Notes to the financial information
for the period ended 1 September 2013

1.	BASIS OF PREPARATION AND ACCOUNTING POLICIES
	The interim condensed consolidated financial statements for the period ended 1 September 2013 have been prepared in accordance with IAS 34 and International Financial Reporting Standards (IFRS), the requirements of the South African Companies Act No 71 of 2008, as amended, and in compliance with the Listings Requirements of the JSE Limited. The accounting policies and methods of computation applied are consistent with those applied in preparation of the annual financial statements for the period ended 3 March 2013. The interim condensed consolidated financial statements have been prepared by the Pick n Pay Finance Division under the supervision of the Chief Finance Officer, Mr Aboubakar (Bakar) Jakoet CA(SA). The information contained in the interim report has neither been audited nor reviewed by the Group’s external auditors.
2.	CHANGE IN FINANCIAL PERIOD CUT-OFF DATE
	During the financial period ended 3 March 2013 the Group adopted a 52-week financial reporting calendar for all future financial periods. This change aligned financial reporting with Group operational structures and will improve comparative reporting to both internal and external stakeholders.

	As a result, the 2014 interim financial period ended on 1 September 2013 consisted of 182 trading days compared to the comparative period ended 31 August 2012 of 184 trading days. The additional trading days included in the prior period result had the following estimated impact on the consolidated financial statements. There was no impact on working capital.

		Unaudited
		Rm
	Statement of comprehensive income
	Turnover	333.8
	Net profit after tax	28.0

3.	RELATED PARTIES
	During the period, certain companies within the Group entered into transactions with each other. These intra-group transactions are eliminated on consolidation. Related parties are unchanged from those reported at 3 March 2013. For further information please refer to note 27 of the 2013 Group annual financial statements and note 9 of the 2013 Company annual financial statements.

4.	SHARE CAPITAL
		Unaudited		Audited
		1 September 2013 Rm	31 August 2012 Rm	3 March 2013 Rm
	Authorised
	800 000 000 ordinary shares of 1.25 cents each	10.0	10.0	10.0
	Issued
	480 397 321 ordinary shares of 1.25 cents each	6.0	6.0	6.0

		000’s	000’s	000’s
	The number of shares in issue at end of period is made up as follows:
	Treasury shares held in the share trust	2 020.0	2 121.6	2 046.6
	Shares held outside the Group	478 377.3	478 275.7	478 350.7
	Total shares in issue at end of period	480 397.3	480 397.3	480 397.3

	Under a general authority, 24 million of the unissued shares remain under the control of the directors until the next annual general meeting (5% of the issued share capital of the Company).
	In addition to the general authority above, 63.9 million unissued shares (13.3% of issued shares) remain under the control of the directors to implement the terms and provisions of the Pick n Pay 1997 Share Option Scheme.
	The holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at meetings of the Company.

5.	OPERATING SEGMENTS
	Unaudited	South Africa Rm	Africa Rm	Total operations Rm
	2013
	Total revenue	29 046.9	1 596.2	30 643.1
	External revenue	29 046.9	1 231.1	30 278.0
	Direct deliveries*	–	275.0	275.0
	Inter-segment revenue	–	90.1	90.1
	External turnover	28 561.5	1 506.1	30 067.6
	Profit before tax	206.7	65.1	271.8
	Other information
	Statement of comprehensive income
	Interest received	19.1	0.1	19.2
	Interest paid	73.8	0.3	74.1
	Depreciation and amortisation	469.2	9.6	478.8
	Share of associate’s income	–	14.4	14.4
	Statement of financial position
	Total assets	12 447.6	776.2	13 223.8
	Total liabilities	10 382.8	533.4	10 916.2
	2012
	Total revenue	27 643.4	1 219.6	28 863.0
	External revenue	27 643.4	844.3	28 487.7
	Direct deliveries*	–	329.4	329.4
	Inter-segment revenue	–	45.9	45.9
	External turnover	27 132.3	1 173.7	28 306.0
	Profit/(loss) before tax	212.1	47.1	259.2
	Other information
	Statement of comprehensive income
	Interest received	27.0	–	27.1
	Interest paid	63.9	–	65.6
	Depreciation and amortisation	433.3	6.4	439.7
	Share of associate’s income	–	9.7	9.7
	Statement of financial position
	Total assets	11 932.7	491.4	12 424.1
	Total liabilities	9 942.1	384.0	10 326.1
	* Direct deliveries are issues to franchisees directly by Group suppliers facilitated through the Group’s supply chain
6.	HEADLINE EARNINGS RECONCILIATION
		Unaudited		Audited
		1 September 2013 Rm 182 days	31 August 2012 Rm 184 days	3 March 2013 Rm 368 days
	Basic earnings (profit for the period)	191.6	180.4	550.6
	Adjustments:	3.6	(8.7)	(18.4)
	Loss/(profit) on sale of property, equipment and vehicles and intangible assets	5.2	(12.3)	(21.6)
	Tax effect of (loss)/profit on sale of property, equipment and vehicles and intangible assets	(1.6)	3.6	3.2

	Headline earnings	195.2	171.7	532.2

Notes to the financial information for the period ended 1 September 2013

1.

BASIS OF PREPARATION AND ACCOUNTING POLICIES

2.

CHANGE IN FINANCIAL PERIOD CUT-OFF DATE

3.

RELATED PARTIES

4.

SHARE CAPITAL

5.

OPERATING SEGMENTS

6.

HEADLINE EARNINGS RECONCILIATION

Notes to the financial information
for the period ended 1 September 2013