Interim ResultsOctober 21st | 2008

Overview

Delighted with Australia – first half profit

Another exceptional performance from Boxer

Pleasing performance from Pick n Pay Retail

Gaining customers in difficult market conditions

Great performance by franchise

Score conversions doubling previous sales

Continuing to invest: Score conversions, supply chain, SAP, brand

Strategy implementation gaining momentum

Format strategy

New flagship stores

Private label

Strategy updateHalf year to

August 2008

Agenda

Financial highlightsContinuing operations

Headline Earnings Per Share 15.2%

Interim Dividend Per Share 15.0%

Trading Profit 16.7%

Turnover 16.4%

Diluted Headline Earnings Per Share 21.5%

Score has been treated as a discontinued operation

R’bn

14.2

2004

15.6

2005

17.3

2006

20.3

2007

23.7

2008

16.4%Aug 2008 growth

TurnoverContinuing operations

375

2004

377

2005

470

2006

592

2007

691

2008

Rm 16.7%

2.9 %2.9 %

2.7 %

2.4 %

2.7 %

Trading profit and margin

Aug 2008 growth

Continuing operations

Cents21.5%Aug 2008 growth

Cents

53.1

2004

53.9

2005

64.9

2006

73.9

2007

89.8

2008

55.6

2004

56.5

2005

68.7

2006

78.4

2007

90.3

2008

15.2%Aug 2008 growth

Diluted headline earnings per share

Headline earnings per share

Continuing operations Continuing operations

19.80

2004

23.30

2005

27.00

2006

31.10

2007

35.75

2008

Interim Dividend Per Share

Aug 2008 growth 15.0%Cents

12 months to AugustCash generated from operations

Rm Aug 2008 growth 14.9%

1,145

2004

1,366

2005

1,520

2006

1,944

2007

2,233

2008

Trading environment

Food inflation continues to rise hitting lower income householdshardest – CPI Food reaching 18.8% in Aug ’08

Pick n Pay internal inflation lower than CPI Food:

12.5% for the 12 months to August 2008,

13.5% for the 6 months to Aug,

14.5% Aug 08 vs Aug 07

September inflation showing a modest decline

Major drivers over past year have been cooking oil, rice, margarine, bread, fresh milk, coffee

Source: Stats SA

Aubrey ZelinskyMD | Franklins Australia

Result for the six months ended 31 August 2008

Change6 Months6 Months

AUD 31 August2007

31 August2008

Sales

Total Operating

Profit

Depreciation

Nett Operating

Profit (Loss)

419,081,479 410,208,192 2.2%

7,090,615 (543,087) 7,633,702

(6,800,449) (6,231,217)

290,166 (6,774,304) 7,064,470

• Improvement in profitability v same period last year $7.1million / R41.8million

• Reduction in stockholdings $6.3miilion (8.5%)

• Cash generated from operations $18.6million

• 7 store refurbishments completed, 5 in progress

• 3 new store openings

• 7 franchise stores

Operational Highlights

Store refurbishments completedSales Growth % opening before end Feb 09

Operational HighlightsStore refurbishments in progress

Casula

Woonona

Thirroul

North Ryde Cox’s Road

Penrith Plaza

Panania

Taren Point

40%

10%

20%

15%

27%

12%

17%

Pagewood

Turammurra

Woy Woy

Spit Junction

St Ives

Membership up 100,000 since January 2008Franklins Loyalty Club

• Dry groceries

• Perishable and frozen

• Fruit and vegetables

Totally self reliant for all supply, including:

• Dry groceries 93%

• Perishable and frozen 96%

• Fruit and vegetables 99%

Warehouse service levels

Supply Chain

• Inventory reduction

• Shrinkage improvements

• Labour and productivity management

SAP

Fully operational across entire business

Facilitated substantial operational and financial benefit

Half year to

August 2008Strategy update

Agenda

South Africa’s favourite and most admired grocery retailer

Customers

Defend and grow

leadership in

LSM 8-10

heartland

Bring the best of Pick n Pay to LSM 4-7

Operations

Invest to

improve

operating

model

Continue

to deliver

operating

efficiencies

People

Build world

class retail

capabilities

Sustainability

Create a sustainable future

Our strategy

Inspired by youStrategy implementation forging ahead

What customers said Our response

“We love Pick n Pay, but your image and stores are beginning to look tired”

