Analyst Presentation August 2002

Shoprite Holdings Limited Financial Results

30 June 2002 Introduction

Whitey Basson Chief Executive Officer Shoprite Holdings Limited Table of Contents • Corporate Management • Financial Highlights • Management & Personnel • Store Expansion & Rationalisation • Market Analysis • Questions MANAGING Corporate DIRECTOR JW BASSON B COMM, CA (SA)

AGE: 56 YRS Management SERV: 31 YRS

DEPUTY MANAGING DIRECTOR C GOOSEN PERSONAL B COMM (HONS) CA (SA) ASSISTANT AGE: 49 YRS P ENGELBRECHT SERV: 19 YRS B COMPT (HONS) CA (SA) AGE : 33 YRS SERV: 5 YRS

STATUTORY FINANCIAL INFORMATION HUMAN NON FOODS LOGISTICS PROPERTIES MARKETING AND LEGAL MANAGEMENT TECHNOLOGY RESOURCES BUYING SERVICES G MENTZ M BOSMAN P TZELLIOS C BURGER P V D MERWE B WEYERS S BRAUDE A VAN ZYL B COMPT (HONS) CA B ACC(HONS) B SC (ENG), MBA BA (HONS), MBA B COMM, MBA B COMM, LLB CA (SA) (SA) AGE : 45 YRS AGE : 31 YRS AGE : 43 YRS AGE : 45 YRS AGE : 40 YRS AGE : 50 YRS AGE : 46 YRS AGE : 54 YRS SERV: 9 YRS SERV: 2 YRS SERV: 11 YRS SERV: 13 YRS SERV: 14 YRS SERV: 25 YRS SERV: 16 YRS SERV: 21 YRS

P SOLMS J MACLENNAN J VAN ZYL D MOLLER M FOURIE A VAN STADEN T WIESE B COMM (HONS) B COMM, CA (SA) B COMM, CA (SA) BA (HONS) MA B COMM (HONS) B COMM, LLD CA(SA) AGE : 42 YRS AGE : 47 YRS AGE : 40 YRS AGE : 43 YRS AGE : 28 YRS AGE : 45 YRS AGE : 39YRS SERV: 11 YRS SERV: 15 YRS SERV: 9 YRS SERV: 14 YRS SERV: 2 YR SERV: 16 YRS SERV: 10 YRS MANAGING DIRECTOR Corporate JW BASSON B COMM, CA (SA)

AGE: 55 YRS Operations SERV: 31 YRS DEPUTY MANAGING DIRECTOR C GOOSEN B COMM (HONS) CA (SA) AGE: 49 YRS SERV: 19 YRS

PORTFOLIOS OPERATIONS SUB-SAHARA FRESH PORTFOLIOS: PROJECT E NEL TECHNICAL OPERATIONS FOODS EAST COAST OF MANAGER AFRICA, INDIA B COMM, S LAUBSCHER G FRITZ B DE KLERK P ENGELBRECHT B COMPT (HONS) CA (SA) B SC (ENG) R HARISUNKER DIP COST ACC CA (SA) AGE : 53 YRS AGE :59 YRS AGE : 42 YRS AGE : 51 YRS AGE : 50 YRS AGE : 33 YRS SERV: 4 YRS SERV: 1.5 YRS SERV: 20 YRS SERV: 16 YRS SERV: 33 YRS SERV: 5 YRS

OK FRANCHISE ZAMBIA FAST FOODS G KRIEL UGANDA SP LATEGAN ZIMBABWE AGE : 49 YRS TANZANIA AGE: 54 YRS SERV: 21 YRS MALAWI SERV: 16 YRS OK MEAT FRESHMARK NAMIBIA MARKETS FURNITURE J V DEVENTER MONEY A KARP P MALAN D DIEMONT MARKETS U-SAVE EGYPT M SC, MBA M COMM, PHD AGE : 43 YRS G HAYES F STEMMET M COPELAND AGE : 33 YRS AGE : 34 YRS AGE : 42 YRS B COMM (HONS) SERV: 13 YRS SERV: 2 YRS SERV: 8 YRS SERV: 12 YRS AGE: 27 YRS AGE: 39 YRS AGE: 35 YRS SERV: 4 YRS SERV: 5 YRS SERV: 11 YRS

P COMBRINK C V D WALT B COMM B SC CA (SA) AGE: 51 YRS AGE: 48 YRS SERV: 20 YRS SERV: 8 YRS MANAGINGMANAGING DIRECTORDIRECTOR Operations: JWJW BASSON BASSON B COMM,B COMM, CA CA(SA)(SA)

