Pick n Pay Stores : FY26 Audited Annual Financial Statements for the 52 weeks ended 1 March 2026 - PDF 4.5MB

About this update from Pick N Pay Stores Limited

‌Audited Annual Financial Statements 20 26 52 weeks ended 1 March ‌Contents PICK N PAY STORES LIMITED GROUP GROUP ANNUAL FINANCIAL STATEMENTS COMPANY ANNUAL FINANCIAL STATEMENTS ADDITIONAL INFORMATION Group AnnuạW FrnạncrạW Stạtements ?0?6 1 Drrectors' responsrbrWrty stạtement Compạny Secretạry's certrficạte nternạW finạncrạW controW responsrbrWrty stạtement Drrectors' report ndependent ạudrtor's report Report ofi the ™roup Audrt, Rrsk ạnd CompWrạnce Commrttee Revrew ofi operạtrons ? ? 3 4 8 14 ?1 Stạtement ofi comprehensrve rncome Stạtement ofi finạncrạW posrtron Stạtement ofi chạnges rn equrty Stạtement ofi cạsh flows Notes to the group ạnnuạW finạncrạW stạtements ?fi ?8 ?9 30 31 Stạtement ofi comprehensrve rncome 8? Stạtement ofi finạncrạW posrtron 83 Stạtement ofi chạnges rn equrty 84 Stạtement ofi cạsh flows 85 Notes to the compạny ạnnuạW finạncrạW stạtements 86 Pro fiormạ finạncrạW rnfiormạtron 93 ndependent Audrtor's Assurạnce Report on the 95 ComprWạtron ofi Pro Formạ FrnạncrạW nfiormạtron Lrke-fior-Wrke turnover ạnd fiorwạrd Wookrng 9fi rnfiormạtron AnạWysrs ofi ordrnạry shạrehoWders 98 AnạWysrs ofi . shạrehoWders 99 Overvrew ofi store estạte 100 Number ofi stores 101 Corporạte rnfiormạtron 10? These ™roup ạnd Compạny ạnnuạW finạncrạW stạtements hạve been prepạred by the ™roup's Frnạnce Drvrsron under the supervrsron ofi the Chrefi Frnạnce Ofificer (CFO), Lerenạ OWrvrer, CA(SA). ‌Directors' responsibility statement The drrectors ạre responsrbWe fior the prepạrạtron ạnd fiạrr presentạtron ofi the ™roup ạnnuạW finạncrạW stạtements ạnd ạnnuạW finạncrạW stạtements ofi Prck n Pạy Stores Lrmrted (the Compạny), comprrsrng the stạtements ofi finạncrạW posrtron ạs ạt 1 Mạrch ?0?6, the stạtements ofi comprehensrve rncome, chạnges rn equrty ạnd cạsh flows fior the perrod then ended, ạnd the notes to the finạncrạW stạtements, whrch rncWude ạ summạry ofi mạterrạW ạccountrng poWrcres ạnd other expWạnạtory notes, rn ạccordạnce wrth FRS Accountrng Stạndạrds rssued by the nternạtronạW Accountrng Stạndạrds .oạrd ( FRS Accountrng Stạndạrds) ạnd the requrrements ofi the Compạnres Act ofi South Afirrcạ No.fi1 ofi ?008 (Compạnres Act), ạs ạmended, ạnd the drrectors' report. The drrectors ạre ạWso responsrbWe fior such rnternạW controW ạs the drrectors determrne rs necessạry to enạbWe the prepạrạtron ofi ạnnuạW finạncrạW stạtements thạt ạre firee firom mạterrạW mrsstạtement, whether due to firạud or error, ạnd fior mạrntạrnrng ạdequạte ạccountrng records ạnd ạn efifiectrve system ofi rrsk mạnạgement, ạs weWW ạs the prepạrạtron ofi the suppWementạry scheduWes rncWuded rn these ạnnuạW finạncrạW stạtements. The drrectors hạve ạssessed the ạbrWrty ofi the ™roup ạnd Compạny to contrnue ạs ạ gorng concern ạnd hạve no reạson to beWreve thạt the busrnesses wrWW not be gorng concerns rn the perrod ạheạd. PWeạse refier to the Drrectors' Report fior fiurther rnfiormạtron. The ạudrtor rs responsrbWe fior reportrng on whether the ™roup ạnd Compạny ạnnuạW finạncrạW stạtements ạre fiạrrWy presented rn ạccordạnce wrth the ạppWrcạbWe finạncrạW reportrng firạmework. Approval of the Group annual financial statements and annual financial statements of the Company The ™roup ạnd Compạny ạnnuạW finạncrạW stạtements ofi Prck n Pạy Stores Lrmrted, ạs rdentrfied rn the first pạrạgrạph, were ạpproved by the boạrd ofi drrectors on ?? Mạy ?0?6 ạnd srgned by: 2ạmes Formby Seạn Summers Lerenạ OWrvrer "Áạii "Áiek Executive Okficei "Áiek Mifiạfice Okficei ?? Mạy ?0?6 ?? Mạy ?0?6 ?? Mạy ?0?6 Company Secretary's certificate n my cạpạcrty ạs Compạny Secretạry, certrfiy thạt fior the 5?-week finạncrạW perrod ended 1 Mạrch ?0?6, Prck n Pạy Stores Lrmrted hạs fiWed ạWW returns ạnd notrces ạs requrred fior ạ compạny rn terms ofi sectron 88(?)(e) ofi the Compạnres Act No. fi1 ofi ?008, ạs ạmended, ạnd thạt such returns ạnd notrces ạre, to the best ofi my beWrefi, true, correct ạnd up to dạte. Vạughạn Prerce "ofipạfiy 6ecietạiy ?? Mạy ?0?6 ? https://www.pnp.co.zạ ‌Chief Executive Officer and Chief Finance Officer internal financial control responsibility statement n terms ofi ZSE Lrstrngs Requrrements 5.9, the drrectors, whose nạmes ạre stạted beWow, hereby confirm thạt - ạ) the ạnnuạW finạncrạW stạtements set out on pạges ?fi to 91, fiạrrWy present rn ạWW mạterrạW respects the finạncrạW posrtron, finạncrạW perfiormạnce ạnd cạsh flows ofi the rssuer rn terms ofi FRS Accountrng Stạndạrds; to the best ofi our knowWedge ạnd beWrefi, no fiạcts hạve been omrtted or untrue stạtements mạde thạt wouWd mạke the ạnnuạW finạncrạW stạtements fiạWse or mrsWeạdrng; rnternạW finạncrạW controWs hạve been put rn pWạce to ensure thạt mạterrạW rnfiormạtron reWạtrng to Prck n Pạy Stores Lrmrted ạnd rts consoWrdạted subsrdrạrres ạnd ạssocrạtes (the ™roup) hạve been provrded to efifiectrveWy prepạre the finạncrạW stạtements ofi the rssuer; the rnternạW finạncrạW controWs ạre ạdequạte ạnd efifiectrve ạnd cạn be reWred upon rn comprWrng the ạnnuạW finạncrạW stạtements, hạvrng fiuWfiWWed our roWe ạnd fiunctron ạs executrve drrectors wrth prrmạry responsrbrWrty fior rmpWementạtron ạnd executron ofi controWs; where we ạre not sạtrsfied, we hạve drscWosed to the Audrt, Rrsk ạnd CompWrạnce Commrttee ạnd the ạudrtors ạny deficrencres rn desrgn ạnd operạtronạW efifiectrveness ofi the rnternạW finạncrạW controWs, ạnd hạve tạken steps to remedy the deficrencres; ạnd fi) we ạre not ạwạre ofi ạny firạud rnvoWvrng drrectors. Seạn Summers Lerenạ OWrvrer "Áiek Executive Okficei "Áiek Mifiạfice Okficei ?? Mạy ?0?6 ?? Mạy ?0?6 Group AnnuạW FrnạncrạW Stạtements ?0?6 3 ‌Directors' report The ?0?6 finạncrạW yeạr (FY?6) wạs chạrạcterrsed by ạ constrạrned ạnd hrghWy competrtrve consumer envrronment. Agạrnst thrs bạckdrop, the ™roup contrnued to execute rts strạtegrc turnạround wrthrn the Prck n Pạy segment. The yeạr reflects drscrpWrned executron ạnd steạdy progress rn rmprovrng operạtronạW perfiormạnce, wrth pạrtrcuWạrWy strong resuWts rn the .oxer busrness ạnd encourạgrng eạrWy srgns ofi recovery rn the Prck n Pạy segment. WhrWe srgnrficạnt work remạrns to restore the Prck n Pạy segment to rts tạrgeted breạk-even posrtron, the ™roup remạrns fiocused on strengthenrng sustạrnạbWe Wong-term profitạbrWrty ạnd rts overạWW finạncrạW posrtron. Nature of business Prck n Pạy Stores Lrmrted rs ạn rnvestment hoWdrng compạny thạt rs domrcrWed ạnd rncorporạted rn the RepubWrc ofi South Afirrcạ ạnd Wrsted on the ZSE ạnd A?X, the recognrsed securrtres exchạnges rn South Afirrcạ. The ™roup comprrses subsrdrạrres thạt engạge rn the retạrW ofi fiood, grocerres, heạWth ạnd beạuty products, generạW merchạndrse, cWothrng, Wrquor ạnd ạddrtronạW vạWue-ạdded servrces, throughout southern Afirrcạ, on ạn owned ạnd firạnchrsed bạsrs. The ™roup ạWso ạcqurres ạnd deveWops strạtegrc retạrW ạnd drstrrbutron srtes. Other thạn the ạcqursrtron ofi the Prck n Pạy firạnchrse operạtrons rn .otswạnạ, there were no other mạterrạW chạnges rn the nạture or composrtron ofi the ™roup's subsrdrạrres durrng the finạncrạW yeạr. Noteworthy subsrdrạrres ạre presented rn note fi to the ™roup ạnnuạW finạncrạW stạtements. Overview of operations and financial results The ™roup's finạncrạW ạnd operạtronạW perfiormạnce fior the ?0?6 finạncrạW yeạr rs outWrned rn the "Revrew ofi Operạtrons" presented on pạges ?1 to ?5 ofi the ™roup ạnnuạW finạncrạW stạtements. The ™roup mạnạges rts retạrW operạtrons on ạ 5?-week trạdrng cạWendạr bạsrs where the finạncrạW reportrng perrod ạWwạys ends on ạ Capital management and liquidity The ™roup mạrntạrned ạ strong fiocus on cạprtạW drscrpWrne ạnd Wrqurdrty mạnạgement durrng FY?6, fioWWowrng the efifiectrve deWrvery ofi the FY?5 recạprtạWrsạtron. Solvency and liquidity n ạccordạnce wrth the requrrements ofi the Compạnres Act, the ™roup compWres wrth Wrqurdrty ạnd soWvency requrrements befiore ạny drvrdend pạyment ạnd provrsron ofi finạncrạW ạssrstạnce. Borrowings The ™roup's overạWW WeveW ofi debt (rncWudrng bạnk overdrạfits ạnd overnrght borrowrngs) decreạsed firom R1.? brWWron rn FY?5 to R?00 mrWWron ạt the cWose ofi FY?6. The ™roup remạrned compWrạnt wrth ạWW debt covenạnts durrng the finạncrạW yeạr. Net cash position The ™roup's net cạsh posrtron (defined ạs totạW cạsh ạnd cạsh equrvạWents net ofi borrowrngs) reduced firom R4.? brWWron ạt the end ofi FY?5 to R3.1 brWWron ạt the end ofi FY?6. Further detạrW rs provrded rn the Revrew ofi Operạtrons. Shareholder distribution n Wrght ofi the ™roup's cạprtạW posrtron ạnd ongorng recovery, drvrdend pạyments remạrned suspended durrng FY?6 ạnd no drvrdend wạs decWạred fior the yeạr. The .oạrd wrWW consrder resumrng shạrehoWder drstrrbutrons once rt rs sạtrsfied thạt the ™roup's cạsh generạtron rs sufificrentWy strong, sustạrnạbWe ạnd supports ạ return to consrstent profitạbrWrty. Share capital and treasury shares FY?6 FY?5 Sundạy. To ensure cạWendạr reạWrgnment, the rncWusron ofi ạ 53rd week ofi trạdrng rs requrred ạpproxrmạteWy every srx yeạrs. The ™roup reported on ạ 53-week bạsrs rn FY?5, fior the finạncrạW perrod ended ? Mạrch ?0?5 ạnd on ạ 5?-week bạsrs rn FY?6, fior the finạncrạW perrod ended 1 Mạrch ?0?6. CompạrạbWe pro fiormạ turnover rnfiormạtron rs provrded on pạge 93. Going concern The .oạrd ofi drrectors (the .oạrd) hạs undertạken ạ fiormạW revrew ofi the Compạny ạnd rts subsrdrạrres' ạbrWrty to contrnue trạdrng ạs gorng concerns rn the fioreseeạbWe fiuture. As pạrt ofi thrs revrew, the .oạrd hạs consrdered the rmpạct ofi the current economrc envrronment, revrewed current trạdrng trends, rnterrogạted the ™roup's fiorwạrd-Wookrng finạncrạW fiorecạsts, consrdered the ạdequạcy ofi rnsurạnce covers ạnd ạssessed the ™roup's soWvency ạnd Wrqurdrty. The .oạrd rs sạtrsfied ạs to the ™roup's ạnd Compạny's ạbrWrty to contrnue ạs ạ gorng concern fior the fioreseeạbWe fiuture ạnd hạs concWuded thạt the presentạtron ofi the ™roup ạnd Compạny AnnuạW FrnạncrạW Stạtements on ạ gorng concern bạsrs rs ạpproprrạte. Lrsted ordrnạry shạres, no pạr vạWue Authorrsed 8?8 500 000 8?8 500 000 ssued fi45 65fi 130 fi45 65fi 130 UnWrsted B shạres, no pạr vạWue Authorrsed 361 500 000 361 500 000 ssued 3?5 4?6 164 3?5 4?6 164 Cancellation of B shares As prevrousWy ạnnounced, Ackermạn nvestment HoWdrngs (RF) Proprretạry Lrmrted ạnd rts reWạted ạnd rnter-reWạted persons (coWWectrveWy, the "Ackermạn FạmrWy") drsposed ofi 64 038 85fi ordrnạry shạres on 1fi November ?0?5 ạnd the 105 186 384 . shạres heWd by the Ackermạn FạmrWy thạt were prevrousWy ạttạched to such ordrnạry shạres hạve ceạsed to hạve votrng rrghts. Subject to the reqursrte shạrehoWder ạpprovạW berng obtạrned ạt the ?0?6 A™M, these "unstạpWed" . shạres wrWW be repurchạsed by the Compạny fior ạ nomrnạW prrce ofi R0.00001 per . shạre ạnd cạnceWWed, ạs contempWạted rn the Memorạndum ofi ncorporạtron (MO). 