PRESENTATION OF CONSOLIDATED RESULTS

For the 52 weeks ended 29 March 2014

AGENDA

Jürgen Schreiber

CEO

Strategic and

operational update

Jürgen Schreiber

CEO

Looking forwardFinancial review

Toon Clerckx

CFO

2

STRATEGIC AND OPERATIONAL UPDATE

VISION

Creating unique

experiences

Focused customer

groupings

Exceptional value

proposition and

choice of product

Distinctive retail

formats

4

TRADING ENVIRONMENT

Retail sales1 Credit extension1,2

1) Stats SA and SARB – May 2014

2) Other Loans and advances

3.2%

8.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Total retail sales CFT Sales

74.0%

74.5%

75.0%

75.5%

76.0%

76.5%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Credit extension Debt-to-Household Income

• CFT sales growth consistently outperforming total retail sales

• GDP growth slowing to 1.9% in 2013 (vs 2.5% in 2012), contracted by 0.6% in Q1 of the 2014 calendar

year

• Worsening trends in household disposable income growth (average growth 7.7% in 2013 vs 9.9% in 2012)

and slower credit growth, both negative for spending

• April CPI of 6.1% y-o-y, driven by higher food and fuel prices

• USDZAR and EURZAR depreciated 15.3% and 23.4% respectively between March 2013 and March 2014

5

KEY STRATEGIC LEVERS

• Revamp stores and service

• Store optimisation

• Assortment: brands and improved private label

• Leverage loyalty programme

Comparable

store growth

• Sourcing

• Pricing management

• Group efficiencies

• Margin

expansion

• Grow existing format footprint

• Rollout of tested new formats

• Expand into rest of Africa

• Right size CNA

New space

growth

• Implement a second look credit provider

• Broaden financial services offeringCredit

Working capital management

6

PERFORMANCE AGAINST STRATEGIC LEVERS

Sales growth Margin

7

Credit and cash sales growth New space growth

• GP Margin relatively flat at 36.5% (36.7% in

FY13)

• Product cost inflation due to weaker ZAR

• Negatively impacted by increased clearance activity

in Edgars

• Pleasing Discount Division performance due to

changes implemented in previous years

• Average space growth of 5.2% in line with

strategy

• Meaningful space growth in Edgars due to

acquisitions and refurbishment project

• Discount space increase driven mainly by

expansion outside of South Africa

• Right-sizing of existing CNA stores

All numbers include Edgars Zimbabwe. All quarters refer to FY14

9.2

1.9

5.1

3.2

5.9

3.3

9.1

7.9

0.3 0.5 -0.31.2

-1.5

3.0

FY12 FY13 FY14 1Q 2Q 3Q 4Q

Retail Sales (%) Comp Sales (%)

14.0

3.0 -4.3 -4.2 -3.7 -6.8-1.9

4.5

0.7 15.3 12.216.4 14.2 17.3

FY12 FY13 FY14 1Q 2Q 3Q 4Q:FY14

Credit sales (%) Cash Sales (%)

Retail

Sales

LFL

EDGARS DIVISION – OPERATIONAL PERFORMANCE

• Diversity between cash and credit

sales growth reflecting both

opportunity and challenges

• Cash sales growth of 16.4%

• Credit sales decline of 6.4%

• LFL impacted by negative credit

sales growth and exacerbated by

refurbishment program

• Sound brand rollout and performance

• Improved sourcing negatively

impacted by higher level of

promotional activity required due to

declining credit sales and

refurbishment initiative

• Cost inflation (due to weaker ZAR)

not able to be passed on

Sales growth Margin

2.7%

2.7%

GP

Margin

38.6%

1.1pts

1.2

3.4

0.6

7.4

2.7

-3.0-1.6

-4.8

0.7

-2.7

Q1 Q2 Q3 Q4 FY14

Retail Sales (%) Comp Sales (%)

All quarters refer to FY14

8

EDGARS DIVISION – CAPITAL INVESTMENT

• Total of R873m spent in the year

• Spend in Q4:FY14 of R82 million

• Edgars refurbishment project completed

• Cumulative spend of R542 million at end of FY14

including expansion capex for those stores

• Future capex to be spent more on expansion

• 53 stores opened (16 closures and

conversions)

• 31 Edgars Active, 10 Edgars,

3 Boardmans, 5 Red Square, 4 Edgars

Shoe Gallery

• Strong rollout of standalone stores

• 39 Inglot, La Senza and Accessorize

• 13 new mono-branded stores

• 10 new stores outside of SA

Capex FY14 (R millions) New space growth

9

Average

759.3m2

478 stores

6.1%

Refurbishment

602; 69%

Expansion

271; 31%

Retail

Sales

LFL

DISCOUNT DIVISION – OPERATIONAL PERFORMANCE

• Diversity between cash and credit

sales growth reflecting both

opportunity and challenges

• Cash sales growth of 16.9%

• Credit sales decline of 3.9%

• All merchandise groups performed

well

• Buying and pricing strategies

continue to yield positive results

• Cost inflation (due to weaker ZAR)

well managed

Sales growth Margin

7.4%

3.2%

GP

Margin

34.1%

1.1pts

4.7

10.3

7.87.0 7.4

1.7

5.4

2.8 3.1 3.2

Q1 Q2 Q3 Q4 FY14

Retail Sales (%) Comp Sales (%)

