Sharenet Sites 
Sharenet Sites
MSM - Massmart - Results of annual general meeting and Ceo`s statement Massmart Holdings Limited (Incorporated in the Republic of South Africa) (Registration Number 1940/014066/06) Share Code: MSM ISIN: ZAE000029534 ("Massmart" or "the Group") RESULTS OF ANNUAL GENERAL MEETING and CEO`s STATEMENT Shareholders are advised that at the Massmart Annual General Meeting held on Wednesday, 26 November 2008, the requisite majority of shareholders passed all the ordinary resolutions and the two special resolutions, as set out in the notice of meeting dated 1 October 2008. The special resolutions will now be lodged with the Companies and Intellectual Property Registration Office for registration. Included in the resolutions were those required for the approval of the sale of discounted treasury shares to Massmart`s Black non-executive directors, which will now be implemented. CEO`s STATEMENT As we enter the Festive trading season, the fallout from the global financial crisis and the likely global recession are sobering reminders that business cycles are a reality. South Africa`s relative insulation from the global financial crisis is a credit to the quality of financial leadership in both the Public and Private sectors. Our relative insulation from the likely global recession however, remains to be seen. For the first 21 weeks of the 2009 financial year Massmart`s total sales growth was 13.3% and comparable sales growth was 12.3%, with 12-month rolling sales inflation running at 9.3%. Within our portfolio we are experiencing strong performances from Masswarehouse and Masscash benefiting from steady volumes in the Food and Liquor categories. We are pleased with the performance of Massdiscounters, where the Game brand in South Africa has benefited from the consumer`s shift to value and the African business continues to perform strongly and is benefiting from a weaker Rand. On the other hand Massbuild is beginning to show signs of the extent to which it is exposed to the dynamics of the residential property market: higher interest rates, lower property prices and tighter credit granting criteria by the banks. Total and comparable sales growths in each Division are: - 13.5%, 15.8% (0.5% inflation) in Massdiscounters; - 16.1%, 12.2% (10.4% inflation) in Masswarehouse; - 2.6%, -1.2% (10.6% inflation) in Massbuild; and - 15.7%, 16.6% (15.4% inflation) in Masscash. Whilst Massbuild has now successfully digested all aspects of the merger, as a result of the slowing sales, profits in that Division are below the prior year. Excluding the positive effect of unrealised foreign exchange translation gains, profit margins in the remaining three Divisions are currently at or above those for the prior comparable period. Despite the international financial turmoil foreign share ownership in Massmart was 60.5% as at September 2008. With 29 months passing since South African interest rates first began increasing, the Group has so far performed well through the cycle. The first drop in CPIX in September 2008 was encouraging and with the data clearly showing a slowing economy, we are anticipating the first reduction in interest rates, signaling the turn in the economic cycle, in the first or second quarter of 2009. However, should there be any further financial shocks that may cause interest rate cuts to be delayed towards the end of 2009, the risk of expense growth exceeding sales growth rises. We believe that the medium- to long-term South African consumer market remains sound and we continue with our plans to invest for growth, whilst operating the business as tight as possible. In the short-term we are focused on holding net operating margins to June 2009, which is most dependant on our ability to minimise the downside in Massbuild. The financial information contained in this announcement has not been reviewed or reported on by the Group`s auditors. Johannesburg 26 November 2008 Sponsor: Deutsche Securities (SA) (Proprietary) Limited Date: 26/11/2008 09:39:04 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
