Introducing the
integrated report

The Covid-19 pandemic continued to impact on the economy and the lives of many South Africans as the second and third waves of infection proved more severe than the initial outbreak of the pandemic in March 2020.

While managing the impact of Covid-19 on our business and continuing to ensure the health and safety of our stakeholders, we strived to meet our responsibility to protect as many South Africans as possible by participating on a wide scale in the national Covid-19 vaccination programme.

The impact of the pandemic on the group’s performance has been compounded by two further issues. Early in the financial year trading was disrupted for several days due to protest action across the Clicks store network in response to a supplier haircare advertisement featured on the Clicks digital platform. In July 2021 the unprecedented wave of civil unrest which swept parts of KwaZulu-Natal and Gauteng resulted in extensive violence, looting and damage to property, with devastating social and economic consequences (refer to the chief executive’s report).

Against this background, our 2021 integrated report aims to demonstrate in a balanced way how the group has continued to create value for shareholders during these uncertain times while meeting our responsibilities towards our other stakeholders.

The integrated report is targeted at our shareholders, who are our primary providers of capital, and the broader investment community, while we also acknowledge the role of our customers, staff, suppliers, industry regulators and funding institutions in the process of value creation, preservation and erosion.

Reporting scope and boundary

The report covers material information relating to the business model, strategy, material issues and related risks and opportunities, financial performance, the continued impact of Covid-19, corporate governance and directors’ remuneration for the period 1 September 2020 to 31 August 2021.

Forward-looking information focuses on the strategic objectives, operating plans and prospects for the 2022 financial year as well as the group’s medium-term financial targets. The integrated report is supplemented by the sustainability report and the annual financial statements which are also available on the website.

The financial reporting boundary covers the group’s main operating businesses Clicks and UPD and focuses on the operations in South Africa where the majority of revenue is generated.


The report includes information which we believe is material to investors’ understanding of the group’s ability to create value. The materiality test applied by the board is based on internal and external matters, both positive and negative, that substantively affect the group’s ability to deliver its strategy and which could have a material impact of 5% or more on the group’s profit before taxation.

Reporting and governance compliance

The report has been prepared in accordance with the Integrated Reporting Framework of the Value Reporting Foundation. All financial reporting complies with International Financial Reporting Standards.

The directors confirm that the group has in all material respects applied the principles of the King IV Report on Corporate Governance (King lV) throughout the 2021 financial year. The application of King IV is covered in the corporate governance and King lV report 2021 which is available on our website.

Integrated reporting process

Confirming the group’s commitment to integrated reporting, the annual process of preparing the integrated report is the responsibility of a working group led by the chief executive officer and comprising the chief financial officer, group corporate affairs director, senior members of the finance, marketing and sustainability teams, and the external investor relations consultants.

The integrated report working group aims to enhance the reporting and disclosure each year. The process commences with an evaluation of the previous year’s integrated report to identify opportunities to enhance disclosure and continually align with best reporting practices. The content is prepared based on interviews and submissions from executive directors, business unit heads, the company secretary and divisional executives. Draft reports are initially reviewed by the CFO and then the CEO, with specific reports being reviewed and approved by the board chairman and the respective board committee chairmen.

The draft of the integrated report is provided to all board members for review and their feedback, advice and suggestions are then incorporated into the final report. The chairman of the audit committee is responsible for the final approval of the report on behalf of the board, whereafter the integrated report is released to shareholders.

Independent assurance

The integrated report has been reviewed by the board but has not been independently assured. The annual financial statements have been assured by the group’s independent auditor, Ernst & Young Inc.

The sustainability information in the report has been approved by the board’s social and ethics committee. Accredited service providers have determined selected non-financial performance metrics, including market share statistics and the group’s broad-based black economic empowerment (BBBEE) rating. Management has verified the processes for measuring all other non-financial information.

Corporate governance statement

Sound corporate governance practices and an ethical culture form the foundation for sustainable value creation for shareholders and other stakeholders.

Good governance supports value creation through improved reporting to shareholders, greater transparency and disclosure, improved quality of management reporting to the board and enhanced accountability to shareholders.

The group’s approach to governance extends beyond regulatory compliance, with open and balanced disclosure being core to our governance framework. Transparent and credible financial reporting forms an essential element of our governance framework.

Management welcomes the opportunity to engage with shareholders on the group’s governance philosophy, processes and practices. We believe our governance practices are robust and this is confirmed in leading independent assessments of our governance standards.

Board approval

The board is responsible for ensuring the integrity of the integrated report. The directors have collectively assessed the content and confirm the report addresses all material issues, the integrated performance and the group’s strategy, as well as the short, medium and long-term prospects.

The audit and risk committee has oversight responsibility for integrated reporting and recommended the report for approval by the directors. The 2021 integrated report was unanimously approved by the board on 11 November 2021.

David Nurek

David Nurek

Independent non-executive chairman

Vikesh Ramsunder

Vikesh Ramsunder

Chief executive officer

Vikesh Ramsunder

Michael Fleming

Chief financial officer