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Approach and reporting frameworks

Approach

Following Blue Label's listing on the Johannesburg Stock Exchange in 2007, the Group has pursued growth both organically and acquisitively. The Group's drive to extend its distribution capabilities wider and deeper across the markets within which it operates is complemented by the robustness of our information technology systems and the ability to continuously add additional products and services at marginal cost. The core business continues to perform well while a number of our acquisitions, most notably Cell C, have performed poorly. This integrated annual report aims to document our unique value creation model and provide a holistic view of the Group's operations. Simultaneously, the report shares with stakeholders Blue Label's integrated thinking as it implements its strategy across the Group.

In following the recommendations of the King Report on Corporate Governance for South Africa, 2016 (King IV), the JSE Listings Requirements and the framework set out by the International Integrated Reporting Council (IIRC), Blue Label's process aims to link material Group information with reference to strategy, governance, performance, remuneration, risk and opportunities and prospects in a manner which enables stakeholders to obtain a view of the commercial, social and environmental context within which the Group operates. The report aims to provide a balanced view of the material issues the Group is dealing with and how these are managed with respect to the six capitals as defined by the IIRC's Framework.

This integrated annual report is the Group's primary report. It covers its business segments and its financial and operational performance for the financial year ended 31 May 2020. Non-financial and sustainability information is limited to the South African operations.

The report contains issues material to our strategy and of interest to our stakeholders. Blue Label has mapped its stakeholders, in particular its relationship with its employees, providers of capital, the media, customers, business partners and suppliers, communities, educational institutions and government bodies. These stakeholder groupings receive more structured engagement processes than other groupings and the level of inclusivity with these stakeholders is correspondingly more integrated into the Group's strategic thinking (refer to the stakeholder relations section).

The integrated annual report provides a detailed understanding of the financial aspects linked to the operational aspects of the Group's business. The annual financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), the JSE Listings Requirements and the Companies Act of South Africa, No 71 of 2008, as amended.

This report contains the notice of Annual General Meeting (AGM), proxy form and information to enable shareholders to exercise their vote on the resolutions to be put to the meeting. The notice and other related disclosures have been condensed into a booklet for physical distribution to shareholders at their request. The complete integrated annual report is also available for viewing and download via the Blue Label website.

Various supporting documents to the Group's library of disclosure, such as results presentations, short-form advertisements and SENS announcements are accessible via the website.

Ultimately, the report aims to provide stakeholders with the means to assess the Group's ability to create and sustain value over the short, medium and long term.

Reporting frameworks

This report has been compiled in line with the disclosure requirements of King IV, the JSE Listings Requirements and the principles of the International Integrated Reporting Framework.

Blue Label utilises a risk-based model which identifies risks and stakeholder issues, in order to determine the material content of the report. Material matters are defined as those matters that substantively affect the ability of Blue Label to create value over the short, medium and long term.

Board responsibility and approval statement

Our process of integrated reporting continues to evolve and at this stage the Group has not sought external assurance of the content or part thereof aside from the annual financial statements, which the external auditor, PricewaterhouseCoopers Inc. (PwC), has provided assurance as confirmed in the independent auditor's report. The Board acknowledges its responsibility to ensure the integrity of the integrated annual report and is assisted in this regard by the Audit, Risk and Compliance Committee (ARCC). The Board has applied its collective mind to the preparation and presentation of the integrated annual report and has concluded that it is presented substantially in accordance with the principles of the International Integrated Reporting Framework.

The integrated annual report was approved by the Board and signed on its behalf by

LM Nestadt

Chairman
23 September 2020