#1Massmart powered by Walmart Massmart Reviewed Results Presentation for the 52 weeks ended 26 December 2021 7 March 2022#2Presenting today Mitchell Slape Chief Executive Officer Mohammed Abdool-Samad Chief Financial Officer Massmart powered by Walmart 2#3Agenda 01 Financials 02 Business update 03 Key takeaways 04 Additional information Massmart powered by Walmart>< 3#4Financials Mohammed Abdool-Samad, Group CFO Massmart powered by Walmart>< Africa teCentres builders New and improved key cutting, remote programming & car key services. We offer basic professional services We offer professional car key services offer professional amith services": okon OEN#5H1 and H2 performance Positive H1 momentum, H2 impacted by civil unrest and supply Sales vs 2020 Continued chain disruptions • 2 DCs (Riverhorse and Cato Ridge) looted, Riverhorse destroyed by arson Electronics and appliance in-stocks significantly affected, compounded by global shortages 6.1% H1 Q3 Q4 6.6% (2.5%) 0.4% (6.9%) (0.6%) Discontinued (10.0%) (10.3%) (39.2%) (17.1%) (16.6%) (6.3%) H H1 Q3 Q4 XXXXXX COMP 5#6Financial impact of the civil unrest and Covid-19 liquor trading restrictions Focused effort on re-opening stores and finalising SASRIA insurance claim Estimated impact on trading profit 117.8%* 322 1,659 1,613 656 831 172 wwwwww 36 (635) Reported Liquor ban Civil unrest Adjusted Prior year Rm Liquor ban Civil unrest Estimated lost sales margin** 193.0 473.1 Inventory write-off 1,238.9 Expenses 15.5 65.1 Insurance proceeds (SASRIA and BI) (799.2) Estimated lost trading profit 208.5 977.9 Asset impairments 230.7 Insurance proceeds on PPE (SASRIA) (129.6) Estimated lost operating profit 208.5 1,079.0 (277) Continued Discontinued (440) *Total Group estimated growth ** Refer to additional information for Management assumptions used Massmart powered by Walmart 6#7Adjusted headline loss Adjusting for civil unrest and liquor bans Continuing operations Rm Headline loss - Reported* Add: inventory write-offs, net of tax** . PP&E impairments: SAICA Circular adjustment Inventory write-off: Not a SAICA Circular adjustment Dec 2021 (980.2) 699.0 (452.2) Dec 2020 (831.0) % Variance (18.0) 100.0 Less: proceeds on inventory write-offs, net of tax** (100.0) Add: estimated lost sales margin from Liquor ban, net of tax* *** 115.2 100.0 Add: estimated lost sales margin from civil unrest, net of tax* Adjusted headline loss ** 225.5 100.0 Adjusted HEPS (392.7) (181.7) (831.0) 52.7 (383.7) 52.6 * PP&E impairments (civil unrest) net of insurance added back in terms of SAICA Circular ** Not a headline earnings adjustment as per SAICA Circular *** Refer to additional information for Management assumptions used Massmart powered by Walmart 7#8Financial summary Significantly impacted by extraordinary events Continuing operations: 52-week basis 0.1% Sales increase R77.6 billion 0.1% SG&A increase 2020: R77.6 billion R14.6 billion 2020: R14.5 billion Comp sales 13.0% 18.7% Gross profit margin decrease by 187 bps 2020: 20.5% Adjusted GP margin: 20.0% 30bps* 48.5% Trading profit decrease before interest and tax (excl. retrenchment, business transformation, impairment costs and insurance proceeds relating to PPE) R830.6 million 2020: R1,613.0 million Adjusted for Liquor ban and civil unrest: 12.9%** 18.0% Headline loss increase (R1.0 billion) 2020: (RO.8 billion) Adjusted headline loss: (RO.4bn) 152.7%*** *Excludes the impact of the civil unrest and Game's inventory valuation adjustments and customs provision **Refer to additional information for Management assumptions used ***Excludes the impact of the civil unrest Massmart powered by Walmart >< 8#9Sales by geography and category Continuing operations Three key themes: 1. Increase in comparable sales 2. Soft Durables