Truworths International Limited · JSE:TRU
Truworths International — H1 2025 Earnings Presentation
72 slides from Truworths International's earnings presentation, February 2025
Slide 1: 2025 Group Interim Results
2025 GROUP INTERIM RESULTS FOR THE 26 WEEKS ENDED 29 DECEMBER 2024
Slide 2: Our Business Philosophy
OUR BUSINESS PHILOSOPHY OUR PURPOSE OUR VALUES OUR VISION defines the essence and fundamental ingredients of how we shape the business culture and behaviours required to describes the expectations of our stakeholders and how the aim to meet our customers’ expectations achieve our Purpose using seque
Slide 3: Leveraging Strengths for Future Success
LEVERAGING STRENGTHS FOR FUTURE SUCCESS We are always guided by our Business Philosophy which directs our consistent focus on the long-term Purpose as a guiding light through good and bad times to deliver our Vision • Geographic diversification (to UK) with two businesses that align seamlessly with
Slide 4: Investing for the Future
INVESTING FOR THE FUTURE Significant investment in our business over the last three years to position us for growth • Refinement of many of our existing brands’ DNA with focus on differentiation and elevation with emphasis on intrinsic value to enhance the value proposition of our merchandise • Laun
Slide 5: Agenda
1 FINANCIAL REVIEW 2 ACCOUNT MANAGEMENT 3 STRATEGIC INITIATIVES ASPIRATIONAL FASHION SUPPLY CHAIN CUSTOMERS RETAIL PRESENCE 4 ENVIRONMENTAL, SOCIAL AND GOVERNANCE 5 OUTLOOK 6 QUESTIONS
Slide 6: Financial Review: Group
1.1 FINANCIAL REVIEW GROUP
Slide 7: Financial Performance
FINANCIAL PERFORMANCE GROUP Change on prior period Dec 2024 Dec 2023 % Sale of merchandise (Rm) 12 063 11 774 2.5 Gross margin (%) 51.8 53.6 Profit before finance costs and tax (Rm) 2 713 2 887 (6.0) Operating margin (%) 22.5 24.5 Profit before tax (Rm) 2 455 2 671 (8.1) Diluted HEPS (DHEPS) (cents)
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Decline in ROA is attributed to the investment in capex (new stores and Truworths DC), the growth in GROUP ROE is decreasing due to the intangible assets due to the reversal growth in retained earnings of previous impairments, charitable (including the reversal of trust assets
Slide 9: Statements of Financial Position
STATEMENTS OF FINANCIAL POSITION GROUP Change on Dec 2024 Dec 2023 prior period Rm Rm % Property, plant and equipment 2 745 2 297 20 Right-of-use assets 3 305 3 617 (9) Goodwill and intangible assets 1 867 857 >100 Inventories 2 349 2 088 13 Trade and other receivables 5 983 6 011 - Non-current asse
Slide 10: Capital Management
CAPITAL MANAGEMENT Adjusted for the timing of month-end payments, Group net cash is approx. R370 million GROUP Dec 2024 Dec 2023 Net cash/(debt) Net (debt)/cash Net cash/(debt) to equity % Net (debt)/cash to equity % Group Rm 1 228 11.4 (124) (1.4) Truworths Africa Rm (1 467) (14.1) (1 860) (18.1) O
Slide 11: Cash Flow Analysis
CASH FLOW ANALYSIS Cash generated would have been approx. R860 million lower taking month-end GROUP payments into account (Rm) 4 500 4 000 15 (249) 666 3 500 (590) 3 000 459 (157) (458) 2 500 (272) 1 2 000 (756) 1 500 2 967 2 823 2 238 1 000 1 482 500 - Cash Working Interest Dividend Interest Tax pa
Slide 12: Financial Review: Truworths Africa
1.2 FINANCIAL REVIEW TRUWORTHS AFRICA
Slide 13: Financial Performance: Truworths Africa
FINANCIAL PERFORMANCE TRUWORTHS AFRICA Retail sales 1% Gross margin R8 300m Dec 2023: R8 391m 53.6% Dec 2023: 56.6% Trading profit 17% EBITDA margin R1 117m Dec 2023: R1 339m 29.6% Dec 2023: 32.3% Profit before finance costs and tax 12% Trading margin R1 753m Dec 2023: R1 988m 14.1% Dec 2023: 16.
