massmart reviewed results presentation

MassmartReviewed Results Presentationfor the 52 weeks ended 27 December 2020

08 March 2021

Presenting today

2

Chief Executive Officer Chief Financial Officer

Mohammed Abdool-Samad

Mitchell Slape

VP: Group eCommerce

Sylvester John

01 Executive summary

02 Financials and Covid-19 impact

03 Strategy and turnaround plan update

04 Outlook

05 Additional information

Agenda

3

Executive summary

4

Resilience in a

challenging

environment

• R6.1bn sales impact due

to Covid-19 restrictions

• Adapted to changing

customer behavior

• Recovered and

accelerated performance

through H2

Delivered enhanced

gross margins

• Up 147bps in 2020:

– Inter-group collaboration

– Every day low price

• Maintained price

positioning

Excellent

expense control

• Total expenses down

0.3% with comparable

store expenses down

1.3% in 2020

• Poised to sustain leverage

going forward

Cash flow/

debt management

• Improved free cash flow by

R560 million

• Stabilised the balance

sheet

Strategy

• Strong turnaround

execution

• Focus on Growth

1 2 3 4 5

Financials and Covid-19 impactMohammed Abdool-Samad, Group CFO

X

Financial summary – reported

6

Strong margin and expense momentum despite trading environment

SALES

2019: R93.7 billion

7.7%

52-week basis – including Covid-19 impact

R86.5 billion

GROSS PROFIT MARGIN

2019: 18.9%

147bps

20.4%

HEADLINE LOSS REDUCTION

SG&A REDUCTION

2019: R16.8 billion

0.3%

R16.7 billion

2019: (R1.2 billion)*

19.7%

(R0.9 billion)Includes IFRS 16

*Restated

TRADING PROFIT BEFORE

INTEREST AND TAX

5.5%

R1,172.7 million

(excl. reorganisation,

restructure and impairment)

2019: R1,111.2 million

A tale of two halves

Including IFRS 16

• Sales impacted by trading

restrictions in H1

• Resilience in challenging

sales environment

• Focus on EDLP continues

yielding improved margin

• Shift from yard to retail sales

in Builders enhanced margin

• Normal liquor trading only

33% of the year

• Expenses sustainably

curtailed throughout the year

Stronger H2 performance relative to H1 and H2 (2019)

Rm H1 2020 H2 2020 H2 2019 H2 vs H2 VAR

Sales 39,599 46,886 49,828 (6%)

Margin 7,972 9,656 9,284 4%

Net expenses (8,346) (8,386) (8,595) (2%)

Trading profit

before interest &

taxation (267) 1,439 792 82%

Free cash flow (3,745) 6,034 5,708 6%

Margin and trading profit impacted by trading restrictions

8Includes IFRS 16

Restrictions drove lost sales of R6.1 billion

Rm

Estimated lost margin @19.5% 1,188

Increased direct costs 132

Relief/benefits received (288)

Increased indirect costs (31)

Estimated impact on trading profit* 1,001

*Impact of trading profit estimated based on lost

sales at the margin achieved in the same period in

2019, net of costs incurred and benefits received.

Other• Additional costs incurred

relating to operating

regulations

• Rent relief of R102 million

• Temporary employee

cost relief of R186 million

Liquor trading • 40% of the year -

Complete ban of trade

• 27% of the year -

Restricted trade

• 33% of the year -

Normal trading hours

and conditions

Foot traffic• Super and Major Regional

malls most impacted

declining by 17% and 14%

respectively

Estimated

liquor

lost sales

R3.4bn

Sales by geography and categorySales performance across the business was impacted by the trading restrictions

9

GROUP SALES

R86.5bni7.7%

SA SALES REST OF AFRICA SALES

i 7.9%90.8%

i 5.4%9.2%

DURABLES

i7.2%43%*

LIQUOR

i22.3%15%*

DURABLES

i4.6%39%*

LIQUOR

i23.1%13%*

DURABLES

i7.0%43%*

LIQUOR

i22.4%15%*

7.5% decline

COMP SALES

FOOD

i3.1%42%*

FOOD

i3.3%42%*

FOOD

i1.5%48%*

*FY19 contribution to total sales to account for normal trading conditions

7.6% decline

COMP SALES

6.6% decline

COMP SALES

6.6% decline

CONSTANT

CURRENCY

Excellent expense control

10

Total Group expenses declined by 0.3%, comparable expenses at 1.3%

Employment Costs

• Attrition and

recruitment freezes

• TERS relief during

lockdown (R186m):

associates paid on

time and in full

• Delayed

management salary

increase

Depreciation

and amortisation

• Closure of DionWired

stores

• Reduced capital

investments - cash

preservation and

construction industry

impact

Occupancy Costs

• Landlord support:

rental relief received

during lockdown

(R102m)