sales 3. Rest of Africa impacted GROUP SALES R77.6bn ↑0.1% ↑3.0% COMP SALES by currency devaluations *FY21 contribution to total geographic sales SA SALES 90.5% ↑0.9% ↑4.3% COMP SALES FOOD ↓7.0% 35%* LIQUOR ↑18.5% 16%* GM and DIY ↑2.2% 49%* FOOD +7.4% 36%* LIQUOR ↑17.6% 15%* GM and DIY ↑1.3% 49%* REST OF AFRICA SALES 9.5% +7.5% ↓7.7% COMP SALES ↑0.3% CONSTANT CURRENCY FOOD +11.2% 41%* LIQUOR ↑6.9% 11%* GM and DIY 16.9% 48%* 9#10Comp sales performance, SA only Continuing operations Food sales impacted by HORECA sector and category decisions • Game - Food sales impacted by accelerated removal of Fresh and Frozen food (margin accretive) from all SA stores - Food sales: 18.4% • . Wholesale Food sales still depressed given travel restrictions and work-from-home impacting HORECA sector Supply chain disruptions (global and civil unrest-related) on electronics and appliances impacting Black November and Festive season trading in H2 Continuing Operations Group sales growth 10.1% (SA Sales 10.9%) Group comp sales growth 13.0% (SA comp sales 14.3%) Food General Merchandise Home Improvement Liquor SA Retail sales (2.6%) 3.0% 5.9% 24.0% 6.4% Strong growth in ownership categories Game SA General Merchandise Builders Makro General Merchandise Wholesale Liquor (0.5%) (H1: 15.0%) 6.0% (H1: 122.0%) 7.2% (H1: 121.4%) 24.9% (H1: 140.1%) Source SA Retail sales: Stats SA SA Retail sales 6.4% Massmart powered by Walmart >< 10#11Strong expense control Expenses flat on LY (Comp up 1.4%) and 1.5% lower than 2019 5.5% decrease • Depreciation and amortisation Closure of net 15 stores Lower asset base as a consequence of previous asset impairments recognised Includes IFRS 16 Continuing operations 0.6% increase Employment Costs Vacancy freeze and restructuring savings TERS benefit of R61m 0.4% decrease • Occupancy Costs Benefits of sustainability initiatives Rentals renegotiated in 2021 (2020: R189m) . Rental relief of R1m (2020: R102m) • • 3.5% increase Other Operating Costs Civil unrest related costs Remodeling expenses • Increased repairs and maintenance Excluding impact of civil unrest: 2.4% increase Massmart powered by Walmart 11#12Resetting the cost base on track Delivered total savings of R1.6bn against our R1.8bn 3-year objective With sustainable cost management practices embedded in the business Sources of expense savings 27% Site services & supply costs Other (e.g. travel, marketing, 21% professional services) 20% Rent (real estate) 13% Utilities 11% Transport 8% Technology infrastructure R1.6bn in total SG&A savings unlocked against R1.8bn 3-year ambition - leading to reduction of addressable spend from R10.4bn to R8.6bn COGS savings of R185m secured through data driven negotiations Identified additional cost savings through our Centralised savings Procurement Team HUGE RANGE IN STORE. ONLINE, EVEN MORE. Delivering on our promise makro BIG on life S 2050 1-201 Massmart powered by Walmart 12#13Massmart Retail Performance Stand-out performance for Builders, Game reset for a much improved 2022 performance Includes IFRS 16 Continuing operations ^ Excludes the Covid-19 and civil unrest impact - refer to additional information for Management assumptions used * Excludes inventory write-offs as a result of the civil unrest ** Includes HO allocations builders ↑7.1% R14.9bn Sales ↑7.7%^ (110bps) 34.8% . GP MARGIN* • • • • • 2020: 35.9% ↑14.2% R1,179.6m Trading profit** 2020: R1,032.6m 2019: R848.5m ↑17.9%^ Strong retail demand; trade sales recovery slower - mainly driven by larger construction projects Grew online sales by 48.3% Margin: normalising expected post Covid-19 Business unit expenses 16.4% Civil unrest 8 stores affected . Civil unrest estimated impact: Lost sales R76.7m Lost trading profit: R37.7m YOU'VE GOT