Shoprite Hldgs Ltd S/Adr

Good morning ladies and gentlemen, a great welcome to all of you and thank you very much for joining us, giving us the opportunity to present our 2025 full year financial results. I will give you a bit of an overview very quickly about the group numbers and then Anton will unpack for us in detail the financials and then I'll end off again with a little bit of an operational overview of what you can expect us to be busy with in the medium term. 2025 for me is really a standout financial performance year. Absolutely outstanding and I'm in great debt to Team ShopRite for once again delivering an excellent set of results. The group sales have grown by 8.9% to $252 billion First time that we've crossed the $250 billion. The gross margin has improved by 40 bps to 24.3%. And here, I have to mention that that was achieved still staying the most affordable supermarket chain in South Africa. And a few years ago, I did mention that if one does not invest in the appropriate tools to do price optimization, personalization, you'll find it very hard and very complicated in time to come to achieve and maintain gross margin. And I'm very happy to see that our investment is giving us a return and hence the increase in the gross profit margin. The trading profit up 16.6%. to $15 billion, and I think to have double-digit trading profit growth is a remarkable result. And in this case, 16.6%, I think, testimony to an excellent year of execution and business that has run at full cylinders all the time. The supermarket RSA trading margin increased to 6.5%. For a food retailer to run a trading margin in excess of 6% just shows a lot of efficiencies in the business in order to achieve that. Something which we are very proud of. As a shareholder, me and also all the other shareholders around me, hopefully as pleased as me with a 26.7% return on equity and a diluted headline earnings per share growth of 15.8% for the financial year. This summarizes the performance of the group. There are different sections of business that obviously does better and we have different brands, as you know, and we've done that so that we can hedge ourselves in different times of economic climates. It's another year where you almost feel like it can't be, but it's now six years continuously that the shopper group has grown market share. And this year, again, they've added another $8 billion of market share to the RSA supermarket business. This on top of a very persistent low economic food inflation of 2.3%. You will remember the guidance I gave last time. We were thinking around 5%. I will talk about it later also, but a month ago we had as many as 13,300 items in one month where the price was lower this year than last year. I always tell this because People think prices never come down. They always say prices just go up, but prices do come down, and there is an example of it. Obviously, in low inflation, we are so much more dependent on volume growth, and so is our manufacturers and producers that volume is almost the only driver left to keep costs under control. And I'm very happy to say that we have managed to still grow volume this year around about 4.8%. We have completed the rollout of the point-of-sale system across the South African business. There was, of course, a bit of fiscal challenges in the non-RSA businesses, so we will be done by end of February. The group has opened 281 stores. We talked about roughly about five stores a week. To do a merger and acquisition in South Africa is not the simplest of things to get done. It's now over a year that we are waiting for approval to conclude the sale of our furniture business to Percore. With that in mind, and also the enormous amount of data that we have indicating to us consumer trends, we've also decided to do greenfield businesses where it makes sense for us, where it complements actually our overall supermarket businesses. Yes, we are opening a lot of stores, but it's intentional. It's not coincidental. There are lots of opportunities out there. We have designed an omnichannel business that picks from store, so for us to have a footprint, a wide footprint, just enhances what our business model has been designed to do, to support that. We've also invested in our supply chain. You know that over the last two years that we've opened two distribution centers, extended one. And, I mean, even me, I was totally surprised that in year one of Riverfields in Johannesburg, that their efficiency actually surpassed that of our older BC in Centurion. and that's why I think ShopRite sits with probably one of the best supply chains in the world, inclusive of its cold chain. We will continue to focus on our adjacencies and our supermarkets. The core of all that we do is still centered around our core supermarkets, but we now have this opportunity with all these adjacency businesses, and if you just think, the opportunity that that still brings in terms of putting all of that online for customer convenience, and I'm talking PharmaCare 8 outdoor, there is so much still for us to build on this platform because the original 6060 as it started is not just a piece of software, where we pay dollar license fees, it's a platform designed internally to serve the entire business, not only a subsection of the business. So the potential of adding to it is incredible. We've seen that by adding general merchandise already, the 35 pet stores on there. We've seen how customers really have taken on to that as a form of convenience. So it is for me so clear the big opportunity that we still have to get to. And that is what we will be focusing on in the medium term. But the big thing for SharpRide, for me, for us that are here on the inside, we believe we have a purpose. Our purpose is to uplift lives every day. And it shows in the actions that we take. We don't just talk about it. It's how we live. I don't know of any other South African business that created 8,700 direct employment jobs. So we're so proud about this number that we have never retrenched any people. We build the business. We grow the business so that we can give more people opportunities. I am very proud to say that our employee trusts have been able to disperse over a billion rand to our people since we started. I do not think there are many businesses that can say that they've done that. And I'm not talking about bonuses and salaries. It's like a dividend to a shareholder. And we're very proud of it. on training the unemployed youth because where are they going to get some experience? If you look at any job application, the second line is say three years relevant experience. Now where are they supposed to get it if there are no jobs out there? So it's for this reason that we specifically give the youth of South Africa the training and the experience that they need to get employment. We are by far the number one supporter of South African farmers and it's logical because of our size and we have very specific planting programs with them. I rate South African farmers probably as one of the best farmers in the world because they farm in conditions that is actually not conducive for what they produce. But not only do we look after our commercial farmers, we have in the past year procured over 1.4 billion from our SMME producers, which we've helped to start up and start farming and producing. Another thing of note is 91% of our private label products are locally produced. So we try and do our part to assist the African economy to grow And very proud moment to say that the SMEs that we have embraced has had a fantastic year. Their revenue grew over 120%. We do a lot of social things. We've got 280 odd community farms. We support them. 7.2% of our electricity is renewable. We have almost 73,000 tons of plastic and cardboard that we recycled this year. So there are lots of things that we carry on doing to support our communities. So those are all the things that we think of because we understand the living conditions of our consumer and we try and stay as close as possible to them as we possibly can. Affordability, fighting hunger, I told you earlier, we have a purpose. And for us, that is our affordability obsession. Since 2016, we've been selling a loaf of bread for 5 rand. And by now, we have over 30 5 rand meal solutions. We've sold almost 10 million of those meal solutions to people. Obviously, we subsidize this, but this is the heart of ShopRite. And so not only do we give best prices, we go to the extra... to make sure that we find a way to make it more affordable and really improving people's lives. A couple of years ago, I mentioned to you that we're going to embark on a multi-year investment to create a platform to deliver consistent growth. ShopRite is not a flash in the pan. It's not a one-year event. We don't give you three-year strategies and plans and then never deliver on it. We rather do things and then tell you about it. And like I always tell the team, a business that does well can do better. But here is just a quick illustration of the last five years. I think if you look at those total numbers, irrespective of who you are, they are meaningful. We added almost $100 billion in revenue. Of that $33 billion was actually market share gains. And in that, I must compliment the team. It meant they outran the competitors. As part of the multi-year platform investment, it was a very deliberate investment to also introduce alternative revenue streams which have now become meaningful and comes at high margin. For our shareholders, a lot of companies have not been able to ride through COVID and all these years have been able to continue to pay dividends. And ShopRite has paid over $2.2 billion in dividends additional over the last five years. We've added almost 700 stores to our network. And then, I mean, how happy can a retailer be If I can stand here and say we had an additional 200 million of customer visits over the last five years, it means customers have voted. Not us. They have voted. And they've got choices. So just before I hand you over to Anton, I just want to share this milestone that on the 25th of July, we have delivered our 100th millionth order on 6060. And we are very proud about what this business has achieved over the last five years, which we will unpack later. So for now, I'm going to hand you over to our very fine, I think, finest CFO in the country, Anton de Bray.