• Reduced utility costs:

improved monitoring

and energy efficiencies

• Rentals renegotiated –

Full impact in 2021

Other Operating Costs

• Travel

• Conferences and

training

• Reduced marketing

spend

0.9% decline

9.7% decline

One-off items

• IT Support costs

• Increased Covid-

19 related costs:

deep cleaning

and sanitising

costs (R132m)

4.1% decline

1.2% decline i i i i

Includes IFRS 16

Performance – Massmart Retail

11

Strengthened collaboration across the banners

R16.7bnSALES

i15.5%

27.4%GP

h230bpsHY: 25.5%

(R532.5m)PBIT*

i36.2%2019: (R391.0m)

• Covid related lost sales

~R0.9bn

• Reduced footfall –

Shopping malls

• Grew online sales by

77.5%

• Margin improvement:

Shift to EDLP, better

management of

promotional mix

• Strong expense control

(-3.8%)

• Successful rental

renegotiations

• Covid related lost sales

~R1.0bn (closed month of

April)

• Grew online sales by 111.0%

• Robust margins: increased

retail mix with promotional

discipline; construction sector

still under pressure due to

restrictions

• Strong vendor partnerships:

vendors paid on time and in

full; deliveries prioritised by

suppliers

• Good expense controls

(expenses up 0.2%)

R13.9bnSALES

i2.1%

35.9%GP

h220bpsHY: 33.3%

R1 032.6mPBIT*

h21.7%2019: R848.5m

• Covid related lost

sales ~R0.8bn

• Reduced footfall –

taxi ranks

• Store closures &

liquor ban/trading

hours. Liquor

participation ~10%

• Margin

improvement:

category mix and

trading disciplines

• Good expense

control (expenses up

0.9%)

R8.3bnSALES

i13.5%

19.1%GP

h190bpsHY: 17.3%

(R363.5m)PBIT*

i17.2%2019: (R310.2m)

Includes IFRS 16 * Includes HO allocations

Performance – Massmart Wholesale

12

Significantly improved Cash & Carry performance highlights power of the merger

R27.2bnSALES

i7.3%

18.2%GP

h40bpsHY: 18.2%

R864.1mPBIT*

i16.8%

2019: R1 039.1m

R20.4bnSALES

i1.8%

11.7%GP

h120bpsHY: 10.9%

R172.0mPBIT*

h328.7%

2019: (R75.2m)

• Covid related lost sales ~R3.4bn

• Only 17 weeks (33%) of liquor trading

during the year without any restrictions

(Liquor participation ~25% under normal

trading conditions)

• Enhanced margin with improved price gap

• Single Wholesale group synergies: serving

customers, reduced transport costs and

better deals with vendors

• Makro grew online sales by 40.2%;

leveraged partnership with OneCart

• Strong expense controls (-1.9% for Makro

and -0.1% for Cash & Carry)

Includes IFRS 16 * Includes HO allocations

Accelerating our eCommerce businessMomentum continued throughout the year

Online sales

1.8% sales participation

(2019: 1.1%)

h58.6%

Online traffic

Click-and-collect

h65.2%

h69.5%

Working capital

• Stock levels flat compared

to prior year

• Substantial progress in

clearing aged stock

• Strong vendor relationships

resulted in high in-stocks

• Suppliers paid on time and

in full during lockdown:

enhanced relationships

• Renegotiated extended

payment terms with

suppliers on the back of

partnership approach

Inventory

days

63

• Hospitality and construction

industry debtors under

pressure: increased

provisions

• Collection initiatives improved

ageing of debtor balances

Creditor

days

73

Debtor

days

8

2020

2019

R11.9bn

R11.9bn

R2.2bn

R2.3bn

R15.8bn

R16.1bn

2020

2019

2020

2019

14

days

h6

days

h6

days

0

Working capital tightly managed to ensure high in-stocks in the midst of Covid induced trading disruptions