Slide 14: Income Statement
INCOME STATEMENT TRUWORTHS AFRICA Change on Dec 2024 Dec 2023 prior period Rm Rm % Sale of merchandise 7 903 7 943 (1) Cost of sales (3 666) (3 450) 6 Gross profit 4 237 4 493 (6) Other income 236 223 6 Trading expenses (3 356) (3 377) (1) Depreciation and amortisation (586) (577) 2 Employment costs
Slide 15: Divisional Retail Sales
DIVISIONAL RETAIL SALES TRUWORTHS AFRICA Change on Dec 2024 Dec 2023 prior period Rm Rm % Truworths ladieswear 2 847 2 840 - Truworths menswear 2 049 2 028 1 Truworths kids emporium 967 1 017 (5) Other# 1 116 1 139 (2) Truworths emporium 6 979 7 024 (1) Identity 1 321 1 367 (3) Truworths retail sale
Slide 16: Stores and Trading Space
STORES AND TRADING SPACE TRUWORTHS AFRICA Stores Stores Dec 2023 Store Movement Dec 2024 Truworths 353 (1) 5 357 Identity 253 (1) 5 257 Truworths Man 34 (2) 3 35 Uzzi 34 (3) 31 Sync 23 6 29 Office London 21 3 24 YDE 20 (1) 1 20 Earthchild 14 (3) 11 Naartjie 10 (2) 8 Loads of Living 9 (1) 8 Kids Empo
Slide 17: Sales Densities Trend
SALES DENSITIES TREND TRUWORTHS AFRICA R per m2 45 000 40 037 39 179 39 266 40 000 38 489 38 109 36 418 35 924 36 214 35 230 35 000 33 371 30 000 25 000 20 000 15 000 10 000 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024 17
Slide 18: Merchandise Inflation Trend
MERCHANDISE INFLATION TREND TRUWORTHS AFRICA RSP Inflation (%) 20 15 10 5 - (5) (10) 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024 2025 Summer Winter Summer Winter Summer Winter Summer Winter Summer Winter Summer Winter Summer Winter Summer
Slide 19: Gross Profit Trend
GROSS PROFIT TREND TRUWORTHS AFRICA (Rbn) (%) 5.5 70 5.0 56.4 56.6 60 56.0 4.5 54.7 53.6 4.0 50 3.5 40 3.0 2.5 30 2.0 1.5 20 1.0 10 0.5 3.8 4.0 4.5 4.5 4.2 - - Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024 Gross profit Gross margin 19
Slide 20: Analysis of Trading Expenses
ANALYSIS OF TRADING EXPENSES TRUWORTHS AFRICA Change on Dec 2024 Dec 2023 prior period Rm Rm % Depreciation and amortisation 586 577 2 Employment costs 1 013 1 011 - Occupancy costs 345 342 1 Trade receivable costs 874 873 - Other operating costs^ 538 574 (6) Trading expenses 3 356 3 377 (1) ^ Excl.
