Pepkor Holdings Limited (PPH) Earnings Call Transcript & Summary

Friends and colleagues, welcome to the 2020 Annual Results Presentation of Pepkor, and good afternoon to all of you. We appreciate you making the time for this presentation. Once again, it's been a year with its special challenges and our challenges this year, like many companies throughout the world, has been affected by the COVID pandemic. And in our case, for a period of time, our businesses were not able to trade, and some of the businesses were unable to trade for even longer period of time than our main businesses PEP and Ackermans. Despite that, I'm very happy to say that we have produced what our papers that have been distributed declare, which I'm fully supportive of. And on behalf of the Board, we're all fully convinced that this is the right description. The company has done an exceptional performance under the circumstances, and has outperformed its competitors as evidenced by the market share gain. We have been able to improve our cash generation, to reduce our debt by a significant amount and overall, the company is in a relatively stronger position, well positioned for the period ahead. We have made certain strategic disposals, which improved the allocation of capital in the business. Altogether, it's a highly commendable performance, for which we are grateful to the management team and the staff who have worked tirelessly under enormous pressure and threats even to physical safety as a result of the virus. So something we are proud of, and we are privileged to have such a strong group of management and the amount of time spent by the Board and management in this past year to ensure this good performance has been truly outstanding. Before I hand over to our CEO, Leon Lourens; and our CFO, Riaan Hanekom, I would like to bring to the attention a very positive development for the period ahead, which is the new Chairman, who is taking over from me, Ms. Wendy Luhabe, who would be the Chairman for the next term of the company, a woman of exceptional talent, one whom I've known for a long time, and who brings a lot of experience and skill and wisdom to the Board of the company. And I look forward to working with Wendy in this new capacity, and I'm excited about the future of the company. With those few words, I hand over to Leon to talk about the company's financial results further. Thank you very much. Enjoy the rest of the presentation.

[Audio Gap] and welcome again to our annual results for the year ending 30 September 2020. Unfortunately, we can't do this in person yet. Hopefully, the next results presentation in 6 months' time will be in person. But for the moment, we're still using these platforms. At least by now, we are much more familiar with it than we were when we used it the first time, 6 months ago. So for today, we are going to look at the following -- follow the following order. Firstly, just look at the year in review. I'll be doing a very short introduction, looking at the highlights of the results, Riaan will then deal with the financial performance for the year, I will look at the segments or the different segments and how they performed and then a brief discussion on what is the outlook and opportunities for the year ahead. We start off with our mission and I specifically put this slide in because it is so appropriate in the current environment. And we say our mission is, we make a positive difference to the daily lives of our customers and the communities in which we operate by providing convenient access to everyday products and services at affordable prices. And there are so many words in that definition that aptly describes the environment that we're in today. It's about communities and taking our stores out to the communities, make it more comfortable for people to buy from us, for people to have better access to our stores. It's about affordability and creating prices and generating and engineering prices that are affordable for our consumer base. And I think that plays and will play a very important role in retail in South Africa going forward. But generally, it's about also the purpose that we all have of making a difference in the lives of our consumers by making their lives easier and better. So we, as a business, in each one of our divisions, we strive to fulfill this mission statement of ours, and we believe that the harder we work at making that a reality for our consumer, the better we will perform out in the market. If we look at the year in review, I mean, this is what we normally call the weather report, where you give all your excuses. But maybe not so much in our case this year. As you know, unemployment has increased. We're talking about the number of 2.2 million people that are out of jobs, more than they were in the past. These numbers obviously goes up and down, but the last number that we've officially received was a 30.8% unemployment rate, which in any circumstances are extremely high. When we spoke the last time, we were at 27%, which was already high in our opinion, and that number has now gone up to 30.8%. If we look at our target market and our core target market, which is women, then we talk about an even higher rate of unemployment in the region of about 51%. so not the greatest of conditions from that point of view. If you look at the GDP numbers, you can see a drastic reduction in GDP for this year, which is obvious because of the circumstances and a bit of a recovery next year. Consumer confidence, because of the environment, is obviously as low as it's been or lower than it's been for a long time, and obviously, also not the most ideal environment to work in. And then the COVID-19 outlook is still very uncertain. We're not sure how exactly it's going to play out and exactly what impact it will have on the economy going forward. There is a positive, of course, and that's the social grants stimulus by our government, and they've been putting money into -- injecting money into the system, which I think has supported us to counter some of these negative influences that I've just mentioned. If we look at the year in review and just a few highlight numbers. Firstly, 3.6% increase in revenue for the year. I think if somebody suggested in -- by the end of March, April, that, that is the type of numbers that we would be able to achieve, I would have thought it was impossible. So we are very happy. I think it's an exceptional performance under the circumstances. And obviously, together with that, there was a lot of market share gain. Decline in operating profit by 18.4% and in HEPS to 21%. I just want to mention that this excludes IFRS 16, these numbers, but those were the declines there. As you know, we lost ZAR 5 billion of sale in the time that sales that we -- in the time that we were closed. Our debtors costs were higher, and there were more provisions, IFRS 9 provisions. So that influenced our operating profit and it influenced our HEPS number to a large extent. On the cost side, I mean, all of us know that it was important to keep those under control. We also committed at the previous results announcement that we're obviously going to try and keep that as low as possible. We had a 3.4% increase on expenses for the year. That's on continuing operations. If we take out the building -- or if we include the building company, that percentage goes down to about 1.8%, which I think under the circumstances is a very credible number. For the financial year, we saved about ZAR 700 million compared to the budget that we had on expenses. We're also happy to report that our inventory came down. Our stockholding is quite -- is much lower, but not only much lower, much fresher than it's ever been, and that's very positive going forward because that creates a great platform for us from a buying perspective and a selling perspective going forward. That has also partly led to a cash conversion rate, which is exceptional of 136%. Obviously, the sales helped us a lot in that regard, expenses or the savings on expenses helped us a lot. The stock reduction, as I mentioned, helped us a lot and then collections and reduction in the book sizes that we have also helped. But Riaan will expand on that a little bit later on. This all had resulted in our debt position and gearing levels have seriously decreased, something that we're extremely happy with. And it's -- we were able to reduce that by ZAR 6.9 billion, and our total net debt position now at ZAR 7.1 billion. The cash generated in the past year was ZAR 9.2 billion, which I think was phenomenal. Lastly, maybe just as another highlight, we opened 230 stores despite the fact that we were in very, very challenging circumstances. Off the 230, 145 were PEP and Ackermans, and especially towards the second half, openings were more concentrated on PEP and Ackermans because of the fact that they've got robust business models, that they give us a very good return, and that will probably continue into the next year as well. I thought that it would be good also to give you a number or an indication of the market share gains that we achieved during the year because I think that was quite special. If you look at the cellular environment, and here, I'm talking about handsets specifically. There, we gained 370 basis points just since COVID started. And that's -- this is all measured on a 12-month moving average. And I think it's really remarkable to have been able to increase by that much. If we look at clothing, footwear and home, as measured by the Retailers’ Liaison Committee or the RLC, you can see that in the last -- or since COVID started, we've had a 240 basis point improvement in market share. I think both these numbers are remarkable under the circumstances and something that we particularly are satisfied with. That's just an introduction to you on the numbers. Riaan will take you through the full set of them, and I'll be back to discuss with you the segmental review and performance.

