Pepkor Holdings Ltd. · JSE:PPH
Pepkor — Investor Day (2026)
56 slides from Pepkor's investor day presentation, 2026
Slide 1: Executive presentation
Execut Today ps
Slide 2: Our GROWTH algorithm
. . . it’s in our DNA RIAAN HANEKOM Chief Financial Officer Our GROWTH algorithm
Slide 3: Financial model
FINANCIAL MODEL MODEL FY25 Double-digit top line growth +12% revenue 5 – 6% LFL growth +6.5% LFL sales 3 – 4% space growth +4.1% space growth FinTech growth +31.1% FinTech revenue Positive operating leverage +13.2% operating profit +23.4% Double-digit HEPS growth +14.8% HEPS normalised >20% RONA 24.0
Slide 4: Resilient performance
RESILIENT PERFORMANCE COVID-19 161.0 7-YR CAGR1 5-YR CAGR 151.4 cps 127.1 140.2 cps cps cps Group Group 130.2 revenue revenue 99.3 100.6 cps cps cps 65.5 95.3 5.9% 8.3% 85.1 cps 81.2 78.0 77.3 69.6 70.8 63.9 Operating Operating 11.1 profit2 profit2 9.9 9.8 9.0 8.3 8.2% 11.6% 6.4 6.7 6.7 HEPS2 HEPS2 7.
Slide 5: Retail credit sales mix
RETAIL CREDIT SALES MIX Expanding well-within tolerable ranges Future 3-YR 8% 9% 7% 7% 8% 10% 14% 16% Credit sales average growth driven by interoperability 17%-19% Low credit 92% 91% 93% 93% 92% 90% 86% 84% mix compared to peers Cash dominance remains FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Credit
Slide 6: Resilient LFL-sales growth
RESILIENT LFL-SALES GROWTH 5-YR average LFL +5.3% Future 3-YR LFL 11.4% 5%-6% LFL sales growth 6.5% 0.7% 4.1% 3.8% R95.3bn COVID-19 R85.1bn R81.2bn R78.9bn R77.3bn R70.8bn FY20 FY21 FY22 FY23 FY24 FY25 58
Slide 7: Retail space growth
RETAIL SPACE GROWTH SUSTAINABLE PIPELINE OF OPPORTUNITY 5-YR average space growth +2.9% +7.2% Future 3-YR +3.6% 464 CAGR +4.1% 428 406 3%-4% +2.2% 360 +1.0% 200+ p.a 338 324 +0.3% +2.0% 283 -1.3% 256 259 234 247 199 119 87 New stores (gross) 45 Net new stores -10 FY18 FY19 FY20 FY21 FY22 FY23 FY24 F
Slide 8: Expanding gross profit margin
EXPANDING GROSS PROFIT MARGIN 8-YR average 36.9% Future 3-YR average Consistent 39.8% retail gross profit margin 39%-41% 38.3% 36.6% 36.4% 36.4% 36.4% 35.8% 35.3% Financial services growth FY24 and FY25 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Excluding The Building Company 60
Slide 9: Other income - partnerships
OTHER INCOME - PARTNERSHIPS Building internal capacity 7-YR CAGR +0.4% 35% Future 3-YR CAGR other Rm 510 4%-5% 275 171 984 FY25 938 960 938 950 964 881 751 52% commissions 13% marketing Other income Insurance proceeds - FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 non-recurring 61
Slide 10: Cost of doing business
COST OF DOING BUSINESS 28.0% 27.5% Future 3-YR 26.8% 27.0% 26.8% 25.3% 24.7% 25.6% average 27%-29% FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Average salary Average property cost growth +6% cost - IAS 17 +5% 7-YR CAGR +5.2% IFRS 16 lease modification Average lease IFRS 16 leasereducing 7-YR CAGR +4.2% r
Slide 11: Operating profit margin expansion
OPERATING PROFIT MARGIN EXPANSION Normalised, incl IFRS 16 5-YR ave 11.6% Future 3-YR Ackermans average 12.6% 13.0% recovery 11%-13% 11.5% 11.6% 11.1% 11.0% 10.7% 12.1% 10.2% 10.6% Debtors’ costs Capacity building FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Excl insurance proceeds Incl. IFRS 16 Excludin
Slide 12: Finance costs
FINANCE COSTS Non-IFRS 16 Rm Future 3-YR 1 713 All funding View 1 581 1 581 SA-based ● Lower rates 1 496 ● Higher net-debt 1 366 1 168 Variable interest rate 826 742 8% average cost of funding (FY25) FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Excl. IFRS 16 64
