Chairman's statement

We have reviewed the recommendations of King III on corporate governance. A large number of these recommendations have already been implemented. In the year ahead we will further inbed the new provisions of the code.

I thus embark upon my chairmanship with every confidence that Pick n Pay will continue to deliver to its shareholders, customers, suppliers and South African society, the standards of financial and social performance that have characterised the Group for more than four decades. South Africa remains an exciting and stimulating place in which to do business; its economic fundamentals are securely in place and Government continues to create an environment in which business is able to flourish and play its part in building a stable and prosperous nation.

As a family-controlled business, Pick n Pay will continue to provide the highest standards of governance and integrity, upon which this business was built. We value the input of our strong majority independent Board which works consistently towards creating the long-term results for which the Group has been renowned. We are confident of being able to continue the growth performance of the past.

I thank my father, Raymond Ackerman, for the strong and successful business he has built and wish him and my mother, Wendy, a wonderful and fulfilling time ahead.

I also thank Nick Badminton and his entire team for the tireless work they have put into this past difficult year. My thanks also go to the Boards of directors for their support. We extend a warm welcome to Richard van Rensburg who joined the Board in June 2009 and to Suzanne Ackerman-Berman and Jonathan Ackerman who joined the Board in March 2010, after the retirement from the Board of Raymond and Wendy Ackerman.

In light of sustainable business practices and with a view to reducing our paper usage, when permitted by the Companies Act, we intend to only produce a summarised version of the annual report in hard copy. This, together with a full version, will be published on our website.

At the end of June 2010, Aubrey Zelinsky, our MD of Franklins, will be retiring. We thank him for the many important roles he has played over the 40 years of dedicated service to the Group and wish him all the very best on his retirement.

We look forward to a more positive 2011 financial year.