Beruflich Dokumente
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An
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Contents
Statement of Responsibility by the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Certificate of the Company Secretary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Directors Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Currency of the Annual Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Report of the Independent Auditor on the Consolidated and Separate Financial Statements
to the Shareholders of Shoprite Holdings Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Statement of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Statement of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Notes to the Annual Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Operating Segment Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Annexure A Interests in Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Annexure B Shareholder Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
The annual financial statements for the year ended June 2013 have been audited by PricewaterhouseCoopers Inc., in compliance with the applicable
requirements of the Companies Act, 2008. The preparation of the audited annual financial statements was supervised by Mr M Bosman, CA(SA).
The directors are responsible for the preparation and fair presentation of
the annual financial statements of the Company and Group, comprising the
directors report, the statements of financial position as at June 2013, the
statements of comprehensive income, changes in equity and cash flows for
the year then ended, and the notes to the financial statements, which
include a summary of significant accounting policies and other explanatory
notes, in accordance with International Financial Reporting Standards
(IFRSs) and the requirements of the Companies Act of South Africa.
The directors are satisfied that the information contained in the annual
financial statements fairly represents the financial position at year-end and
the financial performance and cash flows of the Company and Group.
The directors are also responsible for such internal control as the
directors determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud
CH Wiese
Chairman
JW Basson
Chief Executive Officer
PG du Preez
Company Secretary
19 August 2013
Directors Report
Shoprite Holdings Ltd and its Subsidiaries
NATURE OF BUSINESS
Shoprite Holdings Limited (Shoprite Holdings) is an investment holding
company listed on the Johannesburg Stock Exchange Limited (JSE) in the
food retailers & wholesalers sector. Secondary listings are also maintained
on the Namibian and Zambian Stock Exchanges.
supermarket premises or developing new shopping centres to accommodate one of the Groups supermarket formats. New retail developments and
the redevelopment of existing properties are supervised through every stage
of the planning-, design- and construction process.
FINANCIAL REVIEW
The Groups headline earnings per share amounts to 675,4 cents for the year
(2012: 607,0 cents). Details of the profit of Shoprite Holdings and its
subsidiaries are contained in the statement of comprehensive income on
page 7 with reference to the operating segment information on page 23.
The financial position of Shoprite Holdings and its subsidiaries are recorded
in the statement of financial position on page 6. Further details are
furnished in the notes to the annual financial statements on page 10 to 68.
The Groups net asset value per share as at 30 June 2013 was 2837 cents
(2012: 2382 cents).
DISTRIBUTION TO SHAREHOLDERS
PREFERENCE DIVIDENDS
Details are reflected in note 27 to the Groups Annual Financial Statements.
ORDINARY DIVIDENDS
An interim cash dividend (no. 128) of 123 cents per share was paid on
18March 2013. A final dividend (no. 129) of 215 cents per share, is payable
on 16 September 2013, bringing the total dividend for the year to 338 cents
(2012: 303 cents) per ordinary share.
SHARE CAPITAL
The authorised share capital of Shoprite Holdings remained unchanged at
650 000 000 (six hundred and fifty million) ordinary shares of 113,4 cents
(one hundred and thirteen comma four cents) each.
There was no movement in the number of issued Shoprite Holdings
ordinary shares which remained at 570 579 460 shares of 113,4 cents each.
On 28 June 2012, shareholders approved the issue of an additional
13803405 non-convertible, non-participating, no par value deferred shares
in the share capital of Shoprite Holdings to Thibault Square Financial
Services (Pty) Ltd pursuant to the issue of 27100000 ordinary shares during
the previous reporting period. These deferred shares were however only
issued on 25 July 2012.
As at 30 June 2013, 35 436 472 (6,2%) ordinary shares were held as
treasury shares by a wholly owned subsidiary of Shoprite Holdings.
GOING CONCERN
The annual financial statements of the Group were prepared on a going
concern basis.
The Board has performed a formal review of the Groups results and its
ability to continue trading as a going concern in the foreseeable future.
The directors of Shoprite Holdings confirm that they are satisfied that
the Group has adequate resources to continue in business for the
foreseeable future.
During the reporting period the following special resolutions were passed
by main Group subsidiaries:
BORROWINGS
The directors names and details are furnished on pages 8 and 9 and the
company secretarys name, business and postal address on page 67 of the
Integrated Report.
In terms of the Memorandum of Incorporation of Shoprite Holdings
(the MOI), no less than one third of the non-executive directors shall retire
by rotation at each Annual General Meeting.
Dr CH Wiese, Messrs EC Kieswetter, JA Louw and JF Malherbe retire as
directors, in terms of paragraph 33.5.1 of the MOI of the Company, at the
Annual General Meeting. Dr CH Wiese, Messrs EC Kieswetter and JALouw
have offered themselves for re-election as directors of Shoprite Holdings.
The board supports the re-election of these directors.
SPECIAL RESOLUTIONS
At the Annual General Meeting of Shoprite Holdings held on 29 October
2012, shareholders approved the following special resolutions:
Special resolution number 1: Remuneration payable to Non-Executive
Directors;
Special resolution number 2: Financial Assistance to Subsidiaries,
Related and inter-related entities;
Special resolution number 3: Financial Assistance for Subscription of
Securities;
Special resolution number 4: General Approval to repurchase shares;
and
Special resolution number 5: Approval of new Memorandum of
Incorporation as proposed by the Board.
CH Wiese
JW Basson
JJ Fouch
CG Goosen
B Harisunker
AE Karp
EC Kieswetter
JA Louw
JF Malherbe
EL Nel
ATM Mokgokong
JG Rademeyer
JA Rock
BR Weyers
JAL Basson
M Bosman
PC Engelbrecht
JD Wiese
Direct
Beneficial
0
0
472 171
3 000
407 379
147 269
1 850
0
0
0
0
0
0
404 594
3 070
65 000
130 000
0
Indirect
Beneficial
85627 398
9994 122
0
1 203 202
0
0
0
50 000
72 453
148 727
0
10 000
0
0
86 131
60 000
200 000
14 074
Total
2013
85627 398
9994 122
472 171
1 206 202
407 379
147 269
1 850
50 000
72 453
148 727
0
10 000
0
404 594
89 201
125 000
330 000
14 074
Total
2012
95649 698
10 071 652
472 171
1 206 202
406 189
147 269
1 000
50 000
72 453
148 727
0
10 000
0
404 594
89 201
125 000
274 622
14 074
CH Wiese
Total
2013
290 625 071
Total
2012
276 821 666
CORPORATE GOVERNANCE
Statements of the Boards application of the codes of good corporate
governance are set out in the Corporate Governance Report on pages 25 to
28 of the Integrated Report, which forms part of this directors report, and
the Remuneration Report on pages 33 to 39 of the Integrated Report.
BOARD COMMITTEES
The reports of the various board committees are included in the Integrated
Report on pages 29 to 39.
AUDITORS
PricewaterhouseCoopers Incorporated will continue in office in accordance
with Section 90(1) of the Companies Act.
HOLDING COMPANY
Shoprite Holdings has no holding company. An analysis of the main
shareholders appears on page 70 of the Annual Financial Statements.
LITIGATION STATEMENT
During the reporting period, the dispute between the Group and SAB Miller
Plc related to the termination of certain OK Bazaars (1929) Ltd lease agreements was determined in the Groups favour whilst the dispute related to
the closing date accounts of OK Bazaars is still in the process of being
determined through arbitration.
The investigation initiated during June 2009 by the Competition
Commission of South Africa (the Commission) into the alleged anticompetitive conduct of various food retailers which includes the Groups
main trading subsidiary, Shoprite Checkers (Pty) Ltd, is still on-going with no
referral of any of the complaints investigated to the Competition Tribunal
to date.
The referral by the Commission of the complaint of alleged abuse of
dominance against Computicket (Pty) Ltd must still be heard by the
Competition Tribunal.
The claim instituted in the High Court of Lagos by AIC Limited during
April 2010 against the Groups main trading subsidiary, Shoprite Checkers
(Pty) Ltd and its Nigerian subsidiary, Retail Supermarkets Nigeria Ltd, on the
basis of alleged breach of contract proceeded to trial during March 2013.
Save as recorded above, the directors are not aware of any legal or
arbitration proceedings, including proceedings that are pending or
threatened, that may have or have had in the recent past, being at least the
previous twelve (12) months, a material effect on the Groups financial
position.
USA dollar
Pound sterling
Euro
Zambia kwacha
Mozambique metical
Botswana pula
2013
2012
9.959
15.214
13.017
1.816
0.331
1.160
8.297
12.953
10.443
0.002
0.293
1.078
Uganda shilling
Malawi kwacha
Mauritius rupee
Angola kwanza
India rupee
Ghana cedi
2013
2012
0.004
0.030
0.320
0.103
0.166
4.912
0.003
0.031
0.266
0.087
0.147
4.311
Madagascar ariary
Nigeria naira
Tanzania shilling
DRC franc
2013
2012
0.005
0.062
0.006
0.011
0.004
0.051
0.005
0.009
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated and separate financial statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the consolidated and
separate financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors judgement, including the assessment of
the risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entitys preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entitys internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the
OPINION
In our opinion, the consolidated and separate financial statements present
fairly, in all material respects, the consolidated and separate financial position of Shoprite Holdings Limited as at 30 June 2013, and its consolidated
and separate financial performance and its consolidated and separate cash
flows for the year then ended in accordance with International Financial
Reporting Standards and the requirements of the Companies Act of South
Africa.
