notes
1.

The unaudited interim condensed consolidated results for the half-year ended 30 September 2011 have been prepared in
accordance with the presentation and disclosure requirements of the South African Companies Act (No. 71 of 2008, as
amended), and IAS 34 Interim Financial Reporting, using the group’s accounting policies, that are in line with the
measurement and recognition principles of International Financial Reporting Standards (IFRS) and the AC 500 Standards
as issued by the Accounting Practices Board or its successor and have been consistently applied to prior periods except as
described in note 2.
2. During the period the group adopted the following revised accounting standards:
– IFRS 7 Financial Instruments: Disclosures (amendments resulting from May 2010 Annual Improvements to IFRS)
– IAS 1 Presentation of Financial Statements (amendments resulting from May 2010 Annual Improvements to IFRS)
– IAS 24 Related Party Disclosures (revised definition of related parties)

–

IAS 34 Interim Financial Reporting (amendments resulting from May 2010 Annual Improvements to IFRS)

The adoption of these standards has had no significant effects on these results.

3.

These financial statements incorporate the financial statements of the company, all its subsidiaries and all entities over which it has operational and financial control.

4.

Included in share capital are 24,0 (September 2010: 24,0) million shares which are owned by a subsidiary of the company, and 11,8 (September 2010: 11,8) million shares which are owned by the share incentive trust. These have been eliminated on consolidation.
    6 months 6 months Year
    ended ended ended
    30.09.2011 30.09.2010 31.03.2011
    Unaudited Unaudited Audited
    Rm Rm Rm
5. Revenue      
  Retail turnover 5 428,3 4 581,6 9 936,5
  Interest income (refer note 7) 813,0 736,3 1 486,2
  Dividend income – retail 5,7 6,3 12,1
  Other revenue (refer note 8) 568,1 434,7 935,8
    6 815,1 5 758,9 12 370,6
         
6. Cost of turnover      
  Cost of goods sold (2 893,7) (2 466,3) (5 239,7)
  Costs of purchase, conversion and other costs (262,3) (207,7) (528,4)
    (3 156,0) (2 674,0) (5 768,1)
         
7. Interest income      
  Trade receivables – retail 405,5 344,4 705,2
  Receivables – RCS Group 400,2 385,2 764,2
  Sundry 7,3 6,7 16,8
    813,0 736,3 1 486,2
         
8. Other revenue      
  Merchants’ commission – RCS Group 17,1 15,1 30,9
  Club income – retail 148,6 119,7 248,6
  Club income – RCS Group 2,3 2,5 4,9
  Customer charges income – retail 62,1 21,8 55,7
  Customer charges income – RCS Group 138,5 114,5 249,4
  Insurance income – retail 116,4 90,1 203,2
  Insurance income – RCS Group 53,9 45,3 90,8
  Cellular income – one2one airtime product 26,7 23,6 47,5
  Sundry income – retail 2,5 2,1 4,8
    568,1 434,7 935,8
         
9. Trading expenses      
  Depreciation: land and buildings (3,3) (3,2) (6,4)
  Depreciation: shopfitting, vehicles, computers, and furniture and fittings (146,3) (133,7) (275,9)
  Amortisation (0,2) (0,2) (0,4)
  Goodwill impairment – – (5,8)
  Employee costs: normal (865,2) (742,0) (1 600,2)
  Employee costs: share-based payments (39,9) (19,0) (55,9)
  Occupancy costs: normal (494,2) (434,8) (912,7)
  Occupancy costs: operating lease liability adjustment (14,2) (4,2) (9,2)
  Net bad debt (345,4) (323,9) (632,8)
  Other operating costs (506,4) (416,0) (802,0)
    (2 415,1) (2 077,0) (4 301,3)
         
10. Inventory      
  Merchandise 1 692,7 1 310,6 1 678,8
  Raw materials 75,1 60,4 82,3
  Goods in transit 54,5 12,3 22,5
  Shopfitting stock 17,7 19,9 17,1
  Consumables 3,3 4,2 4,0
    1 843,3 1 407,4 1 804,7
         
11. Operating profit before working capital changes      
  Profit before tax 1 106,9 885,9 2 051,1
  Finance cost 137,1 122,0 250,1
  Operating profit before finance charges 1 244,0 1 007,9 2 301,2
  Interest income – sundry (7,3) (6,7) (16,8)
  Dividend income (5,7) (6,3) (12,1)
  Non-cash items 210,2 150,8 358,0
  Operating profit before working capital changes 1 441,2 1 145,7 2 630,3
         
12. Reconciliation of profit for the period to headline earnings      
  Profit for the period attributable to equity holders of The Foschini Group Limited 699,0 566,3 1 301,8
  Adjusted for the after-tax effect of:      
  Goodwill impairment – effective portion – – 3,2
  Goodwill impairment – – 5,8
  Less: non-controlling interest – – (2,6)
  Profit on disposal of property, plant and equipment (0,2) (0,4) (0,2)
  Loss on disposal of property, plant and equipment 0,7 0,4 0,8
  Headline earnings 699,5 566,3 1 305,6
   
13. Contingent liabilities
 

The Foschini Group has provided RCS Group with a liquidity facility of R603,9 million in respect of their DMTN programme.
This facility was R101,75 million at March 2011.
14. Related parties
  Related party transactions similar to those disclosed in the group’s annual financial statements for the year ended
31 March 2011 took place during the period.