Yes. Good afternoon. We're going to start off by, as I did with the 6-month results, just spending a couple of minutes on the statutory results, including the impact of IFRS 16. As I raised during the 6 months results, the implementation of IFRS 16, obviously had a significant impact on our results because we followed the modified retrospective approach, which means you don't restate your previous year numbers. So it's really very difficult to compare your numbers to the previous years, including IFRS 16. Hence the reason that the bigger part of this presentation we're only focusing on pro forma result or excluding the impact of IFRS 16. So if you just look at some of the key outcomes, including IFRS 16, revenue, Leon already touched on 3.6%, that's obviously not impacted by the implementation of IFRS 16. However your -- or your EBIT growth or operating profit growth comes out 0.3%, which because of the reversal of the lease charge and the introduction of depreciation charge comes out at a higher or a better level than what you would see on the pro forma results, which is, as I mentioned, a more comparable result. Similarly, on the earnings per share and the headline earnings per share, the ZAR 0.80 on earnings per share is lower if you include IFRS 16 and what you would exclude IFRS 16 and the same on the headline earnings per share ZAR 0.62 coming out at a lower number of cents than what you had if you include or exclude IFRS 16. So just to confirm that again, as I mentioned, we implemented IFRS 16 this year. We followed the modified retrospective approach. Again, as we mentioned last time, because of the number of leases that we have and the impact that most of them are still in the early phases of the leases, being most of our leases being short terms, barring really the DCs, which is over a longer period, it does mean that it had a negative impact on our headline earnings per share because the reversal of the lease charge is offset by a higher finance cost and depreciation charge, which means that your bottom line impact on HEPS is negative to the tune of ZAR 0.128. If you, however, look at the different components, it does mean that you end up with a better EBITDA and EBIT number. EBITDA improving by ZAR 3.5 billion compared to pro forma and EBIT higher at ZAR 1.2 billion compared to pro forma. However, as I mentioned, the impact of the additional finance charge below the EBIT line has got a negative impact of ZAR 1.6 billion. The 2 big numbers that we'll now see on the balance sheet because of the introduction is you're right-of-use of ZAR 10.8 billion, your right-of-use assets, and then your lease liability of ZAR 15.1 billion. To take note of this year, we obviously had the impairment charge to the right-of-use asset because of the performance of some of our stores to the tune of ZAR 235 million. If you look at purely the impact of the introduction of IFRS 16 on your HEPS, you'll see, as I mentioned earlier, it's got a 12.8% impact on HEPS, meaning that if you look at the number before IFRS 16, it's a negative growth on HEPS of 21%. And if you include it, it's the 34% that I already mentioned earlier. To take not off, as you would see there at the bottom, the guidance that we gave at the beginning of November with our updated trading statement, we came in within those ranges that we communicated during that sense. So if I then move on to the pro forma results, as I said, this is more the comparable results. Needless to say, the impact of COVID-19 had a significant impact on our results, specifically at the top line. So the 5 weeks that we were closed meant that we lost an estimated ZAR 5 billion. So the fact that we could still grow revenue by 3.6% just shows what a phenomenal run we've had post lockdown in almost all our segments -- in divisions in the group. EBIT, unfortunately, the impact there of the increase in debtors costs and higher provisions, the impact of the higher provisions that we've had across the board in various areas of the business trying to counter the impact of COVID on the business and make sure that we take the full impact of that in this financial year, plus the further impairment of goodwill and intangibles has had a significant impact, not only on earnings per share, but on headline earnings per share. So operating profit down by 18.4% because of the reasons I mentioned. And earnings per share showed a negative number of ZAR 0.625, mostly impacted by the impairment charge of ZAR 4.8 billion. And headline earnings per share down by 21%, as I mentioned, very much in line with the 18% we're down on operating profit as a result of finance charge and tax very much in line with the drop in operating profit. If you look at all the impact that we had -- that we could pull the levers that we had available to pull to counteract the impact of those additional charges and costs, but also the drop in revenue, what are the steps that we took immediately. Leon already spoke about the expense savings. We were able to save close to ZAR 700 million against budget on the expense line. We pulled back CapEx by ZAR 320 million. Most of it was a result of stores not opening. Firstly, during the lockdown period, but also after that, we pulled back on the number of stores opened. And we reviewed all the stores that we want to open in other critical projects. As a result of that, plus the fantastic sales that we've seen meant that we generated a phenomenal 136% cash conversion, which means in rand terms that translate into ZAR 9.2 billion cash that we generated for the period. If you consider that with the book-build that we did at the end of June, where we raised ZAR 1.9 billion, the outcome of all of that meant that we halved our debt level from the end of March being at ZAR 14 million, dropping by the ZAR 6.9 billion down to the ZAR 7.1 billion, which is really a phenomenal achievement. If we then specifically focus on some of the bigger items that impacted the results, as I mentioned, the first being the impairment on goodwill and intangibles. So with the impact of the slowdown in economy and specifically the impact of COVID-19, as we do every year, we again calculated the necessary calculations for impairment on each of the goodwill, the ZAR 60 billion that we basically cover on goodwill intangibles on the balance sheet, and we also reviewed our WACC rate. Our WACC rate went up from 13.5% last year to 13.9%, mostly impacted by the increase in the risk rerate. And as I mentioned earlier, we really took a much more conservative growth on our long-term growth rates in our models to see what the impact of that would be on that goodwill intangibles that we carry on the balance sheet. So the first-line that it impact was the goodwill that was created in 2017 when Pepkor was listed, that was still the split between the old Pepkor International and the local business, being the ZAR 58 billion in goodwill intangibles on the balance sheet, went back and reviewed allocation of that goodwill and intangibles in 2017 based on an EBITDA method, and we determined that roughly just over ZAR 3 billion of that was relating to the PEP Africa operation and then Speciality and specifically Shoe City. So decision was taken after doing all our numbers that the full impact of our future view and the growth in those businesses meant that an impairment of just over ZAR 3 billion was necessary for those specific businesses and segments. On the Tekkie Town side, similar process was followed. We already saw a slowdown pre COVID on the Tekkie Town business, and we've also cut back on the growth rates there. And again, going through a similar exercise with an even slightly higher WACC rate on Tekkie Town, it was felt that it was necessary that ZAR 1.6 billion of the ZAR 2.2 billion goodwill on the balance sheet for Tekkie Town was necessary to do an impairment. On the intangibles for Incredible Connection, similar exercise. There's no more goodwill on the balance sheet for the JD Group. But the intangible, there's still a portion of intangibles left on Incredible Collection. So ZAR 103 million of that was impaired this year. So we then focus on the discontinued operation. So I communicated last year this time that the decision was taken to exit Zimbabwe. We did find a buyer at that stage to buy the business from us. And we completed that sales taking it through the competition commission in Zimbabwe just before year-end. So it is now the deal is completed, and it will not appear in the results going forward. Just to take note of, as I highlighted last year, during this presentation, there is an amount that needs to go from this currently in reserves, the foreign currency translation reserve that was released into earnings per share and impact that number, but it does not impact headline earnings per share. Similarly, on The Building Company, we made an announcement that we've agreed with cash build for the sale of that business. We estimate that if everything goes according to plan, that deal will go through the competition commission towards the latter part of the first half this financial year. The good news, even the fact that The Building Company was more severely impacted than probably most of the divisions in the group, they still delivered a breakeven result on an EBIT level