4 https://www.pnp.co.zạ ‌Treasury shares At finạncrạW yeạr end, 11 ?fi3 80fi shạres (?0?5: 9 945 fi86 shạres) ofi Prck n Pạy Stores Lrmrted were heWd wrthrn the ™roup to settWe fiuture obWrgạtrons under the ™roup's empWoyee shạre scheme. Shareholders The Compạny mạrntạrns ạ broạd ạnd drverse shạrehoWder bạse, wrth the Ackermạn fiạmrWy remạrnrng the ™roup's Wạrgest shạrehoWder. DetạrWs ofi the ™roup's shạrehoWder ạnạWysrs ạt 1 Mạrch ?0?6 ạre set out on pạges 98 ạnd 99. Further detạrWs ofi the ™roup's shạre cạprtạW ạnd treạsury shạres, rncWudrng ạWW movements fior the perrod under revrew ạre drscWosed rn notes ?4 ạnd ?5 ofi the ™roup's ạnnuạW finạncrạW stạtements. Legal proceedings The Compạny ạnd rts subsrdrạrres were not rnvoWved rn ạny WegạW or ạrbrtrạtron proceedrngs durrng FY?6 thạt mạy hạve, or mạy hạve hạd, ạ mạterrạW efifiect on the finạncrạW posrtron ofi the ™roup. The Compạny rs not ạwạre ofi ạny such proceedrngs thạt ạre pendrng or threạtened. Special resolutions At the AnnuạW ™enerạW Meetrng (A™M) heWd on 5 August ?0?5, shạrehoWders ạpproved the fioWWowrng specrạW resoWutrons ạs proposed rn the Notrce to the A™M. These resoWutrons ạre ạWrgned wrth the requrrements ofi the Compạnres Act ạnd the Compạny's MO. Non-executive directors' fees for the 2026 and 2027 annual financial periods ShạrehoWders ạpproved the proposed fiees pạyạbWe to non-executrve drrectors fior FY?6, whrch remạrned unchạnged firom FY?5 rn support ofi the cost ạnd efificrency efifiorts berng undertạken by the ™roup. ShạrehoWders ạWso ạpproved ạ CP -Wrnked rncreạse rn drrectors' fiees fior FY?fi. General approval to repurchase Company shares ShạrehoWders grạnted the Compạny ạnd rts subsrdrạrres ạ generạW ạuthorrty to ạcqurre Compạny shạres, subject to compWrạnce wrth the Compạnres Act, the MO, ạnd the ZSE Lrstrngs Requrrements. The ạuthorrty rs Wrmrted to 5% ofi the Compạny's rssued shạre cạprtạW rn ạny one finạncrạW yeạr. Directors DetạrWs ofi the drrectors who served on the .oạrd durrng the finạncrạW yeạr ạnd ạny chạnges ạt reportrng dạte ạre provrded beWow. The brogrạphrcạW detạrWs ofi the current drrectors, rncWudrng .oạrd commrttee membershrp, wrWW be pubWrshed rn the ?0?6 ntegrạted AnnuạW Report Wạter rn the yeạr ạnd ạre ạvạrWạbWe on the Compạny's websrte ạt: www.prcknpạyrnvestor.co.zạ . Nạme Desrgnạtron Apporntment/Retruement Current drrectors Seạn Summers Executrve - CEO Lerenạ OWrvrer Executrve - CFO ™ạreth Ackermạn Zonạthạn Ackermạn Suzạnne Ackermạn Hạroon .horạt Zạmes Formby Aboubạkạr Zạkoet Thạbo Leeuw Audrey Mothupr-PạWmstrernạ ™rạnt Pạttrson Annạmạrre vạn der Merwe Pooven Vrrạnnạ Former drrector Dạvrd FrredWạnd Non-executrve Non-executrve Non-executrve ndependent non-executrve ndependent non-executrve - Chạrr ndependent non-executrve ndependent non-executrve ndependent non-executrve ndependent non-executrve ndependent non-executrve ndependent non-executrve Appornted 1 Februạry ?0?6 Appornted 1 Februạry ?0?6 Appornted 1 Zune ?0?5 ndependent non-executrve Retrred 5 August ?0?5 Group AnnuạW FrnạncrạW Stạtements ?0?6 5 ‌Board and Committee changes during FY26 The fioWWowrng .oạrd ạnd Commrttee chạnges occurred durrng FY?6: 26 May 2025 Suzạnne Ackermạn stepped down ạs Chạrr ofi the SocrạW, Ethrcs ạnd Trạnsfiormạtron Commrttee ạnd wạs succeeded by rndependent non-executrve drrector, Hạroon .horạt. Suzạnne contrnues to serve ạs ạ member ofi the Commrttee. 1 June 2025 Pooven Vrrạnnạ wạs ạppornted to the .oạrd ạs ạn rndependent non-executrve drrector ạnd ạs ạ member ofi the ™roup Audrt, Rrsk ạnd CompWrạnce Commrttee. 5 August 2025 - AGM Dạvrd FrredWạnd retrred firom the .oạrd, the ™roup Audrt, Rrsk ạnd CompWrạnce Commrttee ạnd the Frnạnce ạnd nvestment Commrttee. ™ạreth Ackermạn stepped down ạs .oạrd Chạrr ạnd wạs ạppornted to the Frnạnce ạnd nvestment Commrttee. Zạmes Formby wạs ạppornted ạs .oạrd Chạrr ạnd stepped down firom the ™roup Audrt, Rrsk ạnd CompWrạnce Commrttee. Hạroon .horạt wạs ạppornted ạs ạ member ofi the Nomrnạtrons ạnd Corporạte ™overnạnce Commrttee. 1 February 2026 Thạbo Leeuw wạs ạppornted ạs ạn rndependent non-executrve drrector ạnd ạs ạ member ofi the ™roup Audrt, Rrsk ạnd CompWrạnce Commrttee ạnd the SocrạW, Ethrcs ạnd Trạnsfiormạtron Commrttee. ™rạnt Pạttrson wạs ạppornted ạs ạn rndependent non-executrve drrector ạnd member ofi the ™roup Audrt, Rrsk ạnd CompWrạnce Commrttee, Remunerạtron Commrttee ạnd Frnạnce ạnd nvestment Commrttee. Pooven Vrrạnnạ wạs ạppornted ạs ạ member ofi the SocrạW, Ethrcs ạnd Trạnsfiormạtron Commrttee. 28 February 2026 t rs noted thạt .oạrd Chạrr, Zạmes Formby, stepped down ạs Chạrr ofi the .oxer RetạrW Lrmrted .oạrd, the ™roup's mạjorrty heWd subsrdrạry, on ?8 Februạry ?0?6, ạnd wạs succeeded rn thạt roWe by Seạn Summers on 1 Mạrch ?0?6. Post year-end Board and committee changes Lerenạ OWrvrer wrWW step down ạs the ™roup's Chrefi Frnạnce Ofificer ạt the concWusron ofi the Compạny's ?0?6 A™M rn August ?0?6, rn Wrne wrth the ™roup's Wong-term successron pWạnnrng. The .oạrd extends rts srncere ạpprecrạtron to Lerenạ fior her srgnrficạnt contrrbutron ạnd dedrcạted servrce to the ™roup, ạnd rs pWeạsed thạt she wrWW contrnue to support the busrness rn ạ strạtegrc cạpạcrty thereạfiter. Trnạ RookWedge jorned the ™roup on 1 Februạry ?0?6 ạs pạrt ofi ạ structured trạnsrtron process to enạbWe ạ seạmWess hạndover ofi responsrbrWrtres. t rs rntended thạt Trnạ wrWW ạssume the roWe ofi ™roup Chrefi Frnạnce Ofificer fioWWowrng the concWusron ofi the ?0?6 A™M. The .oạrd weWcomes Trnạ ạnd Wooks fiorwạrd to her contrrbutron. Finance and Investment Committee n August ?0?5, the ™roup ạnnounced the rntentron thạt Zạmes Formby wouWd step down ạs Chạrr ofi the Frnạnce ạnd nvestment Commrttee ạt the end ofi FY?6. FoWWowrng fiurther consrderạtron, ạnd the ạnnuạW .oạrd ạnd commrttee evạWuạtrons, rt wạs ạgreed thạt he wouWd contrnue rn thrs roWe. The .oạrd rs sạtrsfied thạt thrs does not ạfifiect hrs rndependence ạs .oạrd Chạrr or the efifiectrveness ofi thrs non-stạtutory Commrttee, ạnd vạWues the srgnrficạnt benefit ofi hrs experrence rn treạsury ạnd Wrqurdrty mạnạgement. Director retirement and rotation n Mạy ?0?4, the .oạrd rnrtrạted ạ structured process to support the rotạtron ạnd retrrement ofi Wong-servrng rndependent non-executrve drrectors. Supported by the Nomrnạtrons ạnd Corporạte ™overnạnce Commrttee, thrs .oạrd refireshment process hạs resuWted rn the retrrement ofi two ofi the ™roup's Wongest-servrng drrectors ạnd the ạpporntment ofi three new rndependent non-executrve drrectors over the pạst two yeạrs. As pạrt ofi thrs process, Audrey Mothupr-PạWmstrernạ wrWW retrre firom the .oạrd ạt the ?0?6 A™M, to be heWd rn August ?0?6. n Wrne wrth the Compạny's MO, ạt Weạst one-thrrd ofi drrectors retrre by rotạtron ạt eạch A™M ạnd mạy ofifier themseWves fior re-eWectron. n determrnrng those drrectors retrrrng, the .oạrd consrders ạppWrcạbWe reguWạtory requrrements, the .oạrd's Corporạte ™overnạnce Chạrter ạnd the tenure ofi eạch drrector srnce therr Wạst eWectron. Non-executrve drrectors retrre ạt Weạst every three yeạrs, whrWe those who hạve served fior more thạn nrne yeạrs ạre subject to ạnnuạW re-eWectron. The drrectors stạndrng fior eWectron or re-eWectron ạt the ?0?6 A™M ạre set out beWow. Further detạrWs wrWW be rncWuded rn the Notrce ofi A™M, expected to be pubWrshed ạt the end ofi Zune ?0?6. Cạtegouy Druectou Bạsrs Executrve Trnạ RookWedge EWectron, on ạpporntment ạs Chrefi Frnạnce Ofificer Non-executrve ™ạreth Ackermạn Retrrement ạnd re-eWectron ạfiter ạ three-yeạr term Non-executrve Zonạthạn Ackermạn Retrrement ạnd re-eWectron ạfiter ạ three-yeạr term ndependent non-executrve Thạbo Leeuw EWectron, fioWWowrng .oạrd ạpporntment on 1 Februạry ?0?6 ndependent non-executrve ™rạnt Pạttrson EWectron, fioWWowrng .oạrd ạpporntment on 1 Februạry ?0?6 ndependent non-executrve Hạroon .horạt Retrrement ạnd re-eWectron ạfiter ạ three-yeạr term ndependent non-executrve Zạmes Formby Retrrement ạnd re-eWectron ạfiter ạ three-yeạr term 6 https://www.pnp.co.zạ ‌Directors' remuneration, interest in shares and related party transactions The remunerạtron pạrd to the drrectors ofi the Compạny durrng the perrod under revrew rs set out rn note 6 ofi the ™roup ạnnuạW finạncrạW stạtements ạnd note ? ofi the Compạny ạnnuạW finạncrạW stạtements. Over the reportrng perrod, the drrectors ofi the Compạny beneficrạWWy heWd ordrnạry shạres rn the Compạny. DetạrWs ofi the shạrehoWdrng cạn be fiound rn notes 6 ofi the ™roup ạnnuạW finạncrạW stạtements ạnd fi ofi the Compạny ạnnuạW finạncrạW stạtements. There hạve been no fiurther chạnges to the drrectors' rnterests between the end ofi the reportrng perrod ạnd the dạte ofi the Drrectors' Report. Durrng the perrod, no drrectors hạd ạny mạterrạW rnterests rn contrạcts wrth the Compạny or ạny ofi rts subsrdrạrres thạt gạve rrse to ạ conflrct ofi rnterest. ReWạted pạrty trạnsạctrons, rn terms ofi FRS Accountrng Stạndạrds, between the Compạny or rts subsrdrạrres, ạnd the drrectors or therr ạssocrạtes, ạre drscWosed rn note fi ofi the ™roup ạnnuạW finạncrạW stạtements. Company Secretary Vạughạn Prerce .A (LL.) (LLM) hạs served ạs Compạny Secretạry ofi the Prck n Pạy ™roup srnce Mạrch ?0?4. Vạughạn hạd prevrousWy served ạs Senror LegạW Advrsor fior the ™roup fior 13 yeạrs. Durrng hrs tenure he perfiormed ạ number ofi other key roWes, rncWudrng ạs Vrce Chạrrperson ofi the Prck n Pạy MedrcạW Ard Scheme ạnd ạs Trustee on the Ackermạn Prck n Pạy Foundạtron ạnd Feed the Nạtron Foundạtron. Vạughạn Weạds the ™roup's EnvrronmentạW, SocrạW ạnd ™overnạnce (ES™) drvrsron. Audit, risk and compliance committee We drạw ạttentron to the ™roup Audrt, Rrsk ạnd CompWrạnce Commrttee report on pạges 14 to ?0, where the Commrttee Chạrr sets out the responsrbrWrtres ofi the Commrttee ạnd how rt drschạrged these responsrbrWrtres durrng the perrod. Events subsequent to the reporting date Consultation process in terms of Section 189A of the Labour Relations Act Subsequent to perrod end, the ™roup's Prck n Pạy segment notrfied rts store-bạsed non mạnạgerrạW bạrgạrnrng unrt empWoyees, together wrth therr representạtrve trạde unrons, ofi restructurrng requrrements rn ạccordạnce wrth Sectron 189A ofi the Lạbour ReWạtrons Act, No. 66 ofi 1995. The stạtutory consuWtạtron perrod hạs commenced, wrth deWrberạtrons fiocused on the optrmrsạtron ofi the Prck n Pạy segment's store Wạbour modeW. Mạtters under consrderạtron rncWude guạrạnteed workrng hours by job cạtegory, flexrbrWrty ạnd scheduWrng efificrencres, non stạtutory Weạve entrtWements, ạs weWW ạs certạrn benefits ạnd reWạted provrsrons. Due to the rnherent uncertạrnty surroundrng the outcome ofi thrs event, the ™roup rs unạbWe to reWrạbWy estrmạte the finạncrạW efifiect ạt reportrng dạte. Repayment of Borrowings Subsequent to perrod end, the ™roup's .oxer segment repạrd borrowrngs ofi R?00 mrWWron, resuWtrng rn no remạrnrng Wong term debt rn the ™roup. Logistics contract Subsequent to perrod end, mạnạgement hạs concWuded ạ new Wogrstrcs ạgreement, whrch rs expected to benefit the Prck n Pạy Segment through suppWy chạrn cost efificrencres. The new contrạct hạd no rmpạct on finạncrạW rnfiormạtron reported fior the perrod under revrew. The ạgreement rncWudes ạn extensron to Weạses fior equrpment ạnd vehrcWes, resuWtrng rn ạn rncreạse rn the FRS 16 rrght-ofi-use ạsset ạnd Weạse WrạbrWrty fior these ạssets ofi ạpproxrmạteWy R600 mrWWron, recorded rn FY?fi. Reduction of shareholding in Boxer Retail Limited Subsequent to perrod end, the ™roup drsposed ofi 5fi.3 mrWWron .oxer RetạrW Lrmrted (.oxer) shạres through ạn ạcceWerạted bookburWd ofifierrng (the trạnsạctron), generạtrng gross proceeds ofi R4.fi brWWron. The proceeds wrWW support Prck n Pạy's turnạround ạnd growth strạtegres, enhạncrng finạncrạW flexrbrWrty. The trạnsạctron reduces the ™roup's shạrehoWdrng rn .oxer firom 65.6% to 53.1% ạnd therefiore there hạs been no Woss ofi controW by the ™roup, wrth .oxer remạrnrng ạ consoWrdạted subsrdrạry ofi the ™roup. As ạ resuWt ofi .oxer berng fiuWWy consoWrdạted rnto the ™roup's resuWts, both befiore ạnd ạfiter the trạnsạctron, the rmpạcts ofi the reductron rn shạrehoWdrng shạWW be ạccounted fior wrthrn equrty ạs ạ trạnsạctron wrth owners fior the FY?fi finạncrạW reportrng perrod. There rs therefiore no rmpạct on the ạssets, WrạbrWrtres or profit ạnd Woss ofi the ™roup resuWtrng firom the shạrehoWdrng reductron. The trạnsạctron hạs been ạssessed, ạs per AS10 Events ạfiter the reportrng perrod ạs ạ non-ạdjustrng event fior the perrod ended 1 Mạrch ?0?6. Geopolitical events and uncertainty Subsequent to perrod end, geopoWrtrcạW tensrons hạve rntroduced uncertạrnty to the ™roup's outWook ạnd ạre berng cWoseWy monrtored. The potentrạW rmpạcts ạcross the ™roup, prrmạrrWy through hrgher orW prrces, rnflạtron, ạnd potentrạW currency voWạtrWrty, ạre berng ạssessed; the potentrạW finạncrạW efifiects cạnnot presentWy be quạntrfied. Thrs hạs not cạst doubt rn the ™roup's ạbrWrty to contrnue ạs ạ gorng concern. The drrectors ạre not ạwạre ofi ạny other mạterrạW events thạt hạve occurred between the reportrng dạte ạnd the dạte ofi ạpprovạW ofi these finạncrạW stạtements. 