Slide 21: Analysis of Trading Expenses (continued)
ANALYSIS OF TRADING EXPENSES TRUWORTHS AFRICA (CONTINUED) 2% • Property, plant, equipment and software: Depreciation decreased 2% Depreciation and • Right-of-use assets: Depreciation increased 3% amortisation • Comprises of non-IFRS 16 rentals and other occupancy costs (e.g. utilities) • 1% Exclud
Slide 22: Analysis of Trading Expenses (continued)
ANALYSIS OF TRADING EXPENSES TRUWORTHS AFRICA (CONTINUED) • Net bad debt and related costs, excluding the movement in the expected credit loss (ECL) allowance, decreased R91 million: • Net bad debt (after debt sold) decreased 10% (R75 million) relative to the prior period 0% • The movement in the EC
Slide 23: Profit Before Finance Costs and Tax
PROFIT BEFORE FINANCE COSTS AND TAX TRUWORTHS AFRICA (Rbn) (%) 3.5 40 37 34 33 35 3.0 32 30 30 30 2.5 26 26 25 25 22 2.0 20 1.5 15 1.0 10 0.5 5 1.8 2.1 2.0 2.0 1.8 - - Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024 Profit before finance costs and tax EBITDA margin Operating margin 23
Slide 24: Capital Expenditure
CAPITAL EXPENDITURE TRUWORTHS AFRICA Actual Actual Committed Change on Dec 2024 Dec 2023 H2 2025 prior period Rm Rm Rm % Store renovations and 134 129 109 4 development Computer infrastructure 29 14 17 >100 and software Land, buildings and 2 1 6 100 refurbishment Motor vehicles - 2 3 (100) Distribut
Slide 25: Financial Review: Office
1.3 FINANCIAL REVIEW OFFICE
Slide 26: Financial Performance: Office UK Reported
FINANCIAL PERFORMANCE OFFICE UK – REPORTED Retail sales 11% Gross margin £180.4m Dec 2023: £162.0m 48.2% Dec 2023: 47.4% EBITDA 10% EBITDA margin £48.9m Dec 2023: £44.4m 27.2% Dec 2023: 27.2% Profit before finance costs and tax 8% Trading margin £41.4m Dec 2023: £38.4m 21.9% Dec 2023: 22.8% Profi
Slide 27: Financial Performance: Office UK Adjusted
FINANCIAL PERFORMANCE OFFICE UK – ADJUSTED Retail sales 11% Gross margin £180.4m Dec 2023: £162.0m 48.2% Dec 2023: 47.4% EBITDA* 21% EBITDA margin* £48.9m Dec 2023: £40.3m 27.2% Dec 2023: 24.7% Profit before finance costs and tax* 21% Trading margin* £41.4m Dec 2023: £34.3m 21.9% Dec 2023: 20.4%
Slide 28: Income Statement: Office UK
INCOME STATEMENT OFFICE UK Change on Change on adjusted Dec 2024 Dec 2023 prior period prior period^ £m £m % % Sale of merchandise 179.6 163.4 10 10 Cost of sales (93.1) (85.9) 8 8 Gross profit 86.5 77.5 12 12 Other income 0.3 4.3 (93) 50 Trading expenses (47.5) (44.6) 7 7 Depreciation and amortisat
Slide 29: Geographic Sales and Number of Stores
GEOGRAPHIC SALES AND NUMBER OF STORES OFFICE UK Retail sales Retail sales Change on Number of Number of Dec 2024 Dec 2023 prior period stores stores £m £m % Dec 2024* Dec 2023* United Kingdom 172.4 155.0 11 80 78 Republic of Ireland 8.0 7.0 14 7 7 Total 180.4 162.0 11 87 85 * Including 11 concession
Slide 30: Year-on-Year Store Retail Sales Growth by Month
YEAR-ON-YEAR STORE RETAIL SALES GROWTH BY MONTH OFFICE UK (%) 45 35 25 15 5 (5) (15) Retail sales: textile, clothing and footwear stores Retail sales: Office stores Note: Store retail sales info, seasonally adjusted Source: Office for National statistics 30
Slide 31: Stores: Office UK
STORES OFFICE UK Stores Stores Dec 2023 Store Movement Dec 2024 Office standalone stores 70 (4) 6 72 Offspring standalone stores 4 4 Office concession stores 1 1 Offspring concession stores 10 10 TOTAL 85 87 STORES CLOSED STORES OPENED 31
Slide 32: Gross Profit Trend: Office UK
GROSS PROFIT TREND OFFICE UK (£m) (%) 90 60 85 47.4 48.2 50 46.6 80 45.7 42.3 75 40 70 65 30 60 20 55 50 10 45 49.0 56.9 65.6 77.5 86.5 40 - Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024 Gross profit Gross margin 32
