Dedicated to Value

Massmart Reviewed Results for the six months to December 2012

Presentation to Investors, Analysts and Media February 2013

Agenda

• Highlights • Operations • Financials • Environment • Strategy • Prospects ADDENDUM – Additional Financial Data

Highlights

Performance Highlights

Dec 12

Comparable sales growth strong +7.3% High comp. volumes growth of 3.6%

Net new trading space (from Dec 2011)

+7.0% New & acquired stores. 8.7% including DCs

Total sales growth +14.7%

Gross profit up by +18.4% Higher GP% in Massbuild & Makro. Higher contribution from Game Africa

Comp. expenses increase +11.0% Higher occupancy costs, including services

Operating Profit increase (excl Forex & Integration)

+6.1% Higher net operating margins in Massbuild & Masscash

Headline Earnings increase (excl Forex & Integration)

+5.8% Slightly higher tax rate

Operating cashflow (before w/capital)

+4.1% Approximates operating profit increase

Net new trading space (from June 2012)

+4.7% 17 new & acquired stores

Contribution and Performance by Category

Divisional Performance

Massdiscounters

> Game SA. Disappointing performance. Low comp sales (1%): - Middle-income consumer stretched. Credit card sales participation up

from 15% to 24% - Dry groceries launched - Profit below prior year

> Game Africa. Great performance (comps 9%, own currency comps 11%) - Positive economic environment. Malawi concerning - Very positive response to Foodco - Profit growth ahead of sales growth

> Dion Wired. Great performance (total sales up 28%): - National footprint: 19 stores. With all top-end suppliers’ products - Profit growth well ahead of sales growth

2012 Total Comps Inflation

Sales R8.4bn 7.7% 2.6% 0.8%

Massdiscounters continued

2012 Change

Sales R8.4bn 7.7%

PBT R450m -14.8% PBT margin 5.3%

> Foodco: five converted / opened. Now 27 stores, five in Africa. Performing at or above expectations

> Third & final RDC opened in Durban July ’12: - National footprint. Focus on optimising the investment - New lease & depreciation charges affect short-term performance

> Product inflation for first time in five years > Trading space up 5.8% (total space 6.6%). New African stores in

2013/14 in Zambia, Angola & Kenya > Jan Potgieter CEO resigned early 2013. Robin Wright acting CEO

Masswarehouse

> Exceptional trading performance:

- Opened two new stores: Cape Gate and Bloemfontein

- Very good comp sales growth in Food & Liquor

> Five new stores since Sept ‘11. All performing well

> Food Retail / Fresh offering now in 13 stores

> Fruitspot sales up 19.2%. Will play wider Group role

> Launched RCS consumer credit in May ’12. Performing strongly

2012 Total Comps Inflation

Sales R9.6bn 23.5% 8.6% 3.4%

Masswarehouse continued

2012 Change

Sales R9.6bn 23.5%

PBT R535m 12.7% PBT margin 5.6%

> Credit card sales participation up from 33% to 38%

> Comparable stores’ profit growth equal to sales growth

> Store opening costs R28m (LY 35m)

> Trading space increased by 17% (total space 26%)

> Opening two stores this year: Amanzimtoti, in Durban (relocation), and Alberton, in Johannesburg

> Doug Jones appointed Masswarehouse MD in Sept ‘12

Massbuild

> Great performance:

- Strong sales in Builders Warehouse & Express (comps > 10%)

- Profit growth in Warehouse & Express well ahead of sales growth

- Trade Depot sales growth low – tough SA housing market

> Builders Warehouse Botswana performing well in its 2nd year

> Private Label sales increased 38% and are 14% of total sales

> Creating common SAP IT platform for Warehouse, Express & Trade Depot

> Trading space increased by 0.5% (total space 0.5%)

2012 Total Comps Inflation

Sales R4.7bn 10.0% 9.7% 2.7%

Massbuild continued

2012 Change

Sales R4.7bn 10.0%

PBT R293m 23.6% PBT margin 6.3%

> Very strong brand. Gaining market share

> Single trade credit platform for contractors

> RDC in Midrand, Johannesburg, to open April 2013

> Significant initial lease charge (R25m)

> Four new Builders Warehouse stores to open in SA in 2013

> And five Builders Express stores

> New Builders Warehouse stores in 2013/14 in Mozambique (two), Botswana (one) and Zambia (one)

Masscash

> Intense market competition as independents acquired Metro sites

> We acquired three Metro sites. Trading well

> Marked Q4 sales slowdown. Impact of labour unrest?