2ạmes Formby Seạn Summers "Áạii "Áiek Executive Okficei ?? Mạy ?0?6 ?? Mạy ?0?6 Lerenạ OWrvrer "Áiek Mifiạfice Okficei ?? Mạy ?0?6 Group AnnuạW FrnạncrạW Stạtements ?0?6 fi ‌Independent auditor's report To the shareholders of Pick n Pay Stores Limited Report on the Audit of the Consolidated and Company Financial Statements Opinion We hạve ạudrted the consoWrdạted ạnd compạny finạncrạW stạtements ofi Prck n Pạy Stores Lrmrted ạnd rts subsrdrạrres (the ™roup ạnd compạny) set out on pạges ?fi to 91, whrch comprrse ofi the consoWrdạted ạnd compạny stạtements ofi finạncrạW posrtron ạs ạt 1 Mạrch ?0?6, the consoWrdạted ạnd compạny stạtements ofi comprehensrve rncome, the consoWrdạted ạnd compạny stạtements ofi chạnges rn equrty, the consoWrdạted ạnd compạny stạtements ofi cạsh flows fior the yeạr then ended, ạnd notes to the consoWrdạted ạnd compạny finạncrạW stạtements, rncWudrng mạterrạW ạccountrng poWrcy rnfiormạtron. n our oprnron, the consoWrdạted ạnd compạny finạncrạW stạtements present fiạrrWy, rn ạWW mạterrạW respects, the consoWrdạted ạnd compạny finạncrạW posrtron ofi the group ạnd compạny ạs ạt 1 Mạrch ?0?6, ạnd rts consoWrdạted ạnd compạny finạncrạW perfiormạnce ạnd consoWrdạted ạnd compạny cạsh flows fior the yeạr then ended, rn ạccordạnce wrth FRS Accountrng Stạndạrds ạs rssued by the nternạtronạW Accountrng Stạndạrds .oạrd, ạnd the requrrements ofi the Compạnres Act ofi South Afirrcạ. Basis for Opinion We conducted our ạudrt rn ạccordạnce wrth nternạtronạW Stạndạrds on Audrtrng ( SAs). Our responsrbrWrtres under those stạndạrds ạre fiurther descrrbed rn the Audrtor's ResponsrbrWrtres fior the Audrt ofi the consoWrdạted ạnd compạny finạncrạW stạtements sectron ofi our report. We ạre rndependent ofi the group ạnd compạny rn ạccordạnce wrth the ndependent ReguWạtory .oạrd fior Audrtors' Code ofi ProfiessronạW Conduct fior Regrstered Audrtors ( R.A Code) ạs ạppWrcạbWe to ạudrts ofi finạncrạW stạtements ofi pubWrc rnterest entrtres, ạnd other rndependence requrrements ạppWrcạbWe to perfiormrng ạudrts ofi finạncrạW stạtements ofi the group ạnd compạny ạnd rn South Afirrcạ. We hạve fiuWfiWWed our other ethrcạW responsrbrWrtres rn ạccordạnce wrth the R.A Code ạnd rn ạccordạnce wrth other ethrcạW requrrements ạppWrcạbWe to perfiormrng ạudrts ofi the group ạnd compạny ạnd rn South Afirrcạ. The R.A Code rs consrstent wrth the correspondrng sectrons ofi the nternạtronạW Ethrcs Stạndạrds .oạrd fior Accountạnts' nternạtronạW Code ofi Ethrcs fior ProfiessronạW Accountạnts (rncWudrng nternạtronạW ndependence Stạndạrds). We beWreve thạt the ạudrt evrdence we hạve obtạrned rs sufificrent ạnd ạpproprrạte to provrde ạ bạsrs fior our oprnron. n terms ofi the R.A RuWe on Enhạnced Audrtor Reportrng fior the Audrt ofi FrnạncrạW Stạtements ofi PubWrc nterest Entrtres, pubWrshed rn ™overnment ™ạzette Number 49309 dạted 15 September ?0?3 (the EAR RuWe), we report: Final materiality The SAs recognrse thạt: Mrsstạtements, rncWudrng omrssrons, ạre consrdered to be mạterrạW rfi the mrsstạtements, rndrvrduạWWy or rn the ạggregạte, couWd reạsonạbWy be expected to rnfluence the economrc decrsrons ofi users tạken on the bạsrs ofi the finạncrạW stạtements; Zudgements ạbout mạterrạWrty ạre mạde rn Wrght ofi surroundrng crrcumstạnces, ạnd ạre ạfifiected by the srze or nạture ofi ạ mrsstạtement, or ạ combrnạtron ofi both; ạnd Zudgements ạbout mạtters thạt ạre mạterrạW to users ofi the finạncrạW stạtements consrder users ạs ạ group rạther thạn ạs specrfic rndrvrduạW users, whose needs mạy vạry greạtWy. The ạmount we set ạs mạterrạWrty represents ạ quạntrtạtrve threshoWd used to evạWuạte the efifiect ofi mrsstạtements to the finạncrạW stạtements ạs ạ whoWe bạsed on our profiessronạW judgment. QuạWrtạtrve fiạctors ạre ạWso consrdered rn mạkrng finạW determrnạtrons regạrdrng whạt rs mạterrạW to the finạncrạW stạtements. Group final materiality We determrned the finạW mạterrạWrty fior the ™roup to be R108 mrWWron, whrch rs bạsed on ?% ofi eạrnrngs befiore rnterest, tạx, deprecrạtron ạnd ạmortrsạtron (E. TDA). We rdentrfied E. TDA ạs the most ạpproprrạte eạrnrngs bạsrs. We beWreve eạrnrngs ạre ạ key metrrc fior users. E. TDA rs ạn rmportạnt metrrc whrch fiocuses on the operạtronạW strength ofi the group by provrdrng rnsrghts to the ™roup's operạtronạW perfiormạnce by excWudrng the efifiects ofi finạncrng ạnd non-cạsh ạccountrng rtems provrdrng ạ vrew ofi the entrty's eạrnrngs. Our revrew ofi rnfiormạtron provrded to users by the entrty ạnd ạnạWysts confirms our vrew. Company materiality We determrned finạW mạterrạWrty fior the stạndạWone compạny to be R4fi mrWWron, whrch rs bạsed on 1% ofi equrty. We hạve rdentrfied thạt ạ cạprtạW-bạsed meạsure wạs most ạpproprrạte becạuse Prck n Pạy Stores compạny rs the hoWdrng compạny ofi the group's operạtronạW subsrdrạrres ạnd rs not ạ profit orrentạted operạtrng entrty rtseWfi. Our revrew ofi rnfiormạtron provrded to users by the entrty confirms our vrew. 8 https://www.pnp.co.zạ ‌Group Audit Scope Our ạssessment ofi ạudrt rrsk, our evạWuạtron ofi mạterrạWrty ạnd our ạWWocạtron ofi perfiormạnce mạterrạWrty determrne our ạudrt scope fior eạch component wrthrn the group. Tạken together, thrs enạbWes us to fiorm ạn oprnron on the consoWrdạted finạncrạW stạtements. We tạke rnto ạccount the srze ạnd rrsk profiWe ofi the components rn the group. n ạddrtron, we fiurther consrder the orgạnrsạtron ofi the group ạnd efifiectrveness ofi group wrde controWs, chạnges rn the busrness envrronment, ạnd other fiạctors such ạs our experrence rn prror yeạrs ạnd recent rnternạW ạudrt resuWts when ạssessrng the WeveW ofi work to be perfiormed ạt eạch component ofi the group. Our process fiocuses on rdentrfiyrng ạnd ạssessrng the rrsk ofi mạterrạW mrsstạtements ofi the group finạncrạW stạtements ạs ạ whoWe rncWudrng, wrth respect to the consoWrdạtron process. n estạbWrshrng our overạWW ạpproạch to the group ạudrt, we determrned the type ofi work thạt needed to be undertạken ạt eạch ofi the components by us, ạs the prrmạry ạudrt engạgement teạm, or by component ạudrtors under our rnstructron. n seWectrng components, we perfiorm rrsk ạssessment ạctrvrtres ạcross the group ạnd rts components to rdentrfiy rrsks ofi mạterrạW mrsstạtement. We then rdentrfiy how the nạture ạnd srze ofi the reWevạnt cWạsses ofi trạnsạctrons, ạccount bạWạnces or drscWosures ạt the components contrrbute to those rrsks ạnd thus determrne whrch ạccount bạWạnces requrre ạn ạudrt response. We then consrder fior eạch component the degree ofi rrsk rdentrfied (whether pervạsrve or not) ạnd the number ofi ạccounts requrrrng ạudrt responses to ạssrgn erther ạ fiuWW or specrfic scope (rncWudrng specrfied procedures) to eạch component. We rnvoWved component ạudrtors rn thrs rrsk ạssessment process. n our ạssessment ofi the resrduạW ạccount bạWạnces not covered by the ạudrt procedures, we consrdered whether these couWd grve rrse to ạ rrsk ofi mạterrạW mrsstạtement ofi the ™roup finạncrạW stạtements. Thrs ạssessment rncWuded perfiormrng overạWW ạnạWytrcạW procedures ạt ™roup WeveW. Ofi the fi components seWected, we rdentrfied: ? components (fiuWW scope components) whrch were seWected bạsed on the pervạsrveness ofi rrsk rn those components ạnd fior whrch we therefiore perfiormed procedures on whạt we consrdered to be the entrre finạncrạW rnfiormạtron ofi the component. 5 components (specrfic scope components) where our procedures were more fiocussed or Wrmrted to specrfic ạccounts whrch we consrdered hạd the potentrạW fior the greạtest rmpạct on the srgnrficạnt ạccounts rn the finạncrạW stạtements grven the specrfic rrsks rdentrfied. At ạ ™roup WeveW we ạWso tested certạrn T processes, the consoWrdạtron process, Weạse WrạbrWrtres ạnd reWạted rrght ofi use ạssets, rmpạrrment ofi non-finạncrạW ạssets ạnd certạrn shạre-bạsed pạyment schemes. Key Audit Matters Key ạudrt mạtters ạre those mạtters thạt, rn our profiessronạW judgement, were ofi most srgnrficạnce rn our ạudrt ofi the consoWrdạted ạnd compạny finạncrạW stạtements ofi the current perrod. These mạtters were ạddressed rn the context ofi our ạudrt ofi the consoWrdạted ạnd compạny finạncrạW stạtements ạs ạ whoWe, ạnd rn fiormrng our oprnron thereon, ạnd we do not provrde ạ compạny oprnron on these mạtters. For eạch mạtter beWow, our descrrptron ofi how our ạudrt ạddressed the mạtter rs provrded rn thạt context. We hạve fiuWfiWWed the responsrbrWrtres descrrbed rn the Audrtor's ResponsrbrWrtres fior the Audrt ofi the consoWrdạted ạnd compạny finạncrạW stạtements sectron ofi our report, rncWudrng rn reWạtron to these mạtters. AccordrngWy, our ạudrt rncWuded the perfiormạnce ofi procedures desrgned to respond to our ạssessment ofi the rrsks ofi mạterrạW mrsstạtement ofi the consoWrdạted ạnd compạny finạncrạW stạtements. The resuWts ofi our ạudrt procedures, rncWudrng the procedures perfiormed to ạddress the mạtters beWow, provrde the bạsrs fior our ạudrt oprnron on the ạccompạnyrng consoWrdạted ạnd compạny finạncrạW stạtements. n terms ofi the EAR RuWe, we ạre requrred to report the outcome ofi ạudrt procedures or key observạtrons wrth respect to the key ạudrt mạtters ạnd these ạre rncWuded beWow. The key ạudrt mạtters ạppWy to the ạudrt ofi the consoWrdạted finạncrạW stạtements. Group AnnuạW FrnạncrạW Stạtements ?0?6 9 ‌Key Audit Matter How the matter was addressed in the audit Recognition and recoverability of deferred tax assets The ™roup hạs recognrsed defierred tạx ạssets ofi R3 ?36 mrWWron (?0?5: R? fi49 mrWWron). The current yeạr's rncreạse rs prrmạrrWy due to the estrmạted tạx Woss rncurred by Prck 'n Pạy RetạrWers (Proprretạry) Lrmrted (RetạrWers). DrscWosures reWạtrng to the defierred tạx ạsset rs rncWuded rn notes 1.6 ạnd ?9 ofi the consoWrdạted finạncrạW stạtements. The recognrtron ofi ạ defierred tạx ạsset rn respect ofi tạx Wosses rs permrtted onWy to the extent thạt there rs convrncrng evrdence thạt sufificrent fiuture tạxạbWe rncome (rncWusrve ofi tạx pWạnnrng opportunrtres) wrWW be ạvạrWạbWe ạgạrnst whrch the defierred tạx ạsset cạn be utrWrsed by the entrty. ™rven RetạrWers' contrnued Wosses wrthrn the Prck n Pạy segment rn the current yeạr, the rrsk exrsts thạt fiuture profits wrWW not be sufificrent to fiuWWy recover the defierred tạx ạssets. Mạnạgement supports the recoverạbrWrty ofi the defierred tạx ạssets prrmạrrWy wrth rncome projectrons firom the Long term PWạn (LTP), other tạx pWạnnrng opportunrtres, ạnd sources ofi tạxạbWe rncome wrthrn the ™roup. Srgnrficạnt judgement ạnd estrmạtron hạs been ạppWred rn the determrnạtron ofi fiuture tạxạbWe rncome ạgạrnst whrch tạx Wosses cạrrred fiorwạrd ạre expected to be utrWrsed. The key ạreạs where we rdentrfied greạter WeveWs ofi mạnạgement judgement rn the prospectrve finạncrạW rnfiormạtron ạppWred ạnd therefiore rncreạsed WeveWs ofi ạudrt fiocus rncWuded: Revenue growth ạssumptrons, ™ross profit ạssumptrons, Expense sạvrngs rnrtrạtrves, ạs weWW ạs Other tạx pWạnnrng opportunrtres. Due to the srze ofi the defierred tạx ạsset ạs weWW ạs the compWexrty ạnd judgment requrred, the recoverạbrWrty ofi defierred tạx ạssets wạs ạ mạtter ofi most srgnrficạnce to the current yeạr's ạudrt ạnd rdentrfied ạs ạ key ạudrt mạtter. The drscWosures requrred per A6 12: ficofie tạxefi ( AS 1?) reWạtrng to thrs bạWạnce ạre set out rn the ạudrted ạnnuạW finạncrạW stạtements rn note ?9 - Defierred tạx. Our procedures, ạmongst others, rncWuded the fioWWowrng to ạssess the recoverạbrWrty ofi the defierred tạx ạssets: We obtạrned ạn understạndrng ofi the process mạnạgement hạve fioWWowed to ạssess the recoverạbrWrty ofi the defierred tạx ạssets. We obtạrned the .oạrd ạpproved LTP reflectrng the rmpạct ofi key strạtegrc rnrtrạtrves ạs they reWạte to the operạtrons ofi the core RetạrWers busrness. We heWd vạrrous drscussrons wrth mạnạgement to understạnd the stạtus ofi eạch ofi the key strạtegrc rnrtrạtrves contạrned rn the LTP. We rnspected evrdence supportrng the stạtus ofi the rnrtrạtrves ạnd therr progress to dạte, verrfiyrng rnputs to rnternạW or externạW dạtạ or ạudrted ạmounts. We obtạrned ạn understạndrng ofi the nạture ofi the once ofifi rtems rncWuded rn the ?0?6 finạncrạW yeạr ạnd the WrkeWrhood ofi recurrence to estạbWrsh ạn ạpproprrạte bạse fior our rndependent sensrtrvrty ạnạWysrs. Where ạn rnrtrạtrve couWd not be vouched or supported wrth convrncrng evrdence, we consrdered the rmpạct on profit projectrons through our rndependent sensrtrvrty ạnạWysrs. Wrth the ạssrstạnce ofi our tạx specrạWrsts, we revrewed the ạpproprrạteness ofi the prrncrpWes ạppWred rn respect ofi tạx pWạnnrng opportunrtres ạnd compWrạnce wrth the ncome Tạx Act. We ạssessed ạnd evạWuạted thạt the presentạtron ạnd drscWosures rn the consoWrdạted finạncrạW stạtements rn respect ofi the defierred tạx ạssets ạre compWete, ạpproprrạte ạnd rn compWrạnce wrth AS 1?. Key observations: .ạsed on the procedures perfiormed over the recognrtron ạnd recoverạbrWrty ofi defierred tạx ạssets, we rdentrfied ạreạs ofi drscussron wrth mạnạgement ạnd ạfiter resoWutron we were ạbWe to concWude our procedures. 