game (8.7%) R15.3bn Sales (6.6%)^ (90bps) • • • . SA sales: 16.9%, comp sales √3.7% Rest of Africa sales: 12.8%, constant currencies $2.6% Removal of Fresh and Frozen offerings in SA: Food sales ↓20.8% In-stocks challenges over festive trading period Online sales 172.0% 26.5% • Relayed 114 stores GP MARGIN* • 2020: 27.4% (93.6%) (R1,031.1m) Trading profit** 2020: (R532.5m) 2019: (R391.0m) (47.3%)^ .. • • • Margin impacted by inventory valuation adjustments and customs provision Excluding this margin would be 27.7%, 140bps Business unit expenses ↓5.8% Civil unrest: 10 store affected Covid-19 & civil unrest estimated impact: . Lost sales: R349.5m Lost trading profit: R246.6m 13#14• Rental renegotiations largely complete • . Game core portfolio All stores relayed and looking great Divestment of East and West Africa stores and 15 SA stores at an advanced stage S189 store rationalisation complete YOU'VE GOT game 2021 Sales GP Margin Trading profit Total Core* (8.7%) 26.5% (93.6%) (6.1%) 27.3% (28.0%) January 2022 • New e-commerce website to be launched in Q1 2022 Core comp 3.8% ~28.0% 64.0% *Normalised for the impact of Covid-19, civil unrest and inventory valuation adjustment impact SURFACE SANITISE ON Massmart powered by Walmart >< 14#15Massmart Wholesale Performance makro BIG on life JUMBO WHOLESALE THE CANT OF AFRICA Shield Strong underlying performance - Impacted by loss of highest volume stores ↑1.1% R47.4bn Sales ↑7.4%^ . Lower activity in corporate, hospitality, restaurant and catering sectors • In-stocks challenges over festive trading period - electronics, appliances and cell phones • Makro online sales 118.6% • Margin impacted by sales mix, improved liquor sales in 2021 • Business unit expenses 12.9% • Civil unrest: 7 store affected • Covid-19 & civil unrest estimated impact: 15.1% • Lost sales: R2,947.1m . Lost trading profit: R544.0m (50bps) GP MARGIN* 2020: 15.6% Includes IFRS 16 Continuing operations ^ Excludes the Covid-19 and civil unrest impact - refer to additional information for Management assumptions used * Excludes inventory write-offs as a result of the civil unrest ** Includes HO allocations (35.7%) R753.7m Trading profit** 2020: R1,172.1m 2019: R963.9m ↑10.7%^ Massmart powered by Walmart > 15#16Cambridge food save money. live better RHINO THE NAME YOU CAN TRUST THE Massfresh Fruit:spot Discontinued operations Cambridge, Rhino and Massfresh businesses • Classified and reported as discontinued operations Income Statement: separate disclosure of discontinued operations (2020 restated) Balance sheet: assets and liabilities disclosed as held for sale (2020 not restated) • Not core to our Group's business . Sale anticipated to be completed during first half of 2022 • Awaiting Competition Commission recommendation to Tribunal - expected end Q1 2022 (18.7%) R7.2bn Sales (5.6%)^ (100bps) 18.1% GP MARGIN* 2020: 19.1% (41.5%) (R706.6m) Trading profit** 2020: (R499.5m) 2019: (R201.5m) ↑30.2%^ Includes IFRS 16 ^ Excludes the Covid-19 and civil unrest impact - refer to additional information for Management assumptions used * Excludes inventory write-offs as a result of the civil unrest **Includes HO allocations . . Cambridge sales impacted by high unemployment and reduced disposal income and Government grants Massfresh significantly impacted by depressed hospitality, restaurant and catering sectors Business unit expenses 12.8% Civil unrest: 18 store affected Covid-19 & civil unrest estimated impact: Lost sales: R1,175.3m • Lost trading profit: R358.1m Massmart powered by Walmart > 16#17Accelerating our e-commerce business ↑56% GMV Orders ↑113% Revenue 147% 2.2% Sales participation* 2020: 1.8% 96% On time delivery** 43% within 1 day ↑68% Conversion rate improvement** Continuing operations *Based on products available for sale online **2022 Q1 Top Trending Products Order online. Pick here. makro TASTE AND O kro mokro.co.z ONLINE SUPPORT Coase e OneCart • WumDrop 17#18Working capital Tightly controlled working capital despite current economic environment and supply chain disruptions 70 Inventory days* Dec 2020: 70 Stock levels impacted by the civil unrest and insufficient in- stocks in certain categories * Excludes civil unrest- related inventory write off 0 days 2021 R11.9bn 2020 R11.9bn ↓7 days • 70 Creditor days Dec 2020: 77 9 Debtor days Dec 2020: 9 Trade creditors down 7.7% End of negotiated payment terms with suppliers in 2020 due to Covid-19 impact Genpact: significant improvement in unmatched invoices Genpact: improved collection of long outstanding debtors 2021 R13.8bn 2020 R14.9bn 0 days 18#19Cash flow and debt management Cash flow negatively impacted in H2 by civil unrest Cash flow initiatives • . • Continued focus on expense management Normalised average net debt in line with prior year Capex projects re-prioritised due to civil unrest impact Rm Dec 2021 Dec 2020 Movement EBITDA, before non-trading items 3,409.2 4,350.8 (941.6) Average net debt* 8,666.3 7,486.0 1,180.3 Normalised average net debt** 7,542.0 7,486.0 56.0 Free cash flow (2,030.8) 2,288.8 (4.319.6) Gearing ratio^ 0.69 0.47 0.22 Foreign exchange loss 178.5 381.1 (202.6) Cash interest to financiers* 468.0 536.4 (68.4) Continuing operations *Excludes lease liabilities ** Excludes the estimated impact of Covid-19 trading restriction and the civil unrest ^ Gearing ratio is calculated as net debt (excluding lease liabilities) to total equity and net debt Massmart powered by Walmart 19#20Perpetual bond Optimising our balance sheet 1 Massmart repaid $125m (~R2bn) of the existing Walmart Loan. This loan was classified as debt. Terms: Tenure Perpetual Value R2bn Interest 7.25% with an interest step up of 225bps on 31 December 2023 Walmart continued to demonstrate strong levels of support for Massmart. Replaced US$125m existing loan - subscribed to a perpetual fixed rate unsecured note • Treated as equity - Massmart Holdings Limited has no contractual obligation to deliver cash or any other financial asset(s) in any circumstances outside its control • Remaining US$117m Walmart loan: 6-month tenure, can be extended at the end of each tenure period 2 Walmart subscribed for the R2bn Massmart perpetual bond. The bond is classified as equity. Massmart powered by Walmart 20#21Capital expenditure Capex re-prioritised due to civil unrest (excluding M&A) Total Group Capex as a % of sales Capital expenditure Rbn R1.8bn R1.6bn 1.9% R1.2bn R1.4bn 1.8% 1.4% R1.0bn 1.5% 1.2% Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Investment to maintain operations Investment to expand operations Massmart powered by Walmart><21#22FY 2022 Capital allocation 72% capital allocated to new stores & remodels and e-commerce expansion TAA rnational electricity. makro 37% Makro new stores & remodels builders makro Shop Departments Promotions COOKWARE FOR EVERY TASTE AND BUDGET makro BIG on life INTRODUCING THE NEW SAMSUNG GALAXY $22 SERIES, New available for pre-order at Makro THE ORDER Top Trending Products bilder's 20% Builders new stores & remodels CRO 600 999 Contact Us Cooking Lappliances CreditSelan 15% E-commerce expansion Galaxy S22 Series YOU'VE GOT game MacBook SAMSUNG Massmart powered by Walmart << 22#23Key takeaways Positive H1 momentum impacted by the civil unrest in H2 ● Focused effort to rebuild stores and close out insurance claim ● Civil unrest impact on local supply chain, exacerbated by global supply chain challenges, impacting appliance and electronics stock availability Expense reset programme ahead of target Strong Builders