Interim results for the period ended 28 June 2015

Interim results for the period ended 28

2 Massmart interim results Massmart is a managed portfolio of four divisions, each focused on highvolume, low-margin, low-cost distribution of mainly branded consumer goods for cash, in 13 countries in sub-saharan Africa, comprising 398 stores. The Group is the second largest distributor of consumer goods in Africa, the leading retailer of general merchandise, liquor and home improvement equipment and supplies, and the leading wholesaler of basic foods. For the ended 28 Massmart s total sales of R38.9 billion increased by 9.1% over the prior comparable period. Comparable stores sales growth was 6.9% and product inflation 3.7%, suggesting good volume growth. Group operating profit, excluding foreign exchange movements and interest, grew by 12.7% which was lower than we d hoped but is satisfactory given the soft economic environment. This performance was achieved by effective margin management which lifted gross margins to 18.9% and robust expense control which kept comparable expense growth below sales growth. Higher net interest paid from funding significant property acquisitions in 2013-14, and an adverse movement in foreign exchange translations, resulted in headline earnings decreasing by 26.0% while, excluding foreign exchange movements, headline earnings declined by 3.9%. During the reporting period, a net six stores were opened or acquired, including two new stores in Africa, resulting in a net space increase of 0.8% and a total of 398 stores, 35 of these in Africa, at.. Sales of large appliances, hi-tech, multimedia and home improvement remain steady, but may be impacted should upper-income customers confidence levels fall further. For several years all Massmart stores have had dedicated back-up generators and so, with few exceptions, we have traded through electricity outages. Indeed, some indicators would suggest that outages result in increased footfall to our standalone Makro and Builders Warehouse stores. Our financial highlights: Environment As we noted at Massmart s May 2015 Annual General Meeting, the n consumer economy remains constrained and we anticipate further negative pressure, including Food inflation, interest rates and the Rand exchange rate. More recently we have seen a 25bps increase in interest rates and further weakening of the Rand. The n manufacturing sector is in technical recession, and measured consumer confidence is at a 14-year low, both partly caused by ongoing electricity outages. Cost inflation from most sources of product or services is high and compounded by infrastructural inefficiency. Weak demand is driving business to search aggressively for costefficiencies and, as a last resort to pass price increases on to the consumer. Other options are to invest for ex-south African or ex-african growth and to be measured about new domestic investment. All participants suppliers, service providers, retailers and wholesalers are competing keenly for profitability and market share, causing heightened margin pressure across the retail value chain. This intense competition is good news for customers. Massmart s sales remained resilient for most of this sixmonth period but slowed markedly in June, caused partly by the base-effect of the 2014 Soccer World Cup. Sales were soft in July but have been firmer in August. Sales R38,917.4 m UP BY 9.1% 2014: R35,659.8 m Operating profit before forex and interest R791.9 m UP BY 12.7% 2014: R702.9 m Operating profit before interest R685.2 m DOWN BY 1.4% 2014: R695.0 m Headline earnings before forex R355.4 m DOWN BY 3.9% 2014: R369.8 m Headline earnings after forex (taxed) R269.3 m DOWN BY 26.0% 2014: R364.1 m Dividend per share 146.0 cents UNCHANGED 2014: 146.0 cents

For the period ended 28 3 Many countries in Sub-Saharan Africa are facing doubledip economic challenges from the stronger US Dollar and weaker commodity prices, which brings currency volatility and weakness. Regardless, we remain excited about the long-term growth opportunity across several African countries. This perspective is reinforced by recent successful store openings of Game stores in Kenya and Zambia and the success of the Builders Warehouse growth strategy outside. Divisional operational review Massdiscounters comprises the 134-store General Merchandise and Food discounter Game, which trades in, Botswana, Ghana, Kenya, Lesotho, Malawi, Mozambique, Namibia, Nigeria, Tanzania, Uganda and Zambia; and the 24-store Hitech retailer DionWired. Total sales for the period increased by 9.1%. Comparable sales grew by 4.1% with product inflation of 2.1%. Game SA saw good trading with total sales growth of 9.3% and trading profit up by 12.1%. Game Africa s total Rand sales and sales in local currencies increased