1. Baugur Group hf. Presentation for Investors January 13th 2003
Jón Ásgeir Jóhannesson, CEO, Baugur Group
Jón Björnsson, CEO, Baugur-Iceland
Jón Scheving Thorsteinsson, CEO, Baugur-ID

2. Overview Key Figures from Baugur Group Quarter Statement.
BAUGUR GROUP Third Quarter Results
Overview
Key Figures from Baugur Group Quarter Statement.
Operation and Financial Position:
- Baugur – Iceland
- Baugur – USA
- Baugur - ID
Future Prospects.
Questions and Answers.

3. Chairman of the Board: Hreinn Loftsson CEO: Jón Ásgeir Jóhannesson
Baugur Group hf.
Chairman of the Board: Hreinn Loftsson
CEO: Jón Ásgeir Jóhannesson
Baugur- Iceland
74 stores in Iceland
11 stores in Sweden
CEO
Jón Björnsson
Baugur- USA
(Baugur Invest ehf.)
Bonus Stores
359 stores
CEO
Jack Koegel
Baugur – ID
Big Food Group %
House of Fraser 7,45 %
Stoðir – 45.7 %
SMS – 50 %
CEO
Jón Sch.Thorsteinsson

4. Key Figures Baugur Group profit was ISK 8.8 billion.
BAUGUR GROUP Third Quarter Results
Key Figures
Baugur Group profit was ISK 8.8 billion.
Profits result from sale of holdings in Arcadia and unrealised gains from holdings in the UK.
Cash at the end of the quarter was ISK 14.1 billion.
Total turnover for the period came to ISK 38.5 billion.
Equity is ISK 19.2 billion. 76% increase since 31 August.
Exchange rate ISK/USD 0,0125
Exchange rate ISK/GBP 0,0078

5. BAUGUR GROUP Third Quarter Statement
Key Figures
EBITDA for Baugur Iceland was ISK 911 million.
Losses on operation of Baugur USA totalled ISK 892 million.
Losses before financial items and depreciation for Bonus Stores have been cut from 8.2% to 1.7% in November, indicating that the company is on the right track following extensive cost-cutting.
Baugur ID profit amounted to ISK 10 billion.
Financial restructuring concluded in November resulting in substantial reduction in interest payments.
Exchange rate ISK/USD 0,0125
Exchange rate ISK/GBP 0,0078

6. Key Figures Operating income Earnings before taxes Profit for the year
BAUGUR GROUP Third Quarter Statement
Key Figures
YTD
Q3 ’02
Q2 ’02
Q1 ’02
Operating income
Earnings before taxes
Profit for the year
Net liabilities
Working capital by ops.
Cash at end of quarter
38,585
6,663
8,838
440
-1,614
14,121
12,538
6,491
8,680
440
-548
14,121
12,871
-637
-354
15,018
-968
648
13,176
809
512
12,189
-98
650
All amounts in ISK million
Exchange rate ISK/USD 0,0125
Exchange rate ISK/GBP 0,0078

7. Key Indicators from Balance Sheet
BAUGUR GROUP Third Quarter Statement
Key Indicators from Balance Sheet
2002
21,074
2,372
26,964
48,038
7,518
7,388
12,585
27,491
1,303
19,244
2002
27,397
3,784
12,309
39,706
11,619
6,336
9,522
27,477
1,311
10,918
2001/02
24,635
3,048
13,022
37,657
4,836
6,480
13,070
24,386
1,962
11,309
Balance Sheet
Fixed assets
Goodwill
Current assets
Total assets
Short-term liabilities
Non-interest bearing liabilities
Long-term liabilities
Total liabilities
Minority share
Equity
Total liabilities and equity
All amounts in ISK million
Exchange rate ISK/USD 0,0125
Exchange rate ISK/GBP 0,0078

8. Baugur Iceland

9. Principal Results BAUGUR Iceland Third Quarter Results
Sales of goods ISK 24.9 billion; 10.2% increase from same period in 2001.
EBITDA ISK 911 million.
Decrease in margin and proportionally higher rent and housing costs main reasons for poorer results.
Substantial decrease in retail shopping from Sep. – Nov. over 5%, based on Trade and Services Retail Index.
Increased market share of companies owned by Baugur Iceland.
Rent and housing costs increased proportionally over ISK 348 million for the first 9 months of the year.
Cost-cutting measures have returned results.
Payroll costs were reduced proportionally by ISK 223 million over the first 9 months of the year.
Other costs were reduced proportionally by ISK 99 million over the first 9 months of the year.
Substantial reduction in head office costs between quarters.
Improved performance of smaller non-food companies.
Substantial reduction in inventory brings short-term increase in working capital and longer-term increase in margin.
Exchange rate ISK/USD 0,0125
Exchange rate ISK/GBP 0,0078