10

All quarters refer to FY14

DISCOUNT DIVISION - INVESTMENT

• Total of R212 million spent in the year

• R5 million in Q4:FY14

• Well balanced expansion, mainly outside South

Africa, and refurbishment

• 65 stores opened (32 closures and

conversions)

• 41 Jet

• 7 Jet Mart

• 17 Legit

• 22 new stores outside of

South Africa

• Portfolio management key

Capex FY14 (R millions) New space growth

11

Refurbishment

102; 48%

Expansion

110; 52%

Average

608.5m2

685 stores

4.9%

CNA DIVISION

• Sales driven by

continued growth

in digital

merchandise sales

• Credit a much

smaller part of the

business

• Trading density

improvements

• Space decrease in

line with right

sizing strategy

• Cumulative capex

spend of R16m for

the year

Sales growth New space growth Margin

• Margin decrease

due to mix

changes as well as

increased

promotions

Retail

Sales

LFL

3.2%

3.1%

Average

88.0m2

191 stores

1.7%

GP

Margin

31.1%

1.3pts

4.5

3.6

0.3

5.2

3.23.6

1.6

0.8

4.7

3.1

Q1 Q2 Q3 Q4 FY14

Retail Sales (%) Comp Sales (%)

12

FINANCIAL REVIEW

KEY CONSIDERATIONS FOR FY14

• Credit: Cash sales ratio of 47.3%* as cash sales

grow 15.3% while credit sales decline 4.3%

• Currency devaluation

• Easter shift, half of Easter in FY15

• Refinancing impact

• Negotiations underway to establish African Bank

as a secondary credit provider

• relationship with primary credit provider, Absa not

affected

• Implementation of Absa scorecard

• Covenant changes

• Permanent cost savings

During the financial year Events after the reporting period

*Including Edgars Zimbabwe

14

11.78

14.54

9.16

10.56

2013-03-01 2013-04-01 2013-05-01 2013-06-01 2013-07-01 2013-08-01 2013-09-01 2013-10-01 2013-11-01 2013-12-01 2014-01-01 2014-02-01 2014-03-01

EURZAR USDZAR

FY13 FY14

STATEMENT OF COMPREHENSIVE INCOME

Q4:FY13 Q4:FY14 % change (R millions) FY13* FY14 % change

5 468 5 965 9.1 Retail sales 25 670 26 974 5.1

1 898 2 083 9.7 Gross profit 9 431 9 842 4.4

34.7 34.9 0.2 pts Gross profit margin 36.7 36.5 (0.2) pts

256 288 12.5 Other income 763 1 031 35.1

(1 265) (1 507) 19.1 Store costs (5 076) (5 700) 12.3

(946) (1 233) 30.3 Other operating costs (4 427) (4 613) 4.2

184 205 11.4 Income from joint operation 666 739 11.0

127 (164) (229.1) Trading profit 1 357 1 299 (4.3)

367 279 (24.0) Pro forma adjusted EBITDA 2 760 2 687 (2.6)

* Restated for the 2013 financial period for the consolidation of Edgars Stores Limited Zimbabwe and re-presented for the discontinued operations

15

PRO FORMA ADJUSTED EBITDA

Q4:FY13 Q4:FY14 % change (R millions) FY13 FY14 % change

127 (164) Trading profit 1 357 1 299

263 289 Depreciation & amortisation 1 056 1 137

1 7 Net asset write off(1) 22 11

17 (50)Profit/(loss) before tax from discontinued

operations351 (86)

(19) 139 Non-recurring costs(2) 545 266

389 221 (43.2) Adjusted EBITDA 3 331 2 627 (21.1)

(36) 52Net income from previous card

programme (3) (738) 29

14 6 Net income from new card programme (4) 167 31

367 279 (24.0) Pro forma adjusted EBITDA 2 760 2 687 (2.6)

6.7% 4.7% (2.0) pts Pro forma adjusted EBITDA margin 10.8% 10.0% (0.8) pts

1) Relates to assets written off in connection with store conversions, net of related proceeds.

2) Relates to a) FY2013 costs relating to Project Rugby R516 million, transitional costs R83 million, refinancing costs R87 million and Master card income of R141 million and b) FY14 costs relating to

Project Rugby R116 million, restructure cost R93 million and post retirement liability of R57 million.

3) Net income derived from 100% of the trade receivables including finance charges revenue, bad debts and provisions.

4) Pro forma fee earned by Edcon under the new arrangement with Absa, based on 100% of the trade receivables book.

