Shoprite Holdings Ltd (SHP) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. A very sincere word of welcome to all of those people who have logged in, and for the dozen or so people that are present here in person. It's a beautiful Cape Town morning, and we're very happy to present Shoprite's results for the year ending June 2020. It is a rather eerie feeling to have a meeting in this format, but I suppose we're all getting used to a post-COVID world. At the risk of sounding like Donald Trump and claiming the largest attendance ever, I wish to point out that more than 500 people have registered to attend this presentation. And until a few minutes ago, almost 300 people had logged in. So we've got a good audience and I'm sure you will be treated to a good presentation. Just 1 or 2 points that after this presentation, the normal way of working in Shoprite is that there will be one-on-one interactions with analysts and other stakeholders. And for people who are not on that list, you know the policy in Shoprite is always an open door. So thank you very much for your interest. I now hand over to Pieter Engelbrecht, our CEO, who will explain the rest of the procedures. Thank you very much.

Good morning, and thank you, Dr. Wiese, for that opening remark. Yes, it is quite different. Maybe for me and Anton it's going to be more different than you. The -- our analysts and investors have had probably a couple of these webcasts so got used to it. You have got the advantage to not being seen. And therefore, you can get up and go make yourself a up cof tea, and you're welcome to do so. We hope to be able to give you enough clarification, explanation of what would be a complicated set of results. We -- you would have seen that we have extended our SENS announcement. It was quite comprehensive in trying our best to explain to you what was not an easy set of results. Also, in that, may I thanks our finance team that had a very thorough time to deal with hyperinflation, discontinued operations, IFRS 16, to name but a few, and done an incredible job. It is a complicated subject each on its own, but put together, even more so. So a great thanks to Anton and [ Rick ] and the team. So thank you very much. What we will do is I will quickly just give a bit of overview in terms of the business overall, to give a sense of also how COVID affected. I'm going to get into COVID early and try to get the COVID discussion out of the way, so we don't refer to COVID throughout the presentation. I think you've heard a lot about the impact of it, but we have to explain to you what the impact of that was on our business in particular. Anton then will have the more difficult task, I think, to explain all those difficulties I've just mentioned in terms of accounting. And then I'll just finish off with you to position again the strategy that we've put ourselves out to deliver and how we've performed on them. And just the innovation that we're currently busy with, where we see we're taking the business for -- or to at the moment. So if I can then start just with what I usually do to give us all the size of the business or a sense of the size of the business. So the numbers on the screen at the moment is the continued operations. So the group managed to grow the turnover by 6.4% to ZAR 156 billion. If we add the discontinued operation, which is separate, it's just short of ZAR 160 billion. And I'm just mentioning that for a moment because these are really big numbers. And if you get -- if you work with these numbers every day, there's almost a sense of you get desensitized to the absolute size of this number. I mean 6.4% per se, adding to that number is over ZAR 10 billion of additional turnover that was added in this year to already a big number. So that's why I'm calling out that number in particular. Gross margin, every time that we're together and you ask us if we are able to actually increase our gross margin further, and my standard answer is I would be happy if we can maintain it. Now this year, we did manage, however, to increase our gross margin by slightly more than our revenue. That's more in line than 8.9% growth in the gross profit, is more in line with the sales growth of this African operations at 8.7%, where most of the business actually lies. If one takes into consideration that if you take the total ZAR 160 billion of turnover, the non-RSA revenue contribution is now about 11% of the group. Slightly more if you only look at the supermarket segment, but if you look at total revenue, that's about 11%. So the bulk of the money lies in the South African operation. In terms of expenses, expenses growth, we're calling that number out at 6.9%, excluding the direct COVID costs, 5.8%. I'm putting that into context that the first 6 months, our expense growth was at 8.7%. And if we manage in the second half to pull back quite a bit in terms of expenses, ending the year then at a 6.9% expense growth. Very good control. You know there is, in the heart of running this business, is that we are very cost conscious. Trading profit, I must just mention here. Excluding the hyperinflation, now just to be clear right in the beginning, it's just close on ZAR 1 billion of a net monetary gain that's in the base. There was no hyperinflation accounting this year. So excluding that hyperinflation in the comparable year, trading profit grew by 10.4% at a trading margin of 5.3%. That is quite in line with the previous year, excluding hyperinflation of 5.2%. This African trading margin is substantially higher than that. The -- we ended then with a diluted HEPS on the continued operation on ZAR 7.658, that's an increase of 2.5%. If we adjust it with the hyperinflation number and the exchange rate differences, the growth in the HEPS was 16.6%. We think that is a better reflection of the actual operations and performance of the business. Because those are nonmonetary, the hyperinflation on the one hand and the exchange difference is not really reflective of the operational efficiency of the business but a very good job by our treasury partner. The dividend of ZAR 3.83, it's a growth of 20%. Might sound high in terms of all the other numbers, just bear in mind again, the nonmonetary hyperinflation in the base. Therefore, the growth in percentage looks high. It is still maintaining the group's policy of 2x cover. Very important for us, in terms of measurement of the effectiveness of the business, is the volume growth, because volume growth also assist our suppliers. That's why that always ties up together nicely with growth in gross margin where our suppliers can support us in terms of assisted promotions and additional rebates, because they can offset costs when they have volume growth. The South African volume growth was actually 2.3%. Group volume was 1.5%. We sold over 7.7 billion products, but very -- a very significant telling number for the year that was, is the guidance in market share of almost ZAR 5 billion. And very important, we've been, in the past, speaking about market share with you and said that we will not be running after nonprofitable market share. And in this case, I can clearly say that this was profitable market share gain. Otherwise, it would not be possible for me to also have said in the previous slide to you that we have also increased our gross margin. You cannot increase your gross margin, have the price leadership position in the market and gain market share, and it's not profitable. So I want to reiterate that there is a ZAR 5 billion gain of profitable market share overall then 1.2% gain in market share. So as I mentioned, I want to get into the COVID and the effect of COVID early in the presentation. So we get that out of the way. There's some call outs I want to make. Firstly, I have to absolutely -- I don't have words to thank the people of Shoprite for how they have managed this COVID scenario. You know that we were deemed as essential service. There was no time to have strategy sessions and think tanks on how we're going to handle this. We were hitting the road running, and this team did it admirably so, once again, illustrating that the one thing that makes this company stand out is the exceptional ability to execute. It also, in this case, I must say the benefit of being a corporate, where decision making is quick and it can be delivered right through our 3,000 store real estate very quickly, being a benefit for us, how we were able to quickly react in terms of protocols and procedures across the landscape. Our -- and I hope this isn't going to be forever that people finally understand and appreciate the importance of our frontline workers. I hope that forever, people will also have appreciation for the cashier, the till packer, the shelf packer that puts our food out there for us to buy. And yes, I hope it's going to stick around that they are also frontline heroes. And we then got together, we had the initiative with the other -- our peers, and we then agreed to do a -- right in the beginning, a newspaper print ad. We shall serve -- or proudly serve -- just to show the country that we, as retailers, can also stand together. And for once, we put our swords away, and I'm also thanking my peers that they were willing to cooperate with us on that one. Then just quickly on the time line. I'm not going to go through all of this, but I'll pick it out very quickly, if you don't mind. I'll be quick. So we went into COVID very conservatively. We expected the worst. We did not think for a moment it was not going to come to South Africa and in, I must say, also the other 14 countries where we trade. So on the 31st of