Slide 13: Gearing levels
GEARING LEVELS Remain within targeted levels Rbn Future 3YR 13.9 0.96 average 12.6 times net debt-to-EBITDA 0.5x-1.0x 11.3 Covenant <3 8.9 7.6 7.3 7.1 7.1 7.3 times 5.0 EBITDA-interest cover Covenant >3.5 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 DEC25 Excluding IFRS 16 65
Slide 14: Returns
RETURNS Investment cycles - improving returns Future 3YR range Investment in books Investment in books RONA 35.5% 36.0% >25% ROIC 27.0% >15% ROE 24.0% 23.2% 22.3% >10% RONA 15.8% 14.1% 13.7% 13.7% 14.0% 12.8% 13.3% ROIC ROE 7.9% 9.1% 11.2% 10.1% 9.4% 8.7% 8.7% 7.8% 5.2% 4.0% 3.5% FY18 FY19 FY20 FY21
Slide 15: Reporting segments
__it's inour DNA PEPKOR Holdings Limited Repor' segments
Slide 16: Current reporting segments
CURRENT REPORTING SEGMENTS Retail segments 3 FinTech segment 1 Clothing & 2 Furniture, Financial Informal general appliances & services market merchandise electronics segment segment 68
Slide 17: New reporting segments
NEW REPORTING SEGMENTS C3) Financial services Informal market platform Clothing & Furniture, general appliances & 7. segment segment = merchandise electronics segment (©) segment ® «PEP PEPKOR [Fjneram Lifestyle is flash ACKERMANS ; (s) House €;l4ome . PEPKOR @capfin Speci OK FURNITURE _ LEGiT aay ©
Slide 18: Current reporting segments - FY25
CURRENT REPORTING SEGMENTS - FY25 REVENUE OPERATING PROFIT HEADLINE EARNINGS R95.3BN R11.1BN R5.9BN 10% 3 18% 20% 5% 2 12% 6% 85% 1 74% 70% CGM FAE FinTech 70
Slide 19: New reporting segments - FY25
NEW REPORTING SEGMENTS - FY25 REVENUE OPERATING PROFIT HEADLINE EARNINGS R95.3BN R11.1BN R5.9BN 7% 8% 4 10% 8% 3 5% 10% 6% 2 13% 7% 78% 76% 1 72% 71 CGM FAE FS IMP
Slide 20: New reporting segments - FY28
NEW REPORTING SEGMENTS - FY28 REVENUE OPERATING PROFIT HEADLINE EARNINGS 4 9% 8% 10% 3 6% 15% 15% 2 13% 7% 7% 1 72% 70% 68% 72 CGM FAE FS IMP
Slide 21: Retail segments
PEPKOR Holdings Limited orting segments
Slide 22: Retail segments - revenue
RETAIL SEGMENTS - REVENUE FY25 CGM 72% FAE 13% of group revenue of group revenue 4% 5% 6% 3% 9% 95% 27% 51% 74
Slide 23: Gross profit margin
GROSS PROFIT MARGIN Per business – FY25 100% CGM FAE 75% CGM 50% Future 3YR 39.6% 39%-41% 32.9% 25% FAE Future 3YR 32%-35% 0% Including credit books 75
Slide 24: Operating profit margin
OPERATING PROFIT MARGIN Per business – FY25 30% CGM FAE 20% CGM Future 3-YR average * 12.3% 11%-13% 10% FAE Future 3-YR 5.8% average 0% 5%-7% 76 * Excluding Shoe City & Ayana
Slide 25: Financial services reporting segment
_.-it's injour DNA PEPKOR % Financ ; servic Report segment
Slide 26: Financial services revenue
FINANCIAL SERVICES REVENUE 5% of group revenue 6-YR CAGR >100% Future 3-YR CAGR 89% >20% 49% 28% 4 602 Foneyam 17% launch FY24 11% -18% 2 435 1 540 1 402 1 640 Abacus 1 207 1 267 capability leverage FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY25 78 Capfin FoneYam Abacus Growth %
Slide 27: Insurance
INSURANCE Group revenue split FY25 INSURANCE REVENUE SPLIT Future 3-YR R64m CAGR revenue sales support R829m to divisions >25% FY28 group 15% 41% contribution >R1bn FAE R351m FS R166m CGM 44% R185m Statutory revenue & operating profit Revenue Contribution 79
Slide 28: Financial services operating profit
of group FINANCIAL SERVICES OPERATING PROFIT 10% operating profit 6-YR CAGR >100% Future 3-YR CAGR 172% >28% 127% 1 139 41% Foneyam launch FY24 5.9% -10% 502 375 397 357 209 -34% Abacus 138 capability leverage FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY25 80 Capfin FoneYam Abacus Growth %