by 9.7% and 14.2% respectively but profit was below that recorded for the prior comparable period due to expense inflation, operational challenges and currency devaluations. DionWired s total sales growth was 7.9%. The online offering represents 1.5% of total sales (: 2.1%), slightly lower due to changes in aspects of our offering. We are excited that nine stores have been selected recently to become Apple White Stores. Massdiscounters trading profit before interest and tax increased by 8.0%. The roll-out of Fresh continues with 74 Game stores now offering this category, and Food sales comprise 19.8% of Game s total sales. Food comparable sales growth remains strong at 14.1%. Recent customer intercept research has shown that 20% of Game customers regard Game as a food destination and that the majority of these food customers cross-shop our general merchandise categories. We are encouraged by Minister Patel s April announcement of an inquiry into, amongst other things, tenancy arrangements in shopping malls. Some major food retailers continue to defend lease exclusivities, inhibiting competition and in some cases preventing smaller businesses from entering shopping centres. Regardless of how these restrictions may be characterised by the major retailers, we believe them to be intuitively anti-competitive. Four Game stores (two in Africa) and one DionWired store were opened, increasing trading space by 3.1% to 521,892m². We are excited about this week s opening of our first power-centre, being a new Game store adjacent to the Builders Warehouse store in Matola, Mozambique. Masswarehouse comprises the 19-store Makro warehouse-club trading in Food, General Merchandise and Liquor in ; and The Fruitspot. Makro s total and comparable sales for the period increased by 11.4% each, with product inflation of 4.3%. This sales performance demonstrates customers responding strongly to our value proposition. The growth in Makro s trading profit before interest and tax was pleasing at 13.5%. The business traded superbly in a challenging environment that saw margin pressure across Food, Liquor and General Merchandise, and delivered great expense control too. Much is being learnt from the General Merchandise and Liquor online offerings, launched in March and October 2014 respectively, and we remain excited at the potential of this channel. Analysis of online customer purchasing behavior has indicated that click-and-collect customers typically make further purchases in-store when collecting their online purchases. Whilst still effectively in test-phase, the new Makro Pick-up locker project demonstrates our willingness to innovate, and during September 2015 we will launch a Commercial Customer online solution. There were no new stores in the period but we anticipate opening a new store near Carnival Mall in the east of Johannesburg in April 2016. Divisional trading review % of sales % of sales Period % growth Comparable % sales growth Estimated % sales inflation December 2014 Sales 38,917.4 35,659.8 9.1 6.9 3.7 78,173.2 Massdiscounters 8,973.6 8,225.8 9.1 4.1 2.1 17,955.2 Masswarehouse 10,759.2 9,659.4 11.4 11.4 4.3 21,554.8 Massbuild 5,637.1 4,847.9 16.3 10.6 5.1 10,822.8 Masscash 13,547.5 12,926.7 4.8 3.9 3.6 27,840.4 Trading profit before interest and tax 806.7 2.1 729.9 2.0 10.5 2,061.7 2.6 Massdiscounters 29.6 0.3 27.4 0.3 8.0 180.7 1.0 Masswarehouse 461.3 4.3 406.5 4.2 13.5 1,044.3 4.8 Massbuild 243.9 4.3 186.2 3.8 31.0 537.6 5.0 Masscash 71.9 0.5 109.8 0.8 (34.5) 299.1 1.1 Trading profit excludes several items. A detailed reconciliation between trading and operating profit can be found below the 'Condensed consolidated income statement' table. % of sales

4 Massmart interim results Massbuild comprises 99 stores, trading in DIY, Home Improvement and Building Materials, under the Builders Warehouse, Builders Express, Builders Trade Depot and Builders Superstore brands in, Botswana and Mozambique. Massbuild grew total sales for the period by 16.3%. Comparable sales increased by 10.6% with product inflation of 5.1%. Sales growth in Builders Warehouse and Builders Express remains strong and suggests continued market share gains as customers respond to this superb offering to retail and professional customers. Sales outside of South Africa already represent 6% of Massbuild sales and grew by 68%, bolstered by the strong performance of the Matola, Mozambique, store opened in July 2014. Massbuild s trading profit before interest and tax increased by an exceptional 31.0%. One Builders Warehouse store was opened; one Builders Express store was opened and one closed; and two Builders Trade Depot stores were closed. Net trading space at the end of the period decreased marginally by 0.5% to 434,534m². We are looking forward to the opening of our