Truworths International has pleasure in presenting its Integrated Report for the 2016 reporting period. This is our sixth year of integrated reporting and we remain committed to presenting a balanced assessment of our ability to create value for stakeholders in the short, medium and longer-term.
Our Integrated Report is aimed primarily at our shareholders, who are the principal providers of financial capital, and the investor community locally and abroad. While other stakeholder groups influence our business, most notably our customers and employees, their needs and interests are addressed through other communications media.
Reporting scope and boundary
This report covers the integrated performance of the operations of Truworths International and its subsidiaries for the 52-week period ended 26 June 2016. Following the acquisition of Office in the UK effective 4 December 2015, our results are now being reported for the Truworths and Office operating segments.
Risks, opportunities and outcomes attributable to or associated with any stakeholder and which have or may have a significant impact on our ability to create and sustain value are addressed throughout the report in the relevant context.
The Truworths business operates primarily in South Africa and has a retail presence in eight other African countries. Office operates principally in the UK, with a store base in Germany and the Republic of Ireland.
All Group financial reporting complies with International Financial Reporting Standards, the South African Companies Act and the JSE Listings Requirements. Management has applied the guiding principles of the King Code of Corporate Principles 2009 (King lll) applicable to integrated reporting as well as the Integrated Reporting Framework of the International Integrated Reporting Council.
We have applied the principle of materiality in determining the content and disclosure in our Integrated Report. Management's judgement has been used in determining the issues that could substantively affect the Group's revenue and profitability, and its ability to create value over time, or that could influence investors' assessments of our ability to create value. This excludes information which could lead to loss of our competitive advantage. We report on four material issues which the board believes could impact positively or negatively on value creation in the business.
Capitals of value creation
The Group utilises various capital resources in the creation of value. The most significant forms of capital are financial, intellectual, human, manufactured and social and relationship capital, and to a lesser extent, natural capital.
While the Group has chosen not to structure its Integrated Report according to these capitals, the relevance and impact of these capitals and their role in value creation have been discussed in the relevant sections of this report.
The Group's external auditor, Ernst & Young Inc. (EY), has provided assurance on the annual financial statements and expressed an unmodified audit opinion.
EY has also reviewed the accuracy of the financial information extracted from the annual financial statements that appears in the Integrated Report.
The content of the Integrated Report has been reviewed by the directors. Accredited service providers have measured and provided assurance on selected non-financial metrics included in the Integrated Report, while management has verified the processes for measuring all non-financial information.
Our Integrated Report is independently assessed each year to ensure we continue to report in line with best global practices.
The directors confirm that the Integrated Report fairly represents the material issues and the integrated performance of the Group for the period under review.
The board believes that the Integrated Report complies in all material respects with the International Integrated Reporting Framework.
The Audit Committee, which has oversight responsibility for the integrity of the Integrated Report, recommended it for approval by the directors. The board unanimously approved the Integrated Report for release to shareholders.
Independent non-executive Chairman
Chief Executive Officer