The integrated annual report covers the strategic objectives, financial performance, operational highlights and social, human and environmental impact of the Group.

The report covers the 2015 financial period, with relevant comparisons to previous periods, and is consistent with information and performance indicators included in internal management reporting. The report 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 Global Reporting Initiative’s G4 guidelines on reporting of non-financial information;
• The Companies Act, No 71 of 2008, as amended;
• The JSE Listings Requirements;
• International Financial Reporting Standards (IFRS); and
• The International Integrated Reporting <IR> Framework.

The report presents a range of financial and non-financial disclosures and performance measures to assist our stakeholders in making an informed and objective assessment of the Group’s overall performance in 2015.

Non-financial disclosures provided in this report are specific to our Pick n Pay-branded owned business in South Africa. It is our intention to expand these disclosures in future in order to provide a comprehensive view of the social, human and environmental impacts of the Group as a whole, including our impacts outside South Africa.

In our continued effort to improve our reporting, we have made some changes to the structure and presentation of information, particularly in respect of presenting the Group’s long-term strategic focus, business model and our remuneration report. This has not materially affected the consistency of our reporting, and no previously reported significant information has been excluded from the report.

There has been no restatement of financial information in respect of prior periods.

Forward-looking information

This integrated annual report contains certain forward-looking statements related to the 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 contained 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.

Assurance

The Board, assisted by the audit and risk committee, is ultimately responsible for overseeing the integrity of the integrated annual report. This has been achieved by establishing skilled and experienced teams and accountability structures to undertake the reporting process and by performing a thorough review of the report.

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

The information included in our integrated annual report has been verified by a combination of internal audit and external audit assurance. The latter applying to the financial statements, and certain sustainability indicators.

Feedback

We are committed to achieving the highest standards of global best practice in reporting, and continue on our journey to implement these standards within the Group. We have expanded our disclosures in 2015 and will continue to engage with all stakeholders to ensure that we improve year on year. We trust that the 2015 integrated annual report has achieved our objective of providing you with a deeper understanding of Pick n Pay – of who we are, how we do business and where we hope to be in the future.

It has become accepted reporting practice for an integrated annual report to include summarised financial statements, with a full set of financial statements published separately. Our shareholders have provided feedback that they prefer one document. Pick n Pay therefore includes the full financial statements in its integrated annual report.

We are committed to building on and improving this report next year and would value your feedback. Any comments or requests for additional information can be emailed to our Company Secretary at demuller@pnp.co.za.

Materiality

Materiality has been applied in determining the scope and content of this report. Materiality is determined by the Board, supported by senior management, based on matters that could substantively affect the Group’s ability to create value over time and could have a material impact on the current and projected revenue and profitability of the Group. More specifically, the review includes the material business risks that could have a material impact on the Group’s ability to achieve the objectives of its strategic long-term plan.

The Group has extensive interaction with the investor community, including shareholders and investment analysts, and our review of material issues also considers those issues that are material to the investor community.

These material issues were again reviewed by the Board and senior management during the reporting period to ensure all relevant internal, industry and macro-economic factors were considered. These material issues are presented here under the seven business acceleration pillars of our strategic long-term plan. We have not disclosed any information that is considered competitor-sensitive or price-sensitive.