2. Outline of presentation Introduction & StrategyTrevor Honneysett HealthcareTrevor Honneysett Financial ResultsPeter Green New Clicks South AfricaErrol Gray New Clicks AustraliaJeff Sher ConclusionTrevor Honneysett

3. Review of New Clicks Strategy Healthcare Growth Value Results Efficiency Opportunity Today’s Focus Tomorrow’s Vision

4. New Clicks Strategy Strengthen/rejuvenate SA retail brands Australian retail brands Drive efficiency & productivity through Shared Services Boost profitability through improved turnover & margins Create value for stakeholders World class Trans-national Dominate Southern Africa Australasia Specialised Health Beauty Lifestyle Multiple brands Variety of ownership models Today’s Focus Tomorrow’s Vision

5. Multibrand Strategy Lifestyle BeautyHealth Consolidated Retail Pharmacy Specialist Wholesale

6. Merchandising OD / HR Marketing Fin & Admin Logistics IT Store Design Store Develop Supply Chain Distribution & Wholesale Buying Store Services Franchise Stores (0%:100%) Joint Venture Stores (e.g. 80%:20%) Owned Stores (100%:0%) Shared Services & Multiple Ownership

7. Why Healthcare? Paradigm shift occurring Positioned to lead change Affordable healthcare Growth of business South Africa –PM&A + Link + UPD Australia –Priceline Pharmacy franchise model Integrated channel to market

8. The Healthcare Opportunity Industry facing tough challenges Pharmacists seeking alliances to improve efficiency & productivity Corporate ownership/partnership models thriving in many markets New Clicks can add significant value –funding –bulk buying –retail services & experience

9. New Clicks Holdings Limited New Clicks South Africa Clicks / Discom 100% now JV in future 445 stores (267 Clicks + 178 Discom) Today’s Structure Purchase Milton & Associates Funding 76 stores Interest56% Link Investment Trust 250 stores Franchise Stores Fees for services UPD Multicare Independents Distribution 5 200 customers

10. New Clicks Holdings Limited New Clicks South Africa Discom 100% 178 stores Post Deregulation Structure Clicks + Pharmacy 100% / JV 343 stores Distribution UPD Multicare Independents Migration of pharmacy licences Selected stores to convert 56% Link Investment Trust 250 stores Franchise Stores Fees for services

11. Australian Healthcare Strategy Measured approach Sustaining pharmacists’ goodwill Compliant franchise format Implement three scenarios: –Convert existing pharmacies to Priceline Pharmacy –Convert Pricelines to Priceline Pharmacy –Secure new locations Alliance - wholesale distribution

12. Our Healthcare Strategy Extend New Clicks retail presence & expertise into pharmacy Establish (within five years) national networks of efficient, compliant & profitable low-cost drugstores in South Africa & Australia Promote co-ownership model in South Africa Roll out franchise model in Australia Improve front to back shop ratio Synergies from combining pharmacy with current offering - lower overheads & increase footfall Increase net margin

13. Financial Results Peter Green

14. Performance Feb 2003Feb 2002% Turnover (R’m)3 436.72 792.423.1 Turnover growth excluding UPD & Price Attack11.2 Headline earnings (R’m)123.7106.416.3 Headline EPS (Cents)38.535.48.8 Diluted headline EPS (Cents)37.033.510.4 Gross margin (%)26.829.0(7.6) Operating margin (%)6.26.3(1.5) Net tangible asset value per share (Cents)3713544.8

15. Undiluted headline earnings per share At 28 February 2002 previously reported39.8 Provision for PM&A interest(4.4) Restated 28 February 200235.4 Increased by: Acquisitions3.3 Organic growth3.4 Decreased by: Cost of acquisitions(3.6) Impact of exchange rate movement - At 28 February 200338.5

16. Operating profit R’000Feb 2003Feb 2002% Clicks139 294140 131(0.6) Discom(2 214)(13 447)n/a Music Division18 62515 53219.9 Body Shop3 3571 004234.4 Link Investment Trust987(1 812)n/a Intercare(362)(759)n/a Priceline35 84032 14511.5 House4 0534 240(4.4) 199 580177 03412.7 Price Attack4 885-- UPD10 095-- Total group214 560177 03421.2

17. Clicks turnover growth R’000Feb 2003Feb 2002% Lifestyle643 866611 7275.3 Health & Beauty878 527742 49718.3 1 522 3931 354 22412.4

18. Segmental contribution – Operating profit

19. Group operating margin

20. Interest Feb 2003 R’000 Feb 2002 R’000 % Change Interest received (excluding loan to PM&A)2 3671 46261.9 Interest paid45 12130 42348.3 Net interest paid42 75428 96147.6 Increase due to: Increase in rates Funding for PM&A Funding for acquisition of Price Attack

21. PM&A R’mFeb 2003Aug 2002 Loan to PM&A283.1276.6 Interest charge28.845.5 Cost recovery5.011.4 Loss for the period R8.2m before interest to New Clicks Budgeting an operating profit for the full year Cash generating towards end of the financial year