Reinvigorated our Brand

Refurbishing flagship stores ( e.g. Claremont )

“We want Pick n Pay stores in the townships”

Converted Score to Pick n Pay

Opening stores in emerging market locations ( 77 stores )

“We’re shopping more frequently, and at smaller stores”

Piloting PnP Daily

Piloting PnP Express

“We like your private label brands but we’re confused by Choice and No Name”

Re-launched Choice as PnP

Clarified positioning of No Name

Gaining customers across all LSM groups

More than 70% of LSM 8-10 shop at PnP – highest of any retailer

52% of PnP shoppers are in LSM 7 and below

Q2 saw improvement in loyalty for both Hypers and Supers (incl. Family)

2006

2008

2006

2008

TotalLSM 4-7

LSM 8-10

2006

2008

10.4% growth p.a.

8.4% growth p.a.12.5% growth p.a.

Source: AMPS 2008

Source: Nielsen

Shopping occasion

Store size

Big ticketpurchase(e.g. fridge)

Big monthlygrocery shop Weekly shop

Top upor impulsepurchase

Pick n Pay | Multi format strategy

Home shopping

Market size

R 17.1 bn

R 94.0 bn

Supermarkets

R 13.9 bn

R 8.3 bn

Every store meeting or exceeding expectations

All profitable within first12 months

High sales per site – double what we would expect to achieve with a supermarket

New Hypers performing strongly

First flagship refurbishment at Claremont

First ‘flagship’ revamp with full branding

Most successful opening ever– queues outside every day for 18 days

Incredible customer reaction

Target occasions are weekly and top-up shop

Tighter range, smaller store, convenient locations

Trial to evaluate operating model

Convenience

2 trial sites in Cape Town this yearPartnership with BP | Forecourts

Brand launch update

118 stores have been rebranded

Nearly 200 delivery vehicles have been rebranded

Fresh Living selling 50,000 copies per month - now fastest selling Food and Lifestyle magazine

~

No Name

Pick n Pay

Private label | Relaunch underway

1083 Lines repackaged

481 New PnP Brand Products available in-store

PnP rebranding has resulted in significant sales uplifts;

100% for PnP yoghurt

35% for PnP chips

Year 2008

Mar Apr May Jun Jul Aug

Almost every month for the past 6 months, Adcheck (an independent research company) has proved that Pick n Pay gives you more for your money on a representative basket of over a 1000 of the top grocery lines

Gauteng

Free State

Eastern Cape

Kwa - Zulu Natal

Western Cape Comp Comp

Northern Region Comp

PnP continues to lead the price checkin every region

Longmeadow now open

Fresh, Imports, Grocery, Strategicbuys

Fully integrated warehouse for Gauteng

New store replenishment systems being introduced

Phase 01Increase General Merchandise capacity

Increase flow of product through Longmeadow

Create additionaldry grocery & perishables capacity in regions

Phase 02Automated replenishment to all stores

Short lead-times & frequent store deliveries,

>60% of sales centrally distributed

Phase 03

Supply chain development continues

Stabilizing Longmeadow

Preparing for small stores

Expanding Longmeadow to accommodate increasing grocery volumes

Supply chain priorities

SAP

SAP rollout completed in all coastal regions, Namibia and DCs

More accurate, timeous information

Improved controls

More disciplined, enhanced processes

Implemented SAP CRM to improve interaction with customers

Focus now on rolling out to remaining inland regions

Created opportunities for 81 historically disadvantaged entrepreneurs through franchise development and Score conversions

Introduced video conferencing saving R 4 million, 20% of corporate travel, and reducing carbon footprint substantially

Signed UN Global Compact membership

Launched Shelf Life project

Created opportunities for 225 historically disadvantaged individuals, including 73 entrepreneurs, in 11 independent businesses through the central bakery

Introduced worm farms to dispose of office canteen waste

Sustainability progress in the last 6 months

Summary

Pleased with the result

Australia

Boxer

Pick n Pay

Strategy implementation gaining momentum

Focus continues on in-store execution, supply chain, Score conversions, SAP

Any questions?