1. 1 Interim Results 2004

2. 2 Outline of presentation Introduction Financial results Group operations Ongoing consistent improvement

3. 3 In our 2003 Annual Report We said our business strategy was to: Strengthen & rejuvenate retail brands Introduce pharmacy into Clicks Drive efficiency & productivity – shared services Focus on improving stock turns Boost profitability – improved turnover & margin Create further value for shareholders Progress in most areas but still work to be done

4. 4 In our 2003 Annual Report We also said we would: Shift focus from strategy to delivery Aim for ROE target of 4% to 5% above cost of capital in medium-term Address the composition of the board & increase the number of independent non-executives Adopt a board charter Establish a nominations committee

5. 5 Review of the period Disposal of Australian operations Turnaround in lifestyle category Value proposition of Clicks paying off Improved performance from Discom Continued benefits of UPD acquisition Turnover growth ahead of expense increase Continued focus on stock turn improvements Challenging pharmacy environment Transfer of pharmacy licences albeit delayed Single exit pricing legislation proposed

6. 6 Financial Results André Vermeulen Ongoing consistent improvement

7. 7 Performance (continuing operations) Feb 2004 Feb 2003% change Turnover (R’m) 3 523 2 54638.4 Turnover excl. UPD (R’m) 2 468 2 21711.3 Headline earnings (R’m) 138 10136.0 Headline EPS (cents) 38.8 31.523.2 Diluted headline EPS (cents) 38.2 30.326.1 Gross profit margin (%) 21.1 24.1(12.4) GP margin excl. UPD (%) 26.5 26.30.8 Operating profit margin (%) 6.5 6.7(0.03) ROE (%)19.021.0(9.5)

8. 8 Headline earnings per share (continuing operations) Undiluted Diluted For six months to 28 February 200331.5 30.3 Increased by: Net decrease in PM&A interest provision1.2 1.7 Net impact of acquisition of UPD1.5 1.2 Organic growth4.6 4.4 Impact of share options- 0.6 For six months to 29 February 200438.8 38.2

9. 9 Turnover R’mFeb 2004Feb 2003% change Clicks1 6931 52211.2 Discom45239215.4 Music Division2842686.1 The Body Shop292514.2 Link – own brand10 4.7 Total SA excl. UPD2 4682 21711.3 UPD1 055329* Total SA3 5232 54638.4 Australia655891** Total group4 1783 43721.6 * UPD included for 2 months in 2003 (comparatively up by 3.3%) ** Australia turnover impacted negatively by strong Rand, but only included for 4 months in 2004

10. 10 Retail turnover by brand (South Africa)

11. 11 Gross profit margin Feb 2004 R’m Feb 2004 % Feb 2003 R’m Feb 2003 % SA – Retail65526.558426.3 SA – UPD908.6309.2 Total SA74521.161424.1 Australia21032.030934.7 Total Group95522.992226.8 Impact on gross margin from: Turnaround in Lifestyle category Competitive pricing Musica margin mix Rand strength – particularly UPD

12. 12 Expenditure – after cost allocation R’000 Feb 2004 Feb 2003% change Clicks 374 141 350 5266.7 Discom 126 896 113 26812.0 Music Division 87 534 80 6768.5 The Body Shop 11 348 8 13839.4 Link Investment Trust 6 815 9 623(29.2) Intercare 6 984 3 077127.0 Total SA excl. UPD 613 718 565 3088.6 UPD 88 836 26 977* Total SA 702 554 592 28518.6 Australia 239 413 325 420** Total group 941 967 917 7052.6 * UPD included for 2 months in 2003 (comparatively up by 5.1%) ** Australian expenses impacted positively by strong Rand and only included for 4 months in 2004