for this year. However, taking the proceeds into account, the total proceeds that we'll get from cash build for the sale of the business and comparing that to the net asset value of the business in the group meant that we've achieved -- or there's a loss on the sale of this asset, meaning an impairment of ZAR 172 million in the income statement. However, to take note of, depending on the trade in the new financial year, there is obviously a possibility of a further loss in the new financial year until the business is sold. If you look specifically at the revenue growth, breaking that up segment. So as I said, top line overall, taking us from ZAR 61.5 billion to ZAR 63.7 billion, the 3.6% growth. Clothing and general merchandise, happy to report that PEP and Ackermans still showed a positive growth of 2.6%. However, unfortunately, Africa, firstly, because of the closure of Uganda, and also the closures and the lockdowns in various other countries, various stages and the negative impact of the currency devaluations, those countries had a negative growth, similar to Speciality, mostly impacted by the performance of Shoe City and John Craig. And then still at least there was a positive growth from Tenacity. But overall, only a growth of 1.4%. In the Furniture segment, that 1.4% that we had there, mostly the result of the acquisition of Abacus, which is obviously not comparable to previous year. If you exclude that, it was a negative growth of 3%. For between the retail side and the Connect book, but then the star performer, really still the FinTech division, mostly driven by FLASH, which was not impacted by the lockdown period and was able to still trade right throughout the lockdown period, achieving growth rates of close to 25% on the revenue level. Capfin, we obviously closed the tabs just before lockdown, and we got back on credit granting, which meant there was just a small revenue growth on the Capfin side for the period. To take not off on the right-hand side, the split now between the 3 segments, clothing and general merchandise making up 72%. And a small drop compared to the previous years, mostly, as I mentioned, because of the phenomenal growth in the FinTech because of FLASH where that contribution has increased. On the gross profit side, we have seen a drop of more than 1% compared to last year. This is mostly and primarily driven by the change in product mix. We saw after lockdown a significant increase in demand for all cellular products, specifically in PEP and Ackermans. We also saw an increase in demand for electronic products in the JD side, a lot of it driven by the online sales. Those all obviously come at a lower margin or lower gross profit and what we have on normal clothing and other and furniture products. Second, we're also happy to report that on a like-for-like store basis, markdowns was in line with last year. However, with the closure of a lot of stores in Africa, Speciality and also in the JD Group, meant that we had to clear and give discounts to clear a lot of those stock to get out of the business, which also had an impact on gross profit. And then lastly, as I mentioned earlier, although our stock levels are at a lower level, we still decided to take the very conservative approach and still increase some of our stock provisions for the possible impact in the new year, which meant that, that also impacted the drop in gross profit. Other income, down 17% this year. Firstly, that was driven in the previous year, we still had a Capfin distribution fee in the numbers of ZAR 81 million that was not in. Also significantly impacted also by the lockdown period with a lot of large component of our commissions is obviously bill payments, DStv payments, money transfers, which couldn't happen during that period. Post lockdown we also initially saw a bit of a drop in footfall, which has now picked up, but it did mean that we did not really see a growth on that line item. The positive news is on the insurance side, there was quite a nice growth, specifically our insurance funeral policy sold in the Ackermans business, meaning that counteracted some of that drop and still achieve a ZAR 735 million other income. Low cost of doing business, Leon spoke about it. I mentioned earlier, we obviously took out the expenses that we could in different categories and different businesses. Unfortunately, because 70% to 80% of our expense base is really fixed, really driven by property costs and salaries. We only had so much that we could take out. But we still manage specifically on the rental line and also to extend on the flexibility on the salaries line to cut back quite a bit of that cost, achieving that expense against budget of ZAR 700 million saving. If you, however, take into account that we did have to spend an additional ZAR 92 million this year, which was not budgeted for on COVID-related cost, that actually meant that we save close to ZAR 800 million versus budget on that line, giving you the growth of 3.4% and cost of doing business of 27.4%, which is still best in business as far as we're concerned. Debtors cost. Huge impact this year. So firstly, to take note of that it's not comparable really with last year. And the reason for that is, we only started the Capfin business at the end of March last year. So there was very little bad debts in the previous financial period for Capfin because most of your bad debt is only written off on the 6-month product after 4 months, and on the a 12-month product after 8 to 9 months. So we only saw the full impact of that in this year. Similarly, on the JD side, where there was also very little bad debts last year, and this year, being the full year, we only started to see some of those bad debts coming through. But with our conservative outlook, and as I mentioned earlier, the significant increase in provisions across all 3 our books, it has meant that our debtors costs went up by 48% and this ended up just short of ZAR 1.7 billion for the year. If you break that down a little bit and between the different books, all 3 of these books, I've said, pre COVID, we already slowed it down. We really took certain risk bands out of it. We basically stopped all credit granting, specifically after COVID, it's still on the Connect book and the Capfin book. You would have seen the number of active accounts on all 3 of the books dropped from last year. This has obviously resulted in a significant impact on sales contribution. We traditionally, between Ackermans and Speciality, it was at 17% of sales was done through the card. This year dropped down to 15%. On the JD side, where last year, 19% of sales in the JD Group was done through credit, this year, it was only 13%. The positive thing is because the majority of the group is still a cash business, you can see that 85% of our sales are done via cash, that has really assisted us through this very difficult period and part of the reason why I think we could see these phenomenal growth still in sales. Secondly, to take notice on the lay-bys. We have seen a shift this year from credit to lay-by in both the Acumens business and in the JD business, where last year it was 7%, it's up to 8%, which I feel further assisted us in seeing these growth numbers. So this all fall, obviously, has an impact on your operating profit growth number, which in the clothing and general merchandise was a negative number of 15.6%. As I mentioned earlier, mostly impacted by tenacity with additional provisions and bad debt, but also by the below-par performance in Africa, the closures we've had in Africa and the currency and to a lesser extent, on the Speciality business as well. Happy to report on the PEP and Ackermans business, they did not fall far -- short far from the 2019 profit numbers. JD, similar to Tenacity, very much impacted by the increase in the provisions and bad debts in Connect book but also JD was the one segment in the group which was closed for the longest period with their furniture stores only opening again from the 1st of June. And the sales mix that I mentioned earlier, also having an impact on the bottom line. On the FinTech side, although the FLASH business grew their profit in line with their top line, it was again the Capfin business that was impacted by the cutback on credits, the additional provisions that we increased and the bad debts coming through this year, which we did not have last year, meaning it was a negative growth of 5.8%, taking us that overall operating profit dropped by 18.4%. Finance costs. Very happy to report that we saw a decrease in finance costs. If you remember correctly, after the first 6 months result, we still saw an increase in finance costs. The fact that we've reduced our debt significantly over the period plus the drop in interest rate by 300 basis points has really assisted us to reduce our finance costs from ZAR 1.6 billion to ZAR 1.4 billion. And I think the very good news is also we estimate for next year if the debt levels remain where it is and the interest rate we estimate at least a ZAR 600 million saving on this line in the new financial year. Reduction in inventory levels, huge impact on the cash generated. I think this is where the merchandise teams in different operating companies did a phenomenal job in ensuring that, although we reduced our orders, we did probably not reduce it as much as some of the other retail business in the country, which meant that when post lockdown, there was additional demand or pent-up demand, I think we really got the full benefit of that demand and see the huge surge in sales, which did meant we end up on a lower stock level, but the positive news is, at least we've been able to recover most of the inventory levels post year-end. And as I mentioned earlier, on top of that, we've also increased our provisions to make sure that if there is a further impact in the new financial year of a slowdown or a second wave, we would be able to accommodate in our results. Credit books, as I mentioned, pre-lockdown already, we really cut back on credit granting and stopped it effectively during lockdown in all the businesses. That trend has continued, plus post lockdown, really following a very conservative approach on credit granting, really cutting back on granting of new loans and even putting caps on the Capfin business on the maximum amount order book can grow to. That means that we've seen a significant improvement in cash collections in those businesses, which has helped us to really achieve those cash generation numbers that you've seen. However, as I mentioned earlier, we did take -- make the decision to really be very conservative on our provision levels and try to take a very conservative approach for the near view of what the full impact of COVID on economy could still be, and you would have seen a significant increase on provision levels in all 3 of the different books. So to summarize, from a cash generation perspective, where we normally -- because we still open a significant number of stores every year, would see a negative impact on working capital or an increase in working capital, this you'll see there are working capital requirements because of that stock reduction and the reduction in the credit books, we've actually had a positive impact on working capital of ZAR 1.3 billion, ZAR 1.4 billion. And as I mentioned, the net number on a pro forma business, we generated ZAR 9.2 billion in cash for the period. On the capital structure, 2 interventions this year, the one happened in March, where we launched our ZAR 10 billion DMTN program, very successful launch, 4 time oversubscribed, ZAR 800 million on the 3-year term and ZAR 200 million on a 5-year term, with very competitive rates. We have, for now, because of the variability and uncertainty in the bond market, just decided not to raise further bonds now, but we will review that again early in the new year because our strategy is there still that we want to diversify our funds and make sure that we include not only bank funding in our portfolio. The accelerated book-build that we did in a very short time at the end of June, raised ZAR 1.9 billion, very successful, again, 5x oversubscribed. And the ZAR 1.9 billion that was raised from that was used to settle our debt and specifically, ZAR 2 billion of preference shares debt that we had on the balance sheet. So if we then move on specifically to our net debt. As I mentioned earlier, net debt down to ZAR 7.1 billion compared to the ZAR 14 billion we had at the end of March. Also, we completed a refinance process during the month of September very successfully, where we refinanced ZAR 6 billion during that period. The result of that was also that we were able to negotiate with the banks an increase in our covenants, so where our covenant was previously 2.7x net debt to EBITDA, we've increased that to 3x, and interest cover was from where it was previously 4x, it dropped to 3.5. The most important item, however, to note is when we did the refinance in 2018, I, at that stage, communicated, we really wanted to bring our net debt-to-EBITDA down to 1x in 3 years' time, that is by 2021. The positive news, you can see there is we've already almost achieved that this year already. On the right-hand side, if you just take note of on the opportunity of the refinance also that we were able to move out the repayments that was necessary in 2021, the ZAR 6 billion, to September '23. And so it does mean that we've now got the freedom that if there is a second wave of COVID, there's no immediate debt that we have to repay in the next 2 financial years. Then lastly, to summarize, although from a pure profitability, there were numerous things that impacted this year, obviously, because of the impact of COVID from a top line and from an expense perspective, the very positive news is that we've left the balance sheet in a much stronger position than when we were 6 months ago. The refinance that we completed meant that we've now got additional headroom on the covenant. The risk that we've managed very well meant that our collections is very good, although the provisions increased, that resulted in very good collections. The gearing that we've reduced and the good collections around it meant that we've now got that additional flexibility that if a second wave of COVID hit, we are able to withstand a lot better. So although overall, meant that results for this year is not that great, meant that we have set ourselves up that the businesses can now focus in the new financial year on pure trading, and we've got a much stronger balance sheet, putting us in a much stronger position. Thank you very much and back to Leon.

Thank you, Riaan. I'll take you through the segmental performance. That's the 4 segments as we have traditionally segmented the business and the operations. The first is probably from your point of view, the most important part, and that's PEP and Ackermans that I'll refer to. The good news, and Riaan mentioned it, a 2.6% increase in sales for PEP and Ackermans. As you know, PEP and Ackermans is the biggest part of the business and extremely important that they perform well. On a like-for-like basis, almost got to the last year figure, which is 0.5% below, but I think really an exceptional performance by the 2 teams and the 2 businesses, and we're very happy with the result there. From a retail space growth point of view, we opened 145 stores, which is about a 2.5% contribution. And yes, happy to report that the new stores are doing well. We really believe that these 2 businesses have a really robust financial model. And that even in the current circumstances, it is a great opportunity to still expand on the footprint of the businesses. We did cut back a little bit towards the second half of the year for those businesses and for expansion. And that was just based on taking tougher hurdle rates in the current circumstances. But in all the cases where we did open, we look to be on track to beat those hurdle rates quite comfortably. You'll see the inflation number there of 9.4%. That looks quite high. As we explained at the interim results, that's due to the rand-dollar exchange rate as it was at the time when we bought for these seasons that are relevant here. So it's basically your costing rate that changes because of the rand-dollar exchange rate. We haven't got the benefit of the rand strengthening yet. That will come in future seasons, or we'll hopefully see that in future seasons. But that's the number for now. A lot of these numbers people compare it, but it's very important that one uses the same comparative numbers when you do and compare it to the rest of the market. There are different ways of measuring it. This is in -- ours is based on inflow margin or -- and as I said, a lot depends on what the costing rates for your purchases were. When we look at the sales of PEP and Ackermans, and this will give you an idea of how we performed after COVID had started. You can see the numbers there, 20%, 13%, 6%, 10%, those are like-for-like numbers for the period from May to September. For the period in total, it's a 0.5% or that stuff. For the full year, we had a 0.5% decrease in like-for-like sales, but you can see there a 13% increase in like-for-like sales if you look at the number from May to September. If you refine the number even more and you exclude a week where we didn't trade at the beginning of that period, the number actually reflects a 17% year-on-year growth for these 2 businesses for the period of the 3rd of May to September. I know that there's sometimes confusion on the 2 different numbers, and that's basically on the -- our sort of internal measurement of a month, which is a week longer than the period that we measured here, and that's where the difference is. So I hope this makes it clear for those that weren't clear the previous time. If we look at PEP in isolation or PEP as an individual entity, you can see that we opened 83 new stores. Now under normal circumstances, we open in the region of about 115, 120 PEP stores in a year. So it's come down. As I said, we slowed down a little bit not only on our side but also from a landlord side, there will -- some of the properties that we were supposed to take occupancy in did not materialize, but we're quite happy with the 83 stores that we did open. And as I say, we'll keep on opening going into the new year. We believe that in next year, we'll probably be able to open north of 100 stores, which I think under the current circumstances, is a great achievement, but also a great opportunity because I think the