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## DIRECTORS' REPORT 

Super Cheap Auto Group Limited For the period from incorporation to 26 June 2004 

Your Directors present their report on the consolidated entity consisting of Super Cheap Auto Group Limited and the entities it controlled at the end of, or during, the period ended 26 June 2004. 

## DIRECTORS 

The following persons were Directors of Super Cheap Auto Group Limited who were appointed during the period and continue in office at the date of this report. 

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P A Birtles was appointed a Director on 8 April 2004 and continued in office until his resignation on 19 May 2004. Information on the qualifications and experience of Directors is included on page 19. 

## PRINCIPAL ACTIVITIES 

During the period the principal continuing activities of the consolidated entity consisted of the retailing of auto parts and accessories, tools and equipment. 

## DIVIDENDS – SUPER CHEAP AUTO GROUP LIMITED 

No dividends have been paid or declared during the period. 

## REVIEW OF OPERATIONS 

Revenue from trading operations for the period was $70,924,000. During the period, the consolidated entity opened ten new stores of which three were in Australia and seven in New Zealand. At the end of the period, the consolidated entiity was trading from 183 stores. 

## DIRECTORS AND DIRECTORS’ INTERESTS 

The Directors of Super Cheap Auto Group Limited in office at the date of this report are listed below together with details for their relevant interest in the securities of the Company at that date. 

The net profit of the consolidated entity for the period from incorporation to 26 June 2004, after providing for income tax, amounted to $2,767,000. 

A review of the operations for the pro-forma 52 weeks to 26 June 2004 is set out on pages 11 to 15 of this report and in the Special Purpose Report on pages 47 to 50. 

## SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS 

The Company was incorporated on 8 April 2004. On 23 April 2004, the Company acquired all of the issued share capital of Super Cheap Auto Pty Ltd for a consideration of $84,233,000. 

## MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR 

On 6 July 2004, the Company’s shares were listed on the Australian Stock Exchange. 

Since the end of the financial period, the Company has opened an additional seven stores as at the date of this report. 

## LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS 

Likely developments in the operations of the Consolidated Entity in future financial years are referred to in pages 11 to 15. 

## ENVIRONMENTAL REGULATION 

The consolidated entity’s environmental obligations are regulated under State, Territory and Federal Law. The consolidated entity has a policy of at least complying with its environmental performance obligations. All environmental performance obligations are monitored by the Board. No environmental breaches have been notified to the consolidated entity during the period ended 26 June 2004. 

## PARTICULARS OF DIRECTORS’ INTERESTS IN SHARES AND OPTIONS OF SUPER CHEAP AUTO GROUP LIMITED 

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