January to be exact, we made a decision to divert a lot of our international sourcing to different countries away from China, specifically at the moment -- at that time, because China was the first to start having supplier line issues. And that stood us very good in that we are happy that we are well-stocked in going into Christmas now. We then immediately, basically by middle of March, we had all of our protocol in place, doubled up on hygiene, clean as you go, all those. We started with temperature testing, all those procedures at store to make sure that we identify possible cases early. We opened a dedicated tool for the vulnerable even before we went into lockdown. Then we -- just as we -- before we went into a hard lockdown, we decided that our own staff -- sorry, our own staff is also at the heart of this pandemic and will find it very also hard to deal with their own personal situation. So we paid them appreciation bonus of ZAR 116 million, each and every employee. We've given money in the sense to just make sure they can also deal with a new scenario where people are at home, their children also don't go to school, et cetera. So we started out with that. And then we had to accelerate things of -- that we were still in test phase with, like the Sixty60, 1-hour home delivery. That was still in a beta phase. We accelerated that program, and by June, we had 87 stores and the service have been accepted -- been very well accepted by the public. I will give you a graph just later on to see what actually panned out as we started to lock down again, almost come out of lockdown, where we thought that the trend may reverse. Well you know that we have got this Checkers Food Services business, which is a business-to-business e-commerce venture, mostly providing restaurants and hospitality trade. We then reconfigured that to actually assist the 1-hour Sixty60 delivery with larger orders and converted it into a business-to-consumer solution as well. Just to give you -- not that this turns the dials. It's more, for me, an illustration of how innovative and how this company operates, is that in 3 days from conception of an idea, we deliver, which is there on the right. The Usave truck solution, it's a shop in a truck. And we were able to take food to people that didn't have access to shops and were actually stranded in terms of the lockdown. Also here at our main offices around the country and at home office, in particular, it took us 3 days to get more than 2,000 people working off-site and from home. Of course, this is these days, a bit of a challenge in a sense of load sharing. But other than that, we are running around between 2,500 and 3,000 online meetings a day and have done so since the first day of lockdown. This business did not cease to operate as fast as it could, but we also enabled our till points to be able to allow customers to contribute to the Solidarity Fund. We put out immediately -- when I say immediately, it was virtually within 2 weeks, we had 33 mobile -- fully-equipped mobile clinics and 6 permanent clinics out in our bigger sites to be able to screen enough of our own people. Up to date, we've screened over 116,000 people, 603 of them have been referred for further medical treatment. And every single day, our staff, about between 85,000 and 90,000 people gets the limited screening and questionnaire in terms of the -- just assess the possibility of being infected or sick. I don't have to tell you the amount of money that we spent on protective gear and sanitizing and all that. The money for this year, ZAR 327 million is the direct cost that we -- what's word now, that was specifically spent on COVID, and we also -- we don't think that this will be less in the year to come. So around about ZAR 400 million again. Then just another illustration of the innovation that happened over that time. We, at that time, had a third-party delivery system on liquor. We reconfigured that to become then a home delivery for medicine because liquor was closed for trade at the time. In 8 days, and I'm not exaggerating by saying, but in 8 days from thinking to deliver, we delivered the virtual voucher solution. And up to now, we have sold more than 300 million of virtual vouchers. People right around the world that want to assist South Africans and charities and that with a very simple mechanism, they could use that. Also the first grocer to enable contactless payment by mobile around about the 8th of April. And then in June, as you know, we had a bit on and off opening the liquor trade again. And then just definitely worth a mention is to say that we did not forget about our communities where we trade, the hardship that they have faced at the time. So up to now since lockdown, we have donated more than ZAR 45 million in surplus food to communities and charities and serve more than 4 million meals, soup meals from our soup kitchens. We also accelerated our soup kitchens, adding another 9 during the COVID period. So just in terms of how did it impact our trading. There were certain categories that couldn't be sold in other cigarettes and liquor. Let me just remind you, and I'm -- there's another slide where I'm just going to stop there again, but please take note that the liquor sales in our business is meaningful. It's over ZAR 7 billion of trade. It can make up between a 4% and a 5% difference in our sales growth numbers. Remember that we were growing the first 6 months, the liquor business at 20% -- just over 20%, and that continued up to March until lockdown started. So -- but there's a slide. I just want you to remember that in terms of your modeling that you take that into consideration, please. So overall, what's the -- was the effect on trade? Over 654,000 loss trading hours. I did mention the over ZAR 300 million was the direct cost that we had to incur absolutely to safeguard our own staff and our customers. There was no compromising that, and we continue to do so. I don't think that we're out of the pandemic yet, so we are not slacking on our hygiene and protocols. But there was also benefits. We must not forget that we, as a food retailer, definitely also benefited from in-home dining. Restaurants were closed. People traveled less, et cetera. There is quite a significant piece of food business in South Africa, and we definitely benefited from that, particularly with our foray into the more affluent portion of the market share of wallet with the Checkers brand. Then, I mean we've been speaking for a few years about the future of large stores like the Hypers, and in this essence, also the benefit came around that the large offering that you find in a Hyper have definitely attracted more customers because of the one-stop shop ability. The general merchandise that you offer, people tend to not want to go from shop to shop to shop. Therefore, a very positive benefit for the Hyper and the larger stores for a one-stop shop. Customers definitely come to stores less often. And then in that graph that's there, you can see that at that time, during the COVID, what happened was that the number of transactions actually went down by 31%, and the basket size went up by 52%, offsetting then the less visits. I started off saying that how proud we are of our frontline heroes. We made the specific point about it. I hope that our staff also saw that we are appreciative of that. We're, of course, certainly also doing a lot of things around this. But we wanted to show South Africa that we care about our people and the advert on the left, if you can't make it out, all the fine print in there are the names of the individuals that work in our company. And the idea was you could scan the QR code and then make a donation to the Solidarity Fund directly. And the one on the right, one inspired by one that [ Neill ] said before, our Superman. Our Superman is actually the man that backs the shelf. So very good, creative stuff, just also illustrating the way that the management and the people in this company think. We don't stop to be creative. [Presentation]

We are business with a heart and we will put our money where our mouth is. I'm just going to show you another short one, and then we'll carry on. [Presentation]