PricewaterhouseCoopers Inc.
Director: A Wentzel
Registered Auditor
Cape Town
19 August 2013
6
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
3
5
6
7
8
9
10
11 713 741
130 455
10 325
425 381
1 039 192
12 204
13 331 298
9 668 559
103 886
3 706
413 645
894 296
10 573
11 094 665
11
12
13
10 317 417
3 427 785
23 576
174 545
18 908
6 138 671
20 100 902
8 680 109
2 880 439
81 190
16 197
7 939 333
19 597 268
57 071
391 993
33 489 271
31 083 926
647 328
3 672 069
(320 146)
11 184 825
15 184 076
68 194
15 252 270
647 314
3 672 069
(320 146)
8 745 805
12 745 042
62 675
12 807 717
16
8
17
18
19
3 823 371
197 135
253 833
577 271
279
4 851 889
4 006 698
152 085
338 791
520 206
21 878
5 039 658
19
16
13
12 723 129
327 755
186 666
133 561
7 567
6 434
13 385 112
18 237 001
33 489 271
12 890 112
28 736
231
151 025
138 634
22 858
4 955
13 236 551
18 276 209
31 083 926
Notes
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Interests in subsidiaries
Investment in associate
Loans and receivables
Deferred income tax assets
Intangible assets
Fixed escalation operating lease accrual
2 305 512
363
2 305 875
2 368 833
657
2 369 490
15 327
74 237
3 387 853
3 477 417
40 946
1 696 519
2 404 854
4 142 319
5 783 292
6 511 809
TOTAL ASSETS
CURRENT ASSETS
Inventories
Trade and other receivables
Derivative financial instruments
Current income tax assets
Interests in subsidiaries
Loans and receivables
Cash and cash equivalents
5
7
EQUITY
647 314
3 672 069
1 425 607
5 744 990
5 744 990
647 328
3 672 069
2 180 788
6 500 185
6 500 185
2 450
2 450
2 450
2 450
24 975
7 028
3 849
35 852
38 302
5 783 292
2 476
1 832
4 866
9 174
11 624
6 511 809
14
14
15
NON-CONTROLLING INTEREST
TOTAL EQUITY
LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
Deferred income tax liabilities
Provisions
Fixed escalation operating lease accrual
Trade and other payables
CURRENT LIABILITIES
Trade and other payables
Borrowings
Derivative financial instruments
Current income tax liabilities
Provisions
Bank overdrafts
Shareholders for dividends
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
17
7
COMPANY
GROUP
June
2012
R000
June
2013
R000
1 655 057
(8 937)
1 646 120
1 646 120
64 438
(126)
1 710 432
(114 556)
1 595 876
2 495 373
(20 034)
2 475 339
(20 042)
2 455 297
160 490
(126)
2 615 661
(52 727)
2 562 934
1 595 876
2 562 934
1 595 876
1 595 876
2 562 934
2 562 934
1 595 876
1 595 876
2 562 934
2 562 934
Notes
Sale of merchandise
Cost of sales
GROSS PROFIT
Other operating income
Depreciation and amortisation
Operating leases
Employee benefits
Other expenses
TRADING PROFIT
Exchange rate losses
Items of a capital nature
OPERATING PROFIT
Interest received
Finance costs
Share of profit of associate
PROFIT BEFORE INCOME TAX
Income tax expense
PROFIT FOR THE YEAR
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX
Items that may be reclassified subsequently to profit or loss
Fair value movements on available-for-sale investments
Foreign currency translation differences
Share of foreign currency translation differences of associate
20
21
22
23
26
24
27
6
28
15
15
15
29
June
2013
R000
June
2012
R000
92 747 314
(73 316 296)
19 431 018
2 608 352
(1 350 915)
(2 234 306)
(7 195 133)
(5 864 787)
5 394 229
(3 793)
(31 400)
5 359 036
259 050
(429 185)
4 952
5 193 853
(1 578 545)
3 615 308
82 730 587
(65 752 642)
16 977 945
2 325 312
(1 090 295)
(1 940 221)
(6 530 468)
(5 077 139)
4 665 134
(8 343)
(93 687)
4 563 104
142 166
(223 563)
4 481 707
(1 438 889)
3 042 818
537 727
237 480
516 110
21 617
(51 219)
288 699
4 153 035
3 280 298
3 597 711
17 597
3 615 308
3 026 563
16 255
3 042 818
4 135 438
17 597
4 153 035
3 264 043
16 255
3 280 298
672.3
590.0
8
Attributable to equity holders
R000
Notes
NonTotal controlling
equity
interest
Total
Share
capital
Share
premium
Treasury
shares
Other
reserves
Retained
earnings
GROUP
BALANCE AT JUNE 2011
7 143 450
58 750
7 084 700
616 583
293 072
(337 406)
4 928
6 507 523
3 280 298
3 042 818
16 255
16 255
3 264 043
3 026 563
237 480
3 026 563
3 026 563
15
(59 557)
(59 557)
(59 557)
15
15
8 338
288 699
8 338
288 699
8 338
288 699
15
14
333 880
3 409 728
74 289
(1 433 928)
12 807 717
333 880
3 409 728
74 289
15
4 153 035
3 615 308
17 597
17 597
4 135 438
3 597 711
333 880
30 731
3 378 997
17 260
(33 536)
647 314
3 672 069
(320 146)
542 752
537 727
15
537 727
537 727
14
14
(1 708 496)
15 252 270
14
(12 078) (1 696 418)
68 194 15 184 076
647 328
3 672 069
2 257 229
2 257 229
616 583
293 072
1 595 876
1 595 876
3 409 728
(1 517 843)
5 744 990
3 409 728
(1 517 843)
5 744 990
2 562 934
2 562 934
14
(1 807 753)
6 500 185
14
(1 807 753)
6 500 185
57 029
33 536
(1 421 598)
8 203 053
3 597 711
3 597 711
537 727
14
(320 146) 1 080 479
(1 696 418)
10 104 346
COMPANY
14
14
2 152
1 345 422
1 595 876
30 731
3 378 997
647 314
3 672 069
2 152
(1 517 843)
1 423 455
2 562 934
14
647 328
3 672 069
2 152
(1 807 753)
2 178 636
9
COMPANY
GROUP
June
2012
R000
June
2013
R000
89 042
1 646 120
(1 652 535)
8 521
2 106
77 728
(126)
1 639 245
(1 518 010)
(111 901)
722 632
2 455 297
(2 433 712)
20 042
(48 118)
(6 491)
180 718
(126)
2 413 484
(1 806 736)
(58 217)
(714 472)
3 409 728
2 784 298
603 555
3 387 853
(1 705 645)
14
(982 999)
3 387 853
2 404 854
3 387 853
3 387 853
2 404 854
2 404 854
Notes
Consisting of:
Cash and cash equivalents
Bank overdrafts
31.1
31.2
31.3
31.4
31.5
31.6
June
2013
R000
June
2012
R000
1 147 619
5 359 036
(38 742)
1 585 103
(534 727)
(1 893 161)
4 477 509
283 494
(326 569)
14 298
(1 707 017)
(1 594 096)
3 334 804
4 563 104
(82 259)
1 714 522
(287 540)
(1 779)
649 234
6 555 282
159 024
(125 745)
65 401
(1 433 824)
(1 885 334)
(3 038 893)
13 052
(1 878 222)
7 916 475
92 851
3 387 853
(3 110 892)
7 767 685
7 991 597
(80 549)
5 427
2 404 854
6 138 671
(7 567)
6 131 104
7 939 333
(22 858)
7 916 475
10
1. ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the consolidated financial statements are set out below and are consistent with
those applied in the previous year, unless otherwise stated.
The consolidated Groups and separate Companys financial statements were authorised for issue by the board of directors on 19 August 2013.
Other than the facts in the Integrated Report, there have been no material changes in the affairs or financial position of the Group and its
subsidiaries from 30 June 2013 that have an impact on the financial results or disclosures in these annual financial statements.
11
1.2 CONSOLIDATION
1.2.1 Subsidiaries
Subsidiaries are entities (including special purpose entities) which are, directly or indirectly, controlled by the Group. Control is established where
the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The existence and
effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another
entity. The acquisition method of accounting is used to account for business combinations.
The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the
date of exchange. Identifiable assets acquired as well as liabilities and contingent liabilities assumed in a business combination are measured initially
at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The excess of the cost of the acquisition over
the fair value of the Groups share of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the cost of the acquisition is
less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the statement of comprehensive income.
A subsidiary is consolidated from the date on which control is transferred to the Group and is no longer consolidated from the date that the control
ceases. Where necessary, accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by the Group. All
intergroup transactions, balances and unrealised gains and losses on transactions between Group companies have been eliminated.
1.2.3 Associates
Associates are those entities over which the Group exercises significant influence but not control. Significant influence is presumed to exist when
the Group holds between 20% and 50% of the voting rights of another entity. The Groups investments in associates are accounted for using the
equity method and are initially recognised at cost. Investments in associates include goodwill identified on acquisition, net of any accumulated
impairment losses.
