Notes

1. These condensed financial statements have been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), Schedule 4 of the Companies Act and the AC 500 standards as issued by the Accounting Practices Board or its successor. The financial statements contain the information required by IAS 34
Interim Financial Reporting, using accounting policies that have been consistently applied to prior periods, except for IFRS 3 Business Combinations, IFRS 8 Operating Segments, IAS 1 Presentation of Financial Statements, IAS 23 Borrowing Costs and IAS 27 Consolidated and Separate Financial Statements which were implemented during the year in accordance with the transitional provisions. The implementation of these standards required no prior year restatement.
   
2. During the year under review, the only shares bought in the market were by the Share Trust where 1.2 million shares were bought at an average price of R114.44 totalling R137.2 million. During the prior year, the total share buyback (including shares bought in the market by the Share Trust) was 1.6 million shares at an average price of R78.76 totalling R126.0 million.
   
3. The impairment of assets in the current year relates to the impairment of computer software in Builders Warehouse due to an IT upgrade and the impairment of fixed assets in Game due to a fire in the Benoni store. The impairment of assets in the prior year relates to the impairment of computer software in Shield due to an IT upgrade.
   
4. Security costs relating to properties in Masscash have been reallocated from ‘Other operating costs’ to ‘Occupancy costs’ in June 2009 (R34.9 million), in line with the Group’s accounting policy.
   
5. The Massmart BEE transaction, which came into operation in October 2006, gave rise to an IFRS 2 Share-based Payment charge of R69.7 million (2009: R66.9 million). The ‘A’ and ‘B’ preference shares have been issued to the Thuthukani Trust and the Black Scarce Skills Trust respectively.
   
6. The ‘A’ preference shareholders dividend amount of R46.5 million (2009: R38.0 million) represents the 2009 final cash dividend of 100.5 cents and the 2010 interim cash dividend of 252.0 cents paid to all Thuthukani participants. In the prior year, the Thuthukani dividend was equivalent to 75% of the ordinary dividend, and for the current year it is equivalent to 100%.
   
7. The profit on assets classified as held for sale in the prior year relates to the cash sale of the Massdiscounters’ retail debtors’ book effective from 30 June 2008, immediately after closing the 2008 financial year.
   
8. Other non-current liabilities and provisions include the lease-smoothing liability of R422.8 million (2009: R463.6 million).
   
9. The disposal of subsidiary in the current year relates to the sale of the cell phone contract business in CellShack (Masscash). The disposal in the prior year relates to the sale of the Jabulani Cash and Carry store (Masscash).
   
10. The net asset value of the businesses acquired during the year was R188.9 million (2009: R34.8 million) on the date of acquisition.
   
11. In the prior year the June 2009 operating lease commitments figure was incorrectly disclosed as R9,959.6 million.
   
12. Related party transactions include private aircraft, used from time to time, in the normal course of business by Massmart and its divisions and hired from competitively selected charter companies, two of which operate aircraft indirectly beneficially owned by Mr MJ Lamberti.
   
13. Due to Christmas trading, Massmart’s earnings are weighted towards the six months to December.
   
14. 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 the JSE Listings Requirements and ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity.