Slide 1: 2003/04 Results Presentation
Slide 2: Key Highlights for 03/04 Financial Year
ed Key Highlights for 03/04 Financial Year »> Successful integration of Marlows & Rocca Bros business m Seven week conversion program — 20 stores, 2 DC's Launched in New Zealand 7m m= 7 stores on one day — 29% November 2004 Opened 39 new stores ™ Australia: 20 m= New Zealand: 19 Increased team membe
Slide 3: Key Highlights for 03/04 Financial Year
LSS Key Highlights for 03/04 Financial Year ™ Merchandise Planning Initiatives m Product Forums m@ Category Planning / Range Reviews ™ Re-engineered Supply Chain @ New DC in Wiri (Auckland), New Zealand ™ Closed South Australian DC (acquired in Marlow’s transaction) m = Re-structure of Western Austr
Slide 4: Key Highlights
Key Highlights @ 2003/04 Results ™ STRONG RESULTS for 2003/04 exceeding Prospectus forecasts in all major areas m Driven by opening of 7 stores in June 2004 that had been forecast to open in July 2004 ™ EXCEEDED EBITDA m $1.4m ahead of forecast m 23% growth on last year ™ EXCEEDED SALES m $3.8m ahea
Slide 5: Store Numbers
Store Numbers ee i=7) oO Jun 01 Jun 02 Jun 03 Jun 04 Prospectus » 783 stores trading by 26 June 04 @ 7 higher than prospectus forecast m 39 stores opened during the year ¢« 20 stores in Australia ¢ 19 stores in New Zealand ™» 7190 stores tradin g at 23 August 04 le
Slide 6: Our Current Locations
Our Current Locations at 23 August 2004 LSS Wellington hristchurch pales 5 . y Newcastle Auckiet
Slide 7: The Results 2003/04
The Results 2003 / O04
Slide 8: EBIT
EBIT 25.0, 20.0, 15.05 10.05 ed 5.07 00/01 01/02 02/03 03/04 Prospectus » 2003/04 EBIT - $22.8m m™ $2.0m higher than prospectus forecast @ 15.2% growth on 02/03
Slide 9: Sales
Sales ed 00/01 01/02 02/03 03/04 Prospectus » 2003/04 Sales - $382.7m @ $3.8m higher than prospectus forecast m@ 39.1% growth on 02/03 m@ LFL growth at 4% - in line with forecast
Slide 10: Sales
Sales Sales Prospectus Australia New Zealand Total ed » Australian sales boosted by: @ 2 additional new stores opened ahead of forecast # strong performance from recently opened stores » NZ sales impacted by: H@ a lower result reflecting seasonal impacts # holding back promotional activity ahead of
Slide 11: Gross Margin
Gross Margin ed 00/01 01/02 02/03 03/04 Prospectus ™» 2003/04 Gross Margin - 38.4% @ 0.1% pts higher than prospectus forecast ¥ improvements in trading terms ¥ improvement in freight costs m@ 0.9% pts below prior year v reflecting ly chain costs 11
Slide 12: Operating Costs
Operating Costs 30.5 30, 29.5, 29, 28.5) 28 27.57 277 26.5+ ed 00/01 01/02 02/03 03/04 Prospectus » 2003/04 Operating Costs : Sales — 30.0% Mm 0.3% pts lower than prospectus forecast ¥ additional sales generated with only minor increase in $ operating costs m@ 0.2% pts higher than prior year ¥ stron
Slide 13: Trading Statement
Trading Statement Prospectus $m % of sales Sales 378.9 Gross Profit «38. 145.3 38.3 Op Ex ) . (114.7) 30.3 EBITDA . 30.6 8.0 EBITA . 23.7 6.3 EBIT . 20.8 5.5 NPAT 11.4 (normalised) NPAT 0.2 AAA + Small saving in depreciation due to delayed capital expenditure on forklifts and IT * Share issues costs
Slide 14: Cash Flow
ATS EBITDA Tax Paid Working capital Management loans Other Assets Prospectus Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Cash Flow To be refunded in 04/05 ~- the prospectus forecast net the receivable against tax p
Slide 15: Net Debt
Net Debt Prospectus $m Closing net cash 5.0 Closing gross debt Closing net debt Pro-forma Adjustments for Pre IPO transactions: Management loans Liability arising on settlement of Team Member share loans SAA SAAS Pre IPO dividends | Liability reclassified as debt Pro-forma net debt Working capital i
Slide 16: Balance Sheet
Balance Sheet Inventory Average Inventory per store of $504k was below prospectus forecast of $530k — achieved earlier than planned reductions plus benefit of higher sales Trade Payables Net Inventory investment Improved position compared to prospectus forecast ~ business will be targeting further i
Slide 17: Key Ratios
SAA SAAS Eamings per Share - pre amortisation and abnormals - post amortisation and abnormals Fixed Charge Cover Pro-forma Net Debt : Capital - headline - adjusted Pro-forma Return on Capital - headline - adjusted Key Ratios Prospectus forecast ~ 13.4c Prospectus forecast ~ 0.2¢ EBITDAR / (Interest
Slide 18: 2004/05 Outlook
Slide 19: Looking Forward
ed prospectus forecasts Store Numbers 450 400 179 Australia New Zealand = F’cast 05 FY Looking Forward @ On track to achieve 205 stores trading by June 2005 and i Total 04: 183 350 | Total F'05: 205 300 | Australia Total 04: $382.7m Total F’05: $474.3m New Zealand & F'east 05 FY 19
Slide 20: Looking Forward (cont)
Looking Forward (cont) @ Project FOSIL - Focus on Supply, Inventory and Logistics ™ Potential to delivering revenue, cost and capital benefits for: gm Freight efficiency m= DC productivity ee m Forecasting and replenishment systems m= Inventory management ™ Benefits included in prospectus forecast f
Slide 21: Looking Forward (cont)
Looking Forward (cont) @ Supplier Relations ™ Continue improvement with our Suppliers: m= Collaborative approach to future requirements Range development and exclusivity Own brand Trading terms SAA SAAS Payment methods @ Merchandise Planning ™ Range reviews ™ Christmas 04 initiatives covering: @ = I
Slide 22: Looking Forward (cont)
Looking Forward (cont) @ Trading YTD in line with Prospectus forecasts for 2004/05 of: ™» Sales: $474.3m ™» EBIT: $27.6m ™® NPAT: $15.4m ee @ Like for like sales growth being driven by Promotional activity ™ First quarter: Lower than 04 year ™ Second quarter: Higher than 04 year ™ Third quarter: In
Slide 23: 5
5