10. All amounts in ISK million
BAUGUR Iceland Third Quarter Results
YTD
Q3 ’02
Q2 ’02
Q1 ’02
Operation
Operating income
Contribution
EBITDA
EBIT
EBT
Profit for the period
24,980
8,153
8,534
8,293
6,176
2,110
1,990
2,076
911
301
281
329 22
-16
-20 58
-293
-179
-309
195
-297
-131
-302
136
All amounts in ISK million
Exchange rate ISK/USD 0,0125
Exchange rate ISK/GBP 0,0078

11. Christmas Sales 4% increase in Christmas sales for Iceland and Sweden.
Baugur Iceland Third Quarter Results
Christmas Sales
4% increase in Christmas sales for Iceland and Sweden.
Christmas sales in Iceland were stagnant.
Severe competition in groceries, entertainment goods and books.
Increase in sales of electronic goods.
Unusually warm weather impacts sales of clothing and shoes.
Largest retail centers holding their sale compared to 2001.
Good start to post-season sales shows that consumers have less to spend.
Christmas month results better than last year.

12. Prospects for Baugur Iceland
Baugur Iceland Third Quarter Results
Prospects for Baugur Iceland
Inventory is good and postseason sales are going well.
No prospects for increase in consumer spending.
Further cost-cutting needed. - Synergy in purchasing. - Rent and housing costs are high. - Constant cutbacks in other costs.
Improved performance needed from smaller non-food stores.
Development of trade marks in Sweden.
Debt restructuring following syndicated loan.

13. Baugur USA

14. BAUGUR-USA Third Quarter Results
Key Figures
Baugur USA lost ISK 892 million in the first three quarters.
Sales of goods ISK 13.5 billion.
EBITDA in the first three quarters is negative of ISK 1,090 million.
Substantial write-downs following reassessment of inventory.
Write-downs from store closures already charged to accounts.
Exchange rate ISK/USD 0,0125
Exchange rate ISK/GBP 0,0078

15. All amounts in ISK million
BAUGUR-USA Third Quarter Results
YTD
Q3 ’02
Q2 ’02
Q1 ’02
Operation
Operating income
Contribution
EBITDA
Profit for period
13.507
3.269
-1.090
-892
4.373
1.175
-251
-278
4.306
611
-854
-539
4.828
1.483 15
-75
All amounts in ISK million
Exchange rate ISK/USD 0,0125
Exchange rate ISK/GBP 0,0078

16. Baugur USA Prospects and Plan for this Year
BAUGUR-USA Third Quarter Results
Baugur USA Prospects and Plan for this Year
Increase in Bonus Stores share capital by Bonus Group amounted to $ 9 million.
Bill Fields started as Chairman of the Board.
New CEO, Jack Koegel started work in November.
Sale of Bonus Stores in Florida in process.
Plans for next year assume a 5% increase in sales, store to store and substantial cost-cutting.
Turnaround will take longer than anticipated, profit expected in the financial year 2003.
Plans to move Bonus Dollar Stores closer to the Bónus model in Iceland and the Faeroe Islands.

17. Trend in Sale of Goods and EBITDA over 3 Years
BAUGUR-USA Third Quarter Results
Trend in Sale of Goods and EBITDA over 3 Years
Sale
EBITDA % 1Q
2002
2 Q
3 Q
4 Q
20002
2003
1 Q
2004
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
Amounts in $

18. Baugur ID

19. Principal Results BAUGUR-ID Third Quarter Results
Baugur-ID profits ISK 10,027 million in first three quarters.
A 20.1% holding in Arcadia Group was sold for approximately ISK 21,400 million; the price has been paid in full.
Profits derived from sale of Arcadia and unrealised gains on other UK holdings. Profit from Arcadia sale was ISK 7,400 million and price gainst on equity holdings from March to August 2002 was approximately ISK 1,200 million.
Baugur Group hf. acquired an 18.08% interest in the UK retail company Big Food Group for approximately £25 million and a 7.5% interest in the UK retailer House of Fraser for approximately £10.5 million.
Holdings Icelandic property company Stoðir have been increased to 47.5%. The company is trading strongly and profits in the first three quarters amounted to approximately ISK 545 million.
50% interest in SMS in the Faeroes: the company is going well and according to plan.
Exchange rate ISK/USD 0,0125
Exchange rate ISK/GBP 0,0078

