1. Analyst Presentation 2002 Welcome

2. Programme Strategic Review Financial Results Healthcare New Clicks Australia (NCA) Review New Clicks South Africa (NCSA) Review Questions

3. Strategic Review Vision Mission Positioning Statement

4. Our Vision We wish to be a world-class trans-national player, specialised and highly networked with local market responsiveness and accountability, rapid distribution capability, adding value to the quality of life through the convenient supply of health, home and beauty products and services with a preferential interactive relationship with our customers

5. Our Mission To be a major multi-brand retailer of Health, Lifestyle and Beauty products in the Asia Pacific Region by 2005, without limiting our activities and dominance in southern Africa

6. Our Positioning Statement We are world-class originators and distributors of a range of compelling and differentiated health, lifestyle and beauty retail products and services to multiple brand formats in a variety of ownership models.

7. GSF Trevor Honneysett….. David Nurek…………. Allen Zimbler………… Errol Gray……………. Jeff Sher…………….. Peter Green…………. Raymond Godfrey….. Simon Burrow………. Simon Kilner………… George Meiliunas…… Group Leader Non-Executive Chairman Non-Executive Director NCSA Country Leader NCA Country Leader Group Finance Group Merchandise Group Marketing Group IT/Supply Chain Group OD

8. Agenda High-level financial overview Purchase Milton & Associates Healthcare update - South Africa

9. Financial Results for year ending 31 August 2002

10. Income Statement TurnoverR5.5bn+25.7% Operating ProfitR318m+21.3% Operating Margin 5.8% Excluding Discom Operating Profit+31.9% Operating Margin 7.04%

11. Goodwill Balance Sheet Income Statement Rm Rm Link 16.120 0.895 House 78.304 9.042 Price Attack 88.078 1.419 Total182.50211.346

12. Accounts Receivable Increases due to: –acquisitions –franchisees 20022001 Rm Rm SA 120.353 82.630 Aus 76.271 24.640 Total 196.624 107.270

13. Accounts Payable Increases due to extending terms

14. Cash Flow Big Improvement –Improving Working Capital Cash Flow from Operating 2002 2001 Rm Rm 296.927145.337

15. Future Focus Continue to focus on: –Asset turnover (stock turn goal 7x over 3 years) –Cash generation –Improving margins (goal still 8%) - (UPD will lower margin but has high asset turnover) Resulting in improving: –Returns and EVA (ROE goal still 30%)

16. Strengthened Financial structure as we go forward Appointment of CFO in each geography Focus on efficiency improvements Trans-national project: –cost centres to profit centres - franchising –process innovation to reduce overall costs –strict financial regime

17. Loan to Pharmacy (PM&A) 20022001 Rm Rm Loan276.900239.028 Interest charge 45.5 10.1 Cost recovery 11.4 4.0 Interest turn Fees income Link Loan impairment & recoverability

18. PM&A They are budgeting high profit growth as they consolidate Some of the largest stores were acquired Acquisitions stopped - consolidation phase - convert to largest and most profitable chain of Pharmacies in SA Operating profit could exceed 10% if we could integrate (7% otherwise) Cash generating

19. Healthcare SA

20. New Clicks Holdings South Africa NCH Funding & Suspensive Sale PM&A 100% Ownership R1 Billion 76 Stores 56% LIT R2 Billion 248 Stores Franchise Stores

21. New Clicks Holdings South Africa NCH 56% LIT Funding PM&A Franchise Stores 100% Ownership Interest Franchise Fees, LOB, Rebates Wholesale Margin & Rebates Fees for Services

22. Different store ownership models There will always be franchise (LINK) –income from fees, rebates, wholesale profits but if law allows there will also be: pharmacies in Clicks & Discom 100% ownership (PM&A) JV (80%:20% for any of the brands)

23. Merchandising OD / HR Marketing Fin & Admin Logistics IT Store Design Store Develop Supply Chain Distribution Buying Store Services Franchise Stores (0%:100%) Joint Venture Stores (80%:20%) Owned Stores (100%:0%) Centralised services model

24. 56% LIT Funding PM&A R2 Billion 248 Stores Franchise Stores R1 Billion 76 Stores 100% now; JV in future CLICKS R2,7 Billion 261 Stores DISCOM R721 Million 182 Stores New Clicks South Africa PRESENT PHARMACY NETWORK DESIRED FUTURE PHARMACY NETWORK

25. A nationwide network of +/- 800 efficient, compliant, professional and profitable pharmacies within various ownership models The Objective