Slide 33: Analysis of Trading Expenses: Office UK
ANALYSIS OF TRADING EXPENSES OFFICE UK Change on Dec 2024 Dec 2023 prior period £m £m % Depreciation and amortisation 7.4 6.0 23 Employment costs 16.6 15.7 6 Occupancy costs 9.4 9.1 3 Other operating costs 14.1 13.8 2 Trading expenses 47.5 44.6 7 33
Slide 34: Analysis of Trading Expenses (continued)
ANALYSIS OF TRADING EXPENSES OFFICE UK (CONTINUED) • 23% Depreciation on property, plant, equipment and software increased 34% due to increased capital spend, mainly on store development Depreciation and • Depreciation on right-of-use assets increased 21% due to net impairment reversals amortisatio
Slide 35: Profit Before Finance Costs and Tax: Office UK
PROFIT BEFORE FINANCE COSTS AND TAX OFFICE UK (£m) (%) 50 30 27.2 45 24.7 25 40 22.8 23.1 21.0 20.5 35 19.8 20 18.1 30 16.4 25 15 20 11.3 10 15 10 5 5 13.1 22.5 27.9 34.3 41.4 - - Dec 2020^ Dec 2021 Dec 2022^ Dec 2023^ Dec 2024 Profit before finance costs and tax EBITDA margin Operating margin ^ Adj
Slide 36: Capital Expenditure: Office UK
CAPITAL EXPENDITURE OFFICE UK Actual Actual Committed Change on Dec 2024 Dec 2023 H2 2025 prior period £m £m £m % Store renovations and 2 742 1 726 4 687 59 development Computer infrastructure 1 377 591 796 >100 and software Distribution centre 148 - 241 100 refurbishments Total 4 267 2 317 5 724 84
Slide 37: Account Management
2 ACCOUNT MANAGEMENT
Slide 38: TU SA Consumer Credit Index 2024Q4
TU SA CONSUMER CREDIT INDEX – 2024Q4 TransUnion SA Consumer Credit Index 70 The TransUnion SA Consumer Credit Index (CCI) increased from 48,0 in 2024 Q3 to 51,0 in 2024 65 Improving Credit Health Q4. The index has risen above 50 for the first time since 2022. 60 Credit defaults 55 51 The rate of new
Slide 39: Account Management Overview
ACCOUNT MANAGEMENT OVERVIEW • Credit sales – 0.9% reduction in credit sales in H1 • New accounts – Applications up 2% but lower conversion has resulted in a 13% decrease in opened accounts • Total accounts – 0.8% down in active accounts and active account holders able to purchase unchanged at 83% •
Slide 40: Book Balance Distribution by Behaviour Score
BOOK BALANCE DISTRIBUTION BY BEHAVIOUR SCORE TRUWORTHS AFRICA Low risk High risk balances balances increasing reducing Dec-22 Dec-23 Dec-24 Good shift in balances 40
Slide 41: New Accounts: Applications, Risk Approved and Opened
NEW ACCOUNTS – APPLICATIONS, RISK APPROVED AND OPENED TRUWORTHS AFRICA No. of applications (millions) 3.0 40% 35% 2.5 30% 2.0 23% 25% 1.5 20% 15% 15% 1.0 10% 0.5 5% - 0% Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024 No of Applications Risk Approved % Opene
Slide 42: Applicant Age Distribution
APPLICANT AGE DISTRIBUTION TRUWORTHS AFRICA 42% of new account applicants are under 30 8% 24% 18 - 24 17% 25 - 29 30 - 34 35 - 39 40 - 49 15% 18% 50+ 18% 42
Slide 43: Trade Receivable Statistics
TRADE RECEIVABLE STATISTICS TRUWORTHS AFRICA Dec Dec 2024 2023 Number of active accounts (000's) 2 886 2 908 Change in number of active accounts (%) (1) 5 Gross active trade receivables (before expected credit losses) (Rm) 7 068 7 183 Active trade receivables Change in gross active trade receivables
Slide 44: Strategic Initiatives: Aspirational Fashion
3.1 STRATEGIC INITIATIVES ASPIRATIONAL FASHION
Slide 45: Aspirational Fashion
ASPIRATIONAL FASHION • Several initiatives with positive progress • Truworths Africa • Drive a wider merchandise offering of core replenishment styles across product categories supported by new distribution capabilities • Increase focus on strong statements of essential seasonal items • Grow and dev
