August 2003

1

• August 2003

2
Agenda

• Review of Final Results
• Review of Merchandise and Inventory
• Review of Retail Operations
• Franchise
• Review of Debtor Book
• Other Developments
• Outlook

3
Review of Final Results
4
Review of Final Results
Income statement
2003 52 wks
2002 53 wks
change
2306 1165 551 392 85.7 81.6 50.5 759 406 23.9 2.5
Sale of merchandise (Rms) Gross profit
(Rms) Operating profit (Rms) Headline earnings
(Rms) HEPS (cents) HEPS (cents) Gross margin
() Expenses (Rms) Trading profit
(Rms) Operating margin () Dividend cover (times)
1984 1035 453 290 63.5 63.5 52.2 672 363 22.8 2.9
16 22 35 35 29 13 12

• (excluding transfer pricing taxation benefit)

5
Review of Final Results

• Sales (excluding the effect of the 53rd week in
  prior period), increased by 18.7
• Sales (second half) increased 14.1 and 23.4
  (first half)
• Sales growth second half of prior year was 24.4
• Gross margins diluted by higher contribution to
  sales of lower margin Identity, Elements,
  Franchise and Cellular and the effect of higher
  markdowns
• Operating margins boosted by higher interest
  received and improved productivity in terms of
  sales per m2 and per full time employee
• Operating profit (excluding the effect of 53rd
  week in prior period), increased by 30.0
• Effective tax rate improvement due to transfer
  pricing taxation benefit

6
Review of Final Results
Expenses as a of sale of merchandise
Category
Total
All expense categories reflecting an improvement
as a of sales
7
Review of Final Results
Comparison of margins

Operating Margin
EBITDA to Sales
Basket Operating Margin
Margins continue to improve and remain well above
competitors
8
Review of Final Results
Cash flow
(Rm's)
2003
2002
Cash EBITDA Working capital movements Cash
generated from operations Net interest
received Taxation paid Cash inflow from
operations Dividends paid Net cash retained Cash
outflow from investing activities Cash
inflow/(outflow) from financing activities Net
increase/(decrease) in cash cash equivalents
481 (53) 428 142 (123) 447 (119) 328 (28) 15 315
434 (179) 255 84 (192) 147 (76) 71 (211) (47) (187
)

9
Review of Final Results
Cash flow
2003
2002
Depreciation (Rms) Capital expenditure
(Rms) Cash flow per share (cents) Cash
realisation rate ()
58 208 32.2 42.7
67 63 97.7 100.5

10
Review of Final Results
Cash flow vs earnings per share
cents
Acquisition of SRG House and payment of transfer
pricing taxation
Write off of Sportsgirl investment
High quality of earnings reflected by high cash
flow per share
11
Review of Final Results
Balance sheet
change
(Rm's)
2003
2002
Non current assets Cash and cash
equivalents Trade and other receivable Inventories
Total assets Total shareholders
equity Non-current liabilities Current
liabilities Total equity and liabilities
410 445 817 169 1841 1336 121 384 1841
459 130 676 155 1420 1058 136 226 1420
21 9
12
Review of Final Results
Balance sheet
change
2003
2002
Total liabilities to shareholders' equity () Net
cash to shareholders equity () NAV per share
(cents) ROE () ROC ()
37.8 33.3 290.0 32.7 46.0
34.3 12.3 233.0 30.3 46.6
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13
Review of Final Results
ROIC vs WACC

5.2
7.3
1.2
-2.1
-0.9
-2.3
Continue to achieve returns in excess of WACC
14
Review of Merchandise Inventory
15
Review of Merchandise Inventory

• Inventories increase 9 to R169 million
• Inventory turn improvement to 6.7 times
• Level of markdowns higher than last year as a
  of sales, but still within acceptable norms
• Product inflation decreasing frommid-teens in
  first half of the periodto a single digit in
  June 2003
• Average product inflation for the period was 13
• LFL sales growth 14.5