Impairment summary

15

Impairments Rationale

• Covid-19 impact on

outlook not supporting

Goodwill

• Group's strategic shift

away from its fresh and

frozen offerings

•Consolidation of the

Group's various head

office locations

Once-off impairment adjustments

Rm Dec 2020

Cambridge Goodwill 348.4

Fruitspot Goodwill 175.0

Store Assets 170.2

Manufacturing Assets 46.4

Head Office Consolidation 43.9

Other Assets 14.8

798.7

Cash flow and debt management

16

Rm Dec 2020 Dec 2019 MOVEMENT

EBITDA, before non-trading items 4,223.8 4,183.4 40.4

Net debt* 2,574.8 2,422.2 152.6

Total equity 2,951.5 4,800.8 (1,849.3)

Gearing ratio* 0.87 0.50 0.37

Free cash flow 2,288.8 1,728.7 560.1

Foreign exchange loss (381.1) (143.0) (238.1)

Cash interest to financiers* 556.0 659.0 (103.0)

Cash flow initiatives

• Focused expense management

and disciplined capex deferrals

• Paid suppliers on time and in full:

Enhanced relationships ensuring

no disruption in supply

• Continued to pay salaries and

benefits on time and in full

• Rental relief & TERS benefit

• Renegotiation of vendor payment

terms to preserve cash while

taking care of most vulnerable

smaller suppliers

• Deferral of management salary

increases

* Excludes lease liabilities

Strong cash flow underpinned by healthy margins and disciplined expense management

Strengthened balance sheet position

17

• Secured R4 billion

Walmart loan

• Support from local

and international

banks

• All suppliers and

associates paid on

time and in full

• Despite sales loss as

a result of Covid-19,

Net debt increased by

only R152.6 million

WEEK 10 WEEK 13 WEEK 18 WEEK 22 WEEK 28 WEEK 34 WEEK 39 WEEK 41 WEEK 51 DEC 28 >

First

confirmed

case in SA

Level 5 Lockdown,

Non-essentials, General

Merch., Home Improvement,

Liquor & tobacco sales

prohibited ~56% categories

Level 4 Lockdown;

Builders reopens

Level 3 Lockdown,

Liquor allowed,

Tobacco sales

prohibited

Liquor Ban

reintroduced

Level 2 Lockdown,

Liquor sales

allowed with

restricted trading

hours

Level 1 Lockdown,

Liquor sales

allowed with

restricted trading

hours

Liquor sales

allowed during all

licenced hours

Liquor sales

allowed with

restricted trading

hours

Liquor ban

reintroduced

Key events

-17 000

-16 000

-15 000

-14 000

-13 000

-12 000

-11 000

-10 000

-9 000

-8 000

-7 000

-6 000

-5 000

-4 000

-3 000

-2 000

-1 000

Wk

10

Wk

11

Wk

12

Wk

13

Wk

14

Wk

15

Wk

16

Wk

17

Wk

18

Wk

19

Wk

20

Wk

21

Wk

22

Wk

23

Wk

24

Wk

25

Wk

26

Wk

27

Wk

28

Wk

29

Wk

30

Wk

31

Wk

32

Wk

33

Wk

34

Wk

35

Wk

36

Wk

37

Wk

38

Wk

39

Wk

40

Wk

41

Wk

42

Wk

43

Wk

44

Wk

45

Wk

46

Wk

47

Wk

48

Wk

49

Wk

50

Wk

51

Wk

52

Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Net Debt 2020 Net Debt 2019 Average Annual Net Debt Facilities

Improved liquidity driven by improved cash generation, strong banking relationships and Walmart support

RUSH

BUYING

Capital expenditure

18

Capex responsibly managed to preserve cash flow

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

R 0

R 200

R 400

R 600

R 800

R 1 000

R 1 200

R 1 400

R 1 600

R 1 800

R 2 000

Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020

Ca

pe

x a

s a

% o

f sa

les

R1,775.0m R1,806.7m

R1,606.0m

R1,371.8m

R1,034.3m

2,0% 1,9%

1,8%

1,5%

1,2%

Remodel cycle significantly

disrupted by construction

industry lockdown

Investment to maintain operations Property acquisitionsInvestment to expand operations Business acquired

