We are pleased to present our shareholders with the 2018 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 2017 to 31 March 2018. Our expanding international footprint resulted in a change to our reporting structure to now include three business segments:

  • TFG Africa, referring to all our operations on the African continent through 20 established brands (refer to our brands).
  • TFG London, referring to the consolidated performance of Phase Eight, Whistles and Hobbs.
  • TFG Australia, referring to the consolidated performance of Connor, Johnny Bigg, Rockwear, Tarocash and yd. – collectively Retail Apparel Group (“RAG”) – and selected G-Star RAW franchise stores in Australia.

All data applies to the Group, unless specifically indicated otherwise.

The report aligns with the following requirements:

  • King IV Report on Corporate Governance™ for South Africa 2016 (King IV™)
  • The Companies Act of South Africa, No. 71 of 2008, as amended
  • JSE Listings Requirements
  • The International Integrated Reporting Council’s <IR> Framework (referred to as “the Framework”)

The content of 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 have been integrated into and considered against our business strategy, risks and opportunities, while considering stakeholder perspectives. Matters were identified using the Framework’s process guidance and apply to the Group, albeit with different levels of likelihood and impact.

Read more about our process and relevant matters.

Data in this report, relating to financial, economic, social and environmental indicators, remains comparable and consistent to our previous report for 2017. However, the following events should be taken into account while reading the report and assessing our performance and prospects as they may affect the comparability of financial and non-financial information:

  • The acquisition of RAG in Australia effective 24 July 2017, included for eight months in the 2018 financial year.
  • The accelerated bookbuild launched on 31 July 2017 to fund the acquisition of RAG, which resulted in the issue of 17,2 million ordinary shares.
  • The acquisition of Hobbs in the United Kingdom effective 25 November 2017, included for four months in the 2018 financial year.
  • The acceleration by the Group of the put/call arrangement to acquire the remaining c.15% shareholding owned by management in TFG Brands (London) Limited effective 15 December 2017.

Read more about the impact and scope of these events in the Chief Financial Officer’s report.


This report is a concise communication, complemented by further reporting elements and information available in the investor centre on our website at

Non-financial information provided in this report was not assured externally, other than indicated below.

Reporting element
and purpose
Target audience external Assurance status
and provider
Annual financial statements Shareholders, investment
community and analysts
Audited by Deloitte & Touche
(see external audit report)
King IVTM register All stakeholders No external assurance
The Foschini Group Limited Remuneration Committee report
and charter
Shareholders, investment
community and analysts
No external assurance
TFG sustainability overview report All stakeholders No external assurance
B-BBEE credentials and scorecard All stakeholders Assured by Empowerdex

Combined assurance

The Group refined its approach to combined assurance during the year, aligning its process with King IV™. The combined assurance process continues to enhance risk management governance and oversight. The five lines of defence approach identifies those responsible for internal controls, risk management and independent assurance.

Refer to the Audit Committee’s report and the Risk Committee’s report for more information.


Feedback on and requests for printed copies of the integrated annual report can be addressed to the Company Secretary whose contact details are available in company information.

Should you elect to receive regular investor-related electronic communication from TFG, kindly provide your email address by emailing our Investor Relations department at


This report contains certain forward-looking statements regarding the results and business activities 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.


The Audit Committee recommended the approval of the integrated annual report and the annual financial statements to the Supervisory Board. The Supervisory Board acknowledges its responsibility for ensuring the integrity of the integrated annual report and collectively reviewed and assessed the content thereof. The Supervisory Board believes that the integrated annual report presents the material matters that impact the Group and that it is a fair representation of TFG’s integrated performance, presented in accordance with the Framework.

The Supervisory Board approved the 2018 integrated annual report on 29 June 2018.

M Lewis

A D Murray