first Builders Warehouse store in Zambia towards the end of 2015. Masscash comprises 73 Wholesale Cash & Carry and 49 Retail stores trading in, Botswana, Lesotho, Mozambique, Namibia and Swaziland; and Shield, a voluntary buying association. In the vibrant and very competitive n Wholesale and Retail Food environments, total sales increased by 4.8%. Comparable sales increased by 3.9% with product inflation of 3.6%. Wholesale, in particular, was affected by Commodities deflation its highest participation category. Despite this, Wholesale s market share has increased since 2014. Total sales growth in our non-n Wholesale businesses, representing 20% of Wholesale sales, was 5.6% as performance was affected by trading challenges in Botswana. Masscash Retail traded well in an increasingly competitive Retail Food market, reporting comparable sales growth of 6.3%. Profit performance was compromised this period due to new store roll-outs, increased security costs, and the costs and distraction of the SAP roll-out, the first phase of which was effected in the KZN region this period. Masscash s trading profit before interest and tax decreased by 34.5%. Three Retail stores were opened and one was closed, and some Wholesale stores were re-sized, resulting in net trading space at the end of the period decreasing slightly by 0.3% to 399,393m². Financial review Financial performance Total Group sales growth was 9.1% over the prior comparable period, with comparable sales growth of 6.9%. Product inflation was 3.7%, suggesting real comparable volume growth of 3.2%. General Merchandise inflation remained steady at 3.6%, Food & Liquor and Home Improvement inflation decreased to 3.3% and 5.2% respectively. Sales in our African businesses represented 8.2% of total sales and increased by 14.6% in Rands. During the period, 10 stores were opened and four were closed, resulting in a total of 398 stores at. Net trading space increased by 0.8% to 1,551,613m². The Group s gross margin of 18.9% was higher than that of the prior comparable period of 18.6%. A large portion of this increase stems from increased sales in Massbuild and Masswarehouse, at higher margins. Total operating expenses (excluding foreign exchange movements) increased by 9.9% over the prior comparable period. Comparable operating expenses were wellcontrolled and increased by 7.3%. Employment costs, the Group s most significant cost, increased by 12.2%, largely due to the opening of new stores which led to a 3.3% increase in full-time equivalent employees. Occupancy costs increased by 8.0%. Depreciation and amortisation increased by 12.8% over the prior comparable period. Included in operating profit is a net realised and unrealised foreign exchange translation loss of R106.7 million (: R7.9 million loss). The majority of the foreign exchange loss is as a result of the weakening of the average basket of African currencies against the Rand. The weakening of the Rand against the US Dollar exacerbated this loss. Excluding foreign exchange movements, earnings before interest, tax, depreciation and amortisation (EBITDA) of R1.3 billion increased over the prior comparable period by 11.5%. Year-on-year interest-bearing debt has increased by R1.8 billion. The Group s strategy to own key properties, and continued expansion have been drivers of the increase. More specifically, three significant leaseheld property transactions in the second half of 2014 occurred at an aggregate cost of R739.2 million. Over and above these acquisitions, property, plant and equipment has increased by a further R738.5 million as the Group has continued to invest in new stores and to refurbish existing stores. Finally, at reporting date, creditors fund R376.9 million less of inventory and debtors than in the prior comparable period. The result of the increase in debt is that net interest paid has grown to R234.8 million, further aggravated by interest rate increases. The Group s effective tax rate is 31.9% (: 30.4%). The non-controlling interests comprise store managers holdings in Masscash stores and non-controlling interests in acquired Masscash businesses. Headline earnings and headline earnings per share (HEPS) decreased by 26.0% over the prior comparable period largely as a result of the significant foreign exchange loss incurred. Adjusting for the effect of the foreign exchange movements in both periods results in a decrease in headline earnings and in HEPS of 3.9% and 3.8% respectively. Financial position Inventories have increased year-on-year as a result of new stores, stock days however have remained stable at 61 days. Debtors have increased at a slightly slower rate than sales. Trade creditor days at 57.6 are slightly under the prior comparable period s 59.7 as a result of some early settlement discounts taken.