> Wholesale comp sales growth 7% and Retail comp sales 17%

> Profitability recovered strongly in Wholesale

> Prior period investments in structures and capacity making positive impact in Masscash Retail – improving profitability

> Trading space increased 3.3% (total space 13%)

2012 Total Comps Inflation

Sales R13.4bn 15.3% 8.6% 6.4%

Masscash continued

2012 Change

Sales R13.4bn 15.3%

PBT R221m 19.4% PBT margin 1.6%

> Rhino Cash & Carry: now 18 stores and performing well

> Donated 50 tons rice & maize-meal to flood victims in Mozambique

> 11 new Cambridge stores in 2013

> New Wholesale store opening in Xai Xai, Mozambique

> Kevin Vyvyan-Day appointed CEO of Masscash Retail in September ‘12

Store Portfolio

> Massdiscounters: opened seven Game stores and one Dion Wired

> Makro: opened Bloemfontein and Cape Gate

> Massbuild: Opened one Builders Express

> Masscash stores: Retail – two opened & one acquired, while one was closed. Wholesale – three acquired & five closed

Massdiscounters Makro Massbuild Masscash Total

June 12 125 16 84 123 348 Acquired - - - 4 4 Closed - - - -6 -6 Openings 8 2 1 2 13 December 12 133 18 85 123 359

December 2012 Financial Performance

Income Statement:

• Strong total & comparable sales growth in all Divisions

- other than Massdiscounters

• Expense pressure due to investing in new stores & RDC’s

• Comparable expenses +11.0%

• Transaction related costs R205 million

• Strong results – Makro & Massbuild

- Poor result – Massdiscounters

• Underlying operating profit growth of 6.1%

Brief Overview of FY12

Balance Sheet:

• Inventory days well controlled

• Supplier funding levels down slightly due to mix and cut off

• Significant capital expenditure - increase in stores & RDC

• High space growth:

2 - new Makro stores,

8 - Massdiscounters stores,

1 - Massbuild store

6 - new Masscash stores &

KZN Regional Distribution Centre

Brief Overview of FY12

Africa local currency sales growth of 9.0% Rand growth 9.5%

Real comparable sales growth - in all Divisions

Sales

SA Sales 92.7%

Non-SA

Sales 7.3%

2012 2011 Total % Chg

Comp % Inflation %

(Rm’s) 2012 2011 Total% Chg Comp % Inflation %

Massdiscounters 8 422.1 7 819.2 7.7 2.6 0.8

Masswarehouse 9 630.2 7 799.9 23.5 8.6 3.4

Massbuild 4 663.1 4 240.1 10.0 9.7 2.7

Masscash 13 407.2 11 633.0 15.3 8.6 6.4

Total 36 122.6 31 492.2 14.7 7.3 3.7

• General Merchandise - Slight inflation

• High Food Prices - Some commodity deflation

Sales Inflation

YTD Sales Inflation to December 2012 General Merchandise 0.8%

Home Improvement +2.7%

Food & Liquor +6.8%

Total +3.7%

2012 2011

Gross Profit R6 599m R5 575m

As % of Sales 18.27% 17.70%

• Margins have improved: - Better margins - Massbuild & Makro - Higher Africa sales contribution

Gross Profit

2012 2011

Operating Costs R5 304m R4 304m

As % of Sales 14.68% 13.67%

• Total costs increased by 23.2% • Depreciation & occupancy costs up - 24.3% & 23.9% respectively

• Comparable expenses increased by 11.0%

Operating Costs (excluding forex)

2012 2011

Employment Costs R2 488m R2 137m

As % of Sales 6.89% 6.79%

• Total increase 16.4%

• Comparable increase of 8.1%

• Increase in staff (FTEs) of 7.2%

- Result of new stores, HO skills & RDC

Employment Costs (47% of total costs)

2012 2011

Occupancy Costs R1 226m R989m

As % of Sales 3.39% 3.14%

• Total increase of 23.9%.

