Notes

1. These condensed financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, using accounting policies that are in line with IFRS and consistently applied to prior periods.
2. The total share buyback (including shares bought in the market by the Share Trust) for the year was 1,6 million shares (2008: 3,3 million) at an average price of R78,76 (2008: R83,10) totalling R126,0 million (2008: R271,8 million).
3. The impairment of assets in the current year relates to computer software in Shield. The impairment of assets in the prior year related to computer software and trademarks in Shield and Corporate.
4. The Massmart staff BEE transaction, which came into operation in October 2006, gave rise to an IFRS 2 Share-based Payment charge of R66,9 million (2008: R67,1 million). The ‘A’ and ‘B’ preference shares have been issued to the Thuthukani Trust and the Black Scarce Skills Trust, respectively.
5. The preference shareholders dividend amount of R38,0 million represents the final cash dividend of 81,5 cents and an interim cash dividend of 189,0 cents paid to all Thuthukani participants. In year three (2009), the Thuthukani dividend is equivalent to 75% of the ordinary dividend, and in year four (2010) it will be equivalent to 100%.
6. The assets classified as held for sale in the prior year relate to the cash sale of the Massdiscounters’ retail debtors’ book effective from 30 June 2008, immediately after closing the 2008 financial year.
7. Other non-current liabilities and provisions include the lease smoothing liability of R463,6 million (2008: R467,4 million)
8. Trading results for December 2008 have been restated to exclude foreign exchange movements:
    Trading Trading
  Rm PBIT PBT
  Massdiscounters 479,7 507,9
  Masswarehouse 399,6 439,1
  Massbuild 139,3 161,9
  Masscash 262,5 283,1
    1 281,1 1 392,0
   
9. The net asset value of the businesses acquired during the year was R34,8 million.
10. Related party transactions include certain properties used by Masscash that are leased from CCW Property Holdings in which Robin Wright has a shareholding. Robin Wright is a director and former owner of CBW. From time to time, in the normal course of business, Massmart and its divisions make use of private aircraft hired from competitively selected charter companies, two of which operate aircraft indirectly beneficially owned by Mr MJ Lamberti.
11. The pro forma financial effects, for which the directors of Massmart are responsible, are provided for illustrative purposes only. These show the effect of the additional week of trading in the prior year on the financial information of Massmart. This allows a like-on-like comparison of the 52-week periods.

Because of its nature, the pro forma financial effects may not fairly present the Group’s financial position, changes in equity, results of operations or cash flows.

The pro forma financial effects have been prepared using accounting policies that comply with International Financial Reporting Standards. The accounting policies are consistent with those applied in the previous financial year.

The pro forma financial effects have been compiled from the financial information for the 53 weeks ended June 2008.

12. Due to Christmas trading, Massmart’s earnings are weighted towards the six months to December.
13. These results have been reviewed by independent external auditors, Deloitte & Touche, and their unmodified review opinion is available for inspection at the registered office. The review was performed in accordance with ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity.