OUR INVESTMENT PROPOSITION

Massmart is a South African retail and wholesale distributor, with
321 stores in South Africa and 27 stores in sub-Saharan Africa.


STRATEGIC AND STRUCTURAL CLARITY

  • Through four focused Divisions, each a leader in its target market and business model
  • Where additional value is created through inter-Divisional collaboration
  • Behaviour is aligned through shortand long-term incentives
  • While adhering strictly to organic and acquisitive growth criteria

MANAGEMENT DEPTH, QUALITY AND DIVERSITY

  • The 46 Group and Divisional Executives hold 86 qualifications of which 65 are degrees, are an average age of 46 years, and 22% are African, Coloured or Indian

LOW RISK

  • Earnings underpinned by high cash generation
  • Limited financial leverage
  • Conservative through-the-cycle store opening plans

DIVERSIFICATION

  • Merchandise – Massmart is the second largest distributor of consumer goods in Africa, and is the leading retailer of general merchandise, liquor, home improvement and building supplies, and the leading food wholesaler
  • Formats – trading through a variety of formats
  • Customers – serving all mass-market consumers
  • Geography – operating in twelve sub-Saharan African countries

GROWTH

  • Continuously improving the productivity of capital, space and labour
  • Strengthening Supply Chain activities
  • Upweighting Group private label efforts
  • Complementing store growth through targeted acquisitions and greenfield opportunities
  • Expansion into Food Retail through Cambridge Foods, Game Foodco and Makro Fresh

GOOD GOVERNANCE

  • Board composition – three executive and seven non-executive directors
  • Recognised record of good disclosure
  • Compliant with King III Report and the JSE SRII
  • Member of the Ethics Institute of Southern Africa