Introducing integrated reporting

Clicks Group welcomes the introduction of integrated reporting as outlined in the King Code of Governance Principles (King lll) and has pleasure in presenting its Integrated Annual Report to stakeholders for the 2011 financial year.

Scope and boundary of the report: The Integrated Annual Report covers the activities and results of the group and its subsidiaries for the period 1 September 2010 to 31 August 2011. The group operates primarily in South Africa and has operations in Botswana, Namibia and Swaziland. The majority of the group’s revenue and profit is generated in South Africa. There have been no changes from last year in the scope and boundary of the report, while the principle of materiality has been applied in determining content and disclosure. The Integrated Annual Report and the annual financial statements have been prepared according to International Financial Reporting Standards (IFRS), the requirements of the Companies Act and the Listings Requirements of the JSE. The group has implemented the recommendations of King lll and management has also considered the guidelines published by the Integrated Reporting Committee of South Africa.

Enhancing disclosure and content: The 2011 report builds on the enhanced disclosure of recent years and in the spirit of integrated reporting aims to assist stakeholders in their assessment of the group’s ability to create and sustain value. This includes the first time analysis of the material sustainability issues and risks impacting the group, a focus on stakeholder engagement and the outcome of this engagement, as well as a report on the group’s transformation, a critical element of sustainability in the South African context.