And Tommy is not an actor, he's a real store manager. So that now for me sort of summarizes very quickly COVID, how it affected us. It is -- it was a hell of a journey. For me, it feels like we compacted 5 years of work into 3 months, but it did not stop or deter us from doing what we have to do best. And through the rest of the presentation, I hope to clarify some more of that, why there are some salient points that came through very pertinently during this period. So just very quickly, on the Supermarkets RSA business, 8.7% sales growth despite the fact that we had the lockdown in quarter 4. With that, I just say again, there were some benefits also with the in-home dining. A very, very good, solid like-for-like sales growth of 6.8%. I did mention the 2.3% volume growth earlier, and we ended in the 12 month at a 3% food inflation. You will remember the first 6 months, we were at 2.7%, slight acceleration in the first part of the year, the first 3 months, some price increases came through. Just then, I would mention the market share already to give you just a visual of how the group have performed. And you can see every single quarter, the Shoprite Group has outperformed the total other retail market by quite a substantial margin. And even though -- and that's why the line is not indexed, because we didn't know how to index a negative. When in quarter 4, total retail sales went into negative, the Shoprite Group still managed to have positive sales growth. In that, I've been told many times that you can think that you are okay. But only once you compare yourself, you will know. In terms of that, it's across the portfolio. Here, it's actually -- our multi-format portfolio has stood -- or was in our benefit. Clearly, if I can just explain that. So firstly, all of the brands have done well, have outperformed the market. Some more than other, like Usave was the leader of the pack and the Shoprite brand less so. But all of the brands have outgrown the market, that's the important point. The fact that Checkers and Usave have grown substantially better than the market doesn't take it or make Shoprite's performance as a brand lesser so. It's just a very big base that we're referring to. So what benefited Usave was the fact that with public transport issues and people don't want to or couldn't travel, the close proximity to home, people could walk to the Usave. We had a great benefit from there. Shoprite, in particularly, was hit hardest, so to speak, by the transport restrictions at the time. Just because of the sheer volume of it is, number one; number two, a lot of people shop at the Shoprite stores near their workplace. So when they were not going to work, it means it affected that brand than more than what -- the Usave where people could walk to. Checkers, fantastic performance for entire year. The share of wallet gains was actually just accelerated once we launched the Xtra Savings Rewards card. We now have over 5 million, and I'm going to get to that, customers. The data that we have is so powerful. If we add that to the 6 petabyte of item data that we have, really looking forward to what we can still extract out of that. And I did mention in the Checkers Hyper format. Definitely, that people are looking for value, number one; number two is that one-stop shop has come as a great benefit, and I did mention that all the brands have outgrown the rest of the market. I did say that I just want to emphasize that liquor sales is meaningful. ZAR 7 billion out of -- if we look only at RSA sales, about ZAR 122 billion, 4% to 5% effect. Please take that into account in your modeling going forward. We're still not out of it. We're still trading 4 days a week, so trade is not back yet where it was. We certainly are not making up the entire sales in 4 days than what we used to do over a 7-day trade. Liquor stores were running absolutely fantastically at the 20.5% sales growth up to March, gaining 1.8% market share. But I'm sure as soon as we return to normal, LiquorShop will be back again. The Supermarkets non-RSA. So non-RSA remains a story of currencies, currency devaluations. But I will have to start here, another -- one more mention about COVID. Managing South Africa's 1,000 stores in COVID was challenging, but managing 14 countries simultaneously with all different rules and regulations at various times was, I can say, pretty challenging. But the team, once again, there was no time for rest. We don't rest until the job is done. So a remarkable job to manage across all these geographies managed so well. So it did impact. The impact is, of course, different from country to country because the rules were all completely different. There were lost days of trade, complete restrictions on travel, closing of stores completely in some states, quite a mixed bag of it, but we managed that. What was really the difficult part was the impact on the supply chain with those border rules and the fact that we couldn't cross borders that certain drivers were not allowed to drive in certain countries, et cetera. So it was a challenge to have stock on shelf. The result of where we ended in the year is that Supermarkets non-RSA sales declined by 1.4%, referring to our continued operations. If we look at it in constant currencies, that's -- that there was a slight increase of 6.6%. To put it in context, maybe 11 out of the 13 countries had sales growth in constant currency. I did start by saying it's a story of exchange rate differences. That's why we refer to the constant currency sales. Zambia was the good performer or a very solid performer in local currency of 15.7%. You will see that there's quite a fallout in Zambia with our competitors, a lot of them are closing down at the moment. The Shoprite business is doing very well. That brand has been there a long time. It's got great equity. So that's why it's proven to be still a very good investment for us. Angola, you will see the decline in sales is almost 30%, 29%. And immediately, what would spring to your mind is to ask me, but if Angola is down 29% in rand terms, how can you only be down 1.4% in total? And it just shows you that since 2016, how the contribution of Angola to total non-RSA revenue has declined, because of the massive currency devaluations that we experienced. The currency devaluation for the full year was around 87% -- for the last 6 months, 54% -- 70%. Yes, 70% for the year, 54% in the last 6 months. So the previous presentation, we discussed quite a bit around plans for the non-RSA business. So there are short-term and long-term actions. What have we done? What did we actually get right? So in the short term, we have been able to renegotiate 48 rental agreements, either by de-dollarizing them or get reduced rentals or rental holidays. We restricted the capital that we allocated to the non-RSA operation, a total of $5.7 million is the only money that went into -- additional money that went into the non-RSA operations. The -- each country's operation is at the moment as such that the working capital is generated by the countries itself. They generate enough working capital to support them in terms of stock and expenses. Long term, we haven't stopped on that. We're still constantly assessing each country. I want to repeat what I said last in the sense that there's no one solution fits all. We have to look at each country by itself. Some countries have got more commodities. Some are oil-dependent. Some are more agricultural. Some currencies devaluate more than other. There is legislative arrangements that's completely different from country to country. So we are assessing each of the countries one by one. We will continue to do so. And as you've seen and read lately that we have started to take action in terms of Nigeria and Kenya, so we will continue to do that. In terms of operations, I can once again tell you that operationally, the Shoprite non-RSA business is off the best around businesses certainly on the continent, but even compared to South Africa. I've invited many times, although I know we can't do it, we can get on a plane now and we can go to any country, and you will see what I mean by a superb operationally-run business. On Friday, I did a store visit in Angola, virtually, of course, virtually. But then you know that it's not as if the guys are running a bad business operationally. There are other factors that is affecting the non-RSA investment. Of course, we are committed to address what we also believe is not a sufficient return on invested capital on the non-RSA investment. So Nigeria, we have announced that we're busy with the transaction there. We have progressed quite a bit on that, and we will communicate to you as and when that comes towards conclusion. And then Kenya, we most probably will be out of that country by the end of the calendar year, meaning by December either closing or disposing the remaining 2 stores. The -- what we call the other operating segments and furniture. So furniture, furniture came in -- out of the -- or ended the first 6 months on a slight negative already being impacted quite a bit by -- with load shedding. We don't have generators in these stores, and we also closed quite a number of stores. We, in this year, closed another 27 unprofitable stores. Adding to what we did in the previous year, we've now closed 54 nonprofitable furniture stores also affecting their number. They were closed for 52 days during the lockdown. The moment that we started to open again, we actually accelerated the online sales, which kicked in quite nicely. Happy that there's a lot more activity online now in that business. And you also have read some of the competitors coming out with numbers. The furniture businesses in totality looks to be doing quite well at the moment and so is the OK and House & Home business at the moment doing quite well. The rest of the other segment brands, OK Franchise, OK Foods division at a growth of around about 6%, added some more members even now after year-end have added some more, now sitting at 504. And we're almost finished rebranding all of those members into either one of the OK brands, whether it OK Foods, OK Grocer or OK Express. That segment still managed to grow almost 4%, with Computicket, as you know, completely basically closed, no traveling, no events. We used the time to our avail to redo the website, very good improvement from where we were, and transforming MediRite -- also had quite a good performance. They're coming out of last year with quite a bit of a cleanup in the non-RSA operations, specifically Angola. So we're looking forward to some good performance out of MediRite going forward. So for me now, that concludes just sort of the overview. Hopefully, I went quite fast. I hope it was okay that in interest of time that I didn't labor to -- on the point too long. And then I'm now going to give to Anton. So those of you that haven't got a cup of coffee, maybe get one. This one is not going to be easy. But yes, I'm handing you to Anton to explain to us those financials. Thank you very much.

