Value Creation In 2016

1

Inputs and capitals

The financial resources deployed by the company.

Financial

Value created in 2016

Turnover R24.2 billion Total shareholder return 35.3% Cash generated from operations R1.8 billion Return on equity 49.2%

2

The infrastructure used in selling merchandise, including the retail store network, distribution facilities, online store and information technology systems.

Manufactured

Opened 32 retail stores; total stores 689 39 new Clicks pharmacies; total now 400 Online store launched 9 distribution centres R433 million capital investment

3

The collective knowledge and expertise across the business as well as the intellectual property of the group.

Intellectual

Clicks gained market share in all key product categories Private label and exclusive brands 21.0% of health and beauty sales Clicks independently rated as leading health and beauty retailer in SA

4

The competency, capability and experience of the board, management and employees.

Human

Directors and executive management develop and execute the strategy to create value for shareholders 14 093 permanent employees who provide customers with medicines, products and services R57.8 million invested in employee skills development

5

Relationships with stakeholders influencing the business, primarily shareholders, customers, suppliers and employees.

Social and relationship

Shareholders: R876 million returned to shareholders in dividends and share buy-backs Customers: Over 1 million new ClubCard members; now 6.2 million members Customers: R309 million cash-back paid to ClubCard members Employees: R2.7 billion paid to employees Suppliers: R21.3 billion paid to suppliers

6

The group’s operations have a low environmental impact and therefore use limited natural capital.

Natural

Commitment to reduce carbon footprint and generate savings through energy and water efficiency 2 072 tons of recycling in supply chain