Notes to the financial information
for the period ended 30 August 2015

1. BASIS OF PREPARATION AND ACCOUNTING POLICIES

The condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards, IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council and the requirements of the Companies Act of South Africa. The accounting policies applied in the preparation of these interim financial statements are in terms of International Financial Reporting Standards and are consistent with those applied in the financial statements for the 52 weeks ended 1 March 2015. These interim financial statements have been prepared by the Finance Division under the supervision of the Chief Financial Officer, Mr Bakar Jakoet CA(SA), and have not been audited or reviewed by the Group’s external auditors, Ernst & Young Inc.

2.	RELATED PARTY TRANSACTIONS
	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 1 March 2015. For further information please refer to note 27 of the 2015 Group financial statements and note 9 of the 2015 Company financial statements.

3.	SHARE CAPITAL
		Unaudited 26 weeks to 30 August 2015 Rm	Unaudited 26 weeks to 31 August 2014 Rm	Audited 52 weeks to 1 March 2015 Rm

	Authorised
	800 000 000 (2014: 800 000 000) ordinary shares of 1.25 cents each	10.0	10.0	10.0
	Issued
	527 249 082 (2014: 527 249 082) ordinary shares of 1.25 cents each	6.6	6.6	6.6
	5% of the unissued shares of the Company may be utilised, and is available, to settle the Company’s obligations under the employee share schemes.
	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.

4.	REVENUE
		Unaudited 26 weeks to 30 August 2015 Rm	Unaudited 26 weeks to 31 August 2014 Rm	Audited 52 weeks to 1 March 2015 Rm

	Turnover	34 855.8	32 110.6	66 940.8
	Finance income	29.8	26.0	59.4
	Other trading income	320.0	316.0	602.9
	Franchise fee income	161.5	145.8	294.4
	Operating lease income	42.2	33.6	67.3
	Commissions and other income	116.3	136.6	241.2


		35 205.6	32 452.6	67 603.1

5.	OPERATING SEGMENTS
	Unaudited	South Africa Rm	Rest of Africa Rm	Total operations Rm

	2015
	Total segment revenue	33 650.1	1 958.3	35 608.4
	External revenue	33 650.1	1 555.5	35 205.6
	Direct deliveries*	–	402.8	402.8
	Segment external turnover	33 307.6	1 548.2	34 855.8
	Segmental profit**	334.2	115.7	449.9
	Other information
	Statement of comprehensive income
	Finance income	27.6	2.2	29.8
	Finance costs	(55.7)	–	(55.7)
	Depreciation and amortisation	441.4	14.4	455.8
	Share of associate’s income	–	15.7	15.7
	Statement of financial position
	Total assets	14 728.3	1 145.4	15 873.7
	Total liabilities	12 531.8	315.9	12 847.7
	Additions to non-current assets	596.4	15.1	611.5
	2014
	Total segment revenue	31 030.1	1 732.4	32 762.5
	External revenue	31 030.1	1 422.5	32 452.6
	Direct deliveries*	–	309.9	309.9
	Segment external turnover	30 688.1	1 422.5	32 110.6
	Segmental profit**	230.8	135.1	365.9
	Other information
	Statement of comprehensive income
	Finance income	23.5	2.5	26.0
	Finance costs	(59.9)	–	(59.9)
	Depreciation and amortisation	416.3	11.0	427.3
	Share of associate’s income	–	11.1	11.1
	Statement of financial position
	Total assets	12 853.1	1 019.0	13 872.1
	Total liabilities	11 014.5	321.2	11 335.7
	Additions to non-current assets	391.2	6.6	397.8


	*	Direct deliveries are issues to franchisees directly by Group suppliers facilitated through the Group’s supply chains that are not included in revenue on the statement of comprehensive income.
	**	Segmental profit is the reported measure used for evaluating the Group’s operating segments performance. On an overall basis the segmental profit is equal to the Group’s reported profit before tax. The Rest of Africa segment’s segmental profit comprises the segment’s trading result and directly attributable costs only. No allocations are made for indirect or incremental cost incurred by the South Africa segment relating to the Rest of Africa segment.

6.	BASIC, HEADLINE AND DILUTED EARNINGS PER SHARE
		Unaudited 26 weeks to 30 August 2015 Cents per share	Unaudited 26 weeks to 31 August 2014 Cents per share	Audited 52 weeks to 1 March 2015 Cents per share

	Basic earnings per share	32.83	26.72	88.78
	Diluted earnings per share	31.62	25.79	86.54
	Headline earnings per share	32.94	26.51	88.01
	Diluted headline earnings per share	31.73	25.59	85.80
		Rm	Rm	Rm
6.1	Basic and headline earnings
	Reconciliation between basic and headline earnings:
	Profit for the period	172.3	137.9	461.8
	Profit attributable to forfeitable share plan shares	(2.9)	–	(3.5)
	Basic earnings for the period	169.4	137.9	458.3
	Adjustments:	0.6	(1.1)	(4.0)
	Loss/(profit) on sale of property, plant and equipment	0.8	(1.6)	(5.6)
	Tax effect of (loss)/profit on sale of property, plant and equipment	(0.2)	0.5	1.6
	Adjustments attributable to forfeitable share plan shares	–	–	–
	Headline earnings	170.0	136.8	454.3
	Basic earnings (profit for the period)	169.4	137.9	458.3
	Dilutive effect of share options	(4.1)	(3.2)	(6.8)
	Diluted basic earnings	165.3	134.7	451.5
	Headline earnings	170.0	136.8	454.3
	Dilutive effect of share options	(4.1)	(3.2)	(6.7)
	Diluted headline earnings	165.9	133.6	447.6
		000’s	000’s	000’s
6.2	Number of shares
	Weighted average number of ordinary shares in issue	516 143.3	516 170.7	516 238.6
	Diluted weighted average number of ordinary shares in issue	522 916.2	522 231.5	521 711.4
	Number of shares in issue	527 249.1	527 249.1	527 249.1

7. FINANCIAL INSTRUMENTS

All financial instruments held by the Group are measured at amortised cost, with the exception of derivative financial instruments and certain items included in trade and other payables. The latter are measured at fair value through profit or loss, are categorised into level 2 of the fair value hierarchy and are considered to be immaterial. Level 2 is defined as using inputs other than quoted prices that are observable for the asset or liability either directly (prices) or indirectly (derived from prices). The carrying value of all financial instruments approximate their fair value.

Notes to the financial information for the period ended 30 August 2015

1.

BASIS OF PREPARATION AND ACCOUNTING POLICIES

2.

RELATED PARTY TRANSACTIONS

3.

SHARE CAPITAL

Authorised

Issued

4.

REVENUE

5.

OPERATING SEGMENTS

6.

BASIC, HEADLINE AND DILUTED EARNINGS PER SHARE

7.

FINANCIAL INSTRUMENTS

Notes to the financial information
for the period ended 30 August 2015