Thank you very much, Pieter. Just to make -- explain some of the results, we've added additional information at the back of our slides. It deals with the impact of IFRS 16, obviously, on 2019 numbers, '20. We've also given some exchange rates at the back. I'm not going to deal with those slides as part of my presentation, and you're welcome to look at that, and obviously, ask questions afterwards. So there are 3 anomalies when you review our results this year. Pieter has mentioned, obviously, hyperinflation and the impact of that. 2019, we did still apply hyperinflation, and that had a ZAR 776 million impact on profit after tax. In the current year, we didn't apply hyperinflation, but we still have that hyperinflation asset of around ZAR 2 billion that we have to depreciate over the next few years. That charge was around ZAR 93 million. And then also included, we impaired part of that ZAR 2 billion asset and the tax effect of -- on that gave rise to a net profit after tax decreased by ZAR 235 million due to that -- those increase. During February of this year, we gave you a presentation on the impact of IFRS 16 on our results. We applied IFRS 16 retrospectively, which means that the 2019 numbers were restated. We gave you the whole and full impact on that, and I've, again, added that to our additional information. And in the current year, we will also share some of that information. So that was the first time we restated our 2019 numbers. And then based on the information Pieter just shared with you on Nigeria, we also classified Nigeria as a discontinued operation, which means that from a income statement or comprehensive income statement basis, we had to restate the 2019 numbers to exclude Nigeria from the -- from our continuing operations. From a balance sheet point of view, you will also notice that we've extracted from the balance sheet, you will see that as part of assets held for sale, there's around ZAR 2 billion on assets held for sale. And then we've also, from a liability point of view, excluded it, and you will see that under liabilities associated with assets held for sale. So going forward and for the rest of the presentation, as we mentioned, we will now have only from an income statement point of view, talk about continued operations. For ease of reference, we've analyzed diluted HEPS for you just to see the impact of all these various changes. One of the slides at the back actually put numbers to the SENS and then you can compare that as well. So we left you last year in August with diluted HEPS reported at ZAR 7.799. We then restated for IFRS 16, which reduced our HEPS by ZAR 0.814. And if you compare that on a like-for-like basis, it's a growth of 8.2%, then we've added back the impact of the Nigerian operations. It was loss-making in the previous year, and that had a ZAR 0.484 impact and again, loss-making this year. If you add that back, it then comes to the diluted HEPS from continuing operations with a growth of 2.5%. Then just more from a core earnings going forward point of view. We also adjust that for ForEx and hyperinflation. And then obviously, the tax effect on the ForEx and the hyperinflation, which then leads to that adjusted diluted HEPS from continuing operations growing at 16.6%. If I then turn to the results. Sales of merchandise increased to ZAR 156.9 billion, and I will deal with that on a separate slide. Gross margin improved from 23.4% to 23.9%. That was on the back of an improvement from DC allowances received. You will recall in the 2019 financial year, in the first half, we had various disruptions in our distribution center in [ Haiteng ]. We couldn't get all our inventory to our stores through our distribution center. It went directly to stores, which means that we couldn't recover those DC allowances. That is currently -- we could manage to get that back, obviously, in this current year. We also managed to improve gross margin levels in our non-RSA operations, which led that to that 50 basis points increase. Expense growth, up 6.9%. In the first half, we showed expense growth of around 8.1%; second half, 5.7%. A few of the items that I would like to highlight. We had a gross COVID-related cost of ZAR 427 million for the full year. That included -- and how we classified COVID-related costs is as, obviously, all the costs relating to sanitary wear, protective gear for our staff, the appreciation bonus Pieter referred to of the ZAR 116 million, and then also additional security costs to protect our assets from looting. That -- after taking into account the additional ETI incentives from government, that was more or less ZAR 100 million. Our net cost on COVID-related costs was ZAR 327 million. Employee benefits increased by 6.2% for the full year. Excluding that ZAR 100 million ETI incentive cost -- employee benefits would have increased by 7.1%. And if one compares that to the 8 -- just over 8% increase given as our general staff, was achieved through our productivity improvements that we had during the year that basically realized for us that 1% benefit. Other operating expenses increased by 5.8%, and in there is electricity cost. The RSA increase in South Africa was around 13%, we managed to increase our cost by 12.3%. And that again was as a result of various energy incentive projects that we implemented like, for instance, the LED lights in our stores, that generated that productivity and increase for hours on the expense side. We also had various savings from an advertising point of view. And obviously, also less travel during the COVID-related period, which led to that reduction in costs in the second half. If I look at depreciation, there's 3 items on depreciation we need to look at, that increased by 1.2%. The first one, obviously, is included in there is the hyperinflation depreciation of ZAR 93 million. Then we had a reduction of 5.8% on our depreciation from our PPE, but we've seen 8% or a 9% increase on our depreciation from our right-of-use assets. That includes now also the fleet that we sold during last year November. Going then to trading profit. Looking at a like-for-like basis, it's minus 2.7%. But I think the one thing that I want to reiterate here is the ZAR 8.2 billion one must take into account excludes the liquor business in the fourth quarter that had -- was during lockdown, and then also the benefit of our furniture business. Later on the slides, I will talk about trading profit a little bit more and unpack the various segments' performance. Excluding hyperinflation, it was a 10.4% increase and trading margins of 5.1% and 5.3%. And then EBITDA, excluding hyperinflation, especially now in an IFRS scenario, EBITDA has become a crucial KPI for us, and that increased by 10.7%. Our effective tax rate increased from 31% to 34%. That is on the back of various tax impact, obviously, on IFRS 16 has got a big impact on deferred -- creation of deferred tax assets. There were additional deferred in tax impairments that we had to take during the year, and that gave rise to that increase of 3% to 34%. Diluted HEPS increased by 2.5%. And then as we said previously, the adjusted diluted HEPS increased by 16.6%. If we just then unpack the sales per segment. Supermarkets RSA increased sales by 8.7%. That's a ZAR 9.8 billion increase to ZAR 122 billion. We opened a net 59 stores in South Africa, of which only 6 in the second half. For 2021, we are planning 142 stores, and this really talks to the impact that the lockdown also had on our store opening program during the second half, especially on the liquor business. Checkers improved their sales performance by 15.4% as a result of our expansion in our FreshX stores, the Sixty60 and then also the launch of our very successful rewards program that Pieter will talk about later. The Hypers grew sales at 8.6%, and then Shoprite at 5.4%, and Usave at 16.4%. The Supermarkets non-RSA segment, again, plagued through with the currency devaluations, was at minus 1.4%. I think what was interesting, as Pieter