1. Group Results 2003

2. Outline of presentation Financial ResultsAndré Vermeulen New Clicks AustraliaJeff Sher (video) New Clicks South AfricaTrevor Honneysett ConclusionTrevor Honneysett

3. Financial Results André Vermeulen

4. Performance 2003 2002% change Turnover (R’m) 7 368 5 48834.3 Turnover growth excluding UPD8.2 Headline earnings (R’m) 221 15840.5 Headline EPS (cents) 65.6 52.225.7 Diluted headline EPS (cents) 64.5 49.729.8 Diluted HEPS increase adjusted for PM&A provision 13.4 Gross profit margin (%) 24.3 28.3(14.1) Operating profit margin (%) 5.2 5.8(10.3) ROE (%)16.214.98.7

5. Headline earnings per share Undiluted Diluted At 31 August 2002 previously reported70.3 66.9 PM&A impairment(18.1) (17.2) Restated 31 August 200252.2 49.7 Increased by: Acquisitions16.3 Organic growth5.1 Decreased by: Cost of acquisitions(6.8) (7.3) Impact of exchange rate movement(1.2) Impact of share options 1.9 At 31 August 200365.6 64.5

6. Performance per six months 1 st half 2003 2 nd half 2003 Total Turnover Total3 4373 931 7 368 Excluding UPD Percentage 3 107 52.3 2 829 47.7 5 932 100.0 Headline earnings Total12497 221 Excluding UPD Percentage 114 62.3 69 37.7 183 100.0

7. Turnover R’m20032002% change Clicks2 9972 69311.3 Discom7727217.0 Music Division4824399.8 Body Shop462768.6 Link – own brand201623.1 Total SA excl. UPD4 3173 89610.8 UPD1 431- Total SA5 7483 89647.5 Australia1 6201 592*1.8 Total group7 3685 48834.3 * Australia impacted by exchange rate & move to franchise model

8. Turnover - geographic contribution * Australia impacted by exchange rate & move to franchise model

9. Turnover - Australia AU$’00020032002% change Turnover Priceline310 290283 7889.3 Priceline Pharmacy3 460- House2 0223 048 Price Attack785- NCA Total316 557286 83610.4 House Franchisee turnover89 61568 49630.8 Price Attack Franchisee t/o Pharmacy Franchisee t/o 87 269 5 329 ---- NCA Total (incl Franchisees)498 770355 33240.4 Notes: Priceline Pharmacy Sales = Distribution Fee of product sales to franchisees House Sales = 1 Company Store & Import Sales. Last Year 2 stores operating Price Attack = 2 Company Owned stores for part year

10. Gross profit margin - group 20032003 excl UPD 2002 Gross profit1 7911 6321 555 Gross profit margin (%)24.327.528.3 Reduction in gross margin due to: UPD operates at a lower gross profit margin Impact of lower Lifestyle product contribution

11. Expenditure R’000 2003 2002% change Clicks 514 176 475 8398.1 Discom 175 320 177 406(1.2) Music Division 125 560 111 77612.3 Body Shop 14 372 8 01179.4 Link Investment Trust 23 010 23 452(1.9) Intercare 8 430 2 994181.6 Shared Services – SA 322 137 269 19919.7 Priceline 483 297 474 658*1.8 House 10 383 13 639*(23.8) Shared Services – Australia 107 639 101 587*6.0 1 784 324 1 658 5617.5 Priceline Pharmacy 4 046 - Price Attack 9 001 3 141 UPD 139 769 - Total group 1 937 140 1 661 70216.6 * Impacted by exchange rate (total benefit of R51 865k) & move to franchise model

12. Expenditure R’00020032003 excl UPD 2002% change Depreciation103 726100 77896 4254.5 Occupancy costs398 875392 579358 8659.4 Employment costs869 402817 331756 0068.1 Other costs565 137426 683450 406(5.3) Total1 937 1401 797 3711 661 7028.2