Slide 46: Strategic Initiatives: Supply Chain
3.2 STRATEGIC INITIATIVES SUPPLY CHAIN
Slide 47: Supply Chain
SUPPLY CHAIN • New DC complete and in phased “go-live” • Enable greater volumes of replenishment and part allocation of merchandise to stores • Consolidation of existing four distribution centres into one state of the art facility • Significant work done to enhance the local design and manufacturing
Slide 48: Strategic Initiatives: Customers
3.3 STRATEGIC INITIATIVES CUSTOMERS
Slide 49: Customers: Omni-Channel
CUSTOMERS OMNI-CHANNEL • Strong growth in online sales, registered users and contribution to retail sales • Enhance site functionality to increase frequency and basket size • Continue to work on improving omni-channel experience through targeted content for customers • Good progress made with our CR
Slide 50: Customers: Credit
CUSTOMERS CREDIT • Enhance book quality through collections initiatives focused on improved segmentation and call centre efficiency • Implement enhanced personalisation, recommendations, social media integration, and communication • Develop and implement improved data models to leverage advanced ana
Slide 51: Strategic Initiatives: Retail Presence
3.4 STRATEGIC INITIATIVES RETAIL PRESENCE
Slide 52: Retail Presence
RETAIL PRESENCE • Refine and grow new concepts across Truworths, Identity, Context, Loads of Living, Office UK, Office London and standalone Truworths Kids • Continue to roll out Truworths Re-imagined concept • 5 new stores opened and 6 modernised during the period • On balance Truworths Re-imagined
Slide 53: Environmental, Social and Governance
4 ENVIRONMENTAL, SOCIAL AND GOVERNANCE
Slide 54: Commitment to the UN Sustainable Development Goals
COMMITMENT TO THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS Continued best practice alignment with the United Nations Sustainable Development Goals, specifically the following 7: NO GOOD HEALTH QUALITY POVERTY AND WELL-BEING EDUCATION End poverty in all its forms Ensure healthy lives and Ensure i
Slide 55: Governance
GOVERNANCE • New independent non-executive director appointed effective 1 October 2024 with responsibility as audit committee chairman • Succession for long-serving non-executive directors is an ongoing key focus of the board • Continued efforts to further improve B-BBEE score • Appointed new extern
Slide 56: Outlook
5 OUTLOOK
Slide 57: Outlook: Sales and Trading Space
OUTLOOK SALES AND TRADING SPACE • Group retail sales for the first seven weeks of the second half of the 2025 financial period increased by 6.3% • up 4.6% in Truworths Africa • up 13.5% in Office UK (in Sterling) • Group trading space is projected to increase by approximately 1% for the 2025 financi
Slide 58: Outlook: Truworths Africa
OUTLOOK TRUWORTHS AFRICA • Discretionary spending expected to remain muted in the months ahead, some macroeconomic factors contributing to a more positive trading environment and improved consumer sentiment: • sustained low inflation rate • interest rate relief with a combined reduction of 75 basis
Slide 59: Outlook: Office UK
OUTLOOK OFFICE UK • Lower inflation and further expected interest rate relief in the UK in the medium-term should support consumer spending over time • Increases in employer National Insurance Contributions and minimum wages will have a marginal impact on costs in H2 • Management is committed to bui
Slide 60: Questions
6 QUESTIONS For any investor relations matters, kindly send an e-mail to: InvestorRelations@truworths.co.za