consolidation of the market that we're going through now presents good opportunities for both PEP and later you'll see in Ackermans. From a pricing position, I spoke about the inflation. So it's very important that we keep an eye on our best price leadership, as we call it. And on a monthly basis, we compare our prices with everybody else in the market. And in PEP, you will see there that 97% of all products in PEP is still cheaper or equal to prices anywhere else in the market. We are now making our targets even tougher by comparing it to the market -- by trying to be 10% better than our position in the market, but we will report on those numbers in the future, hopefully. In terms of the pricing gap, where we've got a group of comparative for our position stores that we compare to the PEP prices, the difference is more or less the same as they had been in the past, which is 28% on price, and we're still quite happy. So despite the inflation, we're still very happy with the price positioning of PEP, which is obviously the biggest part of their competitive advantage in the market. We are also happy to report that we could still appoint people under these circumstances. The fact that we could open stores or still open stores, meant that we appointed 680 new people in this business, which I think under the current circumstances, is something that we're very proud of. Hopefully, we'll continue that -- well, as I said, we'll continue that going into the new year. Just for interest sake, for handsets sold, that's cellular phones that we sold. We sold 10 million in PEP, which is a phenomenal number, quite a big increase on last year, as Riaan pointed out. So we're quite happy about what we achieved there. 55% of those phones were so-called smartphones, which just shows you that the customer is moving more into a digital type of environment. We spoke about PAXI in the past. PAXI is our parcel delivery service or transfer service. When we first started speaking about that about a year ago, we had a 5-year view, and in those 5 years, we wanted to achieve 10,000 parcels per day target. And I remember saying at the time that 10,000 parcels per day would be quite a challenging target in 5 years' time. While it's now 1 year and 1.5 years later, and we're already doing 10,000 parcels per day on -- for many -- for quite a few months. So it was obviously helped by the circumstances during COVID and also the circumstances in that specific environment, but still, something that's really growing fast, and a great way to leverage from your distribution and store network. We go on to the Ackermans business. 62 new stores. Now normally, they open between 70 and 80 stores a year. So again, slightly down in that number, but we're still very happy with the 62 stores that we did open. They're now up to 861 stores. Something that they're very proud of is the fact that they've now been voted 8 years running by the South African consumer as the #1 retailer in children's wear, which is a fantastic achievement. Not only that, I think, for the past 8 years, if you look on an average basis, then they were probably also financially the best performer in the market of all apparel retailers. So the business is really doing well and really providing value to their consumers. From lay-by perspective, and Riaan also referred to it, 17% of their sales are lay-bys, very much in line with what it would have been in previous year. There was a slight increase in that. Ackermans women's stores. We believe that the Ackermans offer -- value offer to their customers can be more extended to ladies and women. And they've started opening stand alone stores. We've reported on that before. We're now up to 26 stores and happy to report that those stores are doing quite well. They are profitable. And there's still a lot of work to do on that, and we've got to refine the model, but I'm very positive about growth in this business going forward. Also, people sometimes forget that Ackermans are also big in cellular and in handsets, in particular, 2.5 million handsets sold during last year. The handsets that they sell are more smartphones than PEP would sell and also a higher average price for the handset, but a huge growth this year that they achieved through the sales of handsets. And then lastly, just on credit sales. Their credit sales contribution had come down from 19% to 17% for obvious reasons, as Riaan had pointed out. But that still plays an important part in the Ackermans business model. PEP Africa. PEP Africa had a particularly challenging year, very inconsistent in terms of the countries and how COVID was handled from country to country, very difficult to make any comparison because lockdowns were at different times and for different periods of time. But generally, I mean, a tough year. As you can see from the numbers. You can see there, minus 7% on sales growth in constant currency. Now normally, we show at least a positive sales growth on constant currency. This year, we couldn't achieve that because of COVID mainly, of course. And then on sales growth in actual rates, minus 16.2%. The guys in the Africa team realize that they will have to make their business model more robust to deal with these -- with this volatility and fluctuations that we experienced in Africa, and they were able to cut 20% of the costs out of the business during the past year, which I think was a great achievement. Going forward, obviously, we hope that the cycle will turn and that, part of that, we'll be able to achieve positive sales growth again. I have to say that for the last few months of the previous -- of this financial year that we're reporting on as well as the first few months of the new financial year, the sales have increased -- or significantly above what we report here. So there are positive signs, and hopefully, that will continue. In terms of the number of stores there, you can see that we still have 301 stores. We're in a consolidation phase. We closed 23 stores in the last -- in this financial year, and we'll probably close a few more in the one going forward. That's part of our consolidation in Africa. We closed the operations in Uganda. When we opened Uganda initially, it was almost sort of the first footprint that we wanted on the East Africa project or expansion project. From what we've learned in Uganda, we decided not to continue with that for now and rather be prudent in terms of our expansion in Africa. The Uganda operation were only 13 stores. So it's not a big part of the business. We just didn't get the sort of turnovers that we would have liked in that country. And also from a supply chain point of view, very difficult and quite expensive to reach there. So consolidation in this business, but the management team has done a great job in making the model more robust and hopefully, with some support from the economies in those countries will experience a better year. One has to remember that these economies in the African countries are very often 1 commodity economies. And if those commodities do poorly in terms of their pricing, then it leads to economic difficulty, and that's what we're experiencing here. If we look at the Speciality business, just to remind you, the Speciality business is there to -- for us or for Pepkor, to increase their market share in the adult departments and categories of apparel. And we basically built the central infrastructure that serves a lot of these smaller subscale brands. The central infrastructure then subsidizes the cost in those businesses. And hopefully, that helps us to bring or to make those brands more profitable and bring them to profitability quicker. You can see there, 3.6% decrease in sales for the year. We still had 829 stores. The same as in some of the other businesses, there was a consolidation that took place here. And especially towards the second half of the year, I mean, we looked at the profitability of stores. And in the process, we closed 35 stores. On a like-for-like basis, 4.6% reduction in sales. Then we also decided to dispose of the John Craig business. The John Craig business has been in our fold for quite a number of years now. We've just had difficulty into growing that business. It's a declining market, the formal menswear and quite expensive brands, where we try to expand to our own label, and they didn't work out so well for us. But for a shrinking market, we've decided to dispose of the business. At least in the process, we'll be saving jobs in the region of about 500 jobs that we'll be saving by selling the business. And with 1 or 2 conditions still to be fulfilled, that business should be disposed of by January of 2021. In this type of -- in this Speciality environment, online sales are becoming more and more important as one would have realized and seen in many of the retailers' remarks and in their results comments. The same for us. Our online strategy actually starts, from a clothing and apparel perspective, starts in the Speciality business. We have 2 brands, that's Refinery and Shoe City that already have online sales, Refinery for a bit longer than Shoe City. Refinery's performance on online has been quite positive for the initial stages, and we're quite optimistic about what we can achieve there going forward. Shoe City still very new. And