Integrated Annual Report 2018

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Creating value in 2018

Founded in 1968, the group is a leader in the healthcare market in South Africa, where Clicks is the leading health and beauty retailer and UPD is the country’s largest full-range national pharmaceutical wholesaler.
“Creating sustainable long-term shareholder value through a retail-led health, beauty and wellness offering.”

The Integrated Reporting Framework of the International Integrated Reporting Council (IIRC) recommends reporting to stakeholders on the six main capital resources that are applied in the creation of value. Management has chosen to adapt the IIRC capitals and apply terminology which is more commonly used in managing the business.

IIRC capitals Financial Manufactured Intellectual Human Social and relationship Natural
Clicks Group Capitals Financial Infrastructure Intellectual People Stakeholders Environment

Financial

First-time inclusion in
FTSE/JSE Top 40 Index

Operating profit exceeds R2 billion for the first time
R2.5 billion cash generated by operations
Diluted HEPS up 15.1% to 578 cents
Dividend up 18% to 380 cents per share
Return on equity of 38.2%
Total shareholder return 32.5% (10-year CAGR )

Infrastructure

Opened
41 Clicks stores
and expanded footprint to 663 stores

R671 million capital investment in stores, supply chain and IT
Clicks Logo
UPD Logo
Online store offering in-store or home delivery nationally
37 new Clicks pharmacies; total now 510
9 distribution centres across Clicks and UPD

Intellectual

Clubcard

7.8 million
active Clicks ClubCard loyalty members

Clicks increased market share in all key product categories
Private label and exclusive brands 22% of health and beauty sales
Over 700 new private label products launched, reflecting investment in innovation
Clicks remains price competitive with national retailers
Clicks independently rated as leading health and beauty retailer in SA
UPD gained share of the wholesale and distribution markets

People

R1.3 billion
paid to beneficiaries of employee share ownership programme

15 067 permanent employees; 394 new jobs created
Recognised as Top Employer in retail sector in South Africa
R125 million invested in employee training and development
Pharmacy staff turnover reduced to 15%

Stakeholders

R812 million
paid to shareholders in dividends

Turnover of R29.2 billion generated from customers
R442 million cashback paid to ClubCard members
R3.2 billion paid to employees
R25.2 billion paid to suppliers of goods and services

Environment

Included in
FTSE4Good Index

FTSE4Good Index
64% reduction in municipal water usage at head office
37% of waste recycled
1 980 tons of recycling in the supply chain
Energy and water reduction targets set to reduce carbon footprint