Notes to the Group annual financial statements

for the period ended 3 March 2013
26.   Operating segments  
  Operating segments are identified based on financial information regularly reviewed by the Chief Operating Decision Maker (CODM) of the Group for performance assessments and resource allocations. The Group annually performs a detailed review of the executives, or group of executives, that could be considered the appropriate and relevant CODM of the Group. During the period the CODM of the Group was reviewed and was changed from the Pick n Pay Stores Limited Board to the Executive Committee, as detailed here. The operating segments and the related comparatives have been restated.  
  The Group has 3 operating segments, as described below, with no individual customer accounting for more than 10% of turnover.  
  South Africa Division – operates in various formats under the Pick n Pay and Boxer brands in South Africa. For a detailed list of brands refer to the structure here.  
  Africa Division – responsible for the Group’s emerging expansion into the rest of Africa. The division operates in Namibia, Lesotho, Swaziland, Mozambique, Mauritius, Botswana, Zimbabwe and Zambia.  
  Discontinued operation (Australia) – Franklins, our retail operation retailing food and general merchandise in New South Wales, Australia, was sold on 30 September 2011 and is disclosed as a discontinued operation in the comparatives.  
  Performance is measured based on the segment profit before tax, as management believes that such information is most relevant in evaluating the results of the segments against each other and other entities that operate within the retail industry.  
   
  Pick n Pay Stores Group   South  
Africa  
Rm  		 Africa  
Rm  		 Total  
continuing  
operations  
Rm  		 Discon-  
tinued  
operation  
Australia  
Rm  		 Total  
operations  
Rm  
  2013            
  Total revenue   57 776.6   2 672.9   60 449.5   —   60 449.5  
  External revenue   57 776.6   1 881.9   59 658.5   —   59 658.5  
  Direct deliveries*   —   695.4   695.4     695.4  
  Inter-segment revenue   —   95.6   95.6   —   95.6  
  External turnover   56 694.0   2 577.3   59 271.3   —   59 271.3  
  Profit before tax   716.2   92.7   808.9   —   808.9  
  Other information            
  Statement of comprehensive income            
  Interest income   40.0   2.8   42.8   —   42.8  
  Interest expense   131.3   —   131.3   —   131.3  
  Depreciation and amortisation   881.4   14.1   895.5   —   895.5  
  Share of associates’ income   —   23.4   23.4   —   23.4  
  Statement of financial position            
  Total assets   12 504.3   516.8   13 021.1   —   13 021.1  
  Total liabilities   10 150.7   454.4   10 605.1   —   10 605.1  
  2012            
  Total revenue   54 284.1   2 009.9   56 294.0   3 389.3   59 683.3  
  External revenue   54 284.1   1 350.3   55 634.4   3 389.3   59 023.7  
  Direct deliveries*   —   604.7   604.7   —   604.7  
  Inter-segment revenue   —   54.9   54.9   —   54.9  
  External turnover   53 375.5   1 955.0   55 330.5   3 389.2   58 719.7  
  Profit/(loss) before tax   1 120.3   49.7   1 170.0   (87.2)   1 082.8  
  Other information            
  Statement of comprehensive income            
  Interest income   33.0   6.5   39.5   0.2   39.7  
  Interest expense   135.1   —   135.1   6.0   141.1  
  Depreciation and amortisation   800.1   8.0   808.1   —   808.1  
  Share of associate’s loss   —   (1.9)   (1.9)   —   (1.9)  
  Profit on sale of Franklins (after tax)   —   —   —   438.4   438.4  
  Statement of financial position            
  Total assets   11 377.8   440.5   11 818.3   —   11 818.3  
  Total liabilities   9 004.9   409.3   9 414.2   —   9 414.2  
  * Direct deliveries are issues to franchisees directly by Group suppliers facilitated through the Group’s supply chain.
  Pick n Pay Holdings Group   South  
Africa  
Rm  		 Africa  
Rm  		 Total  
continuing  
operations  
Rm  		 Discon-  
tinued  
operation  
Australia  
Rm  		 Total  
operations  
Rm  
  2013            
  Total revenue   57 776.6   2 672.9   60 449.5   —   60 449.5  
  External revenue   57 776.6   1 881.9   59 658.5   —   59 658.5  
  Direct deliveries*   —   695.4   695.4     695.4  
  Inter-segment revenue   —   95.6   95.6   —   95.6  
  External turnover   56 694.0   2 577.3   59 271.3   —   59 271.3  
  Profit before tax   714.3   92.7   807.0   —   807.0  
  Other information            
  Statement of comprehensive income            
  Interest income   40.0   2.8   42.8   —   42.8  
  Interest expense   131.3   —   131.3   —   131.3  
  Depreciation and amortisation   881.4   14.1   895.5   —   895.5  
  Share of associates’ income   —   23.4   23.4   —   23.4  
  Statement of financial position            
  Total assets   12 504.7   516.8   13 021.5   —   13 021.5  
  Total liabilities   10 156.3   454.4   10 610.7   —   10 610.7  
  2012            
  Total revenue   54 284.1   2 009.9   56 294.0   3 389.3   59 683.3  
  External revenue   54 284.1   1 350.3   55 634.4   3 389.3   59 023.7  
  Direct deliveries*   —   604.7   604.7   —   604.7  
  Inter-segment revenue   —   54.9   54.9   —   54.9  
  External turnover   53 375.5   1 955.0   55 330.5   3 389.2   58 719.7  
  Profit/(loss) before tax   1 118.7   49.7   1 168.4   (87.2)   1 081.2  
  Other information            
  Statement of comprehensive income            
  Interest income   33.0   6.5   39.5   0.2   39.7  
  Interest expense   135.1   —   135.1   6.0   141.1  
  Depreciation and amortisation   800.1   8.0   808.1   —   808.1  
  Share of associate’s loss   —   (1.9)   (1.9)   —   (1.9)  
  Profit on sale of Franklins (after tax)   —   —   —   438.4   438.4  
  Statement of financial position            
  Total assets   11 378.2   440.5   11 818.7   —   11 818.7  
  Total liabilities   9 008.6   409.3   9 417.9   —   9 417.9  
  * Direct deliveries are issues to franchisees directly by Group suppliers facilitated through the Group’s supply chain.