hopefully, we'll get the same traction there once it's had time to establish itself. From a branded perspective in Speciality, maybe just a quick update on Tekkie Town. The Tekkie Town business, we closed a few stores that were not profitable. As was explained earlier, the footwear market and especially the sort of more premium footwear market, had a bit of a difficulty in the period up to lockdown. And as you know, there was an impairment on the business. I'm happy to report, though, that after lockdown, our sales in Tekkie Town have been relatively good, and we've been able to bring the stock levels down, which was one of the main sort of challenges that we've had in the business for a while now. So we're quite optimistic about where Tekkie Town is at the moment, and the platform is created for good growth going into the future. As far as the Refinery is concerned, we're very happy with the performance there. The business is well profitable and still growing strongly. And I think there's a lot of potential left for that brand going into the future. Shoe City had a tough year. Three main reasons why it was a tough year for them. The first is that there was a significant decline in the purchase of formal shoes. As you can imagine, less people going to offices and to work, and that's seriously impacted on the business. The second was that they also have a big component of school shoes that they sell. Obviously, they missed out on a lot of that due to schools not reopening and having inconsistent sort of return dates. And the third is that a lot of the Shoe City stores are in shopping centers, and obviously, the shopping centers and malls were more influenced by COVID than others. So those 3 aspects are contributing to the fact that Shoe City had a bad year, but we're quite confident that, that will be turning for us. We already have seen positive signs for Shoe City. And hopefully, we'll see that going through the entire year going forward. From a Dunns perspective, the previous time that we spoke, I think I said that Dunns hasn't been profitable for a number of years. I'm very happy to report that Dunns is profitable or was profitable during this past year, despite the fact that we went through COVID. So it's a very positive performance. I think the fact that we've got a good footprint here of 200 stores, if we get that model right, and we are obviously now in the process of getting it right, if we get that model right, we can look forward to good profits coming from that business. And then the last one is John Craig, which I've already said, we've decided to dispose off. If we look at the sales performance of the Speciality business, after COVID, here, you can see it from the month of May until September. For the year, they were minus 5%. But for the period May to September, they had a plus 11% like-for-like growth, which I think is very, very good. And if you take the total, if you add the extra -- or if you take out the initial week, that is non-comparative, in other words, from 3 May to the end of September, we're talking about a 16% growth for that period, which I think is exceptional and something that we're very happy with for this business of Speciality. The next segment is the furniture, appliance and the electronics businesses and that's basically the JD Group, as you know by now. Revenue growth in the business of 1.4% but on a like-for-like sales growth basis, you can see there minus 1.6%. And if one takes into account that they were closed for a full 5-week period and thereafter could only do on sales for another month, then the minus 1.6% on like-for-like sales is actually a very good number, in my opinion. I spoke about online sales previously in the apparel markets. In this market, obviously, there's a greater propensity to buy online. And here, you can see that in the CEAD business, now CEAD would be Incredible Connection and Hi-Fi Corporation, in those 2 businesses, we had online sales to the value of 7% of total sales, which I think is a very good number and really sort of a center of excellence for online sales in the Pepkor Group. The credit mix, Riaan mentioned it, reducing from 19% to 13%. So the fact that our sales numbers are looking relatively good despite the drop in credit is really a remarkable number, and I'll show you shortly what the numbers or the sales numbers were for the period after May. From a space growth, again, here, we consolidated. As you would know, it was quite a marginal business, and there were quite a few unprofitable stores that the guys are taking out and consolidating. So they closed 67 stores in this segment during the year. That's a 9.2% reduction in retail space. And again, I think going -- looking forward, creating a good platform that we can grow from into the future. Then also, we acquired Abacus during the year. That's basically to supply insurance for the credit customers of the JD Group. And yes, that's working well for now, and as Riaan mentioned, contributed to the revenue of this division. From a like-for-like sales growth perspective, here, you can see the numbers. And here, we took the number from June until September because that was the period that all the stores could open again, except for the online trading. So you can see that on a year basis, minus 2% for their sales. But for that June to September period, 25% like-for-like growth in this business, which is remarkable. A lot of that, obviously, Incredible Connection and Hi-Fi Corporation, where we had the benefit of people working from home, needing computer equipment, needing more home appliances and electronics. And you can see the really remarkable and great number for the business. Again, last year, we said, now we've got the business profitable. And unfortunately, this year's COVID was a setback for the business and especially the provisions that we had to take for the credit that we have in the business. But I believe that the business is well positioned for good growth in the future and good profitability in the future. We look at the FinTech business. And firstly, the FLASH Group, as we call it, 194,000 traders now in the group. As you can see, quite an increase there as well. That is despite the fact that we've actually got a better base now or more quality base than we had in the past. So that means we grew the base in numbers, but also in quality, which contributed to the growth in the business. You'll see there that there was a 25%, almost 26% growth in the virtual revenue, which is a very, very positive result. As you know, this business didn't close over or during COVID. So that helped us, of course, to achieve that number. And yes, we're quite very -- or very happy with what the team has achieved. Daily transactions, I just thought I'd put that up to you for interest sake, but I mean, 4.5 million daily transactions. So it's a great system that creates great comfort and convenience for customers that are in the informal sector and people that are at home that don't have to travel to formal stores to do some of their purchases. As you know, a big part of the business is selling airtime and electricity. That amounts to about 53% of the turnover -- sorry, 57% of the turnover, while about 43% are other products, and the other products are mostly financial services, bill payments, et cetera. So the business is not only airtime and electricity anymore, but a much bigger suite of products and still a lot of growth potential going forward for the business. 13,600 CoCare vouchers were issued from the business. Now CoCare vouchers are vouchers that can be given to anyone. They can then use those vouchers to shop from spaza shops in their communities, where there are FLASH devices. So we started the CoCare project as part of the COVID actions that we had to try and get vouchers and get funds to the people that are really in need. And the project is working well. More than ZAR 40 million has been -- has flowed through the CoCare voucher system. So that's money that we get from benefactors that then denoted, we then distribute it through the CoCare voucher system and those recipients then go to the spaza shops and buys there. What it also does is it keeps the money in the community because the money goes towards spaza shops. Again, I think it's something worthwhile from several perspectives that really helps people that are in need and helps the local economies in the informal sector. The FLASH guys also have a product called 1ForYou, which is basically an aggregation of goods and services. It's a tender type that you can use to buy products online, which we think, for the future, is going to be a very important thing. So consumers can basically buy a voucher and then use a QR code or a pin to buy products online. And those are customers that don't have credit cards, et cetera. So it's a huge help for them to become part of a more formal economy going forward. As far as Capfin is concerned, Riaan already mentioned that we've pulled back on the granting of credit in the business for obvious reasons, of which the uncertainty has been the main one. Also as part of our sort of consolidation year, we've -- we had -- in the past, we had about up to a 10% of 24-month loans. We've now cut back on those and focusing all our retention on the shorter-term