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