1 Annual General Meeting 24 January 2005

2 Review of 2004 Disposal of Australian operations Q4 Clicks performance disappointing Improved performance from Discom Strong performance from UPD Deflationary environment Challenging pharmacy environment Medicine pricing regulations introduced Legislation challenged in court

3 Turnover update R'm 4 months to 31 Dec months to 31 Dec 2003 All store growth Same store growth Clicks (excl. pharmacy) % 7.9% Discom % 9.6% Entertainment % 22.8% The Body Shop % (2.2%) Retail excl. pharmacy % 9.9% Pharmacy Total retail % UPD % Intragroup elimination (148.4) - Total group %

4 Operational update Pharmacy increased turnover but still making losses with reduced margins & will bring additional administration costs into shared services As pharmacies integrate into Clicks, losses will reduce IT systems upgrades will ultimately improve efficiency, but currently increasing costs Discom continues to improve Entertainment doing well, but at lower margins The strong volume growth in UPD has more than compensated for the slight loss in margins resulting from the new pricing environment

5 Pharmacy – legislative situation Supreme Court unanimously declared legislation “invalid and of no force and effect” Department of Health has submitted application for leave to appeal to the Constitutional Court - argument to be heard on 15 March 2005 In the meantime, the legislation is not reinstated

6 Pharmacy – store projection PM&AHyper- pharm Clicks Pharm Clicks + Clicks Future Total Oct ’ Closed Transferred (8)-1-7- New Jan ’ New licences Target Dec ‘ (subject to licences) (received but not yet implemented) A further 52 licence applications submitted – awaiting approval

7 The year ahead Strategy remains, but adapted for current environment Pharmacy works as a category within Clicks Transforming systems will provide greater efficiency Challenge to operate in a low/no inflation environment Continued focus on operational improvement & efficient capital management