The Financial Analysis for Davide Jones

DAVID JONES LIMITED

FULL YEAR (FY05) RESULTS

AUGUST 2004 - JULY 2005

PRESENTERS MARK McINNES - CHIEF EXECUTIVE STEPHEN GODDARD - FINANCE DIRECTOR

FY05 Financial Highlights

• Highest Full Year Profit Result reported by David Jones since listing in 1995 • Strong Business Model enabled the Company to deliver 19.2% Profit after Tax* growth in FY05 despite weak retail conditions in 2H05 ($77.9m FY05 vs. $65.3m in FY04) • Proven ability to manage the economic cycle and to deliver increasing returns to shareholders throughout the peaks & troughs of the cycle

* PAT is Profit After Tax before Reset Preference Share dividends and not utilising International Financial Reporting Standards

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FY05 Financial Highlights

• Total Company ‘EBIT to Sales Ratio’ up 65 basis points (6.05% FY05 vs. 5.4% FY04) • Department Store EBIT up 13.7% • Credit Card EBIT up 16.6% • Cost of Doing Business reduced by 80 basis points ( 32.7% in FY05 vs. 33.5% in FY04)

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FY05 Financial Highlights

• Further Cost Efficiency savings expected in FY06, FY07 & FY08 • Gross Profit Margins of 36.8% - at upper end of 36.5%-36.9% target range • • Strong Cashflows - $147m cash on hand at year-end FY05 Dividend up 18.2% (13 cents per share in FY05 vs.11 cents per share in FY04)

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Results Summary

FY2005

Total Sales ($m) Total EBIT ($m) Profit After Tax ($m) Basic EPS (c) DPS (c) 1799.1 108.8 77.9 17.4 13.0

FY2004

1769.5 95.3 65.3 14.6 11.0

% Change

+ 3.3% * + 14.2% + 19.2% + 19.2% + 18.2%

* Like for Like Sales

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PAT Comparison

FY2005 $m EBIT Less Interest Income / (Expense) PBT Less Tax PAT 108.8 2.9 111.7 -33.8 77.9 FY2004 $m 95.3 - 0.6 94.7 -29.4 65.3 Change % + 14.2% n/a + 17.9% + 15.2% + 19.2%

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EBIT Summary

FY2005

EBIT Contribution from: - Department Stores - Credit - Property Total EBIT $m 73.9 32.2 2.7 108.8

FY2004

$m 65.0 27.7 2.6 95.3

Change

% + 13.7% + 16.6% + 3.8% + 14.2%

EBIT % to Sales Ratio

6.05%

5.4%

+ 65 bp

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