13. 13 Operating profit R’000Feb 2004Feb 2003% change Clicks177 521138 32728.3 Discom2 693(4 820) Music Division10 92919 999(45.4) The Body Shop7 2825 55631.1 Link Investment Trust852987(13.7) Intercare(327)(362)9.7 Total SA Retail198 950159 68724.6 UPD28 55710 095 * Total SA227 507169 78234.0 Australia41 60644 778 ** Total group269 113214 56025.4 * UPD included for 2 months in 2003 (comparatively up 11.5%) ** Australia profit benefited by strong Rand, but only included for 4 months in 2004

14. 14 Interest Feb 2004Feb 2003 Net interest bearing debt to shareholders’ funds at period end 22.5% 24.1% Net int. bearing debt (net of cash) to shareholders’ funds at period end 3.9%24.1% R’000 % change Interest paid (40 737) (45 121)9.7 Interest from PM&A 24 986 28 835(13.4) Interest impairment (24 986) (28 835)(13.4) Other interest received 4 442 2 36787.7 Net interest paid (36 295) (42 754)15.1 Decrease in rates (Ave prime H1 2004: 12.3%, H1 2003: 16.9%) Increase in inventory Proceeds received from sale of Australia in February 2004

15. 15 Taxation (group) Feb 2004Aug 2003Feb 2003 Effective tax rate 29.9% 28.1%28.0% Impacted by: Unwinding of preference share structure in Australia Prior year – deferred taxation of R5m STC increased as no further scrip dividends

16. 16 PM&A - performance R’mFeb 2004Aug 2003Feb 2003 Turnover Stores rebranded Hyperpharm132 327238 534136 717 Other stores328 384714 454323 511 Operating (loss)/profit Stores rebranded Hyperpharm(1 146)5 7792 280 Other stores(9 672)(5 956)(10 396) Loan to PM&A334.0295.3283.1 Interest charge25.059.328.8 Provision against interest(25.0)(59.3)(28.8)

17. 17 PM&A – shareholders’ deficit (including interest expense) R’m Shareholder deficit at Aug 2003(176.1) Post year-end adjustments(3.2) Adjusted deficit(179.3) Pre-acquisition losses – Leon Katz(14.9) Loss for the period(10.8) Interest(25.6) Goodwill(12.2) Shareholder deficit at Feb 2004(242.8)

18. 18 PM&A - take-on balance sheet at 1 March 2004 R’m Goodwill173 978 Property & equipment29 926 Investments753 Inventories131 811 Accounts receivable36 367 Other assets12 714 Total assets385 549 Shareholders’ deficit(242 844) Loan from New Clicks496 293 Accounts payable104 145 Other liabilities27 955 Total equity & liabilities385 549 Notes: Subject to the finalisation of fair value adjustments, most of which are likely to be in respect of trademarks Loan includes interest expense & is pre impairments

19. 19 PM&A – goodwill on acquisition Calculation: PM&A goodwill + Shareholders’ deficit - Loan impairment +/ - Fair value adjustments = Goodwill on acquisition

20. 20 Balance sheet R’000 Feb 2004 Aug 2003 excl. Aus Feb 2003 excl. Aus % change Feb to Feb Property & equipment636 269613 570568 49211.9 Inventories1 187 8931 124 5281 014 89817.0 Accounts receivable414 207363 643390 7966.0 Accounts payable1 041 8031 141 858824 58326.3

21. 21 Inventory Feb 2004Feb 2003% change Inventory turn (times) SA Retail4.75.1 UPD11.110.4 Inventory (R’m) Held at the DCs211 316173 60321.7 Held at stores805 472674 76719.4 UPD171 105166 5282.7 Total SA inventory1 187 8931 014 89817.0

22. 22 Clicks & Discom - aggressive & successful promotions - better on-shelf position - more regular import programme Body Shop growth - new stores - improved stock turns Inventory levels

23. 23 Loans to third parties R’m Feb 2004 Feb 2003 PM&A 334.0 283.1 Share trust 70.0 61.3 Franchise set-up (Aus) - 9.2 Intercare professionals 24.4 2.9 Other 0.6 1.5 Total 429.0 358.0