13. Operating profit R’00020032002% change Clicks259 281262 974(1.4) Discom(5 571)(20 637) Music Division25 67521 47019.6 Body Shop10 0175 17693.5 Link Investment Trust(2 712)(2 801) Intercare(962)(1 764) Shared Services unallocated(7 376)2 167 Total SA excl. UPD278 352266 5854.4 UPD54 304- Total SA332 656266 58524.8 Australia49 34751 975 * (5.1) Total group382 003318 56019.9 * Australian profit in Rand adversely impacted by strong Rand

14. Operating profit - Australia AU$’00020032002% change Priceline29 59421 94334.8 Retail24 42421 94311.3 Store sales5 170- Priceline Pharmacy(397)- House2 2572 301(1.9) Retail2 2571 70132.7 Store sales-600 Price Attack3 518(17) Shared Services(20 158)(14 882)(35.6) NCA Total14 8149 36758.2 Retail9 6448 76710.0 Store sales5 170600 Notes: Priceline Pharmacy = Costs for setup, late opening of stores Priceline = 2 Stores converted to Pharmacies

15. Interest 20032002 Net interest bearing debt to shareholders’ funds at year end 27.7% 28.0% R’000 % change Interest paid 88 760 70 68425.6 Interest PM&A (net) - -- Other interest received 4 643 3 46434.0 Net interest paid 84 117 67 22025.1 Increase in rates (Average 2003: 13.5%, 2002: 11.0%) Funding for acquisition of Price Attack (R72.2m / A$12.2m) Increase in inventory

16. PM&A R’m20032002 PM&A EBIT 1 st half(8.1)0.2 2 nd half7.9(15.3) Total(0.2)(15.1) Loan to PM&A295.3276.6 Interest charge59.345.5 Provision against interest(59.3)(45.5)

17. PM&A R’m Shareholder deficit at Aug 2002(78.3) Post year-end adjustments(14.6) Adjusted deficit(92.9) Loss for the period(0.2) Interest(59.3) Goodwill(23.7) Shareholder deficit at Aug 2003(176.1)

18. Balance sheet R’0002003 incl. UPD 2003 excl. UPD2002 % change excl. UPD Fixed assets751 843684 423617 76710.8 Inventories1 401 0611 226 3221 055 13716.2 Accounts receivable417 305185 756196 624(5.5) Accounts payable1 373 743990 976887 54211.7

19. Inventory 20032002 Inventory turn (times)5.45.2 Inventory (R’m) % change Held at the DCs25520325.6 Held at stores69553829.2 UPD175- Total SA inventory1 12574151.7 Australia276314(11.9) Total inventory at year end1 4011 05532.8

20. Inventory turn in SA, incl. UPD5.3 times Inventory turn in SA, excl. UPD4.5 times (2002: 5.2) Inventory turn in Aus 5.9 times (2002: 5.1) Clicks - aggressive & successful promotions Discom - additional promotions during this period Body Shop growth - new stores & cosmetics range DC growth is apportioned to new suppliers Imports up 57% to R217m & landing earlier this year Music - lower sales & decentralised buying controls Inventory levels

21. Loans to third parties R’m 2003 2002 PM&A 295.3 276.6 Share trust 46.2 54.8 Franchise set-up (Aus) 37.3 - Intercare professionals - 0.4 Other 5.2 - Total 384.0 331.8

22. Cash flow R’000 2003 2002 Operating activities 337 209 213 665 Investing activities (258 782) (310 034) Property & equipment (198 595) (151 337) Acquisition of subsidiaries 1 797 (89 723) Investments (7 550) - Loans (54 434) (68 974) Financing activities 180 230 717 Net increase/(decrease) 258 657 (95 652) Note: UPD acquisition through share issue

23. New Clicks Australia Jeff Sher

24. New Clicks Australia – Review Shared service capability now in place Franchise skills developing Successful integration of Price Attack Formulated & started to roll out pharmacy model New management structure – ASF/OMF Restructured to meet future growth Leading the way in haircare, homeware & healthcare

25. New Clicks Australia – The new way 1. Selling of stores: –Non-performers converted to Pharmacy –Franchisees who do not meet compliance standards - managed –Buying & selling now part of the business –Not limited to Priceline 2. Profit centres: –Marketing services –Store development