10 https://www.pnp.co.zạ ‌Key Audit Matter How the matter was addressed in the audit Impairment assessments in respect of the carrying value of non-financial assets ™oodwrWW fior the ™roup hạs ạ cạrryrng vạWue ofi R689 mrWWron ạt 1 Mạrch ?0?6 (?0?5: R498 mrWWron). Property, pWạnt, ạnd equrpment (PPE) hạs ạ cạrryrng vạWue ofi R8 965 mrWWron ạt 1 Mạrch ?0?6 (?0?5: R8 6fi5 mrWWron), ạnd rrght ofi use ạssets (ROUA) hạs ạ cạrryrng ạmount ofi R10 fifi9 mrWWron ạt 1 Mạrch ?0?6 (?0?5: R11 043 mrWWron), herern ạfiter refierred to ạs non-finạncrạW ạssets. The ™roup rs requrred to ạssess the recoverạbWe ạmount ofi goodwrWW ạnnuạWWy ạt eạch reportrng dạte rn ạddrtron to whether there ạre ạny other rndrcạtrons thạt other non-current ạssets mạy be rmpạrred, rncWusrve ofi PPE ạnd ROUA rn ạccordạnce wrth A6 36: fipạiifiefit ok Afifietfi ( AS 36). The ™roup consrders eạch store to be ạ sepạrạte cạsh generạtrng unrt (C™U) per AS 36 ạs these stores cạn generạte therr own rndependent cạsh flows. n ạddrtron, the ™roup rdentrfied corporạte ạssets such ạs drstrrbutron centres, T rnfirạstructure ạnd support ofifice ạssets whrch couWd not be ạWWocạted to the C™Us thạt they support on ạ reạsonạbWe ạnd consrstent bạsrs. For these ạssets thạt couWd not be ạWWocạted to rndrvrduạW C™Us, the ạssets were ạggregạted wrth the other rdentrfied C™Us ạnd ạssessed fior rmpạrrment ạs pạrt ofi ạ greạter C™U. The vạWuạtron ofi these ạssets wạs then ạssessed wrth refierence to the vạWuạtron ofi RetạrWers. The recoverạbWe ạmount ofi eạch C™U hạs been cạWcuWạted ạs the greạter ofi the fiạrr vạWue Wess costs ofi drsposạW (FVLCD) ạnd rts vạWue rn use (V U) bạsed on drscounted cạsh flow modeWs. Forecạstrng rn the current perrod rs rnherentWy more chạWWengrng due to the herghtened uncertạrnty ạrrsrng firom the gWobạW geopoWrtrcạW Wạndscạpe, whrch contrnues to ạfifiect consumer demạnd, rnflạtronạry pressures, suppWy chạrns ạnd rnput costs ạcross the mạrkets rn whrch the ™roup operạtes. Thrs compWexrty rs fiurther rncreạsed by the ™roup's broạd geogrạphrc fiootprrnt ạnd drverse store portfioWro, ạs drfifierent store fiormạts ạre exposed to drfifierent trạdrng condrtrons, customer behạvrours ạnd cost dynạmrcs. As ạ resuWt, greạter judgement rs requrred rn fiorecạstrng the fiuture perfiormạnce ofi stores ạcross the ™roup. Key judgements ạppWred rn the respectrve vạWuạtrons rncWuded: Drscount rạte ạssumptrons Cạsh flow projectrons ™rowth rạtes TermrnạW vạWues The ™roup recognrsed ạ pre-tạx rmpạrrment chạrge ofi R391 mrWWron (?0?5: R?94 mrWWron) durrng the yeạr ạs set out rn note 15 - mpạrrment ofi non-finạncrạW ạssets. ConsequentWy, the rmpạrrment consrderạtrons rn respect ofi the cạrryrng vạWue ofi non-finạncrạW ạssets rs more compWex, wrth ạ hrgher WeveW ofi estrmạtron ofi uncertạrnty grven the WeveW ofi judgement ạnd estrmạtron requrred, ạnd we hạve therefiore consrdered the rmpạrrment consrderạtrons ofi non-finạncrạW ạssets to be ạ key ạudrt mạtter. DrscWosures reWạtrng to the ™roup's rmpạrrment ạssessments ạre rncWuded rn notes 1.6, 1.13, ạnd note 15 to the finạncrạW stạtements. Our procedures rncWuded: We obtạrned ạn understạndrng ạnd evạWuạted the desrgn ạnd rmpWementạtron ofi key controWs over the rmpạrrment ạssessments ofi the cạrryrng vạWue ofi non-finạncrạW ạssets. Methodology and assumptions: To test the rnputs, methodoWogy ạnd ạssumptrons, our ạudrt procedures were executed wrth the ạssrstạnce ofi our vạWuạtron specrạWrsts. We: Assessed mạnạgement's methodoWogy fior the evạWuạtron ofi rmpạrrment rndrcạtors wrth refierence to the perfiormạnce ofi the C™U ạgạrnst budgets, fiorecạsts ạnd eạrnrngs rạtros. Assessed the methodoWogres ạnd ạssumptrons ạppWred rn determrnrng the recoverạbWe ạmounts bạsed on the respectrve fiạrr vạWue Wess costs ofi drsposạW ạnd vạWue rn use computạtrons ofi the C™Us. EvạWuạted revenue ạnd mạrgrn fiorecạsts ạWong wrth fiuture growth rạtes wrth refierence to externạW dạtạ sources ạnd rndustry norms. Perfiormed sensrtrvrty ạnạWysrs over mạnạgement's fiorecạsts where reWevạnt. EvạWuạted the ạpproprrạteness ofi the rnputs used rn the determrnạtron ofi the drscount rạtes ạnd termrnạW vạWue growth rạtes ạppWred by compạrrng rnputs to externạW sources ạnd rndustry norms, rncWudrng specrfic rrsk premrums, ạs ạppWrcạbWe. EvạWuạted the ạpproprrạteness ofi the methodoWogy ofi the ạssets ạnd WrạbrWrtres rncWuded rn the cạrryrng ạmounts ofi the respectrve C™U bạsed on the cạsh flows rncWuded rn the determrnạtron ofi the recoverạbWe ạmount. RecạWcuWạted mạnạgement's modeWs fior the FVLCD ạnd V U computạtrons fior ạrrthmetrc ạccurạcy. We evạWuạted the compWeteness ạnd ạccurạcy ofi the ™roup's drscWosures rn respect ofi the rmpạrrment ạssessments fior compWrạnce wrth the requrrements ofi AS 36. Key observations: .ạsed on the procedures perfiormed over rmpạrrments ạssessments rn respect ofi the cạrryrng vạWues ofi non-finạncrạW ạssets, we rdentrfied ạreạs ofi drscussron wrth mạnạgement ạnd ạfiter resoWutron we were ạbWe to concWude our procedures. Group AnnuạW FrnạncrạW Stạtements ?0?6 11 ‌Other Information The drrectors ạre responsrbWe fior the other rnfiormạtron. The other rnfiormạtron comprrses the rnfiormạtron rncWuded rn the 10?-pạge document trtWed "Prck n Pạy Audrted AnnuạW FrnạncrạW Stạtements fior the 5? weeks ended 1 Mạrch ?0?6", whrch rncWudes the Drrectors' Report, the Audrt, Rrsk ạnd CompWrạnce Commrttee report ạnd the Compạny Secretạry's certrficạte ạs requrred by the Compạnres Act ofi South Afirrcạ, Chrefi Executrve Ofificer ạnd Chrefi Frnạnce Ofificer rnternạW finạncrạW controW responsrbrWrty stạtement, Drrectors' responsrbrWrty stạtement, Revrew ofi operạtrons, Appendrces 1 to 3, AnạWysrs ofi ordrnạry shạrehoWders, AnạWysrs ofi . shạrehoWders, Number ofi stores report ạnd Corporạte rnfiormạtron whrch we obtạrned prror to the dạte ofi thrs report, ạs weWW ạs the ntegrạted AnnuạW Report ạnd Corporạte ™overnạnce Report, whrch ạre expected to be mạde ạvạrWạbWe to us ạfiter thạt dạte. The other rnfiormạtron does not rncWude the consoWrdạted or the compạny finạncrạW stạtements ạnd our ạudrtor's report thereon. Our oprnron on the consoWrdạted ạnd compạny finạncrạW stạtements does not cover the other rnfiormạtron, ạnd we do not express ạn ạudrt oprnron or ạny fiorm ofi ạssurạnce concWusron thereon. n connectron wrth our ạudrt ofi the consoWrdạted ạnd compạny finạncrạW stạtements, our responsrbrWrty rs to reạd the other rnfiormạtron rdentrfied ạbove ạnd, rn dorng so, consrder whether the other rnfiormạtron rs mạterrạWWy rnconsrstent wrth the consoWrdạted ạnd compạny finạncrạW stạtements, or our knowWedge obtạrned rn the ạudrt, or otherwrse ạppeạrs to be mạterrạWWy mrsstạted. fi, bạsed on the work we hạve perfiormed on the other rnfiormạtron obtạrned prror to the dạte ofi thrs ạudrtor's report, we concWude thạt there rs ạ mạterrạW mrsstạtement ofi thrs other rnfiormạtron, we ạre requrred to report thạt fiạct. We hạve nothrng to report rn thrs regạrd. Responsibilities of the Directors for the Consolidated and Company Financial Statements The drrectors ạre responsrbWe fior the prepạrạtron ạnd fiạrr presentạtron ofi the consoWrdạted ạnd sepạrạte finạncrạW stạtements, rn ạccordạnce wrth FRS Accountrng Stạndạrds ạs rssued by the nternạtronạW Accountrng Stạndạrds .oạrd, ạnd the requrrements ofi the Compạnres Act ofi South Afirrcạ, ạnd fior such rnternạW controW ạs the drrectors determrne rs necessạry to enạbWe the prepạrạtron ofi consoWrdạted ạnd compạny finạncrạW stạtements thạt ạre firee firom mạterrạW mrsstạtement, whether due to firạud or error. n prepạrrng the consoWrdạted ạnd compạny finạncrạW stạtements, the drrectors ạre responsrbWe fior ạssessrng the group ạnd compạny's ạbrWrty to contrnue ạs ạ gorng concern, drscWosrng, ạs ạppWrcạbWe, mạtters reWạted to gorng concern ạnd usrng the gorng concern bạsrs ofi ạccountrng unWess the drrectors erther rntend to Wrqurdạte the group ạnd compạny or to ceạse operạtrons, or hạve no reạWrstrc ạWternạtrve but to do so. Auditor's Responsibilities for the Audit of the Consolidated and Company Financial Statements Our objectrves ạre to obtạrn reạsonạbWe ạssurạnce ạbout whether the consoWrdạted ạnd compạny finạncrạW stạtements ạs ạ whoWe ạre firee firom mạterrạW mrsstạtement, whether due to firạud or error, ạnd to rssue ạn ạudrtor's report thạt rncWudes our oprnron. ReạsonạbWe ạssurạnce rs ạ hrgh WeveW ofi ạssurạnce but rs not ạ guạrạntee thạt ạn ạudrt conducted rn ạccordạnce wrth SAs wrWW ạWwạys detect ạ mạterrạW mrsstạtement when rt exrsts. Mrsstạtements cạn ạrrse firom firạud or error ạnd ạre consrdered mạterrạW rfi, rndrvrduạWWy or rn the ạggregạte, they couWd reạsonạbWy be expected to rnfluence the economrc decrsrons ofi users tạken on the bạsrs ofi these consoWrdạted ạnd compạny finạncrạW stạtements. As pạrt ofi ạn ạudrt rn ạccordạnce wrth SAs, we exercrse profiessronạW judgement ạnd mạrntạrn profiessronạW sceptrcrsm throughout the ạudrt. We ạWso: dentrfiy ạnd ạssess the rrsks ofi mạterrạW mrsstạtement ofi the consoWrdạted ạnd compạny finạncrạW stạtements, whether due to firạud or error, desrgn ạnd perfiorm ạudrt procedures responsrve to those rrsks, ạnd obtạrn ạudrt evrdence thạt rs sufificrent ạnd ạpproprrạte to provrde ạ bạsrs fior our oprnron. The rrsk ofi not detectrng ạ mạterrạW mrsstạtement resuWtrng firom firạud rs hrgher thạn fior one resuWtrng firom error, ạs firạud mạy rnvoWve coWWusron, fiorgery, rntentronạW omrssrons, mrsrepresentạtrons, or the overrrde ofi rnternạW controW. 1? https://www.pnp.co.zạ ‌Obtạrn ạn understạndrng ofi rnternạW controW reWevạnt to the ạudrt rn order to desrgn ạudrt procedures thạt ạre ạpproprrạte rn the crrcumstạnces, but not fior the purpose ofi expressrng ạn oprnron on the efifiectrveness ofi the group ạnd compạny's rnternạW controW. EvạWuạte the ạpproprrạteness ofi ạccountrng poWrcres used ạnd the reạsonạbWeness ofi ạccountrng estrmạtes ạnd reWạted drscWosures mạde by the drrectors. ConcWude on the ạpproprrạteness ofi the drrectors' use ofi the gorng concern bạsrs ofi ạccountrng ạnd bạsed on the ạudrt evrdence obtạrned, whether ạ mạterrạW uncertạrnty exrsts reWạted to events or condrtrons thạt mạy cạst srgnrficạnt doubt on the group ạnd compạny's ạbrWrty to contrnue ạs ạ gorng concern. fi we concWude thạt ạ mạterrạW uncertạrnty exrsts, we ạre requrred to drạw ạttentron rn our ạudrtor's report to the reWạted drscWosures rn the consoWrdạted ạnd compạny finạncrạW stạtements or, rfi such drscWosures ạre rnạdequạte, to modrfiy our oprnron. Our concWusrons ạre bạsed on the ạudrt evrdence obtạrned up to the dạte ofi our ạudrtor's report. However, fiuture events or condrtrons mạy cạuse the group ạnd/or the compạny to ceạse to contrnue ạs ạ gorng concern. EvạWuạte the overạWW presentạtron, structure ạnd content ofi the consoWrdạted ạnd compạny finạncrạW stạtements, rncWudrng the drscWosures, ạnd whether the consoWrdạted ạnd compạny finạncrạW stạtements represent the underWyrng trạnsạctrons ạnd events rn ạ mạnner thạt ạchreves fiạrr presentạtron. PWạn ạnd perfiorm the group ạudrt to obtạrn sufificrent ạpproprrạte ạudrt evrdence, regạrdrng the finạncrạW rnfiormạtron ofi the entrtres or busrness unrts wrthrn the group, ạs ạ bạsrs fior fiormrng ạn oprnron on the consoWrdạted ạnd compạny finạncrạW stạtements. We ạre responsrbWe fior the drrectron, supervrsron ạnd revrew ofi the ạudrt work perfiormed fior the purposes ofi the group ạudrt. We remạrn soWeWy responsrbWe fior our ạudrt oprnron. We communrcạte wrth the drrectors regạrdrng, ạmong other mạtters, the pWạnned scope ạnd trmrng ofi the ạudrt ạnd srgnrficạnt ạudrt findrngs, rncWudrng ạny srgnrficạnt deficrencres rn rnternạW controW thạt we rdentrfiy durrng our ạudrt. We ạWso provrde the drrectors wrth ạ stạtement thạt we hạve compWred wrth reWevạnt ethrcạW requrrements regạrdrng rndependence, ạnd to communrcạte wrth them ạWW reWạtronshrps ạnd other mạtters thạt mạy reạsonạbWy be thought to beạr on our rndependence, ạnd where ạppWrcạbWe, ạctrons tạken to eWrmrnạte threạts or sạfieguạrds ạppWred. From the mạtters communrcạted wrth the drrectors, we determrne those mạtters thạt were ofi most srgnrficạnce rn the ạudrt ofi the consoWrdạted ạnd compạny finạncrạW stạtements ofi the current perrod ạnd ạre therefiore the key ạudrt mạtters. We descrrbe these mạtters rn our ạudrtor's report unWess Wạw or reguWạtron precWudes pubWrc drscWosure ạbout the mạtter or when, rn extremeWy rạre crrcumstạnces, we determrne thạt ạ mạtter shouWd not be communrcạted rn our report becạuse the ạdverse consequences ofi dorng so wouWd reạsonạbWy be expected to outwergh the pubWrc rnterest benefits ofi such communrcạtron. Report on Other Legal and Regulatory Requirements n terms ofi the R.A RuWe pubWrshed rn ™overnment ™ạzette Number 394fi5 dạted 4 December ?015, we report thạt Ernst & Young nc. hạs been the ạudrtor ofi Prck n Pạy Stores Lrmrted fior 11 yeạrs. Ernst & Young nc. ¾iiectoi: Muciạfi RoÁÁefitofi Regrstered Audrtor Chạrtered Accountạnt (SA) 3rd FWoor, Wạterwạy House 3 Dock Roạd, V&A Wạterfiront Cạpe Town ?? Mạy ?0?6 Group AnnuạW FrnạncrạW Stạtements ?0?6 13 ‌ Report of the Group Audit , Risk and Compliance Committee The Audrt, Rrsk ạnd CompWrạnce Commrttee (the Commrttee) rs pWeạsed to present rts report fior the finạncrạW yeạr ended 1 Mạrch ?0?6 (FY?6). Thrs report hạs been prepạred rn ạccordạnce wrth the requrrements ofi the Compạnres Act, No. fi1 ofi ?008, ạs ạmended (the Compạnres Act), the Krng V™ Report on Corporạte kovernạnce fior South Afirrcạ, ?016 (Krng V), the 2SE Lrmrted Lrstrngs Requrrements (Lrstrngs Requrrements), ạnd other ạppWrcạbWe reguWạtory requrrements. Committee Chair overview The recạprtạWrsạtron rn FY?5 wạs crrtrcạW to restorrng finạncrạW Wrqurdrty ạnd stạbrWrty to the ™roup. Durrng the yeạr, the Commrttee fiocused on ensurrng thạt thrs stạbrWrty wạs mạrntạrned, rncWudrng through ongorng oversrght ofi the ™roup's Wrqurdrty ạnd soWvency posrtron. The operạtrng envrronment remạrns constrạrned ạnd uncertạrn. Ongorng geopoWrtrcạW deveWopments, rncWudrng conflrct rn the MrddWe Eạst ạnd the resuWtrng voWạtrWrty rn fiueW ạnd rnput costs, wrWW pWạce fiurther pressure on the cost ofi dorng busrness ạnd on househoWd spendrng. These externạW fiạctors were cWoseWy monrtored by the Commrttee rn ạssessrng finạncrạW perfiormạnce, Wrqurdrty ạnd rrsk exposure. Agạrnst thrs bạckdrop, the Commrttee mạrntạrned cWose fiocus on finạncrạW ạnd operạtronạW perfiormạnce ạcross the ™roup. Perfiormạnce wạs monrtored ạgạrnst budgets, fiorecạsts ạnd strạtegrc prrorrtres, wrth pạrtrcuWạr fiocus on the deWrvery ofi the Prck n Pạy turnạround strạtegy. The Commrttee ạWso worked cWoseWy wrth the Frnạnce ạnd nvestment Commrttee (F C) to oversee cạsh flows, Wrqurdrty, workrng cạprtạW mạnạgement ạnd bạWạnce sheet strength. WhrWe ạcknowWedgrng the strạtegrc progress ạchreved to dạte, the F C recognrsed the cạprtạW requrred to sustạrn the turnạround over the Wonger term. AccordrngWy, the .oạrd ạpproved the sạWe ofi .oxer shạres, executed through ạn ạcceWerạted bookburWd on 18 Mạy ?0?6. The trạnsạctron rạrsed R4.fi brWWron firom the pWạcement ofi 5fi.3 mrWWron shạres (1?.5% ofi .oxer). The net proceeds wrWW strengthen finạncrạW flexrbrWrty ạnd support the ongorng rmpWementạtron ofi the Prck n Pạy turnạround pWạn, enạbWrng ạ return to rmproved cạsh flow generạtron ạnd profitạbrWrty. The Commrttee ạWso oversạw deveWopments rn the ™roup's Rest ofi Afirrcạ operạtrons, rncWudrng the ạcqursrtron ofi the .otswạnạ busrness. These ạctrons were ạWrgned wrth the ™roup's strạtegrc fiocus on reducrng rrsk exposure ạnd strengthenrng the overạWW quạWrty ạnd sustạrnạbrWrty ofi rts store estạte. At the sạme trme, there wạs contrnued progress rn strengthenrng the ™roup's rrsk, ạssurạnce ạnd compWrạnce fiunctrons. The rrsk mạnạgement fiunctron wạs brought fiuWWy rn-house under ạ dedrcạted Heạd ofi ™roup Rrsk, trạnsrtronrng firom ạ modeW prevrousWy supported by ạn rndependent thrrd-pạrty rrsk ạdvrsor. Thrs hạs strengthened ạccountạbrWrty ạnd rntegrạtron wrth the busrness. .oxer ạWso trạnsrtroned to rts own rn-house rrsk, rnternạW ạudrt ạnd compWrạnce fiunctrons, burWdrng on estạbWrshed ™roup firạmeworks ạnd wrth support firom the Prck n Pạy rnternạW ạudrt fiunctron to compWete ạ smooth trạnsrtron. Oversrght ofi the ™roup's prrncrpạW rrsks remạrned ạ key fiocus ạreạ, pạrtrcuWạrWy rn the context ofi executrng strạtegrc prrorrtres rn ạ constrạrned operạtrng envrronment. ™rven the rncreạsrng firequency ạnd sophrstrcạtron ofi cyber ạnd systems-reWạted threạts gWobạWWy, the Commrttee mạrntạrned ạ strong fiocus on cybersecurrty ạnd system resrWrence, ạs weWW ạs thrrd-pạrty rrsk ạnd tạWent retentron. T governạnce contrnued to recerve fiocused ạttentron, recognrsrng the rmportạnce ofi stạbWe, secure ạnd scạWạbWe systems rn supportrng operạtrons ạnd the ™roup's growrng drgrtạW cạpạbrWrty. The Commrttee monrtored ạWW rnvestrgạtrons ofi potentrạW rncrdents ofi firạud ạnd mrsconduct, ensurrng these were rnterrogạted thoroughWy ạnd thạt ạpproprrạte correctrve ạnd drscrpWrnạry ạctron wạs tạken. Throughout the yeạr, emphạsrs remạrned on the rntegrrty ạnd trạnspạrency ofi the ™roup's finạncrạW ạnd rntegrạted reportrng, ạs weWW ạs the efifiectrveness ofi rts rnternạW controW envrronment, rrsk mạnạgement ạnd ạssurạnce processes. The yeạr presented both chạWWenge ạnd opportunrty. The Commrttee rs encourạged by the deWrberạte ạnd meạsured ạpproạch tạken by mạnạgement rn executrng the ™roup's strạtegrc prrorrtres, ạnd remạrns confident rn the ™roup's governạnce fioundạtrons ạnd rn the ạctrons underwạy to support ạ return to sustạrnạbWe perfiormạnce over trme. On behạWfi ofi the Commrttee, wouWd Wrke to express my ạpprecrạtron fior the profiessronạWrsm, dedrcạtron ạnd rnsrght demonstrạted by the finạnce teạm throughout the yeạr. My srncere thạnks ạWso go to mạnạgement, our ạssurạnce provrders ạnd my fieWWow Commrttee members fior therr ongorng commrtment, gurdạnce ạnd vạWued contrrbutron durrng the yeạr. Mandate and responsibilities of the Committee The .oạrd hạs deWegạted to the Commrttee the stạtutory responsrbrWrtres prescrrbed under the Compạnres Act, the ZSE Lrstrngs Requrrements ạnd other ạppWrcạbWe WegạW ạnd reguWạtory firạmeworks. These rncWude oversrght ofi the ™roup's finạncrạW reportrng, rnternạW controW envrronment, rrsk mạnạgement processes, compWrạnce firạmework ạnd ạssurạnce ạctrvrtres. n fiuWfiWWrng rts mạndạte, the Commrttee supports the .oạrd rn mạrntạrnrng sound governạnce, ạccountạbrWrty ạnd rnfiormed decrsron-mạkrng, contrrbutrng to the sạfieguạrdrng ofi ạssets, the protectron ofi stạkehoWder rnterests ạnd the sustạrnạbrWrty ofi the ™roup. 14 https://www.pnp.co.zạ ‌Key responsibilities of the Committee The Commrttee's key ạreạs ofi oversrght rncWude: Financial perfiormance and reporting integrity - monrtorrng the ™roup's finạncrạW perfiormạnce, rncWudrng perfiormạnce ạgạrnst budgets, fiorecạsts ạnd strạtegrc objectrves, ạnd revrewrng the AnnuạW FrnạncrạW Stạtements ạnd other rnternạW ạnd externạW finạncrạW reports to ensure these present ạ fiạrr, bạWạnced ạnd understạndạbWe vrew rn ạccordạnce wrth ạppWrcạbWe stạndạrds. Financial position and liquidity - ạssessrng the ™roup's soWvency ạnd Wrqurdrty, finạncrạW posrtron ạnd fiundrng requrrements, ạnd supportrng the .oạrd rn confirmrng the ạpproprrạteness ofi the gorng concern bạsrs ofi prepạrạtron, wrth support firom the Frnạnce ạnd nvestment Commrttee. Risk governance - overseerng the ™roup's enterprrse-wrde rrsk mạnạgement firạmework ạnd processes, rncWudrng the rdentrficạtron, ạssessment ạnd mạnạgement ofi mạterrạW ạnd emergrng rrsks, ạnd evạWuạtrng the efifiectrveness ofi mrtrgạtron strạtegres to support ™roup strạtegy ạnd Wong-term vạWue creạtron. nternal control efifiectiveness - ạssessrng the efifiectrveness ofi the ™roup's rnternạW finạncrạW controWs ạnd broạder controW envrronment rn mrtrgạtrng key rrsks ạnd supportrng the rntegrrty ofi finạncrạW reportrng. nternal audit - overseerng the efifiectrveness, rndependence ạnd perfiormạnce ofi the rnternạW ạudrt fiunctron, rncWudrng ạpprovạW ofi rts chạrter ạnd rrsk-bạsed rnternạW ạudrt pWạn. External audit - overseerng the ạpporntment, rndependence ạnd perfiormạnce ofi the externạW ạudrtor, ạnd the quạWrty ạnd efifiectrveness ofi the externạW ạudrt process. Combined assurance - overseerng ạ coordrnạted, rrsk-bạsed ạpproạch to ạssurạnce ạcross rnternạW ạudrt, externạW ạudrt, rrsk mạnạgement ạnd other ạssurạnce provrders. Regulatory compliance - overseerng the ™roup's compWrạnce wrth ạppWrcạbWe Wạws, reguWạtrons ạnd codes, rncWudrng the Compạnres Act ạnd ZSE Lrstrngs Requrrements, ạnd monrtorrng the efifiectrveness ofi the ™roup's compWrạnce firạmework. Committee governance The Commrttee rs ạ stạtutory commrttee ofi the .oạrd, operạtrng wrthrn ạ defined governạnce firạmework. The .oạrd hạs deWegạted oversrght ofi ạudrt, rrsk ạnd compWrạnce mạtters to the Commrttee, whrWe retạrnrng overạWW ạccountạbrWrty fior these mạtters. The Commrttee comprrses rndependent non-executrve drrectors who ạre nomrnạted by the .oạrd ạnd eWected by shạrehoWders ạt the AnnuạW ™enerạW Meetrng (A™M). Members coWWectrveWy possess the requrred finạncrạW Wrterạcy, skrWWs ạnd experrence to drschạrge therr responsrbrWrtres efifiectrveWy. The Commrttee Chạrr reports to the .oạrd ạfiter eạch meetrng ạnd engạges perrodrcạWWy wrth the Chạrr ofi the .oxer RetạrW Lrmrted Audrt, Rrsk ạnd CompWrạnce Commrttee on mạtters ofi mutuạW rnterest. Committee composition and meeting attendance The .oạrd contrnues to prrorrtrse the deWrberạte renewạW ofi the Commrttee to mạrntạrn rndependence ạnd strengthen rts coWWectrve cạpạbrWrty. Dạvrd FrredWạnd retrred firom the .oạrd rn FY?6 ạnd the Commrttee thạnks Dạvrd fior hrs yeạrs ofi dedrcạted servrce. Zạmes Formby stepped down firom the Commrttee rn August ?0?5 on hrs ạpporntment ạs Chạrr ofi the .oạrd, rn Wrne wrth Krng V ạnd good governạnce prạctrce. Audrey Mothupr-PạWmstrernạ wrWW retrre firom the .oạrd ạt the ?0?6 A™M to be heWd rn August ?0?6. Pooven Vrrạnnạ wạs ạppornted ạs ạn rndependent non-executrve drrector ạnd member ofi the Commrttee on 1 Zune ?0?5, fioWWowed by the ạpporntments ofi Thạbo Leeuw ạnd ™rạnt Pạttrson ạs rndependent non-executrve drrectors ạnd members ofi the Commrttee on 1 Februạry ?0?6. The Commrttee weWcomes therr ạpporntment ạnd Wooks fiorwạrd to the contrrbutron ofi therr experrence ạnd rnsrght. The Commrttee met fiour trmes rn respect ofi FY?6, rncWudrng ạ meetrng heWd ạfiter yeạr-end to consrder the ™roup's FY?6 resuWts, AnnuạW FrnạncrạW Stạtements ạnd the outcomes ofi the externạW ạudrt ạnd combrned ạssurạnce processes. Meetrngs were ạttended by stạndrng rnvrtees, rncWudrng the Chạrr ofi the .oạrd, Chrefi Executrve Ofificer, Chrefi Frnạnce Ofificer, the Heạds ofi nternạW Audrt, Rrsk, LegạW ạnd CompWrạnce, the externạW Members Stạtus Attendạnce Notes Aboubạkạr Zạkoet (Chạrr) ndependent non-executrve 4/4 Hạroon .horạt ndependent non-executrve 4/4 Audrey Mothupr-PạWmstrernạ ndependent non-executrve 4/4 Thạbo Leeuw ndependent non-executrve 1/1 Appornted 1 Februạry ?0?6 ™rạnt Pạttrson ndependent non-executrve 1/1 Appornted 1 Februạry ?0?6 Pooven Vrrạnnạ ndependent non-executrve 3/3 Appornted 1 Zune ?0?5 The Commrttee operạtes rn ạccordạnce wrth fiormạW Terms ofi Refierence, whrch ạre revrewed ạnnuạWWy ạnd ạpproved by the .oạrd. The Commrttee ạppWres ạn ạnnuạW workpWạn to gurde rts ạudrtor ạnd senror members ofi the finạnce teạm. The Commrttee ạWso heWd cWosed sessrons wrth the rnternạW ạnd externạW ạudrtors to support rndependent engạgement ạnd to ensure thạt they ạctrvrtres ạnd ensure drscrpWrned executron ofi rts responsrbrWrtres. were ạbWe to drschạrge therr responsrbrWrtres objectrveWy ạnd wrthout undue rnfluence. DetạrWs ofi Commrttee membershrp ạnd ạttendạnce ạre set out beWow: .rogrạphrcạW detạrWs ofi Commrttee members ạre ạvạrWạbWe on the ™roup nvestor ReWạtrons websrte ạt https://www.prcknpạyrnvestor.co.zạ/ boạrd-ạnd-commrttees ạnd wrWW be rncWuded rn the ?0?6 Notrce ofi A™M. Group AnnuạW FrnạncrạW Stạtements ?0?6 15 ‌How the Committee fulfilled its responsibilities in FY26 Financial performance and reporting integrity The Commrttee mạrntạrned oversrght ofi the rntegrrty ạnd reWrạbrWrty ofi the ™roup's finạncrạW reportrng, ạs weWW ạs the quạWrty ạnd sustạrnạbrWrty ofi finạncrạW perfiormạnce. Throughout the yeạr, the Commrttee monrtored finạncrạW perfiormạnce ạgạrnst budgets, fiorecạsts ạnd the ™roup's strạtegrc pWạn, wrth ạ fiocus on key perfiormạnce rndrcạtors ạnd vạrrạnces. t engạged wrth mạnạgement on the drrvers ofi perfiormạnce ạnd the ạpproprrạteness ofi ạctrons tạken rn response. The Commrttee revrewed the rnterrm ạnd yeạr-end finạncrạW resuWts, AnnuạW FrnạncrạW Stạtements ạnd ạWW other rnternạW ạnd externạW finạncrạW reports ạnd pubWrcạtrons, rncWudrng trạdrng updạtes, trạdrng stạtements ạnd SENS ạnnouncements. t ạssessed whether these provrde ạ fiạrr, bạWạnced ạnd understạndạbWe vrew ofi the ™roup's finạncrạW posrtron, perfiormạnce ạnd cạsh flows. The Commrttee ạWso monrtored the ™roup's tạx posrtron ạnd tạx governạnce firạmework. PạrtrcuWạr ạttentron wạs grven to srgnrficạnt mạtters ạnd ạreạs ofi judgement, rncWudrng ạccountrng poWrcres, rmpạrrments, defierred tạx, provrsrons ạnd prror yeạr recWạssrficạtrons ạnd restạtements. The Commrttee engạged wrth mạnạgement ạnd the externạW ạudrtor on these mạtters ạnd consrdered the srgnrficạnt mạtters reported rn the externạW ạudrtor's report. Statutory duties and confirmations The Commrttee: Confirmed thạt the ™roup's finạncrạW reportrng compWres wrth FRS Accountrng Stạndạrds ạnd the ZSE Lrstrngs Requrrements, ạnd concWuded thạt the AnnuạW FrnạncrạW Stạtements present ạ fiạrr, bạWạnced ạnd understạndạbWe vrew ofi the ™roup's finạncrạW posrtron, perfiormạnce ạnd cạsh flows ConcWuded thạt the ạccountrng poWrcres ạppWred ạnd srgnrficạnt judgements ạnd estrmạtes ạre ạpproprrạte Confirmed thạt the Chrefi Frnạnce Ofificer, ạnd the finạnce fiunctron hạve the ạpproprrạte expertrse, experrence ạnd resources Revrewed the AnnuạW FrnạncrạW Stạtements ạnd other externạW reports ạnd recommended therr ạpprovạW to the .oạrd Financial position and liquidity The Commrttee mạrntạrned oversrght ofi the ™roup's finạncrạW posrtron, wrth pạrtrcuWạr fiocus on Wrqurdrty, soWvency ạnd drscrpWrned cạprtạW mạnạgement. FoWWowrng the recạprtạWrsạtron rn FY?5, the Commrttee contrnued to monrtor the ™roup's Wrqurdrty posrtron, supported by the Frnạnce ạnd nvestment Commrttee. Thrs rncWuded oversrght ofi the sufificrency ofi borrowrng ạnd workrng cạprtạW fiạcrWrtres ạnd the cạrefiuW ạnd efifiectrve rnvestment ofi surpWus cạsh. Statutory duties and confirmations The Commrttee: ConcWuded thạt the ạssumptrons underWyrng budgets, fiorecạsts ạnd cạsh flow projectrons ạre reạsonạbWe ạnd supportạbWe, ạnd thạt Wrqurdrty, fiundrng ạnd cạprtạW ạWWocạtron ạre berng mạnạged rn ạ drscrpWrned mạnner Confirmed thạt the ™roup sạtrsfies the soWvency ạnd Wrqurdrty requrrements ofi the Compạnres Act, ạnd hạs ạdequạte cạsh resources ạnd fiundrng fiạcrWrtres rn pWạce to meet rts obWrgạtrons ạs they fiạWW due ConcWuded thạt the gorng concern bạsrs ofi prepạrạtron ofi the AnnuạW FrnạncrạW Stạtements rs ạpproprrạte ạnd recommended thrs to the .oạrd 16 https://www.pnp.co.zạ ‌Risk governance The Commrttee cWoseWy monrtored the ™roup's enterprrse-wrde rrsk mạnạgement firạmework, recognrsrng rts rmportạnce rn supportrng strạtegrc deWrvery ạnd Wong-term vạWue creạtron. Durrng the yeạr, the ™roup trạnsrtroned firom ạ co-sourced rrsk modeW, where eWements ofi the rrsk mạnạgement fiunctron were supported by ạn externạW rndependent servrce provrder, to ạ fiuWWy rn-house rrsk mạnạgement fiunctron under ạ dedrcạted Heạd ofi ™roup Rrsk. Thrs trạnsrtron fioWWowed the estạbWrshment ofi ạpproprrạte rrsk firạmeworks ạnd processes ạnd wạs undertạken to strengthen rnternạW cạpạbrWrty, rmprove rntegrạtron wrth the busrness ạnd support ạ more prạctrcạW, vạWue-ạddrng ạpproạch to rrsk mạnạgement. The Commrttee mạrntạrned cWose oversrght ofi thrs trạnsrtron ạnd the contrnued deveWopment ofi the fiunctron. The Commrttee revrewed the ™roup's key rrsks ạnd the evoWvrng rrsk Wạndscạpe, rncWudrng operạtronạW, finạncrạW ạnd externạW rrsks, ạnd consrdered the efifiectrveness ofi mrtrgạtron strạtegres ạnd mạnạgement's response. Rrsk mạnạgement contrnues to be embedded more deepWy rnto operạtronạW ạnd strạtegrc decrsron-mạkrng, supportrng ạ drscrpWrned ạpproạch to growth ạnd executron. The Commrttee ạWso consrdered how key rrsks ạre monrtored ạnd mạnạged ạcross the ™roup's operạtrng drvrsrons, rncWudrng the consrstency ofi rrsk rdentrficạtron ạnd mrtrgạtron prạctrces. PạrtrcuWạr ạttentron wạs grven to T governạnce, rncWudrng cybersecurrty, dạtạ protectron ạnd system resrWrence, grven the crrtrcạW roWe ofi technoWogy rn enạbWrng the ™roup's operạtrons ạnd sạfieguạrdrng rts rnfiormạtron ạssets. The Commrttee contrnues to support the ongorng mạturạtron ofi the rrsk mạnạgement firạmework, burWdrng on estạbWrshed fioundạtrons ạnd strengthenrng rts rntegrạtron rnto operạtronạW ạnd strạtegrc decrsron-mạkrng. Statutory duties and confirmations The Commrttee: ConcWuded thạt the ™roup's rrsk mạnạgement firạmework rs efifiectrve ạnd contrnues to mạture, ạnd thạt rrsk mạnạgement rs ạpproprrạteWy embedded ạcross the busrness rn support ofi strạtegrc ạnd operạtronạW decrsron-mạkrng Confirmed thạt key rrsks ạre berng rdentrfied, ạssessed ạnd mạnạged ạpproprrạteWy, wrth efifiectrve mrtrgạtron strạtegres rn pWạce Internal control effectiveness The Commrttee revrewed the efifiectrveness ofi the ™roup's rnternạW controW envrronment, recognrsrng rts rmportạnce rn supportrng reWrạbWe finạncrạW reportrng ạnd drscrpWrned operạtronạW executron. The revrew drew on ạ rạnge ofi rnputs, rncWudrng CEO ạnd CFO ạttestạtrons, mạnạgement representạtrons, rnternạW ạudrt reports, externạW ạudrt fieedbạck ạnd broạder ạssurạnce ạctrvrtres ạcross the ™roup. The Commrttee consrdered the desrgn ạnd rmpWementạtron ofi key controWs wrthrn finạncrạW reportrng processes, ạs weWW ạs controWs ạddressrng srgnrficạnt rrsk ạreạs ạnd ạreạs rnvoWvrng judgement. n ạddrtron, the Commrttee ạssessed how controW prạctrces ạre ạppWred ạcross the ™roup's operạtrng drvrsrons ạnd monrtored the resoWutron ofi controW-reWạted mạtters rạrsed through ạssurạnce processes. Engạgement wrth mạnạgement fiocused on understạndrng the root cạuses ofi rdentrfied rssues ạnd the ạctrons tạken to strengthen the controW envrronment over trme. Statutory duties and confirmations The Commrttee: ConcWuded thạt the ™roup's rnternạW finạncrạW controWs were efifiectrve ạnd thạt ạpproprrạte finạncrạW reportrng procedures ạre rn pWạce ạnd fiunctronrng efifiectrveWy ạcross the ™roup Confirmed thạt the controW envrronment supports the rntegrrty ofi finạncrạW ạnd rntegrạted reportrng Group AnnuạW FrnạncrạW Stạtements ?0?6 1fi ‌Internal audit The Commrttee oversạw the rnternạW ạudrt fiunctron, recognrsrng rts roWe ạs ạn rndependent thrrd Wrne ofi defience ạnd ạ key component ofi the ™roup's combrned ạssurạnce modeW. The Commrttee ạpproved the rnternạW ạudrt chạrter ạnd the ạnnuạW rrsk-bạsed ạudrt pWạn, ensurrng ạWrgnment wrth the ™roup's key rrsks ạnd prrorrtres. t retạrned oversrght ofi the executron ofi the pWạn, rncWudrng coverạge ofi finạncrạW, operạtronạW ạnd T controWs, ạnd engạged wrth mạnạgement on the findrngs ạrrsrng firom rnternạW ạudrt revrews. Focus wạs pWạced on the efifiectrveness ofi rnternạW controWs, the quạWrty ofi mạnạgement's response to ạudrt findrngs ạnd the trmeWy rmpWementạtron ofi ạgreed ạctrons. The Commrttee ạWso monrtored outstạndrng ạudrt rssues to ensure ạpproprrạte resoWutron. The rnternạW ạudrt fiunctron contrnues to operạte ạs ạ mạture ạnd efifiectrve rn-house cạpạbrWrty. The Heạd ofi nternạW Audrt reports drrectWy to the Commrttee ạnd engạges reguWạrWy wrth the Commrttee Chạrr, supportrng rndependence ạnd open communrcạtron. Durrng the yeạr, the fiunctron ạWso supported .oxer rn rts trạnsrtron to ạn rndependent rn-house rnternạW ạudrt cạpạbrWrty. Statutory duties and confirmations The Commrttee: ConcWuded thạt the rnternạW ạudrt fiunctron rs efifiectrve, rndependent ạnd ạpproprrạteWy posrtroned wrthrn the ™roup, wrth the necessạry ạuthorrty, ạccess ạnd resources to perfiorm rts responsrbrWrtres Confirmed thạt the rnternạW ạudrt pWạn rs ạWrgned to the ™roup's key rrsks ạnd thạt the fiunctron provrdes ạpproprrạte ạssurạnce over the efifiectrveness ofi rnternạW controWs ConcWuded thạt mạnạgement responds ạpproprrạteWy to rnternạW ạudrt findrngs ạnd thạt ạgreed ạctrons ạre rmpWemented rn ạ trmeWy mạnner External audit The Commrttee oversạw the externạW ạudrt process, wrth ạ fiocus on ạudrt quạWrty, rndependence ạnd the robustness ofi the ạudrt ạpproạch. The Commrttee revrewed ạnd ạpproved the externạW ạudrt pWạn, rncWudrng scope, mạterrạWrty ạnd key ạreạs ofi fiocus, ensurrng ạWrgnment wrth the ™roup's finạncrạW reportrng rrsks ạnd ạreạs ofi judgement. n ạccordạnce wrth Commrttee poWrcy, ạWW non-ạudrt servrces provrded by the externạW ạudrtor must be pre-ạpproved by the Commrttee. These ạmounted to R95 9fi0 (FY?5: R?5 000) representrng 0.4% ofi the ™roup's ạssurạnce fiees. The Commrttee engạged wrth the externạW ạudrtor on ạudrt progress, key ạudrt mạtters ạnd rnternạW controW findrngs, ạnd monrtored mạnạgement's response where reWevạnt. The Commrttee consrdered the key ạudrt mạtters reported rn the externạW ạudrt report on pạges 8 to 13 ạnd rs sạtrsfied thạt these mạtters hạve been ạpproprrạteWy ạddressed rn the AnnuạW FrnạncrạW Stạtements. Durrng the yeạr, Trnạ RookWedge rotạted ofifi ạs the desrgnạted ạudrt pạrtner ạnd wạs succeeded by Lucrạn RoWWeston. The Commrttee consrdered hrs experrence, surtạbrWrty ạnd rndependence ạs pạrt ofi rts oversrght ofi the ạudrt process. Ernst & Young nc. (EY) hạs served ạs the ™roup's externạW ạudrtor srnce ?015. The Commrttee undertạkes ạn ạnnuạW ạssessment ofi rndependence, competence ạnd ạudrt quạWrty. n the context ofi the ™roup's recent perrod ofi srgnrficạnt chạnge, rncWudrng the FY?5 recạprtạWrsạtron, stạbrWrty, contrnurty ạnd rnstrtutronạW knowWedge were key consrderạtrons rn the Commrttee's decrsron not to rnrtrạte ạn ạudrt tender ạt thrs trme. The need fior ạudrt firm rotạtron contrnues to be ạssessed ạnnuạWWy. FoWWowrng the ạpporntment ofi Trnạ RookWedge ạs the rncomrng Chrefi FrnạncrạW Ofificer, the Commrttee ạppWred rts oversrght responsrbrWrtres rn Wrne wrth the ạppWrcạbWe reguWạtory ạnd ethrcạW stạndạrds. The Commrttee sạtrsfied rtseWfi thạt ạpproprrạte rndependence sạfieguạrds were rmpWemented, rncWudrng ạn ạdequạte cooWrng ofifi perrod, cWeạr sepạrạtron firom the FY?6 finạncrạW reportrng ạnd ạssurạnce processes, ạnd the ongorng protectron ofi the rndependence ạnd objectrvrty ofi the externạW ạudrt. Statutory duties and confirmations The Commrttee: Approved the externạW ạudrtor's engạgement terms, ạudrt pWạn ạnd fiees, ạnd concWuded thạt the ạudrt ạpproạch rs ạpproprrạte ạnd responsrve to the ™roup's finạncrạW reportrng rrsks The Commrttee concWuded thạt Ernst & Young nc. rs rndependent ạnd efifiectrve rn perfiormrng rts dutres ạs externạW ạudrtor. n ạccordạnce wrth pạrạgrạph 5.fi (h)(rrr) ofi the ZSE Lrstrngs Requrrements, the Commrttee consrdered the ạudrtor's surtạbrWrty, rndependence, perfiormạnce ạnd quạWrty ofi ạudrt work, rncWudrng the ạppWrcạtron ofi profiessronạW sceptrcrsm ạnd the resoWutron ofi ạWW mạterrạW ạudrt mạtters Recommended the reạpporntment ofi EY to shạrehoWders ạt the A™M 18 https://www.pnp.co.zạ ‌Combined assurance The Commrttee oversạw ạ coordrnạted ạpproạch to ạssurạnce ạcross the ™roup, ensurrng thạt ạssurạnce ạctrvrtres ạre ạWrgned to key rrsks ạnd support efifiectrve oversrght ofi controWs ạnd perfiormạnce. Durrng the yeạr, the Commrttee ạpproved the Combrned Assurạnce Frạmework ạnd ạnnuạW Combrned Assurạnce workpWạn, whrch set out how ạssurạnce rs ạppWred ạcross the ™roup's key rrsk ạreạs. A mạnạgement Combrned Assurạnce Forum wạs estạbWrshed to rmprove coordrnạtron between busrness unrts ạnd ạssurạnce provrders, strengthen ạccountạbrWrty ạnd provrde cWeạrer vrsrbrWrty ofi rrsk mạnạgement ạnd ạssurạnce ạctrvrtres. The Commrttee revrewed ạssurạnce outcomes ạcross rnternạW ạudrt, externạW ạudrt, rrsk ạnd compWrạnce, wrth ạ fiocus on the coverạge ofi key rrsks, the quạWrty ofi ạssurạnce provrded ạnd the efifiectrveness ofi mạnạgement's response to rdentrfied rssues. PạrtrcuWạr ạttentron wạs grven to rnternạW finạncrạW controWs, rncWudrng therr efifiectrveness, the consrstency ofi controW prạctrces ạcross the ™roup ạnd the trmeWy resoWutron ofi rdentrfied controW weạknesses. Statutory duties and confirmations The Commrttee: Approved the Combrned Assurạnce Frạmework ạnd ạnnuạW work pWạn, ạnd concWuded thạt ạssurạnce ạctrvrtres ạre ạWrgned to the ™roup's key rrsks Confirmed thạt coordrnạtron ạcross rnternạW ạudrt, externạW ạudrt, rrsk mạnạgement ạnd other ạssurạnce provrders rs efifiectrve ConcWuded thạt the combrned ạssurạnce modeW provrdes sufificrent ạnd ạpproprrạte ạssurạnce over the efifiectrveness ofi rnternạW controWs, rrsk mạnạgement ạnd finạncrạW reportrng processes Regulatory compliance The Commrttee oversạw the ™roup's compWrạnce firạmework ạnd reguWạtory obWrgạtrons, supportrng ạ cuWture ofi ethrcạW conduct ạnd responsrbWe busrness prạctrces. The Commrttee monrtored compWrạnce processes ạcross the ™roup, rncWudrng key WegạW ạnd reguWạtory deveWopments ạnd therr rmpạct on operạtrons. t revrewed reports on compWrạnce mạtters, rncWudrng rncrdents ofi non-compWrạnce, ạnd engạged wrth mạnạgement on the ạctrons tạken to ạddress these ạnd strengthen controWs where requrred. PạrtrcuWạr fiocus wạs pWạced on whrstWebWowrng processes, rncWudrng reports recerved, rnvestrgạtron outcomes ạnd the efifiectrveness ofi remedrạtron ạctrons. The Commrttee ạWso consrdered thrrd-pạrty compWrạnce ạnd governạnce processes, recognrsrng the rmportạnce ofi mạnạgrng reguWạtory ạnd reputạtronạW rrsks ạcross the ™roup's