AGE:AGE: 56 56YRS YRS Supermarkets SERV:SERV: 31 31YRS YRS PORTFOLIOSPORTFOLIOS COASTALCOASTAL E NELE NEL OPERATIONSOPERATIONS B COMM,B COMM, CA ANDAND BUYING BUYING (SA)CA(SA) B ROGUTB ROGUT AGE:AGE: 53 53YRS YRS SERV:SERV: 4 YRS 4 YRS AGE:AGE: 76 76YRS YRS SERV:SERV: 34 34YRS YRS NATALNATAL CHECKERSCHECKERS INLANDINLAND MOZAMBIQUEMOZAMBIQUE HYPERSHYPERS OPERATIONSOPERATIONS MAURITIUSMAURITIUS MADAGASCARMADAGASCAR G SMOLLENG SMOLLEN K ZWENNISK ZWENNIS INDIAINDIA AGE:AGE: 48 48YRS YRS AGE:AGE: 50 50YRS YRS R HARISUNKERR HARISUNKER AGE:AGE: 50 50YRS YRS SERV:SERV: 18 18YRS YRS SERV:SERV: 18 18YRS YRS SERV:SERV: 33 33YRS YRS

GAUTENGGAUTENG GAUTENGGAUTENG WESTERNWESTERN GAUTENGGAUTENG WESTERNWESTERN FREESTATEFREESTATE EASTERNEASTERN CENTRALCENTRAL GAUTENGGAUTENG NORTHNORTH SUPERSTORESSUPERSTORES CAPECAPE CAPECAPE P VANP VAN V SCHOELERV SCHOELER A GARDENERA GARDENER J BEHRJ BEHR S SCHIFFS SCHIFF H VANH VAN ROOYEN ROOYEN J FOURIEJ FOURIE RENSBURGRENSBURG

AGEAGE : 40 : 40YRS YRS AGEAGE : 40 : 40YRS YRS AGEAGE : 54 : 54YRS YRS AGEAGE : 42 : 42YRS YRS AGEAGE : 61 : 61YRS YRS AGEAGE : 48 : 48YRS YRS AGEAGE : 47 : 47YRS YRS SERV:SERV: 13 13YRS YRS SERV:SERV: 13 13YRS YRS SERVSERV : 26 : 26YRS YRS SERVSERV : 16 : 16YRS YRS SERV:SERV: 25 25YRS YRS SERV:SERV: 29 29YRS YRS SERV:SERV: 18 18YRS YRS

M JOUBERTM JOUBERT M ALBERTSM ALBERTS F STEMMETF STEMMET J DEJ DE SWART SWART S GOUWSS GOUWS D JACOBSD JACOBS W WHUNLUN HUNLUN B ACCB ACC B COMMB COMM B COMPTB COMPT(HONS) (HONS) B COMPTB COMPT(HONS) (HONS) AGE:AGE: 43 43YRS YRS AGE:AGE: 41 41YRS YRS AGE:AGE: 39 39YRS YRS AGE:AGE: 39 39YRS YRS AGE:AGE: 33 33YRS YRS AGE:AGE: 39 39YRS YRS AGE:AGE: 38 38YRS YRS SERV:SERV: 19 19YRS YRS SERV:SERV: 15 15YRS YRS SERV:SERV: 5 YRS 5 YRS SERV:SERV: 10 10YRS YRS SERV:SERV: 4 YRS 4 YRS SERV:SERV: 11 11YRS YRS SERV:SERV: 11 11YRS YRS Financial Results Highlights Presenter:

Carel Goosen

Deputy Managing Director Shoprite Holdings Limited Financial Results Highlights Year Ended June 00 June 01 June 02

Revenue (Rm) 18 430 19 597 22 110 Revenue growth (%) 6,2 6,3 12,8 Operating Profit (Rm) 319 407 522 Operating Profit growth (%) 168,1 27,6 28,4 Operating Margin (%) 1,7 2,1 2,4 Headline EPS 44,6 56,7 70,4* Dividend per share 18,0 20,5 25,5 Dividend Cover 2,5 2,8 2,8 * Diluted Key Points • Turnover – Food inflation up 10% – Grow customer base by 4.6% – Growth / rationalisation –Open 24, close 9 supermarkets –Open 12, close 9 furniture stores –35 supermarkets refurbished – Closure + Refurb = Net trading space reduction of 30 000m2 Key Points (Cont) • Operating profit – Operating margin improved to 2.4% – Stock losses improved further – Effective cost control – Currency profits reduced to R 24 m – Unproductive buildings – R 82 m – Africa • 10 % of Revenue • 20 % of Operating Profit Key Points (Cont) • Exceptional items – Impairment of assets R 39 m – Negative Goodwill R 69 m – Sale of Land & Buildings R 11 m • Investment income – Cash flush – R 736 m – Share buy back – R 453 m – Stock holding opportunity = R 500 m Key Points (Cont)