The Groups share of post-acquisition profit or loss and its share of post-acquisition movements in other comprehensive income are recognised
in the statement of comprehensive income and in other comprehensive income respectively, with a corresponding adjustment to the carrying
amount of the investment, from the date that significant influence commences until the date that significant influence ceases. When the Groups
share of losses in an associate equals or exceeds its investment in the associate, the Group does not recognise further losses, unless it has incurred
legal or constructive obligations or made payments on behalf of the associate. Where applicable, accounting policies applied by associates have
been changed to ensure consistency with the policies adopted by the Group.
12
13
Useful lives:
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 years
Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 to 10 years
Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 to 10 years
Trolleys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 years
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 to 10 years
Computer equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 to 5 years
Aeroplane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 years
The cost of major refurbishments is capitalised as property, plant and equipment to the extent that it can be recovered from future use of the
assets. The capitalised amounts are depreciated over the relevant write-off periods. All other repairs and maintenance are charged to the statement
of comprehensive income during the period in which these are incurred.
An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated
recoverable amount.
Gains and losses on disposal or scrapping of property, plant and equipment, being the difference between the net proceeds on disposal or scrapping and the carrying amount, are recognised in the statement of comprehensive income.
14
as part of other income. Dividends on available-for-sale equity instruments are recognised in the statement of comprehensive income as part of
other income when the Groups right to receive payments is established.
The fair value of these investments is based on quoted transaction prices (for listed investments) or the underlying net asset value or appropriate
valuation models (for unlisted investments). If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair
value by using recognised valuation techniques.
For the purposes of impairment testing a significant or prolonged decline in the fair value of the equity instrument below its cost is considered
as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss measured as
the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in
profit or loss is removed from equity and recognised in the statement of comprehensive income. Impairment losses on equity instruments recognised in the statement of comprehensive income are not reversed through the statement of comprehensive income.
15
1.12.2 Software
Software represents all costs incurred to acquire the assets and bring it into use. These costs are amortised over the estimated useful life of the
relevant software, being between three and seven years, on a straight-line basis.
Costs associated with implementing or maintaining software are recognised as an expense when incurred. Costs that are directly associated with
the purchase and customisation of identifiable and unique software controlled by the Group, and that will probably generate future economic
benefits beyond one year, are recognised as intangible assets. Direct costs include the software development employee costs and an appropriate
portion of relevant overheads.
Softwares useful lives are reviewed at each statement of financial position date. If appropriate, adjustments are made and accounted for
prospectively as a change in estimate.
1.12.3 Trademarks
Acquired trademarks and licences are initially shown at historical cost and trademarks and licences acquired in a business combination are
recognised at fair value at the acquisition date. Trademarks have a finite useful life and are subsequently measured at cost less accumulated amortisation and impairment losses. Amortisation is calculated using the straight-line method to allocate the cost of trademarks and licences over their
estimated useful lives, being 16 to 20 years. The useful lives are reviewed at each statement of financial position date. If appropriate, adjustments are
made and accounted for prospectively as a change in estimate.
1.14 INVENTORIES
Trading inventories are stated at the lower of cost, using the weighted average cost formula, and net realisable value. The weighted average cost
formula is determined by applying the retail inventory method. The cost of merchandise is the net of: invoice price of merchandise; insurance;
freight; customs duties; an appropriate allocation of distribution costs; trade discounts; rebates and settlement discounts. The retail method approximates the weighted average cost and is determined by reducing the sales value of the inventory by the appropriate percentage gross margin. The
percentage used takes into account inventory that has been marked down below original selling price. An average percentage per retail department
is used. Net realisable value is the estimated selling price in the ordinary course of business.
1.16 LEASES
1.16.1 Where the Group is the lessee
Leases of assets under which a significant portion of the risks and rewards of ownership are effectively retained by the lessor are classified as operating leases. Certain premises and other assets are leased. Payments made in respect of operating leases with a fixed escalation clause are charged to
16
the statement of comprehensive income on a straight-line basis over the lease term. All other lease payments are expensed as they become due.
Incentives paid to enter into a lease agreement are expensed in the statement of comprehensive income as operating lease expense over the lease
term. Minimum rentals due after year-end are reflected under commitments.
When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is
recognised as an expense and any unamortised portion of the fixed escalation lease accrual is recognised in the statement of comprehensive income
in the period in which termination takes place.
1.19 BORROWINGS
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost and any
difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement of comprehensive income over
the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has the unconditional right to defer settlement of the liability for at least 12 months after the statement of financial position date.
Preference shares, which carry non-discretionary dividend obligations, are classified as non-current liabilities at amortised cost. Amortised cost is
calculated using the effective interest yield method. The dividends on these preference shares are recognised in the statement of comprehensive
income as finance costs.
1.20 PROVISIONS
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be
made. The Group has discounted provisions to their present value where the effect of the time value of money is material. The notional interest
charge representing the unwinding of the provision discounting is included in the statement of comprehensive income.
17
18
19
20
Contracts under which the Group accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder or other beneficiary if a specified uncertain future event (the insured event) adversely affects the policyholder or other beneficiary, are
classified as insurance contracts.
An insurance risk is deemed significant if, and only if, an insured event could cause an insurer to pay significant additional benefits in any
scenario, excluding scenarios that lack commercial substance. If significant additional benefits would be payable in scenarios that have commercial
substance, the condition in the previous sentence may be met even if the insured event is extremely unlikely or even if the expected (i.e. probability
weighted) present value of contingent cash flows is a small proportion of the expected present value of all the remaining contractual cash flows.
21
Operating segments, which display similar economic characteristics and have similar products, services, customers, methods of distribution and
regulatory environments are aggregated for reporting purposes.
The Group has the following four reportable segments:
1. Supermarkets RSA: all retail operations under the Shoprite, Checkers, Checkers Hyper, Usave and Hungry Lion brands in South Africa, retailing
products such as food, clothing, general merchandise, cosmetics and liquor.
2. Supermarkets Non-RSA: all retail operations under the Shoprite, Checkers, Checkers Hyper, Usave and Hungry Lion brands outside of South
Africa, retailing products such as food, clothing, general merchandise, cosmetics and liquor.
3. Furniture: all retail operations under the OK Furniture, OK Power Express and House & Home brands trading in RSA and Non-RSA, retailing
products such as furniture, household appliances and home entertainment systems for cash or credit.
4. Other operating segments: all other operations not included in the above segments, trading in RSA and Non-RSA, including franchise operations
and retail and wholesale of pharmaceutical products.
These segments were identified and grouped together using a combination of the products and services offered by the segments and the
geographical areas in which they operate.
The amounts reported to the chief operating decision maker are measured in a manner consistent with that in the statement of comprehensive
income and statement of financial position.
1.34 STANDARDS, INTERPRETATIONS AND AMENDMENTS THAT ARE NOT YET EFFECTIVE AT JUNE 2013
The Group has considered the following new standards, and interpretations and amendments to existing standards, which are not yet effective as at
June 2013:
Number
Amendments to IFRS 1
Amendments to IFRS 7
IFRS 9
IFRS 10
IFRS 11
IFRS 12
IFRS 13
Amendments to IFRS 10, IFRS 12 and
IAS 27
Amendments to IAS 19
Amendments to IAS 27
Amendments to IAS 28
Amendments to IAS 32
Various
IFRIC 20
Title
First-time Adoption on Government Loans
Disclosures Offsetting Financial Assets and Financial Liabilities
Financial Instruments
Consolidated Financial Statements
Joint Arrangements
Disclosure of Interests in Other Entities
Fair Value Measurement
Investment Entities
Employee Benefits
Separate Financial Statements
Investments in Associates and Joint Ventures
Offsetting Financial Assets and Financial Liabilities
Improvements to IFRSs 2011
Stripping Costs in the Production Phase of a Surface Mine
June 2015
June 2014
June 2014
June 2014
June 2015
June 2014
June 2014
The Group has not early adopted any of the above and the application thereof in future financial periods is not expected to have a significant
impact on the Groups reported results, financial position and cash flows.
IFRS 11: Joint Arrangements eliminates the existing policy choice of proportionate consolidation for jointly controlled entities. Equity accounting
becomes mandatory for participants in joint ventures. When transitioning from the proportionate consolidation method to the equity method, the
Group should recognise their initial investment in the joint venture as the aggregate of the carrying amounts that were previously proportionately
consolidated. The Groups interests in joint ventures are disclosed in note 41.
IFRS 12: Disclosure of Interests in Other Entities requires increased disclosures that help financial statement readers to evaluate the nature, risks and
financial effects associated with the Groups interests in subsidiaries, associates, joint arrangements and unconsolidated structured entities.
Revised IAS 28: Investments in Associates and Joint Ventures now includes the requirements for joint ventures, as well as associates, to be equity
accounted following the issue of IFRS 11.
22
Title
Presentation of Financial Statements
Deferred Tax: Recovery of Underlying Assets
The amendments to IAS 1 required adjustments to disclosures. It introduces new requirments relating to the presentation of financial statements.
Items presented in other comprehensive income are now separated into two groups, based on whether or not they may be recycled to profit or loss
in the future.