For the period ended 28 5 The net book value of property, plant and equipment increased by 24.0% compared to, as a result of acquiring some of our key properties and the investment in new stores. The Group s gearing ratio (debt:equity) increased to 53.0% (: 38.1%), for the reasons explained above. The annual rolling return on equity was 20.4% at (: 25.5%). Excluding foreign exchange movements, this figure was 22.8% (: 26.6%). Operating cash utilised amounted to R1.6 billion. Total capital expenditure of R0.7 billion comprises: R0.4 billion on replacement expenditure; and R0.3 billion on expansionary expenditure, and is in line with expectations. Strategic priorities Our areas of strategic focus remain unchanged: To drive the growth and profitability of the core South African business over the medium-term is a priority. Although we are making good progress in this regard, we are constrained by the short-term trading environment; To expand further into Food Retail and Fresh in our existing formats; Sub-Saharan African expansion remains a priority and in the next two years we anticipate opening eight new stores representing African space growth of about 21.9%; and We continue to expand and improve our ecommerce offerings. Regarding Africa, Massmart can take three different formats into Africa being Game, Builders Warehouse and Cash & Carry as we meet our promise to Save People Money So They Live Better. With limited in-country infrastructure, expensive resources and volatile economies, we will continue a patient and measured roll-out of stores. Higher sales densities the average annual sales per African store is R192 million deliver highly profitable stores which comfortably exceed any likely foreign exchange currency translation losses. Prospects For the 33 weeks to 16 August 2015, total sales increased by 8.7% and comparable sales increased by 6.8%. Whilst we remain confident and resolute about delivering our strategic priorities, we are concerned that for the next 12 18 months the n and most sub-saharan consumer economies are unlikely to be supportive. In addition, Massmart s n performance may be hampered by our relative exposure to General Merchandise in a tightening interest rate cycle. The financial information on which this forward-looking statement is based has not been reviewed or reported on by the Company s external auditors. Dividend Massmart has maintained the dividend at the same level as the prior comparable period. Notice is hereby given that a gross interim cash dividend of 146.0 cents per share, in respect of the period ended 28, has been declared. The number of shares in issue at the date of this declaration is 217,136,334. The Group s Board of Directors will be reassessing Massmart s dividend level given the Group s higher actual and anticipated capital expenditure and, with effect from the 2015 final dividend, is likely to adjust the dividend cover to levels similar to retail peers. The dividend has been declared out of income reserves as defined in the Income Tax Act, 1962, and will be subject to the n dividend withholding tax ( DWT ) rate of 15% which will result in a net dividend of 124.10 cents per share to those shareholders who are not exempt from paying dividend tax. Massmart s tax reference number is 9900/196/71/9. The salient dates relating to the payment of the dividend are as follows: Last day to trade cum dividend on the JSE: Friday, 11 September 2015 First trading day ex dividend on the JSE: Monday, 14 September 2015 Record date: Friday, 18 September 2015 Payment date: Monday, 21 September 2015 Share certificates may not be dematerialised or rematerialised between Monday, 14 September 2015 and Friday, 18 September 2015, both days inclusive. Massmart shareholders who hold Massmart ordinary shares in certificated form ( certificated shareholders ) should note that dividends will be paid by cheque and by means of an electronic funds transfer ( EFT ) method. Where the dividend payable to a particular certificated shareholder is less than R100, the dividend will be paid by EFT only to such certificated shareholder. Certificated shareholders who do not have access to any EFT facilities are advised to contact the company s transfer secretaries, Computershare Investor Services at Ground Floor, 70 Marshall Street, Johannesburg 2001; PO Box 61051, Marshalltown 2107; on 011 370 5000; or on 086 110 09818 (fax), in order to make the necessary arrangements to take delivery of the proceeds of their dividend. Massmart shareholders who hold Massmart ordinary shares in dematerialised form will have their accounts held at their CSDP or broker credited electronically with the proceeds of their dividend. On behalf of the Board Guy Hayward Chief Executive Officer 26 August 2015 Johannes van Lierop Chief Financial Officer

