Presentation of consolidated results

For the quarter ended 30 June 2012

2

Overview

Operational and

Strategic update

Financial review

Looking forward

Jürgen Schreiber, CEO

Jürgen Schreiber, CEO

Mark Bower, Deputy CEO and CFO

Operational and strategic update

Jürgen Schreiber

4

Adjusted

EBTIDA1

12.1%

Operating

cashflow1

Q1 LFL

Salient features

Total revenue1

1.9%

Retail sales

1.8%

(LFL up 0.9%)

Financial

Topshop deal

announced

Retail

sales, two

trading

periods

LFL retail sales

differences in

divisions

Operational and strategic

April - May

0.6%

June

7.8%

Edgars

Division

Discount

Division

Q1 LFL

2.5%

5.1%

1 Excluding OntheCards Investments II (Pty) Ltd

14.4%

5

Operational and strategic update - Edgars

Edgars division

Key initiatives at an early stage and benefits still to come: • Store refurbishment and optimisation concepts

• Reinvigorated marketing plan

• Pricing projects

• Merchandising projects

Strengthening of brand portfolio boosted by Topshop deal

Rollout focused on Edgars, Edgars Active and Red Square

CFT, Cosmetics,

Mobile

C&F, Activewear,

Mobile

Housewares,

Appliances, Textiles

Beauty, Cosmetics,

Skincare

Stores

Increase of 33

Total of 341 (of which 28 converted

and new Edgars Active)

Space

705,030m2

6

Operational and strategic update - Discount

Discount Division

Impact of initiatives working well but still much opportunity

• Store refurbishment and new generation stores

• Merchandising optimisation on track

Discom completely out of division from July

CFT, Mobile

CFT, DIY,

Appliances, Beauty,

Textiles

Youth Fashion

Ladieswear

Stores

Increase of 7 stores

Closure of 57 stores (Discom mainly)

Total of 615 stores

Space

569,694m2

7

Operational and strategic update - CNA

CNA Division

Store optimisation projects starting to show benefits

Rightsizing of stores

Merchandising mix improvements

Focus on existing stores

Stationery, Books,

Toys, Digital, Mobile

Stores

Increase of 3 stores

Closure of 2 stores

Total of 195 stores

Space

89,767m2

8

Operational and strategic update - other

Direct sourcing in progress

Local and regional sourcing improvements

Fast fashion cycles and quick response

Products and sourcing

Average space growth of 2.6% versus Q1:2012 .

First phase of brand/format rationalisation completed

Conversion of Discom (most) to Edgars Active and Legit

showing strong returns

Expecting to launch in Mozambique in early September

Property

Merchant system upgrades in progress

Aligned for closing of sale of credit book

IT

Increase in loyalty customers to 7.2 million

Marketing and promotional efforts across the Group

Customised data mining

Loyalty

Financial review

10

Key financial considerations

Sale of credit book to Absa

• Process still expected to close by

end of calendar year

• Separately disclosed as

discontinued operations but included

in Adjusted EBITDA

• Debtors book seperately disclosed

as “held for sale”

• Still evaluating options regarding use

of proceeds

Consolidation of OtC

• Will unwind as part of the sale of the

credit book

• Reconciliation included

11

Key metric comparison

(R millions)

Including consolidation of OtC(1) Excluding consolidation of OtC(1)

Q1:2012

Actual

Q1:2013

Actual % change

Q1:2012

Actual

Q1:2013

Actual % change

Total revenues(2) 6,097 6,216 1.9 6,090 6,206 1.9

Discontinued operations, net of tax 106 76 (28.3) 42 43 2.4

Adjusted EBITDA(3) 995 842 (15.4) 908 798 (12.1)

Total debt at unhedged rates 24,813 26,570 7.1 20,513 22,270 8.6

Total net debt including cash and

derivatives 24,607 25,771 4.7 20,973 22,298 6.3

Operating cashflow (before changes to working capital)

971 1,055 8.6 884 1,011 14.4

Changes to working capital (975) 353 - (997) 310 -

(1) OntheCards Investments II (Pty) Ltd (2) Excludes discontinued operations (3) Includes discontinued operations

12

Income statement

(R millions) Q1:2012

Actual

Q1:2013

Actual %

change

Retail sales 5,816 5,922 1.8

Gross profit 2,211 2,231 0.9

Gross profit margin 38.0% 37.7%

Other income 127 287 126.0

Store costs (1,094) (1,183) 8.1

Other operating costs (836) (946) 13.1

Retail profit 408 389 (4.6)

Credit and financial services (JV) 281 256 (8.9)

Adjusted EBITDA (including discontinued operations) 995 842 (15.4)

(1) OntheCards Investments II (Pty) Ltd

Including consolidation of OtC(1)

