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), the AC 500 standards as issued by the Accounting Practices Board or its successor, the information as required by IAS 34 Interim Financial Reporting, the JSE Listing Requirements and the requirements of the South African Companies Act 71 of 2008, using accounting policies that have been consistently applied to prior years.
  2. During the current year, the only Massmart shares acquired in the market were by the Massmart Employee Share Trusts where 1.2 million shares (0.6% of average shares in issue) were bought at an average price of R166.28 totalling R206.7 million. During the prior year, the Massmart Employee Share Trusts acquired 2.1 million shares (1.0% of average shares in issue) at an average price of R131.60 totalling R273.9 million.
  3. The impairment of assets in the current and prior year relates to the impairment of certain acquired goodwill in Masscash.
  4. The Massmart BEE transaction, which came into operation in October 2006, gave rise to an IFRS 2 Share-based Payment charge of R21.7 million (2011: R64.7 million, R22.8 million of which arose from the accelerated IFRS 2 Share-based Payment charge as a result of the Walmart Transaction and is included in the R70.1 million in note 5 below). The ‘A’ and ‘B’ preference shares were issued to the Thuthukani Trust and the Black Scarce Skills Trust respectively.
  5. Walmart transaction, integration and related costs comprise professional fees, expatriate costs, share-based payments and other direct expenses relating to the Walmart transaction.
  6. The preference shareholders’ dividend amount of R6.1 million (2011: R38.4 million) represents the 2011 final cash dividend of 134 cents (2010: 134 cents) and the 2012 interim cash dividend of 252 cents (2011: 252 cents) paid to all Thuthukani beneficiaries. The Thuthukani dividend was equivalent to 100% of the ordinary dividend for the current and prior year.
  7. Other non-current liabilities and provisions include the lease smoothing liability of R342.8 million (2011: R414.3 million).
  8. The net asset value of the businesses acquired during the year was R44.9 million (2011: R46.0 million) on the date of acquisition.
  9. Included in the 2011 year-end current assets and current liabilities in the Statement of Financial Position were two amounts of R1,093.6 million each. These amounts represent the net cash proceeds held in the three Massmart Employee Share Trusts, and the corresponding liability
    to the beneficiaries, as a result of the Walmart Transaction. The cash was distributed to beneficiaries shortly after 26 June 2011. The Massmart Employee Share Trusts are consolidated with the Group results.
  10. Massmart and its Divisions enter into certain transactions with related parties in the normal course of business. Details of these are, and will be, disclosed in Massmart’s Integrated Annual Reports.
  11. These results have been reviewed by independent external auditors, Deloitte & Touche, and their unmodified review report 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. Any reference to future financial performance included in this announcement has not been reviewed or reported on by the Group’s external auditors. The preparation of the Group’s condensed consolidated reviewed results was supervised by the Financial Director, Ilan Zwarenstein, BCom, BAcc, CA(SA).