22. PM&A R’mFeb 2003 Shareholder deficit at Aug 200278.3 Post year-end adjustments14.6 Adjusted deficit92.9 Loss for period8.2 Interest28.8 Goodwill10.9 Shareholder deficit at Feb 2003140.8

23. Tax rate

24. Balance sheet R’000Feb 2003 incl. UPD Feb 2003 excl. UPD Feb 2002 adjusted % change excl. UPD Fixed assets691 885623 412566 23810.1 Inventories1 288 6521 122 1241 054 2886.4 Accounts receivable466 406215 556156 21038.0 Accounts payable1 163 406792 244726 1109.1 Note - The Feb 2002 figures for Australia included above have been adjusted to the current exchange rate to allow comparison

25. Goodwill R’000Balance SheetIncome Statement Link15 683447 UPD97 3221 650 House62 2144 333 Price Attack70 7054 089 Total245 92410 519 Forex revaluation adjustment R 25 030 k UPD goodwill acquired R 98 972 k

26. Asset turn

27. Loans to third parties R’mFeb 2003Aug 2002 PM&A283.1276.6 Share trust61.354.8 Intercare professionals2.90.4 Franchise set-up (Aus) 9.2- Other 1.5- Total358.0331.8

28. Cash flow R’000Feb 2003Feb 2002 Operating activities76 529(25 224) Investing activities(104 667)(132 506) Fixed assets(79 793)(68 207) Cash flow - UPD3 572- Loans(28 446)(64 299) Financing activities(7 186)(8 576) Net decrease(35 324)(166 306) Note - UPD acquisition through share issue

29. Future focus Continue to focus on: –Asset turnover –Cash generation –Improving margins –UPD will lower margin, but has high asset turnover Resulting in improving: –Returns & EVA

30. New Clicks South Africa Errol Gray

31. New Clicks South Africa Revitalisation of Clicks Profitability of PM&A Turnaround of Discom Supply chain & efficiency of stock management Integrated healthcare offering Established Discom African beauty & haircare offering Revitalised Lifestyle category High sales growth, low stock levels Variety of multi-ownership models & formats Today’s Focus Tomorrow’s Vision

32. Clicks - Snapshot Feb 2003Feb 2002 SalesR’0001 522 3931 354 224 Sales growth%12.412.8 Comparable store sales growth%8.66.1 Operating profit before interest & after allocation of net costs of support structures R’000139 294140 131 Number of stores Company owned Franchised 253 14 238 13 Number of full-time permanent employees3 4002 697 Trading aream²138 960132 124 Net increase in trading area for the period%5.24.9 Weighted annual sales per m²R20 45019 133

33. Clicks HIGHLIGHTS Health & Beauty continue to do well Positive impact of new leadership ClubCard loyalty programme generating results Datamining initiatives CHALLENGES Revitalisation of brand & stores Focus on Lifestyle category Lifting staff morale Operational efficiencies Customer service Increase size of ClubCard basket Integration of healthcare

34. Clicks KEY ACTION PLANS Store refurbishment You pay less at Clicks - used with other value propositions Overhaul & repositioning lifestyle Restructure operations & upgrade capability Preparing to integrate healthcare Improving value proposition Stock availability Leveraging ClubCard database Injecting spirit into the team

35. Healthcare HIGHLIGHTS PM&A – more effective & efficient Turnover of UPD maintained UPD allows group to buy at better prices Interface between Clicks, UPD, PM&A & Link clearer & stronger Opportunity made available for pharmacies to buy at Clicks prices Success of Intercare pilot CHALLENGES Further improvement of PM&A performance Integration of pharmacy systems Integration of distribution systems Adding value to franchisees

36. Healthcare KEY ACTION PLANS Integration of IT platform Buying compliance systems Focused implementation team Preparing for legislation Building on turnaround in PM&A

37. Discom - Snapshot Feb 2003Feb 2002 SalesR’000391 732368 063 Sales growth%6.412.1 Comparable store sales growth%9.54.0 Operating profit/(loss) before interest & after allocation of net costs of support structures R’000(2 214)(13 447) Number of stores Company owned Franchised 178 2 193 7 Number of full-time permanent employees1 2321 362 Trading aream²49 33952 800 Net increase/(decrease) in trading area%(6.6)2.3 Weighted annual sales per m²R14 82113 012

38. Discom HIGHLIGHTS Improvement in efficiencies & cutting of costs Turned-on team Success of hair salon pilot CHALLENGES Big steps in repositioning of African beauty brand Need to improve basket size Need to improve sales & margin Sales in Lifestyle category

