Pick n Pay Reviewed condensed consolidated results for the year ended 28 February 2011

Notes to the annual financial information

	1.	KPMG Inc, the Group’s independent auditor, has reviewed the condensed consolidated results contained in this preliminary report, and has expressed an unmodified conclusion on the preliminary financial statements. Their review report is available for inspection at the Company’s registered office. These preliminary financial statements are prepared in accordance with the recognition and measurement requirements of IFRS and the disclosure requirements of IAS 34. Accounting policies are consistent with those of prior years.
	2.	During the year, certain companies within the Group entered into transactions with each other. These intra-group transactions are eliminated on consolidation. Related party information is unchanged from that reported at 28 February 2010. For further information, please refer to note 28 of the 2010 annual report.
	3.	Revenue comprises turnover, other trading income and interest received.
	4.	The weighted average number of shares is lower than that in issue due to the treasury shares held by the Group being treated as cancelled for this calculation.
	5.	The Group recommenced equity accounting its 25% investment in TM Supermarkets in Zimbabwe (TM) from 1 March 2010. The investment has been recognised at 25% of the shareholder’s equity of TM at the beginning of the current year.
	6.	Discontinued operations: Franklins – in July 2010 the Group agreed to sell its Australian operation to Metcash, subject to approval by the Australian competition regulator, the Australian Competition and Consumer Commissions (ACCC). The ACCC opposed the sale to Metcash on the basis that it is likely to have the effect of substantially lessening competition in an Australian market. Following the ACCC’s decision, the parties announced that they proposed to proceed with the transaction and this led the ACCC to commence legal proceedings in the Federal Court of Australia in December 2010, seeking to prevent the parties from completing the transaction. We and Metcash agreed with the ACCC to an expedited hearing, which commenced in mid-March 2011. The judgement of the Court is expected before 30 June 2011. If the Federal Court of Australia prevents the acquisition by Metcash, we remain committed to the sale of Franklins and anticipate selling the Franklins stores, either individually or in groups, under a competitive tender process. Franklins has been presented as a discontinued operation at 28 February 2011 and the comparative information has been restated accordingly. Score – the Group completed the closure of the store operations of its subsidiary Score Supermarkets Operating Limited in 2010.

The salient financial information of the discontinued operations is as follows:

	Franklins Pty Limited		Score Supermarkets Operating Limited			Total Discontinued Operations

	Reviewed Feb 2011 Rm	Audited Feb 2010 Rm		Reviewed Feb 2011 Rm	Audited Feb 2010 Rm	Reviewed Feb 2011 Rm	Audited Feb 2010 Rm
Statement of comprehensive income
Revenue	5 617.4	5 673.3		-	580.9	5 617.4	6 254.2
Turnover	5 613.0	5 666.0		-	579.8	5 613.0	6 245.8
Trading expenses	1 281.6	1 319.8		-	238.1	1 281.6	1 557.9
Loss on sale of equipment and vehicles	(7.0)	(5.6)		-	(1.3)	(7.0)	(6.9)
Trading (loss) / profit for the period	(123.2)	14.4		-	(107.1)	(123.2)	(92.7)
(Loss) / profit for the period (after tax)	(123.4)	16.3		-	(107.5)	(123.4)	(91.2)
Statement of financial position
Total assets	2 120.1	2 055.5		-	86.1	2 120.1	2 141.6
Total liabilities	826.6	975.2		-	174.4	826.6	1 149.6
Cash flow statement
Net cash from / (utilised in) operating activities	13.9	149.8		-	(212.7)	13.9	(62.9)
Net cash (utilised in) / from investing activities	(151.4)	(174.0)		-	56.8	(151.4)	(117.2)
Net cash from / (utilised in) financing activities	10.0	(9.9)		-	-	10.0	(9.9)