Thank you, Peter, for that introduction. Our 2025 financial performance reflects the successful execution of our multi-year investment strategy. We have consistently communicated our approach to capital allocation, and before presenting the detailed financial figures, I would like to explain certain factors that have influenced our current year results in alignment with our overarching strategy. Here I'm referencing to the acquisition of the remaining 50% in the shielding of our Pingo Delivery operations. Just a refresher, Pingo Delivery is our last mile logistics provider. They're servicing our 60-60 business. I will also talk about the discontinued operations Give More Colour. We did communicate the sale of the furniture business to PEPCOR. Important to note that excluded the Angola and Mozambique operations. During the second half, we closed our furniture business in Mozambique. and we've identified a buyer for our operations in Angola. We've also taken a decision to exit Ghana and the Malawi operations. Maybe just a refresher in terms of the accounting for restatements. From an income statement point of view, we had to restate the 2024 financial results to take into account the changes that we saw in terms of the discontinued operations during the first half and the second half. From a balance sheet point of view, we showed in the current year the assets held for sale and liabilities for sale. In the current year with no restatement of the prior year. And then from a cash flow point of view, it deals with the total operation, including the continued operations as well as the discontinued operations. If we then go into the detail around the acquisition and the impact it had on our financial results, Already during the first half, we showed the alternative revenue delivery income as well as the subscription income as part of our sales, where we previously had to show that as part of our alternative revenue. And then from an operating expenses point of view, the total delivery cost relating to the 60-60 operations was historically shown as part of expenses, but now we show that as part of cost of sales. The third factor that we have to take into account is previously because we only had 50% share in the business, we showed that also as part of alternative revenue, but it formed part of our sharing profits from associates. Going forward, because we own 100%, we consolidate on a line-by-line basis. I will reference during the presentation, because it did distort our total income ratio as well as our expense ratios and margins during the year. If we then go into the detail around the discontinued operations on the furniture business, first half relating to the sale of assets to PEPCOR, but then in the second half we also had to account for the impact of the Mozambique and Angola discontinued operations. What does that mean from an income statement point of view? The furniture business had a very profitable 2025 financial year where we saw an increase of $217 million to $328 million, and you will see that coming through our discontinued operations line in the income statement. From a balance sheet point of view, as we said in the first half, we expect to realize a $2.4 billion rent as proceeds from this transaction. The timing of the transaction and when we aim to conclude on especially the South African part of the business is up to the competition commission to give us that final approval. With the focus on reallocating capital to our core South African operations, the decision was also taken to exit our Ghana and Malawi operations. As part of our discontinued operations line in the income statement, we reflected a loss of 101 million in the current year. Assets and liabilities held for sale as per the detail. We do expect to conclude on these two transactions within the first half of the 2026 financial year. The aforementioned transactions have resulted in the restatement of the prior year diluted deadline earnings per share from continued operations. Initially, we reported DHEPs of 12 and 45. After the first restatement in December relating to the furniture transaction, we then reported a DF number of R12.08, and then post our sale of businesses within Argana and Malawi, as well as Angola and Mozambique, we now posted a restated DF of R11.18. The current year DF is R13.67, and if you look at the growth there, it's around 15.8%. But to make it more comparable, if we had to include the proceeds from the furniture transaction, the DF's number from continued operations would be close to 14 Rand per share. If you compare that to the 12 Rand 45, we would have seen an increase of around 12.3% for the year, if you compare like on like. Now that we have a clear understanding of what's influencing our results, let's delve into the detail. Our sales increased by 8.9% to R252.7 billion. Total income was R65.7 billion, and very pleasing, our total income margin is at the 26% level. Total expenses increased by 7.4% to R50.7 billion, with an expense ratio or expense margin of 20.1%. And in trading profit, very strong performance of an increase of 16.6% to 15 billion, and we saw an increase of around 40 basis points in terms of the trading margin. EBITDA, reflecting our strong cash flows within the business, increased by 18.8% to 23.8 billion. And then the DFs that I referenced to in the previous slide, we saw that increase of 15.8%, with return on equity now at 26.7%. Adjusted return on invested capital, very strong 19.4% against a WAC rate of 13.5%. Maybe just a reminder on what we classify as adjusted ROIC, and there is a detailed calculation in the supplementary documents as part of this presentation. We've included the old IAS 17 leases, and we've excluded the impact of IFRS 16 on trading profit to get to the adjusted return on invested capital. Final dividend increased by 11.5% to $4.96 and then a full year dividend of 9.7% to $7.81. If we unpack sales in more detail, so growth of 8.9% to $252.7 billion. Important to note with regards to the Bingo transaction, what we talked about previously is that as part of the current year result, we've included nine months of subscription income as well as delivery income as part of the supermarkets RSA segment where we saw an increase of 9.5% to R214 billion. On a like-for-like basis, the increase was 4.8% and internal food inflation was around 2.3%. If we go into the various banners, ShopRite and YouSafe increased sales by 5.9% to R116 billion. And then Chequers and Chequers Hyper, very strong performance, where we saw a growth of 13.8% to 95.7 billion. The Jason business is also a very good performance during the year, with growth of 39.1% to around 1.1 billion, giving rise to that 9.5% in sales growth. Supermarkets and non-RSA had growth of 6.4% to 20.5 billion rand. On a constant currency basis, we had a sales increase of around 14.2%, on a like-for-like basis of 3.9%. Internal food inflation within the various regions was 9.6%, and we opened 14 stores during the financial year. Total other operating segments increased sales by 5.2% to 18.6 billion, with franchise business driving the growth there, with a growth of 6.7%. The franchise now trades from 615 stores, and we plan to open another 79 stores during the next financial year. Looking at our store expansion program, during the financial year we added 5.9% in space growth. We opened a net 255 stores, and we plan to open a net 223 stores in the new financial year. If we look at the banners and where we saw most of the growth, Within the ShopRite and Usave banners, with the liquor shops, we saw 120 stores opening. And within Checkers, we saw 64 stores opening. Really looking at the liquor business, we added 80 stores during the current financial year. And if we look at the growth for next year, Usave showing some nice growth where we're going to plan to open another 49 stores. And if I really look at the liquor business again, already 71 new committed stores. Our adjacent businesses, we saw some nice growth with the opening of 71 stores, with the pet shops opening 58 stores, driving a lot of that growth. If we then turn to our total income margin and our achievements there, during the year we saw a 9.4% growth to $65.7 billion, with a 10 basis points improvement from 25.9% to 26%. Gross margin was the main driver where we saw an increase of 10.6% against a sales growth of 8.9%, so that's $61.4 billion. And we've also saw an increase of 40 basis points in the margin, taking us to that 24.3%. The gross margin improvement was across the business. It was not just only in RSA supermarkets. When I present the training profit you will also see that within the non-RSA segment we saw some positive moves as well as in the other segments of the business. The expansion within the supply chain also supported our margin expansion during the financial year. From the graph it is evident in terms of our performance during the first half versus the second half in gross margin and we can see that the second half is performance is better than the first half and that is purely as a result of the highly promotional activity from October, November, leading us into the festive season. I think what is also very pleasing is to see the trend line in terms of if we really go and look at the gross margin profitability in 2022 compared to the 2025 financial year, we've seen a consistent 12.3%. compounded annual growth over these past few years. And then if I look at the gross margin percentage year on year, we're around that 24.3% ratio. So very consistent from that point of view. Interest revenue decreased by 30.4% to $218 million. Included in the base is the interest received from our resilient partnership for the three properties we had in Nigeria. You will recall that at the end of June of last year, we acquired the shares in those legal entities and we did not receive the same interest revenue in the current year. We will however in the next slide see that we did receive the lease income from those three sites which basically made up for the reduction in the interest revenue. our share of profits from our various investments that consist of the retail logistics fund as well as Pingo. And in the base, we now have our 50% share relating to Pingo as well as the retail logistics fund where we currently own and house currently our distribution centers that we operate from. In the current year, the majority of the R250 million relates to the retail logistics fund and we've included three months relating to the Pingo transaction. As mentioned in the initial comments, we now consolidate Pingo on a line-for-line basis, which meant that we didn't have to account again for it as part of the sharing profits. If we then go to our various alternative revenue streams, we saw a 13.9% from the core that we will report on going forward. That was