24. 24 Cash flow (group) R’000 Feb 2004 Feb 2003 Operating activities (18 934) 76 529 Investing activities 180 858 (104 667) Property & equipment (90 095) (79 793) Acquisition of subsidiary (203) 3 572 Disposal of subsidiaries 328 353 - Loans (57 197) (28 446) Financing activities 5 002 (7 186) Net increase/(decrease) 166 926 (35 324) Note: UPD acquisition through share issue

25. 25 Capital expenditure Capital expenditure during the period:R’m Store refurbishments35 008 New stores7 148 Pharmacy conversions1 621 IT39 202 Other8 130 Total91 109 Forecast for the balance of the year to August 2004: Store refurbishments10 922 New stores15 397 Pharmacy conversions29 900 IT41 758 Other1 344 Forecast total expenditure190 430

26. 26 Sale of Australian operations The key reason for selling Australia was to concentrate on the opportunity in SA Multiple on sale14.2 Profit on saleR4.5m Effective date27 Dec 2003 Cash repatriatedAus $87.3m Cash repatriation date17 February 2004 Effective exchange rate Aus $4.98 to R1

27. 27 Group Operations Trevor Honneysett Ongoing consistent improvement

28. 28 Clicks - snapshot Feb 2004Feb 2003 SalesR’0001 693 2531 522 393 Sales growth%11.212.4 Comparable store sales growth%7.98.6 Operating profit before interest & after allocation of net costs of support structures R’000177 521138 327 Number of stores Company owned Franchised 264 14 253 14 Number of full-time permanent employees3 724*3 400 Weighted trading aream²144 258138 960 Net increase in trading area for the period%3.85.2 Weighted annual sales per m²R21 91020 450 * During the period, a number of part-time employees became full-time employees, in terms of the new Labour Relations Act

29. 29 Clicks - turnover growth R’mFeb 2004Feb 2003% change Lifestyle70962713.1 Health & Beauty9848959.9 1 6931 52211.2

30. 30 Clicks Internal selling price inflation3% - 4% Local purchase price inflation3% - 4% Active ClubCard holders 2.1 m Gold card holders 720 k

31. 31 Clicks We said during 2004 we would: Improve the in-stock position ✔ but stock up Continued focus – “Expect to pay less” ✔ Focus on uplifting in-store experience ✔ more to come Enhance performance of top 50 stores ✔ Introduce a new core homeware range ✔ Aggressive promotional strategy ✔ Reduce operating costs ✔

32. 32 Clicks Pharmacy / PM&A We said during 2004 we would: Open first 5 Clicks Pharmacies in 2003, subject to licences Convert most PM&A stores to Clicks during 2004 Introduce pharmacies into many refurbished stores Introduce other disease management programmes Develop relationships with medical funders What happened: Licences delayed – opened March 2004 Now scheduled 2004 & 2005 due to licence delays Awaiting licences On track - next initiative May – 3 others planned for 2004/5 Took time – all but one of the major schemes

33. 33 Clicks performance “Expect to pay less” Inroads into visual merchandising Expense control Heavy promotional drive Datamining initiatives Improved lifestyle mix Stock turn Better in- stock position Turnaround started Store refurbishment on track FMCG continues to perform

34. 34 Clicks - comparative pricing ClicksCompetitor A Competitor B Competitor C GautengR2 711.71R2 732.14R2 721.89R2 786.75 KZNR2 779.94R2 769.74R2 760.87R2 790.32 E CapeR2 709.77R2 755.16R2 727.69R2 781.78 W CapeR2 726.18R2 743.16R2 737.34R2 804.58 Industry survey conducted by an independent research house - basket of 132 items Clicks cheapest in 3 out of 4 provinces before ClubCard benefits

