clothing and hometurnover & growth

• Sales growth of 11.6% (2004: 12.0%)• Corporate store comparable growth of 8.3% (2004: 9.0%)• Deflation averaged -1.1% for the year (2004: 6.9% inflation)

12.4%10.2%

9.0% 8.3%6.5%

17.7%

11.6% 12.0% 11.6%

3.0%

R3,259m

R3,834mR4,280m

R4,792mR5,350m

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2001 2002 2003 2004 2005

0

1,000

2,000

3,000

4,000

5,000

Comparable growth Sales growth Turnover (Rm)

clothing and hometurnover & growth

• Product deflation with volume growth

9.6%

4.1%

9.3%

10.4%

13.2%

-2.1%-0.1%-3%

-1%

1%

3%

5%

7%

9%

11%

13%

1H04 2H04 1H05 2H05

Inflation Volumes

rlc market share

• Market share to June 2005

– 12 month moving average • this year 15.6% • last year 16.3% (June 2004)

– 3 month moving average• this year 16.4%• last year 16.2% (June 2004)

clothing

*Prior year figures include an additional trading week for some of the competitors

Value = innovation, quality and price

• Strategic sourcing unit to drive value and differentiation• Technological innovation• Supplier base rationalised• Appropriate imports

implementationclothing and home

Category (deflation)/inflation

1.8%

-0.4%

-4.5%

-7.9%

-1.1%

-10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0%

Womenswear

Menswear

Homeware

Childrenswear

Total

Womenswear• Classic customer• Wardrobe building blocks• Number of styles

• Menswear• Classic garments

• Childrenswear• Open price points down

between -10% to -20%• Toddler• Rationalisation and

sourcing

• Home• Authoritative range

building

implementationclothing and home

Core

Key

Fashion

Focus on the core customer – design-led buying

20%

80%

Availability in core

• 50% of turnover on replenishment• Increase annuity opportunity

sustainable annuity growthclothing and home

Availability in Core

85.9% 87.0%

0%

20%

40%

60%

80%

100%

Current Target