• Comparable increase of 16.7%

• 4.7% net new trading space (compared to June ‘12)

• 7.0% net new trading space (compared to December ‘11)

• Lease renewals – lease smoothing

• Rates, services & electricity inflation remains high

Occupancy Costs (23% of total costs)

2012 2011

Depreciation R343m R276m

As % of Sales 0.95% 0.88%

• Increased by 24.3%.

• Significantly higher than sales growth

• Expect high depreciation to continue ahead of sales growth

- New stores, refurbishments & RDCs

Depreciation

2012 2011

Integration costs R205m R42m

• Includes a R140m increase in the Supplier Development Fund - Required by the judgment of the Competition Appeal Court

• Includes all ex-pat costs, & direct charges, travel & accommodation

• Should normalise at R50m per year from 2013

Walmart Transaction & Integration Costs

• 85% currency devaluation in Malawi since January 2012

• Losses offset by Rand weakness compared to African currency basket

Forex Gains & Losses

Rm’s 2012 2011

Massdiscounters (71.4) 68.6

Other (5.3) 13.8

Total (76.7) 82.4

EBITDA & EBITDAR

Rm’s 2012 2011 % Change

Operating profit before forex & Walmart costs

1 407.0

1 325.6 6.1%

Depreciation & amortisation

(342.6) (275.6) -24.3%

Impairment of assets (5.4) (0.3)

EBITDA 1 755.0 1 601.5

9.6%

Occupancy cost -1 225.6

-989.0 23.9%

EBITDAR 2 980.6

2 590.5

15.1%

• Effective tax rate of 32%

• Should decrease due to the proportion of

non-deductible expenditure related to the transaction

• STC impact – 0.1% (PY: 1.9%)

• Normalise at 30%

Tax Charge

2012 2011 Total tax R342m R411m Effective tax rate 32.15% 31.17%

June 2012 June 2011

Rms Days Rms Days

Net Stock (1) 9 692 59.9 8 385 59.0

Trade Creditors (1) 12 601 68.3 12 281 75.9

• Stock increased 15.6% - Stock days up marginally - Massdiscounters over-stocked due to the lower comparable sales in Game South Africa - Makro carrying higher stock - New stores

• Trade Creditors days affected by mix and calendar cut off • Stock remains fully funded by creditors • Supplier funding remains a key focus area

1. Days calculated using historic cost of sales.

Stock & Creditors

• Commercial credit remains closely monitored

• Bad debt experience steady

Debtors

Rms Days Rms Days

Gross Trade Debtors 1 777 7.9 1 702 8.7

Dec-12 Dec-11

• Includes: - New Makro stores - R156.5m - Massdiscounters new stores & conversions - R94.1m - Other investing activities

includes Metro sites acquired by Masscash

Net Capital Expenditure

Rm’s Dec-12 Dec-11 Replacement Capex 333.3 324.3 Investment Capex 402.6 427.9 Total Capex 735.9 752.2 Other investing activities

25.3 -47.7

Total Capital Expenditure 761.2 704.5

• Capex to December 2012 amounted > 2.1% of sales • Capex to December 2013 – higher due to acquisition of Makro

properties & opening a Massbuild RDC

Accelerating Capex

Six month periods

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0

200

400

600

800

1000

1200

1400

1600

1800

2006 2007 2008 2009 2010 2011 2012 Dec-11 Dec-12

Acquisition

Expansion

Maintenance

% of sales (RHS)

Property Acquisition

• Acquired control of 7 Makro Properties

• Effective 25 January 2013

• Cash consideration for control - R575m

• 2013 - income statement neutral

• 2014 – income statement positive with significant cash flow benefits

• Sales from Group owned properties –approximately 20%of Group sales

Cashflow Statement Rm’s 2012 2011 Operating cashflows 1 708 1 644

Working capital movements 1 110 1 939

Cash from Operations 2 818 3 584

Interest & Tax paid -430 -411

Replacement capex -333 -324

Free cashflow 2 055 2 848 Dividends paid -317 -291

Net investment capex, disposals & acquisitions

-428 -380

Cash inflow before Financing 1 310 2 177

2012 2011

Dividend per share (cents) 275 252

• Previous dividend policy x1.7 cover on HEPS - Adjusted for new Dividend Tax Legislation. - New cover x1.55