Slide 29: Operating profit margin
OPERATING PROFIT MARGIN Per business – FY25 30% FS >30% in 3-YRS 24.8% 20% 0% 81
Slide 30: Informal market platform reporting segment
_.. it's inour DNA PEPKOR wi Informal M Platfol Report segment
Slide 31: Informal market platform revenue
INFORMAL MARKET PLATFORM REVENUE 10% of group revenue 5-YR CAGR +4.4% Future 3-YR CAGR 25% Rm 7%-10% 14% 8% Agency vs -14% -2% Principal - 9 143 effect 7 938 8 044 7 382 6 831 6 692 M&A opportunities FY20 FY21 FY22 FY23 FY24 FY25 Flash revenue Growth % 83
Slide 32: Informal market platform operating profit
INFORMAL MARKET PLATFORM of group OPERATING PROFIT 7% operating profit 5-YR CAGR +19% Future 3-YR CAGR Rm 38% 33% >20% 25% 7% 819 617 -2% 447 340 365 358 FY20 FY21 FY22 FY23 FY24 FY25 Flash revenue Growth % 84
Slide 33: Key topics
__it's inour DNA PEPKOR Holdings Limited Key topics Books Cellular Capital Allocation Cash Conversion
Slide 34: Retail credit books - sales enablers
RETAIL CREDIT BOOKS – 16% group credit sales SALES ENABLERS Credit sales mix % 12-MONTH REVOLVING CREDIT per brand 25% Historic maximum PEP book not mature 3.5m active accounts - vintage improving R2 600 ave account balance 22% Future 19% Gross book 12% ACKERMANS 3-YR CAGR INTEREST RATE book mature
Slide 35: Retail credit books - sales enablers
RETAIL CREDIT BOOKS – 16% group credit sales SALES ENABLERS Credit sales mix % per brand 12-MONTH REVOLVING CREDIT Historic maximum 46% 2.5m active accounts 45% R$408 ave account balance Future 3-YR CAGR Gross book INTEREST RATE 9% to 20% p.m. 20%-25% Credit sales mix Gross book size Provision level
Slide 36: Retail credit books - sales enablers
RETAIL CREDIT BOOKS – 16% group credit sales SALES ENABLERS Credit sales mix % 24- & 36-MONTH INSTALMENT 12-MONTH REVOLVING CREDIT Home Historic maximum 30% SALE AGREEMENT (secured) Future 3-YR 194k active accounts 15k active accounts CAGR R10 900 average loan size R7 000 average loan size 21% Gross
Slide 37: Unsecured lending book
UNSECURED LENDING BOOK 6-12-24 MONTH ROE Future 3-YR 373k loans INTEREST LOANS RATE >20% CAGR active accounts Gross book AVE LOAN SIZE 6m 12m 24m 20%-22% 6m 12m 24m 5% p.m. 28% 28% R4 400 R11 400 R24 000 (Repo+21%) (Repo+21%) Improved Regulated by NCA ROE Gross book size Approval rate Provision leve
Slide 38: Cellular rental book
CELLULAR RENTAL BOOK 12 & 18 MONTH CELLULAR RENTAL PRODUCT ROIC Future 3-YR 2m active accounts CAGR book >23% R1 500 12-month ave balance 25%-28% R2 700 18-month ave balance Gross book size Approval rate Provision level % (Rbn) NPL % 95% Future 3-YR 25% average 85% ECL >100% 20% 23%-25% 1.9 11% NPL
Slide 39: Elevated debtors' costs - normalising
ELEVATED DEBTORS’ COSTS - NORMALISING Rm 5-YR CAGR +18.8% Future 3-YR 4 101 CAGR Capfin Aplus <22% Foneyam Other: Lifestyle Finance & Avenida 2 527 1 733 1 707 1 137 1 085 785 302 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 91
Slide 40: Key topics
__it's inour DNA PEPKOR Holdings Limited Key topics Books Cellular Capital Allocation Cash Conversion
Slide 41: Cellular
CELLULAR Ongoing revenue history 7-YR CAGR +5.5% Future 3-YR CAGR R2.1bn R2.0bn R1.9bn R1.9bn >4% R1.8bn 80% R1.6bn R1.5bn R1.5bn Income earned on customer spend on every sim sold Long term 20% contracts with all MNOs FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 93