23
2 OPERATING SEGMENT INFORMATION
2.1 ANALYSIS PER REPORTABLE SEGMENT
June 2013
Furniture
R000
Other
operating
segments
R000
Consolidated
R000
11 729 237
5 751
11 734 988
3 561 555
3 561 555
6 530 977
6 530 977
92 747 314
2 127 140
94 874 454
4 503 439
612 628
130 652
147 510
5 394 229
1 216 234
203 532
48 841
21 163
1 489 770
22 305 523
6 322 377
3 021 476
1 839 895
33 489 271
Consolidated
R000
Supermarkets
RSA
R000
Supermarkets
Non-RSA
R000
70 925 545
2 121 389
73 046 934
Trading profit
Depreciation and amortisation
Sale of merchandise
External
Inter-segment
Total assets
June 2012
Sale of merchandise
External
Inter-segment
Trading profit
Depreciation and amortisation
Total assets
Supermarkets
RSA
R000
Supermarkets
Non-RSA
R000
Furniture
R000
Other
operating
segments
R000
64 584 215
1 749 501
66 333 716
9 174 147
4 949
9 179 096
3 400 185
3 400 185
5 572 040
5 572 040
82 730 587
1 754 450
84 485 037
3 887 334
466 277
175 492
136 031
4 665 134
992 998
144 550
44 152
18 406
1 200 106
22 312 020
4 527 078
2 564 750
1 680 078
31 083 926
South Africa
R000
June 2013
Outside
South Africa
R000
Consolidated
R000
79 792 343
12 954 971
92 747 314
9 964 499
2 800 638
12 765 137
South Africa
R000
June 2012
Outside
South Africa
R000
Consolidated
R000
72 492 035
10 238 552
82 730 587
8 473 336
2 100 092
10 573 428
Shoprite Holdings Ltd has reassessed its chief operating decision maker during the current year and determined it to be the executive members
of the Board of Directors. Previously the chief operating decision maker was considered to be the Board of Directors. The aforementioned
change has not resulted in any change to the segmental information presented.
24
3 PROPERTY, PLANT AND EQUIPMENT
3.1 RECONCILIATION OF CARRYING VALUES
Land
Buildings
Machinery,
equipment and
vehicles*
827 698
827 698
2 385 365
2 540 157
(154 792)
4 360 314
7 780 263
(3 419 949)
595 372
828 105
(232 733)
8 168 749
11 976 223
(3 807 474)
Additions
Reclassification
Reclassification to software
Transfer to assets held for sale (note 4)
Acquisition of operations (note 31.5.2)
Disposal
Proceeds on disposal
Profit/(loss) on disposal and scrapping
Depreciation
Reversal of impairment (note 3.2)
Impairment (note 3.2)
Exchange rate differences
Carrying value at June 2012
Cost
Accumulated depreciation and impairment
294 974
(63 189)
(12 099)
(12 945)
846
(281)
17 945
1 065 048
1 065 048
626 131
(52 515)
(254 345)
(37 129)
(37 855)
726
(36 506)
(20 487)
86 708
2 697 222
2 902 799
(205 577)
1 773 152
186
(17 153)
19 788
(56 539)
(34 341)
(22 198)
(1 021 822)
16 720
(13 443)
60 892
5 122 095
9 023 982
(3 901 887)
218 090
52 329
(15 800)
(57 047)
(64 173)
7 126
(74 298)
65 548
784 194
1 081 961
(297 767)
2 912 347
(17 153)
(333 334)
19 788
(162 814)
(149 314)
(13 500)
(1 132 907)
16 720
(33 930)
231 093
9 668 559
14 073 790
(4 405 231)
Additions
Reclassification
Transfer from assets held for sale (note 4)
Acquisition of operations (note 31.5.2)
Disposal
Proceeds on disposal
Profit/(loss) on disposal and scrapping
Depreciation
Reversal of impairment (note 3.2)
Impairment (note 3.2)
Exchange rate differences
Carrying value at June 2013
Cost
Accumulated depreciation and impairment
16 032
443
13 783
(7 913)
(7 913)
(281)
22 383
1 109 495
1 109 495
601 335
(12 710)
154 642
(104 466)
(112 064)
7 598
(44 305)
7 455
(46 991)
110 374
3 362 556
3 664 142
(301 586)
2 261 453
8 704
13 740
(68 838)
(34 305)
(34 533)
(1 229 356)
25
(2 927)
112 479
6 217 375
10 513 959
(4 296 584)
191 313
3 563
(2 569)
(2 550)
(19)
(73 773)
11 856
109 731
1 024 315
1 362 688
(338 373)
3 070 133
168 425
13 740
(183 786)
(156 832)
(26 954)
(1 347 715)
19 336
(49 918)
354 967
11 713 741
16 650 284
(4 936 543)
GROUP
R000
Carrying value at June 2011
Cost
Accumulated depreciation and impairment
*Includes aircraft with a carrying value of R88 million (2012: R92 million).
Leasehold
improvements
Total
25
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
Carrying value
It is the Groups policy to invest in fixed property only when appropriate rental space is not available. Certain land and buildings in the
Supermarkets RSA operating segment, have been reclassified as assets
held for sale as the Group periodically re-evaluates its fixed property
holdings in line with this policy. The Group is currently in the process
of actively seeking buyers for these properties.
During the current financial year certain properties were transferred
back to property, plant and equipment. The sale of these properties
were reconsidered as it was no longer economically viable. This
decision to reclassify had no significant effect on the Groups results.
57 071
391 993
26
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
862 499
1 443 013
74 237
2 379 749
925 820
1 443 013
1 696 519
4 065 352
2 305 512
74 237
2 379 749
2 368 833
1 696 519
4 065 352
391 993
(168 425)
(170 099)
(212 045)
41 946
3 602
57 071
58 659
333 334
391 993
5 INTERESTS IN SUBSIDIARIES
Investments in ordinary shares
Investments in preference shares
Amounts owing by subsidiaries
27
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
6 INVESTMENT IN ASSOCIATE
Investment in Winhold Ltd
Investment in ordinary shares
Share of post-acquisition profits
124 892
5 563
130 455
103 886
103 886
103 886
4 952
21 617
130 455
103 886
103 886
568 223
297 093
1 372 111
10 105
230 326
18 557
1 183 768
8 084
28 286
947
29 233
18 924
979
19 903
10 325
18 908
29 233
3 706
16 197
19 903
28
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
30 986
(2 700)
28 286
30 024
(11 100)
18 924
11 100
(8 400)
2 700
11 698
642
(1 240)
11 100
1 847
3 612
5 459
6 870
6 982
911
14 763
29
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
363
657
657
237
126
126
363
363
294
294
657
363
363
657
657
363
363
657
657
425 381
(197 135)
228 246
413 645
(152 085)
261 560
261 560
(42 163)
7 136
(94 538)
24 708
(1 212)
(4 407)
4 259
23 299
(1 408)
8 849
228 246
301 080
90 135
84 681
(26 421)
8 325
1 909
11 581
2 976
7 088
(4)
8 338
(136 249)
(1 744)
261 560
589 979
(357 214)
183 234
(67 851)
3
27 185
50 045
425 381
355 701
(280 146)
143 990
(23 413)
170 247
16 298
30 968
413 645
(346 124)
771 505
425 381
(90 251)
503 896
413 645
143 094
99 659
(1 188)
(2)
(17 063)
(27 365)
197 135
95 071
86 684
(7 576)
624
(17 078)
(5 640)
152 085
202 759
(5 624)
197 135
171 168
(19 083)
152 085
30
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
9 INTANGIBLE ASSETS
Goodwill (note 9.1)
Software (note 9.2)
Trademarks (note 9.3)
Customer relationships (note 9.4)
236 222
724 706
43 391
34 873
1 039 192
191 536
615 453
47 069
40 238
894 296
191 536
321 534
(129 998)
56 500
(13 585)
1 771
236 222
385 598
(149 376)
180 981
217 269
(36 288)
25 634
46 857
(61 605)
(331)
191 536
321 534
(129 998)
%
5.2
6.0
10.5
%
6.7
6.0
11.4
%
3.2
6.0
7.6
%
5.7
6.0
8.3
9.1 GOODWILL
Carrying value at the beginning of the year
Gross amount
Impairment losses
Acquisition of subsidiaries (note 31.5.1)
Acquisition of operations (note 31.5.2)
Impairment (note 9.1.1)
Exchange rate differences
Carrying value at the end of the year
Gross amount
Impairment losses
These key assumptions are used for the analysis of each CGU within the
geographical segment. Management determines budgeted sales growth
rates and gross profit margins based on past performance and its expectations of the retail market within the relevant country or area. The discount rates used reflect specific risks relating to the relevant segments.
The impairment charge in the current financial year arose in CGUs in the
Supermarkets RSA and Other (2012: Supermarkets RSA, Supermarkets
Non-RSA and Other) operating segments. This impairment was the result
of a significant reduction in the future expected sales due to a weakening in the general economic conditions in which these CGUs operate.