6 Massmart interim results Condensed consolidated income statement Period % change December 2014 Revenue 38,980.7 35,756.5 9.0 78,319.0 Sales 38,917.4 35,659.8 9.1 78,173.2 Cost of sales (31,545.8) (29,010.2) (8.7) (63,610.8) Gross profit 7,371.6 6,649.6 10.9 14,562.4 Other income 63.3 96.7 (34.5) 145.8 Depreciation and amortisation (461.7) (409.2) (12.8) (846.6) Impairment of assets (note 3) (3.4) (14.9) 77.2 (24.6) Employment costs (3,236.8) (2,885.1) (12.2) (6,109.0) Occupancy costs (1,415.7) (1,311.0) (8.0) (2,678.8) Other operating costs (1,525.4) (1,423.2) (7.2) (3,033.3) Operating profit before foreign exchange movements and interest 791.9 702.9 12.7 2,015.9 Foreign exchange loss (note 4) (106.7) (7.9) (49.8) Operating profit before interest 685.2 695.0 (1.4) 1,966.1 Finance costs (252.5) (176.6) (43.0) (386.8) Finance income 17.7 21.7 (18.4) 41.5 Net finance costs (234.8) (154.9) (51.6) (345.3) Profit before taxation 450.4 540.1 (16.6) 1,620.8 Taxation (143.8) (164.1) 12.4 (483.4) Profit for the period 306.6 376.0 (18.5) 1,137.4 Profit attributable to: Owners of the parent 281.6 350.0 (19.5) 1,079.8 Non-controlling interests 25.0 26.0 (3.8) 57.6 Profit for the period 306.6 376.0 (18.5) 1,137.4 Basic EPS (cents) 129.9 161.3 (19.5) 497.8 Diluted basic EPS (cents) 127.9 159.9 (19.9) 492.9 Dividend (cents): Interim 146.0 146.0 146.0 Final 275.0 Total 146.0 146.0 421.0 Reconciliation between trading profit and operating profit before foreign exchange movements, interest and taxation December 2014 Profit before interest and taxation Trading profit before interest and taxation 806.7 729.9 2,061.7 Impairment of assets (note 3) (3.4) (14.9) (24.6) BEE transaction IFRS 2 charge (11.4) (12.1) (21.2) Operating profit before foreign exchange movements and interest 791.9 702.9 2,015.9

For the period ended 28 7 Headline earnings Period % change December 2014 Reconciliation of profit for the period to headline earnings Profit for the period attributable to owners of the parent 281.6 350.0 (19.5) 1,079.8 Impairment of assets (note 3) 3.4 14.9 24.6 (Profit)/loss on disposal of tangible and intangible assets (1.4) (1.3) 1.4 Profit on sale of assets classified as held for sale (1.1) Foreign currency translation reserve re-classified to the Income Statement (12.9) Total tax effects of adjustments (0.3) 0.5 (0.3) Headline earnings 269.3 364.1 (26.0) 1,105.5 Headline earnings before foreign exchange (taxed) 355.4 369.8 (3.9) 1,141.4 Headline EPS (cents) 124.2 167.8 (26.0) 509.7 Headline EPS before foreign exchange (taxed) (cents) 164.0 170.5 (3.8) 526.2 Diluted headline EPS (cents) 122.4 166.4 (26.4) 504.7 Diluted headline EPS before foreign exchange (taxed) (cents) 161.5 169.0 (4.4) 521.1 Condensed consolidated statement of comprehensive income Period % change December 2014 Profit for the period 306.6 376.0 (18.5) 1,137.4 Items that will not subsequently be re-classified to the Income Statement: (8.9) Post retirement medical aid actuarial loss (8.9) Items that will subsequently be re-classified to the Income Statement: (36.4) (60.7) (55.6) Foreign currency translation reserve (28.9) (49.4) (53.7) Cash flow hedges - effective portion of changes in fair value (8.7) (14.3) 1.4 Fair value movement on available-for-sale financial assets (2.2) (1.2) (3.7) Income tax relating to components of other comprehensive income 3.4 4.2 0.4 Total other comprehensive loss for the period, net of tax (36.4) (60.7) (64.5) Total comprehensive income for the period 270.2 315.3 (14.3) 1,072.9 Total comprehensive income attributable to: Owners of the parent 245.2 289.3 1,015.3 Non-controlling interests 25.0 26.0 57.6 Total comprehensive income for the period 270.2 315.3 (14.3) 1,072.9