and underlying Wholesale performance Game core business well set for a strong FY2022 performance. January SA comp store sales up 3.8% Divestments on track FY 2022 capital allocation supporting growth Continued Balance Sheet support from Walmart by converting loan to equity instrument Massmart powered by Walmart << 23#241 SCHNIC 27 Catering Cookware Business Equipment Update Mitch Slape, Group CEO 900 200-30 ICE MAKER 11036 ICE MAKE 599 3990 AXIS 4LO GANU mCard NO CARD. NO WORKS Massmart powered by Walmart>< ZBC-20 ICE MAKER ICE MAKER 30-10 CEMAKER 29 280-20 200-38 ICE MAKER ICE MAKER Coca-Cola Coca-Cola Coca-Cola Homeware <Appliances 900 RYOBI Laundry less Paint Household lectrical LEGO 6024 G-915 9001 300H YEAR Disp TECAY Automotive Paint 699 1099 2499 KARCHER KARCHER KARCHER 24 Du#25Our Strategic Journey Pivoting toward accelerated growth 3 1 Stabilise Through strong execution of our Turnaround plan 2 Focus Divest non-core assets to drive sustainable profitable growth Invest Accelerated growth in e-commerce, key categories & geographies 25#26Reflecting on our Journey Thus Far Duplication of cost, limited leverage of scale, systems and supply chain ...with opex growth of >11% and head office labour costs >4% of SG&A (in 2019) Our Turnaround journey set out to address the challenges impeding our performance Unhealthy competition between our banners ...with limited collaboration and behaviours and a culture geared towards individual performance Poor delivery against Game's customer needs ...low sales growth and unprofitable Game business Allocation of capital to categories and formats without a sustainable right to win ...leading to low profitability levels in selected markets, banners and stores Significant underinvestment in our stores and digital offering ...impacting CVP execution and our ability to deliver strong customer experiences 26#27Stabilisation: Strong Turnaround Execution Our Turnaround efforts have simplified and focused our business Removed duplication Unlocked efficiencies Integrating our business Reinvigorating Game Reset the cost base Creating a portfolio geared for growth • Centralised support functions Outsourced financial transaction processing • Progressed Wholesale IT unification project Consolidating the Supply Chain network. Strengthening the core business through CVP and structural interventions . Delivered R1.6bn of our R1.8bn SG&A saving ambition • Exiting of non-core businesses, markets and stores 27 22#28Establishing a Profitable Core Interventions at Game are strengthening the core and will fundamentally improve the value of the business YOU'VE GOT game • • East and West Africa nearing execution of sale of 14 stores 15 non-core SA stores divestment process underway • Structural interventions underway to further reduce overhead costs • CVP interventions demonstrating performance uplift January FY22 performance 3.8% comp sales growth* ~-10% Perceived Price gap Sustaining SA gross profit margin at ~28% R41m Trading profit* better than LY 70% Net promotor score Televisions 19% Large appliances ~15% Small appliances ~17% Sports & Leisure ~55% Market share *Excludes West and East Africa and 15 non-core SA stores 28 26#29Our Strategic Journey Pivoting toward accelerated growth 2 1 Stabilise Through strong execution of our Turnaround plan Focus Divest non-core assets to drive sustainable profitable growth 3 Invest Accelerated growth in e-commerce, key categories & geographies 29#30Pursuing Growth Opportunities GM, Home Improvement and Wholesale Food and Liquor Market Leadership Best-in-class omni-channel retail "Powered by Walmart" Home Improvement & General Merchandise market leader Wholesale Food and Liquor mainstay Focusing our investment in: 1 2 E-commerce Store