mainly driven by commissions received of 7.5% to around 1.3 billion rand, and that's for our money markets in our various stores. Marketing and media revenue, that's mainly our Rainmaker business, another strong performance where we saw growth from 36.8% to 647 million for the year. And then the lease income that I've just spoken about, where we saw a 31% increase to 596 million. We still have more than 100 properties within our property portfolio that we fully own. Franchise fees received increased by 4.9% to $192 million on the back of that 6.7% sales growth. And then sundry revenue increased by 3.3% to $942 million. mainly on the back of the REX platform, our data insights tool, where we've seen very good growth, together with dividends received on our unlisted investments. Why I've split out the delivery, recoveries, and subscription incomes to the core is to give you the impact of what we've disclosed as part of the Pingo transaction. So in the base, It included our delivery recoveries and subscription income. And as mentioned before, we've included the delivery income and subscription income for three months during the current year. The majority of that is now shown as part of our sales number. If we then turn to expenses, we saw an increase of 7.4% to $50.7 billion. We saw reduction in our expense margin from 20.3% to 20.1%, but again, one has to take into account the impact of the reclassification in terms of the acknowledging of the bingo transaction. In the base year, we've included 1.46 billion rand of delivery costs, and in the current year, the majority of those costs forms part of cost of sales. Depreciation and amortization increased by 17% to 8 billion on the back of the 255 new store opening as well as the 488 lease renewals during the financial year. Additional to that was the two distribution centres both in Riverfields as well as Wells Estate that were added during the current year. Employee benefits increased by 10.8% to 20.2 billion rand better than the prior year growth of 13%, but that growth was still fueled as a result of our store opening program. We are very proud that we've again this year been able to invest more than a billion rand in training for our staff. Other operating expenses saw growth of 1.6% to 22.4 billion, Some of the major items included in there is electricity and water, where we saw an increase of 9.3%. That is against an INERSA increase in South Africa of 12.7%. What is pleasing for us is that we saw electricity and water as a percentage of sales reducing to 2.1%, still 10 basis points above our historical rate of around 2% of sales. Diesel costs during the financial year, however, reduced from 810 million rand to 335 million, of which the majority of that was actually a cost that we incurred in Zambia, where we had certain droughts that led to additional load shedding within that region. Advertising costs increased by 6.4% to 4.1 billion rand. And then if we look at our repairs and maintenance costs, we had a pleasing reduction in costs by 7.8%. On the back of two reasons, it's the refurbishment that we've consistently been doing, as well as the decrease in load shedding that we've seen during the last financial year. Security costs increased 11.9%, but it's still within that 1% to sales ratio that we've had historically. It's pleasing to report that we saw a decrease in our insurance costs during the 2025 financial year, and I expect to see similar trends within the 2026 financial year. We're very proud to report the growth in terms of our trading profit in our various segments, where we saw a 16.6% increase to R14.9 billion. We also very pleasingly saw an improvement in our trading margin from 5.5% to 5.9%. The majority of that growth was within our supermarkets RSA segment, where we saw a growth of 15.5% to 13.9 billion Rand, supported by a 30 basis points improvement in training margin and mainly driven by that improvement in our gross margin that we've seen there as well. Supermarkets, non-RSA, improvement by 43.4% to 644 million. An improvement in our trading margin of 80 basis points within that segment. Other operating segments increased by 32.3% to $652 million. For reference again to the graph, we spoke about the consistency and predictability within our business. When we spoke about the gross margin, the same trends are visible within our trading profit where we compare H1 to H2. And for the last two years, you can see as well, very consistent in terms of our report between the two halves. We then turn to finance costs, increase of 30.9% to R4.8 billion. We have consistently over the last three years seen an increase of 16% and then 12% and in the current year 20.7%. That was mainly driven by the increase in our lease liabilities where we saw a 12.5%, 13.8%. and 16.2%. If we unpack and try and understand the growth within that is our strong store opening program, as well as our lease renewals in each of those various years. For the last two financial years, we also added our extension within Canelands, and in the current year, the additional Riverfields and Wells Estate Distribution Centre. Important to note is the comment I made there, the difference between what we account for, for a 16 lease cost, and here I refer to the depreciation and finance cost relating to the leases, was 1.4 billion Rand more. than the cash flows related to these leases, which meant that we had a 14% negative impact in our profit before tax. From a borrowings point of view, we also saw increase in our finance costs there, but that purely related to the financing of our working capital increases during the financial year relating to our inventory built within those two distribution centers. If we then align our capital allocation model to the cash generated within the business, our core cash generated within the business, debt of tax, was R22.5 billion. We then look at how we've spent the cash between the various capitals. First was our debt and financing, mainly result relating to the IFRS 16 leases of R8.1 billion. Our growth and maintaining capex of R8 billion. And then our shareholder returns, where we've paid dividends of 4 billion rand during the year and acquired treasury shares of 1.4 billion. Working capital, we saw a net movement of 2.3 billion, mainly driven by our investment in inventory as a result of our expansion in our supply chain. From a strategic investment point of view, we paid 472 million rand. for the additional 50% share in Bingo, but we also realized and we received proceeds from our sale of government bonds within our Angolan operations, which led to a net inflow of 600 million. That gave rise to a net outflow of 700 million for the year, with cash and cash equivalents at the end of the year at 9.3 billion rand. I do expect to see an improved cash flow performance during the 2026 financial year relating to the sale of the various businesses as well as proceeds from the furniture transaction that is expected to happen in the 2026 financial year. Growth and maintaining CapEx increased from $7.7 billion to $8 billion, but we did see an improvement in CapEx as a percentage of sales from 3.3% to 3.2%. If I break it down between growth and maintaining CapEx, 79% of our CapEx is to grow our business and to expand our business. And that was mainly underscored by the new store and upgrades where we spent 4.8 billion Rand. Information technology, another 1.3 billion. And that was mainly driven by our rollout of our point of sale system that occurred during the year and additional investments behind our 60-60 platform business. Additional personalization developments as well as the investment in our Rex Insights platform. From a maintaining CapEx point of view, we spend 1.4 billion rand of refurbished goods in our store portfolio. Inventory increased by 4.9% to 29.7 billion. I would like to highlight the impact of discontinued operations on these numbers. In the current year, we show 1.7 billion rand as assets held for sale, but within the 2024 number, the 2.1 billion is part of our inventory number. If we therefore had to include the current year 1.7 billion as part of the 29.7, we would have seen a moderated growth in inventory of 10.9%. The majority of the increase in our inventory levels relates to our supermarkets RSA segment. We saw an increase of 2.7 billion rand. That represents an increase of inventory to sales from 11.8% to 12.1%. Pleasingly, if we look at our inventory to sales ratio within our stores, it's still at that 8% level, which is testimony to the current stock levels as well that it is sellable stock and that we do not sit with dead stock within our store portfolios. Supermarkets non-RSA, we also saw a slight increase relating to the total continued operations. We saw that increase of 11.3% to 11.8%. If we then look forward towards 2026 and what we can expect from an internal food price inflation point of view, July we saw a reduction from 3% in the prior year to 1.8% in the current year. Our store opening program is still very healthy with 223 new supermarkets planned for the financial year and 79 franchise stores. We get asked a lot by people how they should think about our total income margin and expense margin. We are aiming to maintain our income margin at 26% and we are aiming to improve our expense margin to a 20% range that will give us a 6% trading margin. Some of the cost drivers that we will see increasing during the year is our staff costs to basically support that growth within our new stores and operations. And in depreciation, I do expect to see another year of double-digit growth, especially in the first half compared to the second half as a result of the bringing on stream of the two distribution centres during the first half. Our effective tax rate, we aim to keep between 27% and 28%. And then from a non-RSA point of view, we aim to conclude on the transactions within Ghana and Malawi, as well as the furniture transaction in Angola. In terms of inventory, we'll remain in line with the 2025 financial year. And then if we turn to our capital allocation model, Just a reminder in terms of what our dividend cover is, we currently have a 1.75 times DEPs from continued operations, and I do not foresee any change within that. And then borrowings, I mentioned earlier that I do not foresee an increase in that as a result of the proceeds that we will receive from the furniture transaction. Our current borrowings to equity ratio is 23%. From a CapEx point of view, we estimate to spend R7.9 billion with the majority, again, to grow the business on the back of that healthy store opening program, but we are targeting a below 3% CapEx to sales ratio. Peter, that then concludes the financial section of the presentation, and we're looking forward to hear from you around the strategy within the company. Thank you very much.