35. 35 Clicks - key action plans Further enhance homeware experience Value proposition maintained Continued focus on top 50 stores Store presentation – 77 of 270 stores in 2004 Continued aggressive promotional programme Maintain focus on costs New datamining initiatives in May Developing Clicks/Discovery Health alliance Profitable pharmacy integration

36. 36

37. 37

38. 38

39. 39 Pharmacy performance Delay in licences & Clicks branding Postal medicines Time taken to secure agreements with funders Heavier medical aid discounting Holding onto unsuitable stores for licences Disappointing results Competitive pressure in Gauteng Disease state mgmt on track

40. 40 Pharmacy implementation

41. 41 Pharmacy implementation

42. 42 Pharmacy implementation

43. 43 Pharmacy implementation

44. 44 Pharmacy - key action plans Challenges Delay in licences & Clicks branding Competitive pressure Immediate responses Aggressive promotions for PM&A Internal pricing comparison - top 148 lines: HyperpharmR4 581.01 AN Other CompetitorR4 626.31

45. 45 Pharmacy implementation continued

46. 46 Pharmacy Stores Already converted to Clicks5 Conversion in process: remain in current location5 To be converted in current location13 Second applications to move to Clicks store27 Hyperpharm14 Under review16 Total80 Approximate cost of conversion - pharmacy to Clicks Pharmacy R500 000 Approximate cost of combining - pharmacy into a Clicks store R600 000

47. 47 Pharmacy Environment remains uncertain Single exit pricing legislation Timing of licence approvals: Balance of PM&A stores Applications for all new Clicks stores Second applications for transfers into Clicks stores Success of Hyperpharm Success of Clicks Pharmacy Positive to date, but still early days

48. 48 Pharmacy - key action plans Integration into Clicks – 5 stores done, next 4 by June/July Category management/buying further integrated with Clicks More focused & aggressive promotions Generic substitution going well & expanding PM&A to move closer to branding used in Clicks Pharmacy Hyperpharm introduced – monitored IT platform integration on track – automated centralised pricing by August Sustain relationship with government Introduce Clicks Chronic Direct

49. 49

50. 50 UPD - snapshot Feb 2004Feb 2003 * SalesR’0001 055 409329 393 Operating profit before interest & after allocation of net costs of support structures R’00028 55710 095 Inventory turn11.110.4 Debtors days35.838.7 Number of full-time permanent employees580572 * Two months

51. 51 UPD We said during 2004 we would: Provide group pricing benefits to independent customers to grow turnover Simplify the Multicare offering Develop the Link offering as a premium banner Develop programmes to enhance Link pharmacy loyalty to UPD Progress Ongoing with some success so far Franchise model being reviewed Regional discussions complete National forum scheduled

52. 52 UPD Performance Trading profit up 11.5% Continued growth in turnover from PM&A & independent pharmacies Good cost control – 5.1% increase Continued sound working capital & cost management Key action plans Continued dialogue with government Continued focus on service & value added services Increase volumes – industry rationalisation

53. 53 Discom - snapshot Feb 2004 Feb 2003 SalesR’000 452 164 391 732 Sales growth% 15.4 6.4 Comparable store sales growth% 12.75 9.5 Operating profit/(loss) before interest & after allocation of net costs of support structures R’000 2 693 (4 820) Number of stores Company owned Franchised 178 1 178 2 Number of full-time permanent employees 1 529* 1 232 Weighted trading aream² 49 680 49 339 Net increase in trading area for the period% 0.7 (6.6) Weighted annual sales per m²R 16 990 14 821 * During the period, a number of part-time employees became full-time employees, in terms of the new Labour Relations Act

54. 54 Discom We said during 2004 we would: Return Discom to profitability in 2004 Improve margin - stronger lifestyle & import programme Close 12 stores, open 10 new stores & relocate 3 stores Have strong sales & margin growth for ethnic beauty & hair care products Implement POSware platform & merchandise planning Progress: On track Realising benefits Closed 5, opened 5 & relocated 4 so far Progressing well Still on track for August

