Operational Segmental Analysis
Segmental income statement
for the year ended 31 August 2009

Retail* UPD** Intragroup elimination Group
2009 2008 2009 2008 2009 2008 2009 2008
    (restated)           (restated)
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000
Segment revenue 8 557 963 7 423 024 5 375 224 5 137 493 (1 193 393) (867 731) 12 754 202 11 711 614
Turnover 8 291 261 7 185 241 5 077 444 4 864 586 (1 193 393) (856 250) 12 175 312 11 193 577
Cost of merchandise sold (5 902 646) (5 121 171) (4 947 437) (4 727 082) 1 192 153 863 986 (9 657 930) (8 984 267)
Gross profit 2 388 615 2 064 070 130 007 137 504 (1 240) 7 736 2 517 382 2 209 310
Other income 266 702 237 783 297 780 272 907 – (11 481) 564 482 499 209
Segment expenses (2 118 319) (1 861 955) (254 375) (256 116) – – (2 372 694) (2 118 071)
  Depreciation and amortisation (102 536) (84 797) (11 129) (10 581) – – (113 665) (95 378)
  Occupancy costs (335 054) (289 079) (17 001) (17 409) – – (352 055) (306 488)
  Employment costs (1 024 276) (864 659) (132 652) (121 469) – – (1 156 928) (986 128)
  Other costs (656 453) (623 420) (93 593) (106 657) – – (750 046) (730 077)
Operating profit 536 998 439 898 173 412 154 295 (1 240) (3 745) 709 170 590 448
(Loss)/profit on disposal of property, plant and equipment (6 942) 13 948 (235) (23) – – (7 177) 13 925
Profit on disposal of business – 1 244 – – – – – 1 244
Segment result from continuing operations 530 056 455 090 173 177 154 272 (1 240) (3 745) 701 993 605 617
Discontinued operations***             – 30 922
Net financing costs             (54 773) (51 087)
  Financial income***             14 408 18 828
  Financial expense             (69 181) (69 915)
                   
Profit before taxation             647 220 585 452
Income tax expense***             (174 619) (144 378)
Total profit for the year             472 601 441 074


Segmental cash flow information
for the year ended 31 August 2009
 

                
Continuing operations                
Capital expenditure (186 540) (162 647) (38 085) (11 653)     (224 625) (174 300)
Depreciation and amortisation 110 788 92 023 11 129 10 581     121 917 102 604
Non-cash items:                
  Fair value adjustment – derivative (28 053) 22 808 – –     (28 053) 22 808
  Foreign exchange loss 16 966 3 057 – –     16 966 3 057
  Loss/(profit) on disposal of property, plant and equipment 6 942 (13 948) 235 23     7 177 (13 925)
  Operating lease accrual 7 747 (5 574) – –     7 747 (5 574)
  Equity-settled share option costs 717 46 – –     717 46
* Retail includes the results of Clicks, Musica and The Body Shop
** Includes Direct Medicines with effect form 1 December 2008
*** Discontinued operations differs to the amount disclosed on the income statement as it excludes financial income taxation which have been included in the individual line items


Segmental balance sheet
at 31 August 2009
 

                
SEGMENT ASSETS                
Segment non-current assets 1 110 371 1 216 754 434 740 209 344 (183 196) (173 109) 1 361 915 1 252 989
 Property, plant and equipment 680 473 613 254 149 040 121 231 – – 829 513 734 485
 Intangible assets 301 358 300 811 955 1 330 – – 302 313 302 141
 Goodwill – – 96 124 85 811 – – 96 124 85 811
 Deferred tax assets 86 318 71 510 1 925 972 – – 88 243 72 482
 Intragroup loans – 173 109 183 196 – (183 196) (173 109) – –
 Loans receivable 42 222 58 070 3 500 – – – 45 722 58 070
Segment current assets 2 048 643 1 334 722 1 315 939 1 106 015 (545 291) (108 404) 2 819 291 2 332 333
 Inventories 1 051 826 1 017 984 376 512 358 506 (6 842) (5 601) 1 421 496 1 370 889
 Trade and other receivables 150 428 163 810 905 967 746 890 (147 997) (102 803) 908 398 807 897
 Intragroup loans 390 452 – – – (390 452) – – –
 Loans receivable 11 342 8 064 – – – – 11 342 8 064
 Cash and cash equivalents 376 294 100 520 33 460 619 – – 409 754 101 139
 Derivative financial assets 68 301 44 344 – – – – 68 301 44 344
                  
Total segment assets 3 159 014 2 551 476 1 750 679 1 315 359 (728 487) (281 513) 4 181 206 3 585 322
SEGMENT EQUITY AND LIABILITIES                
Segment equity 1 126 693 860 960 5 412 286 245 (6 842) (5 601) 1 125 263 1 141 604
 Share capital 3 029 3 242 – – – – 3 029 3 242
 Share premium – 121 461 – – – – – 121 461
 Share option reserve 24 549 23 832 – – – – 24 549 23 832
 Treasury shares (488 258) (463 622) – – – – (488 258) (463 622)
 Other reserves (160) 39 (5 073) – – – (5 233) 39
 Distributable reserve 1 587 533 1 176 008 8 200 286 099 (6 842) (5 601) 1 588 891 1 456 506
 Equity attributable to equity holders of the parent 1 126 693 860 960 3 127 286 099 (6 842) (5 601) 1 122 978 1 141 458
 Minority interest – – 2 285 146 – – 2 285 146
Segment non-current liabilities 481 045 352 444 19 904 191 300 (183 196) (173 109) 317 753 370 635
 Interest-bearing borrowings 31 764 59 609 5 664 1 851 – – 37 428 61 460
 Intragroup loans 183 196 – – 173 109 (183 196) (173 109) – –
 Employee benefits 82 970 117 724 8 164 13 142 – – 91 134 130 866
 Deferred tax liabilities 77 275 77 018 6 076 3 198 – – 83 351 80 216
 Operating lease liability 105 840 98 093 – – – – 105 840 98 093
Segment current liabilities 1 551 276 1 338 072 1 725 363 837 814 (538 449) (102 803) 2 738 190 2 073 083
 Trade and other payables 1 251 856 1 112 178 1 304 258 818 623 (147 997) (102 803) 2 408 117 1 827 998
 Intragroup loans – – 390 452 – (390 452) – – –
 Employee benefits 219 654 96 273 20 942 7 989 – – 240 596 104 262
 Provisions 6 254 7 630 – – – – 6 254 7 630
 Interest-bearing borrowings 27 636 51 276 2 241 2 904 – – 29 877 54 180
 Income tax payable 25 846 67 658 7 470 8 298 – – 33 316 75 956
 Derivative financial liabilities 20 030 3 057 – – – – 20 030 3 057
                  
Total segment equity and liabilities 3 159 014 2 551 476 1 750 679 1 315 359 (728 487) (281 513) 4 181 206 3 585 322
* Includes Direct Medicines as at 31 August 2009