26. New Clicks Australia – Behind the numbers One-off costs quite significant for pharmacy & completion of Price Attack acquisition Anomalies in the House performance Pharmacy development Reallocation of costs to meet demands of franchise business

27. Priceline - Snapshot 20032002 SalesA$’000 R’000 310 290 1 587 711 283 788 1 574 694 Sales growth% (A$) % (R) 9.3 0.8 13.4 52.8 Comparable stores sales growth% (A$)4.66.4 Operating profit before interest & before allocation of net costs of support structures A$’000 R’000 24 424 124 974 21 943 121 758 Number of stores Company owned133125 Number of full-time permanent employees767732 Weighted trading aream²62 76159 356 Net increase in trading area for the period%5.76.3 Weighted annual sales per m²A$ R 4 930 25 226 4 393 24 376

28. Priceline Pharmacy - Snapshot 2003 Operating loss before interest & before allocation of net costs of support structures A$’000 R’000 (397) (2 029) Number of stores Franchised7 Weighted trading aream²2 999 Franchisee salesA$’m R’000 5 329 27 263 Franchise feesA$’000 R’000 381 1 949

29. Priceline & Priceline Pharmacy HIGHLIGHTS Appointment of Phillip Smith – brand leader Appointment of John Stapleton – merchandise head Restructure to meet demands of Pharmacy operations Repositioned in response to market 1.2m ClubCard members 15 new stores (7 pharmacies) Stock growth well below income growth Achieved good sales growth in tough market

30. Priceline & Priceline Pharmacy KEY ACTION PLANS Interlocking marketing programme underpinned by “You Pay Less” Change to Priceline business model Changes to operational structure to deal with pharmacy Supplier relationships for middle shop product Investment in technology to cope with systems requirements Upgrade in security procedures CHALLENGES EDLP approach & Woolworths aggression Pharmacy positioning Pharmacy supply chain Systems development Shrinkage

31. Priceline Pharmacy – Success factors Conversions: Converting existing Priceline store (Prahran) –Sales growing in excess of 40% –Back & middle shop sales already at 18% - should double Converting existing pharmacy (Bentleigh) –Script sales grown by 20% –Front shop sales up from 10% to 75% New site: Mornington –Turnover A$45k per week from 300m² –Front shop sales 50%

32. House - Snapshot 20032002 Operating profit before interest & before allocation of net costs of support structures A$’000 R’000 2 257 11 548 2 301 12 768 Number of stores Company owned Franchised 1 90 - 82 Franchisee salesA$’m R’m 89.6 459.5 68.5 380.1 Franchisee feesA$ R 3 632 18 584 2 949 16 363

33. House HIGHLIGHTS Brand Repositioning – Inspirational Homewares Appointment of Simon Dryden & a restructured brand team Developed a Local area marketing approach Developed strategic Supplier relationships enhancements to other income to follow Achieved 23% growth in Franchise fees Won National Award for Retail Excellence

34. House KEY ACTION PLANS New marketing programme & Pay-TV alliance Redefine product classification Implementation of new in-store positioning Franchisee compliance Upgraded receivables Development of extranet & enhancement to billing CHALLENGES Growth in competition Sameness of product SARS – impact on import quantity Bad debts

35. Price Attack - Snapshot 2003 Operating profit before interest & before allocation of net costs of support structures A$’000 R’000 3 518 17 999 Number of stores Franchised101 Franchisee salesA$’m R’m 87.3 446.7 Store openings during the year12

36. Price Attack HIGHLIGHTS Successful integration into business Resolved all franchise agreements Appointed Carmelo Francese as the new brand leader Resolved Master Franchisee in Western Australia Adopted a Marketing focus Overcome supplier & franchisee scepticism

37. Price Attack CHALLENGES Complexity of salon vs retail Competition in Victoria Transition from previous culture Private label acceptance KEY ACTION PLANS New store format New customer communication Salon contract Association with women’s basketball Local area marketing Change of IT platform - easier decision making

38. Shared Services HIGHLIGHTS Store development & marketing services shift to nil cost Development of franchise skills JDA first phase completed Developed an Integrated IT pharmacy solution Realigned costs from the centre to brands CHALLENGES Moving from cost centre to profit generation Growth in staff numbers to deal with franchise capability Getting expense allocations right with diversity of business models Office accommodation