loans, which are 6 and 12 months and even more towards the 6 months. So again, the consolidation of the business and being quite conservative about how we approach this environment at the moment. From an approval rate, only 50% -- or we've reduced the approval rate by 55%. And so 55% of Africans for loans -- 55% less of them of those Africans get loans approved. Again, that's part of the management of this environment. Our provision levels, we increased from 15% to 26%. Again, a prudent and conservative approach. We've also made the business more robust by consolidating some of the businesses and consolidating back-office functions, especially between Tenacity and Capfin. And in that way, obviously, increasing the returns, hopefully, in the future that we'll get from a business like Capfin. The Building Materials business. As you know by now, we've decided to dispose of it. It's going through the process. We -- and cometh the moment, and we think that the -- this business will be -- or this process will be concluded by February, March next year. But just on the Building Materials business, we're very happy with what we've achieved there. You can see the sales growth looking very negative. The Building Materials business was closed for longer than 2 months. And the construction industry, as you all know, was closed for longer than 2 months. So they were much more impacted by the environment than the apparel business and the furniture business was. So you can see the like-for-like sales there also a negative of 11.3%, but I'll show you the numbers now that over the last few months, we've actually been able to get positive numbers out of this business again, and we're quite happy with the progress that we've shown. Again, a lot of consolidation that had taken place. I would have explained to you on previous occasions, we've reviewed the whole strategy of this group of businesses compared to what it was in the past. We've consolidated some of the wholesaling businesses in the group. And we've -- the guys -- the management team created a new sort of strategic roadmap, and we believe the business is in a much better position than it was a couple of years ago. We've also managed to improve margins in the business. That's been mostly because of centralization of certain functions and especially centralization of the procurement function. There's still a lot of upside there. We've just started. It's scratching the surface. But again, as I said earlier, I'm very happy with how this business has developed over the last few years. And I think there's a great future for the business going forward. If we look at the sales, as I mentioned here, they only really opened in June and not May like the other businesses. A very slow start. And you can see there minus 1% in June, then going to a positive of 5%, minus again and 7% in September. October was also a good month for them from a sales point of view, a like-for-like sales growth point of view. So the business really on the up and good prospects there going forward and if there are additional infrastructure spends in the economy, I think they'll benefit from that hugely. So those were all the segments. If I can just provide you with a little bit of an outlook going into the next year. And just to confirm our strategy, and it's important that we just confirm this, especially during a time like now when it's important that you -- that the businesses remain focused and have the right targets. Firstly, our products, and that's about providing wanted products and services, essential type of products and services, replenishment type products and services, I think that's helped us to achieve the results that we have, and we've got to continue and make sure that we provide those products and services to our customers and some new customers that are -- that might decide to shop down to Ackermans, PEP, et cetera levels. From a price point of view, again, you can't be in discount and value if we don't have a great pricing strategy or execution of a pricing strategy and affordability in today's market is becoming more and more important. And therefore, the focus on price will remain there as it has been in the past. And then from a convenience point of view, still, we have to keep opening stores. We take our stores as close to our customers as we possibly can, making their lives easier and better. It's great to have in PEP and Ackermans, so just to use that as an example, a very flexible sort of property model where you can open stores, whether they are 200 square meters or 2,000 square meters, we have the ability to run both, and that's a great competitive advantage to have because you can really go anywhere in the market and open stores there. And then lastly, from a strategic point of view and integrated as part of our total strategy is our leadership and culture. We've got great leadership in our business that has carried us through this difficult COVID period and really proved what they're worth. And from a cultural point of view, strong cultures per business that they could rely on when things were really tough. Looking at growth drivers, I thought I'd just give you a sort of overview of what the areas are that we're looking towards to create growth for the future. I shared some of these with you the last time that we spoke. But again, maybe just to summarize and go through those different growth drivers. Firstly, expansion. We've got to keep expanding. That's retailer's bread and butter. But we've also got to expand and invest, obviously, prudently and in businesses that give us good returns. That's why we're consolidating to a large extent. In terms of our expansion, for the coming year or for this new financial year, expansion will -- mostly organic growth will mostly be in PEP and Ackermans with very little in the other businesses. But we've also got to look at where else can we go to? What other businesses are there in South Africa that we could look at to create growth for the future? And obviously, we've also got to look at even abroad whether there are businesses and opportunities that we could capitalize on during these difficult retail and economic times in the world. So expansion stays important for us. Our balance sheet looks a little bit better now, so -- and that will help us going forward to utilize the opportunities that there might arise in the market. From an adult wear perspective, and that's where -- what I mentioned earlier about Speciality, where we want to use Speciality as a springboard to create more growth and more market share in the -- and capture more market share in the adult wear market. We made 2 very small acquisitions in the past year of S.P.C.C and Code, which are both male brands and -- but more contemporary brands. So it's a bit different from the more traditional brands like John Craig. We're quite excited about the potential that these 2 brands provide us with, and a lot of work is going into the growth of those 2 brands going into the future. So quite excited by that, but there's also other initiatives in the adult environment. In Speciality specifically, we really believe that Dunns can play a role there to help to create growth for us. And then we believe that Refinery is really a top business that also has a lot of growth potential. If we look at the types of formats, and these are most of the formats that we create from the current big businesses that we already have in the group, like PEP and Ackermans, the format -- some of the formats, just some feedback on them. Dealz is a format that we've been talking about for 2, 3 years now. It hasn't been -- we haven't achieved the targets that we've set for ourselves in Dealz. It's only 15, 16 stores at the moment. So we haven't grown it aggressively yet. We're first trying to knuckle down the business model that we want to use there. We've got new leadership in the business that are very experienced, and we believe can take this business where we believe it could be in the future. So I still believe that for this discount variety type of business, that there is a good market for it and that we'll capitalize on that market. It's taking us slightly longer than we would have hoped for, but that often happens. But I believe that strategically, it's the right sort of investment to go into. And hopefully, we'll be able to get good results soon. Once we get good results, we can obviously expand much quicker. PEP Home has been a brand that's been with us for a while, but I thought I'd just mention it again because that's been -- it's been growing quite aggressively, or we've grown it quite aggressively over the last 2 to 3 years. It's performing very well. At the moment, the whole retail market is conducive to the selling of home type of product. And we've also capitalized on that, and that's given us the sort of support that we need to grow even faster in this brand. And then Ackermans Woman, you can categorize Ackermans Woman as being part of the format expansion that we have or part of adult wear expansion. We have 26 stores there, as I mentioned earlier, and has been successful thus far being profitable, and the Ackermans team have really driven it quite well. And we are confident that we can grow this into a much bigger brand in future. We're taking it