39. Discom KEY ACTION PLANS Move into malls Additional professional haircare opportunities Focused Lifestyle buyers

40. Music Division - Snapshot Feb 2003Feb 2002 SalesR’000268 041242 278 Sales growth%10.626.6 Comparable store sales growth%8.913.4 Operating profit before interest & after allocation of net costs of support structures R’00018 62515 532 Number of company owned stores137 Number of full-time permanent employees558506 Trading aream²17 18516 310 Net increase in trading area for the period%5.48.6 Weighted annual sales per m²R29 11527 729

41. Music Division HIGHLIGHTS Strong local music industry Increasing market share Supplier partnering CHALLENGES Drive to improve on last year Impact of worldwide music trends KEY ACTION PLANS Strong promotional programme Broaden focus into entertainment

42. The Body Shop - Snapshot Feb 2003Feb 2002 SalesR’00024 90312 056 Sales growth%106.6n/a Operating profit before interest & after allocation of net costs of support structures R’0003 3571 004 Number of company owned stores135 Number of full-time permanent employees6330 Trading aream²802227 Net increase in trading area for the period%253.0n/a

43. The Body Shop HIGHLIGHTS Successful niche market format Introduction of new Colour range CHALLENGES Maturity of brand worldwide KEY ACTION PLANS Continued rollout of stores

44. Shared Services HIGHLIGHTS Stock turn improvements continuing Restructuring categories starting to have impact Financial services restructure on track CHALLENGES Optimisation of supply chain efficiencies in stores Reducing costs and continuing to add value KEY ACTION PLANS Implementation of ERP system Implementation of merchandise planning system

45. New Clicks South Africa Stock Brands Profitability Healthcare Lifestyle African beauty & haircare Today’s Focus Tomorrow’s Vision

46. New Clicks Australia Jeff Sher

47. New Clicks Australia Margin productivity – Priceline Building pharmacy capability New positioning – House Store growth – Price Attack Building franchisor skills Cost efficiency Enhanced distribution – Pharmacy Shared Services – brought to life Increased stakeholder value Today’s Focus Tomorrow’s Vision

48. Priceline - Snapshot Feb 2003Feb 2002 SalesA$’000 R’000 166 018 882 777 150 009 799 050 Sales growth%10.549.3 Comparable store sales growth%4.66.6 Operating profit before interest & after allocation of net costs of support structures A$’000 R’000 6 739 35 840 6 034 32 145 Number of stores Company owned Franchised 132 2 122 - Number of full-time permanent employees811743 Trading aream²62 55658 781 Net increase in trading area for the period%6.49.6 Weighted annual sales per m²A$ R 4 954 26 340 4 764 25 370

49. Priceline HIGHLIGHTS Leadership changes Selected as preferred retailer by multi national supplier Lifestyle category expanded One millionth ClubCard customer Satisfactory results in the face of discounting Continue with organic growth CHALLENGES Weak December sales due to intensity of competition Margin productivity impacted underperformance of Lifestyle category intense competition Inventory management

50. Priceline KEY ACTION PLANS New category team established Inventory management programme established to enhance stock turns Focus on improving high- margin categories Promotional programme for the second 6 months enhanced

51. Priceline Pharmacy HIGHLIGHTS Significant work completed developing the model Amanda Brook – dedicated role in Pharmacy 2 stores now operating Interest in model remains high 2 Priceline stores ready to convert to Pharmacy CHALLENGES High degree of dependency on distributors Regulatory process slows down store opening Cost to build technology & operational infrastructure

52. Priceline Pharmacy KEY ACTION PLANS Developing strategic alliance with wholesalers Establish a complete set of operating procedures Investing in technology Incorporating ClubCard Leveraging data-base 8 stores planned before August year end

53. House HIGHLIGHTS Key leadership changes post founders New positioning established POS system tested to enable category data capture 8 new stores opened CHALLENGES Growth in competitor environment Results against two company stores now closed Build on import programme

54. House KEY ACTION PLANS Roll out new store image & positioning Drive product differentiation Private labels Direct imports Develop franchisee education

55. Price Attack HIGHLIGHTS Appointment of new Brand Leader New promotional programme delivering strong results Service delivery from NCA shared service 100 th store opened CHALLENGES Two company owned stores dragging performance Market convergence at supplier level New competition

56. Price Attack KEY ACTION PLANS Image upgrade of stores Feasibility - New Zealand Strategic alliance – Women's basketball New format of store to be opened

57. Shared Services HIGHLIGHTS Review underway to ensure service delivery culture established Store development model sets trend for income generation New Office development signed - April 2004 occupancy CHALLENGES Expense growth difficult to contain OD resources stretched Further develop franchisor mentality KEY ACTION PLANS Installation of new ERP system Efficiency review Education

58. New Clicks Australia Deliver performance Pharmacy capability Efficiency Enhancing value Organic growth Pharmacy - franchise Today’s Focus Tomorrow’s Vision

59. Conclusion Trevor Honneysett

60. Review of New Clicks Strategy Healthcare Growth Value Results Efficiency Opportunity Today’s Focus Tomorrow’s Vision

61. Questions ?