Introducing the Integrated Report

Clicks Group has pleasure in presenting its Integrated Annual Report for the 2012 financial year. Management is committed to integrated reporting and aims to demonstrate the group’s ability to create and sustain value for stakeholders.

The report is focused primarily on shareholders and the investment community locally and offshore, with a secondary focus on other stakeholder groups including customers, employees, industry regulators and suppliers.

Report scope and boundaries

The report covers the integrated sustainability performance and activities of the Clicks Group and its subsidiaries for the period 1 September 2011 to 31 August 2012. 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.

Management’s interpretation of materiality has again been applied in determining the content and disclosure in this report.

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 71 of 2008 (the Companies Act) and the Listings Requirements of the JSE. The group has applied the recommendations of King lll and also considered local and international best reporting practices.

Report content and disclosure

Management has extensive interaction with local and foreign shareholders and analysts, and this provides insight into the issues that are important to the investment community. These issues are accordingly addressed within the report.

The group seeks to address the relationship between key focus areas in the report by disclosing the material sustainability issues and risks, the group’s strategic goals, plans and targets, performance against the strategic objectives for 2012, detailed financial and operational performance, as well as disclosure of governance and remuneration practices.

Summarised financial statements have been published in the report. The audited annual financial statements are available to shareholders on the group’s website, together with a five-year history of financial and sustainability performance.

The group’s external auditor, KPMG Inc., expressed an unmodified audit opinion on the group’s annual financial statements. The summarised audited financial statements have been derived from the audited group financial statements. The financial statements have been prepared under the supervision of the Chief Financial Officer Michael Fleming CA (SA).

Approval of the report

The directors confirm the report fairly represents the integrated performance of the group. The audit and risk committee, which has oversight for integrated reporting, recommended the report for approval by the board and this was obtained on 13 November 2012.