mentioned, the impact of Nigeria, but then we also look at a country like Zambia that performed -- that had very good growth of 15.7%. But if you convert that to rand, again, at a flat growth. And that just shows the impact of all the various currency impacts. Furniture, first half was at minus 2.7%, for the full year at minus 11.9%, and again, just the impact of that fourth quarter. Also in the third quarter, as Pieter mentioned, was the impact of the power outages. Our credit contribution hasn't really improved. We've gone from 12.8% to 13.3% credit participation in that segment. Furniture is also dependent on quite a good performance from the non-RSA segment, and those currency devaluations had a negative impact on that sales growth. If I then look at other segments, up 3.9%. From there, we had good growth from our MediRite and transform businesses, especially during the fourth quarter and the franchise business. If we then turn to other operating income. It was down 5.7%. And the major items here are commission received. Again, fourth quarter due to the lockdown, there were very little -- well, no traveling taking place and very little events taking place that had a negative impact on our commission received. Also if I look at the premiums on other insurance income earned, that is from the furniture business, and that is very much in line with the sales decline that we've seen in that segment of the market. And then sundry income, again, just minus 2.7% due to various hyperinflation impacts that was included in the previous year. Interest revenue, the 2 items that really stand out here is the interest on the government bonds. We've managed to reduce our interest, our government bonds during the year from around ZAR 3 billion to ZAR 2.5 billion. The yield that we're currently getting on those bonds is 8%. What is important to note is that we will not be able to -- or a lot of the U.S. dollar-linked government bonds are maturing current -- during the first half of this financial year, and the product is not available in Angola anymore. So we will have to move our investment from U.S. dollar-linked government bonds into Angolan treasury bills. They are currently giving us a yield of 19%. So we must just understand the impact and the interaction between the income that we get on these bonds from an investment income point of view and interest point of view versus the ForEx movement, which I will share with you later as well. The finance income earned from an installment sales point of view, that is also furniture-related, and that is on the back of that sales decline. I then turn to training profit per segment. If I start off with Supermarkets RSA, it's very strong growth of 13% on the back of that 6.6% trading margin, an improvement from our last year of 6.1% when we last spoke. Again, I just want to reiterate that this doesn't include the impact of the liquor business in the fourth quarter, which obviously would have improved that result even further. Non-RSA Supermarkets, same -- more or less same result as in the previous year. But what is important to remember is that we saw that 100% -- ZAR 100 million decline in investment income, and that rolls up under Supermarkets non-RSA. So if I purely compare that, the non-RSA segment actually had a good performance in this tough environment. Furniture declined from ZAR 275 million to a ZAR 15 million loss. At the end of December, we were still showing ZAR 169 million profit in that segment. In terms of IFRS 9, we had to make various provisions, especially on the debtors' book of around -- what that's currently sitting at around ZAR 1.6 billion. And as we said in the SENS, there was around ZAR 324 million of additional provisions that had to go through, and that put that division or segment in a loss for the full year. Other operating segments, which is the CFS and the MediRites and Transpharms and the franchise business improved the result from ZAR 179 million to ZAR 316 million. You will recall in the previous year, we had those stock losses in Angola in the MediRites of ZAR 80 million, and that basically gave rise to the 76% increase, if you exclude that out of the previous year -- or out of the current year. Total consolidated continuing operations is at ZAR 8.1 billion and a trading margin of 5.2%. If we then turn to ForEx, we've talked -- I've spoken about the U.S. dollar-linked government bonds. That ZAR 2.5 billion gave rise to a ZAR 1.3 billion ForEx profit, and that just talks about the current continuing currency devaluation in this -- one of the slides at the back I've shown you, are the Angolan kwanza has devalued by around 70% to the U.S. dollar, and that gave rise to that ForEx profit. If I then turn to -- we then also made a ZAR 843 million loss on some of our intercompany stock loans, and that is purely also just the effect of South Africa exporting to some of the African countries and the ForEx impact on that. You will not see a impact of IFRS 16 on U.S. dollar leases as part of our Forex. We have a net investment hedge and the ForEx losses that we make in terms of IFRS 16 is therefore shown as part of reserves. Items of capital nature. We impaired a total of ZAR 1.3 billion on our nonfinancial assets. At the end of December, that amount was around ZAR 167 million. The changes in -- on how we look at our impairments, obviously, were impacted through the discount rates in the various countries. And then the growth rates, COVID had a major impact on the growth rates that we used doing -- in our value and use calculations. And the majority, as you can see there on the right-hand side was through our divisions, our Supermarkets and furniture divisions that was hit the hardest throughout this fourth quarter impact. We've -- in non-RSA, we've impaired close to ZAR 705 million. Also included in there is some of our own buildings in Angola. And then furniture, Pieter has alluded to us closing unprofitable stores, and we've also impaired some of those right-of-use assets on those loss-making stores. If I then go and just go back to impairment on PPE was the majority was ZAR 700 million, and then on the right-of-use asset was around ZAR 470 million. We've also sold some of our retail estate during the financial year to the tune of around ZAR 760 million, and we realized a profit on that of ZAR 239 million, bringing the total items of capital nature to a loss of ZAR 1 billion versus a loss of ZAR 419 million in the previous year. Our net finance cost increased from ZAR 2.3 billion to ZAR 2.5 billion. I think the positive one for us is our improvement in our cash and cash balances. I will talk a little bit later about that. But we can see the massive improvement from interest received on our bank accounts from ZAR 272 million to ZAR 443 million. Then I'll also talk a little bit about the borrowings later, but that increased from ZAR 845 million to ZAR 990 million. The borrowings is more or less still ZAR 12 billion, and it's split between the ZAR 4 billion that we currently have in South Africa and the ZAR 7.4 billion that we have in Mauritius that's dollar-denominated. Finance costs on our lease liabilities, that is linked to the IFRS 16 lease liability. That increased by 9%, which also increased at the same rate as we see our lease liability increased as well as our asset. So all of those were more or less around 9%. Just purely for illustrative purposes, I've also given you our covenants ratios. And as you can see from a net finance cost cover and our finance cost cover, we are well within our covenants on our borrowings ratios. If I then turn to the balance sheet, the way that we look at our balance sheet is in this format, is a snapshot. If I then work from the bottom up, right-of-use assets, I've spoken about increased with that 9%, and linked to that is a lease liability of ZAR 23.3 billion. Our property, plant and equipment is currently at around ZAR 18.3 billion. You will see, there's quite a big reduction from the previous year and that relates