39. New Clicks Australia – The year ahead Restructured – governance in place No additional funding required – store sale methodology Priceline positioning Store growth in pharmacy House marketing Price Attack – Victoria solution Systems development – Franchise Enhance capability – reduce costs

40. New Clicks South Africa Trevor Honneysett

41. New Clicks South Africa – Review of the year Deregulation of pharmacy now a reality Lifestyle category in transition … … significant steps taken to address this “You Pay Less at Clicks” is back Benefits of UPD acquisition Improving performance from Discom PM&A performance improving as we move to integration Stock turn improvements not sustained

42. Clicks - Snapshot 20032002 SalesR’0002 997 2262 692 620 Sales growth%11.315.4 Comparable store sales growth%7.1 Operating profit before interest & after allocation of net costs of support structures R’000259 281262 974 Number of stores Company owned Franchised 260 14 248 13 Number of full-time permanent employees* 3 5522 865 Weighted trading aream²140 099133 864 Net increase in trading area for the period%4.75.4 Weighted annual sales per m²R21 39420 115 * During the year, a number of part-time employees became full-time employees, in terms of the new Labour Relations Act

43. Clicks HIGHLIGHTS Pharmacy now a reality PM&A integration started PM&A showing ongoing improvement Brand decision for pharmacy taken – Clicks Focused leadership team Integrated merchandising team FMCG & Beauty continue to do well

44. Clicks turnover growth R’m2003% increase Lifestyle1 2034.0 Health & Beauty1 79418.3 2 99711.3

45. Clicks KEY ACTION PLANS New core homeware range Value proposition Store presentation “Expect to pay less” Basket checks vs competitors Promotions Reduce operating costs Greeters & aisle walkers Focus on top 50 stores Dedicated staff for home & beauty Merchandising solution – clustering & ranging CHALLENGES Reverse decline in homewares Price competitiveness Entire customer experience In-store look & feel In stock position

46. Pharmacy HIGHLIGHTS Multifunctional, implementation team set up Key legislation in place Product & pricing benefits through UPD Better buying discipline Centralised pricing Reduced staff costs Improved shrinkage Professional training Disease management Promotions

47. Pharmacy integration project PROGRESS: Preparation work well underway –Marketing, IT, Operations, OD, Category, Store development, Finance, Legal, Change management Pilot store (Glengariff PM&A) -> Clicks Pharmacy on 3 Nov as a JV Planning to convert 4 other PM&A pharmacies in 2003 First conversion of a newly opened Clicks store to JV Clicks Pharmacy format in 2003 For 2004: –Other PM&A stores to convert –Up to 17 new Clicks stores with Pharmacy –Up to 40 Clicks refurbs with pharmacy

48. Pharmacy KEY ACTION PLANS Integration into Clicks Category management/buying In store promotions Generic substitution Phase-out of LinkMax Focus on ICU stores Integration of IT platform Medical aids Build relationships with doctors Sustain relationship with government CHALLENGES Sales & profit growth Stock turn too slow Integration of pharmacy systems Relationship with funders Relationship with doctors

50. UPD - Snapshot 2003 SalesR’0001 431 304 Operating profit before interest & after allocation of net costs of support structures R’00054 304 Inventory turn10.9 Debtors days30.4 Number of full-time permanent employees576

51. UPD HIGHLIGHTS Acquisition smoothly integrated Growth in turnover from PM&A & independent pharmacies Retained most independent pharmacy customers Clicks pricing on top FMCG lines available to wider customer base Standardised terms on FMCG suppliers Solid profit performance enhanced by sound working capital & cost management

52. UPD CHALLENGES Two franchise models in the group Increase turnover from Link Continue to add value to third party customers KEY ACTION PLANS Simplify Multicare offering Develop Link offering as premium banner Develop programmes to enhance Link pharmacy loyalty to UPD Concentrate on bringing Clicks pricing to wider customer base