• Despite lower headline earnings, - Held the dividend per share consistent

• Final cash dividend - 275 cents per share

Dividends

• Massmart aligned with Walmart, - December year-end from December 2012

• Consequences: - Reporting a six-month audited period to December 2012 - AGM in May 2013 - Annual Report for six-months to December 2012 - First Interim Results release to June in June 2013 - Disclosed Financial Years to December 2011 and 2012

Change in Financial Year-end

Environment

Environment Socio Economic

Challenging socio-political and economic environment:

• More jobs shed in agriculture and mining; manufacturing showing signs of improvement

• Consumer income available for retail spend under pressure • Lower income consumers affected more than higher income

consumers • Costs of unsecured credit are increasing • Energy, water and other basic costs continue to rise faster than CPI • Effects of labour unrest filtering through the economy • GDP growth is positive

Environment Competitive Retail

• The trading environment in 2012 remained tough • With rising inflation, the general consumer is still under pressure

• Retailers are relying on market share gains for growth

• New battleground is for servicing the lower income consumer

- there have been winners and losers

• Slow economic growth is also forcing the consumer to consider how they spend their money

Environment Competitive Retail - Massmart

• Increasing food inflation helped the food business

• Moved from deflation to inflation stabilizing general merchandise

• Investment in homes assisting Massbuild

• Wholesale food landscape changing has affected Masscash

• New food retail business growing fast; but at lower profitability

• Africa becoming more competitive

Strategy

Strategy

Our Group Strategy has been to:

• Focus on Core Trading • Complete Acquisition and Integration • Continue Supply Chain Investment • Grow Food Retail • Expand Into Africa • Invest in Leadership, Transformation and Sustainability

Performance Against Transaction Commitments

• Total of 237 retrenched employees have accepted reinstatement; 73 took voluntary packages, 6 have retired or passed away and 187 did not present themselves for reinstatement.

• Investment in new stores and infrastructure has led to the creation of 8 324

Full Time Equivalent (FTE) positions since the transaction; in line with the estimated creation of 15 000 new direct and indirect positions within a five-year period.

• Food, Liquor and FMCG procurement has grown by R7bn against an

estimated increase of cumulative R60bn also within five years, indicating we are on plan.

• The Supplier Development Fund (SDF) has set up its advisory committee and fund management; draft governance documents were presented for feedback, and clearance for Massmart to proceed with the appointment of the External Auditor for the Fund was provided.

Strategic Progress

.

Supply Chain Investment

• R3-4bn investments in systems and DCs

• Currently: • 3 MDD RDCs • 3 Makro Regional

Warehouses • 1 Cambridge DC • 1 Massbuild National DC • Several meat, fruit, and

vegetable supply facilities • Focus on attracting returns

and improving efficiencies

Food Retail

• Completed an initial investment in food retail (estimated R10bn business )

• Currently, a 4 format approach: • Cambridge/Rhino (44) • Foodco (27) • Makro Retail (13) • Saverite (112)

• Massfresh is focused on improving our offerings in meat, fruit, vegetables, deli and bakery

Strategic Progress

. Africa Expansion

• 3 Component Strategy: • City Strategy –

Game/Builders Warehouse • Country Strategy – South,

West and East Africa • SADC Strategy (South

African Development Community) – new stores in Mozambique, Botswana and Zambia

• Long term potential in Africa

Leadership and Transformation

• Level 4 BBBEE • 54 New Graduates • Continued Investment in

Executive Development • Established CEO Women’s

Advisory Council • Access to Walmart Global

Training Programmes

Sustainability Supplier Development Fund

• Fund size up to R240 million to be spent over 5-years

• The first harvest from our direct farming programme has yielded 512 tons of fresh produce or R3.2m worth of sales

• R1 million in wages paid over an 8 month period • Average 100 people employed per month as a result

of programme or average of 2.6 jobs per hectare • Project set to scale to 73 farmers in 2013 with

173ha under production • Our star producer is a retired nurse named Jamela

Mogodi, who planted 7Ha, she managed the highest output per Ha - to be rewarded with an expanded growing programme for the new season

Business Highlights Finding new ways to help people save money so they can live better . . .

