We take pleasure in presenting our shareholders, investors and wider stakeholder community with the 2016 integrated annual report for The Foschini Group Limited and its subsidiaries (collectively referred to as “TFG” or “the group”). The report covers the financial year from 1 April 2015 to 31 March 2016. It includes operations in South Africa, Botswana, Ghana, Lesotho, Namibia, Swaziland and Zambia, and globally in the UK, Ireland and 22 other international countries under the various TFG retail brands. 78% of turnover is contributed by South Africa, our home market. All data apply to the group, unless specifically indicated otherwise.
This report aligns with the following requirements:
- The King Code of Governance for South Africa (King III)
- The Companies Act of South Africa, No. 71 of 2008, as amended
- The International Integrated Reporting Council’s <IR> Framework (referred to as “the Framework”)
- The “core” reporting requirements of the G4 Sustainability Reporting Guidelines
In accordance with the stated objectives of integrated reporting, our report focuses on those matters that have a material impact on TFG’s ability to create and sustain value, and outlines how these matters were integrated and considered in our business strategy. Read more about the process we followed to determine these matters.
Although we further refined this report’s structure for 2016, all data which collectively provide a consolidated review of the group’s financial, social, economic and environmental performance, remain comparable and consistent other than indicated below.
Key events for 2016
In reading the report and making assessments of our performance and prospects, readers should take the following key events into account as it may affect the comparability of financial and non-financial information:
- The full year’s results for Phase Eight are included for 2016, compared to only two months of trading that were included in the previous comparable year.
- Following the disposal of the RCS Group in August 2014, trading for three months was still included in the 2015 group financial results as a discontinued operation.
- TFG acquired 100% of Whistles, a British contemporary fashion brand, through its UK subsidiary, Phase Eight, in March 2016. As the acquisition was at the end of our financial year, these results do not include any trading related to Whistles for this financial year. However, their at-acquisition balance sheet has been consolidated as at 31 March 2016.
Read more about the impact and scope of these events in the Chief Financial Officer’s report.
Our reporting suite
Guided by the Framework, this report aims to be a concise communication, with content developed according to the principle of materiality. The investor centre on our website contains the full suite of financial reporting elements. Additional information, aimed at a wider audience, has been made available on our website and includes the following:
|Element and purpose||Website link|
|Sustainability overview report detailing our sustainability strategy, focus areas and non-financial data relevant to a wide range of stakeholders||www.tfglimited.co.za/sustainability/sustainability overview|
|Detailed King III compliance checklist setting out TFG’s application of the governance principles and giving explanations of where these are not fully applied, aimed at shareholders||www.tfglimited.co.za/investor-relations/integrated reporting centre|
|Detailed index responding to each of the G4 criteria of the Global Reporting Initiative (GRI), aimed at a wide range of stakeholders||www.tfglimited.co.za/investor-relations/integrated reporting centre|
|The full set of annual financial statements for 2016 for the use of shareholders, investors and analysts||www.tfglimited.co.za/investor-relations/financial_results|
Feedback on the integrated annual report and requests for printed copies of the report can be addressed to the Company Secretary, whose contact details are here.
Should you elect to receive regular investor-related electronic communication from TFG, kindly provide your email address by emailing our investor relations department at email@example.com.
The following icon is used throughout the report to improve ease of reference.
Information specific to our African operations, which includes South Africa, Botswana, Ghana, Lesotho, Namibia, Swaziland and Zambia
This report contains certain forward-looking statements regarding the results and operations of TFG, which by their nature involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future.
These forward-looking statements have not been reviewed or reported on by the group’s external auditors.
In respect of the 2016 financial year, we obtained external assurance of the following aspects of our integrated annual report:
|Elements assured||Output from assurance||Status||Assurance provider|
|Annual financial statements||External audit report||Audited||KPMG Inc.|
|BBBEE credentials||BBBEE scorecard verified at level 4||Assured||Empowerdex|
|Employee satisfaction||Supaloud survey results reported on in the sustainability overview report||Independently verified||Pure Survey|
The group has not commissioned additional external assurance of the non-financial information provided in this report other than what is indicated in the table above.
Our internal process to ensure the reliability and completeness of the information in the integrated annual report involves the following:
- Review of the draft report by TFG’s senior management and executives prior to submitting the report to our supervisory board for approval.
- Review of the effectiveness of our system of internal financial control by our internal auditors who formally report to the board audit committee.
The audit committee recommended the approval of the annual financial statements and the integrated annual report to the board. The board reviewed and assessed the content of the integrated annual report and believes that it addresses the material matters that impact the group and that it is a fair representation of TFG’s integrated performance.
The board approved the 2016 integrated annual report on 29 June 2016.
A D Murray