13

Revenue analysis

Division

Retail sales growth % Gross profit margin %

Q1:2013

Actual

Apr - May

LFL(1)

Jun

LFL(1)

Q1:2013

LFL(1)

Q1:2012 Q1:2013

Edgars 1.9 (4.9) 1.7 (2.5) 42.5 41.1

Discount 1.8 1.4 14.0 5.1 33.2 34.0

CNA 1.9 3.1 5.2 3.8 33.2 33.9

Total 1.8 0.9 38.0 37.7

(1) Like-for-like

Closure of Discom positively impacted Edgars at the expense of Discount

African sales contribute 6.8%

Retail sales

Other sales

Other income includes club fees and manufacturing to third parties as well as a

once off settlement of R143 million relating to the closure of the Mastercard

arrangements

14

Cost analysis

Store costs

Other operating costs

Increased 13.1%

Excluding transitional costs, 9% increase

• Transitional related expenditure up from R18m to R56m

Corporate overheads increased 8.1%

Increased 8.1%

Inflationary cost base increases above sales growth

• Rental on premises increased 12.8%, affected also by a 2.6% increase in average space

• Water and electricity increased by 21.5%

Salary increases of 7-8%, a stable workforce and improved productivity

15

Credit and financial services

(R millions)

Q1:2012

Actual

Q1:2013

Actual % change

Profit before tax from JV

(financial services)

133 150 12.8

Profit before tax from credit

(discontinued operations)

148 106 (28.4)

Credit and financial services profit before tax 281 256 (8.9)

OtC adjustment, pre tax 87 44

Credit and financial services profit before tax, excluding OtC 194 212 9.3

(1) OntheCards Investments II (Pty) Ltd

Increase in JV profits due to increased insurance sales

Decrease in profit before tax from credit (discontinued operations) due to higher

provisions and operating costs

• Moving annual bad debts to average debtors of 6.7% down from 10.0% last year

• Active account base of 3.8 million, compared with 3.7 million last year

Including consolidation of OtC(1)

16

Cashflow

(R millions)

Q1:2012

Actual

Q1:2013

Actual

Operating cash inflow 971 1,055

Working capital (975) 353

Inventories (38) 61

Receivables (376) (33)

Payables (561) 325

Cash inflow/(outflow) from operating activities (4) 1,408

Capex (excl finance leases) (436) (197)

Store fixtures 52 99

IT infrastructure 117 68

Other 41 30

Property 226 0

FCF (cash from operating activities less capex) (440) 1,211

(but before Taxation paid) (31) (1)

Including consolidation of OtC(1)

(1) OntheCards Investments II (Pty) Ltd

Payables positively impacted by payment cycle shift

17

Liquidity and capital resources

(R millions) Drawn

Super senior secured

Revolving credit facility in ZAR 211

2016’s ZAR Floating notes – J+625bps 1,010

Senior secured

2014’s € FRN’s – E+325bps 11,689

2018’s € Fixed rate – 9.5% 3,188

2018’s $ Fixed rate – 9.5% 1,986

Senior unsecured

2015’s € FRN’s – E+550bps 3,846

Notes issued by OtC(1) 4,300

Lease liabilities 340

Gross debt 26,570

Derivatives 316

Cash on hand (1,115)

Net debt 25,771

RCF facility increased by

R1.5 billion

Foreign debt floating rates all

swapped to fixed

60% of all foreign debt

principal and 100% of coupon

hedged to ZAR until March

2014

18

Estimated financial impact of credit book sale

All figures in

R’ millions

Q1:FY2013

(Excl OtC(3))

Q1:2013

(Incl OtC(3))

Q1:2013

Estimates(1)

Adj. EBITDA 798 842 667

Net cash inflow from operating activities 1,321 1,408 1,320

Net debt (2) 22,298 25,771 16,141

Net debt/EBITDA 6.5x 6.6x 5.4

Based on management estimates

Highlights:

~R9.6 billion reduction in Net debt

~R175 million reduction on Adj. EBITDA

~ R213 million savings in interest

No impact on cashflow for 3 months as investment in receivables only R87 million

>1x deleveraging effect (1) Q1:2013 estimated figures are illustrative and assume that transaction occurred on 31/03/2012

for purposes of deriving Net debt and Adj. EBITDA. Net book value of book was R10 billion

(including all jurisdictions) as of 31/03/2012

(2) Net debt is inclusive of derivative valuation

(3) OntheCards Investments II (Pty) Ltd

Looking forward

20

Outlook

Leverage Discount division momentum

and focus on implementation of

initiatives in Edgars

Store investment on track

Executing Sub-Saharan African strategy

Closing of strategic transaction with

Absa

21

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