DEFINITIONS AND FORMULAS

Employment costs
Includes the IFRS 2 Share-based Payment expense.

Other operating costs
Includes the foreign exchange gains and losses.

Walmart costs
Includes professional fees, integration costs, expatriate employment costs, share-based payments, travel, consulting costs and other direct expenses relating to the Walmart transaction.

Net finance costs
Interest received less interest paid.

EBITDA
Earnings before interest, taxation, depreciation, amortisation and asset impairments.

EBITDAR
Earnings before interest, taxation, depreciation, amortisation, asset impairments and occupancy costs.

Trading profit before interest and taxation
Earnings before interest, taxation, asset impairments, the BEE IFRS 2 charge, foreign exchange movements, loss on disposal of business, assets classified as held for sale and Walmart related costs.

Comparable sales
Sales figures quoted for stores that have traded in excess of 12 months.

FTE (full-time equivalents)
Includes all permanent employees and the permanent equivalent of temporary employees and contracted workers.

Trading space (m2)
Trading space excludes parking, yard, warehouse space, office space and receiving areas.

Dividends/distribution
Distribution to shareholders.

Sales per store (R000)
Sales
Number of stores

Sales for Shield, CellShack, Saverite, Kawena and Kangela are excluded as they do not have stores.

Sales per FTE (R000)
Sales
FTE’s

Sales per trading m2 (R000)
Sales
Trading m2

Sales for Shield, CellShack, Saverite, Kawena and Kangela are excluded as they do not have stores.

Net asset turn
Sales
Net assets

The Group defines net assets as capital reserves and interest-bearing LT liabilities.

  Net cash to total equity (%)
Cash and cash equivalents, net of borrowings
Total equity at the end of the year

Gross margin (%)
Gross profit
Sales

Operating margin (%)
Operating profit
Sales

Trading profit before interest and taxation margin (%)
Trading profit before interest and taxation
Sales

EBITDA margin (%)
EBITDA
Sales

Effective tax rate (%)
Taxation
Profit before tax

Note 9 in the Group Financial Statements holds further information.

Return on average shareholders’ equity (%)
Headline earnings
Average of opening and closing equity attributable to equity holders of the parent

Return on capital employed (%)
Operating profit before asset impairments
Average of opening and closing capital employed balances

The Group defines capital employed as capital and reserves and interest-bearing LT liabilities.

Return on invested capital (%)
Adjusted operating profit
Average invested capital

Adjusted operating profit includes finance income and adds back depreciation, amortisation and occupancy costs

Average invested capital is average total assets of continuing operations plus average accumulated depreciation and amortisation less average accounts payable less average accrued liabilities plus occupancy costs x8.

Debt: Equity (%)
Debt
Capital and reserves

Debt comprises non-current interest-bearing liabilities.

Cash earnings cover
Operating cash flow per share
Headline earnings per share
  Current ratio
Current assets
Current liabilities

Quick ratio
Current assets excluding inventory
Current liabilities

Inventory days
Inventory
Total cost of sales

Inventory turn
Total cost of sales
Inventory

Payable days
Trade payables
Total cost of sales

Asset turn
Sales
Total assets

Total liabilities to total equity
Current and non-current liabilities
Total equity

Headline earnings per share
Headline earnings
Weighted average number of shares in issue

Diluted headline earnings per share
Headline earnings
Diluted weighted average number of shares in issue

Attributable earnings per share
Earnings attributable to the equity holders of the parent
Weighted average number of shares in issue

Cash generated from operations before working capital movements per share
Cash generated from operations before working capital movements
Weighted average number of shares in issue

Operating cash flow per share
Net cash flow from operations
Weighted average number of shares in issue

Net cash flow from operations is after working capital movements, and excludes exceptional items and dividends paid.

Net asset value
Capital and reserves
Total number of shares in issue

Dividend cover
Headline earnings per share
Interim and final dividend per share