I will be taking you over now to a little bit of operational overview. Remember, it's a package deal. ShopRite comes as a package, as one listed entity, but that is also why we can stand here and why we can deliver on this. So just before I now go and unpack more of the ShopRite business and give you more color Just a reminder quickly, the salient points as we start in the beginning, revenue growth 8.9%, gross profit growth of 10.6%, trading profit growth of 16.6%. The $252 billion in revenue, yes, it's a number. I don't think I can count that far, but the essence for me is the fact that the ShopRite group had to add 20 billion of additional revenue in the past year to achieve an 8.9% sales growth. I know a lot of you like to strip out percentages and compare pieces or selective parts of the business with other peers, but that is not how ShopRite is put together. ShopRite is the sum of the parts and that gives us many levers to pull and end with this picture that we have today and a trading margin of 5.9% for the group. I did say earlier that the South African supermarkets has got a 6.5% trading margin. But in the end, we have to look at this collectively. And what this has given us and what we've built over the years is the multiple levers that we can pull in different economic conditions to continue to grow and keep on being a business of growth. Like most things and definitely in business, it's a balancing act. And in this case, if we look at this slide that we've separated here, the consumer on the one hand and our shareholders on the other hand. If I just focus on the consumer side and I always say we in the people business, that's what we do. Our people, the customer, our people, our own people and then our people, our investors. If there's one thing that pleases the retailer the most, is if you can grow your customer base if more people elect to visit your stores and we have been very blessed that in this year we've grown our customer visits by 4.6% overall 1.2 billion customer visits The volumes I mentioned earlier, one of the very few retailers in South Africa that's been able to grow volume, 4.8%. So if one put those two together, you're growing customers, you're growing volume, you are the cheapest, and you manage to increase your gross profit margin, then there are a lot of momentum in the business overall. And in The end result of that is that we've gained market share to the value of $8 billion in the last year alone. And I repeat that we've been gaining market share consecutively for now for over six years. If we look on the shareholder side, what does it mean for them? And 15.8% diluted headline earnings per share, I think in Today's terms, that is a very healthy number, very proud of that, that we could achieve that and give our shareholders that kind of return. The increase in the return on invested capital, very happy that we could achieve that last year around 16%, now up to 19.4%. Very pleased. As I mentioned earlier, we're opening a lot of stores, and you can think, Are they giving the necessary returns? If you look at the return on invested capital, surely then we have to tick that number that it does give us the necessary returns. And I want to remind you that we do not think online physical ShopRite is a truly omnichannel. For us, it's a one distribution model. And that's how we also look at how we do our investments. And then, pleasingly, that we could pay a dividend again, R7.81 for the year, hopefully, with that and the return on equity of 27% for our shareholders will be a pleasing result for them. I have now already mentioned the RSA supermarket growth In relation to the total group growth of 8.9%, the African supermarkets have grown 9.5% with a like-for-like growth of 4.8% at a very, very low inflation of 2.3%. Retailers generally depend a little bit on inflation for their growth. In this case, as I mentioned earlier, we've been lucky enough to grow our volume to make up for a very low inflation. The thing that I really want to point out here is probably the graph for five years now, ShopRite Group have outgrown the market. And this year, by the largest margin, 2.8 times, which is very commendable. And I can only once again thank Team ShopRite for that. If we look at the inflation, six-year low, and why this is important and we have to show you this is, again, people looking at percentages. Oh, you had double-digit sales growth a year or what ago, but inflation was 13%. Of course, when you will grow 20s or plus, And then we dipped as low as 1.9% at some point in time and for the year 2.3%. So obviously the percentages of sales growth or revenue growth will be affected by that. I did mention that our promotional sales have increased and the volumes of I said around 10% is actually 6.9%. The highlight for me for this lower inflation sits probably in the improved gross margin. And it's now the second time in this presentation that I'm mentioning that if you did not invest in the tools to assist you in terms of pricing and margin management, you will be at a disadvantage. And I'm very happy and pleased to say that we have made those investments early enough so that they're now starting to give us good results. We like to show this slide, particularly for our international investors, to remind you that we are a multi-brand portfolio. Even if we only look at the supermarket part of the business, I'm not talking about the old revenue and adjacent businesses even. Just talking about supermarkets here. And this is very unique to South Africa because that is what we found the most efficient way to serve every part of the community the best. So each of these brands have a very precision-driven focus on who their customers are and what their deliverables are. The beauty of it is, now that we've created this platform business, is that all of these businesses still can be expanded onto the Omni platform to give us future growth and as people demand more convenience and want to save time and money. in terms of travel in particular. Staying with South African supermarkets, ShopRite, the mother brand, always been the livelihood of average consumer in South Africa, price-sensitive consumer, now surpassed $100 billion in revenue, added $6.5 billion. And I need to acknowledge that ShopRite definitely have been affected disproportionately with the short supply of chicken. We all know what happened earlier this year when there was a short supply of frozen chicken in the market and ShopRite over indexes on market share in that category therefore were affected more than anybody else. ShopRite also extended its business to cash and carry. It's new for us. We're learning fast. Here's a good example of when you can quote percentages. So the cash and carry business grows over 24%. Very good. YouSafe, on the other hand, we all know exactly what it stands for. It is the go-to place when your budget is tight. There's no frills. There's no temptation to spend money unnecessarily. And I'm very pleased to say that our private labels, especially the U brand in USAFE, are being accepted by the consumers with the quality that it offers. There's no inferior product in that business. Moving on to checkers, it seems these days like everybody loves checkers. Everybody loves the brand. It does give good value. And if I can just mention one, for example, which I'm very pleased with, and I like to mention their name, is Discovery Vitality. Our partnership with them, fantastic. We brought in Jamie Oliver, too, because he's a health fundi. And we do have this beautiful brand called Simple Truth. It's always less sugar, no artificial colorants, etc. So very good story. Checkers remains the fastest growing premium grocer for the fifth year in a row now. Very happy that we are still gaining customers. Now, who would have thought that a food retail brand could be voted South Africa's strongest brand? And Checkers was voted that. And although we're not in for winning awards, It is quite an achievement for a food retailer to be elected the strongest brand, which we are, of course, very proud of. I get many questions about these adjacent businesses that we've opened, the outdoor pet, the pharma care, unique store doing fantastic. These adjacencies are really getting traction. data again. It's the data that drives these decisions that tells us what and where we should invest and they are really starting to gain traction. We are really looking forward to expand on this business. We already have over 200 stores and we will continue to expand them as we expand our supermarkets. A lot of places now in the strip malls you will find that we almost are the entire tenant base of a strip mall because of the need state that each of these businesses actually fulfill. If we move over to the rest of the segments, the supermarkets, non-RSA, and the other operating segments, including of furniture, if we look at supermarkets non-RSA, you know we've exited a lot of regions. Africa still has a challenge in terms of affordability and also exchange rates. So overall, in summary, a very pleasing result for us at ShopRite to have been able to increase the profitability of that segment by 43% and grow customers. The other operating segments as well, especially the Pharmacare, that's why I mentioned earlier, opening stand-alone Mediro Plus pharmacies. Because, again, I have to refer you back to the data, is that the data tells us people more and more tend to buy basic health care and personal care items from a specialized store. And we are ready to take that opportunity. have opened a new transform facility. I'm very impressed with what that team has done. In about three weeks from opening that facility, the auto picker in that system, in that DC, were running already at 120% of its design capacity. I laugh a little bit about it because it's a typical ShopRite style. It's built to do 100, but then we do 120. So very proud about that business. Looking forward to good growth. Franchise also had a very good year. And there's a lot of, again, market share. And secondly, a lot of touch points where we currently are working closer together. They're buying more frequently from our distribution centers. And it also allows us to utilize and... optimize our supply chain to service this over 3,000 store network. Furniture, unfortunate. I mean, it's a year later. We're still waiting. It's such a small transaction. Theoretically, if you think of our market capitalization and we're still waiting on the authorities for approval for that. Just to remind you again, so Although it's held for sale, it means that at the moment we're not getting any benefit because it doesn't count into continued operations. But I can assure you we're not neglecting the business. We're still running the business and keeping it up in good shape. And by the time that we finally will get the approval, we will hand over a decent business A little bit of update of what we said to you. This slide, barring two points, hasn't changed since 2017. And I think I showed you the first time. So I'm not going to... You're familiar with this. Only thing is, those are the three pillars. They drive the things that we do. If you don't fit in one of these, then you don't get done. I told you many times when I first started speaking about precision retail, people didn't understand what I was