About this report

Regulatory introduction

We are pleased to present our Integrated Annual Report for 2013. In this document our aim is to provide a review of the financial, social and environmental performance indicators and results for Pick n Pay Holdings Limited RF ("Pick n Pay Holdings Limited") and Pick n Pay Stores Limited and all their subsidiaries and associate (the Group), as well as the opportunities and related risks faced by the Group and how these underpin our strategic objectives. We believe this will provide all our stakeholders with improved insight into our business and an increased understanding of how we create value and how we are ensuring that our value creation is sustainable in the long term.

We remain committed to achieving the highest standards of global best practice in reporting and, as such, continue on our journey to implement those standards as far as possible in the Group. We have expanded our disclosures in 2013 and will continue to engage with all stakeholders and improve year-on-year.

Scope of the Report

This report covers the financial performance, operational highlights and strategic objectives of Pick n Pay Holdings Limited and Pick n Pay Stores Limited and all their subsidiaries and associate (the Group).

Pick n Pay Holdings Limited is an investment holding company listed on JSE Limited (JSE), with a controlling shareholding in JSE listed Pick n Pay Stores Limited. The latter is an investment holding company whose subsidiaries and associate operate in the retail sector on the African continent.

Sustainability elements covered in this report are specific to our Pick n Pay branded business unit. It is our intention to expand these disclosures in the future to all business units of the Group in South Africa in order to provide a comprehensive view of the social and environmental impact of the Group as a whole.

The report covers the 2013 annual financial period and has been compiled and presented in line with the requirements and principles of the following:

		The King Report on Governance for South Africa, and the King Code of Governance Principles (King III);
		The International Integrated Reporting Committee's prototype of the international Integrated Reporting (IR) framework;
		The Global Reporting Initiative’s G3.1 guidelines on reporting of non-financial information (GRI G3.1);
		The Companies Act 71 of 2008, as amended;
		The JSE Listings Requirements; and
		International Financial Reporting Standards (IFRS).

There are a number of improvements in our report, which resulted in some changes to the structure and the presentation of information. This has not materially affected the consistency of our reporting, and no previously reported significant information has been excluded from the report.

See note 25 to note 27 of the annual financial statements for improved segmental reporting in line with our operational structure. There have been some changes in the executive management structure as detailed in the Chairman’s report.

There have been no restatements of financial information in respect of prior periods, however, in considering year-on-year comparability we draw your attention to the following:

During the financial period under review the Group has adopted a 52-week financial reporting calendar for all future annual financial periods. This change will integrate financial reporting with operational structures and will improve comparative reporting to both internal and external stakeholders. As a result the 2013 annual financial period ended on 3 March 2013 compared to 29 February 2012 in the comparative period. Refer to note 29 for the estimated impact on the annual financial statements.

Forward looking information

This Integrated Annual Report contains certain forward looking statements as relates to the financial performance and position of the Group. All forward looking statements are solely based on the views and considerations of the directors. These statements involve risk and uncertainty as they relate to events and depend on circumstances that may occur in the future. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, global and national economic and market conditions, competitive conditions and regulatory factors. These forward looking statements have not been reviewed or reported on by the Group's external auditors.

External assurance

The Board, assisted by the audit committee, is ultimately responsible for overseeing the integrity of the Integrated Report. This was achieved through setting up the appropriate teams and structures to undertake the reporting process and performing a thorough review of the report.

The annual financial statements in the Integrated Annual Report have been prepared under the supervision of the Chief Finance Officer, Bakar Jakoet, CA(SA).

External assurance obtained in the current period is limited to the external audit opinion on the Group annual financial statements. We are currently working with a qualified, independent third party to assist us with developing and implementing a comprehensive combined assurance approach, to ensure the integrity of all data contained within the report.