• Taxation – Current tax rate 13,5% – Tax loss of R 600 m Information Technology Actual ‘01 Actual ’02 Budget ’03 R 108 m R 64 m R 177 m

Past Year Coming Year • E-Procurement • Mainframe replacement • Scanning – 150 to 235 • E-Business Platform • SAP • Branch Systems • Wholesale • Business Intelligence • Mainframe requirement • Customer focus analysis • Supply Chain • Transport Layer • Vendor Managed Inventory Financial Statistics - 22 Years

Comp 1980 Growth 2002

Revenue (Rm) 12 40,7% 22 110 Operating Profit (Rm) 0,9 33,5% 522 Share Statistics Since Listing Comp 1986 Growth 2002

Revenue (Rm) 126 38,1% 22 110 Operating Profit (Rm) 3,9 35,8% 522 NAV/share (cents) 3,4 31,9% 287 Headline EPS (cents) 0,6 34,7% 70,4 Dividend per share (cents) 0 35,7% 25,5 Market Capitalisation (Rm) 226 19,6% 3 935 P/E Ratio comparison P/E Ratio USA: 2001 2002 Wal-Mart 36,6 31,5 Kroger 20,2 12,5 Europe: Tesco 22,9 18,4 Sainsbury 21,4 16,4 Casino 28,8 20,5 South Africa: Pick & Pay 17,2 16,2 Woolworths 13,8 13,1 Shoprite Holdings 9,9 10,5 Management & Human Resources Presenter:

Callie Burger

Human Resources Director Shoprite Holdings Limited MANAGING Corporate DIRECTOR JW BASSON B COMM, CA (SA)

AGE: 56 YRS Management SERV: 31 YRS

DEPUTY MANAGING DIRECTOR C GOOSEN PERSONAL B COMM (HONS) CA (SA) ASSISTANT AGE: 49 YRS P ENGELBRECHT SERV: 19 YRS B COMPT (HONS) CA (SA) AGE : 33 YRS SERV: 5 YRS

AGE: 55 YRS Operations SERV: 31 YRS DEPUTY MANAGING DIRECTOR C GOOSEN B COMM (HONS) CA (SA) AGE: 49 YRS SERV: 19 YRS

P COMBRINK C V D WALT B COMM B SC CA (SA) AGE: 51 YRS AGE: 48 YRS SERV: 20 YRS SERV: 8 YRS Employment Statistics 45.8 ‘000 45.3 45.5 44.7 44.6

29.4 29.1 28.7 29.1 26.6 23.5

16.0

1997 1998 1999 2000 2001 2002 FTE Permanent Employees

• Process 2,316,000 pay slips per annum for 12 countries on African continent • 651 with post-matric qualifications •Average years of service 12 years Sales per R1 Cost of Employment

R 13.00 OK Bazaars takeover

R 12.00

R 11.00

R 10.00 ' 02 ' 99 ' 00 ' 01 ' 96 ' 97 ' 98 ' 93 ' 94 ' 95 More than pre-OK takeover Sales per FTE 45 OK Bazaars takeover 40

15 '98 '99 '00 '01 '02 '93 '94 '95 '96 '97 Surpassed R 41 000 Sales per FTE v Inflation

R(000) SALES / FTE 41,3

INFLATION SALES/ FTE TREND 36,5 33,5 31,6 27,8 26,6 33,0 30,5 23,9 28,6 21,6 27,2 25,8 19,0 24,2 22,2 20,7 19,0

1994 1995 1996 1997 1998 1999 2000 2001 2002 Highlights • Productivity improved more than 13% (Sales per FTE) • Sales per cost of employment back to pre- OK takeover • 2 Year Wage agreement in RSA (8% and 7%)- Negotiating wages in 6 different countries

• Never had a wage strike in Shoprite Highlights (cont) • First retailer and second company in RSA to implement SAP NQF training and development modules. (Assist in recovering training levy back and developing of skills base)

• Group received official accreditation as a Training Provider from Wholesale and Retail Sector Education and Training Authority (Only Food retailer that has received accreditation) Highlights (cont) • Successfully launched Retail Learnerships in Western Cape and Gauteng

• 2 State of the art training centers for bakeries, deli’s, meat and fresh produce