revitalisation 3 Footprint expansion Enriched end-to-end customer value proposition Massmart powered by Walmart >< 30#31Accelerating e-commerce Investing to become a leading B2C & B2B e-commerce destination Market Opportunity +20% yoy retail e-comm growth ~R66bn in retail e-comm sales by 2025, with ~60% sales in electronics and home & garden Our Positioning #1 overall position in GM categories #2 website traffic leader in SA Extensive store network and existing infrastructure YOU'VE GOT game Growth focus areas 50-65% GMV growth potential (5-year CAGR) WanDrop makro builders Leading websites and apps 15% e-comm participation rate* OneCart WumDrop Leading on-demand / last mile platforms 65%+ of deliveries within 1 day* Cooking Leading Marketplace 65x+ growth in shoppable range* *5 year target 31#32Capitalise on our Home Improvement leadership Refresh our stores and expand into untapped markets with our proven multi-format offering Market Opportunity ~R80bn Retail market ~R120bn total market (incl. B2B) ~+3% growth (21-’25 CAGR) 50+ whitespace opportunities Our Positioning #1 player in SA Quality, attractively priced, curated assortment Multi-format footprint Growth focus areas R1.9bn - R2.9bn sales growth potential* (5 years) wilders REHOUSE DAYS A WEEK exit Refresh our in-store experience Remodel >55% of our stores Sales uplift ~5% per store** K Expand our reach Grow our footprint by ~50% Growth potential R1.6bn - R2.5bn Win in Trade Disrupt building material retailing +10% growth potential *Remodels and new stores **Format dependent 32#33Elevate our winning Wholesale Food & Liquor position Leverage our cost advantage to capture untapped informal and formal market opportunities and strengthen our reach Market Opportunity R375bn+ wholesale market ~+3% growth ('21-'25 CAGR) fueled by underserved, independent retailers Growth focus areas Our Positioning #1 player in a fragmented market >5,000 points of presence; multiple banners and the buying power of Shield R11bn - R14bn sales growth potential (5 years) makro Refresh our in-store experience Remodel >50% of our stores (over 5 years) Growth potential of R1bn - R2bn 57 K Expand our reach Grow our Makro footprint by ~25% (over 5 years) Growth potential of R5bn - R7bn Empower the informal & B2B market Drive penetration through wholesale integration and an engaged customer relationship (mCard & customer analytics) Growth potential of ~R5bn+ 33#34• Inflection point in the delivery of Shareholder Value Addressed the impediments to past performance through our Turnaround plan Closing out portfolio actions to focus the business Strengthening Game to improve business value Pursuing growth opportunities to be the undisputed GM, Home Improvement and Wholesale Food and Liquor market leader Overweighting our investment in high return assets: • Expanded Builders and Makro footprint Revitalised Builders and Wholesale fleet Integrated retail and wholesale e-commerce proposition Massmart powered by Walmart << 34#35LONIZERING DIG nlaration Q&A Massmart powered by Walmart builders warstones to save you money. Price Cut mak Foods ONIWERS#36Additional information Makita Tokita Condensed Consolidated Income Statement Tax rate reconciliation Cash flow statement Capex per category Store portfolio Number of shares GO Thakita 1031 Our response to the civil unrest Management assumptions used Accounting loss from civil unrest Massmart powered by Walmart>< 77415 LAS VE 4100 TRAIES Machler Grinder LEY 1499 Makita BO3710 XT 3999 Thakita Thakita TIT 1999 Thakuta Thakita 299900 Thakita TILL makro Makita makn Makita Tunkite Router Defonceuse Rebajadors Obertase Фрезер 699 4599 makita Thakita 4199 Taakita Zakita HID.120 V DRIVER DRILL 1900 Makita Makita Router 119 Router Deforcesse Rebalader bajadors Oberfräse Фрезер RP0900 RP0900 回 回 Thakita HR2470 34mm(15/16) BY3K Thakita RYOBI. RYOBI. RYOBI. RYOBI. HAN YLIN ALD-120 (26) HANDYLINE HLD-120 HANDYLINE V DRIVER DRILL 69900 HANDYLINE HLD-120 6990 36 69900 69900 RYOBI RYOBI RYOBI RYOBI.