31
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
615 453
782 598
(167 145)
40 356
201 878
(33)
(1)
(32)
(133 012)
64
724 706
1 008 144
(283 438)
451 143
574 714
(123 571)
56 159
149 263
17 153
(95)
(1)
(94)
(58 223)
53
615 453
782 598
(167 145)
47 069
193 640
(146 571)
(3 678)
43 391
193 640
(150 249)
41 378
177 756
(136 378)
9 302
(3 611)
47 069
193 640
(146 571)
40 238
53 650
(13 412)
(5 365)
34 873
53 650
(18 777)
45 603
53 650
(8 047)
(5 365)
40 238
53 650
(13 412)
12 408
(204)
12 204
11 504
(931)
10 573
10 317 417
8 680 109
9.3 TRADEMARKS
11 INVENTORIES
Trading goods
32
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
15 327
15 327
40 946
40 946
1 452 657
(152 514)
(43 493)
1 256 650
1 315 265
463 646
343 537
204
48 483
3 427 785
1 283 036
(135 712)
(33 335)
1 113 989
1 205 979
339 839
196 883
931
22 818
2 880 439
952 318
500 339
1 452 657
837 879
445 157
1 283 036
135 712
73 941
(68 304)
12 704
1 731
(3 270)
152 514
118 029
161 878
(153 834)
9 702
1 298
(1 361)
135 712
28 534
17 745
13 122
10 233
8 163
6 632
38 700
123 129
23 302
14 404
10 564
8 217
6 638
5 451
34 391
102 967
33
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
1 470 620
(155 355)
1 315 265
1 316 460
(110 481)
1 205 979
110 481
50 360
(9 150)
4 575
(911)
155 355
94 200
27 245
(6 759)
118
(4 323)
110 481
34
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
40 946
463 646
339 839
48 483
22 818
23 576
231
(491 945)
503 617
(308 808)
302 177
(58 714)
59 027
(68 524)
67 419
35
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
647 037
647 037
Issued:
570 579 460 (2012: 570 579 460) ordinary shares of 113.4 cents each
Reconciliation of movement in number of ordinary shares issued:
Number of shares
June
June
2013
2012
Balance at the beginning of the year
570 579 460
543 479 460
Shares issued during the year
27 100 000
Balance at the end of the year
570 579 460
570 579 460
Details of the shareholder spread and major shareholders are
disclosed in Annexure B.
Treasury shares held by Shoprite Checkers (Pty) Ltd are netted off
against share capital on consolidation. The net number of ordinary
shares in issue for the Group are:
Number of shares
June
June
2013
2012
Issued ordinary share capital
570 579 460
570 579 460
Treasury shares (note 14.3)
(35 436 472)
(35 436 472)
535 142 988
535 142 988
The unissued ordinary shares are under the control of the directors
who may issue them on such terms and conditions as they deem fit
until the Companys next annual general meeting.
All shares are fully paid up.
Details of special resolutions passed by the Company and its
subsidiaries during the reporting period are provided in the directors
report. Full details are provided in the notice to shareholders in the
Integrated Report.
647 037
647 037
36
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
277
291
Issued:
290 625 071 (2012: 276 821 666) non-convertible, non-participating
no par value deferred shares
291
277
647 328
647 314
320 146
320 146
647 328
(506 036)
Movement in shares held by
Shoprite Checkers (Pty) Ltd
Shares purchased during the year
506 036
Shares loss during the year
(1 910 475)
Balance at the end of the year
35 436 472
35 436 472
37
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
506 036
Shares sold to Shoprite Checkers
(Pty) Ltd
(506 036)
Balance at the end of the year
R28.02
R32.11
R14.59
R29.69
R31.78
R31.31
R28.02
5 208 334
(3 991 666)
1 216 668
9 441 667
(4 049 999)
(183 334)
5 208 334
R45.45
R62.35
R62.35
R6.50
R14.59
R31.31
R45.45
R45.45
R62.35
R62.35
R62.35
R6.50
R28.02
133 334
41 667
41 667
1 000 000
1 216 668
3 816 666
133 333
133 334
41 667
41 667
41 667
1 000 000
5 208 334
38
14 SHARE CAPITAL, TREASURY SHARES AND SHARE INCENTIVE SCHEMES (CONTINUED)
14.4 SHARE INCENTIVE SCHEMES (CONTINUED)
14.4.2 Cash-settled share-based payments (continued)
Cash-settled share-based payments issued to directors
Director
CH Wiese*
JAL Basson
M Bosman
PC Engelbrecht
CG Goosen
B Harisunker
AE Karp
AE Karp
EL Nel
BR Weyers
Expiry date
5 Sep 2022
29 Aug 2012
29 Aug 2012
29 Aug 2012
29 Aug 2012
29 Aug 2012
10 Oct 2012
10 Oct 2013
29 Aug 2012
29 Aug 2012
Exercise date
Currently exercisable
29 Aug 2012**
29 Aug 2012**
29 Aug 2012**
29 Aug 2012**
29 Aug 2012**
10 Oct 2012***
10 Oct 2013
29 Aug 2012**
29 Aug 2012**
1 000 000
41 667
(41 667)
116 666
(116 666)
250 000
(250 000)
316 666
(316 666)
116 666
(116 666)
133 333
(133 333)
133 334
133 334
133 334
(133 334)
100 000
(100 000)
*The right to the cash-settled share-based payments have been granted via a management company.
**The market price of share appreciation rights exercised on 29 August 2012 was R166.30 per share.
***The market price of share appreciation rights exercised on 10 October 2012 was R160.96 per share.
Strike price
per share
R6.50
R31.31
R31.31
R31.31
R31.31
R31.31
R45.45
R45.45
R31.31
R31.31
39
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
15 RESERVES
1 423 455
2 152
1 425 607
2 178 636
2 152
2 180 788
209
1 943
2 152
209
1 943
2 152
Retained earnings
Other reserves (note 15.1)
10 104 346
1 080 479
11 184 825
8 203 053
542 752
8 745 805
209
1 943
333 880
744 447
1 080 479
209
1 943
333 880
206 720
542 752
Fair value
reserve
51 219
Other
2 152
R000
Balance at June 2011
Equity component of convertible bonds on initial
recognition
Deferred income tax on equity component of
convertible bonds
Foreign currency translation differences
Group
Transfer to distributable reserves
Net fair value gains on available-for-sale
investments, net of income tax
Net fair value gains
Related income tax
Balance at June 2012
Equity
component of
convertible
bonds
Contingency
reserve
33 536
470 129
(136 249)
288 699
288 699
(33 536)
(51 219)
(59 557)
8 338
333 880
Foreign
currency
translation
reserve
(81 979)
206 720
2 152
2 152
537 727
516 110
21 617
333 880
744 447
40
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
16 BORROWINGS
2 450
2 450
2 450
2 450
2 450
2 450
2 450
2 450
Consisting of:
Shoprite Holdings Ltd preference share capital (note 16.1)
Shoprite International Ltd preference share capital (note 16.2)
Convertible bonds (note 16.3)
First National Bank of Namibia Ltd (note 16.4)
2 450
220
4 077 946
70 510
4 151 126
2 450
182
3 975 330
57 472
4 035 434
3 823 371
327 755
4 151 126
4 006 698
28 736
4 035 434
350
350
650
650
450
450
1 000
2 450
1 000
2 450
1 852
1 543
186
(1 818)
220
155
(1 516)
182
350
350
650
650
450
450
1 000
2 450
1 000
2 450
Issued:
175 000 (2012: 175 000) 6% non-convertible cumulative preference
shares of R2 each
325 000 (2012: 325 000) 5% non-convertible cumulative preference
shares of R2 each
225 000 (2012: 225 000) second 5% non-convertible cumulative
preference shares of R2 each
500 000 (2012: 500 000) third 5% non-convertible cumulative
preference shares of R2 each
41
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
16 BORROWINGS (CONTINUED)
16.3 CONVERTIBLE BONDS
The Group issued 6.5% convertible bonds for a principal amount of
R4.5 billion on 2 April 2012. The bonds mature five years from the
issue date at their nominal value of R4.5 billion or can be converted
into shares at the holders option at the maturity date at the rate of
5919.26 shares per R1 million. The Group holds, subject to
conditions, rights on early redemption. The values of the liability
component and the equity conversion component were determined
at issuance of the bonds.
The fair value of the liability component, included in non-current
borrowings, was calculated using a market interest rate for an
equivalent non-convertible bond. The residual amount, representing
the value of the equity conversion option, is included in shareholders
equity in other reserves, net of income taxes.
The convertible bonds recognised in the statement of financial
position is calculated as follows:
4 445 459
(470 129)
3 975 330
396 318
(293 702)
4 077 946
4 347 641
(470 129)
3 877 512
97 818
3 975 330
70 510
57 472
40 108
42 338
2 461
162 201
140 286
387 394
33 355
44 165
2 353
257 937
139 615
477 425
*The transaction costs have been allocated to the equity and liability components based on
their relative day one values.
