DAVID JONES LIMITED

Interim Results Presentation13 March 2000

Peter WilkinsonChief Executive

3

Performance Overview

Improvement

Sales $780.3m + 9.6%

EBIT $ 50.3m +23.3%

PAT (before Abnormals) $ 28.9m +12.9%

EPS (before Abnormals) 7.4c +13.9%

Stock Turn 2.73 times + 6.6%

4

Highlights

• Continued to grow market share

• Strengthened position in WA and Victoria

• Fundamental change in business continuing strongly- benefits still flowing through

• Well positioned to handle any demand swings

• Progress on growth strategy

• New CFO

5

Key Drivers

• Buying department

• Exclusive brands

• Systems improvement

• Cost control

• Supplier relationships

• Customer Service

• Improved marketing

Brian HillChief Financial Officer

7

‘All the Key Financials showed strong growth on the corresponding half’

Key Financials 6 MonthsJan 2000

$m

6 MonthsJan 1999

$mChange

Store Sales 780.3 711.9 +9.6%

EBIT 50.3 40.8 +23.3%

Profit After Tax Before Abnormals 28.9 25.6 +12.9%

Earnings per Share Before Abnormals 7.4 c 6.5 c +13.9%

Dividend per Share 4.0 c 4.0 c -

8

‘Double digit growth in Profit after Tax was offset by an Abnormal Item of $4.1m’

Profit Summary6 MonthsJan 2000

$m

6 MonthsJan 1999

$m

Change

EBIT 50.3 40.8 +23.3%Interest (5.0) (2.4) +108.3%Profit Before Tax 45.3 38.4 +18.0%Income Tax (16.4) (12.8) +28.1%PAT Before Abnormals 28.9 25.6 +12.9%Abnormals After Tax (4.1) - -Profit After AbnormalItems and Tax

24.8 25.6 -3.1%

9

‘Earnings before Interest up 23.3% due to strong growth in Retail Operations and Credit’

Earnings Before Interest & Tax 6 MonthsJan 2000 $m

6 MonthsJan 1999 $m

Change

Retail Earnings 36.0 28.9 +24.6%

Property 9.2 9.1 -

Credit 5.1 2.8 +82.1%

EBIT 50.3 40.8 +23.3%

10

‘Higher Sales and well controlled costs contribute to an increase in Retail Contribution of 24.6%’

Retail Operations 6 MonthsJan 2000 $m

6 MonthsJan 1999 $m

Change

Sales 780.3 711.9 +9.6%

Gross Profit 270.3 248.4 +8.8%

Expenses 234.3 219.6 +6.7%

Retail Contribution 36.0 28.9 +24.6%

SG&A as percentage of Sales 30.0% 30.9% -3.0%

11

‘Comparable store sales grew by more than all DSS - gaining market share’

Sales Growth 6 MonthsJan 2000 $m

6 MonthsJan 1999 $m

Change

Store Sales 780.3 711.9 +9.6%

New Stores 29.1 * 6.0

Comparable Store Basis 751.2 705.9 +6.4%

Department Stores 6452.7 6206.3 +3.9%

* Carindale, Chadstone, Birkenhead and Harbour Town

12

‘All major product categories performed strongly’

• Introduction of new brands

• Rebuilt buying capacity

• Supplier partnering

Home,Electrical &Furniture

Apparel Cosmetics,Shoes &

Accessories

19992000

+13%

+9%

+7%

13

‘Operational efficiencies and fee income drive 82% improvement in Credit Card profits despite higher interest free’

David Jones Credit Card Change on

Corresponding Half

New approved Credit Cards +78%

- Without Shareholder Discount +22%

Operating Expenses + 4%

Fee Income New

Total Card Receivables +16%

Interest Free and Deferred Receivables +42%

14

‘Shareholder Discount has been a great success’

Highlights:

Shareholder Discount Accounts 21,706

- New Accounts 11,449

- Existing Shareholders 10,257

Total Number of Shareholders +41%

- Shareholders > 2000 shares + 88%

- Shareholders < 2000 shares - 5%

15

‘Abnormals Reduced Profit After Tax by $4.1m’

Abnormal Item Before Tax $m

Rebated Tax $m

AfterTax$m

Preparing for GST (3.3) 1.2 (2.1)

Adjustment of Net Income

Tax Benefits for Change of

Tax Rate from 36% to 30% - (2.0) (2.0)

Total Abnormal (3.3) (0.8) (4.1)

16

‘Negative Cash Flow primarily due to Capital Return’

Cash Flow 6 MonthsJan 2000

$m

6 MonthJan 1999

$m

Comment

Net Cash Flow (86.6) ( 0.8)

Major Items:

Debtors (7.7) (34.7) Higher debts, but effect ofsecuritisation

Depreciation and Provisions 18.3 18.1 Creditors 36.4 ( 4.2) Higher inventories and timing Dividends (15.7) (11.8) Dividend increases from 3c to 4c Sale of Assets 0.4 21.2 Sale of Rundle Mall last year;

Adelaide in second half Capital Expenditure (65.5) (20.4) Chadstone, Adelaide, Harbour

Town and Southland Return of Capital (79.2) - 20 cents per share return

17

‘Balance Sheet has strengthened with Debt to Equity decreasing from 52.3% to 36.5%’

Balance Sheet 6 MonthsJan 2000

$m

6 MonthJan 1999

$m

Change

$m

Comment

Inventory 250.2 230.3 +19.9

Debtors 74.4 286.6 -212.2 Securitisation of debtors

Property Plant & Equipment 431.7 379.6 +52.1 Adelaide, Chadstone

Other Assets 24.2 19.6

Total Assets 780.6 916.1

Represented by

Creditors & Provisions 213.6 177.2 +36.4 Higher inventories and timing

Borrowings 151.6 253.9 -102.3 Securitisation proceeds/capital return

Equity 415.5 -485.0 -69.5 Capital Return

Debt to Equity 36.5% 52.3%

18

‘Adelaide Central Plaza sale improves Debt to Equity to 20.6% on a pro-forma basis’Pro-forma Balance Sheet(After Sale of Adelaide)

6 MonthsJan 2000

$m

6 MonthJan 1999

$m

Change

$m

Comment

Inventory 250.2 230.3 +19.9

Debtors 74.4 286.6 -212.2 Securitisation of debtors

Property Plant & Equipment 365.8 379.6 -13.8 Chadstone

Other Assets 24.2 19.6

Total Assets 714.7 916.1

Represented by

Creditors & Provisions 213.6 177.2 +36.4 Higher inventories and timing

Borrowings 85.7 253.9 -168.2 Securitisation proceeds/capital return

Equity 415.5 -485.0 -69.5 Capital Return

Debt to Equity 20.6% 52.3%

Peter WilkinsonChief Executive

20

Growth

• Victoria and Western Australia– Underlying growth (Value Proposition)

• Food Business– Customer research positive

– Strong team

– Progress on leases

• E-Commerce– Significantly progressed, hampers success

– Pure plays v. “clicks and mortar”

– multi-channel

• Full strategy briefing “field day” in June

21

Outlook

• Environment in 2H will be impacted by GST– Positioned to handle any swings in demand

• Continue to trade in line with expectations

• Maximising Shareholder Value over-riding corporate objective