Key takeaways

19

• Enhanced margins and excellent

cost control

• Improved HEPS performance

• Stabilised the balance sheet and

reduced interest bill

• Foundations in place to accelerate

strategic focus areas, including

driving topline

Strategy and turnaround plan updateMitch, Group CEO

Stabilise

Focus

Invest

1

2

3

Through strong execution

of our turnaround plan

Divest non-core assets to drive

sustainable profitable growth

Accelerated growth in

eCommerce, key categories &

geographies

Our Journey

21

To become the healthiest and strongest retailer in Africa with the best long-term prospects

Group Operating Model

Game Reset

Wholesale Integration

Supply Chain Optimisation

Portfolio Optimisation

Cost Reset

Stabilise the base

22

Turnaround efforts are stabilising the business and driving renewed financial health, as reflected in our performance

Established an efficient

operating model

Customer-centric

organisation with centralised

support functions

Repositioning our

portfolio for growth

Continued portfolio

optimisation

Achieving enhanced

margins

Improved margins through

merchandising discipline

and leveraging of scale

Resetting the

cost base

Revised cost base

through Smart Spend

programme

1

3

4

5

2

6

SG&A DECLINE

i 0.3%

GROSS PROFIT MARGIN

h 147bps

TRADING PROFIT BEFORE

INTEREST AND TAX

h 5.5%

(excl. reorganisation,

restructure and impairment)

FREE CASH FLOW

IMPROVEMENT

h 32.4%

Continued Game revitalisation

23

The Game Reset programme is gaining significant traction across key initiatives

• Achieved overall 230bps GP

margin uplift through

optimizing margin and mix and

extending every day low price

• Accelerated exit of Fresh

(51 stores) and introduction

of Clothing (60 stores), with

clothing showing promising

sales growth and strong

margins (complete by Q3)

• Successes include market-

leading growth in target

categories (example

Large/Premium TVs)

• Rolled out Happy to Help

and launching Centres of

Excellence stores driving

improved customer

experience

• Launched 3 Game

Reimagined store prototypes

• Launched 40 stores on the

UberEats and 12 stores on

the OneCart on-demand

platforms

• Excellent expense control,

achieving negative SG&A

growth of -3.8% in 2020

• Savings driven from multiple

expense lines including

employment costs (R102m)

and rent (R44m)

Strengthened margin

performance

Elevated customer

experience

Improved cost

management

Looking forward

24

In FY21, we will harvest maximum value from our Turnaround initiatives


• Complete final implementation in

Q1 – 2 business units supported

by Centres of Excellence

• Finalise Finance support

transition to Genpact in Q1


• Complete divestiture of non-

core/non-strategic store assets

Game Reset

• Roll out Game store re-imagined

• Accelerate and complete roll-out

of successful apparel

introduction

• Drive sales performance with

sustained margin discipline


• Unify IT systems and enhance

our eCommerce offering

• Pilot standalone “Powered by

Makro” liquor store format


• Go live with 2 state of the art DCs

• Achieve a “one best way”

approach, leveraging Walmart

supply chain expertise

• Centralise volume through our

DC network to >40%

Cost Reset

• Contain expense growth below

sales growth through execution

against our R1.9 billion expense

reduction ambition

1 2 3

4 5 6

Stabilise

Focus

Invest

1

2

3

Our journey beyond turnaround

25

We are now shifting to refining our portfolio focus further and growing the business

Through strong execution

of our turnaround plan

Divest non-core assets to drive

sustainable profitable growth

Accelerated growth in

eCommerce, key categories &

geographies

Our future strategic positioning

26

Massmart will become a stronger business that leverages core strengths

General

Merchandise &

DIY Market Leader

Wholesale Food

& Liquor

Powerhouse

Best-in-class eCommerce“Powered by Walmart”

Focused approach

27

Two immediate decisions will further drive core market focus

Not core to our business;

no clear path to market leadership,

therefore…

Mixed performance and

management complexity,

therefore…

REST OF

AFRICA

STANDALONE

FOOD RETAIL

…appointed Barclays to facilitate

the sale of our Massfresh and

Cambridge/Rhino Food assets

…extend detailed portfolio

review to include stores

outside SADC

2

1

Our investment areas

28

We will invest in areas of market strength to accelerate our growth

Grow our DIY Footprint

• Grow Builders’ store footprint

• Maximise category offering

across DIY and Trade

Unify and differentiate

our Wholesale business

• Leverage integration synergies

and wholesale scale

• Elevated customer proposition

Revitalise General

Merchandise Leadership

• Drive Game Reset

• Innovate/drive inter-company

leverage in category mix

across Makro and Game

Accelerate eCommerce

• Drive growth with unique offer across B2B and B2C

customer channels

• Leverage our extensive store and warehouse

network for pick-up and delivery efficiency

• Expand our online range to better serve our customers

• Pursue strategic partnerships to build capability, attract

new customers and enhance value proposition

Accelerating eCommerce

29

We have commenced the foundational work required to propel our eCommerce presence