17 PROVISIONS
Provision for post-retirement medical benefits (note 35.2)
Provision for onerous lease contracts
Provision for outstanding claims
Provision for long-term employee benefits
Reinstatement provision
42
17 PROVISIONS (CONTINUED)
Reconciliation of carrying values
R000
Balance at June 2011
Additional provisions
Unused amounts reversed
Utilised during the year
Accretion of discount
Exchange rate differences
Balance at June 2012
Additional provisions
Unused amounts reversed
Utilised during the year
Accretion of discount
Exchange rate differences
Balance at June 2013
Analysis of total provisions
2012
Non-current
Current
2013
Non-current
Current
Post-retirement
medical benefits
Onerous lease
contracts
Outstanding
claims
Long-term
employee
benefits
Reinstatement
provision
Total
33 534
76
(1 328)
(1 779)
2 852
33 355
5 578
(1 821)
2 996
40 108
50 578
29 823
(15 049)
(23 064)
1 877
44 165
27 258
(18 417)
(13 683)
3 015
42 338
2 134
219
2 353
108
2 461
219 831
55 104
(4 932)
(20 882)
7 506
1 310
257 937
33 065
(7 685)
(122 663)
1 547
162 201
137 240
11 549
(1 925)
(7 249)
139 615
10 955
(10 284)
140 286
443 317
96 771
(23 234)
(52 974)
12 235
1 310
477 425
76 964
(26 102)
(148 451)
6 011
1 547
387 394
33 355
33 355
29 069
15 096
44 165
2 353
2 353
208 573
49 364
257 937
67 794
71 821
139 615
338 791
138 634
477 425
40 108
40 108
30 632
11 706
42 338
2 461
2 461
115 605
46 596
162 201
67 488
72 798
140 286
253 833
133 561
387 394
9%
8%
9%
8%
N/A
N/A
8%
7%
9%
8%
43
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
24 777
198
2 272
204
24 975
2 476
24 975
24 975
2 476
2 476
658 081
(80 810)
577 271
576 437
(56 231)
520 206
8 137 322
3 052 058
783 788
254 784
8 163 845
2 927 422
743 836
204 540
200 305
21 126
80 810
193 215
12 723 408
178 408
7 665
56 231
630 043
12 911 990
279
12 723 129
12 723 408
21 878
12 890 112
12 911 990
178 408
354 643
(332 746)
200 305
156 520
316 623
(294 735)
178 408
21 126
7 665
44
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
1 652 535
2 522
1 655 057
2 433 712
61 661
2 495 373
12 955
335
1 639 223
22
1 652 535
19 862
366
2 413 462
22
2 433 712
227 989
38 742
51 556
279 987
575 212
332 746
1 102 120
2 608 352
206 354
82 259
47 438
251 482
485 734
294 735
957 310
2 325 312
839
23 605
14 298
38 742
279
16 579
65 401
82 259
354 643
(21 897)
332 746
316 623
(21 888)
294 735
1 347 715
142 055
1 489 770
(138 855)
1 350 915
1 132 907
67 199
1 200 106
(109 811)
1 090 295
45
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
22 OPERATING LEASES
The Group has entered into various operating lease agreements on
property, plant and equipment.
Leases on properties are contracted for periods of between 5 and 10
years (2012: 5 and 10 years) with renewal options averaging a further
3 to 15 years. Rental comprises minimum monthly payments and contingent payments based on turnover levels. Turnover rentals, where
applicable, average 1.87% (2012: 1.84%) of turnover. Rental escalations vary, but average at a rate of 6.64% (2012: 6.52%) p.a.
Operating lease payments property
Operating lease payments equipment
Disclosed as cost of sales
Consisting of:
Minimum lease payments
Contingent lease payments
2 184 875
93 148
2 278 023
(43 717)
2 234 306
1 902 258
80 858
1 983 116
(42 895)
1 940 221
2 069 374
208 649
2 278 023
1 733 591
249 525
1 983 116
7 192 677
79 013
8 574
398 449
7 678 713
(483 580)
7 195 133
6 305 672
275 580
1 600
347 939
6 930 791
(400 323)
6 530 468
27 711
15 283
42 994
24 237
13 847
38 084
23 EMPLOYEE BENEFITS
Wages and salaries
Cash-settled share-based payments (note 14.4.2)
Post-retirement medical benefits (note 35.2)
Retirement benefit contributions (note 35.1)
Disclosed as cost of sales
46
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
24 OPERATING PROFIT
78 261
1 227
79 488
(78 261)
1 227
116 904
1 934
118 838
(116 904)
1 934
23 807
27 796
27 688
108
3 375
24 965
24 746
219
25 DIRECTORS REMUNERATION
Executive directors
Non-executive directors
Less: paid by subsidiaries and joint ventures
The only prescribed officers of the Group are the Shoprite Holdings
Ltd directors and alternate directors, as listed below.
For details of equity and cash-settled share-based payment
instruments issued to directors refer note 14.4.
R000
Remuneration
Performance
bonus
2013
Retirement and
medical
benefits
49 656
1 383
1 866
3 015
3 635
2 260
3 395
2 251
1 747
69 208
288
1 481
1 933
2 721
1 205
530
1 656
1 286
11 100
43
236
436
557
877
759
697
396
460
4 461
Cash
retention
payment*
Other
benefits
1 164
3 259
6 983
8 845
3 259
3 724
2 793
30 027
302
166
175
200
217
208
461
173
206
2 108
Total
Remuneration
Performance
bonus
2012
Retirement and
medical
benefits
50 001
3 237
7 217
12 688
16 295
7 691
5 083
8 200
6 492
116 904
40 620
1 257
1 727
2 785
3 354
2 112
3 143
2 104
1 627
58 729
1 008
1 487
1 864
2 658
1 235
2 256
1 760
1 300
13 568
35
215
397
513
804
702
641
370
422
4 099
Other
benefits
Total
309
161
168
222
229
153
247
172
204
1 865
40 964
2 641
3 779
5 384
7 045
4 202
6 287
4 406
3 553
78 261
Executive directors
and alternates
JW Basson
JAL Basson
M Bosman
PC Engelbrecht
CG Goosen
B Harisunker
AE Karp
EL Nel
BR Weyers
R000
2013
Fees
Total
2012
Fees
Total
Non-executive directors
JJ Fouch (appointed 26/03/2012)
EC Kieswetter
JA Louw
JF Malherbe
ATM Mokgokong (appointed 06/08/2012)
JG Rademeyer
JA Rock (appointed 15/05/2012)
CH Wiese**
* Refer to the Remuneration Report in the Integrated Report for details of cash retention payments.
** Paid to Chaircorp (Pty) Ltd in its capacity as employer.
144
188
366
236
124
351
135
390
1 934
144
188
366
236
124
351
135
390
1 934
32
120
211
210
312
22
320
1 227
32
120
211
210
312
22
320
1 227
47
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
(3 365)
(16 677)
(20 042)
126
21
32
23
50
126
21
32
23
50
126
126
7 598
41 946
1 572
(34 584)
(15 166)
(1 094)
(30 582)
(13 585)
(2 193)
(31 400)
(17 210)
(61 605)
(184)
(93 687)
396 318
31 947
794
126
21
32
23
50
97 818
125 412
207
126
21
32
23
50
429 185
223 563
1 325 950
252 595
1 578 545
1 306 833
132 056
1 438 889
1 486 924
25 350
24 108
1 536 382
42 163
1 578 545
1 409 413
1 609
26 159
91 843
1 529 024
(90 135)
1 438 889
27 FINANCE COSTS
Interest on convertible bonds
Interest paid
Interest paid to joint ventures
Preference dividends
6% non-convertible cumulative preference shares
5% non-convertible cumulative preference shares
Second 5% non-convertible cumulative preference shares
Third 5% non-convertible cumulative preference shares
114 556
52 727
52 727
26 032
(1 030)
89 680
114 682
(126)
114 556
53 950
(913)
(16)
53 021
(294)
52 727
48
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
(1 030)
89 680
732 385
(679 658)
35
(675 776)
(2 988)
(913)
(16)
114 556
52 727
6.7%
2.0%
1 454 279
124 266
(6 897)
39 120
(11 960)
(17 817)
25 350
26 541
24 108
45 821
1 254 878
184 011
(230)
(18 312)
(177)
(9 898)
(6 922)
1 609
91 843
35 999
26 159
63 940
Income tax
1 578 545
1 438 889
30.4%
32.1%
1 863 561
1 059 257
804 304
1 843 759
1 479 506
364 253
9 397
8 558
7 336
20 049
6 807
714
52 861
2 776
8 276
8 369
4 025
19 483
2 603
45 532
89 626
108 566
49
29 EARNINGS PER SHARE
R000
Profit attributable to owners of the parent
Profit on disposal of property (note 3)
Profit on disposal of assets held for sale (note 4)
Loss on disposal and scrapping of plant, equipment and intangible assets (notes 3 & 9)
Impairment of property, plant and equipment and assets held for sale (notes 3 & 4)
Impairment of goodwill (note 9.1)
Loss on other investing activities
Headline earnings
R000
Profit attributable to owners of the parent
Profit on disposal of property (note 3)
Loss on disposal and scrapping of plant, equipment and intangible assets (notes 3 & 9)
Insurance claims paid
Impairment of property, plant and equipment and assets held for sale (notes 3 & 4)
Impairment of goodwill (note 9.1)
Loss on other investing activities
Headline earnings
Gross
2013
Income tax
effect
Net
(7 598)
(41 946)
34 584
30 582
13 585
2 193
31 400
1 419
7 836
(11 916)
(8 368)
(3 804)
(8)
(14 841)
3 597 711
(6 179)
(34 110)
22 668
22 214
9 781
2 185
3 614 270
Gross
2012
Income tax
effect
Net
(1 572)
15 166
1 094
17 210
61 605
184
93 687
294
(3 856)
(306)
(2 170)
(6 038)
3 026 563
(1 278)
11 310
788
15 040
61 605
184
3 114 212
2013
2012
Number of shares
000
000
535 143
535 143
535 143
513 019
Cents
672.3
675.4
590.0
607.0
50
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
Cents
June
2012
R000
Cents
194.0
123.0
317.0
194.0
215.0
194.0
123.0
317.0
165.0
109.0
274.0
215.0
194.0
R000
R000
3 365
16 677
20 042
(15 327)
23 848
8 521
(25 619)
(22 499)
(48 118)
(4 016)
(1 517 843)
3 849
(1 518 010)
(3 849)
(1 807 753)
4 866
(1 806 736)
(4 247)
(114 682)
7 028
(111 901)
(7 028)
(53 021)
1 832
(58 217)
1 347 715
142 055
(23 807)
3 793
(7 598)
(41 946)
34 584
30 582
13 585
(91 578)
97 899
79 819
1 585 103
1 132 907
67 199
(3 375)
8 343
(1 572)
15 166
17 210
61 605
34 577
330 738
51 724
1 714 522
(1 443 661)
(483 422)
33 922
(1 893 161)
(1 526 104)
(261 833)
2 437 171
649 234
(4 955)
(1 696 418)
(12 078)
6 434
(1 707 017)
(4 851)
(1 421 598)
(12 330)
4 955
(1 433 824)
(69 835)
(1 536 382)
12 121
(1 594 096)
(425 773)
(1 529 024)
(372)
69 835
(1 885 334)
51
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
(651 009)
(2 316 447)
2 252 984
(714 472)
(80 000)
(20 223 878)
18 598 233
(1 705 645)
(2 609 517)
(2 359 020)
(702 850)
(3 602)
(758 749)
156 833
212 045
(9 297)
(82 505)
(3 038 893)
149 315
34 409
(103 886)
(72 961)
(3 110 892)
9 302
97 647
(132 211)
(372)
(25 634)
25 634
52
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
3 409 728
3 409 728
14
14
13 740
(139)
12 404
26 005
56 500
82 505
19 788
(1 349)
7 665
26 104
46 857
72 961
14
13 038
13 052
3 409 728
4 347 641
10 316
7 767 685
125 569
206 168
32 CONTINGENT LIABILITIES
Amounts arising in the ordinary course of business relating to property and other transactions from which it is anticipated that no material
liabilities will arise.