55. 55 Discom - performance Strong growth in “dry hair” Some inroads into visual merchandising Expense control Improved lifestyle mix Differentiation from Clicks & market Stock turn Marginal improvement in shrinkage Strong FMCG growth On track – profit for 2004 Trading densities improved Vitamin & health products doing well

56. 56 Discom - key action plans Procure new store locations Entrench dominant position in African beauty & hair care Continued & sustainable improvement in margin Continuing improvement in lifestyle offering Implement POSware platform & merchandise planning Exploit potential of inland consumer markets Continual improvements in store design for new stores Focused promotion activity

57. 57 Music Division - snapshot Feb 2004Feb 2003 SalesR’000284 333268 041 Sales growth%6.110.6 Comparable store sales growth%4.58.9 Operating profit before interest & after allocation of net costs of support structures R’00010 92919 999 Number of stores Company owned139137 Number of full-time permanent employees567558 Weighted trading aream²21 90417 185 Net increase in trading area for the period%27.55.4 Weighted annual sales per m²R24 23129 115

58. 58 Music Division We said during 2004 we would: Reposition from music to broader entertainment products –70 stores by December 2003 –Branded lifestyle accessory range Implement POSware retail store system by March 2004 Major marketing drive for Christmas Open 7 new stores, relocate / revamp 7 stores Progress: On track and being expanded –98 stores converted by Dec 2003 (106 currently) –In stores by December 2003 Done Flat Christmas sales On track: 5 opened, 3 upgraded & 3 closed to date

59. 59 Music Division - performance Musica –Declining trend in CD sales –Gaming, DVD’s & lifestyle products grew from 8.3% to 16.5% of sales CD Wherehouse –Drop in CD sales –Strong growth in DVD sales –DVD biggest category in 2 of 4 CDW stores Expense growth ahead of sales growth We believe we are moving in the correct direction with entertainment

60. 60 Music Division - key action plans Continuing repositioning from music to broader entertainment products Store plans: 4 new stores, 2 stores relocated & 2 revamped Aggressive price promotions Collaboration with NuMetro & Ster Kinekor to dominate DVD market

61. 61 The Body Shop - snapshot Feb 2004Feb 2003 SalesR’00028 43324 903 Sales growth%14.2106.6 Operating profit before interest & after allocation of net costs of support structures R’0007 2825 556 Number of stores Company owned2113 Number of full-time permanent employees8063 Weighted trading aream²1 154802 Net increase in trading area for the period%43.9253.0 Weighted annual sales per m²R45 99257 962

62. 62 The Body Shop We said during 2004 we would: Continue to show growth but at a slower rate Heighten brand awareness through catalogue mailing & promotions Focus on Christmas gifting Introduce new range of sun care & hair care products Open five new stores Introduce four new concept stores in Clicks stores ✔ 3 opened, 2 to open in April ✔

63. 63 The Body Shop Performance Good sales growth Good cost control Increased number of stores nationally to 21 Stock turn improves to 6.25 Key action plans Promotions programme & radio advertising Opening two new stores ClubCard points - earned at Body Shop from May Tight control on costs with further savings

64. 64 Shared Services We said we would: Align shared services infrastructure with the needs of the brands Improve the management of stock in stores Implement a new financial system Improve the speed & quality of information Progress: On track Disappointing progress Phase 1 complete – balance on track On track

65. 65 The next six months Integration of pharmacies Continued focus on lifestyle category Clicks to be the pre-eminent health, home & beauty brand UPD integral to healthcare plans Increase volumes in UPD Increasing profitability in Discom Enhancing entertainment offering in music Focus on stock distribution & management systems Continued focus on expense control Ongoing consistent improvement

66. 66 Questions ? Ongoing consistent improvement

67. 67 Thank You Ongoing consistent improvement