Slide 42: Group cellular performance
GROUP CELLULAR PERFORMANCE Rbn FY23 FY24 FY25 2-YR CAGR Cellular revenue 19.4 22.0 25.2 14.0% revenue 0 0.4 1.9 >100% Future 3-YR TOTAL cellular revenue 19.4 22.4 27.1 18.2% CAGR >8% Cellular operating profit 1.9 2.3 2.8 21.4% operating profit 0 0 0.5 >100% Future 3-YR 1.9 2.3 3.3 31.8% CAGR TOTAL cel
Slide 43: Cellular income streams - FY25
CELLULAR INCOME STREAMS - FY25 | Retail FinServ : Informal market segments = segment ~) Platform segment RETAIL BRANDS FONEYAM Revenue 18 1.9 27.1 Handset sales iv) OGR g FoneYam | Gross profit 4.1 7.1 Operating profit 2.0 3.3 Handset sales iv) OGR iv) FoneYam | | Operating profit margin 11.0% 11.3%
Slide 44: Key topics
__it's inour DNA PEPKOR Holdings Limited Key top Capital Allocation
Slide 45: Capital allocation hierarchy
CAPITAL ALLOCATION HIERARCHY 01 02 03 04 CAPEX FUNDING M&A DIVIDEND 97
Slide 46: Capex
CAPEX % of revenue Strategic investments: Future 3-YR Distribution capability average 2.9% 2.9% 2.9% 3.0% 2.5% of 3.0% revenue 2.5% 2.5% 12% 2.4% 2.4% 23% Maintenance 1.9% 1.8% 7% FY25 29% 33% FY25 29% 67% Expansion Existing stores New stores IRR >30% IT Payback <3yrs Distribution FY18 FY19 FY20 FY2
Slide 47: Funding
FUNDING 01 02 03 RETAIL CELLULAR LENDING CREDIT RENTAL 99
Slide 48: Gross book funding
GROSS BOOK FUNDING 7-YR CAGR 33% Future 3-YR Rm CAGR Other 18 902 17%-22% Capfin FoneYam Aplus 13 580 9 806 8 012 6 455 6 471 6 446 2 533 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 100
Slide 49: M&A
M&A Purchase OTHER OPPORTUNITIES: consideration SA Acquired Jun 2025 R218m Purchase Informal consideration market International R584m platform Implemented Non-RSA Oct 2025 Purchase CloudBadger consideration HURDLE RATE Acquired Oct 2025 R206m Purchase IRR 25% consideration 10 Year DCF Implemented No
Slide 50: Dividend
DIVIDEND Earnings cover 3x 3x 3x earnings cover 55.2c 2x 53.0c 2x 48.1c 48.5c 44.2c 2x FY29 2x earnings cover onwards ● FY29 onwards ● once investment cycle ends 27.8c Investment cycle Once 20.9c investment cycle ends COVID FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY29 102
Slide 51: Key topics: Cash conversion
__it's inour DNA PEPKOR Holdings Limited Key top Cash Conversion
Slide 52: Cash generation
CASH GENERATION After working capital investment, before capex 8-YR average 87% Future 3YR Inherent average strong cash >80% 122% generation 94% 91% Investment 79% 84% 79% cycle underway & 75% nearing completion 68% FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 104
Slide 53: Net working capital
NET WORKING CAPITAL Investment cycle – net working capital movement 5-YR average NWC investment 2.0%* Rm 10 755 FY25 Lending Inventory levels & Creditors Retail credit Handset rental normalised NWC excl. credit 7 207 5 673 5 407 Retail credit 3 686 increased investment 3 331 3 452 from FY23 432 Hand
Slide 54: Conclusion
__it's inour DNA PEPKOR Holdings Limited Conclusion
Slide 55: Financial model
FINANCIAL MODEL Model Future 3-YR GROUP REVENUE GROWTH DOUBLE-DIGIT • Retail • LFL 5% to 6% • Space 3% to 4% • Financial Services >20% • Informal Market Platform 7% to 10% Gross profit margin 39% to 41% Operating profit margin 11% to 13% Operating profit growth 10% to 15% Headline earnings 10% to 15% 1
Slide 56: Financial model
FINANCIAL MODEL Model Future 3-YR Capex 2.5% of revenue Gearing levels 0.5x to 1x RONA >25% Cash conversion >80% Dividend cover 3x earnings 108