Shoprite Holdings Ltd and its main trading subsidiary, Shoprite
Checkers (Pty) Ltd, have irrevocably and unconditionally guaranteed
all amounts payable by the issuer, Shoprite Investments Ltd, in
respect of convertible bonds (refer note 16.3).
53
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
33 COMMITMENTS
33.1 CAPITAL COMMITMENTS
1 707 190
31 697
2 389 620
4 128 507
1 464 732
242 735
2 077 445
3 784 912
4 128 507
3 784 912
1 872 076
5 839 628
3 364 459
11 076 163
(658 081)
10 418 082
1 609 405
5 107 226
2 739 322
9 455 953
(576 437)
8 879 516
209 393
331 592
35 101
576 086
(12 408)
563 678
175 323
354 467
36 070
565 860
(11 504)
554 356
34 BORROWING POWERS
In terms of the Memorandum of Incorporation of the Company the
borrowing powers of Shoprite Holdings Ltd are unlimited.
54
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
35 POST-RETIREMENT BENEFITS
35.1 RETIREMENT FUNDS
Group companies provide post-retirement benefits in accordance
with the local conditions and practices in the countries in which they
operate.
The Group provides retirement benefits to 64.7% (2012: 68.9%) of
employees and 5.0% (2012: 3.2%) of the employees belong to national
retirement plans. The monthly contributions are charged to the
statement of comprehensive income.
All company funds are defined contribution funds. All South African
funds are subject to the Pension Fund Act of 1956.
During the year under review contributions to retirement funding
have been calculated as:
398 449
347 939
10.3%
8.0%
10.3%
9.3%
8.2%
1.5%
100.0%
63 years
7.7%
1.5%
100.0%
63 years
55
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
33 355
33 534
8 574
(1 821)
40 108
1 600
(1 779)
33 355
79
5 499
2 996
8 574
76
(1 328)
2 852
1 600
517
6 188
454
4 730
419
5 010
369
3 870
Present value of
obligation
243 268
32 404
33 534
33 355
40 108
Experience
adjustments
1 687
5 907
963
1 878
643
56
36 FINANCIAL INSTRUMENTS BY CATEGORY
Loans and
receivables
Assets at fair
value through
profit and loss
Total
GROUP
R000
2013
29 233
1 256 650
1 315 265
463 646
48 483
23 576
6 138 671
9 251 948
R000
23 576
29 233
1 256 650
1 315 265
463 646
48 483
23 576
6 138 671
9 275 524
2012
19 903
1 113 989
1 205 979
339 839
22 818
7 939 333
10 641 861
19 903
1 113 989
1 205 979
339 839
22 818
7 939 333
10 641 861
1 696 519
40 946
2 404 854
4 142 319
74 237
15 327
3 387 853
3 477 417
COMPANY
R000
2013
1 696 519
40 946
2 404 854
4 142 319
R000
2012
74 237
15 327
3 387 853
3 477 417
The nominal value less estimated credit adjustments of trade and other receivables are assumed to approximate their fair values.
The book value of all other financial assets approximate the fair values thereof.
57
36 FINANCIAL INSTRUMENTS BY CATEGORY (CONTINUED)
Financial
liabilities
Liabilities at fair
value through
profit and loss
Total
GROUP
R000
2013
4 151 126
140 286
8 137 322
3 052 058
21 126
7 567
6 434
15 515 919
R000
4 151 126
140 286
8 137 322
3 052 058
21 126
7 567
6 434
15 515 919
2012
4 035 434
139 615
8 163 845
2 927 422
7 665
231
4 035 434
139 615
8 163 845
2 927 422
7 665
231
22 858
4 955
15 302 025
2 450
2 272
4 866
9 588
2 450
24 777
3 849
31 076
231
22 858
4 955
15 301 794
COMPANY
R000
2013
2 450
2 272
4 866
9 588
R000
2012
2 450
24 777
3 849
31 076
The nominal value less estimated credit adjustments of trade and other payables are assumed to approximate their fair values.
The fair value of the liability component of the convertible bonds included in borrowings amounted to R4.3 billion (2012: R4.1 billion) at the
statement of financial position date. The fair value is calculated using cash flows discounted at a rate based on the borrowings rate of 8.6%
(2012: 8.5%).
The book value of all other financial liabilities approximate the fair values thereof.
58
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
59
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
3 387 853
2 404 854
2 404 854
5 070 428
266 127
82 577
22 706
123 122
64 457
9 986
64 727
120 505
105 642
91 369
56 396
53 062
6 131 104
6 886 082
426 892
65 845
77 622
82 872
7 290
4 443
36 787
114 207
91 568
45 227
39 159
38 481
7 916 475
60
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
Foreign currency
Angola kwanza
Botswana pula
DRC franc
Egypt pound
Euro
Ghana cedi
Pound sterling
India rupee
Madagascar ariary
Malawi kwacha
Mauritius rupee
Mozambique metical
Nigeria naira
Tanzania shilling
Uganda shilling
USA dollar
Zambia kwacha
(10 166)
123 145
(12 815)
(497)
(650)
(9 924)
(200)
1 132
(20 893)
(4 568)
(17 854)
75 195
(127 334)
(15 333)
(13 793)
66 852
(239 806)
(160 799)
(9 732)
(3 376)
854
1 058
(11 372)
1 444
(14 989)
55 402
(13 130)
42 707
(61 162)
(6 087)
(12 015)
380 989
(113 952)
61
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
62
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
3 387 853
2 404 854
2 404 854
Rating
P-1
P-2
No rating available
Cash on hand and in transit
Total cash and cash equivalents
4 981 469
150 980
188 455
817 767
6 138 671
6 993 720
298 227
128 065
519 321
7 939 333
63
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
64
38 FINANCIAL RISK MANAGEMENT (CONTINUED)
38.1 FINANCIAL RISK FACTORS (CONTINUED)
38.1.3 Liquidity risk (continued)
Book value
Total
Not later
than one year
Between
one and
two years
Between
two and
five years
292 500
5 085 000
292 500
5 085 000
292 500
5 377 500
292 500
5 377 500
GROUP
R000
2013
4 151 126
140 286
8 137 322
5 670 000
140 286
8 137 322
292 500
140 286
8 137 322
3 052 058
21 126
7 567
6 434
15 515 919
3 052 058
21 126
7 567
6 434
17 034 793
3 052 058
21 126
7 567
6 434
11 657 293
R000
2012
4 035 434
139 615
8 163 845
5 962 500
139 615
8 163 845
292 500
139 615
8 163 845
2 927 422
7 665
22 858
4 955
15 301 794
2 927 422
7 665
22 858
4 955
17 228 860
2 927 422
7 665
22 858
4 955
11 558 860
COMPANY
R000
2013
2 450
2 450
2 450
2 272
4 866
9 588
2 272
4 866
9 588
2 272
4 866
9 588
R000
2012
2 450
2 450
2 450
24 777
3 849
31 076
24 777
3 849
31 076
24 777
3 849
31 076
*Liquidity risk resulting from the settlement of the 6.5% convertible bonds is considered to be acceptable as these bonds are expected to be converted into ordinary shares and will most likely
not lead to cash outflows. However, as conversion is at the option of the holders, the table above reflects the contractual cash flows the Group would have to pay if all the bonds were not
converted.