16

UPDATE ON COST PROGRAMME

(R millions) FY14

LTM pro forma adjusted EBITDA (reported) 2 687

Permanent adjustments:

Corporate and operational overhead reductions 143

Renegotiation of contracts 89

LTM pro forma adjusted EBITDA (incl. adjustments) 2 919

Normalised pro forma net debt (1)/LTM pro forma adjusted EBITDA (times) 7.6

• Benefit of approx R185 million included in the year’s profit

• New cost savings initiatives well advanced and make up

R191 million of R232 million LTM savings anticipated

17

(1) Net debt has been adjusted by trade receivables still to be sold of R618 million

R22 678 m (net debt) - R618 m = R22 060 m (normalised pro forma net debt )

COST ANALYSIS FOR 2014

• Store costs increased 12.3%

• Mainly due to new space

• Increases more pronounced in Edgars division

• Rental and manpower costs (which constitute

61.7% of store costs) increased 12.8% and

9.9% respectively

Other operating costs Store costs

(R millions) FY13 FY14

%

change

Other operating costs 3 651 3 791 3.8

Store card administration 231 556

Non-recurring costs 545 266

Total other operating costs 4 427 4 613 4.2

• Good cost containment with other operating costs

increasing by 3.8%

• Store card administration in for only 5 months in

prior year and lesser portion of the trade

receivables book

• Lower non-recurring costs

• Implementation of sale of trade receivables in FY13

• Completed sale of trade receivables in FY14

• Restructure costs

18

CAPEX INVESTMENT

• Total capex, excluding leases, of R1,349m for

FY14

• 138 new stores opened (incl. 8 conversions)

• R520m increase in store spend to R1,101m* in

FY14 from R581m in FY13

• Edgars expansion refurbishment project costs of

R542m for FY14

• As expected, R174 million more spent than

previous estimate of R1,175m for FY14 as

projects were pushed forward

• R1,051 million budgeted for FY2015 (including

Edgars Zimbabwe)

19

Total capex breakdown (R millions)

873212

16

19422 32

Edgars Discount CNA IT Other Zimbabwe

Store capex mix* (R millions)

382

719

Expansion Refurbishment

* Excluding Edgars Zimbabwe

Cashflow for FY1420

2 806

1 331

2 035

371

410

710

Net financing

costs

Capex &

investments

Working capital

114

Currency

adjustments

Closing cash

balance

Net financing

and other

3

Operating

activities

Opening

cash balance

(1) Includes R431m of capital expenditure and R2m of other investing activities

(2) Includes R1m FX movement, R266m of non recurring costs, tax of R115m and net financing activities of R752m

(1)

-635

-308

Trade and

other payables

213

Inventories Trade and other

receivables

Working capital

(2)

(R millions)

FY2013

Drawn (1)

FY2014

Drawn (1)

Super senior secured

Revolving credit facility in ZAR 1 456 1 210

2016’s ZAR Floating notes –

J+625bps 1 010 1 010

Senior secured

2017 ZAR Term loan –

J+700bps4 008

2014’s Floating notes –

E+325bps 4 543

2018’s € Fixed rate – 9.5% 6 933 8 691

2018’s $ Fixed rate – 9.5% 2 245 2 603

Deferred option premium 305 1 102

Lease liabilities 313 273

Senior

2015’s € FRN’s – E+550bps 4 406

2019’s € FRN’s – 13.375% 5 948

Other loans(2) 182 173

Gross debt 21 393 25 018

Derivatives (1 028) (1 930)

Cash and cash equivalents (710) (410)

Net debt 19 655 22 678

LIQUIDITY AND CAPITAL RESOURCES ADEQUATE

• Undrawn RCF of R2,757 million

• R3 717m matures 31 December 2016

• R250m matured 31 March 2014

• Significant refinancing during the year

• meaningfully extending the maturity profile of debt.

• All currency hedged, except 2019 fixed

rate notes

• All coupons fully hedged to Mar and Dec 2015

21

30%

10%35%

24%

1%

ZAR USD (hedged) EURO (hedged)

EURO (unhedged) Other loans

(1) FX rates at end FY12 were R7.71:$ and R10.29:€ and at end FY13 were

R9.16:$ and R11.78:€ and at end FY14 were R10.56:$ and R14.54:€

(2) The portion of this debt relating to Zimbabwe was R182m in FY13 and R170

million in FY14

Hedging of gross debt

LOOKING FORWARD

23

OUTLOOK

• Finalise and implement on a second look credit provider solution to grow credit sales

• Gross margin management through improved sourcing strategy and currency management

• Store and overhead cost containment emphasis

• Working capital focus

• Continue to develop winning Thank U loyalty card programme

• Execute on space growth pipeline and vision for rest of Africa

• Right size CNA stores

• Leverage specialty and mono-brand store opportunities

• New management team changes drive energy and focus

23

THANK YOU

For more information

Our website: www.edcon.co.za

Edcon contacts for more information:

Executive Investor Relations and Media:

Debbie Millar 011 495 4086 / dmillar@edcon.co.za