20. BAUGUR-ID Third Quarter Results
YTD
Q3 ’02
Q2 ’02
Q1 ’02 98
-706
1.873
10.027 38
-452
212
9.088 33
-160
780
488 27
-94
881
451
Operation
Operating income
EBITDA
Impact of Ass. comp.
Profit for period
All amounts in ISK million
Exchange rate ISK/USD 0,0125
Exchange rate ISK/GBP 0,0078

21. The Big Food Group Mar-02 Mar-03 Mar-04 Mar-05 £ mill. EBITA 79 63 8193
Depreciation 85 91 95
EBITDA
158
148
172
188
Rent 73 75 77 80
EBITDAR
231
223
249
268
Net financial costs 33 30 27 26
Capex 46
108
117
125
EBITA interest cover
2,4x
2,1x
3,0x
3,6x
EBITDAR fixed charge cover
2,2x
2,5x
EBITDAR fixed charge cover (capex)
1,7x
1,1x
1,3x
1,4x
                                                  
Net debt
404
257
234
Settlement:
29- Mar-02
Mar-03
Mar-04
Mar-05
Gearing
65%
40%
35%
All amounts in £ mill.
29%
206

22. EBTIDAR fixed charge cover EBTIDAR fixed charge cover (capex)
House of Fraser
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
£ mill.
EBITA
                                                  
27,5
38,6 37 40 42
Depreciation
25,5
27,4 30 32 34
EBITDA 53 66 67 72
76,0
Rent
33,4
39,7
41,2
51,6
53,7
EBITDAR
86,4
105,7
108,2
123,6
129,7
Net financial costs
9,4
13,3
11,5 12
12,3
Capex
60,1
30,9
40,0
45,0
45,0
EBITA interest cover
8,3x
7,02x
8,4x
8,7x
8,9x
EBTIDAR fixed charge cover
2,02x
2,0x
2,05x
1,94x
1,9x
EBTIDAR fixed charge cover (capex)
0,84x
1,26x
1,17x
1,14x
1,16x
Net debt
76,6
65,1
60,3
69,8
78,0
Gearing
31,40%
28,50%
26,00%
29,30%
31,90%
All amounts in £ mill.

23. EBTIDAR fixed charge cover EBTIDAR fixed charge cover (capex)
Somerfield
Apr-01
Apr-02
Apr-03
Apr-04
Apr-05
£ mill.
EBITA
-2,4
28,1
49,2
59,2
71,2
Depreciation
86,1
85,8
85,8
85,8
85,8
EBITDA
83,7
113,9
135
145
157,0
Rent
93,5
96,6
101
101
101
EBITDAR
177,2
210,5
236
246
258
Net financial costs
27,4
13,3 12 10 8
Capex 72
116,5
40,0
45,0
50,0
EBITA interest cover
0,09x
2,11x
4,10x
5,92x
8,9x
EBTIDAR fixed charge cover
1,47x
1,92x
2,09x
2,22x
2,37x
EBTIDAR fixed charge cover (capex)
0,92x
0,93x
1,54x
1,58x
1,62x
All amounts in £ mill.

24. Prospects for Baugur ID
BAUGUR-ID Third Quarter Results
Prospects for Baugur ID
Many new opportunities do to the strong financial position. Special interest in undervalued retail companies and helping to improve their performance.
Continued interest in UK retail chains; a 2.95% share was acquired in Somerfield in December.
Investments in real estate holdings is a logical step in expanding Baugur Group’s operations.

25. Future Prospects Exciting times ahead.
BAUGUR GROUP Third Quarter Results
Future Prospects
Exciting times ahead.
Emphasis on Baugur Group’s UK operations. For this purpose Baugur Group hf. has opened an office in London.
The financial position of the company is extremely strong, with cash increasing by ISK 13.5 billion since 31 August.
In light of the facourable results, a decision was made at a shareholders’ meeting last 20 November to pay out extra dividends to shareholders amounting to 15% of the nominal value of share capital.
The price of Baugur Group stock is up by 27% since 31 August based on the posted closing price on 10 January.
Exchange rate ISK/USD 0,0125
Exchange rate ISK/GBP 0,0078

26. Baugur Group hf.
January 13th 2003