A significant eCommerce presence…

Website Enhancements(Makro, Builders)

Store Fulfillment(picking system, pickup strategy,

omnichannel execution)

Warehouse Ship-to-Home(Cape Town and Johannesburg)

Order Management System

Strengthening Foundational Competencies

Enhancing Last Mile Delivery Capability

Driving Mobile Acceleration

Online GMV

2020 GMV across combined Massmart banners

R1.1bn

Online traffic

Customer growth

#2Share of retail website traffic in South Africa

h72.9%2020 unique customer growth across Massmart banners

Omnichannel valueTotal sales from Omnichannel customers vs. online only

2.65x1.42x average sales of Omni customer vs. in-store only

Fully optimise WumDrop Launched logistics

platform powered

by FarEye

Expanded

collaboration

with OneCart

Launching of Vodapay Super App

…which is now poised to rapidly grow

Driving mobile acceleration

30

Massmart and Vodacom partner to accelerate the commerce flywheel of the Vodapay Super App

Vodacom partners

with China's Alipay

to create 'super app'

in South Africa…

…shop online, pay

bills, send money to

family, stream music,

follow news (20/7/20)

What is a Super App? Massmart as Retail Cornerstone in Super App

“Many apps within an umbrella

app. It’s an operating system that

unbundles the tyranny of apps.

It’s the portal to the Internet for

a mobile-first generation [and

designed to maximize time spent]”

–Sidu Ponnappa, Gojek

Benefits:

• Convenient – single sign-on,

payment binding, key

features

• Intuitive – organic product

design and evolution

• Networked – friends and

family connected

Launchpad for Massmart’s Mobile Strategy

• Customer aggregation prospect

(44m starting base; 24m smart devices)

• Zero-rated data costs to all users

• Brand reach and conversion of younger

incremental customers

• Incremental sales channel for new product

campaign (digital) events for Massmart brands

Key takeaways

31

• We are stabilising the business through

our turnaround programme

• We have made two key decisions that will

enable a focused approach to our

business:

– Exit Cambridge and Massfresh

– Review of ROA stores

• We are investing to accelerate growth:

– General Merchandise and DIY

– Wholesale

– eCommerce

OutlookMitch, Group CEO

Outlook

33

• The turnaround plan is delivering

• Currently able to trade all categories,

future trading restrictions uncertain

• Generating Free Cash Flow a priority to

further strengthen the balance sheet

• Focusing on the core and drive growth

• Influenced by evolving macroeconomic

green shoots

Any reference to future financial performance included in this document has not been reviewed or reported on by the Group’s external

auditors. The auditor’s report does not necessarily report on all 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.

Additional informationCondensed Consolidated Income

Statement

Tax rate reconciliation

Cash flow statement

Capex per category

Store portfolio

Number of shares

Turnaround progress detail

Extract from Reviewed

Consolidated Results for the

period ended 27 December 2020

36

Condensed

consolidated

income

statement

Tax rate reconciliation

37

% Tax rate reconciliation

DEC 2020

(REVIEWED)

DEC 2019

(AUDITED)

Standard tax rate 28.0 28.0

Disallowed expenses (14.1) (19.9)

Assessed loss not utilised (10.1) (27.6)

Other 2.7 0.6

Group tax rate 6.5 (18.9)

• Tax expense on profit

making entities

• Limited recognition of

certain deferred tax

assets

• Non-deductible goodwill

impairment

Includes IFRS 16

Cash flow statement

38

RM

DEC 2020

(REVIEWED)

DEC 2019

(AUDITED)

Operating cash before working capital movements 4,559.5 4,296.8

Working capital movements (187.9) (82.0)

Cash generated in operations 4,371.6 4,214.8

Net interest and tax paid (1,812.9) (1,905.8)

Net investment to maintain operations (269.9) (580.3)

Free cash flow 2,288.8 1,728.7

Dividends paid (39.9) (162.4)