65
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
66
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
40 RELATED-PARTY INFORMATION
Related-party relationships exist between the Company, subsidiaries,
directors, as well as their close family members, and key management
of the Company.
During the year under review, in the ordinary course of business, certain companies within the Group entered into transactions with each
other. All these intergroup transactions have been eliminated in the
annual financial statements on consolidation.
Shoprite Investments Ltd issued 6.5% senior unsecured guaranteed
convertible bonds to the value of R4.5 billion during the previous
year, convertible into ordinary shares of Shoprite Holdings Ltd.
Shoprite Holdings Ltd and Shoprite Checkers (Pty) Ltd have irrevocably and unconditionally given its guarantee to the Trustee for the
benefit of the bondholders for all amounts payable by the issuer in
respect of the convertible bonds (refer note 16.3).
Non-executive director, CH Wiese, is a director and indirect beneficial shareholder of Titan Share Dealers (Pty) Ltd, which holds an
option to purchase R1.7 billion in nominal amount of convertible
bonds issued by Shoprite Investments Ltd from Rand Merchant Bank,
a division of FirstRand Bank Ltd. The option strike price is the principal amount plus any accrued interest outstanding for the period. The
option is exercisable at any time until maturity of the convertible
bonds in April 2017. Titan Share Dealers (Pty) Ltd also entered into a
sub-underwriting agreement with Rand Merchant Bank and received a
fee of R36.4 million during the previous year for its sub-underwriting
commitment.
Non-executive director, CH Wiese, is an employee of Chaircorp (Pty)
Ltd, a management company that renders advisory services to
Shoprite Checkers (Pty) Ltd in return for an annual fee. An amount of
R8,667,265 (2012: R7,637,973) was paid to Chaircorp (Pty) Ltd for
advisory services to Shoprite Checkers (Pty) Ltd.
Details of the remuneration of directors, and equity and cash-settled
share-based payment instruments issued to directors, are disclosed in
notes 14 and 25.
Details of the directors interests in ordinary and non-convertible,
non-participating, no par value deferred shares of the Company are
provided in the directors report.
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
Directors fees
268 900
15 462
470 166
1 934
756 462
169 617
13 300
253 974
1 227
438 118
67
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
875
211 091
1 273
7 757
4 635
229 384
6 872
5 198
4 254
2 092
1 678
1 588
4 388
1 906
558
414
The Group has a 50% interest in the Hungry Lion joint venture
(refernote 41). The other 50% is indirectly held by alternate director
JALBasson.
The following transactions took place between the Hungry Lion joint
venture and the Group during the year under review:
Administration fees paid to the Group
Rent paid to the Group
Interest paid to the Group
Interest paid to the joint venture
The year-end balances relating to the transactions with the joint
venture are disclosed in notes 12 and 19.
Details of the Companys interests in subsidiaries are provided in note
5 and annexure A.
The Company received a capital distribution of R53.4 million from
The Shoprite Holdings Ltd Share Incentive Trust during the year
under review.
The amount of R3,364,827 owed by Shoprite Checkers Properties Ltd
at the end of the previous year were written off during the year
under review.
The Company paid dividends of R111,334,689 (2012: R96,245,377) to
Shoprite Checkers (Pty) Ltd during the current year.
1 382
1 504 223
135 000
12 955
1 458
2 188 462
225 000
5 872
19 862
68
COMPANY
June
2012
R000
GROUP
June
2013
R000
June
2013
R000
June
2012
R000
41 JOINT VENTURES
The Group holds directly the following interests in joint ventures:
Hungry Lion Fast Foods (Pty) Ltd
Hungry Lion Mauritius Ltd
50%
50%
50%
50%
290 188
262 264
2 697
(2 235)
462
8 610
(5 574)
3 036
66 426
29 475
25 096
49 408
22 890
18 405
15 405
(29 370)
12 120
23 057
(22 668)
2 265
2 089
756
178 408
178 408
Capital commitments
Percentage
shares held
by Group
%
South Africa
South Africa
South Africa
Mauritius
South Africa
South Africa
2 700
1 128 908
100 000
2 074 172
20 230
26 196
100
100
100
100
100
100
Zambia
South Africa
South Africa
India
Angola
South Africa
Lesotho
Namibia
Swaziland
South Africa
Mozambique
Botswana
Nigeria
Namibia
Mauritius
Angola
Tanzania
Uganda
Egypt
Ghana
Lesotho
Madagascar
Mauritius
Namibia
DRC
Angola
Tanzania
Malawi
2 000
69 133
118 383
136 903
300
500
200
2 400
432
46 648
522
5 880
189 116
39 189
258 621
48 397
41 865
31 417
1
144 809
125 822
81 719
342
1 870
26 076
100
48
100
100
100
100
50
100
100
50
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Country of
incorporation
Investment in shares
June 2013
June 2012
R000
R000
174 431
100 000
2 074 172
20 230
2 368 833
385 646
1 305 001
5 872
1 696 519
71 486
3 365
74 851
( 614)
1 696 519
74 237
DIRECT SUBSIDIARIES
OK Bazaars (1998) (Pty) Ltd
Shoprite Checkers (Pty) Ltd
Shoprite Investments Ltd
Shoprite International Ltd
Shoprite Insurance Company Ltd
Shoprite Checkers Properties Ltd
174 431
20 000
2 074 172
20 230
16 679
2 305 512
INDIRECT SUBSIDIARIES
Africa Supermarkets Ltd*
Checkers Chatsworth Ltd
Computicket (Pty) Ltd
Megasave Trading (Pvt) Ltd*
Mercado Fresco de Angola Lda*
Medirite (Pty) Ltd
OK Bazaars (Lesotho) (Pty) Ltd*
OK Bazaars (Namibia) Ltd*
OK Bazaars (Swaziland) (Pty) Ltd*
OK Bazaars (Venda) Ltd
Propco Mozambique Lda*
Retail Holdings Botswana (Pty) Ltd*
Retail Supermarkets Nigeria Ltd*
Sentra Namibia Ltd*
Shophold (Mauritius) Ltd*
Shoprite Angola Imobiliaria Lda*
Shoprite Checkers Tanzania Ltd*
Shoprite Checkers Uganda Ltd*
Shoprite Egypt for Internal Trade SAE*
Shoprite Ghana (Pty) Ltd*
Shoprite Lesotho (Pty) Ltd*
Shoprite Madagascar S.A.*
Shoprite (Mauritius) Ltd*
Shoprite Namibia (Pty) Ltd*
Shoprite RDC SPRL*
Shoprite Supermercados Lda*
Shoprite Too (Pty) Ltd*
Shoprite Trading Ltd*
2 368 833
2 305 512
NOTE:
General information in respect of subsidiaries is set out in respect of only those subsidiaries of which the financial position or results are material for a
proper appreciation of the affairs of the Group. A full list of subsidiaries is available on request.
70
No of
Shareholdings
No of Shares
1 1,000 shares
1,001 10,000 shares
10,001 100,000 shares
100,001 1,000,000 shares
Over 1,000,001 shares
13401
3078
650
202
69
77.01
17.69
3.74
1.16
0.40
3774477
9500308
19946080
61625414
475733181
0.66
1.67
3.50
10.80
83.37
Totals
17400
100.00
570579460
100.00
No of
Shareholdings
No of Shares
Banks
Brokers
Close Corporations
Endowment Funds
Individuals
Insurance Companies
Investment Companies
Medical Aid Schemes
Mutual Funds
Nominees & Trusts
Other Corporations
Own Holdings
Private Companies
Public Companies
Retirement Funds
265
38
163
74
13429
88
28
5
226
2453
102
1
357
13
158
1.52
0.22
0.94
0.43
77.16
0.51
0.16
0.03
1.30
14.10
0.59
0.01
2.05
0.07
0.91
271829762
5794158
200156
500785
18115472
6847230
5097003
84582
29250671
43577573
105234
35436472
73243141
526594
79970627
47.63
1.02
0.04
0.09
3.17
1.20
0.89
0.01
5.13
7.64
0.02
6.21
12.84
0.09
14.02
Totals
17400
100.00
570579460
100.00
No of
Shareholdings
No of Shares
52
51
1
0.30
0.29
0.01
134536912
99100440
35436472
23.58
17.37
6.21
SHAREHOLDER SPREAD
DISTRIBUTION OF SHAREHOLDERS
Public Shareholders
17348
99.70
436042548
76.42
Totals
17400
100.00
570579460
100.00
No of Shares
85627398
63171399
60255194
35436472
22810777
15846214
14282277
14052968
12698733
9994122
7434585
6863340
6036327
15.01
11.07
10.56
6.21
4.00
2.78
2.50
2.46
2.23
1.75
1.30
1.20
1.06
354509806
62.13
Shareholders
Country Classification
71
FUND MANAGERS
Other
11,7%
Other
15,5%
Luxembourg
2,8%
Luxembourg
3,7%
Singapore
3,6%
Singapore
4,8%
UK
9,9%
UK
13,2%
South Africa
24,7%
USA
47,3%
BENEFICIAL SHAREHOLDERS
USA
62,8%
Other
12,9%
Other
23,6%
Singapore
2,6%
UK
3,3%
Singapore
4,8%
Luxembourg
3,9%
UK
6,0%
USA
32,0%
South Africa
45,3%
Luxembourg
7,1%
USA
58,5%