Group Results 2003

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

Financial Results André Vermeulen

Performance % change Turnover (R’m) Turnover growth excluding UPD8.2 Headline earnings (R’m) Headline EPS (cents) Diluted headline EPS (cents) Diluted HEPS increase adjusted for PM&A provision 13.4 Gross profit margin (%) (14.1) Operating profit margin (%) (10.3) ROE (%)

Headline earnings per share Undiluted Diluted At 31 August 2002 previously reported PM&A impairment(18.1) (17.2) Restated 31 August 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

Performance per six months 1 st half nd half 2003 Total Turnover Total Excluding UPD Percentage Headline earnings Total Excluding UPD Percentage

Turnover R’m % change Clicks Discom Music Division Body Shop Link – own brand Total SA excl. UPD UPD Total SA Australia *1.8 Total group * Australia impacted by exchange rate & move to franchise model

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

Turnover - Australia AU$’ % change Turnover Priceline Priceline Pharmacy House Price Attack785- NCA Total House Franchisee turnover Price Attack Franchisee t/o Pharmacy Franchisee t/o NCA Total (incl Franchisees) 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

Gross profit margin - group excl UPD 2002 Gross profit Gross profit margin (%) Reduction in gross margin due to: UPD operates at a lower gross profit margin Impact of lower Lifestyle product contribution

Expenditure R’ % change Clicks Discom (1.2) Music Division Body Shop Link Investment Trust (1.9) Intercare Shared Services – SA Priceline *1.8 House *(23.8) Shared Services – Australia * Priceline Pharmacy Price Attack UPD Total group * Impacted by exchange rate (total benefit of R51 865k) & move to franchise model

Expenditure R’ excl UPD 2002% change Depreciation Occupancy costs Employment costs Other costs (5.3) Total

Operating profit R’ % change Clicks (1.4) Discom(5 571)(20 637) Music Division Body Shop Link Investment Trust(2 712)(2 801) Intercare(962)(1 764) Shared Services unallocated(7 376)2 167 Total SA excl. UPD UPD Total SA Australia * (5.1) Total group * Australian profit in Rand adversely impacted by strong Rand

Operating profit - Australia AU$’ % change Priceline Retail Store sales Priceline Pharmacy(397)- House (1.9) Retail Store sales-600 Price Attack3 518(17) Shared Services(20 158)(14 882)(35.6) NCA Total Retail Store sales Notes: Priceline Pharmacy = Costs for setup, late opening of stores Priceline = 2 Stores converted to Pharmacies

Interest Net interest bearing debt to shareholders’ funds at year end 27.7% 28.0% R’000 % change Interest paid Interest PM&A (net) - -- Other interest received Net interest paid Increase in rates (Average 2003: 13.5%, 2002: 11.0%) Funding for acquisition of Price Attack (R72.2m / A$12.2m) Increase in inventory

PM&A R’m PM&A EBIT 1 st half(8.1)0.2 2 nd half7.9(15.3) Total(0.2)(15.1) Loan to PM&A Interest charge Provision against interest(59.3)(45.5)

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)

Balance sheet R’ incl. UPD 2003 excl. UPD2002 % change excl. UPD Fixed assets Inventories Accounts receivable (5.5) Accounts payable

Inventory Inventory turn (times) Inventory (R’m) % change Held at the DCs Held at stores UPD175- Total SA inventory Australia276314(11.9) Total inventory at year end

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

Loans to third parties R’m PM&A Share trust Franchise set-up (Aus) Intercare professionals Other Total

Cash flow R’ Operating activities Investing activities ( ) ( ) Property & equipment ( ) ( ) Acquisition of subsidiaries (89 723) Investments (7 550) - Loans (54 434) (68 974) Financing activities Net increase/(decrease) (95 652) Note: UPD acquisition through share issue