to the reclassification for -- of Nigeria as an asset held for sale, and also the exclusion of the fleet that we sold during November last year. Intangible assets at ZAR 3 billion. And then the important one for us, the cash and cash equivalents and loans receivable. As part of loans receivable, we've included the RMB Westport loans that is dollar-denominated as well as our investment in Resilient, that's also dollar denominated. And that's why if we look at that together with our cash, we're currently sitting at around ZAR 14.3 billion versus a borrowings and bank overdrafts of ZAR 14.1 billion. It's a huge improvement, and I will -- from where we were last year, and I will speak a little bit about that later. Inventories, again, moving in the right direction. We've had our inventories reduced to around ZAR 18.8 billion, and our trade and trade payables sitting at ZAR 20.2 billion. And then other assets versus other liabilities at ZAR 11.1 billion versus ZAR 5.1 billion. ROIC is a extremely important KPI for all of us. If I exclude hyperinflation in the previous year, we sit at 8.4% with the current ROIC sitting at 9.7%. If I then turn to assets and our capital expenditure. At the end of 2019, we spent close to ZAR 5.3 billion on capital. This year, we spent ZAR 3.2 billion. Our guidance during December or February was that we would spend close to ZAR 4.8 billion, which means that was -- there's around ZAR 1.6 billion of work that we could not complete during the current year, and the majority of that was on new stores and on the revamp of some of our existing stores. We've set that target for ourselves on the expansion on the FreshX stores. So all of that is currently happening. We've already opened 3 additional stores in the current year, and we could also not expand on our liquor stores. We were running at close to 1 store a week in the previous financial year. And that also obviously couldn't -- we couldn't fulfill that during the lockdown period. So for our guidance for 2021 is around ZAR 4.8 billion again. So ZAR 1.6 billion of work from IT -- various IT projects as well as our refurb and new store program will move into the current year. And then there's obviously also additional new stores and IT work that we would like to do during the current year. If I just look at our capital, just for interest sake. On the ZAR 4.8 billion, 95% of that is relating to work done in RSA Supermarkets. If I then turn to capital expenditure of the current year, that ZAR 3.2 billion, that ZAR 0.7 billion that relates to non-RSA was to complete 3 of the stores that were currently -- that was in the process of being built just to complete those 3 buildings. And then our capital spend as a percentage of sales reduced from 3.6% to 2.1%. There is a slide in the back where we compare our previous year's spending to this year's spending for interest for additional information. Inventory, in the beginning of the year, we changed the way we think about on how we measure our inventory. And we've set ourselves a target of 12.4% as inventory as a percentage of sales. I think the -- one of the huge benefits that we're currently getting from our SAP ERP system is the way we can look at stock either per line item or per category. And with the work that our procurement department is doing with the various divisions and operations, we've really had a -- they've done a great job in reducing our inventory levels or inventory value but to ensure that we still have the same or improved in-stocks and on-shelf availability. So we've set ourselves that target of 12.4% in the beginning of the year. We actually achieved a 12% inventory-to-sales actual for the year, which is a marked improvement from where we were last year at 14.2%. If we still look at the pie chart on the left, majority of the stock is still in Supermarkets RSA, because that's obviously the bulk of the business, 78% of the business. Non-RSA stock levels reduced a little bit to ZAR 2.8 billion. And then as you can see, the rest of the segments. Our guidance is, for next year, is to remain or trying to maintain this inventory of sales, because we'll see that pickup in sales. Obviously, take -- excluding the impact of what we saw in the fourth quarter, and there's, obviously, all the work that our operational teams will do on that. If we then look at our borrowings and our net gearing, our net cash position is our cash and cash equivalents, less our overdraft accounts. That had an incredible performance from ZAR 3.6 billion up to ZAR 10 billion. And if I look at our borrowings, increased from ZAR 11.6 billion to ZAR 12 billion. So if I just quickly stand still or can stand still at our borrowings is currently structured, we have ZAR 4 billion in South Africa, and then we had at the end of last year, we had that $524 million sitting in Mauritius. We've managed to reduce that $524 million by $91 million to $433 million. But due to the changes and the movements on the currency, last year, we left you at a currency of around 14.17. And this year, the currency was sitting at 17 to the dollar. So that movement, although we got a -- although we settled $91 million, we didn't get the benefit from a rand same value. So the current interest environment as well as the pressures in non-RSA, we had various sessions. And that's given us the opportunity to actually reduce our dollar debt borrowings or dollar borrowings to $80 million by the end of December, and how we will settle that $350 million is by way of cash that we're currently sitting with, where we are long cash. And also, we will raise additional South African debt to the tune of around ZAR 2.5 billion. Our net borrowings, therefore, improved from over ZAR 8 billion in the previous year to close to ZAR 2 billion in the current year. And then the IFRS 16 lease liability increased from ZAR 21.4 billion to that ZAR 23.2 billion. Again, for this -- for illustrative purposes, I've included the covenants on our borrowings. And as you can see, we are well within any of our covenants. We've summarized the cash flow statement for you just to show the strength of the operations and the cash that can -- the operations can generate. If I look at the -- in the center, the cash from operating activities was close to ZAR 11 billion after taking into account dividends in the previous year of ZAR 1.8 billion. And then also what's contributed to this improvement in our cash from operating activities is a strong working capital improvement. If I then look at our investing -- investment activities, we had a reduction on CapEx of ZAR 3.2 billion. And then you'll see on the ZAR 1.9 billion inflow is a combination of the sale of the fleet of ZAR 1.1 billion, and then as I mentioned previously, the property sale, close to ZAR 800 million. So that generated that cash, giving us a improved or number of about ZAR 10.6 billion. And then we -- if we take into account the various servicing of our debt, reduced -- and reduced our cash from benefits to around ZAR 6.6 billion for the full year. In summary, we left you last year with a focus on working capital, reduction in borrowings, how we look at our capital allocation and also what we want to do with our property, plant and equipment portfolio. These are the [ null ] lines that we've completed, was -- these are the items we've already completed. I've covered most of this during my presentation. If I look at what we're currently working on, as Pieter mentioned, we're looking at that Nigeria and Kenya transactions, and we'll finish the -- or we aim to complete our restructuring of our dollar borrowings by the end of December 2020. And then we have received approval from the competition tribunal with regard to the Equities transaction. So I can say that there are now no more conditions presently outstanding on that transaction, and we will now actually go over to the transfer. So we hope to finish that and finalize that within the first half of this financial year. And thank you, Pieter. That is all from me.