saying. And these days, this is what we talk about. You know that we have over 53 million customers' purchases data. I want to be clear on it that we have got 5,000 data points on these people, and we're very happy with our extra savings program. So I'm not going to stand still on that. I mentioned right in the beginning we are still working on creating alternate revenue. We would love it if your money gets into our environment and never have to leave it. It saves you money because you don't have transaction fees and you don't have transfer fees and bank fees and all those things and all that you save by doing everything within our Real estate, if I might call it like that, saves you money and in the end improves your life. So we still have that Rainmaker does well, the REX platform that we monetize to third parties and to our suppliers also. And then financial services, I'm not going to stand still on financial services at this time. It's a subject almost on its own. The thing that I just want to mention about them is that the electronic or technical platform has been re-built, re-platformed, and it is absolutely state of the art. It will accelerate what we've been able to do in the financial services space. So 6060 is the one. largest digital platform in South Africa. Everybody was wondering what does it do? How big is it? So there it is. It's 18.9 billion and it's growing and it's been growing every year for the last five years since we built it. The ticker you see there on the right hand side is what I said earlier on the 25th of July. We surpassed the hundred millionth delivery And the speed that you see there is basically as deliveries happen. That's the pace that this business works at. You know our model. We pick from store. There's been a lot of speculation whether 6060 can make money or not make money. I can promise you it does make money. It's got a very good return on investment. Because we have the model of Big Farm Store. We're in 694 stores nationwide. Nice thing to say also, over 15,000 people actually got a job, new employment that was created by this business unit since its inception. The enhancements on this program and the improvements that's being made on it They do like 900 software releases a year just to make it, tweak it a little bit better. And you can understand what it creates is the difference between the 6060 platform and the rest of the market if you're running at that pace. This is a graphical illustration of where we started. But as you can see, this is not abating. The growth is still there. Although the percentage growth is slowing down, that's quite logical because of your base getting better. But if you look on the right hand side at the green piece of that graph, the value continues to grow. although the percentage slows down because the base has gotten so much bigger. I think 6060 is probably the most loved brand, and no retailer can ask for anything more or better than brand love. Who would have thought somebody would have a wedding with a 6060 theme and make a dress for your matric... Farewell. It's just been fun. It's been good. But, I mean, we have to work at it. And it comes with risk. The business is big. 265 million kilometers. 94% of the deliveries are on time. A million products picked per day. Almost 97% of products that you order, you're going to get. The important point here is the bigger the business gets, actually the better it gets. And it doesn't come by itself. Obviously, it needs investment. It needs constant improvement and very great result for us to show to you that over the last three years, all of the measurements have improved. And this year, we achieved our highest on-shelf availability ever, which is 98.2%. Now you cannot run an online digital business like this if your on-shelf availability is not at that high level. And if you don't have the full visibility of stock through your supply chain, then it is not possible to consistently the lower at this level. This is the 6060 flywheel. The most important thing probably that I can say is it is a platform. It's not an app. It's not a web. It's a platform with scalability. And that's probably the most important. I'm not going to go through every item here, but The most important thing that I can leave you with is that what was created here is not a little app and you got somebody to write it and then you pay dollar license fees. No, this is a platform for the entire business. And that's why we now have the ability to add things like general merchandise and the pet and the farmer care and all of that. The one thing we're not, we're not a third-party market. That is not what we do. We believe that we are the everyday store, not the everything store. and that is what we try to do as best as we humanly possibly can do. So just to carry on the point that I'm actually driving home of it's a platform business with its flywheel effects is we can expand, we can enlarge the range, we can add more product, but for me Probably the standout is new customers joining the service growth by 26%, which is absolutely fantastic. And as long as we get those customers, you can understand that the incrementality of that sale is a very profitable customer. Carrying on on that, the improvements that we can still make and have to make is the What we have is this high frequency of data that allows us to just make so much better data or things like. It is absolute data that tells us exactly how the customers behave and when, at what time, what the weather does, how people behave, and then we can adapt to that, which makes us smarter in terms of giving them that personalized experience. That's different to personalized offer where I give you something that I know you need or you want. But that experience is what we can improve on. The pricing that we can adjust and the online marketing that we can do, reducing the delivery times. I know on average our delivery time is 31 minutes. Yes, yeah. Somebody can come and say, oh no, we're going to deliver it now in 15 minutes. I don't know what difference that makes. If I can get my goods in one hour and now with the general merchandise I can specify a specific hour slot on a specific day when I know I'm home to receive my parcel. Is this something that is changed the whole way that omnichannel and online works and in the end the dream is that we improve the customer satisfaction and that they will continue to use the service and more and more of it and I'm coming back to in the end we get that share of wallet where people feel it's not necessary to take my money out of this environment because I am getting most of what I need daily, every day. I said the everyday store I'm getting here and I'm getting it conveniently and from anywhere. So once again repeating this thing I'm saying about the platform and then how we can leverage off this platform. So all of a sudden there's this ability that there can be a multiple delivery that dog food can be delivered with a braai and so we reduce the cost of the delivery, the time of the delivery and so the scalability of it just increases. So I hope I'm getting across just to say that we're still at the infancy of where we can take this business. The natural effect, and I suppose you will say it's logical, but it is true that people, that the longer that people are on the system, the more valuable they are and the more they spend and the more they use it. Because it becomes easier and you've done it once and then you save your order and next time you just reorder and you add one item and so on. So it is true that the omnichannel customers that we have are 3.8 times more valuable than a person that would frequent only in-store. So people compliment the two and therefore we believe the model has still got a lot of legs in terms of growth. This is for me probably explaining things the best. For a non- technical person, just to understand what is happening here. Ten years ago, we laid the foundation of the core retail system and capabilities, supply chain, real-time view of stock, line item profitability, and I can carry on. You will remember those days in 2017 around. Then the next level came, so we expanded on the supply chain level because how are we going to support all of this? Stock has to be moved around. It has to be moved in one hour. You need systems for it. You need to be real-time. And then we've got the portfolio of the brands. We've added the adjacencies. I've spoken about them. Now, if we go through all of that, it's what I just said earlier is our everyday store What we want to do every day is to make your life easier every day. The things that you need every day, the time that we can save you, the money that we can save you on the transactions, if your money don't leave our environment, then there's no transaction fees. Those are the things that this thing illustrates is how this was built. And this is not something that you just go buy off the shelf. this has to be built with the right intent in mind with the angle. Then right at the top, of course, is the customer, the customer rewards, the fact that we still gave back to consumers R16.5 billion in instant savings at till point. I don't think many retailers can say that. And that is what we pride ourselves. This is what we've built. And on top of all of this now, the digital platform is bringing it all together to make us a really, truly omnichannel retailer. So after I've now said so much about this platform, and you can clearly hear, I hope I could give you the message that the growth potential of what was built here and the ability to include our entire business portfolio and make it a true omnichannel. In the checker space, it's very clear the personalization that still has to be matured We're talking about pharma. There's so much opportunity still for us to add in terms of product assortment. We are aware that we have started also to introduce the 60-60 service in the shop-like market. There's a total different opportunity in there which we are testing at the moment. that assist people greatly in terms of their small businesses also. Then the hypers, I mean, for many years, the hypers have been, you know, it's a big store, and if you're looking for convenience, you're not so sure. And all of a sudden, people actually realize what a fantastic assortment of product in general merchandise that Checkers Hyperstores has to offer at fantastic prices. That has opened up that avenue as well. And then there's this value-added services on the financial services side that is absolutely in its infancy. If we put all of this together, I hope that I can leave you with the thought that there is so much growth and opportunity still in this ShopRite company with what we have today doesn't mean we're not going to stop or that it doesn't mean that we're going to stop innovating. We will continue to innovate. This is where we conclude the formal presentation. There'll be a short video then Anton and I will take your questions to clarify anything that you want us to expand on. I really thank you for your time. It's been a pleasure. Hopefully it wasn't too long. It is a big business and thank you very much for your support and I just want to end Lastly, to say that I'm extremely proud about the people of ShopRite that has delivered this outstanding set of results. Thank you very much.