#37Rm Revenue 52 weeks December 2021 (Reviewed) 78,655.4 52 weeks December2020 (Reviewed and Restated)* Period % change 77,808.7 1.1 Condensed consolidated income statement from continuing operations Extract from Reviewed Consolidated Results for the year ended 26 December 2021 Sales Cost of sales Cost of sales relating to civil unrest Gross profit Other income Other income relating to civil unrest Depreciation and amortisation Employment costs Occupancy costs Other operating costs Trading profit before interest and taxation Impairment of assets 77,621.6 77,568.5 0.1 (62,168.0) (61,644.8) (0.8) (970.9) 14,482.7 245.2 667.3 (100.0) 15,923.7 (9.0) 239.2 2.5 100.0 (2,569.4) (2,717.6) 5.5 (7,258.3) (7,217.0) (0.6) (1,024.5) (1,028.9) 0.4 (3,712.4) (3,586.4) (3.5) 830.6 1,613.0 (48.5) Retrenchment and business transformation costs (80.7) (107.8) 25.1 (749.6) (173.0) (333.3) Impairment of assets relating to civil unrest (210.7) (100.0) Insurance proceeds on items in PP&E 2.9 1.0 190.0 Insurance proceeds on items in PP&E relating to civil unrest 118.4 100.0 Operating (loss)/profit before foreign exchange movements and interest (89.1) 1,333.2 (106.7) Foreign exchange loss (178.5) (381.1) 53.2 Operating (loss)/profit before interest (267.6) 952.1 (128.1) Finance costs (1,704.0) (1,690.5) (0.8) - Finance income Net finance costs 8.6 (1,695.4) 41.1 (79.1) (1,649.4) (2.8) Loss before taxation Taxation Loss for the year from continuing operations (1,963.0) 385.3 (1,577.7) (697.3) (181.5) (330.6) 216.5 (1,027.9) (53.5) Discontinued operations Loss for the year from discontinued operations (626.2) (725.5) 13.7 Loss for the year (2,203.9) (1,753.4) (25.7) Basic EPS (cents) (1,029.9) (802.3) (28.4) Continuing operations Discontinued operations Diluted basic EPS (cents) Continuing operations Discontinued operations Dividend (cents): - Interim (741.6) (477.2) (55.4) (288.3) (325.1) 11.3 (1,029.9) (802.3) (28.4) (741.6) (477.2) (55.4) (288.3) (325.1) 11.3 - Final - Total Massmart powered by Walmart 37#38Tax rate reconciliation Limitation of the recognition of deferred tax assets relating to certain loss-making entities and disallowed expenditure % Tax rate reconciliation Dec 2021 (Reviewed) Dec 2020 (Reviewed) Standard tax rate 28.0 28.0 Disallowed expenses (1.6) (14.2) Assessed loss not utilised (6.2) (69.5) Other (0.6) 8.3 Group tax rate 19.6 (47.4) Continuing operations Massmart powered by Walmart 38#39Cash flow statement Rm Operating cash before working capital movements Working capital movements Cash generated in operations Net interest and tax paid Net investment to maintain operations Free cash (outflow)/inflow Dividends paid Dividends received Investment to expand operations and other net investing activities Cash (outflow)/inflow before financing activities Total Group Dec 2021 (Reviewed) Dec 2020 (Reviewed) 1,822.0 4,559.5 (1,304.9) (187.9) 517.1 4,371.6 (2,300.4) (1,812.9) (247.5) (269.9) (2,030.8) 2,288.8 (15.0) (39.9) 45.0 (949.3) (735.5) (2,950.1) 1,513.4 Massmart powered by Walmart > 39#40Capex per category Total capex 1.4% of total sales (2020: 1.2%) Rm Land and buildings/leasehold improvements Vehicles Fixtures, fittings, plant and equipment IT investment Investment to expand operations Dec 2021 (Reviewed) Dec 2020 (Reviewed) Percentage Change 307.8 356.1 (13.6) 1.0 0.2 400.0 425.2 141.9 199.6 168.5 266.0 (36.7) 902.5 764.2 18.1 0 36% Land and buildings/ 0% Vehicles 46% Fixtures, fittings, plant and equipment 18% IT investment leasehold improvements