26. The Integrated Healthcare Model Pharmacy Clinical Care Retail consumer health Back Shop Front Shop

27. Intercare A close relationship with the doctors who prescribe Objective is to improve pharmacy turnover Pilot project

28. Link Investment Trust Budgeting for break-even Funding new initiatives Link - The best known pharmacy brand Income from –franchise fees - potential for new members, –rebates –own brands

29. UPD transaction reminder R 2 billion turnover, NPAT R43m Transaction to be funded through issue of 39 024k New Clicks shares at R7.20 P/E for valuation was 6.5x Earnings enhancing Awaiting approval from Competition Commission

30. Healthcare Legal Issues

31. Status of Law Ownership –still awaiting regulations –under-serviced areas - Discom –need urban stores as well (PM&A) Single Exit Pricing –schedule 3, some only –modelling difficult for total pharmacy –believe no impact on UPD Court Case

32. State of the Industry Healthcare in SA is in crisis Need for greater affordability & access Potential changes to Legislation – Lay ownership/deregulation – Professional Fee – Dispensing Doctors Fragmented Industry Opportunities for greater efficiencies We are the best suited to play a role

33. Jeff Sher Country Leader

34. Introduction - a perspective The year in review Our pharmacy model The year ahead Summary Agenda

35. August 2001

36. Australian Management Forum Shared Services

37. 2001/02 Performance

38. Results – Aug 2002 Sales up 13.9% Operating Profit up 22.9%

39. Results – Aug 2002 Franchise Income up 99.2% Operating Profit up 117.5% Store Growth 10 NOTE! Pre-allocation of Support Office costs

40. House Key Issues Response to competitive environment through differentiation - Private label - Direct imports Government home loan scheme ends Competent team now in place NZ on hold due to supply chain complications

41. Results – Aug 2002 Sales Up 13.2% Operating Profit Up 10.34% Store Growth 9 NOTE! Pre-allocation of Support Office costs

42. Priceline Key Issues Why did we only open 9 stores Intense competition – our response –Lifestyle category repositioning –Differentiation through imports –Loyalty - a positive outcome Leverage to be gained with Price Attack Margin focus Loyalty - a positive outcome Stock levels - growth due to strategic opportunity Operating Profit - 7.61% to sales

43. A Snapshot 94 stores Average turnover per store - $950 000 Franchise fees - 5% on sales Advertising fee - 3% of sales Local area marketing - 1% of sales Master franchise arrangement - WA, SA - 1% franchise fee, 3% marketing fee

45. Opportunities Synergy with Sunday Group - access to 1800 formulations Private label Easily transported Monopolistic environment High margin

46. Make-up of the industry Regulatory environment Our offer How income is generated Store growth

48. Number of pharmacies in Australia: Approximately 4,900 Bannered pharmacies: Approximately 1,900 (39%)

49. Retail Pharmacy Sales Mix Retail Pharmacy $6.5b Non Pharm. $1.2b Prescriptions $4.1b OTC $2.4b Non Sched $639m S2/S3 $550m 72%

50. Amcal 395 Guardian 264 Chemworld 131 Pharm Adv. 91 Soul Patt 230 Med. Shoppe 7 Healthsense 110 Full Life 40 Terry White 105 Chemmart 255 SIGMAAPIMAYNE WHOLESALERS

51. Wholesaler & Pharmacist Relationship Wholesalers guarantee loans for pharmacists to acquire pharmacies. The pricing mechanism for pharmacists is artificially inflated, 1:1 ratio of turnover to goodwill Pharmacists align to a banner through loose agreement Distribution on a twice-a-day basis Banner groups offer marketing programmes and some operational support Private label products are key to the relationship

52. Regulatory environment Agreement between Government & Pharmacy Guild No corporation can have pecuniary interest Geographic restriction Usage clause restriction - landlord Limit to numbers in shopping centres Regulations applied by Pharmacy Board - layout of stores Approval numbers Pharmacy Act - differs in each state

53. Sales Pharmacy Paradox Prescriptions & medicines back of store Front of store 70%30% Costs 20%80% Margins 10%32%

54. Our Offer Category management - increased margin Rebalance front and back of shop - increase sales Common IT platform Marketing programme - including ClubCard Retail services (merchandising and space management) The Pharmacy Academy Operational focus - shopfloor productivity Brand equity

55. Benefits for Fees Annual franchise fee - a flat amount Distribution fee linked to purchases on front of shop IT annual maintenance fee Marketing fee linked to marketing programme costs Supplier rebates Significantly - no capital employed

56. Store Growth Three Opportunities Existing Pharmacies convert to Priceline model Convert Priceline stores to Pharmacies through a franchise arrangement Secure new locations and through a relationship with pharmacists acquire approval numbers Objective 14 - 20 Stores secured by August 2003 1000 by ??