In 2019, Chekhov did what no one else thought was possible. Launched an on-demand app that delivers groceries in as little as 60 minutes. Not next week, not tomorrow, in one hour. Almost six years later, 6060 is South Africa's number one on-demand grocery delivery service and one of the fastest-scaling platforms in the country's retail history. The scale speaks for itself. Seven million installs and 27% growth in active customers last year. Delivering for customers every single second. Since launch in November 2019, 6060 has delivered 100 million orders and over 1 billion products. Our drivers have traveled nearly 700 million kilometers, the equivalent of 17,000 laps around the Earth. In the 2025 financial year alone, 6060 sales reached 18.9 billion rand. And, because 80% of South Africans live within 15 minutes of a shop right in the store, we're not just fast, we're everywhere. With an unrivaled proximity advantage, 66 we started with just 1500 convenience products today it's a multi-category platform business offering effortless same-day delivery of groceries and general merchandise liquor health and beauty baby outdoor and speciality pet almost anywhere in south africa but what makes us unique isn't just speed it's how the platform is built A homegrown fully integrated digital commerce system. Four custom built apps for customers, pickers, drivers and stores all connected by our proprietary order management engine. This integration gives us our competitive edge. It allows us to control the entire journey, from search to shelf to doorstep, with unmatched efficiency and reliability. Today, 6060 is the digital storefront of the ShopRite Group ecosystem. The platform now handles over 9.2 million weekly search queries and more than 1 billion system calls, scaling 10x since launch. Our mission is clear to make the everyday effortless for customers and for the group to become South Africa's largest and most profitable omni-channel retailer. With more than 33 million members, our extra savings rewards program generates the richest customer data set in South African retail. Every interaction fuels a personalization flywheel, predicting needs, tailoring offers, and growing customer lifetime value. When you combine that with ShopRite's supply chain, pricing power, and national store network, you don't just get a moat. You get a physical and technological advantage that is difficult to replicate. Competitors can copy an app. They can't copy the ecosystem. And the result? 6060 has become more than just a service. It's a cultural icon. The definition of convenience from one of the most loved brands in South Africa. Customers don't just use us, they advocate for us. They build us into their daily lives. Delivering groceries, general merchandise, summer, dreams and joy. 6060 is no longer just a service. And when convenience becomes culture, you're no longer optional, you're essential. 6060, the future of grocery delivery.

