4 25.0 Fixtures, fittings, plant and equipment 55.8 72.3 (22.8) IT investment 148.8 235.8 (36.9) Investment to expand operations 242.9 376.9 (35.6) Land and buildings/leasehold improvements 33.3 56.2 (40.7) Vehicles 2.3 33.9 (93.2) Fixtures, fittings, plant and equipment 30.8 156.9 (80.4) IT investment 44.8 71.8 (37.6) Investment to maintain operations 111.2 318.8 (65.1) Total 354.1 695.7 (49.1) 20.0% 0.8% 24.5% 54.7%

Land & buildings/leasehold improvements Vehicles Fixtures, fittings, plant & equipment IT investment

Capital investment

SLIDE 36

St Store re portf tfolio

36

420 420

To Total

Down from 443 in Dec 2019

23

23

To Total

Net closed

Ga Game Di DionWired Bu Builders Ca Cambridge and Rh Rhino Ma Makro Cash & & C Carry

150 150 11 117 64 64 22 22 67 67

150 in Dec 2019 Down from 23 in Dec 2019 Down from 118 in Dec 2019 Up from 63 in Dec 2019 22 in Dec 2019 67 in Dec 2019

Di DionWired Bu Builders Su Superstore Ca Cambridge

23

23

1

+1 +1

in South Africa in South Africa in South Africa

SLIDE 37

Nu Number of shares

37

‘000

At Dec 2019 219,138.8 Shares issued – At Jun 2020 219,138.8 Weighted-average at Jun 2020 (net of treasury shares) 217,361.4 Diluted weighted average at Jun 2020 220,143.5