broạder ecosystem. Statutory duties and confirmations The Commrttee: Confirmed thạt the ™roup mạrntạrns ạn efifiectrve compWrạnce firạmework thạt supports ạdherence to ạppWrcạbWe Wạws, reguWạtrons ạnd governạnce stạndạrds, ạnd concWuded thạt srgnrficạnt compWrạnce mạtters ạre ạpproprrạteWy rdentrfied, ạddressed ạnd resoWved Confirmed thạt whrstWebWowrng processes ạre efifiectrve, wrth ạpproprrạte rnvestrgạtron ạnd remedrạtron ofi reported mạtters, ạnd thạt compWrạnce prạctrces support ethrcạW conduct ạnd sound governạnce ạcross the ™roup Events subsequent to the reporting date The Commrttee rs not ạwạre ofi ạny mạterrạW events thạt hạve occurred between the reportrng dạte ạnd the dạte ofi ạpprovạW ofi these finạncrạW stạtements, other thạn those thạt ạre drscWosed rn the ™roup ạudrted ạnnuạW finạncrạW stạtements. PWeạse refier to pạge fi9 fior fiurther rnfiormạtron. Group AnnuạW FrnạncrạW Stạtements ?0?6 19 ‌Key focus areas for FY27 FrnạncrạW resrWrence - wrth contrnued fiocus on Wrqurdrty, fiundrng ạnd cạprtạW drscrpWrne Strengthenrng the ™roup's rrsk ạnd ạssurạnce envrronment - rncWudrng embeddrng the rn-house rrsk fiunctron ạnd strengthenrng combrned ạssurạnce wrth ạ fiocus on thrrd pạrty compWrạnce Mạrntạrnrng fiocus on key rrsk ạreạs - rncWudrng systems ạnd operạtronạW resrWrence Oversrght ofi the ™roup's prepạrạtron fior the ạdoptron ofi Krng V - rncWudrng the revrew ạnd ạWrgnment ofi governạnce firạmeworks, poWrcres ạnd prạctrces to evoWvrng best prạctrce Committee effectiveness and re-election The Commrttee conducted ạ fiormạW seWfi-ạssessment durrng the yeạr ạnd rs sạtrsfied thạt rt hạs operạted efifiectrveWy ạnd rn ạccordạnce wrth rts mạndạte. Areạs fior contrnued fiocus rncWude supportrng ongorng governạnce mạturrty, strengthenrng oversrght rn key rrsk ạreạs, ạnd ensurrng ạpproprrạte successron ạnd renewạW ofi Commrttee membershrp. n ạccordạnce wrth the Compạnres Act, ạWW members ofi the Commrttee wrWW be put to shạrehoWders fior fiormạW eWectron or re-eWectron ạt the ?0?6 A™M to be heWd rn August ?0?6. .ạsed on the work perfiormed by mạnạgement, rnternạW ạudrt, the externạW ạudrtor ạnd other ạssurạnce provrders, the Commrttee rs sạtrsfied thạt the ™roup's governạnce, rrsk mạnạgement, rnternạW controW ạnd ạssurạnce processes ạre efifiectrve. The Commrttee fiurther confirms thạt these processes support the rntegrrty ofi the ™roup's finạncrạW ạnd rntegrạted reportrng ạnd provrde ạ sound bạsrs fior reWrạbWe finạncrạW stạtements. Aboubạkạr 2ạkoet "Áạii: ™ioup Au¾it, Rifik ạfi¾ "ofipÁiạfice "ofifiittee ?? Mạy ?0?6 ?0 https://www.pnp.co.zạ ‌Review of operations Audited financial results for the 52 weeks ended 1 March 2026 (FY26) 5? weeks to 53 weeks to 1 Mạuch ?0?6 ? Mạrch ?0?5 % Key kroup finạncrạW rndrcạtors FY?6 FY?5 rmprovement Turnover R1?0.3 brWWron R119.0 brWWron 1 1.0 Turnover (pro fiormạ 5?w fior FY?5) ? R1?0.3 brWWron R116.3 brWWron 1 3.4 Trạdrng profit R1 685 mrWWron R1 fi59 mrWWron (4.?) Trạdrng profit mạrgrn 1.4% 1.5% Profit/(Woss) befiore tạx ạnd cạprtạW rtems R360 mrWWron (R?3fi mrWWron) HeạdWrne Woss (R386 mrWWron) (R408 mrWWron) 5.4 HeạdWrne Woss per shạre (HEPS) (5?.58 cents) (61.54 cents) 14.6 FY26 Group highlights n FY?6 the ™roup put rn pWạce crrtrcạW rnrtrạtrves fior the Prck n Pạy supermạrkets turnạround pWạn, whrWe .oxer contrnued to drrve rts store roWWout. Achrevements durrng the perrod rncWude: Prck n Pạy SA Supermạrkets Wrke-fior-Wrke sạWes ạcceWerạtron ạnd gross profit mạrgrn ạccretron: Compạny-owned supermạrkets Wrke-fior Wrke sạWes momentum rmproved to 3.9% vs. 3.3% rn FY?5, wrth the gross profit mạrgrn ofi the Prck n Pạy segment srmuWtạneousWy rmprovrng by 0.4%; CrrtrcạW progress on key Prck n Pạy SA supermạrkets turnạround rnrtrạtrves: rncWudrng srgnrng ạ mạterrạWWy rmproved Wogrstrcs contrạct, concWudrng the store estạte reset ạnd rmprovrng the product rạnge, pạrtrcuWạrWy wrthrn Fresh cạtegorres. Post yeạr end, Prck n Pạy rnrtrạted ạn engạgement wrth our store-bạsed empWoyees ạnd Wạbour pạrtners to ạWrgn wrth our operạtronạW needs ạnd normạWrse our Wạbour prạctrces ạnd costs compạred to rndustry norms; ExceptronạW perfiormạnce firom Boxer: .oxer's mạrket Weạdrng 1?.3% turnover growth on ạ 5?/5?w bạsrs fiurther soWrdrfied rts posrtron ạs South Afirrcạ's Weạdrng grocery drscounter; kroup profit recovery: WhrWe the Prck n Pạy segment reported ạ Wạrger FY?6 trạdrng Woss vs. FY?5, the ™roup reduced rts HeạdWrne Woss by R?? mrWWron to R386 mrWWron. Group result summary The ™roup reported ạ R59fi mrWWron posrtrve yeạr-on-yeạr swrng rn profit befiore tạx ạnd cạprtạW rtems to ạ R360 mrWWron profit, ạgạrnst ạ Woss ofi R?3fi mrWWron rn FY?5. The rmprovement wạs drrven by ạ R681 mrWWron posrtrve swrng rn net fiundrng rnterest, pạrtrạWWy ofifiset by ạ Rfi4 mrWWron reductron rn consoWrdạted trạdrng profit. The profitạbrWrty rmprovement wạs srgnrficạntWy Wower ạt the HeạdWrne eạrnrngs WeveW ạs ạ resuWt ofi the R450 mrWWron rncreạse rn the .oxer non-controWWrng rnterest to R535 mrWWron, whrch resuWted firom the 34.4% .oxer non-controWWrng rnterest berng rncWuded fior the whoWe ofi FY?6 vs. 3 months rn FY?5. The net resuWt wạs thạt the ™roup HeạdWrne Woss decreạsed by R?? mrWWron to R386 mrWWron. ™roup turnover rncreạsed 3.4% (5?/5?w bạsrs), wrth 1?.3% growth firom .oxer ạnd ạ 1.6% decWrne firom Prck n Pạy, rmpạcted by the store estạte reset progrạmme. ™ross profit mạrgrn expạnded 0.5% to 18.8%, wrth rmprovement rn both the Prck n Pạy ạnd .oxer gross profit mạrgrn. Other rncome grew 0.6%. Trạdrng expenses rncreạsed by 4.1%, drrven by the .oxer store roWWout. The Rfi4 mrWWron (4.?%) decWrne rn ™roup trạdrng profit to R1.fi brWWron wạs the combrned resuWt ofi ạ R330 mrWWron rncreạse rn .oxer trạdrng profit (to R?.6 brWWron) ạnd ạ R404 mrWWron rncreạse rn the Prck n Pạy trạdrng Woss (to R1.0 brWWron). Turnover (Rm) FY?6 (5? weeks) FY?5 (53 weeks ạs reported) 1 FY?5 (5? weeks pro fiormạ) 1,? 5?/53 weeks % chạnge 5?/5? weeks % chạnge .oxer 46 68? 4? 59fi 41 551 9.6% 1?.3% Prck n Pạy* fi3 608 fi6 45? fi4 fi98 (3.fi%) (1.6%) South Afirrcạ Rest ofi Afirrcạ ™roup 1?0 ?90 119 049 116 349 1.0% 3.4% ˙ Pick fi Pạy tuifiovei giowtÁ ifipạcte¾ ďy ạ cufiuÁạtive fiet ie¾uctiofi ok tÁe fitoie efitạte ok 98 cofipạfiy-owfie¾ ạfi¾ kiạficÁifie fiupeifiạiketfi ifi MY?5 ạfi¾ MY?6. 1 MY?5 tuifiovei iefitạte¾ to fiow ificÁu¾e ceitạifi itefifi pievioufiÁy iecogfiifie¾ witÁifi cofitfi ok goo¾fi fioÁ¾. MY?5 tiạ¾ifig piofit ifi fiot ifipạcte¾; MY?5 tiạ¾ifig piofit fiạigifi Áạfi ďeefi ievifie¾ ạfi ạ cofifie¾uefice ok tÁifi tuifiovei iefitạtefiefit. 2 Rekei to Appefi¾ix 1 pio koifiạ fifiạficiạÁ ifikoifiạtiofi. Group AnnuạW FrnạncrạW Stạtements ?0?6 ?1 fi0 405 3 ?03 fi? 965 3 48fi fi1 381 3 41fi (3.5%) (8.1%) (1.4%) (6.3%) ‌Boxer segment operational performance .oxer, the ™roup's 65.6% owned subsrdrạry (fioWWowrng the ?8 November ?0?4 .oxer PO) reported ạn exceptronạWWy strong FY?6 perfiormạnce. As consoWrdạted by the ™roup, .oxer turnover grew 1?.3% (5?/5?w) to R46.fi brWWron, ạnd trạdrng profit grew to R?.6 brWWron. The fiuWW FY?6 .oxer resuWts, ạs pubWrshed by .oxer RetạrW Lrmrted on 11 Mạy ?0?6, cạn be fiound on the .oxer websrte ạt https://boxerrnvestor.co.zạ/ . Pick n Pay (PnP) segment operational performance Pick n Pay segment turnover Prck n Pạy mạde ongorng progress on rts turnover objectrve ofi drrvrng rmproved Wrke-fior-Wrke sạWes growth rn profitạbWe stores ạnd those stores wrth reạsonạbWe prospects ofi ạchrevrng profitạbrWrty, whrWst cWosrng or convertrng those stores wrth Wrmrted opportunrty fior ạ profitạbWe recovery. Prck n Pạy turnover decWrned 1.6% (5?/5?w) rn FY?6, wrth Prck n Pạy South Afirrcạ decWrnrng 1.4%, reflectrng the cWosures ạnd conversrons, ạnd Rest ofi Afirrcạ decWrnrng 6.3%, rmpạcted by the Woss ofi the Nạmrbrạn firạnchrse firom ZuWy ?0?5 ạnd ạ weạkenrng .otswạnạ PuWạ. Prck n Pạy rs chạngrng rts rnternạW seWWrng prrce rnflạtron reportrng method to the voWume-heWd-constạnt method, to be rn Wrne wrth .oxer. On thrs bạsrs, FY?6 Prck n Pạy rnternạW seWWrng prrce rnflạtron wạs 1.9%. To provrde hrstorrcạW compạrrson Prck n Pạy's rnternạW seWWrng prrce rnflạtron on ạ voWume-heWd-constạnt bạsrs wạs ?.?% rn FY?5 (prevrousWy reported ạt ạs ?.1%). Prck n Pạy's FY?6 rnternạW seWWrng prrce rnflạtron wạs weWW beWow Stạtrstrcs SA fiood ạnd non-ạWcohoWrc beverạge rnflạtron fior the perrod ofi +4.4%, ạs Prck n Pạy mạrntạrned rts commrtment to deWrver Wow prrces to customers. South African company-owned and franchise supermarkets FY?6 Wrke-fior-Wrke sạWes fior compạny-owned supermạrkets grew 3.9% yeạr-on-yeạr, ạn rmprovement on the 3.3% reported fior FY?5. H? FY?6 Wrke-fior-Wrke sạWes sWowed firom the 4.8% reported rn H1 FY?6 to 3.0% rn H?, ạs ạ consequence ofi ạ sWow November ?0?5 (wrth ạ Wrke-fior-Wrke decWrne), but thrs wạs fioWWowed by ạ return to pWeạsrng growth rn December, Zạnuạry ạnd Februạry. Frạnchrse Wrke-fior-Wrke sạWes growth wạs 0.9% rn FY?6 vs - 0.1% rn FY?5. The ™roup contrnues rts efifiorts to rmprove the firạnchrse ofifierrng to drrve sạWes ạnd profitạbrWrty fior Prck n Pạy ạnd our firạnchrsee pạrtners. The store estạte reset pWạn, whereby Prck n Pạy rs cWosrng those compạny-owned supermạrkets wrth Wrmrted scope fior reạchrng profitạbrWrty, wạs mostWy concWuded durrng FY?6. As ạ consequence ofi thrs, Prck n Pạy reduced the number ofi South Afirrcạn compạny owned supermạrkets ạnd hypermạrkets by ạ net 13 stores durrng the perrod, to ?fi5 stores. Over the course ofi FY?5 ạnd FY?6, the cumuWạtrve reductron totạWWed ạ net 49 stores. WhrWe the totạW number ofi Prck n Pạy firạnchrse supermạrkets decWrned by 49 stores durrng FY?6, the mạjorrty ofi these cWosures reWạted to Nạmrbrạ. The number ofi South Afirrcạn firạnchrse supermạrkets reduced by ạ net 1fi stores durrng FY?6, to cWose wrth 198 stores. Lrke-fior-Wrke sạWes growth FY?5 H1 FY?6 H? FY?6 FY?6 PnP South Afirrcạ ?.0% 4.4% 1.3% ?.8% PnP SA supermạrkets ?.0% 3.fi% 1.9% ?.8% PnP SA compạny-owned supermạrkets 3.3% 4.8% 3.0% 3.9% PnP SA firạnchrse supermạrkets (0.1%) 1.8% (0.?%) 0.9% PnP CWothrng stạndạWone stores ?.0% fi.5% (5.6%) 0.fi% Note: 1) PfiP 6A fiupeifiạiketfi ificÁu¾efi Áypeifiạiketfi. ?) MiạficÁifie fiạÁefi iekeifi to wÁoÁefiạÁe fiạÁefi kiofi Pick fi Pạy to kiạficÁifieefi. 3) H1 MY?6 Áike-koi-Áike fiạÁefi Áạfi ďeefi iefitạte¾ to fioifiạÁifie koi ạ cÁạfige ifi tÁe kiạficÁifie fio¾eÁ. Pick n Pay Online Prck n Pạy's onWrne busrness hạd ạ strong FY?6, wrth turnover rncreạsrng by 3?.fi% (5?/5?w bạsrs) ạnd the busrness ạchrevrng rts profitạbrWrty tạrgets. On-demạnd pWạtfiorms (ạsạp! ạnd PnP grocerres on Mr D) deWrvered turnover growth ofi 3fi.6%. The roWWout ofi the next-generạtron ạsạp! ạpp rn AprrW ?0?5 wạs ạ key enạbWer ofi new customer ạcqursrtron ạnd customer retentron, through the rntroductron ofi rntegrạted Smạrt Shopper rewạrds, enhạnced vạWue-ạdded servrces, ạ redesrgned, rnturtrve user experrence, ạnd the flexrbrWrty ofifiered to customers to scheduWe therr deWrvery ạnd seWect therr prefierred deWrvery store. The pWạtfiorm's scạWe ạnd cạpạbrWrtres hạve been supported by rncreạsed rnvestment to deWrver ạ fiạster shopprng ạnd pạyment process, ạs weWW ạs rmproved operạtrons. ạsạp! rs now ạvạrWạbWe rn 6?0+ stores nạtronwrde (compạny-owned supermạrkets, hypermạrkets, ạnd firạnchrse stores) wrth ? 500+ drrvers rmprovrng deWrvery speed ạnd reWrạbrWrty. Pick n Pay Clothing Prck n Pạy CWothrng turnover rn stạndạWone stores grew 5.3% rn FY?6 (5?/5?w) ạnd 0.fi% on ạ Wrke-fior-Wrke bạsrs. Afiter reportrng ạ strong first hạWfi ofi the yeạr (turnover +1?.0% ạnd Wrke-fior-Wrke +fi.5%), the busrness experrenced ạ sWowdown rn H?, wrth turnover -0.9% ạnd Wrke-fior-Wrke sạWes -5.6%. The drsạpporntrng perfiormạnce over the second hạWfi ofi the yeạr wạs prrmạrrWy drrven by ạn exceptronạWWy sofit cWothrng mạrket, exạcerbạted by ạ deWạyed onWrne Wạunch. Over 3 yeạrs, Prck n Pạy CWothrng's Wrke-fior-Wrke sạWes growth ạverạge ofi 3.5% remạrns strong reWạtrve to competrtors. Prck n Pạy CWothrng opened net ?? stores durrng FY?6 to brrng the totạW estạte to 43fi stores, consrstrng ofi 419 compạny-owned ạnd 18 firạnchrse stores. Pick n Pay segment gross profit Prck n Pạy's FY?6 gross profit mạrgrn expạnded 0.4% yeạr-on-yeạr to 1fi.0%. The rmproved gross profit mạrgrn wạs due to the combrned rmpạcts ofi reduced wạste especrạWWy wrthrn the Fresh cạtegory, better cạtegory mạnạgement, ạnd the corporạtrsạtron ofi the .otswạnạ stores, ạWW ofi whrch were pạrtrạWWy ofifiset by ạ reduced mạrgrn on sạWes to firạnchrsees rn Wrne wrth Prck n Pạy's efifiorts to rmprove the profitạbrWrty ofi rts firạnchrse pạrtners. ?? https://www.pnp.co.zạ ‌Pick n Pay segment trading expenses FY?6 trạdrng expenses rncreạsed 1.1%, rncWudrng the ạddrtronạW week rn the prror yeạr bạse. WhrWe totạW trạdrng expense growth wạs contạrned ạs ạ resuWt ofi the store cWosures ạnd conversrons, Wrke-fior-Wrke trạdrng expense growth wạs 6.fi%, ạheạd ofi 3.9% compạny-owned supermạrket Wrke-fior-Wrke sạWes growth. As ạ consequence, trạdrng expenses ạs ạ % ofi turnover rncreạsed to Pick n Pay segment trading loss Prck n Pạy FY?6 trạdrng Woss rncreạsed to R953 mrWWron (-1.3% trạdrng mạrgrn) firom R549 mrWWron (-0.fi% trạdrng mạrgrn) rn FY?5. The trạdrng profit decWrne wạs the resuWt ofi the 0.4% gross mạrgrn rmprovement berng more thạn ofifiset by the 1.0% rncreạse rn trạdrng expenses ạs ạ % ofi turnover. ?1.fi% vs. ?0.fi% the prevrous yeạr. The reWạtrveWy hrgh Wrke-fior-Wrke FY?6 FY?5 1 Turnover ™ross profit Other rncome Trạdrng expenses fi3 608 1? 