So Anton and I are back. Usually I just, while we get settled and everybody look at their final questions after the video, also I think there was more detail in that, is just a few things that I know I'm going to be asked, our outlook on inflation. There was a specific question I already saw about where we see the inflation discrepancy between our low inflation and CPI. So it looks like 3% is what we're talking about. If I have to put it in a crystal ball, we have gone as low as 1.8%. We're currently even lower. Some of the very large manufacturers that we saw recently are talking about planning a 1% volume growth for the year 2021. because of the low inflation in amongst where we are. So inflation is low. The difference between CPI and our internal inflation, which is much lower, is because CPI is a fixed list that gets measured year on year, fixed list of items, whereas ours are weighted. which means, very simply put, we take what people buy today, what's in their basket, and we look at those items, what they were priced or what their price was a year ago, and then so we weight in that inflation. That's why it's a much lower number than the CPI. The sales growth, just in general, there was a We showed you that in H2 was slightly lower sales growth in H1. I have to mention here that especially in the Shopify and EUSA environment, We were impacted more in this proportionately to our competitors around the effects of the shortages in chicken, frozen chicken. We over-indexed in that market with market share over 70%. So I can imagine that those two, three months where we had some supply issues on there, it did affect the shop right in Yusuf brand much more than any other retailer. The sales effect, if you look at percentages, and I've tried in the presentation to mention a few times how one easily can read things differently or, I would say, incorrectly by just looking at percentages, is that the very, call it super low, inflation currently experienced in ShopRite and in USAFE which is completely different to the checkers, and that's why the percentages growth numbers are completely different. That affects shop price numbers much more than the checkers, and many of the peers also, which have a different inflation number. And also the fact that... different retailers calculate the internal inflation slightly differently. We are very clear on how we do it. We've never changed it. That's the way we do it consistently, so the numbers are very comparable. We're going to continue to grow. You mentioned it, Anton. We are planning 309 new stores. There are a lot of opportunities out there. Especially in the Turkish environment, it is still true that there are a lot of areas in South Africa where we are underrepresented, and we are going after those opportunities. We are in a very lucky or fortunate position that landlords and property developers currently, I don't want to say favour, but they certainly are very positive about having a checkers brand as an anchor tenant. We also now these days have many instances where we have one real estate development where we've got ShopRite and checkers as a dual anchor in one center. So that's where all of the momentum is coming from. Yeah, so we're going to continue to deliver on our plans. You know what we have to do. try and license our customers every day as best as we can and of course sustain our profitable market share gains I know I mean it's not possible to gain market share forever but at the moment as you also saw I mean this year showed that we actually accelerated on that level so that also brings opportunity by itself I think, Anton, that's sort of a quick summary if you want to go to the questions.