Slide 61: Disclaimer
DISCLAIMER This announcement contains certain forward-looking statements with respect to the financial condition and results of operations of Truworths International Limited and its group companies, which by their nature involve risk and uncertainty because they relate to events and depend on circum
Slide 62: Appendix 1: Financial Statements
APPENDIX 1 FINANCIAL STATEMENTS
Slide 63: Condensed Group Statements of Financial Position
CONDENSED GROUP STATEMENTS OF FINANCIAL POSITION 2024 2023 2024 Unaudited Unaudited Audited Note Rm Rm Rm ASSETS Non-current assets 8580 7134 8553 Property, plant and equipment 2745 2297 2533 Right-of-use assets 3305 3617 3545 Intangible assets 1573 563 1534 Goodwill 294 294 294 Loans and receivable
Slide 64: Condensed Group Statements of Comprehensive Income
CONDENSED GROUP STATEMENTS OF COMPREHENSIVE INCOME 26 weeks 26 weeks 52 weeks to 29 Dec to 31 Dec ‘to 30 Jun 2024 2023 2024 Unaudited Unaudited change Audited = Rm Rm % Rm Revenue 9 12931 12753 14 22 436 Sale of merchandise 9 12063 11774 25 20664 Cost of sales (5 819) {5 461) (9859) Gross profit 624
Slide 65: Appendix 2: Sustainable Development Goals
APPENDIX 2 SUSTAINABLE DEVELOPMENT GOALS
Slide 66: Supporting UN SDGs: No Poverty
SUPPORTING UNITED NATIONS’ SDGs End poverty in all its forms everywhere Donated more than 140 000 garments and Over 788 000 garments donated to Small and medium-sized black-owned 120 000 metres of fabric with a value of Taking Care of Business since 2019 in businesses supported through the R22 milli
Slide 67: Supporting UN SDGs: Good Health
SUPPORTING UNITED NATIONS’ SDGs Ensure healthy lives and promote well-being for all at all ages R23 million invested in Funded R1.5 million to the Through a long-standing Committed a further upgrading 24 public Groote Schuur Trust, which partnership with The Reach for R1.6 million to various other h
Slide 68: Supporting UN SDGs: Quality Education
SUPPORTING UNITED NATIONS’ SDGs Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all Funded upgrades at two LEAP Science Committed a further R2.9 million to Bursary programme in place for and Maths Schools in Gauteng and various other projects supporti
Slide 69: Supporting UN SDGs: Gender Equality
SUPPORTING UNITED NATIONS’ SDGs Achieve gender equality and empower all women and girls 74% of employees in SA are Zero tolerance policy to any Supporter of 16 Days of Financial support provided to female, including 33% of top form of gender-based Activism against GBV. various charities nationally t
Slide 70: Supporting UN SDGs: Decent Work
SUPPORTING UNITED NATIONS’ SDGs Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 12 660 employees across the Approximately 45% of Signatory to Retail - Clothing, Continued support to Group. Truworths’ apparel units Textile, Footwear
Slide 71: Supporting UN SDGs: Responsible Consumption
SUPPORTING UNITED NATIONS’ SDGs Ensure sustainable consumption and production patterns 2.0 million plastic Recycled 60 tonnes of 6% less new cartons Paper and stationery Plastic bag consumption clothing hangers plastic. were bought – due to consumption down 7%. reused. cartons being re-used. decreas
Slide 72: Supporting UN SDGs: Climate Action
SUPPORTING UNITED NATIONS’ SDGs Take urgent action to combat climate change and its impacts Store electricity consumption increased Water consumption in line with previous Started tracking utility consumption in 6% – due to no scheduled load shedding period. Office UK stores with a view to calculate
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