Halfords Group Plc · LSE:HFD
Halfords — Investor Presentation (November 2025)
28 slides from Halfords's investor presentation, November 2025
Slide 1: Strategy Update November 2025
STRATEGY UPDATE November 2025
Slide 2: Agenda
AGENDA 1. Setting the scene 4. The team 2. Our strategy 5. Summary Cycling 3. Delivery & measurement 6. Q&A Halfords Group PLC Strategy Update | November 2025 2
Slide 3: Setting the Scene
SETTING THE SCENE
Slide 4: Scale That Drives Advantage
SCALE THAT DRIVES ADVANTAGE The nation’s leading provider of motoring and cycling services and products We serve Across a network of Underpinned by To deliver c.20m 370 1.7bn Customers Retail stores 12,000+ Annual revenue c.6m 498 38.4m Highly trained colleagues Motoring Club members Customer garage
Slide 5: A Unique Portfolio of Assets
A UNIQUE PORTFOLIO OF ASSETS Our group assets Investment case A trusted brand Garages Retail Attractive markets Web platform Unmatched scale Mobile vans Structural resilience Motoring club B2B capability Service & expertise Click & collect Data & technology Contact centre Enabled by a new and experi
Slide 6: A Proposition That Delivers for Customers
A PROPOSITION THAT DELIVERS FOR CUSTOMERS Halfords offers an unmatched proposition Meeting the needs of five core segments Convenience Motoring >85% of UK population is within 15 minutes of a Halfords. Services available on demand and 7 days a week ‘Do-It-For-Me’ DIY Value Cycling Enabled by market
Slide 7: We Operate in Attractive Markets
WE OPERATE IN ATTRACTIVE MARKETS Motoring and cycling are large, fragmented and stable markets with significant opportunity to take share Market Market size (£) Market share Structure Customer needs Strategic opportunity Halfords 17bn Motoring Kwik fit Highly Needs-based Significant share growth in
Slide 8: We Are Well-Positioned for Key Market Trends
WE ARE WELL-POSITIONED FOR KEY MARKET TRENDS 1. 2. 3. 4. 5. Electrification and Ageing car parc and Convenience and Needs-based, Digital transition to EV the shift to value ‘do-it-for-me’ resilient markets enablement Most cars on the road still With the average UK car now Customers increasingly want
Slide 9: Halfords Over the Last 5 Years
HALFORDS OVER THE LAST 5 YEARS We have responded to challenging market conditions with a strategic pivot to more resilient income streams. Market conditions Strategic pivot: services & B2B 52% A majority Service revenue % services business... Competitive environment 24% FY20 FY25 Cost of living cris
Slide 10: Key Learnings
KEY LEARNINGS Some important home truths inform our future strategy and focused plan 1. 2. 3. 4. 5. 6. Service Integration Focus and Leveraging Synergy from Return on profitability and synergy simplification data the group capital We’ve transformed We’ve created the We’ve spread ourselves We’ve buil
Slide 11: Strategy Overview
STRATEGY OVERVIEW
Slide 12: Fit for the Future
FIT FOR THE FUTURE Optimise Building near-term value with disciplined and focused execution Evolve Driving structural efficiency and enabling future growth Scale Expanding reach, taking advantage of operating leverage Halfords Group PLC Strategy Update | November 2025 12
Slide 13: Fit for the Future
FIT FOR THE FUTURE Optimise Building near-term value with disciplined and focused execution ~0 to 24 months Evolve Driving structural efficiency and enabling future growth ~12 to 36 months Scale Expanding reach, taking advantage of operating leverage ~36 months + Halfords Group PLC Strategy Update |
Slide 14: Optimise: Building Near-Term Value
OPTIMISE BUILDING NEAR-TERM VALUE
Slide 15: Optimise: Retail
OPTIMISE: RETAIL Building near-term value through disciplined and focused execution Category management Service & advice E-commerce Grow revenue and profit from higher sales Improve penetration and profit from Grow revenue from capturing higher online density in stores increased margin-rich services
Slide 16: Optimise: Garages
OPTIMISE: GARAGES Building near-term value through disciplined and focused execution Complete Fusion Operational excellence Resourcing and Skills Mix Grow profit by driving higher garage-level Grow profit by reducing cost-to-serve Grow capacity with higher colleague contribution retention Key opport
Slide 17: Optimise: Group
OPTIMISE: GROUP Building near-term value through disciplined and focused execution Brand awareness Loyalty & lifetime value Drive transaction volumes by increasing brand consideration Increase customer lifetime value with higher retention and cross- shop Key opportunities: Key opportunities: ⲻ Scale
Slide 18: Evolve: Enabling Future Growth
EVOLVE ENABLING FUTURE GROWTH
Slide 19: Evolve: Structural Efficiency
EVOLVE: STRUCTURAL EFFICIENCY We have already implemented highly effective, tactical programmes to reduce our costs. We now have a significant opportunity to drive structural efficiencies in our model. Example opportunities Upgrade our supply chain Re-engineer our ERP ⲻ Improve warehouse and ⲻ Build
Slide 20: Evolve: Data & Technology
EVOLVE: DATA & TECHNOLOGY Our data potential is vast. With targeted investment in our technology, we can harness this data to elevate the customer experience across the group while driving greater efficiency in our stores and garages. Example opportunities Upgrade point of sale Enhanced customer dat
Slide 21: Expanding Our Reach
EXPANDING OUR REACH
Slide 22: Scale: Group
SCALE: GROUP Expanding reach, taking advantage of operating leverage Garages Retail Expand our physical garage footprint to ensure Grow our addressable market and appeal through comprehensive geographical coverage improved digital channels and a one-stop shop We have the opportunity to Following the
Slide 23: Delivery & Measurement
DELIVERY & MEASUREMENT
Slide 24: How We Will Deliver Value
HOW WE WILL DELIVER VALUE Strong fundamentals and a focused strategy will drive sustainable value creation Strategy Outcomes Guardrails Maintenance and optimisation LfL sales growth, led by digital channel capex £55m to £65m Optimise Incremental returns-accretive investment, following progression Op
Slide 25: Updated Capital Allocation Priorities
UPDATED CAPITAL ALLOCATION PRIORITIES 1. Maintain a prudent balance sheet with a leverage ratio not exceeding 0.8x. 2. Invest for growth with a focus on strong returns. 3. Pay a dividend 1.5x to 2.5x covered by underlying profit after tax. 4. M&A in priority areas in the Scale phase. 5. Surplus cash
Slide 26: The Team
THE
Slide 27: Enabled by Our Team
ENABLED BY OUR TEAM A new and experienced management team driving short-term optimisation and longer-term strategic advantage ⲻ A stronger performance culture. ⲻ Removal of unnecessary complexity, simplifying activity and focusing on what truly matters. ⲻ Reporting what we have done, rather than wha
Slide 28: Our Compelling Investment Case
OUR COMPELLING INVESTMENT CASE Our plan leverages our unique combination of assets across motoring and cycling, creating value in both the short and long term. Trusted, Attractive Unrivalled Structural and Service, advice Data and heritage brand markets scale financial and expertise technology resil
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