You'll be happy to hear there's not too many questions. I think the first one, Peter, is you've touched on the sales, but how do you think about the competitive landscape? And maybe talk a little bit about what you see within the promotional activity as well taking place within the various food retailers. Sure.

Yeah, food retail in South Africa is as competitive as it's ever been. It's globally, I think, South African food retail is probably of the most fiercely competitive business in retail. And that hasn't changed. And if one be honest with yourself, you have to say if you've been losing market share, you will tend to get more aggressive. And then that brings some new dynamics. We also understand that the consumer is under severe pressure. So that's why we see this constant picking up every year, the contribution of promotional items to the overalls.

I mean, you've mentioned that in your presentation as well. What you then see as opportunity for cash and carry within that environment?

So, they're two very different questions, really. The one is about the urbanization.

Now, I'm definitely not going to be professing that I know what the future will hold. I can go on what WWF told us about And I think the year they said around 2050, I know that sounds a long way away, a long time away, that something like 90% of the South Africans will be urbanized or living around the big cities. So in that, I think there's also an advantage for the ShopRite group with the USAID model and the OK Foods model. I think those are, in particular, the two formats that will be able to survive a mass migration or urbanization in South Africa. And it is supported by a supply chain that has been built and where they have been included in this entire supply chain of ShopRite. To explain it very simply, what that means is it allows our supply chain to have the minimum of what we call dead kilometer, because we can do multiple deliveries on a single route for multiple brands and multiple formats. So that's the one. In terms of the cash and carry, you know we inherited it basically with a mass market action. Didn't know much about the business. We're still learning. Talking about percentages, if we could bank their percentages growth, we'll be able to pay a couple of bills for sure. It's doing exceptionally well, but of course serves a completely different market. So it opens up a different set of the market that we have not participated before or in, What's interesting is like 70% of the revenue for sales in cash and carry is online, so digital, also paid with our money market account which is then transaction cost free. So completely different model, we do deliveries which means small businesses where owner currently have to actually close his business to go buy some stock uh lose the trade at that time or leave his business in maybe an unsecure state they don't have to leave their business anymore they can get their stock delivered and they pay electronically without incurring any extra costs don't have to carry that amount of cash around so that's where the cash and carry is we're very happy with how the business have improved over the last two years.

Okay, I'll give you a break. I'll deal with one or two financial questions. So there was this around the profitability and the trading profit and can we maintain these margins? From the graphs that I've shown, we see that consistent trading profit within first half and second half. The first half trading profit is lower than the second half, if you also look historically. And we're aiming to, again, achieve that 5.9 to 6% trading margin. for the whole group. So I think that's the one question. And then secondly, there was just a question around capital and what are we going to do with the proceeds from the furniture transaction. I think we're clear on where and how we do our capital allocation in terms of how we reward our shareholders through dividends. I mentioned that we do not foresee any changes within our dividend policy. There's still a lot of opportunities within the business, the store opening program, and that's why if we look at that 7.9 billion rand investment back into the business, and we're looking at a lot of refurbs. Obviously, that's very important for us, how we maintain our checker stores as well as our shopper stores, and then also how we invest back into our franchise business. So there's still a lot of opportunities from that point of view, and if there's other opportunities coming our way, We do have a share buyback program approval from the board. We've communicated that in the past. It's about a billion rand per year. And if the opportunity is right, we will again also look at doing a share buyback.

So I think that's from a capital allocation point of view. At that one point, maybe, Anton, on the OK franchise business, if one just thinks what service...

corporate shopper can give to them if we change their tech stack just one example managing of the loyalty card and we can combine it with the current extra savings card and one can just imagine the cost savings that we can bring by combining that an extra volume and extra data more customer information etc so there's just about one example yeah more through the supply chain as well

Peter, I think let's go a little bit to strategy. You've actually unpacked it very well when we think about what 60-60 can deliver for us in the future. But, I mean, the question has come up again, and I think you're going to get it a lot today. It's just what do you see as the potential within the next, let's say, I mean, five years is too far out. Let's work two and three years.

I think if we, if you can recall the second, I think it was the second thing I saw, Peter, where we just put up the checkers, the ShopRite, the VAS, and then, of course, general merchandise, which is, for me, a fantastic opportunity untapped at the moment. The growth on the online sales currently and the demand on the online for general merchandise is incredible, and the ability for us to expand on a... assortment which we never carried and now we can carry in limited quantities I say for a lot of people who would have imagined that checkers will be the largest Dyson hair dryer seller in the country it is it is yeah unthinkable a while ago so if we add all of that and you just think about Our big pharma is. Of course, we've got our own dreams. But, for example, just imagine you leave the doctor's rooms and before you get home or by the time you get home, your medicine is already there. Let me just give you an example. So if you just start using your imagination, you will get a hundred answers yourself very quickly of what we can still do with the platform.

I think, Dina, just to your question around cash flow, what do we define as free cash flow? So it's our EBITDA, where we start off and then from our total operations. Then we take into account tax. We take into account our changes in working capital, also our maintenance capex. And that's where we got to the 10.1 billion rand. I think important to note is that there is a difference, or last year we had the same, in terms of how the cut-off worked with our trade payables. But that doesn't impact the calculation of our return on invested capital. I think the big move for us in terms of our return on invested capital came from our reduction as well in how we think about our effective tax rate. So I think hopefully that answers your question around that. Then there was just a question around the growth in DFs. I think it's important to note that we've also shared it through the result presentation is the impact of the discontinued operations. I think there was a nice slide in unpacking the various changes that we saw within the discontinued operations, then the impact it had on our DF's number, especially looking at the 2024 results. I will refer you to that slide.

And the point that you made, and I'm going to repeat that point, is that currently there's no counting into the HEBs for... supposed benefit of that sale because we know the profit being made currently in furniture goes into discontinued operations or held for sale and we haven't received the cash yet so we're also not earning any interest even if we just did that. I think it's just so important that in the modeling that you do that one takes it into account. 100%.

That's really all the questions. I don't know if you have maybe a closing comment around the health of the business and what we saw.

Yeah, if you push me for that.

The one thing I can just say, the results that you see today is not a story of one piece of business that's performing well or outperforming. This is, I can really assure you that all of our business units currently have got great momentum. It's not one piece that's outperforming. It is genuinely a combination of an entire business, as we are, that has fantastic momentum. If I can leave you with that, on a positive note, that it's not quickly something that's going to break and then our wheels fall off. The momentum is across the business.

And there's some exciting things to come. Thank you very much.

Thank you. Thanks to everybody. Thanks for joining us. We really try to emphasize on the points that really makes the difference and differentiate us from our competitors and what we've tried to put together over the last nine or ten years. And I hope somehow we landed some of the messages. You're welcome to contact us. You all know Natasha. If there's something else that you would like clarification on, please do not hesitate to contact us. But thanks a lot for your time. And good day to you all.