INTEGRATED ANNUAL REPORT 2021 - Pick n Pay Investor

1 REPORT 2021. INTEGRATED ANNUAL . PICK N PAY INTEGRATED ANNUAL REPORT 2021. 01. CONTENTS Introducing our 2021 INTEGRATED ANNUAL REPORT Our 2021 INTEGRATED ANNUAL REPORT 1. Our REPORT tells our value creation story 3. A message from our Chair 5. 02. This is the Pick n Pay Group 9. About us 10. What sets us apart 11. Our store footprint 13. Our store formats 15. Creating value through our business model 19. 03. Our business in context 25. The environment we operate in 27. Material risks and opportunities 33. Engaging with our stakeholders 41.

2 04. Our strategy 47. Strategic focus 49. 05. Our performance 61. CEO statement 63. Incoming CEO statement 65. Our CFO's REPORT 67. Summary of FY21 ANNUAL financial result 73. Five-year review 81. Value-added statement 84. 06. Our governance 85. An overview by our lead independent director 87. Our governance structure 89. Our Board of directors 95. Remuneration REPORT 99. 07. Shareholders' information 119. Analysis of ordinary shareholders 121. Analysis of B shareholders 122. Shareholders' information 123. Corporate information IBC.

3 INTRODUCING OUR 2021 INTEGRATED REPORT 01. We are pleased to present our 2021. INTEGRATED . INTEGRATED ANNUAL REPORT for the 52 weeks ended 28 February 2021. OUR 2021. ANNUAL . REPORT . The scope and boundary of this REPORT Our approach to online reporting This REPORT covers the INTEGRATED financial and non-financial performance of Pick n Pay Our INTEGRATED ANNUAL REPORT is available online on the Group's Investor relations website at Printed copies are Stores Limited, its subsidiaries and its associate (the Group) for the 52 weeks ended available on request from our Company Secretary, Debra Muller, at or by fax at +27 21 797 0314.

4 28 February 2021. It contains relevant comparisons to previous periods, and is consistent with information and performance indicators included in internal management reporting. The INTEGRATED ANNUAL REPORT is our primary REPORT to stakeholders. It is principally aimed We produce a suite of publications at providers of financial capital, being our shareholders and debt providers; however, it tailored to meet our stakeholders' specific Our reports comply with considers the information needs of all our stakeholders. information requirements.

5 Our reports the following reporting comply with the reporting frameworks standards and frameworks: IAR AFS CGR AGM SLR. detailed in the table provided. We use six broad capitals to create INTEGRATED reporting boundary The International INTEGRATED sustainable stakeholder value: Reporting <IR> Framework INTEGRATED ANNUAL REPORT (IAR). Financial A review of the Group's strategy, material issues, risks and opportunities and our operational and financial performance The Companies Act, No 71. Human Corporate Governance INTEGRATED Sustainable Living for the period.

6 The REPORT includes relevant extracts of the of 2008, as amended REPORT ANNUAL REPORT REPORT (Companies Act). FY21 ANNUAL financial results, disclosure on environmental Manufactured and social sustainability, our governance structures and our remuneration REPORT . Social and relationship The JSE Listings ANNUAL Financial Statements (AFS) Requirements Influenced by Intellectual Our broader macro-economic environment across The audited Group and Company ANNUAL Financial Statements Page 27 The King IV REPORT on Natural eight southern African countries for Pick n Pay Stores Limited for the FY21 financial year.

7 The REPORT includes our audit, risk and compliance committee and Corporate Governance for The material risks and opportunities that impact the Refer to pages 19 to 24 for more information. Page 33 directors' reports. South Africa, 2016 (King IV)1. performance and sustainability of the Group We consider and address our key The legitimate needs and interests of our key stakeholders Page 41 Corporate Governance REPORT (CGR). stakeholders' issues and concerns Governance practices across our value chain Page 85 International Financial A review of the Group's commitment to good corporate governance to create lasting value: Reporting Standards (IFRS).

8 In implementing its strategy and governance framework. The REPORT includes our Notice of the ANNUAL general meeting to be Customers held on 28 June 2021 and Board committee reports. The Global Reporting ANNUAL Financial Financial Summarised results Initiative's (GRI) Standards Community Statements reporting boundary and AGM notices Summarised results and AGM notices (AGM). Employees A high-level review of our operational and financial performance, 1. Copyright and trademarks are owned by the Institute of Directors in including the summarised audited Group ANNUAL Financial South Africa NPC and all of its rights are reserved.

9 Suppliers Statements, remuneration REPORT , relevant shareholder information, and Notice of the ANNUAL general meeting to be held on 28 June 2021. Franchisees and the proxy voting form. The REPORT structure and how to Shareholders 830 342 61 Sustainable Living REPORT (SLR) give us feedback company-owned stores company-owned stores associated stores This REPORT includes summarised financial information, with Refer to pages 41 to 46 for more information. This REPORT is published every two years and details our 761 28 sustainability strategy and performance against strategic non- audited financial statements (prepared in terms of IFRS).

10 We have six clear engines for franchise stores trading as Pick n Pay financial targets. available on our website at long-term strategic growth: For more information, please email our Company Secretary, Debra Muller, at We continue to engage 1 Pick n Pay: South Africa's with all stakeholders to ensure that we improve our external Online version available on our website: most trusted retailer INTEGRATED reporting year-on-year. Boxer: Africa's favourite 2. discount supermarket About the forward-looking information contained in Print version available on request 3.