Okay. Thanks, Anton. I hope you followed all of that. The one number I just want to call out, Anton, is that the increase in bad debt provision on the furniture book went from 36% to 50.5%. Hence, that ZAR 324 million charge to the income statement that made that swing with a new way of calculating that. The other one that I want to point out is, in the beginning, I actually didn't want to say it, but I forgot that you're going to mention it, the 6.6% trading margin in this African supermarket business is probably one of the global best practices, and I'm very proud of that number. Just reinforcing again that, that ZAR 5 billion in market share gains didn't come at the expense of profitability and still supporting our leading position as the price leader retailer in South Africa. Okay. I -- We're almost done. I'm not going to keep you too long. Just very quickly, I want to remind you where we were. This is basically the same slide I've shown you 3 years ago. Our strategy hasn't changed. We've put it in 3 buckets, 9 specific items, and the one that we are really focused on was the first 3. Bucket 1 is to create a smarter Shoprite. At the time, we went through all that pain to implement the new ERP system. I don't want to labor that point. It's starting to really give us benefits, and we are able to build on that, and we will continue to do so. This whole notion of the last 3 years to -- especially 24 months, the acceleration of building a smarter Shoprite actually allowed us to handle COVID much better because of the information we have, the way that we were operating, the level of innovation that we were already busy with. So I'm happy that, that came as the sort of the U.S. volumes would windfall. [indiscernible] And then I know it's widely said that there's been our acceleration of customers into digital, and we're happy that it now actually coincides with what we set out 3, 4 years ago as our own digital transformation agenda. And we started to deliver on some of these, and now we accelerated it. And it just -- it's sort of a culmination of these 2 events, assisting our own strategy. And we will continue to drive that with a vengeance that we are used to. But we are also conscious of the fact that we absolutely cannot lose our focus on our core retail business in the areas where we trade. We know that it's still the traditional business that generates the free cash in this company. We told you that we're going to live within our means, in other words, in the cash that we generate. And it's important that we acknowledge who is currently still generating the most cash for us to create money for new projects, new avenues of revenue to give us higher returns. So one of them, our first priority, always, our customer-first culture. So in this sense, we had to accelerate our investment in digital. The first one or the first call out is the launch of the Xtra Savings Rewards Programme in the Checkers brand. 5 million sign-ups in the first 7, 6, months, 10 months around. By now, we're already -- we're now 10 months in it. We've given customers back around ZAR 1 billion in savings, instant savings, not in points. In one day, it may be redeemed right at till point instantly. And the sales growth in terms of the Checkers brand has been phenomenal. We really are making our inroads into what we call the higher end of that disposable income. We also had to accelerate what we delivered in the space. We didn't think we were already going to be at a scenario where, by now, already 83 million individual offers have been sent to people for what is suits them best in terms of things that they are looking for at the price that they're looking for, when they're looking for. And we will continue to improve on this. I think as I mentioned earlier, if you add all of their customer data to the 7 petabyte -- 6 petabyte of data that we already have, it's quite a powerful data lake of information that we will continue to use further. That's not all that we did during COVID. We also -- what we call, you remember 3 years ago, I was talking about the race for space. There was -- since about 20 -- 2003, the retailers, we were in a race for space. A lot of development going on, the World Cup game, and there was really a lot of real estate development. And I think Shoprite did very well in that race for space. We're talking these days about a race for reach, especially in the digital space, and that has become more prevalent now during the COVID, how important it is to capture your customer digitally, and we have very solid plans in that regard. The shift is enormous. There's no age or limitation in terms of the shift to digital. It's across the board, across the spectrum of the customer base. Within, as you know, we were in beta testing with the Sixty60 1-hour delivery. It's completely mobile, very specifically so. It's not a traditional web-based e-commerce shopping site. It was deliberately designed to be mobile-only. And the growth on that, I'll show you the graph right now, the growth has continued on that. It created some new jobs, over 1,000 new jobs directly. And then, of course, indirectly with the drivers and all that. We're also not forgetting about Shoprite. We did -- redid the Shoprite website, and we've seen a 157% increase in visits to that real estate, digital real estate. Just in terms of Sixty60, it is now the #2 shopping app in South Africa, and customers really love it. It's not perfect. We will continue to work on it. We take their comments, but customers have voted their approval of this, and we will continue to do so. We're currently in 87 stores. Just on a point here, this didn't come at a huge investment. We're not talking billions of capital that we're able to put in here. It's actually almost negligible the amount of capital that was assigned to this project being -- and being so successful. So that's the first point. And secondly, I said it's mobile completely. And then thirdly, in terms to capture the addressable market for this kind of service, you don't have to put this in every single store, because customers are agnostic to where the product actually comes from. So if you live in central Johannesburg, if your delivery comes either from Rosebank or Sandton store, it doesn't matter as long as what you want and you get the right price and the quality is good. So I just want to tell the investors that, that doesn't mean you have to replicate this investment across your whole real estate. There's the graph in terms of these weekly orders. As you can see, when we were just dabbling around testing with it and then COVID lockdown came, we had to accelerate it. And then we thought as we would go out of the levels of lockdown that we will see a tapering off of that service. But as a matter of fact, it actually accelerated, and it hasn't stopped. We continue with the same trend, and we're improving and trying to improve on that still every day. Just not to say that we're not only focused on digital and that we still have our mother brand Shoprite and Usave. I showed you earlier the truck that was developed in 3 days. We have a couple of them now. Even we're now servicing some of our farming communities, they find it difficult to get to town. We have the container stores where we really go deeply rural, taking the same value that we offer to the city folks to the rural people in terms of affordable food, and Shoprite continue to deliver on its low-price promise as we've always done, and we will continue to do so. Just -- I've mentioned this a couple of times, and some people are not clear what I mean when I talk about precision retail and what we mean by precision retail. So I thought I'd give you just one example. So on the left was something that we did when we went into lockdown. We could real-time plot on that map, as you could see, the shifts in buying patterns in terms of product movement, people changing their shopping behavior. That could be relayed back into our supply chain and to our manufacturers at a time when they were de-prioritizing the manufacturing of certain items. In other words, they stop making certain lines. And that, in totality, and I have to compliment our supply chain right through the replenishment team, the distribution team, the Transrite team, an incredible job to make sure that when there's uncertainty in the supply chain that our customers were not disappointed with out of stocks. The out of stocks actually maintained throughout the COVID lockdown as we went into it with our, as we call it, our core minimum assortment lines. It's that lines that are really important to people. Anton mentioned about security costs. Another one that I want to call out is that through out of this, we've seen a lot of protest and can I say criminal activity, looting, burning of stores, breaking of liquor stores, and We Have not used a single asset. We had one attempted burglary in a liquor store, unsuccessful, and we haven't lost a single truck in this entire period when we had a lot of action on the roads and protests. It does come at a cost. It does mean that on an average day, we have to accompany about 300 deliveries with armed vehicles, et cetera. But those are the things we do -- we don't make a big song and dance about it. The one thing that's not negotiable with Shoprite, us as a team, is our price leadership. That's what we do. That's what we believe we're