53. Discom - Snapshot 2003 2002 SalesR’000 771 441 720 895 Sales growth% 7.0 12.1 Comparable store sales growth% 8.7 Operating loss before interest & after allocation of net costs of support structures R’000 (5 571) (20 637) Number of stores Company owned Franchised 177 1 180 2 Number of full-time permanent employees 1 335 1 298 Weighted trading aream² 49 351 51 821 Net increase in trading area for the period% (4.8) 8.6 Weighted annual sales per m²R 15 632 13 911

54. Discom HIGHLIGHTS Ongoing differentiation from Clicks Three hair salons opened Strong growth in ‘dry hair’ market Introduction of private label Bolstered leadership team Dedicated category leadership

55. Discom KEY ACTION PLANS Improvement in lifestyle – currently being evidenced Entrench dominant position in African beauty & hair care Improve margin through a stronger lifestyle & import programme Procure new store locations Implement POSware platform & merchandise planning CHALLENGES Decline in homewares business Return to profitability

56. Music Division - Snapshot 20032002 SalesR’000482 287439 333 Sales growth%9.824.9 Comparable store sales growth%9.6 Operating profit before interest & after allocation of net costs of support structures R’00025 67521 470 Number of stores Company owned138135 Number of full-time permanent employees545496 Weighted trading aream²17 13416 154 Net increase in trading area for the period%6.110.9 Weighted annual sales per m²R28 14827 197

57. Music Division HIGHLIGHTS Market share growth despite slowdown in national music sales Strong growth in DVD sales Popularity of local artists Major growth opportunity in gaming & DVD

58. Music Division KEY ACTION PLANS Repositioning from music to broader entertainment products –70 stores by December –Branded lifestyle accessory range POSware retail store system implemented by March 2004 Major marketing drive for Christmas Store plans: 7 new stores, 7 stores relocated / revamped CHALLENGES Maturity of CD format Global decline in CD sales Piracy & downloads Shrinkage Eliminating redundant stock

59. The Body Shop - Snapshot 20032002 SalesR’00045 78127 161 Sales growth%68.6- Operating profit before interest & after allocation of net costs of support structures R’00010 0175 176 Number of stores Company owned1811 Number of full-time permanent employees7569 Weighted trading aream²942344 Net increase in trading area for the period%173.8- Weighted annual sales per m²R48 600-

60. The Body Shop HIGHLIGHTS Strong sales growth Increased number of stores nationally to 18 Stock turn improves to 5.8 Piloted first Body Shop in a Clicks store - Tableview

61. The Body Shop CHALLENGES Slower than expected take off of new stores in suburban areas Novelty factor of the brand wearing off KEY ACTION PLANS Catalogue mailings & promotions programme Focus on Christmas gifting - accounts for 25% of sales Opening five new stores Four new concept stores planned in Clicks stores

62. Supply Chain - what have we learned ? Expectations of stock turns 5x, 6x, 7x when Centralised Distribution introduced Not achieving this - questions Centralised Distribution What we have learned : –Previously focused on Supply side of Supply Chain i.e. DC’s –Need to focus on Demand side of supply chain - category, planning, promotions, replenishment & data integrity Shared Services

63. DC efficiency improvements R2.16 2.60%2.93% 1.47%1.23% R2.67 0.45% 57%66% 0.64% 19.53% 6.70%Group expenses vs transfer growth Clicks/Discom cost to transfer Clicks/Discom cost per shipper Group cartage costs Volume centralised DC wastage 2002 2003

64. Supply chain ‘pipe’

65. Supply chain – ‘demand’ side Address physical store layout, merchandise promotion, ranging Implemented merchandise planning from JDA for lifestyle category Benefits already evident

66. New Clicks South Africa – The year ahead Roll-out & bedding down of pharmacies Continued focus on Lifestyle category Implementation of financial systems to improve speed & quality of information Focus on stock distribution & management systems Continued focus on expense control – alignment of size of shared services platform to the business

67. Summary of year ahead SA & Australia managed autonomously Pharmacy proving itself in Australia – expanded opportunity for growth Australia well positioned in a competitive market Pharmacy implementation in SA Emergence of Clicks as a pre-eminent healthcare brand UPD integral to healthcare plans Ongoing turnaround in Discom Continued focus on improvement of stock turns

68. Questions ?

69. Thank You