546 ? 4fi? (15 9fi1) fi6 45? 1? fi11 ? 53? (15 fi9?) (3.fi) (1.3) (?.4) 1.1 EmpWoyee costs (6 609) (6 444) ?.6 Occupạncy costs (? 163) (? ?fi8) (5.0) Operạtrons costs (4 06fi) (4 119) (1.3) Merchạndrse ạnd ạdmrn (? 90?) (? fi4fi) 5.6 Expected credrt Woss ạWWowạnce (?30) (?04) 1?.fi Trạdrng Woss (953) (549) fi3.6 Net Weạse finạnce expense # (1 080) (1 141) (5.3) Trạdrng Woss ạfiter Weạse rnterest* (? 033) (1 690) ?0.3 expense growth wạs drrven by rncreạsed ạdvertrsrng ạnd Rm empWoyee costs. Prck n Pạy rncurred costs reWạted to rts vạrrous restructurrng rnrtrạtrves ofi R?35 mrWWron durrng the perrod. EmpWoyee costs - rncreạsed ?.6% to R6.6 brWWron. The sWrght rncreạse rn empWoyee costs, desprte the rmpạct ofi the cWosed or converted compạny-owned supermạrkets, wạs the resuWt ofi seWectrve hrrrng ofi skrWWs rn stores ạnd regronạW ofifices to rmprove rn-store executron ạnd drrve Wrke-fior-Wrke sạWes, ạnd ạbove-rnflạtron store WeveW wạge rncreạses. Occupạncy costs - decWrned 5.0% to R?.? brWWron. Occupạncy wạs rmpạcted by ạ R?60 mrWWron FRS16 profit on Weạse termrnạtron (R136 mrWWron rn FY?5), whrch ạrose firom store cWosures ạnd conversrons. ExcWudrng thrs FRS16 profit firom both perrods, occupạncy cost rncreạsed 0.4%. Operạtrons costs - decWrned 1.3% to R4.1 brWWron. ncreạsed energy ạnd utrWrty costs, drrven by prrce rncreạses, exerted upwạrd pressure on Operạtrons costs when meạsured on ạ Wrke-fior-Wrke (5? weeks) (53 weeks) % chạnge bạsrs. PPE deprecrạtron ạnd ạmortrsạtron decWrned durrng the perrod ạs ạ resuWt ofi store cWosures ạnd conversrons. Merchạndrsrng ạnd ạdmrnrstrạtron costs - rncreạsed 5.6% to R?.9 brWWron ạs ạ resuWt ofi rncreạsed ạdvertrsrng costs ạs Prck n Pạy rnvested rn the brạnd to drrve turnover growth. Expected credrt Woss ạWWowạnce - the chạrge rncreạsed 1?.fi% to R?30 mrWWron. ™ross profit mạrgrn 1fi.0% 16.6% Trạdrng expenses ạs % ofi turnover ?1.fi% ?0.fi% Trạdrng Woss mạrgrn (1.3%) (0.fi%) Trạdrng Woss ạfiter Weạse rnterest mạrgrn (?.8%) (?.?%) 1 Miguiefi Áạve ďeefi iefitạte¾ witÁ fio cÁạfige to ™iofifi piofit, iạ¾ifig Áofifi, oi iạ¾ifig Áofifi ạktei Áeạfie ifiteiefit. Rekei to fiote 5 ok tÁe ™ioup ạfifiuạÁ fifiạficiạÁ fitạtefiefitfi. Group trading profit segmentation Turnover Trạdrng (Woss)/profit Trạdrng (Woss)/profit mạrgrn Net Weạse finạnce expense # Trạdrng (Woss)/profit ạfiter Weạse rnterest* Trạdrng (Woss)/profit ạfiter Weạse rnterest mạrgrn FY?6 (5? weeks) Prck n Pạy Boxeu fi3 608 46 68? (953) ? 638 (1.3%) 5.fi% (1 080) (483) (? 033) ? 155 (?.8%) 4.6% Guoup 1?0 ?90 1 685 1.4% (1 563) 1?? 0.1% FY?5 (53 weeks) Prck n Pạy Boxer fi6 45? 4? 59fi (549) (0.fi%) (1 141) (1 690) (?.?%) ? 308 5.4% (41?) 1 896 4.5% kroup 119 049 1 fi59 1.5% (1 553) ?06 0.?% # Afi pei tÁe 6tạtefiefit ok "ofipieÁefifiive ficofie. Meạfie fifiạfice expefifie Áefifi Áeạfie fifiạfice ificofie, wÁicÁ ifi ificofie ieceive¾ kiofi kiạficÁifie fiuď-Áeạfiefi wÁeie tÁe ™ioup ÁoÁ¾fi Áeạ¾ Áeạfiefi. ˙ Rekei to Appefi¾ix 1 Pio koifiạ fifiạficiạÁ ifikoifiạtiofi. Group AnnuạW FrnạncrạW Stạtements ?0?6 ?3 ‌Group net finance costs ™roup net finạnce costs, rncWudrng rmpWred rnterest chạrges under FRS 16, decWrned 33.6% yeạr-on-yeạr to R1.3 brWWron. Prck n Pạy segment net finạnce costs decWrned 48.3% yeạr-on-yeạr to R843 mrWWron (due to the FY?5 recạprtạWrsạtron ạnd the store estạte reset progrạmme), whrWe .oxer net finạnce costs rncreạsed 31.3% yeạr-on-yeạr to R48? mrWWron (due to debt tạken on prror to the PO ạnd store estạte growth). Fundrng rnterest - ™roup net fiundrng rnterest swung firom ạ net R443 mrWWron expense rn FY?5 to R?38 mrWWron net rncome rn FY?6. Leạse rnterest - mpWred net rnterest chạrges under FRS 16 rncreạsed 0.6% yeạr-on-yeạr to R1.6 brWWron. The rncreạse wạs drrven by the store roWWout rn .oxer (Weạse rnterest up 1fi.?% yeạr-on-yeạr), wrth net Weạse rnterest rn the Prck n Pạy segment decWrnrng by 5.3%. FY?6 FY?5 % Net finạnce costs (Rm) (5? weeks) (53 weeks) chạnge kroup (1 3?5) (1 996) (33.6) Net fiundrng rnterest 1 ?38 (443) (153.fi) Net Weạse rnterest ? (1 563) (1 553) 0.6 Prck n Pạy (843) (1 6?9) (48.3) Net fiundrng rnterest ?3fi (488) (148.6) Net Weạse rnterest (1 080) (1 141) (5.3) Boxer (48?) (36fi) 31.3 Net fiundrng rnterest 1 45 (9fi.8) Net Weạse rnterest (483) (41?) 1fi.? 1 Net kufi¾ifig ifiteiefit ificÁu¾efi ifiteiefit ieceive¾ ofi tiạ¾e ạfi¾ otÁei ieceivạďÁefi ok R65 fiiÁÁiofi ạfi¾ RZ8 fiiÁÁiofi ifi MY?6 ạfi¾ MY?5 iefipectiveÁy, wÁicÁ ifi piifiạiiÁy ifiteiefit ificofie ofi ovei¾ue kiạficÁifie ieceivạďÁefi witÁifi tÁe Pick fi Pạy fiegfiefit. 2 Afi pei tÁe 6tạtefiefit ok "ofipieÁefifiive ficofie. Meạfie ÁiạďiÁity fifiạfice cofitfi Áefifi fiet ifivefitfiefit ifi Áeạfie ieceivạďÁefi fifiạfice ificofie, wÁicÁ ifi ificofie ieceive¾ kiofi fiuď-Áeạfiefi wÁeie tÁe ™ioup ÁoÁ¾fi Áeạ¾ Áeạfiefi. Group capital items The ™roup recorded ạn FY?6 cạprtạW Woss ofi R44? mrWWron, compạred wrth R388 mrWWron rn FY?5. R398 mrWWron ofi the cạprtạW Woss wạs recorded wrthrn the Prck n Pạy segment, whrWe R44 mrWWron HeạdWrne eạrnrngs per shạre (HEPS) - The HeạdWrne Woss per shạre reduced by 14.6% to ạ Woss ofi 5?.58 cents per shạre. AWW rmpạrrment Wosses ạnd other cạprtạW rtems ạre excWuded firom the cạWcuWạtron ofi heạdWrne eạrnrngs. Eạrnrngs per shạre (EPS) - The Woss per shạre reduced by 10.fi% to ạ Woss ofi 99.1fi cents per shạre, ạnd rncWudes ạWW rtems ofi ạ cạprtạW nạture. Detailed review of Group financial position Funding ™roup net cạsh ạt perrod-end wạs R3.1 brWWron, rncWudrng R?.4 brWWron ofi net cạsh wrthrn Prck n Pạy ạnd R0.fi brWWron ofi net cạsh wrthrn .oxer. ™roup net cạsh reduced by R1.1 brWWron srnce Mạrch ?0?5, comprrsrng ạ R0.9 brWWron posrtrve swrng wrthrn .oxer, ạnd ạ R?.0 brWWron cạsh utrWrsạtron wrthrn Prck n Pạy. The Prck n Pạy segment hạs R3.0 brWWron ofi short-term workrng cạprtạW fiạcrWrtres rn pWạce to fiund rntrạ-month workrng cạprtạW requrrements where necessạry. Thrs fiạcrWrty rs unsecured ạnd rs not guạrạnteed by .oxer RetạrW Lrmrted. Fundrng (Rm) FY?6 FY?5 ™roup gross debt (excWudrng Weạses) ™roup cạsh ạnd cạsh equrvạWents (?00) 3 ?fifi (1 150) 5 3?8 kroup net cạsh/(debt) 3 0fifi 4 1fi8 Prck n Pạy net cạsh ? 368 4 358 .oxer net cạsh/(debt) fi09 (180) Working capital Workrng cạprtạW ạbsorbed R0.4 brWWron ofi ™roup Wrqurdrty rn FY?6. Thrs rncWuded ạ R1fi mrWWron Wrqurdrty utrWrsạtron wrthrn Prck n Pạy ạnd ạ R386 mrWWron utrWrsạtron wrthrn .oxer. The FY?6 Wrqurdrty reWeạse rs ạttrrbuted to the fioWWowrng: Trght workrng cạprtạW controWs wrthrn Prck n Pạy, desprte rnvestrng rn rnventory rạnge; ạnd A R0.9 brWWron rnventory rncreạse wrthrn .oxer, ạrrsrng firom strạtegrc rnventory rnvestments, stockrng the new Tongạạt DC, ạnd store growth. occurred wrthrn .oxer. The ™roup cạprtạW Woss reflected ạ R391 mrWWron net ạsset rmpạrrment together wrth ạ R51 mrWWron net Net workrng cạprtạW movement (Rm) FY?6 (5? weeks) FY?5 (53 weeks) Woss on drsposạW ofi ạssets. Prck n Pạy .oxer (1fi) (386) (505) (fi8) kroup Wrqurdrty ạbsorptron (403) (583) Group tax The ™roup's efifiectrve tạx rạte reflects the combrned efifiects ofi ạ ?0.3% ạnd ?6.3% efifiectrve tạx rạte rn the Prck n Pạy segment ạnd .oxer respectrveWy. The ™roup expects to pạy mrnrmạW tạx rn the Prck n Pạy segment fior the fioreseeạbWe fiuture, grven the ạntrcrpạtron ofi fiurther Wosses wrthrn thrs segment ạnd the ạccumuWạted tạx Wosses. Earnings per share The ™roup notes the substạntrạW rmpạct ofi the 34.4% .oxer non-controWWrng rnterest, whrch wạs consoWrdạted fior fiuWW yeạr FY?6 versus three months wrthrn FY?5. The hrgh vạWue ofi the FY?6 non-controWWrng rnterest, ạt R535 mrWWron, hạs ạ mạterrạW rmpạct on the cạWcuWạtron ofi FY?6 ạttrrbutạbWe eạrnrngs. The FY?6 Woss ạnd HeạdWrne Woss reduced by 1.1% to Rfi?8 mrWWron ạnd 5.4% to R386 mrWWron respectrveWy. Per shạre eạrnrngs metrrcs contrnue to be rmpạcted by the August ?0?4 P K Rrghts Ofifier, whrch resuWted rn the werghted ạverạge number ofi ordrnạry shạres rn rssue (net ofi treạsury shạres) rncreạsrng by 10.fi% firom 663.0 mrWWron rn FY?5 to fi34.1 mrWWron fior FY?6. ?4 https://www.pnp.co.zạ ‌Group capital investment ™roup FY?6 net cạprtạW rnvestment (r.e. net ofi proceeds firom ạsset drsposạWs) ofi R1.9 brWWron reflected ạ ??.3% rncreạse on the R1.6 brWWron rnvested rn FY?5. The rncreạse wạs prrmạrrWy drrven by Prck n Pạy whrch rncreạsed rts net rnvestment by 41.?% to R0.9 brWWron. ™roup gross cạprtạW rnvestment fior the FY?fi finạncrạW yeạr rs WrkeWy to be ạpproxrmạteWy R?.8 brWWron, rncWudrng R1.fi brWWron fior Prck n Pạy ạnd R1.1 brWWron fior .oxer. Astute mạnạgement ofi trạdrng expenses rs ạ crrtrcạW Wever on the journey to ạchrevrng breạk-even ạt the trạdrng WeveW wrthrn the Prck n Pạy segment. EmpWoyee costs ạre the Prck n Pạy segment's Wạrgest expense (equạtrng to 41.4% ofi FY?6 trạdrng expenses) ạnd ạre out ofi krWter wrth the wrder retạrW rndustry. Support ofifice empWoyee costs were tạrgeted rn FY?6 (ạnd contrnued to be ạddressed), wrth restructurrng ạnd ạ sạWạry fireeze. Post yeạr end, Prck n Pạy rnrtrạted ạ s.189A (ofi the Lạbour ReWạtrons Act) process wrth our bạrgạrnrng unrt store-bạsed empWoyees ạnd Wạbour pạrtners wrth the express purpose ofi restructurrng our Wạbour modeW ạnd brrngrng Prck n Pạy's empWoyee costs, prạctrces ạnd efificrencres rn-Wrne wrth the mạrket. The outcome ofi thrs process, Net cạprtạW rnvestment (Rbn) FY?6 FY?5 Prck n Pạy 0.9 0.6 .oxer 1.0 0.9 kroup 1.9 1.6 rn combrnạtron wrth the other turnạround rnrtrạtrves, rs crrtrcạW to Prck n Pạy's ạbrWrty to reạch profit breạk-even, to creạte ạ sustạrnạbWe busrness wrth secure fiutures fior Prck n Pạy empWoyees. EWevạted orW ạnd dreseW prrces meạn thạt the trạdrng outWook fior FY?fi rs uncertạrn. The ™roup expects the wạr rn the Persrạn ™uWfi to rmpạct fiood rnflạtron, WogrstrcạW costs, ạnd the ạbrWrty ofi the Shareholder distribution As ạ resuWt ofi the heạdWrne Woss rncurred, the .oạrd hạs not decWạred ạ drvrdend, ạnd does not expect to decWạre ạny drvrdends untrW the ™roup hạs returned to sustạrnạbWe profitạbrWrty. Subsequent event: R4.7 billion Boxer share sale On 18 Mạy ?0?6 the ™roup compWeted ạ pWạcement ofi 5fi.3 mrWWron .oxer shạres vrạ ạn ạcceWerạted bookburWd fior gross proceeds ofi R4.fi brWWron. The shạres soWd represent 1?.5% ofi .oxer shạres rn rssue, ạnd reduce the ™roup's .oxer shạrehoWdrng firom 65.6% to 53.1%. The net proceeds ofi the sạWe, together wrth the R?.4 brWWron ofi net cạsh wrthrn the Prck n Pạy segment, wrWW be used to rnvest rn ạnd fiund the Prck n Pạy segment's journey to growth ạnd profitạbrWrty. The ™roup rs firmWy commrtted to retạrnrng ạ mạjorrty stạke rn .oxer, whrch rs ạ vrtạW pạrt ofi the ™roup. Group strategic plan and outlook FY?6 sạw ạn exceptronạW perfiormạnce firom .oxer. Agạrnst thạt, the Prck n Pạy segment's rncreạsed trạdrng Woss rndrcạtes thạt the rn-progress turnạround strWW hạs some wạy to go. The Woss ofi R?.0 brWWron ạt the trạdrng profit ạfiter Weạse rnterest WeveW rn the Prck n Pạy segment underprns the urgency ofi returnrng Prck n Pạy to ạ sustạrnạbWe enterprrse. Notwrthstạndrng the chạWWenges, posrtrve progress rs berng mạde rn rmprovrng the customer experrence, whrch rs our WrfiebWood. CrrtrcạW eWements ofi the Prck n Pạy turnạround strạtegy hạve ạWreạdy been put rn pWạce, wrth the fiuWW benefits strWW to be reạWrsed. nrtrạtrves rncWudrng cWosrng Woss-mạkrng stores, strengthenrng store ạnd regronạW mạnạgement, ạnd rmprovrng the product ofifier hạve drrven ạ steạdy rmprovement rn Wrke-fior-Wrke sạWes cou...

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