good at, and we will continue to be the price leader in South Africa. The brand is trusted for that, and we will continue to do that. You can see there, I put the graph there just to show you how we index ourselves on a daily basis in terms of our peers, where we stand in terms of price. Yes. We say -- I think it was about 3 years ago, we said we're going to increase our share of wallet with upmarket customer. And I can stand here today so that -- I do believe we have made inroads. We have uninterrupted market share gains, totaling almost ZAR 1 billion now in the last year in that segment of the market. Our FreshX stores, the growth in them is almost twice that of the rest of the real estate under the brand. And then just again to tell you how -- what's happening in here in our space, I say it's always, it's difficult from the outside, unless in India it's difficult to understand how we operate. But during this lockdown, I'm very pleased to say that our fresh food development team have developed 224 new fresh product lines that are now in the process of rolling out, making sure that we have new, exciting products for the festive season, and then we're ready for Christmas. They cooked at home, they tested, they would have delivered this stuff, but it happened. So I'm very, very happy, and thanks to that team. The other thing that I -- terminology. So I've now said, we're talking about the reach, and we also talk about share of stomach. Share of stomach is now a terminology because of the opportunity that we now have with at-home dining or in-home dining, a lot more people cooking at home. People not ready yet at en masse to go out and wine and dine and go to restaurants, et cetera, and fast food outlets. So that section of the market is still worth ZAR 60 billion. And I think there is still some lead way for us to benefit from that portion of the market as well. While we have been able to increase our market share and our customer base in terms of these more upmarket shoppers. In terms of the -- if we go back to the graph in the 3 areas of the strategy that we are aiming at, the middle one is about where we lag, where we believe we still have runway and catchup to play. One of them was the private label. So we have been able to increase the private label participation to 17.1% with 16 basis points. Especially in quarter 4, we saw a lot of people switching to our value brands. And you can see in that graph that then at -- in quarter 4, the 3 months to June, the value brands have outgrown the rest of the categories, and I do believe that it's going to stick. People had a chance now to try the product, test it, see the quality. And I think this is not going to be a one sallow summer. In terms of the Checkers brand, in particular, because there was a lot of activity in Checkers Sixty60 then adding with it, the food services, the reward card. So a lot of attention went into this, and it has proven its worth. You can see there for the entire year, every single month, the Checkers brand have outgrown the market by quite a margin. And also in June, when the market went to negative, Checkers still managed a very solid growth. There's a lot of other innovation going around, not only in the Checkers space, but I'm just going to call out 1 and 2. We will, of course, share these with you as or when they really become meaningful businesses. But just to tell you that during COVID, we didn't go into hibernation. We actually accelerated our innovation. One area is our value-added space. We've created our first Money Market account, e-wallet. It's going to be very exciting. I always say it's very difficult to beat for free. So banking for free is going to be a tough one to beat, and there's a lot of exciting value-added to be added to that product. It's just launched about 3 weeks ago. We formed a partnership with OUTsurance. That's not a product relationship that there is an overall joint venture with us, and you will see some interesting things coming out of that soon. We've launched one product now and second one in the next month. We also increased our venture into the -- into mobile. So we now also have physical stores called K'nect to complement what we do in store. We've seen very good performance out of that. So that's just when I've spoken to you before about creating alternative revenue streams, this is one example. And then I don't -- last time I spent more time on explaining the data and the power of the data and what we can do with that. We will -- as we progress, we will tell you more of those stories. So that's just very quickly. I wanted to just give you a sense of that the business is running at full cylinders. We were not on holiday. We certainly tried our best with the limitations we had with traveling all that, to continue to innovate, which we believe is the recipe for success going forward. Lastly, I -- this is my last slide. In terms of the outlook, I just want to highlight what it is that we're trying to say to you today, plus also slightly what we can expect in the next 2 months. So first and very importantly, this financial year, the new one we're in now is a 53-week year, opposed to 52 weeks. In terms of your modeling and all that, please take that into account. That's the one. We will give you a sales update at the AGM on the 16th of November, so it's almost -- it's not far away. So you will get your sales update by then. I mentioned internal food inflation for the year, ending at 3% now ticked up around 4%. There's not a lot of pressure at the moment on pricing because of -- we're still sitting with this state of disaster, which basically does not allow much movement in pricing. So I think we're quite stable at that number, 4%. I did mention that the liquor restrictions, we still have them, and it does have a meaningful impact on sales. So bear that in mind, please, looking forward for the 6-month results. Then the few points I want to just take out again is the business is highly cash generative. You've seen that we generated over ZAR 6.6 billion in free cash this year, which is a great position to be in now. Cash is king at the moment, and we're happy that the balance sheet is extremely strong. Our price leadership definitely puts us in a very, very strong position in tough times. People trust us with price. They know that we're cheap. We are affordable. As far as my memory goes, we are the only retailer that for the last 3 years have not increased the price on our 600-gram brown bread, which you can buy for still at ZAR 4.99. So the argument we had was that for a ZAR 5 coin, you could fill your stomach, and we are maintaining that position. Just as an example, we've not changed our strategy in terms of that. Non-RSA, be assured, we will continue to address that operating models in a very systematic manner. You've seen where the results are. If we maintain that, good, while we are addressing the concerns of the return of investment by country. I did explain why that is. No model -- one model fits all. And then I have to call out just as almost as a last point that -- I mean, on the back of absolute record market share gains, we are going to continue to innovate. We are very responsive, even more than ever, with improving our data on our customer and the changes in our customer behavior, the times that they shop. The supply chain's very quick reaction in terms of our real-time data that we now have is really putting this business on a very strong foot, even though we expect some hardship and job losses in the year to come. I think with the innovation that we will continue to do, we will continue to deliver the best options through our multi-format strategy to the spread of customers of our business. I'm going to end to say that Shoprite is Africa's most affordable, accessible and innovative retailer. And finally, I would love to just say thanks to the Board. Unbelievable thanks to my management team and the great people of Shoprite for an awesome year. Thank you.

Pieter, we're just going to go to questions. I think we've dealt with quite a lot of the questions that's being asked. So I'll just let you look at the ones that I think is necessary here. There's a question with regards to -- from William. It's a private -- it's not our William, hopefully. He says, when will Shoprite enter the online clothing selling space? And how do we think about clothing as it is a high-margin business?

Yes. Clothing is a very small portion of our business. It's never been primary. We mostly have clothing only in the Hyper stores, and we're going to stick to doing the basics in clothing. So that is not what we see as a high-growth for Shoprite.

Thank you. Then [ Chris Gilmore from Business Day ]. He just wanted to know from whom are we taking market share gains. And what is our estimated market share gain in total -- what is our estimated market share in total?

The market share now is 33 -- 31.6% is the market share now. If you ask me where are we taking market share from, everybody, because of the multitier brand strategy, top end, middle tier, lower end. So I have to say, I think, from everybody, to different levels. And there is -- I don't see an end in this. We -- if we're only at 31.6% market share, that's not 100%. So I see some headroom here.

Okay. Thank you. Then [ Chris ] also asked how large is your home delivery capability compared to Pick n Pay and Woolworths?