8 Massmart interim results Condensed consolidated statement of financial position % change December 2014 ASSETS Non-current assets 11,433.3 9,905.7 15.4 11,018.3 Property, plant and equipment 7,631.8 6,154.1 24.0 7,239.2 Goodwill and other intangible assets 2,960.3 2,903.8 1.9 2,958.7 Investments and other financial assets 161.7 193.8 (16.6) 158.2 Deferred taxation 679.5 654.0 3.9 662.2 Current assets 16,110.3 14,978.4 7.6 17,870.1 Other current financial assets (note 6) 229.3 Inventories 10,530.8 9,774.7 7.7 11,228.8 Trade and other receivables 3,848.2 3,624.7 6.2 4,288.3 Taxation 202.7 161.7 25.4 56.3 Cash on hand and bank balances 1,528.6 1,417.3 7.9 2,067.4 Non-current assets classified as held for sale 3.0 18.0 Total assets 27,546.6 24,884.1 10.7 28,906.4 EQUITY AND LIABILITIES Total equity 5,212.5 5,041.0 3.4 5,527.2 Equity attributable to owners of the parent 5,033.0 4,871.8 3.3 5,334.4 Non-controlling interests 179.5 169.2 6.1 192.8 Non-current liabilities 3,368.6 2,515.1 33.9 3,236.8 Interest-bearing borrowings (note 7) 2,184.7 1,454.6 50.2 2,133.9 Deferred taxation 70.2 94.9 (26.0) 61.3 Other non-current liabilities and provisions (note 8) 1,113.7 965.6 15.3 1,041.6 Current liabilities 18,965.5 17,328.0 9.5 20,142.4 Trade, other payables and provisions 14,512.2 13,942.1 4.1 18,518.9 Taxation 155.7 152.1 2.4 208.3 Bank overdrafts (note 7) 3,267.1 2,650.7 23.3 584.0 Interest-bearing borrowings (note 7) 1,030.5 583.1 76.7 831.2 Total equity and liabilities 27,546.6 24,884.1 10.7 28,906.4

For the period ended 28 9 Condensed consolidated statement of cash flows December 2014 Operating cash before working capital movements 1,308.0 1,137.5 2,983.4 Working capital movements (2,925.3) (2,519.3) (295.1) Cash (utilised)/generated from operations (1,617.3) (1,381.8) 2,688.3 Taxation paid (347.7) (461.1) (683.4) Net interest paid (175.4) (154.9) (345.3) Dividends paid (622.8) (597.0) (914.0) Cash (outflow)/inflow from operating activities (2,763.2) (2,594.8) 745.6 Investment to maintain operations (365.5) (326.1) (857.4) Investment to expand operations (289.2) (263.0) (1,322.1) Investment in subsidiaries (28.2) (6.1) (14.4) Proceeds on disposal of property, plant and equipment 7.8 19.7 32.5 Proceeds on disposal of assets classified as held for sale 16.1 Other net investing activities 3.5 (6.7) 14.9 Cash outflow from investing activities (655.5) (582.2) (2,146.5) Cash inflow from financing activities 225.7 404.7 1,349.7 Net decrease in cash and cash equivalents (3,193.0) (2,772.3) (51.2) Foreign exchange movements (28.9) (49.4) (53.7) Opening cash and cash equivalents 1,483.4 1,588.3 1,588.3 Closing cash and cash equivalents (note 7) (1,738.5) (1,233.4) 1,483.4 Condensed consolidated statement of changes in equity Share capital Share premium Other reserves Retained profit Equity attributable to owners of the parent Noncontrolling interests Balance as at December 2013 2.2 743.3 517.6 3,909.9 5,173.0 196.6 5,369.6 Dividends declared (914.0) (914.0) (914.0) Total comprehensive income (64.5) 1,079.8 1,015.3 57.6 1,072.9 Changes in non-controlling interests (27.6) (27.6) (11.0) (38.6) Distribution to non-controlling interests (50.4) (50.4) IFRS 2 charge and Share Trust transactions 125.1 (27.4) 97.7 97.7 Treasury shares acquired (9.9) (0.1) (10.0) (10.0) Balance as at December 2014 2.2 733.4 550.5 4,048.3 5,334.4 192.8 5,527.2 Dividends declared (589.7) (589.7) (589.7) Total comprehensive income (36.4) 281.6 245.2 25.0 270.2 Changes in non-controlling interests 0.6 0.6 (2.7) (2.1) Distribution to non-controlling interests (35.6) (35.6) IFRS 2 charge and Share Trust transactions 99.3 (22.2) 77.1 77.1 Treasury shares acquired (34.6) (34.6) (34.6) ended 2.2 698.8 614.0 3,718.0 5,033.0 179.5 5,212.5 Balance as at December 2013 2.2 743.3 517.6 3,909.9 5,173.0 196.6 5,369.6 Dividends declared (597.0) (597.0) (597.0) Total comprehensive income (60.7) 350.0 289.3 26.0 315.3 Changes in non-controlling interests (25.4) (25.4) (7.7) (33.1) Distribution to non-controlling interests (45.7) (45.7) IFRS 2 charge and Share Trust transactions 51.2 (11.2) 40.0 40.0 Treasury shares acquired (8.1) (8.1) (8.1) ended 2.2 735.2 482.7 3,651.7 4,871.8 169.2 5,041.0 Total

10 Massmart interim results Fair value hierarchy For financial instruments traded in an active market (level 1), fair value is determined using stock exchange quoted prices. For other financial instruments (level 2), appropriate valuation techniques, including recent market transactions and other valuation models, have been applied and significant inputs include market yield curves and exchange rates. For non-current assets classified as held for sale (level 3) fair value less costs to sell has been determined based on the sale agreements. The table below reflects Financial instruments and Non-current assets classified as held for sale carried at fair value, and those Financial instruments and Non-current assets classified as held for sale that have carrying amounts that differ from their fair values, in the Statement of Financial Position. Jun 2015 1 2 3 June 2014 1 2 3 December 2014 Financial assets at fair value through profit or loss 138.8 138.8 112.5 112.5 155.1 155.1 Investment in cell captives and