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

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

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

Multibrand Strategy Lifestyle BeautyHealth Consolidated Retail Pharmacy Specialist Wholesale

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

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

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

New Clicks Holdings Limited New Clicks South Africa Clicks / Discom 100% now JV in future 445 stores (267 Clicks 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 customers

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

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

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

Financial Results Peter Green

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

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

Operating profit R’000Feb 2003Feb 2002% Clicks (0.6) Discom(2 214)(13 447)n/a Music Division Body Shop Link Investment Trust987(1 812)n/a Intercare(362)(759)n/a Priceline House (4.4) Price Attack UPD Total group

Clicks turnover growth R’000Feb 2003Feb 2002% Lifestyle Health & Beauty

Segmental contribution – Operating profit

Group operating margin

Interest Feb 2003 R’000 Feb 2002 R’000 % Change Interest received (excluding loan to PM&A) Interest paid Net interest paid Increase due to: Increase in rates Funding for PM&A Funding for acquisition of Price Attack

PM&A R’mFeb 2003Aug 2002 Loan to PM&A Interest charge Cost recovery 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

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

Tax rate

Balance sheet R’000Feb 2003 incl. UPD Feb 2003 excl. UPD Feb 2002 adjusted % change excl. UPD Fixed assets Inventories Accounts receivable Accounts payable Note - The Feb 2002 figures for Australia included above have been adjusted to the current exchange rate to allow comparison

Goodwill R’000Balance SheetIncome Statement Link UPD House Price Attack Total Forex revaluation adjustment R k UPD goodwill acquired R k

Asset turn

Loans to third parties R’mFeb 2003Aug 2002 PM&A Share trust Intercare professionals Franchise set-up (Aus) 9.2- Other 1.5- Total

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

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

New Clicks South Africa Errol Gray

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

Clicks - Snapshot Feb 2003Feb 2002 SalesR’ Sales growth% Comparable store sales growth% Operating profit before interest & after allocation of net costs of support structures R’ Number of stores Company owned Franchised Number of full-time permanent employees Trading aream² Net increase in trading area for the period% Weighted annual sales per m²R

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

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

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

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

Discom - Snapshot Feb 2003Feb 2002 SalesR’ Sales growth% Comparable store sales growth% 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 Number of full-time permanent employees Trading aream² Net increase/(decrease) in trading area%(6.6)2.3 Weighted annual sales per m²R

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

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

Music Division - Snapshot Feb 2003Feb 2002 SalesR’ Sales growth% Comparable store sales growth% Operating profit before interest & after allocation of net costs of support structures R’ Number of company owned stores137 Number of full-time permanent employees Trading aream² Net increase in trading area for the period% Weighted annual sales per m²R

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

The Body Shop - Snapshot Feb 2003Feb 2002 SalesR’ Sales growth%106.6n/a Operating profit before interest & after allocation of net costs of support structures R’ Number of company owned stores135 Number of full-time permanent employees6330 Trading aream² Net increase in trading area for the period%253.0n/a

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

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

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

New Clicks Australia Jeff Sher

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

Priceline - Snapshot Feb 2003Feb 2002 SalesA$’000 R’ Sales growth% Comparable store sales growth% Operating profit before interest & after allocation of net costs of support structures A$’000 R’ Number of stores Company owned Franchised Number of full-time permanent employees Trading aream² Net increase in trading area for the period% Weighted annual sales per m²A$ R

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

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

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

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

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

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

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

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

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

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

Conclusion Trevor Honneysett

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

Questions ?