16
Review of Retail Operations
17
Review of Retail Operations

• Two new Truworths stores opened
• Two new Truworths man stores opened
• One new Daniel Hechter store opened
• One LTD and one Inwear store closed
• Ten new Identity stores opened and one Identity
  store closed
• Twenty three stores enlarged and renovated
• Four stores reduced in size
• Total trading area increased byapprox. 5902m2
  (4.9)

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Review of Retail Operations

• Operational efficiency improvement
• Store expenses up 7.9
• Sales per m2 improved 10.3 to R18 120
• Sales per FTE up 14.2 to R644 000
• High standards of loss control resulted in
  reduced stock losses, fewer cash losses and
  burglaries and less goods lost in transit

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Review of Retail Operations
Stand alone stores
2003 Actual
2002 Actual
2004 Plan
Truworths Truworths Man Daniel Hechter Inwear LTD
Identity TOTAL Total trading area (000m2)
209 14 5 3 2 36 269 127
207 12 4 4 3 27 257 121
211 15 5 3 2 50 286 133
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Review of Retail Operations

• Major developments for 2004 include
• Two new Truworths stores Midlands Mall,
  Pietermaritzburg and Mitchells Plain, Western
  Cape
• One new Truworths Man store Empangeni, Kwazulu
  Natal
• Fourteen Identity stores
• Three relocations
• Fourteen renovations
• Capital expenditure of R49 million(2003 R40
  million)

21
Review of Retail Operations
Sales densities comparison
R
10.3
14.6
9.5
9.3
4.1
6.4
4.3
Sales densities reflect an upward trend
22
Review of Retail Operations
Sales per FTE
R000
14.2
19.7
10.0
19.2
4.1
9.5
10.5
Productivity of staff reflects a year on year
increase
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Franchise
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Franchise

• Franchise sales up 26 to R22 million
• Currently nineteen franchise stores in Africaand
  Middle East
• New expansion in 2003
• Truworths in Gaberone andMozambique
• Identity in Gaberone
• Identity in Qatar
• Daniel Hechter and Inwearin Gaberone

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Franchise

• Plans for 2004
• Identity store in Dubai
• Relocation of Truworths store in Dubai
• Saudi Arabia
• Tanzania
• Ghana
• Angola

negotiations in progress
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Review of Debtors Book
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Review of Debtors Book
2003
2002
Key debtor statistics

• Number of active accounts (000)
• Credit sales as a of total sales
• Qualifying payment
• Collections achieved vs those due ()
• Debtors book per Vision (Rms)
• of book that can purchase (at month end)
• Net bad debt write-off to credit sales ()
• Net bad debt as a of debtors book ()
• Doubtful debt provision as of debtors
• Applications granted credit

780 72 90 93 810 86 2.5 5.1 5.9 50
737 72 90 95 660 87 2.2 5.4 5.6 48
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Review of Debtors Book
2003
2002
Cost of Credit (Rms)

• Interest from customers
• Financial services
• Collection costs
• Net bad debt and change in bad debt provision
• Cost of credit

106.1 6.5 112.6 (63.0) (52.2) (115.2) 2.6
68.3 5.3 73.6 (54.1) (37.6) (91.7) 18.1
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Other Developments
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Other Developments

• Transfer pricing payment
• Objection to revised assessments from SARS for
  years 1996 to 1999 have been allowed in full
• Refund received of R18.7 million (including
  interest and STC)
• Share Repurchase
• 2,2 million shares repurchased by a group
  subsidiary held as treasury stock
• Total repurchase comprises 15.8 million shares,
  representing 3,3 of total issued share capital,
  at a cost of R80 million
• Minimal impact on results for the current year
• Value of investment in Zimbabwe impaired

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Outlook
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Outlook

• The group is well positioned to take advantage of
  stronger economic growth and further interest
  rate cuts
• First half of the 2004 financial period a
  challenging base - sales increased 23.4 in the
  first half of 2003
• Sales growth for the first seven weeks of the
  2004 financial period was 14.4
• Focus on delivering superior merchandise,
  refurbishing existing stores and introducing new
  generation stores
• Strong balance sheet positions the group to take
  advantage of any attractive acquisition
  opportunities.

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Thank you.