Land and buildings/leasehold improvements 101.4 64.9 56.2 Vehicles 2.4 2.1 14.3 Fixtures, fittings, plant and equipment 101.2 144.5 (30.0) IT investment 42.5 58.4 (27.2) Investment to maintain operations 247.5 269.9 (8.3) Total 1,150.0 1,034.1 11.2 Total Group Massmart powered by Walmart 40#41Store portfolio Or SOUR 408 Total Down from 423 in Dec 2020 146 118 56 Game Down from 149 in Dec 2020 Builders 120 in Dec 2020 Cambridge and Rhino Down from 63 in Dec 2020 22 66 Makro 22 in Dec 2020 Carry & Carry Down from 69 in Dec 2020 ↓15 Total 7 closed 9 sold 1 opened ↓3 ↓2 ↓7 Game 3 closed in South Africa Builders 3 closed in South Africa 1 opened in South Africa Cambridge and Rhino 7 sold in South Africa Total Group Makro No stores opened or closed ↓3 Carry & Carry 1 closed in South Africa 2 sold in South Africa Massmart powered by Walmart 41#42Number of shares At Dec 2020 Shares issued '000 219,138.8 At Dec 2021 219,138.8 Weighted-average at Dec 2021 (net of treasury shares) 216,127.4 Diluted weighted average at Dec 2021 225,775.5 Massmart powered by Walmart 42#43Our response to the civil unrest Recover. Rebuild. Re-open. Impact 45 facilities: 2 DCs: loss of imported stock • 43 stores • • 7 facilities significantly damaged due to arson 34 stores re-opened by end December Our response . • • · . Distributed 8,373 care packages to all associates in KZN Opened stores early to assist associates to shop and then open to the public Special paid leave to associates who could not work Re-allocated associates to other stores in stores that needed to be rebuilt Walmart and Massmart contributed R13 million to hunger relief organisations 200 tonnes of food donated to local communities FOOD FORWARD SA JD ORWARD SA FOOD FORWARD SA FOOD WARD SA FOOD FORWARD FOOD FORWARD SA OD DS Fea FOOD FORMARES ONE O ONIWAL 43#44Management assumptions used Estimated lost sales and estimated lost margin • The civil unrest lost sales impact was estimated at a store specific level. To estimate the impact, the YTD sales trends, prior to the civil unrest, of these stores were assessed; including the expected sales trend of that store, in comparison to underlying performance in 2020 and store level plans. Where it was noted that there were specific deflection of sales to neighbouring stores, the impact of deflected sales was also taken into account, effectively reducing the loss in sales estimate. Lost trading profit was calculated by applying the YTD average achieved margin for each store, up to the point of the civil unrest, to the estimated lost sales. The Covid-19 lost sales impact was estimated at a store specific level. To estimate the impact, we applied the expected sales trend of that store, in comparison to underlying performance in periods where trading was permitted and to store level plans. Where it was noted that there was a pent-up demand impact, this was also taken into account, effectively reducing the loss in sales estimate. Lost trading profit was calculated by applying the achieved margin for the period immediately preceding the restriction to the estimated lost sales value. • The information is provided only to allow for a more meaningful comparison of performance based on Management's best estimate. • This information on which our assumptions are based has not been reviewed and reported on by the Company's external auditors. Massmart powered by Walmart>< 44#45Accounting loss from civil unrest Inventory write-offs Rm 1,238.9 Other civil unrest-related expenses 65.1 Insurance proceeds related to inventory write-offs and other expenses - SASRIA and BI (799.2) Asset impairments 230.7 Insurance proceeds related to asset impairments - SASRIA (129.6) Total accounting loss 605.9 Total Group Massmart powered by Walmart >< 45