other 134.4 134.4 110.7 110.7 125.2 125.2 FEC asset (de-designated) 4.4 4.4 1.8 1.8 29.9 29.9 Financial asset designated as a cash flow hedging instrument 3.2 3.2 3.6 3.6 13.7 13.7 FEC asset (designated) 3.2 3.2 3.6 3.6 13.7 13.7 Loans and receivables 13.5 13.5 31.7 31.7 30.3 30.3 Employee share trust loans 13.5 13.5 31.7 31.7 30.3 30.3 Available-for-sale financial assets 6.3 6.3 11.0 11.0 8.4 8.4 Listed investments 6.3 6.3 11.0 11.0 8.4 8.4 Non-current assets classified as held for sale 7.0 7.0 22.0 22.0 168.8 6.3 155.5 7.0 158.8 11.0 147.8 229.5 8.4 199.1 22.0 Financial liabilities at amortised cost 2,880.2 2,880.2 1,728.6 1,728.6 2,653.0 2,653.0 Medium-term loan and bank loans 2,880.2 2,880.2 1,728.6 1,728.6 2,653.0 2,653.0 Financial liabilities at fair value through profit or loss 2.1 2.1 8.0 8.0 4.5 4.5 FEC liability (de-designated) 2.1 2.1 8.0 8.0 4.5 4.5 Financial liability designated as a cash flow hedging instrument 3.4 3.4 5.7 5.7 2.2 2.2 FEC liability (designated) 3.4 3.4 5.7 5.7 2.2 2.2 2,885.7 2,885.7 1,742.3 1,742.3 2,659.7 2,659.7 There were no transfers of financial instruments between 1, 2 and 3 fair value measurements during the period ended Additional information 1 2 Share Data December 2014 Net asset value per share (cents) 2,317.0 2,243.9 2,456.9 29 Dec 2014-26 Closing share price at Ordinary shares (000's): 26 R150.77 In issue 217,136.3 217,116.8 217,118.1 Weighted average (net of treasury shares) 216,764.1 216,951.1 216,907.6 Share price (26 week high) R175.00 Diluted weighted average 220,020.1 218,823.7 219,055.0 Share price (26 week low) Preference shares (000's): R138.73 Black Scarce Skills Trust 'B' shares in issue 2,840.5 2,860.0 2,858.7 Market cap Capital expenditure (): R32.7bn Authorised and committed 844.7 1,363.0 864.1 Reuters Authorised not committed 1,047.4 637.8 1,155.1 MSMJ.J Gross operating lease commitments (2015-2029) () 15,270.1 15,017.7 15,482.1 Bloomberg US dollar exchange rates: - period end (R/$) 12.11 10.59 11.60 MSM SJ - average (R/$) 11.90 10.69 10.83 Source: I-Net 3

For the period ended 28 11 Notes 1. These reviewed interim condensed consolidated results have been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), its interpretations issued by the IFRS Interpretations Committee, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, presentation and disclosure as required by International Accounting Standard (IAS) 34 Interim Financial Reporting, the JSE Limited Listings Requirements and the requirements of the Companies Act 71 of 2008 of. The accounting policies and methods of computation used in the preparation of the reviewed interim condensed consolidated results are in terms of IFRS and are consistent in all material respects with those applied in the most recent annual financial statements, as none of the amendments coming into effect in the current financial period have had an impact on the financial reporting of the Group. During the current period the Group reassessed the designation of a number of its intercompany loans to its foreign operations in Africa as per IAS 21. As a result, certain loans were designated as part of the Group s net investment in these foreign operations and the associated foreign exchange gains and losses have been recognised in the foreign currency translation reserve. 2. During the current period, 0.7 million Massmart shares (0.3% of average shares in issue) were acquired in the market by the Massmart Employee Share Trust at an average price of R158.71 totalling R108.6 million. During the prior comparable period, the Massmart Employee Share Trust acquired 0.3 million shares (0.1% of average shares in issue) at an average price of R128.73 totalling R35.4 million. 3. The impairment of assets in the current and prior comparable periods relate to the impairment of tangible assets in Masscash as a result of store closures. 4. Massmart s foreign exchange loss of R106.7 million (: R7.9 million) arose as a result of its foreign- and Rand-denominated intercompany loans to its African subsidiaries, as well as its US- Dollar-denominated liability to Walmart. In the current period, a combination of Massmart s increased investment into the rest of Africa; the weakening of the average basket of other African currencies against the Rand; and the weakening of the Rand against the US Dollar, resulted in a significant increase in Massmart s foreign exchange loss. 5. There were no significant business combinations during the current or prior comparable periods. 