57. The Year Ahead

58. The Year Ahead – Store Growth 14 - 20131216

59. AMF Jeff Sher……………… George Meiliunas…… Alan Wein……………. Amanda Brook………. Rob Ellis……………… Bradley Wein………… Andrew Grant……….. Simon Burrow……….. Trevor Harris………… Country Leader Organisational Development Brand Leader - House Brand Leader - Priceline Brand Leader - Price Attack Franchising Logistics/IT Marketing Finance A Committed Team - Going Places

60. Summary Price Attack, full year of profit Controlled growth of costs Loyalty to deliver Leverage gains in merchandise Roll-out of pharmacy A Positive Outlook

61. Errol Gray Country Leader

62. NCSA performance NCSA achievements NCSA year ahead Agenda

63. NCSA Performance Sales up 17.1% Operating Profit up 15.3%

64. Comparative without Discom Sales up 18.2% Operating profit up 27.2%

65. Clicks Performance Sales up 15.4% Operating Profit up 23.7% Store Growth 21

66. Clicks Existing Store Growth 0 2 4 6 8 10 12 SeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugust % increase 2001/2002 Cumulative 2000/2001 Cumulative

67. Clicks Key Issues Repositioned Clicks - Live Life Beautifully CRM loyalty programme - Data mining - ClubCard relaunch Aggressive store upgrade Stock reduction Service campaign New healthcare statement - 20 stores

68. Discom Performance Sales up 12.1% Operating Profit Down Stores Refurbished

69. Discom Existing Store Growth -4 -2 0 2 4 6 8 10 12 14 SeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugust % increase 2001/2002 Cumulative 2000/2001 Cumulative

70. Discom Key Issues Focus on re-engineering the margin mix Exploring new primary health statement in store Test a hair salon in Mitchell’s Plain store Continue to develop private label Ongoing focus on expenses Ethnic haircare focus - R100m in sales Leadership

71. Music Division Performance Sales up 24.9% Operating Profit up 104% New Stores 7

72. Music Existing Store Growth -4.00 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 September October NovemberDecember January February March April May June July August % increase 2001/2002 Cumulative 2000/2001 Cumulative

73. Music Division Key Issues Maintaining margins Increased stockturns CDW opening two new stores Market dominance - 35% Bucking international market trends Leadership

74. The Body Shop Performance Sales R27.1m Operating Profit R3.4m Store Growth 11

75. The Body Shop Key Issues Mature brand internationally New in SA - years of growth ahead Brand being revitalised internationally First corporate to be awarded a Master Franchise

76. NCSA Achievements Stock management Discom repositioning Data mining SAMF

77. Stock Management Next year goal R250m improvement Centralising imports, single item picking, algorithms Stock turn 5x, 6x, 7x, over next years to generate cash (JIT)

78. NCSA DC's Year on Year Stock R 0 R 25,000,000 R 50,000,000 R 75,000,000 R 100,000,000 R 125,000,000 R 150,000,000 R 175,000,000 R 200,000,000 R 225,000,000 R 250,000,000 R 275,000,000 R 300,000,000 R 325,000,000 R 350,000,000 R 375,000,000 SepOctNovDecJanFebMarAprMayJunJulAug Financial Months Selling Value (Rands) 1998/1999yr 1999/2000yr 2000/2001yr 2001/2002yr

79. NCSA Stocks 600000 700000 800000 900000 1000000 1100000 1200000 1300000 1400000 1500000 SONDJFMAMJJA month value 2001/2002 2000/2001

80. The Year Ahead - Store Growth 24879

81. SAMF Errol Gray…………….. Andre Vermeulen……. Lara Bryant…………… Trevor Vroom………… Mike Harvey………….. Colin Robb…………… Monica Goertz……….. Simon Kilner…………. Byron Hofmeyr………. Country Leader Finance Marketing & Merchandise Brand Leader - Clicks Brand Leader - Discom Brand Leader - Music Division Brand Leader - Healthcare Supply Chain IT

82. Year Ahead Sustainable stockturn improvement Discom profitability Healthcare integration and performance Clicks revitalisation Focused brand performance

83. Our Positioning Statement We are world-class originators and distributors of a range of compelling and differentiated health, lifestyle and beauty retail products and services to multiple brand formats in a variety of ownership models.

84. Thank You