Distribution and dividend policy

Massmart’s previous dividend policy was to declare and pay an interim and final cash dividend representing a 1.70 times dividend cover. In light of the new South African Dividend Tax introduced with effect from 1 April 2012 (“Dividend Tax”), the Group’s dividend cover has been adjusted to reflect the benefit to the Company of no longer paying the Secondary Tax on Companies (“STC”) on the net dividend. Consequently, Massmart’s new dividend policy is to declare and pay an interim and final cash dividend representing a 1.55 times dividend cover unless circumstances dictate otherwise. There were no STC credits available for use as part of this declaration. The number of shares in issue at the date of this declaration is 216,146,751.

Notice is hereby given that a gross final cash dividend of 146.00 cents per share in respect of the period ended 24 June 2012 has been declared. The dividend will be subject to Dividend Tax. The dividend has been declared out of income reserves. The dividend will be subject to the local dividend tax rate of 15% which will result in a net dividend to those shareholders who are not exempt from paying dividend tax of 124.10 cents per share. Massmart’s tax reference number is 9900/196/71/9.

The salient dates relating to the payment of the dividend are as follows:

Last day to trade cum dividend on the JSE: Friday, 7 September 2012
First trading day ex dividend on the JSE: Monday, 10 September 2012
Record date: Friday, 14 September 2012
Payment date: Monday, 17 September 2012

Share certificates may not be dematerialised or rematerialised between Monday, 10 September 2012 and Friday, 14 September 2012, both days inclusive.

Massmart shareholders who hold Massmart ordinary shares in certificated form (“certificated shareholders”) should note that dividends will be paid by cheque and by means of an electronic funds transfer (“EFT”) method. Where the dividend payable to a particular certificated shareholder is less than R100, the dividend will be paid by EFT only to such certificated shareholders. Certificated shareholders who do not have access to any EFT facilities are advised to contact the Company’s transfer secretaries, Computershare Investor Services at Ground Floor, 70 Marshall Street, Johannesburg 2001, PO Box 61051, Marshalltown 2107, (011) 370 5000, 086 110 09818, in order to make the necessary arrangements to take delivery of the proceeds of their dividend. Massmart shareholders who hold Massmart ordinary shares in dematerialised form will have their accounts held at their CSDP or broker credited electronically with the proceeds of their dividend.

A Thuthukani gross final cash dividend equivalent to 100% of the Massmart ordinary dividend per share (146.00 cents) will be paid to the Massmart Thuthukani Empowerment Trust on Monday,
17 September 2012.

On behalf of the Board

Grant Pattison
Chief Executive Officer

21 August 2012

Ilan Zwarenstein
Financial Director