slowly as we work on refining and perfecting, so to speak, perfecting the model for the future, but lots of potential in Ackermans Woman. From a FinTech point of view, I mean, it's about creating -- for us, it's about creating a digital ecosystem where we can serve the informal customer, but also serve a customer that will be more digitalized or digitized in future. We believe that there will be a slow movement over to the digital platforms and arenas in the years to come, and we need to be ready for it. Already, we have the FLASH business there that's doing exceptionally well. But that's also the perfect platform to use, together with the other assets that we have in our group, to create an ecosystem that really will support the informal trader and -- but even to a much larger extent in future, even the formal part of the environment. So again, lots happening there in creating that FinTech environment, and we are very positive about where that's heading in the future. PAXI, I told you about a great example of how you leverage your footprint and your store network. We've been very successful there thus far. It's quite interesting. But our biggest challenges in PAXI is now almost how to deal with the great demand for the product, which is a fantastic problem to have. But leveraging our footprint, we've got to find other ways of leveraging our footprint going forward. Already, PAXI is an example, but we also have much better examples almost in our cellular products, financial services products, et cetera. So a lot of things that we could leverage from by using our footprint and store network. E-commerce, as we -- as I mentioned earlier, is becoming more and more important, more important for some brands than for others. We've got very well-developed e-commerce strategies in the JD Group already. As you would have seen or as we discussed, 7% even the CEAD business is online contribution, which is already very high. We're looking at developing a marketplace, which is called Everyshop, where all the brands of the Pepkor Group can be included and maybe some external brands as well. So we're in the process of developing that and we'll probably launch pretty soon, hopefully, in the new calendar year. And then besides the sort of marketplace strategy, there will also be a strategy -- online strategy per brand. So some needed more and quicker than others, and I mentioned to you that Refinery is already on it, Shoe City is already on it and some of the other brands will probably follow quite soon in the development of online -- an online strategy. The informal market stays important for us. I think the informal market will probably grow going forward because of the current environment and the economy as it is and unemployment, and we're fortunate to have a good relationship with the market already. And we are well positioned to capitalize on developments in that market. And we work -- we are working hard at finding products and services that we can offer that market to make -- again, to make those consumers' lives easier and better. But we've got the ideal springboard because we have FLASH already. We've got 194,000 traders on it -- on FLASH, and that helps us a lot in developing that market going forward into an even bigger growth vehicle. And then space growth. Lastly, as I mentioned to you, that's going to be mostly PEP and Ackermans for the next year. As we consolidate the other businesses, make it better, make it more robust, when the time is right and when we're past the uncertainty that we have to deal with at the moment, we hopefully can continue growing businesses in some of the other brands as well. Then lastly, just looking at the year ahead, very important for us is to consolidate and entrench our position in the market. As discount and value and being dominant in discount and value to an extent in certain categories in the market today, so that's something that our operational teams are working at on a daily basis. And how do you execute on that? And how do you leverage from our current position to ensure that, that happens? And that will also be the focus going forward is to make sure that we protect the market positioning. We've gained a lot of market share, as we've discussed earlier, and now the challenge is to protect that market share going forward. And that won't be easy because the environment is slowly but surely changing into a normality or towards normality. But for the moment, it looks very good for us, and we've got to protect what we have. To do that and to ensure that we get the right profitability levels or the profitability levels that we're satisfied with, we've got to keep a close eye on cost management. We've done that in the last year or so, like Riaan would have explained. We are running at a very low cost of doing business despite the current environment, but again, it's something that we've got to entrench, make sure that we keep that to be a competitive advantage for the business. And that sort of, again, makes the business more robust and strong and feasible irrespective of what happens in the future. From a capital allocation point of view, that's one of the reasons why I think we were successful this year in terms of bringing our debt down and managing our costs in general. But from a capital allocation point of view, we will remain prudent. Again, to repeat, we'll invest in areas where we feel we can get a good return. During the uncertain type of environment or circumstances that we are now, we'll probably be more conservative and prudent on the areas where the investment and the return on investment has, in the past, not been as good. So again, we intend to make or to create a capital-light organization. We've succeeded to an extent, and we'll do -- we'll keep on doing that until the environment changes or shows more positive outlooks. We want to restore our 2019 profitability as soon as possible. For us, obviously, it's the first year in many that we haven't been able to grow our profits, and that's something that we want to set right as soon as possible. Hopefully, with a bit of luck this year, we'll be able to do that despite the -- again, despite the circumstances. A lot will depend on what happens in the near future with regards to COVID and how it plays out. And then also the -- obviously, the resultant impact that, that will have on the economy as a whole. But we're very confident and bullish that we can get to at least to the 2019 profitability quite soon. From a balance sheet perspective, I mean, like Riaan again said, in a much stronger position than we were 6 months ago. That gives us a lot of comfort. Even if we do have another setback in terms of COVID, I think we're much better prepared for it now than we were. But it also -- what it also gives us is opportunities for the future, and gives us access to those opportunities. And yes, it's certainly more comforting having a balance sheet like we have now. From a portfolio review perspective, as you know, we've rationalized some of the businesses in our portfolio. We're not completely done yet. There's a little bit more to do. We will focus on that in the new year or in this finance -- this new financial year and hopefully sort of get to the ideal portfolio for our group, where we have strategic fit, where we have synergies, where we have leverage, et cetera. And then lastly, it's important that one does not only look at consolidation, but also we explore growth opportunities. And certainly, from a future point of view, we've got to find ways of keeping our business growing for the future. If you look at the total business in some -- as I summarized, I mean, we're better positioned for that than we were a while ago. So I'm quite optimistic about that. It's about finding the right opportunities and then obviously, capitalizing on them as well as we possibly can. Lastly, just a big thank you to Pepkor and all the people that work for Pepkor in all the different brands and at our central office. I mean the past year has been, I'm sure you will agree, one of the more difficult years to deal with. And I only have credit and admiration and respect for what our employees in the business, what they have contributed, for how they adapt it to the difficult circumstances, the commitment and the loyalty that was shown under these circumstances and for the fact that we have wonderful cultures, of whom everyone contributes towards, that was able to take us successfully through a very difficult period. We're not sure what -- 100% sure what lies in the future, but what we do know is that with the teams that we have in our business overall, that we will always be confident that we'll be successful despite the circumstances because of that leadership and the people we have. So thank you to everyone in Pepkor that contributed so much towards the past year. And I hope that next year will be slightly easier for all of us. To investors, our Board, et cetera, thank you very much for your support and contribution throughout the year, and we hope we can rely on that also going into the future. But thank you for what I think was, from our perspective, a surprisingly successful year, one that we're satisfied with and one that leaves our business in a very healthy and positive state. Thank you very much.