Massmart Private Label We are finding more suppliers to get involved in the private label chain; within the divisions, group and Walmart • Driven by quality, relevance and innovation; to earn customer trust • 9% Sales Contribution • 10-15% less expensive than the National Brand • Camp Master and Trojan are the #1 brands in their categories

in SA • Ol’ Roy (Walmart dog food) manufactured in SA (April launch) • Mastercraft handtools offers a lifetime guarantee • Walmart Great Value items – new products coming! • Running national campaigns to seek feedback on our brands

and continuously improve

Business Highlights Finding new ways to help people save money so they can live better . .

Our Digital Journey • Multi-channel retail recognised as a

key opportunity for DionWired • Online shopping launched in

November 2011; went National in June of 2012

• Trend towards use of mobile devices and shopping with EFT payments

• Great learnings for the Group • Sales currently less than a single

store

E-Commerce Developing a

comprehensive e-commerce strategy

Looking at how and when to take our

brands online

How to leverage walmart.com

Led by DionWired online

The DionWired iPhone App • First app offering; 2nd in the country • All DionWired products available to

purchase via the app • Strong focus on usability, making it easier

than ever to shop from your phone • 3D secure authentication included on all

credit card payments for extra security • Free nationwide courier delivery on all

orders • Downloadable in the USA, UK and SA App

and iTunes stores • Currently on IOS; plans to add Android and

Blackberry

Risk & Prospects

Massmart’s 2013 Prospects • For 8 weeks to 17 February 2013, comparable stores sales

growth of 5.7% and total sales growth 11.4%

• For 12 months to Dec13 – anticipate a difficult South African consumer environment

• Sales growth may be under pressure for the remainder of the fiscal year

• Growth in trading profit (excluding forex and transaction costs) may equal sales growth

Risks

• Middle and lower income consumers under pressure

• Labour unrest

- Further job losses

• Further African currency devaluations

Conclusion

Conclusion

• Underlying profit growth of 6.1%; albeit less than sales • Foreign Exchange Translation loss in Malawi • Transaction completed • Integration completed • Initial food retail investment completed • Supply Chain investment all but completed • Cautious progress in Africa • Business focused on operational disciplines and extracting

returns from food retail and supply chain

Thank You & Questions

Additional Financial Data

Reviewed results for 52 weeks Rm 2012

2011

Revenue 66 050.3 57 177.8 Sales 65 839.5 57 066.5 Cost of sales (53 563.0) (46 767.6) Gross profit 12 276.5 10 298.9 Other income 210.8 111.3 Depreciation and amortisation (661.2) (530.4) Impairment of assets (note 3) (21.6) (10.3) Employment costs (4 686.5) (4 066.9) Occupancy costs (2 296.5) (1 826.6) Foreign exchange profit / (loss) (231.6) 89.6 Other operating costs (2 533.0) (1 783.9) Operating profit before Walmart costs 2 056.9 2 281.7 Walmart transaction and related costs (348.9) (450.5) Loss on disposal of Makro Zimbabwe - (38.6) Operating profit 1 708.0 1 792.6 Net finance costs (127.4) (114.6) Profit before taxation 1 580.6 1 678.0 Taxation (549.6) (633.7) Profit for the year 1 031.0 1 044.3

Headline Tax Rate Reconciliation

% December 2012

December 2011

Standard tax rate 28.0 28.0 Disallowed expenses 3.2 7.0 Allowances on lease premiums and improvements

(0.6) (0.1)

Assessed loss not utilised 2.1 (0.5) Prior year 0.9 (4.3) Withholding tax (1.1) (0.4) Non taxable income (0.7) (1.3) STC 0.1 1.9 Other 0.3 (0.9) Group tax rate 32.2 31.2

Headline Earnings Reconciliation

Rm December 2012

December 2011

Attributable earnings 691.8 893.0

Impairment of assets 5.4 0.3

Loss on fixed asset disposals 6.2 2.4

Fair value adjustment on assets classified as held for sale

0.4 -

Loss on disposal of business 4.4 -

Tax effects on adjustments (2.7) (0.5)

Headline earnings 705.5 895.2

Number of Shares

(000’s)

At June 2012 216 124

Shares issued 786

At December 2012 216 910

Weighted-average for period 216 414

Fully-diluted weighted average 219 313