6. Massmart entered into an agreement in 2013 to acquire the Makro Amanzimtoti store. A current loan of R214.2 million was provided to the seller in 2014 in anticipation of the transfer of the property. Transfer of the property was approved in February 2015 and as a result the current loan was reversed and the property was recognised. 7. Interest-bearing borrowings and Bank overdrafts have increased by R250.1 million and R2.7 billion respectively since year-end. This additional funding has been used to fund inventory for new stores, as well as to settle year-end trade creditors. Closing cash and cash equivalents balances yearon-year have reduced by R505.1 million primarily as a result of multiple property acquisitions in the second half of 2014. 8. Other non-current liabilities and provisions include the lease smoothing liability of R976.0 million (: R842.4 million). 9. There were no significant subsequent events after the current period end. 10. Massmart and its divisions enter into certain transactions with related parties in the normal course of business. Details of these are, and will be, disclosed in Massmart s Integrated Annual Report. At, the Supplier Development Fund had a closing balance of R140.8 million (: R191.9 million). A net amount of R248.5 million remains unpaid to Walmart (June 2014: R184.5 million), which has been accounted for in Trade, other receivables and prepayments and Trade, other payables and provisions. The Group has a medium-term loan with Walmart repayable after five years, on which interest of 7.46% is paid quarterly. The loan of R600.0 million is accounted for under interest-bearing non-current liabilities. As a 52.4% shareholder, Wal-Mart Stores, Inc. will also be receiving a dividend based on their number of shares held. 11. These reviewed interim condensed consolidated results have been reviewed by independent external auditors, Ernst & Young Inc. and their unmodified review report is available for inspection at the Company s registered office. The review was performed in accordance with ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. Any reference to future financial performance included in this announcement has not been reviewed or reported on by the Group s external auditors. The auditor s report does not necessarily report on all of the information contained in this announcement/financial results. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor s engagement they should obtain a copy of the auditor s report together with the accompanying financial information from the issuer s registered office. The preparation of the Group s reviewed interim condensed consolidated financial statements was supervised by the Chief Financial Officer, Johannes van Lierop, Bachelor of Business Economics, RA (Amsterdam). JSE code MSM ISIN ZAE000152617 Company registration number 1940/014066/06 Registered office Massmart House, 16 Peltier Drive, Sunninghill Ext 6, 2191 Company secretary P Sigsworth Sponsor Deutsche Securities (SA) Proprietary Limited 3 Exchange Square, 87 Maude Street, Sandton, Johannesburg, 2196, Transfer secretaries Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg, 2001 Registered auditors Ernst & Young Inc. 102 Rivonia Road, Sandton, Johannesburg, Directorate K Dlamini (Chairman), CS Seabrooke (Deputy Chairman), GRC Hayward* (Chief Executive Officer), S Broader**, A Clarke***, NN Gwagwa, P Langeni, JP Suarez**, J van Lierop* (Chief Financial Officer) * Executive ** USA *** UK

General merchandise and food discounter Warehouse club Food, liquor and general merchandise Home improvement retailer and building materials supplier Food wholesaler, retailer and buying association Sales R8,973.6 m Sales R10,759.2 m Sales R5,637.1 m Sales R13,547.5 m UP BY 9.1% UP BY 11.4% UP BY 16.3% UP BY 4.8% 23.1% 27.6% 14.5% 34.8% Trading profit before interest and tax R29.6 m Trading profit before interest and tax R461.3 m Trading profit before interest and tax R243.9 m Trading profit before interest and tax R71.9 m UP BY 8.0% UP BY 13.5% UP BY 31.0% DOWN BY 34.5% 3.7% 57.2% 30.2% 8.9% Net new stores +5 FROM 153 TO 158 Net new stores 0 19 (UNCHANGED) Net new stores -1 FROM 100 TO 99 Net new stores +2 FROM 120 TO 122 Trading space Trading space Trading space Trading space 521,892 SQM 195,794 SQM 434,534 SQM 399,393 SQM 134 STORES, Botswana, Ghana, Kenya, Lesotho, Malawi, Mozambique, Namibia, Nigeria, Tanzania, Uganda, Zambia logistics 19 STORES services 36 STORES, Botswana, Mozambique 41 STORES 73 WHOLESALE STORES, Botswana, Lesotho, Mozambique, Namibia, Swaziland 49 RETAIL STORES 24 STORES 14 STORES 8 STORES BUYING ASSOCIATIONS, Botswana, Namibia, Swaziland