Dividends received - 20.0

Investment in subsidiaries (0.2) -

Investment to expand operations and other net investing activities (735.3) (731.0)

Cash flow before financing activities 1,513.4 855.3

Capex per categoryTotal capex 1.2% of total sales (2019: 1.5%)

39

RM

DEC 2020

(REVIEWED)

DEC 2019

(AUDITED)

PERCENTAGE

CHANGE

Land and buildings/leasehold improvements 356.1 177.2 101.0

Vehicles 0.2 0.7 (71.4)

Fixtures, fittings, plant and equipment 141.9 266.8 (46.8)

IT investment 266.0 346.8 (23,3)

Investment to expand operations 764.2 791.5 (3.4)

Land and buildings/leasehold improvements 64.9 39.3 65.1

Vehicles 2.1 45.4 (95.4)

Fixtures, fittings, plant and equipment 144.5 153.9 (6.1)

IT investment 58.4 341.7 (82.9)

Investment to maintain operations 269.9 580.3 (53.5)

Total 1,034.1 1,371.8 (24.6)

Capital investment

Land and buildings/leasehold improvements

Vehicles

Fixtures, fittings, plant and equipment

IT investment

31%

41%

0%28%

Store portfolio

40

Total

-20Net closed

Game DionWired BuildersCambridge

and RhinoMakro Cash & Carry

149 0 120 63 22 69Down from 150

in Dec 2019

Down from 23

in Dec 2019

Up from 118

in Dec 2019

Up from 61 in

Dec 2019

22 in

Dec 2019

69 in

Dec 2019

-23 +2in South Africa +2 Builders Warehouse

+1 in South Africa

+1 in Kenya

-1in South Africa

+2in South Africa

+1 Builders Express

in South Africa

-1 Builders Superstore

in South Africa

Down from 443

in Dec 2019

Total

423

Number of shares

41

‘000

At Dec 2019 219,138.8

Shares issued –

At Dec 2020 219,138.8

Weighted-average at Dec 2020 (net of treasury shares) 216,580.3

Diluted weighted average at Dec 2020 222,666.0

• Delivered SG&A savings, on course to achieve our R1,9bn three-year target

• Initiated data-driven supplier negotiations

• Customer-focused business units supported by centres of excellence

• Outsourced IT support and financial transaction processing

• Closed Dion Wired and sold 8 Masscash stores

• Announced the divestiture of a further 14 non-core Cash & Carry Stores

• Enhanced merchandising disciplines yielding greatly improved margins

• Instilled cost discipline and contained expense growth

• Introduced apparel in 60 stores, and exited Fresh & Frozen in 51 stores

• Created a single team leveraging scale to reduce costs and enhance customers value

• Integrated Shield into Massmart Wholesale

• Established an integrated Group Supply Chain, while increasing throughput and

reducing unfunded network participation

• Initiated the DC consolidation process

Stabilise

42

Our Turnaround execution is stabilising the business


Game Reset




Cost Reset

Progress Highlights Value

1

3

4

5

2

6 Unlocked R600m in SG&A savings

Enabling value delivery through a more

efficient organisation & centralised teams

Delivering R160m in annualised PBIT

Achieved a 230bps GP margin uplift

Restored everyday CnC margins

Delivered 31bps of the 1% COGS

reduction opportunity

Turnaround milestones We have seen significant momentum in FY20 and achieved key turnaround milestones

• Established customer-focused two business units

• Reorganised the leadership team

• Established IT and Supply COEs

• Initiated Dion Wired closure and sale of 11

Masscash stores

• Exiting Fresh and re-introducing clothing in Game

• Outsourced IT applications support

and development to Walmart IDC

• Went live with S/4 Hana in Game

• Validated R1,9bn in SG&A savings

• Implemented data driven supplier

negotiations, targeting 7 categories

accounting for ~R22bn in direct spend

• Finalised centralisation of support

functions

• Appointed Chief Supply Chain Officer

(Walmart expert)

• Initiated Game store S189 rationalisation

• Launched Game Store of the Future

prototype

• Appointed Head of eCommerce

(Walmart expert)

• Consolidated Retail teams into single head

office location

• Initiated closure of two DCs, aligned to

shift from 15 to 7 DC model

• Conducted feasibility study to outsource

financial transaction processing activities

• Unlocked R600m in SG&A savings

43

Q1 Q2 Q3 Q4

massmart reviewed results presentation

Documents