DAVID JONES LIMITED

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DAVID JONES LIMITED

• Elizabeth Market Street
• Refurbishment Presentation
• 8 May 2000

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Overview

• Refurbishment of the Elizabeth and Market Street
  stores
• Store refurbishment - 95 million
• Infrastructure development - 75 million
• 5,000sqm more retail space
• 45-month works program
• Begins February 2001
• Major structural work will be completed before
  Christmas 2001
• subject to approvals

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Refurbishment - Key Elements

• World-class contemporary retailing environment
• Revitalisation of heritage features including
  historic elements of restaurant facilities on
  Level 7
• Opening of retail space to natural light and
  street and Hyde Park views
• Rationalisation of administration facilities
• Efficiencies to back of house operations

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Infrastructure - Key Elements

• Replacement and relocation of escalators and
  other mechanical services on the majority of
  retail floors
• Fire and life safety standards maintenance
• General fittings update
• External facade maintenance

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Business Case

• Final piece in CBD store refurbishment program
• Fits within existing store refurbishment schedule
• After tax cash flow from the stores will be
  sufficient to provide positive NPV over 15 years
  at current hurdle rates
• Failure to invest in flagship stores involves
  downside risk to shareholders

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Driving Sales Growth

• 17 extra selling space (plus refurb of existing
  areas) will lead to 9 additional sales in real
  terms
• Inner City population growth (Pyrmont, Ultimo,
  CBD and South Sydney)
• Tourist growth
• CBD working population increase

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Impact on Business

• Selling space will increase from 2003 onwards
• disruption impact spread over five financial
  years
• maximum reduction of 7 of selling space in F2002
• net increase of 17 means that we will be space
  positive and sales positive from F2003 onwards
• Depreciation Policy will reflect expected useful
  life

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Timings

• DA Submission to Council 8 May 2000
• Commence works Feb 2001
• Complete major structural works end-2001
• Complete works program October 2004

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Conclusion

• Focus on core retailing business
• Ongoing storewide refurbishment program
• Meets internal investment criteria
• Well positioned to move into next phase of
  corporate development

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