• 44,065 employees attended training workshops and programs

• 193 Training Courses and programs Highlights (cont) • 184 Trainee Retail Managers qualified from Management Training Program. (Currently 311 in training, more than 72% from previous disadvantaged groups) • TOPP program produced a further 3 more qualified accountants • Single biggest contributor towards Skills Development Fund for the Wholesale and Retail Sector • R14 million • Skills rebate - Shoprite fully complied to all requirements and received for 2001 = 100% of refundable amount. Store Rationalisation Presenter: Philip van der Merwe Managing Director Shoprite Checkers Properties Limited Size of the Operation - Group June 01 June 02 Supermarkets – RSA 339 346 – Non RSA 38 46 – Total 377 392 Furniture 155 158 Hungry Lion 41 48 No of own Outlets 573 598 Franchise 422 383 Total no of Outlets 995 981 No of Non RSA Countries 9 11 Trading Area of Supermarkets

OK Take-over Shoprite, Checkers & Hyper

Checkers Take-over m2

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 No. Stores 72 238 235 231 234 243 241 402 393 378 377 392 Shoprite Checkers Properties

• Manages 150 properties • Market value of portfolio approximately R2.8 billion • Owns 55 properties • Market value of own portfolio approximately R950 million Marketing

Presenter: Brian Weyers Marketing Director Shoprite Holdings Limited Market Share Majors

Total Store – Total South Africa only 30.1% 29.0% 29.5%

27.6% 27.6% June 2001 June 2002

Apr '02 May '02 Jun '02 Store Variances Total Market June 2001/2002 • New stores: 332 (Sales R 2 200 m) • Closed stores: 162 (Sales R 542 m) • Net stores: 170 (Sales R 1 658 m) • Shoprite share - R 453 m Sales growth 1.98% of total turnover Like for Like Market Share Corporate Majors

South Africa Only Jun 01 Jun 02

34.3 33.9 30.1 30.1

24.2 24.4

11.4 11.7

Shr Group PnP Group Spar Group WW Total Store growth per channel

Total anualised Percentage 19.1 Growth by Channel 14.9

11.1 9.1

Hypers Corp SM Franchise C Store Preferred shopping destination

60.0 At which store do you currently shop?

21.7 23.9

10.4 6.7 5.7 3.9 Spar Pnp SM Shr/Chk Pnp Fam KwikSpar Hyperama Hypermarket Consumer chain price ratings Best Specials Competitive priced

103 103 91 87 84 86 PnP Spar Shoprite Shopper LSM Profile 40

0 '1-3 4 5 6 7 8 9 10 Checkers 18.2 13 16.8 18.7 9.5 9 8.3 6.5 Shoprite 23.5 16.6 18.6 19.5 7.7 6.4 4.8 2.9 Shr/Chk 21.1 15.0 17.8 19.1 8.5 7.6 6.4 4.6 All Resp 37.7 13.4 11.9 12.5 6.4 6.4 6.1 5.6 Shopper Age Profile 32

17 16 - 24 25 - 34 35 - 49 50 Checkers 20 28 30.5 21.6 Shoprite 20.3 30.7 31.2 17.9 Shr/Chk 20.1 29.4 30.9 19.6 All Resp 26.3 25.2 26.5 22.1 Whitey Basson Chief Executive Officer Shoprite Holdings Limited Financial • Accounting principles – GAAP Requirements – Accounting concepts • Buildings – Valued R 950 m – 13% return – Book R 632 m – Undervalued R 318 Financial (cont) • Write off – R 39 m impairment – R 17 m depreciation • Balance - Tax negative goodwill (R 303 m) • Actual tax R 151 m – Deferred tax R 77 m – Actual payment R 74 m (13,5%) – EPS (Eff. Tax) 85,4 c Financial (cont) • Rent closed stores – Unproductive buildings R 82 m • Franchise Operation – Abnormal write off R 42 m – Corporate stores as shut down not going concern Personnel

• Succession Management

• New foreign expansion Marketing

• Market Share

• Customer growth

• Checkers v Shoprite Africa – Existing & Future • Return on investment before loss making countries = 42% • Establishment cost before interest: Current year = R 46 m • GDP - South Africa = $ 111,7 bn - Rest of Africa = $ 410,7 bn - India = $ 542,6 bn • Egypt • Mauritius • India Business Check list Failed Succeeded Succession management ü Training ü No of Store openings (too few) ü Stock reduction ü Operating profit to 3% level ü IT & distribution ü Customer growth ü Basket size ü Overall ü Not just luck over 22 years Fasten your seatbelts… Conclusion

• Corporate governance v Corporate incompetence

• Plett v Angola

•ENJOY THE RIDE !